Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 52

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 52
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 to vest for any NEO, as performance fell below entry (threshold) levels for the executive shared services and mattress fabrics reporting units for the first and second fiscal years of the program, and the operating income goals for the executive shared services and mattress fabrics reporting units for the third fiscal year of the program are now expected to be below entry (threshold) level based on the above-referenced macroeconomic and industry headwinds. Moreover, no performance-based RSUs under the fiscal 2023 long term incentive program vested for any NEO, as operating performance for each reporting unit for the three-year performance period was below entry (threshold) level. No adjustments have been made to the fiscal 2025, fiscal 2024, or fiscal 2023 long term incentive program goals since they were originally set, despite the above-referenced macroeconomic and industry headwinds ultimately being greater than originally expected.

Fiscal 2022 Long-Term Incentive Awards Eligible to Vest in Fiscal 2025

The shares of stock that were actually acquired by NEOs in fiscal 2025 as a result of the vesting of equity awards, as shown in the “Options Exercised and Stock Vested” table herein, relate to the fiscal 2022 LTIP. As part of the fiscal 2022 LTIP, the Committee granted to all participants under the plan, including our NEOs at the time, a combination of one-half performance-based RSUs and one-half service-based RSUs, except that the grant for the chief executive officer was entirely performance-based, with no service-based component. A total of 75,558 RSUs were granted to our NEOs at such time under the fiscal 2022 LTIP, of which 54,727 were performance-based and 20,831 were service-based. For grants of performance-based RSUs, each unit consisted of the right to receive zero to two shares of the common stock of the Company based on attainment of cumulative adjusted operating income goals for the Company, or the division that employed the award recipient, during the three fiscal years following the grant. For grants of service-based RSUs, each unit consisted of the right to receive one share of common stock based on the participant remaining employed with the Company through the end of the three-year vesting period. For fiscal 2022, the Committee also included certain Company personnel other than NEOs in the long-term incentive program and granted 34,920 RSUs to these individuals to provide additional performance and retention incentives, as well as