Company: KMX
Filing Date: 2025-05-08
Form Type: DEF 14A
Source: 0001170010-25-000073
Chunk: 30

Company: CARMAX INC
Filing Date: 2025-05-08
Form: DEF 14A
Chunk 30
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           | 1,084,935 |     |                              |     |   361,633 |     |            | 1,446,568 |           |
| Shamim Mohammad       |     |                                                 |   799,999 |     |                              |   800,001 |     |            |  1,600,000 |     |                                                 |           | 1,084,935 |     |                              |     |   361,633 |     |            | 1,446,568 |           |

(a) We grant limited stock appreciation rights (“SARs”) in tandem with each option. The SARs may be exercised only in the event of a change-in-control of the Company. Upon the exercise of the SAR and the surrender of the related option, the officer is entitled to receive an amount equal to the difference between the value of our common stock on the date of exercise and the exercise price of the underlying stock option. No free-standing SARs have been granted.

(b) Option amounts represent the fair value at grant calculated using valuation models performed as of the date of grant by an independent third party. PSU amounts were calculated using the closing price of our common stock on the date of grant assuming target performance levels.

The amounts listed in the table above for PSUs will not match the amounts in the Stock Award column in the Summary Compensation Table or the Grants of Plan-Based Awards table. In those tables, in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“ASC Topic 718”), the grant date of a PSU occurs when the objectively determinable performance goals are set. Starting with the fiscal 2025 PSUs, the Committee established a three-year performance goal at the beginning of the three-year period. As a result, the Summary Compensation Table and Grants of Plan-Based Awards Table includes the entirety of the fiscal 2025 PSU awards and the applicable one-third of each of the fiscal 2024 PSUs and fiscal 2023 PSUs for which performance goals were set during fiscal 2025. See note (a) to the Summary Compensation Table for more detail.

The Committee reviewed and approved long-term equity awards in March 2024 following the conclusion of the Company’s February 29, 2024 fiscal year end and the grant date for the awards was on May 1, 2024. The Committee increased the value of Mr. Nash’s long-term equity award by $500,000. This decision was made to bring Mr. Nash’s long-term equity compensation