Company: GWW
Filing Date: 2025-02-20
Form Type: PRE 14A
Source: 0001104659-25-015730
Chunk: 30

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: PRE 14A
Chunk 30
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 in the Compensation Discussion and Analysis section beginning on page 37. The Compensation Committee’s independent compensation consultant advises on Director compensation. The Directors’ compensation program, which was last adjusted in April 2024, consists of the following: D IRECTOR C OMPENSATION Total Base Compensation $290,000 Additional Annual Cash Retainers: • $37,500— Lead Director • $30,000— Audit Committee Chair • $25,000— Compensation Committee Chair • $20,000— BANC Chair All non-employee Directors receive an annual DSU grant worth $175,000. In 2024, the number of shares covered by each grant was equal to $175,000 divided by the 20-day average stock price through March 31 (a methodology consistent with the calculation used for equity awards to grant-eligible employees), rounded up to the next whole share. For non-employee Directors elected at the 2024 Annual Meeting of shareholders, the DSU formula resulted in payment of 176 DSUs based on a 20-day average stock price as of March 31, 2024 of $995.65 per share. The DSUs are settled in shares of Grainger common stock on a 1:1 basis upon termination of service as a Director. On their April 24, 2024 grant date, the value of such DSUs was $168,219 using the closing price of $955.79 per share of Grainger’s common stock on April 23, 2024. Directors may defer their annual cash retainers, Lead Director retainer, and Committee Chair retainers (as applicable), into a DSU account. Stock ownership guidelines applicable to non-employee Directors provide that within five years after election, a Director must own Grainger common stock and common stock equivalents having a value of at least five times the annual cash retainer fee for serving on the Board. The hedging or pledging of Company shares by Directors or executive officers is prohibited by Company policy (see Hedging and Pledging Prohibition beginning on page 52). No Directors (or executive officers) have hedged or pledged any of the shares beneficially owned by them and all Directors are currently in compliance with the ownership guidelines. Grainger annually matches each Director’s charitable contributions on a three-to-one basis up to a maximum Company contribution of $7,500 and provides discounts on product purchases, both on the same basis as provided to U.S. Grainger employees. Mr. Macpherson, who is an employee