Company: TJX
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0000109198-25-000024
Chunk: 41

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 41
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                                                                                                         |
| Long-Term Equity:                 
 Performance Share Units (PSUs)    
 and Restricted Stock Units (RSUs) |     | •Align executive interests with shareholders                                
 •Incentivize performance to reach or exceed our longer-term financial goals 
 •Support longer-term retention objectives                                   |     |                                                                                                                                                                       |
| Long-Term Cash:                   
 Long Range Performance            
 Incentive Plan (LRPIP)            |     | •Incentivize performance to reach or exceed our longer-term financial goals 
 •Foster teamwork and collaboration across divisions                         
 •Support longer-term retention objectives                                   |     |                                                                                                                                                                       |

Our FY25 program also includes health and welfare, deferred compensation, and retirement benefits, as well as limited perquisites. See Other Compensation Practices and Considerations below.

### INCENTIVE PLAN GOAL SETTING
Each year, the Committee sets objective business performance targets and the amounts payable at different levels of performance under each of our incentive plans. At the time the goals are established, the Committee considers a variety of qualitative and quantitative factors, including:

• estimated long-term trends in sales, comparable store sales, profitability, and earnings;

• maturity of our various businesses;

• strategic investments to support our growth;

• global economic conditions and other external factors (such as market competition, currency volatility, interest rates, and wage and other cost pressures);

• balance of business risks, performance, and rewards;

• historical performance against targets and relative to peers and the market; and

• degree of difficulty in achieving various levels of performance.

At the time the goals are established, the Committee believes that the targets for each of these incentive plans are challenging but reasonably achievable and that the payout formulas reflect an appropriate degree of pay-for-performance sensitivity, taking into account the factors described above.

| Robust goal-setting process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| The Committee believes our incentive plan goals strike an appropriate balance between driving the execution of our business and encouraging long-term investments to support our growth. The objective performance targets for our incentive plans are tied to our strategic planning process for the next fiscal year or long-term period, as applicable, and are derived from annual and multi-year business plans that are reviewed with and overseen by the Board. Our incentive plan targets are generally set at levels that align with the annual financial guidance we provide to investors at the start of the performance period. 
 This process has led to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 •an annual incentive target for FY25 set above the prior year target and actual results; and