Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 4

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 4
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, Compensation, and Corporate Governance/Nominating Committees      |
| Regular executive sessions of non-management directors                                    |
| Comprehensive self-evaluations annually for the Board and each committee                  |
| One class of shares with each share entitled to one vote                                  |
| No poison pill in place                                                                   |
| Meaningful stock ownership guidelines in place for directors and named executive officers |
| Policy against hedging or pledging shares                                                 |

Auditors See “ Audit Committee Report ” (beginning on page 54 ) and “ Proposal 2 – Ratification of Independent Auditor ” (page 56 ). We ask our shareholders to ratify the selection of Grant Thornton, LLP as our independent auditors for the fiscal 2026 year. Executive Compensation Highlights For more information, see “ Executive Compensation ” (beginning on page 24 ) and “ Proposal 3 – Advisory vote on executive compensation ” (page 57 ). Our Board of Directors recommends that you vote “FOR” our advisory proposal on executive compensation. This non-binding vote gives our shareholders the opportunity to approve the compensation paid to the individuals identified as named executive officers in this Proxy Statement.

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The primary purpose of our executive compensation program is to reinforce key business and strategic objectives in support of long-term value creation. To accomplish this purpose, our fiscal 2025 program focused on the following:

| Embracing a pay-for-results philosophy, with total pay aligned with Company performance                                                                                                                                                                                                                                                                                                                                                                            
 Attracting and retaining management with the knowledge, skills, and ability to lead the Company successfullyFairly compensating management for their services                                                                                                                                                                                                                                                                                                      
 Aligning long-term interests of senior management with those of shareholders by providing long-term incentive award opportunities only in the form of performance-based restricted stock units tied to challenging performance goals for a three-year performance period, with any earned awards payable in stock following the three-year period and subject to adjustment based on  the Company's three-year total shareholder return relative to industry peers |
|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Setting challenging performance goals for both long-term equity incentive program awards and short-term annual cash incentives                                                                                                                                                                                                                                                                                                                                     |
| Not making any changes to performance goals for outstanding short-term or long-term incentive awards despite significant  industry and macroeconomic headwinds during the applicable performance period                                                                                                                                                                                                                                                            |
| Maintaining a focus on earnings growth, return on capital, cash generation, balance sheet management, and shareholder return                                                                                                                                                                                                                                                                                                                                       |
| Continuing the freeze in base salary for the chief executive officer and also