# EDGAR Filing Document

**Accession Number:** 0001023128
**File Stem:** 0001023128-26-000026
**Filing Date:** 2026-3
**Character Count:** 319223
**Document Hash:** dd3c3b523815d4f01be81c9a3fcf2048
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001023128-26-000026.hdr.sgml**: 20260311

**ACCESSION NUMBER**: 0001023128-26-000026

**CONFORMED SUBMISSION TYPE**: DEF 14A

**PUBLIC DOCUMENT COUNT**: 133

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260311

**DATE AS OF CHANGE**: 20260311

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LITHIA MOTORS INC
- **CENTRAL INDEX KEY:** 0001023128
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 930572810
- **STATE OF INCORPORATION:** OR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DEF 14A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14733
- **FILM NUMBER:** 26744003

**BUSINESS ADDRESS:**
- **STREET 1:** 150 NORTH BARTLETT STREET
- **CITY:** MEDFORD
- **STATE:** OR
- **ZIP:** 97501
- **BUSINESS PHONE:** 541-776-6401

**MAIL ADDRESS:**
- **STREET 1:** 150 NORTH BARTLETT STREET
- **CITY:** MEDFORD
- **STATE:** OR
- **ZIP:** 97501

?xml version='1.0' encoding='ASCII'? lad-20260311

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**SCHEDULE 14A INFORMATION**

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

☒ Filed by the Registrant

☐ Filed by a Party other than the Registrant

**CHECK THE APPROPRIATE BOX:**

☐ Preliminary Proxy Statement

☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

☒ Definitive Proxy Statement

☐ Definitive Additional Materials

☐ Soliciting Material Pursuant to §240.14a-12

**LITHIA MOTORS, INC.**

(Exact Name of Registrant as Specified In Its Charter)

**PAYMENT OF FILING FEE (CHECK THE APPROPRIATE BOX):**

☒ No fee required

☐ Fee paid previously with preliminary materials.

☐ Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.

![Proxy_Cover_02_20_26..jpg](lad-20260311_g1.jpg)

**Notice of 2026 Annual Meeting** 

**of Shareholders and Proxy Statement**

**Thursday, April 30, 2026, at 8:30 a.m.** 

**Pacific Daylight Time** 

<u>virtualshareholdermeeting.com/LAD</u><u>2026</u>

**APRIL 2026**

![Mission_Header_02_11_25.jpg](lad-20260311_g2.jpg)

<sup>OUR VALUES</sup>

**The Fuel behind Lithia & Driveway**

![Mission_icons_bk_02_11_25.jpg](lad-20260311_g3.jpg)

**Earn Customers for Life**

**Improve Constantly**

Create welcoming and trustworthy

experiences for our customers.

Champion one another's growth to

achieve more together.

**Take Personal Ownership**

**Have Fun!**

Enjoy the freedom to make the right

choices and own our results.

Connect as a team through celebration,

positivity, passion, and purpose.

<sup>Our Vision</sup>

**Leading the modernization of personal transportation solutions** 

**wherever, whenever, and however consumers desire.**

![Driveway_Lines_01.jpg](lad-20260311_g4.jpg)

![logo_lithia1.jpg](lad-20260311_g5.jpg)

**Letter from the Chief Executive Officer**

**Dear Shareholder,**

We are glad to extend an invitation for you to join us at Lithia & Driveway's virtual 2026 Annual Meeting

of Shareholders on Thursday, April 30, 2026, at 8:30 a.m. Pacific Daylight Time where we will discuss

our continued progress in executing our strategy to drive profitable growth and modernize personal

transportation solutions wherever, whenever, and however customers desire.

In 2025, we built momentum as the world's largest omnichannel mobility retailer, delivering another year

of consistent financial growth and operational excellence. We optimized our network, continued to enhance

our adjacencies, and improved performance while building a durable business through any consumer

cycle. Our investments in AI and digital are building customer loyalty through simple, transparent, and

convenient customer experiences, while also empowering our team members to improve productivity and

focus on what they do best – creating memorable customer experiences.

Our results demonstrate our growth and resilience. We achieved double-digit growth in EPS, same-store

growth across all business lines, reached record profitability in financing operations led by Driveway

Finance Corporation, and continued to diversify our store network. Our strategic partnerships accelerated

and we are seeing the benefits of the depth of our platform.

Our disciplined capital allocation provides a foundation to capture market share and respond to market

conditions to maximize shareholder value. This foundation combines with our relentless focus on

operational efficiency to accelerate our growth.

reflects the core of our entrepreneurial strategy. As we continue to transform the industry, we remain

anchored in our core values to *Earn Customers for Life*, *Improve Constantly*, *Take Personal Ownership*,

and *Have Fun!*

In the years ahead, we are committed to unlocking the full potential of our omnichannel platform. Our

diversified business model positions us to drive sustainable growth, and we are confident in our ability to

continue leading the transformation of automotive retail.

Thank you for your partnership and support.

**Bryan B. DeBoer**

President & Chief Executive Officer

Lithia Motors, Inc.

![sig_bryanbdeboer1.jpg](lad-20260311_g6.jpg)

**Notice Of Annual Meeting Of Shareholders**

---

| | | | |
|:---|:---|:---|:---|
| **2026 Annual Meeting Information** | **2026 Annual Meeting Information** | **2026 Annual Meeting Information** | **2026 Annual Meeting Information** |
| ![_AMI_ Icon_Calendar_ps.jpg](lad-20260311_g7.jpg) | ![_AMI_Icon_PinDrop_ps.jpg](lad-20260311_g8.jpg) | ![_AMI_ Icon_Clock_ps.jpg](lad-20260311_g9.jpg) | ![_AMI_ Icon_Inbox_ps.jpg](lad-20260311_g10.jpg) |
| **Meeting Date**<br>Thursday,<br>April 30, 2026<br>| **Annual Meeting** <br>**Website**<br> www.virtualshareholder<br>meeting.com/LAD2026<br>| **Meeting Time**<br>8:30 a.m.<br>(Pacific Daylight Time)<br>| **Record Date**<br>February 27, 2026<br>|
| **Items of Business** | **Items of Business** |  | **Recommendation** |
| **COMPANY PROPOSALS** | **COMPANY PROPOSALS** | **COMPANY PROPOSALS** | **COMPANY PROPOSALS** |
| 1.Elect the ten director nominees named in this proxy statement; . . . . . . . . . . . . . . . . . . . . | 1.Elect the ten director nominees named in this proxy statement; . . . . . . . . . . . . . . . . . . . . | 1.Elect the ten director nominees named in this proxy statement; . . . . . . . . . . . . . . . . . . . . | **FOR**, each nominee |
| 2.Approve, by an advisory vote, named executive officer compensation; . . . . . . . . . . . . . . | 2.Approve, by an advisory vote, named executive officer compensation; . . . . . . . . . . . . . . | 2.Approve, by an advisory vote, named executive officer compensation; . . . . . . . . . . . . . . | **FOR** |
| 3.Ratify the appointment of KPMG LLP as our independent registered public accounting <br>firm for fiscal year ending December 31, 2026; and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3.Ratify the appointment of KPMG LLP as our independent registered public accounting <br>firm for fiscal year ending December 31, 2026; and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3.Ratify the appointment of KPMG LLP as our independent registered public accounting <br>firm for fiscal year ending December 31, 2026; and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | **FOR** |
| **SHAREHOLDER PROPOSAL** | **SHAREHOLDER PROPOSAL** | **SHAREHOLDER PROPOSAL** | **SHAREHOLDER PROPOSAL** |
| 4.Vote on a shareholder proposal requesting a change to our board leadership <br>structure, if properly presented. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4.Vote on a shareholder proposal requesting a change to our board leadership <br>structure, if properly presented. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4.Vote on a shareholder proposal requesting a change to our board leadership <br>structure, if properly presented. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | **AGAINST** |

---

**To the Shareholders of Lithia Motors, Inc.**

I am pleased to invite you to the 2026 Annual Meeting of Shareholders of Lithia Motors, Inc. (the "Annual Meeting") which will be

held virtually at 8:30 a.m. Pacific Daylight Time on Thursday, April 30, 2026. We believe a fully virtual meeting facilitates greater

participation by providing easy access to the meeting and allowing shareholders to participate from any location around the world.

All of our shareholders will be able to participate in the Annual Meeting online without prohibitive cost or inconvenience. There will be

no physical location for shareholders to attend.

The Annual Meeting will only occur virtually through an audio webcast, accessible at the link provided above. You may notify the

Company of your desire to participate in the Annual Meeting by remote communication by logging into the 2026 Annual Meeting

Website, listed above, in advance of the meeting. Log-in will begin at 8:00 a.m. Pacific Daylight Time. To participate in the Annual

Meeting, you will need your unique control number included on your proxy card (printed in the box and marked by the arrow) or on

the instructions that accompanied your proxy materials.

If you have any questions regarding this information or the proxy materials, please visit our website at investors.lithiadriveway.com,

or contact our investor relations department at (541) 776-6591. Our proxy statement and 2025 Annual Report on Form 10-K can be

accessed directly at the following internet address: www.proxyvote.com. Just enter the control number located on your proxy card.

We appreciate your continued support of Lithia Motors and look forward to receiving your proxy.

Very truly yours,

![Picture1.jpg](lad-20260311_g11.jpg)

**David G. Stork, Senior Vice President and Chief Administrative Officer**

March 11, 2026

**How to Vote**

Only holders of record of our common stock at the close of business on February 27, 2026, the record date, will be entitled to notice

of and to vote at the meeting and any adjournment thereof. A list of shareholders entitled to vote at the Annual Meeting will be

available during the entire time of the Annual Meeting at www.virtualshareholdermeeting.com/LAD2026. You may vote or submit

questions during the Annual Meeting by following the instructions available on the 2026 Annual Meeting Website. Further information

regarding voting rights and the matters to be voted upon is presented in our proxy statement.

**Important notice regarding the availability of proxy materials for the 2026 Annual Meeting of** 

**Shareholders to be held on April 30, 2026.**

Our proxy statement and 2025 Annual Report on Form 10-K can be accessed directly at the following Internet address:

www.proxyvote.com. Just enter the control number located on your proxy card. To obtain paper copies of the proxy statement and

our 2025 Annual Report on Form 10-K at no charge, written requests should be mailed to the attention of Investor Relations, Lithia

Motors, Inc., 150 N. Bartlett Street, Medford, Oregon 97501.

![](lad-20260311_g12.gif)

**YOUR VOTE IS IMPORTANT.** Whether or not you plan to attend the Annual Meeting, we

urge you to vote and submit your proxy via internet, telephone or by completing, signing,

dating and returning your proxy card or voting instruction form so that your shares will be

represented at the Annual Meeting.

![_HTV_ Icon_Calendar_ps.jpg](lad-20260311_g13.jpg)

![_HTV_ Icon_phone_ps.jpg](lad-20260311_g14.jpg)

![_HTV_ Icon_Envelope_ps.jpg](lad-20260311_g15.jpg)

**Special Note Regarding Forward Looking Statements**

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements

often use words such as "project," "outlook," "target," "may," "will," "would," "should," "seek," "expect," "plan," "intend," "forecast,"

"anticipate," "believe," "estimate," "predict," "potential," "likely," "ensure," "goal," "strategy," "future," "maintain," and "continue" or the

negative of these terms or other comparable terms. The Company's expectations, beliefs and projections are expressed in good faith

and are believed to have a reasonable basis. Because forward-looking statements relate to the future, they are subject to inherent

uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-

looking statements are not guarantees of future performance, and our actual results of operations, financial condition, and liquidity

and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking

statements in this document. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties

that could cause actual results to differ materially from estimated or projected results include, without limitation, those described in

the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors," and those that

have been or may be described in other reports filed by the Company, including reports on Form 8-K.

The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without

limitation: (i) the profitability of our strategy and growth; (ii) future market conditions, including anticipated vehicle and other sales,

gross profit and inventory supply; (iii) our business strategy and plans, including our achieving our long-term financial targets; (iv)

the growth, expansion, make-up, and success of our network, including our finding accretive acquisitions that meet our target

valuations and acquiring additional stores; (v) annualized revenues from acquired stores or achieving target returns; (vi) the growth

and performance of our Driveway e-commerce home solution and DFC, their synergies and other impacts on our business and our

ability to meet Driveway and DFC-related targets; (vii) the impact of sustainable vehicles and other market and regulatory changes

on our business, including evolving vehicle distribution models; (viii) our capital allocations and uses and levels of capital

expenditures in the future; (ix) expected operating results, such as improved store performance, continued improvement of SG&A as

a percentage of gross profit and any projections; (x) our anticipated financial condition and liquidity, including from our cash and the

future availability of our credit facilities, unfinanced real estate, and other financing sources; (xi) our continuing to purchase shares

under our share repurchase program; (xii) our compliance with financial and restrictive covenants in our credit facilities and other

debt agreements; (xiii) our programs and initiatives for team member recruitment, training, and retention; and (xiv) our strategies and

targets for customer retention, growth, market position, operations, financial results, and risk management.

Any forward-looking statement made by us in this document is based only on information currently available to us and speaks only

as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking

statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments

or otherwise.

**Other**

All references in this proxy statement to "LAD," "Lithia," "Lithia Motors," "Lithia & Driveway," the "Company," "we," "us," or "our" refer

to Lithia Motors, Inc. and its subsidiaries, except where the context otherwise requires or as otherwise indicated. Our store

operations are conducted by our subsidiaries.

The content on any website referred to in this proxy statement is not incorporated by reference in this proxy statement unless

expressly noted.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Table of Contents** | **Table of Contents** | **Table of Contents** | **Table of Contents** | **Table of Contents** | **Table of Contents** |
| **<u>[01](#ic4b68f9df5f645149bb3535a26afa3af_19)</u>** | **<u>[Lithia Motors, Inc. Proxy Statement](#ic4b68f9df5f645149bb3535a26afa3af_19)</u>** | **<u>[8](#ic4b68f9df5f645149bb3535a26afa3af_19)</u>** | **<u>[06](#ic4b68f9df5f645149bb3535a26afa3af_145)</u>** | **<u>[Compensation Tables](#ic4b68f9df5f645149bb3535a26afa3af_145)</u>** | **<u>[52](#ic4b68f9df5f645149bb3535a26afa3af_145)</u>** |
|  | <u>[2025 Achievements and Performance Highlights](#ic4b68f9df5f645149bb3535a26afa3af_22)</u> | <u>[8](#ic4b68f9df5f645149bb3535a26afa3af_22)</u> |  | <u>[Summary Compensation Table](#ic4b68f9df5f645149bb3535a26afa3af_148)</u> | <u>[52](#ic4b68f9df5f645149bb3535a26afa3af_148)</u> |
|  | <u>[Our Company Strategy](#ic4b68f9df5f645149bb3535a26afa3af_25)</u> | <u>[9](#ic4b68f9df5f645149bb3535a26afa3af_25)</u> |  | <u>[Grants of Plan-Based Awards Table for 2025](#ic4b68f9df5f645149bb3535a26afa3af_151)</u> | <u>[54](#ic4b68f9df5f645149bb3535a26afa3af_151)</u> |
|  |  |  |  | <u>[Outstanding Equity Awards at Fiscal Year-End](#ic4b68f9df5f645149bb3535a26afa3af_154)</u> | <u>[55](#ic4b68f9df5f645149bb3535a26afa3af_154)</u> |
| **<u>[02](#ic4b68f9df5f645149bb3535a26afa3af_28)</u>** | **<u>[Directors and Nominees](#ic4b68f9df5f645149bb3535a26afa3af_28)</u>** | **<u>[10](#ic4b68f9df5f645149bb3535a26afa3af_28)</u>** |  | <u>[Stock Vested for 2025](#ic4b68f9df5f645149bb3535a26afa3af_157)</u> | <u>[56](#ic4b68f9df5f645149bb3535a26afa3af_157)</u> |
|  | <u>[Employee/Founder Directors](#ic4b68f9df5f645149bb3535a26afa3af_31)</u> | <u>[11](#ic4b68f9df5f645149bb3535a26afa3af_31)</u> |  | <u>[Non-Qualified Deferred Compensation](#ic4b68f9df5f645149bb3535a26afa3af_160)</u> | <u>[56](#ic4b68f9df5f645149bb3535a26afa3af_160)</u> |
|  | <u>[Independent Directors](#ic4b68f9df5f645149bb3535a26afa3af_31)</u> | <u>[11](#ic4b68f9df5f645149bb3535a26afa3af_31)</u> |  | <u>[Potential Payments Upon Termination or Change in Control](#ic4b68f9df5f645149bb3535a26afa3af_163)</u> | <u>[57](#ic4b68f9df5f645149bb3535a26afa3af_163)</u> |
|  | <u>[Summary of Director Experience, Skills and Attributes](#ic4b68f9df5f645149bb3535a26afa3af_34)</u> | <u>[12](#ic4b68f9df5f645149bb3535a26afa3af_34)</u> |  | <u>[CEO Pay Ratio](#ic4b68f9df5f645149bb3535a26afa3af_166)</u> | <u>[61](#ic4b68f9df5f645149bb3535a26afa3af_166)</u> |
|  | <u>[Director Nominee Biographies](#ic4b68f9df5f645149bb3535a26afa3af_37)</u> | <u>[13](#ic4b68f9df5f645149bb3535a26afa3af_37)</u> |  | <u>[Pay Versus Performance](#ic4b68f9df5f645149bb3535a26afa3af_169)</u> | <u>[62](#ic4b68f9df5f645149bb3535a26afa3af_169)</u> |
|  | <u>[Non-Director Executive Officers](#ic4b68f9df5f645149bb3535a26afa3af_40)</u> | <u>[18](#ic4b68f9df5f645149bb3535a26afa3af_40)</u> |  |  |  |
|  |  |  | **<u>[07](#ic4b68f9df5f645149bb3535a26afa3af_175)</u>** | **<u>[Proposal No. 1 Election of Directors](#ic4b68f9df5f645149bb3535a26afa3af_175)</u>** | **<u>[64](#ic4b68f9df5f645149bb3535a26afa3af_175)</u>** |
| **<u>[03](#ic4b68f9df5f645149bb3535a26afa3af_43)</u>** | **<u>[Corporate Governance](#ic4b68f9df5f645149bb3535a26afa3af_43)</u>** | **<u>[20](#ic4b68f9df5f645149bb3535a26afa3af_43)</u>** |  |  |  |
|  | <u>[Board of Directors](#ic4b68f9df5f645149bb3535a26afa3af_46)</u> | <u>[20](#ic4b68f9df5f645149bb3535a26afa3af_46)</u> | **<u>[08](#ic4b68f9df5f645149bb3535a26afa3af_178)</u>** | **<u>[Proposal No. 2 Advisory vote to approve the](#ic4b68f9df5f645149bb3535a26afa3af_178)</u>**<br>**<u>[compensation of our named executive officers](#ic4b68f9df5f645149bb3535a26afa3af_178)</u>** | **<u>[65](#ic4b68f9df5f645149bb3535a26afa3af_178)</u>** |
|  | <u>[2025 Board and Committee Composition](#ic4b68f9df5f645149bb3535a26afa3af_49)</u> | <u>[20](#ic4b68f9df5f645149bb3535a26afa3af_49)</u> |  | **<u>[Proposal No. 2 Advisory vote to approve the](#ic4b68f9df5f645149bb3535a26afa3af_178)</u>**<br>**<u>[compensation of our named executive officers](#ic4b68f9df5f645149bb3535a26afa3af_178)</u>** |  |
|  | <u>[Board Committees](#ic4b68f9df5f645149bb3535a26afa3af_52)</u> | <u>[21](#ic4b68f9df5f645149bb3535a26afa3af_52)</u> |  |  |  |
|  | <u>[Director Independence](#ic4b68f9df5f645149bb3535a26afa3af_55)</u> | <u>[22](#ic4b68f9df5f645149bb3535a26afa3af_55)</u> | **<u>[09](#ic4b68f9df5f645149bb3535a26afa3af_181)</u>** | **<u>[Proposal No. 3 Ratification of appointment of](#ic4b68f9df5f645149bb3535a26afa3af_181)</u>**<br>**<u>[independent public accounting firm](#ic4b68f9df5f645149bb3535a26afa3af_181)</u>** | **<u>[66](#ic4b68f9df5f645149bb3535a26afa3af_181)</u>** |
|  | <u>[Lead Independent Director and Governance Practices](#ic4b68f9df5f645149bb3535a26afa3af_58)</u> | <u>[22](#ic4b68f9df5f645149bb3535a26afa3af_58)</u> |  | **<u>[Proposal No. 3 Ratification of appointment of](#ic4b68f9df5f645149bb3535a26afa3af_181)</u>**<br>**<u>[independent public accounting firm](#ic4b68f9df5f645149bb3535a26afa3af_181)</u>** |  |
|  | <u>[From our Lead Independent Director](#ic4b68f9df5f645149bb3535a26afa3af_61)</u> | <u>[23](#ic4b68f9df5f645149bb3535a26afa3af_61)</u> |  | <u>[Fees Paid to KPMG LLP Related to Fiscal Years 2024 and](#ic4b68f9df5f645149bb3535a26afa3af_184)</u><br><u>[2025](#ic4b68f9df5f645149bb3535a26afa3af_184)</u> | <u>[67](#ic4b68f9df5f645149bb3535a26afa3af_184)</u> |
|  | <u>[Director Qualifications and Nominations](#ic4b68f9df5f645149bb3535a26afa3af_64)</u> | <u>[24](#ic4b68f9df5f645149bb3535a26afa3af_64)</u> |  | <u>[Fees Paid to KPMG LLP Related to Fiscal Years 2024 and](#ic4b68f9df5f645149bb3535a26afa3af_184)</u><br><u>[2025](#ic4b68f9df5f645149bb3535a26afa3af_184)</u> |  |
|  | <u>[Our Board's Risk Oversight Role](#ic4b68f9df5f645149bb3535a26afa3af_67)</u> | <u>[26](#ic4b68f9df5f645149bb3535a26afa3af_67)</u> |  | <u>[Audit Committee Report](#ic4b68f9df5f645149bb3535a26afa3af_187)</u> | <u>[67](#ic4b68f9df5f645149bb3535a26afa3af_187)</u> |
|  | <u>[Code of Business Conduct and Ethics](#ic4b68f9df5f645149bb3535a26afa3af_73)</u> | <u>[27](#ic4b68f9df5f645149bb3535a26afa3af_73)</u> |  | <u>[Selection of KPMG as our Auditor](#ic4b68f9df5f645149bb3535a26afa3af_190)</u> | <u>[68](#ic4b68f9df5f645149bb3535a26afa3af_190)</u> |
|  | <u>[Compensation of Directors](#ic4b68f9df5f645149bb3535a26afa3af_76)</u> | <u>[27](#ic4b68f9df5f645149bb3535a26afa3af_76)</u> |  | <u>[Audit Committee Actions](#ic4b68f9df5f645149bb3535a26afa3af_193)</u> | <u>[68](#ic4b68f9df5f645149bb3535a26afa3af_193)</u> |
|  | <u>[2025 Director Compensation](#ic4b68f9df5f645149bb3535a26afa3af_82)</u> | <u>[28](#ic4b68f9df5f645149bb3535a26afa3af_82)</u> |  |  |  |
|  | <u>[Non-Employee Director Stock Ownership Policy; Hedging and](#ic4b68f9df5f645149bb3535a26afa3af_91)</u><br><u>[Pledging Restrictions](#ic4b68f9df5f645149bb3535a26afa3af_91)</u> | <u>[29](#ic4b68f9df5f645149bb3535a26afa3af_91)</u> | **<u>[10](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>** | **<u>[Proposal No. 4 Shareholder Proposal Requesting](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>**<br>**<u>[that our Board of Directors Appoint an Independent](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>**<br>**<u>[Board Chair](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>** | **<u>[69](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>** |
|  | <u>[Non-Employee Director Stock Ownership Policy; Hedging and](#ic4b68f9df5f645149bb3535a26afa3af_91)</u><br><u>[Pledging Restrictions](#ic4b68f9df5f645149bb3535a26afa3af_91)</u> |  |  | **<u>[Proposal No. 4 Shareholder Proposal Requesting](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>**<br>**<u>[that our Board of Directors Appoint an Independent](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>**<br>**<u>[Board Chair](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>** |  |
| **<u>[04](#ic4b68f9df5f645149bb3535a26afa3af_94)</u>** | **<u>[Corporate Responsibility](#ic4b68f9df5f645149bb3535a26afa3af_94)</u>** | **<u>[30](#ic4b68f9df5f645149bb3535a26afa3af_94)</u>** |  | **<u>[Proposal No. 4 Shareholder Proposal Requesting](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>**<br>**<u>[that our Board of Directors Appoint an Independent](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>**<br>**<u>[Board Chair](#ic4b68f9df5f645149bb3535a26afa3af_199)</u>** |  |
|  | <u>[Introduction](#ic4b68f9df5f645149bb3535a26afa3af_94)</u> | <u>[30](#ic4b68f9df5f645149bb3535a26afa3af_94)</u> | **<u>[11](#ic4b68f9df5f645149bb3535a26afa3af_202)</u>** | **<u>[Additional Ownership Information](#ic4b68f9df5f645149bb3535a26afa3af_202)</u>** | **<u>[72](#ic4b68f9df5f645149bb3535a26afa3af_202)</u>** |
|  | <u>[Increase GreenCars on the Road](#ic4b68f9df5f645149bb3535a26afa3af_97)</u> | <u>[31](#ic4b68f9df5f645149bb3535a26afa3af_97)</u> |  |  |  |
|  | <u>[Operate Sustainable Stores](#ic4b68f9df5f645149bb3535a26afa3af_100)</u> | <u>[31](#ic4b68f9df5f645149bb3535a26afa3af_100)</u> | **<u>[12](#ic4b68f9df5f645149bb3535a26afa3af_205)</u>** | **<u>[General Information](#ic4b68f9df5f645149bb3535a26afa3af_205)</u>** | **<u>[74](#ic4b68f9df5f645149bb3535a26afa3af_205)</u>** |
|  | <u>Extend Vehicle Lifecycles</u> | <u>[32](#ic4b68f9df5f645149bb3535a26afa3af_549755814813)</u> |  | <u>[Online Meeting](#ic4b68f9df5f645149bb3535a26afa3af_208)</u> | <u>[74](#ic4b68f9df5f645149bb3535a26afa3af_208)</u> |
|  | <u>[Strengthen Our Communities](#ic4b68f9df5f645149bb3535a26afa3af_106)</u> | <u>[32](#ic4b68f9df5f645149bb3535a26afa3af_106)</u> |  | <u>[Voting](#ic4b68f9df5f645149bb3535a26afa3af_220)</u> | <u>[75](#ic4b68f9df5f645149bb3535a26afa3af_220)</u> |
|  | <u>[Maximize Employee Health, Wellness & Safety](#ic4b68f9df5f645149bb3535a26afa3af_103)</u> | <u>[33](#ic4b68f9df5f645149bb3535a26afa3af_103)</u> |  | <u>[Attending the Annual Meeting](#ic4b68f9df5f645149bb3535a26afa3af_238)</u> | <u>[76](#ic4b68f9df5f645149bb3535a26afa3af_238)</u> |
|  | <u>Champion an Inclusive, High-Performance Culture</u> | <u>[33](#ic4b68f9df5f645149bb3535a26afa3af_549755814819)</u> |  | <u>[Additional Information](#ic4b68f9df5f645149bb3535a26afa3af_253)</u> | <u>[78](#ic4b68f9df5f645149bb3535a26afa3af_253)</u> |
|  |  |  |  | <u>[2026 Shareholder Proposals or Nominations](#ic4b68f9df5f645149bb3535a26afa3af_274)</u> | <u>[79](#ic4b68f9df5f645149bb3535a26afa3af_274)</u> |
| **<u>[05](#ic4b68f9df5f645149bb3535a26afa3af_109)</u>** | **<u>[Compensation Discussion and Analysis (CD&A)](#ic4b68f9df5f645149bb3535a26afa3af_109)</u>** | **<u>[34](#ic4b68f9df5f645149bb3535a26afa3af_109)</u>** |  |  |  |
|  | <u>[Executive Summary and Compensation Highlights](#ic4b68f9df5f645149bb3535a26afa3af_115)</u> | <u>[35](#ic4b68f9df5f645149bb3535a26afa3af_115)</u> | **<u>[13](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>** | **<u>[Certain Relationships and Related Transactions and](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>**<br>**<u>[Director Independence](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>** | **<u>[80](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>** |
|  | <u>[Compensation Components](#ic4b68f9df5f645149bb3535a26afa3af_124)</u> | <u>[40](#ic4b68f9df5f645149bb3535a26afa3af_124)</u> |  | **<u>[Certain Relationships and Related Transactions and](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>**<br>**<u>[Director Independence](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>** |  |
|  | <u>[2025 Compensation Program Design & Results](#ic4b68f9df5f645149bb3535a26afa3af_127)</u> | <u>[41](#ic4b68f9df5f645149bb3535a26afa3af_127)</u> |  |  |  |
|  | <u>[Base Salary](#ic4b68f9df5f645149bb3535a26afa3af_127)</u> | <u>[41](#ic4b68f9df5f645149bb3535a26afa3af_127)</u> |  |  |  |
|  | <u>[Short-Term Incentive Plan](#ic4b68f9df5f645149bb3535a26afa3af_127)</u> | <u>[41](#ic4b68f9df5f645149bb3535a26afa3af_127)</u> |  |  |  |
|  | <u>[Long-Term Incentive Plan](#ic4b68f9df5f645149bb3535a26afa3af_133)</u> | <u>[44](#ic4b68f9df5f645149bb3535a26afa3af_133)</u> |  |  |  |
|  | <u>[Compensation Decision Making Process](#ic4b68f9df5f645149bb3535a26afa3af_136)</u> | <u>[48](#ic4b68f9df5f645149bb3535a26afa3af_136)</u> |  |  |  |
|  | <u>[Executive Compensation Governance Components](#ic4b68f9df5f645149bb3535a26afa3af_139)</u> | <u>[50](#ic4b68f9df5f645149bb3535a26afa3af_139)</u> |  |  |  |

---

---

| | |
|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 01: Lithia Motors, Inc. Proxy Statement<sub>8</sub> |

---

**01**

**LITHIA MOTORS, INC. PROXY STATEMENT**

This proxy statement, the accompanying 2025 Annual Report on Form 10-K, the Notice of Annual Meeting and the proxy card are

being furnished to the shareholders of Lithia Motors, Inc., an Oregon corporation, in connection with the solicitation of proxies by the

Company for use at our 2026 Annual Meeting of Shareholders (the "Annual Meeting"). The Annual Meeting will only occur virtually

through an audio webcast, accessible at www.virtualshareholdermeeting.com/LAD2026 on Thursday, April 30, 2026, at 8:30 a.m.

Pacific Daylight Time. On or about March 11, 2026, we mailed to our shareholders a Notice of Internet Availability of Proxy Materials

(the "Notice") containing instructions on how to access this proxy statement and our 2025 Annual Report on Form 10-K. The Notice

provides instructions on how to vote online, by mail or by telephone and includes instructions on how to receive a paper copy of the

proxy materials by mail.

![](lad-20260311_g16.gif)

---

| | | |
|:---|:---|:---|
| **2025 Achievements & Performance Highlights** | **2025 Achievements & Performance Highlights** | **2025 Achievements & Performance Highlights** |
| <br>**$32.32**<br>**EPS** \| Up 10% v. prior year<br>| <br>**$826M**<br>**Net Income** \| Up 1% v. prior year<br>| <br>**$37.6B**<br>**Revenue** \| Up 4% v. prior year<br>|
| <br>**11.4%**<br>**of Shares Repurchased**<br>| <br>**$1.0B**<br>**Capital Returned** via Dividends and <br>Buybacks \| Up 148% v. prior year<br>| <br>**$2.4B**<br>Expected Annualized Revenue from <br>Key **2025 Acquisitions**<br>|

---

In 2025, Lithia & Driveway grew earnings per share by 10% and we recorded the highest revenue in our history as we continued to

expand our omnichannel ecosystem. In particular, we accomplished the following:

• Sold 828,000 units, continuing to establish Lithia & Driveway as the world's largest auto retailer

• Returned to class-leading growth in used vehicles, delivering 5.8% same-store growth in used vehicle revenue year-over-year

• Achieved 9.4% growth in aftersales gross profit on a same-store basis, demonstrating the resilience of this high-margin category

• Increased profitability in Financing Operations, including our captive lender, Driveway Finance Corporation, to $75 million, a $66

million year-over-year increase and scaled to a $4.8 billion portfolio at year-end

• Provided significant shareholder return with the repurchase of 11.4% of our outstanding shares at a weighted average price of

approximately $314

• Acquired $2.4 billion in revenue while optimizing our network and improved reach to within 200 miles of 95% of the US population

• Strengthened our key strategic partnerships with Pinewood.AI, a cloud-native global dealer management system and automotive

intelligence platform that delivers a seamless and scalable experience for stores and customers, and continued to mature our

investment in Wheels, the largest fleet management company in North America

---

| | |
|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 01: Lithia Motors, Inc. Proxy Statement<sub>9</sub> |

---

**Our Company Strategy**

Lithia & Driveway (LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and

convenient experiences throughout the ownership lifecycle. Our comprehensive network of physical locations, e-commerce

platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies delivers profitable growth in a

massive and unconsolidated industry. LAD's unique, highly diversified design provides the flexibility and scale to pursue its vision

to modernize personal transportation solutions wherever, whenever, and however consumers desire.

Our omnichannel ecosystem and international network of stores and customer solutions provide consistent free cash flow to fund our

growth through acquisitions and investments while maintaining a strong, disciplined balance sheet. Our growth and scale allow us to

improve the reach to our customers, grow our market share, and enhance our product and service offerings.

LAD is focused on improving the customer experience through all our channels. We continue to evolve and execute best-in-class

customer experiences across our stores and adjacencies to build loyalty and Earn Customers for Life. This strategy underpins our

long-term plan and positions us, along with our Driveway and GreenCars brands, store websites, and MyDriveway online customer

portal, to meet customers on their terms, creating Auto Done Easy.

Driveway Finance Corporation (DFC), our captive finance solution, continues to scale profitably. In 2025 we increased our portfolio

to nearly $5B and increased profitability to $75 million across Finance Operations. DFC diversifies our earnings stream, amplifying

future profitability. With DFC as our leading captive finance arm, we have room to expand the penetration rate and size of the

portfolio with high-quality loans at the top of the customer funnel.

Our regenerative cash flow engine enables us to allocate capital efficiently and flexibly. We repurchased over 11% of outstanding

shares in 2025 while maintaining balance sheet strength. We completed strategic acquisitions totaling $2.4 billion of annualized

revenues, strengthening our network density and luxury mix across key markets. Our capital deployment strategy is opportunistic

and responsive to market conditions, maintaining a balanced approach between share repurchases, selective acquisitions, and

organic investments. This approach ensures sustainable growth while generating long-term value for shareholders.

Our leaders and teams build an atmosphere of high performance and they Take Personal Ownership in driving our collective

success. As we achieve ambitious goals while transforming the industry, we find and grow talented team members who enjoy and

thrive in entrepreneurial environments. We reward growth and execution through pay for performance, special recognition programs,

such as the Lithia & Driveway Partners Group (LPG), and a company-wide focus on developing our best talent. These elements

![LAD_BubbleTimeline_02_20_26..jpg](lad-20260311_g17.jpg)

---

| | |
|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees<sub>10</sub> |

---

**02**

**Directors & Nominees**![1](lad-20260311_g18.gif)

![13](lad-20260311_g19.gif)

![25](lad-20260311_g20.gif)

![37](lad-20260311_g21.gif)

![49](lad-20260311_g22.gif)

**60%**

**80%**

**100%**

**Director/Nominee**

**Diversity**

**Director/Nominee** 

**Independence**

**Committee**

**Independence**

60% of directors and nominees

are gender or ethnically diverse.

80% of directors and nominees

are Independent.

100% of Board committee

members are Independent.

![](lad-20260311_g23.gif)

![](lad-20260311_g24.gif)

**2.9** 

**61.9** **Years**

**Years**

**Independent Director/Nominee**

**Average Tenure**

**Independent Director/Nominee**

**Average Age**

0-2 Years:

3-5 Years:

6-8 Years:

50-59 Years:

60-65 Years:

66-71 Years:

---

| | |
|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees<sub>11</sub> |

---

**Employee/Founder Directors**

**Independent Directors and Nominees** 

**Sidney B. DeBoer, 82**

**Chairman of the Board**

Founder of Lithia Motors, Inc.

Tenure: 29 years\*

![Louis_HighRes_Images_01_27_25.jpg](lad-20260311_g25.jpg)

**Louis P. Miramontes, 71**

**Lead Independent Director, Audit Chair**

Managing Partner at KPMG LLP (retired)

Audit Committee Financial Expert

Tenure: 8 years

Other Public Boards: 1

![Sidney_HighRes_Images_01_227_25.jpg](lad-20260311_g26.jpg)

![Bryan_HighResImage_01_22_25.jpg](lad-20260311_g27.jpg)

**Bryan B. DeBoer, 59**

**Chief Executive Officer** 

**and President**

Tenure: 18 years

**Stacy C. Loretz-Congdon, 66**

**Independent, Nominating and Governance Chair** 

SVP, CFO and Assistant Secretary,

Core-Mark Holding Company, Inc. (retired)

Audit Committee Financial Expert

Tenure: 3 years

![Stacy_HighRes_Images_01_27_25.jpg](lad-20260311_g28.jpg)

![Shauna_HighRes_images_02_05_25.jpg](lad-20260311_g29.jpg)

**Shauna F. McIntyre, 54**

**Independent, Compensation Chair**

CEO of Ensurge Micropower ASA

Tenure: 7 years

![](lad-20260311_g30.gif)

**2025 Committee Participation**

![](lad-20260311_g31.gif)

![Rick_HighRes_Images_02_06_26.jpg](lad-20260311_g32.jpg)

**Richard J. Bailey Jr., 55**

**Independent**

President of Southern Oregon University

Tenure: less than 1 year

**Audit Committee**

**Louis P. Miramontes**

James E. Lentz

Stacy C. Loretz-Congdon

Cassandra M. McKinney

Richard J. Bailey Jr.

Heidi L. O'Neill

**CHAIR**

![](lad-20260311_g33.gif)

**MEMBER**

![](lad-20260311_g34.gif)

**MEMBER**

![](lad-20260311_g34.gif)

![Priya_HighRes_Images_02_06_26.jpg](lad-20260311_g35.jpg)

**Priya C. Huskins, 53**

**Independent**

SVP and National Director, Arthur J. Gallagher & Co.

*Nominee* 

Other Public Boards: 2

**MEMBER**

![](lad-20260311_g34.gif)

**MEMBER**

![](lad-20260311_g34.gif)

**MEMBER**

![](lad-20260311_g34.gif)

![James_HighRes_Images_01_27_25.jpg](lad-20260311_g36.jpg)

**James E. Lentz, 70**

**Independent**

Toyota North America CEO (retired)

Tenure: 3 years

**Compensation Committee**

**Shauna F. McIntyre**

James E. Lentz

Cassandra M. McKinney

Louis P. Miramontes

**CHAIR**

![](lad-20260311_g33.gif)

**MEMBER**

![](lad-20260311_g34.gif)

![Cassandra_HighRes_Images_01_27_25.jpg](lad-20260311_g37.jpg)

**Cassandra M. McKinney, 65**

**Independent**

EVP, Executive Director of Retail,

Comerica Bank (retired)

Audit Committee Financial Expert

Tenure: 2 years

**MEMBER**

![](lad-20260311_g34.gif)

**MEMBER**

![](lad-20260311_g34.gif)

**Nominating & Governance Committee**

**Stacy C. Loretz-Congdon**

James E. Lentz

Shauna F. McIntyre

Louis P. Miramontes

**CHAIR**

![](lad-20260311_g33.gif)

**Heidi L. O'Neill, 61**

**Independent**

President of Consumer, Product, and Brand at

Nike, Inc. (retired)

Tenure: less than 1 year

![Heidi_HighRes_Images_02_06_26.jpg](lad-20260311_g38.jpg)

**MEMBER**

![](lad-20260311_g34.gif)

**MEMBER**

![](lad-20260311_g34.gif)

**MEMBER**

![](lad-20260311_g34.gif)

\*Board member tenure reflects years of service since the Company's initial public offering.

---

| | |
|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees<sub>12</sub> |

---

**Summary of Director Experience, Skills and Attributes**

**Skills and Attributes of our Board**

Our directors bring a balanced mix of skills, qualifications and experience and we believe their diverse backgrounds contribute to an

effective and well-balanced board. Listed below is a summary of the diverse skills and attributes of our Board of Directors:

---

| | | |
|:---|:---|:---|
| **Skills and Experience**  | **Skills and Experience**  | **Description** |
| ![2_G_Finance_HR.jpg](lad-20260311_g39.jpg) | **Finance** | Directors with an understanding of accounting, financial reporting, capital allocation processes and financial markets <br>are essential to ensuring effective oversight of our financial resources, risks and processes, and provide valuable <br>advice and insights with respect to establishing a successful capital strategy critical to our ongoing success.<br>|
| ![3_W_Lithia_Icon_Legal_Blue_HR.jpg](lad-20260311_g40.jpg) | **Legal and** <br>**Compliance**<br>| Directors with risk management and compliance oversight experience guide our Board and management in executing <br>their responsibilities to identify, evaluate and understand the magnitude of various risks facing the Company, and are <br>key in designing appropriate policies and procedures to effectively mitigate and manage those risks.<br>|
| ![4_G_Lithia_Icon_MoneyHandshake_Blue_HR.jpg](lad-20260311_g41.jpg) | **Executive** <br>**Compensation**<br>| Directors who have experience and expertise with tax, legal, securities and accounting issues are integral in setting <br>the compensation of our executive officers and designing and implementing effective incentive plans.<br>|
| ![5_W_Lithia_Icons_BlockRoadSign_Blue_HR.jpg](lad-20260311_g42.jpg) | **Risk** <br>**Management**<br>| Directors with experience in risk management guide our risk mitigation strategy beyond mere financial and <br>accounting risk, to encompass cyber, enterprise, compensation, supply chain, corporate responsibility and <br>governance risk management.<br>|
| ![6_G_Lithia_Icon_Earth_Blue_HR.jpg](lad-20260311_g43.jpg) | **International** | Directors with international or global markets experience bring valuable knowledge and perspective of global industry <br>dynamics to the Company and its international operations, including exposure to different cultural perspectives and <br>practices and different political and regulatory environments.<br>|
| ![7_W_Lithia_Icon_Analyzie_Blue_HR.jpg](lad-20260311_g44.jpg) | **Strategic**<br>**& Senior** <br>**Leadership**<br>| Directors with senior leadership experience in complex public, private and government organizations, whether as an <br>officer or board member, can effectively oversee the management of the Company and bring a valuable perspective <br>to important operational issues, strategy and initiatives to drive change and growth. These directors are generally <br>highly effective at motivating, managing and inspiring others and have talent, professional development and <br>succession planning skills.<br>|
| ![8_G_Lithia_Icon_PersonWithPaper_Blue_HR.jpg](lad-20260311_g45.jpg) | **Board Service**<br>**& Governance**<br>| Directors with corporate governance experience gained from service on or to company boards provide valuable <br>insight into the dynamics and operations of the Board and the impact that governance and compensation decisions <br>have on the Company and stockholders. Their skills support the Company's goals of strong corporate governance <br>practices through Board and management accountability, transparency, legal and regulatory compliance and <br>protection of stockholder interests.<br>|
| ![9_W_Lithia_Icon_Megaphone_Blue.jpg](lad-20260311_g46.jpg) | **Marketing,** <br>**Advertising &** <br>**Investor** <br>**Relations**<br>| Directors that have effectively engaged both customers and investors guide us as we seek to solidify an omnichannel <br>customer experience while listening to and protecting the interests of our stockholders.<br>|
| ![10_G_Lithia_Icon_Privacy&Security_Blue_HR.jpg](lad-20260311_g47.jpg) | **Technology,** <br>**Cybersecurity,** <br>**& Digital** <br>**Innovation**<br>| As we continue to drive digital innovation in our market and the broader environment, we rely upon directors with <br>experience in innovating across digital platforms and designing systems to protect our electronic infrastructure, as <br>well as our information and the information of our customers.<br>|
| ![11_W_Lithia_Icon_Handshake_Blue_HR.jpg](lad-20260311_g48.jpg) | **Mergers &** <br>**Acquisitions**<br>| Directors with strategic planning and merger and acquisition experience can provide insight as we identify the best <br>strategic manner in which to expand our business and drive growth either through innovative strategic initiatives or <br>acquisitions and other business ventures. Such individuals can provide valuable guidance on how to develop a <br>strategic plan and oversee the execution of key strategic initiatives and evaluating our progress of those initiatives.<br>|
| ![12_G_Lithia_Icon_HandHeart_Blue_HR.jpg](lad-20260311_g49.jpg) | **Human Rights**<br>**& Community** <br>**Responsibility**<br>| Directors who have experience advocating not just for shareholders, but stakeholders, provide valuable insight into <br>protecting the rights of people, our employees and the communities in which we do business, and are advocates of <br>social justice.<br>|
| ![13_W_Lithia_Proxy_CSR_Icons_Goal8_HR.jpg](lad-20260311_g50.jpg) | **Diversity**<br>**& Inclusion**<br>| Directors who have experience and expertise in building cultures that are rich in diversity, inclusion and equal <br>opportunity that can help us incorporate those same ideals into our human capital management strategy.<br>|

---

---

| | |
|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees<sub>13</sub> |

---

**Director and Nominee Biographies**

---

| | | |
|:---|:---|:---|
| ![Sidney_HighRes_Images_01_227_25 (1).jpg](lad-20260311_g26.jpg) | **Sidney B. DeBoer** | **Sidney B. DeBoer** |
| **Biography** | **Biography** | **Why Nominated** |
| Sidney B. DeBoer took Lithia Motors public in 1996 and is the Chairman <br>of the Board. Mr. DeBoer served as Chief Executive Officer and <br>Secretary from 1968 through 2011, and then as Executive Chairman <br>through the end of 2015. His charitable work on the Southern Oregon <br>University Foundation Board, Oregon Community Foundation and the <br>Oregon Shakespeare Festival has created a vibrant community for our <br>Company's headquarters. Mr. DeBoer attended Stanford University and <br>the University of Oregon. | Sidney B. DeBoer took Lithia Motors public in 1996 and is the Chairman <br>of the Board. Mr. DeBoer served as Chief Executive Officer and <br>Secretary from 1968 through 2011, and then as Executive Chairman <br>through the end of 2015. His charitable work on the Southern Oregon <br>University Foundation Board, Oregon Community Foundation and the <br>Oregon Shakespeare Festival has created a vibrant community for our <br>Company's headquarters. Mr. DeBoer attended Stanford University and <br>the University of Oregon. | Mr. DeBoer is the Chairman of the Board. Mr. <br>DeBoer's founder's spirit and pioneering work in the <br>public auto retail sector as an automotive dealer has <br>earned him numerous awards and recognition. His <br>familiarity with our business, executive leadership <br>knowledge and industry experience make him <br>uniquely qualified to serve as our Chair. Mr. DeBoer <br>has served on our board since 1968.<br>|

---

---

| | | |
|:---|:---|:---|
| ![Bryan_HighResImage_01_22_25.jpg](lad-20260311_g27.jpg) | **Bryan B. DeBoer** | **Bryan B. DeBoer** |
| **Biography** | **Biography** | **Why Nominated** |
| Prior to becoming CEO, Bryan B. DeBoer was Senior Vice President of <br>Mergers & Acquisitions/Operations and then Chief Operating Officer, <br>driving the growth of Lithia and transforming the Company culture to an <br>entrepreneurial and high-performance model. Upon joining Lithia in <br>1989, Mr. DeBoer grew through the store positions of Finance Manager, <br>Used Vehicle Manager, General Sales Manager, General Manager and <br>multi-store General Manager. Mr. DeBoer has a B.S. degree, summa <br>cum laude, from Southern Oregon University in Business Administration. <br>He also graduated from the National Automobile Dealers Association <br>Dealer Academy. | Prior to becoming CEO, Bryan B. DeBoer was Senior Vice President of <br>Mergers & Acquisitions/Operations and then Chief Operating Officer, <br>driving the growth of Lithia and transforming the Company culture to an <br>entrepreneurial and high-performance model. Upon joining Lithia in <br>1989, Mr. DeBoer grew through the store positions of Finance Manager, <br>Used Vehicle Manager, General Sales Manager, General Manager and <br>multi-store General Manager. Mr. DeBoer has a B.S. degree, summa <br>cum laude, from Southern Oregon University in Business Administration. <br>He also graduated from the National Automobile Dealers Association <br>Dealer Academy. | Mr. DeBoer has been our CEO and President since <br>2012 and first became a director in 2008. Mr. <br>DeBoer's store experience, passion for mergers and <br>acquisitions and demonstrated ability to develop <br>strong manufacturer relationships drive our growth. <br>His enthusiasm for the car business combined with a <br>visionary spirit set the tone for our innovative and <br>entrepreneurial culture.<br>|

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| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees<sub>14</sub> |

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| ![Rick_HighRes_Images_02_06_26.jpg](lad-20260311_g32.jpg) | **Richard J. Bailey Jr.** | **Richard J. Bailey Jr.** |
| **Biography** | **Biography** | **Why Nominated** |
| Richard J. Bailey Jr. has served as the President and Chief Executive <br>Officer of Southern Oregon University since January 2022, and before <br>that oversaw the resurgence of Northern New Mexico College, where he <br>served as President from October 2016 to January 2022. Prior to that, <br>Mr. Bailey completed a 24-year career with the U.S. Air Force, retiring as <br>a full colonel and command pilot with more than 3,500 flying hours. From <br>2012 to 2016, Mr. Bailey also taught cybersecurity and cyber strategy for <br>the U.S. Air Force. Dr. Bailey received a bachelor's degree in <br>engineering sciences from the Air Force Academy, a master's degree in <br>international affairs from Washington University (St. Louis), and a <br>doctorate degree in government from Georgetown University. | Richard J. Bailey Jr. has served as the President and Chief Executive <br>Officer of Southern Oregon University since January 2022, and before <br>that oversaw the resurgence of Northern New Mexico College, where he <br>served as President from October 2016 to January 2022. Prior to that, <br>Mr. Bailey completed a 24-year career with the U.S. Air Force, retiring as <br>a full colonel and command pilot with more than 3,500 flying hours. From <br>2012 to 2016, Mr. Bailey also taught cybersecurity and cyber strategy for <br>the U.S. Air Force. Dr. Bailey received a bachelor's degree in <br>engineering sciences from the Air Force Academy, a master's degree in <br>international affairs from Washington University (St. Louis), and a <br>doctorate degree in government from Georgetown University. | Mr. Bailey joined our Board in October of 2025 and <br>brings with him a track record of operational <br>excellence, strategic oversight, human capital <br>management, and cybersecurity expertise as a full <br>Colonel in the U.S. Air Force and distinguished <br>university president. Mr. Bailey serves on our Audit <br>Committee.<br>|

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| ![Priya_HighRes_Images_02_06_26.jpg](lad-20260311_g35.jpg) | **Priya C. Huskins** | **Priya C. Huskins** |
| **Biography** | **Biography** | **Why Nominated** |
| Priya C. Huskins is a Senior Vice President and National Director for <br>Arthur J. Gallagher & Co., a commercial insurance brokerage. She <br>assumed this role following Gallagher's acquisition of Woodruff Sawyer & <br>Co. in 2025, where she has served in various positions since 2003, <br>including as a Partner and Senior Vice President since 2005, as a member <br>of Woodruff Sawyer's board of directors since 2016, and as the Presiding <br>Director of that board beginning in 2023. Prior to that, Ms. Huskins was a <br>corporate and securities attorney at the law firm Wilson Sonsini Goodrich <br>& Rosati from 1997 to 2003. She also has sat on the advisory board of the <br>Stanford Rock Center for Corporate Governance since 2012. Since 2007, <br>Ms. Huskins has served on the board of directors of Realty Income <br>Corporation (NYSE: O) where she currently chairs the Compensation and <br>Talent Committee and sits on the Nominating/Governance Committee. <br>Since 2021, she has been a member of the board for NMI Holdings, Inc. <br>(Nasdaq: NMIH), where she currently serves as a member of the <br>Compensation committee and Governance and Nominating committee. <br>Ms. Huskins is also a member of the board of the Long Term Stock <br>Exchange, a role she has held since 2022. She previously served as lead <br>independent director of Anzu SPAC I (Nasdaq: ANZUU), which became <br>Envoy Medical, Inc. (Nasdaq: COCH), from 2021 to 2023. Ms. Huskins <br>holds a Juris Doctorate degree from the University of Chicago Law School <br>and an undergraduate degree from Harvard College. | Priya C. Huskins is a Senior Vice President and National Director for <br>Arthur J. Gallagher & Co., a commercial insurance brokerage. She <br>assumed this role following Gallagher's acquisition of Woodruff Sawyer & <br>Co. in 2025, where she has served in various positions since 2003, <br>including as a Partner and Senior Vice President since 2005, as a member <br>of Woodruff Sawyer's board of directors since 2016, and as the Presiding <br>Director of that board beginning in 2023. Prior to that, Ms. Huskins was a <br>corporate and securities attorney at the law firm Wilson Sonsini Goodrich <br>& Rosati from 1997 to 2003. She also has sat on the advisory board of the <br>Stanford Rock Center for Corporate Governance since 2012. Since 2007, <br>Ms. Huskins has served on the board of directors of Realty Income <br>Corporation (NYSE: O) where she currently chairs the Compensation and <br>Talent Committee and sits on the Nominating/Governance Committee. <br>Since 2021, she has been a member of the board for NMI Holdings, Inc. <br>(Nasdaq: NMIH), where she currently serves as a member of the <br>Compensation committee and Governance and Nominating committee. <br>Ms. Huskins is also a member of the board of the Long Term Stock <br>Exchange, a role she has held since 2022. She previously served as lead <br>independent director of Anzu SPAC I (Nasdaq: ANZUU), which became <br>Envoy Medical, Inc. (Nasdaq: COCH), from 2021 to 2023. Ms. Huskins <br>holds a Juris Doctorate degree from the University of Chicago Law School <br>and an undergraduate degree from Harvard College. | If elected, Ms. Huskins will bring to the Board more <br>than 25 years of recognized leadership as a teacher, <br>writer, advisor and practitioner on a broad range of <br>board governance matters, including risk oversight, <br>executive compensation, complex legal and regulatory <br>matters, and shareholder relations. <br>|

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| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees | 15 |

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| ![James_HighRes_Images_01_27_25.jpg](lad-20260311_g36.jpg) | **James E. Lentz** | **James E. Lentz** |
| **Biography** | **Biography** | **Why Nominated** |
| James E. Lentz spent the majority of his more than 40 year career in the <br>auto industry at Toyota, where he served as Chief Executive Officer for <br>Toyota Motor North America from 2013 until his retirement in 2020. <br>During his 38 years with Toyota, Mr. Lentz oversaw all business for <br>Toyota's North American region, including manufacturing, research and <br>development, sales, marketing, product support, and corporate <br>resources. Mr. Lentz led and contributed to several key milestones in <br>Toyota's history, including the Scion brand launch and the recognition of <br>Toyota and Lexus brands as leaders in customer experience. He has <br>been named "Marketer of the Year" by Advertising Age, an "All-Star" by <br>Automotive News, and "Industry Leader of the Year" by the Automotive <br>Hall of Fame. Mr. Lentz also serves as an advisor to several private <br>companies. Mr. Lentz earned both his undergraduate degree and M.B.A. <br>in Finance from the University of Denver.  | James E. Lentz spent the majority of his more than 40 year career in the <br>auto industry at Toyota, where he served as Chief Executive Officer for <br>Toyota Motor North America from 2013 until his retirement in 2020. <br>During his 38 years with Toyota, Mr. Lentz oversaw all business for <br>Toyota's North American region, including manufacturing, research and <br>development, sales, marketing, product support, and corporate <br>resources. Mr. Lentz led and contributed to several key milestones in <br>Toyota's history, including the Scion brand launch and the recognition of <br>Toyota and Lexus brands as leaders in customer experience. He has <br>been named "Marketer of the Year" by Advertising Age, an "All-Star" by <br>Automotive News, and "Industry Leader of the Year" by the Automotive <br>Hall of Fame. Mr. Lentz also serves as an advisor to several private <br>companies. Mr. Lentz earned both his undergraduate degree and M.B.A. <br>in Finance from the University of Denver.  | Mr. Lentz joined our Board in October of 2022. With <br>his tenured career in the automotive industry, and <br>extensive experience in corporate resources, Mr. <br>Lentz is lending his significant industry and leadership <br>expertise while serving on our Compensation, Audit <br>and Nominating and Governance committees. <br>|

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| ![Stacy_HighRes_Images_01_27_25.jpg](lad-20260311_g28.jpg) | **Stacy C. Loretz-Congdon** | **Stacy C. Loretz-Congdon** |
| **Biography** | **Biography** | **Why Nominated** |
| Stacy C. Loretz-Congdon, in 2016 and after 26 years of service, retired <br>from Core-Mark Holding Company, Inc., one of the largest marketers of <br>fresh and broad-line supply solutions to the convenience retail industry <br>and a Fortune 500 company which merged with Performance Food <br>Group Company (NYSE: PFGC) in 2021. Ms. Loretz-Congdon served in <br>various capacities at Core-Mark, including as Senior Vice President, <br>Chief Financial Officer and Assistant Secretary, as well as a member of <br>Core-Mark's Information Technology Steering Committee and the <br>Investment Committee, from December 2006 to May 2016. Ms. Loretz-<br>Congdon also served on the board of Core-Mark Families Foundation, a <br>non-profit providing scholarships to children, from 2015 to 2023, and <br>previously served on the board of Farmer Bros. Co (Nasdaq: FARM), <br>including as Audit Committee Chair, until the end of her term in February <br>2025. She has been named as one of the Top 50 female CFOs in the <br>Fortune 500 by Business Insider and Convenience Store News named <br>her Woman of the Year (both in 2015). Prior to joining Core-Mark, Ms. <br>Loretz-Congdon was an auditor for Coopers & Lybrand. Ms. Loretz-<br>Congdon received her Bachelor of Science degree in Accounting from <br>California State University, San Francisco. | Stacy C. Loretz-Congdon, in 2016 and after 26 years of service, retired <br>from Core-Mark Holding Company, Inc., one of the largest marketers of <br>fresh and broad-line supply solutions to the convenience retail industry <br>and a Fortune 500 company which merged with Performance Food <br>Group Company (NYSE: PFGC) in 2021. Ms. Loretz-Congdon served in <br>various capacities at Core-Mark, including as Senior Vice President, <br>Chief Financial Officer and Assistant Secretary, as well as a member of <br>Core-Mark's Information Technology Steering Committee and the <br>Investment Committee, from December 2006 to May 2016. Ms. Loretz-<br>Congdon also served on the board of Core-Mark Families Foundation, a <br>non-profit providing scholarships to children, from 2015 to 2023, and <br>previously served on the board of Farmer Bros. Co (Nasdaq: FARM), <br>including as Audit Committee Chair, until the end of her term in February <br>2025. She has been named as one of the Top 50 female CFOs in the <br>Fortune 500 by Business Insider and Convenience Store News named <br>her Woman of the Year (both in 2015). Prior to joining Core-Mark, Ms. <br>Loretz-Congdon was an auditor for Coopers & Lybrand. Ms. Loretz-<br>Congdon received her Bachelor of Science degree in Accounting from <br>California State University, San Francisco. | Ms. Loretz-Congdon joined our Board in April 2023. <br>She brings to our Board her deep experience in <br>accounting and the oversight of Fortune 500 public <br>company finance functions, including all corporate <br>finance disciplines, strategy execution, risk mitigation, <br>investor relations, as well as involvement with human <br>capital management and technology initiatives. She is <br>also an audit committee financial expert as defined <br>under SEC rules, and serves on our Audit Committee <br>and chairs our Nominating and Governance <br>Committee.<br>|

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| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees | 16 |

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| ![Shauna_HighRes_images_02_05_25.jpg](lad-20260311_g29.jpg) | **Shauna F. McIntyre** | **Shauna F. McIntyre** |
| **Biography** | **Biography** | **Why Nominated** |
| Shauna F. McIntyre has spent the majority of her 30-year career leading <br>and scaling technology-driven businesses at the intersection of industrial <br>automation, energy, and mobility and is a four-time CEO with experience <br>revitalizing companies for growth. Since August of 2025, she has served <br>as CEO of Ensurge Micropower ASA (OL: ENSU), a microbattery <br>developer and manufacturer. Prior to that, she was the Deputy CEO of <br>Northvolt North America from August 2024 to November 2024, and CEO <br>of Cuberg, Northvolt's advanced energy storage subsidiary, from <br>February 2024 to August 2024. Ms. McIntyre ran an advisory practice to <br>private equity and other firms from June 2022 to February 2024. She <br>also restructured operations for Electric Last Mile Solutions (NASDAQ: <br>ELMS) while serving as their interim CEO from February 2022 to June <br>2022, navigating the company through its bankruptcy process. Prior, she <br>scaled Sense Photonics technology business to a successful exit as their <br>CEO from April 2020 until October 2021. Ms. McIntyre was also the <br>program lead for Google's automotive services from May 2018 to April <br>2020. Ms. McIntyre holds an M.B.A. from Harvard Business School and <br>an M.S. and B.S in Mechanical Engineering from University of California, <br>Berkeley and the University of California, Los Angeles, respectively. | Shauna F. McIntyre has spent the majority of her 30-year career leading <br>and scaling technology-driven businesses at the intersection of industrial <br>automation, energy, and mobility and is a four-time CEO with experience <br>revitalizing companies for growth. Since August of 2025, she has served <br>as CEO of Ensurge Micropower ASA (OL: ENSU), a microbattery <br>developer and manufacturer. Prior to that, she was the Deputy CEO of <br>Northvolt North America from August 2024 to November 2024, and CEO <br>of Cuberg, Northvolt's advanced energy storage subsidiary, from <br>February 2024 to August 2024. Ms. McIntyre ran an advisory practice to <br>private equity and other firms from June 2022 to February 2024. She <br>also restructured operations for Electric Last Mile Solutions (NASDAQ: <br>ELMS) while serving as their interim CEO from February 2022 to June <br>2022, navigating the company through its bankruptcy process. Prior, she <br>scaled Sense Photonics technology business to a successful exit as their <br>CEO from April 2020 until October 2021. Ms. McIntyre was also the <br>program lead for Google's automotive services from May 2018 to April <br>2020. Ms. McIntyre holds an M.B.A. from Harvard Business School and <br>an M.S. and B.S in Mechanical Engineering from University of California, <br>Berkeley and the University of California, Los Angeles, respectively. | Ms. McIntyre joined our Board in April 2019. Ms. <br>McIntyre brings a wealth of knowledge and expertise <br>to our Board in a wide variety of subjects within the <br>automotive industry, including manufacturing, cyber <br>security, technology, innovation, E-commerce, finance, <br>management and operations. Ms. McIntyre was <br>selected to serve on our Board of Directors because of <br>her valuable strategic, industry and leadership <br>experience. Ms. McIntyre chairs our Compensation <br>Committee and serves on our Nominating and <br>Governance Committee.<br>|

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| ![Cassandra_HighRes_Images_01_27_25.jpg](lad-20260311_g37.jpg) | **Cassandra M. McKinney** | **Cassandra M. McKinney** |
| **Biography** | **Biography** | **Why Nominated** |
| Cassandra M. McKinney has over 30 years of experience as a senior <br>executive, primarily with prominent banking institutions. Prior to her <br>retirement from Comerica Bank (NYSE: CMA) in April of 2025, she had <br>served as Comerica's EVP, Retail Bank since April of 2020 and as a <br>member of Comerica's Management Executive Committee where she <br>was responsible for the company's Consumer and Small Business <br>banking segment. Prior to that role, Ms. McKinney served as SVP, <br>Director Retail Bank Product and Operations Group for Comerica from <br>2016 to 2020. Prior to working in the banking sector, Ms. McKinney spent <br>11 years with IBM (NYSE: IBM) in technology information systems and <br>sales and service management. Ms. McKinney also served as a Director <br>and on the Education Committee for the Consumer Banking Association, <br>and is a member of the Executive Leadership Counsel of The Links <br>Incorporated. She holds Bachelor's Degrees in Chemical Engineering <br>from Columbia University and Chemistry from Dillard University. | Cassandra M. McKinney has over 30 years of experience as a senior <br>executive, primarily with prominent banking institutions. Prior to her <br>retirement from Comerica Bank (NYSE: CMA) in April of 2025, she had <br>served as Comerica's EVP, Retail Bank since April of 2020 and as a <br>member of Comerica's Management Executive Committee where she <br>was responsible for the company's Consumer and Small Business <br>banking segment. Prior to that role, Ms. McKinney served as SVP, <br>Director Retail Bank Product and Operations Group for Comerica from <br>2016 to 2020. Prior to working in the banking sector, Ms. McKinney spent <br>11 years with IBM (NYSE: IBM) in technology information systems and <br>sales and service management. Ms. McKinney also served as a Director <br>and on the Education Committee for the Consumer Banking Association, <br>and is a member of the Executive Leadership Counsel of The Links <br>Incorporated. She holds Bachelor's Degrees in Chemical Engineering <br>from Columbia University and Chemistry from Dillard University. | Ms. McKinney joined our Board in July of 2024 and <br>brings to our Board her executive experience in <br>banking, accounting, financial reporting, strategy, <br>innovation, retail and value creation. Ms. McKinney <br>serves on both our Audit and Compensation <br>committees. Ms. McKinney is an audit committee <br>financial expert as defined under SEC rules.<br>|

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| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees | 17 |

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| ![Louis_HighRes_Images_01_27_25.jpg](lad-20260311_g25.jpg) | **Louis P. Miramontes** | **Louis P. Miramontes** |
| **Biography** | **Biography** | **Why Nominated** |
| Louis P. Miramontes has been an independent financial advisor since <br>2014. Mr. Miramontes serves on the board of directors of Oportun <br>Financial Corporation (Nasdaq: OPRT), where he is a member of the <br>Audit and Nominating and Governance committees, and previously <br>served on the board of directors of Rite Aid Corporation until August <br>2023. He also provides advisory services to a real estate development <br>company. Previously, Mr. Miramontes had a distinguished 38-year career <br>at KPMG until his retirement in 2014, where he served in many <br>leadership roles, including managing partner of the San Francisco office <br>and Senior Partner for the Latin America region. He provided audit <br>services to public and private clients in the retail, financial services, and <br>real estate sectors. Mr. Miramontes holds a B.S. degree in Business <br>Administration from California State University, East Bay. | Louis P. Miramontes has been an independent financial advisor since <br>2014. Mr. Miramontes serves on the board of directors of Oportun <br>Financial Corporation (Nasdaq: OPRT), where he is a member of the <br>Audit and Nominating and Governance committees, and previously <br>served on the board of directors of Rite Aid Corporation until August <br>2023. He also provides advisory services to a real estate development <br>company. Previously, Mr. Miramontes had a distinguished 38-year career <br>at KPMG until his retirement in 2014, where he served in many <br>leadership roles, including managing partner of the San Francisco office <br>and Senior Partner for the Latin America region. He provided audit <br>services to public and private clients in the retail, financial services, and <br>real estate sectors. Mr. Miramontes holds a B.S. degree in Business <br>Administration from California State University, East Bay. | Mr. Miramontes joined our Board in 2018 and has <br>extensive experience in accounting, financial reporting <br>and corporate governance. He is our Lead <br>Independent Director, chairs our Audit Committee and <br>serves on our Nominating and Governance Committee <br>and our Compensation Committee. Mr. Miramontes is <br>also an audit committee financial expert as defined <br>under SEC rules.<br>|

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| ![Heidi_HighRes_Images_02_06_26.jpg](lad-20260311_g38.jpg) | **Heidi L. O'Neill** | **Heidi L. O'Neill** |
| **Biography** | **Biography** | **Why Nominated** |
| Heidi L. O'Neill is an experienced corporate leader, executive and board <br>member. She recently concluded a 27 year tenure with Nike, Inc. <br>(NYSE: NKE) in May of 2025, where she retired as President of <br>Consumer, Product, and Brand at Nike, Inc. In that role, Ms. O'Neill led <br>the integration of global men's, women's and kid's consumer and sport <br>teams, the entire global product and innovation engine, and global brand <br>marketing and sports marketing. Prior to that, Ms. O'Neill held a variety <br>of leadership roles at Nike, including President of Consumer and <br>Marketplace, President of Nike Direct, and leading Nike's North America <br>apparel business as VP/GM. Ms. O'Neill currently serves as a board <br>member for Spotify Technology S.A. (NYSE: SPOT), a role she has held <br>since 2017, where she is a member of the People Experience and <br>Compensation Committee. Ms. O'Neill is also a board member for Hyatt <br>Hotels Corporation (NYSE: H), a role she has held since 2023, where <br>she is a member of the Talent and Compensation Committee. Ms. <br>O'Neill studied journalism at the University of Colorado–Boulder. | Heidi L. O'Neill is an experienced corporate leader, executive and board <br>member. She recently concluded a 27 year tenure with Nike, Inc. <br>(NYSE: NKE) in May of 2025, where she retired as President of <br>Consumer, Product, and Brand at Nike, Inc. In that role, Ms. O'Neill led <br>the integration of global men's, women's and kid's consumer and sport <br>teams, the entire global product and innovation engine, and global brand <br>marketing and sports marketing. Prior to that, Ms. O'Neill held a variety <br>of leadership roles at Nike, including President of Consumer and <br>Marketplace, President of Nike Direct, and leading Nike's North America <br>apparel business as VP/GM. Ms. O'Neill currently serves as a board <br>member for Spotify Technology S.A. (NYSE: SPOT), a role she has held <br>since 2017, where she is a member of the People Experience and <br>Compensation Committee. Ms. O'Neill is also a board member for Hyatt <br>Hotels Corporation (NYSE: H), a role she has held since 2023, where <br>she is a member of the Talent and Compensation Committee. Ms. <br>O'Neill studied journalism at the University of Colorado–Boulder. | Ms. O'Neill joined our Board in October of 2025, and <br>brings her deep executive, leadership, retail, marketing <br>and brand design experience to our Board. She is also <br>a seasoned director with experience overseeing <br>companies in the midst of growth. Ms. O'Neill serves <br>as a member of our Audit Committee.<br>|

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| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees | 18 |

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**Other Executive Officers**

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| ![Charles_HighRes_Images_02_19_26.jpg](lad-20260311_g51.jpg) | **Chuck D. Lietz**<br>Senior Vice President, Finance<br>|
| **Biography** | **Biography** |
| Charles (Chuck) D. Lietz is our Senior Vice President, Finance, a role he has held since February 2023. Mr. Lietz joined Lithia in <br>April 2019 as our Vice President, Finance, and served in that role until his elevation to Senior Vice President. In his current role, <br>Mr. Lietz oversees Driveway Finance Corporation (DFC), our captive finance company. Prior to joining Lithia, Mr. Lietz was the <br>Managing Director of U.S. Bank's (NYSE:USB) Dealer Commercial Services group and as the Business Office Director for <br>Precision Interconnect, a division of Tyco International's medical products group. Mr. Lietz holds a bachelor's degree in accounting <br>from the University of Portland (Oregon), as well as a master's degree in business administration from Washington State <br>University. | Charles (Chuck) D. Lietz is our Senior Vice President, Finance, a role he has held since February 2023. Mr. Lietz joined Lithia in <br>April 2019 as our Vice President, Finance, and served in that role until his elevation to Senior Vice President. In his current role, <br>Mr. Lietz oversees Driveway Finance Corporation (DFC), our captive finance company. Prior to joining Lithia, Mr. Lietz was the <br>Managing Director of U.S. Bank's (NYSE:USB) Dealer Commercial Services group and as the Business Office Director for <br>Precision Interconnect, a division of Tyco International's medical products group. Mr. Lietz holds a bachelor's degree in accounting <br>from the University of Portland (Oregon), as well as a master's degree in business administration from Washington State <br>University. |

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| ![Katie_HighRes_Images_02_19_26.jpg](lad-20260311_g52.jpg) | **Katie L. Macaddino**<br>Senior Vice President, People and Culture<br>|
| **Biography** | **Biography** |
| Katherine (Katie) L. Macaddino is our Senior Vice President, People & Culture, a role she has held since January 2026. Ms. <br>Macaddino joined Lithia in 2021 with responsibilities over our People and Culture strategy, first as a Director and then as a Senior <br>Director, before her elevation to Senior Vice President. Before joining Lithia, Ms. Macaddino was a Director, Technologist Learning <br>and Development, with Intel Corporation (NASDAQ: INTC). Ms. Macaddino holds a master's degree in human resources <br>management from Cornell University and a bachelor's degree in business management from Portland State University (Oregon).  | Katherine (Katie) L. Macaddino is our Senior Vice President, People & Culture, a role she has held since January 2026. Ms. <br>Macaddino joined Lithia in 2021 with responsibilities over our People and Culture strategy, first as a Director and then as a Senior <br>Director, before her elevation to Senior Vice President. Before joining Lithia, Ms. Macaddino was a Director, Technologist Learning <br>and Development, with Intel Corporation (NASDAQ: INTC). Ms. Macaddino holds a master's degree in human resources <br>management from Cornell University and a bachelor's degree in business management from Portland State University (Oregon).  |

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| ![Tina_HighResImage_01_22_25.jpg](lad-20260311_g53.jpg) | **Tina H. Miller**<br>Senior Vice President and Chief Financial Officer (CFO)<br>|
| **Biography** | **Biography** |
| Tina H. Miller is our Senior Vice President, Chief Financial Officer (CFO), leading the accounting, tax, corporate finance, financial <br>planning and analysis, risk management and treasury functions, and has served in this role since August 2019. She joined Lithia in <br>2005, working in internal audit and corporate accounting before being promoted to Corporate Controller in 2015 and Vice President <br>in 2018. Before Lithia, Ms. Miller worked as an auditor at Ernst & Young in their assurance practice. She graduated from Santa <br>Clara University with a B.S. in Accounting and is a licensed CPA in Oregon. | Tina H. Miller is our Senior Vice President, Chief Financial Officer (CFO), leading the accounting, tax, corporate finance, financial <br>planning and analysis, risk management and treasury functions, and has served in this role since August 2019. She joined Lithia in <br>2005, working in internal audit and corporate accounting before being promoted to Corporate Controller in 2015 and Vice President <br>in 2018. Before Lithia, Ms. Miller worked as an auditor at Ernst & Young in their assurance practice. She graduated from Santa <br>Clara University with a B.S. in Accounting and is a licensed CPA in Oregon. |

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|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 02: Directors and Nominees | 19 |

---

---

| | |
|:---|:---|
| ![David_S_HighRes_Images_01_28_25.jpg](lad-20260311_g54.jpg) | **David G. Stork**<br>Senior Vice President and Chief Administrative Officer<br>|
| **Biography** | **Biography** |
| David G. Stork is our Senior Vice President and Chief Administrative Officer and began serving in that role in 2021. Prior to that, <br>Mr. Stork served as our Chief Legal Officer starting when he joined Lithia in December 2018. Before joining Lithia, David was <br>General Counsel and Head of Compliance at JELD-WEN, Inc., and served as General Counsel and Director of risk management <br>for Krause Gentle Companies. His expertise in innovation, diversification, risk management, compliance, mergers and acquisitions <br>and the enhancement of intellectual property are beneficial as Lithia grows and diversifies. Mr. Stork holds a bachelor's degree in <br>Literature and Economics from Luther College and a Juris Doctorate from the University of Minnesota Law School.  | David G. Stork is our Senior Vice President and Chief Administrative Officer and began serving in that role in 2021. Prior to that, <br>Mr. Stork served as our Chief Legal Officer starting when he joined Lithia in December 2018. Before joining Lithia, David was <br>General Counsel and Head of Compliance at JELD-WEN, Inc., and served as General Counsel and Director of risk management <br>for Krause Gentle Companies. His expertise in innovation, diversification, risk management, compliance, mergers and acquisitions <br>and the enhancement of intellectual property are beneficial as Lithia grows and diversifies. Mr. Stork holds a bachelor's degree in <br>Literature and Economics from Luther College and a Juris Doctorate from the University of Minnesota Law School.  |

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 20 |

---

**03**

**CORPORATE GOVERNANCE**

Board Leadership and Structure

**Board of Directors**

Our Bylaws provide for not fewer than five directors. Our Board has the discretion to set the size of our board from time to time. Our

Board has set the number of directors at ten, effective as of the Annual Meeting.

There is no requirement that directors attend our Annual Meeting, but directors are encouraged to do so. Our Board held eighteen

meetings in 2025. Each incumbent director attended at least 80% of all meetings of the Board and of the Board committees on which

the director served. All of our directors then in office attended our 2025 Annual Meeting of Shareholders.

**2025 Board and Committee Composition**

The Board has three standing committees, each of which operates under a charter that has been approved by the Board. The

Chair of each committee reviews and discusses the agendas and materials for meetings with senior management in advance of

distribution to the other committee members, and reports to the Board on actions taken at each committee meeting. The following

table sets forth the current membership of each committee. Priya C. Huskins is nominated for election to the Board at the Annual

Meeting. The Board will consider committee appointments for Ms. Huskins if she is elected to the Board.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Director** |  | **Audit** | **Compensation** | **Nominating & Governance** |
| **Sidney B. DeBoer** | CB |  |  |  |
| **Bryan B. DeBoer** |  |  |  |  |
| **Richard J. Bailey Jr.** | I | •  |  |  |
| **James E. Lentz** | I | •  | •  | •  |
| **Stacy C. Loretz-Congdon** | I | •  |  | C |
| **Shauna F. McIntyre** | I |  | C | •  |
| **Cassandra M. McKinney** | I | •  | •  |  |
| **Louis P. Miramontes** | LI | C | •  | •  |
| **Heidi L. O'Neill** | I | •  |  |  |

---

**CB** = Chairman of the Board**I** = Independent Director **LI** = Lead Independent Director **C** = Committee Chairman

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 21 |

---

**Board Committees**

Our Board has three standing committees: the Audit Committee, the Compensation Committee and the Nominating and Governance

Committee. Each committee member is an independent director under New York Stock Exchange (NYSE) listing standards,

including, with respect to members of the Audit Committee and the Compensation Committee, under the enhanced independence

standards that apply to members of those committees. A written copy of our committee charters, Corporate Governance Guidelines,

Code of Business Conduct and Ethics, and Shareholder Communications Policy may be obtained by contacting our Investor

Relations Department, Lithia Motors, Inc., 150 N. Bartlett Street, Medford, Oregon 97501. These documents are also available on

our Investor Relations website at investors.lithiadriveway.com.

**The Audit Committee**

Our Audit Committee is responsible for the engagement, evaluation and oversight of our independent auditors; the review of our

financial statements and financial disclosure; the assessment of our accounting practices and policies and risk management; the

review of our internal audit function and effectiveness of internal controls; and approving related party transactions; among other

duties. The Audit Committee serves as a conduit to promote open communication between the independent auditors, the accounting

department, the Company's internal auditors, management and the Board in furtherance of our commitment to accurate financial

reporting, sound financial risk practices, and ethical behavior. The Audit Committee routinely meets in executive session with

representatives from KPMG, our Chief Financial Officer and our Director of Internal Audit. Our Director of Internal Audit reports

directly to the chair of the Audit Committee. The Audit Committee held eight meetings during 2025. To ensure sufficient attention to

the duties of our Audit Committee, committee members may not serve on more than two other public company audit committees. In

addition to meeting the independence requirement for audit committee members, each current member of the Audit Committee also

meets the financial literacy and experience requirements contained in the corporate governance listing standards of the NYSE. Our

Board has reviewed the qualifications and experience of the nominees standing for election and has determined that both Mses.

Loretz-Congdon and McKinney and Mr. Miramontes satisfy the requirements of an "audit committee financial expert" as defined by

SEC rules.

**The Compensation Committee**

Our Compensation Committee is responsible for our executive compensation philosophy and design. The Compensation Committee

annually reviews the performance of, and determines the salary and the variable, long-term and other compensation for, our Chief

Executive Officer. The Compensation Committee also reviews and approves the compensation for other executive officers and

reviews and recommends the compensation for non-employee Board members.

The primary purpose of the Compensation Committee is to discharge the responsibilities of the Board relating to the compensation

of the CEO and our other executive officers and make recommendations to the Board with respect to compensation of our non-

employee directors. The Compensation Committee has overall responsibility for evaluating and, as appropriate, approving or

recommending to the Board compensation plans, policies and programs of the Company as they affect the executive officers. The

Compensation Committee is also responsible for providing input to the Board regarding executive officer succession and talent

development, and reviewing the Company's policies, programs and initiatives regarding human capital management and providing

guidance to the Board and management on these matters.

The Compensation Committee has the authority, in its sole discretion, to select, retain and obtain the advice of a compensation

consultant and outside legal counsel as necessary to assist with the execution of its duties and responsibilities. In 2025, the

Compensation Committee retained Pay Governance LLC ("Pay Governance") to provide advice and counsel. Pay Governance

provided compensation advice with respect to our named executive officers as detailed in the "Compensation Discussion and

Analysis" sections of this proxy statement among other executive compensation advice. The Compensation Committee administers

our employee benefits plans with respect to the participation of our executive officers, including our 2013 Amended and Restated

Stock Incentive Plan, 2009 Employee Stock Purchase Plan, Short-Term Incentive Plan and Executive Management Non-Qualified

Deferred Compensation and Supplemental Executive Retirement Plan (SERP). The Compensation Committee certifies and

approves payments based on performance measures. The Compensation Committee held six meetings in 2025.

See "*<u>[Compensation Discussion and Analysis](#ic4b68f9df5f645149bb3535a26afa3af_109)</u>*", below, for more information on our compensation philosophy and how the

Compensation Committee determines the compensation of our executive officers.

The Compensation Committee assessed the independence of Pay Governance pursuant to SEC and NYSE rules and determined

that no conflict of interest exists that would prevent Pay Governance from independently representing the Compensation Committee.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 22 |

---

In making this assessment, the Compensation Committee considered each of the factors set forth by the Securities and Exchange

Commission (SEC) and the NYSE with respect to Pay Governance's independence, including that Pay Governance provided no

services for the Company other than pursuant to its engagement by the Compensation Committee. The Compensation Committee

also determined there were no other factors the Compensation Committee should consider in connection with the assessment or that

were otherwise relevant to the Compensation Committee's engagement of Pay Governance.

**The Nominating and Governance Committee**

Our Nominating and Governance Committee is responsible for assisting our Board in identifying outstanding individuals to become

Board members; recommending to our Board nominees for each annual meeting of shareholders; overseeing evaluations of the

Board and its committees; developing, periodically reviewing, monitoring and recommending to the Board effective corporate

governance policies and procedures; and developing and enforcing our Code of Business Conduct and Ethics. The Nominating and

Governance Committee also reviews and provides guidance to our Board and management about the Company's policies and

practices that relate to corporate social responsibility and sustainability, as referred to the Nominating and Governance Committee

by the Board. The Nominating and Governance Committee held four meetings in 2025.

**Director Independence**

Our Corporate Governance Guidelines require our Board to be comprised of a majority of independent directors. Generally, under

NYSE listing standards, a director is not independent if the director has a direct or indirect material relationship with Lithia or its

management. In accordance with its charter, the Nominating and Governance Committee annually reviews the independence of all

non-employee director nominees and reports its findings to the full Board, which makes a determination about the independence of

each nominee. The Board and the Nominating and Governance Committee review and discuss all transactions and relationships

between each director nominee and any member of the director's immediate family and Lithia, its consolidated subsidiaries and

affiliates, and management, both in the context of the specific independence standards enumerated in the NYSE listing standards,

as well as other business and personal relationships that could compromise the independent judgment of a director. In making this

determination relationships considered included the charitable contributions to Southern Oregon University Foundation described

below under <u>[Certain Relationships and Transactions with Related Persons](#ic4b68f9df5f645149bb3535a26afa3af_283)</u> on page <u>[80](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>. The contributions did not exceed $1 million

per year. Other than the NYSE listing standards, we do not adhere to categorical standards for determining independence; rather, we

review and evaluate the specific facts and circumstances of each transaction and relationship to determine whether the director is

independent. As a result of this review, our Board affirmatively determined that each of Mses. Huskins, Loretz-Congdon, McIntyre,

McKinney and O'Neill and Messrs. Bailey, Lentz, and Miramontes is independent under NYSE listing standards and, prior to his

departure from our Board at the 2025 Annual Shareholder Meeting, David J. Robino was independent under NYSE listing standards.

**Lead Independent Director and Governance Practices**

Lithia's governance documents provide our Board with flexibility to select the leadership structure that is best for the Company. If

the Chair of our Board is not an independent director, our Board annually selects an independent director to serve as the "Lead

Independent Director" responsible for coordinating the activities of the independent directors, ensuring the Board and management

address matters important to the independent Board members and fulfilling the Lead Independent Director duties set forth in Lithia's

Corporate Governance Guidelines. If the Chair of our Board is an independent director, our Board of Directors may nonetheless

select a Lead Independent Director from one of the other independent directors.

Bryan B. DeBoer is our President and CEO, and Sidney B. DeBoer is our Chair of the Board. At this time, we believe it is beneficial

for Sidney B. DeBoer to bring his strength as a long-time leader at Lithia to the role of Chair, while Bryan B. DeBoer as CEO focuses

on developing and implementing the Company's strategies. Mr. Robino, our prior Lead Independent Director, did not stand for

re-election at our 2025 Annual Meeting of Shareholders. Therefore, in 2025, our Board elected Louis P. Miramontes to serve as

our Lead Independent Director for the 2025 - 2026 Board year. Mr. Miramontes is an experienced independent member of our Board

and has been recognized as governance leader by the National Association of Corporate Directors.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 23 |

---

**Letter from the Lead Independent Director**

This letter highlights some of the ways our Board is working to provide independent oversight of management and stewardship of

your interests.

**Independent Board Oversight:**

The Lead Independent Director position is a key component of our Board's overall independence. The duties and responsibilities of

this role are outlined in detail in our Corporate Governance Guidelines, which provide that the Lead Independent Director

coordinates the activities of all the independent directors, may organize and conduct separate meetings of the independent directors

without management present, helps to plan board agendas, liaises with and guides board committee chairs as needed, and

provides board leadership whenever the acting Board Chair or CEO have a real or perceived conflict.

**Board Refreshment:**

Board succession is an important responsibility of the Board and ensures we have the right mix of directors to oversee Lithia's

growth. Mr. David Robino, our prior Lead Independent Director, did not stand for re-election at our 2025 Annual Shareholder

Meeting. We thank Mr. Robino for his service. In addition, we added five new independent directors to our Board since 2023,

including most recently Mr. Bailey and Ms. O'Neill in 2025 and the nomination of Ms. Huskins just this year. These directors bring

invaluable operational, strategic and governance expertise to our Board. As a result, and if Ms. Huskins is elected, our Board will

have grown to 10 directors, of whom 8 are independent. We also use director age and tenure limits designed to foster a refreshed

but experienced and independent board.

**Board Practices:** 

We also continue to implement the following best governance practices:

• The Chair of the Board and the CEO are separate.

• The Board's involvement is critical to Lithia's comprehensive strategic review conducted annually.

• The Board regularly receives information concerning, and provides input on, succession planning.

• Our Board and management annually engage shareholders and remain responsive to their input, as discussed in the

Compensation Discussion and Analysis, below.

• The Board and its committees met 36 times in 2025.

• Annually, an independent third party facilitates a "360 degree" review of our CEO with the other Board members and the officers

reporting directly to the CEO. The results of that review are shared with the independent directors.

• An independent third party also annually conducts a review of the performance of each director, each Board committee, and the

Board as a whole.

• We have adopted Corporate Governance Guidelines and a Code of Business Conduct and Ethics (each of which is available on

our website at investors.lithiadriveway.com), and an insider trading policy.

• Independent directors may not serve longer than 15 years or past the age of 79.

• All of our directors are elected annually.

• There is majority voting in uncontested director elections.

• The Board has adopted proxy access permitting eligible shareholders to nominate director candidates.

• The Board designates a director to lead our cybersecurity oversight efforts.

• Directors and executive officers all are required to satisfy minimum stock ownership requirements.

The Board is committed to continuing to serve your interests, and we thank you for your support.

![Louis_HighRes_Images_01_27_25 (1).jpg](lad-20260311_g25.jpg)

**Louis P. Miramontes**

Lead Independent Director

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 24 |

---

**Director Qualifications and Nominations**

The Nominating and Governance Committee is responsible for identifying and evaluating potential director nominees for election to

our Board each year. The Nominating and Governance Committee seeks a selection of directors who as a group will possess

diverse skills and knowledge, including in such area as finance, marketing, management, and technology, as well as automotive

retailing, and that will contribute to the Board's overall effectiveness and the Company's overall corporate goals and responsibility to

its shareholders.

**Board Succession Planning and Recruitment**

Identifying and recommending individuals for appointment or elections to our Board are core responsibilities of the Nominating and

Governance Committee. The Nominating and Governance Committee carries out this responsibility through a year-round process

described below:

![](lad-20260311_g55.gif)

**1**

![](lad-20260311_g56.gif)

**2**

![](lad-20260311_g57.gif)

**3**

![](lad-20260311_g57.gif)

**4**

![](lad-20260311_g58.gif)

**Evaluation of Board**

**Composition**

The Nominating and

Governance Committee

evaluates the Board's

membership needs

based on a variety of

factors.

![](lad-20260311_g58.gif)

**Candidate Evaluation**

Candidates are

evaluated on whether

they exhibit certain

core attributes that

our Nominating and

Governance Committee

looks for in all

candidates, as well

as particular needs of

the Board at the time.

![](lad-20260311_g58.gif)

**Candidate Recruitment**

The Nominating and

Governance Committee

identifies individuals

through a variety of

methods, including

independent search

firms and shareholder

recommendations.

![](lad-20260311_g58.gif)

**Recommendation to** 

**Board**

The Nominating and

Governance Committee

recommends selected

candidates to the full

Board for nomination

or appointment to the

Board.

**<u>Evaluation of Board Composition:</u>** Each year the Nominating and Governance Committee evaluates the size and composition of

the Board to assess whether they are appropriate in light of the Company's evolving needs. In this evaluation, the committee

considers the Company's strategic direction, current director qualifications, the results of Board and committee self-assessments,

and legal and investor relations review.

As part of the nomination process, the Nominating and Governance Committee annually reviews and evaluates the skills, talents,

other characteristics and contributions of the current directors in the context of the desired composition of our Board, our operating

requirements and the interests of our shareholders. The committee also reviews and interviews candidates for our Board whose

background and experience suggest the candidates may be valuable board members considering the current Board composition.

The Nominating and Governance Committee may propose to nominate current Board members or add new Board members, either

as additional directors or in transition of current Board members. Potential candidates may be suggested by various sources,

including management, Board members, shareholders, business leaders and other industry executives and directors. We may from

time-to-time engage a director search firm. The search firm Egon Zehnder was engaged in connection with the appointment of Mr.

Bailey, and Ms. O'Neill and the nomination of Ms. Huskins.

Specifically, the Nominating and Governance Committee evaluates potential director nominee candidates based on broad criteria

that include the individual's skills, experience and other factors in the context of the current composition of our Board, including the

Board's overall diversity. Among other aspects, the Nominating and Governance Committee evaluates the following factors when

evaluating director nominees: business experience, other directorships, business and personal relationships with management,

educational background, expertise in finance and accounting, knowledge of financial reporting and the business of the Company,

and industry experience. In this context, diversity encompasses differences of viewpoint, personal and professional experience,

expertise in specific areas, and other individual qualities and backgrounds. Our Nominating and Governance Committee Charter

provides that the Nominating and Governance Committee will endeavor to incorporate diversity, including gender, race and ethnicity,

among the list of candidates when filling any Board vacancy.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 25 |

---

At a minimum, director nominees must have the ability to dedicate sufficient time to Board activities, and independent director

nominees must meet applicable NYSE independence standards and not have any conflicts of interest with the Company. The

Nominating and Governance Committee reviews its effectiveness in balancing these criteria when assessing the composition of

our Board.

Directors are not considered independent if they have been on the Board for 15 or more years, and no person may serve as an

independent director after attaining the age of 79.

If a director is an active member of the board of directors of more than three other public companies, then the Nominating and

Governance Committee, when performing its annual review of the composition of the Board, will take into consideration the

competing time requirements of the director in fulfilling the directors' duties as a member of our Board.

We require all of our directors to annually sign an acknowledgment of their confidentiality obligations and obligations under our

insider trading policy and other applicable policies to reinforce their commitment to protect our confidential information and our

business reputation and to comply with applicable securities laws.

We seek to attract and retain high-quality candidates for Board membership regardless of the origin of the recommendation, and

there are no differences in the manner in which the Nominating and Governance Committee evaluates nominees for director based

on whether the nominee is recommended by a shareholder or the committee itself. The Nominating and Governance Committee will

consider potential nominees recommended by any record or beneficial shareholder. See "<u>[Shareholder Proposals or Nominations -](#ic4b68f9df5f645149bb3535a26afa3af_277)</u>

<u>[Shareholder Director Recommendations](#ic4b68f9df5f645149bb3535a26afa3af_277)</u>" below.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 26 |

---

**Our Board's Risk Oversight Role**

Our Board monitors the risks facing our business by evaluating our risk management processes, including the processes established

to monitor how management reports material risks to our Board and how our executive team manages the various risks that our

Company faces. Our Board annually reviews the potential risks we face, including cyber risks, environmental risks and the potential

impact of new laws and industry and competitive developments on our business, and the potential severity and likelihood of the risk.

It considers immediate or short-term risks, while also evaluating and monitoring risks that could develop in severity or likelihood over

time. Our Board collaborates with management on developing the Company's annual risk management plan and, as part of that

process, helps management ensure that those risks and uncertainties are considered in ongoing operations and in the Company's

risk management plan. Our Board has delegated responsibility for certain areas of its risk oversight to its standing committees. The

Board and our Board committees are charged with the following risk oversight responsibilities.

![](lad-20260311_g59.gif)

**Board of Directors**

![](lad-20260311_g60.gif)

• Enterprise Risk Management

• Cybersecurity

• Policies, practices and contributions regarding the environment, sustainability and social issues.

![](lad-20260311_g61.gif)

**Audit Committee**

• Material financial risk

exposures and the process by

which management assesses

and manages financial risk

• Ethics and legal compliance

• Transactions with related

parties

![](lad-20260311_g61.gif)

**Compensation Committee**

• Risks related to compensation

policies and programs

• CEO and management

succession planning

• Human capital management,

and employee relations

![](lad-20260311_g61.gif)

**Nominating and Governance** 

**Committee**

• Board succession planning

• Board structure

• Code of Business Conduct and

Ethics compliance and

enforcement

• Corporate sustainability and

social responsibility, as

referred by the Board

While our Board oversees risk management, our management is charged with managing risk through effective internal controls and

processes, which facilitate the identification and management of risks. Management regularly discusses risk management with our

Board, which requests and receives presentations from internal subject matter experts on topics of risk. Management also retains

advisors or experts, as necessary, who can provide meaningful assistance in determining, assessing or managing areas of risk,

beyond the Company's own capabilities.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 27 |

---

**Cybersecurity**

We are committed to maintaining robust cybersecurity practices and proactively work to protect the privacy of our customers, ensure

the confidentiality, integrity and availability of our operation, and prevent cyber crimes against us. We operate with an internal policy

and control framework for data protection, which is compliant with regulatory requirements and employs advanced technology and

resources for cyber protection. This includes continuous monitoring, intrusion detection systems, and anomaly detection mechanics

to promptly identify unusual activities or security breaches.

Our Board oversees our cybersecurity and data protection strategy and appoints a director to lead the Board's efforts. Our Board has

designated Shauna McIntyre; Ms. McIntyre holds an NACD CERT certificate in cybersecurity oversight and also maintains familiarity

with developments and practices in cybersecurity, which better enable Ms. McIntyre, and therefore the Board, to oversee the

Company's cybersecurity strategy. Management regularly reports risk exposures to the Board as well as the steps taken to monitor

and control the risks, including quarterly reports on our cybersecurity posture, current and future risks, and potential incidents or

vulnerabilities. As part of that review, George Hines, our former Chief Innovation and Technology Officer, led our information

technology and cyber protection strategy in 2025, and interacted directly with our Board. With the involvement of the designated

director, we also obtain reports, evaluations and recommendations regarding our policies and systems from third parties with

cybersecurity and information technology expertise. Currently, our Board believes assigning a director to lead the Board's

cybersecurity risk oversight and thereby reviewing cyber risks and security amongst the full Board, better serves its oversight

responsibility than assigning cyber risk oversight to a committee.

**Code of Business Conduct and Ethics**

We adopted a Code of Business Conduct and Ethics that applies to all of our officers, directors and employees, including our

principal executive, financial and accounting officers. A complete copy of our Code of Business Conduct and Ethics is available on

our website at investors.lithiadriveway.com. You may request a copy by mail from our Investor Relations Department, Lithia Motors,

Inc., 150 N. Bartlett Street, Medford, Oregon 97501. We intend to publicly disclose any amendment to and any waiver of the Code of

Business Conduct and Ethics on our website.

**Compensation of Directors**

**Non-Employee Director Compensation**

Our directors serve from election at each annual meeting of shareholders until the following annual meeting or until the director's

successor is elected and qualified. The Compensation Committee annually reviews non-employee director compensation and

recommends any applicable changes to our Board. The Compensation Committee engages independent consultants to review the

market competitiveness of the compensation paid to the non-employee directors compared to Company peers. The Compensation

Committee engaged Pay Governance in 2025 to help review and assess non-employee director compensation for the 2025-2026

Board service year. Pay Governance recommended, and the Board approved, changes to the director compensation program to

retain competitive positioning for the 2025-2026 Board service year. The changes include an increase to the cash retainer amounts

and equity grants, as set forth below and places the compensation at the median compared to Company peers, which are the same

companies in the peer group used for executive compensation comparisons. The changes in the director compensation program are

effective for the 2025-2026 Board service year. Accordingly, the actual compensation paid to a non-employee director in the 2025

calendar year is earned under two separate compensation programs. Except for Sidney B. DeBoer, directors who are employees of

the Company are not compensated separately for their service as directors. As noted in the Non-Employee Director Compensation

Table, for his services as a director, Sidney B. DeBoer receives the same compensation, in the same form, as the Company pays to

its non-employee directors. Separately, Sidney B. DeBoer receives payments for his prior services rendered as an employee that are

described below under "<u>[Certain Relationships and Transactions with Related Persons](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>" on page <u>[80](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>. Executive officers of the

Company do not recommend or determine non-employee director compensation. Our non-employee directors are currently Mses.

Loretz-Congdon, McIntyre, McKinney, O'Neill and Messrs. Bailey, Lentz and Miramontes.

We pay a majority of our non-employee directors' compensation as equity awards. The Compensation Committee believes that

paying a majority of the annual compensation in equity provides non-employee directors with a vested interest in our long-term

financial success and aligns their interests with those of our shareholders. The compensation structure for our non-employee

directors for the 2025-2026 service year was as follows:

• $100,000 in cash (no increase from the 2024-2025 calendar year) paid in 12 monthly installments over the service period.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 28 |

---

• An additional $30,000 in cash to each director who holds the position of Compensation Committee or Audit Committee chair (a

$5,000 increase from the 2024-2025 calendar year), $30,000 in cash (a $5,000 increase from the 2024-2025 calendar year) to

our Nominating and Governance Committee chair, and $40,000 (a $5,000 increase from the 2024-2025 calendar year) to any

director who serves as our Lead Independent Director or as chairman of the Board. In each case, these additional cash

amounts are also paid in 12 monthly installments over the service period.

• An award for a number of restricted stock units ("RSUs"), which are settled in shares of our common stock, with a value of

$195,000 (no increase from the 2024-2025 board service year). The number of RSUs awarded is based on the average closing

share price for the 20 trading days prior to the award grant date.

• RSU awards to our non-employee directors are granted immediately after our annual shareholder meeting and vest over one

year, with 25% vesting on the first business day of the month after each regularly scheduled quarterly meeting of our Board if

the director continues to serve on that day. All equity grants to non-employee directors are subject to our stock ownership policy.

See "<u>[Non-Employee Director Stock Ownership Policy; Hedging and Pledging Restrictions](#i5bc9dcf69170433da1518a068dca445d_6095)</u>" below.

**2025 Director Compensation**

**Non-Employee Director Compensation Table**

The following table summarizes compensation paid to non-employee directors and to our Chairman during calendar year 2025,

which amounts represent the 2025 portion of both the 2024-2025 Board term and the 2025-2026 Board term.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees Earned**<br>**or Paid in**<br>**Cash**<sup>(1)</sup><br>| **Stock**<br>**Awards**<sup>(2)</sup><br>| **Total Compensation** |
| Richard J. Bailey Jr. <sup>(3)</sup> | $25000 | $107978 | $132978 |
| Sidney B. DeBoer<sup>(4)</sup> | $166667 | $186462 | $353129 |
| James E. Lentz | $100000 | $186462 | $286462 |
| Stacy C. Loretz-Congdon | $116667 | $186462 | $303129 |
| Shauna F. McIntyre | $128333 | $186462 | $314795 |
| Cassandra M. McKinney | $100000 | $186462 | $286462 |
| Louis P. Miramontes | $155000 | $186462 | $341462 |
| Heidi L. O'Neill <sup>(3)</sup> | $25000 | $107978 | $132978 |
| David J. Robino <sup>(5)</sup> | $53333 | $0 | $53333 |

---

(1) The fees reflected in the column "Fees Earned or Paid in Cash" in the above table are the actual fees earned in calendar year 2025

(2) The amounts set forth in this column reflect the grant date fair value of all awards granted in 2025 calculated in accordance with FASB ASC Topic 718 and excluding the effects of any

forfeitures. (See Note 14 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for the valuation and assumptions

and other information related to our stock awards).

(3) Mr. Bailey and Ms. O'Neill joined our Board effective October 1, 2025 and therefore received a pro-rata portion of the 2025-2026 Board term fees and equity awards.

(4) This amount reflects the fees the Board has agreed to pay Mr. DeBoer for his service as a director under his Director Service Agreement, and does not include the amounts paid to Mr.

DeBoer under his September 14, 2015 Transition Agreement or otherwise, which are described under "Certain Relationships and Related Transactions and Director Independence" on page <u>[80](#ic4b68f9df5f645149bb3535a26afa3af_283)</u>.

(5) Mr. Robino's service on the Board ended at our 2025 Annual Shareholder Meeting and therefore he did not receive any fees with respect to the 2025-2026 Board term.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 03: Corporate Governance | 29 |

---

The following table sets forth all stock units held by each non-employee director as of December 31, 2025. Mr. David Robino's

service on the Board ended at our 2025 Annual Shareholder Meeting and therefore he did not hold any unvested stock awards as of

December 31, 2025:

---

| | |
|:---|:---|
| **Name** | **Unvested Stock Awards (#)** |
| Richard J. Bailey Jr. | 171 |
| Sidney B. DeBoer | 168 |
| James E. Lentz | 168 |
| Stacy C. Loretz-Congdon | 168 |
| Shauna F. McIntyre | 168 |
| Cassandra M. McKinney | 168 |
| Louis P. Miramontes | 168 |
| Heidi L. O'Neill | 171 |

---

**Deferred Compensation Agreements with Non-Employee Directors**

We offer our non-employee directors the opportunity to defer receipt of all or a portion of their compensation by entering into a

deferred compensation agreement with the Company. Under this agreement, participants who elect to defer compensation may defer

receipt of all or a portion of their cash compensation under our deferred compensation plan and any stock award pursuant to our

2013 Stock Incentive Plan (including cash deferred into stock). Deferrals are paid following a separation from the Board in a lump

sum, or, if elected and earlier, during the director's term of service as a lump sum on a fixed date or over a series of installments. Ms.

McKinney and Mr. Miramontes elected to defer their stock compensation issued for the 2025 - 2026 Board service year.

**Non-Employee Director Stock Ownership Policy; Hedging and Pledging** 

**Restrictions**

We expect our non-employee directors to acquire and hold a sufficient number of shares of our common stock to meaningfully

participate in the risks and rewards of ownership with our shareholders and to appropriately align the interests of directors with our

long-term goals. Accordingly, under our Stock Ownership Policy for Directors, non-employee directors are required to own and

maintain shares of our common stock having a market value equal to at least five times the annual base cash compensation paid to

the director within five years after the director's initial appointment to our Board. (If a director does not or ceases to comply with the

policy, the director is expected to retain 100% of the net after-tax shares received upon the settlement of any equity incentive award

and not otherwise transfer any shares until the stock ownership minimums are attained). In determining compliance with the policy,

share ownership includes RSUs subject to time-vesting and indirect share ownership.

We have adopted an Insider Trading Policy and procedures applicable to our directors, officers, and employees, and have

implemented processes for the Company that we believe are reasonably designed to promote compliance with insider trading laws,

rules, and regulations, and the NYSE listing standards. Our Insider Trading Policy and our Stock Ownership Policy for directors

specify that they may not (1) engage in hedging or monetization transactions, including through the use of financial instruments such

as prepaid variable forwards, equity swaps, collars and exchange funds or (2) hold Company securities in a margin account or

otherwise pledge Company securities as collateral for a loan, except as specifically approved by the Board.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 04: Corporate Responsibility | 30 |

---

**04**

**CORPORATE RESPONSIBILITY**

Our Commitment to all Stakeholders

**Introduction**

Lithia & Driveway's long-term growth depends on the trust of our customers, our employees, and the communities

we serve. As our organization expands across North America and the United Kingdom, we continue to integrate

sustainability into our operating model, guided by six goals that strengthen our environmental stewardship, operational

efficiency, workplace culture, and local impact.

We strive to ***Improve Constantly*** by reducing our footprint, advancing sustainable mobility, elevating our people, and

deepening our community partnerships.

**Environmental Goals**

**Social Goals**

![_CSR_EV_G3_ps.jpg](lad-20260311_g62.jpg)

**Goal 1**

![_CSR_SG_G1_ps.jpg](lad-20260311_g63.jpg)

**Goal 4**

**Increase GreenCars on the Road**

**Strengthen Our Communities** 

Our GreenCars resource leads the way in

consumer education on electric vehicles.

We cultivate bonds, build bridges &

foster engagement in the communities

we serve.

**Goal 2**

**Goal 5**

![_CSR_EV_G1_ps.jpg](lad-20260311_g64.jpg)

![_CSR_SG_G2_ps.jpg](lad-20260311_g65.jpg)

**Operate Sustainable Stores**

**Maximize Employee**

**Health, Wellness & Safety**

We improve operations with facility

updates & ENERGY STAR certification.

Our leaders nurture workplaces where

team members feel engaged, inspired,

and respected.

**Goal 3**

**Goal 6**

![_CSR_EV_G2_ps.jpg](lad-20260311_g66.jpg)

![_CSR_SG_G3_ps.jpg](lad-20260311_g67.jpg)

**Extend Vehicle Lifecycles** 

**Champion an Inclusive,** 

**High-Performance Culture**

Selling and serving value-autos keeps

good cars on the road longer.

A culture of belonging fuels innovation,

teamwork, and our mission of *Growth* 

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 04: Corporate Responsibility | 31 |

---

**Goal 1 – Increase GreenCars on the Road**

GreenCars is strengthening its position as a key driver of consumer transition from internal combustion vehicles to more sustainable

transportation. By combining digital education with high visibility national events, the platform helps demystify EV ownership, address

concerns around charging and cost, and build confidence in emerging technologies. Its growing presence at major industry

gatherings has expanded our reach to new audiences, reinforced our leadership in EV education, and supported dealerships as they

guide customers through the shift to EV. This work not only accelerates adoption but also positions the Company to capture long

term value as the market moves toward electrification.

GreenCars also partnered with stores on targeted community events, including:

• Connecting with **tens of thousands of consumers** with our presence at **Electrify Expo**, the largest EV festival in the U.S.

• a **Detroit-Area EV Summit**, where the Suburban Collection and GreenCars trained teams from 30 stores on EV sales, service,

and industry trends.

• Helping Roseville Toyota become the **#1 Toyota BEV** retailer in the U.S.

**Goal 2 – Operate Sustainable Stores**

As the automotive industry accelerates toward a low-carbon future, Lithia & Driveway continues investing in operational upgrades

that modernize our facilities, reduce emissions, and improve energy performance. Our sustainability strategy is grounded in a **data-**

**driven, three-pillar energy efficiency framework**: establishing baselines, improving performance, and communicating results. Our

2025 projects are expected to save over 3 million kWh of electricity per year, reducing our environmental impact and reducing

operational costs.

**1. Energy Efficiency At Scale**

More than 90% of business units in the U.S. now operate with exterior LED lighting, and store retrofits continue to drive meaningful

reductions in electricity consumption. Our major 2025 projects include:

• **Suburban Toyota of Troy:** Full interior/exterior LED retrofit + 206 kW solar installation commitment saving an estimated

450,000 kWh annually.

• **BMW/MINI/Kia of Anchorage**: Holistic LED modernization across three locations saving an estimated 290,000 kWh annually.

**2. Renewable Energy Deployment** 

With nearly 8% of U.S. business units positioned to generate onsite renewable energy once current projects are complete, LAD

continues advancing solar installations at right-fit locations.

**3. EV-Charging Infrastructure**

Stores increasingly integrate charging infrastructure into both customer service and community access. For example:

• **Planet Honda (Union, NJ)** installed one of the network's top-performing public DC fast-charging stations, complemented by 10

back-of-house Level 2 EV charging units.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 04: Corporate Responsibility | 32 |

---

**Goal 3 – Extend Vehicle Lifecycles**

Keeping cars on the road longer is core to our business, and doing so depends on a reliable, skilled technician workforce. As

demand for vehicle maintenance grows amidst a nationwide technician shortage, we seek to strengthen our talent pipeline so that

we are equipped to sustain vehicle longevity, support our stores, and meet the evolving needs of both traditional and electric

vehicles. To that end, in 2025, we:

• **Supported SkillsUSA programs** through hands-on employee involvement that strengthens technical competitions, provides

real-world mentorship, and connects students with internship pathways that help develop a stronger, job-ready talent pipeline for

the automotive workforce.

• Through our **EV Drive & Learn Initiative**, our stores hosted educational events introducing technician students to EV

technology and industry career paths.

**Goal 4 – Strengthen Our Communities** 

LAD's community giving strategy is anchored in four quarterly pillars—Special Olympics, Sustainability, Back-to-School, and

Foodbanks & Breast Cancer Awareness—each tied to a core value and generating millions in donations. Stores select the pillar they

are most passionate about and partner with local nonprofits, empowering thousands of employees to give back.

---

| | | | |
|:---|:---|:---|:---|
| ![HaveFun_01.jpg](lad-20260311_g68.jpg) | **Q1: Special Olympics** <br>***Have Fun!***<br>| ![Improve_Constantly_01.jpg](lad-20260311_g69.jpg) | **Q2: Sustainability** <br>***Improve Constantly***<br>|
| •45 dealerships raised funds for the Special Olympics by <br>sponsoring Polar Plunge events nationwide. | •45 dealerships raised funds for the Special Olympics by <br>sponsoring Polar Plunge events nationwide. | •Community Environmental Partnerships – LAD's ongoing <br>collaboration with SOLVE supported waste-reduction and <br>recycling efforts while earning regional recognition from <br>Portland Business Journal's inaugural Environmental <br>Impact Award. | •Community Environmental Partnerships – LAD's ongoing <br>collaboration with SOLVE supported waste-reduction and <br>recycling efforts while earning regional recognition from <br>Portland Business Journal's inaugural Environmental <br>Impact Award. |
| ![Earn_Customers_for_Life_01.jpg](lad-20260311_g70.jpg) | **Q3: Back-to-School** <br>***Earn Customers for Life***<br>| ![TakePersonalOwership_01.jpg](lad-20260311_g71.jpg) | **Q4: Food Banks &** <br>**Breast Cancer Awareness** <br>***Take Personal Ownership***<br>|
| •Participation in OEM-led back-to-school and student <br>support programs, such as Ford Drive for Your School, <br>Subaru Loves Learning, and Toyota Backpacks for <br>Students, gives us meaningful opportunities to partner <br>with our manufacturers to strengthen local communities, <br>support young learners, and demonstrate shared <br>commitment to education and opportunity beyond the <br>showroom. <br>•Our Alaska stores came together to raise money for <br>various causes in their community, including donations to <br>the Boys & Girls Club of Alaska and to Best Beginnings to <br>support childhood literacy.  | •Participation in OEM-led back-to-school and student <br>support programs, such as Ford Drive for Your School, <br>Subaru Loves Learning, and Toyota Backpacks for <br>Students, gives us meaningful opportunities to partner <br>with our manufacturers to strengthen local communities, <br>support young learners, and demonstrate shared <br>commitment to education and opportunity beyond the <br>showroom. <br>•Our Alaska stores came together to raise money for <br>various causes in their community, including donations to <br>the Boys & Girls Club of Alaska and to Best Beginnings to <br>support childhood literacy.  | •Lithia employees across the country united throughout <br>November to support their communities, donating <br>thousands of pounds of food and partnering with local <br>nonprofits to help fight hunger during the holiday season. <br>•The 2025 Lithia and Driveway Play for a Cure golf <br>tournament raised money for the American Cancer <br>Society. | •Lithia employees across the country united throughout <br>November to support their communities, donating <br>thousands of pounds of food and partnering with local <br>nonprofits to help fight hunger during the holiday season. <br>•The 2025 Lithia and Driveway Play for a Cure golf <br>tournament raised money for the American Cancer <br>Society. |

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 04: Corporate Responsibility | 33 |

---

**Veteran Support & Lithia4Kids**

• In 2025, we kicked off partnerships with the Military Warriors Support Foundation and JP Morgan Chase to annually grant three

vehicles to veteran service members. This past year, two stores awarded Subaru vehicles to combat-wounded veterans through

these partnerships.

• Nearly $500,000 was distributed through over 150 Lithia4Kids grants, supporting children's mental health, STEM learning,

migrant student needs, and youth transportation programs.

**Goal 5 – Maximize Employee Health, Wellness & Safety**

Our people are the heart of our organization, and we invest in their health, financial well-being, safety, and career development. We

prioritize safe workplaces, robust total rewards, and a culture that values recognition and continuous learning.

**Highlights**:

• **Hyundai Global Dealer of the Year** – **Evans Halshaw Hyundai Leeds:** Store leadership credits this award to a strong culture

of togetherness, first-time leaders stepping into management roles, and an emphasis on professional development.

• **AutoNews Best Dealerships to Work For (U.S. & Canada):** 20+ LAD stores recognized, including: Audi Coral Springs

(Winner: Large Dealership Category) and Audi Millburn (Winner: Minority Leadership Category)

**Goal 6 – Champion an Inclusive, High-Performance Culture**

We remain committed to fostering a culture where diverse experiences, perspectives, and backgrounds strengthen our organization.

Across North America and the UK, we continue to invest in leadership development programs that equip employees with tools to

grow and excel.

**Leadership & Development Highlights**

• **Accelerate My Potential (AMP)**: Our AMP leadership development program is a means of investing in high-potential talent by

building core leadership skills, expanding cross-team connections, and preparing emerging leaders for future roles. In 2025 we

expanded this program to all of our North American operations.

• **Women LEAD (Lead, Explore, Achieve, Develop)**: This month-long program supports women's leadership and career growth

through mentorship, skill-building sessions, and opportunities to hear from company leaders and keynote speakers, helping

foster an inclusive environment where women can thrive.

• **LPG Expansion:** We invite top store managers into our Lithia & Driveway Partners Group (LPG) to highlight, reward, and set an

example of what high performance within our organization looks like. In 2025, our LPG membership broadened to recognize

Store Department Managers in their outstanding performance.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 34 |

---

**05**

**Compensation Discussion and Analysis (CD&A)**

**Introduction**

![](lad-20260311_g72.gif)

This Compensation Discussion and Analysis discusses Lithia's

compensation program for our named executive officers ("NEOs"),

including our philosophy, objectives and how our 2025 performance

drove compensation for the 2025 calendar year. Our current named

executive officers are as follows:

**Table of Contents**

![](lad-20260311_g73.gif)

**05 Compensation Discussion**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**and Analysis (CD&A)**

---

| | |
|:---|:---|
| ![Bryan_HighResImage_01_22_25 (1).jpg](lad-20260311_g27.jpg) | **Bryan B. DeBoer, 59**<br>**Position(s):** Bryan B. DeBoer has been our Chief <br>Executive Officer (CEO) and President since 2012.<br>|
| ![Tina_HighResImage_01_22_25.jpg](lad-20260311_g53.jpg) | **Tina H. Miller, 45**<br>**Position(s)**: Tina H. Miller is our Senior Vice President, <br>Chief Financial Officer (CFO), and has served in this <br>role since 2019<br>|
| ![David_S_HighRes_Images_01_28_25.jpg](lad-20260311_g54.jpg) | **David G. Stork, 64**<br>**Position(s):** David G. Stork is our Senior Vice <br>President, Chief Administrative Officer, and has served <br>in this role since 2021.<br>|
| ![Gary_HighRes_Images_01_28_25.jpg](lad-20260311_g74.jpg) | **Gary M. Glandon, 67**<br>**Position(s):** Before transitioning to Senior Advisor <br>effective October 1, 2025, Gary Glandon was our Senior <br>Vice President and Chief People Officer, a role he <br>served in since 2021.<br>|
| ![George_HighResImage_01_22_25 (1).jpg](lad-20260311_g75.jpg) | **George N. Hines, 53**<br>**Position(s):** Before transitioning to a non-executive <br>consulting role on March 1, 2026, George Hines was <br>our Senior Vice President, Chief Innovation and <br>Technology Officer (CITO), a role he served in since <br>2019.<br>|
| ![Adam_HighResImage_01_22_25.jpg](lad-20260311_g76.jpg) | **Adam A. Chamberlain, 52**<br>**Position(s):** Adam A. Chamberlain was our Executive <br>Vice President and Chief Operating Officer (COO) <br>before resigning effective June 1, 2025.<br>|

---

[Introduction](#ic4b68f9df5f645149bb3535a26afa3af_109).........................................................[34](#ic4b68f9df5f645149bb3535a26afa3af_109)

Executive Summary................…........................[35](#ic4b68f9df5f645149bb3535a26afa3af_115)

Performance & Compensation Highlights.......…[35](#ic4b68f9df5f645149bb3535a26afa3af_115)

[Our Compensation Practices Benefit](#ic4b68f9df5f645149bb3535a26afa3af_118)

[Our Shareholders](#ic4b68f9df5f645149bb3535a26afa3af_118)...............................................[37](#ic4b68f9df5f645149bb3535a26afa3af_118)

[Compensation Components](#ic4b68f9df5f645149bb3535a26afa3af_124)...............................[40](#ic4b68f9df5f645149bb3535a26afa3af_124)

2025[Compensation Design](#ic4b68f9df5f645149bb3535a26afa3af_127) [& Results](#ic4b68f9df5f645149bb3535a26afa3af_127)................[41](#ic4b68f9df5f645149bb3535a26afa3af_127)

[Base Salary](#ic4b68f9df5f645149bb3535a26afa3af_127).....................................................…[41](#ic4b68f9df5f645149bb3535a26afa3af_127)

[Short-Term](#ic4b68f9df5f645149bb3535a26afa3af_127) Incentive Plan...............................…[41](#ic4b68f9df5f645149bb3535a26afa3af_127)

Long-Term Incentive Plan................................…[44](#ic4b68f9df5f645149bb3535a26afa3af_133)

[Compensation Decision Making Process](#ic4b68f9df5f645149bb3535a26afa3af_136)........….[48](#ic4b68f9df5f645149bb3535a26afa3af_136)

[Executive Compensation Governance](#ic4b68f9df5f645149bb3535a26afa3af_139)

[Components](#ic4b68f9df5f645149bb3535a26afa3af_139)........................................................[50](#ic4b68f9df5f645149bb3535a26afa3af_139)

[Compensation Committee Report](#ic4b68f9df5f645149bb3535a26afa3af_142).......................[51](#ic4b68f9df5f645149bb3535a26afa3af_142)

**06 Compensation Tables**

[Summary Compensation Table](#ic4b68f9df5f645149bb3535a26afa3af_148)...........................[52](#ic4b68f9df5f645149bb3535a26afa3af_148)

[Grants of Plan-Based Awards Table for](#ic4b68f9df5f645149bb3535a26afa3af_151) 2025......[54](#ic4b68f9df5f645149bb3535a26afa3af_151)

[Outstanding Equity Awards at](#ic4b68f9df5f645149bb3535a26afa3af_154)

2025 Fiscal Year-End..........................................[55](#ic4b68f9df5f645149bb3535a26afa3af_154)

[Stock Vested for](#ic4b68f9df5f645149bb3535a26afa3af_157)2025.........................................[56](#ic4b68f9df5f645149bb3535a26afa3af_157)

[Non-Qualified Deferred Compensation](#ic4b68f9df5f645149bb3535a26afa3af_160)...............[56](#ic4b68f9df5f645149bb3535a26afa3af_160)

[Termination](#ic4b68f9df5f645149bb3535a26afa3af_163) [or Change in Control Payment](#ic4b68f9df5f645149bb3535a26afa3af_163)s.......[57](#ic4b68f9df5f645149bb3535a26afa3af_163)

[CEO Pay Ratio](#ic4b68f9df5f645149bb3535a26afa3af_166)....................................................[61](#ic4b68f9df5f645149bb3535a26afa3af_166)

[Pay Versus Performance](#ic4b68f9df5f645149bb3535a26afa3af_169).....................................[62](#ic4b68f9df5f645149bb3535a26afa3af_169)

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 35 |

---

**Executive Summary** 

We just completed our first three-year performance cycle since 2023, when we:

• redesigned our compensation program,

• introduced relative and diverse financial metrics, and

• incorporated performance-based restricted stock units (PSUs) with a 3-year performance period and relative TSR modifier. We

believe the 3-year performance period to be the most reliable measure of our performance relative to our peers.

The goal of this leading practice redesign was simple: use challenging goals to incentivize outperformance compared to our

compensation Peer Group in our strategically important metrics, principally revenue, profit generation and stock price performance.

This program is organized around the following components that align the interests of our executives with our investors by rewarding

superior performance.

---

| | | |
|:---|:---|:---|
| **Rigorous Relative Metrics** | **Revenue Growth** | **Profitability (EPS and Net Income) and Stock** <br>**Price** <br>|
| All of our financial metrics and <br>the TSR modifier in our PSUs <br>measure results relative to our <br>peers. We use rigorous financial <br>goals and 3-year TSR goals <br>that pay at target only if our <br>performance meets the peer <br>median and pay above target <br>only for peer outperformance. <br>| Revenue is the most important <br>component of our growth strategy, and <br>therefore is weighted at 40% of our <br>short- and long-term incentive plans. <br>Starting in 2026, we replaced top-line <br>revenue with same store revenue in our <br>short-term plan, resulting in a balance <br>of organic and inorganic growth and <br>complete metric diversity between our <br>long- and short-term plans, as <br>discussed in "<u>[2026 Compensation](#if8537bcfe58a40ee9307f641ed27db7e_22)</u>" <br>below.<br>| We seek to grow not just revenue, but earnings and, <br>ultimately, shareholder value. Therefore, beginning <br>with our 2024 compensation program, profitability <br>metrics in each of our plans are non-overlapping <br>and weighted heavier than revenue. Specifically, <br>50% of our short-term incentive depends on relative <br>net income growth and relative EPS makes up 60% <br>of our PSU's core metrics. We also incorporate a <br>3-year relative TSR modifier in all our PSUs to <br>ensure alignment with shareholder experience. <br>|

---

This redesign, which we continue to use, creates a stable compensation program that provides a clear line-of-sight incentive to

management, and ties pay outcomes to performance.

**Performance Highlights**

![](lad-20260311_g77.gif)

**2025 Net Income** 

**2025 Earnings Per Share** 

**2025 Revenue** 

**$32.32**

**$826M**

**$37.6B**

**3-Year Total** 

**Shareholder Return**

**2025 Capital Returned**

**(Share Buybacks and Dividends)**

**2025 Acquired Revenue**

**74th** 

**percentile of our Peers**

**$1.0B** 

**$2.4B** 

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 36 |

---

**Compensation Highlights**

**2025 Short-Term Incentive**

**Long-Term Incentive - 2023 PSUs**

![](lad-20260311_g78.gif)

**Weighting Performance** 

**Weighting Performance**![186](lad-20260311_g79.gif)

![250](lad-20260311_g80.gif)

![](lad-20260311_g81.gif)

![](lad-20260311_g82.gif)

**Revenue grew 8%** over 1 year,

ranking **3rd** out of **19 peers**

**Quarterly Revenue growth** averaged **11%** 

year-over-year for 3 years, ranking **2nd** out

of **19 peers**

**40%**

**100%**

![276](lad-20260311_g83.gif)

![160](lad-20260311_g84.gif)

**Net Income grew 10%** over

1 year, ranking **3rd** out of **19 peers**

**Total Shareholder Return** was **53.8%**

over 3 years, ranking **6th** out of **19 peers**

**Modifier**

**50%**

![302](lad-20260311_g83.gif)

![199](lad-20260311_g85.gif)

**Corporate Strategy** performance

was **140%** of target

**Operating Margin** was **4.80%** 

over 3 years.

**Modifier**

**10%**

**Payout:194% of target**

**Payout:210% of target**

**2025 Long-Term Incentive**

As discussed further in *<u>[Long Term Incentive Plan – 2025 PSU](#i7ac90e1bcced473fab3ea9bd83c74225_27)</u>*<u>[s](#i7ac90e1bcced473fab3ea9bd83c74225_27)</u>, below, we continued to structure our long-term incentive

consistent with prior years as a mix of performance-based PSUs with a 3-year performance period on the following metrics, and

time-based RSUs that vest annually over 3 years. We believe stability in this program is in the best interest of shareholders as we

seek to incent management to generate profitable revenue that drives shareholder growth.

---

| | |
|:---|:---|
| **PSUs** | **RSUs** |
| **•Performance Period**: 2025-2027<br>**•Metrics:**<br>◦Relative Revenue Growth (40%)<br>◦Relative EPS Growth (60%)<br>◦Relative TSR Modifier (up to +/- 35%)<br>s<br>| •**Vesting Period**: annual installments over three years |

---

**2026 Compensation** 

As we continue to refine our compensation program, we heard from investors that same store metrics were important and that they

preferred non-overlapping metrics in long- and short-term incentive plans. We also believe core operating performance and organic

growth are important aspects of our growth strategy. Accordingly, starting in 2026, the revenue component of our short-term

incentive plan (weighted at 40% of the plan) will change from top-line revenue to same store revenue to emphasize organic growth

in our integrated stores. The revenue component in our long-term incentive will remain tied to top-line revenue, meaning our 2026

long- and short-term plans use distinct metrics.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 37 |

---

**2025 Shareholder Engagement**

![ShareholdersEngagement_Chart_02_03_25.jpg](lad-20260311_g86.jpg)

**Total Contacted >60%\***

Lithia's Compensation Committee encourages shareholder feedback on our

compensation approach and aims for constant improvement. We rely on

focused board-level shareholder engagement, complemented by regular

shareholder outreach and engagement activities conducted by our CEO and

other members of our management team, and our annual say-on-pay vote.

These engagements build shareholder alignment.

Mindful of our historically strong say-on-pay support, including 84% voting

in favor in 2025, we engaged with shareholders representing over 60% of

our outstanding capital stock in 2025, on a variety of topics, including our

executive compensation program. In addition, our Lead Independent Director

and the Chair of our Compensation Committee invited some of our largest

shareholders, including shareholders representing over 45% of the shares

voted "against" our compensation program in our 2025 say-on-pay vote, to

discuss and provide feedback on our compensation program and other

matters.

Our engagement with shareholders, as well as feedback received from the

proxy advisory firms, is reflected in our compensation program, as seen

below:

**Total Engaged >50%\***

**Director Contacted >25%\***

\* represents percent of outstanding capital stock as of

December 31, 2025

![](lad-20260311_g87.gif)

![95](lad-20260311_g88.gif)

---

| | |
|:---|:---|
| **What We Heard** | **What We Did** |
| **CEO Pay** | **No Change to CEO Target Base and Incentive Pay in 2025** |
| Proxy advisor firms commented that CEO pay was <br>high (above median) relative to peers.<br>| Based on his positioning relative to similarly situated CEOs of peers, <br>company performance and investor feedback, we did not increase our <br>CEO's base salary and target cash and equity incentive compensation in <br>2025.<br>Further, the reportable value of our CEO's equity compensation and total <br>compensation as shown in the summary compensation table *decreased* in <br>2025 due to the Compensation Committee's active management and <br>design of the long-term incentive program.<br>|
| **Metric Selection** | **Increased Metric Alignment with Strategic Plan and**<br>**Differentiated Metrics**<br>|
| After incorporating shareholder feedback in 2024 <br>by incorporating EPS into our LTIP, our <br>shareholders further asked that we include same-<br>store metrics into our incentive plans to emphasize <br>organic growth. In addition, some shareholders <br>prefer that we use different metrics in our long-term <br>and short-term incentives.<br>| Starting in 2026, we replace the relative top-line revenue component of <br>our short-term incentive with a relative same-store revenue metric to <br>emphasize organic growth. As a result, all of our 2026 long-term incentive <br>metrics are distinct from our 2026 short-term incentive metrics.<br>|

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 38 |

---

**Our Compensation Practices Benefit our Shareholders**

Our executive compensation programs have strong governance components that further strengthen our pay-for-performance

compensation philosophy, including the following:

---

| | |
|:---|:---|
| **What We Do** | **What We Do** |
| **✓** | Align pay and performance, with significant percentages <br>of target total direct compensation (TDC) based on <br>performance or at risk (90% for the CEO and 73% for the <br>other NEOs)<br>|
| **✓** | Rigorous financial, strategic and relative performance <br>goals, including relative TSR, with audited attainment <br>determinations<br>|
| **✓** | 3-year performance periods on PSUs |
| **✓** | Meaningful stock ownership guidelines for directors and <br>executives<br>|
| **✓** | Clawback policies on cash incentives and stock awards <br>due to financial restatement or misconduct resulting in <br>reputational harm<br>|
| **✓** | Double-trigger change in control provisions |
| **✓** | Entirely independent Compensation Committee |
| **✓** | Independent compensation consultant |
| **✓** | Annual compensation program and policies risk <br>assessment<br>|
| **✓** | Ability to exercise negative discretion on all incentives  |

---

---

| | | |
|:---|:---|:---|
| **What We Do Not Do** | **What We Do Not Do** | **What We Do Not Do** |
|  | × | No "golden parachute" gross-ups |
|  | × | No hedging/pledging/short-sales of company stock |
|  | × | No dividends paid on unvested stock awards or on <br>options/SARs (which we do not currently grant)<br>|
|  | × | No excessive perquisites |
|  | × | No options/SARs (which we do not currently grant) with <br>below FMV exercise price<br>|
|  | × | No repricing of options/SARs (which we do not currently <br>grant) without shareholder approval<br>|
|  | × | No excessive severance |
|  | × | No guaranteed salary increases, bonuses, or long-term <br>incentive awards<br>|
|  | × | No adjustment or modification of any outstanding cash <br>or long-term equity incentive in response to volatile <br>market conditions<br>|

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 39 |

---

**Compensation Philosophy**

Our vision guides our mission, and our mission drives our business strategy and our compensation philosophy. All four of these

areas are informed by our values.

![Workiva_Test_Selections_05_imports_OurValuesTriangle.jpg](lad-20260311_g89.jpg)

**Who We Are**

The pragmatic disruptor with a proven multifaceted success

strategy, competitively leading the modernization of personal

transportation by providing consumers solutions, wherever,

whenever, and however, they desire.

**Our Mission**

customers and team to create a competitive advantage. We are a

growth company and the continued development of our team is

critical to our long-term success. Our entrepreneurial culture is the

foundation of our business strategy. This culture drives our team to

create simple, customer-centered experiences. Trust in each other

is key to making decisions that will be in the best interests of the

Company and its stakeholders. We strive for high customer

retention and strong market share, while controlling costs, to yield

exceptional profit performance.

**Our Business Strategy** 

We are a growth company focused on profitably consolidating the largest retail sector by providing personal transportation solutions,

wherever, whenever, and however, consumers desire.

**Compensation Philosophy**

Lithia's compensation program is designed to support the Company's vision, mission, and values and align appropriate incentives

and rewards with the execution of our business strategy, all while attracting, motivating, rewarding, and retaining high-performing

employees, who influence and drive the Company's long-term success. Lithia strives to do this by providing compensation that is

market competitive and performance-based.

**Our Values**

Within our entrepreneurial and high-performance culture, we implement a human capital policy that supports a diverse and

energized workforce with career advancement, role mobility opportunities, and strong health, safety, and wellness initiatives. Our

values guide us beyond producing financial returns to serving our customers and communities, developing our people, reaching

our potential and growing our company:

![CoreValues_chart_02_03_25.jpg](lad-20260311_g90.jpg)

Working together, we create a welcoming and

highly responsive environment with positive

experiences that ***Earn Customers for Life****.* 

By innovating, remaining humble and

challenging ourselves to perform better,

we ***Improve Constantly.***

We are motivated by the freedom of

***Taking Personal Ownership*** for our actions

and results.

Our enthusiasm for our customers,

communities, cars, each other and our success

represent the catalyst for ***Having Fun!***

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 40 |

---

**Compensation Components**

The three major elements of our executive officers' regular total direct compensation (TDC) are: (i) base salary, (ii) awards under

our cash-based short-term incentive plan, and (iii) awards under our equity-based long-term incentive plan. While performance

drives all aspects of our compensation, for 2025, 90% of target annual TDC for the CEO and 73% of the target annual TDC for our

other named executive officers, was incentive-based or at-risk, reflecting Lithia's pay-for-performance philosophy.

![13](lad-20260311_g91.gif)

![1](lad-20260311_g92.gif)

**Target Compensation By Component**

■ Long-Term Incentive

■ Performance-Based RSUs

■ Service-Based RSUs

■ Short-Term Incentive

■ Base Salary

■ Other

![49](lad-20260311_g93.gif)

![61](lad-20260311_g94.gif)

**Other** 

**NEOs\***

**CEO**

\*Average NEO target compensation

at start of year

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Compensation Component** | **Description** |
|  | **Annual** | **Base Salary** | A competitive base income set to attract talent and promote long-term retention. Lithia <br>believes that as an employee moves into higher level positions in the Company, base pay <br>should become a smaller component of overall TDC.<br>|
| Performance Based | **Annual** | **Short-Term Incentive** | An annual performance-based cash incentive which ties a significant portion of our <br>executives' annual cash to growth in revenue and profitability relative to our <br>compensation Peer Group, and achievement of our corporate responsibility and strategy <br>goals. <br>|
| Performance Based | **Long-Term** | **Long-Term Incentive** | A long-term equity-based program that emphasizes PSUs that incorporate relative <br>financial metrics and a relative TSR modifier, with a minority weighting on RSUs. <br>Performance awards vest only after a 3-year performance. All metrics are measured <br>relative to our compensation Peer Group. <br>|
|  | **Other** | **Retirement** | A non-qualified deferred compensation plan with annual discretionary contributions that <br>provides key employees funds for retirement and supports succession planning.<br>SERP contributions promote retention by using longer-term vesting periods. Participants <br>may choose to defer up to 50% of their base salary and 100% of their bonus <br>compensation.<br>|
|  | **Other** | **Perquisites** | Perquisites are limited. |

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 41 |

---

**2025 Compensation Program Design & Results**

**Base Salary**

We provide base salaries to our executive officers to compensate them for their services rendered during the year and to provide

them with a level of competitive and stable fixed compensation.

The Compensation Committee approves the base salary for our CEO each year based on competitive market factors, the CEO's

duties and responsibilities, comparison of relative CEO pay within the Peer Group described below, the CEO's performance and

the relative pay of our senior management team. The base salaries of all other NEOs are developed by the CEO and our

independent compensation consultant based on similar factors and are analyzed and approved by the Compensation Committee.

In 2025, the Compensation Committee did not increase target base salaries for our executives as shown below. Mr. Glandon's

salary was reduced in 2025 in connection with his transition to senior advisor. Accordingly, Mr. Glandon's 2025 salary shown below

is a blend of his original 2025 salary of $600,000 per year and his senior advisor salary of $300,000 per year. Mr. Chamberlain

resigned effective June 1, 2025 and therefore did not earn his full 2025 salary.

---

| | | | |
|:---|:---|:---|:---|
| **Named Executive Officer** | **2024 Base Salary ($)** | **2025 Base Salary ($)** | **Δ** |
| **Bryan B. DeBoer** | 1300000 | 1300000 | —% |
| **Tina H. Miller** | 750000 | 750000 | —% |
| **David G. Stork** | 500000 | 500000 | —% |
| **Gary M. Glandon** | 600000 | 537500 | (10)% |
| **George N. Hines** | 640000 | 640000 | —% |
| **Adam A. Chamberlain** | 750000 | 750000 | —% |

---

**Short-Term Incentive Plan**

The 2025 short-term incentive plan rewarded executives based on our revenue and net income growth, in each case relative to our

Peer Group, and execution of our corporate responsibility and strategy initiatives. Consistent with our 2024 short-term incentive, we

continued to use all relative financials metrics in 2025, weighted at 90% of the plan, emphasized profitability over revenue, and

incorporated a corporate responsibility and strategy component.

**How our 2025 Short-Term Incentive Plan Works**

Our 2025 short-term incentive plan compensated executives for achieving annual performance goals in each of the below criteria.

Each named executive officer's target cash bonus potential was based on a market competitive percentage of base salary ranging

from approximately 64% to 150%, which was paid out according to the attainment of pre-approved performance goals. Each

executive's target bonus, expressed as a percentage of salary, and their weighted performance goals, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighting of Performance Factors** | **Weighting of Performance Factors** | **Weighting of Performance Factors** |
| **Named Executive Officer** | **Target Short-Term** <br>**Incentive** <br>**(% of Salary)**<br>| **Relative Revenue** <br>**Growth**<br>| **Relative Net income** <br>**Growth**<br>| **Corporate** <br>**Responsibility &** <br>**Strategy**<br>|
| **Bryan B. DeBoer** | 150% |  |  |  |
| **Tina H. Miller** | 87% |  |  |  |
| **David G. Stork** | 64% |  |  |  |
| **Gary M. Glandon** | 67% |  |  |  |
| **George N. Hines** | 69% |  |  |  |
| **Adam A. Chamberlain** | 100% |  |  |  |

---

![142](lad-20260311_g95.gif)

![116](lad-20260311_g96.gif)

![129](lad-20260311_g97.gif)

**40%**

**50%**

**10%**

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 42 |

---

**Establishment of 2025 Targets and Actual Cash Payouts**

We believe using metrics that promote high performance and profitable growth are critical. These performance criteria are

approved annually by the Compensation Committee and are designed to reward both short-term and long-term value creation,

support growth in profitability, and increase share value. Management provides the Compensation Committee with a quarterly

review of the short-term incentive plan attainment pacing. If we do not achieve threshold performance, then no short-term

incentive is earned or paid. The Compensation Committee has discretion to reduce awards under the short-term incentive plan.

For 2025, our relative financial metrics and corporate responsibility and strategy goals and attainment were as follows:

• **Relative Financial Metrics:** 90% of our short-term incentive plan payouts depended on our financial performance

relative to our compensation Peer Group. Specifically, 40% of the plan was based on our revenue growth rank, and

50% was based on our net income growth rank, as shown below.

---

| | | | |
|:---|:---|:---|:---|
| **Revenue Growth** <br>**Rank**<br>| **Attainment** <br>**Percentage**<br>| **Net Income** <br>**Growth Rank**<br>| **Attainment** <br>**Percentage**<br>|
| 1st to 5th | 200% | 1st to 5th | 200% |
| 6th | 180% | 6th | 180% |
| 7th | 160% | 7th | 160% |
| 8th | 140% | 8th | 140% |
| 9th | 120% | 9th | 120% |
| 10th | 100% | 10th | 100% |
| 11th | 100% | 11th | 100% |
| 12th | 80% | 12th | 80% |
| 13th | 70% | 13th | 70% |
| 14th | 60% | 14th | 60% |
| 15th | 50% | 15th | 50% |
| 16th to 20th | 0% | 16th to 20th | 0% |

---

\*Our and peers' growth under both metrics is measured as the sum of that applicable metric for the four quarters reported prior to December

15, 2025, divided by the sum of the same metric for the immediately preceding four quarters.

In 2025, relative financial metric results and corresponding payout percentages relative to target were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **2025 Short-Term Incentive Plan - Relative Financial Metrics** | **2025 Short-Term Incentive Plan - Relative Financial Metrics** | **2025 Short-Term Incentive Plan - Relative Financial Metrics** | **2025 Short-Term Incentive Plan - Relative Financial Metrics** |
| **Weighting** | **Performance Metric** | **Attainment** | **Attainment** |
|  | **Relative Revenue Growth** | **Peer Rank**<br>3rd<br>| **Payout**<br>200%<br>|
|  | **Relative Net Income Growth** | **Peer Rank**<br>3rd<br>| **Payout**<br>200%<br>|

---

![230](lad-20260311_g79.gif)

![](lad-20260311_g98.gif)

**40%**

![256](lad-20260311_g99.gif)

**50%**

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 43 |

---

**Corporate Responsibility and Strategy Objectives:** We believe a small portion of our short-term incentive should be based on

non-financial goals. Therefore, 10% of our 2025 short-term incentive plan was based on progress toward our consumer optionality,

sustainability, and corporate responsibility goals, which supplement our financial goals. These goals are rigorous and intended to

focus management on advancing our initiatives described in the <u>[Corporate Responsibility](#ic4b68f9df5f645149bb3535a26afa3af_94)</u> section of this proxy statement, above.

Each year, management presents the extent to which these objectives are accomplished to the Compensation Committee for review

and approval. Payout percentages are as follows:

---

| | |
|:---|:---|
| **Objectives** | **% of Payout** |
| **Significantly Above Target** | 200% |
| **Above Target** | 150% |
| **Target**  | 100% |
| **Below Target** | 50% |

---

We successfully executed on our corporate responsibility objectives this year, as shown below. Accordingly, these results, as

approved, warranted a payout of this 10% portion of each executive's 2025 short-term incentive plan award at 140% based on

achievement of our goals, including the following. Based on overall attainment, this non-financial component of the short-term

incentive accounted for 7.2% of payouts.

---

| | |
|:---|:---|
| **Consumer Optionality** | **Sustainability and Corporate Responsibility** |
| •Driveway Finance Corporation (DFC) achieved 14.5% <br>penetration rate in 2025 (up from 11.6% in 2024).<br>•Expanded and successfully migrated Driveway Finance <br>customers to myDriveway portal.<br>•Grew Driveway.com customer scores, digital retail <br>processes and post-sale support driving an increase in <br>purchase commitments and purchases of 68% and 101% <br>year over year, respectively. <br>•Expanded GreenCars partner stores by over 25% to 298 <br>stores, achieved newsletter subscribers of 40,144, and <br>hosted over 30 in-person GreenCar events.<br>•Ecosystem profitability, including attributed net profits, <br>reached breakeven in 2025 and is now positive compared to <br>a net loss in 2024.<br>| •Grew sustainable vehicle sales to 26% of total retail vehicles in North <br>America from 21% in 2024, and grew mix of value auto sales from 22.8% <br>of used retail vehicle sales to 25.9%. <br>•Started or completed energy efficiency projects scheduled to deliver over 3 <br>million kWh in annual savings, a 76% increase over 2024.<br>•Awarded the Environment Impact Award by the Portland Business Journal <br>for our company's work on Earth Day to organize a statewide trash <br>cleanup across Oregon.<br>•Roseville Toyota recognized as the #1 retailer of Toyota battery electric <br>vehicles in the nation.<br>•Over $100,000 raised across the country for Special Olympics in 2025 <br>following a nationwide campaign with record attendance.<br>•Over 300 Automotive students attended a Lithia educational workshop this <br>year that heavily emphasized EV technology. <br>•Lithia 4 Kids giving increased over 50% year over a year to $463,000.<br>|

---

**2025 Actual Bonus**

Based on 2025 attainment of these goals, the 2025 short-term incentive plan payouts were as follow. As Mr. Chamberlain resigned

from his employment effective June 1, 2025, he did not receive any payout on his 2025 short-term incentive. Mr. Glandon's 2025

short-term incentive plan target is calculated as a percentage of his yearly salary in effect prior to his transition to senior advisor.

---

| | | | |
|:---|:---|:---|:---|
| **Named Executive Officers** | **Target Short-Term Incentive** <br>**Plan as % of Base Salary**<br>| **Actual 2025 Payout as % of** <br>**Target**<br>| **Actual 2025 Payout ($)** |
| **Bryan B. DeBoer** | 150% | 194.0% | $3783000 |
| **Tina H. Miller** | 87% | 194.0% | $1261000 |
| **David G. Stork** | 64% | 194.0% | $620800 |
| **Gary M. Glandon** | 67% | 194.0% | $776000 |
| **George N. Hines** | 69% | 194.0% | $853600 |

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 44 |

---

**Long-Term Incentive Plan**

We issue awards under our long-term incentive plan primarily in the form of PSUs, with a service-based RSU component. We

believe this PSU and RSU mix better aligns our executive team with our shareholders compared to a stock option-based plan

because PSUs are directly tied to performance outcomes and both PSUs and RSUs experience the upside as well as the downside

of stock price changes. This structure rewards employees if they achieve financial performance that exceeds our peers and drives

our stock price upward.

![](lad-20260311_g100.gif)

**The amounts of unvested equity for each of our executive officers, as seen in our** 

**Pay Versus Performance table, are designed to create strong shareholder alignment and** 

**appropriate holding power to support our employee retention and stock ownership goals.**

![](lad-20260311_g101.gif)

**How our 2025 Long-Term Incentive Plan Works**

![68](lad-20260311_g102.gif)

**25%**

In 2025, the Compensation Committee approved long-term incentive awards for our executives

**2025** 

**LTI Target**

**Value Split**

consisting of PSUs and RSUs, as set forth in the table below. The Compensation Committee

approved the PSUs and RSUs awarded to NEOs and other key employees after considering,

among other things, peer comparisons, absolute and relative Company financial performance

**75%**

and total shareholder return, awards granted in prior years, the percentage of total

compensation and targets determined based upon the Board approved business plan, and the

recommendation of our independent compensation consultant.

**PSU**s (3yr performance period)

**RSU**s (annual service-vesting over 3yrs)

---

| | | | |
|:---|:---|:---|:---|
| **Named Executive Officer** | **2025 Target PSU Value ($)** | **2025 Target RSU Value ($)** | **2025 Target Total LTI Value ($)** |
| **Bryan B. DeBoer** | 8062500 | 2687500 | 10750000 |
| **Tina H. Miller** | 1552500 | 517500 | 2070000 |
| **David G. Stork** | 465000 | 155000 | 620000 |
| **Gary M. Glandon** | 510000 | 170000 | 680000 |
| **George N. Hines** | 772500 | 257500 | 1030000 |
| **Adam A. Chamberlain** | 1612500 | 537500 | 2150000 |

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 45 |

---

![](lad-20260311_g103.gif)

**2025 PSU Design Overview**

• **3-Year Performance Period:** 2025-2027

• **Metric:** 

◦ Relative Revenue Growth (40%)

◦ Relative EPS Growth (60%)

◦ Relative TSR modifier (up to +/- 35%)

• **Incentive**: drive high-quality and profitable revenue and stock performance over 3-years relative to our peers.

**2025 PSU Payout Formula:**

The 2025 PSUs use a 3-year performance period that ends on December 31, 2027 and will pay out in 2028 to the extent the

Compensation Committee certifies attainment based on the following formula. These goals are consistent with the goals for our

2024 PSUs.

![](lad-20260311_g104.gif)

**[ (Relative Revenue Attainment \* 40%) + (Relative EPS Growth Attainment \* 60%) ] \* Relative TSR Modifier**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Relative Revenue Growth:**<br>Attainment under the revenue growth <br>component of our PSUs is based on our <br>revenue growth performance over 3 years <br>ranked against our compensation Peer <br>Group, as shown below: | **Relative Revenue Growth:**<br>Attainment under the revenue growth <br>component of our PSUs is based on our <br>revenue growth performance over 3 years <br>ranked against our compensation Peer <br>Group, as shown below: | **Relative EPS Growth:** <br>Attainment under the EPS growth <br>component of our PSUs is based on <br>our EPS growth performance over 3-<br>years ranked against our <br>compensation Peer Group, as shown <br>below: | **Relative EPS Growth:** <br>Attainment under the EPS growth <br>component of our PSUs is based on <br>our EPS growth performance over 3-<br>years ranked against our <br>compensation Peer Group, as shown <br>below: | **TSR Modifier**<br>The attainment percentage determined <br>by our relative revenue growth and <br>relative EPS growth is then multiplied by <br>an adjustment factor determined by our <br>3-year TSR ranking relative to our <br>compensation Peer Group, as follows: | **TSR Modifier**<br>The attainment percentage determined <br>by our relative revenue growth and <br>relative EPS growth is then multiplied by <br>an adjustment factor determined by our <br>3-year TSR ranking relative to our <br>compensation Peer Group, as follows: |
| **Revenue Growth**<sup>(1)</sup> <br>**Rank** | **Attainment** <br>**Percentage**<br>| **EPS Growth**<sup>(1)</sup><br>**Rank** | **Adjustment** <br>**Factor**<br>| **TSR Growth**<sup>(2)</sup> <br>**Rank** | **Modification** <br>**Factor**<br>|
| 1st to 5th | 195% | 1st to 5th | 195% | 1st to 5th | 1 .35 |
| 6th | 175% | 6th | 175% | 6th | 1 .30 |
| 7th | 160% | 7th | 160% | 7th | 1 .25 |
| 8th | 140% | 8th | 140% | 8th | 1 .15 |
| 9th | 120% | 9th | 120% | 9th | 1 .10 |
| 10th | 100% | 10th | 100% | 10th | 1 .0 |
| 11th | 100% | 11th | 100% | 11th | 1 .0 |
| 12th | 90% | 12th | 90% | 12th | 0 .90 |
| 13th | 85% | 13th | 85% | 13th | 0 .85 |
| 14th | 75% | 14th | 75% | 14th | 0 .75 |
| 15th | 50% | 15th | 50% | 15th | 0 .70 |
| 16th to 20th | 0% | 16th to 20th | 0% | 16th to 20th | 0 .65 |

---

(1) Our and our peer's relative revenue and EPS growth rank is determined based on such companies' 3-year annual growth average for the given metric. This average is determined by averaging a company's growth rate for the applicable metric for each of the three successive 4-quarter periods reported before December 15, 2027. For this purpose, the applicable metric's growth rate is the sum of that applicable metric for a given four quarter period, divided by the sum of the same metric for the immediately preceding four quarter period. 

(2) TSR is calculated based on the change in the 20-day average closing price from January 1, 2025 to December 31, 2027 and assuming dividend reinvestment.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 46 |

---

![](lad-20260311_g105.gif)

**2023 PSU Design Overview and Payout**

• **3-Year Performance Period:** 2023-2025

• **Performance:**

• **Attainment:**

• **Metric:** 

---

| | | |
|:---|:---|:---|
| •Relative Revenue Growth | 2nd Among Peers | 175% |
| •**Modifier:** Relative TSR (up to +/- 25%) | 6th Among Peers | Payout increased 20% |
| •**Modifier**: Operating Margin (set max/min payout) | 4.80% | No Adjustment |
|  | **Total Attainment:** | **210%** |

---

**2023 PSU Payout:**

In 2023, we awarded PSUs with a 3-year performance period that ended December 31, 2025 and vested based on our relative

revenue growth over the performance period, with a relative TSR modifier that could increase or decrease payouts by up to 25%

and an operating margin governor that set the upper and lower limits of attainment. Following the completion of this 3-year

performance period, the Compensation Committee certified the financial results and payouts for the 2023 PSUs in January 2026

at 210% of target, based on the following performance formula and goals.

![](lad-20260311_g104.gif)

**(Relative Revenue Growth \* Relative TSR Modifier)** adjusted by an **Operating Margin Governor**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Relative Revenue Growth:**<br>Attainment under the revenue growth <br>component of our 2023 PSUs was <br>based on our revenue growth over 3 <br>years ranked against our compensation <br>Peer Group, as shown below: | **Relative Revenue Growth:**<br>Attainment under the revenue growth <br>component of our 2023 PSUs was <br>based on our revenue growth over 3 <br>years ranked against our compensation <br>Peer Group, as shown below: | **TSR Modifier**<br>The attainment percentage determined <br>by our relative revenue growth was then <br>multiplied by an adjustment factor <br>determined by our 3-year TSR ranking <br>relative to our compensation Peer <br>Group, as follows: | **TSR Modifier**<br>The attainment percentage determined <br>by our relative revenue growth was then <br>multiplied by an adjustment factor <br>determined by our 3-year TSR ranking <br>relative to our compensation Peer <br>Group, as follows: | **Operating Margin Governor**<br>Finally, the payout determined via <br>multiplying our revenue growth <br>attainment by our TSR adjustment <br>factor is subject to a maximum and <br>minimum set by our 3-year operating <br>margin, as shown below: | **Operating Margin Governor**<br>Finally, the payout determined via <br>multiplying our revenue growth <br>attainment by our TSR adjustment <br>factor is subject to a maximum and <br>minimum set by our 3-year operating <br>margin, as shown below: | **Operating Margin Governor**<br>Finally, the payout determined via <br>multiplying our revenue growth <br>attainment by our TSR adjustment <br>factor is subject to a maximum and <br>minimum set by our 3-year operating <br>margin, as shown below: |
| **Revenue Growth**<sup>(1)</sup><br>**Rank** | **Attainment** <br>**Percentage** | **TSR**<sup>(2)</sup> **Modifier** | **Adjustment Factor** | **Operating Margin** | **Attainment Range** | **Attainment Range** |
| **Revenue Growth**<sup>(1)</sup><br>**Rank** | **Attainment** <br>**Percentage** | **TSR**<sup>(2)</sup> **Modifier** | **Adjustment Factor** | **Operating Margin** | **Min** | **Max** |
| 1st to 5th | 175% | 1st to 5th | 1.25 | >4.50% | 60% | 218.8% |
| 6th | 160% | 6th | 1.20 | 4.0% to 4.5% | 50% | 200% |
| 7th | 145% | 7th | 1.15 | 3.5% to <4.0% | 40% | 175% |
| 8th | 130% | 8th | 1.10 | 3.0% to <3.5% | 30% | 150% |
| 9th | 115% | 9th | 1.05 | 2.0% to <3.0% | 20% | 125% |
| 10th | 100% | 10th | 1.00 | <2.0% | 0% | 125% |
| 11th | 100% | 11th | 1.00 |  |  |  |
| 12th | 80% | 12th | 0.95 |  |  |  |
| 13th | 70% | 13th | 0.90 |  |  |  |
| 14th | 60% | 14th | 0.85 |  |  |  |
| 15th | 50% | 15th | 0.80 |  |  |  |
| 16th to 20th | 0% | 16th to 20th | 0.75 |  |  |  |
| **Actual Rank** | **Attainment** | **Actual Rank** | **Adjustment Factor** | **Actual Result** | **Payout Adjustment**  | **Payout Adjustment**  |
| **2nd** | **175%** | **6th** | **1.20** | **4.80%** |  |  |

---

(1) Our and our peers' relative revenue growth rank is determined by ranking the average quarterly revenue growth rate. This average is determined by averaging each company's growth rate for the applicable metric for each of the 12 successive 4-quarter periods reported before December 15, 2025. For this purpose, the revenue growth rate is the revenue result for a given quarter divided by the revenue result for the corresponding quarter from the prior year. 

(2) TSR is calculated based on the change in the 30-day average closing price from January 1, 2023 to December 31, 2025 and assuming dividend reinvestment.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 47 |

---

**Perquisites** 

Consistent with our pay-for-performance compensation philosophy, we believe perquisites for executive officers should be limited in

scope and value, and should only be offered when they provide necessities or conveniences that allow our executive officers to

focus on and optimally perform in their role with Lithia. Accordingly, we provided our NEOs with insurance premiums for long-term

care assistance, long-term disability and life and accidental death and dismemberment on their behalf.

In 2025, following increased public awareness of CEO safety and to facilitate business efficiency, our Compensation Committee

adopted a responsible aircraft policy that allows the CEO and the other employees approved by the Compensation Committee and

the CEO to use our corporate aircraft arrangements for personal travel up to a shared maximum of 30 hours beginning in 2025. The

CEO or such employees were required to reimburse for the incremental cost of their flights to the extent all such costs for employee

personal flights in 2025 exceed $120,000 (which was below the median for comparable policies in the S&P 500). This cap is set

annually at the discretion of the Compensation Committee. Executives were also permitted to be accompanied by their spouses

when using our corporate aircraft arrangements for business travel. Executives must reimburse the Company for the incremental

cost of their spouses' travel. For 2025, the incremental cost of our CEO's personal flights was $62,673.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 48 |

---

**Compensation Decision Making Process**

The Compensation Committee begins its process of deciding how to compensate Lithia's named executive officers by considering

the competitive market data provided by its independent compensation consultant and the Human Resources department.

Competitive market data consists of peer group and pay information from surveys collected by our compensation consultant

(e.g., where there may be little data for a role amongst our peers).

**Peer Group and Benchmarking**

In July of 2024, as part of the annual assessment of the peer group used for setting compensation, the Compensation Committee

again asked Pay Governance to review the Company's peer group for appropriateness. Pay Governance reviewed our peer group,

taking into account the following criteria:

![](lad-20260311_g106.gif)

**Peer Group Criteria**

• Are broadly representative of Lithia's key characteristics (e.g., size, profitability, retail, and direct-to-consumer

models),

• Operate in Lithia's labor market for executive and director talent, and

• When reviewed in the aggregate, have a Peer Group median revenue, market capitalization, and pre-tax profit that is

close to Lithia's size and scope.

With these factors in mind, Pay Governance continued to recommend that our peer group include auto, specialty and broader

retail companies given the limited number of direct auto retail competitors and the fact that we sell automotive related products and

services. After reviewing Pay Governance's analysis, and given the multifaceted nature of our customers' retail experience, which

is akin to other retail industries, the Compensation Committee continued the use of the 2024 peer group for 2025 compensation

decisions, as shown below. We believe this peer group continues to reflect the competitive market for talent and performance,

particularly given our goal to operate as a premier retailer both within and beyond the automotive retail space.

---

| | | | |
|:---|:---|:---|:---|
| **Symbol** | **Company Name** | **Symbol** | **Company Name** |
| AAP | Advance Auto Parts, Inc. | LKQ | LKQ Corporation |
| ABG | Asbury Automotive Group, Inc. | LOW | Lowes Companies, Inc. |
| AN | Autonation, Inc. | ORLY | O'Reilly Automotive, Inc. |
| AZO | AutoZone, Inc. | PAG | Penske Automotive Group, Inc. |
| BBY | Best Buy Co., Inc. | SAH | Sonic Automotive, Inc. |
| KMX | CarMax, Inc. | SYY | Sysco Corporation |
| DG | Dollar General Corporation | GAP | The Gap, Inc. |
| DLTR | Dollar Tree, Inc. | TJX | The TJX Companies, Inc. |
| GPC | Genuine Parts Company | TSCO | Tractor Supply Company |
| GPI | Group 1 Automotive, Inc. |  |  |

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 49 |

---

**How We Use the Peer Group**

The positions of our named executive officers were compared to their counterpart positions in our Peer Group, and the

compensation levels for comparable positions in the Peer Group were examined for guidance in determining:

• base salaries;

• cash awards under our short-term incentive plan; and

• the amount and mix of equity awards under our long-term incentive plan.

The Compensation Committee approves base salaries, short-term incentive plan awards and long-term incentive awards on a case-

by-case basis for each named executive officer, taking into account, among other things, individual and company performance, role

expertise and experience and the competitive market, advancement potential, recruiting needs, internal equity, retention

requirements, unrealized equity gains, succession planning, and best compensation governance practices.

The Compensation Committee does not tie individual compensation to specific target percentiles.

**How the Compensation Committee Makes Decisions and Policies**

The Compensation Committee has the final responsibility to approve all matters of compensation and benefits for executive officers,

and from time to time it seeks input and recommendations from the CEO and the Human Resources department. The Compensation

Committee also meets privately with its independent compensation consultant, and considers the Board's input and advice, when

establishing the CEO's compensation. Our independent compensation consultant has worked directly with and on behalf of the

Compensation Committee to assist the Compensation Committee in satisfying its responsibilities; and does not undertake projects

for management, except with the approval of the Compensation Committee chair. The Compensation Committee reports to the

Board on the major items covered at each Compensation Committee meeting.

The Compensation Committee assessed the independence of its compensation consultant during 2025 and believes that there are

no conflicts of interest. In reaching this conclusion, the Compensation Committee considered applicable SEC rules and regulations

and the corresponding NYSE independence factors regarding compensation advisor independence.

In determining executive compensation, the Compensation Committee also considers, among other factors, the possible tax

consequences to Lithia and to its executives.

The Compensation Committee may consider the accounting consequences to Lithia of different compensation decisions and the

impact on shareholder dilution. However, neither of these factors by themselves will compel particular compensation decisions.

The Compensation Committee annually grants equity-based long-term incentive awards to executive officers after the close of the

prior year and the review and evaluation of each executive officer's performance. The Compensation Committee's policy is to

generally grant long-term incentive awards only during open trading windows and to establish grant dates in advance, generally

establishing those dates near the beginning of each fiscal year.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 50 |

---

**Executive Compensation Governance Components**

**Stock Ownership Guidelines**

NEOs and non-NEO Vice Presidents are expected to own and maintain shares of our

common stock having a market value equal to a multiple of their annual base cash

salary, as indicated in the table to the left, within seven years of service in their position.

Our stock ownership policy more closely aligns the interests of our NEOs with the

interests of our shareholders and exposes our NEOs to downside equity performance

risk. In determining compliance with the policy, share ownership includes RSUs subject

to time-vesting, but does not include our PSUs, which incorporate a 3-year performance

period, until the performance conditions have been met. As of December 31, 2025, all of

our executive officers exceeded the applicable minimum stock ownership requirements.

---

| | | |
|:---|:---|:---|
| **Position** | **Multiple of** <br>**Salary**<br>| **Years of** <br>**Service**<br>|
| CEO | 5 | 7 |
| EVP | 3 | 7 |
| SVP | 2 | 7 |
| VP | 1 | 7 |

---

**Recoupment (or "Clawback") Policies** 

Our Compensation Committee has adopted two clawback policies applicable to performance-based compensation, including awards

under our short-term and long-term incentive plans. Our Dodd-Frank Compensation Recoupment Policy complies with the SEC and

NYSE required clawback rules and requires that the Compensation Committee, subject to certain exceptions permitted under those

rules, recoup certain types of excess incentive-based compensation received by current and former executive officers in the event of

a financial restatement. Our Dodd-Frank Compensation Recoupment Policy became effective October 2, 2023 and applies to our

performance-based cash and equity incentive compensation received on and after that date. This policy was attached as an exhibit

to our most recently filed Annual Report on Form 10-K.

In addition, under our recoupment policy originally adopted in 2022, the Compensation Committee, if it determines appropriate and

subject to applicable laws, may seek reimbursement from executive officers of:

• Cash paid to executive officers under our short-term incentive plan to the degree overpaid based on the restated financial

results; and

• The incremental shares of our common stock settled for any RSUs in excess of the shares of our common stock that would

have been settled for such RSUs based on the restated financial results, or the value of such incremental shares to the extent

an executive officer sells any incremental shares.

In the event the Compensation Committee reasonably determines that an executive engaged in misconduct that resulted in

reputational harm to Lithia, this clawback policy also enables the Compensation Committee, if it determines appropriate and subject

to applicable laws, to seek reimbursement from such executive officers of:

• All or a portion of cash paid to such executive officers under our short-term incentive plan; and

• Return any shares acquired by the executive pursuant to a stock award (including time-based awards).

**Anti-Hedging and Pledging Policy**

Our insider trading policy for all employees and our stock ownership policy for executive officers specify that they may not (1)

engage in hedging or monetization transactions, including through the use of financial instruments such as prepaid variable

forwards, equity swaps, collars and exchange funds or (2) hold Company securities in a margin account or otherwise pledge

Company securities as collateral for a loan, except as specifically approved by the Board.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 05: Compensation Discussion and Analysis (CD&A) | 51 |

---

**Compensation Risk Management**

Each year our Compensation Committee reviews whether our compensation policies and practices encourage executives or other

employees to take unnecessary or unreasonable risks that could threaten the long-term value of the Company, or that are

reasonably likely to have a material adverse effect. The Compensation Committee believes that our practices adequately manage

this risk because:

• we limit the amount of fixed compensation in the form of base salary based on data from our market survey;

• the primary criteria we use for performance compensation components are measures such as revenue, earnings per share, and

net income, which we believe are less susceptible to manipulation for short-term gain;

• cash payments are capped under our short-term incentive plan;

• the incentive plans for executive management have the flexibility to put weight on Company-wide or divisional performance

measures;

• our short-term incentive plan preserves discretion to permit the Compensation Committee to elect not to pay otherwise achieved

amounts for any reason;

• a meaningful component of compensation is long-term incentive plan equity grants with extended vesting periods designed to

ensure that our executives value and focus on the Company's long-term performance; and

• NEOs have equity positions in Lithia and are subject to stock ownership policies, which we believe increases their focus on

long-term shareholder value.

**Insider Trading Policy**

We have adopted an insider trading policy and procedures applicable to our directors, officers, and employees, and have

implemented processes for the Company that we believe are reasonably designed to promote compliance with insider trading laws,

rules, and regulations, and the NYSE listing standards. The Company's insider trading policy applicable to all directors and

employees prohibits insider trading when the person is aware of material nonpublic information and restricts directors and executive

officers and certain other employees determined to have potential access to insider information from trading in Company stock

during predetermined closed periods. In addition, executive officers and directors are required to pre-clear any trades. The foregoing

summary of our insider trading policy and procedures does not purport to be complete and is qualified by reference insider trading

policy which was filed as exhibits to our Annual Report on Form 10-K for the year ending December 31, 2025.

**Compensation Committee Interlocks & Insider Participation**

The following directors served on the Compensation Committee during 2025: Shauna McIntyre, James Lentz, Cassandra McKinney,

Louis Miramontes, and, prior to his departure from our Board at the 2025 Annual Shareholder Meeting, David Robino, none of whom

was a Company officer or employee during 2025 or was formerly a Company officer or had any relationship with the Company

requiring disclosure under Item 404 of Regulation S-K. During 2025, none of our executive officers served as a member of a board of

directors or as a member of a compensation committee of any entity that has one or more executive officers serving as a member on

our Board or any committee of our Board.

**Compensation Committee Report**

The Compensation Committee has reviewed and discussed the "Compensation Discussion and Analysis," included elsewhere in this

proxy statement, with management, and, based on such review and discussions, the Compensation Committee recommended to the

Board that the "Compensation Discussion and Analysis" be included in this proxy statement and incorporated by reference in Lithia's

Annual Report on Form 10-K.

Submitted by the Compensation Committee of the Board of Directors:

Shauna F. McIntyre (Chair)

James E. Lentz

Cassandra M. McKinney

Louis P. Miramontes

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 52 |

---

![](lad-20260311_g107.gif)

**06**

**Compensation Tables**

**Summary Compensation Table**

The following table provides certain information concerning compensation for each of our 2025 NEOs.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and**<br>**Principal Position** | **Year** | **Salary** | **Stock**<br>**Awards**<sup>(1)</sup><br>| **Non-Equity** <br>**Incentive Plan** <br>**Compensation**<br>| **Change in Pension** <br>**Value and** <br>**Nonqualified** <br>**Deferred** <br>**Compensation** <br>**Earnings**<sup>(2)</sup><br>| **All Other** <br>**Compensation**<br><sup>(4)</sup><br>| **Total** |
| **Bryan B. DeBoer**<br>President and Chief<br>Executive Officer | 2025 | $1300000 | $10736203 | $3783000 | $6256 | $70009 | $15895468 |
| **Bryan B. DeBoer**<br>President and Chief<br>Executive Officer | 2024 | $1300000 | $12953359 | $2535000 | $— | $7342 | $16795702 |
| **Bryan B. DeBoer**<br>President and Chief<br>Executive Officer | 2023 | $1250000 | $15312692 | $2666040 | $— | $7258 | $19235990 |
| **Tina H. Miller**<br>Senior Vice President and <br>Chief Financial Officer | 2025 | $750000 | $2067669 | $1261000 | $939 | $76793 | $4156401 |
| **Tina H. Miller**<br>Senior Vice President and <br>Chief Financial Officer | 2024 | $750000 | $2410122 | $845000 | $— | $76798 | $4081920 |
| **Tina H. Miller**<br>Senior Vice President and <br>Chief Financial Officer | 2023 | $525000 | $2564125 | $875008 | $— | $56714 | $4020847 |
| **David G. Stork** <sup>(3)</sup><br>Senior Vice President and Chief <br>Administrative Officer | 2025 | $500000 | $619514 | $620800 | $13 | $9509 | $1749836 |
| **David G. Stork** <sup>(3)</sup><br>Senior Vice President and Chief <br>Administrative Officer |  |  |  |  |  |  |  |
| **David G. Stork** <sup>(3)</sup><br>Senior Vice President and Chief <br>Administrative Officer |  |  |  |  |  |  |  |
| **Gary M. Glandon** <sup>(3)</sup><br>Senior Advisor | 2025 | $537500 | $679479 | $776000 | $— | $10770 | $2003749 |
| **Gary M. Glandon** <sup>(3)</sup><br>Senior Advisor |  |  |  |  |  |  |  |
| **George N. Hines** <sup>(3)</sup><br>Former Senior Vice President and <br>Chief Innovation and Technology <br>Officer | 2025 | $640000 | $1028841 | $853600 | $665 | $57994 | $2581100 |
| **George N. Hines** <sup>(3)</sup><br>Former Senior Vice President and <br>Chief Innovation and Technology <br>Officer | 2024 | $640000 | $1205061 | $572000 | $— | $57999 | $2475060 |
| **George N. Hines** <sup>(3)</sup><br>Former Senior Vice President and <br>Chief Innovation and Technology <br>Officer | 2023 | $600000 | $1353357 | $546880 | $— | $57915 | $2558152 |
| **Adam A. Chamberlain** <sup>(3)</sup><br>Former Executive Vice President <br>and Chief Operating Officer | 2025 | $343750 | $2147608 | $— | $97 | $81645 | $2573100 |
| **Adam A. Chamberlain** <sup>(3)</sup><br>Former Executive Vice President <br>and Chief Operating Officer | 2024 | $662500 | $1548518 | $975000 | $— | $83237 | $3269255 |
| **Adam A. Chamberlain** <sup>(3)</sup><br>Former Executive Vice President <br>and Chief Operating Officer |  |  |  |  |  |  |  |

---

<sup>(1)</sup> These amounts reflect the grant date fair value for performance and time-vesting RSUs granted in the year, computed in accordance with FASB ASC Topic 718 and excluding any estimated forfeitures. These amounts are not paid to or realized by the executive. If the maximum level of performance were to be achieved for the awards granted in 2025, the grant date value for those awards would be $24,078,654 for Mr. DeBoer, $4,637,180 for Ms. Miller, $1,389,141 for Mr. Stork,$1,523,922 for Mr. Glandon, $2,307,464 for Mr. Hines, and $4,944,174 for Mr. Chamberlain. The fair value of the PSUs was calculated using a Monte Carlo simulation model, assuming (i) a volatility of 40.45%, (ii) remaining performance period of 2.99 years, (iii) a risk-free interest rate of 4.2%, and (iv) a dividend yield of 0.61%. For the PSUs, the attainment levels used in the calculation of the grant date fair value was based on the probable outcomes at the time of grant. For a more detailed discussion of the assumptions used to determine the grant date fair values and other related information, see Notes 1 and 14 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. 

<sup>(2)</sup> These amounts represent the above-market earnings, if any, for cash deferrals to our Executive Management Non-Qualified Deferred Compensation and SERP. The methodology for determining what constitutes above-market earnings is the difference between the interest rate as determined by the Compensation Committee for that plan year and 120% of the applicable federal long-term rate. For 2025, the annual interest rate for the Executive Management Non-Qualified Deferred Compensation and SERP was 5.50%, with monthly compounding. 

<sup>(3)</sup> Mr. Chamberlain was not an executive officer prior to 2024 and resigned effective June 1, 2025. Mr. Stork and Mr. Glandon were not named executive officers prior to 2025. Mr. Glandon ceased to be an executive officer in connection with his transition to senior advisor effective October 1, 2025. Mr. Hines ceased to be an executive officer on March 1, 2026 when he transitioned to a non-executive role. 

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 53 |

---

<sup>(4)</sup> All Other Compensation in 2025 consisted of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **401(k) Match** | **Insurance Premiums** <sup>(a)</sup> | **Contributions to Nonqualified** <br>**Deferred Compensation Plan**<br>| **Other** <sup>(b)</sup> | **Total** |
| Bryan B. DeBoer | $2500 | $4837 | $— | $62673 | $70009 |
| Tina H. Miller | $2500 | $4293 | $70000 | $— | $76793 |
| David G. Stork | $2500 | $7009 | $— | $— | $9509 |
| Gary M. Glandon | $2500 | $8270 | $— | $— | $10770 |
| George N. Hines | $2500 | $5494 | $50000 | $— | $57994 |
| Adam A. Chamberlain | $2500 | $4145 | $75000 | $— | $81645 |

---

<sup>(a)</sup> Insurance premiums include amounts paid by us on behalf of the executive for short-term disability insurance, long-term disability insurance, long term care insurance and life insurance policies.

<sup>(b)</sup> Represents the incremental cost for named executive officers who were permitted to use our corporate aircraft arrangements for non-business travel. Such usage is subject to availability and the executive's agreement to reimburse the Company for the incremental cost of each flight above an annual usage limit. Our aircraft usage policy is discussed in greater detail in the <u>[Perquisites](#i431b36b409404887bb1b8c5e327285fa_4005)</u> section of the Compensation Discussion and Analysis, above. Incremental cost for this purpose is generally the cost incurred by the Company for the executive's travel under the Company's corporate aircraft service. 

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 54 |

---

**Grants of Plan-Based Awards Table for 2025**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Estimated Future Payouts Under**<br>**Non-Equity Incentive Plan Awards** | **Estimated Future Payouts Under**<br>**Non-Equity Incentive Plan Awards** | **Estimated Future Payouts Under**<br>**Non-Equity Incentive Plan Awards** | **Estimated Future Payouts Under** <br>**Equity Incentive Plan Awards**<br> **(# of shares)** | **Estimated Future Payouts Under** <br>**Equity Incentive Plan Awards**<br> **(# of shares)** | **Estimated Future Payouts Under** <br>**Equity Incentive Plan Awards**<br> **(# of shares)** | **Grant Date** <br>**Fair Value** <br>**of Stock** <br>**and Option** <br>**Awards** <br>**($)**<sup>(4)</sup> |
| **Name** |  | **Committee** <br>**Approval**<br>| **Grant Date** |  | **Threshold** <br>**($)**<br>| **Target** <br>**($)**<br>| **Maximum** <br>**($)**<br>| **Threshold** <br>**(#)**<br>| **Target** <br>**(#)**<br>| **Maximum** <br>**(#)**<br>| **Grant Date** <br>**Fair Value** <br>**of Stock** <br>**and Option** <br>**Awards** <br>**($)**<sup>(4)</sup> |
| **Bryan B.** <br>**DeBoer** | 2025 STIP |  |  | (3) | 975000 | 1950000 | 3900000 |  |  |  |  |
| **Bryan B.** <br>**DeBoer** | 2025 PSU | 11/19/2024 | 01/02/2025 | (1) |  |  |  | 10879 | 21757 | 57276 | 8173017 |
| **Bryan B.** <br>**DeBoer** | 2025 RSU | 11/19/2024 | 01/02/2025 | (2) |  |  |  |  | 7253 |  | 2563186 |
| **Tina H.** <br>**Miller** | 2025 STIP |  |  | (3) | 325000 | 650000 | 1300000 |  |  |  |  |
| **Tina H.** <br>**Miller** | 2025 PSU | 11/19/2024 | 01/02/2025 | (1) |  |  |  | 2095 | 4190 | 11031 | 1573974 |
| **Tina H.** <br>**Miller** | 2025 RSU | 11/19/2024 | 01/02/2025 | (2) |  |  |  |  | 1397 |  | 493695 |
| **David G.** <br>**Stork** | 2025 STIP |  |  | (3) | 160000 | 320000 | 640000 |  |  |  |  |
| **David G.** <br>**Stork** | 2025 PSU | 11/19/2024 | 01/02/2025 | (1) |  |  |  | 628 | 1255 | 3304 | 471441 |
| **David G.** <br>**Stork** | 2025 RSU | 11/19/2024 | 01/02/2025 | (2) |  |  |  |  | 419 |  | 148073 |
| **Gary M.** <br>**Glandon** | 2025 STIP |  |  | (3) | 200000 | 400000 | 800000 |  |  |  |  |
| **Gary M.** <br>**Glandon** | 2025 PSU | 11/19/2024 | 01/02/2025 | (1) |  |  |  | 689 | 1377 | 3625 | 517270 |
| **Gary M.** <br>**Glandon** | 2025 RSU | 11/19/2024 | 01/02/2025 | (2) |  |  |  |  | 459 |  | 162209 |
| **George N.** <br>**Hines** | 2025 STIP |  |  | (3) | 220000 | 440000 | 880000 |  |  |  |  |
| **George N.** <br>**Hines** | 2025 PSU | 11/19/2024 | 01/02/2025 | (1) |  |  |  | 1043 | 2085 | 5489 | 783230 |
| **George N.** <br>**Hines** | 2025 RSU | 11/19/2024 | 01/02/2025 | (2) |  |  |  |  | 695 |  | 245611 |
| **Adam A.** <br>**Chamberlain** | 2025 STIP |  |  | (3) | 375000 | 750000 | 1500000 |  |  |  |  |
| **Adam A.** <br>**Chamberlain** | 2025 PSU | 11/19/2024 | 01/02/2025 | (5) |  |  |  | 2176 | 4352 | 11457 | 1634829 |
| **Adam A.** <br>**Chamberlain** | 2025 RSU | 11/19/2024 | 01/02/2025 | (6) |  |  |  |  | 1451 |  | 512779 |

---

<sup>(1)</sup> These amounts reflect PSUs which are earned based on our relative revenue growth and relative EPS growth, with a TSR modifier, the material terms of which are further described under "Compensation Discussion and Analysis – 2025 Compensation Program Design & Result - Long-Term Incentive Plan" above.

<sup>(2)</sup> These amounts reflect time-based RSUs which vest in three equal annual installments over three years.

<sup>(3)</sup> The values reflect the threshold, target, and maximum amounts payable under our Short-Term Incentive Plan for the 2025 performance year, as further described in the discussion under "<u>[Short-Term Incentive Plan](#ic4b68f9df5f645149bb3535a26afa3af_127)</u>" section of the Compensation Discussion and Analysis, above. The actual amount paid for 2025 is included in the "Non-Equity Incentive Plan Compensation" column of the Summary Compensation Table. 

<sup>(4)</sup> These amounts reflect the grant date fair value for awards granted under the 2013 Amended and Restated Stock Incentive Plan. The grant date fair value is computed in accordance with FASB ASC Topic 718 for PSUs and RSUs granted during the applicable year. The attainment level used to calculate the grant date fair value for the performance and time-vesting grants was 100% based on the probable outcome at the time of grant. For a more detailed discussion of the assumptions used to determine the grant date fair value and other related information, see footnote 1 to the <u>[Summary Compensation Table](#ic4b68f9df5f645149bb3535a26afa3af_148)</u>, above, and Notes 1 and 14 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. 

<sup>(5)</sup> These amounts reflect PSUs with the same vesting schedule as noted in footnote (1), above. In connection with his resignation effective June 1, 2025, the Compensation Committee modified this award to permit Mr. Chamberlain to continue to vest with respect to a reduced target number of shares, namely 1,088 shares, subject to continued compliance with certain restrictive covenants. 

<sup>(6)</sup> These amounts reflect time-based RSUs with the same vesting schedule as noted in footnote (2). In connection with his resignation effective June 1, 2025, the Compensation Committee modified this award to permit Mr. Chamberlain to continue to vest with respect to a reduced number of shares, namely 363 shares, subject to continued compliance with certain restrictive covenants.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 55 |

---

 **Outstanding Equity Awards at 2025 Fiscal Year-End**

The following table sets forth the outstanding equity awards held by our NEOs as of December 31, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Name** | **Grant Date** | **Number of Shares**<br>**or Units of Stock**<br>**That Have Not**<br>**Vested (#)**<sup>(1)</sup> | **Number of Shares**<br>**or Units of Stock**<br>**That Have Not**<br>**Vested (#)**<sup>(1)</sup> | **Market Value** <br>**of Shares or** <br>**Units of Stock** <br>**That Have Not** <br>**Vested ($)**<sup>(2)</sup><br>| **Equity Incentive Plan**<br>**Awards: Number of**<br>**Unearned Shares,** <br>**Units**<br>**or Other Rights That**<br>**Have Not Vested (#)**<sup>(3)</sup> | **Equity Incentive Plan**<br>**Awards: Number of**<br>**Unearned Shares,** <br>**Units**<br>**or Other Rights That**<br>**Have Not Vested (#)**<sup>(3)</sup> | **Equity Incentive Plan** <br>**Awards: Market or** <br>**Payout Value of** <br>**Unearned Shares, Units** <br>**or Other Rights That** <br>**Have Not Vested ($)**<sup>(2)</sup><br>|
| **Bryan B. DeBoer** | **Bryan B. DeBoer** | 1/3/2022 | 8422 | (4) | 2798883 |  |  |  |
| **Bryan B. DeBoer** | **Bryan B. DeBoer** | 2/2/2023 | 4108 | (4) | 1365212 |  |  |  |
| **Bryan B. DeBoer** | **Bryan B. DeBoer** | 2/2/2023 | 76129 | (7) | 25299951 |  |  |  |
| **Bryan B. DeBoer** | **Bryan B. DeBoer** | 1/2/2024 | 6062 | (5) | 2014584 |  |  |  |
| **Bryan B. DeBoer** | **Bryan B. DeBoer** | 1/2/2024 |  |  |  | 71457 | (8) | 23747305 |
| **Bryan B. DeBoer** | **Bryan B. DeBoer** | 1/2/2025 | 7253 | (6) | 2410389 |  |  |  |
| **Bryan B. DeBoer** | **Bryan B. DeBoer** | 1/2/2025 |  |  |  | 57276 | (9) | 19034533 |
| **Tina H. Miller** | **Tina H. Miller** | 1/3/2022 | 1080 | (4) | 358916 |  |  |  |
| **Tina H. Miller** | **Tina H. Miller** | 2/2/2023 | 688 | (4) | 228643 |  |  |  |
| **Tina H. Miller** | **Tina H. Miller** | 2/2/2023 | 12747 | (7) | 4236211 |  |  |  |
| **Tina H. Miller** | **Tina H. Miller** | 1/2/2024 | 1128 | (5) | 374868 |  |  |  |
| **Tina H. Miller** | **Tina H. Miller** | 1/2/2024 |  |  |  | 13294 | (8) | 4417995 |
| **Tina H. Miller** | **Tina H. Miller** | 1/2/2025 | 1397 | (6) | 464265 |  |  |  |
| **Tina H. Miller** | **Tina H. Miller** | 1/2/2025 |  |  |  | 11030 | (9) | 3665600 |
| **David G. Stork** | **David G. Stork** | 1/3/2022 | 417 | (4) | 138582 |  |  |  |
| **David G. Stork** | **David G. Stork** | 2/2/2023 | 209 | (4) | 69457 |  |  |  |
| **David G. Stork** | **David G. Stork** | 2/2/2023 | 3896 | (7) | 1294758 |  |  |  |
| **David G. Stork** | **David G. Stork** | 1/2/2024 | 338 | (5) | 112328 |  |  |  |
| **David G. Stork** | **David G. Stork** | 1/2/2024 |  |  |  | 3988 | (8) | 1325332 |
| **David G. Stork** | **David G. Stork** | 1/2/2025 | 419 | (6) | 139246 |  |  |  |
| **David G. Stork** | **David G. Stork** | 1/2/2025 |  |  |  | 3304 | (9) | 1098018 |
| **Gary M. Glandon** | **Gary M. Glandon** | 2/2/2023 | 209 | (4) | 69457 |  |  |  |
| **Gary M. Glandon** | **Gary M. Glandon** | 2/2/2023 | 3896 | (7) | 1294758 |  |  |  |
| **Gary M. Glandon** | **Gary M. Glandon** | 1/2/2024 | 367 | (5) | 121965 |  |  |  |
| **Gary M. Glandon** | **Gary M. Glandon** | 1/2/2024 |  |  |  | 4323 | (8) | 1436663 |
| **Gary M. Glandon** | **Gary M. Glandon** | 1/2/2025 | 459 | (6) | 152539 |  |  |  |
| **Gary M. Glandon** | **Gary M. Glandon** | 1/2/2025 |  |  |  | 3625 | (9) | 1204696 |
| **George N. Hines** | **George N. Hines** | 1/3/2022 | 601 | (4) | 199730 |  |  |  |
| **George N. Hines** | **George N. Hines** | 2/2/2023 | 362 | (4) | 120303 |  |  |  |
| **George N. Hines** | **George N. Hines** | 2/2/2023 | 6728 | (7) | 2235916 |  |  |  |
| **George N. Hines** | **George N. Hines** | 1/2/2024 | 564 | (5) | 187434 |  |  |  |
| **George N. Hines** | **George N. Hines** | 1/2/2024 |  |  |  | 6647 | (8) | 2208998 |
| **George N. Hines** | **George N. Hines** | 1/2/2025 | 695 | (6) | 230969 |  |  |  |
| **George N. Hines** | **George N. Hines** | 1/2/2025 |  |  |  | 5489 | (9) | 1824159 |
| **Adam A. Chamberlain** | **Adam A. Chamberlain** | 1/2/2025 | 363 | (6) | 120636 |  |  |  |
| **Adam A. Chamberlain** | **Adam A. Chamberlain** | 1/2/2025 |  |  |  | 2864 | (9) | 951793 |
| (1) | All shares are related to RSUs subject to time-vesting restrictions. | All shares are related to RSUs subject to time-vesting restrictions. | All shares are related to RSUs subject to time-vesting restrictions. | All shares are related to RSUs subject to time-vesting restrictions. | All shares are related to RSUs subject to time-vesting restrictions. | All shares are related to RSUs subject to time-vesting restrictions. | All shares are related to RSUs subject to time-vesting restrictions. | All shares are related to RSUs subject to time-vesting restrictions. |
| (2) | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. | Assumes a stock price of $332.33, the closing price of our common stock on December 31, 2025. |
| (3) | All shares are related to RSUs subject to performance-vesting restrictions. | All shares are related to RSUs subject to performance-vesting restrictions. | All shares are related to RSUs subject to performance-vesting restrictions. | All shares are related to RSUs subject to performance-vesting restrictions. | All shares are related to RSUs subject to performance-vesting restrictions. | All shares are related to RSUs subject to performance-vesting restrictions. | All shares are related to RSUs subject to performance-vesting restrictions. | All shares are related to RSUs subject to performance-vesting restrictions. |
| (4) | Vests 100% on January 1, 2026. | Vests 100% on January 1, 2026. | Vests 100% on January 1, 2026. | Vests 100% on January 1, 2026. | Vests 100% on January 1, 2026. | Vests 100% on January 1, 2026. | Vests 100% on January 1, 2026. | Vests 100% on January 1, 2026. |
| (5) | Vests 50% on January 1, 2026 and 50% on January 1, 2027. | Vests 50% on January 1, 2026 and 50% on January 1, 2027. | Vests 50% on January 1, 2026 and 50% on January 1, 2027. | Vests 50% on January 1, 2026 and 50% on January 1, 2027. | Vests 50% on January 1, 2026 and 50% on January 1, 2027. | Vests 50% on January 1, 2026 and 50% on January 1, 2027. | Vests 50% on January 1, 2026 and 50% on January 1, 2027. | Vests 50% on January 1, 2026 and 50% on January 1, 2027. |
| (6) | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. | Vests 33% on January 1, 2026 and 2027 and 34% on January 1, 2028. |
| (7) | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. | PSUs were earned following the completion of their performance period on December 31, 2025 based on (i) our relative revenue growth (ii) an operating margin governor and (iii) a relative <br>TSR modifier. The Compensation Committee certified and approved attainment at 210% of target in January of 2026, at which points these shared vested and settled. |
| (8) | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2026, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first two <br>years of the three-year performance period exceeded target levels. |
| (9) | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. | PSUs are earned following the completion of their performance period on December 31, 2027, subject to (i) our relative revenue growth rank (ii) our EPS growth ranking and (iii) a relative <br>TSR modifier. The number of shares and the value for the PSUs reflects payout at maximum because our performance under the metrics mentioned in the prior sentence for the first year of <br>the three-year performance period exceeded target levels. |

---

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|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 56 |

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**Stock Vested for 2025**

The following table summarizes shares acquired on vesting of stock unit awards during 2025 for each NEO:

---

| | | |
|:---|:---|:---|
|  | **Stock Awards** | **Stock Awards** |
| **Name** | **Number of Shares Acquired on Vesting (#)** | **Value Realized on Vesting ($)**<sup>(1)</sup> |
| **Bryan B. DeBoer** | 25995 | 9291393 |
| **Tina H. Miller** | 3326 | 1188812 |
| **David G. Stork** | 1145 | 409257 |
| **Gary M. Glandon** | 648 | 231615 |
| **George N. Hines** | 1894 | 676972 |
| **Adam A. Chamberlain** | 608 | 217317 |

---

(1) Equals the value of the shares acquired based on the closing price of our common stock on the vesting date.

**Non-Qualified Deferred Compensation** 

The table below reflects the contributions, earnings, withdrawals and distributions during 2025 and the account balances as of

December 31, 2025 for each NEO under our Executive Management Non-Qualified Deferred Compensation and SERP. Mr. Glandon

did not participate in our Executive Management Non-Qualified Deferred Compensation and SERP and therefore has no balance in

the plan.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Executive** <br>**Contributions in** <br>**Last FY**<sup>(1)</sup><br>| **Registrant** <br>**Contributions in** <br>**Last FY**<sup>(2)</sup><br>| **Aggregate Earnings** <br>**in Last FY**<br>| **Aggregate** <br>**Withdrawals/** <br>**Distributions**<br>| **Aggregate Balance** <br>**at Last FYE**<sup>(3)</sup><br>|
| **Bryan B. DeBoer** | $634650 | $— | $569504 | $— | $10770822 |
| **Tina H. Miller** | $— | $70000 | $41430 | $— | $781988 |
| **David G. Stork** | $— | $— | $363 | $— | $6789 |
| **Gary M. Glandon** | $— | $— | $— | $— | $— |
| **George N. Hines** | $— | $50000 | $18991 | $— | $360015 |
| **Adam A. Chamberlain** | $— | $75000 | $(184306)<sup>(4)</sup> | $— | $52644 |

---

(1) The executive contribution amount in this column is included in the Non-Equity Incentive Plan Compensation column of the <u>[Summary Compensation Table](#ic4b68f9df5f645149bb3535a26afa3af_148)</u>above.

(2) The registrant contribution amounts in this column are included in the All Other Compensation columns of the <u>[Summary Compensation Table](#ic4b68f9df5f645149bb3535a26afa3af_148)</u> above.

(3) The following amounts included in this column for the Executive Management Non-Qualified Deferred Compensation and SERP were reported in the Summary Compensation Table as compensation for a prior fiscal year: Mr. DeBoer, $8,097,175; Ms. Miller, $582,472; Mr. Stork: $13; Mr. Hines, $253,681; Mr. Chamberlain, $150,097.

(4) Includes $191,920 in unvested funds forfeited upon Mr. Chamberlain's resignation which was effective on June 1, 2025. 

Our Executive Management Non-Qualified Deferred Compensation and SERP permits us to contribute awards for participants that

will have deferred payout. Under this plan, senior executives may defer receipt of portions of their compensation (up to 50% of base

salary, and 100% of variable compensation) in any given year, with all deferred amounts earning interest at an annual rate set by the

Compensation Committee. For 2025, the annual interest rate was 5.5%, with monthly compounding.

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|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 57 |

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**Potential Payments Upon Termination or Change in Control**

**Potential Payments Upon Termination of Employment**

In certain circumstances, it is appropriate to provide post-termination benefits. The specific situations in which our executive officers

are eligible for post-termination benefits are discussed in more detail below, but in summary:

• We offer traditional severance for our NEOs upon a "double trigger", namely upon a qualifying involuntary termination following

a change in control. These double trigger benefits limit cash severance to 2x the executive's base salary and bonus, and offer

acceleration of outstanding equity.

• We are required to submit these double-trigger severance benefits to shareholders for a non-binding vote prior to payment (as

part of a so-called "Say on Golden Parachute" vote). We do not offer equity acceleration apart from a termination in connection

with a change in control and such a vote.

• From time-to-time and on a limited case-by-case basis, we have entered into separation arrangements with terminated NEOs

that include benefits like consulting fees and/or continued equity vesting as may be necessary to secure a release and

compliance with post-termination restrictive covenants.

• The only other post-termination benefits contemplated by our compensation plans are not related to severance, are not overly

rich, do not include equity acceleration, and are paid only in connection with an executive's death, disability (which are akin and

substitutes for life insurance or long-term disability benefits, and modest in amount) or a qualified retirement. These

additional arrangements are limited to providing continued vesting of equity (i.e., annual vesting, subject to performance for

PSUs, and subject to compliance with service and/or restrictive covenant requirements) and continued vesting of SERP

contributions, except that SERP contributions also vest upon a death or disability. Our SERP is a cash program where the value

of contributions accrue interest at a reasonable rate determined annually by our Compensation Committee and is not connected

to the valuation of our stock price.

• Besides the required "say on golden parachute" vote, shareholders have the opportunity to annually express their opinion of our

executive compensation programs, including these post-termination payments, in our annual "say-on-pay" vote and through our

regular shareholder engagement process.

**Benefits payable to NEOs upon death, disability or retirement**

For all RSUs and PSUs granted to NEOs in 2025, if the NEO becomes disabled one year or more after an award is granted, that

award will continue to vest after such disability. Prior to 2025, awards were eligible for such continued vesting on a disability

immediately at grant, but our PSUs only vested on a pro-rated basis in such circumstances. For all RSUs and PSUs granted to

NEOs, if death occurs one year or more from grant or qualified retirement occurs, the equity awards continue to vest in accordance

with their terms except that, prior to our 2025 awards, continued vesting on an NEOs death for PSUs was only available on a pro-

rated basis. The criteria for a qualified retirement differs for individual executives and award years but requires, at a minimum, that

an individual's combined age and service must equal at least 65. To continue retirement vesting in any awards, eligible executives

must continue to comply with post-retirement assistance requirements and covenants. Lithia believes that this retirement vesting

feature is appropriate and motivating because it provides protection to long-tenured NEOs considering the vesting and performance

period and is a prevalent practice among other companies within the Peer Group. Further, PSUs provide no value to the extent

NEOs violate their post-retirement covenants. As of December 31, 2025, only Mr. Glandon (with respect to his PSUs only) and Mr.

DeBoer satisfied such requirements.

For all SERP contributions granted to NEOs in 2025, if the NEO becomes disabled or passes away while employed by us, the

contribution becomes 100% vested. If qualified retirement occurs, the contributions will continue to vest in accordance with their

terms. For this purpose, a qualified retirement means a NEO voluntarily terminates employment and is at least 55 years of age and

has completed 10 years of service at the time of such termination and as of December 31, 2025, only Mr. DeBoer, who is already

fully vested in his SERP benefit, satisfied such requirements.

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|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 58 |

---

The following table sets forth the estimated benefits that would have been payable to our NEOs who were in office at the end of the

year under their equity awards and Non-Qualified Deferred Compensation and SERP if each NEOs employment had been

terminated on December 31, 2025 because of death, disability or retirement, and the price per share of our common stock is the

closing market price on December 31, 2025 (i.e., $332.33) and all performance-based equity awards vest at target.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Death** | **Disability** | **Retirement** |
| **Bryan B. DeBoer** | $24242809 | $24242809 | $27247072 |
| **Tina H. Miller** | $4098958 | $4098958 | $— |
| **David G. Stork** | $1272492 | $1272492 | $— |
| **Gary M. Glandon** | $1171796 | $1171796 | $980374 |
| **George N. Hines** | $2131897 | $2131897 | $— |
| Includes all outstanding and unvested equity awards that would continue to vest.  | Includes all outstanding and unvested equity awards that would continue to vest.  | Includes all outstanding and unvested equity awards that would continue to vest.  | Includes all outstanding and unvested equity awards that would continue to vest.  |

---

**Potential Payments Upon Change in Control**

**Change in Control and Severance Agreements**

Lithia believes our executives should be appropriately compensated if the completion of a change in control transaction results in a

loss of their job, and that providing severance payments, accelerating the vesting of RSUs and certain other limited payments

mitigate executives' potential personal concerns and appropriately align their interests with those of our shareholders in the context

of a potential change in control transaction. Each of our CEO, Executive Vice Presidents, Senior Vice Presidents and Vice

Presidents has a change in control agreement with the Company.

If we are facing a potential change in control transaction and the proposed transaction would likely negatively affect one or more of

our senior executives, we believe it is risky to assume that those senior executives will work against their financial interest, even if

the proposed transaction would be in the best interest of our shareholders. We believe that, in such case, our executives should not

be motivated by financial self-interest but rather should be appropriately compensated if the completion of the transaction results in a

loss of their job. Accordingly, we believe that providing "double-trigger" severance payments, accelerating the vesting of RSUs and

certain other limited payments are an appropriate means of achieving alignment between the interests of our senior executives and

our shareholders in the context of a potential transaction that would result in a change in control.

**Change in Control Agreements**

We are party to double-trigger Change in Control Agreements with our NEOs. Under those agreements, if, after a change in control,

the executive is terminated without cause or resigns for good reason, each as defined below, we will pay the executive:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Employee** | **Title** | **Salary** | **Bonus** | **Time-Vesting RSUs** | **Performance-Vesting** <br>**RSUs**<br>|
| **Bryan B. DeBoer** | President and Chief <br>Executive Officer<br>| 24 months | 2 years | Accelerated vesting | Accelerated vesting <br>at target<br>|
| **Tina H. Miller** | Senior Vice President and <br>Chief Financial Officer<br>| 24 months | 2 years | Accelerated vesting | Accelerated vesting <br>at target<br>|
| **David G. Stork** | Senior Vice President, <br>Chief Administrative Officer<br>| 24 months | 2 years | Accelerated vesting | Accelerated vesting <br>at target<br>|
| **Gary M. Glandon** | Former Senior Vice <br>President, Chief People <br>Officer<br>| 24 months | 2 years | Accelerated vesting | Accelerated vesting <br>at target<br>|
| **George N. Hines** | Former Senior Vice <br>President, Chief Innovation <br>& Technology Officer<br>| 24 months | 2 years | Accelerated vesting | Accelerated vesting <br>at target<br>|

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 59 |

---

In addition, in such circumstances, our executives would also be eligible to receive continuing long-term care insurance premiums for

24 months after the separation date; and continuing health insurance benefits until the earlier of (a) 18 months after the separation

date, (b) the full COBRA period required by law or (c) when the executive becomes eligible for employer-sponsored health insurance

from a subsequent employer.

The Change in Control Agreements also contain non-solicitation, non-competition and non-disparagement provisions, but (i) those

provisions are dependent on the executive electing to receive the change in control benefits identified above and (ii) the Company's

remedy if the executive violates the non-competition provisions is limited to causing the executive to forfeit profit sharing or other

bonus compensation that has not yet been paid to the executive.

If applicable, the non-solicitation and non-competition provisions are effective for two years following the date of the executive's

separation from service with us. If applicable, the non-disparagement provision is effective for three years from that date. The

Change in Control Agreements also contain provisions regarding non-disclosure (for three years from the date of the executive's

separation from service) and assignment of interest in all creative works that are not dependent on the executive receiving any

change in control benefits under the agreement.

Under the Change in Control Agreements:

A "Change in Control" occurs if: (A) the Company merges or consolidates with another entity and, as a result, less than 50% of the

combined voting power of the resulting entity immediately after the merger or consolidation is held by persons who were the holders

of the Company's voting securities immediately before the merger or consolidation; (B) any person, entity, or group of persons or

entities, other than through merger or consolidation, acquires 50% or more of the total fair market value or total voting power of the

Company's outstanding stock (excluding such a change through the transfer of the Company's outstanding stock or interests in Lithia

Holding to the Sidney B. DeBoer Trust or the election of Bryan DeBoer or the Sidney B. DeBoer Family Trust as the manager of

Lithia Holding) or acquires substantially all of the Company's assets; (C) any one person, or more than one person acting as a

group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or

persons) ownership of stock of the Company possessing 50% or more of the total voting power of the stock of the Company

(excluding such a change through the transfer of the Company's outstanding stock or interests in Lithia Holding to the Sidney B.

DeBoer Trust or the election of the Sidney B. DeBoer Family Trust as the manager of Lithia Holding); or (D) a majority of the

members of the Company's Board of Directors are removed from office by a vote of the Company's shareholders over the

recommendation of our Board or replaced during any 12-month period by directors whose appointment or election is not endorsed by

a majority of the members of the Company's Board of Directors before the date of the appointment or election;

"Cause" for termination of employment means any one or more of the following: (A) willful misfeasance, gross negligence or conduct

involving dishonesty in the performance of the executive's duties, as determined by our Board of Directors; (B) conviction of a crime

in connection with the executive's duties or any felony; (C) conduct significantly harmful to the Company, as reasonably determined

by our Board of Directors, including but not limited to intentional violation of law or of any significant policy or procedure of the

Company; (D) refusal or failure to act in accordance with a stipulation, requirement or directive of our Board of Directors (provided

such directive is lawful); or (E) failure to faithfully or diligently perform any of the duties of the executive's employment which are

specified in the Change in Control Agreement, articulated by our Board of Directors, or are usual and customary duties of the

executive's employment if the executive has not corrected the problem or formulated a plan for its correction with our Board (if such

failure is not susceptible to immediate correction) within 30 days after notice to the executive; and

"Good Reason" for an executive's resignation means (A) any one or more of the following occurs without the executive's consent: (1)

a material diminution of the executive's base compensation (unless consistent with an across- the-board pay reduction for all senior

management and not in excess of 20%); (2) a material change in the geographic location at which the executive must perform

services for the Company; (3) a material diminution in the executive's authority, duties or responsibilities, or (4) any action or inaction

by the Company that constitutes a material breach of the Change in Control Agreement; (B) the executive provides notice to the

Company of the existence of the condition within 90 days of the initial existence of the condition; (C) the Company has 30 days

following receipt of such notice to remedy the condition and fails to do so; and (D) the executive resigns within twelve months of such

event occurring. For purposes of clause (A)(3) of the previous sentence, whether a material diminution in the executive's authority

has occurred shall be determined in part by comparing the authority and positions of the persons to whom the executive directly

reports immediately prior to the Change in Control or the announcement of the Change in Control with the authority and positions of

the persons to whom the executive directly reports immediately after the claimed diminution in the executive's authority. For

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 60 |

---

example, if the executive was the CEO of the Company before the Company was acquired by a competing business, a material

diminution in the CEO's authority would include, but not be limited to, the CEO not serving as the CEO of the consolidated competing

business after its acquisition of the Company.

Notwithstanding the provision for change in control benefits in the Change in Control Agreements, each Change in Control

Agreement contains a provision stating that if any benefit payable by us to the executive, including, without limitation, the change in

control benefits specified in the agreement, would constitute an "excess parachute payment" as defined in Section 280G of the

Internal Revenue Code, those benefits shall be reduced to the largest amount that will result in no portion of the benefits being

subject to the excise tax imposed by Section 4999 of the Internal Revenue Code. While the executive may select which particular

benefits will be reduced to comply with this provision, the determination of the amount of reduction in the benefits required is made

by mutual agreement of us and the executive and, if no agreement is possible, by our independent registered public accountants.

**Non-Qualified Deferred Compensation and SERP Plan**

Under our Executive Management Non-Qualified Deferred Compensation and SERP Plan, discretionary benefits contributed to a

participant's account by us fully vest upon a change in control, as defined under Code Section 409A or Treasury Regulations issued

thereunder, even if the NEO's employment is not terminated. Vested discretionary benefits are paid to a participant in an annual

installment method over ten years.

**Other Termination Payments**

In connection with his resignation that was effective June 1, 2025, the Compensation Committee permitted Mr. Chamberlain to

continue to vest in a portion of his 2025 long-term incentive grants in exchange for Mr. Chamberlain's abiding by certain restrictive

covenants, including non-competition, non-solicitation, and non-disparagement covenants. As a result, the target number of shares

under Mr. Chamberlain's 2025 PSUs was reduced from 4,352 shares to 1,088 shares and Mr. Chamberlain's 2025 RSUs were

reduced from 1,451 shares to 363 shares. Apart from these reduced equity awards, Mr. Chamberlain forfeited all unvested equity as

of his resignation date and did not receive any other termination related payments.

**Quantitative Disclosure of Payments Upon Termination or Change in Control**

The following table provides quantitative disclosure of estimated payouts to our continuing NEOs assuming a change in control and

associated triggering events occurred under the Change in Control Agreements on December 31, 2025, and the price per share of

our common stock is the closing market price of $332.33 on December 31, 2025. The amounts listed in the table below are in

addition to benefits generally available to our employees upon termination of employment, such as distributions from the 401(k) plan

and accrued vacation.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Current Annual** <br>**Salary**<br>| **Severance** <br>**Payments**<sup>(1)</sup><br>| **Severance** <br>**Related** <br>**Benefits**<sup>(2)</sup><br>| **Value of Stock** <br>**Awards That** <br>**Would Vest**<sup>(3)</sup><br>| **Value of Long-**<br>**Term Incentive** <br>**Benefits that** <br>**Would Vest**<sup>(4)</sup><br>| **Additional** <br>**Payment under** <br>**Cash Incentive** <br>**Plan for 2025**<sup>(5)</sup><br>| **Total** |
| **Bryan B.** <br>**DeBoer**<br>| $1300000 | $2600000 | $20356 | $36887965 | $— | $6318000 | $45826321 |
| **Tina H.** <br>**Miller**<br>| $750000 | $1500000 | $15187 | $6496387 | $141209 | $2106000 | $10258783 |
| **David G.** <br>**Stork**<br>| $500000 | $1000000 | $32661 | $1989660 | $— | $1036800 | $4059121 |
| **Gary M.** <br>**Glandon**<br>| $300000 | $600000 | $24104 | $1963738 | $— | $1296000 | $3883842 |
| **George N.** <br>**Hines**<br>| $640000 | $1280000 | $24104 | $3324962 | $111040 | $1425600 | $6165706 |

---

(1) Payable in 24 monthly installments.

(2) Based on current cost of providing 18 months (the full COBRA period) of COBRA benefits for our NEOs.

(3) Payable by delivery of shares of Lithia stock immediately following a change in control.

(4) Payable in equal annual installments over 10 years. The value of the long-term incentive is based on the unvested value of those benefits, calculated as of December 31, 2025 and would be payable even if the NEO's employment was not terminated.

(5) Payable in a lump sum immediately following a change in control. Amounts are in addition to amounts reported in the Summary Compensation Table under "Non-equity Incentive Plan."

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 61 |

---

**CEO Pay Ratio**

As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(u) of Regulation S-

K, Lithia provides information about the relationship of the annual total compensation of our employees and the annual total

compensation of our CEO.

We identified the median of the annual total compensation of all our employees using gross earnings for 2025, including any equity

vesting in the year, for each individual, employed by us as of December 31, 2025, excluding the CEO. Gross earnings for employees

in the United Kingdom and Canada were also converted to USD based on the average daily exchange rate for the year.

In determining the identity of our median employee, we excluded approximately 1,075 employees of 17 acquisitions in 2025, namely:

Stohlman Subaru, Elk Grove Subaru, Mercedes-Benz of Collierville & Jackson, Milton Keynes Hyundai, Renault Manchester,

Warrington Hyundai, Napleton Palm Beach Hyundai Genesis & Acura, Hatfields JLRs, Evans Halshaw BYD Rotherham, Evans

Halshaw BYD Chesterfield, Stivers Decatur Subaru, Orange County Hyundais, Beverly Hills Porsche & Santa Monica Audi

Fines Ford, BYD Wolverhampton Open Point, BYD Mansfield,and Ford Middlesbrough.

After identifying the median employee, we calculated annual total compensation for such employee using the same methodology we

use for our CEO's compensation. As a result, for 2025:

• the annual total compensation of the employee identified at median of our company (other than the CEO), was $58,390.

• the annual total compensation of the CEO was $15,895,468;

Based on this information, for 2025, the ratio of the annual total compensation of Bryan DeBoer, our Chief Executive Officer, to the

median of the annual total compensation of all employees was estimated to be 272 to 1.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 62 |

---

**Pay Versus Performance**

As discussed in our Compensation Discussion and Analysis section, our executive compensation program is designed to reflect a

strong focus on pay-for-performance to drive superior financial results and value creation and strongly align our executives' interests

with those of our shareholders. The following table sets forth compensation information of our Principal Executive Officer (PEO) and

our non-PEO named executive officers (NEOs) along with total shareholder return, net income and revenue performance results, for

our fiscal years ending in 2021, 2022, 2023, 2024, and 2025, in accordance with Item 402(v) of Regulation S-K.

**Pay Versus Performance Table**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Value of Initial Fixed $100 Investment** <br>**Based On:** | **Value of Initial Fixed $100 Investment** <br>**Based On:** |  |  |
|  | **Summary** <br>**Compensation** <br>**Table Total for** <br>**PEO**<br>| **Compensation** <br>**Actually Paid to** <br>**PEO** <sup>(1)</sup><br>| **Average** <br>**Summary** <br>**Compensation** <br>**Table Total for** <br>**Non-PEO NEOs** <sup>(2)</sup><br>| **Average** <br>**Compensation** <br>**Actually Paid to** <br>**Non-PEO NEOs** <br><sup>(1) (2)</sup><br>| **Company Total** <br>**Shareholder** <br>**Return**<br>| **Peer Group Total** <br>**Shareholder** <br>**Return** <sup>(3)</sup><br>| **Net** <br>**Income** <br>**(millions)**<br>| **Revenue** <br>**(millions)**<br>|
| 2025 | $15895468 | $22817359 | $2612837 | $2227492 | $117.15 | $146.89 | $825.9 | $37634.9 |
| 2024 | $16795702 | $20673914 | $4550369 | $5310903 | $125.10 | $166.99 | $802.0 | $36188.2 |
| 2023 | $19235990 | $29392849 | $4715979 | $6355137 | $114.46 | $153.08 | $1000.8 | $31042.3 |
| 2022 | $11125717 | $3939506 | $2805572 | $1740328 | $70.64 | $112.90 | $1251.0 | $28187.8 |
| 2021 | $10532359 | $14008918 | $2323172 | $2821850 | $101.84 | $148.69 | $1060.1 | $22831.7 |

---

(1) In accordance with the requirements of Item 402(v) of Regulation S-K, 2025 "compensation actually paid" (CAP) to our PEO and average CAP

for our non-PEO NEOs was calculated by making the following adjustments to the total compensation reported in the <u>[Summary Compensation](#ic4b68f9df5f645149bb3535a26afa3af_148)</u>

<u>[Table](#ic4b68f9df5f645149bb3535a26afa3af_148)</u>, above. The equity award related adjustments described below reflect the fair value (or change in fair value) for performance- and time-

vesting RSUs, computed in accordance with FASB ASC Topic 718 on the relevant dates.

**PEO and Average Non-PEO Compensation Actually Paid Reconciliation**

The following represents amounts for our CEO and the averages of the indicated amounts for our non-PEO named executive

officers.

---

| | | |
|:---|:---|:---|
| <br>**Summary Compensation Table (SCT) Total** | **PEO**<br>**$15895468** | **NEO Avg.**<br>**$2612837** |
| Amounts reported under the "Change in Pension Value and Nonqualified Deferred Compensation Earnings" <br>Column of the SCT<br>| ($6256) | ($343) |
| Amounts Reported under the "Stock Awards" Column of the SCT | ($10736203) | ($1308622) |
| Amounts Reported under the "Option Awards" Column of the SCT | $0 | $0 |
| **Total Deductions from SCT**  | **($10742459)** | **($1308965)** |
| "Service Cost" for Pension Plans | $0 | $0 |
| "Prior Service Cost" for Pension Plans | $0 | $0 |
| Fair Value at Fiscal Year End of Outstanding and Unvested Equity Awards Granted in the Fiscal Year | $9637626 | $885557 |
| Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Fiscal Years | $8026573 | $567813 |
| Fair Value at Vesting of Equity Awards Granted and Vested in the Fiscal Year | $0 | $0 |
| Change in Fair Value as of the Vesting Date of Equity Awards Granted in Prior Fiscal Years that Vested in the <br>Fiscal Year<br>| $151 | $9 |
| Fair Value as of the Prior Fiscal Year End of Equity Awards Granted in Prior Fiscal Years that Failed to Meet <br>Vesting Conditions in the Fiscal Year<br>| $0 | ($529759) |
| Value of Dividends or Other Earnings Paid on Equity Awards Not Otherwise Reflected in Total Compensation | $0 | $0 |
| **All Other Adjustments** | **$17664350** | **$923620** |
| **Compensation Actually Paid** <br>SCT Total less Total Deduction from SCT plus (minus) All Other Adjustments<br>| **$22817359** | **$2227492** |

---

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|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 06: Compensation Tables | 63 |

---

(2) The non-PEO named executive officers included for purposes of determining the average compensation for our named executive officers each

year, is as follows:

---

| | |
|:---|:---|
| **Year** | **NEOs:** |
| 2025 | Tina H. Miller, David G. Stork, Gary M. Glandon, George N. Hines, Adam A. Chamberlain.  |
| 2024 | Tina H. Miller, Adam A. Chamberlain, Christopher S. Holzshu, George N. Hines |
| 2021 - 2023 | Tina H. Miller, Christopher S. Holzshu, Scott A. Hillier, George N. Hines |

---

(3) Peer group TSR is calculated using the Auto Peers reflected in our Stock Performance Graph in the 2025 Annual Report on Form 10-K, which is

the same peer group used for calculating peer group TSR in our last-filed pay versus performance table. For each year indicated, those Auto

Peers consisted of Penske Automotive Group, AutoNation, Sonic Automotive, Group 1 Automotive, Asbury Automotive Group, and CarMax.

---

| | |
|:---|:---|
| **Performance Measures** | **Table of Performance Measures**<br>This table presents the performance measures the Compensation <br>Committee considers to have been the most important in its <br>executive compensation program linking pay to performance for <br>2025, with revenue serving as the single most important financial <br>metric. The role of each of these performance measures on our <br>NEOs' compensation is discussed in the Compensation Discussion <br>and Analysis section. |
| Revenue (financial) | **Table of Performance Measures**<br>This table presents the performance measures the Compensation <br>Committee considers to have been the most important in its <br>executive compensation program linking pay to performance for <br>2025, with revenue serving as the single most important financial <br>metric. The role of each of these performance measures on our <br>NEOs' compensation is discussed in the Compensation Discussion <br>and Analysis section. |
| Earnings Per Share (financial) | **Table of Performance Measures**<br>This table presents the performance measures the Compensation <br>Committee considers to have been the most important in its <br>executive compensation program linking pay to performance for <br>2025, with revenue serving as the single most important financial <br>metric. The role of each of these performance measures on our <br>NEOs' compensation is discussed in the Compensation Discussion <br>and Analysis section. |
| Total Shareholder Return (financial) | **Table of Performance Measures**<br>This table presents the performance measures the Compensation <br>Committee considers to have been the most important in its <br>executive compensation program linking pay to performance for <br>2025, with revenue serving as the single most important financial <br>metric. The role of each of these performance measures on our <br>NEOs' compensation is discussed in the Compensation Discussion <br>and Analysis section. |
| Net Income (financial) | **Table of Performance Measures**<br>This table presents the performance measures the Compensation <br>Committee considers to have been the most important in its <br>executive compensation program linking pay to performance for <br>2025, with revenue serving as the single most important financial <br>metric. The role of each of these performance measures on our <br>NEOs' compensation is discussed in the Compensation Discussion <br>and Analysis section. |
| Corporate Responsibility and Strategic (non-financial) | **Table of Performance Measures**<br>This table presents the performance measures the Compensation <br>Committee considers to have been the most important in its <br>executive compensation program linking pay to performance for <br>2025, with revenue serving as the single most important financial <br>metric. The role of each of these performance measures on our <br>NEOs' compensation is discussed in the Compensation Discussion <br>and Analysis section. |
|  | **Table of Performance Measures**<br>This table presents the performance measures the Compensation <br>Committee considers to have been the most important in its <br>executive compensation program linking pay to performance for <br>2025, with revenue serving as the single most important financial <br>metric. The role of each of these performance measures on our <br>NEOs' compensation is discussed in the Compensation Discussion <br>and Analysis section. |

---

**Description of Relationships Between Company and Peer Group TSR, and Between Compensation** 

**Actually Paid and Specified Performance Measures**

The graphs below reflects the relationship between (i) our TSR and our peer group's TSR, and (ii) the PEO and average Non-PEO

NEO compensation actually paid (CAP) and our TSR, net income, and revenue, respectively. For the purpose of the below charts, all

data is calculated as described in the footnotes of the above Pay Versus Performance table.

![2583](lad-20260311_g108.gif)

![2585](lad-20260311_g109.gif)

![4398046517415](lad-20260311_g110.gif)

\*Consistent with the above Pay Versus Performance table, peer group TSR is calculated using the

Auto Peers reflected in our Stock Performance Graph in the 2025 Annual Report on Form 10-K.

For each year indicated, those Auto Peers consisted of Penske Automotive Group, AutoNation,

Sonic Automotive, Group 1 Automotive, Asbury Automotive Group, and CarMax.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 07: Proposal No. 1 | 64 |

---

**07**

**PROPOSAL NO. 1**

Election of Directors

Our Board has nominated each of the following persons for election as a director:

---

| | | | |
|:---|:---|:---|:---|
| **Nominee Name** | **Age** | **Has Been a Director Since/(During)\*** | **Independent** |
| **Sidney B. DeBoer** | 82 | 1996 | No |
| **Bryan B. DeBoer** | 59 | 2008 | No |
| **Priya C. Huskins** | 53 | Nominee | Yes |
| **Richard J. Bailey Jr.** | 55 | 2025 | Yes |
| **James E. Lentz** | 70 | 2022 | Yes |
| **Stacy C. Loretz-Congdon** | 66 | 2023 | Yes |
| **Shauna F. McIntyre** | 54 | 2019 | Yes |
| **Cassandra M. McKinney** | 65 | 2024 | Yes |
| **Louis P. Miramontes** | 71 | 2018 | Yes |
| **Heidi L. O'Neill** | 61 | 2025 | Yes |

---

\*Director service since the company's initial public offering.

**Term**

If elected, each nominee will hold office until the next annual meeting or until his or her successor is elected and qualified. Ms.

Huskins has been nominated as a new nominee. If elected, her term will begin on April 30, 2026.

**Election by Majority Vote**

To be elected, the number of votes cast "for" a director's election must exceed the number of votes cast "against" that director. We

have no reason to believe that any of the nominees will be unable or unwilling to serve if elected. However, if any nominee should

become unable or unwilling to serve, proxies may be voted for another person nominated by our Board of Directors.

**Biographical Information on our Nominees**

Our Board believes that the combination of the qualifications, skills and experiences of the nominees will contribute to an effective

and well-functioning Board. Our Board and the Nominating and Governance Committee believe that individually, and as a group, the

nominees possess the necessary qualifications to provide for future oversight of our business consistent with their fiduciary duties to

shareholders. Included in each director nominee's biography, above, is a description of the experience, skills, tenure and attributes of

each nominee.

![](lad-20260311_g111.gif)

***Our Board of Directors unanimously recommends a vote FOR each of the nominees named above.***

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| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 08: Proposal No. 2 | 65 |

---

**08**

**PROPOSAL NO. 2** 

Advisory vote to approve the compensation of our named

executive officers

We are asking shareholders to approve the following advisory resolution to approve the compensation of our named executive

officers reported in this proxy statement:

RESOLVED, that the compensation paid to the Company's named executive officers, as disclosed in the Compensation Discussion

and Analysis, the Summary Compensation Table and related tables, notes and narrative discussion in the Proxy Statement for the

Company's 2026 Annual Meeting of Shareholders, is approved.

The advisory vote, which is required by Section 14A of the Exchange Act, is a vote to approve or disapprove the overall

compensation package of our executive officers and not any one specific element of the compensation package or on the

compensation received by any one person. The advisory vote is non-binding. However, the Compensation Committee and Board will

review and consider the results of the advisory vote when making future decisions about executive compensation. Because we

typically determine annual compensation before the advisory vote on the prior year's compensation is cast, however, if we determine

to make a change in our practices based on shareholder feedback, there may be a delay in implementing those changes.

We urge shareholders to read the detailed information about our compensation philosophy and objectives included in the

<u>[Compensation Discussion and Analysis](#ic4b68f9df5f645149bb3535a26afa3af_109)</u> ("CD&A"), above, which provides context for the Summary Compensation Table and related

information. As discussed in the CD&A, we believe our compensation programs align the interests of our executives and our

shareholders, help us attract and retain experienced executive talent, and focus our executives on performance and achievement of

our short-, mid- and long-term strategic goals and objectives. We believe the overall compensation paid in 2025 was appropriate,

particularly considering our financial results in 2025.

Our Board has adopted a policy providing for an annual say-on-pay vote until the next required shareholder vote on the frequency of

such votes.

**Vote Required**

The votes that shareholders cast "for" must exceed the votes that shareholders cast "against" to approve, on an advisory basis, the

compensation of our named executive officers.

![](lad-20260311_g111.gif)

***Our Board of Directors unanimously recommends a vote FOR the advisory resolution to approve***

***the compensation of our named executive officers.***

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 09: Proposal No. 3 | 66 |

---

**09**

**PROPOSAL NO. 3** 

Ratify the appointment of KPMG LLP as our Independent Registered

Public Accounting Firm for the Year Ending December 31, 2026

**We Engaged KPMG After a Rigorous Review Process**

The Audit Committee of our Board has appointed KPMG LLP, independent registered public accountants, as auditor for the year

ending December 31, 2026. As the Company's independent auditor, KPMG is responsible to audit, and express an opinion on, our

financial statements and our internal control over financial reporting and to discuss with our Audit Committee certain required matters

and other matters deemed appropriate.

KPMG has served as the Company's independent registered public accounting firm continuously since 1993. Before reappointing

KPMG as the Company's independent auditor for 2026, the Audit Committee carefully considered KPMG's qualifications as an

independent registered public accounting firm. This included a review of KPMG's performance in prior years, its knowledge of the

Company and its operations as well as its reputation for integrity and competency in the fields of accounting and auditing.

The Audit Committee believes that retaining KPMG again in 2026 is in the best interests of the Company and its shareholders, and

therefore the Audit Committee requests that shareholders ratify the appointment. If the appointment of the independent registered

public accounting firm is not ratified by shareholder vote, the Audit Committee may appoint another independent registered public

accounting firm or may decide to maintain its appointment of KPMG. A representative of KPMG is expected to be present at the

Annual Meeting. The representative will be given the opportunity to make a statement on behalf of his or her firm if such

representative desires, and will be available to respond to appropriate shareholder questions. KPMG served as the Company's

independent accountants for the year ended December 31, 2025, and reported on the Company's consolidated financial statements

for that fiscal year.

The Audit Committee believes that, if handled properly, there are numerous benefits of a long-term independent auditor relationship,

including:

**Higher Audit Quality**: Through 33 years of experience with the Company KPMG has gained institutional knowledge of and deep

expertise regarding our operations and primary business segments, accounting policies and practices and internal controls over

financial reporting;

**Efficient Fee Structure**: KPMG's aggregate fees are competitive with peer companies because of KPMG's familiarity with the

Company and industry expertise; and

**Avoidance of Disruption**: Onboarding a new independent auditor requires a significant time and cost commitment that could distract

from management's and the Audit Committee's focus on financial reporting and internal controls.

The Company and the Audit Committee are also aware that a long-tenured auditor may be believed by some to pose an

independence risk. To address these concerns, there are safeguards for auditor independence, including:

**Audit Committee Oversight**: The Audit Committee's oversight includes regular private sessions with KPMG, discussions with KPMG

regarding the scope of its audit, an annual evaluation when determining whether to engage KPMG, and direct involvement by the

Audit Committee and its Chair in the periodic transition to a new lead engagement partner in connection with the mandatory five-year

rotation of that position;

**Limits on Non-Audit Services**: The Audit Committee pre-approves audit and permissible non-audit services to be performed by

KPMG in accordance with its pre-approval policy; and

**Regulatory Framework**: Because KPMG is an independent registered public accounting firm, it is subject to PCAOB inspections,

peer reviews and PCAOB and SEC oversight.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 09: Proposal No. 3 | 67 |

---

**Fees Paid to KPMG LLP Related to Fiscal Years 2025 and 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | Audit fees for 2025 and 2024 consist of fees for professional services <br>rendered for the annual audit of our consolidated financial statements <br>and internal control over financial reporting, reviews of our interim <br>consolidated financial statements included in quarterly reports, and <br>services that are normally provided by our independent registered public <br>accounting firm in connection with statutory and regulatory filings or <br>engagements, including relating to the SEC. Audit fees increased year-<br>over-year primarily due to an increase in services connected to <br>regulatory filings and acquisition activity. |
| Audit Fees | $4930000 | $4484673 | Audit fees for 2025 and 2024 consist of fees for professional services <br>rendered for the annual audit of our consolidated financial statements <br>and internal control over financial reporting, reviews of our interim <br>consolidated financial statements included in quarterly reports, and <br>services that are normally provided by our independent registered public <br>accounting firm in connection with statutory and regulatory filings or <br>engagements, including relating to the SEC. Audit fees increased year-<br>over-year primarily due to an increase in services connected to <br>regulatory filings and acquisition activity. |
| Audit-Related Fees | $200850 | $206000 | Audit fees for 2025 and 2024 consist of fees for professional services <br>rendered for the annual audit of our consolidated financial statements <br>and internal control over financial reporting, reviews of our interim <br>consolidated financial statements included in quarterly reports, and <br>services that are normally provided by our independent registered public <br>accounting firm in connection with statutory and regulatory filings or <br>engagements, including relating to the SEC. Audit fees increased year-<br>over-year primarily due to an increase in services connected to <br>regulatory filings and acquisition activity. |
| Tax Fees | $0 | $0 | Audit fees for 2025 and 2024 consist of fees for professional services <br>rendered for the annual audit of our consolidated financial statements <br>and internal control over financial reporting, reviews of our interim <br>consolidated financial statements included in quarterly reports, and <br>services that are normally provided by our independent registered public <br>accounting firm in connection with statutory and regulatory filings or <br>engagements, including relating to the SEC. Audit fees increased year-<br>over-year primarily due to an increase in services connected to <br>regulatory filings and acquisition activity. |
| All Other Fees | $1780 | $1780 | Audit fees for 2025 and 2024 consist of fees for professional services <br>rendered for the annual audit of our consolidated financial statements <br>and internal control over financial reporting, reviews of our interim <br>consolidated financial statements included in quarterly reports, and <br>services that are normally provided by our independent registered public <br>accounting firm in connection with statutory and regulatory filings or <br>engagements, including relating to the SEC. Audit fees increased year-<br>over-year primarily due to an increase in services connected to <br>regulatory filings and acquisition activity. |
|  | $5132630 | $4692453 | Audit fees for 2025 and 2024 consist of fees for professional services <br>rendered for the annual audit of our consolidated financial statements <br>and internal control over financial reporting, reviews of our interim <br>consolidated financial statements included in quarterly reports, and <br>services that are normally provided by our independent registered public <br>accounting firm in connection with statutory and regulatory filings or <br>engagements, including relating to the SEC. Audit fees increased year-<br>over-year primarily due to an increase in services connected to <br>regulatory filings and acquisition activity. |

---

Audit-related fees for 2025 and 2024 cover agreed upon procedures associated with asset-backed securities offerings during

the year.

All other fees were related to software licensing fees during the years presented.

**Pre-Approval Policies**

Except as permitted under federal law and SEC rules, all audit and non-audit services performed by KPMG, and all audit services

performed by other independent registered public accounting firms, must be pre-approved by the Audit Committee. The Audit

Committee has delegated authority to its Chair to pre-approve permitted services in between regular meetings, with such actions to

be ratified at the next Audit Committee meeting. All projects reflected in the foregoing table were pre-approved by the Audit

Committee. KPMG may not perform for us any prohibited services as defined by the Sarbanes-Oxley Act of 2002 including any

bookkeeping or related services, information systems consulting, internal audit outsourcing, legal services and management or

human resources functions. Non-audit services and fees are evaluated by the Audit Committee in assessing the auditor's

independence.

**Vote Required**

The votes that shareholders cast "for" must exceed the votes that shareholders cast "against" on this matter to ratify the appointment

of KPMG LLP as our independent registered public accounting firm for the year ending December 31, 2026.

![](lad-20260311_g112.gif)

***Our Board of Directors unanimously recommends that the shareholders vote FOR the ratification of***

***the appointment of KPMG LLP as our independent registered public accounting firm for the***

***year ending December 31, 2026.***

**Audit Committee Report**

The Audit Committee reports to the Board and is responsible for assisting the Board in fulfilling its oversight responsibilities relating

to: (a) the preparation and integrity of the Company's financial statements; (b) the engagement of the independent registered public

accounting firm, the annual evaluation of their performance, qualifications and independence, and negotiation of fees; (c) the

implementation and evaluation of the Company's internal accounting and financial controls, procedures and policies; and (d) the

compliance with certain legal and regulatory requirements, including programs and policies established by management or our

Board. The Audit Committee is composed solely of independent directors. The Audit Committee regularly reviews financial

information contained in the Company's quarterly earnings releases, and reviews the appropriateness of non-GAAP financial

measures disclosed by the Company. The current Audit Committee charter is available on our website at investors.lithiadriveway.com

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 09: Proposal No. 3 | 68 |

---

In discharging our responsibilities, we have met with the Company's management and its independent registered public accounting

firm, KPMG LLP, to review the Company's accounting functions and the audit process. We have also met regularly with the

Company's Director, Internal Audit, to review the nature and extent of the Company's internal controls, the review procedures

performed by internal audit regarding such controls and the frequency and results of such reviews. In each case, we discussed the

consideration of geographic expansion, increased virtual work environments and the potential impact on internal controls.

**Selection of KPMG as our Auditor**

The Audit Committee selects, oversees and evaluates the performance of the independent auditor. In selecting KPMG as our

independent auditor, the Audit Committee considered that KPMG has been our auditor for 33 years, the firm's global reach and auto

retail industry expertise. The Audit Committee also utilized the Center for Audit Quality's External Auditor Assessment Tool to assist

in evaluating KPMG as our independent auditor. This tool is used annually by the Audit Committee.

Consistent with requirements, the audit partner and concurring review partner rotate at least every five years. A new lead partner

rotated on in 2023. The Audit Committee approves the firm's final selection of the new lead engagement partner.

**Audit Committee Actions**

We hereby report that the Audit Committee has:

1. Reviewed and discussed with management and the Company's independent registered public accounting firm,

KPMG LLP, together and separately, the Company's audited consolidated financial statements contained in the Company's

Annual Report on Form 10-K for the 2025 fiscal year;

2. Discussed with KPMG the matters required to be discussed by the applicable requirements of the Public Company

Accounting Oversight Board and the SEC; and

3. Received from KPMG the written disclosures and the letter required by applicable requirements of the Public

Company Accounting Oversight Board regarding KPMG's communications with the Audit Committee concerning

independence, and discussed with KPMG its independence and any relationships that may impact their objectivity and

independence.

We also discussed and reviewed the results of the independent registered public accounting firm's audit of the Company's financial

statements, the quality and adequacy of the Company's internal control over financial reporting, and issues relating to auditor

independence. In addition, we discussed and reviewed the identification of the critical audit matter with management and with

KPMG throughout the year.

Based on our review and discussions with the Company's management and independent registered public accountants, we

recommended to our Board that the audited financial statements be included in the Company's Annual Report on Form 10-K for

the fiscal year ended December 31, 2025, for filing with the SEC.

**Submitted by:**

Louis P. Miramontes (Chair)

James E. Lentz

Stacy C. Loretz-Congdon

Cassandra M. McKinney

Richard J. Bailey Jr.

Heidi L. O'Neill

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 10: Proposal No. 4 | 69 |

---

**10**

**PROPOSAL NO. 4** 

Shareholder Proposal Requesting that Our Board of Directors Appoint an

Independent Board Chair

We have been advised by John Chevedden, 2215 Nelson Ave., No. 205, Redondo Beach, California 90278, owner of at least 10

shares of common stock, that he intends to present the following shareholder proposal at the Annual Meeting. For the proposal to be

voted on at the Annual Meeting, the proponent or a qualified representative of the proponent must attend the meeting and present

the proposal. The Company and the Board disclaim any responsibility for the content of the proposal and the statement in support of

the proposal, which are presented in the form received from the proponent.

**STATEMENT OF PROPOSING SHAREHOLDER:**

![](lad-20260311_g113.gif)

**Proposal 4 - Independent Board Chairman**

Shareholders request that the Board of Directors adopt an enduring policy, and amend the governing documents as necessary in

order that 2 separate people hold the office of the Chairman and the office of the CEO as soon as possible.

The Chairman of the Board shall be an Independent Director. A Lead Director shall not be a substitute for an independent Board

Chairman.

The Board shall have the discretion to select an interim Chairman of the Board, who is not an Independent Director, to serve while

the Board is required to seek an Independent Chairman of the Board on an accelerated basis. This policy could be phased in when

there is a contract renewal for our current CEO or for the next CEO transition although it is better to adopt it now.

An independent Board Chairman at all times improves corporate governance by bringing impartiality, objective oversight, and

external expertise to board decisions, mitigating conflicts of interest, enhancing transparency, and boosting shareholder confidence.

This detached perspective allows the chairman to focus on shareholder interests, strengthen management accountability, and

provide critical checks and balances, ultimately contributing to long-term sustainability and credibility.

Now could be a ripe time for a change since Lithia Motors stock was at $418 in 2021 and at only $310 late in 2025 despite a robust

stock market.

A wrongful death lawsuit was filed against a Texas Lithia dealership following a fatal car crash during a customer's test drive. The

salesperson who accompanied the customer on the test drive was allegedly drunk, testing positive for alcohol and possibly cocaine

after the crash. The customer was reportedly driving the Dodge Challenger at 120 mph when the Challenger struck another car,

killing a woman.

Financial analysts revised their revenue and earnings per share estimates for Lithia downwards for 2025.

Analysts have noted a trend of contracting gross profit per vehicle (GPU). New vehicle GPUs declined sequentially in Q3 2025.

An October 23, 2025 article said that despite top-line growth, Lithia faces "ongoing pressure from slim and slipping profit margins,

elevated costs, and a stretched balance sheet." Selling, General, and Administrative costs increased as a percentage of gross profit

in Q3.

![ShareholderRights.jpg](lad-20260311_g114.jpg)

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 10: Proposal No. 4 | 70 |

---

An October 2025 Yelp review described a frustrating service experience at a Lithia dealership, including damage to a car and issues

with repairs. This is consistent with earlier complaints about management and customer service at Lithia dealerships. Consumer

reviews and discussions on social media reflect growing dissatisfaction with Lithia-owned dealerships.

A Reddit user reported a decline in service quality and a "nightmare delay" for a warranty repair after Lithia bought their local Subaru

dealership. An October 2025 Facebook post accused a Lithia dealership in New Mexico of using misleading promotional offers and

running a credit check 15-times against the customer's wishes.

Please vote yes:

**Independent Board Chairman - Proposal 4**

![](lad-20260311_g113.gif)

**BOARD OF DIRECTORS STATEMENT IN OPPOSITION TO INDEPENDENT** 

**CHAIR SHAREHOLDER PROPOSAL 4**

The Board has carefully considered this proposal and has determined that it is not in the best interests of the Company and its

shareholders. The Board believes the Company's current Board leadership structure, combined with the Company's strong corporate

governance practices, best serves the Company and our shareholders. Contrary to statements in the proposal, the Company already

has two separate people holding the office of the Chair of the Board and the office of Chief Executive Officer, and those positions

have been filled by separate individuals for more than 14 years.

**The Board values flexibility in determining its leadership structure.** 

The Company does not have a formal policy requiring the positions of Board Chair and Chief Executive Officer to be separated or

requiring the position of Chair to be filled by only an independent director. Instead, the Company's governance documents provide

our Board with flexibility to select the leadership structure that is best for the Company based on its leadership needs at any

particular time. Although the Company has separated the roles of Chair and Chief Executive Officer for over 14 years, adopting a

rigid requirement to split these positions and require an independent Chair would deprive the Board of flexibility to select the most

qualified and appropriate individual to lead the Board as Chair depending on the circumstances. We believe that the Company and

its shareholders benefit from this flexibility and that the Board is best positioned to make this determination.

The Board has carefully considered its current leadership structure and believes its current leadership structure is appropriate and in

the best interests of the Company and its shareholders. In particular, the Board believes that its current leadership structure allows

Sidney B. DeBoer, the founder of the Company, to bring his strength as a long-time leader at Lithia to the role of Chair, while allowing

Bryan B. DeBoer, the Company's Chief Executive Officer and President, to focus on developing and implementing the Company's

strategies and supervising day-to-day business operations. The Board also believes that the current separation of the roles of Chair

and Chief Executive Officer provides a clear delineation of responsibilities for each position and fosters greater accountability of

management. Consistent with its current practice, the Board will continue to review the Company's leadership structure and assess

the needs of the Company and will make any necessary changes based on the circumstances.

**The Board has a strong Lead Independent Director with meaningful responsibilities.**

The Board has appointed a Lead Independent Director on an annual basis for the past 19 years. The Board continually evaluates its

leadership structure and, consistent with its ongoing review, in 2025 the Board appointed Louis P. Miramontes as Lead Independent

Director. Mr. Miramontes is an experienced public company director, having served on multiple public company boards, including as

chair of the audit committee and as chair of the compensation committee on those boards. He is a qualified financial executive and

audit committee financial expert. Mr. Miramontes had a 38-year career at KPMG, where he served in many leadership roles in the

United States and Latin America, and he was named to the NACD Directorship 100 in 2024. Accordingly, the Board's appointment of

Mr. Miramontes as Lead Independent Director demonstrates the Board values a strong Lead Independent Director.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 10: Proposal No. 4 | 71 |

---

Our Corporate Governance Guidelines require the Board to select an independent director to serve as the Lead Independent

Director if the Chair of the Board is not independent. Under our Corporate Governance Guidelines, the Lead Independent Director

is given meaningful and clearly defined responsibilities, which include:

• presiding at the executive sessions of independent directors;

• chairing Board meetings in the Chair's absence;

• communicating any concerns of the independent directors to the Board, Chair or management;

• being available to engage directly with major shareholders where appropriate;

• working with the Chair, management and the independent directors to ensure topics and major discussion items important

to the independent directors are addressed at meetings;

• liaising with and guiding the Board's committee chairs as appropriate from time to time; and

• providing leadership to the Board if circumstances arise in which the role of the Chair/CEO may be or may be perceived to be,

in conflict.

In accordance with good corporate governance, our Board annually reassesses these responsibilities to align them with the evolving

needs and circumstances of the Company and its shareholders.

**The Company's strong corporate governance practices and company performance demonstrate the** 

**effectiveness of the Company's existing Board leadership structure.**

The Board believes that strong corporate governance standards enhance long-term shareholder value, and the Company has

adopted corporate governance policies that promote effective, independent Board oversight, including:

• 7 of 9 directors are independent, including the Lead Independent Director;

• All members of Board committees are independent;

• Annual election of all directors by majority of votes cast in uncontested elections;

• Engaged and highly qualified board of directors;

• Directors not considered independent after serving on the Board for 15 or more years;

• Mandatory independent director retirement age of 79;

• Robust shareholder engagement program;

• Board-approved proxy access permitting eligible shareholders to nominate director candidates;

• Independent directors meet in executive session at each regularly scheduled Board meeting;

• Annual review of director, committee and Board effectiveness, facilitated by a third party; and

• Annual 360-degree review of CEO effectiveness, facilitated by a third party.

Additionally, as described in detail in the "<u>[Letter from the Chief Executive Officer](#ic4b68f9df5f645149bb3535a26afa3af_10)</u>," the Company has become the largest omnichannel

mobility retailer and during 2025 delivered another year of strong financial and operational performance, including double-digit

growth in EPS, same-store growth across all business lines, and record profitability in financing operations led by Driveway Finance

Corporation. The Company's continued success is a testament to the strength and effectiveness of the Board and its policies and

practices.

The Board believes the rigid approach to the Company's leadership structure requested by the proposal is unnecessary and not in

the best interests of the Company or our shareholders. Accordingly, the Board unanimously recommends a vote AGAINST proposal

regarding an independent Board chair.

![](lad-20260311_g115.gif)

***Our Board of Directors unanimously recommends a vote AGAINST this shareholder proposal.***

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 11: Additional Ownership Information | 72 |

---

**11**

**Additional Ownership Information**

**Security Ownership of Certain Beneficial Owners and Management**

The following table sets forth, as of February 27, 2026 (unless otherwise noted in the footnotes to the table), certain information with

respect to ownership of our common stock of (i) persons known by us to be beneficial owners of more than 5% of our common stock,

(ii) each director and director nominee, (iii) each named executive officer, and (iv) all current executive officers, directors, and

director nominees as a group. Except as noted below, the address of each shareholder in the table is Lithia Motors, Inc., 150 N.

Bartlett Street, Medford, Oregon 97501. Unless otherwise indicated, all persons named as beneficial owners of the Company's

common stock have sole voting power and sole dispositive power with respect to the shares indicated as beneficially owned.

---

| | |
|:---|:---|
| **Beneficial Owner** | **Shares Beneficially Owned (#)** |
| The Vanguard Group<sup>(1)</sup> | 2823349 |
| 100 Vanguard Blvd; Malvern, PA 19355 | 2823349 |
| Abrams Capital Management, LP<sup>(2)</sup> | 2490534 |
| 222 Berkeley St, 21st Floor; Boston, MA 02116 | 2490534 |
| Blackrock, Inc<sup>(3)</sup> | 2352180 |
| 55 East 52nd Street; New York, NY 10055 | 2352180 |
| Harris Associates L.P.<sup>(4)</sup> | 2024667 |
| 111 South Wacker Drive Suite 4600; Chicago, IL 60606 | 2024667 |
| Dimensional Fund Advisors LP<sup>(5)</sup> | 1326655 |
| 6300 Bee Cave Road, Building One, Austin, TX 78746 | 1326655 |
| Sidney B. DeBoer<sup>(6)</sup> | 25615<br> \* |
| Bryan B. DeBoer | 188586<br> \* |
| Tina H. Miller | 13683<br> \*  |
| David G. Stork | 4790<br> \*  |
| Richard J. Bailey Jr<sup>(7)</sup> | 342<br> \* |
| Priya C. Huskins | —<br> \* |
| James E. Lentz<sup>(6)</sup> | 2545<br> \*  |
| Stacy C. Loretz-Congdon<sup>(6)</sup> | 1810<br> \* |
| Shauna F. McIntyre<sup>(6)</sup> | 1376<br> \* |
| Cassandra M. McKinney<sup>(6)(8)</sup> | 1300<br> \* |
| Louis P. Miramontes<sup>(6)(9)</sup> | 5679<br> \*  |
| Heidi L O'Neill<sup>(7)</sup> | 342<br> \* |
| All current executive officers and directors as a Group (14 persons)<sup>(10)</sup> | 251221<br> \* |

---

\* Less than one percent

(1) Beneficial ownership as of December 29, 2023 as reported by The Vanguard Group in a Schedule 13G/A filed on February 13, 2024. The Schedule 13G/A reports shared voting power with respect to 9,384 shares, sole dispositive power with respect to 2,785,093 shares and shared dispositive power with respect to 38,256 shares.

(2) Beneficial ownership as of September 30, 2025 as reported by Abrams Capital Management, L.P., Abrams Capital Partners II, L.P., Abrams Capital, LLC, Abrams Capital Management, LLC, and David Abrams in a Schedule 13G/A filed on November 4, 2025. The Schedule 13G/A reports shared voting and dispositive power with respect to 2,490,534 shares by Abrams Capital Management, L.P., Abrams Capital Management, LLC, and David Abrams, with respect to 2,347,051 shares by Abrams Capital, LLC, and with respect to 1,941,198 shares by Abrams Capital Partners II, L.P.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 11: Additional Ownership Information | 73 |

---

(3) Beneficial ownership as of December 31, 2023 as reported by BlackRock, Inc. in a Schedule 13G/A filed on January 25, 2024. The Schedule 13G/A reports sole voting power with respect to 2,259,988 shares and sole dispositive power with respect to 2,352,180 shares.

(4) Beneficial ownership as of December 31, 2023 as reported by Harris Associates L.P. and Harris Associates, Inc. in a Schedule 13G filed on February 14, 2024. The Schedule 13G/A reports sole voting power with respect to 2,024,577 shares and sole dispositive power with respect to all of the shares.

(5) Beneficial ownership as of June 30, 2025 as reported by Dimensional Fund Advisors LP in a Schedule 13G filed on February 14, 2025. The Schedule 13G reports sole voting power with respect to 1,326,655 shares and sole dispositive power with respect to all of the shares.

(6) Includes 168 shares for each specified person underlying RSUs vesting within 60 days, for which the specified person does not have voting and dispositive power.

(7) Includes 171 shares for each specified person underlying RSUs vesting within 60 days, for which the specified person does not have voting and dispositive power.

(8) Includes shares underlying 1,132 deferred stock units without voting rights under a Deferred Compensation Agreement with the Company.

(9) Includes shares underlying 1,458 deferred stock units without voting rights under a Deferred Compensation Agreement with the Company.

(10) Includes 1,350 shares underlying RSUs vesting within 60 days for which current executive officers, directors and director nominees as a group do not have voting and dispositive power and shares underlying 2,590 deferred stock units for which current executive officers, directors and director nominees as a group do not have voting rights.

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 12: General Information | 74 |

---

**12**

**General Information**

About the Annual Meeting

**Online Meeting**

Our Board of Directors has authorized us to conduct the Annual Meeting solely online via the Internet through online shareholder

tools as described in the Notice of Internet Availability of Proxy Materials (the "Notice"). We believe a fully virtual meeting facilitates

greater participation by providing easy access to the meeting. This format empowers shareholders to participate fully from any

location around the world.

**Mailing Date**

On or about March 11, 2026, we mailed to our shareholders the Notice containing instructions on how to access this proxy statement

and our 2025 Annual Report on Form 10-K. The Notice provides instructions on how to vote online or by telephone and includes

instructions on how to receive a paper copy of the proxy materials by mail.

**Matters for Consideration at the Annual Meeting**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Proposal** | **Board Vote** <br>**Recommendation**<br>| **Vote Requirement for** <br>**Approval**<br>| **Effect of**<br>**Abstention**<br>| **Effect of Broker**<br>**Non-Vote**<br>|
| **Proposal No. 1:** The election of ten <br>director nominees named in this <br>proxy statement.<br>| **FOR ALL** | For each director, a majority <br>of votes cast.<br>| No effect. | No effect. Broker non-votes <br>do not count as votes cast.<br>|
| **Proposal No. 2:** An advisory vote to <br>approve the compensation of our <br>named executive officers. <br>| **FOR** | Majority of votes cast. | No effect. | No effect. Broker non-votes <br>do not count as votes cast.<br>|
| **Proposal No. 3:** To ratify the <br>appointment of KPMG LLP as our <br>independent registered public <br>accounting firm for the year ending <br>December 31, 2026.<br>| **FOR** | Majority of votes cast. | No effect. | Broker discretion to vote. |
| **Proposal No. 4**: To vote on a <br>shareholder proposal requesting that <br>our Board appoint an independent <br>Board chair. <br>| **AGAINST** | Majority of votes cast. | No effect. | No effect. Broker non-votes <br>do not count as votes cast.<br>|

---

---

| | | |
|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 12: General Information | 75 |

---

---

| | |
|:---|:---|
| **Items of Business** | **Board Recommendation** |
| 1.To elect the ten director nominees named in this proxy statement; . . . . . . . . . . . . . . . . . . | **☑ FOR** each director nominee |
| 2.Approve, by an advisory vote, named executive officer compensation; . . . . . . . . . . . . . . | **☑ FOR** |
| 3.Ratify the appointment of KPMG LLP as our independent registered public accounting <br>firm for fiscal year ending December 31, 2026; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | **☑ FOR** |
| 4.To vote on a shareholder proposal requesting that our Board appoint an independent <br>Board chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | **☒** AGAINST |

---

As of the date of this proxy statement, we are unaware of any matters that may properly be presented at the Annual Meeting. If any

other matters are properly presented for consideration at the meeting, the persons named as proxies on the enclosed proxy card, or

their duly constituted substitutes, will be deemed authorized to vote those shares for which proxies have been given or otherwise act

on such matters in accordance with their judgment.

**Proxies**

The Board has designated Tina Miller, Senior Vice President and Chief Financial Officer, and Alyse Ringrose, Corporate Controller

as the proxy holders for the Annual Meeting. All properly executed proxies will be voted (except to the extent that authority to vote

has been withheld) as specified by the shareholder. Proxies submitted without specification will be:

• Voted FOR the ten director nominees listed in this proxy statement;

• Voted FOR the approval of our compensation of the named executive officers;

• Voted FOR the ratification of the appointment of KPMG as our independent registered public accounting firm for 2026;

• Voted AGAINST a shareholder proposal requesting that our Board appoint an independent Board chair.

**Voting** 

**Who Can Vote**

Only holders of record of our common stock at the close of business on February 27, 2026, the record date, will be entitled to notice

of and to vote at the meeting and any adjournment thereof. A list of shareholders entitled to vote at the Annual Meeting will be

available during the entire time of the Annual Meeting at the 2026 Annual Meeting Website. You may vote or submit questions during

the Annual Meeting by following the instructions available on the 2026 Annual Meeting Website during the Annual Meeting.

As of the record date, there were 23,299,555 shares of common stock outstanding and entitled to vote. Each share of common stock

outstanding is entitled to one vote. Our executive officers and directors hold or control 251,221 shares of common stock outstanding

representing approximately 1.1% of the votes available to be cast at the Annual Meeting.

**Quorum**

For a quorum to exist at the Annual Meeting, there must be represented, in person or by proxy, shares representing a majority of the

votes entitled to be cast at the meeting. Proxies that expressly abstain from voting on a particular proposal and broker non-votes will

be counted for purposes of determining whether a quorum exists at the Annual Meeting.

**"Shareholder of Record" and "Beneficial Ownership"**

If your shares are owned directly in your name in an account with our stock transfer agent, Broadridge, you are considered the

"shareholder of record" of those shares in your account. If your shares are held in an account with a broker, bank, or other nominee

as custodian on your behalf, you are considered a "beneficial shareholder" of those shares, which are held in street name. The

broker, bank, or other nominee is considered the shareholder of record for those shares. As the beneficial owner, you have the right

to instruct the broker, bank, or other nominee on how to vote the shares in your account. In order for your shares to be voted in the

way you would like, you must provide voting instructions to your broker, bank, or other nominee by the deadline provided in the proxy

materials you receive from your broker, bank, or other nominee. If you do not provide voting instructions to your broker, bank, or

other nominee, whether your shares can be voted on your behalf depends on the type of item being considered for vote. Under

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| Lithia Motors, Inc. 2026 Proxy Statement | 12: General Information | 76 |

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NYSE rules, brokers are permitted to exercise discretionary voting authority only on "routine" matters. Therefore, your broker may

vote on Proposal No. 3 ("Ratification of the appointment of KPMG LLP as our independent registered public accounting firm for

2026") even if you do not provide voting instructions because it is considered a routine matter. Your broker is not permitted to vote on

the other agenda items if you do not provide voting instructions because those items involve matters that are not considered routine.

For Proposal No. 1 (election of ten director nominees), Proposal No. 2 (advisory vote to approve the compensation of our named

executive officers), Proposal No. 4 (a shareholder proposal requesting that our Board appoint an independent Board chair, if properly

presented) if you do not provide voting instructions your shares will not be counted as votes cast for or against.

**To vote by proxy:**

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| | |
|:---|:---|
| **<u>Shareholder of Record</u>** | **<u>If you are a Beneficial Shareholder</u>** |
| Please promptly complete, sign, date, and return <br>the enclosed proxy card. You may also grant a <br>proxy by calling 1-800-690-6903 or via the <br>Internet by visiting www.proxyvote.com.<br>| Please vote your shares by following the instructions set <br>forth in the Notice provided by your broker, bank, trust, <br>or other holder of record. In most cases, you may be <br>permitted to submit your voting instructions by mail, by <br>telephone or via the Internet.<br>|

---

**How to Vote**

Whether you are a shareholder of record or a beneficial shareholder, you may direct how your shares are voted without

participating in the Annual Meeting. We encourage shareholders to vote well before the Annual Meeting, even if they plan to

attend the virtual meeting, by completing proxies online or by telephone (at 1-800-690-6903), or, if they received printed copies

of these materials, by mailing their proxy cards. Shareholders who attend the virtual Annual Meeting should follow the instructions

at www.proxyvote.com to vote or submit questions during the meeting. Voting online during the meeting will also replace any

previous votes.

**How You Can Revoke Your Proxy or Change Your Vote**

Shareholders of record may revoke their proxy at any time before the electronic polls close by submitting a later-dated vote online

during the Annual Meeting, via the Internet, by telephone, by mail, or by delivering instructions to our Corporate Secretary before the

Annual Meeting. Beneficial shareholders may revoke any prior voting instructions by contacting the broker, bank, or other nominee

that holds their shares or by voting online during the Annual Meeting. Any written notice revoking a proxy should be sent to Lithia

Motors, Inc., Attention: Corporate Secretary, 150 N. Bartlett Street, Medford, Oregon 97501.

**Participating in the Annual Meeting**

**Admission**

If you plan to participate in the Annual Meeting, please be aware that the Annual Meeting will be held virtually. There will be no

physical location for shareholders to attend. In addition, please note the requirements to attend the meeting virtually, as described

below. If you do not comply with the procedures described here for attending the Annual Meeting virtually, you will not be able to

participate in the Annual Meeting.

To attend virtually, vote at, and submit questions during, the Annual Meeting, visit www.virtualshareholdermeeting.com/LAD2026 and

enter the 16-digit control number included in your Notice of Internet Availability of Proxy Materials, voting instructions form, or proxy

card. Questions may be submitted in advance of the Annual Meeting by visiting www.virtualshareholdermeeting.com/LAD2026 and

entering your 16-digit control number. Further information regarding voting rights and the matters to be voted upon is presented in

this proxy statement.

Registered shareholders who have misplaced their original proxy materials listing their unique control number can find that

information by visiting www.shareholder.broadridge.com/bcis/ and selecting the option to create a profile in the top right- hand corner.

Additionally, if you have difficulty accessing the Annual Meeting through the 2026 Annual Meeting Website, a phone number will be

posted on the website to connect you to technical support.

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| Lithia Motors, Inc. 2026 Proxy Statement | 12: General Information | 77 |

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**Asking Questions**

Once online access to the Annual Meeting is open, shareholders may submit questions, if any, on

www.virtualshareholdermeeting.com/LAD2026. You will need your unique control number included on your proxy card (printed in the

box and marked by the arrow) or on the instructions that accompanied your proxy materials. Questions pertinent to meeting matters will

be answered during the meeting, subject to time constraints.

**Discretionary Authority** 

We do not know of any matters to be voted on by shareholders at the Annual Meeting other than those included in this proxy

statement. If any matter, other than those presented in this proxy statement, is properly presented at the meeting, your executed

proxy gives the Proxies discretionary authority to vote your shares in accordance with their best judgment with respect to the matter.

**Annual Meeting Voting Results**

Our inspector of elections will tabulate the vote at the Annual Meeting. We will provide voting results on our website and in a Current

Report on Form 8-K filed with the SEC.

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| Lithia Motors, Inc. 2026 Proxy Statement | 12: General Information | 78 |

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**Additional Information**

**Solicitation Expenses**

The Company is soliciting proxies for the Annual Meeting. All expenses associated with this solicitation, including the cost of

preparing, assembling and mailing the Notice, proxy statement, 2026 Annual Report to Shareholders, and form of proxy will be borne

by us. Our directors, officers and employees may communicate with shareholders by telephone, facsimile, email or personal contact

to solicit proxies. These individuals will not be specifically compensated for doing so. We will reimburse brokerage houses and other

custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for forwarding solicitation materials to the

beneficial owners of our common stock.

**Electronic Delivery of Proxy Materials**

Making the proxy materials available to shareholders via the Internet saves us the cost of printing and mailing documents and will

reduce the impact of the Annual Meeting on the environment. If you received only a Notice, you will not receive a printed copy of the

proxy materials unless you request it. All shareholders will have the ability to access the proxy materials on a website referred to in

the Notice or request to receive a printed set of the proxy materials at no charge. Instructions on how to access the proxy materials

on the internet or to request a printed copy may be found in the Notice. In addition, shareholders may request to receive proxy

materials in printed form by mail or electronically by email on an ongoing basis by following the instructions on the website referred

to in the Notice.

**Householding of Proxy Materials**

Shareholders of record who have the same address receive only one copy of the Notice Regarding the Availability of Proxy Materials

or the Proxy Statement and Annual Report on Form 10-K, as applicable, unless we receive contrary instructions from one or more of

the shareholders. This procedure reduces the Company's printing and mailing costs and the environmental impact of its annual

meetings. Shareholders who participate in householding continue to receive separate proxy forms. Householding does not affect

dividend check mailings.

Any shareholder who would prefer to have a separate copy of the Notice Regarding the Availability of Proxy Materials, Proxy

Statement or Annual Report on Form 10-K delivered to him or her at the shared address for this and future years may elect to do so

by calling (877) 331-3084 or by writing to Edward Impert, our Secretary, at 150 N. Bartlett Street, Medford, Oregon 97501. A copy of

the materials will be sent promptly to the shareholder following receipt of a written or oral request by a shareholder to receive a copy

of the Notice Regarding the Availability of Proxy Materials, the Proxy Statement or Annual Report on Form 10-K. The foregoing

contact information can also be used by shareholders sharing an address to request delivery of a single copy of the Notice

Regarding the Availability of Proxy Materials, the Proxy Statement or Annual Report on Form 10-K if they are receiving multiple

copies of any of those documents.

**Annual Report on Form 10-K**

We will provide, without charge, a copy of our Annual Report on Form 10-K as filed with the SEC. Written requests should be mailed

to the attention of Investor Relations, Lithia Motors, Inc., 150 N. Bartlett Street, Medford, Oregon 97501. You may also find our Form

10-K on our website at www.lithiamotors.com.

**Other Materials**

All materials filed by us with the SEC may be obtained through the SEC's website at www.sec.gov.

**Communications with the Board**

Our Board has adopted a Shareholder Communication Policy to promote efficient shareholder and interested party communications

with our Board and management. Our Investor Relations Department is responsible for receiving and routing all shareholder and

interested party communications. Corporate governance issues are the responsibility of the Nominating and Governance Committee.

Our Audit Committee handles concerns or allegations regarding possible violations of accounting or financial reporting matters.

Management is the more appropriate group for handling all other matters and we encourage you to contact them accordingly.

All correspondence with our Board or its members must be in writing, directed to the attention of either our Board of Directors or an

individual director and delivered to: Investor Relations Department, Lithia Motors, Inc., 150 N. Bartlett Street, Medford, Oregon

97501. The Investor Relations Department will review communications to our Board or individual directors and direct the

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| Lithia Motors, Inc. 2026 Proxy Statement | 12: General Information | 79 |

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communication to the named Board member if the communication relates to important Company policies, or to management, if the

matter is better addressed by management. The Investor Relations Department copies the Lead Independent Director and our

General Counsel on all communications. A complete copy of our Shareholder Communication Policy is available on our website at

<u>investors.lithiadriveway.com</u> and interested persons may obtain a written copy from the Investor Relations Department.

**2026 Shareholder Proposals or Nominations**

**Shareholder Proposals**

SEC rules require that any shareholder proposal to be included in our proxy materials for consideration at next year's annual

meeting be received by us at our principal executive office no later than November 11, 2026 (120 days prior to the anniversary

of the mailing of the prior year's Notice of Internet Availability). Shareholders who wish to nominate one or more director candidates

for election to the Board to be included in our proxy materials for consideration at next year's annual meeting must do so in

accordance with our Bylaws, which require that notice of such a nomination be delivered to our Secretary at our principal executive

offices no earlier than October 12, 2026 and no later than November 11, 2026 (no earlier than 150 days and no later than 120 days

prior to the anniversary of the mailing of the prior year's proxy materials), and must include the information required by our Bylaws.

Shareholders who otherwise wish to present proposals for action at next year's annual meeting must do so in accordance with our

Bylaws, which require shareholders to give us advance written notice of a director nomination or other business to be conducted at

any meeting of shareholders. To be timely, the written notice for next year's annual meeting must be received by our Secretary

between December 31, 2026 and January 30, 2027 (at least 90 days, and no earlier than 120 days, before the first anniversary of

our preceding year's annual meeting) and must include the information required by our Bylaws. Our mailing address is 150 N.

Bartlett Street, Medford, Oregon 97501.

**Shareholder Director Recommendations** 

The Nominating and Governance Committee will consider potential director nominees recommended by any record or beneficial

shareholder. Shareholders may recommend individuals to the Nominating and Governance Committee for consideration as potential

director nominees by submitting a written recommendation to the Chairman of the Nominating and Governance Committee in

accordance with our Shareholder Communication Policy. To be considered for nomination to the following year's Board, the written

recommendation must be received at our principal executive office at 150 N. Bartlett Street, Medford, Oregon 97501. In addition to

the requirements under our Bylaws with respect to advance notice of any nomination, a shareholder who intends to solicit proxies for

a director nominee in accordance with the SEC's universal proxy rule must comply with the additional requirements of Rule

14a-19(b).

The written recommendation of a director nominee must include the candidate's name, appropriate biographical information,

including information about the candidate's qualifications and background materials, a statement that the person submitting the

recommendation is a shareholder entitled to vote in the election of directors and a consent to serve as director signed by the

recommended individual. If the necessary information is received in a timely manner and the shareholder and recommended

individual timely cooperates with our due diligence and other processes, the Nominating and Governance Committee will evaluate

the shareholder-recommended candidate using substantially the same process, and applying substantially the same criteria, as it

uses to evaluate all other candidates. For information regarding minimum qualifications for directors and specific qualities and skills

that the Nominating and Governance Committee believes are necessary for our directors to possess, see "<u>[Director Qualifications](#ic4b68f9df5f645149bb3535a26afa3af_34)</u>

<u>[and Nominations](#ic4b68f9df5f645149bb3535a26afa3af_34)</u>" above. Recommended candidates are submitted to our Board to be considered as director nominees. If our Board

determines to nominate a shareholder-recommended candidate, the candidate's name will be included in our proxy and on the ballot

at our annual meeting of shareholders.

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|:---|:---|:---|
| Lithia Motors, Inc. 2026 Proxy Statement | 13: Certain Relationships and Related Transactions and Director Independence | 80 |

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**13**

**Certain Relationships and Related** 

**Transactions and Director Independence**

The Audit Committee, or another appropriate independent committee, and, where appropriate, our Board of Directors review all

transactions between us and any related person, which includes, all of our nominees for director, directors and executive officers and

their immediate family members and all persons known to us to be the beneficial owner of more than five percent of our voting

securities and their immediate family members, that exceed $120,000 and in which the related person has a direct or indirect

material interest. Although we do not maintain a written policy or have written procedures for such review, our Code of Business

Conduct and Ethics imposes an obligation on each of our directors and senior executive officers to disclose any actual or apparent

conflict of interest involving such person and Lithia. Further, each of our directors and NEOs signs a detailed questionnaire used in

the preparation of this proxy statement that requires the disclosure of, among other things, any related-person transaction. The Audit

Committee or other independent committee and our Board review and determine whether to approve or disapprove such

transactions in accordance with the Code of Business Conduct and Ethics, based on (i) whether the proposed transaction is on

terms that are no less favorable to us than the terms generally made available by us to an unaffiliated third party under similar

circumstances and (ii) the extent of the related party's interest in the proposed transaction.

Sidney B. DeBoer is the father of Bryan B. DeBoer, who is a Director and our Chief Executive Officer, and Mark DeBoer, who is the

Company's Vice President of Real Estate. There are no other family relationships between our executive officers and directors.

On September 14, 2015, the Company entered into a Transition Agreement with Sidney B. DeBoer, the Chairman of the Company, to

reflect Mr. DeBoer's changing role at the Company. Under the agreement, effective December 31, 2015, Mr. DeBoer ceased to be an

executive officer of the Company, and the Company ceased paying Mr. DeBoer a base salary and contributing to his account under

the Company's Executive Management Non-Qualified Deferred Compensation and SERP. Mr. DeBoer also ceased to be eligible to

participate in performance-based compensation arrangements, including under the Company's Short-Term Incentive Plan and under

its Stock Incentive Plan. Under the Transition Agreement the Company pays Mr. DeBoer annual amounts for his prior services

rendered as an employee of the Company equal to $1,050,000 and a $42,000 vehicle allowance, and the Company reimburses Mr.

DeBoer for amounts payable under the four split-dollar insurance policies described below in this section. A Special Meeting of

Shareholders was held on January 21, 2019, where 99.95% of voting shareholders agreed that adding a sunset to the Transition

Agreement was in the best interests of the shareholders. Under the amendment to the Transition Agreement that adds the sunset,

the Transition Agreement ends on the earlier of Mr. DeBoer's death or December 31, 2035.

The Company entered into a Director Service Agreement, effective January 1, 2016, with Sidney B. DeBoer. Under the agreement,

for so long as Mr. DeBoer serves as a member of the Board, the Company will pay him the same compensation, in the same form

(cash or equity), as the Company pays to its non-employee directors (as that amount is established by the Board from time to time).

Sidney B. DeBoer was permitted to utilize the Company's access to FlexJet's corporate aircraft service for personal travel provided

he reimburses all flight related and incremental costs to the Company, including FlexJet's hourly rate for each flight.

We maintain four split-dollar "whole-life" insurance policies covering Sidney B. DeBoer, each worth $3,727,600 on maturity and

Mr. DeBoer has the right to designate the beneficiary or beneficiaries of the death benefit of each policy. Lithia owns and pays the

premium for each of the four policies, and pursuant to the amended Transition Agreement described above, Lithia will continue to

pay the premiums for each of the four policies until the earlier of Mr. DeBoer's death or December 31, 2035. Lithia will receive the

greater of the cash surrender value or cumulative premiums paid at the maturity of each policy.

In 2025, Mark DeBoer, son of Sid DeBoer and brother of Bryan DeBoer, received a salary of $360,000, incentive compensation of

$320,000 and other compensatory arrangements totaling $12,921.

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| Lithia Motors, Inc. 2026 Proxy Statement | 13: Certain Relationships and Related Transactions and Director Independence | 81 |

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Mr. Bailey has served as President of SOU since January 2022. In 2025 and so far in 2026, the Company has donated

approximately $949,999 and $0, respectively, to the Southern Oregon University Foundation, which is affiliated with SOU and has a

mission of securing private philanthropic contributions to advance SOU. These donations are part of a 10-year commitment of

support to SOU made by the Company in July 2022 that demonstrates the Company's longtime relationship with SOU.

**DELINQUENT SECTION 16(a) REPORTS**

Section 16(a) of the Exchange Act requires our directors, executive officers, and beneficial owners of more than 10% of our common

stock to file reports with the SEC indicating their holdings of, and transactions in, Lithia's equity securities. Based solely on a review

of copies of these reports, we believe that all of our executive officers, directors, and 10% owners timely complied with all Section

16(a) filing requirements for fiscal 2025 except for the following: on May 14, 2025, an amended Form 4 was filed for Mr. Sidney

DeBoer to correct a Form 4 originally filed on August 23, 2024 to report an additional transaction that was inadvertently omitted from

the original filing due to an administrative error; on October 10, 2025 a late Form 4 reporting one transaction was filed for Richard

Bailey Jr. as a result of a delay in receiving Mr. Bailey's new EDGAR filing codes from the SEC; and on November 4, 2025, a late

Form 3 was filed by Abrams Capital Management, L.P., Abrams Capital Management, LLC and David Abrams.

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