Form 4: CarMax EVP & CFO Enrique Mayor-Mora Acquires Shares Through Performance Stock Unit Awards

Enrique N. Mayor-Mora, EVP & CFO of CarMax, acquired 1,454 shares of common stock on April 10, 2024, through the vesting of performance stock units.

Summary

• On April 10, 2024, Enrique N. Mayor-Mora, the EVP & CFO of CarMax, acquired 1,454 shares of CarMax common stock.
• The acquisition was a result of the vesting of performance stock units (PSUs) awarded in previous years.
• Specifically, the shares were earned from PSU awards granted on May 3, 2021 (301 shares), May 2, 2022 (503 shares), and May 1, 2023 (650 shares).
• The Compensation Committee certified the performance goals for each of these years, leading to the vesting of the PSUs.
• Following the transaction, Mayor-Mora directly owns 19,006 shares of CarMax common stock.

Sentiment

Score: 7

Explanation: The document indicates that performance goals were met, leading to the vesting of PSUs, which is generally a positive sign. The executive's increased ownership aligns interests with shareholders.

Positives

• The vesting of performance stock units suggests that the company met certain performance goals set by the Compensation Committee.
• The acquisition of shares by a high-ranking executive could be interpreted as a sign of confidence in the company's future performance.

Industry Context

Executive stock ownership is a common practice in publicly traded companies to align management's interests with those of shareholders. The vesting of PSUs is tied to the achievement of specific performance goals, incentivizing executives to drive company performance.

Comparison to Industry Standards

• Executive compensation packages, including performance-based equity awards, are standard practice among publicly traded companies like CarMax.
• Companies such as AutoNation (AN), Group 1 Automotive (GPI), and Penske Automotive Group (PAG) also utilize similar compensation structures to incentivize their executives.
• The specific metrics used for performance stock units vary by company but often include revenue growth, profitability, and return on invested capital.

Stakeholder Impact

• The vesting of performance stock units and subsequent stock acquisition by the CFO could positively influence shareholder sentiment.
• It demonstrates that management is incentivized to achieve company goals, which benefits shareholders.

Key Dates