Ferguson Enterprises Inc. /DE/

Our transition period executive compensation program consists of the following elements:

•base salary;

•short-term incentive awards linked to our overall performance during the transition period;

•grants of long-term, equity-based compensation, such as performance and restricted stock units and stock option awards;

•other executive benefits and perquisites; and

•employment agreements and change in control policy.

The Compensation Committee evaluates base salary, target short-term and long-term award opportunities and other plan design elements for our Executive Officers as discussed below. Differences in total compensation generally reflect the Executive Officer’s role, relevant experience, expertise, tenure and performance of the individual Executive Officer within their role.