Shamim Mohammad
Executive Vice President and Chief Information and Technology Officer at KMX
Executive
About Shamim Mohammad
Executive Vice President and Chief Information and Technology Officer at CarMax since 2021; joined CarMax in 2012 and leads digital innovation, product engineering, AI/ML, and re-platforming efforts across the enterprise . Education: MBA (Kellogg, Northwestern) and BS in Computer Science (Angelo State); registered CPA (Illinois) . Recognitions include MIT Sloan CIO Leadership Award (2020), Forbes Top 50 CIO (2021), CIO Hall of Fame (2024) . Company performance context (FY2021–FY2025): Net Income $747M → $1,151M → $485M → $479M → $501M; Adjusted EBIT $1,050M → $1,584M → $749M → $766M → $795M; cumulative TSR value of an initial $100 investment at $94.99 vs S&P 500 Retailing peer group $222.34 by FY2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| BJ’s Wholesale Club | Vice President, Information & Technology | Prior to 2012 | Built e-commerce, transformed supply chain/distribution, advanced data science |
| TravelCLICK (marketing tech/data analytics) | Senior technology leader; fifth employee | Prior to 2012; company sold in 2018 | Created BI and interactive digital media products used by thousands of hotels |
| Blockbuster | Sr. Director of Information Technology | 2002–2006 (approx.) | Senior IT leadership contributing to retail systems modernization |
| Comac Systems; Wyndham Hotels & Resorts | Technology leadership roles | Prior to 2012 | Early career roles across travel/hospitality technology |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| United Natural Foods, Inc. (UNFI) | Director | Current | Fortune 150; largest distributor of organic/natural foods in North America |
| RVA757 Connects | Board of Directors | Joined 2023 | Regional innovation/economic development board |
Fixed Compensation
| Metric | FY2024 | FY2025 |
|---|---|---|
| Base Salary ($) | 604,037 | 625,447 |
| Target Bonus % of Salary | 85% (EVPs increased from 85% to 95% for FY2025) | 95% |
| Actual Annual Incentive Bonus ($) | 342,986 | 950,820 |
Multi-Year Compensation (Named Executive Officer)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Salary ($) | 590,143 | 604,037 | 625,447 |
| Stock Awards ($) | 214,629 | 275,859 | 1,034,019 |
| Option Awards ($) | 1,084,933 | 1,084,935 | 799,999 |
| Non-Equity Incentive Plan Compensation ($) | 244,231 | 342,986 | 950,820 |
| All Other Compensation ($) | 110,185 | 86,635 | 87,919 |
| Total ($) | 2,244,121 | 2,394,452 | 3,498,204 |
Performance Compensation
| Metric | Weight | Target | Actual | Payout Determination | Vesting/Notes |
|---|---|---|---|---|---|
| EBIT (company-wide) | 50% | $751M | $795M | 100% of tranche; plus bonus multiplier framework (163.2% multiplier applied to overall factor) | Annual bonus FY2025 |
| Market Share (age 0–10 used vehicles, CY2024) | 15% | 3.85% CY2024 OR 4.00% Q4 CY2024 | 3.7% estimate | 86% of tranche (13 percentage points) | Annual bonus FY2025 |
| Operational Execution (retail/supply/credit) | 25% | Retail tools scaled; auction run list modernization; full-spectrum credit and funding | Achieved all sub-metrics | 100% of tranche (25 percentage points) | Annual bonus FY2025 |
| Environmental & Social Objectives | 10% | ≥50% GHG reduction vs 2018 by end 2025; ≥90% associate inclusion training completion | Achieved both | 100% of tranche (10 percentage points) | Annual bonus FY2025 |
| Annual Incentive Performance Adjustment Factor | — | — | — | 98% goal achievement × 163.2% multiplier = 159.9% performance factor | Applied to bonus payouts FY2025 |
| PSUs (FY2025 grants) | 3-year | Threshold 50%; Target 100%; Max 200% multiplier (cumulative pre-tax income) | Performance over FY2025–FY2027 | Shares earned 0–200% of target based on 3-year goal | Vest on May 1, 2027 |
| PSU tranches (prior awards evaluated in FY2025) | 1-year portions | FY2025 pre-tax income thresholds: $574M / $645M / $716M | Actual adjusted pre-tax income $687M | 159% multiplier for FY2023 Y3 and FY2024 Y2 PSUs | Y3 (FY2023) vests May 3, 2025; Y2 (FY2024) vests May 1, 2026 |
Equity Awards Detail (FY2025 Grants)
| Award Type | Grant Date | Approval Date | Target Units/Shares | Threshold | Maximum | Strike Price | Expiration | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|---|---|---|
| PSUs (FY2025 cycle) | 5/7/2024 | 3/27/2024 | 11,903 | 5,952 | 23,806 | — | — | 824,045 |
| PSUs (FY2024 cycle – tranche set in FY2025) | 5/7/2024 | 3/31/2023 | 1,710 | 855 | 3,420 | — | — | 118,383 |
| PSUs (FY2023 cycle – tranche set in FY2025) | 5/7/2024 | 3/28/2022 | 1,323 | 662 | 2,646 | — | — | 91,591 |
| Stock Options | 5/1/2024 | 3/27/2024 | 27,416 | — | — | $67.21 | 5/1/2031 | 799,999 |
Vesting schedules: Options vest 25% annually over 4 years; 7-year term . FY2023 PSUs vest 5/3/2025; FY2024 PSUs vest 5/1/2026; FY2025 PSUs vest 5/1/2027 .
Outstanding Equity (as of FY2025 year-end)
| Grant | Exercisable Options (#) | Unexercisable Options (#) | Exercise Price ($) | Expiration Date |
|---|---|---|---|---|
| 5/1/2019 | 40,542 | — | 78.61 | 5/1/2026 |
| 5/1/2020 | 39,592 | — | 71.07 | 5/1/2027 |
| 5/3/2021 | 19,223 | 6,407 | 136.94 | 5/3/2028 |
| 5/2/2022 | 16,281 | 16,280 | 91.14 | 5/2/2029 |
| 5/1/2023 | 9,321 | 27,962 | 70.48 | 5/1/2030 |
| 5/1/2024 | — | 27,416 | 67.21 | 5/1/2031 |
| PSU/MSU Awards | Unvested Shares (#) | Payout/Market Value Basis |
|---|---|---|
| PSUs (5/2/2022) | 2,660 unvested shares; $220,700 market value | Market value based on $82.97 close; PSU multiplier assumptions per footnote |
| PSUs (5/1/2023) | 1,711 unearned shares | Year-one 38% and year-two 159% multipliers applied proportionally; remaining third at 100% pending |
| PSUs (5/1/2024) | 23,806 unearned shares | Assumed 200% multiplier for value illustration at FY end |
| Realized Activity (FY2025) | Quantity | Value |
|---|---|---|
| Options exercised | 47,845 shares | $948,742 |
| PSUs vested | 2,130 shares | $146,352 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (3/31/2025) | 168,873 shares; plus 158,341 shares acquirable within 60 days via options/settlements; <1% of class |
| Executive ownership guidelines | EVP requirement: 3× base salary or 100,000 shares; all current NEOs met guidelines as of 2/28/2025 |
| Hedging/pledging | Prohibited for all associates and directors |
| Insider trading policy | Adopted; governs trading, aligns with NYSE standards |
| Clawback policy | Adopted Oct 2023; 3-year lookback for restatements per Rule 10D-1; applies to current/former executive officers |
Employment Terms
| Provision | Details |
|---|---|
| Severance (post-2014 execs) | Severance equals then-current bi-weekly salary for 39 bi-weekly periods; no bonus component in standard termination scenarios |
| CIC severance (double-trigger) | Payment only if termination for Good Reason or without cause within 2 years post-CIC; for post-2014 execs equals 39 bi-weekly salary periods |
| Non-compete | 2 years post-termination |
| Non-solicit | 2 years post-termination |
| Confidentiality | Ongoing obligation; safeguard trade secrets |
| COBRA health benefit | Not provided to post-2014 group; only CEO receives partial reimbursement |
| Outplacement, financial planning | Not provided to post-2014 group; CEO receives up to $50,000 outplacement; $16,335 financial planning for certain scenarios |
| Estimated Payments (as of 2/28/2025) | Termination Without Cause | Resignation for Good Reason | Early/Normal Retirement | Death/Disability | CIC + Qualifying Termination |
|---|---|---|---|---|---|
| Severance Payment ($) | 938,897 | — | — | — | 938,897 |
| Long-Term Equity ($) | 881,384 | 881,384 | 3,398,693 | 2,523,857 | 881,384 |
| Financial Services ($) | 16,335 | 16,335 | 16,335 | 16,335 | 16,335 |
| Total ($) | 1,836,616 | 897,719 | 3,415,028 | 2,540,192 | 1,836,616 |
Deferred Compensation and Benefits
| Plan | Executive Contributions ($) | Company Contributions ($) | Aggregate Earnings ($) | Aggregate Balance ($) |
|---|---|---|---|---|
| Retirement Restoration Plan (RRP) | 26,935 | 23,087 | 102,969 | 882,072 |
| Executive Deferred Compensation Plan (EDCP) | 233,806 | 14,028 | 191,517 | 2,027,619 |
| Pension Plan / Benefit Restoration Plan | Not applicable (plans frozen; no benefits) | — | — | — |
Compensation Peer Group (Benchmarking Context)
Peer group used for FY2025 compensation assessment includes: Advance Auto Parts; AutoNation; AutoZone; Best Buy; Dick’s Sporting Goods; Dollar General; Dollar Tree; eBay; The Gap; Genuine Parts; Kohl’s; Lowe’s; Macy’s; Ross Stores; The Sherwin-Williams Company; Target; The TJX Companies; Tractor Supply . Note: eBay removed from peer group for FY2026+ due to CEO’s board membership .
Say-on-Pay & Shareholder Feedback
Say-on-pay approval: ~71% in 2023, then ~90% in 2024 following program changes (return to 3-year PSUs, diversified metrics, 50/50 PSU/options mix) . Committee continued shareholder outreach and aligned incentives to Adjusted EBIT and pre-tax income goals .
Performance & Track Record (Company-level context during tenure)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Net Income ($ Millions) | 747 | 1,151 | 485 | 479 | 501 |
| Adjusted EBIT ($ Millions) | 1,050 | 1,584 | 749 | 766 | 795 |
| TSR – $100 initial investment (Company) | 136.88 | 125.22 | 79.07 | 90.48 | 94.99 |
| TSR – $100 initial investment (Peer Group Index) | 147.99 | 158.40 | 124.47 | 192.01 | 222.34 |
Risk Indicators & Red Flags
- Clawback policy adopted (Oct 2023) with 3-year lookback for restatements; severance agreements conformed to policy .
- Prohibitions on hedging, pledging, and margin accounts for executives and directors .
- No related person transactions disclosed for fiscal 2025 .
- No tax gross-ups provided on perquisites; no stock option repricing; double-trigger for CIC benefits .
Additional Biographical Notes
- CarMax executive since 2012; promoted to EVP/CITO in 2021 .
- Background: born in Dhaka, Bangladesh; US resident since youth; career across startups and Fortune 500 in retail, travel, hospitality, finance, technology .
- Recognized thought leader cited in HBR, MIT Sloan Review, Forbes, WSJ .
Investment Implications
- Alignment and retention: Meets stringent stock ownership guidelines (≥100,000 shares or 3× salary); hedging/pledging prohibited; clawback in place—reduces misalignment risk and supports long-term orientation .
- Incentive levers: Annual bonus heavily linked to EBIT (50%) with operational, market share, and ESG goals; PSUs tied to multi-year cumulative pre-tax income—directly ties pay to profitability and execution, potentially increasing sensitivity to margin expansion and unit growth .
- Selling pressure/vesting overhang: FY2025 option exercises (47,845 shares; $948,742 value) plus significant unexercisable options and PSU grants vesting through 2027 may create periodic supply but also indicate realized value aligned with performance; vesting cadence: PSUs in 2025/2026/2027 and options through 2031 .
- Change-of-control economics: Double-trigger with salary-only severance (39 bi-weekly periods) and limited ancillary benefits—muted takeover-related windfalls for post-2014 execs; suggests lower CIC-related governance risk compared to legacy CEO terms .