STOCK TITAN

CarMax (NYSE: KMX) details exit and consulting deal for EVP Diane Cafritz

(Moderate)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

CarMax, Inc. announced that Executive Vice President and Chief Innovation and People Officer Diane Cafritz will leave the company effective December 31, 2026. Under Section 7.3 of her Severance Agreement, she is eligible for a cash payment equal to 1.5 times the sum of her annual base salary and target annual bonus. An amendment to this agreement removes the target bonus component from that 1.5x calculation and instead makes her eligible to receive her full-year actual fiscal 2027 annual bonus under the company’s Annual Performance-Based Bonus Plan.

CarMax and Ms. Cafritz also entered into a Consulting Agreement under which she will provide services from January 1, 2027 through June 30, 2027. In return, she will receive compensation equal to half of her current annual base salary, totaling $360,500 for the six-month term. The agreement also extends by six months the existing non-solicitation and non-competition covenants, so they will run for two and a half years from her departure date. The amendment to the Severance Agreement and the Consulting Agreement are filed as Exhibits 10.1 and 10.2.

Positive

  • None.

Negative

  • None.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Departure effective date December 31, 2026 Date Diane Cafritz will leave her role as EVP and Chief Innovation and People Officer
Severance multiple 1.5 times Cash severance equal to 1.5 times annual base salary plus target annual bonus under Section 7.3 before amendment
Consulting compensation $360,500 Aggregate amount payable for six months of consulting services, equal to half of current annual base salary
Consulting term January 1, 2027 to June 30, 2027 Period during which Diane Cafritz will provide consulting services to CarMax
Restrictive covenant duration two and a half years Non-solicitation and non-competition covenants run two and a half years from departure effective date
Severance Agreement financial
"benefits, as revised as noted below, provided under Section 7.3 of her previously filed severance agreement"
Annual Performance-Based Bonus Plan financial
"full-year actual fiscal year 2027 annual bonus as determined in accordance with the Company’s Annual Performance-Based Bonus Plan"
consulting agreement financial
"the Company and Ms. Cafritz entered into a consulting agreement (the “Consulting Agreement”)"
non-solicitation regulatory
"extends by an additional six months the terms of the non-solicitation and non-competition covenants"
A non-solicitation clause is a contractual promise that one party will not actively try to lure away another party’s employees, customers, or suppliers. For investors, it signals protection of a company’s workforce and client base after a deal or partnership—reducing the risk that key staff or revenue sources will be poached and therefore helping preserve the business’s value, predictability, and post-transaction earnings. Think of it as an agreement not to knock on a neighbor’s door to take their business or team.
non-competition covenants regulatory
"extends by an additional six months the terms of the non-solicitation and non-competition covenants"

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Learn about SEC filing dates

FAQ

What executive change did CarMax (KMX) disclose for Diane Cafritz?

CarMax disclosed that Diane Cafritz, Executive Vice President and Chief Innovation and People Officer, will leave the company effective December 31, 2026. Her departure is accompanied by an amended severance arrangement and a separate six-month consulting agreement starting in 2027.

How is Diane Cafritz’s severance calculated under her CarMax (KMX) agreement?

Section 7.3 provides Ms. Cafritz a cash severance equal to 1.5 times the sum of her annual base salary and target annual bonus. An amendment removes the target bonus from this 1.5x formula and instead grants eligibility for her full-year actual fiscal 2027 bonus.

What are the key terms of Diane Cafritz’s consulting agreement with CarMax (KMX)?

Ms. Cafritz will provide consulting services from January 1, 2027 to June 30, 2027. For this six-month period, CarMax will pay her an amount equal to half of her current annual base salary, totaling $360,500, subject to the agreement’s standard termination provisions.

How long will non-compete and non-solicitation covenants apply to Diane Cafritz at CarMax (KMX)?

The Consulting Agreement extends the existing non-solicitation and non-competition covenants by an additional six months. These restrictions will now expire two and a half years from the effective date of Ms. Cafritz’s departure on December 31, 2026.
0001170010false00011700102026-07-292026-07-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

July 29, 2026
Date of Report (date of earliest event reported)

CARMAX, INC.
(Exact name of registrant as specified in its charter)
Virginia
1-31420
54-1821055
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
12800 Tuckahoe Creek Parkway
23238
Richmond,
Virginia
(Address of Principal Executive Offices)
(Zip Code)
(804) 747-0422
Registrant's telephone number, including area code

Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockKMXNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On July 31, 2026, CarMax, Inc. (the “Company”) announced that Diane Cafritz, the Company’s Executive Vice President and Chief Innovation and People Officer, will be leaving the Company effective December 31, 2026. Ms. Cafritz is eligible to receive the benefits, as revised as noted below, provided under Section 7.3 of her previously filed severance agreement with the Company, as amended and restated effective March 1, 2026, and filed as Exhibit 10.1 to CarMax’s Current Report on Form 8-K, filed March 2, 2026 (the “Severance Agreement”) (File No. 1-31420). Under Section 7.3 of the Severance Agreement, Ms. Cafritz is eligible to receive an amount equal to the product of one-and-a-half (1.5) and the sum of (x) her annual base salary and (y) the target annual bonus amount. In connection with Ms. Cafritz’s departure, the Company and Ms. Cafritz entered into an amendment to the Severance Agreement (the “Amendment”), pursuant to which Section 7.3 of the Severance Agreement has been modified to remove subpart (y) from the foregoing calculation. In its place, Ms. Cafritz will be eligible to receive her full-year actual fiscal year 2027 annual bonus as determined in accordance with the Company’s Annual Performance-Based Bonus Plan.

In connection with Ms. Cafritz’s departure, the Company and Ms. Cafritz entered into a consulting agreement (the “Consulting Agreement”), pursuant to which Ms. Cafritz will provide consulting services to the Company. Among other things, the Consulting Agreement extends by an additional six months the terms of the non-solicitation and non-competition covenants in the Severance Agreement, which will expire two and a half years from the effective date of her departure. In consideration of Ms. Cafritz’s consulting services during the six-month consulting period, the Company will pay Ms. Cafritz an amount equal to half of her current annual base salary, which amount in the aggregate will total $360,500. The term of the Consulting Agreement shall commence on January 1, 2027 and shall end on June 30, 2027, unless terminated earlier in accordance with the terms of the Consulting Agreement.

The foregoing descriptions of the Amendment and the Consulting Agreement do not purport to be complete and are qualified in their entirety by reference to the full texts of the Amendment and the Consulting Agreement, copies of which are attached hereto as Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated herein by reference.


Item 9.01Financial Statements and Exhibits.
(d) Exhibits


Exhibit No.
10.1
Amendment to the Amended and Restated Severance Agreement, dated July 29, 2026, by and between CarMax, Inc. and Diane L. Cafritz



10.2
Consulting Agreement, effective January 1, 2027, by and between CarMax, Inc. and Diane L. Cafritz
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


CARMAX, INC.
(Registrant)
Dated: July 31, 2026By: /s/ John M. Stuckey, III
John M. Stuckey, III
Senior Vice President, General Counsel
and Corporate Secretary


Filing Exhibits & Attachments

6 documents