Fastenal Co

1. 1

   Election of Directors

   ManagementBoard: FOR

   Elect a board of directors consisting of 11 members to serve until the next regular meeting of shareholders and until their successors have been duly elected and qualified.

2. 2

   Ratification of Appointment of Independent Registered Public Accounting Firm

   ManagementBoard: FOR

   Ratify the appointment of PricewaterhouseCoopers LLP as Fastenal's independent registered public accounting firm for the year ending December 31, 2026.

3. 3

   Advisory Vote to Approve Executive Compensation (Say-on-Pay

   ManagementBoard: FOR

   Non-binding, advisory vote to approve the compensation of Fastenal's named executive officers as disclosed in the Compensation Discussion and Analysis, compensation tables, and related disclosures in this proxy statement.

   More detail

   This proposal asks shareholders to cast a non-binding advisory vote to approve the compensation paid to Fastenal’s named executive officers as described in the proxy statement. Management seeks this advisory endorsement to validate its compensation philosophy and practices—emphasizing simple, transparent pay structures with below‑median base salaries, substantial performance‑based quarterly cash incentives tied to pre‑tax (and for the CFO, net) income growth, and long‑term retention-focused stock options. The board and compensation committee frame the program as aligned with shareholder interests by tying pay to company profitability, using frequent payouts to provide immediate feedback, and employing long vesting for equity to promote long‑term orientation. The advisory vote is non‑binding but the board will consider the result when setting future compensation; management highlights that ~94% of votes supported prior say‑on‑pay in 2025 as context supporting continuity. Key governance context includes the company’s pay‑for‑performance culture, absence of employment or change‑in‑control agreements, and recent adoption of a recoupment/forfeiture policy to address erroneous awards. Potential investor concerns include the reliance on pre‑tax income as the primary metric (rather than multi‑metric scorecards), relatively large discretionary equity grants, and the advisory (not binding) nature of the vote which limits direct shareholder control. For sophisticated assessment, one should weigh the mechanics (quarterly incentives and ROA plan), historical alignment of compensation outcomes with TSR and earnings, and the company’s justification that simplicity and immediate payouts reduce risk‑taking incentives. The board’s recommendation and past strong shareholder support suggest management expects continued endorsement; however, investors focused on broader ESG or governance reforms may press for enhanced disclosure of goal‑setting and pay‑out sensitivities.

4. 4

   Approval of the Fastenal Company Employee Restricted Stock Unit Plan

   ManagementBoard: FOR

   Seek shareholder approval to adopt the Fastenal Company Employee Restricted Stock Unit Plan, authorizing up to 7,500,000 shares for RSU awards to employees, to motivate ownership, retention, and long‑term performance and to satisfy Nasdaq shareholder‑approval requirements.

   More detail

   This management proposal requests shareholder approval of a new Employee Restricted Stock Unit (RSU) Plan that would make up to 7,500,000 shares available for RSU awards to Fastenal employees, subject to adjustment and customary terms. Management argues RSUs will further motivate employees, facilitate ownership, and improve retention and long‑term alignment between employees and shareholders; it also needs shareholder approval to satisfy Nasdaq listing rules. The plan’s design includes investor‑friendly governance features: no liberal share recycling for tax withholding, a one‑year minimum vesting or performance period (with limited exceptions), no evergreen provision, explicit clawback/recoupment language, and limits on dividend equivalents. Settlement can be in shares or cash (with Canadian participants limited to share settlement), and the board-administered plan allows both time‑based and performance‑based RSUs with discretionary grant authority. From a governance and dilution perspective, management indicates the new reserve would increase overhang from approximately 2% to about 3% if both employee and director RSU plans are approved, and expects the employee pool to be sufficient for roughly five years of grants. The board’s stated rationale emphasizes retention and competitive long‑term incentives; analysts should evaluate the expected grant cadence, dilution trajectory, vesting schedules, and interaction with existing stock option programs when assessing shareholder value impact. Approval would give management flexibility to deliver RSUs while retaining existing option programs; the plan’s safeguards reduce some shareholder concerns, but investors should monitor grant practices, pay levels, and performance condition calibrations post‑approval.

5. 5

   Approval of the Fastenal Company Non‑Employee Director Stock and Restricted Stock Unit Plan

   ManagementBoard: FOR

   Seek shareholder approval to adopt the Non‑Employee Director Stock and Restricted Stock Unit Plan to permit annual equity awards and permit non‑employee directors to elect to receive vested shares in lieu of cash retainer, authorizing up to 1,000,000 shares.

   More detail

   This management proposal requests shareholder approval of a Director RSU Plan authorizing 1,000,000 shares for awards to non‑employee directors and permitting directors to elect to receive fully vested shares in lieu of some or all of their annual cash retainer. Management presents the plan as a tool to better align director incentives with shareholder interests and to provide flexibility in non‑employee director compensation, while noting the plan will not replace the existing non‑employee director option plan but will operate alongside it. The Director RSU Plan contains governance safeguards: an annual per‑director award maximum (calculated by dollar value, $250,000 per director), no liberal share recycling, no evergreen, no excise‑tax gross‑ups, limits on dividend equivalents until vesting, and restrictions on change‑in‑control definitions. The company represents the reserve as sufficient for roughly ten years of director awards and indicates the incremental dilution from approving both RSU plans would increase overhang by ~1 percentage point to about 3%. Analysts should assess the practical effect on board independence and alignment given that elected shares are fully vested upon grant (so immediate ownership is provided) and that elections to convert cash to stock are irrevocable for the calendar year once made. The board’s rationale emphasizes alignment and choice for directors; investors should monitor the annual uptake of elections, the valuation method for awards, and whether the aggregate non‑employee director grant values remain within the stated annual maximums to judge dilution and governance outcomes.

6. 6

   Shareholder Proposal — EEO‑1 Report Disclosure Policy

   Shareholder — Comptroller of the City of New York, Brad Landner, on behalf of the New York City Employees' Retirement System, the New York City Teachers' Retirement System, the New York City Police Pension Fund and the New York City Board of Education Retirement System

   Shareholder proponents request the board adopt a policy requiring Fastenal to publicly disclose its Consolidated EEO‑1 Report (workforce breakdown by race, ethnicity and gender) annually on its website and in its proxy statement.

   More detail

   The shareholder proponents (the New York City retirement systems, filed via the Comptroller) request Fastenal publicly disclose its Consolidated EEO‑1 Report annually to provide standardized, job‑category‑level workforce demographic data by race, ethnicity, and gender, arguing that such disclosure is cost‑effective (Fastenal already files the EEO‑1 with the EEOC), provides investment‑useful benchmarking including senior management diversity, and aligns Fastenal with many S&P peers. Their core argument emphasizes that the company's ESG reports provide only aggregate or incomplete historical demographic data (and that some prior disclosures were removed), whereas the EEO‑1 offers consistent, comparable categories across companies enabling year‑over‑year and peer benchmarking. Management’s counter‑argument acknowledges the company's commitment to EEO and prior ESG disclosures and stated that the demographic information already included provides meaningful insight, but the board has chosen to take no recommendation on the proposal; it noted a prior similar 2020 proposal and concluded adoption then would not meaningfully enhance equal employment opportunity or diversity. Company‑specific context includes Fastenal’s decentralized, people‑centered business model, its prior ESG reporting practices (including EEO‑1–related data in earlier reports), and the board’s framing of disclosure decisions as part of an ongoing evaluation that takes stakeholder input, regulatory developments, and evolving best practices into account. For an analyst assessing the controversy, key considerations include the incremental informational value of full EEO‑1 disclosure for investors and stakeholders, potential reputational effects and peer comparisons (large peers have disclosed), operational privacy or compliance considerations, and whether adoption would lead to meaningful change in diversity outcomes or simply increase transparency. The board’s decision to take no position reduces the immediacy of implementation but leaves open the possibility that the company could adopt improved disclosure practices in the future if it determines doing so is appropriate.

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When is the Fastenal Co 2026 annual meeting?

Fastenal Co (FAST) holds its 2026 annual shareholder meeting on Thursday, April 23, 2026.

What is the record date for the Fastenal Co 2026 meeting?

The record date for the Fastenal Co 2026 meeting is Monday, February 23, 2026. Shareholders of record on or before that date are eligible to vote.

Who are the director nominees for Fastenal Co's 2026 meeting?

The board is presenting 11 director nominees at the Fastenal Co 2026 meeting, listed with their independence status and background.

What proposals will shareholders vote on at the Fastenal Co 2026 meeting?

Shareholders will vote on 6 proposals at the Fastenal Co 2026 meeting, each tagged with who proposed it and the board's recommendation.