Table of Contents COMPETITIVENESS OF OUR COMPENSATION PROGRAM Our executive compensation program is designed so that the sum of base pay plus total short- and long-term compensation is competitive with market practices. Market practices—or benchmarks—are based on peer-group data and compensation survey data. The past year, 2018, was our first year of developing a compensation peer group. Many of our direct industry competitors are either privately held companies or are larger than us in revenue size, although very few have our growth trajectory. The Compensation and Nominating Committee, with the assistance of its compensation consultant, Korn Ferry, reviewed and selected potential peer companies based on revenue size, industry focus, growth rates, complexity of operations, customer base, and market for talent. With the assistance of its compensation consultant, the committee approved the following compensation peer group in order to determine market pay levels and pay practices for fiscal year 2018: ¢ 1-800-Flowers.com, Inc. * Overstock.com, Inc. ¢ America’s Car-Mart, Inc. * RH * Cars.com Inc. * Sleep Number Corporation * Etsy, Inc. ¢« TrueCar, Inc. * Grubhub, Inc. « U.S. Auto Parts Network, Inc. ¢ MarineMax, Inc. * Wayfair Inc. * Monro, Inc. * Zillow Group, Inc. Going forward, the Compensation and Nominating Committee expects to review our compensation peer group on an annual basis for continued appropriateness, considering changes in both our size and business and the businesses of the companies in the peer group. The committee also uses compensation survey data in its evaluation of executive pay for the NEOs. Survey data provides insight into positions that may not generally be reported in proxy statements and information about the compensation of executives of non-public companies. To assist the committee in evaluating fiscal year 2018 compensation levels, the committee reviewed both peer-group proxy data and information from survey databases, utili