<SEC-DOCUMENT>0001193125-25-086543.txt : 20250421
<SEC-HEADER>0001193125-25-086543.hdr.sgml : 20250421
<ACCEPTANCE-DATETIME>20250421085902
ACCESSION NUMBER:		0001193125-25-086543
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250421
DATE AS OF CHANGE:		20250421

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VALERO ENERGY CORP/TX
		CENTRAL INDEX KEY:			0001035002
		STANDARD INDUSTRIAL CLASSIFICATION:	PETROLEUM REFINING [2911]
		ORGANIZATION NAME:           	01 Energy & Transportation
		EIN:				741828067
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13175
		FILM NUMBER:		25851399

	BUSINESS ADDRESS:	
		STREET 1:		P.O. BOX 696000
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78269-6000
		BUSINESS PHONE:		2103454524

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 696000
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78269-6000
</SEC-HEADER>
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<FILENAME>d937655ddefa14a.htm
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<DIV STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;
</DIV><DIV STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center><DIV STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</DIV></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SCHEDULE&nbsp;14A </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Proxy
Statement Pursuant to Section&nbsp;14(a) of the </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Securities Exchange&nbsp;Act of 1934 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>(Amendment No. ) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center><DIV STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</DIV></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Filed by the Registrant&#8194;&#9746;&#8195;&#8195;&#8195;&#8195;&#8195;&#8195; Filed by a party other than the Registrant&#8194;&#9744; </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Preliminary Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Confidential, for Use of the Commission Only (as permitted by Rule
<FONT STYLE="white-space:nowrap">14a-6(e)(2))</FONT></B> </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Definitive Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Definitive Additional Materials </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Soliciting Material under &#167; <FONT STYLE="white-space:nowrap">240.14a-12</FONT> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>Valero Energy Corporation </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Name of Registrant as Specified In Its Charter) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Payment of Filing Fee (Check all boxes that apply): </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9746;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">No fee required </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Fee paid previously with preliminary materials </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules
<FONT STYLE="white-space:nowrap">14a-6(i)(1)</FONT> and <FONT STYLE="white-space:nowrap">0-11</FONT> </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Valero Energy Corporation </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">One Valero Way </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">San Antonio, TX
78249 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SUPPLEMENT TO PROXY STATEMENT FOR </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>THE ANNUAL MEETING OF STOCKHOLDERS </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TO BE HELD ON TUESDAY, MAY&nbsp;6, 2025 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Explanatory Note </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On March&nbsp;18, 2025,
Valero Energy Corporation (the &#147;Company&#148;) filed with the Securities and Exchange Commission (the &#147;SEC&#148;) and furnished to stockholders a definitive proxy statement (the &#147;Proxy Statement&#148;) in connection with the
solicitation of proxies by the Board of Directors of the Company (the &#147;Board&#148;) for use at the Annual Meeting of Stockholders to be held on Tuesday, May&nbsp;6, 2025 (the &#147;Annual Meeting&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Company management recently engaged with a proxy advisory firm regarding our compensation program and the related disclosures in our Proxy Statement. In
response to the feedback provided by the proxy advisory firm, the Company is providing this supplement (this &#147;Supplement&#148;) in order to supplement the Proxy Statement to provide additional compensation-related information. More
specifically, this Supplement provides additional compensation-related information under the caption &#147;Compensation Discussion and Analysis&#151;Elements of Executive Compensation&#151;Long-Term Incentive Awards&#151;Performance Shares&#151;TSR
Metric&#148; in the second paragraph of page 42 of the Proxy Statement. We appreciate the opportunity for this engagement and, as noted below, ongoing engagement with stockholders, stakeholders, and proxy advisory firms on our changes to the
relative TSR component design and the overall compensation program design will continue and will be considered in future compensation decisions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Updates
to existing disclosures in the Proxy Statement are set forth below under the heading &#147;Changes to the Proxy Statement&#148;. Other than these changes, the Proxy Statement remains unchanged. Nothing in this Supplement shall be deemed an admission
of the legal necessity or materiality under applicable laws of any of the disclosures set forth herein, or that such disclosures were required or material for any other period. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">From and after the date of this Supplement, any references to the &#147;Proxy Statement&#148; are to the Proxy Statement as supplemented by this Supplement.
The date of this Supplement is April&nbsp;21, 2025, and it is being filed with the SEC on April&nbsp;21, 2025. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Important Information
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This Supplement should be read in conjunction with the Proxy Statement and the other proxy materials previously distributed for the Annual Meeting.
Except as described below under the heading &#147;Changes to the Proxy Statement,&#148; this Supplement does not modify, amend, supplement or otherwise affect the Proxy Statement. To the extent the information in this Supplement differs from or
updates information contained in the Proxy Statement, the information in this Supplement controls. All page references are to pages in the Proxy Statement, and any defined terms used but not defined herein have the meanings set forth in the Proxy
Statement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Whether or not you plan to virtually attend the Annual Meeting, we urge you to vote and submit your proxy in advance of the Annual Meeting by
one of the methods described in the Proxy Statement and the other proxy materials previously distributed for the Annual Meeting. If you have already voted, no additional action is required. If you would like to revoke your prior vote on any
proposal, please refer to the Proxy Statement and the other proxy materials previously distributed for the Annual Meeting for instructions on how to do so. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Proxy Statement and the other proxy materials previously distributed for the Annual Meeting contain important information regarding the matters to be
acted upon at the Annual Meeting, and we encourage you to read them. Your vote is very important to us. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Reaffirmation of Human
Resources and Compensation Committee Report </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Human Resources and Compensation Committee of the Board has reviewed and discussed with management
the supplements to the Compensation Discussion and Analysis contained in the Proxy Statement set forth in this Supplement. Based on the foregoing review and discussions and consideration of such other matters the Human Resources and Compensation
Committee deemed relevant and appropriate, the Human Resources and Compensation Committee specifically reaffirms the Human Resources and Compensation Committee Report contained in the Proxy Statement with respect to the Compensation Discussion and
Analysis included in the Proxy Statement as supplemented by this Supplement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Members of the Human Resources and Compensation Committee: </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Rayford Wilkins, Jr., Chair </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Eric D. Mullins </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Robert A. Profusek </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Randall J. Weisenburger </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information under the caption &#147;Reaffirmation of Human Resources and Compensation Committee
Report&#148; is not &#147;soliciting material,&#148; is not deemed filed with the SEC, and is not to be incorporated by reference into any of the Company&#146;s filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of
1934, as amended, whether made before or after the date of this Supplement and irrespective of any general incorporation language in the Proxy Statement or this Supplement, unless specifically identified in such filing as being incorporated by
reference in such filing. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Changes to the Proxy Statement </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The following additional disclosures to the second paragraph of page 42 of the Proxy Statement (new text bold and underlined) supplement the information
provided in the Proxy Statement: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">**** </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>TSR Metric.</B><B></B>&nbsp;Our relative TSR performance is compared to the TSR of the members of our Performance Peer Group throughout the overall
three-year performance period. Performance periods measure TSR based on the average historical closing stock prices just prior to the beginning and the end of the performance periods, including dividends (except for the XLE index, for which the
change in the index price across the designated performance periods is measured as TSR). We apply a <FONT STYLE="white-space:nowrap">multi-day</FONT> historical average stock price in calculating TSR, as the occurrence of anomalous events, often
outside of a company&#146;s control, towards the end of any year can create short-term stock price swings that are not reflective of actual performance over the course of the performance period. To reduce the disproportionate impact of such events
and better align pay with actual performance over the performance period, in January 2025, the Committee determined that when measuring TSR for our performance share awards it was advisable to assess the average closing stock price over a greater
number of days (consistent with many of our peers referenced herein), and this methodology was applied to the outstanding tranches of the 2024 performance share awards, including the first tranche that vested in January 2025, and prospectively
beginning with 2025 awards. At the end of each performance period, our TSR for the period is compared to the respective TSR of the members of our Performance Peer Group (for such tranche). In February 2025, the Committee approved an amendment to our
performance share awards (beginning with 2025 awards and including outstanding tranches of prior awards), such that going forward our performance share awards will vest solely on the basis of relative TSR as set forth in the applicable award
agreement, continuing to target above the peer-median TSR and applying an overall cap on vesting at 200&nbsp;percent of target, but without application of the Energy Transition Modifier or the cap related to negative TSR. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>As we have disclosed under &#147;Overview of Our Engagement Efforts,&#148; our robust compensation engagement efforts throughout the years have allowed
us to incorporate ongoing feedback we received from stockholders. After careful consideration of such feedback and the increasing volatility to the already cyclical nature of our commodity-based business due to ongoing economic, geopolitical, and
regulatory disruptions, in February 2025 the Committee approved the changes described above (beginning with 2025 awards and including outstanding tranches of prior awards scheduled to vest beginning in 2026). The Committee believes these changes are
aligned with our business strategy of being the lowest cost operator with a proven history of operational excellence and an unwavering commitment to capital discipline, which has enabled us to deliver peer-leading performance and stockholder returns
across the highs and lows of margin cycles. Consistent with this strategy and its outcomes, and with the ongoing feedback we have received during engagement, the performance metric looks solely to relative TSR performance to incentivize the focus of
our management team on providing peer-leading stockholder returns not only in an above <FONT STYLE="white-space:nowrap">mid-cycle</FONT> margin environment but also when external events outside of management&#146;s control result in down or below <FONT
STYLE="white-space:nowrap">mid-cycle</FONT> margins and returns, rendering the cap related to TSR less effective in properly incentivizing management as it is not indicative of management performance. Also consistent with stockholder feedback, the
Committee believes that relative TSR represents stockholder endorsement, or lack thereof, of Valero&#146;s strategy and results. With regards to the removal of the Energy Transition Modifier, the Committee believes that relative TSR is a metric that
measures overall company performance, including not only our refining segment, but also our <FONT STYLE="white-space:nowrap">low-carbon</FONT> fuels businesses. With the uncertainty of public policy and the regulatory environment, the Committee
believes that focusing solely on relative TSR, without the cap related to negative TSR and without the Energy Transition Modifier, is the most appropriate way to incentivize management in alignment with stockholders, while driving peer-leading
performance and stockholder returns. Ongoing engagement with stockholders, stakeholders, and proxy advisory firms on these changes to the relative TSR component design and the overall compensation program design will continue and will be considered
in future compensation decisions.</U> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">**** </P>
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