At our 2022 Regular Meeting of Shareholders, (the "Meeting") to be held on Tuesday, June 14, 2016, at 9:00 a.m., Central Time, at the Best Buy Corporate Campus — Convention Center, 7601 Penn Avenue South, Richfield, Minnesota, 55423 or at any postponement or adjournment of the Meeting. The proxy materials, including the proxy statement, our Annual Report and form of proxy or the Notice of Internet Availability, were mailed to you beginning on or about May 3, 2016.

~~Background~~

~~What is the purpose of the Meeting?~~

~~At the Meeting,~~we are asking shareholders will vote on the items of business outlined in the Notice of 2016 Regular Meeting of Shareholders ("Meeting Notice") included as the cover page to this proxy statement. In addition, management will report on our business and respond to questions from shareholders.

~~Why did I receive this proxy statement and a proxy card or the Notice of Internet Availability?~~

You received this proxy statement and a proxy card or the Notice of Internet Availability because you owned shares of Best Buy common stock as of April 18, 2016, the record date for the Meeting, and are entitled to vote on ~~the items of business at the Meeting.~~three key items. This ~~proxy statement describes the items of business that will be voted on at the Meeting and provides information on these items so that you can make an informed decision.~~

~~How can I attend the Meeting?~~

You will need a form of personal identification (such as a driver's license) along with either your Notice of Internet Availability, proxy card or proof of stock ownership to enter the Meeting. If your shares are held beneficially in the name of a bank, broker or other holder of record and you wish to be admitted to the Meeting, you must present proof of your ownership of Best Buy stock, such as a bank or brokerage account statement. Please note that no cameras, recording equipment, electronic devices, large bags, briefcases or packages will be permitted in the Meeting.

~~Who may vote?~~

In order to vote at the Meeting, you must have been a shareholder of record of Best Buy as of April 18, 2016, which is the record date for the Meeting. If your shares are held in "street name" (that is, through a bank, broker or other nominee), you will receive instructions from the bank, broker or nominee that you must follow in order for your shares to be voted as you choose.

~~When is the record date?~~

~~The Board has established April 18, 2016, as the record date for the Meeting.~~

~~How many shares of Best Buy common stock are outstanding?~~

~~As of the record date, there were 324,078,217 shares of Best Buy common stock outstanding. There are no other classes of capital stock outstanding.~~

~~Voting Procedures~~

~~On what items of business am I voting?~~


1.	~~The election of the ten directors listed herein for a term of one year expiring in 2017;~~


2.	~~The ratification of the appointment of Deloitte & Touche, LLP as our independent registered public accounting firm for the fiscal year ending January 28, 2017;~~


3.	~~The non-binding advisory vote to approve our named executive officer compensation; and~~


4.	~~Such other business as may properly come before the Meeting.~~

~~How does the Board recommend that I vote?~~

~~Our Board recommends that you vote your shares:~~

~~“FOR”~~ ~~the election of directors as set forth in this proxy statement;~~

~~“FOR”~~ ~~the ratification of the appointment of Deloitte & Touche, LLP as our independent registered public accounting firm for the fiscal year ending January 28, 2017; and~~

~~“FOR”~~ ~~the non-binding advisory vote to approve our named executive officer compensation.~~

~~If you are a record holder and you sign and submit your proxy card without indicating your voting instructions, your shares will be voted as indicated above.~~

~~How do I vote?~~

~~If you are a shareholder of record (that is, if your shares are owned in your name and not in "street name"), you may vote:~~

: ~~Via the internet at~~ ~~www.proxyvote.com~~;

) ~~By telephone (within the U.S. or Canada) toll-free at~~ ~~1-800-690-6903~~;

. ~~By mail, by signing and returning the enclosed proxy card if you have received paper materials; or~~

? ~~By attending the Meeting and voting in person.~~

~~If your shares are held in a brokerage account by a broker, bank or other nominee, you should follow the voting instructions provided by your broker, bank or other nominee.~~

If you wish to vote by telephone or via the internet, you must do so before 11:59 p.m., Eastern Time, on Monday, June 13, 2016. After that time, telephone and internet voting will not be permitted, and any shareholder of record wishing to vote thereafter must submit a signed proxy card or vote in person during the Meeting. Shareholders of record will be on a list held by the inspector of elections. "Street name" shareholders, also known as beneficial owners, must obtain a proxy from the institution that holds their shares, whether it is their brokerage firm, a bank or other nominee, and present it to the inspector of elections with their ballot in order to vote at the Meeting. Voting in person by a shareholder at the Meeting will replace any previous votes submitted by proxy.

In accordance with the SEC rules, we are making available to all shareholders who have not affirmatively opted to receive paper materials, all of their proxy materials via the internet. However, you may opt to receive paper copies of proxy materials, at no cost to you, by following the instructions contained in the Notice of Internet Availability that we have mailed to most shareholders. We encourage you to take advantage of the option to vote your shares electronically through the internet or by telephone. Doing so will result in cost savings for the Company.

~~How are my voting instructions carried out?~~

When you vote via proxy, you appoint the Chairman of the Board, Hubert Joly, and the Secretary of the Company, Keith J. Nelsen (collectively, the "Proxy Agents"), as your representatives to vote at the Meeting. The Proxy Agents will vote your shares at the Meeting, or at any postponement or adjournment of the Meeting, as you have instructed them on the proxy card. If you return a properly executed proxy card without specific voting instructions, the Proxy Agents will vote your shares in accordance with the Board's recommendations as disclosed in this proxy statement. If you submit a proxy, your shares will be voted regardless of whether you attend the Meeting. Even if you plan to attend the Meeting, it is advisable to vote your shares via proxy in advance of the Meeting in case your plans change.

If an item properly comes up for vote at the Meeting, or at any postponement or adjournment of the Meeting, that is not described in the Meeting Notice, including adjournment of the Meeting and any other matters incident to the conduct of the Meeting, the Proxy Agents will vote the shares subject to your proxy in their discretion. Discretionary authority for them to do so is contained in the proxy.

~~How many votes do I have?~~

~~You have one vote for each share you own, and you can vote those shares for each item of business to be addressed at the Meeting.~~

~~How many shares must be present to hold a valid Meeting?~~

For us to hold a valid Meeting, we must have a quorum. In order to have a quorum, a majority of the outstanding shares of our common stock that are entitled to vote need to be present or represented by proxy at the Meeting. Your shares will be counted as present at the Meeting if you:

~~vote via the internet or by telephone;~~

~~properly submit a proxy card (even if you do not provide voting instructions); or~~

~~attend the Meeting in person.~~

Broker non-votes, as defined below, will be included in determining the presence of a quorum at the Meeting so long as there is at least one routine matter which the broker, bank or other nominee can vote on, as is the case with the Meeting. In addition, abstentions on any matter are included in determining the presence of a quorum.

~~How many votes are required to approve an item of business and what are the effects of abstentions and broker non-votes on the voting results?~~

Pursuant to our Amended and Restated Articles of Incorporation ("Articles") and our Amended and Restated By-laws ("By-laws"), each item of business to be voted on by the shareholders at the Meeting, with the exception of Item 1, requires the affirmative vote of the holders of a majority of the voting power of the shares of Best Buy common stock present at a meeting and entitled to vote. Item 1, the election of directors, requires the affirmative vote of a majority of votes cast with respect to the director.

Under the rules of the New York Stock Exchange (“NYSE”), if you are a beneficial owner of shares and you do not provide voting instructions to your broker, bank or nominee, that firm has discretion to vote your shares for certain routine matters. Item 2, the ratification of the appointment of Deloitte & Touche, LLP as our independent registered public accounting firm, is considered a routine matter under NYSE rules. However, your broker, bank or nominee does not have discretion to vote your shares for non-routine matters. Items 1 and 3, the election of directors and the advisory vote related to executive compensation, respectively, are not considered routine matters under NYSE rules.

When a broker, bank or nominee votes a beneficial owner's shares on certain but not all of the proposals, because it is unable to vote due to the beneficial owner's failure to provide voting instructions on a matter as to which the broker, bank or nominee has no discretion to vote otherwise, the missing votes are referred to as “broker non-votes.”

~~Abstentions will have the same effect as votes against Items 2 and 3 described in this proxy statement, but will have no effect on Item 1. Broker non-votes will have no effect on Items 1 and 3.~~

~~What if I change my mind after I vote via proxy?~~

~~If you are a shareholder of record, you may revoke your proxy at any time before your shares are voted by:~~

~~Submitting a later-dated proxy prior to the Meeting (by mail, internet or telephone);~~

~~Voting in person at the Meeting (attendance will not, by itself, revoke a proxy); or~~

~~Providing written notice of revocation to Best Buy's Secretary at our principal office at any time before your shares are voted.~~

~~If your shares are held in a brokerage account by a broker, bank or other nominee, you should follow the instructions provided by your broker, bank or other nominee.~~

~~Who will count the vote?~~

~~Representatives of Broadridge will tabulate the vote and act as the inspector of elections.~~

~~Where can I find the voting results of the Meeting?~~

We plan to publish the final voting results in a Current Report on Form 8-K ("Form 8-K") filed within four business days of the Meeting. If final voting results are not available within the four business day timeframe, we plan to file a Form 8-K disclosing preliminary voting results within the required four business days, to be followed as soon as practicable by an amendment to the Form 8-K containing final voting results.

~~Proxy Solicitation~~

~~How are proxies solicited?~~

We expect to solicit proxies primarily by internet and mail, but our directors, officers, other employees and agents may also solicit proxies in person, by telephone, through electronic communication and by facsimile transmission. We will request that brokerage firms, banks, other custodians, nominees, fiduciaries and other representatives of shareholders forward the Notice of Internet Availability and, as applicable, the proxy materials and Annual Reports themselves, to the beneficial owners of our common stock. Our directors and employees do not receive additional compensation for soliciting shareholder proxies.

~~Who will pay for the cost of soliciting proxies?~~

We pay all of the costs of preparing, printing and distributing our proxy materials. We will reimburse brokerage firms, banks and other representatives of shareholders for reasonable expenses incurred as defined in the NYSE schedule of charges in connection with proxy solicitations.

~~How can multiple shareholders sharing the same address request to receive only one set of proxy materials and other investor communications?~~

You may elect to receive future proxy materials, as well as other investor communications, in a single package per address. This practice, known as "householding," is designed to reduce our paper use and printing and postage costs. To make the election, please indicate on your proxy card under "Householding Election" your consent to receive such communications in a single package per address. Once we receive your consent, we will send a single package per household until you revoke your consent or request separate copies of our proxy materials by notifying our Investor Relations Department in writing at 7601 Penn Avenue South, Richfield, MN, 55423, or by telephone at 612-291-6147. We will start sending you individual copies of proxy materials and other investor communications following receipt of your revocation.

~~Can I receive the proxy materials electronically?~~

Yes. All shareholders may access our proxy materials electronically via the internet. We encourage our shareholders to access our proxy materials via the internet because it reduces the expenses for, and the environmental impact of, our shareholder meetings. You may opt to receive paper copies of proxy materials, including our Annual Report, proxy statement and proxy card at no cost to you, by following the instructions on your Notice of Internet Availability.

~~An electronic version of this proxy statement is posted on our website at~~ ~~www.investors.bestbuy.com.~~

~~Additional Information~~

~~Where can I find additional information about Best Buy?~~

Our reports on Forms 10-K, 10-Q and 8-K, and other publicly available information should be consulted for other important information about Best Buy. You can find these reports and additional information about us on our website at ~~www.investors.bestbuy.com~~.

~~PROXY SUMMARY~~

~~This summary~~section highlights information contained ~~elsewhere~~ in other parts of this proxy statement. We encourage you to review the entire proxy statement for more detail on these items, as well as our Annual Report and our ~~Chairman and CEO's~~CEO’s Letter to Shareholders posted on our website at ~~www.investors.bestbuy.com~~ ~~for more information regarding our Company, business and performance over the past year.~~www.investors.bestbuy.com.

Items of Business ~~Update~~

~~In this past fiscal year, we made progress against the two problems identified~~for Vote at ~~the outset of this journey: declining comparable sales and declining margins. In fact, fiscal 2016 marked the second year in a row that we~~ ~~increased~~our ~~domestic revenue and~~ ~~expanded~~ ~~our operating margin.~~

~~This progress was made possible through our unrelenting focus on the~~ ~~Five Pillars~~ ~~of our Renew Blue transformation.~~

~~We begin where all successful retailers start, with the~~ ~~customer experience. Last year we saw continued improvement in customer satisfaction, having increased our Net Promoter Score by more than 300 basis points.~~

In the spirit of striving to serve customers wherever and however they prefer, we grew online domestic revenue 13% to more than $4 billion, or 11% of total domestic revenue. This growth was fueled, in part, by a meaningfully improved website and the launch of the enhanced Best Buy app that has consistently earned higher customer reviews than most, if not all, of our competitors.

~~We have also meaningfully enhanced the customer experience in our stores and around the services we provide to our customers, from consultation to installation, setup, support and repair.~~

~~All of this progress has allowed us to gain market share in nearly all of our traditional consumer electronics ("CE") categories, as well as appliances.~~

~~None of this would have been possible without the talent and engagement of our~~ ~~leaders and employees. We are proud of what they do everyday and thank each individual member of our team for what they have done to bring us here.~~

Engagement scores have drastically improved since the outset of our transformation. This year, we also saw a decrease in employee turnover in our stores, allowing us to better serve our customers. We have invested in the training and daily coaching of our front-line employees to be able to deliver enhanced levels of proficiency. We have also enhanced our capabilities in several areas that are critical to our future, including digital and mobile.

~~We have continued to strengthen our collaboration with key~~ ~~vendor partners~~. For instance, we now have 630 Samsung and 380 Sony home theater stores-within-a-store; 225 Samsung Open House appliance experiences; 814 Windows stores; and 249 AT&T and Verizon mobile shops within our big box stores. This collaboration with key vendors is one of the ways we showcase for our customers the latest and greatest technology in a tangible fashion. A great example of this is the work we have done with key vendors to introduce 4K TV technology to a broad consumer base, increasing adoption at a strong rate.

~~From an~~ ~~economic standpoint~~, in fiscal 2016 we were able to deliver $150 million against our $400 million cost reduction and gross profit optimization goal. This was in addition to the $1 billion in costs we removed from our business in the past few years.

We were also able to successfully consolidate our two Canadian brands and embark on a significant transformation in Canada. Customer retention in Canada is better than expected, and it is clear that we made the correct decision in moving to a single brand, Best Buy.

In aggregate, our decision to focus on North America and the improvements we've made in our business have resulted in a significant increase in our non-GAAP return on invested capital ("ROIC") from 9.2% in fiscal 2012 to 13.6% in fiscal 2016.*

~~Finally, throughout fiscal 2016 we continued to seek to~~ ~~positively impact the world~~. Our recycling efforts have collected more than 1 billion pounds of e-waste, and our pledge to reduce our carbon footprint by 20% was met in fiscal 2016. We subsequently increased our target to a 40% reduction by calendar year 2020 from a 2009 baseline. Our Best Buy Foundation continued its work to provide underserved teenagers across the U.S. with access to technology. We increased the number of our Teen Tech Centers and Geek Squad Academies, all in an effort to expose underprivileged teens to the career opportunities that technology offers.

~~Returning Capital to Shareholders~~

In fiscal 2016, we returned $1.5 billion to our shareholders. This number included $1 billion in share repurchases, originally planned to be completed over three years. We also increased our dividend and gave shareholders a one-time dividend payment associated with a favorable legal settlement.

As we laid out in our fourth quarter fiscal 2016 earnings call, our long-term capital allocation strategy is first to fund operations and investments in growth, including potential acquisitions, and then to return excess free cash flow over time to shareholders through dividends and share repurchases. Our intent is to be a premium dividend payer and to regularly repurchase shares every year that, at a minimum, offset dilution from equity-based awards. We intend to do this all while maintaining investment-grade credit metrics.

In line with this strategy, our fiscal 2017 return-of-capital plan includes: 1) a 22% increase in the regular quarterly dividend to $0.28 per share; 2) a two-year, $1 billion share repurchase program; and 3) a special dividend of $0.45 per share.

~~A Look Ahead at Our Growth Strategy and Fiscal 2017 Priorities~~

As pleased as we are with our performance, we are even more excited about what lies ahead. We have entered the next phase of our transformation, and our purpose is clear: help customers learn about and enjoy the latest technology as they pursue their passions or take care of what is important to them in their life, whether it is the desire to be entertained, communicate easily, work efficiently, prepare food, or clean, protect, monitor, or automate their home.

~~With this purpose in mind, we are on a mission to constantly innovate to improve the experience of our customers and determined to find ways to accelerate the growth of our business.~~

~~In this context, we are pursuing the following priorities in fiscal 2017:~~


1)	~~Build on our strong industry position and multi-channel capabilities to move the existing business forward;~~


2)	~~Create greater efficiency and reduce waste throughout the business; and~~


3)	~~Advance key growth initiatives.~~

~~In pursuing our~~ ~~first priority~~ ~~- continuing to move the existing business forward - we are implementing a number of initiatives across merchandising, marketing, digital, stores, services and supply chain.~~

For example, in our appliances business, we look to extend our 21-quarter growth streak in this category. To that end, we plan to build 27 more Pacific Kitchen & Home stores-within-a-store, bringing our total to 203 at year-end. We also expect to see growth from the work we have done to improve our delivery and installation services, both of which are key to the increases we have seen in customer satisfaction.

One of the emerging categories in which we see an opportunity to create and foster a wave of innovation and consumer enthusiasm is the “Connected Home.” In this category, we are increasing our assortment in several areas, including home security, lighting and video monitoring, and using our leading position in routers and networking equipment, which form the backbone of the Connected Home, as a way of gaining customer interest and trust.

Regarding our online business, we are prioritizing the customer shopping experience on smartphone and tablet devices, two consumer shopping channels where we are seeing material growth. Our Seattle Technology Development Center, which opened last year, has focused on this part of our customer experience. A recent, well-received example of their work is “BlueAssist,” an in-app feature allowing customers to simply shake their device to get live help with products and orders through chat, call and e-mail.

~~Finally, we are continuing to invest in the talent, proficiency and performance of our front-line employees.~~

~~Our~~ ~~second priority~~ for fiscal 2017 is to reduce cost and create efficiencies throughout the business. Reducing costs is essential for us to be able to fund our investments, build resilience to product cycles and, ultimately, increase our profitability over time.

One example of this cost reduction and efficiency work is our project to reduce the number of open-box appliances we take back into our stores. This effort has the potential to improve the customer experience by changing the way we sell so that fewer customers are compelled to return their appliance purchases. It also can create material savings through fewer price markdowns, reduced transportation costs and the better use of labor in our stores and distribution centers.

Broadly said, we aspire to deliver world-class operational performance, defined in terms of quality, service and cost. This focus has to be — and is becoming — a way of life, especially given our margin structure and product cycles.

These savings will allow us to invest in our future. Such investments include additional costs to ensure we have the most expert sales and services associates; a continued effort to make certain our services pricing remains competitive; and initiatives in the key growth areas. We are determined to invest to grow and equally determined to fund our investments by finding and exploiting areas of cost reduction and efficiency.

~~Our~~ ~~third priority~~ is to advance key growth initiatives that will more deeply transform Best Buy, creating differentiation and growth. We believe we operate in an opportunity-rich environment. Specifically, the advent of the “Internet of Things” is creating a new technology wave that makes Best Buy’s operating model increasingly relevant. We know from our customer research and day-to-day customer interactions that consumers are generally:


1)	~~Fairly skeptical that the latest products will actually do what is promised;~~


2)	~~Finding it difficult to pinpoint solutions available to best meet their needs;~~


3)	~~Frequently unaware of, or frustrated by, how to get the most out of their technology; and~~


4)	~~Struggling to make their technology work and find effective help when they need it.~~

~~These unmet needs continue to create opportunities for us. We are committed to finding ways to help customers in these areas and to make shopping for and using technology a much better experience.~~

We will explore a number of initiatives in fiscal 2017, including developing more consultative selling approaches and providing a richer set of services to our customers. We will also pursue growth opportunities around key, growing product categories.

A critical component of our growth efforts is our services capabilities, including the Geek Squad. While it may not yet be visible in our quarterly financial results, we are making progress in this area. To do so, we had to spend time over the last two years fixing many aspects of our traditional warranty and repair businesses, including our pricing. We are seeing the results of our efforts through substantially higher Net Promoter Scores, an increased number of total customer interactions and improved attach rates.

~~Board & Corporate Governance Highlights~~

Over the past year, our Board of Directors has continued to evolve to meet the needs of the Company and the dynamic and competitive industry in which it operates. Our approach to corporate governance is to develop and implement practices that: 1) support the success of the Company’s strategy and business objectives, 2) are rooted in a robust ongoing dialogue with our shareholders, and 3) are inspired by best practices. Consistent with these objectives, we note the following highlights from the past year:

We continued to strengthen our Board composition in line with the needs of our business. In September 2015, we appointed Karen A. McLoughlin, chief financial officer of Cogizant Technology Solutions Corp., with a strong background in finance and information technology ("I.T.") services, to our Board. We also appointed Claudia F. Munce to serve as a director in March 2016. Ms. Munce spent over 30 years at IBM in their venture capital group and recently joined New Enterprise Associates as a venture advisor. The addition of Ms. McLoughlin and Ms. Munce not only

brings additional diversity to the Board, but adds new skills in the areas of technology, venture capital and I.T. services. These additions complement the prior additions of David Kenny, Russ Fradin, Tommy Millner and Patrick Doyle, who brought chief executive officer experiences in retail, consumer services, multichannel and enterprise transformation.

Our Board continued to play a critical role in our strategic planning process. The Board placed a priority on guiding the development of the Company’s strategic direction as it enters the next phase of our transformation. In fiscal 2016, this review process included a budget and capital plan review at the beginning of the fiscal year and an extended strategic offsite mid-year to review and discuss management’s long-term plan for growing the Company and creating shareholder value. The Board’s strong mix of skills, experiences and perspectives relevant to our business has ensured a rigorous and active dialogue between the Board and management regarding the Company’s strategic plan and growth agenda.

We successfully transitioned our Board leadership structure in order to support the strategic needs of our transformation. As announced last year, after 17 highly distinguished years on our Board (three of which he served as Chairman), Hatim Tyabji retired from our Board following the 2015 Regular Meeting of Shareholders (the "2015 Meeting"). Our CEO, Hubert Joly, assumed the role of Chairman, and Mr. Fradin (who joined our Board in 2013) began serving as our Lead Independent Director. To ensure the effectiveness of this structure, we employ corporate governance best practices, including Board meeting agendas proposed by the Chairman and reviewed by the Lead Independent Director, and executive sessions of the independent directors led by the Lead Independent Director at each regular Board meeting. We believe this leadership structure is ideally suited to this stage of our growth transformation.

~~In addition to these developments, we continue to employ a strong framework of corporate governance practices. More information on our Corporate Governance policies and practices can be found in the~~ ~~Corporate Governance~~ ~~section of this proxy statement.~~

In March 2016, Brad Anderson informed the Board that he would be retiring from the Board and would not seek re-election at the Meeting. Mr. Anderson was a long-time executive and Board member who started working at Best Buy in 1973 when we had just a handful of stores. He served alongside our Founder and Chairman Emeritus, Richard M. Schulze, and ultimately became his successor as CEO. During his service, he has made countless contributions that have helped shape us into the leading consumer electronics retailerThis year, we are ~~today.~~

~~Fiscal 2016 Shareholder Engagement~~

~~Our robust shareholder engagement program continued to be a priority in fiscal 2016. We reached out to all of our top 20 shareholders, representing approximately 70% of~~requesting your support for the outstanding shares, as well as several other of our top 50 shareholders. We met personally with several of our top shareholders and generally received positive feedback about our performance, corporate governance and compensation practices. This support was evident at our 2015 Meeting, when allfollowing Items of ~~Business received over 95% support from shareholders.~~Business:

~~Our typical engagement follows a seasonal cycle, as outlined below. Additional information can be found in the~~ ~~Corporate Governance — Shareholder Engagement~~ ~~section of this proxy statement.~~

Item Number			Item Description		Board Recommendation

~~Spring~~	è			~~Summer~~
~~Follow-up engagement with proxy advisory firms and our largest shareholders to address important issues within our proxy statement in advance of the annual meeting.~~				~~Review of feedback received from shareholders at our annual meeting and current trends in governance.~~


	é		ê

~~Winter~~				~~Fall~~
~~Review shareholder feedback from fall engagement with the Board and integration of feedback in governance practices and proxy disclosure.~~				Primary engagement season with focus on our top 20 shareholders and proxy advisory firms through both in-person and telephonic conversations. Company participants include representatives from Legal, Investor Relations and Human Resources - Rewards.
		ç

~~Overview of Director Nominees~~

The following individuals are standing for election to our Board. All of our director nominees have relevant skills, proven leadership, sound judgment and integrity. They also bring a wide range of backgrounds, experience and expertise necessary to our transformation. Additional information about our nominees can be found in ~~Item of Business No. 1 — Election of Directors.~~

Name Age Director Since Position/Company Independence Current Committees Other For-Profit Directorships (*Public Company)
Lisa M. Caputo 52 2009
Executive Vice President, Marketing & Communications
The Travelers Companies, Inc.
ü
Nominating, Corporate Governance & Public Policy
Compensation & Human Resources
—
J. Patrick Doyle 52 2014
President & CEO
Domino’s Pizza, Inc.
ü
Audit
Finance & Investment Policy
Domino’s Pizza, Inc.*
Russell P. Fradin 60 2013 Operating Partner Clayton, Dubilier & Rice ü Compensation & Human Resources (Chair) —
Kathy J. Higgins Victor 59 1999
President & Founder
Centera Corporation
ü
Compensation & Human Resources
Nominating, Corporate Governance & Public Policy (Chair)
—
Hubert Joly 56 2012
Chairman & CEO
Best Buy Co., Inc.
— None Ralph Lauren Corporation*
David W. Kenny 54 2013
General Manager
IBM Watson, IBM
ü Audit (Chair) Compensation & Human Resources SessionM
Karen A. McLoughlin 51 2015 Chief Financial Officer Cognizant Technology Solutions Corp. ü Audit Finance & Investment Policy —
Thomas L. Millner 62 2014
President & CEO
Cabela’s Inc.
ü
Audit
Nominating, Corporate Governance & Public Policy
Cabela’s Inc.* Total Wine & More
Claudia F. Munce 56 2016 Venture Advisor New Enterprise Associates ü Audit Finance & Investment Policy Bank of the West
Gérard R. Vittecoq 67 2008
Group President & Executive Office Member (Retired)
Caterpillar, Inc.
ü
Audit
Finance & Investment Policy (Chair)
Ariel Compressors
Vanguard Logistics Services
Mantrac Group

~~As a whole, these director nominees represent the following composition characteristics and key qualifications, among others:~~

Independence Average Tenure Average Age Gender Diversity
90% 4.7 years 57 years 40%

~~Executive Compensation Highlights~~

~~Fiscal 2016 was the third full year of our Renew Blue transformation strategy and our emphasis on stable compensation practices with a strong focus on performance outcomes.~~

~~Key Executive Compensation Program Elements~~

~~The compensation of our Named Executive Officers ("NEOs") in fiscal 2016 included the following ongoing elements (for additional details, see the~~ ~~Executive and Director Compensation — Compensation Discussion and Analysis~~ ~~and the~~ ~~Compensation of Executive Officers — Summary Compensation Table~~ ~~sections of this proxy statement):~~



	~~Base Salary~~	~~Bonus~~	~~Performance Share Awards~~	~~Time-Based Shares~~	~~Stock Options~~
~~Incentive Focus~~	~~Short-Term~~	~~Short-Term~~	~~Long-Term~~	~~Long-Term~~	~~Long-Term~~
~~Performance Period~~	~~Ongoing~~	~~Annual~~	~~3 years~~	~~Vest over 3 years~~	~~Vest over 3 years, with a 10-year term~~
~~Performance / Value Metrics~~	~~N/A~~	~~Compensable Enterprise Operating Income, Enterprise Comparable Sales, Renew Blue Priorities~~	~~Total Shareholder Return ("TSR")~~	~~Stock price appreciation~~	~~Stock price appreciation~~

~~Fiscal 2016 Summary Compensation Overview~~

~~The table below summarizes the total compensation earned by our NEOs during fiscal 2016. See the~~ ~~Executive and Director Compensation — Compensation Discussion and Analysis~~ ~~and the~~ ~~Compensation of Executive Officers — Summary Compensation Table~~ ~~sections of this proxy statement for more information.~~

Name and Principal Position

Salary

Stock
Awards⁽¹⁾

Option
Awards⁽¹⁾
Short-Term Incentive Plan Payout
All Other
Compensation
Total
Hubert Joly
Chairman and
Chief Executive Officer
$ 1,175,000
$ 8,011,688
$ 1,842,715
$ 3,814,050
$ 29,028
$ 14,872,481
Sharon L. McCollam
Chief Administrative and Chief Financial Officer
$ 925,000
$ 3,039,724
$ 1,397,391
$ 2,251,913
$ 9,669
$ 7,623,697
Shari L. Ballard
President, U.S. Retail
$ 790,385
$ 2,672,270
$ 1,228,476
$ 1,927,311
$ 24,641
$ 6,643,083
R. Michael Mohan
Chief Merchandising Officer
$ 790,385
$ 1,336,135
$ 614,238
$ 1,927,311
$ 10,323
$ 4,678,392
Keith Nelsen
General Counsel and Secretary
$ 640,385
$ 1,102,314
$ 506,742
$ 1,027,899
$ 10,482
$ 3,287,822

~~(1)~~

The grant date fair value of an award is measured in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation - Stock Compensation ("ASC Topic 718"). The amounts reported have not been adjusted to eliminate service-based forfeiture assumptions. The other assumptions used in calculating these amounts are set forth in Note 7, ~~Shareholders' Equity~~, to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2016.The grant date fair value for any performance share award is the value at the grant date of the probable outcome of the award.1

~~Advisory Vote to Approve Named Executive Officer Compensation~~



	For the past five years, our shareholders have had an opportunity to share with us their opinion of our compensation practices through a non-binding advisory "Say on Pay" vote. These past five years have also been a time of significant transformation for the Company. After experiencing significant leadership transitions and challenges in fiscal 2012, we returned to our tradition of stable compensation practices, with a strong focus on performance outcomes. We believe that the shareholder voting results in the past three years reflect the Compensation & Human Resources Committee's approach to our compensation strategy, as well as the changes we made in consideration of shareholder feedback. This year, we again ask for our shareholders' support of our executive compensation practices and look forward to receiving feedback on our program and practices. For more information, see ~~Item No. 3 — Advisory Vote to Approve Named Executive Officer Compensation~~ ~~in this proxy statement.~~

~~Items of Business~~

~~As the Company continues our efforts to advance our transformation and create value for our shareholders, we ask shareholders to consider and vote on the following items at this Meeting:~~



~~Item Number~~	~~Item Description~~	~~Board Recommendation~~
1	Election of Directors	~~For~~	FOR Each Nominee
			We have ~~ten~~eleven director nominees standing for election this year. ~~You will find more~~More information about our ~~nominees'~~nominees’ qualifications and experience can be found starting on page 25.
2	2		Ratification of Appointment of our Independent Registered Public Accounting Firm	~~For~~	FOR
			We are asking our shareholders to ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal ~~2017.~~2023, as described on page 44.
3	3		Advisory Vote to Approve our Named Executive Officer Compensation	~~For~~	FOR
	~~For the sixth year, we~~		We are seeking, in an advisory capacity, approval by our shareholders of our named executive officer compensation, ~~program,~~ the ~~"Say~~“Say on ~~Pay"~~Pay” vote. ~~In evaluating this proposal, please review our~~Our Compensation Discussion & Analysis ("(“CD~~&A"~~&A”), which begins on page 4046, describes our executive compensation programs and ~~describes how we have engaged with shareholders and the compensation~~ decisions ~~of our Compensation and Human Resources Committee.~~for fiscal 2022.

Attending the Meeting

How will the Meeting be conducted?

The Meeting will be conducted online, in a fashion similar to an in-person meeting. Our board members and executive officers will attend the Meeting and be available for questions. You may attend the Meeting online, vote your shares electronically, and submit your questions during the Meeting by visiting our virtual shareholder forum at: www.virtualshareholdermeeting.com/BBY2022 and following the instructions on your proxy card.

How can I ask questions during the Meeting?

Questions may be submitted prior to the Meeting or you may submit questions in real time during the Meeting through our virtual shareholder forum. We are committed to acknowledging questions we receive in the time allotted. We will allot approximately fifteen minutes for questions during the Meeting and submitted questions should follow our Rules of Conduct in order to be addressed during the Meeting. If we are unable to answer your question during the Meeting due to time constraints, you are encouraged to contact the Best Buy Investor Relations department at investorrelations@bestbuy.com. Our Rules of Conduct are posted on the forum.

* For "Revenue - As Reported to Revenue - As Adjusted," "GAAP to non-GAAP" and "Return on Invested Capital" definitions and reconciliations, please refer to the schedules beginning on page 72 ~~of this proxy statement.~~

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What can I do if I need technical assistance during the Meeting?

If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, please call the technical support number that will be posted on the Virtual Shareholder Meeting log-in page.

If I can’t attend the Meeting, can I vote or listen to it later?

~~CORPORATE GOVERNANCE AT BEST BUY~~You do not need to attend the online Meeting to vote if you submitted your vote via proxy in advance of the meeting. A replay of the Meeting, including the questions answered during the meeting, will be available on www.investors.bestbuy.com.

~~Our Board is elected by~~Additional information about how to vote your shares and attend our ~~shareholders to oversee our business and affairs. In addition, the Board counsels, advises and oversees management~~Meeting can be found in the ~~long-term interests of the Company, our shareholders and other stakeholders regarding a broad range of subjects, including:~~

~~Selecting and evaluating the performance of our CEO (this duty is performed by the independent directors, with the Chairman and CEO abstaining from all discussions);~~

~~Reviewing and approving major financial, strategic and operating decisions, and other significant actions;~~

~~Overseeing the conduct of our business and the assessment of our business risks to evaluate whether our business is being properly managed;~~

~~Overseeing the processes for maintaining the integrity of our financial statements and other public disclosures and complying with legal and ethical standards; and~~

~~Planning for CEO succession and monitoring management's succession planning for other senior executives.~~

~~Members of the Board monitor and evaluate our business performance through regular communication with our Chairman and CEO and by attending Board and committee meetings.~~

~~Board and Corporate Governance Highlights~~

Our Board is committed to having a sound governance structure that promotes the best interests of our shareholders. To that end, our Board has evaluated and actively continues to examine emerging corporate governance trends and best practices. Shareholder perspectives play an important role in that process. Some key points regarding our Board and governance structure and practices are as follows:



•	~~Corporate Governance Principles.~~ ~~Our Board has adopted Corporate Governance Principles as part of its commitment to good governance practices. These principles are available on our website at~~ ~~www.investors.bestbuy.com.~~
•	~~Annual Elections for Directors.~~ ~~Each year, all directors stand for election by shareholders to serve for a one-year term.~~
•	~~Majority Vote for Directors.~~ ~~We have employed majority voting since our incorporation in 1966.~~
•	~~Predominantly Independent.~~ ~~All of our directors, other than the CEO, are independent.~~
•	~~Lead Independent Director.~~ Our Corporate Governance Principles require us to have a Lead Independent Director with specific responsibilities to ensure independent oversight of management whenever our Chairman is not independent.
•	~~Independent Committees.~~ ~~Our Audit, Compensation & Human Resources and Nominating, Corporate Governance & Public Policy Committees are comprised exclusively of independent directors.~~
•	~~Director Retirement Policy.~~ Our directors are required to retire at the expiration of their term upon reaching the age of 75 and must tender their resignation for consideration when their principal employment or affiliation changes.
•	~~Outside Board Membership.~~ ~~None of our director nominees serves on more than two public company boards.~~
•	~~Anti-Hedging and Anti-Pledging Policies.~~ ~~We prohibit both hedging and pledging of Company securities by directors and executive officers.~~
•	~~Stock Ownership Guidelines.~~ ~~Our directors and executive officers are required to comply with stock ownership guidelines.~~
•	~~Shareholder Voting Rights.~~ ~~We have no cumulative voting rights and our only class of voting shares is our common stock.~~
•	~~Right to Call a Special Meeting.~~ ~~A shareholder(s) must own 10% of the voting shares of our stock to call a special meeting, or 25% if the special meeting relates to a business combination or change in our Board composition.~~
•	~~No Shareholder Rights Plan (commonly known as a "Poison Pill").~~
•	~~Shareholder Support for Directors.~~ ~~In 2015, all directors standing for re-election received over 97% support from shareholders.~~
•	~~Board Attendance.~~ ~~On average, our directors attended over 98% of fiscal 2016 Board and Board committee meetings.~~
•	~~Related Party Transactions.~~ ~~None of our directors are involved in a material related party transaction.~~
•	~~Financial Experts.~~ ~~All directors who served on our Audit Committee during fiscal 2016 qualify as financial experts.~~
•	~~Board Diversity.~~ ~~Our Board places an emphasis on diverse representation among its members. Four of our ten director nominees are women.~~

~~Board Leadership~~

Following our 2015 Meeting, Mr. Joly assumed the combined role of Chairman and CEO upon the retirement of Mr. Tyabji, our former Chairman. The Board determined Mr. Joly was the ideal leader to serve as Chairman, in large part due to his ability to build our strategy with the Board and carry it out with management. As Chairman, Mr. Joly consults with the Lead Independent Director to set the agenda for, and he presides over, meetings of the full Board. He is responsible for Board oversight responsibilities, risk management and strategic planning. Consistent with our Corporate Governance Principles, since Mr. Joly is not an independent Chairman, Mr. Fradin was appointed by the Board to serve as our Lead Independent Director, fulfilling the responsibilities discussed in the General Information~~Lead Independent Director~~ section of this proxy statement. ~~Additional leadership roles~~

Corporate Governance

Our longstanding approach to corporate governance is to develop and implement principles that: (1) enable the success of our strategy and business objectives; (2) are rooted in a robust ongoing dialogue with our shareholders; and (3) are inspired by best practices. Consistent with this approach, we continue to ~~be filled by other directors, all~~build upon a strong framework of ~~whom are independent~~corporate governance policies and ~~continue to play an active role in our strategic planning, risk oversight and governance of~~practices, including the ~~Company.~~following:

~~Lead Independent Director~~

Our Lead Independent Director role was established in January 2010 in order to provide independent leadership on the Board during times when our Chairman is not independent. The Lead Independent Director (i) presides at all Board meetings at which the Chairman is not present, (ii) presides at executive sessions of independent directors (which take place at each regular Board meeting), (iii) calls additional meetings of the independent directors as appropriate, (iv) serves as a stakeholder liaison on behalf of the independent directors by making himself or herself available for direct consultation and communication with interested parties, as appropriate, and (v) performs such other duties as may be requested from time to time by the Board as a whole, the independent directors, and the Chairman of the Board. He also partners with the Chairman to set the Board meeting agenda and otherwise provides ongoing counsel to the Chairman regarding key items of business and overall Board functions.

Our Lead Independent Director is nominated by the Nominating, Corporate Governance and Public Policy Committee, and final selection is subject to ratification by the vote of a majority of the independent directors on the Board. The Lead Independent Director serves for an annual term beginning at the Board meeting following the first Regular Meeting of Shareholders at which directors are elected.

~~Board Composition~~

The Board seeks a wide range of relevant experience and expertise in its directors. In addition, the Board emphasizes independent voices and adding new perspectives to its membership. Currently 90% of our directors are independent, with an average tenure of 4.7 years. In addition, the Board carefully assesses and plans for the director skill sets required in the future, and for an orderly succession and transition of directors, as evidenced by the composition changes over the past four years.

Pursuant to an agreement entered into between the Company and Richard M. Schulze, our founder and beneficial owner of approximately 13.6% of the Company as of the date of this proxy statement, Mr. Schulze was entitled to nominate two directors for appointment to our Board until he reached the age of 75 (which occurred in January 2016). Pursuant to these agreements, Mr. Schulze appointed Mr. Anderson and Mr. Lenzmeier to the Board in 2013. In June 2015, Mr. Lenzmeier retired from the Board, and in March 2016, Mr. Anderson informed the Board that he would not seek re-election and would retire from the Board effective at the Meeting.

~~For more information regarding our agreements with Mr. Schulze, please see the~~ ~~Certain Relationships and Related Party Transactions~~ ~~section of this proxy statement, as well as the Current Reports on Form 8-K filed by the Company on August 26, 2012, December 14, 2012, March 25, 2013, April 13, 2015 and March 15, 2016.~~

~~Director Independence~~

Pursuant to our Corporate Governance Principles, the Board has established independence standards consistent with the requirements of the SEC and NYSE. To be considered independent under the NYSE rules, the Board must affirmatively determine that a director or director nominee does not have a material relationship with us (directly, or as a partner, shareholder or officer of an organization that has a relationship with us). In addition, each member of the Compensation and Human Resources Committee must meet a standard of “enhanced independence” such that the Board must consider the source of compensation of the director and whether the director is affiliated with us or one of our subsidiaries to determine whether there are any factors that would materially affect a director's ability to be independent, specifically in regards to their duties as a compensation committee member.

~~NYSE rules generally provide that no director or director nominee may be deemed independent if the director or director nominee:~~

~~— has in the past three years:~~

received (or whose immediate family member has received as a result of service as an executive officer) more than $120,000 during any 12-month period in direct compensation from Best Buy, other than director and committee fees and certain pension payments and other deferred compensation;

~~been an employee of Best Buy;~~

~~had an immediate family member who was an executive officer of Best Buy;~~

personally worked on (or whose immediate family member has personally worked on) our audit as a partner or an employee of our internal or external auditors or independent registered public accounting firm; or

~~been (or whose immediate family member has been) employed as an executive officer of another company whose compensation committee at that time included a present executive officer of Best Buy; or~~

~~— is:~~

a partner or employee of our independent registered public accounting firm, or a director whose immediate family member is a partner of such firm or is employed by such firm and personally works on our audit; or

an employee (or has an immediate family member who is an executive officer) of another company that has made payments to Best Buy, or received payments from Best Buy, for property or services in an amount which, in any of the last three fiscal years, exceeds the greater of $1 million or 2% of such other company's consolidated gross revenues.

Under our director independence standards described above, the Board has determined that each director who served during any part of fiscal 2016 and each director nominee is independent, with the exception of Mr. Joly, our Chairman and CEO. The Board based these determinations primarily on a review of the responses of the directors to questions regarding employment and compensation history, affiliations, family and other relationships, and on discussions with our directors. As part of its determination of Mr. Anderson's independence, the Board considered his past employment relationship with us and determined that Mr. Anderson could be deemed independent as of November 2013, three years after the termination of his employment arrangement with the Company. Notwithstanding his independence under NYSE rules, in light of his past affiliation with the Company, the Board determined not to place Mr. Anderson on the Audit Committee, the Compensation and Human Resources Committee, or the Nominating, Corporate Governance and Public Policy Committee of the Board. Mr. Anderson informed the Board in March 2016 that he would not seek re-election and would retire from the Board effective at the Meeting.

The Board also reviewed our relationships with companies with which our directors are affiliated, including our relationship with IBM Corp., a company affiliated with Mr. Kenny. Mr. Kenny, a director since September 2013, was appointed to serve as General Manager of IBM Watson, a division of IBM Corp., in January 2016. Since 2000, IBM Corp. has provided I.T. services to us. The amounts we have paid to IBM Corp. were less than 2% of the annual consolidated revenue of each of Best Buy and IBM for each of the past three fiscal years. In addition, Mr. Kenny did not influence or participate in negotiating our agreements with IBM. The Board determined that the Company's relationship with IBM Corp. was not material and did not impair Mr. Kenny's independence.

~~Board Meetings and Attendance~~

During fiscal 2016, the Board held four regular meetings and three special meetings. Each incumbent director attended, in person or by telephone, at least 90% of the meetings of both the Board and committees on which he or she served. Directors are required to attend our Regular Meetings of Shareholders, and all of the then-serving directors attended the 2015 Meeting.

~~Executive Sessions of Independent Directors~~

In order to promote open discussion among independent directors, the Board has a policy of conducting executive sessions of independent directors during each regularly scheduled Board meeting. During fiscal 2016, our Lead Independent Director, Mr. Fradin, chaired the executive sessions of independent directors in accordance with our Corporate Governance Principles and consistent with NYSE rules regarding executive sessions.

~~Committees of the Board~~

The Board has the following four committees: the Audit Committee, the Compensation and Human Resources Committee (the "Compensation Committee"); the Finance and Investment Policy Committee; and the Nominating, Corporate Governance and Public Policy Committee (the "Nominating Committee"). The charters for each committee are posted on our website at ~~www.investors.bestbuy.com.~~ ~~The charters include information regarding each committee's composition, purpose and responsibilities.~~

The Board has determined that all members of the Audit Committee, Compensation Committee and Nominating Committee are independent directors as defined under the SEC and NYSE rules, and all members of the Compensation Committee are "outside directors" for purposes of Internal Revenue Code section 162(m). The Board has also determined that all of the members of the Audit Committee during fiscal 2016 qualified as audit committee financial experts under SEC rules.

~~The key responsibilities, fiscal 2016 membership and number meetings for each committee are set forth below:~~

	Board Structure
	•			Independent Chairman			•	All Independent Committees
~~Committee~~	~~Key Responsibilities~~ •	~~Fiscal 2016 Members~~	~~Number of Meetings held in Fiscal 2016~~	Annual Director Elections			•	No Director Related Party Transactions
~~Audit~~	•	~~Assists the~~		Robust Annual Board ~~in its oversight of:~~Evaluation Process	~~David W. Kenny*†~~	8	•	Director Overboarding Policy
Ÿ	~~the integrity of our financial statements and financial reporting processes;~~ •	~~J. Patrick Doyle†~~		Majority Vote for Directors			•	Director Retirement Policy
Ÿ	~~our internal accounting systems and financial and operational controls;~~	~~Karen A. McLoughlin†~~
Ÿ	~~the qualifications and independence of our independent registered public accounting firm;~~ Shareholder Rights				~~Tommy Millner†~~		Compensation
Ÿ	~~the performance of our internal audit function and our independent registered public accounting firm;~~ •	~~Gerard R. Vittecoq†~~		No Cumulative Voting Rights			•	Pay for Performance Compensation Programs
Ÿ	~~the preparation of a report as required by the SEC to be included in this proxy statement;~~ •			No Poison Pill			•	Annual Say-on-Pay Vote
Ÿ	our legal compliance and ethics programs, our legal, regulatory and risk oversight requirements, including the major risks facing the Company (including risks related to finance, operations and cyber-security), and our Code of Business Ethics. •
~~Compensation & Human Resources~~	Ÿ	Responsible for executive officer and director compensation, including the establishment of our executive officer and director compensation philosophies, evaluating the performance of our CEO, approving CEO and executive officer compensation, and preparation of a report as required by the SEC to be included in this proxy statement. Proxy Access By-Laws	Russell P. Fradin*	5
		~~Lisa M. Caputo~~
	Ÿ •	~~Responsible for succession planning and compensation-related risk oversight.~~	~~Kathy J. Higgins Victor~~
	Ÿ	~~Approves and oversees the development and evaluation of equity-based and other incentive compensation and certain other employee benefit plans.~~	~~David W. Kenny~~
~~Finance & Investment Policy~~	Ÿ	~~Provides oversight of, and advises the Board regarding, our financial policies and financial condition to help enable us to achieve our long-range goals.~~	Gerard R. Vittecoq*	8
	Ÿ	Evaluates and monitors the: (i) protection and safety of our cash and investments; (ii) achievement of reasonable returns on financial assets within acceptable risk tolerance; (iii) maintenance of adequate liquidity to support our activities; (iv) assessment of the cost and availability of capital; and (v) alignment of our strategic goals and financial resources.	Bradbury H. Anderson**
			~~J. Patrick Doyle~~
	Ÿ	~~Responsible for ensuring we have adequate liquidity and approving certain significant contractual obligations.~~	~~Karen A. McLoughlin~~
~~Nominating, Corporate Governance, & Public Policy~~	Ÿ	Reviews and recommends corporate governance principles to the Board, screens and presents qualified individuals for election to the Board, and oversees the evaluation of the performance of the Board and its committees.	Kathy J. Higgins Victor*	5
	Ÿ	~~Assists the Board with general corporate governance, including Board organization, membership, training and evaluation.~~	~~Lisa M. Caputo~~
	Ÿ	~~Oversees matters of public policy and corporate responsibility and sustainability that affect us domestically and internationally.~~	~~Tommy Millner~~


*	~~Chair~~


†	~~Designated as an "audit committee financial expert"~~

** Mr. Anderson informed the Board in March 2016 that he would not seek re-election and would retire from the Board effective at the Meeting.

~~In March 2016, the Board appointed Claudia F. Munce to the Audit Committee and Finance and Investment Policy Committee, effective March 15, 2016.~~

~~Board Risk Oversight~~

Our Board is responsible for oversight of enterprise risk. The Board considers enterprise risk factors as critical in its review of business strategy and performance and ensures that there is an appropriate balance of risk and opportunity.

The Board approaches its risk oversight responsibilities by reviewing management’s assessment of enterprise risks based on internal and external factors and ensuring appropriate Board oversight of ongoing management efforts to address those risks. Management is responsible for the day-to-day risk management processes, including assessing and taking actions necessary to manage risk incurred in connection with the operation of our business. Management then reviews significant enterprise risks and our general risk management strategy with the Board as follows:

Key strategic risk factors, such as the competitive environment, strategic prioritization, and global brand issues, are considered by the full Board as part of the Board’s overall review of the Company’s strategy and strategic plans.

Risks associated with our financial reporting processes, legal and regulatory compliance, data privacy and security (including cyber-security) and other operational matters are reviewed by our Audit Committee.

~~Risks associated with our compensation plans, benefits and management succession are reviewed by our Compensation Committee.~~

~~Risks associated with our investment portfolio, capital markets and liquidity are reviewed by our Finance and Investment Policy Committee.~~

~~Risks associated with our Board processes, corporate governance, public policy and social responsibility are reviewed by our Nominating Committee.~~

~~Risk items reviewed in Board committees are then escalated to the full Board as necessary.~~

The Audit Committee also oversees management's processes to identify and quantify the material risks that we face. In connection with its risk oversight role, the Audit Committee meets privately with representatives of our independent registered public accounting firm, our internal audit staff and our legal staff. Our internal audit staff, who report directly to the Audit Committee at least quarterly, assist management in identifying, evaluating and implementing risk management controls and procedures to address identified risks.

~~Compensation Risk Assessment~~

In connection with their oversight of compensation-related risks, Compensation Committee members annually review the most important enterprise risks to ensure that compensation programs do not encourage risk-taking that is reasonably likely to have a material adverse effect on us. As in past years, the review process in fiscal 2016 identified our existing risk management framework and the key business risks that may materially affect us, reviewed all compensation plans and identified those plans that are most likely to impact these risks or introduce new risks, and balanced these risks against our existing processes and compensation program safeguards. The review process also took into account mitigating features contained within our compensation plan design, which includes elements such as:

~~metric-based pay;~~

~~time matching performance periods;~~

~~payment for outputs;~~

~~goal diversification;~~

~~stock ownership guidelines;~~

~~payment caps; and~~

~~clawbacks.~~

The Compensation Committee also considered additional controls outside of compensation plan design which contribute to risk mitigation, including the independence of our performance measurement teams and our internal control environment.

~~Based upon the process we employed, the Compensation Committee determined that our compensation programs do not encourage risk-taking that is reasonably likely to result in a material adverse effect.~~

~~Board Evaluation Process~~

Our Nominating Committee oversees the evaluation of the performance of the Board, its committees and individual directors. On an annual basis, members of the Board complete a questionnaire evaluating the performance of the Board as a whole, each member’s respective committee, and the performance of the Chairman and Lead Independent Director. The questionnaire reflects responsibilities and roles as outlined within the Corporate Governance Principles and each committee’s respective charter, as well as more general performance-related questions. The Nominating Committee reviews the results of these questionnaires and determines whether the results warrant any action. The results and any proposed action are then shared with the full Board for further discussion and approval of final action plans.

In addition, the Chair of our Nominating Committee, the Board Chairman, and the Lead Independent Director conduct individual director assessments to review each director’s contributions to the Board during the past year and his or her performance against the director qualification standards and Board needs. As part of this process, the Nominating Committee Chair conducts confidential interviews with each director on an annual basis. The Nominating Committee also annually reviews the skills and qualifications of the Board members and the strategic goals of the Company to determine whether the skills on the Board continue to align with the Company’s strategy. The interviews, board composition analysis and individual assessments are utilized by the Nominating Committee to assess whether a director should continue to serve on the Board and stand for re-election at the next Regular Meeting of Shareholders and to otherwise address Board composition needs.

As part of the its annual review of the board evaluation process, the Nominating Committee decided to add a third-party evaluator component to the process on a periodic basis. In fiscal 2017, in addition to the process described above, the Nominating Committee has engaged an independent third-party consultant to conduct individual interviews with each director and perform a comprehensive analysis of the Board's evaluation process and overall effectiveness. The Committee anticipates utilizing this approach periodically to obtain independent assessments of its performance.

~~CEO Evaluation Process~~

Our Compensation Committee conducts a robust annual CEO evaluation process, consisting of both a performance review and a compensation analysis. The performance evaluation component includes an assessment of the Company's performance in light of set objectives, personal interviews with the individual Board members and the CEO's direct reports, 360 feedback evaluations provided by over 30 individuals who interact with the CEO, and a detailed CEO self-assessment. Separately, the Company's Human Resources consultant conducts extensive market research. CEO compensation market data is collected from Fortune 100 companies, the retail industry generally, and our peer group to ensure both market competitiveness and appropriateness of our CEO's compensation relative to his peers. The Compensation Committee's independent consultant reviews the market data and provides its recommendations to the Compensation Committee. Once all of the relevant performance and compensation data has been collected, the Compensation Committee meets in executive session to discuss the CEO's performance and compensation in order to finalize its recommendation to the Board. The Board then meets privately to discuss the Compensation Committee's findings and recommendations and makes the final decision on CEO performance and compensation. Our Chairman and CEO abstains from participating in all related discussions of the Compensation Committee and Board prior to delivery of the final assessment.

~~Director Orientation and Continuing Education~~

Our Nominating Committee oversees the orientation and continuing education of our directors. Director orientation familiarizes directors with our strategic plans, significant financial, accounting and risk management issues, compliance programs, policies, principal officers, internal auditors and our independent registered public accounting firm. The orientation also addresses Board procedures, director responsibilities, our Corporate Governance Principles and our Board committee charters.

We also offer continuing education programs and provide opportunities to attend commercial director education seminars outside of the Company to assist our directors in maintaining their expertise in areas related to the work of the Board and the directors' committee assignments.

In fiscal 2016, the Board provided director orientation to Ms. McLoughlin, offered refreshment orientation to the other Board members and scheduled its annual continuing education seminar for the full Board on the topics of cybersecurity and privacy to be held in June 2016.

Anti-Hedging and Anti-Pledging Policies

•

No Exclusive Forum/Venue or Fee-Shifting Provisions

•

Clawback Policy for both Cash and Equity Awards

•

No Supermajority Voting Provisions in our Articles of Incorporation (“Articles”)

•

Stock Ownership Guidelines for Directors and Executives

Additional information on our Corporate Governance policies and practices can be found in the Corporate Governance at Best Buy section of this proxy statement.

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Environment, Social & Governance

Our Board, with oversight by the Nominating, Corporate Governance and Public Policy Committee, is integrally involved in the Company’s environmental, social and governance (“ESG”) initiatives. We are an organization built upon values-driven leadership and we are focused on our purpose to enrich lives through technology. We continue to focus on issues in which we have the most significant impact, such as climate change, e-waste and the technology education gap. We are honored to be recognized for the progress we have made in building a better world with all of our stakeholders. Please see our annual ESG Report, available at www.Corporate.BestBuy.com/our-commitments/ under “About Us” for more details. We anticipate our Fiscal Year 2022 report will be published in June 2022.

Additional information regarding our purpose and programs relating to our ESG efforts can be found in the Corporate Governance at Best Buy — Environment, Social & Governance section of this proxy statement.

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Item No. 1: Election of Directors

The following individuals are standing for election to our Board. The Board recommends a vote FOR each of the nominees. All nominees are current members of the Board.

The Board seeks a wide range of experience and expertise from a variety of industries and professional disciplines in its directors and carefully assesses and plans for the director skill sets, qualifications and diverse perspectives required to support the Company’s long-term strategic goals. Our slate of director nominees reflects the strong results of these efforts.

Corie Barry

CEO, Best Buy Co., Inc

2019

White

Female

Lisa M. Caputo

Independent

Executive Vice President, Marketing, Communications & Customer Experience Officer, The Travelers Companies, Inc.

2009

White

Female

J. Patrick Doyle

Independent

Chairman

Executive Partner, The Carlyle Group

2014

White

Male

David W. Kenny

Independent

CEO, Nielsen

2013

White

Male

Mario J. Marte

Independent

Chief Financial Officer, Chewy, Inc.

2021

Hispanic/

Latinx

Male

M (F)

Karen A. McLoughlin

Independent

Chief Financial Officer (Former), Cognizant Technology Solutions Corporation

2015

White

Female

M (F)

Thomas L. Millner

Independent

CEO (Former), Cabela’s, Inc.

2014

White

Male

C (F)

Claudia F. Munce

Independent

Venture Advisor, New Enterprise Associates

2016

Asian

Female

Richelle P. Parham

Independent

President, Global E-Commerce & Business Development, Universal Music Group

2018

African

American/

Black

Female

Steven E. Rendle

Independent

Chairman, President & CEO, VF Corp.

2021

White

Male

Eugene A. Woods

Independent

President & CEO, Atrium Health

2018

African

American/

Black

Hispanic/

Latinx

Multi Racial

Male

Key: AC = Audit Committee; CC = Compensation & Human Resources Committee; FC = Finance & Investment Policy Committee; NC = Nominating, Corporate Governance & Public Policy Committee; M = Member; C = Chair; (F) = Audit Committee Financial Expert

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Additional information about each of our nominees and director qualification and nomination process can be found in Item of Business No. 1 — Election of Directors.

Item No. 2: Appointment of Independent Registered Public Accounting Firm

The Board recommends a vote FOR ratification of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending January 28, 2023.

Deloitte & Touche LLP (“D&T”) served as our auditors for fiscal 2022. Our Audit Committee has selected D&T to audit our financial statements for fiscal 2023 and is submitting its selection of our independent registered public accounting firm for ratification by the shareholders in order to ascertain the view of our shareholders on this selection. The following table summarizes the aggregate fees incurred for services rendered by D&T during fiscal 2022 and fiscal 2021. Additional information can be found in Item of Business No. 2 — Ratification of Appointment of our Independent Registered Public Accounting Firm.

Service Type	Fiscal 2022	Fiscal 2021
Audit Fees	$3,135,000	$2,973,000
Audit-Related Fees	1,034,000	368,000
Tax Fees	150,000	—
Total Fees	$4,319,000	$3,341,000

Item No. 3: Say-on-Pay: Advisory Vote to Approve Named Executive Officer Compensation

The Board recommends a vote FOR approval of our named executive officer (“NEO”) compensation.

Our shareholders have consistently strongly supported our executive compensation program. For the last five years, our average Say-on-Pay vote has been 95.4%. We believe this support reflects our strong pay-for-performance philosophy, our commitment to sound compensation policies, and our active engagement and open dialogue with our shareholders. The Compensation Committee regularly takes feedback received from shareholders into consideration when making decisions regarding our executive compensation program.

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Our executive compensation program contains the following elements:

Compensation Component	Key Characteristics	Purpose
Base Salary	Cash	Provide competitive, fixed compensation to attract and retain executive ~~officers~~talent.
Short-Term Incentive	Cash award paid based on achievement of various performance metrics	Create a strong financial incentive for achieving or exceeding Company performance goals.
Long-Term Incentive	Stock options, performance-conditioned time-based restricted shares, time-based restricted shares and ~~Board members are prohibited from pledging Company securities as collateral~~performance share awards	Create a strong financial incentive for ~~a loan or from holding Company securities in a margin account.~~increasing shareholder value, encourage ownership stake, and promote retention.

Pay is tied to performance. The majority of target executive compensation is not guaranteed and is based on performance metrics designed to drive shareholder value, as summarized below for the CEO and other NEOs (excluding the CEO).

Additional information can be found in Item of Business No. 3 — Advisory Vote to Approve Named Executive Officer Compensation and the Compensation Discussion and Analysis sections of this proxy statement.

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BEST BUY CO., INC.

7601 Penn Avenue South

Richfield, Minnesota 55423

PROXY STATEMENT

REGULAR MEETING OF SHAREHOLDERS — JUNE 9, 2022

GENERAL INFORMATION

This proxy statement is furnished in connection with the solicitation of proxies by the Board of Directors (“Board”) of Best Buy Co., Inc. (“Best Buy,” “we,” “us,” “our” or the “Company”) to be voted at our 2022 Regular Meeting of Shareholders (the “Meeting”) to be held virtually on Thursday, June 9, 2022, at 9:00 a.m., Central Time, at www.virtualshareholdermeeting.com/BBY2022 or at any postponement or adjournment of the Meeting. On or about April 27, 2022, we mailed or made available our proxy materials, including the proxy statement, our Annual Report and form of proxy or the Notice of Internet Availability.

Background

What is the purpose of the Meeting?

At the Meeting, shareholders will vote on the items of business outlined in the Notice of 2022 Regular Meeting of Shareholders (“Meeting Notice”) included as the cover page to this proxy statement. In addition, management will provide a brief update on our business and respond to questions from shareholders.

Why did I receive this proxy statement and a proxy card or the Notice of Internet Availability?

You received this proxy statement and a proxy card or the Notice of Internet Availability because you owned shares of Best Buy common stock as of April 11, 2022, the record date for the Meeting and are entitled to vote on the items of business at the Meeting. This proxy statement describes the items of business that will be voted on at the Meeting and provides information on these items so that you can make an informed decision.

How can I attend the Meeting?

You can attend the meeting online by logging on to www.virtualshareholdermeeting.com/BBY2022 and following the instructions provided on your proxy or notice card.

How will the Meeting be conducted?

The Meeting will be conducted online, in a fashion similar to an in-person meeting. Our board members and executive officers will attend the Meeting and be available for questions. You will be able to attend the Meeting online, vote your shares electronically, and submit your questions during the Meeting by visiting our virtual shareholder forum at: www.virtualshareholdermeeting.com/BBY2022 and following the instructions on your proxy card.

How can I ask questions during the Meeting?

Questions may be submitted prior to the Meeting through our virtual shareholder forum at www.virtualshareholdermeeting.com/BBY2022, or you may submit questions in real time during the meeting through the forum. We are committed to acknowledging questions we receive in the time allotted. We will allot approximately fifteen minutes for questions during the Meeting and submitted questions should follow our Rules of Conduct for the meeting in order to be addressed during the Meeting. If we are unable to answer your question during the Meeting due to time constraints, you are encouraged to contact the Best Buy Investor Relations department at investorrelations@bestbuy.com. Our Rules of Conduct are posted on the forum.

What can I do if I need technical assistance during the Meeting?

If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, please call the technical support number that will be posted on the virtual shareholder meeting log-in page.

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If I can’t attend the Meeting, can I vote or listen to it later?

You do not need to attend the online Meeting to vote if you submitted your vote via proxy in advance of the meeting. A replay of the Meeting, including the questions answered during the meeting, will be available on www.investors.bestbuy.com.

Who may vote?

In order to vote at the Meeting, you must have been a shareholder of record of Best Buy as of the close of business on Monday, April 11, 2022, which is the record date for the Meeting. If your shares are held in “street name” (that is, through a bank, broker or other nominee), you will receive instructions from the bank, broker or nominee that you must follow in order for your shares to be voted as you choose.

When is the record date?

The Board has established the close of business on Monday, April 11, 2022, as the record date for the Meeting.

How many shares of Best Buy common stock are outstanding?

As of the record date, there were 224,967,724 shares of Best Buy common stock outstanding. There are no other classes of capital stock outstanding.

Voting Procedures

What am I voting on, how many votes are required to approve each item, how are votes counted and how does the Board recommend I vote:

Item 1 - The Board recently strengthened the policy by removing the ability for the Compensation Committee to approve exceptions in advance. In addition, all employees and Board members are prohibited from hedging Company securities, including by way of forward contracts, equity swaps, collars, exchange funds or otherwise.

~~Director Stock Ownership~~

~~Our stock ownership guidelines require each of our non-management directors to own 10,000 shares. We expect that until each director's ownership target is met, he or she will retain: (i) 50%~~election of the ~~shares received upon the exercise of a stock option; and (ii) 50% of shares (net of taxes) issued~~11 director nominees listed in connection with the lapse of restrictions on restricted stock awards. The ownership target does not need to be met within a certain timeframe and our directors are considered in compliance with the guidelines as long as progress towards the ownership target is being made, consistent with the expectations noted above. Beginning in fiscal 2014, we required all directors to hold all shares granted to them during their Board tenure until their service on the Board ends. In fiscal 2016, all of our non-management directors were in compliance with the ownership guidelines.

~~Our stock ownership guidelines for executive officers are discussed in the~~ ~~Executive and Director Compensation —Compensation Discussion and Analysis — Executive Compensation Elements — Other Compensation~~ ~~section.~~

~~Shareholder Engagement~~

We regularly engage with our shareholders on a variety of topics throughout the year to ensure we are addressing their questions and concerns, to seek input and to provide perspective on Company policies and practices. We have taken several actions in recent years in consideration of shareholder feedback elicited during this process, including: declassification of our Board, the determination to hold the advisory vote on our executive compensation on an annual basis, adjustments to the director appointments on our Board committees, and the development of our corporate social responsibility program and reporting. We also continue to facilitate direct shareholder communication with management and members of our Board and the ability to easily access and obtain information regarding our Company on our website at ~~www.investors.bestbuy.com. Please see~~ ~~Executive and Director Compensation — Introduction~~ ~~for more information regarding actions taken as a result of shareholder feedback received on our prior year's executive compensation decisions.~~proxy statement

~~Public Policy~~

As a leading global retailer and corporate citizen, we believe that it is important to work with policymakers on issues impacting our customers, employees, businesses, shareholders and communities. We know that collaboration helps bring about change that better serves our communities where we live and work. Our public policy work directly aligns with our aspiration to be environmentally and socially accountable for our brands and business operations worldwide. In fiscal 2016, our public policy priorities included: marketplace fairness, privacy, connectivity, financial services, energy, environment and supply chain. More information about these priorities, as well as our annual political activity reports and related policies can be found at ~~https://corporate.bestbuy.com~~ ~~under "Government Affairs."~~

~~Communications with the Board~~

Shareholders and interested parties who wish to contact the Board, any individual director, or the independent directors as a group, are welcome to do so in writing, addressed to such person(s) in care of:

~~Mr. Keith J. Nelsen~~

~~General Counsel and Secretary~~

~~Best Buy Co., Inc.~~

~~7601 Penn Avenue South~~

~~Richfield, Minnesota 55423~~

Mr. Nelsen will forward all written shareholder correspondence to the appropriate director(s), except for spam, junk mail, mass mailings, customer complaints or inquiries, job inquiries, surveys, business solicitations or advertisements, or patently offensive or otherwise inappropriate material. Mr. Nelsen may, at his discretion, forward certain correspondence, such as customer-related inquiries, elsewhere within the Company for review and possible response. Comments or questions regarding our accounting, internal controls or auditing matters will be referred to the Audit Committee. Comments or questions regarding

the nomination of directors and other corporate governance matters will be referred to the Nominating Committee. Comments or questions regarding executive compensation will be referred to the Compensation Committee.

~~Corporate Governance Website~~

~~If you would like additional information about our corporate governance practices, you may view the following documents at~~ ~~www.investors.bestbuy.com~~ ~~in the~~ ~~Corporate Governance~~ ~~section.~~

~~Amended and Restated Articles of Incorporation~~

~~Amended and Restated By-laws~~

~~Corporate Governance Principles~~

~~Audit Committee Charter~~

~~Compensation and Human Resources Committee Charter~~

~~Finance and Investment Policy Committee Charter~~

~~Nominating, Corporate Governance and Public Policy Committee Charter~~

~~Code of Business Ethics~~

~~Best Buy Co., Inc. 2014 Omnibus Incentive Plan~~

~~Policy for Shareholder Nomination of Candidates to Become Directors of the Company~~

~~Process for Communication with the Board~~

~~ITEM OF BUSINESS NO. 1 — ELECTION OF DIRECTORS~~

~~General Information~~

~~Our By-laws provide that our Board consist of one or more directors and that the number of directors may be increased or decreased from time to time by the~~The affirmative vote of a majority of votes cast with respect to the ~~directors serving at the time that the action is taken.~~director.

“FOR”

“AGAINST”

“ABSTAIN”

FOR

None

Item 2 – The number of directors on our Board is reviewed and set by our Board no less often than annually. In March 2016, the Board set the number of directors at eleven, based on the number of directors currently serving. After Mr. Anderson's retirement at the Meeting, the Board intends to reduce the number of directors to ten. The Board will continue to evaluate the sizeratification of the ~~Board and make adjustments~~appointment of Deloitte & Touche LLP as ~~needed to meet the current and future needs of the Company.~~

~~Director Qualification Standards~~

In seeking new board members, we focus on adding new skills and experiences necessary to oversee the Company's business strategy and fulfill the Board's risk oversight obligations. Our objective is to identify and retain directors that can effectively develop the Company's strategy and oversee management's execution of that strategy. We only consider director candidates who embody the highest standards of personal and professional integrity and ethics and are committed to a culture of transparency and open communication at the Board level and throughout the Company. Successful candidates are dedicated to accountability and continuous improvement with a belief in innovation as a key business success factor. They are also actively engaged and have an innate intellectual curiosity and entrepreneurial spirit.

As part of its annual evaluation process for director nominees, the Nominating Committee considers other criteria, including the candidate's history of achievement and superior standards, ability to think strategically, willingness to share examples based upon experience, policy-making experience, and ability to articulate a point-of-view, take tough positions and constructively challenge management. Directors must also be committed to actively engaging in their Board roles, with sufficient time to carry out the duties of Board and Board committee membership. Finally, one or more of our ~~directors must possess the education or experience required to qualify as an "audit committee financial expert" pursuant to SEC rules.~~

Our Corporate Governance Principles establish our policy of considering diversity in the director identification and nomination process. When considering Board candidates, the Nominating Committee seeks nominees with a broad range of experience from a variety of industries and professional disciplines, such as finance, academia, law and government, along with a diversity of gender, ethnicity, age and geographic location. The Nominating Committee does not assign specific weights to particular criteria, and no particular criterion is necessarily applied to all prospective nominees. When the Nominating Committee identifies an area of which the Board may benefit from greater representation, it may focus its candidate search on particular experience, background or diversity characteristics, including gender, ethnic and geographical attributes. The Board believes that diversity in the backgrounds and qualifications of Board members ensures the mix of experience, knowledge and abilities necessaryindependent registered public accounting firm for the ~~Board to fulfill its responsibilities and leads to a more effective oversight and decision-making process.~~fiscal year ending January 28, 2023

The grid below summarizes the key qualifications, skills and attributes each of our directors possess that were most relevant to the decision to nominate him or her to serve on the Board. The lack of a mark does not mean the director does not possess that qualification or skill; rather a mark indicates a specific area of focus or expertise on which the Board relies most heavily. Each director’s biography describes these qualifications and relevant experience in more detail.



	~~Caputo~~	~~Doyle~~	~~Fradin~~	~~Higgins Victor~~	~~Joly~~	~~Kenny~~	~~McLoughlin~~	~~Millner~~	~~Munce~~	~~Vittecoq~~
~~Academia / Education~~	ü			ü
~~Significant experience in roles at one or more academic institutions; helpful in bringing thought leadership to the development of our business strategy~~
~~Business Operations~~		ü	ü		ü	ü		ü	ü	ü
~~Experience in an operational role with one or more businesses; provides understanding to assess our business strategy and execution~~
~~Chief Executive Officer~~		ü	ü		ü	ü		ü
~~Past or current service as a chief executive in a for-profit company; provides an enhanced ability to support our CEO and develop our leadership team~~
~~Corporate Governance~~	ü		ü	ü
~~Experience in managing or advising on corporate governance matters for corporations; supports our objective to have corporate governance practices that reflect industry best practices~~
~~Customer Engagement / Marketing~~	ü	ü			ü	ü		ü
~~Past or current service in a senior marketing position; important in understanding and assessing the needs of our customers~~
~~Digital /~~ ~~E-commerce~~	ü	ü			ü	ü		ü	ü
~~Digital /~~ ~~E-commerce~~	~~Overseeing part or all of a significant E-commerce business; relevant to the development of our omni-channel strategy~~
~~Finance~~		ü	ü		ü	ü	ü	ü		ü
~~Having served as or overseen a senior financial officer; important to oversee and understand our financial statements, capital structure and internal controls~~
~~Government / Public Policy~~	ü
~~Having held one or more significant positions in local, state or federal government; valuable in assessing the impact of new regulations on our industry~~
~~Investments / Venture Capital~~			ü						ü
~~Having held a significant position with an investment or venture capital firm; relevant to evaluating our growth, innovation, and investment strategies~~
~~Professional Services~~			ü		ü	ü	ü
~~Experience in overseeing or managing a professional services business; important in understanding the needs of our services strategy~~
~~Retail / Consumer Services~~	ü	ü		ü	ü	ü		ü
~~Experience at a major retailer or consumer services-oriented business; important in understanding our industry, business needs and strategic goals~~
~~Talent Management~~			ü	ü
~~Current or past experience managing or advising human resource functions; helpful to our efforts to attract, retain, and motivate talent within the Company~~
~~Technology~~			ü		ü	ü	ü		ü
~~Having served a senior technology role or a senior role in a technology company; important as we assess our technology needs and those of our customers~~

~~Director Nomination Process~~

The Nominating Committee is responsible for screening and recommending to the full Board director candidates for nomination. The Nominating Committee often engages a third-party search firm to assist in identifying appropriate candidates to consider as additions to our Board. When the Board is seeking to fill an open director position, the Nominating Committee will also consider nominations received from our shareholders, provided that proposed candidates meet the requisite director qualification standards discussed within this section of our proxy statement.

~~When the Board elects to add a director to the Board, the Nominating Committee will announce the search and post any additional search criteria on our website at~~ ~~www.investors.bestbuy.com. Candidates recommended by shareholders, if qualified, will be considered in the same manner as any other candidate.~~

The Nominating Committee will then evaluate the resumes of any qualified candidates recommended by search firms or shareholders, as well as by members of the Board. All candidates are evaluated based on the qualification standards discussed above and the current and future needs of the Board.

Shareholder nominations must be accompanied by a candidate resume that addresses the extent to which the nominee meets the director qualification standards and any additional search criteria posted on our website. Nominations will be considered only if we are then seeking to fill an open director position. All nominations by shareholders should be submitted as follows:

~~Chair, Nominating, Corporate Governance and Public Policy Committee~~

~~c/o Mr. Keith J. Nelsen~~

~~General Counsel and Secretary~~

~~Best Buy Co., Inc.~~

~~7601 Penn Avenue South~~

~~Richfield, Minnesota 55423~~

~~Voting Information~~

You may vote for all, some or none of the nominees for election to the Board. However, you may not vote for more individuals than the number nominated. Each of the nominees has agreed to continue serving as a director if elected. However, if any nominee becomes unwilling or unable to serve and the Board elects to fill the vacancy, the Proxy Agents named in the proxy will vote for an alternative person nominated by the Board. Our Articles prohibit cumulative voting, which means you can vote only once for any nominee. The affirmative vote of a majority of the ~~votes cast~~voting power of the shares present in person or represented by proxy and entitled to vote on this item of business or, if greater, the vote required is a majority of the voting power of the minimum number of shares entitled to vote that would constitute a quorum at the Annual Meeting.

FOR

Yes

Against

Item 3 - The non-binding advisory vote to approve our named executive officer compensation

FOR

Against

(1)	If you are a record holder and you sign and submit your proxy card without indicating your voting instructions, your shares will be voted in accordance with ~~respect to~~ the Board’s recommendation.

(2)

A broker non-vote will not count as a vote for or against a director ~~is required to elect a director.~~

~~PROXY CARDS THAT ARE PROPERLY EXECTUED WILL BE VOTED FOR THE ELECTION OF ALL OF THE NOMINEES UNLESS OTHERWISE SPECIFIED.~~

~~Board Voting Recommendation~~

~~The Board recommends that shareholders vote~~ ~~FOR~~and will have no effect on the outcome of the election of the 11 director nominees disclosed in this proxy statement. A broker non-vote will have no effect on Items 2 and 3 unless a majority of the voting power of the minimum number of shares entitled to vote that would constitute a quorum at the Meeting is required in order to approve the item as described in the “Vote Required” column above, in which case a broker non-vote will have the same effect as a vote “Against”.

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How do I vote?

If you are a shareholder of record (that is, if your shares are owned in your name and not in “street name”), you may vote:

Via the internet at www.proxyvote.com;

By telephone (within the U.S. or Canada) toll-free at 1-800-690-6903;

By mail, by signing and returning the enclosed proxy card if you have received paper materials; or

By attending the virtual Meeting and voting online at www.virtualshareholdermeeting.com/BBY2022.

If your shares are held in a brokerage account by a broker, bank or other nominee, you should follow the voting instructions provided by your broker, bank or other nominee.

If you wish to vote by telephone or via the internet, you must do so before 11:59 p.m., Eastern Time, on Wednesday, June 8, 2022. After that time, telephone and internet voting on www.proxyvote.com will not be permitted and any shareholder of record wishing to vote thereafter must vote online during the Meeting. Shareholders of record will be verified online by way of the personal identification number included on your proxy or notice card. Voting by a shareholder during the Meeting will replace any previous votes submitted by proxy.

We have made all proxy materials available via the internet. However, you may opt to receive paper copies of proxy materials, at no cost to you, by following the instructions contained in the Notice of Internet Availability that we have mailed to most shareholders. We encourage you to take advantage of the option to vote your shares electronically through the internet or by telephone. Doing so will result in cost savings for the Company.

How are my voting instructions carried out?

When you vote via proxy, you appoint the Chairman of the Board, J. Patrick Doyle, and the Secretary of the Company, Todd G. Hartman (collectively, the “Proxy Agents”), as your representatives to vote at the Meeting. The Proxy Agents will vote your shares at the Meeting, or at any postponement or adjournment of the Meeting, as you have instructed them on the proxy card. If you return a properly executed proxy card without specific voting instructions, the Proxy Agents will vote your shares in accordance with the Board’s recommendations as disclosed in this proxy statement. If you submit a proxy, your shares will be voted regardless of whether you attend the Meeting. Even if you plan to attend the Meeting, it is advisable to vote your shares via proxy in advance of the Meeting in case your plans change.

How many votes do I have?

You have one vote for each share you own, and you can vote those shares for each item of business to be addressed at the Meeting.

How many shares must be present to hold a valid Meeting?

Vote prior to the Meeting via the internet or by telephone;

Properly submit a proxy card (even if you do not provide voting instructions); or

Vote while attending the Meeting online.

Abstentions and shares represented by “broker non-votes,” as described below, are counted as present and entitled to vote for purposes of determining a quorum.

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What if I change my mind after I vote via proxy?

If you are a shareholder of record, you may revoke your proxy at any time before your shares are voted by:

Submitting a later-dated proxy prior to the Meeting (by mail, internet or telephone);

Voting online during the Meeting (attendance will not, by itself, revoke a proxy); or

Providing written notice of revocation to Best Buy’s Secretary at our principal office at any time before your shares are voted.

If your shares are held in a brokerage account by a broker, bank or other nominee, you should follow the instructions provided by your broker, bank or other nominee.

Who will count the vote?

Representatives of Broadridge will tabulate the vote and act as the inspector of elections.

Where can I find the voting results of the Meeting?

We plan to publish the final voting results in a Current Report on Form 8-K (“Form 8-K”) filed within four business days after the date of the Meeting. If final voting results are not available within the four business day timeframe, we plan to file a Form 8-K disclosing preliminary voting results within the required four business days, to be followed as soon as practicable by an amendment to the Form 8-K containing final voting results.

Proxy Solicitation

How are proxies solicited?

Who will pay for the cost of soliciting proxies?

How can multiple shareholders sharing the same address request to receive only one set of proxy materials and other investor communications?

You may elect to receive future proxy materials, as well as other investor communications, in a single package per address. This practice, known as “householding,” is designed to reduce our paper use and printing and postage costs. To make the election, please indicate on your proxy card under “Householding Election” your consent to receive such communications in a single package per address. Once we receive your consent, we will send a single package per household until you revoke your consent or request separate copies of our proxy materials by notifying our Investor Relations Department in writing at 7601 Penn Avenue South, Richfield, MN, 55423, or by telephone at 612-291-6147. We will start sending you individual copies of proxy materials and other investor communications following receipt of your revocation.

Can I receive the proxy materials electronically?

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An electronic version of this proxy statement is posted on our website at www.investors.bestbuy.com.

Additional Information

Where can I find additional information about Best Buy?

Our reports on Forms 10-K, 10-Q and 8-K and other publicly available information should be consulted for other important information about Best Buy. You can find these reports and additional information about us on our website at www.investors.bestbuy.com.

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CORPORATE GOVERNANCE AT BEST BUY

Our Board is committed to developing and implementing corporate governance principles that: (1) enable the success of our strategy and business objectives; (2) are rooted in a robust ongoing dialogue with our shareholders; and (3) are inspired by best practices. Consistent with this approach, we continue to build upon a strong framework of corporate governance practices. Shareholder perspectives play an important role in that process. Some key aspects of our current Board and governance structure and practices are as follows:

	Board Leadership & Composition
	•			Our Board is currently led by an independent Chairman. A Lead Independent Director ensures independent oversight of management whenever our Chairman is not independent.
	•			All of our director nominees, other than the CEO, are independent.
	•			Our Board places an emphasis on diverse representation among its members. Five of our eleven director nominees are women and four of our eleven nominees are ethnically diverse.
	•			The average tenure of our director nominees is approximately 5.8 years, with a balance of skills, new perspectives and historical knowledge.
	•			All Committees are comprised exclusively of independent directors.
	•			Our directors are required to retire at the expiration of their term during which they reach the age of 72, and must tender their resignation for consideration: (a) five years after ceasing the principal career they held when they joined our Board, (b) when their principal employment, public company board membership or other material affiliation changes, and (c) if they receive less than a majority of votes cast for his or her election.
	Board Accountability
	•			We conduct a robust annual Board, individual director and CEO evaluation process, and periodically engage an independent third party to provide independent assessments of Board and director performance. The next independent consultant-managed evaluation and assessment is currently underway for fiscal 2023.
	•			None of our directors are involved in a material related party transaction.
	•			Our directors and officers are prohibited from hedging and pledging Company securities.
	•			Our directors and executive officers are required to comply with stock ownership guidelines.
	•			Our Board has adopted Corporate Governance Principles as part of its commitment to good governance practices. These principles are available on our website at www.investors.bestbuy.com.
	Shareholder Rights & Engagement
	•			We have never adopted a shareholder rights plan (commonly known as a “Poison Pill”).
	•			We have proxy access provisions consistent with market practice (3/3/20/20).
	•			We have no exclusive forum/venue or fee-shifting provisions.
	•			We have no cumulative voting rights and our only class of voting shares is our common stock.
	•			A shareholder(s) holding 10% of the voting shares of our stock may call a special meeting (or 25% if the special meeting relates to a business combination or change in our Board composition).
	•			We do not have supermajority shareholder vote requirements in our Articles.
	•			We regularly engage with shareholders to solicit feedback, address questions and concerns and provide perspective on Company policies and practices.

In this section of our proxy statement, we provide detail on specific aspects of our Corporate Governance program, policies and practices, as well as additional information on the operations and composition of our Board.

Board Leadership

During fiscal 2022, our Board was led by our independent Chairman, Mr. Doyle. In March 2022, the Board appointed Mr. Doyle to continue his service as Chairman for fiscal 2023. Additional leadership roles continue to be filled by other directors, all of whom are independent and play an active role in our strategic planning, risk oversight and governance.

Under our Corporate Governance Principles, in circumstances where the Chairperson of the Board is not independent, the Board considers it to be useful and appropriate to designate a Lead Independent Director to coordinate the activities of the other independent directors and to perform such other duties and responsibilities as

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the Board may determine. Our Lead Independent Director is nominated by the Nominating, Corporate Governance and Public Policy Committee, and final selection is subject to ratification by the vote of a majority of the independent directors on the Board. The Lead Independent Director serves for an annual term beginning at the Board meeting following the first regular meeting of shareholders at which directors are elected.

The Board leadership duties and responsibilities are outlined below and in our Corporate Governance Principles, which are also posted online at www.investors.bestbuy.com.

Our Chairman is responsible for:

Setting the agenda for Board meetings (in partnership with the CEO) and presiding over and leading discussion at meetings of the full Board;

Presiding over the Company’s regular meeting of shareholders;

Presiding at executive sessions of independent directors, which take place at each regular Board meeting (when there is no independent Chairman, the Lead Independent Director is responsible for this duty);

Setting the Board meeting calendar and leading oversight activities of the Board;

Overseeing the Company’s strategic planning process to create alignment with the Board and management and supporting execution of the strategy;

Assisting the Board with its oversight of the Company’s risks;

Speaking on behalf of the Company to both internal and external stakeholders, as appropriate; and

Serving as the Board’s liaison to management.

In times when our Chairman is not independent, our Lead Independent Director performs the following duties:

Partners with the Chairman (and CEO) to set the Board meeting agenda;

Presides at all Board meetings at which the Chairman is not present;

Calls additional meetings of the independent directors, as appropriate;

Serves as a liaison between the independent directors and our stakeholders by being available for direct consultation and communication;

Provides ongoing counsel to the Chairman regarding key items of business and overall Board functions; and

Performs any other duties requested by the Board, the independent directors or the Chairman.

Board Composition

The Board seeks a wide range of experience and expertise from a variety of industries and professional disciplines in its directors. It carefully assesses the director skill sets, qualifications and diverse perspectives required to support the Company’s long-term strategic goals, and for an orderly succession and transition of directors, as evidenced by the composition changes over the past seven years. We believe our Board should be composed of individuals with highly relevant skills, independence, integrity, sound judgment, proven records of accomplishments and diverse genders, ethnicities, ages and geographic locations. In addition, the Board emphasizes independent voices and adding new perspectives to its membership. Ten of our eleven director nominees are independent, and the average tenure of our director nominees is 5.8 years. More information regarding our Director Qualification Standards and Director Nomination Process can be found within Item 1 of this proxy statement.

Director Independence

Pursuant to our Corporate Governance Principles, the Board has established independence standards consistent with the requirements of the SEC and NYSE. To be considered independent under the NYSE rules, the Board must affirmatively determine that a director or director nominee does not have a material relationship with us (directly, or as a partner, shareholder or officer of an organization that has a relationship with us). In addition, each member of the Compensation and Human Resources Committee must meet a standard of “enhanced independence” such that the Board must consider the source of compensation of the director and whether the director is affiliated with us or one of our subsidiaries to determine whether there are any factors that would materially affect a director’s ability to be independent, specifically in regard to their duties as a Compensation and Human Resources Committee member.

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Our Director Independence Guidelines, consistent with the NYSE rules, generally provide that no director or director nominee may be deemed independent if the director or director nominee:

—	has in the past three years:

been an employee of Best Buy;

had an immediate family member who was an executive officer of Best Buy;

been (or whose immediate family member has been) employed as an executive officer of another company whose compensation committee at that time included a present executive officer of Best Buy; or

—	is currently:

an employee (or has an immediate family member who is an executive officer) of another company that has made payments to Best Buy, or received payments from Best Buy, for property or services in an amount which, in any of the last three fiscal years, exceeded the greater of $1 million or 2% of such other company’s consolidated gross revenues.

Under our director independence standards described above, the Board has determined that each director who served during any part of fiscal 2022 and each director nominee is independent, with the exception of Ms. Barry, our CEO. The Board based these determinations primarily on a review of the responses of the directors to questions regarding employment and compensation history, affiliations, family and other relationships and on discussions with our directors.

As part of its independence analysis, the Board reviewed our relationships with companies with which our directors are affiliated. As part of that review, the Board considered our relationship with Nielsen, a company affiliated with Mr. Kenny. Mr. Kenny, a director since September 2013, serves as CEO and a director of Nielsen. Since 1999, Nielsen has provided us with data analytics services. The amounts we have paid to Nielsen were less than 2% of the annual consolidated gross revenues of Nielsen for each of the past three fiscal years. In addition, Mr. Kenny did not influence or participate in negotiating our agreements with Nielsen. The Board determined that the Company’s relationship with Nielsen was not material and did not impair Mr. Kenny’s independence.

Board Meetings and Attendance

During fiscal 2022, the Board held four regular meetings. Each incumbent director attended, in person or by telephone, at least 75% of the meetings of both the Board and committees on which he or she served. Directors are required to attend our regular meetings of shareholders, and all of our director nominees that were then directors attended the 2021 Meeting either in-person or virtually.

Executive Sessions of Independent Directors

Our independent directors, led by Mr. Doyle, meet in executive sessions of independent directors during each regularly scheduled Board meeting. Independent directors use these sessions as a forum for open discussion about the Company, our senior management, and any other matters they deem appropriate.

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Committees of the Board

The Board has four committees: Audit, Compensation and Human Resources (the “Compensation Committee”), Finance and Investment Policy, and Nominating, Corporate Governance and Public Policy (the “Nominating Committee”). The charters for each committee are posted on our website at www.investors.bestbuy.com. The charters are reviewed annually and include information regarding each committee’s composition, purpose and responsibilities.

The Board has determined that all members of the Audit Committee, Compensation Committee and Nominating Committee are independent as defined under the SEC and NYSE rules. The Board has also determined that, during fiscal 2022, three of the five members of the Audit Committee qualified as audit committee financial experts under SEC rules, and that each of the members of the Audit Committee has accounting and related financial management expertise in accordance with the NYSE listing standards.

The key responsibilities, fiscal 2022 membership and number of meetings held in fiscal 2022 for each committee are set forth below:

Audit

•

Assists the Board in its oversight of:

Thomas L.

Millner*†

Mario J.

Marte†

Karen A.

McLoughlin†

Claudia F.

Munce

Steven E.

Rendle

•

the integrity of our financial statements and financial reporting processes;

•

our internal accounting systems and financial and operational controls;

•

the qualifications and independence of our independent registered public accounting firm;

•

the performance of our internal audit function and our independent registered public accounting firm; and

•

our legal compliance and ethics programs, including our legal, regulatory and risk oversight requirements, and the major risks facing the Company (including risks related to finance, operations, privacy and cyber-security), related party transactions and our Code of Ethics.

•

Is responsible for the preparation of a report as required by the SEC to be included in this proxy statement.

Compensation & Human Resources

•

Determines executive officer compensation and executive officer and director compensation philosophies, evaluates the performance of our CEO, approves CEO and executive officer compensation, and oversees preparation of a report as required by the SEC to be included in this proxy statement.

David W.

Kenny*

Lisa M.

Caputo

Richelle P.

Parham

Eugene A.

Woods

•

Reviews and recommends director compensation for Board approval.

•

Is responsible for succession planning and compensation-related risk oversight.

•

Approves and oversees the development and evaluation of equity-based and other incentive compensation and certain other employee benefit plans.

•

Oversees the development of an inclusive and diverse Company culture.

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Finance & Investment Policy

•

Provides oversight of, and advises the Board regarding, our financial policies and financial condition to help enable us to achieve our long-range goals.

Karen A. McLoughlin*

Claudia F. Munce

Steven E. Rendle

Eugene A. Woods

•

Oversees, evaluates and monitors the: (i) protection and safety of our cash and investments; (ii) achievement of reasonable returns on financial assets within acceptable risk tolerance; (iii) maintenance of adequate liquidity to support our activities; (iv) assessment of the cost and availability of capital; and (v) alignment of our strategic goals and financial resources.

•

Is responsible for approving certain significant contractual obligations.

Nominating, Corporate Governance & Public Policy

•

Identifies and recommends director nominees, reviews and recommends corporate governance principles to the Board, and oversees the evaluation of the performance of the Board and its committees.

Lisa M. ~~Caputo, J. Patrick Doyle, Russell P. Fradin, Kathy J. Higgins Victor, Hubert Joly,~~ Caputo*

David W. Kenny ~~Karen A. McLoughlin,~~

Mario J. Marte

Thomas L. Millner ~~Claudia F. Munce~~

Richelle P. Parham

•

Assists the Board with general corporate governance, including Board organization, membership, training and ~~Gérard R. Vittecoq for a term of one year. All of the nominees are current members of the Board.~~evaluation.

•

Oversees public policy, corporate responsibility and related environmental, social and governance matters.

Chair

†	Designated as an “audit committee financial expert”

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Board Risk Oversight

In addition to its responsibilities as set forth above, the Board and its committees take an active role in the oversight of various risks to the Company. These risk oversight responsibilities are set forth below.

In fiscal 2020, a management risk committee comprised of the CEO and her direct reports was formed to assess and align on top risks faced by the Company. Management also adopted a value-based risk model to enable consistent evaluation of risks and opportunities across the organization. The Audit Committee oversees management’s processes to identify and quantify the material risks that we face. Our Chief Compliance Officer is a direct liaison to the Audit Committee on our risk oversight processes and procedures. In connection with its risk oversight role, the Audit Committee meets privately with representatives of our independent registered public accounting firm, the Chief Risk Officer, the Chief Compliance Officer, our internal audit staff and our legal staff. Our internal audit staff, which reports directly to the Audit Committee at least quarterly, assist management in identifying, evaluating and implementing controls and procedures to address identified risks.

ESG Risk Oversight. Given the depth and breadth of risks relating to environmental, social and governance (“ESG”) matters, including with respect to inclusion, equity and diversity, we share responsibility for such risks across the entire Board and all of its committees, leveraging the risk oversight expertise of each Board committee based on subject matter.

The Audit Committee plays a significant role in the oversight of our ESG risks related to compliance, including ethics and environmental and safety audits. The Audit Committee also receives regular quarterly updates on the Company’s cyber/information security programs, assessment of cyber threats and defenses and customer privacy protection initiatives. In addition, Ms. Munce, a member of the Audit Committee, is certified by the National Association of Corporate Directors in Cybersecurity Oversight.

~~Director Nominees~~

~~The biographies of each of the nominees include information regarding the person's~~

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The Compensation Committee oversees the Company’s human capital management and inclusion and diversity-related risks through a rigorous regular review of the Company’s strategies and programs. This includes overall employee wellness and engagement in these areas, employee benefit plan compliance, leadership succession planning, and wage, retention and hiring programs. The Committee also works closely with the Company’s Chief Diversity Officer to assess the effectiveness of such programs in alignment with the Company’s core values. In 2020, the Board approved changes to the Compensation Committee’s charter to reflect its oversight of the Company’s development and maintenance of an inclusive and diverse culture.

The Finance & Investment Policy Committee focuses on the risks of the Company’s ESG-related financial investments and commitments, such as our recent solar energy investment. The Committee reviews the financial risks and projected outcomes to ensure such investments align with our ESG objectives.

The Nominating Committee manages its oversight of the Company’s governance, ESG strategy and ESG reputational risks by way of quarterly discussions with management and regular quarterly updates of our environmental goals and progress, social responsibility programs and initiatives, and public policy positions and advocacy.

The Board oversees ESG risks as part of its oversight of our business, strategy and enterprise risk management. Each committee provides an update to the full Board on matters discussed and reviewed in its meeting held prior to the Board meeting, including with respect to ESG risks. In addition, our Board has a dedicated annual strategic planning meeting with senior management and receives quarterly strategic updates, where topics relating to ESG matters, such as inclusion and diversity goals, customer strategy, human capital strategy and safety goals are discussed. The Board reviews these topics and their related risks to ensure that they advance the Company’s strategy. Finally, the Board Chair, the CEO and the Chairs of each Board Committee meet separately to review changes in the Company’s enterprise risk portfolio, including changes to ESG risks, and discuss any additional Board or management action needed to help oversee and manage these risks.

Compensation Risk Assessment

In connection with their oversight of compensation-related risks, Compensation Committee members annually review the most important enterprise risks to ensure that compensation programs do not encourage risk-taking that is reasonably likely to have a material adverse effect on us. As in past years, the review process in fiscal 2022 identified our existing risk management framework and the key business risks that may materially affect us, reviewed our compensation plans and identified those plans that are most likely to impact these risks or introduce new risks, and balanced these risks against existing processes and compensation program safeguards. The review process also took into account mitigating features contained within our compensation plan design, which includes elements such as: metric-based pay, time-matching performance periods, payment for outputs, goal diversification, stock ownership guidelines, payment caps, and our clawback policy.

Based upon the process we employed, the Compensation Committee determined that our compensation programs do not encourage risk-taking that is reasonably likely to result in a material adverse effect on the Company.

Board Evaluation Process

Our Nominating Committee oversees the Board’s composition, effectiveness, accountability and evaluation of the performance of the Board, its committees and individual directors. On an annual basis, members of the Board complete a questionnaire evaluating the performance of the Board as a whole, each member’s respective committee and the performance of the Chairman and Lead Independent Director (if one has been appointed). Directors are asked about roles and responsibilities, as well as more general performance-related questions. The Nominating Committee reviews the results of these questionnaires and determines whether the results warrant any action. The results and any proposed actions are then shared with the full Board for further discussion and approval of final action plans.

The Chair of our Nominating Committee and the Board Chairman also review each individual director’s contributions to the Board during the past year and his or her performance against the director qualification standards and Board needs. The Nominating Committee also annually reviews the skills and qualifications of each Board member and the

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strategic goals of the Company to determine whether the skill sets of the individual directors on the Board continue to support the Company’s long-term strategic goals. This process is utilized by the Nominating Committee to assess whether a director should continue to serve on the Board and stand for re-election at the next Regular Meeting of Shareholders and to otherwise address Board composition needs.

In addition to the annual evaluation process, the Nominating Committee engaged an independent third-party consultant in fiscal 2017 and fiscal 2020 to conduct individual interviews with each director and certain senior executives and perform a comprehensive analysis of the Board’s overall effectiveness. The next independent consultant-managed evaluation and assessment is currently underway for fiscal 2023.

CEO Evaluation Process

Our Compensation Committee conducts a robust annual CEO evaluation process, consisting of both a performance review and a compensation analysis. The performance evaluation component includes an assessment of the Company’s performance in light of set objectives, personal interviews with the individual Board members and the CEO’s direct reports, and feedback evaluations provided by several individuals who interact with the CEO. Separately, the Compensation Committee’s compensation consultant conducts extensive market research. CEO compensation market data is collected from Fortune 100 companies, our peer group, and a retail-industry focused subset of our peer group to ensure both market competitiveness and appropriateness of our CEO’s compensation relative to her peers. The Compensation Committee’s independent consultant reviews the market data and provides its recommendations to the Compensation Committee. Once all of the relevant performance and compensation data has been collected, the Compensation Committee meets in executive session to discuss the CEO performance evaluation results and CEO compensation. After reviewing all of the collected data regarding performance, the Compensation Committee makes its decision regarding CEO compensation for the forthcoming year. The Compensation Committee then provides its final assessment on CEO performance and decision regarding CEO compensation to the Board for discussion during executive session. Our CEO abstains from participating in all related discussions of the Compensation Committee and Board prior to delivery of the final assessment.

Director Orientation and Continuing Education

In fiscal 2022, the Board conducted its annual continuing education seminar for the full Board in September 2021, focusing on institutional investor perspectives on ESG initiatives and priorities.

Anti-Hedging and Anti-Pledging Policies

Our executive officers and Board members are prohibited from pledging Company securities as collateral for a loan or from holding Company securities in a margin account. In addition, all employees and Board members are prohibited from hedging Company securities, including by way of forward contracts, equity swaps, collars, exchange funds or otherwise.

Director Stock Ownership

Our stock ownership guidelines require each of our non-management directors to own 10,000 shares and to hold 50% of their granted equity until that ownership target is met. Directors are required to hold all restricted stock units granted to them during their Board tenure until their service on the Board ends. In fiscal 2022, all of our non-management directors were in compliance with the ownership guidelines. Our stock ownership guidelines for executive officers are discussed in the Executive and Director Compensation — Compensation Discussion and Analysis — Executive Compensation Elements — Other Compensation section.

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Shareholder Engagement

A key part of our corporate governance program is our annual shareholder engagement process. We regularly engage with our shareholders on a variety of topics throughout the year to ensure we are addressing their questions and concerns, to seek input and to provide perspective on Company policies and practices. Our typical engagement follows a seasonal cycle, as outlined below.

We have taken several actions in prior years in consideration of shareholder feedback elicited during this process, including: the elimination of the supermajority shareholder vote requirements in our Articles, adoption of proxy access, declassification of our Board, the determination to hold the advisory vote on our executive compensation on an annual basis, adjustments to the director appointments on our Board committees, and the development of our corporate social responsibility program and reporting. We also continue to facilitate direct shareholder communication with management and members of our Board and the ability to easily access and obtain information regarding our Company on our website at www.investors.bestbuy.com. Please see the Executive and Director Compensation — Introduction section for more information regarding actions taken as a result of shareholder feedback received regarding our prior year’s executive compensation decisions.

Environment, Social & Governance

We strive to be a good corporate citizen in all of our interactions with stakeholders, including customers, employees, vendor partners, shareholders, the environment and communities in which we operate. Here are several ways we reflect this approach in the management of the Company’s environmental, social and governance initiatives:

Company Purpose & Vision

Our purpose — to enrich lives through technology — is more relevant today than ever. This purpose is enduring, and we have used it to hone our five-year vision: “We personalize and humanize technology solutions for every stage of life.” We believe that having our employees focused on our Company’s purpose and finding ways to connect it to their individual purpose is a key driver of both performance and sustainability.

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Environmental Sustainability

We maintain our leadership role in addressing climate change. We have achieved significant progress toward our carbon emissions reduction goal of 75% by 2030 (over a 2009 baseline), from both operational reductions and renewable sourcing. We are committed to being carbon neutral across our operations by 2040. We also made additional investments in solar energy, bringing our total to four projects, that are expected to produce approximately 1.5 million megawatt hours of clean electricity per year.

We also have a goal to help our customers reduce carbon emissions by 20% by 2030 (over a 2017 baseline), which we estimate will save them $5 billion on utility bills by putting greater emphasis on ENERGY STAR® electronics, appliances and other energy saving devices.

In 2021, our Reverse Logistics Center in Chino, California earned Best Buy’s first TRUE certification for zero waste and we are pursuing certification at three more distribution centers this year.

Additionally, water and waste reduction are important facets of our environmental strategy across our operations. We have set goals to achieve 85% waste diversion and 15% water reduction by 2025 (over a 2019 baseline).

We are driving the circular economy forward by influencing the sustainable design and material sourcing for products and packaging, providing product repair and trade-ins, responsibly recycling, and reducing waste in our operations and for our customers. In fact, over two million products found a second life through trade-in, Geek Squad and Best Buy outlets in 2021. We continue to operate the most comprehensive consumer electronics and appliances takeback program in the U.S. In 2021, we collected more than 192 million pounds of consumer electronics and appliances for recycling, bringing our total to more than 2.5 billion pounds.

We are proud to be named to the CDP Climate A List for the fifth consecutive year, which recognizes the top companies worldwide impacting climate change, as well as transparency in reporting. In addition to CDP, Best Buy utilizes the Task Force on Climate-Related Financial Disclosures (TCFD) framework to report climate data. This can be found in our fiscal 2021 ESG Report.

Human Rights and Responsible Sourcing

We are committed to respecting and advancing human rights through our alignment with the United Nations Guiding Principles on Business and Human Rights. Further, across all of the products and services we procure, we seek to mitigate risk, enhance the partnership with our suppliers and create value for all stakeholders through our Responsible Supply Chain Program. We are active members of the Responsible Business Alliance, which allows us to partner with many of the brands we sell, including Apple, Intel, Microsoft and Samsung. Collectively, we embrace a common Supplier Code of Conduct and audit methodology that creates business value by improving working and environmental conditions in the supply chain. Our Responsible Supply Chain Program has expanded from only private label manufacturing to certain branded vendors, as well as a pilot group of indirect vendors.

Community Impact

We are committed to supporting teens from disinvested communities in building brighter futures through technology, training, and mentorship. The primary way we do this is through our network of Best Buy Teen Tech Centers, places where teens can develop critical skills through hands-on activities that explore their interests in a variety of areas, such as software engineering, filmmaking, 3D design and music production. Teens gain exposure to new career possibilities and benefit from positive adult and peer relationships. Together with our partners, we are building a network of 100 Best Buy Teen Tech Centers across the country by 2025. We are currently serving teens at 47 Best Buy Teen Tech Centers.

In 2021 we invited our customers to join us in supporting our Best Buy Teen Tech Center initiative via a donation-based campaign. This campaign sought to educate customers about Best Buy Teen Tech Centers and allowed them to make a tax-deductible donation when making a purchase, including at a Best Buy store, BestBuy.com or the Best Buy App. Between July and October, customers contributed more than $5.5 million to help support local Best Buy Teen Tech Centers.

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Diversity, Equity & Inclusion

We are creating a more inclusive future, both inside our company and in our communities. Last year, we set employee diversity goals to be attained by 2025 and affirm our commitment to continued progress.

We are pleased to report the following progress in fiscal 2022:

We filled 37% of new, salaried corporate positions with Black, Indigenous and people of color (BIPOC) employees, which surpasses our goal to fill one of three positions; and

We filled 26% of new, salaried field positions with female employees, which is considerable progress in reaching our goal to fill one of three positions.

We are taking other key steps to increase diverse representation across the enterprise:

We are proud of the diversity within our Board of Directors, which is comprised of 45% female directors and 36% BIPOC directors.

We are focused on taking steps to foster inclusion among all employee groups to create parity in retention rates, including transforming the composition of our senior leadership teams to reflect that of our Board of Directors.

Last year, our technology team committed to hiring 1,000 new employees within two years, 30% of which would be diverse, specifically Black, Latinx, Indigenous and women. As of the end of fiscal 2022, we hired nearly 900 new technologists, and 39% met our diverse criteria.

The Compensation Committee has committed to focus on the Company’s diversity, equity and inclusion efforts for part of each regular meeting, supported by ongoing dialogue with diversity, equity and inclusion leadership.

In fiscal 2022, we made a significant commitment to supplier diversity. We plan to spend at least $1.2 billion with BIPOC and diverse businesses by 2025, with a focus on funding and supporting partner organizations that are empowering BIPOC leaders in the tech industry. In addition, we are investing up to $10 million with Brown Venture Group, a venture capital firm that focuses exclusively on Black, Latinx and Indigenous-founded technology startups in emerging technologies.

For our communities, we plan to spend $44 million by 2025 to expand college preparation and career opportunities for BIPOC students, including adding scholarships for Historically Black Colleges and University students and increasing scholarship funding for Best Buy Teen Tech Center youth.

Employee Training and Development

Personal growth is at the heart of our people strategy, and we believe investing in training, upskilling and reskilling programs will produce long-lasting benefits to the organization by creating a more productive, engaged and adaptable workforce. In fiscal 2022, each of our U.S. employees spent an average of at least fifty hours on training and development.

We made the following enhancements to our training and development program in fiscal 2022:

Implemented training content from LinkedIn Learning to augment the trainings specifically created for Best Buy employees;

Moved to emphasize the importance of skills and abilities, rather than just education and experience, when making hiring decisions, which we believe drives a more inclusive and growth-oriented culture;

Identified an artificial intelligence platform to proactively plan for future workforce roles, creating new learning and career paths; and

Piloted a high potential leadership development program and will begin to scale that program across the company.

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Employee Benefits

We strive to help our employees live happy, healthy and productive lives that balance work and home. That is why we offer a range of benefits to support employees’ overall well-being: physical, mental, financial and work-life balance. In fiscal 2022, we expanded our offerings in several areas including:

Maternity leave benefits that offer qualifying employees up to ten weeks of leave at 100% pay;

Caregiver support benefits that offer employees personalized help in a time of great need through Wellthy, a caregiver support program, which helps employees with emergency housing, healthcare, substance abuse, complex eldercare issues and many other moments of crisis; and

Creation of the HOPE Fund – Helping Our People in Emergencies – in equal partnership with the Richard M. Schultze Family Foundation, which provides employees in hardship situations the opportunity to receive up to $2,500 in financial assistance.

Additionally, we continued our focus on:

Enhanced pandemic-related benefits, including free vaccination clinics and other vaccination incentives; pay support for those required to quarantine or isolate consistent with public-health guidance; coverage of COVID-19-related health care expenses; expanded caregiver leave; additional support for backup childcare; tutoring reimbursement and access to physical and mental health virtual visits;

Mental health, including our commitment to raise awareness about mental health, equipping employees with training to notice concerns with themselves or others so they can seek help; and

Tuition assistance, including the expansion of our partnership schools, giving eligible employees the opportunity to earn a degree with no out-of-pocket costs.

COVID-19 Safety Response

The safety of our employees and customers continues to be a top priority. As the COVID-19 pandemic continues to evolve, our health-and-safety protocols also evolve, informed by CDC guidance, local requirements and enhanced scientific knowledge concerning COVID-19 and the impact of variants of concern. We have offered, and continue to evaluate, enhanced employee benefits throughout the pandemic as further described above within the Employee Benefits section.

Public Policy

As a major corporation and corporate citizen, we believe that it is important to work with policymakers on issues impacting our customers, employees, operations, shareholders and communities. We know that collaboration helps bring about change that better serves our industry and the communities where we live and work. In fiscal 2022, our public policy priorities included: tax; trade; workforce; fair competition; cybersecurity, data privacy and internet of things; supply chain and infrastructure; COVID-19 relief and recovery; social justice; environmental sustainability; and emerging technology and innovation. More information about these priorities, as well as our annual political activity reports and related policies, can be found at https://corporate.bestbuy.com/advocacy.

Communications with the Board

Anyone who wishes to contact the Board, any individual director, or the independent directors as a group, are welcome to do so in writing, addressed to such person(s) in care of:

Mr. Todd G. Hartman

General Counsel,

Chief Risk Officer and Secretary

Best Buy Co., Inc.

7601 Penn Avenue South

Richfield, Minnesota 55423

Mr. Hartman will forward all written correspondence to the appropriate director(s), except for spam, junk mail, mass mailings, customer complaints or inquiries, job inquiries, surveys, business solicitations or advertisements, or patently offensive or otherwise inappropriate material. Mr. Hartman may, at his discretion, forward certain correspondence, such as customer-related inquiries, elsewhere within the Company for review and possible

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response. Comments or questions regarding our accounting, internal controls or auditing matters will be referred to the Audit Committee. Comments or questions regarding the nomination of directors and other corporate governance matters will be referred to the Nominating Committee. Comments or questions regarding executive compensation will be referred to the Compensation Committee.

Corporate Governance Website

If you would like additional information about our corporate governance practices, you may view the following documents at www.investors.bestbuy.com under “Governance—Corporate Governance”.

Amended and Restated Articles of Incorporation

Amended and Restated By-laws

Corporate Governance Principles

Audit Committee Charter

Compensation and Human Resources Committee Charter

Finance and Investment Policy Committee Charter

Nominating, Corporate Governance and Public Policy Committee Charter

Code of Ethics

Best Buy Co., Inc. 2020 Omnibus Incentive Plan

Policy for Shareholder Nomination of Candidates to Become Directors of the Company

Process for Communication with the Board

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ITEM OF BUSINESS NO. 1 — ELECTION OF DIRECTORS

General Information

Our By-laws provide that our Board consist of one or more directors and that the number of directors may be increased or decreased from time to time by the affirmative vote of a majority of the directors serving at the time that the action is taken. The number of directors on our Board is reviewed and set by our Board no less often than annually. In March 2022, the Board set the number of directors at eleven. The Board will continue to evaluate the size of the Board and make adjustments as needed to meet the current and future needs of the Company.

Director Nomination Process

The Nominating Committee is responsible for screening and recommending to the full Board director candidates for nomination. When the Board and its Nominating Committee determines that a director nomination or search is necessary, the process is robust, thorough and deliberate.

The Nominating Committee will consider director candidates nominated by shareholders. Shareholder nominations must be accompanied by a candidate resume that addresses the extent to which the nominee meets the director qualification standards and any additional search criteria posted on our website. Nominations will be considered only if we are then seeking to fill an open director position. All nominations by shareholders should be submitted as follows:

Chair, Nominating, Corporate Governance and Public Policy Committee

c/o Mr. Todd G. Hartman

General Counsel,

Chief Risk Officer and Secretary

Best Buy Co., Inc.

7601 Penn Avenue South

Richfield, Minnesota 55423

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Advance Notice and Proxy Access By-Law Provisions

Our By-laws establish advance notice procedures with respect to shareholder proposals and the nomination of candidates for election as directors and the proposal of any business not intended to be included in our proxy statement, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be “properly brought” before a meeting, a shareholder must comply with advance notice requirements and provide us with certain information. Generally, to be timely, a shareholder’s notice must be received at our principal executive offices not less than 120 days nor more than 150 days prior to the anniversary of the immediately preceding annual meeting of shareholders. The By-laws also specify requirements as to the form and content of a shareholder’s notice.

In addition to the director nomination provisions described above, the By-laws contain a “proxy access” provision that provides that any shareholder or group of up to twenty shareholders who qualify as an eligible shareholder under the proxy access provisions of our By-laws may nominate and include in our proxy materials director candidates constituting up to 20% of our board of directors or two directors, whichever is greater. In order for a shareholder or group of shareholders to be eligible under the proxy access provisions of our By-laws to nominate a director, such shareholder or group of shareholders must, among other criteria, be eligible to vote at the Company’s annual meeting and have owned or together with other group shareholders owned 3% or more of the voting power of our issued and outstanding common stock continuously for at least three years. In order to use the proxy access provisions of our By-laws, shareholders and their nominees must satisfy all the eligibility and notice requirements specified in our By-laws. A shareholder proposing to nominate a person for election to our board of directors through the proxy access provision must provide us with a notice requesting the inclusion of the director nominee in our proxy materials and other required information not less than 120 days nor more than 150 days prior to the first anniversary of the date on which our definitive proxy statement was released to shareholders in connection with the prior year’s annual meeting. The complete proxy access provisions for director nominations are set forth in the By-laws.

Director Qualification Standards

In seeking new board members, our objective is to identify and retain directors that can effectively develop the Company’s strategy and oversee management’s execution of that strategy. We only consider director candidates who embody the highest standards of personal and professional integrity and ethics and are committed to a culture of transparency and open communication at the Board level and throughout the Company. Successful candidates are dedicated to accountability and continuous improvement with a belief in innovation as a key business success factor. They are also actively engaged and have an innate intellectual curiosity and entrepreneurial spirit.

As part of its annual evaluation process for director nominees, the Nominating Committee considers other criteria, including the candidate’s history of achievement and superior standards, ability to think strategically, willingness to share examples based upon experience, policy-making experience, and ability to articulate a point of view, take tough positions and constructively challenge management. Directors must also be committed to actively engaging in their Board roles, with sufficient time to carry out the duties of Board and Board committee membership. Finally, one or more of our directors must possess the education or experience required to qualify as an “audit committee financial expert” pursuant to SEC rules.

Our Corporate Governance Principles describe our policy of considering diversity in the director identification and nomination process. When considering Board candidates, the Nominating Committee seeks nominees with a broad range of experience from a variety of industries and professional disciplines, such as finance, professional services and technology, along with a diversity of gender, ethnicity, age and geographic location. The Nominating Committee does not assign specific weights to particular criteria, and no particular criterion is necessarily applied to all prospective nominees. As part of its annual review of the Board’s composition and director nominees, the Nominating Committee assesses the effectiveness of its approach to diversity. When the Nominating Committee identifies an area of which the Board may benefit from greater representation, it may focus its candidate search on particular experience, background or diversity characteristics, including gender, ethnic and geographical attributes. The Board believes that diversity in the backgrounds and qualifications of Board members ensures the mix of experience, knowledge and abilities necessary for the Board to fulfill its responsibilities and leads to a more effective oversight and decision-making process.

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The grid below summarizes the key qualifications and skills each of our director nominees possess that were most relevant to the decision to nominate him or her to serve on the Board. The lack of a mark does not mean the director does not possess that qualification or skill; rather a mark indicates a specific area of focus or expertise on which the Board relies most heavily. Each director’s biography describes these qualifications and relevant experience in more detail.

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Director Nominees (Ages and Committee roles as of April 27, 2022)

The biographies of each of the nominees include information regarding the person’s service as a director, business experience, public company director positions held currently or at any time during the last five years, information regarding involvement in certain legal or administrative proceedings during the last ten years, if any, and the key experiences, qualifications, attributes or skills that led the Nominating Committee and the Board to determine that the person should serve as a director.

There are no family relationships among the nominees or between any nominee and any director, executive officer or person chosen to become an executive officer. There are also no material proceedings to which any director, officer, affiliate of the Company, any 5% shareholder or any associate is a party adverse to the Company or its subsidiaries or has a material interest adverse to the Company or its subsidiaries.

Corie S. Barry

Age: 47

Committees:

Director ~~Nominees:~~Since: June 2019

~~(Ages and Committee roles as of May 3, 2016)~~None



~~Lisa M. Caputo~~	~~Best Buy Committees:~~			~~Other For-Profit Directorships (*Public Company)~~
~~Age:~~ 52		l	~~Compensation & Human Resources Committee~~		~~None~~
~~Director Since:~~		l	~~Nominating, Corporate Governance & Public Policy Committee~~
~~December 2009~~

~~Background:~~ ~~Executive Vice President and Chief Marketing and Communications Officer of The Travelers Companies, Inc., a property casualty insurer (2011-present); Managing Director and Senior Banker of the~~Other Public Sector Group of the Institutional Clients Group of Citigroup, Inc., a financial services company (2010-2011); Global Chief Marketing Officer and Executive Vice President of Citigroup, Inc. (2007-2010); Founder, Chairman and Chief Executive Officer of Citi’s Women & Co., a membership service that provides financial education and services for women (2000-2011).

~~What she brings to the Board:~~ Ms. Caputo’s position as Executive Vice President of Marketing and Communications of The Travelers Companies makes her critical to Best Buy’s efforts to broaden its brand, rejuvenate the customer experience and transform its marketing efforts from analog and mass to digital and personal. She also spent 11 years at Citigroup, advising three chief executive officers on topics from marketing and communications to government affairs and community relations. Ms. Caputo has an exceptional track record of enhancing corporate social responsibility and employee engagement, key components of Best Buy’s Renew Blue initiative. She has also been a senior executive at the Walt Disney Company and at the CBS Corporation, and spent more than a decade in the public sector, serving as Deputy Assistant to President Bill Clinton and Press Secretary to First Lady Hillary Rodham Clinton. Ms. Caputo’s diverse public/private background lends an important voice to the Board deliberations, particularly those that involve the Company’s efforts to communicate with customers.Directorships:

~~Education:~~ ~~Ms. Caputo holds degrees from Brown University and Northwestern University.~~

•

~~J. Patrick Doyle~~

~~Best Buy Committees:~~

~~Other For-Profit Directorships (*Public Company)~~

~~Age: 52~~

~~Audit Committee~~

Domino's Pizza, Inc.*

~~Director Since:~~

~~Finance and Investment Policy Committee~~

~~October 2014~~

~~Background:~~ ~~President and CEO of~~ Domino’s Pizza, Inc., the second-largest pizza company in the world (2010-present); President of Domino’s Pizza (2007-present); Executive Vice President of Team U.S.A. at Domino’s Pizza (2004-2007); Executive Vice President of Domino’s Pizza International (1999-2004); Senior Vice President of Marketing for Domino’s Pizza (1997-1999)

Current Role:

Chief Executive Officer (2019-present), Best Buy Co., Inc.

Prior Roles:

Chief Financial Officer (2016-2019) & Strategic Transformation Officer (2018-2019), Best Buy Co., Inc.;

Chief Strategic Growth Officer & interim President, Services, Best Buy Co., Inc. (2015-2016);

Senior Vice President, Domestic Finance, Best Buy Co., Inc. (2013-2015);

Vice President, Chief Financial Officer & Business Development, Home Business Group, Best Buy Co., Inc. (2012-2013); and

Vice President, Finance – Home Customer Solutions Group, Best Buy Co., Inc. (2010-2012).

Education: Ms. Barry holds degrees from the College of St. Benedict.

Key Qualifications & Experience:

Growth/Transformation Experience - As Best Buy’s Chief Executive Officer and a key member of the Best Buy executive team prior to her CEO appointment, Ms. Barry has played a critical role in the Company’s successful transformation and in developing and executing the strategy in place today. She has led Best Buy’s strategic transformation and growth efforts, including the launch of its In-Home Consultation program and its expansion in the health space. Ms. Barry has a demonstrated track record of advocating for and mentoring women in the workplace and in the community through her close involvement with the Company’s women’s development group, local women’s leadership organizations and her alma mater.

Finance Expertise - As Best Buy’s Chief Financial Officer from 2016 to 2019, Ms. Barry brings strong financial acumen to the board. She previously served in a variety of financial and operational roles within the Company, including Senior Vice President of Domestic Finance. Prior to joining Best Buy in 1999, she worked at Deloitte & Touche LLP.

Knowledge of Best Buy and/or Industry - As Best Buy’s CEO since 2019, Ms. Barry has a deep knowledge of the Company, its business partners and the broader industry in which it competes. She has worked at the Company for over 20 years across a wide variety of roles, both in the field and at the corporate office.

2022 Proxy Statement

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Lisa M. Caputo

Age: ~~What he brings to the Board:~~ 58

Committees:

Director Since: ~~Having led a remarkable transformation at Domino’s Pizza, Inc., Mr. Doyle’s experience and insights are valuable to the Board of Directors and senior management~~December 2009

•

Compensation Committee

✔

Independent

•

Nominating Committee (Chair)

Other Public Company Directorships:

None

Current Role:

Executive Vice President of Marketing, Communications and Customer Experience of The Travelers Companies, Inc., a property casualty insurer (2011-present)

Prior Roles:

Managing Director and Senior Banker of the Public Sector Group of the Institutional Clients Group of Citigroup, Inc., a financial services company (2010-2011);

Global Chief Marketing Officer and Executive Vice President of Citigroup, Inc. (2007-2010);

Chief Marketing and Community Relations Officer, Global Consumer Group, Citigroup, Inc. (2005-2007); and

Founder, Chairman and Chief Executive Officer of Citi’s Women & Co., a membership service that provides financial education and services for women (2000-2011).

Education: Ms. Caputo holds degrees from Brown University and Northwestern University.

Key Qualifications & Experience:

Marketing / Customer Experience Expertise - Ms. Caputo’s position as Executive Vice President of Marketing, Communications and Customer Experience of The Travelers Companies, Inc., makes her invaluable to Best Buy’s efforts to broaden its brand, rejuvenate the customer experience and transform its marketing and communications efforts to drive growth. In addition, her perspective gained from driving innovation efforts to explore partnership and investment opportunities at Travelers is helpful as we develop growth initiatives within the Company’s strategy. Ms. Caputo also spent eleven years at Citigroup, advising three CEOs on topics from marketing and communications to government affairs and community relations.

Environmental, Social & Governance Expertise - Ms. Caputo has an exceptional track record throughout her career of enhancing community and employee engagement, building social impact strategies and leading corporate responsibility and sustainability. Her expertise has been key in the development and execution of the Company’s ESG initiatives.

Corporate Public Affairs Expertise - Ms. Caputo has also been a senior executive at Walt Disney Co. and CBS Corp., and she spent more than a decade in the public sector, serving as Deputy Assistant to President Bill Clinton and Press Secretary to First Lady Hillary Rodham Clinton. Her diverse public/private background lends an important voice to Board deliberations, particularly those that involve the Company’s government relations and communications efforts.

2022 Proxy Statement

TABLE OF CONTENTS

J. Patrick Doyle

Age: 58

Committees:

Director Since: October 2014

None, but as Best Buy is in the midst of a similar effort. His experience rebuilding Domino’s reputation among consumers is a great benefit to Best Buy, particularly in its Renew Blue marketing initiatives. UnderChairman, Mr. Doyle Domino’s significantly grew its digital presence, with online orders now accounting for 40 percent of U.S. sales. That expertise supports Best Buy’s continued work in meeting customers where, how and when they want to shop — in store or online — and its goal of increasing its online market share. Mr. Doyle previously served on the board of directors of G&K Services, Inc.attends most committee meetings as an ex-officio member.

✔

Independent

Chairman

Other Public Company Directorships:

None

Current Role:

Executive Partner at The Carlyle Group, one of the world’s largest investment firms (2019 – present)

Prior Roles:

President and CEO of Domino’s Pizza, Inc., the largest pizza restaurant chain in the world (2010-2018);

President of Domino’s Pizza (2007-2018);

Executive Vice President of Team U.S.A. at Domino’s Pizza (2004-2007); and

Executive Vice President of Domino’s Pizza International (1999-2004).

Education: Mr. Doyle holds degrees from The University of Chicago Booth School of Business and The ~~University of Chicago Booth School of Business and from the~~ University of Michigan.

Key Qualifications & Experience:

CEO Experience - Mr. Doyle served as Chief Executive Officer of Domino’s Pizza, Inc, from 2010 to 2018. Prior to that, he held a variety of other senior leadership roles at Domino’s.

Digital / E-Commerce Expertise - Under Mr. Doyle’s leadership, Domino’s significantly enhanced its multichannel presence, with digital channels now accounting for 60% of U.S. orders. That expertise supports Best Buy’s goal of increasing its online market share.

Growth / Transformation Experience - Mr. Doyle led a remarkable transformation at Domino’s, rebuilding the company’s reputation among consumers and more than doubling its global retail sales from $5.5 billion in 2008 to $13.5 billion in 2018. During Domino’s transformation, Mr. Doyle increased the company’s contributions to communities and disaster relief and initiated a partnership to support students interested in careers in agriculture. In his current role at The Carlyle Group, Mr. Doyle leads a partnership to acquire established companies that have the opportunity for value creation and revenue growth through technological transformation.

282022 Proxy Statement

TABLE OF CONTENTS



~~Russell P. Fradin~~	~~Best Buy Committees:~~			~~Other For-Profit Directorships (*Public Company)~~
~~Age: 60~~		l	~~Compensation & Human Resources Committee (Chair)~~		~~None~~
~~Director Since:~~			~~Compensation & Human Resources Committee (Chair)~~		~~None~~
~~April 2013~~
~~Appointed Lead Independent Director in June 2015~~
~~Appointed Lead Independent Director in June 2015~~

~~Background:~~ Operating Partner at Clayton, Dubilier, & Rice, a private investment firm (April 2016-present); Chief Executive Officer and President of SunGard, a leading software and technology services company now acquired by Fidelity National Information Services, Inc. (2011-2015); Chairman and Chief Executive Officer of AonHewitt, a global provider of human resources consulting and outsourcing solutions (2010-2011); Chief Executive Officer of Hewitt Associates (2006-2010); President and Chief Executive Officer of The BISYS Group, Inc., a provider of outsourcing solutions for the financial services sector (2004-2006).

~~What he brings to the Board:~~ With experience as both a CEO and an executive board chair, Mr. Fradin is well suited to be Best Buy’s Lead Independent Director. He has firsthand insight into the partnership between an engaged Board and an effective, high-performing management team. In his role as a director, Mr. Fradin offers Best Buy the benefit of a 20-year career leading some of the country’s top services businesses, including more than a decade in a CEO role. This experience is of particular value given the Company’s emphasis on rejuvenating its services business as part of its Renew Blue transformation efforts. Additionally, Mr. Fradin’s previous leadership of Hewitt Associates and, ultimately, AonHewitt, allows him to offer valuable advice on issues that include streamlining operations, reducing costs, and establishing appropriate executive compensation. Earlier in his career, Mr. Fradin ran the Global Employer Services business of Automatic Data Processing, Inc., where he nearly doubled revenues, significantly improved margins and diversified that business’s operations. He also spent 18 years at McKinsey and Company, specializing in offering Fortune 500 clients advice on new product and services innovations. Mr. Fradin previously served on the boards of directors of SunGard Data Systems, Inc. and Gartner, Inc.

David W. Kenny

Age:~~Education:~~ 60

Committees:

Director Since: ~~Mr. Fradin holds degrees from the Wharton School of the University of Pennsylvania~~September 2013

•

Compensation Committee (Chair)

✔

Independent

•

Nominating Committee

Other Public Company Directorships:

•

Nielsen

Current Role:

CEO and a director of Nielsen, a global measurement and data analytics company (December 2018- present)

Prior Roles:

Chief Diversity Officer, Nielsen (December 2018 – March 2021);

Senior Vice President of IBM Watson (January 2016-2018) and IBM Cloud (November 2016-2018), business units of IBM, an American multinational technology and consulting corporation;

Chairman and Chief Executive Officer of The Weather Company, a leading provider of weather forecasts and information (2012-2015);

President of Akamai, a leading cloud platform technology company (2011-2012);

Managing Partner of VivaKi, a provider of integrated strategy, technology and marketing solutions for internet-based ecommerce companies (2006-2010); and

Founder and Chief Executive Officer of Digitas, Inc., which was later merged with VivaKi (1997-2006).

Education: Mr. Kenny holds degrees from the GM Institute (now Kettering University) and ~~from~~ Harvard University.

Key Qualifications & Experience:

CEO Experience - Mr. Kenny is the CEO at Nielsen, an S&P 500 company. He also previously served as CEO of The Weather Co., which was sold to IBM, and Digitas Inc., a global marketing and technology agency, and in a variety of other executive roles, including Senior Vice President of IBM Watson and IBM Cloud, President of Akamai and Managing Partner of VivaKi.

Technology Expertise - As Senior Vice President of IBM Watson, Mr. Kenny led the company’s growth initiatives around cloud and artificial intelligence services. His online leadership dates to 1997, when he founded Digitas, Inc., a provider of technology and marketing solutions for e-commerce and multichannel companies. His experience leading The Weather Company offers the Company strong environmental leadership and climate change expertise.

Customer Engagement Expertise - As CEO of Nielsen, a global market research leader, Mr. Kenny has a deep knowledge of consumer insights. As chairman and chief executive officer of The Weather Company, acquired by IBM in 2016, he helped turn the organization into a media heavyweight that produced television programming, developed apps, published content and used analytics to connect businesses to consumers through weather and climate-related content. He uses those consumer centric and strategic skills to support Best Buy’s growth and transformation efforts, including our goal of capturing online share and responsible use of data to serve customers based on how, where and when they want to be served.

2022 Proxy Statement

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT



~~Karen A. McLoughlin~~	~~Best Buy Committees:~~		~~Other For-Profit Directorships (*Public Company)~~
~~Age:~~ 51	l	~~Audit Committee~~		~~None~~
~~Director Since:~~	l	~~Finance & Investment Policy Committee~~
~~September 2015~~		~~Finance & Investment Policy Committee~~

~~Background:~~ Chief Financial Officer of Cognizant Technology Solutions Corporation, a Fortune 500 company and leading provider of information technology, business process and consulting services (2012-present); Senior Vice President, Financial Planning & Analysis and Enterprise Transformation of Cognizant (2008-2012); Vice President, Global Financial Planning & Analysis of Cognizant (2003-2008); Vice President, Finance of Spherion Corp., now SFN Group Inc., which was acquired by Randstadt (1997-2003).

~~What she brings to the Board:~~ As the Chief Financial Officer of Cognizant Technology Solutions Corp., Ms. McLoughlin brings strong financial acumen to the Best Buy Board. Having been at Cognizant since 2003, she has developed extensive knowledge of the IT services sector, which is critical to Best Buy as it considers its own internal IT processes and continues to emphasize Services as part of its Renew Blue transformation. Further, since joining Cognizant, Ms. McLoughlin has spearheaded several critical transformational initiatives that made significant contributions to the efficiency and effectiveness of the company’s operations. Through this work, she developed a deep understanding of the company’s financial and business operations perspectives, experience that will greatly benefit Best Buy as it looks to continually improve its operational structure. During Ms. McLoughlin’s time at Cognizant, the company has experienced tremendous growth, with revenue increasing from $368 million to $10.3 billion (fiscal 2014). Prior to joining Cognizant, Ms. McLoughlin built upon her strong financial background with leadership roles at Spherion Corp. and ~~Price Waterhouse (now PricewaterhouseCoopers).~~

~~Education:~~ ~~Ms. McLoughlin holds degrees from Wellesley College and Columbia University.~~



~~Thomas L. "Tommy" Millner~~	~~Best Buy Committees:~~		~~Other For-Profit Directorships (*Public Company)~~
~~Age:~~ 62	l	~~Audit Committee~~		l	Cabela's Inc.*
~~Director Since:~~	l	~~Nominating, Corporate Governance & Public Policy Committee~~		l	~~Total Wine & More~~
~~January 2014~~

~~Background:~~ President and Chief Executive Officer of Cabela’s Inc., a leading omni-channel retailer of hunting, fishing and camping products (2009-present); President and Chief Executive Officer of Freedom Group, Inc. and its successor company, Remington Arms Company, Inc., a firearms and ammunition manufacturer (1999-2009).

~~What he brings to the Board:~~ ~~As the President and Chief Executive Officer~~of Cabela’s Inc., Mr. Millner is a prominent presence in multi-channel retail. As the Chief Executive Officer of North America’s foremost outdoors retailer, Mr. Millner brings to the Best Buy Board expertise in support of the Company’s Renew Blue strategic priorities, particularly those concerning effective merchandizing and multi-channel operations. He has experience leading a specialty retailer through a transformation. When he joined Cabela’s, the company’s market capitalization hovered near $500 million; five years later, it exceeded $5 billion. Before leading that remarkable growth, Mr. Millner was President and Chief Executive Officer of Remington Arms Company. Earlier in his career he was Chief Executive Officer and President of Pilliod Cabinet and held various leadership positions at Broyhill Furniture and Thomasville Furniture. Experience gained throughout his career complements Best Buy’s strategy for enhanced personalized consumer marketing.

~~Education:~~ ~~Mr. Millner holds a degree from Randolph Macon College.~~



~~Claudia F. Munce~~	~~Best Buy Committees:~~		~~Other For-Profit Directorships (*Public Company)~~
~~Age:~~ 56	l	~~Audit Committee~~		l	~~Bank of the West~~
~~Director Since:~~	l	~~Finance &~~ ~~Investment Policy Committee~~
~~March 2016~~

~~Background:~~ Venture Advisor at New Enterprise Associates (NEA), one of the world’s largest and most active venture capital firms (January 2016-present); Managing Director of IBM Venture Capital Group and Vice President of Corporate Strategy at IBM Corp. (2004-15); Director of Strategy, IBM Venture Capital Group (2000-04); Head of Technology Transfer and Licensing, IBM Research (1994-2000).

~~What she brings to the Board:~~ Ms. Munce is a seasoned venture capital leader who has developed a deep knowledge of global partnerships and M&A activities. Her many years of focusing on emerging markets and disruptive technology will be valuable to Best Buy as it explores growth opportunities as part of its ongoing Renew Blue transformation. She brings the perspective of someone with a highly technical engineering background as well as business acumen and a strategic mindset. Ms. Munce serves as a board member for Bank of the West, the National Venture Capital Association and Global Corporate Venturing.

~~Education:~~ ~~Ms. Munce holds degrees from the Santa Clara University School of Engineering and the Stanford University Graduate School of Business.~~



~~Gérard R. Vittecoq~~	~~Best Buy Committees:~~			~~Other For-Profit Directorships (*Public Company)~~
~~Age: 67~~		l	~~Audit Committee~~		l	~~Ariel Compressors~~
~~Director Since:~~		l	~~Finance & Investment Policy Committee (Chair)~~		l	~~Vanguard Logistics Services~~
~~September 2008~~			~~Finance & Investment Policy Committee (Chair)~~		l	~~Mantrac Group~~

~~Background:~~ Group President and Executive Office Member of Caterpillar Inc., a manufacturer of construction and mining equipment (2004-2013); Vice President overseeing Europe-Africa-Middle East Product Development and Operations division of Caterpillar Inc. (2001-2004); Managing Director of Caterpillar Belgium S.A. (1997-2001).

~~What he brings to the Board:~~ ~~Mr.~~Vittecoq’s global perspective and international business acumen are key to the Company's work to transform its business and improve operational efficiencies. As a Group President of Caterpillar Inc., he was responsible for the development and implementation of Lean manufacturing, an effort that drove meaningful results for Caterpillar. Before he retired in 2013, Mr. Vittecoq led a strategic initiative to deliver world-class results for the company, focusing on customer expectations and driving competitive advantage, two elements crucial to Best Buy’s transformation. He is an innovator when it comes to supply chain and logistics and brings that creative, world-view thinking to Best Buy.

~~Education:~~ ~~Mr. Vittecoq holds degrees from École Supérieure de Commerce in France and Laval University in Canada.~~

~~SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT~~

The following table provides information about the number of shares of our common stock beneficially owned on April 13, 2016 (unless otherwise indicated), by our CEO, our Chief Financial Officer ("CFO"), and our three other most highly compensated executive officers during the most recent fiscal year.The following table provides information about the number of shares of our common stock beneficially owned on March 28, 2022 (unless otherwise indicated), by each of our named executive officers. The table provides similar information for each director and director nominee, all directors and executive officers as a group, and each person, or any group that we know who beneficially owns more than 5% of the outstanding shares of our common stock.

Corie Barry, Chief Executive Officer

369,106⁽²⁾

Matt Bilunas, Executive Vice President, Chief Financial Officer

37,765⁽³⁾

Jason Bonfig, Executive Vice President, Chief Merchandising Officer

22,882⁽⁴⁾

Damien Harmon, Executive Vice President, Omnichannel

15,801⁽⁵⁾

Kamy Scarlett, Executive Vice President, Human Resources & Best Buy Canada

65,731⁽⁶⁾

Lisa M. Caputo, Director

48,139⁽⁷⁾

J. Patrick Doyle, Director

51,743⁽⁸⁾

David W. Kenny, Director

34,116⁽⁹⁾

Mario J. Marte, Director

2,612⁽¹⁰⁾

Karen A. McLoughlin, Director

23,979⁽⁹⁾

Thomas L. Millner, Director

32,603⁽⁹⁾

Claudia F. Munce, Director

21,756⁽⁹⁾

Richelle P. Parham, Director

10,445⁽⁹⁾

Steven E. Rendle, Director

2,117⁽⁹⁾

Eugene A. Woods, Director

9,425⁽⁹⁾

All current directors and executive officers, as a group (22 individuals)

1,005,070⁽¹¹⁾

0.44%

Richard M. Schulze, Founder and ~~each person, or any group that we know who beneficially owns more than 5% of the outstanding shares of our common stock.~~

Chairman Emeritus

6600 France Avenue South, Suite 550

Name and Address⁽¹⁾

Number of Shares
Beneficially Owned

Percent of Shares
Beneficially Owned

Hubert Joly, Chairman and Chief Executive Officer 1,903,088
(2 ) *
Sharon L. McCollam, Chief Administrative Officer and Chief Financial Officer 441,803
(3 ) *
Shari L. Ballard, President, U.S. Retail 425,730
(4 ) *
R. Michael Mohan, Chief Merchandising Officer 401,101
(5 ) *
Keith J. Nelsen, General Counsel & Secretary 253,471
(6 ) *
Bradbury H. Anderson, Director 154,935
(7 ) *
Lisa M. Caputo, Director 40,266
(8 ) *
J. Patrick Doyle, Director 8,388
(9 ) *
Russell P. Fradin, Director 17,766
(10 ) *
Kathy J. Higgins Victor, Director 68,496
(11 ) *
David W. Kenny, Director 13,743
(12 ) *
Karen A. McLoughlin, Director 2,598
(13 ) *
Thomas L. Millner, Director 12,230
(14 ) *
Claudia F. Munce, Director 345
(15 ) *
Gérard R. Vittecoq, Director 41,450
(16 ) *
All current directors and executive officers, as a group (19 individuals) 3,934,777
(17 ) 1.21%
Richard M. Schulze, Founder and Chairman Emeritus 3033 Excelsior Blvd., Suite 525 Minneapolis, MN 55416 44,152,196
(18 ) 13.64 %
FMR LLC ("Fidelity") 245 Summer Street
Boston, MA 02210
40,526,297
(19 ) 11.82 %
The Vanguard Group
100 Vanguard Blvd.
Malvern, PA 19355
28,532,817
(20 ) 8.32 %
JPMorgan Chase & Co.
270 Park Avenue
New York, NY 10017
28,053,911
(21 ) 8.10 %
BlackRock, Inc.
55 East 52nd Street
New York, NY 10055
17,977,273
(22 ) 5.20 %
Minneapolis, MN 55435

	23,360,360⁽¹²⁾		10.34%
The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355		27,705,867⁽¹³⁾		12.26%
BlackRock, Inc. 55 East 52^nd Street New York, NY 10055		21,872,180⁽¹⁴⁾		9.68%

*	Less than 1%.


(1)	The business address for all current directors and executive officers is 7601 Penn Avenue South, Richfield, Minnesota, 55423.

(2)


~~(2)~~	The figure represents: (a) 402,563 outstanding shares owned by Mr. Joly; (b) 371,000 restricted stock units, which Mr. Joly could convert to shares within 60 days of April 13, 2016; (c) 43,554 restricted shares subject to a time-based vesting schedule, which vest within 60 days of April 13, 2016; and (d) options to purchase 714,971 shares, which Mr. Joly could exercise within 60 days of April 13, 2016.	The figure represents: (a) 168,107 outstanding shares owned by Ms. Barry; (b) 2,671 outstanding shares held in the name of the Trustee in connection with the Retirement Saving Plan for the benefit of Ms. Barry; and (c) options to purchase 198,329 shares, which Ms. Barry could exercise within 60 days of March 28, 2022. The figure does not include 89,000 shares underlying performance share awards that are subject to vesting and settlement within 60 days of March 28, 2022 to the extent that performance objectives are determined to be achieved.

(3)


~~(3)~~	The figure represents: (a) 267,663 outstanding shares owned by Ms. McCollam; (b) 22,400 restricted shares subject to a time-based vesting schedule, which vest within 60 days of April 13, 2016; and (c) options to purchase 151,740 shares, which Ms. McCollam could exercise within 60 days of April 13, 2016.	The figure represents: (a) 24,355 outstanding shares owned by Mr. Bilunas; and (b) options to purchase 13,410 shares, which Mr. Bilunas could exercise within 60 days of March 28, 2022. The figure does not include 12,037 shares underlying performance share awards that are subject to vesting and settlement within 60 days of March 28, 2022 to the extent that performance objectives are determined to be achieved.

(4)


~~(4)~~	The figure represents: (a) 44,013 outstanding shares owned by Ms. Ballard; (b) 6,637 restricted shares subject to a time-based vesting schedule, which vest within 60 days of April 13, 2016; and (c) options to purchase 375,080 shares, which Ms. Ballard could exercise within 60 days of April 13, 2016.	The figure represents: (a) 19,667 outstanding shares owned by Mr. Bonfig and (b) 3,215 outstanding shares held in the name of the Trustee in connection with the Retirement Saving Plan for the benefit of Mr. Bonfig. The figure does not include 4,922 shares underlying performance share awards that are subject to vesting and settlement within 60 days of March 28, 2022 to the extent that performance objectives are determined to be achieved.

(5)	The figure represents outstanding shares owned by Mr. Harmon. The figure does not include 3,260 shares underlying performance share awards that are subject to vesting and settlement within 60 days of March 28, 2022 to the extent that performance objectives are determined to be achieved.

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TABLE OF CONTENTS

(6)


~~(5)~~	The figure represents: (a) 102,104 outstanding shares owned by Mr. Mohan; (b) 5,531 restricted shares subject to a time-based vesting schedule, which vest within 60 days of April 13, 2016; (c) 2,029 outstanding shares held in the name of the Trustee in connection with the Retirement Saving Plan for the benefit of Mr. Mohan; and (d) options to purchase 291,437 shares, which Mr. Mohan could exercise within 60 days of April 13, 2016.	The figure represents: (a) 47,244 outstanding shares owned by Ms. Scarlett; and (b) options to purchase 18,487 shares, which Ms. Scarlett could exercise within 60 days of March 28, 2022. The figure does not include 12,424 shares underlying performance share awards that are subject to vesting and settlement within 60 days of March 28, 2022 to the extent that performance objectives are determined to be achieved.

(7)


~~(6)~~	The figure represents: (a) 27,781 outstanding shares owned by Mr. Nelsen; (b) 7,190 restricted shares subject to a time-based vesting schedule, which vest within 60 days of April 13, 2016; (c) 869 outstanding shares held in the name of the Trustee in connection with the Retirement Saving Plan for the benefit of Mr. Nelsen; and (d) options to purchase 217,631 shares, which Mr. Nelsen could exercise within 60 days of April 13, 2016.	The figure represents: (a) 10,000 outstanding shares owned by Ms. Caputo and (b) 38,139 restricted stock units, which Ms. Caputo could convert to shares within 60 days of March 28, 2022.

(8)


~~(7)~~	~~The figure rep~~resents: (a) 125,174 outstanding shares registered in the name of Mr. Anderson's spouse and a co-trustee, and held by them as trustees of a trust for the benefit of Mr. Anderson's spouse (Mr. Anderson has disclaimed beneficial ownership of these shares); (b) 11,995 outstanding shares owned by the Anderson Family Foundation, of which Mr. Anderson is a director; and (c~~) 17,766 restricted stock units, which Mr. Anderson could convert to shares within 60 days of April 13, 2016.~~	The figure represents: (a) 20,000 outstanding shares owned by Mr. Doyle and (b) 31,743 restricted stock units, which Mr. Doyle could convert to shares within 60 days of March 28, 2022.

(9)


~~(8)~~	The figure represents: (a) 10,000 outstanding shares owned by Ms. Caputo; (b) 17,766 restricted stock units, which Ms. Caputo could convert to shares within 60 days of April 13, 2016; and (c) options to purchase 12,500 shares, which Ms. Caputo could exercise within 60 days of April 13, 2016.	The figure represents restricted stock units that could be converted to shares within 60 days of March 28, 2022.

(10)


~~(9)~~	~~The figure represents 8,388 restricted stock units, which Mr. Doyle could convert to shares within 60 days of April 13, 2016.~~	The figure represents: (a) 8 outstanding shares held by a limited liability company formed by Mr. Marte’s spouse for the benefit of Mr. Marte and (b) 2,604 restricted stock units, which Mr. Marte could convert to shares within 60 days of March 28, 2022.

(11)


~~(10)~~	~~The figure represents 17,766 restricted stock units, which Mr. Fradin could convert to shares within 60 days of April 13, 2016.~~	The figure represents: (a) the outstanding and attainable shares, restricted stock units and options described in the preceding footnotes (2) through (10); (b) 152,718 outstanding shares owned by other executive officers; (c) 2,424 restricted shares subject to time-based vesting schedules, which are held by other executive officers and which vest within 60 days of March 28, 2022; and (d) options to purchase 101,709 shares, which the other executive officers could exercise within 60 days of March 28, 2022. The figure does not include 29,408 shares underlying performance share awards of the other executive officers that are subject to vesting and settlement within 60 days of March 28, 2022, to the extent that performance objectives are determined to be achieved.

(12)


~~(11)~~	The figure represents: (a) 10,730 outstanding shares owned by Ms. Higgins Victor; (b) 17,766 restricted stock units, which Ms. Higgins Victor could convert to shares within 60 days of April 13, 2016; and (c) options to purchase 40,000 shares, which Ms. Higgins Victor could exercise within 60 days of April 13, 2016.


~~(12)~~	~~The figure represents 13,743 restricted stock units, which Mr. Kenny could convert to shares within 60 days of April 13, 2016.~~


~~(13)~~	Ms. McLoughlin received a prorated equity grant of 3,606 restricted stock units on September 24, 2015, following her appointment to the Board. These units will vest one year from the grant date. If she were to leave the Board voluntarily within 60 days of April 13, 2016, she could convert to shares up to 2,598 units of her grant.


~~(14)~~	~~The figure represents 12,230 restricted stock units, which Mr. Millner could convert to shares within 60 days of April 13, 2016.~~


~~(15)~~	Ms. Munce received a prorated equity grant of 1,383 restricted stock units on March 14, 2016, following her appointment to the Board. These units will vest one year from the grant date. If she were to leave the Board voluntarily within 60 days of April 13, 2016, she could convert to shares up to 345 units of her grant.


~~(16)~~	The figure represents: (a) 2,434 outstanding shares owned by Mr. Vittecoq; (b) 17,766 restricted stock units, which Mr. Vittecoq could convert to shares within 60 days of April 13, 2016; and (c) options to purchase 21,250 shares, which Mr. Vittecoq could exercise within 60 days of April 13, 2016.

~~(17)~~

The figure represents: (a) the outstanding shares, restricted stock units and options described in the preceding footnotes (2) thru (16); (b) 28,712 outstanding shares owned by other executive officers; (c) 20,221 restricted shares subject to time-based vesting schedules, which are held by other executive officers and which vest within 60 days of April 13, 2016; and (d) options to purchase 100,434 shares, which the other executive officers could exercise within 60 days of April 13, 2016.


~~(18)~~	~~Mr. Schulze is our Founder and Chairman Emeritus,~~	Mr. Schulze is our Founder and Chairman Emeritus. He is not a member of our Board and is not considered an executive officer but ~~he is no longer a member of our Board and is not considered an executive officer. He~~ is listed here due to his status as a beneficial owner of more than 5% of our common stock. The figure represents: (a) 1,732,500 outstanding shares owned by Mr. Schulze; (b) 24,520,994 outstanding shares registered in the name of Mr. Schulze and a co-trustee, and held by them as trustees of a trust for the benefit of Mr. Schulze, of which up to $150 million in aggregate value of shares have been pledged by the trust as collateral to secure a line of credit; (c) 11,629,440 outstanding shares registered in the name of Mr. Schulze and co-trustees, and held by them as trustees of Grantor Retained Annuity Trusts for the benefit of Mr. Schulze and his family; (d) 1,143,043 outstanding shares registered in the name of Mr. Schulze and a co-trustee, and held by them as trustees of the Sandra Schulze Grantor Retained Annuity Trust; (e) 950,169 outstanding shares held by a limited partnership of which Mr. Schulze is the sole general partner (Mr. Schulze has disclaimed beneficial ownership of these shares except to the extent of his pecuniary interest therein); (f) 252,312 outstanding shares held by a limited partnership of which a limited liability company owned by Mr. Schulze is the sole general partner; (g) 31,672 outstanding shares held by a limited partnership of which a limited liability company owned by Mr. Schulze is the sole general partner; (h) 12,309 outstanding shares registered in the name of Mr. Schulze's spouse and co-trustees, and held by them as trustees of trusts for the benefit of Mr. Schulze's spouse (Mr. Schulze has disclaimed beneficial ownership of these shares); (i) 183,726 outstanding shares registered in the name of Mr. Schulze and a co-trustee, and held by them as trustees of the Sandra Schulze Revocable Trust dated June 14, 2001 (Mr. Schulze has disclaimed beneficial ownership of these shares); (j) 2,061 outstanding shares held in Mr. Schulze's individual retirement account; (k) 3,618,078 outstanding shares owned by The Richard M. Schulze Family Foundation, of which Mr. Schulze is the sole director; (l) 75,892 outstanding shares registered in the name of the Trustee in connection with the Retirement Saving Plan for the benefit of Mr. Schulze; and (m) options to purchase 7,500 shares, which he could exercise within 60 days of April 13, 2016.


~~(19)~~	As reported on the owner's most recent Schedule 13G filed with the SEC on February 12, 2016 to report ownership as of December 31, 2015. FMR LLC and certain related entities have sole voting power over 3,363,312 shares and sole dispositive power over 40,526,297 shares.


~~(20)~~	As reported on the owner's most recent Schedule 13G filed with the SEC on February 10, 2016 to report ownership as of December 31, 2015. The Vanguard Group has sole voting power over 548,647 shares, shared voting power over 31,600 shares, sole dispositive power over 27,940,460 shares and shared dispositive power over 592,357 shares.


~~(21)~~	As reported on the owner's most recent Schedule 13G filed with the SEC on January 26, 2016 to report ownership as of December 31, 2015. JPMorgan Chase & Co. has sole voting power over 25,757,775 shares, shared voting power over 39,362 shares, sole dispositive power over 27,998,484 shares and shared dispositive power over 55,367 shares.


~~(22)~~	As reported on the owner's most recent Schedule 13G filed with the SEC on January 22, 2016 to report ownership as of December 31, 2015. BlackRock, Inc. has sole voting power over 15,054,839 shares and sole dispositive power over 17,977,273 shares.

~~SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE~~

Section 16(a) of the Securities Exchange Act of 1934 requires that our directors, executive officers and shareholders who beneficially own more than 10% of our common stock file initial reports of ownership with the SEC. They must also file reports of changes in ownership with the SEC. In addition, they are required by SEC regulations to provide us copies of all Section 16(a) reports that they file with the SEC. Based solely on a review of such Section 16(a) reports, management and the Board believe our directors, executive officers and shareholders who beneficially own more than 10% of our common stock complied with the Section 16(a) filing requirements during the fiscal year ended January 30, 2016, except that on June 10, 2015 a Form 4 filed on behalf of Bradbury H. Anderson (as later amended on a Form 4/A filed on January 28, 2016) included bona fide gifts that occurred on June 16, 2014, July 24, 2014, November 10, 2014, December 2, 2014 and December 17, 2014.

~~CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS~~

Our Related Party Transactions Policy prohibits "related party transactions" unless approved by the Audit Committee and the Board. For purposes of our policy, a "related party transaction" is a transaction or series of transactions in which (a) the Company or a subsidiary is a participant, (b) the aggregate amount involved exceeds $120,000 and (c) any director, executive officer or shareholder beneficially owning more than 5% of our common ~~stock, or any of their respective immediate family members has a direct or indirect material interest.~~

A related party transaction will generally not be approved unless it provides us with a demonstrable incremental benefit and the terms are competitive with those available from unaffiliated third parties. Only Board members who do not have an intereststock. The figure represents: (a) 20,214,051 outstanding shares registered in the ~~transaction are permitted~~name of Mr. Schulze and a co-trustee, and held by them as trustees of a trust for the benefit of Mr. Schulze, of which up to ~~vote on a related party transaction. In addition, ongoing related party transactions are reviewed annually~~$150 million in aggregate value of shares have been pledged by the ~~Audit Committee~~trust as collateral to secure a line of credit; (b) 1,153,938 outstanding shares registered in the name of Mr. Schulze and ~~the Board to ensure that such transactions continue to provide the necessary incremental benefit to us~~a co-trustee, and ~~have competitive terms. Each~~held by them as trustees of the ~~transactions discussed below were approved (or re-approved if ongoing)~~Sandra Schulze Grantor Retained Annuity Trust; (c) 950,169 outstanding shares held by ~~the Audit Committee and the Board in March 2016, in accordance with our Related Party Transactions Policy.~~

~~We do not have any credit arrangements between our officers, directors, controlling persons and other insiders.~~

~~Richard M. Schulze~~

Asa limited partnership of ~~the date of this filing,~~which Mr. Schulze ~~owned approximately 13.6%~~is the sole general partner (Mr. Schulze has disclaimed beneficial ownership of ~~our common stock. On March 25, 2013, we entered into a letter agreement with Mr. Schulze pursuant~~these shares except to ~~which, among other things, Mr. Schulze was given~~ the lifetime honorary title of "Founder and Chairman Emeritus" of the Company, although he is not an executive and is no longer a member of our Board. Under this letter agreement, we agreed to compensate Mr. Schulze with an annual base salary of $150,000 through fiscal 2018 for his services as Chairman Emeritus, and to provide lifetime medical benefits for him, his spouse and his eligible dependents in accordance with our plans, practices, programs and policies in effect generally for our executives and their dependents. We also agreed to provide office space and administrative support, and to reimburse Mr. Schulze for his costs and out-of-pocket expenses incurred in the performanceextent of his ~~duties as Chairman Emeritus. Mr. Schulze was also entitled, during the term~~pecuniary interest therein); (d) 31,672 outstanding shares held by a limited partnership of the letter agreement, to nominate two directors for appointment to the Board of Directors. Messrs. Anderson and Lenzmeier were nominated and elected to the Board as part of this arrangement. The letter agreement's term expired when Mr. Schulze reached the age of 75 (which occurred in January 2016), except as specifically described above.

During fiscal 2016, we had ongoing lease obligations for one of our former U.S. Best Buy store locations leased from Mr. Schulze. We entered into the real estate lease with Mr. Schulze prior to 1990, and the Board approved the lease (with Mr. Schulze not voting). The Board relied on one or more of its members who had no financial interest in the property to review market comparisons, look into alternative rental agreements and negotiate with Mr. Schulze. At the time of entering into this lease, the Board determined that it was in our best interest and had terms that were competitive with terms available from unaffiliated third parties. We closed this store in May 2012. The store location lease included escalation clauses and, depending upon our exercise of successive renewal options, ran through 2018. We continued to pay rent for this location per the terms of the lease. During fiscal 2016, we paid aggregate rent of approximately $613,000. In April 2016, with Audit Committee and Board approval, we entered intowhich a lease termination agreement for this location in which we agreed to pay a termination fee of approximately $300,000 in exchange for a release from our future rent and other obligations under the lease (which totaled approximately $1.2 million).

~~We purchase certain store fixtures from Phoenix Fixtures, Inc. ("Phoenix"), a~~limited liability company owned by Mr. ~~Schulze's late brother, Robert~~ Schulze ~~(his death occurred~~is the sole general partner; (e) 172,831 outstanding shares registered in ~~June 2015). Phoenix contracts are submitted through a competitive bidding process in which Phoenix is free to participate. Payments made to Phoenix are pursuant to contracts awarded following~~ the ~~competitive bidding process. In light~~name of Mr. Schulze's relationship with Phoenix, the Board reviewed our transactions with Phoenix and determined that the transactions were on fair terms to us and that Phoenix provides advantages with respect to service and delivery as compared with its competitors. Accordingly, the Board approved the transactions and our continued business dealings with Phoenix. The total amount paid to Phoenix during fiscal 2016 was approximately $8.3 million USD and $44,000 CAD, compared to approximately $7.5 million USD and $31,000 CAD paid in fiscal 2015. All transactions with Phoenix during fiscal 2016 were subject to the competitive bidding process discussed above to ensure fair prices and terms.

Ryan Green, Mr. Schulze's step-son, is employed with us as a Senior Director in our Properties department at our corporate headquarters in Richfield, Minnesota. Mr. Green's total cash compensation for fiscal 2016 was approximately $202,000. Mr. Green also received an annual long-term incentive award of 1,400 time-based restricted sharesSchulze and a ~~mid-year long-term incentive award of 225 time-based restricted shares, which vest in one-third increments on each anniversary~~co-trustee, and held by them as trustees of the ~~grants for three years,~~Sandra Schulze Revocable Trust dated June 14, 2001 (Mr. Schulze has disclaimed beneficial ownership of these shares); (f) 2,061 outstanding shares held in Mr. Schulze’s individual retirement account; (g) 763,248 outstanding shares owned by The Richard M. Schulze Family Foundation, of which Mr. Schulze is the sole director and ~~which awards are consistent for other employees at his level. Mr. Green is eligible to receive employee benefits generally available to all employees. Mr. Green's employment with us began~~(h) 72,390 outstanding shares registered in ~~August 2012. Mr. Schulze's family member is compensated at a level comparable to~~ the ~~compensation paid to non-family members in similar positions at Best Buy.~~

~~Fidelity~~

~~FMR LLC ("Fidelity") filed an amended Schedule 13G in February 2016, stating that it beneficially owns 11.8%~~name of the Company's common stock. As a result of beneficially owning more than 5% of our common stock, Fidelity is currently considered a “related party” under our Related Party Transactions Policy. Certain affiliates of Fidelity provide services to usTrustee in connection with the ~~record keeping and administration~~Retirement Saving Plan for the benefit of ~~our stock plans (including~~Mr. Schulze.

(13)

Share numbers are as reported on the Employee Stock Purchase Plan and the Long-Term Incentive Plan). We paid these entities approximately $510,000 for these services for fiscal 2016. The administrative services contracts were initially entered into prior to Fidelity'sowner’s most recent Schedule ~~13G filing and 5% holder status. The contracts were negotiated at arm's length, and there is no indication that the Company or Fidelity received preferential treatment as a result of the relationship.~~

~~JPMorgan Chase~~

~~JPMorgan Chase & Co. ("JPMorgan")~~13G/A filed a Schedule 13G in January 2016, stating that it beneficially owns 8.1% of the Company's common stock. As a result of beneficially owning more than 5% of our common stock, JPMorgan is currently considered a “related party” under our Related Party Transactions Policy. JPMorgan and its affiliates provide services to us related to our revolving credit facility, share repurchase program and depository banking needs. We paid JPMorgan and its affiliates approximately $974,000 USD and $313,000 CAD for these services for fiscal 2016. The agreements related to these services were initially entered into prior to JPMorgan's Schedule 13G filing and 5% holder status. The agreements were negotiated at arm's length, and there is no indication that the Company or JPMorgan received preferential treatment as a result of the relationship.

~~AUDIT COMMITTEE REPORT~~

~~The information contained in this Audit Committee Report shall not be deemed to be "soliciting material" or "filed" or incorporated by reference in future filings~~ with the SEC ~~or subject~~on February 9, 2022, to report ownership as of December 31, 2021. The Vanguard Group has shared voting power over 364,536 shares, sole dispositive power over 26,760,732 shares and shared dispositive power over 945,135 shares.

(14)

Share numbers are as reported on the ~~liabilities of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that we specifically incorporate it by reference into a document~~owner’s most recent Schedule 13G/A filed ~~under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.~~

~~In fiscal 2016, the Audit Committee included five members. The Audit Committee acts under a written charter adopted and approved by the Board. The Audit Committee's charter is posted on our website at~~ ~~www.investors.bestbuy.com. All members of the Audit Committee meet~~with the SEC on February 7, 2022, to report ownership as of December 31, 2021. BlackRock, Inc. has sole voting power over 18,969,792 shares and NYSE definitions of independence and financial literacy for audit committee members. In addition, the Board has determined that all of the five members of the Audit Committee who served during fiscal 2016 are "audit committee financial experts" for purposes of SEC rules. No member of the Audit Committee serves on the audit committee of more than three public companies.sole dispositive power over 21,872,180 shares.

DELINQUENT SECTION 16(a) REPORTS

In June 2015, Mr. Kenny was appointed to serve as Chair of the Audit Committee. In November 2015, Ms. McLoughlin was appointed to the Audit Committee. Ms. Munce was appointed to the Audit Committee in March 2016, following the conclusion of fiscal 2016.

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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

Our Related Party Transactions Policy prohibits “related party transactions” unless approved by the Audit Committee and the Board. For purposes of our policy, a “related party transaction” is a transaction or series of transactions in which (a) the Company or a subsidiary is a participant, (b) the aggregate amount involved exceeds $120,000 and (c) any director, executive officer or shareholder beneficially owning more than 5% of our common stock, or any of their respective immediate family members has a direct or indirect material interest.

A related party transaction will generally not be approved unless it provides us with a demonstrable incremental benefit and the terms are competitive with those available from unaffiliated third parties. Only Board members who do not have an interest in the transaction are permitted to vote on a related party transaction. In addition, ongoing related party transactions are reviewed by the Audit Committee and the Board to ensure that such transactions continue to provide the necessary incremental benefit to us and have competitive terms. Each of the transactions discussed below were approved (or re-approved if ongoing) by the Audit Committee and the Board in March 2022, unless otherwise noted, in accordance with our Related Party Transactions Policy. We do not have any credit arrangements between our officers, directors, controlling persons and other insiders.

Richard M. Schulze

As of the date of this filing, Mr. Schulze owned approximately 10.3% of our common stock. On March 25, 2013, we entered into a letter agreement with Mr. Schulze pursuant to which, among other things, Mr. Schulze was given the lifetime honorary title of “Founder and Chairman Emeritus” of the Company, although he is not an executive and is no longer a member of our Board. Under this letter agreement, we agreed to compensate Mr. Schulze with an annual base salary of $150,000 through fiscal 2018 for his services as Chairman Emeritus, and to provide lifetime medical benefits for him, his spouse and his eligible dependents in accordance with our plans, practices, programs and policies in effect generally for our executives and their dependents. We also agreed to provide office space and administrative support, and to reimburse Mr. Schulze for his costs and out-of-pocket expenses incurred in the performance of his duties as Chairman Emeritus. The letter agreement’s term has been successively renewed since that time, including in 2021 for fiscal 2022, except as specifically described above in regard to certain lifetime health benefits.

Jason Bonfig

Mr. Bonfig’s fiancée is employed with us as a Vice President on our Omnichannel team at our corporate headquarters in Richfield, Minnesota. Her total cash compensation in fiscal 2022 was approximately $327,550. She also received an annual long-term incentive award of 1,322 time-based restricted shares, which vest in one-third increments on each anniversary of the grant for three years, and 395 performance shares, which vest after three years based on achievement of performance. Her award is consistent with awards for other employees at her level. She is eligible to receive employee benefits generally available to all employees. Her employment with us began in 1997. She is compensated at a level comparable to the compensation paid to unrelated employees in similar positions at Best Buy.

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AUDIT COMMITTEE REPORT

The key responsibility of the Audit Committee is to assist the Board in overseeing the integrity of the Company’s financial statements and financial reporting processes. The Audit Committee’s charter, which was approved by our Board, is posted on our website at www.investors.bestbuy.com. During fiscal 2022, the Audit Committee included five members. All Audit Committee members meet the SEC and NYSE definitions of independence and financial literacy for audit committee members. The Board has determined that Ms. McLoughlin, Mr. Marte and Mr. Millner are “audit committee financial experts” for purposes of SEC rules based on their relevant experience. No member of the Audit Committee serves on the audit committee of more than three public companies.

Committee Meetings

The Audit Committee met ~~eight~~nine times ~~including three times via conference call,~~ during fiscal ~~2016.~~2022. The Audit Committee schedules its meetings to ensure it has sufficient time to devote appropriate attention to all of its tasks. The Audit Committee meetings include regular executive sessions with our independent registered public accounting firm, Deloitte & Touche LLP ("(“D~~&T"~~&T”), our internal auditors and management. The Audit Committee also discusses with our internal auditors and D&T the overall scope and plans for their respective audits.

~~Recommendation Regarding~~Fiscal 2022 Audited Financial Statements

The Audit Committee, on behalf of the Board, reviewed and discussed with both management and D&T our annual audited consolidated financial statements for the fiscal year ended January ~~30, 2016,~~29, 2022, and our quarterly operating results for each quarter in such fiscal year, along with the related significant accounting and disclosure issues. The Audit Committee has discussed with the independent auditors the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board ~~Auditing Standard No. 16 "The Auditor's Communication with Audit Committees."~~

(“PCAOB”) (U.S.) and the Commission.

The Audit Committee reviewed and discussed with D&T its independence from us and our management. As part of that review, the Audit Committee received from D&T the written disclosures and the letter required by applicable rules of the ~~Public Company Accounting Oversight Board~~PCAOB (U.S.) regarding the independent ~~accountant's~~accountant’s communications with audit committees concerning independence. In addition, the Audit Committee reviewed all services provided by and the amount of fees paid to D&T in fiscal ~~2016.~~2022. In reliance on the reviews and discussions with management and D&T, the Audit Committee believes that the services provided by D&T were compatible with, and did not impair, its independence.

Based on the reviews and discussions referred to above, the Audit Committee recommended to the Board, and the Board approved, that our annual audited consolidated financial statements be included in our Annual Report on Form 10-K for the period ended January ~~30, 2016, as filed~~29, 2022, for filing with the SEC.

AUDIT COMMITTEE

Thomas L. Millner (Chair)

~~David W. Kenny (Chair)~~

Mario J. ~~Patrick Doyle~~Marte

Karen A. McLoughlin

~~Thomas L. Millner~~

~~Gérard R. Vittecoq~~

Claudia F. Munce

Steven E. Rendle

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ITEM OF BUSINESS NO. 2 — RATIFICATION OF APPOINTMENT OF OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

THIS SECTION SHOULD BE READ IN CONJUNCTION WITH THE " “AUDIT COMMITTEE ~~REPORT"~~REPORT”

The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of the independent registered public accounting firm retained to audit the Company’s financial statements. As part of this oversight, the Audit Committee considers the firm’s independence, qualifications, performance, and whether the independent registered public accounting firm should be rotated, as well as the impact of such a rotation. Deloitte & Touche LLP (“D&T&T”) has been retained as our independent registered public accounting firm since ~~fiscal 2006.~~2005. In compliance with Sarbanes-Oxley requirements, the Lead Audit Partner from D&T rotates off our account every five years, with oversight in selection by the Audit Committee. The last Lead Audit Partner rotation occurred in March 2021. The Audit Committee has appointed ~~Deloitte & Touche LLP ("~~D~~&T")~~&T as our independent registered public accounting firm for the fiscal year ending January ~~30, 2016.~~28, 2023. We will ask shareholders to ratify the appointment of D&T as our independent registered public accounting firm at the Meeting. Representatives of D&T are expected to ~~be present at~~attend the Meeting. They will have the opportunity to make a statement if they desire to do so and are expected to be available to respond to appropriate questions.

Principal Accountant Services and Fees

The Audit Committee is responsible for the audit fee negotiations associated with the retention of our independent registered public accounting firm. For the fiscal years ended January ~~30, 2016,~~29, 2022, and January ~~31, 2015,~~30, 2021, D&T served as our independent registered public accounting firm. The following table presents the aggregate fees incurred for services rendered by D&T during fiscal ~~2016~~2022 and fiscal ~~2015,~~2021, respectively. The fees listed below were pre-approved by our Audit Committee pursuant to the Audit ~~Committee's~~Committee’s pre-approval policy as described below:

Service Type Fiscal 2016
Fiscal 2015
Audit Fees⁽¹⁾
$ 2,740,000
$ 3,072,000
Audit-Related Fees⁽²⁾
400,000
1,133,000
Tax Fees⁽³⁾
50,000
45,000
Total Fees $ 3,190,000
$ 4,250,000

Service Type	Fiscal 2022	Fiscal 2021
Audit Fees⁽¹⁾	$ 3,135,000	$ 2,973,000
Audit-Related Fees⁽²⁾	1,034,000	368,000
Tax Fees⁽³⁾	150,000	—
Total Fees	$4,319,000	$3,341,000

(1)

Consists of fees for professional services rendered in connection with the audits of our consolidated financial statements and the effectiveness of our internal control over financial reporting for the fiscal years ended January ~~30, 2016,~~29, 2022, and January ~~31, 2015;~~30, 2021; the reviews of the consolidated financial statements included in each of our Quarterly Reports on Form 10-Q during those fiscal years; and consultations on accounting matters.


(2)	Consists primarily of fees for acquisition due diligence and statutory audit filings, as well as the audits of our retirement savings plans and ~~foundations.~~foundation.


(3)	Consists ~~primarily~~ of fees related to tax ~~compliance services based on time and materials.~~consulting services.

It is our policy that our independent registered public accounting firm be engaged to provide primarily audit and audit-related services. However, pursuant to the policy, in certain circumstances and using stringent standards in its evaluation, the Audit Committee may authorize our independent registered public accounting firm to provide tax services when it determines that D&T is the most efficient and effective tax service provider.

Pre-Approval Policy

Consistent with SEC rules regarding auditor independence, the Audit Committee is responsible for appointing, setting fees for and overseeing the work of our independent registered public accounting firm. In recognition of this responsibility and in accordance with the Securities Exchange Act of 1934, as amended, it is the policy of the Audit Committee to pre-approve all permissible services provided by our independent registered public accounting firm, except for minor audit-related engagements which in the aggregate do not exceed 5% of the fees we pay to our independent registered public accounting firm during a fiscal year.

Each year, prior to engaging our independent registered public accounting firm, management submits to the Audit Committee for approval a list of services expected to be provided during that fiscal year within each of the three categories of services described below, as well as related estimated fees, which are generally based on time and materials.

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Audit services include audit work performed on the financial statements, as well as work that generally only the independent registered public accounting firm can reasonably be expected to provide, including comfort letters and discussions surrounding the proper application of financial accounting and/or reporting standards.

Audit-related services include assurance and related services that are traditionally performed by the independent registered public accounting firm, including due diligence related to mergers and acquisitions, statutory audits, employee benefit plan audits and special procedures required to meet certain regulatory requirements.

Tax services include tax consulting services, as well as compliance and other ~~non-advisory~~ services performed by the independent registered public accounting firm when it is most efficient and effective to use such firm as the tax service provider.

As appropriate, the Audit Committee then pre-approves the services and the related estimated fees. The Audit Committee requires our independent registered public accounting firm and management to report actual fees versus the estimate periodically throughout the year by category of service. During the year, circumstances may arise when it becomes necessary to engage our independent registered public accounting firm for additional services not contemplated in the initial annual proposal. In those instances, the Audit Committee pre-approves the additional services and related fees before engaging our independent registered public accounting firm to provide the additional services.

Board Voting Recommendation

The members of the Audit Committee and the Board believe that the continued retention of D&T to serve as the Company’s independent registered public accounting firm is in the best interests of the Company and our shareholders. The Board recommends that shareholders vote FOR the proposal to ratify the appointment of D&T as our independent registered public accounting firm for the fiscal year ending January 28, ~~2017.~~

2023.

The affirmative vote of a majority of the voting power of the shares present and entitled to vote at the Meeting is required to ratify D&T as our independent registered accounting firm.

Although ratification is not required pursuant to our By-laws or otherwise, the Board is submitting the selection of D&T to our shareholders for ratification because we value our ~~shareholders'~~shareholders’ views on the ~~Company's~~Company’s independent registered public accounting firm. If the appointment of D&T were not to be ratified by the shareholders, the Audit Committee would not be required to appoint another independent registered public accounting firm but would give consideration to an unfavorable vote. Even if the selection is ratified, the Audit Committee, in its discretion, may select a different independent registered public accounting firm at any time during the year if it determines that such a change would be in the best interests of the Company and our shareholders.

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ITEM OF BUSINESS NO. 3 — ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION

We are providing our shareholders with an opportunity to cast an advisory vote, a “Say on Pay,” regarding our fiscal 2022 named executive officer (“NEO”) compensation program, as described in the Executive and Director Compensation section of this proxy statement.

Information About the Advisory Vote to Approve Named Executive Officer Compensation

The Compensation Committee establishes, recommends and governs all of the compensation and benefits policies and actions for the Company’s NEOs. While the advisory vote to approve the compensation of our named executive officers is not binding, it provides useful information to our Board and Compensation Committee regarding our shareholders’ views of our executive compensation philosophy, policies and practices. The Compensation Committee values our shareholders’ opinions and will take the results of the vote into consideration when determining the future compensation arrangements for our named executive officers. At the Company’s 2019 Regular Meeting of Shareholders, our shareholders voted to hold the non-binding shareholder vote to approve the compensation of our named executive officers each year. Accordingly, the Company currently intends to hold such votes annually. The next such vote is expected to be held at the Company’s 2023 Regular Meeting of Shareholders.

As detailed in the Executive and Director Compensation — Compensation Discussion and Analysis section, we believe our fiscal 2022 executive compensation program reflects market appropriate practices and balances risk and reward in relation to our overall business strategy. Our executive compensation program is focused on pay-for-performance and seeks to mitigate risks related to compensation to ensure management and shareholder interests in long-term value creation are aligned.

Accordingly, we ask that our shareholders cast an advisory vote to approve the following resolution:

RESOLVED, that the shareholders of the Company approve, on an advisory basis, the compensation of the named executive officers for the fiscal year ended January 29, 2022, as described in the Executive and Director Compensation — Compensation Discussion and Analysis section and the compensation tables and related material disclosed in the Company’s proxy statement for its 2022 Regular Meeting of Shareholders pursuant to the compensation disclosure rules of the Securities and Exchange Commission.

Board Voting Recommendation

Our Board recommends an advisory vote FOR approval of the fiscal 2022 compensation of our NEOs as disclosed in this proxy statement pursuant to the SEC’s compensation disclosure rules. The affirmative vote of at least a majority of the voting power of the shares present, in person or by proxy, and entitled to vote is required for advisory approval of our NEO compensation.

It is intended that, unless otherwise instructed, the shares represented by proxy will be voted “FOR” the advisory vote on our named executive compensation.

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EXECUTIVE AND DIRECTOR COMPENSATION

Compensation Discussion and Analysis

~~Introduction~~

The following Compensation Discussion and Analysis describes how the Compensation Committee of the Board decided to compensate our fiscal ~~2016 NEOs:~~2022 Named Executive Officers (“NEOs”):

	Name	Principal Position
	Corie Barry	Chief Executive Officer
l	~~Hubert Joly, Chairman and~~ Matt Bilunas	Executive Vice President, Chief ~~Executive Officer;~~Financial Officer
l	~~Sharon L. McCollam,~~ Jason Bonfig	Executive Vice President, Chief ~~Administrative~~Merchandising Officer ~~and Chief Financial Officer;~~
l	~~Shari L. Ballard,~~Damien Harmon	Executive Vice President, ~~U.S. Retail and Chief~~Omnichannel
	Kamy Scarlett	Executive Vice President, Human Resources ~~Officer;~~⁽¹⁾& Best Buy Canada
l	~~R. Michael Mohan, Chief Merchandising Officer; and~~
l	~~Keith J. Nelsen, General Counsel and Secretary.~~

(1) Effective March 1, 2016, Ms. Ballard took on a new role. While remaining President of U.S. Retail, she will also focus on accelerating our efforts around waste and efficiency. A new Chief Human Resources Officer, Paula Baker, was promoted internally effective March 1, 2016.

~~Consideration of Prior “Say on Pay” Votes~~

At our 2015 Meeting, 98% of our shareholders voted in support of our “Say on Pay” proposal, which was on par with our results in 2014, and an increase from the level of support we received in 2013.

We believe the level of support we received from shareholders for the last three years was driven in part by our improved performance and continued commitment to align pay and performance, which we communicated to investors through shareholder outreach prior to each annual meeting. During fiscal 2016, we reached out to all of our top twenty shareholders, representing approximately 70% of our outstanding shares, as well as several of our top fifty shareholders offering to discuss any concerns regarding executive compensation practices and other governance issues. As a result of these outreach efforts, we had in-person meetings and engaged in direct conversations with several shareholders to answer their questions, provide commentary on the compensation decisions made during the year and receive feedback to be considered when making future decisions. Further, as discussed in the ~~Corporate Governance at Best Buy — Shareholder Engagement~~ ~~section, we regularly engage with our shareholders throughout the year regarding their various priorities, and we welcome their feedback on our practices and policies.~~

~~Summary of Executive Compensation Practices~~

~~Pay for Performance~~


ü	We tie pay to performance by setting clear financial goals and delivering the majority of compensation opportunity through variable incentives in which payout is based on performance against predetermined goals or absolute and relative changes in our stock price over time.


ü	~~We use multiple performance metrics that differ for long-term and short-term plans.~~


ü	~~Our short term incentive plan includes a minimum performance threshold that requires a minimal level of operating income be achieved before any aspect of the bonus plan may be earned.~~

The ü A large portion of our long-term incentive program (50% for the CEO and one-third for the other NEOs) is performance based, and long-term and short-term incentives comprise a large portion of our total compensation opportunity (90% for the CEO and 80%, on average, for the other NEOs).

~~Risk Mitigators~~


ü	~~We review peer group market data when making executive compensation decisions.~~


ü	~~We have share ownership and trading guidelines for executive officers and Board members.~~


ü	~~We have anti-hedging and anti-pledging policies and clawback provisions.~~


ü	~~We have robust processes to identify and mitigate compensation risk.~~


ü	~~Our Compensation Committee uses an outside independent compensation consulting firm that performs no other services for the Company.~~

~~Shareholder Engagement~~


ü	~~We have a shareholder engagement program that covers, among other things, executive compensation issues.~~


ü	~~We provide shareholder feedback to the Compensation Committee, which considers the feedback when reviewing executive compensation programs and policies.~~

~~Key Fiscal 2016 Compensation Decisions~~

~~In fiscal 2015, two years after launching Renew Blue, we had made significant progress in addressing our two biggest challenges (declining comparable sales and declining margins):~~

~~Our Domestic comparable sales increased, and~~

~~Our Domestic non-GAAP operating income rate improved 100 basis points to 4.1%.~~

Accordingly, in fiscal 2016, the Compensation Committee made market-based adjustments to acknowledge and retain the critical leaders that are driving Best Buy’s transformation. These changes include base salary, short-term incentive and/or long-term incentive adjustments, depending on each position, the incumbent and market trends. A summary of these changes is included below and explained in further detail within ourCompensation Discussion and Analysis:

~~Base Salaries:~~ ~~We made base salary changes for Ms. Ballard and Messrs. Mohan and Nelsen due to market comparisons and in recognition of each of their increased or continued growth in their respective roles.~~

~~Short-Term Incentives:~~ We increased Ms. Ballard’s short-term incentive target payout percentage from 125 to 150% in recognition of her expanded role, and Mr. Mohan’s target payout percentage from 125 to 150% in acknowledgment of his continued progress in his role and to match the market.

~~Long-Term Incentives:~~ Our long-term incentive program changes included increased targets for the NEOs to reflect market practice and promote retention of key leadership during this critical period of transformation, as well as a one-time award for Ms. Ballard to acknowledge comparable rates for the increased scope of her responsibilities and impact of her contributions to our Company performance. In addition, we increased the stock ownership target for our CEO from 140,000 shares to 200,000 shares to further promote alignment of officer and shareholder interests.

~~Other Compensation:~~ The NEOs continue to receive the same employee benefits, perquisites and other rewards generally offered to our U.S.-based officers. We do not provide special pension benefits or other non-performance-based entitlements to the NEOs that are inconsistent with our compensation philosophy.

~~Preview of Key Fiscal 2017 Compensation Decisions~~

In fiscal 2016, we continued to make progress in our transformation journey. It marked the second year in a row that we increased our domestic revenue and expanded our operating margins. We saw a continued improvement in customer satisfaction as our Net Promoter Score (including both purchasers and non-purchasers) improved by more than 300 basis points and we grew online revenue 13% to more than $4 billion, or 11% of total domestic revenue. We also delivered $150 million against our $400 million cost reduction and gross profit optimization efforts, which was in addition to the $1 billion in costs we already removed from our business since fiscal 2013.

~~Our fiscal 2016 performance resulted in modest compensation changes, a summary of which is included below:~~

~~Base Salaries:~~ ~~We made slight increases to the base salary rates for two of the NEOs in light of the scope of their roles and responsibilities.~~

~~Short-Term Incentives:~~ ~~We made no changes to the short-term incentive plan target payout percentages for the NEOs.~~

~~Long-Term Incentives:~~ Our long-term incentive program changes focused on changing the “mix” of vehicles for the NEOs, other than the CEO, to reflect the stage of growth Best Buy is in currently and to promote performance and retention of key leadership. For fiscal 2017, the mix will be 50% time-based restricted shares and 50% performance share awards. We also added a performance requirement to the time-based restricted shares granted to our top executives to further align their interests with the shareholders’ interests.

~~Other Compensation:~~ ~~No material changes were made to the employee benefits, perquisites or other rewards offered to our NEOs.~~

~~Compensation Discussion and Analysis~~

~~Compensation Philosophy, Objectives and Policies~~

The Company’s compensation philosophy is to align executive compensation with shareholders’ interests. To that end, the Compensation Committee works to ensure that base salaries are market competitive, and short- and long-term incentives are heavily weighted toward Company performance and are within the range of market practice.

~~We achieve these objectives by using programs that are designed to align employee interests with Company goals and create a common vision of success without undue risk.~~

~~We utilized the following executive compensation policies and practices during fiscal 2016:~~

~~Pay-for-performance.~~ We tie pay to performance. The majority of executive pay is not guaranteed but instead is tied to performance metrics designed to drive shareholder value. If performance goals are not attained, no incentive compensation is paid.

~~Mitigate undue risk.~~ We mitigate undue risk by, among other things, utilizing caps on incentive award payments and vesting periods on potential equity payments, clawback provisions, restrictive covenants and multiple performance metrics. The Compensation Committee annually reviews our compensation risk profile to ensure that our compensation-related risks are not reasonably likely to have a material adverse effect on the Company.

~~Independent Compensation Committee and Committee Consultant.~~ The Compensation Committee is comprised solely of independent directors. The Compensation Committee's independent compensation consultant is retained directly by the Compensation Committee and performs no other consulting or other services for the Company.

~~Shareholder engagement.~~ ~~We routinely engage with shareholders regarding executive compensation and related issues.~~

~~Re-pricing of stock options.~~ ~~Stock options may not, without the approval~~ portion of our ~~shareholders, be (i) amended to reduce their initial exercise price (except for adjustments in~~proxy statement includes the ~~case of a stock split or similar event); (ii) canceled and replaced by stock options having a lower exercise price; or (iii) canceled and replaced with cash or other securities.~~following:

~~Stock ownership and trading policies.~~ We have stock ownership guidelines for all of our executive officers. As of the end of fiscal 2016, each NEO was in compliance with the guidelines. We prohibit all employees, including the NEOs and members of the Board, from hedging Company securities. Executive officers and Board members are also prohibited from pledging Company securities as collateral for a loan or from holding Company securities in a margin account.

~~NEOs' benefits.~~ ~~Our executive officers, including the NEOs, generally receive the same employee benefits as other officers. We do not have an executive retirement plan that provides extra benefits to the NEOs.~~

~~Governance~~

~~The following table summarizes the roles of each of the key participants in the executive compensation decision-making process for our NEOs.~~

	CD&A Section	What’s included?
	Executive Summary	Highlights of our executive compensation program, including our shareholder engagement process and Committee consideration of Say on Pay votes, and a summary of our fiscal 2022 executive compensation decisions
~~Key Participant~~	Compensation Philosophy, Objectives & Policies
~~Compensation Committee~~
~~Role in Decision-Making Process~~
~~Establishes our compensation objectives.~~

~~Determines, approves and oversees executive compensation, including~~ Overview of the design, competitiveness and effectiveness of our compensation programs. Also oversees the development, evaluation and approval of incentive compensation, equity-based pay and other material employee benefit plans for all employees. The Compensation Committee may delegate its responsibility to oversee compensation employees other than for the NEOs or other Section 16 officers.

~~The Compensation Committee's charter is available on our website at~~ ~~www.investors.bestbuy.com~~.

~~Compensation Committee's Independent Compensation Consultant~~
~~Role in Decision-Making Process~~
Reviews the recommendations of management with the Compensation Committee to ensure that the recommendations are aligned with our objectives and are reasonable when compared to our market for executive and director talent.

~~Assists~~philosophy, objective & policies utilized by the Compensation Committee in ~~the design~~implementing our executive compensation program
	Governance	Summary of the ~~variable incentive plans, the determination of the overall~~key participants in our executive compensation ~~mix, the selection of performance metrics~~process and the ~~setting of~~role each plays in the ~~performance goals and ranges.~~decision-making

~~Provides analysis and crafts recommendations for the Compensation Committee in the setting of CEO compensation opportunity.~~

~~Reviews the results of the compensation risk assessment with the Compensation Committee and identifies key takeaways.~~

~~Provides perspective on market practice and information about emerging trends.~~

The Compensation Committee has sole discretion and adequate funding to engage consultants in connection with compensation-related matters. Frederic W. Cook & Co., Inc. has served as the Compensation Committee's independent compensation consultant since the fall of 2012.

~~CEO~~
~~Role in Decision-Making Process~~
Creates and presents recommendations to the Compensation Committee for our other executive officers and provides his perspective. Does not participate in or otherwise influence recommendations regarding his own compensation.

~~Human Resources ("HR")~~
~~Role in Decision-Making Process~~
Provides the Compensation Committee with market analytics in support of the CEO's recommendations for our executive officers, other than the CEO. Management does not make recommendations on CEO compensation. As necessary, HR engages outside consultants, including Willis Towers Watson & Co. for fiscal 2016, to assist with its analytics and recommendations.

~~Finance~~
~~Role in Decision-Making Process~~
~~Provides the Compensation Committee with financial analytics in support of the short- and long-term program design and target setting.~~

~~Compensation Consultant Independence~~

The Compensation Committee reviewed the independence of Frederic W. Cook & Co., Inc. under NYSE and SEC listing standards. Based on its review and information provided by Frederic W. Cook & Co., Inc. regarding the provision of its services, fees, policies and procedures, presence (if any) of any conflicts of interest, ownership of Best Buy stock, and other relevant factors, the Compensation Committee concluded that the work of Frederic W. Cook & Co., Inc. has not raised any conflicts of interest and it is deemed to be an independent advisor to the Compensation Committee.

Factors in Decision-Making

Overview of factors considered by the Compensation Committee in its decision-making process

~~Market Competitive Data.~~ ~~For fiscal 2016,~~Executive Compensation Elements

Description of each element of ~~compensation and the level of total direct compensation for~~ our NEOs was considered against market benchmarks and views of individual performance. Our Compensation Committee reviewed publicly available compensation data for our peer group of companies, Fortune 100 companies and general industry survey data. We used available information and monitored actions taken by our peer group to evaluate market trends and to assess the long-term incentive and overall competitiveness ofNEO pay mix within our executive compensation ~~levels. We did not, however, seek~~program, including specific details regarding decisions made within each element

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Executive Summary

After an unusual year in fiscal 2021 where the Compensation Committee adapted its compensation oversight and decision-making process to align with the rapidly evolving state of the business, fiscal 2022 brought stability and a return to the Committee’s well-established approach to executive compensation. Actions such as temporary pay reductions and annual incentive plan modifications were replaced by the regular annual process of NEO pay review and a full-year annual incentive pay opportunity based upon financial metrics.

Fiscal 2022 included a leadership change due to the departure of our former Chief Operating Officer, Mike Mohan, in June 2021. This departure led to some additional compensation actions for some of our NEOs as a result of increases in responsibility.

Even as the COVID-19 pandemic continued to present challenges, the Company remained committed to making progress on our purpose to enrich lives through technology. We do that by leveraging our unique combination of tech expertise and human touch to meet our customers’ every day needs whether they come to us online, visit our stores or invite us into their homes. The financial results we achieved in fiscal 2022, as summarized below, demonstrate that we were able to deliver strong results by executing on our strategies.

*	For GAAP to ~~establish any specific element~~non-GAAP reconciliations, please refer to the schedule entitled Reconciliation of Non-GAAP Financial Measures.

The strong performance in fiscal 2022 resulted in short-term incentive award payouts of 183% of the target. See the Executive Compensation Elements—Short-Term Incentive section for our description of our fiscal 2022 STI plan. The results of the Enterprise Revenue and Total Shareholder Return (“TSR”) portions of the Performance Share Awards that are earned based on a three-year performance period, including fiscal 2022, have not been approved by the Compensation Committee as of the date of this filing. The Enterprise Revenue portion of these awards is based on the compound annual growth rate of Enterprise Revenue for fiscal 2020 through fiscal 2022. The TSR portion of these awards is based on a comparison of TSR in the first quarter of fiscal 2020 with the first quarter of fiscal 2023. We anticipate the Compensation Committee will review results and make a determination on the payout of these awards following the conclusion of the first quarter of fiscal 2023. These awards and payouts are explained in further detail within the Executive Compensation Elements section of this proxy statement.

As the Company looks ahead in fiscal 2023, the Committee and management are continuing to balance the need to attract, motivate and retain executive talent through performance-based compensation with an enduring focus on the Company’s long-term strategy. This requires focus on a multi-year view of performance against the Company’s long-term plans to avoid compensation outcomes driven by temporary external factors, and we remain committed to delivering on our three-year commitments even in the face of unprecedented uncertainties.

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Prior “Say on Pay” Votes

We are also pleased that 94.1% of the votes cast on the advisory “Say on Pay” proposal at the 2021 Meeting of shareholders were voted in favor of our executive compensation program.

We believe the high level of support we received from shareholders for the last several years is driven by our performance and by our continued commitment to align pay and performance. In the fall of fiscal 2022, following our 2021 Meeting, we reached out to our top forty shareholders, representing approximately 64% of our outstanding shares, offering to discuss any questions or concerns regarding our executive compensation and governance practices, our diversity and inclusion and ESG initiatives and related disclosure. As a result of these outreach efforts, we engaged in direct conversations with several shareholders to answer questions, provided commentary on the compensation decisions made during the year, and received feedback to be considered when making future decisions. During these conversations, shareholders also indicated broad directional support for our compensation programs. Further, as discussed in the Corporate Governance at Best Buy — Shareholder Engagement section, we regularly engage with our shareholders throughout the year regarding their various priorities, and we welcome their feedback on our practices and policies.

Compensation Philosophy, Objectives and Policies

The Company’s compensation philosophy is performance-based and designed to ensure that executive compensation and shareholders’ interests are aligned. To that end, the Compensation Committee works to ensure that base salaries are market competitive, and short- and long-term incentives are heavily weighted toward Company performance and are within the range of market practice.

We achieve these objectives by using programs that are designed to align employee interests with Company goals and create a common vision of success without undue risk.

We continue to utilize the following executive compensation policies and practices:

Pay-for-performance. We tie pay to performance. The majority of executive pay is not guaranteed but instead tied to performance metrics designed to drive shareholder value. We use multiple performance metrics that differ for long-term and short-term plans. A significant amount of our long-term incentive program is performance-based, and long-term and short-term incentives comprise a majority of our total compensation opportunity.

Mitigate undue risk. We mitigate undue risk by, among other things, utilizing caps on incentive award payments and vesting periods on long-term incentive awards, clawback provisions, restrictive covenants and multiple performance metrics. The Compensation Committee annually reviews our compensation risk profile to ensure that our compensation-related risks are not reasonably likely to have a material adverse effect on the Company.

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Independent Compensation Committee and compensation consultant. The Compensation Committee is comprised solely of independent directors. The Compensation Committee’s independent compensation consultant is retained directly by the Compensation Committee and performs no other consulting or other services for the Company.

Shareholder engagement. We routinely engage with shareholders regarding executive compensation and related issues. We provide shareholder feedback to the Compensation Committee, which considers the feedback when reviewing executive compensation programs and policies.

Re-pricing of stock options. Stock options may not, without the approval of our shareholders, be (i) amended to reduce their initial exercise price (except for adjustments in the case of a stock split or similar event); (ii) cancelled and replaced by stock options having a lower exercise price; or (iii) cancelled and replaced with cash or other securities.

Stock ownership and trading policies. We have stock ownership guidelines for all of our executive officers and Board members. As of the end of fiscal 2022, each NEO and director was in compliance with the guidelines. We prohibit all employees, including our executive officers and members of the Board, from hedging Company securities. Executive officers and Board members are also prohibited from pledging Company securities as collateral for a loan or from holding Company securities in a margin account.

Health, retirement and other benefits. NEOs are eligible to participate in benefit plans generally available to our employees, including health, retirement, stock purchase, severance, paid time off, life insurance and disability plans. We do not have an executive retirement plan that provides extra retirement benefits to the NEOs. NEOs are provided with annual executive physical exams, supplemental long-term disability insurance and tax planning/preparation services consistent with those provided to other executives.

Governance

The following table summarizes the roles of each of the key participants in the executive compensation decision-making process for our NEOs.

	Key Participant
	Compensation Committee
	Role in Decision-Making Process
	• Establishes our compensation ~~or total direct~~objectives.

	• Determines, approves and oversees executive compensation, including the design, competitiveness and effectiveness of our compensation programs.

	• The Compensation Committee’s charter is available on our website at www.investors.bestbuy.com.

	Compensation Committee’s Independent Compensation Consultant
	Role in Decision-Making Process
	• Reviews the recommendations of management with the Compensation Committee to ensure that ~~falls within a prescribed range relative~~the recommendations are aligned with our objectives and are reasonable when compared to our ~~peer group~~market for executive and director talent.

	• Assists the Compensation Committee in the design of ~~companies or~~ the ~~Fortune 100 companies.~~variable incentive plans, the determination of the overall compensation mix, the selection of performance metrics and the setting of the performance goals and ranges.

	~~Change~~• Provides analysis and crafts recommendations for the Compensation Committee in ~~Peer Group for Fiscal 2016.~~ ~~We review our peer group annually.~~the setting of CEO compensation opportunity.

	• Reviews the results of the compensation risk assessment with the Compensation Committee, including key observations and conclusions.

	• Provides perspective on market practice and information about emerging trends.

	• The Compensation Committee ~~strives~~has sole discretion and adequate funding to ~~ensure that~~engage consultants in connection with compensation-related matters. Frederic W. Cook & Co., Inc. has served as the Compensation Committee’s independent compensation consultant since the fall of 2012.

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	CEO
	Role in Decision-Making Process
	• Creates and presents recommendations to the Compensation Committee for our ~~peer group is an accurate reflection of our business model, represents~~other executive officers and provides her own perspective. Does not participate in, or otherwise influence, recommendations regarding her own compensation.

	Human Resources (“HR”) and Finance
	Role in Decision-Making Process
	• HR provides the ~~labor~~Compensation Committee with market ~~for executive talent and includes external perspectives. For 2016, the peer group was approved after consideration~~analytics in support of the ~~following criteria:~~ ~~Business model: combination~~CEO’s recommendations for our executive officers. As necessary, HR engages outside consultants to assist with its analytics and recommendations. Finance provides the Compensation Committee with financial analytics in support of ~~physical retailers, e-commerce retailers, digital companies, global companies~~the short- and ~~iconic brands;~~ ~~Size: revenue similar to ours;~~ ~~Current peers: preference, but not obligation, toward consistency in an effort to maintain reliability from year to year in the results~~long-term program design, target setting and evaluation of ~~our compensation analysis; and~~results. ~~Labor market consideration: companies that listed us as a peer.~~ ~~There were no changes to our peer group for fiscal 2016 from fiscal 2015. For fiscal 2016,~~

Compensation Consultant Independence

The Compensation Committee reviewed the independence of Frederic W. Cook & Co., Inc. (“FW Cook”) under NYSE and SEC rules. Based on its review and information provided by FW Cook regarding the provision of its services, fees, policies and procedures, presence (if any) of any conflicts of interest, ownership of Best Buy stock and other relevant factors, the Compensation Committee concluded that the work of FW Cook has not raised any conflicts of interest and deemed them to be an independent advisor to the Compensation Committee.

Factors in Decision-Making

Market Competitive Data. For fiscal 2022, each element of compensation and the level of total direct compensation for our NEOs were considered against market benchmarks and views of individual performance. Our Compensation Committee reviewed publicly available compensation data and private surveys for our peer group of companies, Fortune 100 companies and general and retail industry survey data. We used available information and monitored actions taken by our peer group to evaluate market trends and to assess the long-term incentive program and overall competitiveness of our executive compensation levels. We did not, however, seek to establish any specific element of compensation or total direct compensation that falls within a prescribed range relative to our peer group of companies or the Fortune 100 companies.

Change in Peer Group for Fiscal 2022. We review our peer group annually. The Compensation Committee strives to ensure that our peer group is an accurate reflection of our business model, represents the labor market for executive talent and includes external perspectives. For fiscal 2022, the peer group was approved after consideration of the following criteria:

Business model: combination of physical retailers, e-commerce retailers, digital companies, global companies and iconic brands;

Size: revenue similar to ours;

Current peers: preference, but not obligation, toward consistency in an effort to maintain reliability from year to year in the results of our compensation analysis; and

Labor market consideration: companies that listed us as a peer.

The Compensation Committee considered the Company’s position relative to the peer group on the basis of earnings, revenue and market cap, and made no changes to our peer group for fiscal 2022 from fiscal 2021 other than the removal of DaVita Inc. For fiscal 2022, our peer group consisted of the following companies:

Amazon.com, Inc.	The Home Depot, Inc.	Nordstrom, Inc.
CarMax, Inc.	Kohl’s Corporation	Target Corporation
CDW Corporation	Lowe’s Companies Inc.	Wal-Mart, Inc.
CVS Health Corporation	Macy’s, Inc.	Walgreens Boots Alliance, Inc.
eBay Inc.	Nike, Inc.

2022 Proxy Statement



~~Amazon.com, Inc.~~	~~The Home Depot, Inc.~~	~~Nordstrom, Inc.~~
~~Apple Inc.~~	~~Kohl's Corporation~~	~~Office Depot, Inc.~~
~~Costco Wholesale Corporation~~	~~Lowe's Companies Inc.~~	~~Staples, Inc.~~
~~eBay Inc.~~	~~Macy’s, Inc.~~	~~Target Corporation~~
~~Alphabet Inc.~~	~~Microsoft Corporation~~	~~Wal-Mart Stores, Inc.~~
~~(formerly known as Google Inc.)~~	~~Nike, Inc.~~	~~Walgreen Co.~~

~~At the time of the analysis, relative to the 17 companies, the Company was competitive on revenue and earnings measures.~~

~~Executive Compensation Elements~~

~~Overview.~~ ~~Our NEOs' compensation in fiscal 2016~~

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Executive Compensation Elements

Overview. Our NEOs’ compensation in fiscal 2022 included the following elements (for additional details on specific awards, see the discussion below and the Compensation of Executive Officers — Summary Compensation Table section):

Base Salary

Cash; reviewed annually and adjusted if appropriate.

Provide competitive, fixed compensation to attract and retain executive talent who drive superior performance.

Consider individual contributions to business outcomes, scope and responsibilities, role changes and/or market data.

Short-Term Incentive

~~Compensation Component~~

~~Key Characteristics~~

~~Purpose~~

~~Principal Fiscal 2016 Actions~~

~~Base Salary~~

~~Cash; reviewed annually and adjusted if appropriate.~~

~~Provide competitive, fixed compensation to attract and retain executive talent.~~

~~Base compensation increases for Messrs. Mohan and Nelsen and Ms. Ballard due to market factors.~~

~~Short-Term Incentive~~

~~("STI")~~

~~Cash. Variable compensation component. Performance-based award opportunity. Payable based on financial metrics.~~

~~Create a strong financial incentive for achieving or exceeding Company goals.~~

STI target percentage payout increases for Ms. Ballard and Mr. Mohan from 125 to 150%. Financial metrics for fiscal 2016 were enterprise comparable sales, enterprise operating income, North America “waste and efficiency,” U.S. online revenue growth and U.S. net promoter score. The NEOs received payouts equal to 162% of target.

~~Long-Term Incentive~~

~~("LTI")~~

(“STI”)

Cash. Variable compensation component. Performance-based award opportunity.

Incentive targets are tied to the achievement of key measures tied to our long-term strategy.

Metrics are selected based on key components of the Company’s strategic plan. Fiscal 2022 metrics were:

• Enterprise Operating Income – 33.33%

• Enterprise Revenue – 33.33%

• Shared Success – 33.34%

Long-Term Incentive (“LTI”)

Performance share awards, stock options and restricted shares, subject to certain performance-conditions and/or time-based vesting requirements.

Create a strong financial incentive for increasing shareholder value, encourage ownership stake, and promote retention.

Grant award levels are based on individual contributions to business outcomes, potential future contributions, historical grant amounts, retention considerations and market data. (Actual payout typically based on performance over the three-year performance period.)

Health, Retirement and Other Benefits

~~Performance share awards, stock options and time-based restricted shares.~~

~~Create a strong financial incentive for increasing shareholder value, encourage ownership stake, and promote retention.~~

LTI changes included increased targets for the NEOs to reflect market practice and promote retention of key leadership, and a one-time award for Ms. Ballard to align with market rates, the increased scope of her responsibilities and impact of her contributions over the past several years.

~~Health, Retirement and Other Benefits~~

Eligibility to participate in benefit plans generally available to our employees, including health, retirement, stock purchase, severance, paid time off, life insurance and disability plans.

Plans are part of our broad-based employee benefits programs designed to promote health, well-being and financial security for all employees.

The NEOs are eligible to participate ~~in benefit plans generally available to our employees, including health, retirement, stock purchase, severance, paid time off, life insurance and disability plans.~~

~~Plans are part of our broad-based employee benefits program.~~

~~No material changes were made to the NEOs' health, retirement and other benefits in fiscal 2016.~~

~~Executive Benefits~~

~~Annual executive physical exam, supplemental long-term disability insurance, and tax planning/preparation services.~~

~~Provide competitive benefits to promote the health, well-being and financial security of our executive officers.~~

~~No material changes were made to the NEOs' benefits in fiscal 2016.~~

~~Fiscal 2016 Pay Mix.~~ The Compensation Committee emphasizes variable performance-based pay when setting the target pay mix for our executive officers, but does not establish a set pay mix for them. The target pay mix for fiscal 2016 for our CEO and other NEOs, on average, is shown below. Actual salary levels, STI awards (discussed in further detail in the ~~Short-Term Incentive~~ ~~section)~~same employee benefits offered to all U.S.-based officers.

Executive Benefits

Annual executive physical exam, supplemental long-term disability insurance, and ~~LTI awards (discussed in further detail in the~~ ~~Long-Term Incentive~~ ~~section) vary based on the market analysis described above. Approximately 90%~~tax planning/preparation services. Limited personal use of ~~the CEO’s target pay and, on average, 80% of the other NEOs’ target pay~~private jet services is ~~variable based on operating performance, changes in our stock price and/or total shareholder return relative to the S&P 500 companies.~~

~~Each element in the pay mix is discussed below and shown in the~~ ~~Summary Compensation Table~~ ~~as found in the~~ ~~Compensation of Executive Officers~~ ~~section of this proxy statement~~.



~~Base Salary~~

In March 2015, the Compensation Committee reviewed the total compensation for each NEO, including their base salaries. Based on the stage of the Company's transformation and its assessment of each officer relative to market data, the Compensation Committee approved base salary increases for Ms. Ballard and Messrs. Mohan and Nelsen due to market factors and in recognition of each of their changing positions or continued growth in their respective roles.

Name Fiscal 2016 Annual Base Salary
Fiscal 2015 Annual Base Salary
Percent Change
Mr. Joly $ 1,175,000
$ 1,175,000
0%
Ms. McCollam $ 925,000
$ 925,000
0%
Ms. Ballard $ 800,000
$ 700,000
14%
Mr. Mohan $ 800,000
$ 700,000
14%
Mr. Nelsen $ 650,000
$ 550,000
18%



~~Short-Term Incentive~~

Our executive compensation programs are designed to ensure that a significant percentage of total compensation is linked to Company performance. For fiscal 2016, the NEOs were eligible for performance-based, short-term incentive cash awards pursuant to our fiscal 2016 STI.

The fiscal 2016 STI is structured as a “plan within a plan,” pursuant to the 2011 shareholder approved Executive Short-Term Incentive Plan (“Executive STI Plan”). The Executive STI Plan sets the maximum award poolpermitted for the CEO and, ~~three~~with the CEO’s authorization, other Company employees, including each of our NEOs, ~~(excluding~~in accordance with our private jet use policy.

Provide competitive benefits to promote the ~~CFO) at 5%~~health, well-being and financial security of ~~adjusted net earnings~~our executive officers.

No material changes were made to ~~align compensation with shareholder interests. Individual allocations of that pool are set annually. Specific performance goals are established such that~~ the ~~maximum payout potential does not exceed the maximum award pool or the individual allocations.~~

~~Fiscal 2016 STI Performance Criteria.~~ ~~In January 2015, the Compensation Committee approved the performance criteria for the fiscal 2016 STI. For fiscal 2016, the Compensation Committee approved generally the same performance metrics as~~NEOs’ benefits in fiscal ~~2015, with some refinement~~2022 other than the adoption of ~~the Renew Blue Priorities, as those metrics continued~~a revised private jet use policy. All NEOs are eligible to ~~support our fiscal 2016 Renew Blue priorities, specifically operating income, stabilizing comparable sales, US online revenue growth, and customer experience. The weighting~~participate in these benefits, except that use of ~~the priorities, which~~private jet services is ~~also consistent with fiscal 2015, placed the greatest emphasis on profit and revenue growth while also giving significant weight to our fiscal 2016 Renew Blue strategic priorities.~~

~~The metrics and their respective weights were:~~



~~STI Metric~~	~~Metric Weighting~~	~~Definition~~
~~Compensable Enterprise Operating Income~~	~~50%. Served as the minimum threshold for STI awards to be paid~~	~~Enterprise revenue less Enterprise cost of goods sold less Enterprise SG&A expenses.~~
~~Enterprise Comparable Sales~~	~~20%~~	~~Domestic revenue at websites, stores, and call centers operating for at least 14 full months, compared to revenue from similar channels open at least 14 full months in the prior fiscal year.~~
~~Renew Blue Priorities:~~
~~Waste and Efficiency~~⁽¹⁾	~~10%~~	~~Annualized net year-over-year cost savings (gross savings less reinvestment, compared to fiscal 2015 expense) of cost reduction actions put into effect in fiscal 2016.~~
~~U.S. Online Revenue Growth~~	~~10%~~	~~Total fiscal 2016 online revenue less total fiscal 2015 online revenue divided by total fiscal 2015 online revenue.~~
~~U.S. Net Promoter Score~~	~~10%~~	Customer experience metric in which customers (both purchasers and non-purchasers) are asked how likely they are to recommend Best Buy to a friend, colleague or family member; the percent of those likely to recommend less the percent of those unlikely to recommend is Net Promoter Score.

~~(1) The Waste and Efficiency metric replaced North America Cost Take Out, which was a Renew Blue Priority and STI metric in fiscal 2015.~~

In March 2015, the Compensation Committee approved the performance goals for each metric. The minimum, target and maximum goals for each metric were evaluated in order to ensure they would incent the desired level of performance for each priority. For some metrics, this evaluation resulted in changeslimited to the ~~minimum, target, and max goals~~CEO in light of anticipated year-over-year industry trends, product cycles, and other market factors. In September 2015, the Compensation Committee approved an adjustment to the Enterprise Comparable Sales metric to remove consideration of our International business to be consistentaccordance with our ~~external reporting metrics, which were changed primarily because of~~private jet use policy, unless such use by another NEO is authorized by the current ongoing transformation in Canada. As such, the Enterprise Comparable Sales metric includes revenue at websites, stores and call centers in the U.S. only. This adjustment led to an increase in the target level for Enterprise Comparable Sales.CEO.

The following chart shows actual fiscal 2016 performance compared to the minimum, target and maximum goals for each metric. The chart also includes the same information from fiscal 2015 (as presented in last year’s proxy statement) in order to illustrate how the goals changed and how our actual performance compared to last year.

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Fiscal 2022 Pay Mix. The Compensation Committee emphasizes variable performance-based pay when setting the target pay mix for our executive officers but does not establish a set pay mix for them. The target pay mix for fiscal 2022 for our CEO and other NEOs, on average, is shown below. Actual salary levels, STI awards (discussed in further detail in the Short-Term Incentive section) and LTI awards (discussed in further detail in the Long-Term Incentive section) vary based on the market analysis described above. Approximately 90% of the CEO’s target pay and, on average, approximately 74% of the other NEOs’ target pay is variable based on operating performance, changes in our stock price and/or total shareholder return relative to the S&P 500 companies.

Each element in the pay mix is discussed below and shown in the Summary Compensation Table as found in the Compensation of Executive Officers section of this proxy statement.

Base Salary

In March 2021, the Compensation Committee reviewed the total compensation for each NEO. The Compensation Committee approved base salary increases for Ms. Barry and Ms. Scarlett, and Messrs. Bilunas, Bonfig and Harmon based on role, responsibilities and relevant market data.

Name	Fiscal 2022 End-of-Year Annual Base Salary	Fiscal 2022 Beginning-of-Year Annual Base Salary	Percent Change
Ms. Barry	$1,300,000	$1,160,000	12.1%
Mr. Bilunas	800,000	775,000	3.2%
Mr. Bonfig	650,000	625,000	4.0%
Mr. Harmon	625,000	550,000	13.6%
Ms. Scarlett	875,000	800,000	9.4%

Metric ($ in millions) Minimum Target Max Actual Result Metric Score
Compensable Enterprise Operating Income (50%)⁽¹⁾⁽²⁾
$1,408 $1,498 $1,678 $1,610 1.62
Fiscal 2015 Compensable Enterprise Operating Income (50%)⁽¹⁾⁽³⁾

$1,163 $1,353 $1,533 $1,523 1.94
Enterprise Comparable Sales (20%)⁽⁴⁾
(0.06)% 0.4% 1.32% 0.9% 1.54
Fiscal 2015 Enterprise Comparable Sales (20%)

(1.0)% 0.52% 1.44% .44% 0.91
Renew Blue Priorities:
Waste and Efficiency (10%) $100 $120 $160 $154 1.83
Fiscal 2015 North America Cost Take Out (10%)⁽⁵⁾

$360 $410 $460 $438 1.56
U.S. Digital Revenue Growth (10%) 5.95% 10.95% 20.95% 13.24% 1.22
Fiscal 2015 U.S. Digital Revenue Growth (10%)

20% 30% 40% 16.5% —
U.S. Net Promoter Score⁽⁶⁾ (10%) (for purchasers and non-purchasers)
35.4 35.7 36.4 38.5 2.00
Fiscal 2015 U.S. Net Promoter Score (10%) (for purchasers and non-purchasers) 35.5 36.5 38.5 34.8 —
Fiscal 2016 Blended Score: 1.62
Fiscal 2015 Blended Score: 1.31

~~(1)~~

Actual performance for this metric had to be above the minimum threshold in order for STI payments to be made. A result lower than the minimum threshold would have resulted in an overall blended score of zero, and no STI payments.

2022 Proxy Statement


~~(2)~~	Compensable Enterprise Operating Income was determined based on the non-GAAP operating income from continuing operations of $1,566 million in our fiscal 2016 Annual Report on Form 10-K, adjusted for differences from budgeted foreign exchange rates and adjusted for the impact of the Canadian brand consolidation.

~~(3)~~

Compensable Enterprise Operating Income was determined based on the non-GAAP operating income from continuing operations of $1,497 million in our fiscal 2015 Annual Report on Form 10-K, adjusted for differences from budgeted foreign exchange rates and adjusted to include the impact of Five Star (a former Chinese subsidiary) prior to December 3, 2014 (the date the Company entered into a definitive agreement to sell Five Star to a third party).


~~(4)~~	~~The goal of keeping the target for this metric near 0.0% was to halt the historical consumer electronics industry decline over the last several years.~~


~~(5)~~	North America Cost Takeout was a fiscal 2015 Renew Blue Priority and was defined as total cost of goods sold and selling, general and administrative expense reduction initiatives approved and executed during the year, measured as an annualized value. In fiscal 2016, the goal was replaced by Waste and Efficiency, as defined above.

(6) U.S. Net Promoter score is a customer experience metric that measures a customer’s likelihood to recommend Best Buy and is one of many standard industry metrics for measuring customer satisfaction. Methods of measuring U.S. Net Promoter Score can differ widely among different retailers, with many retailers measuring only purchaser satisfaction~~; h~~owever, we measure both purchasing and non-purchasing customers across our sales channels and therefore our total score may be lower than other companies as non-purchaser results are materially lower than those of purchasers.

~~Determination of Fiscal 2016 STI Target Payout.~~ The Compensation Committee reviewed the target payout percentages for our NEOs under the fiscal 2016 STI plan as part of their review of the NEOs’ total fiscal 2016 target compensation. The Compensation Committee generally applies a tiered approach in determining the potential target payout ranging from 100% to 200% of eligible base salary based on each NEO's eligible earnings as of the 15^th ~~day of each fiscal month.~~

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Short-Term Incentive

Our executive compensation programs are designed to ensure that a significant percentage of total compensation is linked to Company performance. The Compensation Committee reviewed the target payout percentages for our NEOs under the fiscal 2022 STI plan as part of its review of the NEOs’ total fiscal 2022 target compensation in March 2021. The Compensation Committee generally applies a tiered approach in determining the potential target payout ranging from 100% to 200% of annual earnings. The specific target payout percentage for each NEO is determined based on external market data (including survey and proxy data from the Fortune 100 and our peer group) for equivalent roles, with emphasis placed on job value and internal pay equity among the NEOs. The target payout percentages for each NEO either remained the same as in fiscal 2021 or increased in light of changes in responsibilities and market factors.

Name	Fiscal 2021 Target Payout Percentage	Fiscal 2022 Target Payout Percentage
Ms. Barry	200%	200%
Mr. Bilunas	150%	150%
Mr. Bonfig	100%	100%
Mr. Harmon⁽¹⁾	75%	100%
Ms. Scarlett	150%	150%

(1)

The STI target payout percentage for ~~each NEO is determined~~Mr. Harmon was increased during fiscal 2022 based on ~~external market data (including survey and proxy data from the Fortune 100 and our peer group) for equivalent roles, with emphasis placed on job value and internal pay equity among the NEOs.~~

For fiscal 2016, the tiered target opportunities were 100% to 200% of salary. The target payout percentages for each NEO remained the same as in fiscal 2015 except for Mr. Mohan, who received an increase target payout percentage from 125% in fiscal 2015 to 150% in fiscal 2016 in recognition of his continued progresschanges in his role and ~~Ms. Ballard, who received~~responsibilities.

Fiscal 2022 STI Performance Criteria. Metrics were selected based on key components of the Company’s strategic plan. The following performance metrics determined the payouts for the fiscal 2022 STI plan:

STI Metric	Metric Weighting	Definition
Compensable Enterprise Operating Income	33.33%	Enterprise non-GAAP operating income, adjusted for foreign exchange rate variances.
Enterprise Revenue	33.33%	Enterprise Revenue includes all revenue streams, including stores that recently opened or closed as well as mergers and acquisitions.
Shared Success	33.34%	Continue to reinforce the decision-making process adopted by senior leadership and the Board to manage the Company during the COVID-19 crisis. The fiscal 2022 framework was comprised of three pillars: employee and customer safety, financial strength, and strategic progress.

In light of the Company’s ability to effectively adapt to the challenges presented by the COVID-19 pandemic, as well as the fiscal 2021 performance results, the Committee elected to return to a plan design concentrated on financial performance metrics. The ongoing need for flexibility, collaboration and prioritization of needs supported the continued inclusion of a flexible Shared Success component as a smaller portion of the plan.

In March 2021, the Compensation Committee approved the performance goals for each of the financial metrics. The minimum, target and maximum goals for each metric were evaluated to ensure they would incentivize the desired level of performance for each priority. The goals are set each year considering anticipated year-over-year industry trends, product cycles and other market factors. At the time the performance goals were set for Enterprise Operating Income and Enterprise Revenue, the Company had completed a successful fiscal 2021 but was still facing a challenging environment due to the level of uncertainty about the year ahead. These short-term pressures were balanced against our multi-year financial commitments communicated to shareholders.

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The Shared Success framework was carried over from fiscal 2021 as one component of the plan to reinforce the flexible decision-making process adopted by senior leadership and the Board to manage the Company during the pandemic. This framework for fiscal 2022 centered on three pillars: employee and customer well-being, financial strength and strategic progress.

	Employee and Customer Well-Being			Financial Strength			Strategic Progress
	As the business continues to evolve in an ~~increase~~environment shaped by the pandemic, we maintain an explicit focus on the safety and well-being of our customers and employees.			We have accelerated progress against our long-term financial goals; while we will need to recalibrate our expectations for performance this year, the foundational elements of our financial success will continue to center on evolving our operating model and store portfolio, removing cost from the business and prioritizing strategic investments.			The environment has not changed our strategy, it has pushed us to go faster. We will judge our success in ~~target payout percentage~~delivering progress on our strategies.

Relative weightings for the three pillars and specific objectives under each pillar were purposefully flexible to encourage creative decision-making as environmental conditions evolved. The Committee charged management with updating the Committee on actions taken and results throughout fiscal 2022 relative to this framework. At the end of fiscal 2022, management presented its summary of actions taken throughout the year and a recommendation for the Shared Success Score. The Board was proud of the Company’s ability to continue to navigate the extraordinary environment while delivering for our customers, employees and shareholders. In discussing the Shared Success Score, the Committee focused on the following key results:

Employee & Customer Well-Being.

For our customers, we enabled measures to lessen the risks of human interaction (e.g., curbside, no-contact delivery) for customers and proactively communicated the bilateral safety expectations. We also implemented a free COVID-19 testing program for employees to ensure safer interactions for our customers and provided incentives for Best Buy employees to get vaccinated.

For our employees, we invested in paid leave; invested in Wellthy Concierge Service, which provides personalized help for our employees in times of need (e.g., emergency housing, substance abuse help and complex eldercare issues); created the HOPE fund in partnership with the Richard M. Schultze Family Foundation, which provides for employees in hardship situations; and invested heavily in COVID-19 support.

Financial Strength.

Building from the momentum started in fiscal 2021, we continued to pilot and experiment with new store portfolio approaches with the goal of serving customers with better omni-channel experiences with a lower cost to serve them. We have been progressing with a series of experiments at both the store and market level.

Followed up $500 million in savings delivered in fiscal 2021 with an additional $200 million of domestic cost transformation in fiscal 2022.

Strategic Progress.

Prioritizing the capacity to invest in our longer-term growth is essential to our longer-term success. Examples of our strategic investments in fiscal 2022 include:

○	The purchase of Current Health, which provides Best Buy Health key capabilities needed to deliver in home care;

○	The purchase of Yardbird, which expands our sales into a growing adjacent category and ultimately will provide opportunities to deliver more comprehensive solutions to customers;

○	The launch of Totaltech to deepen the relationships we have with our customers to drive greater spend and loyalty with Best Buy; and

○	Our investment in solar energy fields to drive our environmental stewardship responsibilities.

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The following chart shows actual fiscal 2022 performance compared to the minimum, target and maximum goals for Enterprise Operating Income and Enterprise Revenue. For each metric, minimum performance against the goal results in no payout, target performance results in a 1.00 payout, and maximum performance results in a 2.00 payout.

Metric ($ in millions)	Minimum	Target	Maximum	Actual Result	Metric Score
Compensable Enterprise Operating Income⁽¹⁾	$2,155	$2,378	$2,530	$3,102	2.0
Enterprise Revenue⁽²⁾	$44,899	$46,781	$47,735	$51,687	2.0
Shared Success⁽³⁾	N/A	N/A	N/A		1.5

		Fiscal 2022 Blended Score:			1.83

(1)

Compensable Enterprise Operating Income was determined based on the non-GAAP operating income from ~~125%~~continuing operations of $3,092 million in our Annual Report on Form 10-K for fiscal ~~2015 to 150%~~2022, adjusted for unusual or nonrecurring gains, including acquisition related operating income, and differences from targeted foreign exchange rates.

(2)

Compensable Enterprise Revenue was determined based on the non-GAAP revenue from continuing operations of $51,761 million in our Annual Report on Form 10-K for fiscal ~~2016, in conjunction with her expanded role~~2022, adjusted for unusual or nonrecurring gains, including acquisition related revenue, and ~~increased responsibilities (for which she did not previously receive increased compensation). For each~~differences from targeted foreign exchange rates.

(3)

The Shared Success score was determined based on the Committee’s review of Company performance as discussed above the ~~metrics, the NEOs could earn zero to two times their weighted target payout percentage for that metric, making the maximum fiscal 2016 STI payout equal to two times their target payout percentage.~~

~~The following chart shows fiscal 2016 STI opportunities and payments as a dollar value and percent of annual earnings~~table.

The following chart shows fiscal 2022 STI opportunities and payments as a dollar value and percent of annual base salary (based on their eligible base salary as of the 15th day of each fiscal month):

Name	Fiscal 2022 Annual Base Salary⁽¹⁾	Target Payout Percentage	Target Payout Value, Based on Annual Earnings	Fiscal 2022 STI Score⁽²⁾	Fiscal 2022 STI Payment
Ms. Barry	$1,276,667	200%	$2,553,334	1.83	$4,681,026
Mr. Bilunas	795,834	150%	1,193,751	1.83	2,188,503
Mr. Bonfig	645,833	100%	645,833	1.83	1,184,007
Mr. Harmon⁽³⁾	612,500	95%	581,875	1.83	1,080,884
Ms. Scarlett	862,500	150%	1,293,750	1.83	2,371,833

(1)

Annual base salary ~~rate):~~

Name
Fiscal 2016 Annual Earnings⁽¹⁾

Target Payout
Percentage

Annual Target Payout Value,
based on Annual Earnings

Fiscal 2016
Blended STI Score

Fiscal 2016
STI Payment

Fiscal 2016
STI Payment,
as a Percentage of Annual Earnings

Mr. Joly $1,175,000 200 % $ 2,350,000
1.623
$ 3,814,050
325 %
Ms. McCollam $925,000 150 % $ 1,387,500
1.623
$ 2,251,913
244 %
Ms. Ballard $791,667 150 % $ 1,187,500
1.623
$ 1,927,311
244 %
Mr. Mohan $791,667 150 % $ 1,187,500
1.623
$ 1,927,311
244 %
Mr. Nelsen $633,333 100 % $ 633,333
1.623
$ 1,027,899
162 %

⁽¹⁾ ~~Annual Earnings are~~is based on the average of each ~~NEO's~~NEO’s annual base salary rate on the ~~fifteenth~~15th fiscal day of each month for twelve months of the fiscal year. This number may differ slightly from ~~Actual Earnings~~actual earnings listed in the Summary Compensation Table.

(2)

~~Fiscal 2017~~

The full fiscal 2022 STI ~~Performance Criteria.~~ ~~In January 2016,~~score of 1.8333 has been abbreviated for the ~~Compensation Committee approved~~table.

(3)

The STI Target for Mr. Harmon was increased during fiscal 2022 based on changes in role and responsibilities, therefore the ~~performance criteria~~percentage shown in the form of metrics for the fiscal 2017 STI, and in March 2016, the Compensation Committee approved the target performance levels for each metric. Similar metrics and slightly modified weightings as used in fiscal 2016 will be used in fiscal 2017, as listed below:“Target Payout Percentage” column reflects an approximate blended rate.


~~Enterprise Operating Income - 40%~~			~~Enterprise Comparable Sales - 30%~~ ~~Renew Blue Priorities (maintaining the three fiscal 2016 priorities and adding a fourth metric based on Services revenue) - 30%~~ The Compensation Committee approved a shift in the weighting by 10% from Domestic Enterprise Operating Income (weighted at 50% in fiscal 2016) to Enterprise Comparable Sales (weighted at 20% in fiscal 2016) in order to place even greater emphasis on Company growth, consistent with our future priorities as discussed in greater detail within the 2022 Proxy ~~Summary~~ ~~of this proxy statement.~~Statement			56						48



~~Long-Term Incentive~~

~~Awards of equity-based LTI compensation to our executive officers encourage a strong ownership stake in the Company and enhances~~

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Long-Term Incentive

Awards of equity-based LTI compensation to our executive officers enhance the alignment of interests of our NEOs and shareholders. All LTI awards for our NEOs and directors must be approved by the Compensation Committee. In March 2021, the Compensation Committee approved LTI awards to our NEOs pursuant to our fiscal 2022 LTI program under our 2020 Omnibus Incentive Plan.

The fiscal 2022 LTI program primarily featured a mix of performance share awards and performance-conditioned time-based restricted shares. This results in a balanced portfolio of compensation rewards for NEOs, with performance share awards based on relative total shareholder return (to reward relative performance) and time-based restricted shares (to reward earnings and promote retention), as shown below.

Name	Time-Based Restricted Shares	Performance- Conditioned Time- Based Restricted Shares	Performance Share Awards
Ms. Barry	—	50%	50%
Mr. Bilunas	—	50%	50%
Mr. Bonfig^*	75%	—	25%
Mr. Harmon^*	75%	—	25%
Ms. Scarlett	—	50%	50%

*	Messrs. Bonfig and Harmon received time-based restricted shares because they were not members of Ms. Barry’s direct report team at the time of the annual grant.

Form of Fiscal 2022 LTI Award. The NEOs receive an LTI grant once per year at a regularly scheduled Compensation Committee meeting that typically occurs in the first quarter of our fiscal year. In addition, our NEOs can receive supplemental equity awards when warranted to bring their annual compensation in line with market pay or to reflect an increase in responsibilities. In fiscal 2022, the closing price of our common stock on the grant date and an accounting valuation for each type of award was used to convert the award dollar value to a number of units.

In addition, restricted stock and performance share awards include dividend equivalents, which begin to accrue for each declared dividend following the grant but are not converted into dividends until the restricted shares underlying the grants are earned, vested or payable.

The fiscal 2022 LTI program was modified from our fiscal 2021 LTI program both in terms of types of grants and the mix for those grant types. Stock options and performance shares based on enterprise revenue growth were removed from the plan. The mix for the fiscal 2022 grant was 50% performance shares based on total shareholder return, and 50% time-based restricted shares with an Adjusted Net Earnings (as defined below) performance condition attached for the CEO and her direct reports. The mix for the other NEOs, who were not members of Ms. Barry’s direct report team at the time of the annual grant, was 25% performance shares based on total shareholder return, and 75% time-based restricted shares.

Determination of Fiscal 2022 LTI Target Award Values. In March 2021, the Compensation Committee approved the executive team’s fiscal 2022 compensation, which included increased target award values for Ms. Barry and Ms. Scarlett to reflect market adjustments. LTI award amounts are determined based upon analysis of external market data, with overall compensation mix and external market data for equivalent roles being key factors in the determination of the award made to each NEO. The fiscal 2022 LTI awards for each NEO are set forth below:

Name	No. of Performance- Conditioned Time- Based Restricted Shares	No. of Time- Based Restricted Shares	Target No. of Shares under Performance Share Award	Annual Grant: Target Grant Date Value⁽¹⁾	One-Time Grant: Target Grant Date Value⁽¹⁾
Ms. Barry	40,613	—	36,294	$9,600,000	—
Mr. Bilunas	8,461	8,461⁽²⁾	7,562	$2,000,000	$1,000,000
Mr. Bonfig	—	26,547⁽³⁾	1,607	$850,000	$2,500,000
Mr. Harmon	—	25,596⁽⁴⁾	1,324	$700,000	$2,500,000
Ms. Scarlett	6,769	—	6,049	$1,600,000	—

(1)

The amounts reflect the annual LTI target grant date dollar values, or the target grant date values of one-time awards, approved by the Compensation Committee. ~~During fiscal 2016, we made long-term incentive~~This dollar value is converted into a number of restricted shares or performance share awards using an estimate

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or approximation of the price of a share of our common stock as of the grant date (unless otherwise noted in this table), and a Monte Carlo simulation for shares under performance share awards that have a market condition for vesting. These values differ from those portrayed in the Summary Compensation Table and Grants of Plan-Based Awards Table because there the grant date fair value of each award is measured in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation - Stock Compensation (“ASC Topic 718”), and here, the shares are based on an estimate of the grant date fair value determined under ASC Topic 718 as close to the grant date as possible.

(2)

The amount reflects a one-time grant of time-based restricted shares granted to ~~our NEOs pursuant to our LTI program, which was~~Mr. Bilunas in March 2021 reflective of market pay conditions. The target grant date dollar value approved by the Compensation Committee ~~in March 2015 under our 2014 Omnibus Incentive Plan.~~

~~The fiscal 2016 LTI program featured a mix of performance share awards, stock options and time-based restricted shares. This results in a balanced portfolio of compensation rewards consisting of,~~ for the ~~CEO, 50% performance share awards (to reward relative performance), 20% stock options (to reward absolute share price appreciation) and 30%~~one-time award, as reflected in the “One-Time Grant: Target Grant Date Value” column, was $1,000,000.

(3)

The amount reflects the time-based restricted shares ~~(to promote retention),~~from Mr. Bonfig’s annual LTI award (5,394) as ~~shown below. The mix for the other NEOs was one-third performance share awards, one-third stock options, and one-third~~well as a one-time grant of time-based restricted shares ~~also as shown below.~~

~~Form~~(21,153 shares) granted in March 2021 reflective of ~~Fiscal 2016 LTI Award.~~ ~~The performance share awards are earned based on our Total Shareholder Return ("TSR") relative~~Mr. Bonfig’s increased responsibilities related to the S&P 500 Index over a three-year period. TSR was selected as the metric based on its direct link to shareholder value creation. The S&P 500 was used as a proxy for overall market performance. The relative TSR performance goals were as follows:



	~~Relative TSR Percentile Ranking~~	~~No. of Shares Earned (as % of Target)~~
~~Less than Threshold~~	~~Less than 30th Percentile~~	—%
~~Threshold~~	~~30th Percentile~~	~~50%~~
~~Target~~	~~50th Percentile~~	~~100%~~
~~Maximum~~	~~70th Percentile~~	~~150%~~
~~The number of performance shares earned are interpolated on a linear basis for performance between Threshold and Target and between Target and Maximum.~~

~~The NEOs receive an LTI grant once per year at a regularly scheduled Compensation Committee meeting that typically occurs in the first quarter~~departure of our ~~fiscal year. In fiscal 2016, the closing price of our common stock on the~~former Chief Operating Officer. The target grant date ~~was used to convert the award~~ dollar value to a number of units. The nonqualified stock options have a term of ten years and become exercisable over a three-year period at the rate of one-third per year, beginning one year from the date of grant, subject to being employed on the vesting date. The exercise price for such options is equal to the closing price of our common stock on the grant date, as quoted on the NYSE. The time-based restricted shares also vest in equal installments of one-third on the three successive anniversaries of the grant date. The final number of shares issued under performance share awards will not be known until performance has been measured following the performance period (which goes from March 1, 2015 through February 28, 2018).

~~Under the terms of the 2014 Omnibus Plan, we may not grant stock options at a discount to fair market value. Unless otherwise determined~~approved by the Compensation Committee "fair market value" as of a given date is the closing price of our common stock as quoted on the NYSE on such date or, if the shares were not traded on that date, the most recent preceding date when the shares were traded.

~~Determination of Fiscal 2016 LTI Target Award Values. The Compensation Committee approved the executive leadership’s fiscal 2016 compensation, which included increased target award values~~ for the ~~NEOs to reflect market practice and promote retention of key leadership during this critical period of transformation, and a~~ one-time award, ~~for Ms. Ballard to acknowledge market rates for the increased scope of her responsibilities and impact of her contributions to our Company performance.~~

~~LTI award amounts are determined based upon analysis of external market data, with overall compensation mix and external market data for equivalent roles being key factors~~as reflected in the ~~determination of the award made to each NEO.~~ “One-Time Grant: Target Grant Date Value” column, was $2,500,000.

(4)

The ~~fiscal 2016 LTI awards for each NEO are set forth below:~~

Annual Fiscal 2016 Award Details
Name No. of Stock Options No. of Restricted Shares Target No. of Shares under Performance Share Award Target Grant Date Value
Mr. Joly 158,445 77,142 118,374 $10,000,000
Ms. McCollam 120,154 39,000 35,907 $4,550,000
Ms. Ballard 52,815 17,143 15,783 $2,000,000
Mr. Mohan 52,815 17,143 15,783 $2,000,000
Mr. Nelsen 43,572 14,143 13,021 $1,650,000

~~In addition, in recognition for her expanded role and responsibilities, Ms. Ballard received a one-time long-term incentive equity award in March 2015 consisting of the following:~~

One-Time Award Details
Name No. of Stock Options No. of Restricted Shares Target No. of Shares under Performance Share Award Target Grant Date Value
Ms. Ballard 52,815 17,143 15,783 $2,000,000

~~Performance Share Payout.~~ In September 2012, the Committee adopted a new performance share unit plan design, based on relative TSR versus the S&P 500 Index over the 36-month period from October 1, 2012 to September 30, 2015. The shares would vest (0 to 150%) after the three-year period if the performance criteria was met.

~~Because the Company’s TSR during the performance period exceeded the 70~~^th ~~percentile of all companies in the S&P 500, these shares paid out at the maximum of 150% in fiscal 2016 and are reflected on the~~ ~~Option Exercises and Stock Vested~~ ~~table.~~

~~Fiscal 2017 LTI Program Design.~~ ~~For fiscal 2017, the mix of equity vehicles in the LTI program will consist of the following:~~

~~For the CEO, 50% performance share awards (using TSR as the performance metric), 20% stock options and 30% time-based restricted shares. This mix is consistent with the fiscal 2016 design.~~

For the other NEOs: 50% performance share awards (using TSR as the performance metric) and 50% time-based restricted shares. The Compensation Committee made changes to remove stock options from the mix of equity vehicles for the other NEOs in order to more closely align the performance share percentage amounts of the CEO and the other NEOs. The Compensation Committee also added a performance requirement toamount reflects the time-based restricted shares ~~granted to our top executives to better align their interests with the shareholders’ interests. The performance requirement is based on achievement of positive adjusted net earnings and acts~~from Mr. Harmon’s annual LTI award (4,443) as well as a ~~minimum threshold~~one-time grant of time-based restricted shares (21,153 shares) granted in ~~order~~March 2021 reflective of Mr. Harmon’s increased responsibilities related to the departure of our former Chief Operating Officer. The target grant date dollar value approved by the Compensation Committee for the ~~restricted shares to vest over time.~~one-time award, as reflected in the “One-Time Grant: Target Grant Date Value” column, was $2,500,000.

Performance-conditioned Time-based Restricted Share Awards. The performance-conditioned time-based restricted shares vest in equal installments of one-third on each of the first three successive anniversaries of the grant date, provided the performance condition has been met in any fiscal year during the term of the award and the NEO has been continually employed with us through those dates. The vesting of these shares is conditioned upon the Company’s achievement of positive Adjusted Net Earnings. Adjusted Net Earnings means net earnings determined in accordance with GAAP, adjusted to eliminate the following: (1) the cumulative effect of changes in GAAP; (2) gains and losses from discontinued operations; (3) extraordinary gains and losses; and (4) other unusual or nonrecurring gains or losses which are separately identified and quantified, including merger-related charges. Achievement of positive Adjusted Net Earnings may occur in any fiscal year during the term of the award for the award to begin to vest. For example, if the performance condition is not achieved until year two, two-thirds of the award will vest following Compensation Committee approval of achievement of the performance condition, with the remaining one-third to vest in the third year of the award.

Time-based Restricted Share Awards. The time-based restricted shares vest in equal instalments of one-third on the three successive anniversaries of the grant date, provided the NEOs have been continually employed with us through those dates.

Performance Share Awards. The performance share awards are earned based on total shareholder return (“TSR”) relative to the S&P 500 Index over a three-year period. TSR was selected as the metric based on its direct link to shareholder value creation. The S&P 500 is used as a proxy for the broad variety of other investment opportunities available to investors. The relative TSR performance goals are as follows:

	Relative TSR Percentile Ranking	No. of Shares Earned (as % of Target)
Less than Threshold	Less than 30^th Percentile	—%
Threshold	30^th Percentile	50%
Target	50^th Percentile	100%
Maximum	70^th Percentile	150%

The number of performance shares earned are interpolated on a linear basis for performance between Threshold and Target and between Target and Maximum.

Performance Share Payouts. For performance share awards that were paid out in fiscal 2022, the Compensation Committee had adopted a performance share plan design based on two metrics. The first was based on relative TSR versus the S&P 500 Index over the 36-month period from February 4, 2018, to January 30, 2021 (the “FY19 TSR Awards”) and the second was based on the compound annual growth rate of enterprise revenue over the 36-month period from February 4, 2018, to January 30, 2021 (the “FY19 Revenue Awards”). All performance share awards were eligible to vest (0 to 150%) after the three-year period if the respective performance criteria were met. Because the Company’s TSR during the performance period exceeded the 70^th percentile of all companies in the S&P 500, the Compensation Committee approved a payout for the FY19 TSR Awards at the maximum of 150% in fiscal 2022. Additionally, because the Company’s enterprise revenue compound growth rate over the performance period

2022 Proxy Statement



~~Other Compensation~~

~~Benefits.~~ ~~Our executive officers, including our NEOs, are generally offered the same employee benefits offered to all U.S.-based officers, as summarized~~

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exceeded the maximum performance threshold of 2.0%, the Compensation Committee approved a payout for the FY19 Revenue Awards at the maximum of 150% in fiscal 2022. All performance share award payouts to our NEOs during fiscal 2022 are reflected in the Compensation of Executive Officers — Option Exercises and Stock Vested section.

Other Compensation

Health, Retirement and Other Benefits. NEOs are eligible to participate in benefit plans generally available to our employees, including health, retirement, stock purchase, severance, paid time off, life insurance and disability plans. We do not have an executive retirement plan that provides extra retirement benefits to the NEOs. NEOs are provided with a deferred compensation plan, annual executive physical exams (this benefit also applies to spouses and partners), supplemental long-term disability insurance and tax planning/preparation services consistent with those provided to other executives. A summary of these benefits is provided in the following table:

Benefit	All Full-Time U.S.-Based Employees	Named Executive Officers
Accidental Death & Dismemberment	•	•
Deferred Compensation Plan		•
Employee Discount	•	•
Employee Stock Purchase Plan	•	•
Health Insurance	•	•
— Executive Physical Exam		•
Life Insurance	•	•
Long-Term Disability	•	•
— Executive Long-Term Disability		•
Retirement Savings Plan	•	•
Severance Plan	•	•
Short-Term Disability	•	•
Tax Planning and Preparation		•

We provide the executive benefits noted above to compete for executive talent and to promote the health, well-being and financial security of our NEOs. A description of executive benefits, and the costs associated with providing them for the NEOs, are reflected in the “All Other Compensation” column of the Summary Compensation Table as found in the Compensation of Executive Officers section of this proxy statement.

~~Benefit~~

~~All Full-Time~~Private Jet Use Policy. We lease an interest in aircraft enrolled in a fractional share program managed by a third-party provider. Use of this aircraft is governed by our Private Jet Use Policy. Under the policy, only the CEO is allowed to request private jet services for business or personal travel; however, the CEO may authorize the use of private jet services by any Company employee, including each of our NEOs. When the leased private jet is used for personal travel, the policy requires that all charges associated with the trip invoiced by the third-party provider must be paid by the executive within a reasonable time of the travel, not to exceed ninety days.

Severance Plan. We have a severance plan that complies with the applicable provisions of the Employee Retirement Income Security Act (“ERISA”). The purpose of the severance plan is to provide financial assistance to employees while they seek other employment, in exchange for a release of any claims. Although there are differences in benefits depending on the employee’s job level, the basic elements of the plan are comparable for all eligible employees. The plan generally covers all full-time and part-time U.S. employees of Best Buy Co., Inc. and Best Buy Stores, L.P. and their respective direct and indirect U.S.-domiciled subsidiaries, including the NEOs, except for those subject to a separate severance agreement or specifically excluded.

The plan covers involuntary terminations due to job elimination, reduction in force, business restructuring and other circumstances as we determine. Eligible terminated employees receive a severance payment based on their role and time with the Company, with basic employee benefits such as medical, dental and life insurance continued for an equivalent period. Except as modified or replaced by individual employment agreements, Ms. Scarlett and Messrs. Bilunas, Bonfig and Harmon are eligible for the following severance benefits under the plan: one month of Company-paid COBRA continuation coverage and group life insurance premiums and a lump sum cash payment equal to two years of salary, a payment of $25,000 in lieu of outplacement and other tax and financial planning assistance, a payment of 150% of the cost of 23 months of medical, dental and vision coverage (based on coverage

~~U.S.-Based Employees~~

2022 Proxy Statement

~~Executive~~

~~Officers~~

~~Accidental Death & Dismemberment~~

●

~~Deferred Compensation Plan~~⁽¹⁾

●

~~Employee Discount~~

●

~~Employee Stock Purchase Plan~~

●

~~Health Insurance~~

●

~~— Executive Physical Exam~~

●

~~Life Insurance~~

●

~~Long-Term Disability~~

●

~~— Executive Long-Term Disability~~

●

~~Retirement Savings Plan~~

●

~~Severance Plan~~

●

~~Short-Term Disability~~

●

~~Tax Planning and Preparation~~

●

~~(1)~~

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elections in place at the time of termination) and a payment of 150% of the cost of 17 months of life insurance coverage. See Compensation of Executive Officers - Potential Payments Upon Termination or Change-of-Control for more information regarding potential payments following an involuntary termination and for the severance provisions of Ms. Barry’s employment agreement, which supersedes the provisions of the severance plan.

Executive Stock Ownership Guidelines. The Compensation Committee has established stock ownership guidelines to promote the alignment of officer and shareholder interests and to encourage behaviors that have a positive influence on stock price appreciation and total shareholder return. Under the guidelines, which the Compensation Committee reviewed in fiscal 2022, we expect our NEOs to acquire ownership of a fixed number of shares, based on their positions. The stock ownership expectation generally remains effective for as long as the officer holds the position.

In addition to shares personally owned by each officer, the following forms of stock ownership count toward the ownership target:

Equivalent shares owned in the Best Buy Stock Fund within our Retirement Savings Plan;

100% of non-vested shares (net of taxes) subject to time-based conditions granted under our LTI program; and

50% of the intrinsic value of vested stock options (denominated as a number of shares) granted under our LTI program.

We require that until the ownership target is met, NEOs will retain: (i) 50% of the net proceeds received from the exercise of a stock option in the form of Best Buy common stock; (ii) 50% of vested time-based restricted shares (net of taxes); and (iii) 50% of all performance share awards (net of taxes) issued. The ownership target does not need to be met within a certain time frame, and our NEOs are considered in compliance with the guidelines as long as progress towards the ownership target is being made consistent with the expectations noted above.

In fiscal 2022, all NEOs were in compliance with the ownership guidelines. The ownership targets and ownership levels as of the end of fiscal 2022 for our continuing NEOs are shown below.

Name	Ownership Target (in shares)	Ownership as of Fiscal 2022 Year-End Using Guidelines (in shares)
Ms. Barry	200,000	257,652
Mr. Bilunas	55,000	38,581
Mr. Bonfig	35,000	60,476
Mr. Harmon	35,000	29,298
Ms. Scarlett	55,000	56,995

Effective the beginning of fiscal 2023, two changes were made to the ownership guidelines. First, 50% of the intrinsic value of vested stock options (denominated as a number of shares) granted under our LTI program no longer count toward the ownership target. Second, the ownership targets changed from a fixed number of shares to a multiple of annual salary. Ms. Barry’s new ownership target is six times her annual salary, and for other NEOs, the new ownership target is three times their annual salary.

Clawback and Restrictive Covenant Provisions. All STI and LTI awards granted to our NEOs are subject to our clawback policy. The triggers for potential recoupment of such awards include breach of the restrictive covenants in our long-term incentive award agreements, breach of our Code of Business Ethics, and issuance of a financial restatement as a result of fraud or misconduct. We also include confidentiality, non-compete, non-solicitation and, in select situations, non-disparagement provisions in our long-term incentive award agreements.

Prohibition on Hedging and Pledging Company Securities. We prohibit all employees, including NEOs, and members of the Board from hedging Company securities, including by way of forward contracts, equity swaps, collars, exchange funds or otherwise. In addition, our executive officers and Board members are prohibited from holding Company securities in a margin account or pledging Company securities as collateral for a loan.

~~Only officers and directors are eligible to participate in the Deferred Compensation Plan, as described in the~~ ~~Compensation of Executive Officers – Nonqualified Deferred Compensation – Deferred Compensation Plan~~ ~~section.~~

We provide the executive benefits noted above to compete for executive talent and to promote the health, well-being and financial security of our NEOs. A description of executive benefits, and the costs associated with providing them for the NEOs, are reflected in the "All Other Compensation" column of the ~~Summary Compensation Table~~ ~~as found in the~~ ~~Compensation of Executive Officers~~ ~~section of this proxy statement.~~

2022 Proxy Statement

~~Severance Plan.~~ We have a severance plan that complies with the applicable provisions of the Employee Retirement Income Security Act ("ERISA"). The purpose of the severance plan is to provide financial assistance to employees while they seek other employment, in exchange for a release of any claims. Although there are differences in benefits depending on the employee's job level, the basic elements of the plan are comparable for all eligible employees. The plan generally covers all full-time and part-time U.S. employees of Best Buy Co., Inc. and Best Buy Stores, L.P. and their respective direct and indirect U.S.-domiciled subsidiaries, including the NEOs, except for those subject to a separate severance agreement or specifically excluded.60

The plan covers involuntary terminations due to job elimination and discontinuation, office closing, reduction in force, business restructuring and other circumstances as we determine. Eligible terminated employees receive a severance payment based on

their role and time with the company, with basic employee benefits such as medical, dental and life insurance continued for an equivalent period. Except as modified or replaced by individual employment agreements, the NEOs (other than Mr. Joly and Ms. McCollam who have employment agreements) are eligible for the following severance benefits:

Ms. Ballard and Messrs. Mohan and Nelsen, at an enterprise executive vice president level, are eligible for two years of salary, a payment of $25,000 in lieu of outplacement and other tax and financial planning assistance, and a payment of 150% of the cost of 24 months of basic employee benefits such as medical, dental and life insurance.

~~See~~ ~~Compensation of Executive Officers — Potential Payments Upon Termination or Change-of-Control~~ ~~for more information regarding potential payments following an involuntary termination and for the severance provisions of Mr. Joly's and Ms. McCollam's employment agreements.~~

~~Stock Ownership, Tax and Other Policies~~

~~Executive Stock Ownership Guidelines.~~The Compensation Committee has established stock ownership guidelines to promote the alignment of officer and shareholder interests and to encourage behaviors that have a positive influence on stock price appreciation and total shareholder return. During its annual review in September 2015, the Compensation Committee approved changes to the guidelines to align them with market practice. Specifically, we increased the CEO’s ownership target from 140,000 shares to 200,000 shares; and we changed what shares count towards compliance. Under the guidelines, we expect our NEOs to acquire ownership of a fixed number of shares, based on their positions. The stock ownership expectation generally remains effective for as long as the officer holds the position.

~~In addition to shares personally owned by each officer, the following forms of stock ownership count toward the ownership target:~~

~~Equivalent shares owned in the Best Buy Stock Fund within our Retirement Savings Plan;~~

~~100% of non-vested shares subject to time-based conditions granted under our LTI program; and~~

~~50% of the intrinsic value of vested stock options (denominated as a number of shares) granted under our LTI program.~~

~~In fiscal 2016, all NEOs were in compliance with the ownership guidelines. The ownership targets and ownership levels as of the end of fiscal 2016 for our NEOs are shown below.~~

Name Ownership Target (in shares) Ownership as of Fiscal 2016 Year-End Using Guidelines (in shares)
Mr. Joly 200,000 792,194
Ms. McCollam 55,000 387,814
Ms. Ballard 55,000 76,353
Mr. Mohan 55,000 120,982
Mr. Nelsen 35,000 35,528

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Compensation and Human Resources Committee Report on Executive Compensation

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management. Based on this review and discussion, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be incorporated by reference into our Annual Report on Form 10-K for the fiscal year ended January 29, 2022, and in this proxy statement.

~~Tax Deductibility of Compensation.~~ Section 162(m) of the Internal Revenue Code ("Section 162(m)") limits the deductibility of compensation in excess of $1 million paid to the chief executive officer and each of our three most highly compensated executive officers (other than the chief financial officer), unless the compensation qualifies as "performance-based compensation." Among other things, in order to be deemed performance-based compensation, the compensation must be based on the achievement of pre-established, objective performance criteria and must be pursuant to a plan that has been approved by our shareholders. We believe that it is important to continue to be able to take available Company tax deductions with respect to the compensation paid to our NEOs. We do not, however, make compensation decisions based solely on the availability of a deduction under Section 162(m).

~~Clawback and Restrictive Covenant Provisions.~~ Our senior management performance awards have typically included clawback provisions, particularly where it has been difficult to match the period of an employee's influence on business results. We may exercise our rights under such provisions if other strategies to mitigate unjust rewards are difficult to achieve. Such circumstances include, but are not limited to, breach of our restrictive covenants, material violations of Company policy, intentional misconduct resulting in restatements of financial statements of the Company, violations of an agreement between the individual and the Company, criminal acts, fraud and violations of securities laws. In September 2010, we adopted new guidelines with respect to clawback provisions to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, with final clawback language to be determined after the SEC adopts related rules. The new guidelines also expanded our prior approach to cover all executive officer incentive award agreements. In addition to the clawback provisions, we include confidentiality, non-compete, non-solicitation and, in select situations, non-disparagement provisions. In March 2016, in the wake of the proposed rules on clawbacks the SEC proposed in July 2015, we approved adding a provision to our STI materials stating that any award granted is subject to any clawback policy the Company may subsequently adopt.

~~Prohibition on Hedging and Pledging Company Securities.~~ We prohibit all employees, including NEOs, and members of the Board from hedging Company securities, including by way of forward contracts, equity swaps, collars, exchange funds or otherwise. In addition, our executive officers and Board members are prohibited from holding Company securities in a margin account or pledging Company securities as collateral for a loan.

~~Compensation and Human Resources Committee Report on Executive Compensation~~

~~The Compensation Committee has reviewed and discussed the~~ ~~Compensation Discussion and Analysis,~~ ~~above, with management. Based on this review and discussion, the Compensation Committee recommended to the Board that the~~ ~~Compensation Discussion and Analysis~~ ~~be incorporated by reference into our Annual Report on Form 10-K for the fiscal year ended January 30, 2016, and in this proxy statement.~~

COMPENSATION AND HUMAN RESOURCES COMMITTEE

David W. Kenny (Chair)

~~Russell P. Fradin (Chair)~~

Lisa M. Caputo

~~Kathy J. Higgins Victor~~

~~David W. Kenny~~

Richelle P. Parham

Eugene A. Woods

Compensation and Human Resources Committee Interlocks and Insider Participation

The Compensation Committee is comprised entirely of independent directors. At no time during fiscal ~~2016~~2022 was any member of the Compensation Committee a current or former officer or employee of the Company or any of its subsidiaries. During fiscal ~~2016,~~2022, no member of the Compensation Committee had a relationship that must be described pursuant to SEC disclosure rules on related party transactions. In fiscal ~~2016,~~2022, none of our executive officers served on the board of directors or compensation committee of another company that had one or more executive officers serving on our Board or Compensation Committee.

2022 Proxy Statement

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Compensation of Executive Officers

Summary Compensation Table

The table below summarizes the total compensation earned by each of our NEOs during fiscal ~~2016~~2022 and the two preceding fiscal ~~years.~~years (if applicable).

Name and Principal Position Year

Salary⁽¹⁾
Bonus
Stock
Awards⁽²⁾⁽³⁾

Option
Awards⁽²⁾

Non-Equity
Incentive Plan
Compensation⁽⁴⁾

All Other
Compensation⁽⁵⁾
Total
Hubert Joly
Chairman and
Chief Executive Officer
2016 $ 1,175,000
$ —
$ 8,011,688
$ 1,842,715
$ 3,814,050
$ 29,028
$ 14,872,481
2015 1,175,000
—
6,986,928
1,654,070
3,078,500
42,796
12,937,294
2014 1,175,000
—
8,167,213
2,000,360
2,514,500
24,146
13,881,219
Sharon L. McCollam
Chief Administrative Officer and Chief Financial Officer
2016 $ 925,000
$ —
$ 3,039,724
$ 1,397,391
$ 2,251,913
$ 9,669
$ 7,623,697
2015 925,000
—
2,696,985
1,275,987
1,817,625
269,558
6,985,155
2014 925,000
—
3,131,454
1,543,133
1,484,625
215,221
7,299,433
Shari L. Ballard⁽⁶⁾
President, U.S. Retail and Chief Human Resources Officer
2016 $ 790,385
$ —
$ 2,672,270
$ 1,228,476
$ 1,927,311
$ 24,641
$ 6,643,083
2015 700,000
—
799,099
378,065
1,146,250
30,494
3,053,908
2014 700,000
—
927,819
457,228
936,250
17,131
3,038,428
R. Michael Mohan
Chief Merchandising Officer

2016 $ 790,385
$ —
$ 1,336,135
$ 614,238
$ 1,927,311
$ 10,323
$ 4,678,392
2015 650,000
—
1,556,015
972,974
1,004,333
12,477
4,195,799
2014 498,462
—
2,106,552
1,047,696
401,250
14,581
4,068,541
Keith J. Nelsen
General Counsel and Secretary

2016 $ 640,385
$ —
$ 1,102,314
$ 506,742
$ 1,027,899
$ 10,482
$ 3,287,822
2015 550,000
—
865,684
409,575
720,500
12,081
2,557,840
2014 543,750
—
1,005,159
495,324
582,704
41,323
2,668,260

Name and Principal Position	Year	Salary⁽¹⁾	Bonus	Stock Awards⁽²⁾⁽³⁾	Option Awards⁽²⁾	Non-Equity Incentive Plan Compensation⁽⁴⁾	All Other Compensation⁽⁵⁾	Total
Corie Barry Chief Executive Officer	2022	$1,278,462	$—	$9,598,480	$—	$4,681,026	$73,189	$15,631,157
	2021	927,692	—	6,959,274	1,740,435	2,320,000	86,102	12,033,503
	2020	1,013,462	—	6,780,674	1,695,326	1,913,334	37,867	11,440,663
Matt Bilunas Executive Vice President, Chief Financial Officer	2022	796,154	—	2,999,784	—	2,188,503	31,135	6,015,576
	2021	711,539	—	1,599,881	400,107	1,162,500	18,418	3,892,445
	2020	629,808	—	1,416,581	1,000,620	798,000	35,777	3,880,786
Jason Bonfig⁽⁶⁾ Executive Vice President, Chief Merchandising Officer	2022	646,154	—	3,350,051	—	1,184,007	8,622	5,188,834
Damien Harmon⁽⁶⁾ Executive Vice President, Omnichannel	2022	613,462	—	3,200,237	—	1,080,884	64,775	4,959,358
Kamy Scarlett Executive Vice President, Human Resources & Best Buy Canada	2022	863,462	—	1,599,766	—	2,371,833	52,175	4,887,236
	2021	738,462	—	2,000,045	250,077	1,200,000	54,973	4,243,557
	2020	800,000	500,000	1,000,553	2,248,690	1,344,000	123,146	6,016,389

(1)

These amounts reflect actual earnings ~~based on~~which are a blend of prior annual base salary rates and the go-forward base salary rates approved by the Compensation Committee during its annual review in March of each year, as well as any off-cycle increases or reductions approved by the Compensation Committee during the year. Further, these amounts are before any deferrals under the Deferred Compensation Plan. We do not provide guaranteed, above-market or preferential earnings on compensation deferred under the Deferred Compensation Plan. The investment options available for notional investment of deferred compensation are similar to those available under the Retirement Savings Plan and can be found, along with additional information about deferred amounts, in the Nonqualified Deferred Compensation section.

(2)

These amounts reflect the aggregate grant date fair value for stock-based awards granted to our NEOs for all fiscal years ~~reflected,~~reflected; however, fiscal ~~2016~~2022 amounts are explained in greater detail under the heading Grants of Plan-Based Awards.and in footnote three below. The grant date fair value reflected for any award subject to performance ~~share award~~conditions is the value at the grant date of the probable outcome of the award. The grant date fair value of an award is measured in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation - Stock Compensation (" (“ASC Topic ~~718"~~718”). ~~The amounts~~As permitted by ASC Topic 718, we account for any forfeitures as they occur rather than estimating future service-based forfeitures, and, accordingly, the grant date fair values reported ~~have~~do not ~~been adjusted to eliminate service-based forfeiture assumptions.~~assume any estimated forfeitures. The other assumptions used in calculating these amounts are set forth in Note 7, 1, Summary of Significant Accounting Policies, and Note 9, ~~Shareholders'~~Shareholders’ Equity, of the Notes to ~~the consolidated financial statements~~Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January ~~30, 2016.~~29, 2022.

~~(3)~~

2022 Proxy Statement

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(3)

The fiscal ~~2016~~2022 amounts reflected in this column include the probable grant date fair value of: (a) one or more ~~time-based~~ restricted share awards that vest on a time-based schedule subject to (in the case of grants to Ms. Barry, Mr. Bilunas and Ms. Scarlett) achievement of positive Adjusted Net Earnings in any fiscal year during the three-year term of the award (described in greater detail in the Grants of Plan-Based Awards ~~section~~)section) and (b) one or more performance share ~~award (valued at the probable outcome of the award as of the grant date)~~awards that will be earned depending on the performance of our ~~stock's~~stock’s total shareholder return, relative to ~~a peer group comprised of~~ the S&P 500 Index, over a three-year period (also described in greater detail in the Grants of Plan-Based Awards section). The maximum value of the performance share awards for each NEO as of the grant date, assuming the highest level of performance, ~~conditions,~~ is noted in the following table:

Name
Probable Grant Date Fair Value of Performance Share Awards
(reflected in
Stock Awards Column)
Target Performance Grant in Shares Maximum Performance Grant in Shares
Maximum Grant Date Fair Value of Performance Share Awards

Grant Date Fair Value of Time-Based Awards
(reflected in Stock Awards Column)
Stock Awards Column Total
Mr. Joly $ 4,997,750
118,374
177,561
$ 7,496,625
$ 3,013,938
$ 8,011,688
Ms. McCollam 1,515,994
35,907
53,861
2,273,990
1,523,730
3,039,724
Ms. Ballard* 1,332,716
31,566
47,350
1,999,076
1,339,554
2,672,270
Mr. Mohan 666,358
15,783
23,675
999,538
669,777
1,336,135
Mr. Nelsen 549,747
13,021
19,532
824,620
552,567
1,102,314

*Ms. Ballard had two time-based awards and two performance share awards during fiscal 2016, which have been aggregated here. For additional detail, see the ~~Grants of Plan-Based Awards~~ ~~section.~~

Name	Target Performance Grant (in Shares)	Probable Grant Date Fair Value of Performance Grant (as reflected in Stock Awards Column)	Maximum Performance Grant (in Shares)	Maximum Grant Date Fair Value of Performance Grant
Ms. Barry	36,294	$4,798,430	54,441	$7,197,645
Mr. Bilunas	7,562	999,772	11,343	1,499,658
Mr. Bonfig	1,607	212,461	2,411	318,692
Mr. Harmon	1,324	175,046	1,986	262,569
Ms. Scarlett	6,049	799,738	9,074	1,199,607


(4)	These amounts reflect STI payments made for all fiscal years shown. The fiscal ~~2016~~2022 STI plan is described in the section Compensation Discussion and Analysis – Executive Compensation Elements – Short-Term ~~Incentive~~.Incentive.


(5)	The fiscal ~~2016~~2022 amounts reflected in this column include All Other Compensation as described in the following table:

Name
Retirement Plan
Contribution^(a)

Life Insurance
Premiums^(b)

Other
Total
Mr. Joly $ 11,404
$ 492
$ 17,132
^(c)
$ 29,028
Ms. McCollam 9,177
492
—
^(d)
9,669
Ms. Ballard 9,990
492
14,159
^(c)
24,641
Mr. Mohan 9,831
492
—
^(d)
10,323
Mr. Nelsen 9,990
492
—
^(d)
10,482

Name	Retirement Plan Contribution^(a)	Life Insurance Premiums^(b)	Other	Total
Ms. Barry	$9,065	$641	$63,483^(c)	$73,189
Mr. Bilunas	13,446	641	17,048^(d)	31,135
Mr. Bonfig	7,981	641	—^(e)	8,622
Mr. Harmon	11,831	612	52,333^(f)	64,775
Ms. Scarlett	12,388	641	39,146^(g)	52,175


(a)	These amounts reflect our matching contributions to the ~~NEOs'~~NEOs’ Retirement Savings Plan ~~accounts and include true-up contributions made during fiscal 2016 to NEOs who had not previously received the prior year's maximum matching contribution.~~accounts.


(b)	These amounts reflect ~~the portions of~~ premiums paid by us for group term life insurance coverage.

(c)

The amount reflects premiums paid by us for supplemental executive long-term disability insurance ($35,266), Company-paid costs associated with the executive physical benefit, Company-paid tax preparation and planning services, and the incremental cost of Ms. Barry’s use of the Company’s leased private jet for travel to outside board meetings ($13,741). The Company considers travel to outside board meetings to be business-related as part of Ms. Barry’s professional development, as determined by our Board, and therefore, Ms. Barry is not required to reimburse the Company for those flights. Nevertheless, the Company has reported the aggregate incremental cost to the Company of those flights above, based on the actual invoiced amount from the Company’s third-party provider for the variable costs incurred on each trip, such as occupied hourly fees, as well as other direct operating costs to the Company, including fuel costs, any applicable ferry fees, crew fees and travel expenses for international flights, and passenger ground transportation handling fees. The aggregate incremental cost does not include certain fixed costs that do not change based on usage, such as monthly lease and management fees that are billed regardless of usage and the aircraft lease deposit. In addition, as our jet use policy permits, family members and invited guests of Ms. Barry occasionally ride along as additional passengers on business flights, and Ms. Barry reimbursed the Company for the cost of such ride-alongs at the greater of the incremental cost, if any, to accommodate the personal passengers on the flight and the imputed income amount determined using the IRS Standard Industry Fare Level (“SIFL”) rate.

~~(c)~~(d)

~~These amounts reflect portions of~~The amount reflects premiums paid by us for supplemental executive long-term disability insurance.

(e)

~~(d)~~

~~In accordance with the SEC’s disclosure rules,~~Any perquisites and other ~~personal~~ benefits provided to ~~the named executive officers are not included~~Mr. Bonfig for fiscal ~~2016 for Ms. McCollam and Messrs. Mohan and Nelsen because the aggregate incremental value of perquisites was~~2022 were less than $10,000 ~~for each of these named executive officers.~~and information regarding any such perquisites and personal benefits has therefore not been included.

(f)

The amount reflects premiums paid by us for supplemental executive long-term disability insurance, Company-paid tax preparation and planning services, and Company-paid living and commuting expenses associated with Mr. Harmon’s status as a remote employee during fiscal 2022 ($40,795, including commercial airfare, rent expense, vehicle lease and utilities).

(g)	The amount reflects premiums paid by us for supplemental executive long-term disability insurance ($32,686), and Company-paid costs associated with the executive physical benefit.

(6)	Mr. Bonfig and Mr. Harmon became executive officers of the Company on July 1, 2021.

~~(6)~~

Effective March 1, 2016, Ms. Ballard took on a new role. While remaining President of U.S. Retail, she will also focus on accelerating our efforts around waste and efficiency. A new Chief Human Resources Officer, Paula Baker, was promoted internally effective March 1, 2016.

2022 Proxy Statement

TABLE OF CONTENTS

Grants of Plan-Based Awards

The table below summarizes the grants made to each of our NEOs during fiscal ~~2016~~2022 under the ~~2014~~Best Buy Co., Inc. 2020 Omnibus ~~Stock and~~ Incentive Plan and the Short-Term Incentive Plan:

All Other Stock Awards: Number of Shares of Stock or Units
(#)

All Other Option Awards: Number of Securities Underlying Options
(#)
Exercise or Base Price of Option Awards ($ / Sh)

Grant Date Fair Value of Stock and Option Awards
($)⁽²⁾

Estimated Future Payouts Under Estimated Future Payouts Under

Non-Equity Incentive Plan Awards⁽¹⁾
Equity Incentive Plan Awards
Name Grant Date Threshold ($)
Target
($)
Maximum ($) Threshold (#)
Target
(#)
Maximum (#)
Mr. Joly —
$ 587,500
$ 2,350,000
$ 4,700,000
—
—
—
—
—
$ —
$ —
3/12/2015
⁽³⁾
—
—
—
—
—
—
—
158,445
40.85 1,842,715
3/12/2015
⁽⁴⁾
—
—
—
—
—
—
77,142
—
—
3,013,938
3/12/2015
⁽⁵⁾
—
—
—
59,187
118,374
177,561
—
—
—
4,997,750
Ms. McCollam 346,875
1,387,500
2,775,000
—
—
—
—
—
—
—
3/12/2015
⁽³⁾
—
—
—
—
—
—
—
120,154
40.85 1,397,391
3/12/2015
⁽⁴⁾
—
—
—
—
—
—
39,000
—
—
1,523,730
3/12/2015
⁽⁵⁾
—
—
—
17,954
35,907
53,861
—
—
—
1,515,994
Ms. Ballard —
296,875
1,187,499
2,374,998
—
—
—
—
—
—
—
3/12/2015
⁽³⁾
—
—
—
—
—
—
—
52,815
40.85 614,238
3/12/2015
⁽⁴⁾
—
—
—
—
—
—
17,143
—
—
669,777
3/12/2015
⁽⁵⁾
—
—
—
7,892
15,783
23,675
—
—
—
666,358
3/12/2015
⁽³⁾⁽⁶⁾
—
—
—
—
—
—
—
52,815
40.85 614,238
3/12/2015
⁽⁴⁾⁽⁶⁾
—
—
—
—
—
—
17,143
—
—
669,777
3/12/2015
⁽⁵⁾⁽⁶⁾
—
—
—
7,892
15,783
23,675
—
—
—
666,358
Mr. Mohan —
296,875
1,187,499
2,374,998
—
—
—
—
—
—
—
3/12/2015
⁽³⁾
—
—
—
—
—
—
—
52,815
40.85 614,238
3/12/2015
⁽⁴⁾
—
—
—
—
—
—
17,143
—
—
669,777
3/12/2015
⁽⁵⁾
—
—
—
7,892
15,783
23,675
—
—
—
666,358
Mr. Nelsen —
158,333
633,333
1,266,666
—
—
—
—
—
—
—
3/12/2015
⁽³⁾
—
—
—
—
—
—
—
43,572
40.85 506,742
3/12/2015
⁽⁴⁾
—
—
—
—
—
—
14,143
—
—
552,567
3/12/2015
⁽⁵⁾
—
—
—
6,511
13,021
19,532
—
—
—
549,747

Ms. Barry	—	$—	$2,553,334	$5,106,668	—	—	—	—	$—
	3/20/2021⁽³⁾	—	—	—	18,147	36,294	54,441	—	4,798,430
	3/20/2021⁽⁴⁾	—	—	—	—	40,613	40,613	—	4,800,050
Mr. Bilunas	—	—	1,193,751	2,387,502	—	—	—	—	—
	3/20/2021⁽³⁾	—	—	—	3,781	7,562	11,343	—	999,772
	3/20/2021⁽⁴⁾	—	—	—	—	8,461	8,461	—	1,000,006
	3/20/2021⁽⁵⁾	—	—	—	—	—	—	8,461	1,000,006
Mr. Bonfig	—	—	645,833	1,291,666	—	—	—	—	—
	3/20/2021⁽³⁾	—	—	—	804	1,607	2,411	—	212,461
	3/20/2021⁽⁵⁾	—	—	—	—	—	—	5,394	637,517
	3/20/2021⁽⁵⁾	—	—	—	—	—	—	21,153	2,500,073
Mr. Harmon	—	—	581,875	1,163,750	—	—	—	—	—
	3/20/2021⁽³⁾	—	—	—	662	1,324	1,986	—	175,046
	3/20/2021⁽⁵⁾	—	—	—	—	—	—	4,443	525,118
	3/20/2021⁽⁵⁾	—	—	—	—	—	—	21,153	2,500,073
Ms. Scarlett	—	—	1,293,750	2,587,500	—	—	—	—	—
	3/20/2021⁽³⁾	—	—	—	3,025	6,049	9,074	—	779,738
	3/20/2021⁽⁴⁾	—	—	—	—	6,769	6,769	—	800,028

(1)

These amounts reflect the potential ~~threshold,~~ target and maximum payout for each NEO under our fiscal ~~2016~~2022 STI, which is described in greater detail under the heading Compensation Discussion and Analysis – Executive Compensation Elements – Short-Term Incentive. A threshold payout is not indicated as there was no specified minimum payment under our fiscal 2022 STI. The actual payout to each NEO for fiscal ~~2016~~2022 is provided in the following sections: Compensation Discussion and Analysis – Executive Compensation Elements – Short-Term Incentive and the Summary Compensation Table.

(2)

These amounts reflect the aggregate grant date fair value, measured in accordance with ASC Topic 718. ~~The amounts~~As permitted by ASC Topic 718, we account for any forfeitures as they occur rather than estimating future service-based forfeitures, and, accordingly, the grant date fair values reported ~~have~~do not ~~been adjusted to eliminate service-based forfeiture assumptions.~~assume any estimated forfeitures. The other assumptions used in calculating these amounts are set forth in Note 7, 1, Summary of Significant Accounting Policies, and Note 9, ~~Shareholders'~~Shareholders’ Equity, of the Notes to ~~the consolidated financial statements~~Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January ~~30, 2016.~~29, 2022. The value reflected for any ~~performance share~~performance-conditioned award is the value at the grant date ofbased upon the probable outcome of the award – see footnote (3) to the Summary Compensation Table.

(3)

The amounts reflect ~~nonqualified stock options,~~performance share awards, as discussed under the heading Compensation Discussion and Analysis – Executive Compensation Elements – Long-Term Incentive,that, if earned, will vest at or between the threshold (50% of target) and maximum (150% of target) levels depending on the performance of our stock’s total shareholder return, relative to the S&P 500 Index, over the 36-month period commencing on January 31, 2021, and ending on February 3, 2024. The NEO is also entitled to an accrual of dividend equivalents, equal to the cash amount that would have ~~a term~~been payable on the number of ~~ten years~~performance shares held by them as of the close of business on the record date for each declared divided, which shall be credited to them as the equivalent amount of shares that could have been purchased as of the close of business on the dividend payment date. The accrued dividend equivalents will be payable when the performance shares on which such dividend equivalents were credited have become earned, vested and ~~become exercisable~~payable.

(4)

The amounts reflect performance-conditioned time-based restricted shares or restricted stock units, as discussed under the heading Compensation Discussion and Analysis – Executive Compensation Elements – Long-Term Incentive, which will vest in three equal installments of one-third on each of the first three anniversaries of the grant date, provided the NEO has been continually employed with us through those ~~dates.~~dates and provided that we have achieved positive Adjusted Net Earnings as of the end of any fiscal year during the three-year term of the award. The ~~option exercise price~~NEO is also entitled to an accrual of dividend equivalents, equal to the ~~closing price of our common stock~~cash amount that would have been payable on the ~~grant date,~~number of restricted shares held by them as ~~quoted~~of the close of business on the ~~NYSE.~~record date for each declared divided, which shall be credited to them as the equivalent amount of shares that could have been purchased as of the close of business on the dividend payment date. The accrued dividend equivalents will be payable when the restricted shares on which such dividend equivalents were credited have become earned, vested and payable.

~~(4)~~(5)

The ~~amounts reflect~~amount reflects time-based restricted shares, as discussed under the heading Compensation Discussion and Analysis – Executive Compensation Elements – Long-Term Incentive, which will vest in three equal installments of one-third on each of the first three anniversaries of the grant date, provided the NEO has been continually employed with us through those dates. The NEO is also entitled to an accrual of dividend equivalents, equal to the cash amount that would have been payable on the number of restricted shares held by them as of the close of business on the record date for each declared divided, which shall be credited to them as the equivalent amount of shares that could have been purchased as of the close of business on the dividend payment date. The accrued dividend equivalents will be payable when the restricted shares on which such dividend equivalents were credited have become earned, vested and payable.

~~(5)~~

~~The amounts reflect performance share awards, as discussed under the heading~~ ~~Compensation Discussion and Analysis – Executive Compensation Elements – Long-Term Incentive,~~ that, if earned, will vest at or between the threshold (50% of target) and maximum (150% of target) levels depending on the performance of our stock's total shareholder return, relative to a peer group comprised of the S&P 500 Index, over the 36-month period commencing on March 1, 2015 and ending on February 28, 2018.2022 Proxy Statement


~~(6)~~	~~As discussed under the heading~~ ~~Compensation Discussion and Analysis – Executive Compensation Elements – Long-Term Incentive,~~ ~~in addition to her fiscal 2016 LTI award, Ms. Ballard received a one-time long-term incentive equity award having the same terms as the fiscal 2016 LTI award.~~

TABLE OF CONTENTS

Outstanding Equity Awards at Fiscal Year-End

The following table provides a summary of the ~~NEOs'~~NEO’s equity-based awards outstanding as of the end of fiscal ~~2016:~~2022:

Name

Grant

Date⁽¹⁾

Number of

Securities

Underlying

Unexercised

Options

Exercisable

(#)

Number of

Securities

Underlying

Unexercised

Options

Unexercisable

(#)

Option

Exercise

Price

($)

Option

Expiration

Date

Number of

Shares or

Units of

Stock That

Have Not Vested

(#)

Market

Value of

Shares or

Units of

Stock That

Have Not Vested

($)⁽²⁾

Equity Incentive

Plan Awards:

Number of Unearned

Shares, Units or

Other Rights That

Have Not Vested

(#)

Equity Incentive

Plan Awards:

Market or Payout

Value of Unearned

Shares, Units or

Other Rights That

Have Not Vested

($)⁽²⁾

Ms. Barry

3/20/2021

41,419⁽³⁾

$4,044,151

18,508⁽⁴⁾

$1,807,072

3/20/2020

29,167

58,336⁽⁵⁾

51.65

3/19/2030

35,134⁽³⁾

3,430,484

42,645⁽⁶⁾

4,163,858

3/20/2020

65,885⁽⁷⁾

6,432,963

6/11/2019

41,886

20,943⁽⁵⁾

65.52

6/10/2029

8,904⁽³⁾

869,387

34,494⁽⁸⁾

3,367,994

6/11/2019

33,630⁽⁹⁾

3,283,633

3/20/2019

20,895

10,448⁽⁵⁾

69.11

3/19/2029

4,682⁽³⁾

457,150

16,445⁽⁸⁾

1,605,641

3/20/2019

17,591⁽⁹⁾

1,717,536

10/1/2015

33,253

37.16

9/30/2025

3/12/2015

12,293

40.85

3/11/2025

8/18/2014

14,730

29.91

8/17/2024

6/19/2013

3,246

27.66

6/18/2023

4/16/2013

3,243

23.66

4/15/2023

Mr. Bilunas

3/20/2021

8,631⁽³⁾

842,731

3,857⁽⁴⁾

376,597

3/20/2021

8,631⁽¹⁰⁾

842,731

3/20/2020

6,705

13,411⁽⁵⁾

51.65

3/19/2030

8,078⁽³⁾

788,736

9,806⁽⁶⁾

957,458

3/20/2020

15,150⁽⁷⁾

1,479,246

8/20/2019

1,807⁽³⁾

176,435

4,142⁽⁸⁾

404,376

8/20/2019

4,094⁽⁹⁾

399,689

3/20/2019

49,050⁽¹¹⁾

69.11

3/19/2029

2,570⁽¹⁰⁾

250,935

2,715⁽⁸⁾

265,093

3/20/2019

2,909⁽⁹⁾

283,986

Mr. Bonfig

3/20/2021

5,502⁽¹⁰⁾

537,215

820⁽⁴⁾

80,065

3/20/2021

21,574⁽¹⁰⁾

2,106,485

3/20/2020

7,630⁽¹⁰⁾

744,993

2,781⁽⁶⁾

271,537

3/20/2020

13,464⁽¹⁰⁾

1,314,625

4,298⁽⁷⁾

419,608

3/20/2019

49,050⁽¹¹⁾

69.11

3/19/2029

2,570⁽¹⁰⁾

250,935

2,715⁽⁸⁾

265,093

3/20/2019

2,909⁽⁹⁾

283,986

Mr. Harmon

3/20/2021

4,532⁽¹⁰⁾

442,504

676⁽⁴⁾

65,956

3/20/2021

21,574⁽¹⁰⁾

2,106,485

3/20/2020

6,283⁽¹⁰⁾

613,472

2,292⁽⁶⁾

223,791

3/20/2020

3,540⁽⁷⁾

345,646

3/20/2019

1,708⁽¹⁰⁾

166,769

1,808⁽⁸⁾

176,484

3/20/2019

1,937⁽⁹⁾

189,080

Ms. Scarlett⁽¹²⁾

3/20/2021

6,904⁽³⁾

674,107

3,086⁽⁴⁾

301,268

3/20/2020

1,236

8,382⁽⁵⁾

51.65

3/19/2030

5,048⁽³⁾

492,887

6,129⁽⁶⁾

598,436

3/20/2020

20,198⁽¹³⁾

1,972,133

9,474⁽⁷⁾

925,041

3/26/2019

96,166⁽¹¹⁾

70.50

3/25/2029

3/20/2019

8,706

4,354⁽⁵⁾

69.11

3/19/2029

1,948⁽³⁾

190,203

6,860⁽⁸⁾

669,762

3/20/2019

7,337⁽⁹⁾

716,336

1/24/2019

57,109⁽¹¹⁾

57.60

1/23/2029

Option Awards Stock Awards
Name

Grant
Date⁽¹⁾

Number of
Securities Underlying
Unexercised
Options
Exercisable
(#)

Number of
Securities Underlying
Unexercised
Options
Unexercisable
(#)

Option
Exercise
Price
($)

Option
Expiration
Date

Number of
Shares or
Units of
Stock That
Have Not Vested
(#)

Market
Value of
Shares or
Units of
Stock That Have Not Vested
($)⁽²⁾

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested
(#)

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested
($)⁽²⁾
Mr. Joly 3/12/2015
158,445⁽³⁾
$ 40.85
3/11/2025
77,142⁽⁴⁾
$ 2,154,576

59,187⁽⁵⁾
$ 1,653,093
8/18/2014
61,330⁽³⁾

122,660⁽³⁾
29.91
8/17/2024
61,588⁽⁴⁾
1,720,153

149,257⁽⁶⁾
4,168,748
4/16/2013
166,905⁽³⁾

83,453⁽³⁾
23.66
4/15/2023
43,554⁽⁴⁾
1,216,463
290,376⁽⁷⁾
8,110,202
9/4/2012
350,468⁽⁸⁾
18.02
9/3/2022
Ms. McCollam 3/12/2015
120,154⁽³⁾
40.85
3/11/2025
39,000⁽⁴⁾
1,089,270

17,954⁽⁵⁾
501,455
8/18/2014
47,311⁽³⁾

94,623⁽³⁾
29.91
8/17/2024
31,674⁽⁴⁾
884,655

46,056⁽⁶⁾
1,286,344
4/16/2013
128,755⁽³⁾

64,378⁽³⁾
23.66
4/15/2023
22,400⁽⁴⁾
625,632

89,603⁽⁷⁾
2,502,612
12/10/2012
383,142⁽³⁾
12.39
12/9/2022
Ms. Ballard 3/12/2015
105,630⁽³⁾
40.85
3/11/2025
34,286⁽⁴⁾
957,608

15,783⁽⁵⁾
440,819
8/18/2014
28,036⁽³⁾

14,018⁽³⁾
29.91
8/17/2024
9,385⁽⁴⁾
262,123

13,646⁽⁶⁾
381,133
4/16/2013
38,150⁽³⁾

19,075⁽³⁾
23.66
4/15/2023
6,637⁽⁴⁾
185,372

26,549⁽⁷⁾
741,514
1/16/2013
11,084⁽³⁾
14.67
1/15/2023
9/19/2012
11,084⁽³⁾
17.94
9/18/2022
6/20/2012
11,084⁽³⁾
20.31
6/19/2022
4/18/2012
8,334⁽³⁾
22.06
4/17/2022
2/1/2012
11,250⁽⁹⁾

3,750⁽⁹⁾
24.18
1/31/2022
417⁽¹⁰⁾
11,647

9/21/2011
15,000⁽⁹⁾
24.12
9/20/2021
6/20/2011
15,000⁽⁹⁾
31.54
6/19/2021
4/6/2011
20,000⁽⁹⁾
29.75
4/5/2021
1/12/2011
20,000⁽⁹⁾
35.67
1/11/2021
9/20/2010
20,000⁽⁹⁾
38.32
9/19/2020
6/23/2010
16,563⁽⁹⁾
36.63
6/22/2020
4/7/2010
16,563⁽⁹⁾
44.20
4/6/2020
1/13/2010
16,563⁽⁹⁾
39.73
1/12/2020
9/17/2009
16,563⁽⁹⁾
37.59
9/16/2019
6/23/2009
33,125⁽⁹⁾
32.98
6/22/2019
10/31/2008
66,250⁽⁹⁾
26.88
10/30/2018
10/18/2007
66,200⁽⁹⁾
47.84
10/17/2017
10/23/2006
66,200⁽⁹⁾
55.46
10/22/2016
Mr. Mohan 3/12/2015
52,815⁽³⁾
40.85
3/11/2025
15,783⁽⁴⁾
440,819

7,892⁽⁵⁾
220,424
8/18/2014
20,443⁽³⁾

40,886⁽³⁾
29.91
8/17/2024
13,686⁽⁴⁾
382,250

19,901⁽⁶⁾
555,835
3/12/2014
15,128⁽³⁾

30,257⁽³⁾
25.74
3/11/2024
10,527⁽⁴⁾
294,019

4/16/2013
31,791⁽³⁾

15,896⁽³⁾
23.66
4/15/2023
5,531⁽⁴⁾
154,481

22,124⁽⁷⁾
617,923
3/11/2013
19,970⁽³⁾

35,330⁽³⁾
20.08
3/10/2023
11,514⁽⁴⁾
321,586

1/16/2013
1,330⁽³⁾
14.67
1/15/2023
9/19/2012
1,330⁽³⁾
17.94
9/18/2022
4/18/2012
3,000⁽³⁾
22.06
4/17/2022
2/1/2012
3,750⁽⁹⁾

1,250⁽⁹⁾
24.18
1/31/2022
9/21/2011
5,000⁽⁹⁾
24.12
9/20/2021
6/20/2011
5,000⁽⁹⁾
31.54
6/19/2021
4/6/2011
5,000⁽⁹⁾
29.75
4/5/2021
1/12/2011
5,000⁽⁹⁾
35.67
1/11/2021
9/20/2010
5,000⁽⁹⁾
38.32
9/19/2020
6/23/2010
5,000⁽⁹⁾
36.63
6/22/2020
4/7/2010
6,250⁽⁹⁾
44.20
4/6/2020
1/13/2010
6,250⁽⁹⁾
39.73
1/12/2020
9/17/2009
6,250⁽⁹⁾
37.59
9/16/2019
6/23/2009
12,500⁽⁹⁾
32.98
6/22/2019
10/31/2008
18,333⁽⁹⁾
26.88
10/30/2018
8/5/2008
20,000⁽⁹⁾
41.19
8/4/2018
10/18/2007
4,878⁽⁹⁾
47.84
10/17/2017
10/23/2006
5,025⁽⁹⁾
55.46
10/22/2016


(1)	For a better understanding of the equity-based awards included in this table, we have provided the grant date of each award.


(2)	These amounts were determined based on the closing price of Best Buy common stock on the NYSE of $97.64 on January ~~29, 2016,~~28, 2022, the last trading day in fiscal ~~2016.~~ 2022.

2022 Proxy Statement

TABLE OF CONTENTS

(3)

The ~~closing price quoted~~amount reflects performance-conditioned time-based restricted shares or restricted stock units, including restricted shares or restricted stock units remaining from the original grant and any restricted shares or restricted stock units accrued as dividend equivalents, if applicable (as indicated in the table below), that vest over a three-year period at the rate of one-third per year, beginning one year from the grant date, provided the NEO has been continually employed with us through those dates and provided that we have achieved positive Adjusted Net Earnings as of the end of any fiscal year during the three-year term of the award (the “Performance Condition”). For these awards, the Performance Condition was achieved as of the end of the fiscal year noted in the table below.

Name	Grant Date	Fiscal year in which the Performance Condition was achieved	Unvested Restricted Shares or Restricted Stock Units	Accrued Dividend Equivalent Shares or Units
Ms. Barry	3/20/2021	2022	40,613	806
	3/20/2020	2021	33,688	1,446
	6/11/2019	2020	8,356	548
	3/20/2019	2020	4,341	341
Mr. Bilunas	3/20/2021	2022	8,461	170
	3/20/2020	2021	7,744	334
	8/20/2019	2020	1,703	104
Ms. Scarlett	3/20/2021	2022	6,769	135
	3/20/2020	2021	4,840	208
	3/20/2019	2020	1,809	139

(4)

The amount reflects an outstanding performance share award assuming a threshold payout (50% of the target grant) plus accrued dividend equivalents (as indicated in the table below) as of fiscal year-end. The number of shares ultimately earned will be based on the ~~NYSE~~performance of our stock’s total shareholder return, relative to the S&P 500 Index, over the 36-month period commencing on January 31, 2021, and ending on February 3, 2024. As of the end of fiscal 2022, performance was ~~$27.93.~~below the threshold payout level for these shares. Under the terms of the awards, dividend equivalent shares accrue assuming a target payout and are adjusted and issued at the end of the performance period based on actual performance but are shown in the table assuming a threshold payout.

Name	Grant Date	Outstanding Performance Share Awards – Assuming Threshold Payout	Accrued Dividend Equivalent Shares – Assuming Threshold Payout
Ms. Barry	3/20/2021	18,147	361
Mr. Bilunas	3/20/2021	3,781	76
Mr. Bonfig	3/20/2021	804	17
Mr. Harmon	3/20/2021	662	14
Ms. Scarlett	3/20/2021	3,025	61


~~(3)~~(5)	The amount reflects nonqualified stock options that become exercisable over a three-year period at the rate of one-third per year, beginning one year from the grant date, provided the NEO has been continually employed with us through those dates.

(6)

The amount reflects an outstanding performance share award assuming a target payout (100% of the target grant) plus accrued dividend equivalents (as indicated in the table below) as of fiscal year-end. The number of shares ultimately earned will be based on the performance of our stock’s total shareholder return, relative to the S&P 500 Index, over the 36-month period commencing on February 2, 2020, and ending on January 28, 2023. As of the end of fiscal 2022, performance was between the threshold and target payout level for these shares. Dividend equivalent shares accrue assuming a target payout and are adjusted and issued at the end of the performance period based on actual performance.

Name	Grant Date	Outstanding Performance Share Awards – Assuming Target Payout	Accrued Dividend Equivalent Shares – Assuming Target Payout
Ms. Barry	3/20/2020	40,884	1,761
Mr. Bilunas	3/20/2020	9,399	407
Mr. Bonfig	3/20/2020	2,663	118
Mr. Harmon	3/20/2020	2,194	98
Ms. Scarlett	3/20/2020	5,875	254

~~(4)~~

2022 Proxy Statement

TABLE OF CONTENTS

(7)

The amount reflects an outstanding performance share award assuming a maximum payout (150% of the target grant) plus accrued dividend equivalents (as indicated in the table below) as of fiscal year-end. The number of shares ultimately earned will be based on the compound annual growth rate of our enterprise revenue, over the 36-month period commencing on February 2, 2020, and ending on January 28, 2023. As of the end of fiscal 2022, performance was at the maximum payout level for these shares. Under the terms of the awards, dividend equivalent shares accrue assuming a target payout and are adjusted and issued at the end of the performance period based on actual performance but are shown in the table assuming a maximum payout.

Name	Grant Date	Outstanding Performance Share Awards – Assuming Maximum Payout	Accrued Dividend Equivalent Shares – Assuming Maximum Payout
Ms. Barry	3/20/2020	63,167	2,718
Mr. Bilunas	3/20/2020	14,522	629
Mr. Bonfig	3/20/2020	4,115	183
Mr. Harmon	3/20/2020	3,389	152
Ms. Scarlett	3/20/2020	9,077	398

(8)

The amount reflects an outstanding performance share award assuming a maximum payout (150% of the target grant) plus accrued dividend equivalents (as indicated in the table below) as of fiscal year-end. The number of shares ultimately earned will be based on the performance of our stock’s total shareholder return, relative to the S&P 500 Index, over the 36-month period commencing on February 3, 2019, and ending on January 29, 2022. As of the end of fiscal 2022, performance was between the target and maximum payout level for these shares. Under the terms of the awards, dividend equivalent shares accrue assuming a target payout and are adjusted and issued at the end of the performance period based on actual performance but are shown in the table assuming a maximum payout.

Name	Grant Date	Outstanding Performance Share Awards – Assuming Maximum Payout	Accrued Dividend Equivalent Shares – Assuming Maximum Payout
Ms. Barry	6/11/2019	32,141	2,354
Ms. Barry	3/20/2019	15,215	1,230
Mr. Bilunas	8/20/2019	3,881	261
Mr. Bilunas	3/20/2019	2,507	209
Mr. Bonfig	3/20/2019	2,507	209
Mr. Harmon	3/20/2019	1,667	141
Ms. Scarlett	3/20/2019	6,339	521

(9)

The amount reflects an outstanding performance share award assuming a maximum payout (150% of the target grant) plus accrued dividend equivalents (as indicated in the table below) as of fiscal year-end. The number of shares ultimately earned will be based on the compound annual growth rate of our enterprise revenue, over the 36-month period commencing on February 3, 2019, and ending on January 29, 2022. As of the end of fiscal 2022, performance was at the maximum payout level for these shares. Under the terms of the awards, dividend equivalent shares accrue assuming a target payout and are adjusted and issued at the end of the performance period based on actual performance but are shown in the table assuming a maximum payout.

Name	Date Grant	Outstanding Performance Share Awards – Assuming Maximum Payout	Accrued Dividend Equivalent Shares – Assuming Maximum Payout
Ms. Barry	6/11/2019	31,337	2,294
	3/20/2019	16,280	1,311
Mr. Bilunas	8/20/2019	3,834	260
Mr. Bilunas	3/20/2019	2,682	227
Mr. Bonfig	3/20/2019	2,682	227
Mr. Harmon	3/20/2019	1,784	153
Ms. Scarlett	3/20/2019	6,783	554

2022 Proxy Statement

TABLE OF CONTENTS

(10)

The amount reflects time-based restricted shares or restricted stock units, including restricted shares or restricted stock units remaining from the original grant and any restricted shares or restricted stock units accrued as dividend equivalents, if applicable (as indicated in the table below), that vest over a three-year period at the rate of one-third per year, beginning one year from the grant date, provided the NEO has been continually employed with us through those dates.

Name	Grant Date	Unvested Restricted Shares or Restricted Stock Units	Accrued Dividend Equivalent Shares or Units
Mr. Bilunas	3/20/2021	8,461	170
Mr. Bilunas	3/20/2019	2,384	186
Mr. Bonfig	3/20/2021	5,394	108
	3/20/2021	21,153	421
	3/20/2020	7,315	315
	3/20/2020	12,908	556
	3/20/2019	2,384	186
Mr. Harmon	3/20/2021	4,443	89
	3/20/2021	21,153	421
	3/20/2020	6,024	259
	3/20/2019	1,585	123

~~(5)~~(11)

The amount reflects an outstanding performance share award assuming a payout at threshold (50% of the target grant). The number of shares ultimately earned will be based on the performance of our stock's total shareholder return, relative to a peer group comprised of the S&P 500 Index, over the 36-month period commencing on March 1, 2015 and ending on February 28, 2018. As of the end of fiscal 2016, performance was beneath the threshold payout level for these shares.

~~(6)~~

The amount reflects an outstanding performance share award assuming payout at target. The number of shares ultimately earned will be based on the performance of our stock's total shareholder return, relative to a peer group comprised of the S&P 500 Index, over the 36-month period commencing on August 1, 2014 and ending on July 31, 2017. As of the end of fiscal 2016, performance was between the threshold and target payout level for these shares.

~~(7)~~

The amount reflects an outstanding performance share award assuming a maximum payout (150% of the target grant). The number of shares ultimately earned will be based on the performance of our stock's total shareholder return, relative to a peer group comprised of the S&P 500 Index, over the 36-month period commencing on April 1, 2013 and ending on March 31, 2016. As of the end of fiscal 2016, performance was between the target and maximum payout level for these shares.


~~(8)~~	~~The amount reflects~~represents nonqualified stock options that ~~became~~will become exercisable ~~in four equal installments of 25% each, with the first installment vesting~~ on the ~~grant date and the remaining three installments vesting on each~~fourth anniversary of ~~the next three anniversaries of the grant date.~~


~~(9)~~	~~The amount reflects nonqualified stock options that become exercisable over a four-year period at the rate of 25% per year, beginning one year from~~ the grant date, provided the NEO has been continually employed with us through ~~those dates.~~that date.

(12)

Ms. Scarlett will meet the age and service conditions for qualified retirement, as defined in our award agreements, in June 2023, which is during the term of her fiscal 2022 time-based awards and prior to the end of the performance period for her fiscal 2022 performance share award (see awards with March 20, 2021, grant date). The effect of qualified retirement on all of our outstanding equity awards is discussed in the Potential Payments Upon Termination of Change-of-Control section.

~~(10)~~(13)

The amount reflects time-based restricted shares, ~~which will~~including 19,362 restricted shares remaining from the original grant and 836 restricted shares accrued as dividend equivalents, that vest in ~~equal installments over a four-year period at the rate of 25% per year, beginning one year~~full two years from the grant date, provided ~~the NEO~~Ms. Scarlett has been continually employed with us through ~~those dates.~~that date.

2022 Proxy Statement

TABLE OF CONTENTS

Option Exercises and Stock Vested

The table below provides a summary of the value realized in connection with stock option awards exercised and stock awards vested for our NEOs during fiscal ~~2016.~~2022.

Option Awards Stock Awards
Name
Number of Shares
Acquired on
Exercise
(#)

Value
Realized on
Exercise⁽¹⁾
($)

Number of Shares
Acquired on
Vesting
(#)

Value
Realized on
Vesting⁽²⁾
($)
Mr. Joly —
$ —

499,688⁽³⁾
$ 18,238,473
Ms. McCollam —
—

317,756⁽⁴⁾
11,460,330
Ms. Ballard —
—

60,203⁽⁵⁾
2,143,230
Mr. Mohan
30,000⁽⁶⁾

557,658

92,857⁽⁷⁾
3,455,950
Mr. Nelsen
14,975⁽⁸⁾

277,491

52,066⁽⁹⁾
1,244,973

Name	Option Awards		Stock Awards
Name	Number of Shares Acquired on Exercise (#)	Value Realized on Exercise⁽¹⁾ ($)	Number of Shares Acquired on Vesting (#)	Value Realized on Vesting⁽²⁾ ($)
Ms. Barry	—	$—	71,643⁽³⁾	$8,446,248
Mr. Bilunas	—	—	13,764⁽⁴⁾	1,623,175
Mr. Bonfig	—	—	18,346⁽⁵⁾	2,192,365
Mr. Harmon	—	—	5,576⁽⁶⁾	659,499
Ms. Scarlett	2,955⁽⁷⁾	179,989	16,717⁽⁸⁾	1,973,375


(1)	Value based on market value of Best Buy common stock at the time of exercise, minus the exercise cost.


(2)	Value based on the closing market price of Best Buy common stock on the vesting date.


(3)	The amount represents:

(a)

the ~~partial~~ vesting of ~~the time-based~~ restricted shares granted under our ~~fiscal 2015~~ LTI program: ~~one-third (30,794 shares) of the August 18, 2014 grant,~~7,502 shares that were granted on March 12, 2018, which vested on ~~August 18, 2015;~~March 12, 2021; 4,606 shares that were granted on March 20, 2019, which vested on March 20, 2021; 8,797 shares that were granted on June 11, 2019, which vested on June 12, 2021; and 17,231 shares that were granted on March 20, 2020, which vested on March 20, 2021;


(b)	~~the partial vesting of the time-based restricted shares granted under our fiscal 2014 LTI program: one-third (43,554 shares) of the April 16, 2013 grant, which vested on April 16, 2014;~~

~~(c)~~

the final vesting for Mr. Joly's September 4, 2012 time-based restricted stock unit award: (i) 73,992 restricted stock units, which vested in 8 equal installments of 9,249 restricted stock units on the fourth day of each month in fiscal 2016 through September 4, 2015 and (ii) 19,739 restricted stock units earned as dividend equivalents, which also vested during fiscal 2016. The vested units are payable to Mr. Joly in the form of shares of our common stock (one share per unit); however, issuance of the shares to Mr. Joly is deferred until after his separation from the Company per the terms of the award agreement; and

~~(d)~~

the shares ~~(299,859) and dividend equivalents (31,750)~~(16,506) acquired upon the vesting and settlement of a performance share award ~~which~~that was granted on ~~September 4, 2012~~March 12, 2018, and was based on the performance of our ~~stock's~~stock’s total shareholder return, relative to ~~a peer group comprised of~~ the S&P 500 Index, over a 36-month period ~~which~~that ended on ~~September~~January 30, ~~2015.~~


~~(4)~~	~~The amount represents:~~


~~(a)~~	~~the partial vesting of the time-based restricted shares granted under our fiscal 2015 LTI program: one-third (15,836) of the August 18, 2014 grant, which vested on August 18, 2015;~~


~~(b)~~	~~the partial vesting of the time-based restricted shares granted under our fiscal 2014 LTI program: one-third (22,399 shares) of the April 16, 2013 grant, which vested on April 16, 2015;~~


~~(c)~~	~~the final vesting for Ms. McCollam's December 10, 2012 time-based restricted share award (35,872 shares and 4,061 shares earned as dividend equivalents), which occurred on December 10, 2015;~~2021; and

~~(d)~~(c)

the shares ~~(218,819) and dividend equivalents (20,769)~~(17,001) acquired upon the vesting and settlement of a performance share award ~~which~~that was granted on ~~December 10, 2012~~March 12, 2018, and was based on the ~~performance~~compound annual growth rate of our ~~stock's total shareholder return, relative to a peer group comprised of the S&P 500 Index,~~enterprise revenue, over a 36-month period ~~which~~that ended on ~~September~~January 30, ~~2015.~~2021.


~~(5)~~(4)	The amount represents:

(a)

the ~~partial~~ vesting of ~~the time-based~~ restricted shares granted under our ~~fiscal 2015~~ LTI program: ~~one-third (4,692) of the~~1,685 shares that were granted on March 12, 2018, which vested on March 12, 2021; 2,535 shares that were granted on March 20, 2019, which vested on March 20, 2021; 1,801 shares that were granted on August ~~18, 2014 grant,~~20, 2019, which vested on August ~~18, 2015;~~20, 2021; and 3,964 shares that were granted on March 20, 2020, which vested on March 20, 2021;


(b)	~~the partial vesting of the time-based restricted shares granted under our fiscal 2014 LTI program: one-third (6,637 shares) of the April 16, 2013 grant, which vested on April 16, 2015;~~

~~(c)~~

the partial vesting of four time-based restricted share awards granted under our fiscal 2013 LTI program: (i) one-third (926 shares) of the April 18, 2012 grant, which vested on April 20, 2015, (ii) one-third (926 shares) of the June 20, 2012 grant, which vested on June 22, 2015, (iii) one-third (926 shares) of the September 19, 2012 grant, which vested on September 21, 2015 and (iv) one-third (926 shares) of the January 16, 2013 grant, which vested on January 19, 2016;


~~(d)~~	~~the final vesting (25,668 shares) of Ms. Ballard's June 21, 2012 time-based restricted share award, which occurred on June 22, 2015;~~


~~(e)~~	the partial vesting of three time-based restricted share awards granted under our fiscal 2012 LTI program: (i) 25% (417 shares) of the February 2, 2011 grant, which vested on February 2, 2015, (ii) 25% (417 shares) of the June 20, 2011 grant, which vested on June 22, 2015, and (iii) 25% (417 shares) of the September 21, 2011 grant, which vested on September 21, 2015; and

~~(f)~~

the shares ~~(16,668) and dividend equivalents (1,583)~~(1,860) acquired upon the vesting and settlement of a performance share award ~~which~~that was granted on ~~September 19, 2012~~March 12, 2018, and was based on the performance of our ~~stock's~~stock’s total shareholder return, relative to ~~a peer group comprised of~~ the S&P 500 Index, over a 36-month period ~~which~~that ended on ~~September~~January 30, ~~2015.~~


~~(6)~~	~~On September 16, 2015, Mr. Mohan exercised options to purchase 27,340 shares at an exercise price of $20.08, 1,330 shares at an exercise price of $20.31,~~2021; and ~~1,330 shares at an exercise price of $14.67. These options were exercised when the market prices of a share of Best Buy common stock were $38.43 (27,340 shares) and $38.50 (2,660 shares).~~


~~(7)~~	~~The amount represents:~~


~~(a)~~	~~the partial vesting of the time-based restricted shares granted under our fiscal 2015 LTI program: one-third (6,843) of the August 18, 2014 grant, which vested on August 18, 2015;~~


~~(b)~~	~~the partial vesting (5,263 shares) of Mr. Mohan's March 12, 2014 time-based restricted share award, which occurred on March 12, 2015;~~

(c)


~~(c)~~	~~the partial vesting of the time-based restricted shares granted under our fiscal 2014 LTI program: one-third (5,531 shares) of the April 16, 2013 grant, which vested on April 16, 2015;~~


~~(d)~~	~~the partial vesting (11,514 shares) of Mr. Mohan's March 11, 2013 time-based restricted share award, which vested on March 11, 2015;~~

~~(e)~~

the partial vesting of four time-based restricted share awards granted under our fiscal 2013 LTI program: (i) one-third (334 shares) of the April 18, 2012 grant, which vested on April 20, 2015, (ii) one-third (334 shares) of the June 20, 2012 grant, which vested on June 22, 2015, (iii) one-third (334 shares) of the September 19, 2012 grant, which vested on September 21, 2015, and (iv) one-third (334 shares) of the January 16, 2013 grant, which vested on January 19, 2015;


~~(f)~~	~~the final vesting (5,545 shares) of Mr. Mohan's June 21, 2012 time-based restricted share award, which occurred on June 22, 2015;~~

~~(g)~~

the shares ~~(6,000) and dividend equivalents (570)~~(1,919) acquired upon the vesting and settlement of a performance share award ~~which~~that was granted on ~~September 19, 2012~~March 12, 2018, and was based on the ~~performance~~compound annual growth rate of our ~~stock's total shareholder return, relative to a peer group comprised of the S&P 500 Index,~~enterprise revenue, over a 36-month period ~~which~~that ended on ~~September~~January 30, ~~2015; and~~2021.

(5)	The amount represents:

~~(h)~~(a)

the vesting of restricted shares granted under our LTI program: 1,685 shares that were granted on March 12, 2018, which vested on March 12, 2021; 2,535 shares that were granted on March 20, 2019, which vested on March 20, 2021; and 10,347 shares that were granted on March 20, 2020, which vested on March 20, 2021;

(b)

the shares ~~(46,557) and dividend equivalents (3,698)~~(1,860) acquired upon the vesting and settlement of a performance share award ~~which~~that was granted on March ~~13, 2013~~12, 2018, and was based on the performance of our ~~stock's~~stock’s total shareholder return, relative to ~~a peer group comprised of~~ the S&P 500 Index, over a 36-month period ~~which~~that ended on ~~September~~January 30, ~~2015.~~2021; and

(c)	the shares (1,919) acquired upon the vesting and settlement of a performance share award that was granted on March 12, 2018, and was based on the compound annual growth rate of our enterprise revenue, over a 36-month period that ended on January 30, 2021.

~~(8)~~(6)

The amount represents the vesting of restricted shares granted under our LTI program: 809 shares that were granted on January 7, 2019, which vested on January 7, 2022; 1,685 shares that were granted on March 20, 2019, which vested on March 20, 2021; and 3,082 shares that were granted on March 20, 2020, which vested on March 20, 2021.

(7)

On ~~September 21, 2015, Mr. Nelsen~~June 11, 2021, Ms. Scarlett exercised 2,955 stock options ~~to purchase 3,325 shares at an exercise~~having a strike price of $20.31, 2,500 shares at an exercise price of $22.06, 2,500 shares at an exercise price of $24.12, 3,325 shares at an exercise price of $17.94 and 3,325 shares at an exercise price of $14.67. These options were all exercised$51.65 when the market price of a share of Best Buy common stock was ~~$37.99.~~$112.56.


~~(9)~~(8)	The amount represents:

(a)

the ~~partial~~ vesting of ~~the time-based~~ restricted shares granted under our ~~fiscal 2015~~ LTI program: ~~one-third (5,083) of the August 18, 2014 grant,~~2,247 shares that were granted on March 12, 2018, which vested on ~~August 18, 2015;~~March 12, 2021; 1,924 shares that were granted on March 20, 2019, which vested on March 20, 2021; and 2,479 shares that were granted on March 20, 2020, which vested on March 20, 2021;


(b)	~~the partial vesting of the time-based restricted shares granted under our fiscal 2014 LTI program: one-third (7,190 shares) of the April 16, 2013 grant, which vested on April 16, 2015;~~

~~(c)~~

the partial vesting of four time-based restricted share awards granted under our fiscal 2013 LTI program: (i) one-third (834 shares) of the April 18, 2012 grant, which vested on April 20, 2015, (ii) one-third (834 shares) of the June 20, 2012 grant, which vested on June 22, 2015, (iii) one-third (834 shares) of the September 19, 2012 grant, which vested on September 21, 2015 and (iv) one-third (834 shares) of the January 16, 2013 grant, which vested on January 19, 2016;


~~(d)~~	~~the final vesting (19,251 shares) of Mr. Nelsen's June 21, 2012 time-based restricted share award, which occurred on June 22, 2015;~~


~~(e)~~	the partial vesting of three time-based restricted share awards granted under our fiscal 2012 LTI program: (i) 25% (260 shares) of the February 2, 2011 grant, which vested on February 2, 2015; (ii) 25% (261 shares) of the June 20, 2011 grant, which vested on June 22, 2015, and (iii) 25% (261 shares) of the September 21, 2011 grant, which vested on September 21, 2015; and

~~(f)~~

the shares ~~(15,000) and dividend equivalents (1,424)~~(4,959) acquired upon the vesting and settlement of a performance share award ~~which~~that was granted on ~~September 19, 2012~~March 12, 2018, and was based on the performance of our ~~stock's~~stock’s total shareholder return, relative to ~~a peer group comprised of~~ the S&P 500 Index, over a 36-month period ~~which~~that ended on ~~September~~January 30, ~~2015.~~2021; and

(c)	the shares (5,108) acquired upon the vesting and settlement of a performance share award that was granted on March 12, 2018, and was based on the compound annual growth rate of our enterprise revenue, over a 36-month period that ended on January 30, 2021.

2022 Proxy Statement

TABLE OF CONTENTS

Nonqualified Deferred Compensation

Deferred Compensation Plan.The ~~following table shows the account balances at January 30, 2016, and the contributions and earnings during fiscal 2016, for participating NEOs under the~~ Best Buy ~~Co., Inc.~~ Sixth Amended and Restated Deferred Compensation Plan ~~as amended ("~~(“Deferred Compensation ~~Plan"~~Plan”), which is described in greater detail below the table. The table also includes the value of restricted stock units that have vested but, as of the end of fiscal 2016, have not been issued to Mr. Joly as shares pursuant to the terms of his award agreement.

Name
Executive
Contributions
in Last Fiscal Year

Registrant
Contributions
in Last Fiscal Year

Aggregate
Earnings
(Losses)
in Last Fiscal Year

Aggregate
Withdrawals/
Distributions

Aggregate
Balance at
Last Fiscal Year End

Mr. Joly $ 2,647,896
⁽¹⁾
$ —
$ 649,872
⁽²⁾
$ —
$ 10,362,030
⁽³⁾
Ms. McCollam —
—
—
—
—

Ms. Ballard —
—
(88,576 ) —
1,752,142
⁽⁴⁾
Mr. Mohan —
—
(5,413 ) —
121,840
⁽⁵⁾
Mr. Nelsen —
—
—
—
—

~~(1)~~

This amount reflects the value of the portion of Mr. Joly's September 4, 2012 restricted stock unit award (73,992 units) that vested during fiscal 2016. The 73,992 vested units are payable to Mr. Joly in the form of shares of our common stock (one share per unit). The shares were a part of the equity granted to Mr. Joly to compensate him for certain forfeitures he incurred upon termination of his employment with his former employer. The shares will be issued to Mr. Joly within six months following his separation from the Company, pursuant to his employment arrangement with the Company as disclosed on the Current Report on Form 8-K filed by the Company on August 21, 2012.

~~(2)~~

This amount reflects the value of the dividend equivalents earned by Mr. Joly relative to his September 4, 2012 restricted stock unit award which vested during fiscal 2016 (19,739 dividend equivalent units). The 19,739 units are payable to Mr. Joly in the form of shares of our common stock (one share per unit). The shares will be issued to Mr. Joly within six months following his separation from the Company.

~~(3)~~

This amount reflects the end of fiscal year value of all vested restricted stock units and related dividend equivalents from Mr. Joly's September 4, 2012 award (in total, 332,964 units and 38,036 dividend equivalent units), calculated based on the closing price of our common stock ($27.93) as quoted on the NYSE on January 29, 2016, the last business day in fiscal 2016. The entire amount has been previously reported in the “Stock Awards” column of the ~~Summary Compensation Table~~.


~~(4)~~	~~This amount includes $859,369 that has previously been reported as either "Salary" or "Non-Equity Incentive Plan Compensation" in the~~ ~~Summary Compensation Table~~.


~~(5)~~	~~No portion of this amount has been previously reported in the~~ ~~Summary Compensation Table~~.

~~Deferred Compensation Plan.~~ ~~The Company's Deferred Compensation Plan~~ is unfunded and unsecured. We believe the plan provides a tax-deferred retirement savings vehicle that plays an important role in attracting and retaining executive talent. The Deferred Compensation Plan allows highly compensated employees, including the NEOs, to defer:

Up to 75% of base salary; and

Up to 100% of a cash bonus (earned and paid in the same year) and short-term incentive compensation (earned and paid in different years), as applicable.

Amounts deferred under and contributed to the Deferred Compensation Plan are credited or charged with the performance of investment options selected by the participants. The investment options are notional and do not represent actual investments, but rather serve as a measurement of performance. During fiscal 2022, none of the NEOs carried a balance in or made any contributions to the Deferred Compensation Plan.

The options available under the Deferred Compensation Plan and their ~~one-year annualized average~~annual rates of return as of ~~the end of fiscal 2016,~~December 31, 2021, were as follows:



~~Investment~~		Investment			Rate of Return⁽¹⁾
~~NVIT Money Market~~	Fidelity VIP Balanced Service	—	%	18.13%
	Vanguard VIF International			-1.54%
	PIMCO VIT Total Return Admin		~~(1.19~~	)% -1.26%
	Vanguard VIF Small Company Growth			14.22%
	PIMCO VIT ~~High-Yield Bond~~High Yield Admin		~~(3.22~~	)% 3.65%
~~Fidelity VIP II Asset Manager~~	Vanguard VIF Equity Income	~~(5.24~~	)%	25.33%
~~Vanguard VIF Diversified Value~~		~~(3.11~~	)%
Vanguard VIF Equity Index		~~(0.76~~	)% 28.55%
~~MFS VIT Growth Series~~	NVIT Government Money Market	~~3.79~~	%	0.00%
	Franklin ~~VIPT~~VIP Small Cap Value Securities		~~(6.49~~	)% 25.37%
~~Wells Fargo Advantage VT Small Cap~~	T. Rowe Price Blue Chip Growth		~~(12.81~~	)%
~~Vanguard VIF International~~ 17.62%		~~(8.72~~	)%


~~(1)~~	~~Rate of return is net of investment management fees, fund expenses or administrative charges, as applicable.~~

Participants who elect to defer compensation under the Deferred Compensation Plan also select when the deferred amounts will be distributed to them. Distributions may be made in a specific year, or at a specified time that begins on or after the ~~participant's~~participant’s retirement. Distributions are paid in a lump sum or in quarterly installments, depending on the ~~participant's~~participant’s election at the time of deferral. However, if a ~~participant's~~participant’s employment ends prior to retirement, a distribution is made promptly in a lump sum or in quarterly installments, depending on their initial election and account balance.

We do not provide employer-matching contributions for amounts deferred under the plan. Participants are fully vested in their contributions.

Potential Payments Upon Termination or Change-of-Control

Upon termination of employment or in the event the Company experiences a change-of-control, our NEOs may be eligible to receive certain payments and their outstanding equity awards may be impacted. Following is a summary of the effects of various termination and change-of-control scenarios for each form of compensation, including a quantitative disclosure of the estimated payments and realizable value for each scenario assuming an effective date of January 29, 2022, the end of fiscal 2022, for each NEO.

Cash ~~payments.~~compensation. Pursuant to the terms of ~~our~~the Company’s severance plan as of the end of fiscal 2022, and subject to entering into a separation agreement with us, our executive officers are generally eligible for: severance pay equal to two years of base salary; a payment equal to 150% of the cost of 23 months of medical, dental and vision benefits; a payment equal to 17 months of basic life insurance coverage; and payment of $25,000 in lieu of providing outplacement services and other tax and financial assistance upon involuntary termination due to job elimination, reduction in force, business restructuring or other circumstances as we determine at our discretion, our NEOs (other than Mr. Joly and Ms. McCollam, who have employment agreements) are eligible for: severance pay equal to two years of base salary; a payment equal to the cost of 24 months of basic employee benefits such as medical, dental and life insurance; and payment of $25,000 in lieu of providing outplacement services and other tax and financial assistance.discretion. For more detail regarding our severance plan, see the Compensation Discussion and Analysis — Executive Compensation Elements — Other Compensation — Severance Plan.section.

~~Mr. Joly and~~

2022 Proxy Statement

TABLE OF CONTENTS

Ms. ~~McCollam's~~Barry’s employment ~~agreements entitle them~~agreement entitles her to participate in the ~~Company's~~Company’s severance plan, as detailed above, but also ~~provide enhanced benefits under certain termination scenarios. They both receive an enhanced~~provides that she is eligible for the same severance ~~offering~~pay if she were to be involuntarily terminated without Cause or were to voluntarily terminate her employment for Good Reason. Additionally, upon involuntary termination without Cause or voluntary termination for Good Reason on or within 12 months following ~~(or in anticipation of)~~ a change-of-control, Ms. Barry is eligible for enhanced severance equal to (a) two times the sum of ~~their~~ base salary plus target bonus and (b) a ~~pro-rata~~pro rata annual bonus payment, dependent on actual performance under the ~~Company's STI~~Company’s short-term incentive plan for the fiscal year in which the termination occurs. ~~Additionally,~~

The following table provides, for the specified NEOs, as of the end of fiscal 2022, the potential severance amount they are ~~both~~ eligible for ~~severance payments~~under the scenarios discussed above.

Name	Voluntary Termination for Good Reason	Involuntary Termination without Cause	Involuntary Termination — under Severance Plan⁽¹⁾	Termination following Change-of-Control
Ms. Barry	$2,687,755	$2,687,755	$2,687,755	$9,164,422
Mr. Bilunas	—	—	1,687,560	—
Mr. Bonfig	—	—	1,357,491	—
Mr. Harmon	—	—	1,346,820	—
Ms. Scarlett	—	—	1,873,965	—

(1)	Pursuant to our Severance Plan, our NEOs are eligible for cash severance, as detailed above the table, if they are involuntarily terminated as a result of job elimination, reduction in force or business restructuring (or other circumstances at our discretion).

Under our STI plan, which is discussed in more detail in the Compensation Discussion and Analysis – Executive Compensation Elements – Short-Term Incentive section, our NEOs must remain employed with us through the end of the performance period in order to receive any payouts under the plan. If an NEO is terminated with Cause, they are ~~terminated involuntarily without Cause or if they terminate~~not eligible for any STI plan payments. In fiscal 2022, all of the NEOs were employed with us through the end of fiscal 2022, which was the end of the fiscal 2022 STI plan. Each of their ~~employment voluntarily for Good Reason (outside of a change-of-control) as detailed~~fiscal 2022 payments are discussed in the ~~tables that follow.~~Compensation Discussion and Analysis – Executive Compensation Elements – Short-Term Incentive and Summary Compensation Table sections.

Nonqualified stock options. Our award agreements dictate what happens to unvested stock options and how long vested stock options are exercisable following different types of termination events. The following chart illustrates ~~the treatment of outstanding~~these various treatments under each possible scenario for stock options granted to our NEOs under ~~various scenarios:~~our long-term incentive award programs.



~~Event~~		Event			Effect on Vested Stock Options⁽¹⁾		Effect on Unvested Stock Options
	Voluntary termination ~~without~~ ~~Good Reason~~⁽²⁾			Stock options granted under our LTI program are exercisable for a 60-day period following the termination date. Sign-on stock options granted to Mr. Joly and Ms. McCollam in fiscal 2013 (on September 4, 2012 and December 10, 2012, respectively) (the "Sign-On Stock Options") are exercisable for a 90-day period following the termination date.		All stock options are forfeited.
	~~Voluntary~~Involuntary termination for ~~Good Reason~~⁽²⁾Cause			Not exercisable.		All stock options are forfeited.
	Involuntary termination without Cause			Stock options granted under our LTI program are exercisable for a 60-day period following the termination date. ~~Mr. Joly and Ms. McCollam's Sign-On Stock Options are exercisable for a two-year period following the termination date.~~		All stock options are forfeited.
~~Involuntary termination for Cause~~		~~Not exercisable.~~		~~All stock options are forfeited.~~
~~Involuntary termination without~~ ~~Cause~~Termination⁽²⁾ within 12 months of a change-of-control			Stock options granted under our LTI program are exercisable for a 60-day period following the termination date. ~~Mr. Joly and Ms. McCollam's Sign-On Stock Options are exercisable for a two-year period following the termination date.~~		~~All stock options are forfeited.~~
~~Termination~~⁽³⁾ ~~within 12 months of a change-of-control~~		~~Stock options granted under our LTI program are exercisable for a 60-day period following the termination date.~~ ~~Mr. Joly and Ms. McCollam's Sign-On Stock Options are exercisable for a two-year period following the termination date.~~		All stock options vest 100%.
	Death or disability			Generally exercisable for a one-year period.		All stock options vest 100%.
	Qualified retirement⁽⁴⁾⁽³⁾			Generally exercisable for a one- to three-year period depending on the terms and conditions of the respective award agreement.		~~Stock options granted since fiscal 2015 continue~~Continue to vest according to their normal vesting terms. ~~Stock options granted prior to fiscal 2015 vest 100%.~~


(1)	Stock options may not be exercised after their expiration dates under any circumstance.

(2)

~~(2)~~

For awards granted prior to fiscal 2015, this means involuntary termination without Cause or voluntary termination for Good Reason. Good Reason is usually deemed to exist if the Company makes a material adverse change to the ~~NEO's~~NEO’s title, responsibilities or salary or requires the NEO to work more than 50 miles from the corporate office location in Richfield, MN (except for temporary business-related travel). For awards granted in fiscal 2015 and thereafter, this means only involuntary termination without Cause.

(3)	Qualified Retirement is defined in our employment and award agreements as: retirement by an employee, including our NEOs, on or after their 60^th birthday, so long as they have been employed with the Company continuously for at least the five-year period immediately preceding their retirement date.

~~(3)~~

2022 Proxy Statement

TABLE OF CONTENTS

The table below provides, for the specified NEOs, as of the end of fiscal 2022, the value of their unvested, in-the-money stock options (as detailed in the Outstanding Equity Awards at Fiscal Year End section), under the situations discussed above. All values below were calculated using the closing price of our common stock as quoted on the NYSE on January 28, 2022, the last business day in fiscal 2022.

Name	Death or Disability	Termination following Change-of-Control⁽¹⁾
Ms. Barry	$3,653,643	$3,653,643
Mr. Bilunas	2,016,168	2,016,168
Mr. Bonfig	1,399,397	1,399,397
Mr. Harmon	—	—
Ms. Scarlett	5,406,297	5,406,297

(1)

Specifically, termination on or within 12 months of a change-of-control. For awards granted prior to fiscal 2015, this means involuntary termination without Cause or voluntary termination for Good Reason. For awards granted in fiscal 2015 and thereafter, this means only involuntary termination without Cause.

Restricted share awards. Pursuant to our award agreements, all unvested restricted share and restricted stock unit awards (including both time-based awards and time-based awards subject to performance conditions) held by our NEOs fully vest in the event of death or termination due to disability. Additionally, upon qualified retirement any unvested restricted shares and restricted stock units would continue to vest according to their normal vesting schedule, subject to achievement of performance conditions (where applicable). Under all other termination scenarios, unvested restricted shares and restricted stock units are forfeited and there are no change-of-control provisions which impact them.

The table below provides, for the specified NEOs, as of the end of fiscal 2022, the value of their unvested restricted share and restricted stock unit awards (as detailed in the Outstanding Equity Awards at Fiscal Year End section) in the event of their death or disability. All values below were calculated using the closing price of our common stock as quoted on the NYSE on January 28, 2022, the last business day in fiscal 2022.

	Name	Death or Disability
~~(4)~~	~~Qualified Retirement~~ ~~is defined in our employment and award agreements as: retirement by an employee, including our NEOs, on or after their 60~~^th ~~birthday, so long as they have been employed continuously for at least the five-year period immediately preceding their retirement date.~~Ms. Barry	$8,801,172
	Mr. Bilunas	2,058,837
	Mr. Bonfig	4,954,254
	Mr. Harmon	3,329,231
	Ms. Scarlett	3,329,329

~~Time-based restricted share awards.~~ ~~The following chart illustrates the treatment of unvested time-based restricted shares under various scenarios.~~



~~Outstanding Awards~~	~~Event~~	~~Effect on Unvested Shares~~
~~Fiscal 2016 and fiscal 2015 LTI program time-based restricted share awards (all NEOs)~~	~~-Death or disability~~	~~-Vest 100%~~
	~~-Qualified retirement~~	~~-Continue to vest according to normal vesting terms without risk of forfeiture~~
~~Fiscal 2014 LTI program time-based restricted share awards (all NEOs)~~	~~-Qualified retirement~~	~~-Vest 100%~~
~~Fiscal 2012 LTI program time-based restricted share awards (Ms. Ballard and Mr. Nelsen)~~	~~-Death or disability~~	~~-All restrictions on the shares lapse and they become non-forfeitable and transferable~~
	~~-Qualified retirement~~
	~~-Change-of-control~~⁽¹⁾


~~(1)~~	~~Means involuntary termination without Cause or voluntary termination for Good Reason within 12 months following a change-of-control.~~

Performance share awards. The following chart illustrates the treatment of outstanding performance share awards under various ~~scenarios.~~scenarios pursuant to our award agreements.


	Event
~~Outstanding Awards~~		~~Event~~	Effect on Unearned Shares
~~Fiscal 2016 and fiscal 2015 LTI program performance share awards (all NEOs)~~		-Death or disability		-Deemed earned on a ~~pro-rata~~pro rata basis (number of days employed through termination / total number of days in performance period) based on the level of performance achieved as of the termination date(as determined as of the last completed fiscal quarter or fiscal year, depending on the performance metric)
	-Involuntary termination without Cause -Qualified retirement		-Deemed earned on a ~~pro-rata~~pro rata basis (number of days employed through termination / total number of days in performance period) based on the level of performance achieved as of the end of the performance period
	~~-Qualified retirement~~
	-Change-of-control		-Deemed earned based on the level of performance achieved or at target, whichever is greater, as of the date of the ~~change-of-control.~~change-of-control (as determined as of the last completed fiscal quarter or fiscal year, depending on the performance metric). Issuance of earned shares is subject to the ~~NEO's~~NEO’s continued employment through the end of the performance period
	-Termination following a change-of-control due to: death or disability, or involuntary termination without Cause or qualified retirement		-A ~~pro-rata~~pro rata portion (determined by number of days employed through termination / total number of days in performance period) of those shares deemed earned as of the date of the change-of-control are issued to the NEO

~~Fiscal 2014 LTI program performance share awards (all NEOs)~~

~~-Death or disability~~

~~-Deemed earned~~2022 Proxy Statement

TABLE OF CONTENTS

The table below provides, for the specified NEOs, as of the end of fiscal 2022, the value of their outstanding performance share awards (as detailed in the Outstanding Equity Awards at Fiscal Year End section), under the situations discussed above, with the exception of qualified retirement, which does not currently apply to any of our NEOs. All values below were calculated using the closing price of our common stock as quoted on the NYSE on January 28, 2022, the last business day in fiscal 2022, and assume the same vesting percentage (50%, 100% or 150%) as reflected in the Outstanding Equity Awards at Fiscal Year End section.

Name	Death or Disability	Involuntary Termination without Cause	Change-of-Control⁽¹⁾
Ms. Barry	$17,307,636	$17,307,636	$23,933,761
Mr. Bilunas	3,048,832	3,048,832	4,506,330
Mr. Bonfig	1,015,595	1,015,595	1,383,461
Mr. Harmon	752,003	752,003	1,055,049
Ms. Scarlett	2,452,859	2,452,859	3,476,130

(1)	Reflects value realizable upon a ~~pro-rata basis (number of days employed through termination / total number of days in performance period) based on~~change-of-control event, but assumes that the ~~level of performance achieved as of~~NEO will stay with the ~~termination date~~
	~~-Involuntary termination without Cause~~
	~~-Voluntary termination for Good Reason~~
	~~-Change-of-control~~	-Deemed earned based on the level of performance achieved or at target, whichever is greater, as of the date of the change-of-control. Issuance of earned shares is subject to the NEO's continued employmentCompany through the end of the performance period
	~~-Termination following a change-of-control due to: death, disability, involuntary termination without Cause or voluntary termination for Good Reason~~	~~-A pro-rata portion (determined by number~~ of ~~days employed through termination / total number of days in~~each outstanding performance ~~period) of those shares deemed earned as of the date of the change-of-control are issued to the NEO~~share award.

Restrictive Covenants. As further described in theCompensation Discussion and Analysis – Executive Compensation Elements – Other Compensation – Clawback and Restrictive Covenant Provisions,section, our executive officer ~~long-term incentive~~separation agreements and LTI award agreements generally include confidentiality, non-compete, ~~non-solicitation~~ and ~~in select situations, non-disparagement~~non-solicitation provisions as generally described below:

Confidentiality. Award recipients agree to maintain the confidentiality of Best Buy’s “confidential information” and to use such information for the exclusive benefit of Best Buy. This obligation has the appropriate application to the post-termination period.

Non-Compete. Award recipients agree not to engage in “competitive activity” for a period of one year following the ~~earlier~~later of termination of employment for any reason, or the last scheduled award vesting date.

Non-Solicitation. Award recipients agree not to solicit Company employees for employment or parties with which we do business from engaging such business for a period of one year following the ~~earlier~~later of termination of employment for any reason, or the last scheduled award vesting date.

~~Non-Disparagement.~~ ~~A non-disparagement provision is includedin specific circumstances.~~

Upon violation of a restrictive covenant, unexercised options and unvested shares related to the respective award agreement under which they were issued ~~are canceled~~may be cancelled and forfeited, and likewise, the Company may require that the related issued shares (or their fair market value, as measured on the option exercise date or share vesting date) must be returned to the Company. Additionally, the Company may seek injunctive or other appropriate equitable relief.

~~Quantitative Disclosure~~. The tables below provide for each NEO, as of the end of fiscal 2016, the potential severance amount and the value of their unvested stock options (if in-the-money) and restricted share awards (as detailed in the ~~Outstanding Equity Awards at Fiscal Year-End~~ ~~section~~) under the various scenarios discussed above, excluding retirement (as none of our NEOs meet the age and service requirements for qualified retirement under our agreements) and voluntary termination without Good Reason and involuntary termination for Cause (as none of our NEOs qualify for any payments under these scenarios).

~~Equity award values used in the following tables were calculated using the closing price of our common stock as quoted on the NYSE on January 29, 2016, the last business day in fiscal 2016.~~

~~Voluntary Termination for Good Reason~~

Name Cash Payments
Performance Share Awards⁽¹⁾
Total
Mr. Joly $ 2,406,970
⁽²⁾
$ 7,346,959
$ 9,753,929
Ms. McCollam 4,625,000
⁽³⁾
2,267,081
6,892,081
Ms. Ballard —
671,718
671,718
Mr. Mohan —
559,759
559,759
Mr. Nelsen —
727,697
727,697

~~(1)~~

Performance share awards granted in fiscal 2014 vest on a pro-rata basis to the extent that the performance goals have been attained through the termination date if the NEO terminates their employment voluntarily for Good Reason. If the Compensation Committee deems that performance goals have been achieved and has determined the number of shares earned, the actual number of shares that would vest is calculated based on the number of days the NEO was employed through termination over the total number of days in the performance period. The values in this column were calculated using an estimated vesting percentage of 144% which is based on performance trends for the fiscal 2014 performance share awards as of the end of fiscal 2016.


~~(2)~~	The amount reflects a severance payment pursuant to Mr. Joly's employment agreement, equal to 24 months of base salary and 150% of the cost of 24 months of COBRA health coverage and group life insurance based on the cost of coverage in place at the time of termination.


~~(3)~~	~~The amount reflects a severance payment pursuant to Ms. McCollam's employment agreement, equal to 24 months of base salary plus two times her target STI bonus payment (150% of base salary).~~

~~Involuntary Termination without Cause~~

Name Cash Payments
Performance Share Awards⁽¹⁾
Total
Mr. Joly $ 2,406,970
⁽²⁾
$ 9,167,038
$ 11,574,008
Ms. McCollam 4,625,000
⁽³⁾
2,828,700
7,453,700
Ms. Ballard —
⁽⁴⁾
838,121
838,121
Mr. Mohan —
⁽⁴⁾
802,437
802,437
Mr. Nelsen —
⁽⁴⁾
907,965
907,965

~~(1)~~

All outstanding performance share awards vest on a pro-rata basis to the extent that the performance goals have been attained through either the termination date or the end of the performance period (depending on the award) if the NEO is terminated involuntarily without Cause. If the Compensation Committee deems that performance goals have been achieved and has determined the number of shares earned, the actual number of shares that would vest is calculated based on the number of days the NEO was employed through termination over the total number of days in the performance period.

~~The values in this column were calculated using an estimated vesting percentage based on performance trends for each outstanding performance share award as of the end of fiscal 2016, as follows:~~

~~Fiscal Year of~~

~~Performance Share Award~~

~~Performance Period~~

~~Estimated vesting percentage~~

~~as of January 30, 2016~~

~~Fiscal 2016~~

~~March 1, 2015 - February 28, 2018~~

—

~~Fiscal 2015~~

~~August 1, 2014 - July 31, 2017~~

~~Fiscal 2014~~

~~April 1, 2013 - March 31, 2016~~

~~144~~

2022 Proxy Statement


~~(2)~~	The amount reflects a severance payment pursuant to Mr. Joly's employment agreement and includes 24 months of base salary and 150% of the cost of 24 months of COBRA health coverage and group life insurance based on the cost of coverage in place at the time of termination.


~~(3)~~	~~The amount reflects a severance payment pursuant to Ms. McCollam's employment agreement, equal to 24 months of base salary plus two times her target STI bonus payment (150% of base salary).~~

~~(4)~~

~~Pursuant to our Severance Plan, these NEOs are eligible for cash severance, as detailed above under the heading~~ ~~Cash payments~~, if they are involuntarily terminated as a result of job elimination, reduction in force or business restructuring (or other circumstances at our discretion). Since the applicability of the Severance Plan is more narrow than is implied by the table name "Involuntary Termination without Cause", the severance payments the NEOs are eligible for under those limited circumstances (Ms. Ballard: $1,628,619; Mr. Mohan: $1,644,852; and Mr. Nelsen: $1,353,802) are not included in the table.

~~Change-of-Control~~⁽¹⁾

Name Cash Payments
Stock Options⁽²⁾
Time-Based Restricted Shares
Performance-Share Awards⁽³⁾
Total
Mr. Joly $ 10,921,020
⁽⁴⁾
$ 356,344
$ —
$ 15,255,321
$ 26,532,685
Ms. McCollam 6,911,967
⁽⁴⁾
274,894
—
4,690,052
11,876,913
Ms. Ballard —
95,513
11,647
⁽⁵⁾
1,974,116
2,081,276
Mr. Mohan —

416,167
—
1,589,435
2,005,602
Mr. Nelsen —

97,030
6,033
⁽⁵⁾
1,547,193
1,650,256

~~(1)~~

This table reflects the specific instances where our employment and award agreements have provisions related to change-of-control, some of which apply upon the change-of-control itself and some of which apply upon termination following the change-of-control. As such, the totals reflected are not necessarily indicative of the actual value that each NEO would realize upon a change-of-control or upon termination following a change-of-control. Additionally, if an NEO is terminated following a change-of-control, the NEO would potentially realize additional value not reflected here depending on the nature of the termination, as detailed in the other tables within this section.


~~(2)~~	~~All unvested stock options granted to our NEOs fully vest upon involuntary termination without Cause or voluntary termination for Good Reason within 12 months following a change-of-control.~~

~~(3)~~

All outstanding performance share awards are deemed earned upon a change-of-control based on the level of actual performance achieved as of the date of the change-of-control or at target, whichever is greater. Issuance of the earned shares is subject to the NEO's continued employment through the end of the performance period for each award. If the NEO's employment were to be terminated following the change-of-control, but prior to the end of the performance period, a pro-rata portion of the shares deemed earned would potentially be issued to the NEO depending on the type of termination (as described earlier in this section under the heading ~~Performance share awards~~).

The values in this column were calculated using the greater of the actual estimated vesting percentage based on performance trends for each outstanding performance share award as of the end of fiscal 2016 or target (100%), as follows:



~~Fiscal Year of~~ ~~Performance Share Award~~	~~Performance Period~~	~~Estimated vesting percentage~~ ~~as of January 30, 2016 or~~ ~~Target (100%)~~
~~Fiscal 2016~~	~~March 1, 2015 - February 28, 2018~~	~~100%~~
~~Fiscal 2015~~	~~August 1, 2014 - July 31, 2017~~	~~100%~~
~~Fiscal 2014~~	~~April 1, 2013 - March 31, 2016~~	~~144%~~

~~(4)~~

The amounts reflect cash severance payments pursuant to Mr. Joly and Ms. McCollam's employment agreements. In the event Mr. Joly or Ms. McCollam voluntarily terminate their employment for Good Reason or are involuntarily terminated without Cause in anticipation of or within 12 months following a change-of-control, they are entitled to an enhanced severance offering of: (i) two times the sum of base salary plus target annual bonus; (ii) a pro-rata annual bonus for the fiscal year in which such termination occurs based on actual performance (for fiscal 2016 payouts, see ~~Compensation Discussion and Analysis – Executive Compensation Elements – Short-Term Incentive) and (iii) 150% of the cost of 24 months of COBRA health coverage and group life insurance based on the cost of coverage in place at the time of termination.~~


~~(5)~~	The amounts represent the unvested portions of the time-based restricted shares granted under our fiscal 2012 LTI program which become non-forfeitable upon involuntary termination without Cause or voluntary termination for Good Reason within 12 months following a change-of-control.

~~Death or Disability~~

Name
Stock Options⁽¹⁾
Time-Based Restricted Shares
Performance Share Awards⁽²⁾
Total
Mr. Joly $ 356,344
$ 3,874,729
⁽³⁾
$ 9,167,038
$ 13,398,111
Ms. McCollam 274,894
1,973,925
⁽³⁾
2,828,700
5,077,519
Ms. Ballard 95,513
1,231,378
⁽⁴⁾
838,121
2,165,012
Mr. Mohan 416,167
1,155,073
⁽³⁾
802,437
2,373,677
Mr. Nelsen 97,030
685,011
⁽⁴⁾
907,965
1,690,006


~~(1)~~	~~All outstanding unvested stock options fully vest upon death or disability.~~

~~(2)~~

All outstanding performance share awards vest on a pro-rata basis to the extent that the performance goals have been attained through the date of the NEO's death or termination due to disability. If the Compensation Committee deems that performance goals have been achieved and has determined the number of shares earned, the actual number of shares that would vest is calculated based on the number of days the NEO was employed through termination over the total number of days in the performance period.

~~The values in this column were calculated using an estimated vesting percentage based on performance trends for each outstanding performance share award as of the end of fiscal 2016, as follows:~~



~~Fiscal Year of~~ ~~Performance Share Award~~	~~Performance Period~~	~~Estimated vesting percentage~~ ~~as of January 30, 2016~~
~~Fiscal 2016~~	~~March 1, 2015 - February 28, 2018~~	—	%
~~Fiscal 2015~~	~~August 1, 2014 - July 31, 2017~~	87	%
~~Fiscal 2014~~	~~April 1, 2013 - March 31, 2016~~	~~144~~	%


~~(3)~~	~~The amounts represent unvested time-based restricted shares granted under our fiscal 2016 and fiscal 2015 LTI programs, which fully vest upon death or disability.~~


~~(4)~~	The amounts represent the unvested time-based restricted shares granted under our fiscal 2016 and fiscal 2015 LTI programs, which fully vest upon death or disability and unvested time-based restricted shares granted under our fiscal 2012 LTI program, which would become non-forfeitable upon death or disability.

TABLE OF CONTENTS

Director Compensation

Overview

Each year, the Compensation Committee reviews the total compensation paid to non-management directors. The purpose of the review is to ensure that the level of compensation is appropriate to attract and retain a diverse group of directors with the breadth of experience necessary to perform the ~~Board's~~Board’s duties, and to fairly compensate directors for their service. As part of their analysis, the Compensation Committee considers the total value of the compensation as compared with director compensation at other Fortune 100 companies and our peer group of companies, which is described in Compensation

Discussion and Analysis — Factors in Decision-Making. In March ~~2015,~~2021, the Compensation Committee and Board reviewed and approved the fiscal ~~2016~~2022 compensation for non-management directors, including the value and terms of the equity compensation component, as ~~detailed~~described in more detail below.

Cash Compensation

The fiscal ~~2016~~2022 cash compensation for our non-management directors consisted of the following annual retainers:

Annual Amount
Annual retainer $ 80,000
Lead independent director stipend* 25,000
Annual committee chair retainer - Audit 25,000
Annual committee chair retainer - Compensation & Human Resources 20,000
Annual committee chair retainer - Nominating 15,000
Annual committee chair retainer - Finance and Investment Policy 10,000

*Approved at the June 2015 Compensation Committee meeting.

				Annual Amount
	Annual retainer			$100,000
	Non-executive chair retainer			65,000⁽¹⁾
	Annual committee chair retainer - Audit			25,000
	Annual committee chair retainer - Compensation & Human Resources			20,000
	Annual committee chair retainer - Nominating, Corporate Governance and Public Policy			20,000
	Annual committee chair retainer - Finance and Investment Policy			20,000⁽²⁾

(1)	The Compensation Committee and Board approved an additional $200,000 in compensation for the non-executive chair, one-third of which is in the form of a cash stipend (as reflected here) and two-thirds of which is in the form of equity (as discussed below).

(2)	Increased from $15,000.

All annual retainers are paid in quarterly installments and annual retainers for non-management directors who serve on the Board or as chair of a committee for only a portion of a fiscal year are prorated. ~~All annual retainers are paid in quarterly installments.~~

Equity Compensation

On June ~~8, 2015,~~15, 2021, the Compensation Committee approved an annual equity award ~~with a value of $185,000~~ for ~~all~~each of the then-serving non-management directors in the form of restricted stock units. The awards each had a value of $195,000, which translated into ~~5,398~~1,775 restricted stock units. The Compensation Committee also approved an additional equity award for the non-executive chairman having a value of $135,000, which translated into 1,228 restricted stock units. The restricted stock units are entitled to dividend equivalents, which are subject to the same restrictions and vesting criteria as the underlying units. All restricted stock units granted to our directors fully vest one year from the grant date ~~of grant~~ and must be held until the director leaves the Board. Director equity awards are prorated through a director’s termination date if a director leaves the Board before the restricted stock units have vested, unless the director is terminated for Cause, in which case all unvested restricted stock units are forfeited.

The Compensation Committee also considers prorated ~~annual~~ equity awards for new directors who are appointed to the Board between each annual ~~grant in June.~~grant. As such, the Compensation Committee approved prorated equity awards for new directors, ~~Karen L. McLoughlin (3,606~~Mr. Marte (906 restricted stock units) and ~~Claudia F. Munce (1,383~~Mr. Rendle (430 restricted stock units) in ~~September 2015 and~~ March ~~2016, respectively. Since Ms. McLoughlin was appointed to the Board during fiscal 2016, additional detail regarding her fiscal 2016 compensation can be found below in the~~ ~~Director Compensation Table.~~2021.

2022 Proxy Statement

~~Preview of Fiscal 2017 Director Compensation~~

On March 16, 2016, the Compensation Committee reviewed the cash and equity compensation of our non-management directors for fiscal 2017 and approved the following compensation adjustments in order to align our directors' pay with current market practice.

Fiscal 2016 Amount
Change for Fiscal 2017
Annual retainer $ 80,000
Increase by $5,000
Lead independent director stipend 25,000
No change
Annual committee chair retainer - Audit 25,000
No change
Annual committee chair retainer - Compensation & Human Resources 20,000
No change
Annual committee chair retainer - Nominating 15,000
No change
Annual committee chair retainer - Finance and Investment Policy 10,000
No change
Annual equity award 185,000
Increase by $5,000

TABLE OF CONTENTS

Director Compensation Table

The following table summarizes the compensation earned during fiscal ~~2016~~2022 by our non-management directors:

Name⁽¹⁾

Fees Earned or
Paid In Cash

Stock
Awards⁽²⁾

Option
Awards⁽³⁾

All Other Compensation⁽⁴⁾

Total
Bradbury H. Anderson* $ 80,000
$ 180,293
$ —
$ —
$ 260,293
Lisa M. Caputo 80,000
180,293
—
—
260,293
J. Patrick Doyle 80,000
180,293
—
—
260,293
Russell P. Fradin⁽⁵⁾
116,209
180,293
—
—
296,502
Kathy J. Higgins Victor⁽⁶⁾
95,000
180,293
—
—
275,293
David W. Kenny⁽⁷⁾
96,209
180,293
—
—
276,502
Sanjay Khosla⁽⁸⁾
28,352
—
—
8,541
36,893
Allen U. Lenzmeier⁽⁹⁾
28,352
—
—
8,541
36,893
Karen L. McLoughlin⁽¹⁰⁾
30,549
128,770
159,319
Thomas L. Millner 80,000
180,293
—
—
260,293
Hatim A. Tyabji⁽¹¹⁾
65,563
—
—
17,083
82,646
Gérard R. Vittecoq⁽¹²⁾
90,000
180,293
—
—
270,293

*Indicates a director who is not standing for re-election at the Meeting.

Name⁽¹⁾	Fees Earned or Paid In Cash	Stock Awards⁽²⁾	Option Awards⁽³⁾	Total
Lisa M. Caputo⁽⁴⁾	$120,000	$195,073	$—	$315,073
J. Patrick Doyle⁽⁵⁾	165,000	330,030	—	495,030
David W. Kenny⁽⁶⁾	120,000	195,073	—	315,073
Mario J. Marte	100,000	302,153	—	402,153
Karen L. McLoughlin⁽⁷⁾	120,000	195,073	—	315,073
Thomas L. Millner⁽⁸⁾	125,000	195,073	—	320,073
Claudia F. Munce	100,000	195,073	—	295,073
Richelle P. Parham	100,000	195,073	—	295,073
Steven E. Rendle⁽⁹⁾	87,363	245,894	—	333,257
Eugene A. Woods	100,000	195,073	—	295,073

(1)
~~(1)~~	~~Mr. Joly,~~Ms. Barry, our only management director during fiscal ~~2016,~~2022, did not receive any compensation for ~~his service~~serving as a director.

(2)

The amounts in this column reflect the aggregate grant date fair value for restricted stock units granted to our non-management directors during fiscal ~~2016,~~2022, measured in accordance with ASC Topic ~~718.~~718, including annual awards and the prorated new director awards that are described above the table. As of January ~~30, 2016,~~29, 2022, our non-management directors held outstanding stock units including both unvested restricted stock units and restricted stock units that have vested, but that are subject to a holding requirement until the director leaves the board ("(“deferred ~~units"~~units”) as follows: ~~Mr. Anderson~~Ms. Caputo — ~~5,398~~1,799 unvested units and ~~12,368 deferred units; Ms. Caputo — 5,398 unvested units and 12,638~~36,461 deferred units; Mr. Doyle — ~~5,398~~3,044 unvested units and ~~2,990 deferred units; Mr. Fradin — 5,398 unvested units and 12,368 deferred units; Ms. Higgins Victor — 5,398 unvested units and 12,368~~28,905 deferred units; Mr. Kenny — ~~5,398~~1,799 unvested units and ~~8,345~~32,438 deferred units; ~~Ms. McLoughlin — 3,606~~Mr. Marte – 2,725 unvested units and 0 deferred units; Ms. McLoughlin — 1,799 unvested units and 22,301 deferred units; Mr. Millner — ~~5,398~~1,799 unvested units and ~~6,832~~30,925 deferred units; ~~Mr. Vittecoq~~Ms. Munce — ~~5,398~~1,799 unvested units and ~~12,368~~20,078 deferred units; Ms. Parham — 1,799 unvested units and 8,767 deferred units; and Mr. Woods — 1,799 unvested units and 7,747 deferred units.

(3)

We did not grant stock option awards to our non-management directors in fiscal ~~2016.~~2021. As of January ~~30, 2016,~~29, 2022, none of our non-management directors held outstanding stock options as follows: Mr. Anderson — 0 stock options; Ms. Caputo — 12,500 stock options; Mr. Doyle — 0 stock options; Mr. Fradin — 0 stock options; Ms. Higgins Victor — 40,000 stock options; Mr. Kenny — 0 stock options; Ms. McLoughlin — 0 stock options; Mr. Millner — 0 stock options; Mr. Vittecoq — 21,250 stock options.

(4)

Pursuant to the terms of the restricted stock units granted to our non-management directors on June 19, 2013, directors are entitled to an accrual of dividend equivalents from the vesting date (June 19, 2014) through the date the restricted stock units are issued to the director as shares (upon departure from the Board). Dividend equivalent accruals are to be settled in cash at the time the shares are delivered to the departing director. The amounts in this column reflect the dividend equivalent payments received by directors who retired during fiscal 2016.


~~(5)~~	~~Mr. Fradin became Lead Independent Director on June 9, 2015. Mr. Fradin is also chair of the Compensation Committee.~~


~~(6)~~	Ms. ~~Higgins Victor~~Caputo is chair of the Nominating Committee.

(5)	Mr. Doyle serves as our Lead Independent Director.

~~(7)~~(6)

Mr. Kenny ~~became~~is chair of the ~~Audit Committee on June 9, 2015.~~Compensation Committee.


~~(8)~~	~~Mr. Khosla retired from the Board on June 9, 2015.~~

(7)


~~(9)~~	~~Mr. Lenzmeier retired from the Board on June 9, 2015.~~


~~(10)~~	Ms. McLoughlin ~~joined the Board on September 14, 2015.~~


~~(11)~~	~~Mr. Tyabji retired from the Board on June 9, 2015. Prior to retiring, Mr. Tyabji served as Chairman of the Board and chair of the Audit Committee.~~


~~(12)~~	~~Mr. Vittecoq~~ is chair of the Finance and Investment Policy Committee.

(8)	Mr. Millner is chair of the Audit Committee.

(9)	Mr. Rendle was appointed to the Board effective March 18, 2021.

Director Stock Ownership Guidelines

The Compensation Committee has established stock ownership guidelines requiring our non-management directors to own, indirectly or directly, 10,000 shares. ~~We expect~~Historically, we have expected that, until the ownership target is met, directors ~~will retain: (i)~~would retain 50% of ~~the net proceeds received from the exercise of a stock option in the form of Best Buy common stock; and (ii) 50% of shares~~their granted equity (net of taxes) issued in connection with the lapse of restrictions on restricted share awards. The ownership target does not need to be met within a certain timeframe and our directors are considered in compliance with the guidelines as long as progress towards the ownership target is being made, consistent with the expectations noted above.. In further support of director stock

ownership, ~~equity grants awarded to directors since~~we began in fiscal 2014 ~~have~~granting director equity subject to a holding requirement ~~through~~for the ~~conclusion~~duration of ~~each director's~~a director’s service on ~~our~~the Board. In fiscal ~~2016,~~2022, all of our non-management directors were in compliance with the ownership guidelines, either by meeting the ownership target or by making progress towards the ownership target.

Our stock ownership guidelines for executive officers are discussed in the Compensation Discussion and Analysis — Executive Compensation Elements — Other Compensation section.

Deferred Compensation Plan

Each calendar year, we offer our directors the opportunity to defer up to 100% of their annual and committee chair retainers under the Deferred Compensation Plan which is described in the section Compensation of Executive Officers — Nonqualified Deferred Compensation. No Company contributions or matching contributions are made for the benefit of directors under the Deferred Compensation Plan.

Other Benefits

We reimburse all directors for travel and other necessary business expenses incurred in performance of their services for us. In addition, all directors are covered under a ~~directors'~~directors’ and ~~officers'~~officers’ indemnity insurance policy.

2022 Proxy Statement

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Equity Compensation Plan Information

The following table provides information about shares of our common stock that may be issued under our equity compensation plans as of January 29, 2022:

Plan Category	Securities to Be Issued Upon Exercise of Outstanding Options and Rights⁽¹⁾	Weighted Average Exercise Price per Share of Outstanding Options and Rights⁽²⁾	Securities Available for Future Issuance Under Equity Compensation Plans⁽³⁾
Equity compensation plans approved by security holders	3,554,273	$57.83	25,928,855
Equity compensation plans not approved by security holders	—	—	—
Total	3,554,273	57.83	25,928,855

(1)	Includes grants of stock options and restricted stock units (which may be market-based, performance-based or time-based) awarded under our Best Buy Co., Inc. 2020 Omnibus Incentive Plan.

(2)	Includes weighted-average exercise price of outstanding stock options only.

(3)	Excludes securities to be issued upon exercise of outstanding options and rights. Includes 3,624,848 shares of our common stock which have been reserved for issuance under our 2008 and 2003 Employee Stock Purchase Plans.

CEO Pay Ratio

~~ITEM OF BUSINESS NO. 3 — ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION~~

~~As required by the Dodd-Frank Wall Street Reform and Consumer Protection Act and Section 14A of the Securities Exchange Act of 1934, as amended,~~Pursuant to SEC rules, we are providing ~~our shareholders with an opportunity to cast an advisory vote, a "Say on Pay," regarding~~ the ~~fiscal 2016~~following information about the ratio of the annual total compensation of our ~~NEOs,~~median employee to the annual total compensation of Ms. Barry, our CEO. Due to the flexibility afforded by the rules of the SEC in calculating the pay ratio amount, the ratio we calculated may not be comparable to the CEO pay ratio presented by other companies.

In fiscal 2022, our last completed fiscal year, Ms. Barry’s annual total compensation was $15,631,157 as ~~described~~reflected in the Compensation of Executive ~~and Director~~Officers — Summary Compensation Table section of this proxy statement.

Our median employee’s annual total compensation for fiscal 2022 was $29,999. As a result, we estimate that Ms. Barry’s annual total compensation was approximately 521 times that of our median employee.

In ~~June 2011,~~determining the median employee:

We prepared a list of all Best Buy employees as of January 29, 2022. As of January 29, 2022, we had approximately 105,320 employees, including 94,790 U.S. employees, and 10,530 non-U.S. employees. In identifying our median employee, we included our approximately 10,370 Canadian employees, but, in ~~consideration~~accordance with SEC rules, we excluded our employees in China and Mexico, where we had about 150 employees and 10 employees, respectively, representing approximately 0.15% in the aggregate of our worldwide workforce. After excluding employees in these countries, as of January 29, 2022, we had 105,160 employees.

As permitted under SEC rules, we excluded employees from the ~~results~~companies we acquired during fiscal 2022, which included Current Health Limited and Two Peaks, LLC. As of January 29, 2022, there were approximately 210 employees working for the ~~fiscal 2011 advisory vote on~~acquired companies.

As permitted under SEC rules, we used compensation that would equate to W-2 wages for the ~~frequency~~prior twelve months as our consistently applied compensation measure, which we believe provides a reasonable estimate of ~~"Say on Pay" votes,~~annual compensation for our employees. We annualized W-2 wages for employees, other than occasional/seasonal employees, who were not employed for the ~~Board determined to hold such votes on an annual basis until~~full twelve months. The median amount was then identified from the ~~next vote on the frequency of "Say on Pay" votes. Accordingly, the next "Say on Pay" vote will be held at the Company's 2016 Meeting.~~annualized list.

2022 Proxy Statement

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~~Information about the Advisory Vote to Approve Named Executive Officer Compensation~~

~~The Compensation Committee establishes, recommends and governs all of the compensation and benefits policies and actions for the Company's NEOs, as defined in the~~ ~~Introduction~~ ~~to the~~ ~~Executive and Director Compensation — Compensation Discussion and Analysis~~ section of this proxy statement. While the advisory vote to approve NEO compensation is not binding on us, it will provide useful information to our Board and the Compensation Committee regarding our shareholders' views of our executive compensation philosophy, policies and practices. The Compensation Committee values our shareholders' opinions and will take the results of the vote into consideration when determining the future compensation arrangements for our NEOs. To the extent there are significant negative "Say on Pay" advisory votes, we plan to consult directly with shareholders to better understand the concerns that influenced the vote and consider constructive feedback in making future decisions about our executive compensation program.

As detailed in our CD&A, we believe our fiscal 2016 executive compensation program reflects market appropriate practices and balances risk and reward in relation to our overall business strategy and ongoing business transformation. Our executive compensation program is focused on pay-for-performance and seeks to mitigate risks related to compensation in order to further align management's interests with shareholders' interests in long-term value creation.

~~Accordingly, we ask that our shareholders cast an advisory vote to approve the following resolution:~~

~~RESOLVED, that the shareholders of the Company approve, on an advisory basis, the compensation of the named executive officers for the fiscal year ended January 30, 2016, as described in the~~ ~~Executive and Director Compensation — Compensation Discussion and Analysis~~ section and the compensation tables and related material disclosed in the Company's proxy statement for its 2016 Regular Meeting of Shareholders pursuant to the compensation disclosure rules of the Securities and Exchange Commission.

~~Board Voting Recommendation~~

~~Our Board recommends an advisory vote~~ ~~FOR~~ ~~approval of the fiscal 2016 compensation of our NEOs as disclosed in this proxy statement pursuant to the SEC's compensation disclosure rules.~~

The affirmative vote of at least a majority of the voting power of the shares present, in person or by proxy, and entitled to vote (excluding broker non-votes) is required for advisory approval of our NEO compensation.

~~IT IS INTENDED THAT, UNLESS OTHERWISE INSTRUCTED, THE SHARES REPRESENTED BY PROXY (OTHER THAN BROKER NON-VOTES) WILL BE VOTED "FOR" THE ADVISORY VOTE ON EXECUTIVE COMPENSATION.~~

OTHER BUSINESS

Management and the Board are not aware of any other item of business that will be addressed at the Meeting. If an item properly comes up for vote at the Meeting, or at any postponement or adjournment of the Meeting, that is not described in the Meeting Notice, including adjournment of the Meeting and any other matters incident to the conduct of the Meeting, the Proxy Agents will vote the shares subject to your proxy in their discretion. Discretionary authority for them to do so is contained in the proxy.

PROPOSALS FOR THE NEXT REGULAR MEETING OF SHAREHOLDERS

Any shareholder proposal intended to be presented for consideration at our ~~2017~~2023 Regular Meeting of Shareholders and to be included in our proxy statement for that meeting must be received by our Secretary no later than ~~January 3, 2017,~~December 28, 2022, at our principal executive office, addressed as follows:

Mr. ~~Keith J. Nelsen~~Todd G. Hartman

General Counsel, Chief Risk Officer and Secretary

Best Buy Co., Inc.

7601 Penn Avenue South

Richfield, Minnesota 55423

~~In accordance~~Our By-laws establish advance notice procedures with ~~our By-laws,~~respect to shareholder proposals and the nomination of candidates for election as directors and the proposal of any ~~shareholder proposal, including any director nominations, received and~~business not intended to be ~~presented for consideration at our 2017 Regular Meeting of Shareholders, though not~~ included in ~~our~~the Company’s proxy statement, other than nominations made by or at the direction of the Board of Directors or a committee of the Board of Directors. In order for ~~that~~any matter to be “properly brought” before a meeting, a shareholder must comply with advance notice requirements and provide us with certain information. Generally, to be timely, a shareholder’s notice must be received byat our ~~Secretary at the address set forth above no~~principal executive offices not less than 120 days nor more than 150 days ~~and no less than 120 days before~~prior to the anniversary of the ~~prior year's regular~~immediately preceding annual meeting of shareholders. Accordingly, such proposals will be considered untimely if received before January ~~15, 2017,~~10, 2023, or after February ~~14, 2017.~~9, 2023. Any such shareholder proposal must also comply with the procedural requirements of our By-laws. The advance notice requirement in our By-laws supersedes the notice period in Rule 14a-4(c)(1) of the Securities Exchange Act of 1934 regarding discretionary proxy voting authority with respect to shareholder business. In addition to satisfying the foregoing requirements under our By-laws, to comply with the universal proxy rules (once effective), shareholders who intend to solicit proxies in support of director nominees other than the Company’s nominees must provide notice that sets forth the information required by Rule 14a-19 under the Exchange Act no later than April 10, 2023.

By Order of the Board of Directors

Todd G. Hartman

Secretary

April 27, 2022




	~~By Order of the Board of Directors~~

	~~Keith J. Nelsen~~
~~May 3, 2016~~	~~Secretary~~	77	2022 Proxy Statement

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Reconciliations of Non-GAAP Financial Measures

~~Forward-Looking~~Reconciliations of operating income and ~~Cautionary Statements~~diluted earnings per share (“EPS”) (GAAP financial measures) to non-GAAP operating income and non-GAAP diluted EPS (non-GAAP financial measures) were as follows ($ in millions, except per share amounts):

	Fiscal Year
	2022	2021
Operating income	$3,039	$2,391
% of revenue	5.9%	5.1%
Restructuring - inventory markdowns⁽¹⁾	(6)	23
Price-fixing settlement⁽²⁾	—	(21)
Restructuring charges⁽³⁾	(34)	254
Intangible asset amortization⁽⁴⁾	82	80
Acquisition-related transaction costs⁽⁴⁾	11	—
Non-GAAP operating income	$3,092	$2,727
% of revenue	6.0%	5.8%

Diluted EPS	$9.84	$6.84
Restructuring - inventory markdowns⁽¹⁾	(0.02)	0.09
Price-fixing settlement⁽²⁾	—	(0.08)
Restructuring charges⁽³⁾	(0.14)	0.97
Intangible asset amortization⁽⁴⁾	0.33	0.30
Acquisition-related transaction costs⁽⁴⁾	0.04	—
Gain on investments, net⁽⁵⁾	—	(0.05)
Income tax impact of non-GAAP adjustments⁽⁶⁾	(0.04)	(0.16)
Non-GAAP diluted EPS	$10.01	$7.91

~~This proxy material contains forward-looking statements within~~For additional information regarding the ~~meaning~~nature of charges discussed below, refer to Note 2, Acquisitions; Note 3, Restructuring; Note 4, Goodwill and Intangible Assets; and Note 11, Income Taxes, of the ~~Private Securities Litigation Reform Act~~Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management’s current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as “anticipate,” “believe," "assume,” “estimate,” “expect,” “intend,” “project,” “guidance,” “plan,” “outlook,” and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: macro-economic conditions (including fluctuations in housing prices, oil markets and jobless rates), conditions in the industries and categories in which we operate, changes in consumer preferences, changes in consumer confidence, consumer spending and debt levels, online sales levels and trends, average ticket size, the mix of products and services offered for sale in our physical stores and online, credit market changes and constraints, product availability, competitive initiatives of competitors (including pricing actions and promotional activities of competitors), strategic and business decisions of our vendors (including actions that could impact promotional support, product margin and/or supply), the success of new product launches, the impact of pricing investments and promotional activity, weather, natural or man-made disasters, attacks on our data systems, the company’s ability to prevent or react to a disaster recovery situation, changes in law or regulations, changes in tax rates, changes in taxable income in each jurisdiction, tax audit developments and resolution of other discrete tax matters, foreign currency fluctuation, availability of suitable real estate locations, the company’s ability to manage its property portfolio, the impact of labor markets, the company’s ability to retain qualified employees, failure to achieve anticipated expense and cost reductions from operational and restructuring changes, disruptions in our supply chain, the costs of procuring goods the company sells, failure to achieve anticipated revenue and profitability increases from operational and restructuring changes (including investments in our multi-channel capabilities and brand consolidations), inability to secure or maintain favorable vendor terms, failure to accurately predict the duration over which we will incur costs, acquisitions and development of new businesses, divestitures of existing businesses, failure to complete or achieve anticipated benefits of announced transactions, integration challenges relating to new ventures, and our ability to protect information relating to our employees and customers. A further list and description of these risks, uncertainties and other matters can be found in the company’s Annual Report and other reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, Best Buy’s Annual Report on Form 10-K filed with the SEC on March 23, 2016. Best Buy cautions that the foregoing list of important factors is not complete, and any forward-looking statements speak only as of the date they are made, and Best Buy assumes no obligation to update any forward-looking statement that it may make.for fiscal 2022.

(1)	Represents inventory markdowns recorded within cost of sales associated with the decision to exit operations in Mexico.

(2)	Represents a price-fixing litigation settlement received in relation to products purchased and sold in prior fiscal years.

(3)	Represents charges in fiscal 2021 and subsequent adjustments in fiscal 2022 related to actions taken in the Domestic segment to better align the company’s organizational structure with its strategic focus and the decision to exit operations in Mexico in the International segment.

(4)

Represents charges associated with acquisitions, including: (1) the non-cash amortization of definite-lived intangible assets, including customer relationships, tradenames and developed technology; and (2) acquisition-related transaction and due diligence costs, primarily comprised of professional fees.

(5)	Represents an increase in the fair value of a minority investment.

(6)

The non-GAAP adjustments primarily relate to the U.S. and Mexico. As such, the income tax charge is generally calculated using the statutory tax rate of 24.5% for U.S. non-GAAP items for all periods presented. There is no income tax charge for Mexico non-GAAP items and a minimal amount of U.S. non-GAAP items, as there was no tax benefit recognized on these expenses in the calculation of GAAP income tax expense.

2022 Proxy Statement

TABLE OF CONTENTS




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	Time:
~~Time:~~		9:00 a.m., Central Time, on ~~Tuesday,~~Thursday, June ~~14, 2016~~9, 2022
~~Place:~~		~~Best Buy Corporate Campus — Convention Center~~Place:			~~7601 Penn Avenue South~~Online at www.virtualshareholdermeeting.com/BBY2022 ~~Richfield, Minnesota 55423~~
~~Internet:~~		Internet:			Submit pre-meeting questions online by visiting www.proxyvote.com and ~~view the live webcast of~~attend the Regular Meeting of Shareholders online at ~~www.investors.bestbuy.com~~.www.virtualshareholdermeeting.com/BBY2022
	Items of Business:		1.	1.		To elect the ~~ten directors~~eleven director nominees listed herein to serve on our Board of Directors for a term of one year.
	2.			2.		To ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending January 28, ~~2017.~~2023.
		3.		3.		To conduct a non-binding advisory vote to approve our named executive officer compensation.
		4.		4.		To transact such other business as may properly come before the meeting.
	Record Date:			You may vote if you were a shareholder of Best Buy Co., Inc. as of the close of business on Monday, April ~~18, 2016.~~11, 2022.
	Proxy Voting:			Your vote is important. You may vote via proxy as a shareholder of record:
		1.				1.	By visiting www.proxyvote.comon the internet;
		2.				2.	By calling (within the U.S. or Canada) toll-free at 1-800-690-6903; or
		3.		3.		By signing and returning your proxy card if you have received paper materials.



IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE REGULAR MEETING OF SHAREHOLDERS TO BE HELD ON JUNE ~~14, 2016:~~9, 2022:
	This Notice of ~~2016~~2022 Regular Meeting of Shareholders and Proxy Statement and our Annual Report on Form 10-K for the fiscal year ended January ~~30, 2016,~~29, 2022, are available at www.proxyvote.com.
Help us make a difference by eliminating paper proxy mailings to your home or business. As permitted by rules adopted by the U.S. Securities and Exchange Commission ("SEC"), we are furnishing proxy materials to our shareholders primarily via the internet. On or about May 3, 2016, we mailed to our shareholders a Notice of Internet Availability containing instructions on how to access our proxy materials, including our proxy statement and our Annual Report. The Notice of Internet Availability also includes instructions to access your form of proxy to vote via the internet or by telephone. Other shareholders, in accordance with their prior requests, have received e-mail notification of how to access our proxy materials and vote via the internet or have been mailed paper copies of our proxy materials and proxy card.
Internet distribution of our proxy materials is designed to expedite receipt by our shareholders, lower the cost of the Regular Meeting of Shareholders and conserve precious natural resources. However, if you would prefer to receive paper proxy materials, please follow the instructions included in the Notice of Internet Availability. If you have previously elected to receive our proxy materials electronically, you will continue to receive email notification with instructions to access these materials via the internet unless you elect otherwise.



BEST BUY CO., INC.
(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)




		By Order of the Board of Directors

	Richfield, Minnesota		~~Keith J. Nelsen~~	Todd G. Hartman
~~May 3, 2016~~	April 27, 2022			Secretary

	With gratitude for your confidence and support,



	Patrick Doyle, Chairman of the Board



~~GENERAL INFORMATION~~					5
	~~Background~~			5
	~~Voting Procedure~~			6
	~~Proxy Solicitation~~			8
	~~Additional Information~~			9PAGE
PROXY SUMMARY			1
GENERAL INFORMATION			7
Background			7
Voting Procedures			8
Proxy Solicitation			10
Additional Information			11
CORPORATE GOVERNANCE AT BEST BUY			1712
	~~Board and Corporate Governance Highlights~~			17
	Board Leadership			1812
	~~Lead Independent Director~~			18
	Board Composition			1813
	Director Independence			1813
	Board Meetings and Attendance			1914
	Executive Sessions of Independent Directors			1914
	Committees of the Board			2015
	Board Risk Oversight			2117
	Compensation Risk Assessment			2118
	Board Evaluation Process			2218
	CEO Evaluation Process			2219
	Director Orientation and Continuing Education			2219
	Anti-Hedging and Anti-Pledging Policies			2319
	Director Stock Ownership			19
Shareholder Engagement			20
Environment, Social & Governance			20
Public Policy			23
	~~Shareholder Engagement~~			23
	~~Public Policy~~			23
	Communications with the Board			23
	Corporate Governance Website			24
ITEM OF BUSINESS NO. 1 — ELECTION OF DIRECTORS			25
	General Information				25
Director Nomination Process			25
Advance Notice and Proxy Access By-law Provisions			26
Director Qualification Standards			2526
Director Nominees			~~Director Nomination Process~~		2728
	Voting Information			2739
	Board Voting Recommendation			27
	~~Director Nominees~~			2739
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT			3340
DELINQUENT SECTION 16(a) ~~BENEFICIAL OWNERSHIP REPORTING COMPLIANCE~~REPORTS			3541
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS			3542
AUDIT COMMITTEE REPORT			3743
ITEM OF BUSINESS NO. 2 — RATIFICATION OF APPOINTMENT OF OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			3844
	Principal Accountant Services and Fees			3844
Pre-Approval Policy			44
Board Voting Recommendation		39
~~EXECUTIVE AND DIRECTOR COMPENSATION~~				40
	~~Introduction~~			40
	~~Summary of Executive Compensation Practices~~			40
	~~Compensation Discussion and Analysis~~			42



		~~Compensation Philosophy, Objectives and Policies~~		42
		~~Governance~~		43
		~~Factors in Decision-Making~~		44
		~~Executive Compensation Elements~~		45
		~~Compensation and Human Resources Committee Report on Executive Compensation~~		53
	~~Compensation of Executive Officers~~			54
		~~Summary Compensation Table~~		54
		~~Grants of Plan-Based Awards~~		56
		~~Outstanding Equity Awards at Fiscal Year-End~~		57
		~~Option Exercises and Stock Vested~~		58
		~~Nonqualified Deferred Compensation~~		60
		~~Potential Payments Upon Termination or Change-of-Control~~		61
	~~Director Compensation~~			66
ITEM OF BUSINESS NO. 3 — ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION			7046
		Information ~~about~~About the Advisory Vote to Approve Named Executive Officer Compensation				7046
		Board Voting Recommendation			46

			PAGE
EXECUTIVE AND DIRECTOR COMPENSATION			47
Compensation Discussion and Analysis			47
Executive Summary			48
Compensation Philosophy, Objectives and Policies			49
Governance			50
Factors in Decision-Making			51
Executive Compensation Elements			52
Compensation and Human Resources Committee Report on Executive Compensation			61
Compensation and Human Resources Committee Interlocks and Insider Participation			61
Compensation of Executive Officers			62
Summary Compensation Table			62
Grants of Plan-Based Awards			64
Outstanding Equity Awards at Fiscal Year-End			65
Option Exercises and Stock Vested			69
Nonqualified Deferred Compensation			70
Potential Payments Upon Termination or Change-of-Control			70
Director Compensation			74
Equity Compensation Plan Information			76
CEO Pay Ratio			76
OTHER BUSINESS			7177
PROPOSALS FOR THE NEXT REGULAR MEETING OF SHAREHOLDERS			7177
SCHEDULE: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES			78



Name	Age	Director Since	Position/Company	Independence	Current Committees	Other For-Profit Directorships (*Public Company)
Lisa M. Caputo	52	2009	Executive Vice President, Marketing & Communications The Travelers Companies, Inc.	ü	Nominating, Corporate Governance & Public Policy Compensation & Human Resources	—
J. Patrick Doyle	52	2014	President & CEO Domino’s Pizza, Inc.	ü	Audit Finance & Investment Policy	Domino’s Pizza, Inc.*
Russell P. Fradin	60	2013	Operating Partner Clayton, Dubilier & Rice	ü	Compensation & Human Resources (Chair)	—
Kathy J. Higgins Victor	59	1999	President & Founder Centera Corporation	ü	Compensation & Human Resources Nominating, Corporate Governance & Public Policy (Chair)	—
Hubert Joly	56	2012	Chairman & CEO Best Buy Co., Inc.	—	None	Ralph Lauren Corporation*
David W. Kenny	54	2013	General Manager IBM Watson, IBM	ü	Audit (Chair) Compensation & Human Resources	SessionM
Karen A. McLoughlin	51	2015	Chief Financial Officer Cognizant Technology Solutions Corp.	ü	Audit Finance & Investment Policy	—
Thomas L. Millner	62	2014	President & CEO Cabela’s Inc.	ü	Audit Nominating, Corporate Governance & Public Policy	Cabela’s Inc.* Total Wine & More
Claudia F. Munce	56	2016	Venture Advisor New Enterprise Associates	ü	Audit Finance & Investment Policy	Bank of the West
Gérard R. Vittecoq	67	2008	Group President & Executive Office Member (Retired) Caterpillar, Inc.	ü	Audit Finance & Investment Policy (Chair)	Ariel Compressors Vanguard Logistics Services Mantrac Group



Name and Principal Position	Salary		Stock Awards⁽¹⁾		Option Awards⁽¹⁾		Short-Term Incentive Plan Payout		All Other Compensation		Total
Hubert Joly Chairman and Chief Executive Officer	$	1,175,000	$	8,011,688	$	1,842,715	$	3,814,050	$	29,028	$	14,872,481
Sharon L. McCollam Chief Administrative and Chief Financial Officer	$	925,000	$	3,039,724	$	1,397,391	$	2,251,913	$	9,669	$	7,623,697
Shari L. Ballard President, U.S. Retail	$	790,385	$	2,672,270	$	1,228,476	$	1,927,311	$	24,641	$	6,643,083
R. Michael Mohan Chief Merchandising Officer	$	790,385	$	1,336,135	$	614,238	$	1,927,311	$	10,323	$	4,678,392
Keith Nelsen General Counsel and Secretary	$	640,385	$	1,102,314	$	506,742	$	1,027,899	$	10,482	$	3,287,822



~~Hubert Joly~~	~~Best Buy Committees:~~	~~Other For-Profit Directorships (*Public Company)~~
~~Age: 56~~	~~None~~		l	Ralph Lauren Corporation*
~~Director Since:~~
~~September 2012~~

~~Appointed Chairman of the Board in June 2015~~

Independence

Average Tenure

Average Age

Gender Diversity