UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
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Securities Exchange Act of 1934
(Amendment No.      )
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Fastenal Company
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2001 Theurer Boulevard
Winona, Minnesota 55987-0978
(507) 454-5374
February 28, 202024, 2023
Dear Fellow Shareholders:
I am pleased to invite you to attend our annual meeting to be held at Fastenal's CEC (Customer Experience Center) Propertythe Remlinger Muscle Car Museum located at 18583560 Service Drive, Winona, Minnesota, 55987, commencing at 10:00 a.m., central time, on Saturday, April 25, 2020.22, 2023. For attendees from the Winona area, our CEC Propertythe Remlinger Muscle Car Museum is the former J.C. PenneyUnited Building Center (UBC) location.
The following notice of annual meeting and the proxy statement describe the matters to come before the annual meeting. During the annual meeting, we will also review the activities of the past year and items of general interest about Fastenal and will be pleased to answer your questions. Please join us for lunch immediately following the annual meeting.
This year we are again taking advantage of a Securities and Exchange Commission rule allowing us to furnish our proxy materials over the internet. If you are a shareholder who holds shares in an account with a broker (also referred to as shares held in 'street name'), you will receive a notice regarding availability of proxy materials by mail from your broker. The notice will tell you how you can access our proxy materials and provide voting instructions to your broker over the internet. It will also tell you how to request a paper or e-mail copy of our proxy materials. If you are a shareholder whose shares are registered directly in your name with our transfer agent, Equiniti Trust Company (a 'registered shareholder'), you will continue to receive a copy of our proxy materials by mail as in previous years.
We hope that you will be able to attend the annual meeting in person and we look forward to seeing you.person. Whether or not you plan to attend the meeting, your vote is important and we encourage you to vote by completing and returning the enclosed proxy promptly.
Sincerely,
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Willard D. ObertonScott A. Satterlee
ChairmanChair of the Board






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FASTENAL COMPANY
Notice of Annual Meeting of Shareholders
DATE & TIMESaturday, April 25, 202022, 2023 at 10:00 a.m. (central time)
PLACE
Fastenal Company
1858Remlinger Muscle Car Museum
3560 Service Drive

Winona, Minnesota 55987
(CEC Property: former J.C. Penney location)
ITEMS

OF BUSINESS
1. The election of a board of directors consisting of ten members to serve until the next regular
    meeting of shareholders orand until their successors have been duly elected and qualified.
2. The ratification of the appointment of KPMG LLP as our independent registered public
    accounting firm for the year ending December 31, 2020.2023.
3. An advisory vote on a non-binding resolution to approve the compensation of certain of our
    executive officers disclosed in this proxy statement.
4. The considerationA non-binding advisory vote to determine the frequency of a shareholder proposal contained infuture advisory votes on the proxy statement related to diversity
    reporting, if properly presented at the annual meeting.compensation of certain of our executive officers.
5. The transaction of such other business as may properly be brought before the annual meeting.
RECORD DATEYou may vote at the annual meeting if you were a shareholder of record at the close of business on February 26, 2020.22, 2023.
VOTING BY PROXY
YOUR VOTE IS IMPORTANT – Your proxy is important to ensure a quorum at the annual meeting. Even if you own only a few shares, and whether or not you plan to attend the meeting, please follow the instructions you received to vote your shares as soon as possible to ensure that your shares are represented at the meeting.
Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to be held on April 25, 2020:22, 2023: The notice, proxy statement, and 20192022 annual report are available at www.proxyvote.com.

By Order of the Board of Directors,
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John J. Milek
Vice President General Counsel
Winona, Minnesota
February 28, 202024, 2023






PROXY STATEMENT
Proxies are being solicited by the board of directors of Fastenal Company (hereinafter referred to as Fastenal or by terms such as the company, we, our, or us) for use in connection with the annual meeting to be held on Saturday, April 25, 202022, 2023 at our CEC property at 18583560 Service Drive, Winona, Minnesota, 55987, commencing at 10:00 a.m., central time, and at any adjournments thereof. The mailing address of our principal executive office is 2001 Theurer Boulevard, Winona, Minnesota 55987-0978 and our telephone number is (507) 454-5374. The mailing of this proxy statement and our board of directors' form of proxy to shareholders whose shares are registered directly in their names with our transfer agent ('registered shareholders') will commence on or about March 16, 2020.13, 2023. The mailing of the notice regarding availability of proxy materials to our shareholders who hold shares in accounts with brokers (also referred to as shares held in 'street name') will commence on or about the same date.
TABLE OF CONTENTS
 
2
5
89
1419
1419
Proposal #3 – An advisory vote on a non-binding resolution to approve the compensation of our named executive officers disclosed in this proxy statement
1621
Proposal #4 – A non-binding advisory vote to determine the frequency of future advisory votes on the compensation of our named executive officers
21
1622
33
Security ownership of principal shareholders and management
3642
3844
3844
3945


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GENERAL INFORMATION ABOUT THE MEETING AND VOTING
What am I voting on?
These are the proposals scheduled to be voted on at the annual meeting:
•Election of all ten directors ('Proposal #1');
•Ratification of the appointment of KPMG LLP as our independent registered public accounting firm for 20202023 ('Proposal #2');
•Adoption of a resolution approving, on an advisory, non-binding basis, the compensation of certain of our executive officers ('Proposal #3'); and
Consideration•Approval, by non-binding advisory vote, of a shareholder proposal contained in this proxy statement relating to diversity reporting, if properly presentedthe frequency of future executive compensation votes ('Proposal #4').
Who is entitled to vote?
The common stock of Fastenal, par value $.01 per share, is our only authorized and issued voting security. At the close of business on February 26, 2020,22, 2023, there were 574,396,214570,960,683 shares of common stock issued and outstanding, each of which is entitled to one vote. Only shareholders of record at the close of business on February 26, 202022, 2023 will be entitled to vote at the annual meeting or any adjournments thereof.
What constitutes a quorum?
The presence at the annual meeting, in person or by proxy, of the holders of a majority of the shares of common stock outstanding at the close of business on the record date will constitute a quorum for the transaction of business at the meeting.
How many votes are required to approve each proposal?
Election of Directors
As is the case this year, where the number of nominees does not exceed the number of directors to be elected, directors are elected under a majority voting standard. This means that each director must receive more votes for his or her election than votes against in order to be elected. If an incumbent director fails to receive a sufficient number of votes to be elected, he or she must promptly offer to resign, and the nominating and corporate governance committee will make a recommendation on the resignation offer and the board must accept or reject the offer within 90 days and publicly disclose its decision and rationale. Shareholders do not have the right to cumulate their votes in the election of directors.
Ratification of Independent Registered Public Accounting Firm
The affirmative vote of the holders of the greater of (1) a majority of the shares of common stock present in person or by proxy at the annual meeting and entitled to vote or (2) a majority of the minimum number of shares entitled to vote that would constitute a quorum for the transaction of business at the annual meeting is required for approval of Proposal #2.
Approval of Executive Compensation
The vote to approve our executive compensation is advisory and not binding on our board of directors. However, our board will consider our shareholders to have approved our executive compensation if the number of votes 'FOR' Proposal #3 exceeds the number of votes 'AGAINST' Proposal #3.
Approval of Frequency of Shareholder ProposalAdvisory Votes on Executive Compensation
The affirmative voteWith respect to Proposal #4, the frequency that receives the greatest number of votes will be the frequency of the holders of the greater of (1) a majority of the shares of common stock present in person or by proxy at the annual meeting and entitledadvisory vote on executive compensation that our shareholders are deemed to vote or (2) a majority of the minimum number of shares entitled to vote that would constitute a quorum for the transaction of business at the annual meeting is required for the approval of Proposal #4. For purposes of determining the level of support needed for a shareholder to be eligible to resubmit a shareholder proposal in a following year using Rule 14a-8 under the Exchange Act, the Securities and Exchange Commission (the 'SEC') uses a simple majority standard that compares the votes cast 'FOR' to votes cast 'AGAINST' an item (which gives abstentions 'no effect'). Proxy advisory firms, such as Institutional Shareholder Services and Glass Lewis, also use a simple majority standard in determining the level of support for shareholder proposals.have approved.
How are votes counted?
You may vote 'FOR', 'AGAINST' or 'ABSTAIN' on each proposal.Proposals #1, #2, and #3. You may vote 'FOR 1 YEAR', 'FOR 2 YEARS', 'FOR 3 YEARS' or 'ABSTAIN' on Proposal #4. Abstentions will be counted as present for purposes of determining the existence of a quorum. If you abstain from voting on any proposal other than the election of directors or the approval of executive compensation,Proposal #2, it has the same effect as a vote against the proposal. An abstention will not have any effect on the outcome of the election of directorsvote on Proposal #1, #3, or on the approval of executive compensation.#4. If you sign and submit a proxy card without voting instructions, your shares will be voted 'FOR' each director nominee,nominee; 'FOR 1 YEAR' as the frequency for future shareholder advisory votes on the approval of executive compensation, and 'FOR' or 'AGAINST' any other proposal as recommended by the board.

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What is a broker non-vote?
If shareholders do not give their brokers instructions as to how to vote shares held in street name, the brokers have discretionary authority to vote those shares on 'routine' matters, such as Proposal #2, but not on 'non-routine' proposals, such as Proposals #1, #3, and #4. As a result, if you hold your shares in street name and do not provide voting instructions to your broker, your shares will not be voted on any proposal on which your broker does not have discretionary authority to vote. This is sometimes called a 'broker non-vote'. Shares held by brokers who do not have discretionary authority to vote on a particular matter and who have not received voting instructions from their customers will be counted as present for the purpose of determining whether there is a quorum at the annual meeting, but will not be counted or deemed to be present in person or by proxy and entitled to vote for the purpose of determining whether our shareholders have approved that matter.
How does the board recommend that I vote?
Fastenal's board recommends that you vote your shares:
•'FOR' each of the nominees to the board named in this proxy statement;
•'FOR' the ratification of the appointment of KPMG LLP as our independent registered public accounting firm for 2020;2023;
•'FOR' the adoption of a resolution approving, on an advisory, non-binding basis, the compensation of certain of our executive officers; and
'AGAINST'•'FOR 1 YEAR' as the adoptionfrequency of future advisory votes on the shareholder proposal, if properly presented at the annual meeting.compensation of certain of our executive officers.
How do I vote my shares without attending the annual meeting?
Registered Shareholders
If you are a registered shareholder, you may vote without attending the annual meeting by telephone, over the internet, or by mail as described below. To vote:
•By telephone: (1) on a touch-tone telephone call toll-free 1-800-690-6903, 24 hours a day, seven days a week, until 12:00 p.m., eastern time, on April 24, 2020,21, 2023, (2) have your proxy card available, and (3) follow the instructions provided;
•Over the internet: (1) go to www.proxyvote.com, 24 hours a day, seven days a week, until 12:00 p.m., eastern time, on April 24, 2020,21, 2023, (2) have your proxy card available, and (3) follow the instructions provided; or
•By mail: (1) mark, date, and sign the enclosed proxy card, and (2) return the proxy card in the enclosed postage-paid envelope to Fastenal Company,Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, New York 11717. You should sign your name exactly as it appears on the proxy card. If you are signing the proxy card in a representative capacity (for example, as guardian, executor, trustee, custodian, attorney or officer of a corporation), you should indicate your name and title or capacity.
Shares held jointly by two or more registered shareholders may be voted by any joint owner, unless we receive written notice from another joint owner denying the authority of the first joint owner to vote those shares.
Shares Held in Street Name
If you hold your shares in street name, you will receive a notice regarding availability of proxy materials that will tell you how to access our proxy materials and provide voting instructions to your broker over the internet. It will also tell you how to request a paper or e-mail copy of our proxy materials. As noted above, if you hold your shares in street name and do not provide voting instructions to your broker, your shares will not be voted on any proposals on which your broker does not have discretionary authority to vote.
Shares Held in the Fastenal Company and Subsidiaries 401(k) and Employee Stock Ownership Plan ('401(k) plan')
If you participate in our 401(k) plan and have investments in the Fastenal stock fund, you will receive instructions from the trustee of the plan that you must follow in order for shares attributable to your account to be voted. The trustee will vote shares for which no directions have been timely received, and shares not credited to any participant's account, in proportion to votes cast by participants who have timely responded.
How do I vote my shares in person at the annual meeting?
If you are a registered shareholder and prefer to vote your shares at the annual meeting, bring the enclosed proxy card or proof of identification. You may vote shares held in street name only if you obtain and bring to the annual meeting a signed proxy from the record holder (broker or other nominee) giving you the right to vote the shares. Shares attributable to your account in our 401(k) plan may not be voted by you in person at the annual meeting. Even ifmeeting and you planmust follow the instructions provided by your broker for any shares held in street name to attendbe able to participate and vote at the annual meeting, wemeeting. We encourage you to vote in
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advance by telephone, over the internet, or by mail so that your vote will be counted if you later decide not to attend the meeting. If you are a registered shareholder who wishes to vote in person at the annual meeting and

have previously submitted a proxy, you must deliver to an officer of Fastenal a written notice of termination of the proxy's authority before the vote. Attendance at the annual meeting will not itself revoke a previously granted proxy.
How do I change my vote?
If you are a registered shareholder, you may revoke your proxy (1) prior to the annual meeting by mailing a later dated proxy or by submitting a subsequent proxy by telephone or over the internet at any time before the applicable deadline noted above, or (2)above. Attendance at the annual meeting itself will not revoke a previously granted proxy unless written notice of the revocation or subsequent proxy is revoked as described in the previous sentence or, by delivering to an officer of Fastenal a written notice of termination of the proxy's authority at any time prior to the vote.meeting. If you hold your shares in street name or through our 401(k) plan and wish to change your vote, you should follow the instructions received from your broker or the trustee of the plan.
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PROPOSAL #1—ELECTION OF DIRECTORS
Nominees and Required Vote
Our bylaws provide that our business will be managed by or under the direction of a board of directors of not less than five nor more than twelve directors. Within this range, the exact number of directors is fixed from time to time by the board of directors. The board currently consists of eleventen members. Since our current director, Darren R. Jackson, will not be standing for reelection at the annual meeting, the board has determined to fix the number of directors to be elected at the annual meeting at ten. Each director will be elected at the annual meeting for a term that expires at the next regular shareholders' meeting and will hold office for the term for which he or she was elected orand until a successor is elected and qualified.
Each of the nominees named below is a current director of Fastenal and has indicated a willingness to be named in this proxy statement and to serve as a director for the ensuing year. Each of the nominees has been previously elected by our shareholders, with the exception of Nicholas J. Lundquist, who was appointed as director by our board of directors effective October 1, 2019.shareholders. Proxies solicited by the board of directors will, unless otherwise directed, be voted to elect the ten nominees named below to constitute the entire board. Notwithstanding the foregoing, in case any such nominee is not a candidate at the annual meeting of shareholders for any reason, the proxies named in the enclosed proxy card may vote for a substitute nominee in their discretion.
The following table sets forth certain information as to each director standing for election at the annual meeting.
Committee Memberships
NameAgeDirector
Since		Principal Occupation
Board
Independent
Audit (1)
Comp-
  ensation (2)
Nominating and Corporate Governance (3)
Scott A. Satterlee542009Retired President of North America Surface Transportation Division, C.H. Robinson Worldwide, Inc.ChairX
Michael J. Ancius582009Vice President and Chief Financial Officer, A.L.M. Holding CompanyXXChairX
Stephen L. Eastman582015President of the Aftermarket, Parts, Garments, and Accessories Division, Polaris Inc.XXXChair
Daniel L. Florness592016President and Chief Executive Officer of Fastenal CompanyX
Rita J. Heise662012Self-Employed Business Consultant, Retired Corporate Vice President and Chief Information Officer, Cargill, IncorporatedXXChairX
Hsenghung Sam Hsu532020Executive Vice President of Strategic Planning, Ecolab Inc.XXXX
Daniel L. Johnson592016Chief Executive Officer, M.A. Mortenson CompanyXXXX
Nicholas J. Lundquist652019Retired Senior Executive Vice President - Operations of Fastenal CompanyX
Sarah N. Nielsen492021Chief Financial Officer of First Citizens BankXXX
Reyne K. Wisecup602000Retired Senior Executive Vice President - Human Resources of Fastenal CompanyX
Number of 2022 meetings42654
(1)    On February 8, 2023, the composition of our audit committee changed. Throughout 2022 and until February 8, 2023, the members were Mr. Ancius (Chair), Ms. Heise, Mr. Hsu, and Ms. Nielsen.
(2)    On February 8, 2023, the composition of our compensation committee changed. Throughout 2022 and until February 8, 2023, the members were Mr. Satterlee (Chair), Mr. Ancius, Mr. Eastman, and Mr. Johnson.
(3)    On February 8, 2023, the composition of our nominating and corporate governance committee changed. Throughout 2022 and until February 8, 2023, the members were Ms. Heise (Chair), Mr. Eastman, and Mr. Johnson.

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      Committee Memberships
NameAge
Director
Since
Principal OccupationBoardIndependentAudit
Comp-
  ensation (1)
Nom-
    inating (2)
Willard D. Oberton611999Chairman of the Board of Fastenal CompanyChairmanX   
Michael J. Ancius552009Vice President and Chief Financial Officer, A.L.M. Holding CompanyXXX X
Michael J. Dolan712000Self-Employed Business Consultant, Retired Executive Vice President and Chief Operating Officer, The Smead Manufacturing CompanyXXChairX 
Stephen L. Eastman552015President of the Aftermarket, Parts, Garments, and Accessories Division, Polaris Inc.XX XX
Daniel L. Florness562016President and Chief Executive Officer of Fastenal CompanyX    
Rita J. Heise632012Self-Employed Business Consultant, Retired Corporate Vice President and Chief Information Officer, Cargill, IncorporatedXXX Chair
Daniel L. Johnson562016President and Chief Executive Officer, M.A. Mortenson CompanyXX XX
Nicholas J. Lundquist622019Retired Senior Executive Vice President - Operations of Fastenal CompanyX    
Scott A. Satterlee512009Retired President of North America Surface Transportation Division, C.H. Robinson Worldwide, Inc.XX Chair 
Reyne K. Wisecup572000Senior Executive Vice President - Human Resources of Fastenal CompanyX    
Number of 2019 meetings42652
(1)On February 5, 2020, Mr. Satterlee began serving as chair of our compensation committee. As of December 31, 2019 and until February 4, 2020, Mr. Dolan served as chair.
(2)On February 5, 2020, Ms. Heise joined the nominating committee and began serving as chair of the committee. As of December 31, 2019 and until February 4, 2020, Mr. Ancius served as chair.
Director Qualifications
Fastenal's board of directors is comprised of a diverse group of individuals of varying backgrounds and experiences. Our management directors bring important internal insights and perspective developed during their years of experience in operations and administration at the company. They provide direct-line feedback for the people-centered culture that has played a major role in the company's success. Our independent directors contribute a variety of expertise derived from their backgrounds in the areas of entrepreneurial leadership, strategic planning, multi-location sales and marketing, manufacturing, distribution, logistics, commercial construction, international market development, information technology, publicly-held company reporting, professional administration, investor relations, risk management, and accounting.

The board believes each of the nominees possesses the experience, skills, and attributes to serve on the company's board of directors, and collectively contribute to its ongoing success.
Mr. Willard D. Oberton hasScott A. Satterlee serves as chair of the board. He retired in January 2016 as president of the North America Surface Transportation Division of C.H. Robinson Worldwide, Inc., a position he held since December 2014. He served as chairmana senior vice president of our board since April 2014. He also servedtransportation of C.H. Robinson from December 2007 through December 2014, and as the company's chief executive officera vice president of transportation of C.H. Robinson from Decemberearly 2002 through December 2014, when he retired from2007. C.H. Robinson is a publicly-held global provider of transportation and logistics services headquartered in Eden Prairie, Minnesota. As an executive officer of C.H. Robinson, Mr. Satterlee was responsible for a portion of its worldwide operations with duties that position,included oversight of a decentralized network of offices, each with local and again on an interim basis from July 2015 through December 2015. He began his business career with Fastenal in January 1980,global account relationships. Additionally, Mr. Satterlee helped develop and oversee implementation of network compensation plans for C.H. Robinson, and was promotedaccountable for expanding operations into portions of South America, Europe, and Asia. Mr. Satterlee has also served on various non-profit boards in the Rocky Mountain region. He brings multi-location operational, compensation, and international business development experience to branch manager, then district manager, and later to general operations manager. He served asthe board, all consistent with our vice president from March 1997 through June 2000, as our executive vice president from June 2000 through July 2001, as our chief operating officer from March 1997 through December 2002, and as our president from July 2001 through July 2012 and again on an interim basis from July 2015 through December 2015. company's strategic focus.
Mr. Oberton's professional career grew from within Fastenal as he successfully worked, managed, and provided leadership to mostSatterlee attended 100% of the departments and disciplines integral to the company's growth and financial success. Mr. Oberton's varied experience with the company, including his long tenure as chief executive officer, givesgeneral meetings of the board unique insight into the company's 'success drivers' and provides continuity to Mr. Florness in the development and execution2022, as well as 100% of the company's strategy. In addition, Mr. Oberton serves on the board of directors of publicly-held Donaldson Company as lead director, which gives him useful insight into another organization's corporate governance, compensation planning, and strategic development. Also, he serves on the board of WinCraft, Inc., a privately-held company involvedcommittee meetings in manufacturing and distributing promotional marketing merchandise, which are important disciplines helpful to Fastenal. Additionally, he has served on the boards of various community and educational organizations, including the board of trustees of St. Benedict's College, St. Joseph, Minnesota.2022.
Mr. Michael J. Ancius serves has served as the vice president and chief financial officer of A.L.M. Holding Company since January 2018 and he began working for the company in June 2017. A.L.M. Holding Company is a privately-held construction and energy company headquartered in Onalaska, Wisconsin. From 1997 to June 2017, Mr. Ancius was the director of strategic planning, financing, and taxation of Kwik Trip, Inc., a privately-held multi-location convenience store chain headquartered in La Crosse, Wisconsin.chain. Prior to 1997, Mr. Ancius was a senior manager with the certified public accounting firm of RSM US LLP for ten years, where he specialized in taxation. His background in strategic planning, board operations, capital markets, capital structures and valuations, insurance risk management, development of compensation strategies, taxation, and financial and accounting matters contributes a unique set of skills to the board. Additionally, his experience with taxation and financial accounting matters brings beneficial insight to our audit committee.
Mr. Michael J. Dolan has worked as a business consultant since March 2001. From October 1995 through February 2001, he served as executive vice president and chief operating officer of The Smead Manufacturing Company, participating in the management and leadership of that privately-owned manufacturer of office filing products. Prior to 1995, Mr. Dolan was a partner in the international audit and accounting firm of KPMG LLP, which assisted in taking Fastenal public in 1987. He was associated with KPMG LLP for a total of 25 years during which time he specialized in advising distribution, transportation, and manufacturing companies, several of which were publicly-held. His operations background in manufacturing, multi-location distribution, transportation, and marketing serves the board and company in these areas integral to Fastenal's business, and provides experience in evaluating business risk as well as opportunity. His financial background and experience in accounting and reporting matters and in advising publicly-held companies provides the experience needed to chair the company's audit committee. He has also served on various community and educational boards, including
Mr. Ancius attended 100% of the general meetings of the board in 2022, as well as 100% of trustees of St. Mary's University, Winona, Minnesota.both the audit and compensation committee meetings in 2022.
Mr. Stephen L. Eastman has served as president of the aftermarket, parts, garments, and accessories (PG&A) division of Polaris Inc., headquartered in Medina, Minnesota, a manufacturer and marketer of recreational vehicles with $6.8$8.6 billion in annual revenues, since August 2015. In his capacity as president, he is responsible for leading the global business, strategic direction, product and brand development, supply chain operations, and multi-channel sales marketing, and e-commerce,marketing, of the aftermarket, parts, garments, and accessories division. From February 2012 to August 2015, he served as vice president of that same division. He has also led the acquisition and integration of several aftermarket businesses including the 2016 acquisition of Transamerican Auto Parts, a vertically integrated manufacturer, distributor, retailer, and installer of off-road Jeep and truck accessories.brands. From October 2011 to February 2012, Mr. Eastman worked as an independent business consultant. Prior to October 2011, Mr. Eastman held various managerial positions during a tenure of almost 30 years with Target Corporation, a multi-location and online retailer of consumer products, including president of Target.com from 2008 to October 2011. His background in executive and managerial leadership in multi-location consumer products companies, supply chain strategy, inventory management, e-commerce,eCommerce, and mergers and acquisitions integration provides valuable insight and guidance in these areas to the board. Mr. Eastman also serves on the board of directors of privately-held Specialized Bicycle Components, a designer, manufacturer, and marketer of bicycles, bicycle components, and related products, as well as the non-profit board of directors of the Boys and Girls Club of the Twin Cities. Additionally, Mr. Eastman's diverse business background provides the experience to chair the company's nominating and corporate governance committee.

Mr. Eastman attended 100% of the general meetings of the board in 2022, as well as 100% of both the compensation and nominating and corporate governance committee meetings in 2022.
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Mr. Daniel L. Florness has served as the company's president and chief executive officer since January 2016. He began his career at Fastenal in 1996 and served as the company's chief financial officer from June 1996 to December 2002, and as an executive vice president and the chief financial officer of the company from December 2002 to December 2015. During his time as chief financial officer, Mr. Florness' experience with the company expanded beyond finance, including leadership of product development and procurement, a portion of our manufacturing division, and, in later years, our national accounts business. In his role as president and chief executive officer, Mr. Florness provides the board with critical input on the development and implementation of high level strategies for the company and on the overall operations and resources of the company. In addition, his long prior tenure as chief financial officer makes Mr. Florness uniquely situated to provide the board with in-depth insight into the company's financial planning, internal controls, and regulatory compliance. Mr. Florness also serves on the board of directors of H.B. Fuller, a publicly-held company in the global adhesives market and is on the board of trusteesdirectors of Bellin Gundersen Health System, Inc., an integrated health care system primarily located in Wisconsin, as well as Upper Michigan, northeastern Iowa, and southeastern Minnesota. Additionally, he has served on the boards of various community organizations.
Mr. Florness attended 100% of the general meetings of the board in 2022.
Ms. Rita J. Heise retired in December 2011 as corporate vice president and chief information officer of Cargill, Incorporated, an international producer and marketer of food, agricultural, financial and industrial products and services, and one of the largest privately-owned companies in the world.world headquartered in Wayzata, Minnesota. In her capacity as the chief information officer, she was responsible for Cargill's information technology worldwide. While at Cargill, she also served as a platform leader providing executive leadership for the agriculture horizon, animal nutrition, and salt/de-icing businesses and was a member of the business transformation and process improvement leadership teams. Prior to joining Cargill, Ms. Heise was the chief information officer for the aerospace business of Honeywell International Inc. and for Honeywell's Europe, Middle East, and Africa operations. During her 25 years at Honeywell, she worked on business integrations, process improvement teams, and mergers and acquisitions; led various information technology assignments; and held positions in supply chain, operations, customer service, and distribution. Ms. Heise has participated in information technology industry committees and previously served as chair ofon the board of Blue Cross Blue Shield of Minnesota (BCBSMN), a non-profit health services company. Ms. Heise continues to serve oncompany, where she also served as chair of the BCBSMN board. She previously served on the board of Adventium Labs, a privately- heldprivately-held systems engineering and cybersecuritycyber security company, and Curtiss Wright Corporation, a publicly-held engineering company specializing in providing high-tech, critical-function products, systems, and services to the commercial, industrial, defense and power markets. Her information technology background, combined with a diverse operations background, offers the board valuable insight on ways for Fastenal to maximize the use of advancing technologies in marketing, operations, and distribution, and to effectively manage cyber security risks. Additionally, Ms. Heise's diverse business background provides the experience to chair the company's compensation committee.
Ms. Heise attended 100% of the general meetings of the board in 2022, as well as 100% of both the audit and nominating committee.and corporate governance committee meetings in 2022.
Mr. Hsenghung Sam Hsu is executive vice president of strategic planning for Ecolab Inc., a global leader in water, hygiene, and infection prevention solutions and services, headquartered in St. Paul, Minnesota, where he has led corporate strategy and various business initiatives since January 2016. He has held various other positions with Ecolab since 1996, including as executive vice president/senior vice president, global services business sector from 2012 to January 2016. Prior to his service with Ecolab, Mr. Hsu was employed with Merrill Lynch Asset Management and the Ministry of Health in Taiwan, where he was born. His background in global business management, strategic planning, corporate governance, finance, treasury and capital markets, business-to-business sales and marketing, mergers and acquisitions, digital transformation, developing high-performing teams, new business developments, and environmental, social, and governance (ESG) thought leadership, provides valuable insight and guidance in these areas to the board. Mr. Hsu previously served as chair of the board of directors for the Children’s Theatre Company in Minneapolis, served on the board of directors for the American Composers Forum, served as chair on the Food, Agriculture and Beverage committee for the American Chamber of Commerce in Shanghai, served on the board of directors of the Chinese Institute of Food Science and Technology, and was executive director of the board for the China Health Inspection Association.
Mr. Hsu attended 100% of the general meetings of the board in 2022, as well as 100% of the audit committee meetings in 2022.
Mr. Daniel L. Johnson is president and chief executive officer of M. A. Mortenson Company, a family-owned commercial, energy, and infrastructure construction company that provides construction-related contracting, development, and program management services throughout North America.America, and is headquartered in Minneapolis, Minnesota.Mortenson employs more than 5,000 team members and generates in excess of $4.5$5.0 billion of annual revenues. Before assuming his current role as president and chief executive officer in January 2017, Mr. Johnson served as president of Mortenson from January 2015 to December 2016 and as chief operating officer of Mortenson from 2008 to December 2014. Prior to that, he held various leadership and managerial positions with Mortenson since joining that company in 1986. Non-residential construction customers have historically represented a meaningful portion of Fastenal's sales, and Mr. Johnson's background in executive and managerial leadership of a major construction company provides the board with valuable insight into and guidance regarding this important sector of Fastenal's
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business. Mr. Johnson also serves on several non-profit and industry boards including the Greater MSP, the Crohn's and Colitis Foundation of America, the ACE Mentor Program, and the North Dakota State University College of Engineering.
Mr. Nick L.Johnson attended 100% of the general meetings of the board in 2022, as well as 100% of both the compensation and nominating and corporate governance committee meetings in 2022.
Mr. Nicholas J. Lundquist served as the company’s senior executive vice president – operations from December 2016 through January 2020, when he retired from that position. He began his business career with Fastenal in March 1979, serving in various distribution and sales leadership roles of increasing responsibility until being promoted to executive vice president and chief operating officer in December 2002, a position he held until November 2007. He served as one of ourthe company's executive vice presidents – sales from November 2007 through July 2012 and as ourthe company's executive vice president – operations from July 2012 through December 2016. Mr. Lundquist’s professional career grew from within Fastenal as he successfully worked, managed, and provided leadership to many of the departments and disciplines integral to the company's growth and financial success. Mr. Lundquist’s varied experience with the company, including his long tenure in senior sales and operational management roles, gives the board deeper insight into the company’s people centered culture, as well as its sales channels, distribution operations, product and supplier development, and supply chain. His career path epitomizes ourthe company's ‘promote from within’ philosophy which is a cornerstone of Fastenal's culture.
Mr. Scott A. Satterlee retired in January 2016 as presidentLundquist attended 100% of the North America Surface Transportation Divisiongeneral meetings of C.H. Robinson Worldwide,the board in 2022.
Ms. Sarah N. Nielsen is currently the chief financial officer of First Citizens Bank, a locally-owned community bank in Mason City, Iowa, serving in this capacity since November 2017. From November 2005 to May 2017, she served as vice president and chief financial officer of Winnebago Industries, Inc., a position he held since December 2014. He served aspublicly-held leading U.S. manufacturer of outdoor lifestyle experiences including motorhomes, travel trailers, fifth wheels, and boats under the Winnebago, Grand Design, Chris-Craft, and Newmar brands. During her tenure with Winnebago, she led the due diligence and financing efforts that resulted in the strategic acquisition of Grand Design RV, developed long term strategies surrounding post-retirement healthcare benefits, implemented a senior vice president of transportation of that company from December 2007 through December 2014,strategic sourcing and a vice president of transportation of that company from early 2002 through December 2007. C.H. Robinson is a publicly-held global provider of transportationprocurement program, and logistics services headquartered in Eden Prairie, Minnesota. As an executive officer of C.H. Robinson, Mr. Satterlee was responsible for a portion

of its worldwide operationsinvolved with duties that includedthe management and oversight of a decentralized networkcertain divisions within this organization. From 1995 through 2005, she was employed with Deloitte & Touche LLP, achieving the role of offices, each with localsenior audit manager. Her background in financial management and global account relationships. Additionally, Mr. Satterlee helped developreporting, strategic planning, sourcing, and oversee implementation of network compensation plans for C.H. Robinson,public company board governance provides valuable insight and was accountable for expanding operations into portions of South America, Europe, and Asia. He brings multi-location operational, compensation, and international business development experienceguidance in these areas to the board. Ms. Nielsen currently serves as the treasurer, finance committee chair and executive committee member of the board all consistent with our company's strategic focus,of directors for the Clear Lake Area Chamber of Commerce, a non-profit organization, which also providesshe joined in 2018. She served on the experience needed to chairaudit committee of the company's compensation committee.board of directors for the Recreation Vehicle Industry Association, a national trade association, from 2014 through 2017.
Ms. Nielsen attended 100% of the general meetings of the board in 2022, as well as 100% of the audit committee meetings in 2022.
Ms. Reyne K. Wisecup serves served as the company's senior executive vice president – human resources.resources from December 2016 through February 2023, when she retired from that position. She began her career at Fastenal in 1988,served as the company's executive vice president – human resources from November 2007 through December 2016, as vice president of employee development from April 2002 through November 2007, as director of human resources from April 1997 through April 2002, and served in various operational and administrative areas until being named human resources director infrom 1988 through April 1997. In April 2002, she was promoted to vice president of employee development, a position she held until November 2007 when she was named executive vice president – human resources. In December 2016, Ms. Wisecup was promoted to senior executive vice president - human resources. In her capacity as senior executive vice president – human resources, Ms. Wisecup managesmanaged the company's human resources department which includesincluded human relations, payroll, benefits, diversity and compliance, general insurance, legal, and the Fastenal School of Business. Because we credit much of our success to our 'people centered' decentralized structure, relying upon the entrepreneurial motivation and creative energy of our employees, Ms. Wisecup providesprovided a very helpful direct link between the employees and the board which aids the board in shaping employee relations. Her career path also epitomizes the 'promote from within' philosophy.
Ms. Wisecup attended 75% of the general meetings of the board in 2022, having missed only one meeting due to the death of her mother.
None of the above nominees is related to any other nominee or to any of our executive officers.
THE BOARD OF DIRECTORS RECOMMENDS VOTING FOR
THE ELECTION OF EACH OF THE ABOVE NOMINEES
* * * * * * * * * *
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CORPORATE GOVERNANCE AND DIRECTOR COMPENSATION
Director Independence
Our board of directors has determined that none of Mr. Oberton,Satterlee, Mr. Ancius, Mr. Dolan, Mr. Eastman, Ms. Heise, Mr. Jackson,Hsu, Mr. Johnson, or Mr. SatterleeMs. Nielsen, has any relationships that would interfere with the exercise by such person of independent judgment in the carrying out of his or her responsibilities as a director and that each such individual is an independent director under the listing standards of the Nasdaq Stock Market (herein referred to as 'independent directors'). The independent directors constitute a majority of our board of directors and a majority of the nominees for the office of director. In making the board's independence determination, the members of the board were aware of and considered various transactions between Fastenal and companies in or with respect to which certain of our directors have equity interests or serve as directors, officers, or employees. Those transactions consisted of the purchase of products by such companies from Fastenal in the ordinary course of business and on terms available to comparable unrelated customers in similar circumstances, and the purchase by Fastenal of products or services from such companies in the ordinary course of business on terms negotiated on an arm's-length basis. None of our directors were in any way directly involved with any of these transactions.
Board Diversity Matrix (as of February 1, 2023)
The following chart summarizes certain self-identified personal characteristics of our directors, in accordance with Nasdaq Listing Rule 5605(f). Each term used in the table has the meaning given to it in the rule and related instructions.
Total Number of Directors10
FemaleMaleNon-BinaryDid Not Disclose Gender
Directors37——
Number of Directors who Identify in Any of the Categories Below:
African American or Black————
Alaskan Native or Native American————
Asian—1——
Hispanic or Latinx————
Native Hawaiian or Pacific Islander————
White36——
Two or More Races or Ethnicities————
LGBTQ+—
Did Not Disclose Demographic Background—
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Board Diversity Matrix (as of February 1, 2022)
The following chart summarizes certain self-identified personal characteristics of our directors, in accordance with Nasdaq Listing Rule 5605(f). Each term used in the table has the meaning given to it in the rule and related instructions.
Total Number of Directors10
FemaleMaleNon-BinaryDid Not Disclose Gender
Directors36—1
Number of Directors who Identify in Any of the Categories Below:
African American or Black————
Alaskan Native or Native American————
Asian—1——
Hispanic or Latinx————
Native Hawaiian or Pacific Islander————
White35——
Two or More Races or Ethnicities————
LGBTQ+—
Did Not Disclose Demographic Background1
Board Leadership Structure and Committee Membership
Our corporate governance guidelines provide that the board shall determine the leadership structure of the board from time to time and that the board shall choose its chair based upon the board's view of what is in the best interest of the company at any given point in time, based on the recommendation of the nominating and corporate governance committee.
Mr. Satterlee has been the chair of the board of the company since April 2021. He has served as a director of the company for more than a decade and has high level executive experience gained as a former executive at C.H. Robinson.
As chair, Mr. Satterlee is the primary liaison between senior management and the independent directors and provides strategic input and leadership to our executive officers. With input from the other board members, committee chairs, and management, he develops the agenda for board meetings, sets board meeting schedules, and presides over meetings of the board. As the company's chair and board member for fourteen years, Mr. Satterlee combines a detailed and in-depth knowledge of the company's day-to-day operations with an ability to identify strategic priorities essential to the future success of the company and effectively execute the company's strategic plans.
Mr. Satterlee leads the executive sessions of the independent directors focused on a spontaneous agenda developed by directors to address the most critical issues. His role is to help assure that those sessions remain effective forums for promoting open and candid discussion among the independent directors regarding issues of importance to the company, including evaluating the performance and effectiveness of members of management.
While the roles of chair and chief executive officer are currently separated, the board does not have a policy on whether or not the role of the chair and chief executive officer should be separate or combined and, if it is to be separate, whether the chair should be selected from the non-employee directors or be an executive officer. The board believes that the current separation between the role of chair and chief executive officer allows Mr. Florness to focus on the company's operations, while ensuring appropriate independent board leadership over governance matters. Our corporate governance guidelines provide that in the event that the chair of the board is not an independent director, the board should elect a 'lead independent director,' who will have the responsibility to schedule and prepare agendas for meetings of the non-employee directors. The lead independent director will communicate with the chief executive officer, disseminate information to the rest of the board in a timely manner and raise issues with management on behalf of the non-employee directors when appropriate.
During 2022, we had three standing board committees, consisting of an audit committee, a compensation committee, and a nominating and corporate governance committee. The members of these committees during 2022, and the number of meetings held by the full board, by the independent members of the board, and by each committee during 2022, are detailed in the table under 'Nominees and Required Vote' above. Each incumbent director attended 75% or more of the meetings in 2022 of the board and the various committees on which he or she served that were held during his or her term of service on the board.
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Board Oversight of Risk
The board of directors recognizes that, although risk management is a primary responsibility of the company's management, the board plays a critical role in oversight of risk. The board, in order to more specifically carry out this responsibility, has assigned the audit committee the primary duty to periodically review the company's policies and practices with respect to risk assessment and risk management, including discussing with management the company's major risk exposures and the steps that have been taken to monitor and control those exposures. Those risks include company risks, such as cyber security incidents, and industry and general economic risks, such as risks related to cyber security incidents,the impact of trade policies on our supply chain, all as further identified in our annual report. The compensation committee has been assigned the duty to assess the impact of the company's compensation programs on risk and recommend to the board of directors the adoption of any policies deemed necessary or advisable in order to mitigate compensation relatedcompensation- and human capital management-related risks. Information on the compensation committee's involvement in risk assessment and management as they relateit relates to compensation programs is provided below under 'Executive Compensation-Compensation Discussion and Analysis.' Each committee reports to the board ensuring the board's full involvement in carrying out its responsibility for risk management.management and to ensure that risks are appropriately identified, measured, monitored, and addressed.
The board's oversight role in this area has not affected its leadership structure, largely because of the level of direct communication between various members of senior management and the board and its committees. Our corporate governance guidelines include the provisions described above relating to the board's oversight of risk management.
Environmental, Social, and Governance Matters
Fastenal has always been committed to understanding and exceeding the expectations of our employees, customers, suppliers, and shareholders. We have also had significant and favorable impacts over time on the communities in which we operate. As stakeholder expectations change and evolve, including around environmental, social, and governance (ESG) matters, we are committed to changing and evolving with them. We have a strong foundation upon which to do so, including investing in infrastructure and innovation, trusting and empowering our employees, supporting local communities in which our employees work and live, embracing a frugal approach to our own resource use, and providing products and services to our customers designed specifically to reduce resource consumption throughout their supply chains.
Environmental
Fastenal’s value proposition is to reduce the total consumption of resources in our customers' supply chain. We believe our business model directly contributes to, among other things, improved environmental efficiency and resiliency in global supply chains. To engage with Fastenal is to utilize Sustainable Solutions including environmental solutions featuring products, services, and systems to reduce consumption and waste; social solutions to improve workplace safety, supply chain diversity, and sourcing ethics; as well as governance solutions leveraging systems and reporting to improve supply chain transparency and regulatory compliance.
We have taken, and will continue to take, steps to reduce our own environmental footprint. During 2022, we announced we are working towards a plan to reach net zero emissions by 2050, including an expectation to establish science-based targets within the next two years. In support of this objective, in early 2023 we completed our first Materiality Assessment, which will be used to further enhance our goal-setting, initiatives, and disclosure. We continued to document and assess Scope 1 and Scope 2 emissions, which was again documented in our annual Carbon Disclosure Project filing. We are operating in BREEAM-certified facilities in the Netherlands and Czech Republic and have two buildings equipped with solar power technology. We continue to utilize and pilot fully electric yard tractors and box trucks, and converted a fuel-injected RAM truck into an electric vehicle to explore the capabilities of electric technology in our traditional vehicle fleet. In 2022, we obtained three ISO certifications relative to ESG for ISO 27001 Information Security Management Systems, ISO 14001 Environmental Management Systems, and ISO 45001 Occupational Health and Safety Management Systems. Based on these efforts and increasing disclosure, in 2022 we improved our Business Sustainability score from EcoVadis, an organization on which many of our customers rely, and from which we are now designated as having a bronze medal. In early 2023, we bolstered our documentation and reporting further with our inaugural ESG Report, which we released on January 16, 2023 and will be updated on an annual basis.
Fastenal continues to practice environmental stewardship through responsible use of materials and consumption of energy through the Energy Star Portfolio Manager Partnership. This partnership helps our facilities monitor and reduce energy, fuel, and materials through a comprehensive strategic management approach. We continue to focus on innovative ways to reduce, reuse, and recycle materials such as pallets, plastics, and metals products, as well as cardboard throughout our largest facilities. These efforts resulted in two of our hubs being certified as Energy Star buildings in 2022: Salt Lake City, Utah received an Energy Star score of 88 and uses 60% less energy per square foot than the national median, while Lacey, Washington received an Energy Star score of 85 and uses 47% less energy per square foot than the national median. Lastly, we developed an internal environmental sustainability training that was launched in 2022. This training will help position our employees across the organization to learn and understand how they can be better environmental stewards for our business and the communities they
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serve. To improve the efficiency of our fleet we continue to participate in the EPA's SmartWay program, which helps companies advance supply chain sustainability by measuring, benchmarking, and improving freight transportation efficiency.
Social
We believe in the unique humanness of people, and that no one group has a monopoly on talent or desire. We believe everyone has the ability to learn, change, and contribute to the success of our organization and, by extension, our society. We believe our greatest social impact begins with the 22,000-plus members of the Blue Team. We seek people that embody our cultural values of Ambition, Integrity, Innovation, and Teamwork, ask them to join, and work to give them a reason to stay. We provide training so people can improve their skills and increase their value. We trust people to take risks and make independent decisions in an entrepreneurial environment to build confidence. We most greatly value our own talent, and reward success by passionately promoting from within. Through these beliefs, we empower our human capital.
Achieving these goals includes a commitment to developing a diverse workforce and inclusive relationships in all of our endeavors. This forms the foundation to compete within the global business environment and provide our employees with expanded and enhanced opportunities throughout the world. To further this, our processes for hiring, promoting, and compensating are by design simple, visible, objective and regularly reviewed for effectiveness. This has produced considerable growth in recent years in the diversity of our workforce, statistics for which can be found in letters posted annually by our CEO and Executive Vice President of Human Resources to the Sustainability page on our website.
Our impact on the communities in which we operate derives from being a 'local' supply chain partner, where our customers, our operations, and our employees are part of the fabric. The greatest contribution we believe we can make is to serve our customers and create opportunities for our employees within these communities. Our employees are subject to our company Standards of Conduct, and we expect them to hold themselves to a high ethical standard. We challenge our employees to develop themselves, and just as critically, develop their teams, and promote talented individuals from within. We also ask them to operate with a frugal mindset of 'if I don’t waste something today, we will have more resources to solve a problem tomorrow'. We believe these principles of trust, empowerment, and professional development foster a civic-mindedness that benefits the communities in which our people live. This manifests through corporate programs, such as our annual BK5K charitable runs and our athletic uniform program, Blue Team Sports, a national blood drive in collaboration with the American Red Cross, as well as in the myriad donations of time and resources committed privately by our employees.
Our employee-centric culture is more than just a process. It is how we support each other. The Fastenal School of Business provided approximately 781,000 training sessions in 2022 on subjects ranging from computer cyber security to safety protocols to product knowledge to sales to leadership, providing each employee the opportunity for self-improvement. We ensure a safe workplace, with the Experience Modification Rate (EMR), a widely tracked workplace health and safety measure. Our EMR benchmark is 48% better than that of similar companies in our industry, indicating below-average workplace health and safety risks. We support best practices outside of our company with our Supplier Diversity Program, a program designed to facilitate purchases with small and/or diverse businesses by creating close, long-term relationships that strengthen our supply chain, and with a Supply Chain Compliance team that engages directly with global suppliers to ensure ethical business and labor practices.
Governance
Board Leadership Structurecomposition and Committee Membershipgovernance highlights:
Mr. Oberton•Our roles of board chair and CEO are separated;
•Our board chair is independent;
•Seven of our 10 directors are independent;
•Four of our 10 directors are diverse, including one who identifies as Asian, and three who identify as female.
•The board has beenthree committees: compensation, nominating and corporate governance, and audit. The charters of each of these committees can be viewed on Fastenal’s investor website;
•All committees of our board are composed exclusively of independent directors;
•Director participation in board and committee meetings was 75% or more for each incumbent director in 2022;
•We have a 'Rooney Rule' provision, as discussed in the chairman'Director Nomination Process' below, to assure stakeholders of our commitment to including diverse candidates when considering candidates for our board of directors;
•Our company has stock ownership guidelines (detailed later in this document) requiring each non-employee director and each officer subject to Section 16 reporting requirements to achieve a specific equity ownership level;
•A full slate of director nominees is submitted to shareholders annually; and
•Our company has one class of shares.
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•Effective January 2023, our corporate governance guidelines were amended to provide that the maximum number of employees or former employees serving on the board will not exceed thirty percent of the total number of directors on the board, which limitation may be waived by the board. Employee directors that terminate their service as an employee of the company since April 2014, and servedmay continue to serve as chief executive officer from December 2002 through December 2014, when he retired from that position, and again ona director for up to five years after termination as an interim basis from July 2015 through December 2015. Upon the election of Mr. Florness as chief executive officeremployee of the company, effective January 1, 2016,which five year limitation may be waived by the roles of chairmannominating and chief executive officer were separated. However, separation of the two offices is not mandated by any corporate governance guidelinescommittee.
Fastenal’s board of the companydirectors serves as a prudent fiduciary for shareholders and continued separationoversees management of the roles will depend upon specific circumstancesour business and the experience and background of the company's leadership.

resources. As chairman, Mr. Oberton is the primary liaison between senior management and the independent directors and provides strategic input and leadership to our executive officers. With input from the other board members, committee chairs, and management, he develops the agenda for board meetings, sets board meeting schedules, and presides over meetings of the board. As the company's chairman, former chief executive officer and a board member for over nineteen years, Mr. Oberton combines a detailed and in-depth knowledge of the company's day-to-day operations with an ability to identify strategic priorities essential to the future success of the company and effectively execute the company's strategic plans.
Mr. Oberton leads the executive sessions of the independent directors focused on a spontaneous agenda developed by the directors to address the most critical issues. His role is to help assure that those sessions remain effective forums for promoting open and candid discussion among the independent directors regarding issues of importance to the company, including evaluating the performance and effectiveness of members of management.
During 2019 we had three standing board committees, consisting of an audit committee, a compensation committee, and a nominating committee. The members of these committees during 2019, and the number of meetings held bysuch, the full board byhas assigned the independent membersnominating and corporate governance committee the primary duty to oversee corporate governance matters subject to board oversight, and sets high standards for the company's employees, officers, and directors. Among its priorities are corporate responsibility, human capital management, and sustainability. We have a strong commitment to being an ethical and responsible company acting with integrity and respect for each other, our customers and suppliers, our communities, and the environment.
On matters of enterprise risk, including financial, operational, competitive, compliance, cyber security, reputational, and ESG matters, the full board has oversight responsibility and receives leadership and guidance on these topics from the audit, compensation, and nominating and corporate governance committees. This includes steps to monitor, manage, and mitigate such risks. Our standing committees support the board and by each committee during 2019, are detailed in the table on page 5. Each incumbent director attended more than 75%addressing specific matters involving enterprise risk that relate to their respective areas of the aggregate number of meetings in 2019 of the board and the various committees on which he or she served that were held during his or her term of service on the board.oversight.
Other Board and Corporate Governance Matters
Communications with the Board
All interested parties, including our shareholders, may contact our board of directors or a particular director by e-mail addressed to bod@fastenal.com.bod@fastenal.com, or writing to the board or a particular director in care of the executive assistant to the board at the mailing address of the company as set forth on the company's website. Registered or beneficial owners of our common stock should identify themselves in their e-mails as shareholders of the company. The executive assistant to our board of directors periodically reviews such e-mails, consults with the chair of the board, and forwards communications from our shareholders, and communications from other interested parties requiring board attention,then refers any appropriate communication to the chairman of the board.applicable board member. The executive assistant will not forward communications received which are unrelated to the duties and responsibilities of our board of directors, including, without limitation, junk mail, mass mailings, business solicitations, routine customer service concerns, new productdirectors. The director to whom a communication is referred will determine, in consultation with company counsel if necessary, whether a copy or service suggestions, and opinion surveys. The executive assistantsummary of the communication will forward communications received which are unrelatedbe provided to the responsibilities of ourother directors. In consultation with company counsel if necessary, the board will respond to the appropriate members of management, with the exception of junk mail or other mass mailings.communications if and as appropriate.
Board Attendance at Annual Meeting
WeWhile we have no formal policy regarding attendance by directors at our annual meeting, although most of our directors have historically attendedare expected to attend this meeting. Each individual serving as a director of the company at that time attended our 20192022 annual meeting.
CEO Succession Matters
Our compensation committee reviews and discusses with our board of directors succession plans for the chief executive officer and our other executive officers. The company has historically utilized a philosophy of 'promoting from within' our organization from a diverse selection of qualified internal candidates and will continue to promote a diverse pipeline for executive management, viewing continuity in culture and experience with our organization as paramount considerations when evaluating potential senior leadership. Any such internal search may or may not include female and racially and/or ethnically diverse candidates, depending on whether any such candidates meet the paramount considerations set forth above at the time the opportunity is available. However, should the board of directors decide to seek or engage a third partythird-party search firm to solicit a chief executive officer from outside the company, any initial list of outside chief executive officer candidates would include female and racially and/or ethnically diverse candidates.
Anti-hedging Policies
Our directors and Section 16 officers are prohibited from hedging our stock, either directly or indirectly. Prohibited transactions include the purchase by a director or Section 16 officer of financial instruments, including without limitation, prepaid variable forward contracts, instruments for short sale or purchase or sale of call or put options, equity swaps, collars or units of exchangeable funds, that are designed to or that may reasonably be expected to have the effect of hedging or offsetting a decrease in the market value of any of our securities.

Membership on Other Boards
As set forth in our corporate governance guidelines, a director must advise the chair of the board of such director's intent to serve on the board of another public company. No director may serve on more than two public company boards, including the company’s board, without the prior approval of the board.
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Audit Committee
Our audit committee currently consists of fourthree directors, each of whom is an independent director. Our board of directors has determined that Mr. Dolan,Ancius, Mr. Ancius,Hsu, and Mr. JacksonMs. Nielsen are 'audit committee financial experts' under the rules of the SEC.
The audit committee is responsible for overseeing our management and independent registered public accounting firm as to corporate accounting, financial reporting, internal controls, audit matters, and corporate risk management, and has the authority to:
•Select, evaluate, compensate, and replace our independent registered public accounting firm;
•Pre-approve services to be provided by our independent registered public accounting firm;
•Review and discuss with our management and independent registered public accounting firm our interim and audited annual financial statements, and recommend to our board whether the audited annual financial statements should be included in our annual report on Form 10-K;
•Discuss with our management earnings press releases and other published financial information or guidance;
•Review and discuss with management our major risk exposures, including, without limitation, corporate and information security risks, and the steps that management has taken to monitor and control such exposures;
•Monitor the activities and performance of our internal auditors and our independent registered public accounting firm;
•Monitor the independence of our independent registered public accounting firm;
•Oversee our internal compliance programs;
•Review related person transactions for potential conflict-of-interest situations; and
•Establish procedures for the receipt, retention, and treatment of complaints regarding accounting, internal controls, or auditing matters.matters; and
•Prepare a report of the audit committee as required by the rules of the SEC to be included in Fastenal's annual proxy statement.
Our audit committee operates under a written charter originally adopted by our board of directors in June 2000 and most recently amended in January 2018.2022. The audit committee reviews its charter on an annual basis to determine if any amendments are needed. A copy of the current charter is available on the Governance page of the Investor Relations section of our website at www.fastenal.com.
Related Person Transaction Approval Policy
In January 2007, our board of directors adopted a formal written related person transaction approval policy, which sets out our policies and procedures for the review, approval, or ratification of 'related person transactions'. For these purposes, a 'related person' is a director, nominee for director, executive officer, or holder of more than 5% of our common stock, or any immediate family member of any of the foregoing. This policy is reviewed periodically to determine if any amendments are needed.
This policy applies to any financial transaction, arrangement, or relationship or any series of similar financial transactions, arrangements, or relationships in which Fastenal is a participant and in which a related person has a direct or indirect interest, other than the following:
•Payment of compensation by Fastenal to a related person for the related person's service in the capacity or capacities that give rise to the person's status as a 'related person';
•Transactions available to all employees or all shareholders on the same terms;
•Purchases of products from Fastenal in the ordinary course of business at the same price and on the same terms as offered to our other customers, regardless of whether the transactions are required to be reported in Fastenal's filings with the SEC; and
•Transactions, which when aggregated with the amount of all other transactions between the related person and Fastenal, involve less than $120,000 in a year.
Our audit committee is required to approve any related person transaction subject to this policy before commencement of the related person transaction, provided that if the related person transaction is identified after it commences, it must be brought to the audit committee for ratification, amendment, or rescission. The chair of our audit committee has the authority to approve or take other actions in respect of any related person transaction that arises, or first becomes known, between meetings of the audit committee, provided that any action by the chair must be reported to our audit committee at its next regularly scheduled meeting.
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Our audit committee will analyze the following factors, in addition to any other factors the members of the audit committee deem appropriate, in determining whether to approve a related person transaction:
•Whether the terms are fair to Fastenal;
•Whether the transaction is material to Fastenal;

•The role the related person has played in arranging the related person transaction;
•The structure of the related person transaction; and
•The interests of all related persons in the related person transaction.
Our audit committee may, in its sole discretion, approve or deny any related person transaction. Approval of a related person transaction may be conditioned upon Fastenal and the related person following certain procedures designated by the audit committee.
Transactions with Related Persons
There were no related person transactions during 20192022 required to be reported in this proxy statement.
Compensation Committee
Our compensation committee was appointed by our board of directors to discharge the board's responsibilities relating to compensation of Fastenal's executive officers and to oversee and advise the board on the adoption of policies that govern our compensation and benefit programs. Our compensation committee currently consists of four directors, each of whom qualifies as an independent director.
Our compensation committee has the authority to:
•Evaluate our chief executive officer's performance, and determine and approve all elements of our chief executive officer's compensation;
•Review the evaluations of the performance of our other executive officers, and approve all elements of their compensation;
•Approve incentive plan goals for executive officers, review actual performance against goals, and approve plan awards;
•Recommend to the board stock ownership guidelines for executive officers and non-employee directors and monitor compliance with guidelines that are established;
•Review and discuss with the board succession plans for the CEOchief executive officer and other executive officers;
•Review our compensation programs for management employees and directors, and make recommendations to our board concerning the adoption or amendment of compensation plans, including equity-based compensation plans;
•Review and approve all changes in Fastenal's benefit plans which could result in material changes in costs or the benefit levels provided;
•Review our compensation policies and practices as they relate to risk management practices and risk-taking incentives, and recommend to the board of directors the adoption of policies to mitigate risks arising from compensation policies and practices;
•Oversee the process by which the company conducts advisory shareholder votes regarding compensation matters;
•Review and discuss with management our Compensation Discussion and Analysis and recommend to our board the inclusion of the Compensation Discussion and Analysis in Fastenal's annual proxy statement; and
•Prepare a report of the compensation committee as required by the rules of the SEC to be included in Fastenal's annual proxy statement.statement; and
•Review and advise management on diversity and inclusion strategies, programs, and initiatives.
Our compensation committee may delegate to our chief executive officer the authority, within pre-existing guidelines established by the compensation committee, to approve awards of equity-based compensation under established plans to employees other than executive officers. Our chief executive officer may be present during deliberations of the compensation committee on the compensation of our other executive officers (but not his own) and may provide input at the request of the compensation committee on that compensation. However, he may not vote on executive compensation.
Our compensation committee operates under a written charter originally adopted by our board of directors in February 2007, and most recently amended in October 2018.January 2022. The compensation committee reviews its charter on an annual basis to determine if any amendments are needed. A copy of the current charter is available on the Governance page of the Investor Relations section of our web sitewebsite at www.fastenal.com.
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Compensation Committee Interlocks and Insider Participation
None of the members of our compensation committee has ever been an officer or employee of Fastenal. During 2019,2022, no executive officer of Fastenal served as a member of the board of directors or compensation committee (or other board committee performing equivalent functions) of any other entity that had any of its executive officers serving as a member of our board of directors or compensation committee.

Compensation of Our Directors
Our compensation committee makes recommendations regarding director compensation to the full board and the board makes the final decision regarding director compensation after consideration of such recommendations. All of our directors, including our chief executive officer, participated in the deliberations of the board regarding director compensation for 2019.2022.
In January 2019, each of our non-employee directors2022, the committee chairs received an annual cash retainer of $85,000 and each of our employee directors received an annual retainer of $42,500 for his or her services as a director, except that Mr. Lundquist, who was elected to the board effective October 1, 2019, received a retainer of $10,625 (or one-fourth of a full year's employee director retainer) upon his election. In addition, in 2019, the chair of the audit committee received an annual retainer of $25,000, the chair of the compensation committee received an annual retainer of $15,000, and the chair of the nominating committee received an annual retainer of $10,000. During 2019, each$20,000. Each of our non-employee directors, other than Mr. Oberton, alsothe board chair, received $4,000an annual cash retainer of $100,000 and the board chair received an annual cash retainer of $120,000. The Fastenal Company Non-Employee Director Stock Option Plan permits all non-employee directors to elect up to 100% of such annual cash retainer to be paid in stock options. As set forth in the table below, certain non-employee directors made this election for 2022. Our employee directors received an annual cash retainer of $50,000. The annual cash retainer of $20,000 for committee chairs is paid in the form of a lump sum at the beginning of the year. All other annual cash retainers are paid quarterly. Annual stock option grants are made at the beginning of the year.
For 2022, the board, upon the recommendation of the compensation committee, eliminated the payment of additional retainer fees for attendance at each regular or special meetingmeetings of the board and each committee meeting. Mr. Obertonthe committees. In light of this change, all non-employee directors, other than the board chair, received a monthly retainer of $25,000 in lieu of meeting attendance fees. In addition, eachstock options valued at $50,000 and the board chair received stock options valued at $80,000. Each of our non-employee directors was also entitled to be reimbursed for reasonable expenses incurred by such non-employee director in the performance of his or her services as a director or committee member, including reasonable expenses of attendance at board and committee meetings. The Fastenal Company Non-Employee Director Stock Option Plan permits our non-employee directors to elect to receive awards
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The following table sets forth information with respect to the 20192022 compensation forpaid to each of our directors, in their capacity as directors, other than any of our directors who are named executive officers (as defined below in 'Proposal #3 -– An Advisory Vote on a Non-binding Resolution to Approve the Compensation of our Named Executive Officers Disclosed in this Proxy Statement'). The compensation of our named executive officers, in their capacity as directors and executive officers of Fastenal, is set out in the Summary Compensation Table under 'Executive Compensation - SummaryCompensation-Summary of Compensation' later in this document. On May 22, 2019 we effectedproxy statement.
NameFees
Earned
or Paid
in Cash
($) (1)		Stock
Awards
($)		Option
Awards
($) (2)		Non-Equity
Incentive Plan
Compensation
($)		All Other
Compensation
($)		Total
($)
Scott A. Satterlee80,000 — 140,000 — — 220,000 
Michael J. Ancius120,000 — 50,000 — — 170,000 
Stephen L. Eastman60,000 — 90,000 — — 150,000 
Rita J. Heise20,000 — 150,000 — — 170,000 
Hsenghung Sam Hsu— — 150,000 — — 150,000 
Daniel L. Johnson100,000 — 50,000 — — 150,000 
Nicholas J. Lundquist100,000 — 50,000 — — 150,000 
Sarah N. Nielsen100,000 — 50,000 — — 150,000 
(1)Mr. Eastman, Ms. Heise, Mr. Hsu, and Mr. Satterlee elected to receive all or a two-for-oneportion of their annual cash retainer as stock split of our common stock. All share and per share information presented in this proxy statement has been adjustedoption awards pursuant to reflect the stock split.Fastenal Company Non-Employee Director Stock Option Plan.
Name 
Fees
Earned
or Paid
in Cash
($) (1)
 
Stock
Awards
($)
 
Option
Awards
($) (2)
 
Non-Equity
Incentive Plan
Compensation
($)
 
Change in Pension Value and Nonqualified
Deferred
Compensation
Earnings ($)
 
All Other
Compensation
($)
 
Total
($)
Willard D. Oberton 385,000
 —
 —
 —
 —
 —
 385,000
Michael J. Ancius 143,000
 —
 —
 —
 —
 —
 143,000
Michael J. Dolan 197,000
 —
 —
 —
 —
 —
 197,000
Stephen L. Eastman 145,000
 —
 —
 —
 —
 —
 145,000
Rita J. Heise 40,000
 —
 85,000
 —
 —
 —
 125,000
Darren R. Jackson 129,000
 —
 —
 —
 —
 —
 129,000
Daniel L. Johnson 141,000
 —
 —
 —
 —
 —
 141,000
Nicholas J. Lundquist 10,625
 —
 —
 —
 —
 —
 10,625
Scott A. Satterlee 86,500
 —
 42,500
 —
 —
 —
 129,000
(1)Ms. Heise and Mr. Satterlee elected to receive option awards in lieu of $85,000 and $42,500 in annual cash retainer payments, respectively, pursuant to the Fastenal Company Non-Employee Director Stock Option Plan.
(2)(2)The amounts reported in this option awards column represents the aggregate grant date fair value computed in accordance with Financial Accounting Standards Board ('FASB') ASC Topic 718 of option awards that our non-employee directors elected to receive during the fiscal year pursuant to the Fastenal Company Non-Employee Director Stock Option Plan in lieu of annual cash retainer payments. The number of shares subject to each option award was determined by dividing (i) the portion of the annual retainer amount that each director would have otherwise received in cash on the grant date of the option by (ii) the Black-Scholes value as of the grant date of each share subject to the option award and rounding to the nearest whole number. We calculated the grant date fair value in accordance with generally accepted accounting principles utilizing the assumptions set forth in the notes to our consolidated financial statements included in our 2019 annual report on Form 10-K. As of December 31, 2019, our non‑employee directors held outstanding (and unexercised) stock option awards as follows: Mr. Ancius - 8,474; Ms. Heise - 36,288; Mr. Johnson - 8,474; and Mr. Satterlee - 18,144.
Effective January 2020, the board reduced the monthly retainer paid to the chairman of the board from $25,000 per month to $20,000 per month. The board also reduced the annual retainer paidamount that each director would have otherwise received in cash on the grant date of the option by (ii) the Black-Scholes value as of the grant date of each share subject to the option award and rounding down to the nearest whole number. We calculated the grant date fair value in accordance with generally accepted accounting principles utilizing the assumptions set forth in the notes to our consolidated financial statements included in our 2022 annual report on Form 10-K. As of December 31, 2022, our non-employee directors held outstanding (and unexercised) stock option awards as follows: Mr. Jackson, who will not be standing for re-election asAncius - 12,128; Mr. Eastman - 6,578; Ms. Heise - 48,215; Mr. Hsu - 19,845; Mr. Johnson - 12,128; Mr. Lundquist - 3,654; Ms. Nielsen - 3,654; and Mr. Satterlee - 49,740.

a director at the annual meeting, to $42,500 (or approximately one half of a full year's retainer). All other elements of director compensation remain unchanged from those in effect during 2019.2022.
Nominating and Corporate Governance Committee
Our nominating and corporate governance committee assists the board in maintaining effective governance of the company by identifying and recommendingdischarging its responsibilities relating to the nomination of board appropriate candidates to serve as directors of the company and periodically assessing the composition of our board.provide oversight on corporate governance matters. Our nominating and corporate governance committee consists of four directors, each of whom qualifies as an independent director.
Our nominating and corporate governance committee has the authority to:
•Periodically review the composition, skills, and qualifications of members of the board and recommend any changes to the board in its size or composition;
•Engage in succession planning for the chairman of the board and other board members;board;
•Identify, evaluate, recruit, and recommend to the board candidates to fill any vacant or newly created board positions;positions, occasionally with the assistance of a third-party advisor or recruitment firm;
•Recommend to the board candidates for election as directors at the annual shareholders meeting;
•Consider any resignations tendered by directors and recommend appropriate action to the board in response;
•Monitor and evaluate the orientation and ongoing training needs of directors;
Regularly•Provide opportunities for directors to participate in continuing education programs focused on the responsibilities of members of public company boards of directors;
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•Develop procedures for and conduct an annual review itsof the performance of the board and the nominating and corporate governance committee;
•Annually review and reassess the adequacy of the company’s corporate governance guidelines;
•Review and recommend to the board any changes to the company’s articles of incorporation and by-laws;
•Review shareholder proposals relating to corporate governance and review the company’s response to such proposals with the board;
•Evaluate and make recommendations to the board regarding director independence standards;
•Oversee the company’s ESG initiatives; and
•Review and reassess, on at least an annual basis, the adequacy of its charter.
Our nominating and corporate governance committee operates under a written charter adopted in April 2012 and most recently amended in January 2020.2022. The nominating and corporate governance committee reviews its charter on an annual basis to determine if any amendments are needed. A copy of the current charter is available on the Governance page of the Investor Relations section of our website at www.fastenal.com.
Director Nomination Process
Our nominating committee believescorporate governance guidelines provide that the following qualifications, skills, and attributes are necessary for the company's directors:
•Personal integrity;
Integrity, intelligence, good judgment, ambition, and innovation;
Loyalty•Commitment to the stakeholders of our company and concern for itsour company's success and welfare;
•The ability and willingness to apply sound and independent judgment;
•An awareness of a director's vital part in our good corporate citizenship;
•Time available for meetings and consultation on company matters;
•The commitment to serve as a director for a reasonable period of time; and
•The willingness to assume the fiduciary responsibilities of a director.
In selecting and evaluating director candidates, the nominating and corporate governance committee also considers an individual's business, employment and educational background, leadership experience in business or administrative activities, breadth of knowledge about issues affecting our company, and ability to contribute complementary expertise to board or committee activities.
TheUnder our corporate governance guidelines, the board has an 'age-limitation' policy relating to service on the board. The policy provides that no person wouldcan be nominated by the board for election by the shareholders of the company to the board, or appointed by the directors of the company to fill any vacancy on the board, during any year if such person is 72 years of age or older on January 1st of such year.year provided that this 'age-limitation' may be waived by the board under certain circumstances.
When selecting and evaluating director nominees, our board seeks a diversity of perspectives, backgrounds, and life experiences. The nominating and corporate governance committee is mindful of the board's view in this regard in discharging its responsibilities.
If, after consultation with the full board and members of management to determine the needs of the company for new directors, the nominating and corporate governance committee decides to recommend the addition of one or more directors, or if a vacancy occurs on the board that the nominating and corporate governance committee determines should be filled, the process described below will be followed by the nominating and corporate governance committee:
•With input from the chairmanchair of the board, it will initiate the search for director candidates;
•Identify an initial slate of candidates for consideration which shall include female and racially and/or ethnically diverse candidates (and any third party search firms requested to furnish an initial slate will be asked to include such candidates), which is known as the 'Rooney Rule';
•Conduct inquiries into the background and qualifications of identified candidates;
•Determine those candidates who should be interviewed and conduct the interviews;
•Approve a candidate for recommendation to the board; and
•Seek board endorsement of the recommended candidate for election by our shareholders or board appointment of the recommended candidate to fill a vacancy or a newly created board position between shareholder meetings.
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Our nominating and corporate governance committee has the authority to retain search firms to assist in identifying and evaluating director candidates, as well as any other advisors as the nominating and corporate governance committee determines necessary to carry out its duties. Fastenal is required to

provide appropriate funding, as determined by our nominating and corporate governance committee, for payment of compensation to any search firm or other advisors so employed by the nominating and corporate governance committee.
Our nominating and corporate governance committee will consider qualified director candidates recommended by our shareholders.shareholders in the event it determines to recommend the addition of directors or in the event of a vacancy on the board that Fastenal is required to fill, or that the nominating and corporate governance committee determines should be filled. Candidates recommended by shareholders will be evaluated in the same manner as other candidates. Shareholders may recommend candidates by sending an e-mail to nominate@fastenal.combod@fastenal.com or by writing to Nominating and Corporate Governance Committee, Fastenal Company, 2001 Theurer Boulevard, Winona, Minnesota 55987 and providing that candidate's name, biographical data, and qualifications. Shareholders may also nominate director candidates directly if they comply with our bylaws. See 'Deadlines for Receipt of Shareholder Proposals and Nominations for the 20212024 Annual Meeting' below. Candidates recommended by our shareholders will be evaluated in the same manner as other candidates.
Annual Board and Committee Evaluations
OurAnnual self-evaluations of the board and its committees are completed to assess performance and identify opportunities for improvement. In addition, the nominating and corporate governance committee reviews the composition, skills, and qualifications of the individual members of our board of directors on an annual basis, and reports to the board of directors regarding suggested changes in size or composition of the board of directors and any succession planning for the chairman of the board and other board members.board.
Delinquent Section 16(a) Reports
Section 16(a) of the Securities Exchange Act of 1934 (the 'Exchange Act') requires our directors and officers to file initial reports of share ownership and reports of changes in share ownership with the SEC. Our directors and officers are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. Based solely on a review of the copies of such forms furnished to us and written representations from our directors and officers, all Section 16(a) filing requirements were met for 2019,2022, except that Nicholas J. LundquistMr. Charles S. Miller failed to report one transaction that he completed on June 6, 2022 and instead reported the transaction on a Form 5 report filed one late Form 3 reporting securities holdings in 2018 and Holden Lewis filed one late Form 4 relative to stock transactions in prior years in connection with a brokerage dividend reinvestment program.on January 6, 2023.
* * * * * * * * * *
PROPOSAL #2 – RATIFICATION OF APPOINTMENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
Our audit committee has selectedappointed KPMG LLP to serve as our independent registered public accounting firm for the year ending December 31, 2020.2023. While it is not required to do so, the audit committee is submitting the selection of KPMG LLP for ratification by our shareholders in order to ascertain the view of our shareholders. If the selection is not ratified, the audit committee will reconsider its selection. Proxies solicited by our board of directors will, unless otherwise directed, be voted to ratify the selectionappointment of KPMG LLP as our independent registered public accounting firm for the year ending December 31, 2020.2023.
A representative of KPMG LLP will be present atattend the annual meeting and will be afforded an opportunity to make a statement if such representative so desires and will be available to respond to appropriate questions during the meeting.
THE BOARD OF DIRECTORS RECOMMENDS VOTING FOR
RATIFICATION OF THE SELECTIONAPPOINTMENT OF KPMG LLP AS FASTENAL'S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
* * * * * * * * * *
AUDIT AND RELATED MATTERS
Audit Committee Report
As noted earlier, our audit committee oversees the company's financial accounting and reporting processes and systems of internal controls. In performing its oversight function, our audit committee relies upon advice and information received from Fastenal's management and independent registered public accounting firm.
In that regard, our audit committee has reviewed and discussed with both the management of the company and representatives of our independent registered public accounting firm our audited consolidated financial statements for 2019,2022, as well as management's assessment of the effectiveness of our internal controls over financial reporting. Management represented to our audit committee as part of those discussions that our audited consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America.
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Our audit committee also discussed with our internal auditors and representatives of our independent registered public accounting firm the overall scope and plans for their respective audits. Our audit committee met with the internal auditors and representatives of our independent registered public accounting firm, with and without management present, to discuss the results of their audits, their evaluations of our internal controls, including internal control over financial reporting, and the overall quality of our financial reporting.

Our audit committee further discussed with representatives of our independent registered public accounting firm the matters required to be discussed with audit committees by the applicable requirements of the Public Company Accounting Oversight Board's standards.standards and the SEC. Our audit committee also received the written disclosures and the letter from our independent registered public accounting firm required by the applicable requirements of the Public Company Accounting Oversight Board regarding our independent registered public accounting firm's communications with the audit committee concerning independence, and discussed with representatives of our independent registered public accounting firm the independence of that firm.
Based on the review and discussions referred to above, our audit committee recommended to our board of directors that our audited financial statements for 20192022 be included in our 20192022 annual report on Form 10-K for filing with the SEC.
Michael J. Dolan (Chair)Michael J. Ancius (Chair)Rita J. HeiseHsenghung Sam HsuDarren R. JacksonSarah N. Nielsen
Members of the Audit Committee
Audit and Related Fees
In connection with the audit of our 20192022 and 20182021 consolidated financial statements, we entered into engagement letters with KPMG LLP which set forth the terms by which KPMG LLP agreed to perform audit services for us.
The following table presents fees billed, or expected to be billed, by our independent registered public accounting firm for professional services, in the years indicated, by category, as described in the notes to the table.
20222021
Audit fees (1)
$924,002 $878,000 
Audit-related fees (2)
40,000 27,500 
Total$964,002 $905,500 
 2019 2018
Audit fees   
Consolidated audit fees(1)
$882,000
 $938,500
Statutory audit fees(2)
1,585
 —
 883,585
 938,500
Audit-related fees(3)
24,500
 24,000
Total$908,085
 $962,500
(1)Aggregate fees for professional services rendered by our independent registered public accounting firm for the audit of Fastenal's annual consolidated financial statements, audit of internal control over financial reporting, and review of the condensed consolidated financial statements included in our quarterly reports on Form 10-Q.
(1)Aggregate fees for professional services rendered by our independent registered public accounting firm for the audit of Fastenal's annual consolidated financial statements, audit of internal control over financial reporting, and review of the condensed consolidated financial statements included in our quarterly reports on Form 10-Q.
(2)Aggregate fees for statutory audit services related to our Panama and Latin America operations.
(3)Aggregate fees billed for audit-related services related to our 401(k) plan.
(2)Aggregate fees billed for audit-related services related to our 401(k) plan.
Independence of Principal Accountant
Our audit committee has considered whether, and has determined that, the provision of the services described above was compatible with maintaining the independence of our independent registered public accounting firm.
Pre-Approval of Services
The Sarbanes-Oxley Act of 2002 and the rules of the SEC regarding auditor independence require the pre-approval by our audit committee or pursuant to pre-approval policies and procedures established by our audit committee of audit and non-audit services provided to us by our principal accountant. There is an exception for de minimis non-audit services which may, under certain circumstances, be approved retroactively. Our audit committee has granted to its chair, Mr. Dolan, the authority to pre-approve the provision of audit and non-audit services, provided that he reports any such pre-approvals to the audit committee at its next scheduled meeting. All of the services were pre-approved in accordance with our pre-approval policy, and none of the services provided to us by our independent registered public accounting firm in 20192022 or 20182021 were approved retroactively pursuant to the exception to the pre-approval requirements for de minimis non-audit services described above.
* * * * * * * * * *

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PROPOSAL #3 – AN ADVISORY VOTE ON A NON-BINDING RESOLUTION TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS DISCLOSED IN THIS PROXY STATEMENT
Our compensation committee has described our compensation philosophy in the Compensation Discussion and Analysis contained in this proxy statement. Shareholders are urgedencouraged to read the Compensation Discussion and Analysis which also discusses how our compensation programs implement our compensation philosophy, as well as the Summary Compensation Table and other related tables and narrative disclosure which describe the compensation of all individuals who served as our chief executive officer or our chief financial officer during any part of 20192022 and the other three most highly compensated executive officers of Fastenal in 20192022 who were serving as executive officers at the end of 20192022 (our 'named executive officers') set forth under 'Executive Compensation' below. The compensation committee and the board of directors believe the policies and procedures articulated in the Compensation Discussion and Analysis are effective in implementing our compensation philosophy and in achieving our compensation goals and that the compensation of our executive officers in 20192022 reflects and supports these compensation policies and procedures.
As required pursuant to Section 14A of the Exchange Act, shareholders are being asked to vote on the following resolution:
RESOLVED, the shareholders of Fastenal Company approve, on an advisory basis, the compensation of the company's named executive officers, as disclosed in the Compensation Discussion and Analysis, compensation tables, and related disclosures contained in the section of the proxy statement for the 20202023 Annual Meeting of Shareholders captioned 'Executive Compensation'.
This advisory vote on executive compensation, commonly referred to as a 'say-on-pay' advisory vote, is not binding on our board of directors. However, the board and compensation committee will take into account the results of the vote when determining future executive compensation arrangements.
THE BOARD OF DIRECTORS RECOMMENDS VOTING FOR
ADOPTION OF THE RESOLUTION APPROVING THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
* * * * * * * * * *
PROPOSAL #4 – A NON-BINDING ADVISORY VOTE TO DETERMINE THE FREQUENCY OF FUTURE ADVISORY VOTES ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
Section 14A of the Securities Exchange Act of 1934 requires that, every six years, we provide shareholders with a vote on how frequently we will submit the non-binding advisory vote on compensation of our named executive officers (the 'say-on-pay' vote) to our shareholders in the future. We last submitted a vote on the frequency of future say-on-pay votes to our shareholders in 2017, when, in keeping with the recommendation of our board, our shareholders expressed a preference that future say-on-pay votes be held on an annual basis. Consistent with that preference, our board has held a say on pay vote annually since 2017.
Our board of directors concluded that an annual advisory vote to obtain shareholder feedback is appropriate for our organization. If we conclude over the next several years that this annual vote is not a useful tool for the maintenance of our simple compensation structure that rewards both short-term execution and long-term strategy, we will so advise our shareholders and reduce the frequency as so allowed. We believe this approach is consistent with the type of open and transparent dialogue we have had with our shareholders since first going public in 1987.
Shareholders are being asked to vote on a resolution to determine, on an advisory basis, whether the frequency of the say-on-pay vote should be (i) every one year, (ii) every two years, or (iii) every three years. The frequency with the greatest number of votes will be deemed the choice of the shareholders.
Although this advisory vote on the frequency of the 'say-on-pay' vote is not binding on our board of directors, the board and compensation committee will take into account the result of the vote when determining the frequency of future 'say-on-pay' votes.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE OF 1 YEAR ON THE FREQUENCY OF FUTURE EXECUTIVE COMPENSATION VOTES
* * * * * * * * * *



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EXECUTIVE COMPENSATION
Compensation Committee Report
Our compensation committee has reviewed and discussed the Compensation Discussion and Analysis contained in this proxy statement with management. Based on the compensation committee's review of, and discussions with management with respect to, the Compensation Discussion and Analysis, the compensation committee has recommended to our board of directors that the Compensation Discussion and Analysis be included in this proxy statement and in our 20192022 annual report on Form 10-K.
Scott A. SatterleeRita J. Heise (Chair)
Michael J. Dolan (Chair until February 4, 2020)
Ancius
Stephen L. Eastman


Daniel L. Johnson


Members of the Compensation Committee
Compensation Discussion and Analysis
Executive Summary
This Compensation Discussion and Analysis provides information about the fiscal 20192022 compensation programs for our named executive officers, who, in 2019,2022, were:
•Mr. Daniel L. Florness, President and Chief Executive Officer
•Mr. Holden Lewis, Senior Executive Vice President and Chief Financial Officer
•Mr. Terry M. Owen, Senior Executive Vice President - Sales Operations
•Mr. Charles S. Miller, Senior Executive Vice President - Sales
•Ms. Reyne K. Wisecup, Senior Executive Vice President - Human Resources
We believe compensation programs are most effective when they are fair, simple, transparent, designed to motivate employees to take prudent entrepreneurial risk to achieve company goals, and paid as close to the time the goals are achieved as is possible. Our primary objective is to structure compensation so as to ensure that a significant portion is directly tied to achievement of financial and operational goals and other factors that impact shareholder value. Consistent with this philosophy, our compensation program for executive officers incorporates features such as the following:
•Annual base salaries are generally below the market median;median and are generally unchanged on a yearly basis without good reason to put greater emphasis on incentive pay;

•Quarterly cash incentive opportunities based on growth in pre-tax or net earnings are typically above the market median;
•Long-term incentives are provided annually in the form of stock options with extended (generally five to eight year) vesting periods, and are not limited to senior executives;
•No discounted or reload stock option awards are permitted, and the re-pricing of stock options is prohibited;
•The vesting of stock option awards is accelerated in connection with a change in control only if the awards are neither assumed nor replaced by the surviving entity in the change in control transaction;
•Stock ownership guidelines for our executive officers;
•Retirement and health and welfare plans in which executive officers participate are the same as those generally available to all U.S. employees;
•No perquisites are provided; and
•There are no employment, severance, or change in control agreements with any employees, including executive officers.
The base salaries for Mr. Florness, Mr. Lewis, and Mr. Miller were increased in 2019 in recognition of their continued growth, performance, and experience in their roles. The base salaries for our other named executive officers for 2019 were unchanged from those in effect at the end of 2018.
Our company pays our named executive officers cash incentive bonuses each quarter if we exceed 100% of pre-tax earnings (or, for the chief financial officer, net earnings) for the comparable quarter of the previous year. This cash incentive plan is very clear and simple, in that cash incentive bonuses are paid as a percentage of earnings in excess of the minimum targeted amounts. Our payouts are calculated on a quarterly basis, and the quarterly minimum targets are discussed in greater detail in the section titled 'Quarterly Incentives' below. An additional bonus program was in effect for 20192022 and is described under '2019'2022 Incentive Program' below.
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The table below sets out certain financial information for the company for each of the past three years and includes our actual annual pre-tax earnings and net earnings on a company-wide basis and an annualized calculation of our minimum target pre-tax earnings and net earnings on a company-wide basis. As noted above, bonuses for our named executive officers are determined and paid out on a quarterly basis; however, we felt an annualized depiction would more clearly illustrate the philosophy underlying the bonus component of our compensation program.
2019% change2018% change2017% change2022% change2021% change2020% change
Net sales$5,333,730,000
7.4%$4,965,116,000
13.1%$4,390,484,000
10.8%Net sales$6,980,647,000 16.1 %$6,010,851,000 6.4 %$5,647,403,000 5.9 %
Pre-tax earnings1,043,661,000
5.7%987,016,000
13.0%873,080,000
10.6%Pre-tax earnings1,439,951,000 19.2 %1,207,818,000 6.6 %1,132,686,000 8.5 %
Pre-tax percent of sales19.6% 19.9% 19.9% Pre-tax percent of sales20.6%20.1%20.1%
Net earnings$790,893,000
5.2%$751,886,000
29.9%$578,601,000
15.8%Net earnings$1,086,891,000 17.5 %$924,978,000 7.7 %$859,063,000 8.6 %
Pre-tax earnings minimum target (1)
$987,016,000
 $873,080,000
 $789,729,000
 
Pre-tax earnings minimum target (1)
$1,207,818,000 $1,132,686,000 $1,043,661,000 
Actual pre-tax earnings less the      
minimum target$56,645,000
 $113,936,000
 $83,351,000
 
Actual pre-tax earnings less the minimum targetActual pre-tax earnings less the minimum target$232,133,000 $75,132,000 $89,025,000 
Net earnings minimum target (1)
$751,886,000
 $578,601,000
 $499,478,000
 
Net earnings minimum target (1)
$924,978,000 $859,063,000 $790,893,000 
Actual net earnings less the      
minimum target (2)
$39,007,000
 $173,285,000
 $79,123,000
 
Actual net earnings less the
minimum target
Actual net earnings less the
minimum target
$161,913,000 $65,915,000 $68,170,000 
(1)Pre-tax and net earnings targets were calculated as 100% of the prior year's actual pre-tax or net earnings.
(2)In calculating Mr. Lewis' bonuses for the second and third quarters of 2019, which are based on net earnings, the actual net earnings for such quarters in 2018 were adjusted to exclude the impact of the one-time tax benefit of accelerated depreciation for vending equipment, maintenance, and repairs that resulted from the Tax Cuts and Jobs Act (the 'Tax Act'). In addition, the bonuses for the fourth quarter of 2017 and each quarter of 2018 for Mr. Lewis were modified to give effect to the unanticipated positive impact of the Tax Act on net earnings, as further described below.
(1)Pre-tax and net earnings targets were calculated as 100% of the prior year's actual pre-tax or net earnings.
Stock option grants were made in 20192022 to all of our named executive officers.
In deciding to continue our existing executive compensation practices in 20192022 in a manner largely consistent with 2018,2021, our compensation committee took into account the fact that the holders of approximately 95%93% of the shares voted at our 20192022 annual meeting of shareholders approved, on an advisory basis, the compensation of our named executive officers in 20182021 as disclosed in the proxy statement for the 20192022 annual meeting.

Mitigation of Compensation-Related Risk
The company's compensation committee, in concert with management, has examined the company's compensation policies, plans, and practices to determine if they create incentives or encourage behavior that is reasonably likely to have a material adverse effect on the company. In conducting this examination, the compensation committee and management have reviewed the company's compensation plans and programs, including incentive bonus and equity award plans, and evaluated the impact of such plans and programs in terms of business risk and the mitigating controls in place to manage those risks. Such controls include:
•Approval by our board of directors and the compensation committee of significant compensation plans and programs;
•Oversight by the compensation committee of compensation plans and programs for executive management employees, including approval of incentive plan goals, review of actual performance against goals, and approval of award payouts;
•Regular scrutiny of performance and compliance with policies and procedures by senior executive managers responsible for specific business areas;
•Ongoing monitoring of specific asset areas by regional finance managers, and by internal audit and finance department personnel;
•The design of our executive cash incentive arrangements, which (i) by focusing on quarterly growth in profits, provides executives with the immediate feedback necessary to take prompt action to correct unacceptable financial results and the motivation to take such action, and (ii) by using actual profits in current periods, rather than projected profits, as the basesbasis for setting the minimum performance targets in future periods, reduces the incentive to manipulate results, as any overstated profits, giving rise to increased bonuses, in one year would result in overstated minimum targets, giving rise to reduced bonuses, in the next year; and
•Longer than typical vesting periods for equity-based compensation that encourage long-term perspectives among employees.
Because of the controls in place, we have concluded that there are no unmitigated risks created by the company's compensation policies, plans and practices that create incentives or encourage behavior that are reasonably likely to have a material adverse effect on the company.
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Underlying Philosophy
Equitable Treatment and Entrepreneurial Culture
Companies succeed to the extent that all persons in the organization pursue a common goal. Fastenal's goal is simple - Growth through Customer Service®. We keep everyone focused on this common goal by treating everyone fairly and equitably. We believe all of our people are 'key people' in the achievement of our success and that belief is reflected in our compensation system. By striving for fair and equitable treatment for all employees, everyone can stay focused on the common goal of growing our business by serving the customer.
Equitable treatment does not mean equal compensation. Compensation will be fair, but not the same for everyone, if it is based on an employee's knowledge and responsibilities, the difficulty of the task being performed by the employee, and the leadership requirements of the employee's position. The reward system must be designed to keep everyone focused on our common goal, yet developed in such a manner so as to mitigate unnecessary risk taking. With this in mind, our compensation program is designed to be simple, understandable, and transparent to all.
We are a decentralized company with decisions made by those closest to our customer. We minimize central planning as we believe it stifles the creativity of our people and because it is, quite frankly, too slow. To mitigate and control risk, we teach our employees to make decisions within the framework of the company goal - Growth through Customer Service. This structure has been developed from the ground up, not top down, and it continues to change as needed to meet customer needs, hence focusing on 'growing the business'.
To best achieve success, we expect and encourage our people to take entrepreneurial risk. People are hired because of their entrepreneurial attitudes and we encourage and reward this important mindset. We think of our business as being approximately 3,2003,300 highly orchestrated local businesses working in concert. Our organization is structured to serve our customers and achieve Growth through Customer Service. The highly motivated entrepreneurs running each of our
in-market locations make the daily decisions needed to serve our customers and to make themselves and the company successful, and those decisions directly impact the compensation of the individuals who make them. Our compensation system fosters entrepreneurship and progress toward our common goal of profitable growth by making the growth of our sales or profits a key element of the payment formula for most bonuses. The feeling of ownership, propelled by our compensation programs, is an important characteristic that drives our success.

Our people are motivated by the knowledge that if they work hard and demonstrate their creativity and contribute to our success, the opportunities are significant. Incentive compensation, quickly paid, is an important part of the reward structure in our company.
Simplicity, Transparency, and Immediacy
We believe that compensation programs are most effective if they are simple, concise, understandable, and openly communicated.transparent. In that regard, we do not have an elaborate compensation system with many different components, and the few elements of our compensation system are simple and easy for our employees - the people we need to motivate to achieve our success - and our shareholders to understand. We believe that a more complex compensation system would risk distracting our employees from the common goal of profitably growing our business. In addition, we have systems in place that let our employees know, on a daily basis, how their business is performing compared to other businesses within our organization and how that performance impacts their compensation.
We pay cash bonuses as close as we can to the time when the work is performed and results are achieved. Generally, we pay bonuses for performance achievement on a monthly or quarterly basis. We don'tdo not wait until the end of the year, or several years. We believe that quick payment of cash bonuses serves to motivate our people and limit business risk. In our line of business, undue risk manifests itself quickly in unacceptable financial results, and our compensation system is designed to ensure that unacceptable financial results are immediately reflected in our peoples' compensation so as to provide them with the feedback and motivation necessary to take prompt corrective action. Our entrepreneurial environment, where individual and independent decisions are encouraged and where the results of such actions are rewardeddictate opportunities for advancement and penalized,monetary reward, means our people immediately feelquickly experience the effects of their decisions.
Compensation Program Goals and Objectives
Our goals and objectives in designing our compensation programs for all employees, including our executive officers, are to have programs that:
•Align the interests of our employees with those of our shareholders;
•Are simple, understandable, and transparent;
•Are reasonable, fair and equitable, to both the employees and shareholders;
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•Reflect compensation differences based on position and responsibility, providing more variable and contingent compensation to those with greater responsibilities;
•Pay bonuses quickly; and
•Achieve overall compensation levels that are sufficiently competitive to retain, attract, and motivate all employees, and reflect their responsibilities.
Our compensation programs are designed to reward:
•Achievement of stated goals, targets, and superior results necessary to profitably grow our business;
•A focus on Growth through Customer Service;
•An entrepreneurial mindset;
•Personal growth and assumption of additional responsibilities; and
•Prudent management of business risk.
We do not use the services of outside consultants to establish or monitor our compensation programs.
How Employees are Compensated
Approximately 72%71% of our employees interface directly with customers on a daily basis. Our goal with respect to compensation of these employees is simple: a significant portion of their pay should be based on how well they have grown their piece of the business and served our customers. Typical pay arrangements provide a base amount paid periodically during the month, along with a major opportunity to earn bonus amounts, paid monthly, based on growth in sales, gross profit achieved, the opening of new accounts, increase in sales to active accounts, prudent management of inventory levels, and collections of accounts receivable. We believe our combination and mix of base and bonus pay motivates our people to high levels of individual and company success, as the goals and objectives have been repeatedly demonstrated to be achievable with superior effort.
Of the remaining approximately 28%29% of our employees, many are similarly compensated for their contribution to attaining predetermined departmental or project and cost containment goals, most focused on either customer service or better execution of company-wide activities. In these cases, the incentives are paid as soon as possible upon attainment of the goal. Again, the goals and objectives are clearly communicated and the resources for success are provided.

Because we believe the growth in the company's stock value should be the reward for achieving long-term success consistent with being an owner, we have a stock option plan. Since certain of our foreign employees are unable to receive stock options due to legal restrictions, we also have a stock appreciation rights plan for those foreign employees. Stock appreciation rights granted under that plan are settled in cash. All of our employees are eligible to receive stock option grants or stock appreciation rights. However, in order to ensure that such grants are sufficiently meaningful so as to incentivize performance, they have traditionally been awarded to employees who have achieved the level of District Manager or equivalent within our organization.
We believe our combination of short and long-term rewards and incentives has proven successful as reflected in our historic performance and acceptable levels of employee retention and turnover.
Management's Role in Setting Executive Compensation
Management plays an important role in our executive compensation setting process. The most significant aspects of management's role are:
•Evaluating employee performance;
•Recommending business performance targets and objectives; and
•Recommending salary levels and option awards.
While the ultimate decisions regarding executive compensation are made by the compensation committee, our chief executive officer worked with our compensation committee in 20192022 in establishing the agenda and discussion surrounding executive compensation. During this process, the chief executive officer was asked to provide:
•The background information regarding our strategic objectives;
•His evaluation of the performance of our other executive officers; and
•Compensation recommendations as to other executive officers.
In setting the compensation level for our chief executive officer for 2019,2022, the compensation committee asked for and received input from him about what was reasonable and fair, yet challenging, in terms of setting performance goals. We respect our chief executive officer's knowledge of our business and industry; however, the final determination as to the compensation of our chief executive officer was made by the compensation committee after careful consideration of numerous factors.
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Change in Control Arrangements
We have no employment, severance, or change in control agreements with any of our executive officers. Our stock option plan provides that if the company is not the surviving or acquiring corporation in the event of a merger or similar transaction, then the vesting and exercisability of outstanding stock options will be accelerated only if the surviving or acquiring corporation does not assume or replace the outstanding options. The vesting and exercisability of outstanding options will also be accelerated in the event of a dissolution or liquidation of the company. The change in control provisions in our stock option plan are designed to ensure maximum flexibility for the company in the event of a merger or similar transaction, in that we can provide for the continuation of options if that is more attractive to potential acquiring companies or can provide for acceleration of vesting of options if we believe doing so would facilitate retention of critical employees during acquisition discussions, would better motivate management to obtain the highest price possible by aligning their interests more closely with those of our shareholders, or would otherwise benefit our shareholders and be fair to our employees.

Elements of Executive Compensation
Our executive compensation program has historically been comprised of four elements: base salary, quarterly incentives, equity-based long-term incentives, and other compensation. While all elements of our executive compensation program are intended to collectively achieve our overriding purpose of attracting, retaining, and motivating talented executives, the table below identifies the form and additional specific purposes of each element.
Compensation ComponentForm of CompensationPurpose
Base SalaryCash•Compensate each named executive officer relative to individual responsibilities, experience, and performance.
•Provide regular cash flow not contingent on short-term variations in company performance.
Quarterly IncentivesCash•Align compensation with our quarterly corporate financial performance.
•Reward achievement of short-term profit growth.
•Provide executives with a meaningful total cash compensation opportunity (base salary + quarterly bonuses).
Long-term IncentivesStock Options•Encourage long-term retention.
•Create a long-term performance focus.
•Align compensation with our long-term returns to shareholders.
•Provide executive ownership opportunities.
Other CompensationBenefits•Provide competitive retirement and health and welfare benefit plans generally available to all of our employees, including executive officers.
The philosophy and make-up of the program for compensating executives is similar to the philosophy and make-up of the programs for all other employees in that our executive incentive compensation programs are simple and transparent, and cash incentives earned by our executive officers are paid as close as possible to when the work is done. We do not have a specific policy for allocating compensation between short- and long-term components, or between cash and non-cash components. We utilize pay practices which we believe are fair and commensurate with the particular employee's level of responsibility and results achieved. We believe the aforementioned components provide a reasonable total compensation package for our executive officers.
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Base Salary
Because of our desire to emphasize those elements of compensation that are performance based, our practice has generally been to set base salary levels below the market median for each executive officer. In setting these salary levels for individual executives, we consider past performance, expected performance, experience of the individual executive, historical compensation levels, and competitive pay practices at the peer group of companies identified under 'Market Competitiveness Review' below. We also consider industry conditions and the overall effectiveness of our compensation program in achieving desired performance levels. Because of our 'pay for performance' mentality, this is the only material component of executive compensation that is not tied directly to our performance.
20192022 Base Salary
Our compensation committee established the base salary to be paid to each of our named executive officers for 20192022 at its last meeting in 2018.2021. The compensation committee determined the base salary of each of the named executive officers for 2019 would remain unchanged from that in effect at the end of 2018, except thatincreased the base salaries of Mr. Florness Mr. Lewis, and Mr. Miller were increasedLewis in recognition of their continued growth, performance, and experience in their roles. The committee otherwise maintained base compensation at levels for the other named executive officers consistent with 20182021 because the committee members believed those base pay levels were reasonable and reflective of our business model and culture, which puts greater emphasis on incentive pay.
Fastenal's performance was not a factor considered by the compensation committee in setting the annual base salaries of our named executive officers for 2019.2022.

20202023 Base Salary
Our compensation committee established the base salary to be paid to each of our named executive officers for 20202023 at its last meeting in 2019. The compensation committee increased the base salaries of Mr. Florness, Mr. Owen, and Mr. Miller for 2020 in recognition of their continued growth, performance, and experience in their roles.2022. The committee otherwise maintained base compensation levels for our named executive officers at levels consistent with 20192022 because the committee members believed those base pay levels were reasonable and reflective of our business model and culture, which puts greater emphasis on incentive pay.
Quarterly Incentives
Our executive officers are eligible for cash incentives through individual bonus arrangements based on improvements in the overall financial performance of the company and/or their respective areas of responsibility. The bonus arrangements provide our executive officers with the opportunity to earn a cash bonus for each quarter during a year when we increase our earnings above a predetermined minimum target.
The primary cash bonuses for all of our named executive officers other than our chief financial officer are based on growth in pre-tax earnings of the company and/or the officer's area of responsibility. The compensation committee selected pre-tax earnings as the appropriate metric for calculating cash bonuses for those officers because of the committee's belief that the focus of the named executive officers should be on profitability, which is the primary driver of shareholder value. The primary cash bonuses for our chief financial officer are based on growth in company-wide net earnings because his responsibilities allow him to affect our entire financial position including our tax position. The compensation committee believes that no named executive officer should earn a cash bonus under this program for a quarter unless financial performance has improved and therefore sets minimum targets for each quarter that are equal to the earnings achieved for the same quarter in the prior year. The compensation committee requires growth in earnings before any bonuses can be earned due to its belief that growth is achievable with superior effort and will generate the cash necessary to expand the company's operations in accordance with our business plans and increase shareholder value.
The payout percentage used to calculate the amount of each named executive officer's primary quarterly cash bonus reflects the officer's track record in his or her current position (i.e., newly promoted executives historically have had to prove themselves in their new positions before earning higher payout percentages) and relative ability to impact profitability.
We do not believe it is necessary for payouts under our primary executive cash incentive program to be capped, as cashCash bonus payments to our named executive officers are tied directly to our financial performance so that they increase only if and to the extent the company's profitability grows. Wegrows; therefore, we do not base thebelieve it is necessary for payouts under our primary executive cash incentives paidincentive program to our executive officers on multiple metrics since webe capped. We believe the current design of our executive bonus arrangements, along with our other controls, adequately mitigates risk and since the use of multiple metrics would not be in furtherance of our goal of keeping our compensation programs simple, understandable, and transparent, and would risk keeping our executives focused on things other than profitability, thereby depriving them of the clear feedback and motivation necessary to improve our bottom line. Therefore, we do not base these cash incentives on multiple metrics.
The compensation committee approvedOur named executive officers are each eligible for a supplemental return on assetsbonus program. The supplemental bonus program, known as the ROA (Return on Assets) Plan, is intended to encourage better management of accounts receivable, inventory, and vehicles and provides cash incentive amounts on a quarterly basis for 2019 thatasset management improvement over the same quarter in the prior fiscal year and is discussed under '2019 Incentive Program'described in more detail below.
2019
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2022 Incentive Program
The bonus arrangements for our named executive officers for 20192022 were approved by our compensation committee at its last meeting in 2018.2021. Consistent with prior years, the bonuses for 20192022 were based on growth in pre-tax earnings or net earnings of the company and/or the officer's area of responsibility. The bonuses for each quarter were determined by applying a payout percentage to the amount by which pre-tax earnings or net earnings exceeded 100% of pre-tax earnings or net earnings for the same quarter in 2018.2021. The compensation committee determined that the bonus formulaspayout percentages for each of the named executive officers for 20192022 would remain unchanged from those in effect at the end of 2018,2021, except that Mr. Owen'sFlorness' and Mr. Lewis' payout percentage waspercentages increased due to changes in his responsibilities. While the compensation committee otherwise maintained the bonus formulas for each other named executive officer consistent with 2018, it approved a supplemental bonus program for 2019 for each named executive officer other than Mr. Florness. The supplemental bonus program, known as the ROA (Return on Assets) Plan, is intended to encourage better managementrecognition of accounts receivable, inventory,their continued growth, performance, and vehicles and would provide cash incentive amounts on a quarterly basis for asset management improvement over the same quarterexperience in the prior fiscal year and is described in more detail below.their roles.

The specific bonus opportunities for our named executive officers are summarized in the table below. Each named executive officer's cash bonus for each quarter during 20192022 was determined by applying the payout percentage listed opposite his or her name below to the amount by which pre-tax earnings or adjusted net earnings of the company and/or the officer's area of responsibility for that quarter exceeded 100% of such earnings in the same quarter of 20182021 (the 'minimum target').    
NameEarnings TypePayout Percentage
Mr. FlornessCompany-wide pre-tax earnings1.25%1.75%
Mr. LewisCompany-wide net earnings0.90%1.00%
Mr. OwenCompany-wide pre-tax earnings0.85%1.00%
Mr. Miller (1)
Pre-tax earnings1.00% / 0.20%0.25%
Ms. WisecupCompany-wide pre-tax earnings0.65%
(1)The bonuses for Mr. Miller were based on growth in pre-tax earnings for the geographic areas under his leadership (Eastern United States), with the payout percentage applied to that growth of 1.00%, as well as growth in company pre-tax earnings, with the payout percentage applied to that growth of 0.20%.
(1)The bonuses for Mr. Miller were based on growth in pre-tax earnings for the geographic areas under his leadership (Eastern United States), with the payout percentage applied to that growth of 1.00%, as well as growth in company pre-tax earnings, with the payout percentage applied to that growth of 0.25%.
The following table sets out, for each quarter in 2019,2022, our actual and minimum target pre-tax earnings and actual and adjusted net earnings on a company-wide basis for that quarter, in each case rounded to the nearest thousand. (As indicated above, the 'minimum target' amount in 20192022 was 100% of such earnings in the same quarter of 2018.2021.)
2022Actual
Pre-tax Earnings		Minimum Target
Pre-tax Earnings		Actual
Net Earnings		Minimum Target
Net Earnings
First quarter$355,714,000 $277,921,000 $269,588,000 $210,616,000 
Second quarter380,745,000 315,236,000 287,102,000 239,709,000 
Third quarter375,316,000 316,113,000 284,595,000 243,474,000 
Fourth quarter328,177,000 298,548,000 245,606,000 231,179,000 
2019
Actual
Pre-tax Earnings
Minimum Target
Pre-tax Earnings
Actual
Net Earnings
Minimum Target
Net Earnings
 
First quarter$257,467,000
231,873,000
194,103,000
174,303,000
 
Second quarter271,378,000
265,961,000
204,593,000
201,470,000
(1) 
Third quarter278,351,000
259,480,000
213,488,000
195,810,000
(1) 
Fourth quarter236,465,000
229,703,000
178,708,000
168,698,000
 
(1)In calculating the changes in second and third quarter net earnings from 2018 to the comparable quarters in 2019 for purposes of determining Mr. Lewis’ bonuses for such quarters in 2019, the actual net earnings for such quarters in 2018 were adjusted to exclude the impact of the one-time tax benefit of accelerated depreciation for vending equipment, maintenance, and repairs for such quarters.
During 2019,2022, the approximate percentage of the actual and minimum pre-tax earnings of the company attributable to our operations in the geographic area under Mr. Miller's leadership was 43%45%.

As noted above, an additional short-term cash incentive bonus plan (the 'ROA Plan') was approved by the compensation committee for our named executives officers for 2019 that wasROA Plan, which is designed to encourage careful management of assets, namely accounts receivable, inventories, and pick-up trucks.trucks, for 2022 was approved by the compensation committee for our named executive officers. Quarterly bonuses would be payable pursuant to the planROA Plan if a specified level of improvement in asset management relative to the comparable prior year quarter was achieved. Improvement in asset management was assessed using a two-quarter average of total assets divided by the trailing 12-month net sales, which we refer to as the 'performance percentage.' If the performance percentage when compared to the prior year benchmark showed improvement at a level specified in the table below, the named executive officer would receive the corresponding bonus amount.
Improvement Amount ExceededBonus Payout
150 basis points$15,000 
100 basis points (but less than 150 basis points)$10,000 
50 basis points (but less than 100 basis points)$5,000 
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Improvement Amount ExceededBonus Payout
150 basis points$15,000
100 basis points (but less than 150 basis points)$10,000
50 basis points (but less than 100 basis points)$5,000

In addition, for each whole percentage improvement (e.g., 41.0%, 40.0%, 39.0%, etc.) a $10,000 bonus would be payable for the quarter when the new whole percentage threshold was first achieved. Because we did not achieveWe achieved improvement exceeding 50 basis points in any quarter during fiscal 2019 and also did not achieve a new whole percentage threshold, nopaid bonus amounts were paid to our named executive officers, pursuant to the ROA Plan for each quarter in fiscal 2019.2022 as follows:
2020
2022Improvement Amount ExceededBonus Payout
First quarter—$— 
Second quarter—— 
Third quarter—— 
Fourth quarter50 basis points (but less than 100 basis points)5,000 
Total$5,000 
2023 Incentive Program
The bonus arrangements for our named executive officers for 20202023 were approved by our compensation committee at its last meeting in 2019.2022. The bonus plans for our named executive officers for 20202023 are unchanged from our 20192022 bonus plans,

except that Mr. Florness' bonus percentage increased in recognitionLewis' payout structure was changed to align a portion of his continued growth, performance, and experience in his role and Mr. Owen’s bonus percentages increased dueprogram with the programs for our other named executive officers. More specifically, a component was added to changes in his responsibilities.place greater emphasis on pre-tax earnings growth.
Long-term Incentives
We tie a portion of our employee compensation to the market price of Fastenal's common stock by granting stock options pursuant to ourthe Fastenal Company Stock Option Plan, as amended and restated (the stock option plan.plan). The equity-based incentives that can be granted under that plan are limited to stock options in an effort to further our goal of keeping our compensation system simple and easy to understand, and because stock options deliver value to our employees only if our shareholders realize appreciation in the value of their shares held over the same period.
Due to legal restrictions, we are unable to grant options under our stock option plan to certain of our foreign employees. As a result, those employees (none of whom are executive officers) are instead eligible to receive stock appreciation rights under a separate plan. The stock appreciation rights have been designed to mirror the economic rewards of our stock options in all material respects. All of those stock appreciation rights are settled in cash.
All of our employees are eligible to receive equity-based grants. When making grants, including to named executive officers, we consider an employee's contribution to the company, including the employee's responsibility for revenues and profits, responsibility for managing others, possession of special skills, and length of service. We regularly assess the effectiveness of further expanding the number of persons receiving equity-based grants. Any expansion will be based on a determination that further employee ownership will result in a deepened employee commitment and likely improvement to overall shareholder value.
During 2019,2022, our compensation committee granted stock options to our employees under our stock option plan for a total of 1,287,914660,083 shares of our common stock with a strikean exercise price of $26.00$62.00 per share. Of these grants, options to purchase an aggregate of 194,61095,240 shares were awarded to our named executive officers. Stock option grants were made in 20192022 to all of our named executive officers.
Our stock option grants have been made at levels designed to provide recipients with an attractive capital accumulation opportunity should earnings and shareholder values grow at acceptable rates and to facilitate retention of critical employees. Of the 25,450,37827,702,627 total shares subject to stock options granted by the company under our stock option plan since April 2007, options covering an aggregate of 5,241,4664,106,149 shares are either held by, or have been exercised by, our current executive officers. The stock options granted to executive officers vest and become exercisable over a period of five or eight years from the date of grant, with such staggered vesting designed to ensure continuity of leadership.
At its last meeting in 2019,2022, the compensation committee granted to our employees, effective January 2, 2020,3, 2023, options to purchase a total of 877,2991,001,381 shares of our common stock at a strikean exercise price of $38.00$48.00 per share. Of those grants, options to purchase an aggregate of 151,576155,676 shares were awarded to our named executive officers. Since 2018, the committee has expanded the grant typically made to our regional and district leaders. This grant was expanded to those leaders if their business met a minimum size and enjoyed double digit sales and pre-tax earnings growth in the twelve-month period prior to the grant. The change, made at the request of our Chief Executive Officer,chief executive officer, was intended to emphasize the importance of strong growth in a Think Big! business.
In 2017, we establishedWe have stock ownership guidelines for our non-employee directors and executive officers, which require each to hold minimum levels of investment in the company. The stock ownership guidelines are further described below.
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Other Compensation
We make annual profit-based matching contributions to our executive officers' 401(k) plan accounts. We allocate the annual profit-based matching contributions made to all employees participating in our 401(k) plan, including our executive officers, based on the same formula. Our executive officers are also entitled to participate in the same health and welfare plans as those made available to our employees generally. Our executive officers do not receive any other perquisites or other personal benefits or property from us.
Market Competitiveness Review
In making executive compensation decisions, both with respect to total compensation and individual elements of compensation, our compensation committee annually reviews executive compensation data based on external reports for a peer group of companies in order to stay informed of practices and executive pay levels in the marketplace. However, it does not establish specific compensation parameters based on such data, nor does it set the levels of compensation for our executive officers, or individual elements of that compensation, by applying any specific mathematical calculation to peer group compensation data.

20192022 Compensation Review
2022 Peer Group. As part of the decision makingdecision-making process with respect to 20192022 executive compensation, our compensation committee reviewed the executive compensation data of a peer group consisting of the following ten companies (Anixter International, Inc., Applied Industrial Technologies, Inc., Donaldson Company, Inc., (the 2022 peer group):
Applied Industrial Technologies, Inc.Nordson Corporation
Donaldson Company, Inc.O'Reilly Automotive, Inc.
Genuine Parts CompanyTractor Supply Company
IDEX CorporationWESCO International, Inc.
MSC Industrial Direct Co., Inc.W.W. Grainger, Inc.
For purposes of the 2022 peer group, the compensation committee removed HD Supply Holdings, Inc., IDEXwhich was acquired by Home Depot, Inc. in 2020, and replaced it with Nordson Corporation. We believe the addition of Nordson Corporation MSC Industrial Direct Co., Inc., Tractor Supply Company, WESCO International, Inc.,to the 2022 peer group adds a publicly-traded producer of industrial systems and W.W. Grainger, Inc.). products that are sold to a similar customer base to our own and which has a comparable business cycle, a similarly strong financial profile, and is geographically proximate.
The ten companies were included in our 2022 peer group because they exhibit commonalities withare similar to our business in terms of the end markets they serve and/or their operating characteristics (e.g., utilizingusing similar methods of sourcing, distributing, and selling), and because each had publicly available information.they are reasonably expected to be competing for a similar pool of potential employees. The median revenue of the 2022 peer group for 2018 was greater than Fastenal's and the median market capitalization of the 2022 peer group as of December 31, 20182021 was less than Fastenal's. The median revenue of the peer group was $6.2 billion (the range of the group was $2.5 billion to $18.3 billion)
Benchmarking for 2018, compared to Fastenal's $5.3 billion in 2019 and $5.0 billion in 2018, while the median market capitalization of the peer group was $6.5 billion (the range of the group was $2.0 billion to $16.3 billion) as of December 31, 2018, compared with Fastenal's $21.2 billion on December 31, 2019 and $14.9 billion on December 31, 2018.
2022. In comparing Fastenal's executive compensation levels to those of its 2022 peer group, the compensation committee looked at base salary, cash incentives, other compensation (which includes stock options, other types of equity compensation, pensions, and perquisites), and total compensation. At the timeIn December 2021, when the committee made decisions with respect to 20192022 executive compensation, the most recent year for which executive compensation data for the 2022 peer group was available was 2017. The2020. Based on the latest available data, the compensation committee determined that (i) the base salarysalaries of Fastenal's named executive officers in 2019 wasfor 2022 were lower than the median base salary of the named executive officers of the 2022 peer group, in 2017. Due to our slightly weaker financial results in comparison to prior years and our pay for performance philosophy,(ii) the cash incentive pay of Fastenal's named executive officers in 2019for 2022 was slightly lowerhigher than the median cash incentive pay of the named executive officers of the 2022 peer group, in 2017 (when financial results were comparatively higher acrossand (iii) the industry). The total compensation of Fastenal's named executive officers in 2019for 2022 was lower thangenerally consistent with the median total compensation of the named executive officers of the 2022 peer group.
The total compensation of Fastenal’s named executive officers for 2022 was generally consistent with the median total compensation of the 2022 peer group in 2017 due to the lower base salary, slightly lowerhigher cash incentive pay and lower grant date fair valueas a result of the equity compensation awarded to Fastenal's executives. It should be noted the compensation committee does not, inimproved company financial performance. In making compensation decisions for the named executive officers, the compensation committee does not focus on the grant date fair value of equity awards. Rather the committee makes its own internal judgments regarding the value of those awards and has concluded that the opportunity at the company for the creation of long-term stock value, driven by achieving consistent outstanding growth over an extended period of time, is significant. The company has historically achieved outstanding growth and the expectation of the committee in granting option awards is that, with superior efforts from our executives and other employees, outstanding growth can resume and continue in the future. Accordingly, the committee believes the aggregate annual compensation paid to our named executive officers can reasonably be expected to result in significant wealth creation.
2020
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2023 Compensation Review
2023 Peer Group. As part of the decision makingdecision-making process with respect to 20202023 executive compensation, our compensation committee reviewed executive compensation data of the samea peer group as was used inconsisting of the preceding year. Atfollowing ten companies (the 2023 peer group):
Applied Industrial Technologies, Inc.Nordson Corporation
Donaldson Company, Inc.O'Reilly Automotive, Inc.
Genuine Parts CompanyTractor Supply Company
IDEX CorporationWESCO International, Inc.
MSC Industrial Direct Co., Inc.W.W. Grainger, Inc.
Benchmarking for 2023. In December 2022, when the time thecompensation committee made decisions with respect to 20202023 executive compensation, the most recent year for which executive compensation data for the 2023 peer group was available was 2018.2021. Based on the committee's review of all factors, including the latest available 2023 peer group compensation data, the committee believes the aggregate annual compensation to be paid to our named executive officers for 2023 can reasonably be expected to result in significant overall wealth creation, and the committee believes our 20202023 compensation programs for our named executive officers will be fair, competitive, and sufficient to motivate them to achieve personal success and success for the company and its shareholders.
Executive Incentive Recoupment
In 2016, the compensation committee memorialized its long-standing policy providing that if the company's reported financial results for any period are determined to be incorrect due to material non-compliance with financial reporting requirements and the reported financial results benefited or were detrimental to executive officers participating in cash incentive programs, the compensation committee will, in the case of an underpayment of bonuses, pay those officers the incremental amount due for such period and, in the case of an overpayment of bonuses, reduce cash incentives for those officers in future periods to the extent necessary to enable the company to effectively recover amounts previously paid in error. If bonuses erroneously paid cannot be effectively recovered by the reduction of future bonuses, then the compensation committee may, at its discretion, reduce other elements of future executive compensation.
Section 10D of the Exchange Act directs the SEC to issue rules to require national securities exchanges and national securities associations to list only those companies that implement a policy providing that if the company is required to restate its financial statements due to material non-compliance with financial reporting requirements, the company must recover from current and former executive officers incentive compensation received by them during the three year period preceding the restatement that would not have been paid under the restated financial statements. OnceIn October 2022, the SEC adopted its final rules directing national securities exchanges to establish listing standards requiring listed companies to develop and implement policies providing for the recovery of certain incentive-based compensation. We are monitoring the

SEC actions of Nasdaq and Nasdaq regarding executive compensation recovery are adopted, we will modifyintend to revise our policy, or adopt an updated policy, to the extent necessary to fully comply with those rules.Nasdaq's listing standards in a timely manner.
Stock Ownership Guidelines
In December 2017, to align the financial interests of our executive officers and directors with our shareholders' interests, the compensation committee recommended, and ourOur board of directors adopted,believes that directors and executive officers should be shareholders of the company and should accumulate stock ownership guidelines to be effective as of January 1, 2018.whose value is set forth in the company's stock ownership guidelines. The guidelines require non-employee directors and each officer subject to Section 16 reporting requirements ('Section 16 officers') to achieve an equity ownership level equal to a value set forth in the following schedule:
Leadership PositionValue of Shares at 5 yearsValue of Shares at 10 years
Non-employee Director
1.0x annual board retainer

(excluding any board committee retainer)
2.0x annual board retainer

(excluding any board committee retainer)
CEO1.0x annual base compensation2.0x annual base compensation
President (if not also CEO)1.0x annual base compensation2.0x annual base compensation
All Senior Section 16* officers1.01.0x annual base compensation1.5x annual base compensation
All other Section 16 officers1.01.0x annual base compensation1.01.0x annual base compensation
*Defined as the Chief Financial Officer, a Senior Executive Vice President or Chief Operating Officer (if applicable)
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Each non-employee director and Section 16 officer is expected to achieve the equity ownership levels set forth above within five and ten years, measured either from the later of January 1, 2018 or the date such person was originally elected to the board or appointed as an executive officer. The compensation committee is responsible for monitoring the application of the stock ownership guidelines and has the discretion to waive or extend the time for compliance with the policy, or to withhold or reduce future awards of equity-based compensation to any person who fails to comply with the retention requirements set forth in the guidelines. At this time, all directors and Section 16 officers are in compliance with the guidelines outlined above.
Hedging Policies
As described earlier in this proxy statement, we have put in place policies prohibiting our directors and Section 16 officers from hedging the economic risk of ownership of our stock.
Deductibility of Executive Compensation
Section 162(m) of the Internal Revenue Code limits the amount Fastenal may deduct for compensation paid in any year to certain executive officers ('covered employees') to $1,000,000. Section 162(m) exempted qualifying performance-basedWhile our compensation with respectcommittee is mindful of the benefits to taxable years beginning on or before December 31, 2017 and payable pursuant to binding written agreementsus of the deductibility of executive compensation, it believes that we should compensate our executive officers in effect on November 2, 2017. Sincea manner that time, all compensation to covered employees has been subject to the $1,000,000 deduction limit.best promotes our corporate objectives.
Conclusion
Our compensation committee believes the combination of base salaries, individual performance based cash incentive arrangements, stock option awards, and other compensation, are fair and reasonable and that the interests of our executive officers are and will remain closely aligned with the long-term interests of Fastenal and our shareholders.

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Summary of Compensation
Set out in the following table is information with respect to the compensation of our named executive officers for services rendered during each of the last three years (principal positions are as of December 31, 2019)2022):
SUMMARY COMPENSATION TABLE
Name and Principal PositionYearSalary  ($) Bonus  ($)Stock
Awards
($)
Option
Awards
($) (1)
Non-Equity
Incentive Plan
Compensation
($) (2)
All Other
Compensation
($) (3)
Total ($)
Daniel L. Florness2022750,000 (4)— — 617,802 4,068,500 3,308 5,439,610 
   President and2021717,500 (4)— — 538,313 1,165,000 2,801 2,423,614 
   Chief Executive Officer2020717,500 (4)— — 483,864 1,335,000 2,786 2,539,150 
Holden Lewis2022430,000 — — 142,313 1,624,000 3,308 2,199,621 
   Senior Executive Vice President and2021400,008 — — 119,625 633,100 2,801 1,155,534 
   Chief Financial Officer2020400,008 — — 107,523 668,800 2,786 1,179,117 
Terry M. Owen2022500,004 — — 220,645 2,327,000 3,308 3,050,957 
Senior Executive Vice2021500,004 — — 199,372 790,000 2,801 1,492,177 
President - Sales Operations2020500,004 — — 179,205 945,000 2,786 1,626,995 
Charles S. Miller2022430,008 189,742 1,665,442 3,308 2,288,500 
Senior Executive Vice2021430,008 — — 171,456 545,858 2,801 1,150,123 
President - Sales2020430,008 — — 154,117 441,755 2,786 1,028,666 
Reyne K. Wisecup2022450,008 (4)— — 132,381 1,514,300 — 2,096,689 
Senior Executive Vice President -2021442,508 (4)— — 119,625 527,500 — 1,089,633 
Human Resources2020442,508 (4)— — 107,523 633,500 — 1,183,531 
(1)This column sets out the grant date fair value of all option grants made during each respective year, without regard to subsequent forfeitures of those grants. We calculated this value in accordance with generally accepted accounting principles utilizing the assumptions set forth in the notes to our consolidated financial statements included in our 2022 annual report on Form 10-K.
(2)This column sets out cash bonuses earned (rather than paid) in the respective year.
(3)This column sets out our annual profit-based matching contribution under our 401(k) plan.
(4)This amount includes $50,000 paid to Mr. Florness and Ms. Wisecup in 2022, and $42,500 in both 2021 and 2020 in their capacity as one of our directors. See 'Corporate Governance and Director Compensation – Compensation of Our Directors' earlier in this document.
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Name and Principal Position YearSalary  ($) 
Bonus  ($) 
Stock
Awards
($)
Option
Awards
($) (1)
Non-Equity
Incentive Plan
Compensation
($)(2)
 
Change in
Pension Value
and Nonqualified
Deferred Compensation
Earnings ($)
All Other
Compensation
($)(3)
Total ($)
Daniel L. Florness 2019642,500
(4)—
 —
406,146
708,750
 —
2,547
1,759,943
   President and 2018592,500
(4)—
 —
410,317
1,423,750
 —
2,844
2,429,411
   Chief Executive Officer 2017592,500
(4)—
 —
402,125
1,041,901
 —
2,830
2,039,356
Holden Lewis 2019400,008
 —
 —
101,534
454,680
 —
2,547
958,769
   Executive Vice President and 2018350,000
 28,800
(5)—
100,300
639,900
 —
2,844
1,121,844
   Chief Financial Officer 2017320,004
 —
 —
214,469
494,136
 —
5,351
1,033,960
Terry M. Owen 2019430,000
 —
 —
145,534
481,950
 —
2,547
1,060,031
   Senior Executive Vice 2018430,000
 —
 —
156,829
911,200
 —
2,844
1,500,873
   President - Sales Operations 2017430,000
 —
 —
153,703
666,816
 —
2,830
1,253,349
Charles S. Miller 2019400,008
 —
 —
101,534
421,262
 —
2,547
925,351
   Senior Executive Vice 2018350,000
 —
 —
95,736
568,755
 —
2,844
1,017,335
   President - Sales 2017300,000
 —
 —
312,766
442,167
 —
2,830
1,057,763
Reyne K. Wisecup 2019442,508
(4)—
 —
101,534
368,550
 —
—
912,592
   Senior Executive Vice 2018442,508
(4)—
 —
109,417
740,350
 —
—
1,292,275
   President - Human Resources 2017434,816
(4)—
 —
142,976
416,760
 —
—
994,552
(1)This column sets out the grant date fair value of all option grants made during each respective year, without regard to subsequent forfeitures of those grants. We calculated this value in accordance with generally accepted accounting principles utilizing the assumptions set forth in the notes to our consolidated financial statements included in our 2019 annual report on Form 10-K.
(2)This column sets out cash bonuses earned (rather than paid) in the respective year.
(3)This column sets out our annual profit-based matching contribution under our 401(k) plan, and, in the case of Mr. Lewis, a reimbursement of moving expenses of $5,351 in 2017.
(4)This amount includes $42,500 paid to Mr. Florness and Ms. Wisecup in each of the years 2019, 2018, and 2017 in their capacity as one of our directors. See 'Corporate Governance and Director Compensation – Compensation of Our Directors' earlier in this document.
(5)The bonus amount represents discretionary cash bonuses awarded to Mr. Lewis to recognize his efforts to realize tax benefits for Fastenal in an aggregate amount of $11,519,942 in 2018 related to accelerated depreciation for vending equipment, maintenance, and repairs. The bonuses reflected above represent 0.25% of the tax benefit to Fastenal.


Grant of Plan-Based Awards
Set out in the following table is information with respect to awards, if any, for 20192022 to our named executive officers under our cash incentive and stock option plan.
GRANT OF PLAN-BASED AWARDS
Estimated Possible Payouts Under
Non-Equity Incentive Plan Awards (1)		Estimated Future Payouts
Under
Equity Incentive Plan
Awards (1)		All
Other Stock Awards: Number of
Shares of Stock or
Units (#)		All Other Option  Awards: Number of
Securities Underlying
Options (#) (4)		Exercise or
Base Price of Option
Awards
($ / Sh)		Grant Date
Fair Value of Stock
and
Option Awards
($) (5)
NameGrant DateThreshold
($) (2)		Target
($) (3)		Maximum
($) (2)		Threshold
(#)		Target
(#)		Maximum
(#)
Daniel L. Florness1/3/2022— 1,352,500 — — — — — 45,161 62.00 617,802 
Holden Lewis1/3/2022— 699,000 — — — — — 10,403 62.00 142,313 
Terry M. Owen1/3/2022— 790,000 — — — — — 16,129 62.00 220,645 
Charles S. Miller1/3/2022— 545,858 — — — — — 13,870 62.00 189,742 
Reyne K. Wisecup1/3/2022— 527,500 — — — — — 9,677 62.00 132,381 
  
Estimated Possible Payouts Under
Non-Equity Incentive Plan Awards (1)
 
Estimated Future Payouts
Under
Equity Incentive Plan
Awards (1)
All
Other Stock Awards: Number of
Shares of Stock or
Units (#)
All Other Option  Awards: Number of
Securities Underlying
Options (#)(4)		 
Exercise or
Base Price of Option
Awards
($ / Sh)
Grant Date
Fair Value of Stock
and
Option Awards
($) (5)
Name
Grant
Date
Threshold
($) (2)
Target
($) (3)
Maximum
($) (2)
 
Threshold
($)
Target
($)
Maximum
($)
 
Daniel L. Florness1/2/2019—
1,423,750
—
 —
—
—
—
92,306
 26.00
406,146
Holden Lewis1/2/2019—
639,900
—
 —
—
—
—
23,076
 26.00
101,534
Terry M. Owen1/2/2019—
968,150
—
 —
—
—
—
33,076
 26.00
145,534
Charles S. Miller1/2/2019—
653,655
—
 —
—
—
—
23,076
 26.00
101,534
Reyne K. Wisecup1/2/2019—
740,350
—
 —
—
—
—
23,076
 26.00
101,534
(1)The awards under the cash bonus arrangements for each of the named executive officers were payable at the end of each fiscal quarter based on financial results for that fiscal quarter, and none of those awards could result in future payouts. The cash bonus formulas for each of the named executive officers are described above in 'Compensation Discussion and Analysis – Quarterly Incentives – 2019 Incentive Program'. The actual amounts earned during 2019 under these cash bonus arrangements by the named executive officers are reported in the 'Summary Compensation Table' column captioned
(1)The awards under the cash bonus arrangements for each of the named executive officers were payable at the end of each fiscal quarter based on financial results for that fiscal quarter, and none of those awards could result in future payouts. The cash bonus formulas for each of the named executive officers are described above in 'Compensation Discussion and Analysis – Quarterly Incentives – 2022 Incentive Program'. The actual amounts earned during 2022 under these cash bonus arrangements by the named executive officers are reported in the 'Summary Compensation Table' column captioned 'Non-Equity Incentive Plan Compensation'.
(2)There were no thresholds or maximum payouts under the 2019 cash bonus arrangements.
(3)The target payouts were calculated by applying the payout percentages for the named executive officers in effect at the end of each quarter of 2019 to the amount by which pre-tax or net earnings in the same quarter of 2018 exceed 100% of pre-tax or net earnings in the same quarter of 2017.
(4)This column sets out the number of shares subject to options granted during 2019. The options will vest and become exercisable over a period of five years, with 40% of such options vesting and becoming exercisable two years following the grant date and the remainder vesting and becoming exercisable in proportional increments (20%, 20%, and 20%) each year thereafter. The options will terminate, to the extent not previously exercised, approximately nine years after the grant date.
(5)This column sets out the grant date fair value of all options granted during 2019. We calculated this value in accordance with generally accepted accounting principles utilizing the assumptions set forth in the notes to our consolidated financial statements included in our 2019 annual report on Form 10-K.


(2)There were no thresholds or maximum payouts under the 2022 cash bonus arrangements.
(3)The target payouts were calculated by applying the payout percentages for the named executive officers in effect at the end of each quarter of 2022 to the amount by which pre-tax or net earnings in the same quarter of 2021 exceed 100% of pre-tax or net earnings in the same quarter of 2020.
(4)This column sets out the number of shares subject to options granted during 2022. The options will vest and become exercisable over a period of five years, with 40% of such options vesting and becoming exercisable two years following the grant date and the remainder vesting and becoming exercisable in proportional increments (20%, 20%, and 20%) each year thereafter. The options will terminate, to the extent not previously exercised, approximately ten years after the grant date.
(5)This column sets out the grant date fair value of all options granted during 2022. We calculated this value in accordance with generally accepted accounting principles utilizing the assumptions set forth in the notes to our consolidated financial statements included in our 2022 annual report on Form 10-K.

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Outstanding Equity-Based Awards
Set out in the following table is information with respect to each named executive officer's outstanding equity awards as of the end of 2019.2022. The equity awards consist solely of options granted under our existing stock option plan.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
 Option AwardsStock Awards
NameNumber of
Securities
Underlying
Unexercised
Options
(#)		Number of
Securities
Underlying
Unexercised
Options
(#)		Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)		Option
Exercise
Price
($)		Option  Grant
Date		Option
Expiration
Date (1)		Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)		Market
Value of
Shares or
Units of
Stock  That
Have Not
Vested
($)		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
($)
ExercisableUnexercisable
Daniel L. Florness50,000 — — 23.00 4/19/20165/31/2025(2)— — — — 
95,744 — — 23.50 1/3/201712/31/2026(2)— — — — 
65,454 16,364 — 27.50 1/2/201812/31/2027(2)— — — — 
55,382 36,924 — 26.00 1/2/201912/31/2028(2)— — — — 
28,421 42,631 — 38.00 1/2/202012/31/2029(2)— — — — 
— 56,250 — 48.00 1/4/202112/31/2030(2)— — — — 
— 45,161 — 62.00 1/3/202212/31/2031(2)— — — — 
Holden Lewis51,064 — — 23.50 1/3/201712/31/2026(2)— — — — 
16,000 4,000 — 27.50 1/2/201812/31/2027(2)— — — — 
13,844 9,232 — 26.00 1/2/201912/31/2028(2)— — — — 
6,316 9,473 — 38.00 1/2/202012/31/2029(2)— — — — 
— 12,500 — 48.00 1/4/202112/31/2030(2)— — — — 
— 10,403 — 62.00 1/3/202212/31/2031(2)— — — — 
Terry M. Owen15,000 — — 28.00 4/22/20145/31/2023(3)— — — — 
83,332 — — 21.00 4/21/20155/31/2024(2)— — — — 
65,216 — — 23.00 4/19/20165/31/2025(2)— — — — 
36,596 — — 23.50 1/3/201712/31/2026(2)— — — — 
25,018 6,254 — 27.50 1/2/201812/31/2027(2)— — — — 
19,844 13,232 — 26.00 1/2/201912/31/2028(2)— — — — 
10,526 15,789 — 38.00 1/2/202012/31/2029(2)— — — — 
— 20,833 — 48.00 1/4/202112/31/2030(2)— — — — 
— 16,129 — 62.00 1/3/202212/31/2031(2)— — — — 
Charles S. Miller— 744 — 21.00 4/21/20155/31/2024(3)— — — — 
7,772 3,818 — 27.50 1/2/201812/31/2027(2)— — — — 
13,844 9,232 — 26.00 1/2/201912/31/2028(2)— — — — 
9,053 13,578 — 38.00 1/2/202012/31/2029(2)— — — — 
— 17,916 — 48.00 1/4/202112/31/2030(2)— — — — 
— 13,870 — 62.00 1/3/202212/31/2031(2)— — — — 
Reyne K. Wisecup19,564 — — 23.00 4/19/20165/31/2025(2)— — — — 
34,042 — — 23.50 1/3/201712/31/2026(2)— — — — 
17,454 4,364 — 27.50 1/2/201812/31/2027(2)— — — — 
13,844 9,232 — 26.00 1/2/201912/31/2028(2)— — — — 
6,316 9,473 — 38.00 1/2/202012/31/2029(2)— — — — 
— 12,500 — 48.00 1/4/202112/31/2030(2)— — — — 
— 9,677 — 62.00 1/3/202212/31/2031(2)— — — — 
(1)For the options that vest over a period of five years, that are not fully vested, such options will become 40% vested and exercisable two years following the grant date and the remainder will vest and become exercisable in proportional increments (20%, 20% and 20%) each year thereafter. For the options that vest over a period of eight years, such options will become 50% vested and exercisable four years following the grant date and the remainder will vest and becoming exercisable in proportional increments (12.50%, 12.50%, 12.50% and 12.50%) each year thereafter.
(2)This option will vest and become exercisable over a period of five years.
(3)This option will vest and become exercisable over a period of eight years.
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  Option Awards Stock Awards
Name Number of
Securities
Underlying
Unexercised
Options
(#)		 Number of
Securities
Underlying
Unexercised
Options
(#)		 
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
 
Option
Exercise
Price
($)
 
Option  Grant
Date
 
Option
Expiration
Date (1)
 
Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)
 
Market
Value of
Shares or
Units of
Stock  That
Have Not
Vested
($)
 
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
($)
 Exercisable Unexercisable        
Daniel L. Florness 7,500
 12,500
 —
 27.00
 4/17/2012 5/31/2021(2)—
 —
 —
 —
  34,284
 3,810
 —
 21.00
 4/21/2015 5/31/2024(3)—
 —
 —
 —
  182,608
 78,260
 —
 23.00
 4/19/2016 5/31/2025(3)—
 —
 —
 —
  38,298
 57,446
 —
 23.50
 1/3/2017 12/31/2026(3)—
 —
 —
 —
  —
 81,818
 —
 27.50
 1/2/2018 12/31/2027(3)—
 —
 —
 —
  —
 92,306
 —
 26.00
 1/2/2019 12/31/2028(3)—
 —
 —
 —
Holden Lewis 20,426
 30,638
 —
 23.50
 1/3/2017 12/31/2026(3)—
 —
 —
 —
  —
 20,000
 —
 27.50
 1/2/2018 12/31/2027(3)—
 —
 —
 —
  —
 23,076
 —
 26.00
 1/2/2019 12/31/2028(3)—
 —
 —
 —
Terry M. Owen 626
 624
 —
 27.00
 4/17/2012 5/31/2021(2)—
 —
 —
 —
  9,376
 5,624
 —
 28.00
 4/22/2014 5/31/2023(2)—
 —
 —
 —
  74,998
 8,334
 —
 21.00
 4/21/2015 5/31/2024(3)—
 —
 —
 —
  45,652
 19,564
 —
 23.00
 4/19/2016 5/31/2025(3)—
 —
 —
 —
  14,640
 21,956
 —
 23.50
 1/3/2017 12/31/2026(3)—
 —
 —
 —
  —
 31,272
 —
 27.50
 1/2/2018 12/31/2027(3)—
 —
 —
 —
  —
 33,076
 —
 26.00
 1/2/2019 12/31/2028(3)—
 —
 —
 —
Charles S. Miller —
 624
 —
 27.00
 4/17/2012 5/31/2021(2)—
 —
 —
 —
  2,976
 2,976
 —
 21.00
 4/21/2015 5/31/2024(2)—
 —
 —
 —
  3,804
 1,630
 —
 23.00
 4/19/2016 5/31/2025(3)—
 —
 —
 —
  29,788
 44,680
 —
 23.50
 1/3/2017 12/31/2026(3)—
 —
 —
 —
  —
 19,090
 —
 27.50
 1/2/2018 12/31/2027(3)—
 —
 —
 —
  —
 23,076
 —
 26.00
 1/2/2019 12/31/2028(3)—
 —
 —
 —
Reyne K. Wisecup 19,286
 2,142
 —
 21.00
 4/21/2015 5/31/2024(3)—
 —
 —
 —
  13,694
 5,870
 —
 23.00
 4/19/2016 5/31/2025(3)—
 —
 —
 —
  13,618
 20,424
 —
 23.50
 1/3/2017 12/31/2026(3)—
 —
 —
 —
  —
 21,818
 —
 27.50
 1/2/2018 12/31/2027(3)—
 —
 —
 —
  —
 23,076
 —
 26.00
 1/2/2019 12/31/2028(3)—
 —
 —
 —
(1)For the options that vest over a period of five years, such options will become 40% vested and exercisable two years following the grant date and the remainder will vest and become exercisable in proportional increments (20%, 20% and 20%) each year thereafter. For the options that vest over a period of eight years, such options will become 50% vested and exercisable four years following the grant date and the remainder will vest and becoming exercisable in proportional increments (12.50%, 12.50%, 12.50% and 12.50%) each year thereafter.
(2)This option will vest and become exercisable over a period of eight years.
(3)This option will vest and become exercisable over a period of five years.

Option Exercises
Set out in the following table is information regarding options to purchase Fastenal stock, if any, that have been exercised by our named executive officers during 2019.2022.
OPTION EXERCISES AND STOCK VESTED
Option Awards Stock Awards Option AwardsStock Awards
Name
Number of Shares
Acquired on Exercise (#)
 
Value Realized
on Exercise ($)
 
Number of Shares
Acquired on Vesting (#)
 
Value Realized
on Vesting ($)
NameNumber of Shares
Acquired on Exercise (#)		Value Realized
on Exercise ($)		Number of Shares
Acquired on Vesting (#)		Value Realized
on Vesting ($)
Daniel L. Florness80,000
 695,334
 —
 —
Daniel L. Florness— — — — 
Holden Lewis—
 —
 —
 —
Holden Lewis— — — — 
Terry M. Owen3,750
 31,163
 —
 —
Terry M. Owen— — — — 
Charles S. Miller4,376
 39,284
 —
 —
Charles S. Miller23,136 721,398 — — 
Reyne K. Wisecup75,000
 642,750
 —
 —
Reyne K. Wisecup— — — — 
Pension Benefits
SEC regulations state that we must disclose information in this proxy statement, in a tabular format, regarding any plans that provide for retirement payments or benefits other than defined contribution plans. We have never had any such benefit plan and do not anticipate creating any such plan in the future. As a result, we have omitted this table.
Non-Qualified Deferred Compensation
SEC regulations state that we must disclose information in this proxy statement, in a tabular format, regarding defined contribution or other plans that provide for deferral of compensation on a basis that is not tax-qualified. We have never had any such benefit plan and do not anticipate creating such a plan in the future. As a result, we have omitted this table.

-36-
Potential Payments upon Termination or Change-in-Control
SEC regulations state that we must disclose information in this proxy statement regarding agreements, plans or arrangements that provide for payments or benefits to our executive officers in connection with any termination of employment or change in control of Fastenal. We are not parties to any such agreement, plan or arrangement other than our stock option plan, which provides that, if Fastenal is not the surviving or acquiring corporation in the event of a merger or similar transaction, then the vesting and exercisability of outstanding stock options will be accelerated only if the surviving or acquiring corporation does not assume or replace the outstanding options. The vesting and exercisability of outstanding options will also be accelerated in the event of the dissolution or liquidation of Fastenal. If any such transaction or event had occurred on December 31, 20192022 and the price per share of our common stock payable in connection with such transaction or event equaled the closing sales price of a share of our common stock on the Nasdaq Stock Market on such date (which was $36.95$47.32 per share), and if the vesting and exercisability of all options had been accelerated in connection with such transaction or event, then each of our named executive officers would have received the following payments in respect of their options (assuming full exercise of the same):
NameOption Grant DateOptions
Outstanding (#)		Option Exercise
Price ($)		Payment
Value ($)
Daniel L. Florness4/19/201650,000 23.001,216,000 
1/3/201795,744 23.502,280,622 
1/2/201881,818 27.501,621,633 
1/2/201992,306 26.001,967,964 
1/2/202071,052 38.00662,205 
1/4/202156,250 48.00— 
1/3/202245,161 62.00— 
Holden Lewis1/3/201751,064 23.501,216,344 
1/2/201820,000 27.50396,400 
1/2/201923,076 26.00491,980 
1/2/202015,789 38.00147,153 
1/4/202112,500 48.00— 
1/3/202210,403 62.00— 
Terry M. Owen4/22/201415,000 28.00289,800 
4/21/201583,332 21.002,193,298 
4/19/201665,216 23.001,586,053 
1/3/201736,596 23.50871,717 
1/2/201831,272 27.50619,811 
1/2/201933,076 26.00705,180 
1/2/202026,315 38.00245,256 
1/4/202120,833 48.00— 
1/3/202216,129 62.00— 
Charles S. Miller4/21/2015744 21.0019,582 
1/2/201811,590 27.50229,714 
1/2/201923,076 26.00491,980 
1/2/202022,631 38.00210,921 
1/4/202117,916 48.00— 
1/3/202213,870 62.00— 
Reyne K. Wisecup4/19/201619,564 23.00475,796 
1/3/201734,042 23.50810,880 
1/2/201821,818 27.50432,433 
1/2/201923,076 26.00491,980 
1/2/202015,789 38.00147,153 
1/4/202112,500 48.00— 
1/3/20229,677 62.00— 
-37-
NameOption Grant Date 
Options
Outstanding (#)
 
Option Exercise
Price ($)
 
Payment
Value ($)
Daniel L. Florness4/17/2012 20,000
 27.00 199,000
 4/21/2015 38,094
 21.00 607,599
 4/19/2016 260,868
 23.00 3,639,109
 1/3/2017 95,744
 23.50 1,287,757
 1/2/2018 81,818
 27.50 773,180
 1/2/2019 92,306
 26.00 1,010,751
Holden Lewis1/3/2017 51,064
 23.50 686,811
 1/2/2018 20,000
 27.50 189,000
 1/2/2019 23,076
 26.00 252,682
Terry M. Owen4/17/2012 1,250
 27.00 12,438
 4/22/2014 15,000
 28.00 134,250
 4/21/2015 83,332
 21.00 1,329,145
 4/19/2016 65,216
 23.00 909,763
 1/3/2017 36,596
 23.50 492,216
 1/2/2018 31,272
 27.50 295,520
 1/2/2019 33,076
 26.00 362,182
Charles S. Miller4/17/2012 624
 27.00 6,209
 4/21/2015 5,952
 21.00 94,934
 4/19/2016 5,434
 23.00 75,804
 1/3/2017 74,468
 23.50 1,001,595
 1/2/2018 19,090
 27.50 180,401
 1/2/2019 23,076
 26.00 252,682
Reyne K. Wisecup4/21/2015 21,428
 21.00 341,777
 4/19/2016 19,564
 23.00 272,918
 1/3/2017 34,042
 23.50 457,865
 1/2/2018 21,818
 27.50 206,180
 1/2/2019 23,076
 26.00 252,682

CEO Pay Ratio
We are providing the following information about the relationship of the annual total compensation of our employees and the annual total compensation of Daniel L. Florness, our Chief Executive Officerchief executive officer (our 'CEO'):
For 2019,2022, our last completed fiscal year:
•the total compensation amount for the median employee identified in 20172020 was $45,842$44,729 for 2019;2022; and
•the annual total compensation of our CEO, as reported in the Summary Compensation Table included on page 27 ofin this proxy statement, was $1,759,943.$5,439,610.
Based on this information for 2019,2022, we reasonably estimate that the ratio of our CEO's annual total compensation to the annual total compensation of our median employee was 38:122:1. Our pay ratio estimate has been calculated in a manner consistent with Item 402(u) of Regulation S-K.
We determined our median employee's total compensation, including any perquisites and other benefits, in the same manner that we determine the total compensation of our named executive officers for purposes of the Summary Compensation Table disclosed above. The total compensation amount for our median employee for 20192022 was determined to be $45,842.$44,729. This total compensation amount was then compared to the total compensation of our CEO disclosed above in the Summary Compensation Table, of $1,759,943.$5,439,610. The elements included in the CEO's total compensation are fully discussed above in the footnotes to the Summary Compensation Table.
Since there has been no change in our employee population or employee compensation arrangements that we reasonably believe would result in a significant change to our pay ratio disclosure included in our proxy statement for our last annual meeting of shareholders, we used the same median employee that we identified in 2017.
The methodology that we used to identify the median of the annual total compensation of all our employees in 2017,2020, and the material assumptions, adjustments, and estimates that we used for the identification of our median employee were as follows:
We determined that, as of October 31, 2017,2020, our employee population consisted of 20,73020,479 individuals (including full-time and part-time employees, other than the CEO, who were employed on October 31, 2017)2020, including employees on leave) working at Fastenal together with our consolidated subsidiaries. Of these individuals, 17,77316,949 were located in the U.S. and U.S. territories, and 2,9573,530 were located in 2627 other countries around the world.
The scale of our operations in many of these foreign countries is smaller, and in aggregate we employed less than 100 employees5% of our total workforce in 2324 of these 2627 countries, primarily as sales staff in our international branches or Onsite locations. Given the limited scale of this portion of our international operations, we chose to exclude all 646926 of our employees in these countries as follows:
CountryEmployees (#) CountryEmployees (#) CountryEmployees (#) CountryEmployees (#)CountryEmployees (#)CountryEmployees (#)CountryEmployees (#)CountryEmployees (#)
Austria5
 Germany31
 Netherlands40
 Sweden1
Austria16 France22 Malaysia105 Spain12 
BelgiumBelgium3 Germany47 Netherlands45 Sweden3 
Brazil44
 Hungary14
 Panama18
 Switzerland1
Brazil69 Hungary13 Panama20 Switzerland13 
Chile10
 India99
 Poland25
 Taiwan32
Chile18 India123 Poland41 Taiwan34 
Colombia5
 Ireland6
 Romania17
 Thailand11
Czech Republic49
 Italy30
 Singapore27
 United Kingdom73
Czech Republic72 Ireland9 Romania24 Thailand21 
Dominican Republic7
 Malaysia98
 South Africa3
  Dominican Republic10 Italy56 Singapore27 United Kingdom123 
In total, we excluded 3.12%4.52% of our workforce from the identification of the 'median employee', as permitted by SEC rules.
Our employee population, after taking into consideration the permitted adjustments described above, consisted of 20,08419,553 members. In making this determination, we annualized the compensation of all employees included in the sample who were hired in 20172020 but did not work for us or our consolidated subsidiaries for the entire twelve month period described below. Our adjusted employee population consisted of 17,77316,949 employees in the U.S. and U.S. territories and 2,3112,604 employees located in Canada, Mexico, and China, which are countries in which we employed more than 100 employees.China.
We identified our median employee based on the total cash compensation paid during the twelve month period ended October 31, 2017.2020. For purposes of determining the total compensation actually paid, we included: the amount of base salary (or, in the case of hourly workers, base wages including overtime pay) the employee received during the twelve months ended October 31, 2017,2020, and the amount of any cash incentives paid to the employee in such period (which include sales commissions as well as cash incentives that are generally paid for performance during the prior month or quarter), as reflected in our payroll records. For purposes of identifying the median employee, we applied the same exchange rates we used for financial statement conversion purposes at October 31, 2017,2020, which are U.S. dollars to Canadian dollars - 1.282741.33295 CAD; U.S. dollars to Chinese Yuan - 6.63376.6912 CNY; and U.S. dollars to Mexican Peso - 19.164221.1864 MXN.




-38-
Pay Versus Performance
Value of Initial Fixed $100 Investment (7) Based On:
Fiscal Year
Summary Compensation Table Total for PEO (1)
Compensation Actually Paid to PEO (2) (3)
Average Summary Compensation Table Total for non-PEO NEOs (4)
Average Compensation Actually Paid to non-PEO NEOs (2) (4) (5)
FAST Total Shareholder Return
S&P 500 Total Shareholder Return (6)
Net Earnings
Earnings Before Income Taxes (8)
2022$5,439,610 3,307,940 2,408,942 1,793,142 138 125 1,086.9 1,440.0 
2021$2,423,614 5,572,876 1,358,039 2,295,107 183 152 925.0 1,207.8 
2020$2,539,150 5,321,725 1,316,849 2,067,665 137 118 859.1 1,132.7 
(1)    The principal executive officer (PEO) is Daniel L. Florness, who began serving as our president and chief executive officer in January 2016.
(2)    We do not have pensions; therefore, an adjustment to the Summary Compensation Table (SCT) totals related to pension value for any of the years reflected in this table is not needed.
(3)    To calculate Compensation Actually Paid (CAP) for the PEO, the following adjustments were made to SCT total compensation, calculated in accordance with the SEC methodology for determining CAP for each year shown:
Equity Adjustment (all equity awards are stock options):
Fiscal Year (FY)
Fair Value of FY Equity Awards at FY (i)
Change in Value of Prior Years' Awards Unvested at FY (ii)
Change in Value of Prior Years' Awards that Vested in FY (iii)
Fair Value of Awards Forfeited in FY (iv)
Dividends Paid in FY on Unvested AwardsSCT Option AwardsEquity Adjustment to CAP
2022$334,128 (1,809,623)(38,373)— — (617,802)(2,131,670)
2021$1,155,736 2,449,408 82,431 — — (538,313)3,149,262 
2020$990,657 2,004,972 270,810 — — (483,864)2,782,575 
(i) Valued at the FY end.
(ii) Valued as of the end of the prior FY and as of the end of the current FY.
(iii) Valued as of the end of the prior FY and as of the vesting date.
(iv) Valued as of the end of the prior FY.
(4)    The non-PEO named executive officers (NEOs) represent the following individuals for each of the years shown:
•2022 – Holden Lewis, Senior Executive Vice President and Chief Financial Officer; Terry M. Owen, Senior Executive Vice President – Sales Operations; Charles S. Miller, Senior Executive Vice President – Sales; and Reyne K. Wisecup, Senior Executive Vice President – Human Resources.
•2021 – Holden Lewis, Executive Vice President and Chief Financial Officer; Jeffrey M. Watts, Executive Vice President – International Sales; Terry M. Owen, Senior Executive Vice President – Sales Operations; and William J. Drazkowski, Executive Vice President – Sales.
•2020 – Holden Lewis, Executive Vice President and Chief Financial Officer; Terry M. Owen – Senior Executive Vice President – Sales Operations; Jeffrey M. Watts, Executive Vice President – International Sales; and Reyne K. Wisecup, Senior Executive Vice President – Human Resources.
-39-
(5)    To calculate average CAP for the non-PEO NEOs, the following adjustments were made to SCT total compensation, calculated in accordance with the SEC methodology for determining CAP for each year shown:
Equity Adjustment (all equity awards are stock options):
Fiscal Year (FY)
Fair Value of FY Equity Awards at FY (i)
Change in Value of Prior Years' Awards Unvested at FY (ii)
Change in Value of Prior Years' Awards that Vested in FY (iii)
Fair Value of Awards Forfeited in FY (iv)
Dividends Paid in FY on Unvested AwardsSCT Option AwardsEquity Adjustment to CAP
2022$92,629 (511,988)(25,171)— — (171,270)(615,800)
2021$321,033 757,082 8,482 — — (149,529)937,068 
2020$266,006 596,562 18,173 — — (129,925)750,816 
(i) Valued at the FY end.
(ii) Valued as of the end of the prior FY and as of the end of the current FY.
(iii) Valued as of the end of the prior FY and as of the vesting date.
(iv) Valued as of the end of the prior FY.
(6)    The selected peer group is the S&P 500 Index.
(7)    The comparison of total shareholder returns assumes that $100 was invested on December 31, 2019 in Fastenal Company and the S&P 500 Index, and that dividends were reinvested when and as paid.
(8)    Our company-selected measure, which is the measure we believe represents the most important financial performance not otherwise presented in the table above that we use to link CAP to our NEOs for fiscal 2022 to our company's performance, is earnings before income taxes, a GAAP measure.
Required Tabular Disclosure of Most Important Measures to Determine FY2022 CAP
The items listed below represent the two financial metrics we used to determine CAP for FY2022 as further described in our Compensation Discussion and Analysis (CD&A) within the sections titled 'Quarterly Incentives' and 'Long-term Incentives'.
PEO (1)
Most Important
Performance Measures
CFO (2)
Most Important
Performance Measures
NEOs Except for CEO and CFO
Most Important
Performance Measures
Company-wide pre-tax earnings (3)
Company-wide net earnings
Company-wide pre-tax earnings (3)
Working capital management (the ROA plan) (4)
Working capital management (the ROA plan) (4)
Working capital management (the ROA plan) (4)
(1)    The PEO is Daniel Florness.
(2)    The CFO is Holden Lewis.
(3)    Company-wide pre-tax earnings is equal to earnings before income taxes on our consolidated statement of earnings.
(4)    See 'Quarterly Incentives' in the CD&A.
-40-
Graphical Representation of CAP and Performance
fast-20230223_g4.jpg
fast-20230223_g5.jpg
* * * * * * * * * *


PROPOSAL #4 - SHAREHOLDER PROPOSAL RELATING TO
DIVERSITY REPORTING
As You Sow, located at 2150 Kittredge St. Suite 450, Berkeley, CA 94720, has advised us that it plans to introduce the following resolution on behalf of Alan M. Ramo 1989 Trust Restated 07/20/2011, who beneficially owns more than $2,000 of our common stock.
Whereas: our company's business success depends upon a customer-facing sales force, comprising 73% of our roughly 22,000 employees;
Workforce diversity and inclusion, reflecting possible discrimination based upon gender, race and ethnicity is a significant policy issue;
Underrepresentation of women and minorities in management structures can result in allegations of discriminatory labor practices, including those related to promotions and wages. The resulting lawsuits can both eat into the thin margins of this industry, as well as cause reputational damage for the responsible companies;
The U.S. population is currently undergoing a massive demographic shift, with an increase in minority populations;
Distributors that respond to this demographic trend and employ staff who will be able to recognize the needs of these populations may be better able to capture demand from these segments, which can provide companies a competitive advantage;
Fastenal's website states that our company supports diversity in hiring:
"As a service-focused business, we're dedicated to creating a diverse workforce that reflects our customer base and the world at large. We value diversity and encourage minorities, women, individuals with disabilities, and veterans to apply for positions;"
Yet Fastenal's disclosures do not provide metrics enabling shareholders or other stakeholders to assess progress in meeting these values. Management's belief that it is creating a diverse workforce is contradicted by recent research suggesting that Fastenal ranks near the bottom among leading companies in its diversity achievements. The Massachusetts Institute of Technology Sloan Management Review teamed with CultureX and Glassdoor on the Culture 500 project to rank companies based on a series of culture factors, culled from employee comments on the Glassdoor website. https://sloanreview.mit.edu/projects/measuring-culture-in-leading-companies/ Based on an analysis of Glassdoor reviews, Fastenal ranks 478 out of 496 major corporations on the diversity dimension. In the Supply Chain and Logistics Industry Grouping, the company ranks 17 out of 18. Even more concerning from a governance standpoint is Fastenal's ranking on the Integrity dimension, explained as, "Employees consistently act in an honest and ethical manner. Do the right thing; Be ethical; Play by the rules." Here, Fastenal ranks 445 out of 527. In the Supply Chain and Logistics Industry Grouping, Fastenal ranks 15 out of 18. Glassdoor data have been used in academic studies to predict both financial returns and financial fraud; Id. Note 8.
Therefore be it resolved: Shareholders request that the Board of Directors issue a report to shareholders by 180 days after the 2020 Annual Meeting, at reasonable expense and excluding confidential information, assessing the diversity of our company's workforce.
Supporting Statement
Proponents recommend that the assessment include, at a minimum:
metrics on the percentages of gender categories for global operations, and the standard EEO-1 racial and ethnic group categories for U.S. operations, disaggregated, at a minimum, into management (Executive/Senior-Level, and First/Mid-Level Officials) and non-managerial employees (all other EEO-1 Standard Occupational Classifications);
and the amounts any legal or regulatory fines and settlements associated with diversity issues.
Our Company's Response to this Proposal
The Fastenal Board of Directors unanimously recommends that shareholders vote AGAINST this proposal for the following reasons:
Fastenal is committed to providing equal employment opportunity to all of its employees and applicants. As a service-focused organization, we're dedicated to creating a diverse workforce that reflects our customer base and the world around us. It is our policy to provide equal employment opportunity / affirmative action to all employees and applicants for employment in accordance with all applicable federal, state, or local, executive orders, regulations and laws. We do not engage in any form of prohibited employment discrimination. This includes discrimination on the basis of race, color, creed, gender, religion, national origin or citizenship status, disability, age, genetic information, marital status, status with regard to public assistance, sexual orientation, gender identity, familial status, veteran status, or any other protected classifications. This policy is applicable to all

personnel actions and practices including, but not limited to, recruitment, selection, promotion, training, transfer, rates of pay, part-time work, and all other terms and conditions of employment.
In furtherance of our commitment to providing equal employment opportunity, we have implemented several initiatives designed to foster diversity of employees across our global operations including:
Enhancing Our Recruiting and Hiring Processes - In August
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Table of 2015, we debuted an updated and streamlined hiring process with an internally developed Applicant Tracking System that allows for centralized application review and phone interviews by our Diversity and Compliance team. After completing an application review and phone interview, qualified candidates are eligible to be interviewed by local hiring managers using standard interview questions designed for each position. In addition to updating our hiring process, we have also increased our recruiting effects to reach a diverse group of potential candidates. We have partnered with LocalJobNetwork (LJN), which helps distributes our job postings to all 50 state workforce agencies, over 600 diversity websites focusing on women, minorities, veterans, and individuals with disabilities, and has allowed us to leverage LJN's over 15,000 community partners within their network to seek qualified candidates.  These actions have favorably impacted the very pool of employees the proposal cites as critical to the company's business success: the 73% of our employee base that is customer facing. From 2011 to 2018, Fastenal's sales-related workforce in the United States increased 47%. Over this same period, the number of sales-related employees who are female nearly doubled, while the number of sales-related employees who identify as a minority increased by nearly 2.5 times. Today, based on U.S. Bureau of Labor statistics data, our mix of sales-related female and minority employees is similar to the mix of such groups that is typically seen at our durables manufacturing and construction customers.Contents
Recruiting Training for Our Employees - Our internal recruiting page was updated and debuted at our 2017 Employee Expo. Our General Managers from all over the company participated in recruiting trainings during this Employee Expo, which included a focus on equal employment opportunity, affirmative action, and seeking candidates from diverse sources. This event served as the basis for the development of a recruiting course available to all employees.
Commitment to Social Responsibility - In December of 2019, we updated our "Social Responsibility" page on our website by highlighting the company's efforts and achievements related to our culture, supply chain transparency and the environment.   In particular, we feature on our website various ‘Social Awareness' components of our business and present relevant generalized statistical information associated with historical levels of female and minority employees within our workforce.  We undertook this initial step to be responsive to investor interest around environmental, sustainability, and governance matters, and we plan to continue to develop these materials over time.
Committing to inclusion of diverse candidates in future board and/or CEO searches.  Fastenal has been responsive to proposals from its shareholder base, adopting several governance changes as a result of feedback that we have received from our shareholders.  For instance, in 2017, we adopted a stock ownership requirement for all senior executives as a means of aligning the long-term interests of management with those of investors.  In 2019, we amended our bylaws to include proxy access provisions.  In 2020, our board approved changes to our nominating committee's charter to provide that any searches to fill board seats shall include female and racially and/or ethnically diverse candidates for consideration in the initial slate of candidates and, as disclosed above in this proxy statement, any future external searches to fill the CEO role will include diverse candidates.  We believe the changes that we made in 2020 related to leadership diversity will increase diversity in our governance function over time.
Our comprehensive approach to bridging the gap between employees, suppliers and strategic customers creates relationships that provide solutions and opportunities for all parties. We are committed to proactively building a diverse workforce and creating inclusive relationships with our employees, suppliers and customers that meet or exceed their needs and expectations.  We believe these diverse relationships and partnerships provide Fastenal with a solid foundation to compete within the global business environment in which we operate and provide all parties expanded and enhanced opportunities throughout the world. 
The proposal references studies completed by the Massachusetts Institute of Technology Sloan Management Review as contradicting our belief that our workforce is becoming more diverse.  This survey utilizes anonymous and subjective commentary collected in a social media format, although it is subjected to rigorous analysis from an esteemed organization.  We do not believe the study cited in the proposal should be viewed as the conclusive authority on such matters.
We do not believe that adoption of this proposal would enhance our existing commitment to equal employment opportunity or diversity within our workforce in any meaningful way.  Diversity within our workforce is an evolutionary process, which has improved over time as described in the first bullet above. Commitment to diversity cannot be measured with isolated data points, but needs to be presented on a generalized basis over time to ensure improvement and demonstrate commitment.  Insofar as the proposal seeks reporting of EEO-1 data, we do not believe that EEO-1 data is a reliable measure of our global commitment to equal opportunity employment and, as with all data, it can be subject to misinterpretation or abusive practices by competitors in the marketplace. This type of misinterpretation is demonstrated by certain ranking organizations developing

conclusions based on misapplied or unsubstantiated information.  Furthermore, we are committed to keeping our employees' personal information strictly confidential, unless disclosure is required by law or regulation.
In summary, we remain fully committed to our ongoing efforts to promote diversity within our workforce, and we do not believe that this proposal would advance those efforts.
THE BOARD OF DIRECTORS RECOMMENDS VOTING AGAINST THIS SHAREHOLDER PROPOSAL
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SECURITY OWNERSHIP OF PRINCIPAL SHAREHOLDERS AND MANAGEMENT
The following table sets forth, as of February 1, 20202023 (unless otherwise noted), the ownership of Fastenal common stock by each shareholder who is known by us to own beneficially more than 5% of our outstanding common stock, by each director and nominee for the office of director, by our named executive officers, and by all directors and executive officers as a group. On February 1, 20202023, there were 574,226,297570,871,966 shares of Fastenal common stock issued and outstanding.
Name and, if Required, Address of Beneficial Owner
Amount and Nature
of Beneficial
Ownership (1)
  
Percentage of
Outstanding Shares
Willard D. Oberton1,037,137
 (2)*
Michael J. Ancius30,999
 (3)*
Michael J. Dolan25,000
  *
Stephen L. Eastman7,000
 (4)*
Daniel L. Florness543,575
 (5)*
Rita J. Heise68,770
 (6)*
Darren R. Jackson48,000
 (7)*
Daniel L. Johnson15,804
 (8)*
Nicholas J. Lundquist568,550
 (9)*
Scott A. Satterlee55,626
 (10)*
Reyne K. Wisecup82,132
 (11)*
Holden Lewis45,722
 (12)*
Terry M. Owen173,670
 (13)*
Charles S. Miller78,350
 (14)*
The Bank of New York Mellon Corporation   

     240 Greenwich Street32,890,338
 (15)5.73%
     New York, NY 10286    
BlackRock, Inc.    
     55 East 52nd Street43,538,940
 (16)7.58%
     New York, NY 10055    
State Street Corporation    
     One Lincoln Street30,453,691
 (17)5.30%
     Boston, MA 02111    
The Vanguard Group    
     100 Vanguard Blvd.69,417,776
 (18)12.09%
     Malvern, PA 19355    
Directors and executive officers as a group (20 persons)3,298,023
 (19)*
Name and, if Required, Address of Beneficial OwnerAmount and Nature
of Beneficial
Ownership (1)		 Percentage of
Outstanding Shares
Scott A. Satterlee81,624 (2)*
Michael J. Ancius59,805 (3)*
Stephen L. Eastman24,323 (4)*
Daniel L. Florness670,024 (5)*
Rita J. Heise81,123 (6)*
Hsenghung Sam Hsu35,753 (7)*
Daniel L. Johnson27,025 (8)*
Nicholas J. Lundquist531,596 (9)*
Sarah N. Nielsen14,259 (10)*
Reyne K. Wisecup128,358 (11)*
Holden Lewis113,580 (12)*
Terry M. Owen290,670 (13)*
Charles S. Miller63,479 (14)*
BlackRock, Inc.
     55 East 52nd Street45,015,074 (15)7.89 %
     New York, NY 10055
The Vanguard Group
     100 Vanguard Blvd.69,697,102 (16)12.21 %
     Malvern, PA 19355
Directors and executive officers as a group (18 persons)2,554,822 (17)*
*Less than 1%.
(1)Except as otherwise indicated in the notes below, the listed beneficial owner has sole voting power and investment power with respect to such shares.
(2)Includes 922,943 shares held in a revocable trust of Mr. Oberton and his wife, over which Mr. Oberton and his wife share voting and investment power and stock options to acquire 100,000 shares of the company's common stock, which are immediately exercisable.
(3)Includes 17,630 shares held in a revocable trust of Mr. Ancius and his wife, over which Mr. Ancius and his wife share voting and investment power, and stock options to acquire 8,474 shares of the company's common stock, which are immediately exercisable.
(4)Consists of 7,000 shares held in Mr. Eastman’s revocable trust, over which Mr. Eastman shares voting and investment power with his wife.
(5)Consists of 199,690 shares held jointly by Mr. Florness and his wife, stock options to acquire 314,566 shares of the company's common stock, which are immediately exercisable, approximately 9,319 shares attributable to the account

(1)Except as otherwise indicated in the notes below, the listed beneficial owner has sole voting power and investment power with respect to such shares.
(2)Consists of 25,000 shares held in Mr. Satterlee's revocable trust, over which Mr. Satterlee has voting and investment power, and stock options to acquire 56,624 shares of the company's common stock, which are immediately exercisable.
(3)Includes 22,254 shares held in a revocable trust of Mr. Ancius and his wife, over which Mr. Ancius and his wife share voting and investment power, and stock options to acquire 25,036 shares of the company's common stock, which are immediately exercisable.
(4)Consists of 10,000 shares held in Mr. Eastman’s revocable trust, over which Mr. Eastman shares voting and investment power with his wife, and stock options to acquire 14,323 shares of the company's common stock, which are immediately exercisable.
(5)Consists of 282,929 shares held jointly by Mr. Florness and his wife, stock options to acquire 366,538 shares of the company's common stock, which are immediately exercisable, approximately 10,557 shares attributable to the account of Mr. Florness in our 401(k) plan, and 20,00010,000 shares held in a trust ofby Mr. Florness' father-in-law over which Mr. Florness' wife is the trustee. wife.Mr. Florness has the right to direct the investment of, and the voting of all shares attributable to, his 401(k) plan account. Mr. Florness disclaims beneficial ownership
(6)Consists of the20,000 shares held in Ms. Heise’s revocable trust, over which Ms. Heise shares voting and investment power with her husband, and stock options to acquire 61,123 shares of the company's common stock, which are immediately exercisable.
(7)Includes stock options to acquire 32,753 shares of the company's common stock, which are immediately exercisable.
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(8)Consists of 10,595 shares held in Mr. Johnson’s revocable trust, over which Mr. Johnson and his wife share voting and investment power, and stock options to acquire 16,430 shares of the company's common stock, which are immediately exercisable.
(9)Includes 65,000 shares held by Mr. Lundquist's wife and stock options to acquire 19,382 shares of the company's common stock, which are immediately exercisable.
(10)Consists of 2,000 shares held jointly by Ms. Nielsen and her husband, and stock options to acquire 12,259 shares of the company's common stock, which are immediately exercisable.
(11)Consists of 20,000 shares held jointly by Ms. Wisecup and her husband, and stock options to acquire 108,358 shares of the company's common stock, which are immediately exercisable.
(12)Includes stock options to acquire 103,998 shares of the company's common stock, which are immediately exercisable.
(13)Includes stock options to acquire 281,998 shares of the company's common stock, which are immediately exercisable, and 1,672 shares attributable to the account of Mr. Owen in our 401(k) plan. Mr. Owen has the right to direct the investment of, and the voting of all shares attributable to, his father-in-law.
(6)Consists of 20,000 shares held in Ms. Heise’s revocable trust, over which Ms. Heise shares voting and investment power with her husband, and stock options to acquire 48,770 shares of the company's common stock, which are immediately exercisable.
(7)Includes 30,000 shares held in a revocable trust of Mr. Jackson and his wife, over which Mr. Jackson and his wife share voting and investment power.
(8)Consists of 7,330 shares held in Mr. Johnson’s revocable trust, over which Mr. Johnson and his wife share voting and investment power, and stock options to acquire 8,474 shares of the company's common stock, which are immediately exercisable.
(9)Includes 56,000 shares held by Mr. Lundquist's wife, 1,074 shares held by his father over which he has investment control, stock options to acquire 62,132 shares of the company's common stock, which are immediately exercisable, and 17,344 shares attributable to the account of Mr. Lundquist in our 401(k) plan. Mr. Lundquist has the right to direct the investment of, and the voting of all shares attributable to, his 401(k) plan account. Mr. Lundquist disclaims beneficial ownership of the shares held by his father.
(10)Consists of 25,000 shares held in Mr. Satterlee's revocable trust, over which Mr. Satterlee has voting and investment power, and stock options to acquire 30,626 shares of the company's common stock, which are immediately exercisable.
(11)Consists of 20,000 shares held jointly by Ms. Wisecup and her husband, and stock options to acquire 62,132 shares of the company's common stock, which are immediately exercisable.
(12)Includes stock options to acquire 38,640 shares of the company's common stock, which are immediately exercisable.
(13)Includes stock options to acquire 165,120 shares of the company's common stock, which are immediately exercisable, and 1,550 shares attributable to the account of Mr. Owen in our 401(k) plan. Mr. Owen has the right to direct the investment of, and the voting of all shares attributable to, his 401(k) plan account.
(14)Includes stock options to acquire 59,098 shares of the company's common stock, which are immediately exercisable, and 11,752 shares attributable to Mr. Miller in our 401(k) plan. Mr. Miller has the right to direct the investment of, and the voting of all shares attributable to, his 401(k) plan account.
(15)According to an amendment to a Schedule 13G statement filed with the SEC reflecting ownership as of December 31, 2019, (i) The Bank of New York Mellon Corporation has sole voting power with respect to 26,041,569 shares, shared voting power with respect to 2,175 shares, sole investment power with respect to 26,423,355 shares, and shared investment power with respect to 5,731,359 shares; (ii) BNY Mellon IHC, LLC has sole voting power with respect to 23,703,694 shares, sole investment power with respect to 24,431,013 shares and shared investment power with respect to 5,727,968 shares; and (iii) MBC Investments Corporation has sole voting power with respect to 23,703,694 shares, sole investment power with respect to 24,431,013 shares and shared investment power with respect to 5,727,968 shares.
(16)According to an amendment to a Schedule 13G statement filed with the SEC reflecting ownership as of December 31, 2019, BlackRock, Inc., which is a parent holding company or control person, has sole voting power with respect to 37,722,469 shares and sole investment power with respect to 43,538,940 shares.
(17)According to a Schedule 13G statement filed with the SEC reflecting ownership as of December 31, 2019, State Street Corporation, which is a registered investment advisor, has shared voting power with respect to 27,841,207 shares, and shared investment power with respect to 30,421,624 shares.
(18)
According to an amendment to a Schedule 13G statement filed with the SEC reflecting ownership as of December 31, 2019, The Vanguard Group, which is a registered investment advisor, has sole voting power with respect to 880,752 shares, shared voting power with respect to 149,879 shares, sole investment power with respect to 68,434,986 shares, and shared investment power with respect to 982,790 shares.In addition, Vanguard Fiduciary Trust Company, a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 681,260 shares as a result of its serving as investment manager of collective trust accounts. Vanguard Investments Australia, Ltd., a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 489,861 shares as a result of its serving as investment manager of Australian investment offerings.
(19)Includes the shares in footnotes (2) through (14), including aggregate stock options to acquire 1,318,390 shares of the company's common stock that are immediately exercisable and 86,479 shares attributable to the 401(k) accounts of certain directors and executive officers.

401(k) plan account.

(14)Consists of stock options to acquire 50,795 shares of the company's common stock, which are immediately exercisable, and 12,684 shares attributable to Mr. Miller in our 401(k) plan. Mr. Miller has the right to direct the investment of, and the voting of all shares attributable to, his 401(k) plan account.
(15)According to an amendment to a Schedule 13G statement filed with the SEC reflecting ownership as of December 31, 2022, BlackRock, Inc., which is a parent holding company or control person, has sole voting power with respect to 40,445,046 shares and sole investment power with respect to 45,015,074 shares.
(16)According to an amendment to a Schedule 13G statement filed with the SEC reflecting ownership as of December 31, 2022, The Vanguard Group, which is a registered investment advisor, has shared voting power with respect to 856,008 shares, sole investment power with respect to 67,209,479 shares, and shared investment power with respect to 2,487,623 shares.
(17)Includes the shares in footnotes (2) through (14), including aggregate stock options to acquire 1,497,866 shares of the company's common stock that are immediately exercisable and 63,855 shares attributable to the 401(k) accounts of certain directors and executive officers.














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ADDITIONAL MATTERS
If you are a registered shareholder, our 20192022 annual report, including financial statements, is being mailed to you with this proxy statement. If you are a shareholder who holds shares in street name, you will receive a notice regarding availability of proxy materials by mail from your broker. The notice will contain instructions as to how you can access our 20192022 annual report over the internet. It will also tell you how to request a paper or e-mail copy of our 20192022 annual report.
As of the date of this proxy statement, we know of no matters that will be presented for determination at the 20202023 annual shareholders meeting other than those referred to herein. If any other matters properly come before the meeting calling for a vote of shareholders, it is intended that the shares represented by the proxies solicited by our board of directors will be voted by the proxies named therein in accordance with their best judgment.
We will pay the cost of soliciting our board of directors' form of proxy, which may include the reimbursement of brokers for forwarding solicitation materials to shareholders holding stock in street name. In addition to solicitation by the use of mail and the internet, our directors, officers, and employees may solicit proxies by telephone, personal contact, or special correspondence without additional compensation to them.
Our transfer agent is Equiniti Trust Company. All communications concerning registered shareholder accounts, including address changes, name changes, common stock transfer requirements, and similar issues, can be handled by contacting our transfer agent at 1-800-468-9716, or in writing at 1110 Centre Pointe Curve, Suite 101, Mendota Heights, Minnesota 55120.
If you wish to obtain a copy of our annual report on Form 10-K filed with the SEC for 2019,2022, you may do so without charge by writing to Investor Relations, at our offices at 2001 Theurer Boulevard, Winona, Minnesota 55987-0978.
HOUSEHOLDING
We have adopted a procedure approved by the SEC called 'householding,' by which certain shareholders who do not participate in electronic delivery of proxy materials but who have the same address and appear to be members of the same family receive only one copy of our annual report and proxy statement. Each shareholder participating in householding continues to receive a separate proxy card. Householding helps to eliminate duplicative mailings and reduces our mailing and printing expenses.
If your household would like to receive one rather than multiple mailings in the future, please write to Fastenal Company, c/o Broadridge Householding Department, 51 Mercedes Way, Edgewood, New York 11717, or call 1-866-540-7095. If a broker or other nominee holds your shares, you may continue to receive multiple mailings. Please contact your broker or other nominee directly to discontinue multiple mailings from them.
If you currently participate in householding and would prefer to receive separate copies of our 20192022 annual report or this proxy statement, please contact us in the manner described above and we will deliver the requested document free of charge and promptly upon receipt of your request.

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DEADLINES FOR RECEIPT OF SHAREHOLDER PROPOSALS AND NOMINATIONS
FOR THE 20212024 ANNUAL MEETING
Shareholder Proposals
Any shareholder proposal intended to be presented at the 20212024 annual meeting and desired to be included in our proxy statement for that annual meeting must be received by us at our principal executive office no later than November 16, 2020.14, 2023. Any such proposal must follow the procedures provided in Rule 14a-8 under the Exchange Act.
Any other shareholder proposals intended to be presented at our 20212024 annual meeting must be received by our General Counsel no later than January 25, 2021.23, 2024. Any such proposal must comply with the provisions contained in our bylaws.
Nomination of Director Candidates
Any shareholder who plans to nominate a person as a director at a shareholder meeting must comply with the provisions contained in our bylaws. Any such nomination must be received by our General Counsel no later than January 25, 2021.23, 2024.
In addition, our bylaws provide that under certain circumstances, a shareholder or group of shareholders may include director candidates that they have nominated in our proxy statement for an annual meeting of shareholders. These proxy access provisions of our bylaws provide, among other things, that a shareholder or group of up to 20 shareholders seeking to include their director candidates in our proxy statement must own 3% or more of our common stock continuously for at least the previous three years. The number of shareholder-nominated candidates appearing in any proxy statement cannot exceed 20% of the number of directors then serving on the board, but may be at least two directors, subject to the other terms of the bylaws. The nominating shareholder(s) and nominee(s) must also satisfy other provisions contained in our bylaws. Requests to include shareholder-nominated candidates in our proxy materials for the 20212024 annual meeting must be received by our General Counsel no later than November 16, 202014, 2023 and no earlier than October 17, 2020.

15, 2023. In addition to satisfying the foregoing requirements, to comply with the universal proxy rules, shareholders who intend to solicit proxies in support of director nominees other than the board's nominees must provide notice that sets forth the information required by Rule 14a-19 under the Securities Exchange Act of 1934 no later than February 22, 2024.
By Order of the Board of Directors,
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John J. Milek
Vice President General Counsel
February 28, 2020

24, 2023


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