Other definitive proxy statements



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UNITED STATES




SECURITIES AND EXCHANGE COMMISSION




Washington, D.C. 20549










SCHEDULE 14A
INFORMATION




Proxy Statement Pursuant to Section 14(a) of the




Securities Exchange Act of 1934




(Amendment No.    )









Filed by the
Registrant  ☒



Filed by a Party other than the Registrant  ☐



Check the appropriate box:













Preliminary Proxy Statement





















Confidential, for Use of the Commission Only (as permitted by Rule

14a-6(e)(2))















Definitive Proxy Statement














Definitive Additional Materials














Soliciting Material under §

240.14a-12





Builders FirstSource, Inc.




(Name of registrant as specified in its charter)




(Name of person(s) filing proxy statement, if other than the registrant)



Payment of Filing Fee (Check all boxes that apply):













No fee required














Fee paid previously with preliminary materials














Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules

14a-6(i)(1)

and

0-11

















Table of Contents









LOGO







Notice of Annual
Meeting






of Stockholders and






2022 Proxy Statement








The Annual Meeting of Stockholders






of Builders FirstSource, Inc. will be held:






Tuesday, June 14, 2022 at 1:00 p.m. local time






Sheraton Dallas Hotel






400 Olive Street






Dallas, Texas 75201











Table of Contents





LOGO







LOGO
LOGO



A MESSAGE TO OUR STOCKHOLDERS



To
our Fellow Stockholders,



You are cordially invited to attend the annual meeting of stockholders of Builders FirstSource, Inc., which will take place at the
Sheraton Dallas Hotel, 400 Olive Street, Dallas, Texas 75201 on Tuesday, June 14, 2022, at 1:00 p.m., local time. Details of the business to be conducted at the annual meeting are given in the Notice of Annual Meeting of Stockholders, Proxy
Statement, Notice Regarding the Availability of Proxy Materials, and form of proxy.



2021 was an exceptional year for our company. We delivered record financial
performance by helping our customers become more productive, managing supply chain constraints and strengthening our geographic positions around the nation. Our integration of BMC Stock Holdings, Inc. (“BMC”) following the completion of
the merger on January 1, 2021 outpaced our early targets and realized our planed cost synergy and productivity savings over two years ahead of our initial expectations. It has become increasingly clear that the BMC merger has brought us closer
to our mission to be the leading supplier of building materials and services to homebuilders by promoting a people-first culture that delivers exceptional customer service and innovative solutions to help build more efficiently, thereby creating
superior value for stakeholders. We want to thank our more than 28,000 team members for an incredible year and we are extremely proud of their outstanding results.



We are also excited about our recent investments in our digital strategy. In August 2021, we acquired WTS Paradigm, LLC (“Paradigm”), a software solutions and
services provider for the building products industry. The acquisition is an important step forward in our strategy to invest in innovative digital solutions that will help our customers build more efficiently. Our management team is committed to
streamlining the home buying experience and providing the digital tools to better align and integrate the homebuilding project lifecycle for our customers and supply partners.



Delivering long-term value to our stockholders remains a top priority for our Board of Directors and our management team. We completed over $1.2 billion worth of
acquisitions in 2021. We also repurchased $2.0 billion of our common stock through the beginning of 2022, and our Board of Directors recently authorized the repurchase of an additional $1.0 billion of our common stock on February 17,
2022, demonstrating the financial strength of our company and our continued commitment to deploy our robust free cash flow.



Your vote is important to us. Even if
you intend to join us in person, we encourage you to vote in advance so we will know we have a quorum of stockholders for the meeting. When you vote in advance, please indicate your intention to personally attend the annual meeting. Please see the
Question and Answer section on page 3 of the Proxy Statement for instructions if you plan to personally attend the annual meeting.



On behalf of the Board of
Directors and the executive management team, we would like to express our appreciation for your continued interest in the affairs of Builders FirstSource, Inc.


































Sincerely,




Sincerely,




LOGO


LOGO



Paul S. Levy



Chairman of the Board






David E. Flitman



Chief Executive Officer and President











Table of Contents





LOGO





2001 Bryan Street, Suite 1600, Dallas, Texas 75201






NOTICE OF ANNUAL MEETING OF STOCKHOLDERS




To
our Stockholders:



The annual meeting of stockholders of Builders FirstSource, Inc. will take place at the Sheraton Dallas Hotel, 400 Olive Street, Dallas,
Texas 75201

(1)

on Tuesday, June 14, 2022, at 1:00 p.m., local time, for the purpose of considering and acting upon the following:










(1)


The election of directors;











(2)


An advisory vote on the compensation of the named executive officers;











(3)


The ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm
for the year 2022;











(4)


To consider a stockholder proposal, if properly presented at the meeting, requesting that the Corporation adopt
greenhouse gas emissions reduction targets; and











(5)


Any other business that may properly be brought before the annual meeting or any adjournment thereof.




Only stockholders of record at the close of business on April 22, 2022 will be entitled to vote at the meeting.



Directions to be able to attend the meeting and vote in person may be obtained by contacting the Corporation’s legal department at (214)

880-3500.



By Order of the Board of Directors,







LOGO



Timothy D. Johnson



Corporate Secretary



April 28, 2022









Important Notice Regarding the
Availability of Proxy Materials for the Stockholder Meeting to be held on June 14, 2022: The Proxy Statement and the 2021 Annual Report on Form

10-K

are available at www.proxydocs.com/BLDR and at
www.bldr.com.







IMPORTANT:




Please see the Question and Answer section on page 3 of this Proxy Statement for instructions on what you need to do to attend the annual meeting in person. Please
note that the doors to the annual meeting will open at 12:30 p.m. and will close promptly at 1:00 p.m. Whether or not you expect to personally attend, we urge you to vote your shares at your earliest convenience to ensure the presence
of a quorum at the meeting. Promptly voting your shares via the internet, by telephone via toll-free number, or, if you elect to receive your proxy materials by mail, by completing, signing, dating, and returning the enclosed proxy card in the
postage-paid envelope provided, will save us the expense and extra work of additional proxy solicitation. Because your proxy is revocable at your option, submitting your proxy now will not prevent you from voting your shares at the meeting if you
desire to do so. Please refer to the voting instructions included on the Notice Regarding the Availability of Proxy Materials, proxy card, or voting instructions forwarded by your bank, broker, or other stockholder of record, as applicable.










1.


As part of the Corporation’s precautions regarding

COVID-19,

the Corporation
is planning for the possibility that the annual meeting may be held by means of remote communication only (i.e., a virtual meeting). If the Corporation takes this step, or if the time, date, or place of the annual meeting will be changing, the
Corporation will announce the decision to do so in advance via press release, and details on how to participate will be available on the investor relations page of the Corporation’s website (https://investors.bldr.com).











Table of Contents






Table of Contents









TABLE OF CONTENTS








































































































































































































































































































































































































Solicitation and Ratification of Proxies








1









General Information about Proxies and Voting








2









Outstanding Stock





2






Internet Availability of Proxy Materials





2






Voting Matters and Board Recommendations





2






Questions and Answers about the Meeting and Voting








3









Proposal 1 — Election of Directors








7









Class II — Directors with Terms Expiring in 2022





8






Continuing Directors








9









Class I — Directors with Terms Expiring in 2024





9






Class III — Directors with Terms Expiring in 2023





11






Director Compensation








14









Compensation of Directors





14






Director Compensation Program





15






Information Regarding the Board and its Committees








16









Board Purpose and Structure





16






Director Independence





16






Board Meetings and Attendance





17






Board Leadership Structure and Role in Risk Oversight





17






Audit Committee





18






Compensation Committee





18






Nominating and Corporate Governance Committee





19






Stock Ownership Guidelines for Executives and Directors





20






Report of the Audit Committee








21









Corporate Governance








23









Code of Business Conduct and Ethics





23






By-law Provisions on Stockholder Nominations of Director Candidates





23






Policy on Stockholder Recommendations for Director Candidates





24






Proxy Access for Director Nominations





24






Corporate Governance Guidelines





24






Communication with Directors





25






Auditor Services Pre-Approval Policy





25






Policy Regarding Hedging and Pledging





25






2021 Sustainability Highlights





26
























































































































































































































































































Executive Officers of the Registrant








28









Executive Compensation and Other Information








30









Compensation Discussion and Analysis





30






Compensation Committee Report





42






Summary Compensation Table





43






2021 Grants of Plan-Based Awards





44






Employment Agreements





45






2021 Outstanding Equity Awards at Year-End





46






2021 Option Exercises and Stock Vested





48






Potential Payments Upon Termination or Change in Control





48






Summary of Termination Payments and Benefits





49






Chief Executive Officer Pay Ratio Disclosure





50






Proposal 2 — Advisory Vote on Executive Compensation








51









Compensation Committee Interlocks and Insider Participation








52









Certain Relationships and Related Party Transactions








53









Securities Owned by Directors, Executive Officers, and Certain Beneficial Owners








54









Delinquent Section 16(a) Reports








57









Equity Compensation Plan Information








58









Proposal 3 — Ratification of Selection of Independent Registered Public Accounting Firm








59









Fees Paid to PricewaterhouseCoopers LLP





59






Proposal 4 — Adopt Greenhouse Gas Emissions Reduction Targets








61









Stockholder Proposals








63









Reduce Printing and Mailing Costs








64









Other Matters








65













Builders
FirstSource, Inc.




|  2022 Proxy Statement




i













Table of Contents







LOGO





2001 Bryan Street, Suite 1600, Dallas, Texas 75201






PROXY STATEMENT






Annual Meeting of Stockholders






June 14, 2022




This Proxy Statement is being furnished by Builders FirstSource, Inc. (the “Corporation,” the “Company,” or “Builders FirstSource”) in
connection with a solicitation of proxies by its Board of Directors (the “Board of Directors” or the “Board”) to be voted at the annual meeting of the Corporation’s stockholders to be held on June 14, 2022 (the
“annual meeting” or “meeting”). Whether or not you personally attend, it is important that your shares be represented and voted at the annual meeting. Most stockholders have a choice of voting over the internet, by using a
toll-free telephone number, or, for stockholders who elect to receive their proxy materials by mail, by completing a proxy card and mailing it in the postage-paid envelope provided. Check the Notice Regarding the Availability of Proxy Materials,
your proxy card, or the information forwarded by your bank, broker, or other stockholder of record, as applicable, to determine which voting options are available to you. The internet voting and telephone voting facilities for stockholders of record
will be available until 12:00 p.m. Central Time on June 14, 2022. The Notice Regarding the Availability of Proxy Materials will first be mailed on or about May 5, 2022.







SOLICITATION AND RATIFICATION OF PROXIES




If a proxy card is signed and returned, it will be voted as specified on the proxy card, or, if no vote is specified, it will be voted “FOR” all nominees
presented in Proposal 1, “FOR” Proposals 2 and 3, and “ABSTAIN” for Proposal 4. At any time before it is exercised, you may revoke your proxy by timely delivery of written notice to the Corporate Secretary, by timely delivery of
a properly executed, later-dated proxy (including by internet or telephone vote), or by voting via ballot at the annual meeting. Voting in advance of the annual meeting will not limit your right to vote at the annual meeting if you decide to attend
in person. If you are a beneficial owner, and your shares are registered in the name of a bank, broker, or other stockholder of record, to be able to vote in person at the annual meeting you must obtain, from the stockholder of record, a legal proxy
and submit it together with your ballot at the meeting. See “Questions and Answers about the Meeting and Voting” in this Proxy Statement for an explanation of the term “beneficial owner.”



The proxy accompanying this Proxy Statement is being solicited by the Board of Directors. The Corporation will bear the entire cost of this solicitation, including the
preparation and delivery of this Proxy Statement, the proxy, and any additional information furnished to stockholders. The Corporation has retained Innisfree M&A Incorporated (“Innisfree”) to perform various proxy solicitation services
in connection with the solicitation of proxies for the annual meeting. The Corporation will pay Innisfree a fee not to exceed $25,000, plus out-of-pocket expenses, for such services. In addition to using the mail and the internet, proxies may be
solicited by directors, executive officers, and other employees of Builders FirstSource or its subsidiaries, in person or by telephone. No additional compensation will be paid to directors, executive officers, or other employees for their services
in this regard. Builders FirstSource will also request banks, brokers, and other stockholders of record to forward proxy materials, at the Corporation’s expense, to the beneficial owners of the Corporation’s shares.



If you have questions or need assistance voting your shares, please contact our proxy solicitor:



Innisfree M&A Incorporated



501 Madison Avenue,
20th floor



New York, New York 10022



Stockholders
may call toll free: (877) 825-8964



Banks and Brokers may call collect: (212) 750-5833







Builders
FirstSource, Inc.




|  2022 Proxy Statement




1













Table of Contents






General Information about Proxies and Voting









GENERAL INFORMATION ABOUT PROXIES AND VOTING







Outstanding Stock







The stockholders of record of Builders FirstSource, Inc. Common
Stock (“Common Stock”) at the close of business on April 22, 2022 will be entitled to vote in person or by proxy at the annual meeting. At that time, the Corporation had 173,987,893 outstanding shares of its Common Stock. Each
stockholder will be entitled to one vote in person or by proxy for each share of Common Stock held. A quorum for the transaction of business shall be constituted by the presence at the annual meeting, in person or by proxy, of a majority of the
outstanding shares of Common Stock entitled to vote thereat. All shares for which proxies or voting instructions are returned are counted as present for purposes of determining the existence of a quorum at the annual meeting.






Internet Availability of Proxy Materials







As permitted by federal securities laws, Builders FirstSource
is making this Proxy Statement and 2021 Annual Report on Form

10-K

(the “2021 Annual Report”) available to its stockholders primarily via the internet instead of mailing printed copies of these
materials to each stockholder. On or about May 5, 2022, we will mail to our stockholders (other than those who previously requested electronic or paper delivery) a Notice Regarding Internet Availability of Proxy Materials (the
“Notice”) containing instructions on how to access the Proxy Statement and accompanying 2021 Annual Report. These proxy materials will be made available to our stockholders on or about May 5, 2022. The Notice provides instructions
regarding how to vote through the internet. The Proxy Statement and 2021 Annual Report are also available on our website at www.bldr.com.



If you received a Notice
by mail, you will not receive a printed copy of the proxy materials by mail unless you request printed materials. If you wish to receive printed proxy materials, you should follow the instructions for requesting such materials contained on the
Notice.



If you receive more than one Notice, it means your shares are registered differently and are held in more than one account. To ensure all shares are voted,
please either vote each account over the internet or by telephone or sign and return by mail all proxy cards.






Voting Matters and Board
Recommendations







At this year’s annual meeting, we are asking our stockholders to vote on the following matters:

















































































Proposal









Board Recommendation








Page Number





1.





Election of Directors




FOR each nominee


7


2.





Advisory vote on the compensation of the named
executive officers




FOR


51


3.





Ratification of PricewaterhouseCoopers LLP as our
independent registered public accounting firm




FOR


59


4.





Stockholder proposal, if properly presented at the
meeting, requesting that the Corporation adopt greenhouse gas emissions reduction targets




NO RECOMMENDATION


61








NO PERSON IS AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROXY STATEMENT. IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED. THE DELIVERY OF THIS PROXY STATEMENT SHALL, UNDER
NO CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CORPORATION SINCE THE DATE OF THIS PROXY STATEMENT.










2




Builders FirstSource,
Inc.




|  2022 Proxy Statement













Table of Contents






Questions and Answers about the Meeting and Voting









QUESTIONS AND ANSWERS ABOUT THE MEETING AND
VOTING










What is a proxy?




A proxy is your legal
designation of another person, called a proxy holder, to vote the shares that you own. We designated Timothy D. Johnson, our Executive Vice President, General Counsel, and Corporate Secretary, and Peter M. Jackson, our Executive Vice President and
Chief Financial Officer, to act as proxy holders at the annual meeting as to all shares for which proxy cards are returned or voting instructions are provided by internet or telephone.















What is a proxy statement?




A proxy statement is
a document that the Securities and Exchange Commission (the “SEC”) regulations require us to give you when we ask you to provide a proxy (by voting by phone or internet or, if applicable, by returning a proxy card by mail) designating the
proxy holders described above to vote on your behalf.















What is the difference between a
stockholder of record and a stockholder who holds stock in street name, also called a “beneficial owner?”




If your shares are registered in
your name at our transfer agent, Computershare Investor Services, you are a stockholder of record.



If your shares are held through a broker, bank, trustee,
nominee, or other similar stockholder of record on your behalf, your shares are held in street name and you are the beneficial owner of the shares.















How do you obtain admission to the
annual meeting?






Stockholders of Record



.

Stockholders of record must bring a current government-issued photo identification card to
gain admission to the annual meeting.





Street Name Holders



.

To obtain admission to the annual meeting, a street name holder must (i) bring
a current government-issued photo identification card and (ii) ask his or her broker or bank for a legal proxy and must bring that legal proxy with him or her to the meeting. If you do not receive the legal proxy in time, bring your most recent
brokerage statement with you to the meeting. We can use that to verify your ownership of Common Stock and admit you to the meeting. However, you will not be able to vote your shares at the meeting without a legal proxy. Please note that if you own
shares in street name, and you are issued a legal proxy, any previously executed proxy will be revoked, and your vote will not be counted unless you appear at the meeting and vote in person.















Could

COVID-19

or related developments affect the Corporation’s ability to hold an

in-person

meeting?




We are actively monitoring the

COVID-19

situation. In the
event that it is inadvisable or not possible to hold our annual meeting in person, we may decide instead to hold a virtual annual meeting that is accessible only through the internet. If we decide to use that format, we will announce the decision to
do so in advance via press release, and details on how to participate will be available on the investor relations page of the Corporation’s website (https://investors.bldr.com).















What different methods can you use to vote?






By Written Proxy


.


Stockholders who elect to receive their proxy materials by mail may vote by mailing the written proxy card.







Builders
FirstSource, Inc.




|  2022 Proxy Statement




3













Table of Contents






Questions and Answers about the Meeting and Voting







By Telephone and Internet Proxy



.

All stockholders of record may also vote by
telephone from the U.S., using the toll-free telephone number provided on the proxy card or in the website listed on the Notice, or by the internet, using the procedures and instructions described in the Notice or proxy card. Street name holders may
vote by telephone or the internet if their bank, broker, or other stockholder of record makes those methods available. If that is the case, the bank, broker, or other stockholder of record will enclose the instructions with the Proxy Statement or
other notice of the meeting. The telephone and internet voting procedures, including the use of control numbers, are designed to authenticate stockholders’ identities, allow stockholders to vote their shares, and confirm that their instructions
have been properly recorded.





In Person



.

All stockholders may vote in person at the meeting (unless they are street name holders without a
legal proxy, as described in the foregoing question).



If you have questions or need assistance voting your shares, please contact our proxy
solicitor:



Innisfree M&A Incorporated



501
Madison Avenue, 20th floor



New York, New York 10022



Stockholders may call toll free: (877) 825-8964



Banks
and Brokers may call collect: (212) 750-5833

















What is the record date and what does
it mean?




The record date for the annual meeting is April 22, 2022. The record date is established by the Board of Directors as required by Delaware
law. Stockholders of record at the close of business on the record date are entitled to receive notice of the annual meeting and to vote their shares at the meeting.















What are your voting choices for
director nominees, and what vote is needed to elect directors?




For the vote on the election of the Class II director nominees to serve until the
2025 annual meeting, stockholders may:













•



vote in favor of all nominees,












•



vote against all nominees, or












•



vote in favor of specified nominees and against other specified nominees, or abstain from voting on all or certain
specified nominees.




At the annual meeting in 2022, directors will be elected by a majority of the votes cast in person or by proxy at the annual
meeting. Each director nominee in 2022 has submitted an irrevocable resignation that will be effective upon the occurrence of (i) the failure of such director nominee to receive a majority of the votes cast and (ii) the acceptance of that
resignation by the Board. Abstentions from voting have no effect on the outcome of such vote because the election of directors is determined on the basis of votes cast and abstentions are not counted as votes cast.

























THE BOARD RECOMMENDS A VOTE
“FOR” EACH OF THE DIRECTOR NOMINEES.












4




Builders FirstSource,
Inc.




|  2022 Proxy Statement













Table of Contents






Questions and Answers about the Meeting and Voting









What are your voting choices on the advisory vote to approve the 2021 compensation of the Corporation’s named executive officers, including
the Corporation’s compensation practices and principles and their implementation?




In the

non-binding

vote
to approve the 2021 compensation of the Corporation’s named executive officers, including the Corporation’s compensation practices and principles and their implementation, as discussed and disclosed in this Proxy Statement, stockholders
may:













•



vote in favor of the proposal,












•



vote against the proposal, or












•



abstain from voting on the proposal.




This proposal requires the affirmative vote of a majority of the votes represented and entitled to vote at the annual meeting. Accordingly, abstentions have the effect
of a vote “against” Proposal 2. This is an advisory vote, and, as such, is not binding on the Board or the Compensation Committee. However, the Board and the Compensation Committee will consider the results of the vote when setting
the compensation of the Corporation’s executive officers in the future.

























THE BOARD RECOMMENDS A VOTE
“FOR” PROPOSAL 2.














What are your voting choices on the ratification of the appointment of PricewaterhouseCoopers LLP as the Corporation’s independent
registered public accounting firm, and what vote is needed to ratify their appointment?




On the vote on the ratification of the appointment of
PricewaterhouseCoopers LLP as our independent registered public accounting firm for the year 2022, stockholders may:













•



vote in favor of the ratification,












•



vote against the ratification, or












•



abstain from voting on the ratification.




The proposal to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm will require the affirmative vote of a
majority of the shares represented and entitled to vote at the annual meeting. Accordingly, abstentions will have the effect of a vote “against” Proposal 3. This vote is not binding on the Board or the Audit Committee.

























THE BOARD RECOMMENDS A VOTE
“FOR” PROPOSAL 3.














What are your voting choices on the stockholder proposal, if properly presented at the meeting, requesting that the Corporation adopt greenhouse
gas emissions reduction targets?




On the vote on the stockholder proposal, if properly presented at the meeting, requesting that the Corporation adopt
greenhouse gas emissions reduction targets, stockholders may:













•



vote in favor of the stockholder proposal,












•



vote against the stockholder proposal, or












•



abstain from voting on the stockholder proposal.




The proposal to consider a stockholder proposal, if properly presented at the meeting, requesting that the Corporation adopt greenhouse gas emissions reduction targets,
will require the affirmative vote of a majority of the shares represented and entitled to vote at the annual meeting. Accordingly, abstentions will have the effect of a vote “against” Proposal 4.

























THE BOARD DOES NOT MAKE A
RECOMMENDATION FOR PROPOSAL 4.












Builders
FirstSource, Inc.




|  2022 Proxy Statement




5













Table of Contents






Questions and Answers about the Meeting and Voting









What if a stockholder does not specify a choice for a matter when returning a proxy card?




Stockholders should specify their choice for each proposal described on the proxy card, if they receive one. However, proxy cards that are signed and returned, but for
which no specific instruction is given, will be voted “FOR” all the director candidates listed in Proposal 1, “FOR” Proposals 2 and 3, and “ABSTAIN” for Proposal 4.



If any matters not specifically set forth in this Proxy Statement properly come to a vote at the meeting, either of the members of the Proxy Committee, comprised of
Timothy D. Johnson and Peter M. Jackson, will vote regarding those matters in accordance with their best judgments.















What are broker

non-votes

and how are they counted?




Although your broker is the record holder of any shares that you hold in street
name, it must vote those shares pursuant to your instructions. If you do not provide instructions, your broker may exercise discretionary voting power over your shares for “routine” items but not for

“non-routine”

items. All matters described in this Proxy Statement, except for the ratification of the appointment of our independent auditor, are considered to be

non-routine

matters. “Broker

non-votes”

occur with respect to a

non-routine

matter when shares held of record by a
broker are not voted on such matter because the beneficial owner has not provided voting instructions and the broker either lacks or declines to exercise the authority to vote the shares in its discretion.



Broker

non-votes

will be counted as present for purposes of establishing a quorum. Broker

non-votes

will not have any effect on Proposal 1, since broker

non-votes

are not votes cast. Broker

non-votes

will have the
effect of a vote “AGAINST” on Proposal 2 and Proposal 4, since broker

non-votes

are entitled to vote at the annual meeting but are not entitled to vote on

“non-routine”

items. Brokers have discretionary authority to vote on Proposal 3.















Can I change my mind and revoke or
change my proxy?




Yes. A stockholder of record may revoke a proxy or change its vote prior to its exercise at the annual meeting by:













•



submitting a later-dated vote by telephone or Internet no later than 12:00 p.m. Central Time on June 14, 2022;












•



signing a valid, later-dated proxy card and submitting it so that it is received before the annual meeting in accordance
with the instructions included in the proxy card;












•



before the annual meeting, signing a written notice of revocation dated later than the date of the proxy and submitting it
to our Corporate Secretary so that it is received before the annual meeting; or












•



attending the annual meeting and voting in person.




Note that attendance at the annual meeting, by itself, will not revoke your proxy.



A street name holder may revoke a proxy given pursuant to this solicitation by following the instructions of the bank, broker, trustee, or other nominee who holds his
or her shares.













6




Builders FirstSource,
Inc.




|  2022 Proxy Statement













Table of Contents






Proposal 1 — Election of Directors









PROPOSAL 1 — ELECTION OF DIRECTORS




On January 1, 2021 (the “Merger Effective Date”), the Corporation completed its previously announced all stock merger transaction with
BMC Stock Holdings, Inc., a Delaware corporation (“BMC”). The merger between the Corporation and BMC is referred to as the “Merger” throughout this Proxy Statement.



Pursuant to the Corporation’s

By-laws,

the Board is “classified,” which means it is divided into three classes of
directors based on the expiration of their terms. Under the classified Board arrangement, directors are elected to terms that expire on the annual meeting date three years following the annual meeting at which they were elected and the terms are
“staggered” so that the terms of approximately

one-third

of the directors expire each year.



There are currently
12 members of the Board of Directors. Three of the 12 directors, Daniel Agroskin, David Bullock, and Floyd Sherman, whose terms all expire in 2022, are retiring from the Board and not standing for election at the annual meeting. Only one of the
three vacancies will be filled at the annual meeting, and, as a result, the size of the Board will be reduced from 12 to 10 directors and the number of Class II directors will be reduced from four to two. Accordingly, Proposal 1 seeks the
election of two directors to fill the continuing directorships whose terms expire in 2022.



The term of the other Class II director, Mark A. Alexander, will
expire at the annual meeting in 2022. The Board of Directors has nominated Mark A. Alexander and Dirkson R. Charles for election to a term that will expire at the annual meeting in 2025.
























































































































































Nominee







Age






Position Held






Independent






Audit




Committee






Compensation




Committee






Nominating and Corporate




Governance Committee











Mark A. Alexander




63


Director


X


X













Dirkson R. Charles




58


Director


X








Unless otherwise indicated, all proxies that authorize the proxy holders to vote for the election of directors will be voted
“FOR” the election of the nominees listed below. If a nominee becomes unavailable for election as a result of unforeseen circumstances, it is the intention of the proxy holders to vote for the election of such substitute nominee, if any,
as the Board of Directors may propose. As of the date of this Proxy Statement, each of the nominees has consented to serve and the Board is not aware of any circumstances that would cause a nominee to be unable to serve as a director.







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FirstSource, Inc.




|  2022 Proxy Statement




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Table of Contents






Proposal 1 — Election of Directors





The background and business affiliations of the director nominees, as well as the qualifications
that led the Board to conclude that each nominee should serve as a director of the Corporation, are set forth below:






Class II
— Directors with Terms Expiring in 2022


























Mark A.





Alexander













LOGO






Director since

2021








Independent








63

years old






Audit Committee

(Member)








Mr. Alexander is a member of the Audit Committee. Mr. Alexander served
as a director of BMC from 2017 through the Merger, including as the Chair of BMC’s Audit Committee prior to the Merger. He currently serves as Founder, Chairman and Chief Executive Officer of Landmark Property Group, a property management and
real estate redevelopment company, since its founding in 2009. Mr. Alexander previously served as Chief Executive Officer, President, and a director of Suburban Propane Partners, a multibillion-dollar publicly-traded energy services company,
from March 1996 to September 2009. Prior to Suburban Propane Partners, he was Senior Vice President, Business Development of Hanson Industries, the U.S. arm of Hanson plc, from 1984 to 1996. He holds a Bachelor of Business Administration from the
University of Notre Dame, and is a Certified Public Accountant (currently inactive) in the State of New Jersey. In the last five years, he served on the board of the following public company: W.P. Carey Inc. (current).









Qualifications:


Mr. Alexander possesses significant executive and financial expertise and experience gained from previous management positions. Additionally, his current service on another public company board and
its audit committee enables him to provide invaluable guidance and knowledge to our Board and its committees.





























Dirkson R.





Charles













LOGO






Director Nominee







Independent








58

years old









Mr. Charles currently serves as Founder and Chief Executive Officer of Loar
Group, Inc., a business specializing in the design and manufacture of aerospace components. He has served in such role since Loar Group’s inception in January 2012. Prior to his founding of Loar Group, Mr. Charles served as executive vice
president of McKechnie Aerospace since the fall of 2007. Before joining McKechnie Aerospace, Mr. Charles held a similar position as executive vice president and chief financial officer with K&F Industries, a leading manufacturer of aviation
wheels, brakes, fuel tanks and brake control systems that was acquired by

Meggitt-USA

in May 2007. In addition, Mr. Charles was with Arthur Andersen and Company during the

mid-1980s

for five years. Mr. Charles holds an undergraduate degree in public accounting and a M.B.A. in finance from Pace University and is a certified public accountant in the State of New York. Since
March 2020, Mr. Charles has served as the Chairman of Doncasters Group Limited, a privately-held leading international manufacturer of high-precision alloy components.









Qualifications:


Mr. Charles has significant corporate executive experience through his current roles as a CEO and chairman and in prior high-level leadership positions. Additionally, he possesses critical
accounting skills as a licensed C.P.A. and from his prior experience in public accounting. Mr. Charles’s qualifications and accomplishments will provide a crucial perspective for the Board.










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Table of Contents






Continuing Directors









CONTINUING DIRECTORS




The background and business affiliations of the Corporation’s other directors, whose terms of service continue beyond 2022, as well as the qualifications that led
the Board to conclude that such directors should serve as a director of the Corporation, are set forth below:






Class I —
Directors with Terms Expiring in 2024


























Cleveland A.





Christophe













LOGO






Director since

2005








Independent








76

years old






Compensation Committee

(Chair)







Nominating and Corporate Governance Committee

(Member)








Mr. Christophe is the Chair of the Compensation Committee and a member of
the Nominating and Corporate Governance Committee. In January 2013, Mr. Christophe retired from US&S, Inc., a supplier of services and materials primarily to various agencies of the U.S. Government. He had been President of US&S, Inc.
since 2009. Mr. Christophe was the Managing Partner of TSG Capital Group, a private equity investment firm, which he founded in 1992. Previously, Mr. Christophe was Senior Vice President of TLC Group, L.P. From 1971 to 1987,
Mr. Christophe held numerous senior positions with Citibank, N.A. He has been a Chartered Financial Analyst since 1975.









Qualifications:


Mr. Christophe has substantial financial
and management expertise from his long tenure in the investment and banking industries. He also has significant senior management experience in the commercial and industrial service industry. Additionally, Mr. Christophe’s prior service on
other public company boards and audit committees positions him to make valuable contributions to the governance and operation of the Board and its committees.










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FirstSource, Inc.




|  2022 Proxy Statement




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Table of Contents






Continuing Directors


























David E.





Flitman













LOGO






Director since

2021








57

years old









Mr. Flitman was elected the Corporation’s Chief Executive Officer on
April 1, 2021. Additionally, on the Merger Effective Date, Mr. Flitman was appointed to the Board of Directors of the Corporation and elected the Corporation’s President. Prior to the Merger, he had served on the Board of Directors and as
the Chief Executive Officer and President of BMC since September 2018. Prior to BMC, Mr. Flitman served as Executive Vice President of Performance Food Group Company, a family of leading foodservice distributors, and President and Chief
Executive Officer of its Performance Foodservice division from January 2015 to September 2018. Prior to Performance Food Group, Mr. Flitman served as Chief Operating Officer and President, USA & Mexico of Univar Corporation, a global
chemical distributor, from January 2014 to December 2014 after joining Univar in December 2012 as President USA with additional responsibility for Univar’s Global Supply Chain & Export Services teams. He had also served as Executive
Vice President and President, Water and Process Services at Ecolab Inc., the global leader in water, hygiene and energy technologies and services, from November 2011 to September 2012, and previously Senior Executive Vice President of Nalco Holding
Company from August 2008 until it was acquired by Ecolab in November 2011. From February 2005 to July 2008, Mr. Flitman served as President of Allegheny Power System, an electric utility that served customers in Pennsylvania, West Virginia,
Virginia, and Maryland. Prior to this, he had nearly 20 years in operational, commercial, and global business leadership positions at DuPont, a science and technology-based company. Mr. Flitman received his B.S. degree in Chemical Engineering
from Purdue University. In the last five years, he served on the board of the following public company: Vertiv Corporation (current).









Qualifications:


Mr. Flitman has a proven track record and
demonstrated leadership ability from his extensive operational, commercial, and supply chain experience and over three decades of experience leading distribution businesses across multiple industries. In addition, his

in-depth

knowledge of our corporate strategy and


day-to-day


operations as our Chief Executive Officer provides our Board with an
important resource in understanding our business and strategy.





























W. Bradley





Hayes













LOGO






Director since

2019








Independent








56

years old






Audit Committee

(Chair)








Mr. Hayes is the Chair of the Audit Committee. He served as Executive Vice
President, Chief Financial Officer, and Treasurer of Laboratory Corporation of America Holdings (“LabCorp”), a NYSE listed life sciences company, from June 2005 until his retirement in June 2014. He was Senior Vice President, Investor
Relations for LabCorp from June 2004 to June 2005. Mr. Hayes joined LabCorp in September 1996 and was responsible for the


day-to-day


operations of the revenue cycle
function. Prior to joining LabCorp, Mr. Hayes was in the audit department at KPMG for nine years. Mr. Hayes holds a Bachelor of Science in Accounting from the University of North Carolina at Greensboro. In the last five years, he served on
the boards of the following public companies: Indaptus Therapeutics, Inc. (current) and Patheon, N.V. (previous).










Qualifications:


Mr. Hayes has significant public company
financial experience. He has over 15 years of experience in senior and executive management and practiced as a C.P.A. for three decades. Through his previous experience as chief financial officer and chairman of the audit committee of
publicly-traded companies, Mr. Hayes brings valuable knowledge to the Board and the Audit Committee of the Corporation.










10




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Inc.




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Table of Contents






Continuing Directors


























Brett N.





Milgrim













LOGO






Director since

1999








Independent








53

years old






Compensation Committee

(Member)








Mr. Milgrim is a member of the Compensation Committee. Mr. Milgrim is

Co-Chairman

of the Board of Loar Group, Inc., a business specializing in the design and manufacture of aerospace components. From 1997 until early 2011, he was a Managing Director of JLL Partners, Inc., a leading
private equity firm. In the last five years, he served on the boards of the following public companies: Horizon Global Corp. (current) and PGT Innovations, Inc. (current).









Qualifications:


Mr. Milgrim is very knowledgeable regarding all aspects of corporate finance and capital markets. His long tenure on the board of directors of the Corporation, as well as his service on the boards
of two other building products companies, gives him

in-depth

knowledge of the building products industry and the issues faced by the Corporation.









Class III — Directors with Terms Expiring in 2023


























Paul S.





Levy













LOGO






Director since

1998








Independent








74

years old






Chairman of the Board







Mr. Levy is the Chairman of the Board. He is a Managing Director of JLL
Partners, Inc., which he founded in 1988. Mr. Levy has also previously served on the boards of numerous private companies, including C.H.I. Overhead Doors, Inc., a garage door manufacturer, and Loar Group, Inc., a business specializing in the
design and manufacture of aerospace components. In the last five years, Mr. Levy served on the boards of the following public companies: Patheon, Inc. (previous) and PGT Innovations, Inc. (previous).









Qualifications:


Mr. Levy has vast experience investing in and managing a wide variety of businesses, including other building products companies. He has served on the boards of directors of several public
companies. Mr. Levy has also been the CEO of a large company, general counsel of another company, and a practicing lawyer, bringing further breadth to his contributions to the Board.










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FirstSource, Inc.




|  2022 Proxy Statement




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Table of Contents






Continuing Directors


























Cory J.





Boydston













LOGO






Director since

2021








63

years old






Audit Committee

(Member)








Ms. Boydston is a member of the Audit Committee. Ms. Boydston served as
a director of BMC from 2018 through the Merger. She currently serves as the Chief Financial Officer of Ashton Woods USA L.L.C, the second largest private homebuilder in the U.S., a position she has held since 2009. Prior to Ashton Woods,
Ms. Boydston served as Senior Vice President, Chief Financial Officer, and Partner at Starwood Land Ventures, LLC, a real estate investment firm that engages in residential land acquisition, development, and financing, from 2008 to 2009. She
also served in senior leadership roles at two publicly-traded home construction companies, including as Senior Vice President – Finance and Treasury at Beazer Homes USA, Inc. from 1998 to 2008, and as Chief Financial Officer, Corporate
Controller, and in other leadership roles at Lennar Corporation from 1987 to 1997. Ms. Boydston is also the

co-founder

of Women’s Housing Leadership Group and serves on the Georgia Advisory Board of
the Trust for Public Land. She holds a Bachelor of Science from Florida State University and is a Certified Public Accountant in the State of Georgia.









Qualifications:


Ms. Boydston possesses substantial public
company accounting and finance experience through her more than 30 years of service in senior and executive management and as a C.P.A. Most of her experience is in the homebuilding industry, our primary

end-market,

which qualifies Ms. Boydston to make critical contributions to the Corporation and our Board.





























James





O’Leary













LOGO






Director since

2021








Independent








59

years old






Compensation Committee

(Member)








Mr. O’Leary is a member of the Compensation Committee.
Mr. O’Leary served as a director of BMC from 2015 through the Merger, including as the Chairman of BMC immediately prior to the Merger. He currently serves as the Chairman of Kinematics Manufacturing Company, a position he has held since
2015, and on the board of Sentient Science, a private technology company, since December 2020. Since March 2014, Mr. O’Leary has served as a Senior Advisor and member of the Basic Industries Advisory Group of Madison Dearborn Partners, a
leading private equity firm. He also served as Chairman and Chief Executive Officer of WireCo Worldgroup, Inc., a leading global manufacturer of engineered wire, steel rope, and synthetic rope, from January 2017 until his retirement from WireCo in
July 2019. Prior to this, Mr. O’Leary served as Chairman of the Board and Chief Executive Officer of Kaydon Corporation, Inc., a diversified global manufacturer of precision industrial goods that was listed on the New York Stock Exchange,
from March 2007 until its sale in October 2013. From October 2013 to March 2014, Mr. O’Leary served as a Senior Advisor to the SKF Group, the acquiror of Kaydon Corporation, Inc. From 2005 to March 2007, he served as an independent
director of Kaydon Corporation, Inc. Mr. O’Leary holds a B.B.A. from Pace University and an M.B.A. from the Wharton School of the University of Pennsylvania. He is an inactive Certified Public Accountant in the State of New York.









Qualifications:


Mr. O’Leary has a depth of business, operations, and financial experience gained from serving as a chief executive officer for multiple manufacturing companies, including a publicly-traded
company. He also brings valuable accounting experience to our Board as a former C.P.A.










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Table of Contents






Continuing Directors


























Craig A.





Steinke













LOGO






Director since

2006








Independent








65

years old






Audit Committee

(Member)







Nominating and Corporate Governance Committee

(Chair)








Mr. Steinke is the Chair of the Nominating and Corporate Governance
Committee and a member of the Audit Committee. Since June 2013, Mr. Steinke has been the Chief Executive Officer and a director of Service Logic LLC, a private equity owned company that specializes in energy management and HVAC services for
office buildings, hospitals, data centers, and other commercial buildings on a national scale. From 2008 to July 2017, he was an operating partner at Sterling Investment Partners (“Sterling”), working with management teams of select
portfolio companies. From September 2010 until January 2015, Mr. Steinke served as a director and operating adviser for Lazer Spot Inc. (Sterling investment), which specializes in providing logistics support to Fortune 500 companies. Prior to
that, he was President and Chief Executive Officer of GPX International Tire Corporation (Sterling investment), an international manufacturer and distributor of branded industrial and off road equipment tires. From 2001 to 2007, Mr. Steinke was
President and Chief Executive Officer of Eagle Family Foods, Inc., a private equity owned consumer products company in the food industry. His previous positions held include Senior Vice President and Group General Manager of BHP Copper, a
significant natural resource company, and President of Magma Metals, a billion-dollar subsidiary of Magma Copper Company. Mr. Steinke is a C.P.A. and was employed by Arthur Andersen & Co. He currently serves on the boards for a number
of private companies.









Qualifications:


Mr. Steinke’s extensive experience at the senior executive management level, including as a chief executive
officer, allows him to make significant contributions to the development of the Corporation’s business strategy. He also brings a broad knowledge of accounting and experience as a C.P.A. to the Board’s discussions. Mr. Steinke has
also served on numerous boards of directors.








Builders
FirstSource, Inc.




|  2022 Proxy Statement




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Table of Contents






Director Compensation









DIRECTOR COMPENSATION







Compensation of Directors







The following table sets forth the cash and other compensation
paid by the Corporation to the members of the Board of Directors of the Corporation for all services in all capacities during 2021.









































































































































































































































































































Name







Fees Earned or




Paid in Cash 
($)









Stock








Awards ($)


(1)











All Other




Compensation ($)







Total

($)










Daniel Agroskin




106,705

(2)



149,982



—



256,687







Mark A. Alexander




121,278

(2)



217,826



—



339,104







Cory J. Boydston




121,278

(2)



217,826



—



339,104







David W. Bullock




121,384

(3)



217,826



—



339,210







Cleveland A. Christophe




126,849


149,982



—



276,831







David E.
Flitman

(4)




—


—



—



—







W. Bradley Hayes




131,728

(2)



149,982



—



281,710







Paul S. Levy




201,815

(2)



149,982



—



351,797







Brett N. Milgrim




106,705

(2)



149,982



—



256,687







James O’ Leary




121,278

(2)



217,826



—



339,104







Floyd F. Sherman




101,778

(2)



149,982



—



251,760







Craig A. Steinke




116,753

(2)



149,982



—



266,735









1.


Reflects the aggregate grant date fair value of restricted stock unit awards granted in 2021. The fair value of these
awards was determined in accordance with the

Compensation – Stock Compensation

topic of the Financial Accounting Standards Board Accounting Standards Codification. The fair value of the restricted stock unit awards was equal to the
closing price of our Common Stock on the grant date.









2.


As described below under “Director Compensation Program,” Messrs. Agroskin, Alexander, Hayes, Levy, Milgrim,
O’Leary, Sherman, and Steinke and Ms. Boydston each took their annual cash retainers and any fees for serving on committees in Common Stock for the full year in 2021. Amounts include the grant date fair value of these stock awards.









3.


Mr. Bullock elected to receive $95,147 of his total annual retainer and any fees for serving on committees in cash
and $26,237 in Common Stock. The amount taken in Common Stock reflects the grant date fair value of the stock award.









4.


As an employee of the Corporation, Mr. Flitman did not receive any compensation for his service as a director in
2021. As a named executive officer, the compensation Mr. Flitman received as an employee during 2021 is set forth in “Executive Compensation and Other Information” below.




The following table shows the total number of shares of Common Stock underlying restricted stock units held by the members of the Board of Directors of the
Corporation (excluding executive officers) as of December 31, 2021:





































































































































Name







Number of




Shares 
Underlying




Restricted




Stock Units






Daniel Agroskin




3,459




Mark A. Alexander




5,119




Cory J. Boydston




5,119




David W. Bullock




5,119




Cleveland A. Christophe




3,459




W. Bradley Hayes




3,459




Paul S. Levy




3,459




Brett N. Milgrim




3,459




James O’Leary




5,119




Floyd F. Sherman




3,459




Craig A. Steinke




3,459






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Table of Contents






Director Compensation








Director Compensation Program







Under the Amended and Restated Director Compensation Policy, directors are entitled to compensation for their service on the Board if they are not concurrently employed
in any capacity by the Corporation or any of its subsidiaries. Under the Amended and Restated Director Compensation Policy in effect during 2021, Directors who met these standards (“Eligible Directors”) received an annual cash retainer of
$100,000. In addition, the Chairman of the Board receives an annual cash retainer of $100,000 for service in such role, which is also payable quarterly.



In
connection with the Merger, the Amended and Restated Director Compensation Policy was amended effective January 15, 2021 to increase the annual cash retainer from $85,000 to $100,000 and the fair market value of the annual grant of restricted
stock units from $130,000 to $150,000. The annual fees for serving on the Board’s committees were not changed. Because quarterly cash retainers are paid in advance, in the quarter following such amendment legacy Builders FirstSource directors
received a cash retainer

true-up

for the period of time during the prior quarter in which the increased cash retainer amount was in effect.



Directors receive annual fees for serving on the Board’s committees, but do not receive separate per meeting fees for attending Board or committee meetings. The
annual fees for serving on the Board’s committees are as follows:




















































































Committee







Chair Fee







Member Fee




(non-Chair)








Audit Committee




$30,000


$5,000





Compensation Committee




$20,000


$5,000





Nominating and Corporate Governance Committee




$10,000


$5,000


Eligible Directors also receive annual grants of restricted stock units. In 2021, the number of shares underlying these awards is
determined by dividing a dollar value ($150,000 per year) by the fair market value of our Common Stock on the date of grant. These awards vest in full on the earlier of the first anniversary of the grant date or upon such director’s cessation
of service due to death, disability, or retirement. If a new Eligible Director joins the Board, or if an existing director’s status changes to allow him or her to qualify as an Eligible Director, that director will receive a grant of restricted
stock units on a

pro-rated

basis for the remainder of the current director compensation year, which is the year from the date of the prior annual meeting of stockholders to the date of the next annual meeting
of stockholders.



In lieu of receiving cash retainers, an Eligible Director may elect to receive fully vested shares of Common Stock having a value on the first day
of the service quarter for which they are issued approximately equal to the amount of the cash retainer payment he or she would otherwise receive. Such stock grants in lieu of cash retainer payments will be awarded on a quarterly basis at the same
time cash retainer payments would be made. The Board amended the Amended and Restated Director Compensation Policy on November 17, 2021 to clarify that directors may only elect to receive fully vested shares of Common Stock in lieu of cash
retainers during an open trading window and such election will take effect the following year.



We do not compensate directors for any period of service in which
they are not Eligible Directors.







Builders
FirstSource, Inc.




|  2022 Proxy Statement




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Table of Contents






Information Regarding the Board and its Committees









INFORMATION REGARDING THE BOARD AND ITS
COMMITTEES




































































































































































































































































































Name






Board of




Directors








Audit




Committee








Compensation




Committee








Nominating and




Corporate




Governance




Committee










Paul S. Levy


Chair












Daniel Agroskin


X




X








Mark A. Alexander


X


X










Cory J. Boydston


X


X










David W. Bullock


X






X






Cleveland A. Christophe


X




Chair


X






David E. Flitman


X












W. Bradley Hayes


X


Chair










Brett N. Milgrim


X




X








James O’Leary


X




X








Floyd F. Sherman


X












Craig A. Steinke


X


X




Chair





Board Purpose and Structure







The mission of the Board is to provide strategic guidance to
the Corporation’s management, to monitor the performance and ethical behavior of the Corporation’s management, and to maximize the long-term financial return to the Corporation’s stockholders, while considering and appropriately
balancing the interests of other stakeholders and constituencies. The Board currently consists of 12 directors, but will be reduced to 10 directors upon election of the director nominees at the annual meeting as described above.






Director Independence







The Board of Directors is comprised of one management director,
Mr. Flitman (who is the Corporation’s current President and CEO), Mr. Sherman (who is the Corporation’s former CEO and was an employee of the Corporation until March 31, 2019), and ten

non-management

directors. As part of its annual evaluation of director independence, the Board examined, among other things, whether any transactions or relationships exist currently, or existed during the
past three years, between each independent director and the Corporation or its subsidiaries or independent registered public accounting firm (the “auditors”). If such transactions or relationships exist, the Board reviews the nature of
those transactions or relationships, including under the relevant New York Stock Exchange Listing Standards (the “NYSE Standards”) and SEC standards, to determine whether those transactions or relationships would impair such
director’s independence. The Board also examined whether there are, or have been within the past year, any transactions or relationships between each independent director and members of the senior management of Builders FirstSource or its
affiliates. As a result of this evaluation, the Board affirmatively determined that each of Messrs. Levy, Agroskin, Alexander, Bullock, Christophe, Hayes, Milgrim, O’Leary, and Steinke, and director nominee Dirkson R. Charles, is independent
under those criteria.



In addition, our Board of Directors affirmatively determined that all the members of the Compensation Committee and all the members of the
Audit Committee except Ms. Boydston meet the additional independence requirements of the SEC and NYSE Standards to audit and compensation committee members. Pursuant to the NYSE Standards, Ms. Boydston may remain on the Audit Committee
until July 19, 2022. As a result, the Compensation Committee and the Nominating and Corporate Governance Committee are each comprised solely of independent directors, and the Audit Committee is in compliance with the independence requirements
of the SEC and the NYSE Standards.







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Table of Contents






Information Regarding the Board and its Committees





Each year, the independent directors meet in regularly scheduled executive sessions outside the
presence of management representatives. Interested parties, including stockholders, may communicate with the Chairman or the independent directors as a group through the process described in this Proxy Statement under the heading “Policy on
Stockholder-Director Communications.”






Board Meetings and Attendance







In 2021, our Board of Directors met ten times, our Audit Committee met eight times, our Compensation Committee met three times, and our Nominating and Corporate
Governance Committee met three times, including regularly scheduled and special meetings. During 2021, each of the Corporation’s incumbent directors attended at least 75% of the combined meetings of the Board and any committee on which such
director served during his or her term as a director. Pursuant to the Builders FirstSource, Inc. Corporate Governance Guidelines (available on the Governance section of our website), all directors are strongly encouraged to attend the annual
meeting. Any director who is unable to attend an annual meeting of stockholders is expected to notify the Chairman of the Board in advance of such meeting. In 2021, ten members of the Board were available at our annual meeting by conference call.






Board Leadership Structure and Role in Risk Oversight







The Board is led by the Chairman of the Board, Paul Levy.
Neither David Flitman, the only employee director, nor Floyd Sherman, who was an employee of the Corporation until March 31, 2019, has any formal leadership role with the Board. Mr. Levy takes a leading role in establishing the timing,
agenda, and procedure of Board meetings. However, each of the directors actively participates in guiding the actions of the Board. The Board has determined that this leadership structure is appropriate and effective due to the Board’s size, the
working relationship that has developed between the directors as a result of their length of service on the Board, and the significant experience that the members of the Board have as directors and members of senior management with other companies.
The Board reviews and guides the Corporation in the following areas, among others:




























































































LOGO




Safety, including

COVID-19




LOGO




Regulatory and legislative developments






LOGO




Environmental, social and governance matters



LOGO




Cybersecurity and data privacy






LOGO




Business strategy and policy, including industry and economic developments



LOGO




Human capital management and diversity and inclusion






LOGO




Operations and system integrity



LOGO




Annual budget, including capital investment plan






LOGO




Litigation and other legal matters



LOGO




Integration


The Corporation’s Board of Directors recognizes that, although


day-to-day


risk management is primarily the responsibility of the Corporation’s management team, the Board plays a critical role in the oversight of risk
management. In that light, the Board is active, as a whole and also at the committee level, in reviewing management’s assessment of the major risks facing the Corporation and management’s processes for monitoring and controlling these
risks. The Board regularly receives information from senior management regarding the Corporation’s financial results, credit, liquidity, operations, and other matters, as well as reports from the Corporation’s Audit Committee and
Compensation Committee. During its review of such information, the Board discusses and analyzes risks associated with each area, as well as risks associated with new business ventures and those relating to the Corporation’s executive
compensation plans and arrangements. The Board assumes ultimate responsibility for ensuring that the Corporation’s management adequately assesses the risks facing the Corporation and appropriately manages those risks.







Builders
FirstSource, Inc.




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Table of Contents






Information Regarding the Board and its Committees





The Audit Committee is specifically responsible for overseeing and monitoring the quality and
integrity of the Corporation’s financial reports and other financial information provided to its stockholders. This includes reviewing the results of management’s risk assessment and compliance with management policies as they relate to
financial reporting. The Audit Committee also monitors the Corporation’s compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, the Audit Committee reviews with senior management
significant areas of risk exposure, including financial reporting controls, operational risks, pending litigation, employee issues, cybersecurity, disaster recovery planning, and issues arising from complaints to the Corporation’s hotline and
other risk detection mechanisms.



The Board and the Audit Committee take an active role in reviewing the Corporation’s cybersecurity risk and actions to reduce
or mitigate it. The Corporation’s Chief Information Security Officer (the “CISO”) and Chief Information Officer (the “CIO”), and the Chief Financial Officer, continuously monitor internal and external cybersecurity
threats and review and revise the Corporation’s cybersecurity defenses on an ongoing basis. The CISO and CIO prepare reports on cybersecurity metrics for the Audit Committee on a regular basis. The Chief Financial Officer and CIO present those
reports to the Audit Committee and address any questions and concerns raised by the Audit Committee. At least annually, the Audit Committee meets with the CIO and CISO in person to discuss cybersecurity in greater detail. The Audit Committee reports
to the Board regarding cybersecurity matters, and the Board addresses cybersecurity issues either directly with management or through the Audit Committee.



The
Compensation Committee reviewed with management the design and operation of our compensation programs for all employees, including executive officers, for the purpose of determining whether such programs might encourage inappropriate risk-taking
that could have a material adverse effect on the Corporation. After conducting its evaluation, the Compensation Committee concluded that the Corporation’s compensation programs do not encourage employees to take risks that are reasonably likely
to have a material adverse effect on the Corporation.






Audit Committee







The Audit Committee is composed of four directors, of which Messrs. Hayes, Alexander, and Steinke are independent (as that term is defined by the NYSE Standards
and SEC regulations). Mr. Hayes serves as the Chair of the Audit Committee. The Board of Directors affirmatively determined that all Audit Committee members are financially literate as defined by the NYSE Standards. All members of the Audit
Committee were also designated by the Board as audit committee “financial experts” under the SEC’s guidelines. The Board further determined that Messrs. Hayes, Alexander, and Steinke meet the independence standards of both the
SEC regulations and the NYSE Standards for audit committee members. Although Ms. Boydston does not meet the independence requirements of the NYSE Standards, she can remain on the Audit Committee until July 19, 2022, the

one-year

anniversary of the Company’s listing on the NYSE, at which time she will no longer serve on the Audit Committee. A copy of the Audit Committee charter is available on the Governance section of our
website at www.bldr.com. The Audit Committee is a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).



The primary function of the Audit Committee is to assist the Board of Directors of the Corporation in fulfilling its oversight responsibilities relating to (i) the
quality and integrity of the Corporation’s financial reports and other financial information provided by the Corporation to its stockholders, the public, and others, (ii) the Corporation’s compliance with legal and regulatory
requirements, (iii) the auditors’ qualifications, independence, performance, and compensation, and (iv) the performance of the Corporation’s internal audit function, including its internal control systems. The Audit
Committee’s functions include preparation of the audit committee report included in this Proxy Statement and the review of material related party transactions. The Audit Committee is also annually required to evaluate its performance and review
and assess the adequacy of its charter.






Compensation Committee







The Compensation Committee is composed of four independent directors, Messrs. Christophe, Agroskin, Milgrim, and O’Leary. Mr. Christophe serves as the
Chair of the Compensation Committee. A copy of the Compensation Committee charter is available on the Governance section of our website at www.bldr.com.







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The Compensation Committee is charged with (i) annually reviewing and recommending to the
Board, for the Board’s approval, all Corporation goals and objectives relevant to the Chief Executive Officer’s compensation, (ii) annually evaluating the Chief Executive Officer’s performance in light of the Corporation’s
goals and objectives, (iii) annually reviewing and recommending to the Board for its approval the Chief Executive Officer’s base salary, incentive compensation levels, and perquisites and other personal benefits based on the Compensation
Committee’s evaluation of the Chief Executive Officer’s performance relative to the Corporation’s goals and objectives, (iv) annually reviewing, evaluating, and recommending to the Board for its approval the base salary level,
incentive compensation levels, and perquisites and other personal benefits of the other executive officers of the Corporation, (v) reviewing and making recommendations to the Board regarding any employment, severance, or termination
arrangements to be made with any executive officer of the Corporation, (vi) making recommendations to the Board with respect to awards under the Corporation’s incentive compensation plans and equity-based compensation plans,
(vii) making regular reports to the Board concerning the activities of the Compensation Committee, (viii) performing an annual performance evaluation of the Compensation Committee, and (ix) performing other activities as the
Compensation Committee or Board may deem appropriate. The Compensation Committee may delegate authority to subcommittees when appropriate. Information regarding the role of the Compensation Committee and its processes and procedures for considering
and determining executive compensation is set forth in the “Compensation Discussion and Analysis” section later in this Proxy Statement.






Nominating and Corporate Governance Committee







The Nominating and Corporate Governance Committee is composed of three independent directors, Messrs. Steinke, Bullock, and Christophe. Mr. Steinke serves as the
Chair of the Committee. A copy of the Nominating and Corporate Governance Committee charter is available on the Governance section of our website at www.bldr.com.



The purpose of the Nominating and Corporate Governance Committee is to (i) identify and evaluate individuals qualified to become Board members, consistent with
criteria approved by the Board, (ii) recommend to the Board the persons to be nominated for election as directors at any meeting of stockholders and the persons to be elected by the Board to fill any vacancies on the Board, (iii) recommend
to the Board the directors to be appointed to each committee of the Board, (iv) evaluate and make recommendations to the Board regarding (a) the eligibility criteria for receipt of compensation as a director and (b) the appropriate
compensation to be paid to eligible members of the Board and to members of Board committees, (v) assist the Board with general corporate governance issues, (vi) assist the Board and its committees with their internal governance issues, and
(vii) provide oversight of management’s efforts on issues related to corporate social responsibility and sustainability.



The Nominating and Corporate
Governance Committee is charged with identifying potential nominees for director and considers a wide range of criteria, including skills, expertise, integrity, character, judgment, age, independence, corporate experience, length of service,
diversity of background and experience, including with respect to race, gender and ethnicity, conflicts of interest and commitments, and other qualities which the Nominating and Corporate Governance Committee believes enhances the Board’s
ability to manage and direct, in an effective manner, the affairs and business of the Corporation. The Nominating and Corporate Governance Committee may, from time to time, engage firms that specialize in identifying director candidates. In
addition, the Nominating and Corporate Governance will also consider candidates recommended by stockholders.







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Information Regarding the Board and its Committees








Stock Ownership Guidelines for Executives and Directors







Under the Corporation’s Stock Ownership Guidelines for Executives and Directors, each executive officer of the Corporation (who has not reached the normal
retirement age of 67) and director of the Corporation is expected to acquire (within the later of five years after the adoption of the policy or appointment to office) and continue to hold shares of the Corporation’s Common Stock having an
aggregate market value that equals or exceeds the requirement set forth below. Unvested restricted stock units will count toward the ownership requirement. Until the required level is met, a director or executive officer is required to retain fifty
percent of the net shares of common stock received from the Corporation as compensation. Once the requirements are met, future sales are only permitted to the extent that such director or executive officer shall continue to meet the requirements
immediately following such sale. Once the target beneficial ownership level is achieved, that director or executive officer will not be required to acquire any additional shares in the event the stock price decreases, provided the underlying number
of shares remain held by such director or executive officer.
























































Position









Holding Requirement







CEO




5 times annual base salary




Executive Officers




3 times annual base salary




Directors




5 times annual cash retainer*


* Excluding cash retainers for serving as the chairperson of the Board or any of its committees or for serving on any of the committees.



The Nominating and Corporate Governance Committee administers compliance with this policy and has the discretion to enforce these guidelines on a


case-by-case


basis. An annual evaluation will be performed on April 1 of each year. As of April 1, 2022, all directors and executive officers were either in
compliance with the policy or subject to the grace period for reaching the required totals.







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Report of the Audit Committee









REPORT OF THE AUDIT COMMITTEE




The primary responsibility of the Audit Committee is to assist the Board of Directors of the Corporation (the “Board”) in fulfilling its oversight
responsibilities relating to (i) the quality and integrity of the financial reporting process, (ii) compliance with legal and regulatory requirements, (iii) the performance of the Corporation’s internal audit function, and
(iv) the appointment of the independent registered public accounting firm. Management is responsible for the financial statements and the financial reporting process, including the implementation and maintenance of effective internal controls.
The independent registered public accounting firm, PricewaterhouseCoopers LLP (“PwC”), is responsible for expressing an opinion on the Corporation’s financial statements and its internal control over financial reporting. The Board has
concluded that (i) Messrs. Hayes, Alexander, and Steinke satisfy the applicable independence requirements set forth in the New York Stock Exchange Listing Standards (the “NYSE Standards”), and (ii) each of the Audit Committee
members satisfies the applicable independence requirements set forth under SEC Rule

10A-3,

and meets the financial literacy requirements for audit committee membership under the NYSE Standards and the rules
and regulations of the SEC. The Board has also designated the chair of the Audit Committee, W. Bradley Hayes, and committee members Mark A. Alexander, Cory J. Boydston, and Craig A. Steinke as Audit Committee “financial experts” under the
SEC’s guidelines. The Audit Committee has reviewed and discussed with management and PwC the Corporation’s audited financial statements as of and for the year ended December 31, 2021.



During 2021, the Audit Committee conducted eight meetings. The Audit Committee chair and other members of the Audit Committee reviewed and commented on the
Corporation’s earnings news release and interim financial statements contained in the Corporation’s quarterly report on SEC Form

10-Q

during each quarter, and met and discussed the Corporation’s
draft Annual Report on SEC Form

10-K

with the chief financial officer, general counsel, and PwC prior to the report’s filing and public release. The Audit Committee considers various relevant factors
including qualifications, performance, and independence when appointing the audit firm and evaluating the audit firm annually. The Audit Committee is also involved in the selection process of the lead engagement partner when rotation is required
after five years under the SEC’s audit partner rotation rules or for other reasons. Due to rotational requirements, a new lead engagement partner was selected effective for the 2022 fiscal year. In addition, the Audit Committee reviewed and
ratified its Charter which is available within the Governance section of the Corporation’s website.



The Audit Committee discussed with PwC the matters
required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board and the SEC. Both the vice president of internal audit and PwC have complete and direct access to the Audit Committee, and the Audit Committee
has the same access to the vice president of internal audit and PwC. The Audit Committee met with the vice president of internal audit and PwC, with and without management present, to discuss the results of their examinations, their evaluations of
the Corporation’s internal controls, and the overall quality of the Corporation’s financial reporting process. The Audit Committee met separately with the Corporation’s chief financial officer and general counsel. The Audit Committee
discussed with management the status of pending litigation, taxation, and other areas of oversight relating to financial reporting and audit processes as the Committee determined to be appropriate. The Audit Committee also reviewed the
Company’s Enterprise Risk Management (ERM) program, including, among other topics, specific information security risks. The Audit Committee recommended that many of these topics be addressed in presentations to the Board. The Audit Committee
has discussed the overall scope of the Corporation’s internal audits and approved the annual internal audit plan. The Audit Committee reports the results of these discussions to the Board on a quarterly basis.



The Audit Committee received and reviewed the written communications from PwC as required by applicable requirements of the Public Company Accounting Oversight Board
for independent auditor communications with audit committees concerning independence, and has discussed with PwC its independence. The Audit Committee has adopted procedures for

pre-approving

all audit,
audit-related, and

non-audit

services provided by PwC, which included reviewing and approving estimated fees for audit, audit-related, and permitted

non-audit

services.
The Audit Committee considers the compatibility of all services provided by PwC with its independence and has concluded the provision of the

non-audit

services is compatible with maintaining PwC’s
independence. During the fiscal year ended December 31, 2021, PwC was employed principally to perform the annual audit and to render tax services. The Audit Committee reviewed the audit engagement letter and approved all fees paid to PwC for
audit, audit-related, and

non-audit

services.







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Report of the Audit Committee





In reliance on the reviews and discussions referred to above, the Audit Committee recommended to
the Board that the audited financial statements be included in the Corporation’s Annual Report on SEC Form

10-K

for the year ended December 31, 2021, as filed with the SEC. The Audit Committee
appointed PwC as the Corporation’s independent registered public accounting firm for fiscal 2022, subject to stockholder ratification.




Submitted by the Audit Committee:



W. Bradley Hayes (Chair)



Mark A. Alexander



Cory J. Boydston



Craig A. Steinke







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Corporate Governance









CORPORATE GOVERNANCE




Builders FirstSource is committed to conducting its business in a way that reflects best practices, as well as the highest standards of legal and ethical conduct. To
that end, the Board of Directors has approved a comprehensive system of corporate governance documents and policies. These documents and policies are reviewed periodically and updated as necessary to reflect changes in regulatory requirements and
evolving governing practices. These policies em




The above information was disclosed in a filing to the SEC. To see the filing, click here.

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