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Table of Contents
SCHEDULE 14A INFORMATIONProxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
FiledbytheRegistrant☒FiledbyaPartyotherthantheRegistrant☐
Checktheappropriatebox:☐ PreliminaryProxyStatement
☐ Confidential for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
☒ DefinitiveProxyStatement
☐ DefinitiveAdditionalMaterials
☐ SolicitingMaterialUnder§240.14a-12
Jacobs Engineering Group Inc.(Name of Registrant as Specified In Its Charter)
N/A(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
PaymentofFilingFee(Checktheappropriatebox):☒ Nofeerequired.
☐ FeecomputedontablebelowperExchangeActRules14a-6(i)(1)and0-11.
(1) Titleofeachclassofsecuritiestowhichtransactionapplies:
(2) Aggregatenumberofsecuritiestowhichtransactionapplies:
(3)
PerunitpriceorotherunderlyingvalueoftransactioncomputedpursuanttoExchangeActRule0-11(setforththeamountonwhichthefilingfeeiscalculatedandstatehowitwasdetermined):
(4) Proposedmaximumaggregatevalueoftransaction:
(5) Totalfeepaid:
☐ Feepaidpreviouslywithpreliminarymaterials:
☐
CheckboxifanypartofthefeeisoffsetasprovidedbyExchangeActRule01-11(a)(2)andidentifythefilingforwhichtheoffsettingfeewaspaidpreviously.Identifythepreviousfilingbyregistrationstatementnumber,ortheFormorScheduleandthedateofitsfiling.
(1) AmountPreviouslyPaid:
(2) Form,ScheduleorRegistrationStatementNo.:
(3) FilingParty:
(4) DateFiled:
Table of Contents
Notice of 2018
Annual Meeting of Shareholders and Proxy Statement
Jacobs Engineering Group Inc.
Table of Contents
LETTER TO SHAREHOLDERSFROM OUR CHAIRMAN & CEODearFellowShareholder,
TherehasneverbeenamoreexcitingtimetobeatJacobs.TheCompany’sperformanceremainssolid,withafoundationbuiltuponourpeople’sdedication,talent,innovation,commitmenttosafetyandourcultureofcaring,alongwithawillingnesstocreateabridgetoastronger,biggerandbetterJacobs.
Governance and Compensation Practices
Asyourelectedfiduciaries,westronglybelievethatcomprehensivecorporategovernanceoversight,combinedwithhighlytalentedpeopleexecutingacompellingstrategy,isfundamentaltobuildinglong-termshareholdervalue.Furthermore,ourBoardembraceshighlevelsofintegrityandcorporategovernanceprocesses,withacontinuousreviewandrefinementofourpractices.
BoardStructure–TheBoardiscomprisedof10memberswhomtogetherbringrichindustryexperienceanddiversebackgrounds.OurBoardmembersareelectedonanannualbasisunderamajorityvotingstandard.TheaveragetenureofourBoardmembersis8years,with4newlyappointeddirectorswithinthelast5years.WeplantoaddanadditionalBoardmemberinconnectionwithourplannedacquisitionofCH2MHILLCompanies,Ltd.(“CH2M”).
Oversight–TheBoardishighlyengagedandmeetswithmanagementonaregularbasistoprovidestrategicguidance,includingthoroughdiligenceonacquisitionanddivestitureopportunities.Aspartofourfocusonoversight,weappointedaleadindependentdirectortoensureindependentleadershipintheboardroom.
ExecutiveCompensation–Webelieveinpayforperformanceexecutivecompensationthatincentivizescreatingandsustaininglong-termshareholdervalue.Themajorityofthecompensationforournamedexecutiveofficersisperformance-based.Thiscompensationisdependentontheachievementofacombinationofbothnear-termandlong-termfinancialtargets.Wealsoholdshareholderadvisoryvoteson“say-on-pay”onanannualbasis.
Value Creation Strategy
Webeganfiscal2017withan“investorday”outliningourthree-yearstrategyandshowcasingourbusinessandculturaltransformationinitiatives.Ourstrategyisbasedonthreekeypriorities:
BuildaHighPerformanceCulture–Reinforceacultureofaccountability,inspirationalleadershipandinnovationthatwilldrivelong-termoutperformance.
TransformtheCore–Fundamentallychangethewayweoperatetoimproveprojectdelivery,saleseffectivenessandbusinessexcellence.
GrowProfitably–Executeabalancedstrategyfocusedonorganicgrowth,acquisitionsandactivemanagementofportfolioofbusinessestodriveprofitablegrowthinthemostattractivesectorsandgeographies.
Throughouttheorganization,ourcultureisthefoundationonwhichwebuildourreputationofexcellenceinthemarketsweserve.Thisstrongfoundationisbasedonourlongstandingcommitmenttosafetyandintegrity,supportedbyfourcorevalues:(1)peoplearetheheartofourbusiness,(2)clientsareourvaluedpartners,(3)performanceexcellenceisourcommitment,and(4)profitablegrowthisanimperative.
Aspartofourefforttotransformthecoreofourbusiness,wecompletedarestructuringprogramthatweexpectwillresultinannualcostsavingsofover$289million.Duringfiscal2017,wealsoinvestedapproximately$30millionintechnologymodernizationandprocessimprovementstoenhanceourbusinesscapabilitiesandimproveclientservice.
2018ProxyStatement |
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Toreinforceourmanagement’sfocusonprofitablegrowth,weintroducedagrossmargininbacklogmetrictoourshort-termincentiveplanandaddedreturnoninvestedcapital(ROIC)asaperformancemetricinourlong-termincentiveplan.Thesenewmetricsalignourleaders’performancemorecloselywithbuildinglong-termshareholdervalue.
Asweprogressedthroughfiscal2017,wedemonstratedconsistentexecutionagainstourfinancialstrategytoachieveprofitablegrowth.Inthefourthquarter,revenueinflectedtogrowthandgrossmarginpercentagewas18%,upfrom16%intheyearagoperiod.
Fromanorganicgrowthstandpoint,wehadanumberofsignificantnewprojectwinsinkeyend-markets.Forexample,inourAerospace&Technologybusiness,wewereawardeda$4.6billionfollow-oncontractforIntegratedResearchandDevelopmentEnterpriseSolutions.InourBuildings&Infrastructurebusiness,wesignedahistoricjointventureagreementwithSaudiAramcotodevelopnewsocialinfrastructurethroughoutSaudiArabiaandtheMiddleEastregion.
Inthefourthquarter,weannouncedouragreementtoacquireCH2M.ThisacquisitionisexpectedtobetransformationalforJacobsasthecombinedcompanywilladvanceourleadershipinprioritygrowthsectorssuchasTransportation,SocialInfrastructure,Water,Nuclear,andEnvironmentalServices.InadditiontotheCH2Macquisition,infiscal2017,wemadeanumberofsmallerstrategicacquisitions.WeacquiredAquentaConsultingPtyLtd,whichstrengthenedourintegratedprojectservicesdeliverycapabilitiesinAsia-Pacific,andBlueCanopytofurtherstrengthenourcapabilitiesindataanalytics,cybersecurityservicesandapplicationdevelopment.
Whileacquisitionsareacomponentofourstrategy,aspartofouractiveportfoliomanagementwealsoevaluateassetdivestures.Duringthefourthquarterwesoldour40%ownershipinNesteJacobsOy,ajointventurewithNesteOywhichwassupportingcertainenergyoperationsandclients.
Duringfiscal2017,aspartofourongoingcommitmenttodrivelong-termshareholdervalue,weinitiatedaquarterlydividendof$0.15pershareandrepurchasedanaggregateof$97.2millioninshares.
Insummary,2017wasatransformativeyearforJacobs.WearepleasedwiththeCompany’sperformanceduringtheyearandweremainconfidentinourabilitytoexecuteagainstourthree-yearstrategicplantoenhanceshareholdervalue,whilemaintainingourhighstandardsofcorporategovernance.
WelookforwardtoyourattendanceatourannualshareholdermeetingonJanuary17thinNewYorkCity.
StevenJ.DemetriouChairmanandChiefExecutiveOfficer ii | 2018ProxyStatement
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NOTICE OF 2018ANNUAL MEETING OF SHAREHOLDERSWhen: Wednesday,January17,2018,at4:30p.m.,localtimeWhere : TheRitzCarltonNewYork,BatteryPark,ManhattanBallroom,2WestStreet,NewYork,NewYork10004
WearepleasedtoinviteyoutojoinourBoardofDirectorsandseniorleadershipatJacobsEngineeringGroupInc.’s2018AnnualMeetingofShareholders. Items of Business:
1.ElectionofthedirectorsnamedintheProxyStatementtoholdofficeuntilthe2019annualmeeting;
2.AnadvisoryvotetoapprovetheCompany’sexecutivecompensation;3.RatificationoftheappointmentofErnst&YoungLLPastheCompany’s
independentregisteredpublicaccountingfirmforthefiscalyearendingSeptember28,2018;and
4.AnyotherbusinessthatmayproperlycomebeforetheAnnualMeeting.
Record Date:
TheshareholdersofrecordatthecloseofbusinessonNovember22,2017willbeentitledtovoteattheAnnualMeetingandanyadjournmentorpostponementthereof.Proxy Voting:
ItisimportantthatyoursharesberepresentedandvotedattheAnnualMeeting.Youcanvoteyoursharesbycompletingandreturningtheproxycardorvotinginstructioncardsenttoyou.YoualsohavetheoptionofvotingyourshareselectronicallyontheInternetorbytelephone.Votinginstructionsareprintedonyourproxycard,votinginstructioncardorNoticeofInternetAvailabilityofProxyMaterials.Toensureyoursharesarerepresentedatthemeeting,pleasecastyourvotebymail,telephoneorInternetassoonaspossible,evenifyouplantoattendthemeetinginperson.
How to Cast your VoteYourvoteisimportant.AllshareholderswhoownedcommonstockoftheCompanyatthecloseofbusinessontheRecordDateofNovember22,2017mayvote.Youmayvoteinoneofthefollowingways:
Vote by Internetwww.proxyvote.com
Vote by Telephone1(800)690-6903
Orthetelephonenumberonyourproxycard
Vote by MailSign,dateandreturnyour
proxyorvotinginstructioncard
Vote in PersonAttendthemeetinginNewYork,NewYorkonJanuary
17,2018
Ifyoursharesareheldinastockbrokerageaccountorbyabankorotherrecordholder,pleasereferto
theinstructionsfromyourbank,brokerageaccount,orotherrecordholder.
By order of the Board of Directors,
Michael R. TylerSeniorVicePresident,GeneralCounselandCorporateSecretary
Important Notice Regarding the Availability of Proxy Materials for the Annual Shareholder Meeting to be Held on January 17, 2018
TheProxyStatementandaccompanying2017AnnualReporttoShareholdersareavailableathttp://materials.proxyvote.com/469814
2018ProxyStatement | iii
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iv | 2018ProxyStatement
TABLE OF CONTENTS LETTER TO OUR SHAREHOLDERS i
NOTICE OF THE 2018 ANNUAL MEETING AND HOW TOVOTE iii
PROXY STATEMENT 1
General 1
AbouttheAnnualMeeting 1
PROPOSAL NO. 1 – ELECTION OF DIRECTORS 4
MEMBERS OF THE BOARD OF DIRECTORS 4
DirectorExperienceMatrix 5
DirectorBiographies 6
CORPORATE GOVERNANCE 16
Highlights 16
TheBoard’sRoleinRiskOversight 17
BoardLeadershipStructure 18
BoardComposition 18
IndependenceofDirectors 19
DirectorNominations 19
CommitteesoftheBoardofDirectors 20
CorporateGovernanceGuidelines 21
DirectorEducation 22
AnnualPerformanceEvaluations 22
AttendanceatMeetingsoftheBoardanditsCommitteesandtheShareholderMeeting 22
CodeofEthics 22
StockOwnershipGuidelines 23
ContactingtheBoardofDirectors 23
AvailabilityofDocuments 24
CompensationofDirectorsforFiscal2017 24
Forward-LookingStatements 25
PROPOSAL NO. 2 – ADVISORY VOTE TO APPROVEEXECUTIVE COMPENSATION 26
COMPENSATION COMMITTEE REPORT 27
COMPENSATION DISCUSSION AND ANALYSIS(“CD&A”) 28
ExecutiveSummary 28
OurExecutiveCompensationPhilosophy 29
OurExecutiveCompensationProgramandPractices 29
TheCompensationDecisionProcess 30
AssessingCompensationCompetitiveness 31
ShareholderEngagementandSay-on-Pay 32
CompensationElements 32
OtherBenefitsandPolicies 43
EXECUTIVE COMPENSATION 47
SummaryCompensationTable 47
NarrativeDisclosuretoSummaryCompensationTable 48
2017GrantsofPlan-BasedAwards 49
OutstandingEquityAwardsofNEOsat2017FiscalYear-End 50
OptionExercisesandStockVestedinFiscal2017 51
EquityCompensationPlanInformation 51
Non-qualifiedDeferredCompensation 52
CompensationUnderVariousTerminationScenarios 53
PROPOSAL NO. 3 – RATIFICATION OF THEAPPOINTMENT OF ERNST & YOUNG LLP 58
REPORT OF THE AUDIT COMMITTEE 59
AUDIT AND NON-AUDIT FEES 60
SECURITY OWNERSHIP 61
SecurityOwnershipofCertainBeneficialOwners 61
SecurityOwnershipofDirectors,NomineesandManagement 62SECTION 16(a) BENEFICIAL OWNERSHIP REPORTINGCOMPLIANCE 63
EXECUTIVE OFFICERS 63
SHAREHOLDERS’ PROPOSALS 63
CERTAIN RELATIONSHIPS AND RELATEDTRANSACTIONS 63
HOUSEHOLDING OF PROXY MATERIALS 64
ANNUAL REPORT, FINANCIAL AND ADDITIONALINFORMATION 65
OTHER BUSINESS 65
Table of Contents
PROXY STATEMENTWeareprovidingtheseproxymaterialsinconnectionwiththe2018AnnualMeetingofShareholdersofJacobsEngineeringGroupInc.
(the“Company”or“Jacobs”).ThisProxyStatementandtheCompany’s2017AnnualReportonForm10-KwerefirstmadeavailabletoshareholdersandtheNoticeofInternetAvailabilityofProxyMaterials,proxycardorvotinginstructioncardwerefirstmailedtoshareholdersonoraboutDecember7,2017.ThisProxyStatementcontainsimportantinformationforyoutoconsiderwhendecidinghowtovoteonthematterstobebroughtbeforetheAnnualMeeting.Pleasereaditcarefully.
GENERAL
The2018AnnualMeetingofShareholders(the“AnnualMeeting”)willbeheldonWednesday,January17,2018,at4:30p.m.,localtime,atTheRitzCarltonNewYork,BatteryPark,ManhattanBallroom,2WestStreet,NewYork,NewYork,10004,andatanyadjournmentorpostponementthereof.
TheprincipalofficesoftheCompanyarelocatedat1999BryanStreet,Suite1200,Dallas,Texas75201.
ABOUT THE ANNUAL MEETING
Who is soliciting my vote?
TheBoardofDirectorsoftheCompany(the“BoardofDirectors”or“Board”)issolicitingyourvoteinconnectionwiththeAnnualMeeting.
What is the purpose of the Annual Meeting?
TheAnnualMeetingwillbetheCompany’sregular,annualmeetingofshareholders.YouwillbevotingonthefollowingmattersattheAnnualMeeting: ProposalNumber Description Board Recommendation
PageReference
1
ElectionofthedirectorsnamedinthisProxyStatementtoholdofficeuntilthe2019annualmeeting;
FOR each nominee
4
2
AnadvisoryvotetoapprovetheCompany’sexecutivecompensation;and
FOR
26
3
RatificationoftheappointmentofErnst&YoungLLPastheCompany’sindependentregisteredpublicaccountingfirmforthefiscalyearendingSeptember28,2018.
FOR
58
How many votes can be cast by shareholders?
Eachshareofcommonstockisentitledtoonevote.Thereisnocumulativevoting.Therewere120,521,384sharesofcommonstockoutstandingandentitledtovoteonNovember22,2017(the“RecordDate”).
How many votes must be present to hold the Annual Meeting?
AmajorityoftheoutstandingsharesofcommonstockasoftheRecordDatemustbepresentattheAnnualMeetinginordertoholdtheAnnualMeetingandconductbusiness.Thisiscalleda“quorum.”YoursharesarecountedaspresentattheAnnualMeetingifyouarepresentattheAnnualMeetingandvoteinperson,aproxycardorvotinginstructioncardhasbeenproperlysubmittedbyyouoronyourbehalf,oryouhavevoted
2018ProxyStatement | 1
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electronicallyontheInternetorbytelephone.Bothabstentionsandbrokernon-votesarecountedaspresentforthepurposeofdeterminingthepresenceofaquorum.A“brokernon-vote”isashareofcommonstockthatisbeneficiallyownedbyapersonorentityandheldbyabrokerorothernominee,butforwhichthebrokerorothernominee(1)lacksthediscretionaryauthoritytovoteoncertainmatters,and(2)hasnotreceivedvotinginstructionsfromthebeneficialownerinrespectofthosespecificmatters.
How many votes are required to elect directors and approve the other proposals?
ProposalNo.1(ElectionofDirectors):Eachdirectoriselectedbyamajorityofthevotescastwithrespecttosuchnomineeinuncontestedelections(thenumberofsharesvoted“for”adirectornomineemustexceedthenumberofsharesvoted“against”thatnominee).Abstentionsandbrokernon-votesarenotcountedforpurposesoftheelectionofdirectorsand,therefore,willhavenoeffectontheoutcomeofsuchelection.
ProposalNo.2(AdvisoryVotetoApproveExecutiveCompensation):TheapprovaloftheadvisoryresolutionontheCompany’sexecutivecompensationrequirestheaffirmativevoteofamajorityofthesharesofcommonstockpresent,inpersonorbyproxy,attheAnnualMeetingandentitledtovote.Abstentionshavethesameeffectasavoteagainsttheadvisoryresolution.Brokernon-voteswillhavenoeffectontheoutcomeoftheadvisoryvotes.TheresultsofadvisoryvotesarenotbindingontheBoardofDirectors.
ProposalNo.3(RatificationoftheAppointmentofErnst&YoungLLPasAuditors):TheratificationoftheselectionofErnst&YoungLLPastheCompany’sindependentregisteredpublicaccountingfirmrequirestheaffirmativevoteofamajorityofthesharesofcommonstockpresent,inpersonorbyproxy,attheAnnualMeetingandentitledtovote.Abstentionshavethesameeffectasavoteagainsttheproposal.Thisproposalisconsideredaroutinematterwithrespecttowhichabrokerorothernomineecangenerallyvoteintheirdiscretion.Therefore,nobrokernon-votesareexpectedinconnectionwiththisproposal.
How do I vote by proxy?
YoucanvoteyoursharesbycompletingandreturningtheproxycardorvotinginstructioncardthatwassenttoyouorbyvotingyourshareselectronicallyontheInternetorbytelephone.YourInternetortelephonevoteauthorizesthenamedproxiestovoteyoursharesinthesamemannerasifyoumarked,signed,andreturnedyourproxycardorvotinginstructioncard.Votinginstructionsareprintedonyourproxycard,votinginstructioncardorNoticeofInternetAvailabilityofProxyMaterials.Youareencouragedtovotebyproxyassoonaspossible,evenifyouplantoattendtheAnnualMeetinginperson.
What if I don’t vote on some of the proposals?
Ifyoureturnyoursignedproxycardorvotinginstructioncardintheenvelopeprovidedtoyoubutdonotmarkselections,yourshareswillbevotedinaccordancewiththerecommendationsoftheBoardofDirectorswithrespecttosuchselections.Similarly,whenyouvoteelectronicallyontheInternetanddonotvoteonallmatters,yourshareswillbevotedinaccordancewiththerecommendationsoftheBoardofDirectorswithrespecttothemattersonwhichyoudidnotvote.Inconnectiontherewith,theBoardofDirectorshasdesignatedMr.StevenDemetriou,Mr.KevinBerrymanandMr.MichaelR.Tylerasproxies.Shareholdersthatvotebytelephonemustvoteoneachmatter.Ifyouindicateachoicewithrespecttoanymattertobeactedupononyourproxycardorvotinginstructioncard,orbyInternetortelephone,yourshareswillbevotedinaccordancewithyourinstructions.
What if I hold my shares in a brokerage account or through a bank or other nominee?
Ifyouareabeneficialownerandholdyoursharesinstreetnamethroughabroker,bankorothernomineeanddonotreturnthevotinginstructioncard,thebroker,bankorothernomineewillvoteyoursharesoneachmatterattheAnnualMeetingforwhichheorshehastherequisitediscretionaryauthority.Underapplicablerules,brokershavethediscretiontovoteonroutinematters,suchastheratificationoftheselectionofindependentregisteredpublicaccountingfirms,butdonothavediscretiontovoteontheelectionofdirectorsoronanyadvisoryvoteregardingtheCompany’sexecutivecompensation.Ifyouholdsharesdirectlyandthroughabroker,bankorothernominee,youmayreceivebothaproxyvotingcardfromtheCompanyandavotinginstructioncardfromyourbroker,bankorothernominee.Youareencouragedtovoteallproxycardsandvotinginstructioncardsyoureceiveassoonaspossible. 2 | 2018ProxyStatement
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Who pays for the proxy solicitation and how will the Company solicit votes?
TheCompanybearstheexpenseofprintingandmailingproxymaterialsandsolicitingproxies.Inadditiontothissolicitationofproxiesbymail,theCompany’sdirectors,officers,andotheremployeesmaysolicitproxiesbypersonalinterview,telephone,facsimile,orelectroniccommunication.Theseindividualswillnotbepaidanyadditionalcompensationabovetheirregularsalariesandwagesforanysuchsolicitation.TheCompanywillrequestbrokersandothernomineeswhoholdsharesofcommonstockintheirnamestofurnishproxymaterialstothebeneficialownersofsuchshares.TheCompanywillreimbursesuchbrokersandothernomineesfortheirreasonableexpensesincurredinforwardingsolicitationmaterialstosuchbeneficialowners.Inaddition,wehaveretainedMacKenziePartners,Inc.toassistinthesolicitationofproxiesforatotalfeeofupto$20,000plusreimbursementofexpenses.MacKenziePartners,Inc.maysolicitproxiesinperson,bytelephoneorelectroniccommunication.
Can I change or revoke my vote?
Yes.Evenifyousignandreturntheproxycardorvotinginstructioncardintheformprovidedtoyou,votebytelephone,orvoteelectronicallyontheInternet,youretainthepowertorevokeyourproxyorchangeyourvoteatanytimebeforeitisexercisedattheAnnualMeeting.YoucanrevokeyourproxyorchangeyourvoteatanytimebeforethatdeadlinebygivingwrittennoticetotheSecretaryoftheCompany,specifyingsuchrevocation.Youmayalsochangeyourvotebytimelydeliveringavalid,later-datedproxyorvotinginstructioncardorbysubmittingalater-datedvotebytelephoneorelectronicallyontheInternetorbyvotinginpersonattheAnnualMeeting.However,pleasenotethatifyouwouldliketovoteattheAnnualMeetingandyouarenottheshareholderofrecord,youmustrequest,complete,anddeliveraproxyfromyourbroker,bankorothernominee.
Whom can I contact if I have questions or need assistance in voting my shares?
PleasecontactMacKenziePartners,Inc.,thefirmassistingusinthesolicitationofproxies,at:
MacKenziePartners,Inc.105MadisonAvenue
NewYork,[email protected]:(800)322-2885
orCollect:(212)929-5500
2018ProxyStatement | 3
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PROPOSAL NO. 1 — ELECTION OF DIRECTORS
The Board of Directors unanimously recommends that you vote FOR the election of each nominee.
MEMBERS OF THE BOARD OF DIRECTORS Committee Memberships
Director Nominees Independent Director
Since Audit
Human Resource and Compensation
Nominating andCorporate Governance
StevenJ.Demetriou(1)Chairman&CEO
2015
LindaFayneLevinson(2)LeadIndependentDirector
●
1996
JosephR.Bronson ● 2003 Chair JuanJoséSuárezCoppel ● 2013 ● ●RobertC.Davidson,Jr. ● 2001 ChairGeneralRalphE.Eberhart ● 2012 ● ●DawneS.Hickton ● 2015 ● ●RobertA.McNamara ● 2017 ● PeterJ.Robertson ● 2009 Chair ChristopherM.T.Thompson ● 2012 ● ● (1) AsChairman,Mr.DemetriouisinvitedtoattendeachCommitteemeeting,excepttotheextentthataCommitteerequeststomeetwithoutMr.Demetrioupresent.(2) Ms.FayneLevinsonservesasLeadIndependentDirectorandpresidesovermeetingsoftheindependentdirectorsandisinvitedtoattendeachCommittee
meeting.
Summarizedinthefollowingpagesarethespecificexperience,qualificationsandbackgroundinformationofeachdirectornomineethatledtheBoardofDirectorstoconcludethateachsuchpersonshouldserveontheBoardofDirectors. 4 | 2018ProxyStatement
What are you voting on?
AttheAnnualMeeting,shareholderswillbeaskedtoelecttendirectorstoserveontheBoardofDirectors.TheBoardofDirectorshasnominatedStevenJ.Demetriou,LindaFayneLevinson,JosephR.Bronson,JuanJoséSuárezCoppel,RobertC.Davidson,Jr.,GeneralRalphE.Eberhart,DawneS.Hickton,RobertA.McNamara,PeterJ.Robertson,andChristopherM.T.Thompsonforelectionasdirectorsforone-yeartermsexpiringatthe2019annualmeetingofshareholders.Whenelected,directorsserveuntiltheirsuccessorshavebeendulyelectedandqualifiedoruntilanysuchdirector’searlierresignationorremoval.
Ifanynomineeforanyreasonisunabletoserveorwillnotserve,proxiesmaybevotedforsuchsubstitutenomineeastheproxyholdermaydetermine.TheCompanyisnotawareofanynomineewhowillbeunabletoorwillnotserveasadirector.
What is the Vote Required?
Eachdirectoriselectedbyamajorityofthevotescastwithrespecttosuchdirectorinuncontestedelections(thenumberofsharesvoted“for”adirectornomineemustexceedthenumberofsharesvoted“against”thatnominee).TheCompanydidnotreceiveanyshareholdernominationsforanydirectorandthustheelectionofdirectorsattheAnnualMeetingwillbeanuncontestedelection.
Abstentionsandbrokernon-votesarenotcountedforpurposesoftheelectionofdirectorsand,therefore,willhavenoeffectontheoutcomeoftheelection.
Table of Contents
Director Experience Matrix
OurDirectorshavelivedandworkedaroundtheworld
TheBoardhasaGoodBalanceofIndustryandSectorExperience
✓ Infrastructure ✓ Government ✓ Aerospace ✓ Military ✓ Oil&Gas ✓ SpecialtyChemical ✓ Mining&Metals ✓ Financial ✓ Banking ✓ Manufacturing ✓ Environmental
Competencies/AttributesJosephBronsonJuanJoséSuárezCoppelRobertC.Davidson,Jr.StevenJ.DemetriouGeneralRalphE.EberhartDawneS.HicktonLindaFayneLevinsonRobertA.McNamaraPeterJ.RobertsonChristopherM.T.ThompsonCOMPLIANCECONSIDERATIONSIndependentDirectorAuditCommitteeFinancialExpert(SECRules)FinanciallyLiterate(NYSERules)SecurityClearanceEXPERIENCECEOPublicCompanyCEOPrivateCompanyCFOGovernment/MilitaryInternationalOperationsSTRATEGICCOMPETENCIESFinancial(Reporting,Auditing,InternalControls)Strategy/BusinessDevelopment/M&AHumanResources/OrganizationalDevelopmentProjectDeliveryLegalRiskManagement/CompliancePublicCompany/GovernanceTechnology
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Director Biographies
Steven J. Demetriou
Chairman and Chief Executive Officer
Mr.Demetrioubringsinternationalbusinessperspectivesandmorethan30yearsofexperienceinleadershipandseniormanagementrolestotheBoard,including15yearsintheroleofchiefexecutiveofficer.Hebringsexperienceinavarietyofindustries,includingmetals,specialtychemicals,oil&gas,manufacturingandfertilizers,whichhehasgainedoverthecourseofhiscareer.Hisbreadthofexperienceisparticularlyvaluable,giventhevarietyofindustriesinwhichtheCompany’sclientsoperate.
Business Experience• ChairmanandChiefExecutiveOfficerofAlerisCorporation(2004-2015)
• ChiefExecutiveOfficerofAleriswhenitfiledforChapter11in2009andwhenitsuccessfullyemergedfromChapter11inJune2010(2004-2015)
• ChiefExecutiveOfficerofNoveon,Inc.(2001-2004)
• ExecutiveVicePresidentofIMCGlobalInc.(1999-2001)
• VariousmanagementpositionswithCytecIndustriesInc.andExxonMobilCorporation(1981-1999)
Education• BachelorofSciencedegreeinchemicalengineeringfromTuftsUniversity
Public Company Boards• DirectorandmemberoftheCompensationandFinanceCommitteesofFirstEnergyCorp.(2017-present)
• ChairofKratonPerformancePolymers’CompensationCommitteeandamemberofitsNominatingandCorporateGovernanceCommittee(2009-2017)
• Non-ExecutiveChairmanofFoster-Wheeler(2011-2014)
• ChairoftheCompensationCommitteeandamemberoftheNominating/CorporateGovernanceCommitteeofOMGroup(2005-2015)
Private Boards & Community Involvement• BoardMemberofUS-SaudiArabianBusinessCouncil
• BoardMemberofBusinessCouncilforInternationalUnderstanding
• BoardMemberofCuyahogaCommunityCollegeFoundation
• MemberofDallasCitizen’sCouncil• MemberofDallasRegionalChamber
6 | 2018ProxyStatement
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Linda Fayne Levinson
Lead Independent Director
Ms.FayneLevinson’sdiverseexperienceasaconsultant,alineexecutiveandaventureinvestoracrossarangeofindustriesbringsin-depthknowledgeofstrategy,innovation,technologyandoperationstotheBoardofDirectors.Herserviceontheboardsofmanyglobalcompanies,includingherserviceasaChairofaboard,aleaddirectorandaschairofCompensationandNominatingandGovernancecommittees,providestheBoardinsightregardingcompensationstrategiesandothercorporategovernancematters,bothofwhicharekeyareasoffocusintoday’scorporateenvironment.
Business Experience• PartnerofGRPPartners,aventurecapitalfirm(1997-2004)
• PresidentofFayneLevinsonAssociates(1994-1997)
• ExecutiveatCreativeArtistsAgency(1993)• PartneratWingsPartners(1989-1992)• SeniorVicePresidentofAmericanExpressTravelRelatedServicesCo.,Inc.(1984-1987)
• McKinsey&Company(1972-1981;ElectedPartner1978)
Education• BachelorofArtsdegreefromBarnardCollege• MAfromHarvardUniversity• MBAfromNewYorkUniversity,LeonardN.SternSchoolofBusiness
Public Company Boards• NCRCorporation(ChairoftheCompensationCommittee)(1997-present)
• Hertz(2012-2017);ChairoftheBoard(2014-2016);ChairofNominatingandGovernanceCommittee(2014);ChairoftheCompensationCommittee(2015-2016)
• MemberoftheBoardofIngramMicro,Inc.(2004-2016);ChairoftheCompensationCommittee
• WesternUnion(2006-2016);ChairofCompensationCommittee(2006-2012);memberoftheAuditCommittee
• DemandTec(2005-2008)• Lastminute.com,plc(1999-2002)• OvertureServicesInc.(1998-2003)• CyberSourceInc.(1997-2001)• Genentech(1991-1998)Private Boards & Community Involvement• Director,Kount,Inc.(Fintech)• Director,ClearPathRobotics,Canada• Member,McKinseyNewVentureAdvisoryCouncil
• MemberoftheU.S.AdvisoryBoardofCVCCapitalPartners
• SeniorAdvisor,RREVentures,NY• FormerTrusteeatBarnardCollegeandchairstheInvestmentCommittee
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Joseph R. Bronson
Principal and Chief Executive Officer of The Bronson Group, LLC., Strategic Advisor of Cowen andCompany
Mr.Bronsonbringsaccountingexpertiseandfamiliaritywithfinancialstatements,financialdisclosures,auditingandinternalcontrolstotheBoardfromhispriorserviceasChiefFinancialOfficerofAppliedMaterials,Inc.HisseniormanagementlevelexperienceatlargepubliclytradedcompaniesalsobringstotheBoardadditionalperspectiveregardingtheday-to-dayoperationsoflargeorganizationsaswellascorporatebestpractices.
Business Experience• PrincipalandChiefExecutiveOfficerofTheBronsonGroup,LLC
• StrategicAdvisorofCowenandCompany(2014-present)
• AdvisoryDirectortoGCA/Savvian,LLC(2011-2014)
• ChiefExecutiveOfficerofSiliconValleyTechnologyCorporation(2009-2010)
• PresidentandChiefOperatingOfficerofSanmina-SCI(2007-2008)
• Co-ChiefExecutiveOfficerandDirectorofFormFactor(2004-2007)
• ExecutiveVicePresidentandChiefFinancialOfficerofAppliedMaterials,Inc.(1998-2005)
• VariousexecutivemanagementandgeneralmanagementpositionsatAppliedMaterials,Inc.(1984-1998)
Education• BachelorofSciencedegreefromFairfieldUniversity
• M.B.A.fromUniversityofConnecticut• CertifiedPublicAccountantandamemberoftheAmericanInstituteofCPAs
• RegisteredInvestmentAdvisorandholderofSeries63andSeries7credentialsfromtheFinancialIndustryRegulatoryAuthority(FINRA)from2011topresent
Public Company Boards• DirectorofMaximIntegratedProducts,Inc.(2007-present)
• DirectorofPDFSolutions,Inc.(2014-present)Private Boards & Community Involvement• TrusteeofFairfieldUniversity,Fairfield,Connecticut
• RegentofSantaClaraUniversity,SantaClara,California
• RegentofLoyolaMarymountUniversity,LosAngeles,California
• ChairoftheAdvisoryBoardattheLeaveySchoolofBusinessatSantaClaraUniversity,SantaClara,California
• TrusteeofBellarmineCollegePreparatorySchool,SanJose,CaliforniaandpastChairoftheBoardofTrustees
• DirectorofRyanHercoFlowSolutions,Burbank,California
• DirectorofSiltectra,Dresden,Germany
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Juan José Suárez Coppel
Former General Director (Chief Executive Officer) of Petroleos Mexicanos
Mr.SuárezCoppelprovidessolidexpertiseintheoilandgasindustry,whichisparticularlyvaluablegiventheCompany’scustomersinthisindustry.HealsobringsextensiveknowledgeandexperienceinfinancemattersandhisexperienceasanexecutivebringsperspectiveonmanagementandoperationalmatterstotheBoard.HisbackgroundininternationaloperationsalsoassiststheBoardinlightofourgrowinginternationalpresence.
Business Experience• GeneralDirector(ChiefExecutiveOfficer)ofPetrolesMexicanos(2009-2012)
• ChiefFinancialOfficeratPEMEX(2001-2006)• ChiefofStaffofMexico’sSecretaryofFinanceandPublicCredit(2000-2001)
• Co-HeadofEquityDerivativeTradingatBanamex(1991-1995)
• SeniorleadershippositionsatGrupoTelevisaandGrupoModelo(1991-1995)
• ConsultantforPetroleosEbano
Education• GraduateoftheInstitutoTecnológicoAutónomoinMexicoCity
• Ph.D.ineconomicsfromtheUniversityofChicago• TaughteconomicsatseveralleadinguniversitiesinMexico,EuropeandtheUnitedStates
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Robert C. Davidson, Jr.
Former Director, Chairman and Chief Executive Officer of Surface Protection Industries, Inc.
Mr.Davidsonbringsstrongleadership,knowledgeandexperienceofstrategicandfinancialmatterstotheBoardfromhisexpertisefoundingandbuildingprivatecompaniesservingnationalandinternationalmarketsduringhis30-yearcareeratSurfaceProtectionIndustries,Inc.,includinghisserviceaschiefexecutiveofficerandchairman.HealsobringstotheBoardimportantknowledgeofpubliccompanygovernancethroughhisserviceonmultiplepubliccompanyboards,includingserviceoncompensationcommittees.
Business Experience• ChairmanandChiefExecutiveOfficerofSurfaceProtectionIndustries,Inc.(1977-2007)
• PresidentofRDavidsonandAssociates(2007toPresent)
• VicePresidentofUrbanNationalCorporation(1972-1974)
• ManagementConsultantatCresap,McCormick&Paget(1969-1972)
Education• BachelorofArtsdegreefromMorehouseCollege• M.B.A.inMarketingandFinancefromtheUniversityofChicago
• HonoraryDoctorateofLawsfromMorehouseCollege
Public Company Boards• BroadwayFinancialCorporation(2003-present)• ChairofCompensationCommittee• ChairofInternalAssetReviewCommittee• MemberofGovernanceCommittee• MemberofRisk&ComplianceCommittee
Private Boards & Community Involvement• ChairmanoftheBoardofTrusteesoftheArtCenterCollegeofDesign,Pasadena,California
• BoardofDirectorsofCedars-SinaiMedicalCenter(ViceChairofAuditCommittee),LosAngeles,California
• BoardmemberoftheSmithsonianAmericanArtMuseum,Washington,DC
• ChairmanEmeritusoftheBoardofTrusteesofMorehouseCollege
• MemberoftheAdvisoryCouncilattheUniversityofChicagoGraduateSchoolofBusiness
• Previouslyservedonboardsofnumerousotherorganizations,includingChildren’sHospital,LosAngeles;LAChamberofCommerce;WeingartCenterfortheHomeless,L.A.;amongothers
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General Ralph E. Eberhart (USAF, Retired)
Director, Chairman and President of Armed Forces Benefit Association
GeneralEberhartbringsvaluableleadershipandmanagementskillsdevelopedthroughhismilitaryservice.His36-yearmilitarycareerprovidestheBoardwithvaluableexperienceandknowledgeofgovernmentandthemilitary,whichisparticularlyvaluablegiventheCompany’sgovernmentandmilitarycontracts.
Business & Military Experience• FormerGeneralOfficeroftheUnitedStatesAirForce(1997-2005)
• Numeroushigh-levelcommandandstaffpositionswithintheAirForce(1968-2005)
• FormerCommanderoftheNorthAmericanAerospaceDefenseCommand(NORAD)(2002-2005)
• FormerCommanderofAirCombatCommandandU.S.SpaceCommand(1999-2002)
Education• UnitedStatesAirForceAcademy
Public Company Boards• DirectorofRockwellCollins(2007-present)
• DirectorofTriumphGroup,Inc.(2010-present)
• DirectorofVSECorporation(2007-present)
Private Boards & Community Involvement• Director,ChairmanandPresidentofArmedForcesBenefitAssociation
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Dawne S. Hickton
Former Director, Vice Chair, President and Chief Executive Officer of RTI International Metals, Inc.
Ms.HicktonprovidesawealthofprovenbusinessleadershipexperiencewithaCEO’sperspective,andadvancedstrengthsinprojectmanagementandengineeringexpertise.HerbackgroundasaseniorofficerinapubliclytradedcompanyfornearlytwodecadesisparticularlyvaluabletotheBoard,asitlendsacontemporaryunderstandingofhowtoengagewiththeCompany’sstakeholders,inadditiontodrivingastronggrowthagenda.
Business Experience• PresidentofCumberlandHighstreetPartners(2016-present)
• ChairmanoftheFederalReserveBankofCleveland(beginningJanuary2018)
• DeputyChairoftheFederalReserveBankofCleveland(endingJanuary2018)
• ChiefExecutiveOfficerofRTIInternationalMetals,Inc.(2007-2015)
Education• GraduateoftheUniversityofRochester• J.D.fromtheUniversityofPittsburghSchoolofLaw
Public Company Boards• Boardmember,ChairoftheNominating&CorporateGovernanceCommitteeandmemberoftheCompensation&ManagementDevelopmentCommittee,theAuditCommitteeandtheExecutiveCommitteeofTriumphGroup(2015-present)
• BoardmemberandmemberoftheRiskCommitteeandAuditCommitteeofHaynesInternationalInc.(2017-present)
• DirectorofFNBCorporation(2006-2013)
Private Boards & Community Involvement• BoardmemberofSmithsonian’sNationalAirandSpaceMuseum
• BoardmemberofTheWingsClub• DirectorofCorporateAngelNetwork• MemberoftheUniversityofPittsburgh’sBoardofTrustees,servingontheStudentAffairsandPropertyandFacilitiesCommittees
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Robert A. McNamara
Retired Group Chief Risk Officer of Lendlease Corporation (ASX)
Mr.McNamarahasover35yearsofexperiencemanagingglobalbusinessesinthedevelopment,designanddeliveryofprojectsinthegovernment,institutional,infrastructureandindustrialsectorsinseniormanagementpositions.HehasbeenresponsibleforensuringLendleaseachievesworld’sbestpracticesinriskmanagementandoperationalexcellence.HealsooversawLendlease’sBuilding,Engineering,andServicesbusinessesinAustralia.Priortothis,Mr.McNamarawasChiefExecutiveOfficerAmericasofLendlease.
Business Experience• GroupChiefRiskOfficer,LendleaseCorporation(2010-2017)
• ChairmanandChiefExecutiveOfficerofPenhall/LVIInternational(PLI)(2006-2010)
• SeniorGroupPresidentofFluorCorporation(1996-2006)
• PresidentandChiefOperatingOfficerofMarshallContractors(1977-1996)
Education• Bachelor’sdegreeinEconomicsfromBrownUniversity
• CompletedtheConsortia1ProgramatThunderbirdInternationalBusinessSchool
• CertificationasaPublicBoardDirectorfromtheUCLAAndersonSchoolofManagement
Public Company Boards• BoardmemberofUDR,Inc.(2014-present)
Private Boards & Community Involvement• PastBoardmemberoftheUSChinaBusinessCouncil
• PastChairmanfortheConstructionIndustryInstitute’sTechnologyImplementationTaskForce.
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Peter J. Robertson
Former Director and Vice Chairman of the Board of Directors of Chevron Corporation
Mr.RobertsonbringsvitalknowledgeandexperiencetotheBoardintheoilandgasindustryfromhis36-yearcareeratChevronCorporation,whichisparticularlyimportantgiventhenumberoftheCompany’scustomersintheenergyandrefiningsector.Healsobringsvaluableinternationalexperienceindevelopedanddevelopingcountries,includinginteractionswithgovernmentsatthehighestlevels,fromhisexecutiveexperienceandthemultiplechairmanshipanddirectorpositionshehasheldandcurrentlyholds.Mr.Robertsonalsohasextensiveexperienceontheboardsofnot-for-profitentitieswithglobalreachandpubliccompanyboardsaswellasimportantaccountingknow-howandexperiencewithpubliccompanyfinancialstatements,disclosuresandaccountingrulesfromhisserviceasChiefFinancialOfficerofChevronUSA
Business Experience• ExecutiveVicePresident,DirectorandViceChairmanofChevronBoard(2002-2009)
• PresidentofChevron’sworldwideexploration,productionandglobalgasbusinesses(2002-2004)
• PresidentofChevron’soverseasexplorationandproductionbusinesses(2000-2002)
• PresidentofChevron’sNorthAmericaexplorationandproductionbusinesses(1996-2000)
• PresidentofChevron’snaturalgasprocessingbusiness(1990-1994)
• ChiefFinancialOfficerofChevronUSA(1985-1990)
Education• BachelorofSciencedegreeinMechanicalEngineeringfromtheUniversityofEdinburgh
• M.B.A.fromtheUniversityofPennsylvaniaThouronScholarfromWhartonSchool
Public Company Boards• ViceChairmanoftheBoardforChevronCorporation(2002-2009)
• Non-executivedirectorofSasolLimited(2012-present)
• DirectorDynegyInc.(1996-2000)Private Boards & Community Involvement• Co-chairmanoftheUSSaudiArabianBusinessCouncil
• ChairmanoftheWorldAffairsCouncilofNorthernCalifornia
• FormerChairmanoftheUSEnergyAssociation• Director,SylvanSource,Inc.• AdvisorydirectorofCampbell-Lutyens
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Christopher M.T. Thompson
Former Chairman and Chief Executive Officer of Gold Fields Ltd.
Mr.Thompsonhasanextensivebackgroundintheminingindustry,providingstrongknowledgeofandmanagementandoperationalexperienceinthisareatotheBoard,whichisparticularlyvaluablegiventheCompany’scustomersinthisindustry.Mr.Thompsonalsoprovidesknowledgeofthebiotechnologyindustry,whichisalsoimportantgiventheCompany’scustomersinthatindustry.HisinternationalexperiencebringstotheBoardadditionalperspectiveregardingthedaytodayoperationsoflargeorganizationsaswellascorporatebestpractices.
Business Experience• Director,ChairmanandChiefExecutiveOfficerofGoldFieldsLtd.(1998-2005)
• ChairmanoftheWorldGoldCouncil(2002-2005)• FounderandChiefExecutiveOfficerofCastleGroupLtd.(1992-1998)
Education• Bachelor’sdegreeinlawandeconomicsfromRhodesUniversity,SouthAfrica
• Master’sdegreeinmanagementstudiesfromBradfordUniversity,U.K.
Public Company Boards• BoardmemberofRoyalGold,Inc.(2013-present)• BoardmemberofTeckResourcesLimited(2003-2015)
• BoardmemberofGoldenStarResourcesLtd.(2010-2015)
• BoardmemberofvariousportfoliocompaniesofCastleGroup(1985-1999)
Private Boards & Community Involvement• BoardmemberofTheColoradoSchoolofMinesFoundation(2013-2017)
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CORPORATE GOVERNANCE
HighlightsJacobshasastrongtrackrecordofintegrityandcorporategovernancepracticesthatpromotethoughtfulmanagementbyitsofficersandBoardofDirectorsfacilitatingprofitablegrowthwhilestrategicallybalancingrisktomaximizelong-termshareholdervalue.BelowisasummaryofcertaininformationaboutourBoardofDirectorsandgovernancebestpracticesemployedbytheCompany:
SIZE OF BOARD
10
AVERAGEDIRECTORTENURE INYEARS
8
BOARD
MEETINGSHELD IN FISCAL
2017
13
NUMBER OFINDEPENDENTDIRECTORS
9
PERCENTFEMALE ORETHNICALLYDIVERSE
40%
NEW
DIRECTORS INTHE LAST FIVE
YEARS
4
Corporate Governance Best Practices
✓ BoardComprisedof90%IndependentDirectors✓ CommitmenttoBoardRefreshment(FourNew
DirectorsinPastFiveYears)✓ HighlyEngagedLeadIndependentDirector✓ AnnualElectionofDirectors✓ MajorityVotingforDirectors✓ MandatoryAnnualAnti-CorruptionCompliance
TrainingforDirectors✓ CodeofEthicsforDirectors,Officers&Employees✓ AnnualSelf-EvaluationsbyBoardandeach
Committee
✓ RigorousDirectorSelectionProcess✓ HighlyEngagedBoard–13BoardMeetings
(includingregularlyscheduledandspecialmeetings)wereheldinfiscal2017
✓ DirectorAttendanceatBoard&CommitteeMeetings>97%
✓ FullyIndependentCommittees✓ ComprehensiveRiskOversightbyFullBoardand
Committees✓ ExtensiveStockholderEngagementEfforts✓ StockOwnershipGuidelinesforDirectorsand
ExecutiveOfficers✓ RegularEnterpriseRiskManagementReviewsby
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Corporate Governance Enhancements In Fiscal 2017
✓ Increasedstockownershipguidelinesfordirectorsto5xannualcashretainer
✓ Restricteddirectorsandexecutiveofficersfromsellingstockuntiltheymeetorexceedstock
ownershipguidelines
✓ Reducedthelimitonthenumberofoutsidepubliccompanyboardsonwhichdirectorscanservetofour
✓ RefreshedBoardCommitteecompositiontoencouragefreshperspectivesandinsight
✓ LaunchednewVision,MissionandValuestosetthehighestlevelofintegrityandsafetyacrossthe
Company
✓ Increasedshareholderengagement,conductingover200individualmeetings/callswithinvestors
The Board’s Role in Risk Oversight
TheBoardofDirectorsoverseestheCompany’sriskmanagementfunction.ItoverseesaCompany-wideapproachtoriskmanagement,designedtoenhancelong-termshareholdervalue,supporttheachievementofstrategicobjectivesandimproveorganizationalperformance.TheBoarddeterminestheappropriatelevelofriskfortheCompany,assessesthespecificrisksfacedbytheCompanyandreviewsthestepstakenbymanagementtomanagethoserisks.TheBoard’sinvolvementinsettingtheCompany’sbusinessstrategyfacilitatestheseassessmentsandreviews,culminatinginthedevelopmentofastrategythatreflectstheconsensusoftheBoardandmanagementastoappropriatelevelsofriskandtheappropriatemeasurestomanagethoserisks.
Throughthisframework,riskisassessedthroughouttheenterprise,focusingonrisksarisingoutofvariousaspectsoftheCompany’sstrategyandtheimplementationofthatstrategy,includingfinancial,legal/compliance,operational/strategic,healthandsafety,andcompensationrisks.TheBoardalsoconsidersriskwhenevaluatingproposedtransactionsandothermatterspresentedtotheBoard,includingacquisitionsandfinancialmatters.Forexample,thereweresixspecialBoardmeetingsheldinconnectionwiththependingCH2Mtransactionpriortosigningthedefinitiveacquisitionagreement.Inaddition,theindependentdirectorsdiscussriskmanagementduringexecutivesessionswithoutmanagementpresent.
WhiletheBoardmaintainstheultimateoversightresponsibilityfortheriskmanagementprocess,itsCommitteesoverseeriskincertainspecifiedareas:
• AuditCommittee:Addressesfinancialrisk,includinginternalcontrols,anddiscussestheCompany’sriskprofilewiththe
Company’sindependentregisteredpublicaccountingfirm.TheAuditCommitteealsoreviewspotentialviolationsoftheCompany’svariouscodesofethicsandrelatedcorporatepolicies.
• HumanResourceandCompensationCommittee:Periodicallyreviewscompensationpracticesandpoliciestodetermine
whethertheyencourageexcessiverisktaking,includinganannualreviewofmanagement’sassessmentoftheriskassociatedwiththeCompany’scompensationprogramscoveringitsemployees,includingexecutives,anddiscussestheconceptofriskasitrelatestotheCompany’scompensationprograms.
• NominatingandCorporateGovernanceCommittee:Overseesrisksassociatedwiththeindependenceofdirectorsand
BoardnomineesandassiststheBoardinoverseeingtheactivitieswithrespecttocomplianceandbusinesspracticematters.
PursuanttotheBoard’sinstruction,managementregularlyreportsonapplicableriskstotherelevantCommitteeortheBoard,asappropriate,includingregularreportsonsignificantCompanyprojects,withadditionalrevieworreportingonrisksbeingconductedasneededorasrequestedbytheBoardanditsCommittees.
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Board Leadership Structure
TheBoard’sleadershipiscomprisedof: • ChairmanoftheBoardandCEO:StevenJ.Demetriou • LeadIndependentDirector:LindaFayneLevinson
• Audit,HumanResourceandCompensationandNominatingandCorporateGovernanceCommittees:Composedentirelyofindependentdirectors
Currently,theBoardisledbyMr.DemetriouasChairman,apositionhehasheldsinceJuly2016,andMs.FayneLevinsonasLeadIndependentDirector.
InaprocessledbytheLeadIndependentDirectorandtheChairoftheNominatingandCorporateGovernanceCommittee,theBoardevaluatestheappointmentandroleoftheChairmanonanannualbasis.TheBoardhasdeterminedthathavingMr.DemetriouserveasChairmanprovidessignificantadvantagestotheBoardandtheCompany,asitallowstheBoardtobenefitfromhisknowledgeoftheCompany’sbusinessandmarketopportunitiesandrisksandalsofacilitatescommunicationsandrelationswithothermembersofseniormanagement.TheBoardalsobelievesthathavingMr.DemetriouserveasChairmanisadvantageoustotheCompanywhenworkingwithclientsincertainareasoftheworldinwhichthetitleofChairmanissignificant.
BecausetheBoardbelievesthatstrongindependentBoardleadershipisacriticalaspectofeffectivecorporategovernance,theBoardhasestablishedthepositionofLeadIndependentDirector.TheBoardalsobelievesthataLeadIndependentDirector,whohastheresponsibilitiessetforthintheCompany’sCorporateGovernanceGuidelines,providesindependentleadership,oversightandbenefitsfortheCompanyandBoardthatwouldbeprovidedbyanindependentChairman.ResponsibilitiesoftheLeadIndependentDirectorinclude: ✓ Servingastheindependentdirectors’centralpointof
communicationwiththeChairmanandCEO;
✓ PresidingatmeetingsoftheBoardatwhichtheChairmanandCEOisnotpresent,includingexecutivesessions;
✓ SettingandapprovingthescheduleofBoardmeetingsandmeetingagendas;
✓ AttendingmeetingsofallCommitteesoftheBoard;
✓ WorkingwiththeChairoftheNominatingandCorporateGovernanceCommitteetoleadtheBoardsuccessionandrefreshmentprocess;
✓ WorkingwiththeChairoftheNominatingandCorporateGovernanceCommitteetoconducttheannualBoardself-evaluation;
✓ WorkingwiththeChairmanandCEOtosupportappropriatecompliancewithBoardpolicies;
✓ ProactivelyengagingwiththeChairmanandCEOasakeyadvisoronemergingissuesandalternativecoursesofaction;
✓ CallingspecialmeetingsoftheBoardand/ormeetingsoftheindependentdirectors;
✓ TogetherwiththeChairoftheHumanResourceandCompensationCommittee,evaluatingtheperformanceandcompensationoftheChairmanandCEO;
✓ Participatinginshareholderoutreachandcommunications;and
✓ MeetingwithvariousCompanyconstituenciesonbehalfoftheBoardortheCompany.
TheNominatingandCorporateGovernanceCommitteeleadstheprocessoftheBoard’sevaluationoftheselection,roleandtermoftheLeadIndependentDirectoronanannualbasis.
Board Composition
TheNominatingandCorporateGovernanceCommitteeisresponsibleforreviewingwiththeBoardonanannualbasistheappropriateskillsandcharacteristicsrequiredofmembersinthecontextofthecurrentmakeupoftheBoard.ThisprocessenablesthemtoupdatetheskillsandexperienceitseeksintheBoardasawhole,andinindividualdirectors,astheCompany’sneedsevolve.ThisassessmenttakesintoconsiderationallfactorsdeemedrelevantbytheNominatingandCorporateGovernanceCommittee,includingthefollowingfactors: • Independence:TheBoardmustbecomprisedofamajorityofindependentdirectors. • SkillsandExperience:TheassessmentofskillsandcharacteristicsofBoardmemberstakesintoaccountallskillsand
experiencedeemedrelevantbytheCommittee,includingthosesummarizedin 18 | 2018ProxyStatement
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theDirectorExperienceMatrixonpage5,amongothers.Forincumbentdirectors,pastperformanceontheBoardofDirectorsanditsCommitteesisalsotakenintoconsideration.
• Diversity:TheBoardbelievesitshouldencompassindividualswithdiversebackgroundsandperspectives.Inaccordancewiththisguideline,theNominatingandCorporateGovernanceCommitteeconsidersthediversityofviewpoints,backgrounds,experienceandotherdemographicsinevaluatingandconsideringpotentialdirectorcandidates.DiversityisanimportantconsiderationinthedirectornominationprocessbecausetheBoardbelievesthatmenandwomenofdifferentages,racesandethnicbackgroundscancontributedifferent,usefulperspectives,whilecollaboratingeffectivelytofurthertheCompany’smission.ThispolicyisincludedintheCompany’sCorporateGovernanceGuidelines.
TheBoardofDirectorsandtheNominatingandCorporateGovernanceCommitteeconsiderthequalificationsandattributesofdirectorsanddirectorcandidatesindividually,aswellasinthebroadercontextoftheBoard’soverallcompositionandtheCompany’scurrentandfutureneeds,toensurethattheBoardasawholepossesstherequisitecombinationofskills,professionalexperienceanddiversityofbackgrounds.
Independence of Directors
TheBoardofDirectorshasadoptedBoardofDirectorsGuidelinesforDeterminingtheIndependenceofitsMembers,whichareaccessiblebyfollowingthelinkto“CorporateGovernance”ontheCompany’swebsiteatwww.jacobs.com.TheBoardofDirectorshasaffirmativelydeterminedthateachpersonwhoservedasamemberoftheBoardofDirectorsduringfiscal2017,otherthanMr.DemetriouandMr.NoelWatson,whowasprincipalexecutiveofficeroftheCompanyandwhosetermasadirectorexpiredatthe2017annualmeetingofshareholders,isindependentunderSection303A.02oftheNYSElistedcompanymanualandtheCompany’sindependenceguidelines.EachmemberofeachCommitteeoftheBoardisalsoindependent(asdefinedbytheapplicableNYSErules).
Inaddition,asfurtherrequiredbytheNYSE’slistedcompanymanualandtheCompany’sIndependenceGuidelines,theBoardofDirectorshasmadeanaffirmativedeterminationthatnorelationship,whetherimmaterialormaterial,existsbetweenanyindependentdirectorandtheCompanythatwouldpreventadirectorfrombeingindependent.Inmakingthisdetermination,theBoardconsideredthefactsdescribedbelow.
Mr.DavidsonisanofficerofGammaZetaBouléFoundationandSigmaPiPhiProfessionalFraternity.TheCompanyhasmadeannualcontributionstotheseorganizationsduringthelastthreefiscalyears.Suchamountsdidnotexceed$7,500inanyfiscalyear.Duringfiscal2015,Ms.HicktonwasViceChair,PresidentandCEOofRTIInternationalMetals,Inc.(“RTI”),whichhasbeenaclientoftheCompany.ThepaymentsbyRTItotheCompanyforanyfiscalyearweresubstantiallylessthantwopercentoftheconsolidatedgrossrevenuesofRTI.Additionally,Ms.Hickton’ssonservedasasummerinternoftheCompanyforoneweekonahighschoolrelatedproject.Mr.McNamarawaspreviouslyGlobalChiefRiskOfficer&COO—AustraliabusinessesofBuilding,Engineering,andServicesofLendleaseCorporationLimited(“Lendlease”),whichhasbeenaclientoftheCompany.ThepaymentsbyLendleasetotheCompanyforanyfiscalyearweresubstantiallylessthantwopercentoftheconsolidatedgrossrevenuesofLendlease.Mr.RobertsonistheU.S.co-chairmanoftheUS-SaudiArabianBusinessCouncil,anorganizationtowhichtheCompanymakes$15,000inannualcashcontributions,plussupportofthreeconferences.ThetotalamountpaidbytheCompanyoverthelastfiveyearsisapproximately$54,000.Mr.RobertsonisalsoontheBoardofSasolLtd.,whichisaclientoftheCompany.Afterareviewofthefacts,usingitsbusinessjudgment,theBoardofDirectorsdeterminedthattheserelationshipsdidnotcompromiseMr.Davidson’s,Ms.Hickton’s,Mr.McNamara’sorMr.Robertson’sindependence.
Director Nominations
TheNominatingandCorporateGovernanceCommitteeisresponsibleforrecommendingtheselectionofdirectornomineestotheBoard.Oncepotentialcandidatesareidentified,includingthosecandidatesnominatedbyshareholdersand/oridentifiedbyoutsideadvisorsorsearchfirms,theChairoftheNominatingandCorporateGovernanceCommittee,theLeadIndependentDirectorandtheChairmanandCEOreviewthebackgroundsofthosecandidateswiththeNominatingandCorporateGovernanceCommittee.Finalcandidatesarethenchosenandinterviewedbynon-managementdirectorsandexecutivemanagementoftheCompany.
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Basedontheinterviews,theNominatingandCorporateGovernanceCommitteethenmakesitsrecommendationtotheBoardofDirectors.IftheBoardofDirectorsapprovestherecommendation,thecandidateisnominatedforelection.Withregardtoproceduresforshareholdernominationsofdirectorsforelection,pleaseseetherequirementsdescribedbelowunder“Shareholders’Proposals.”TheNominatingandCorporateGovernanceCommitteewillconsiderdirectorcandidatesrecommendedbyshareholdersinaccordancewiththeseprocedures.
Mr.McNamara,whowasappointedtotheBoardinJanuary2017,wasidentifiedbyathird-partysearchfirmengagedbytheNominating&CorporateGovernanceCommitteetoassistinidentifyingpotentialdirectors.
TheagreementrelatingtotheCompany’spendingacquisitionofCH2MprovidesthatJacobswillappointonedirectorfromtheCH2Mboardofdirectorswhoqualifiesasan“independentdirector”underapplicableNYSErulestotheJacobsBoardattheclosingoftheacquisition,toserveinsuchcapacityuntilhisorhersuccessorisdulyelectedorappointedandqualifiedinaccordancewithapplicablelaw.Theacquisitionissubjecttocustomaryclosingconditions,includingreceiptofCH2Mstockholderapproval,andisexpectedtocloseinDecember2017.
Committees of the Board of Directors
TheBoardofDirectorshasthreestandingcommittees:theAuditCommittee,theHumanResourceandCompensationCommittee,andtheNominatingandCorporateGovernanceCommittee. Audit Committee Members:*-JosephR.Bronson(Chair)-DawneS.Hickton-RobertA.McNamara+-ChristopherM.T.Thompson
*Eachmemberisindependentandfinanciallyliterateandqualifiesasanauditcommitteefinancialexpert+NewmemberappointedtoCommitteeinJanuary2017
Primaryresponsibilitiesincludemonitoringandoverseeingthe:•IntegrityoftheCompany’sfinancialstatements•Independentauditor’squalificationsandindependence•PerformanceoftheCompany’sinternalauditfunctionand
independentauditors•CompliancebytheCompanywithlegalandregulatory
requirements
Meetings inFiscal 2017: 14CommitteeMemberAttendance: 96%
CommitteeCharter:TheAuditCommittee’scurrentcharterisavailablebyfollowingthelinksto“CorporateGovernance”ontheCompany’swebsiteatwww.jacobs.comoruponwrittenrequest,asdescribedbelowunder“CorporateGovernance—AvailabilityofDocuments.”
Human Resource and Compensation Committee Members:*-PeterJ.Robertson(Chair)-GeneralRalphE.Eberhart-JuanJoséSuárezCoppel+-ChristopherM.T.Thompson+
*Eachmemberisindependent+NewmemberappointedtoCommitteeinJanuary2017
Primaryresponsibilitiesinclude:•Establishing,recommending,andgoverningallcompensationand
benefitspoliciesforexecutiveofficers•Establishingandoverseeingpolicyandprotocolinvolvedinthe
grantingofallequitycompensation•OverseeingthedesignandadministrationoftheCompany’s
employeebenefitplans
Meetings inFiscal 2017 :5CommitteeMemberAttendance: 95%
CommitteeCharter:TheHumanResourceandCompensationCommittee’scurrentcharterisavailablebyfollowingthelinksto“CorporateGovernance”ontheCompany’swebsiteatwww.jacobs.comoruponwrittenrequest,asdescribedbelowunder“CorporateGovernance—AvailabilityofDocuments.”
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CompensationCommitteeInterlocksandInsiderParticipation:Duringthelastcompletedfiscalyear,nomemberoftheCompensationCommitteewasanofficeroremployeeoftheCompany,wasaformerofficeroftheCompany,norhadarelationshipwiththeCompanyrequiringdisclosureasarelatedpartytransactionunderItem404ofRegulationS-K.NoneoftheCompany’sexecutiveofficersservedonthecompensationcommitteeorboardofdirectorsofanotherentitywhoseexecutiveofficer(s)servedasamemberoftheCompany’sBoardofDirectorsorontheCompensationCommittee.
Nominating and Corporate Governance Committee
Members:*-RobertC.Davidson,Jr.(Chair)-JuanJoséSuárezCoppel-GeneralRalphE.Eberhart+-DawneS.Hickton
*Eachmemberisindependent+NewmemberappointedtoCommitteeinJanuary2017
Primaryresponsibilitiesinclude:•IdentifyingfortheBoardofDirectorsqualifiedcandidatestoserve
asdirectorsoftheCompany•EstablishingfortheBoardcorporategovernancepolicies,principals
andguidelines•OverseeingtheAnnualSelf-EvaluationoftheBoard•EstablishingandrecommendingtotheBoardoutsidedirector
compensation
Meetings inFiscal 2017: 5Committee MemberAttendance: 94%
CommitteeCharter:TheNominatingandCorporateGovernanceCommittee’scurrentcharterisavailablebyfollowingthelinksto“CorporateGovernance”ontheCompany’swebsiteatwww.jacobs.comoruponwrittenrequest,asdescribedbelowunder“CorporateGovernance—AvailabilityofDocuments.”
Corporate Governance Guidelines
TheCompanymonitorsdevelopmentsintheareaofcorporategovernanceandroutinelyreviewsitsprocessesandproceduresinlightofsuchdevelopments.TheCompanybelievesthatithasproceduresandpracticesinplacewhicharedesignedtoenhanceandprotecttheinterestsofitsshareholders.
TheBoardofDirectorshasapprovedCorporateGovernanceGuidelinesfortheCompany,whicharereviewedandupdatedonanannualbasis.TheCorporateGovernanceGuidelinesareavailablebyfollowingthelinksto“CorporateGovernance”ontheCompany’swebsiteatwww.jacobs.comoruponwrittenrequest,asdescribedbelowunder“CorporateGovernance—AvailabilityofDocuments.”TheCorporateGovernanceGuidelinesaddressthefollowingmatters:
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✓ TheroleoftheBoardtoprovideoversight,counseling
anddirectiontotheCompany’smanagementintheinterestoftheCompanyanditsshareholders;
✓ FrequencyofmeetingsoftheBoard(5-6regularmeetingsperyear);
✓ TherequirementthattheBoardofDirectorsbecomprisedofamajorityofindependentdirectors;
✓ Guidelinesforevaluatingandnominatingdirector
nominees,includingrelevantskills,experienceanddiversity;
✓ Guidelinesfordeterminingdirectorindependence;
✓ Directorandexecutiveofficerstockownershipguidelines;
✓ Conflictsofinterests;
✓ Majorityvotinginuncontestedelectionsofdirectors;
✓ Limitthenumberofpubliccompanyboardsonwhichnon-managementdirectorsmayservetofour;
✓ CommitteesoftheBoard,includingassignmentandrotationofmembers;
✓ TherequirementthattheAudit,HumanResourceand
Compensation,andNominatingandCorporateGovernanceCommitteesoftheBoardofDirectorsbecomprisedentirelyofindependentdirectors;
✓ Therequirementthatdirectorsattendinpersonallregularly
scheduledBoardandCommitteemeetingsunlessrequiredbyillnessorotherextenuatingcircumstances;
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Director Education
TheBoardrecognizestheimportanceofdirectorcontinuingeducationandiscommittedtoprovidesucheducationinordertoenhancebothBoardandCommitteeperformance.Accordingly,asnotedintheCompany’sCorporateGovernanceGuidelines,theCompanyregularlyprovidestheBoardwitheducationprograms,presentationsandbriefingsontopicsrelevanttotheCompany,itsbusinessandriskprofile.Inaddition,eachyeartheBoardengagesathird-partyprovidertohostaneducationalprogramformembersoftheBoardonmattersrelevanttotheCompanyorrelatingtodutiesandresponsibilitiesofdirectors.Directorsarealsoencouragedtoattendatleastoneoutsideeducationalprogrameveryotheryearonanysubjectspertainingtothedirectors’responsibilitiessuchas“directors’colleges”.Additionally,newdirectorsmustparticipateintheCompany’sorientationprogramfornewdirectors.
Annual Performance Evaluations
TheNominatingandCorporateGovernanceCommittee,togetherwiththeLeadIndependentDirector,coordinatesannualBoardself-evaluationsandperiodicindividualdirectorreviews.TheChairsofeachoftheCommitteescoordinateannualself-evaluationsoftheirrespectivecommittees.
Attendance at Meetings of the Board and its Committees and the Shareholder Meeting
Alldirectorsattendedatleast75%ofallmeetingsoftheBoardandallCommitteesonwhichtheyserveduringfiscal2017.Boardmembersareexpectedtoattendannualmeetingsofshareholders.AllofthemembersofourBoardwhowereservingatthetimeofthe2017annualmeetingofshareholdersattendedthemeetingexceptJuanJoséSuárezCoppel,duetointernationaltravel.
Code of Ethics
InadditiontotheCorporateGovernanceGuidelines,theBoardofDirectorshasadoptedthefollowingothercodes,guidelines,andpolicies:
✓ CodeofBusinessConductandEthicsforMembersoftheBoardofDirectors;
✓ CodeofEthicsfortheChiefExecutiveOfficerandSeniorFinancialOfficers;and
✓ CodeofConduct.
Thesedocuments,alongwiththeCorporateGovernanceGuidelines,serveasthefoundationfortheCompany’ssystemofcorporategovernance.Theyprovideguidanceformaintainingethicalbehavior,requirethatdirectorsandemployeescomplywithapplicablelawsandregulations,prohibitconflictsofinterest,andprovidemechanismsforreportingviolationsoftheCompany’spoliciesandprocedures.
IntheeventtheCompanymakesanyamendmentto,orgrantsanywaiverfrom,aprovisionofthecodeofethicsthatappliestotheprincipalexecutiveofficer,principalfinancialofficer,orprincipalaccountingofficerthatrequiresdisclosureunderapplicableSECrules,theCompanywilldisclosesuchamendmentorwaiverandthereasonsthereforeonitswebsiteatwww.jacobs.com. 22 | 2018ProxyStatement
✓ ExecutivesessionsoftheBoardofDirectorswherein
non-managementdirectorsmeetasagroupwithoutthepresenceofmanagementdirectors;
✓ OrientationfornewdirectorsandcontinuingeducationforBoardmembers;
✓ Theselection,rolesandresponsibilitiesoftheChairman
andChiefExecutiveOfficerandtheLeadIndependentDirector;
✓ TherequirementthattheperformanceoftheChairmanand
ChiefExecutiveOfficerbeevaluatedannuallyandreviewedbythenon-managementdirectors;
✓ Successionplanning;
✓ AnnualBoardself-evaluation;and
✓ OthermattersuniquelygermanetotheworkandresponsibilitiesoftheBoardofDirectors.
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Stock Ownership Guidelines
InanefforttomorecloselyaligntheCompany’snon-managementdirectors’financialinterestswiththoseofourshareholders,theBoardofDirectorshasestablishedstockownershipguidelinesfornon-managementdirectors.Undertheseguidelines,theCompany’snon-managementdirectorsareexpectedtoownequityintheCompany(includingcommonstock,restrictedstockorrestrictedstockunits)valuedataminimumoffivetimestheirannualcashretainer.Non-managementdirectorsarerestrictedfromsellinganysharesofcommonstockduringanyperiodinwhichtheyhavenotmettheseownershipguidelines.
Similarly,theCompanyhasestablishedstockownershipguidelinesunderwhichtheCompany’sseniormanagementisexpectedtoownCompanycommonstockasfollows:
Position
Multiple of Base Salary
ChairmanandCEO 6xEVP/PresidentsofLinesofBusiness 3x
OtherSeniorManagement 2x
Membersofseniormanagementarerestrictedfromsellinganysharesofcommonstockduringanyperiodinwhichtheyhavenotmettheseownershipguidelines.Thisrestrictiondoesnotapplytothewithholdingofsharestosatisfytaxwithholdingrequirements.AsoftheRecordDate,thenamedexecutiveofficers(orNEOs)eitherexceededtheirrespectiveguidelinesorwerewithinthefive-yearperiodfromtheirhireorpromotiondate,attheendofwhichtheyareexpectedtomeettheguidelines.
Contacting the Board of Directors
Generally—AllcommunicationsrequiredbylaworregulationtoberelayedtotheBoardofDirectorsarerelayedimmediatelyafterreceiptbytheCompany.AnycommunicationsreceivedbymanagementfromshareholderswhichhavenotalsobeensentdirectlytotheBoardofDirectorswillbeprocessedasfollows:(1)iftheshareholderspecificallyrequeststhatthecommunicationbesenttotheBoard,thecommunicationwillthenbepromptlyrelayedtotheBoardofDirectors;and(2)iftheshareholderdoesnotrequestthatthecommunicationbesenttotheBoardofDirectors,thenmanagementwillpromptlyrelaytotheBoardallcommunicationsthatthemanagementoftheCompany,usingitsbestbusinessjudgment,determinesshouldberelayedtotheBoard.
ContactingtheFullBoardofDirectors—Anyshareholder,employeeorinterestedpartywhodesirestocommunicatewiththeBoardofDirectorsmaydosobywritingtoTheBoardofDirectors,c/oCorporateSecretary,JacobsEngineeringGroupInc.,1999BryanStreet,Suite1200,Dallas,Texas,75201,inanenvelopemarkedconfidential.
ContactingNon-ManagementDirectors—Anyshareholder,employeeorinterestedpartywhodesirestocommunicatewiththeCompany’snon-managementdirectorsmaydosoasfollows: ✓ ConfidentiallyoranonymouslythroughtheCompany’sIntegrityHotline,1(877)522-6272;
✓ BywritingtoLeadIndependentDirector,c/oCorporateSecretary,JacobsEngineeringGroupInc.,1999BryanStreet,Suite1200,Dallas,Texas,75201,inanenvelopemarkedconfidential;or
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ContactingtheAuditCommittee—Anyshareholder,employeeorinterestedpartymaysubmitatanytimeagoodfaithcomplaintregardinganyquestionableaccounting,internalaccountingcontrols,orauditingmattersconcerningtheCompanywithoutfearofdismissalorretaliationofanykind.EmployeesareencouragedtoreporttheirconcernsandcomplaintstotheCompany’sseniormanagement,totheVicePresident,InternalAudit,ortotheAuditCommitteeoftheBoardofDirectors.Confidential,anonymousreportsmaybemadeasfollows: ✓ ThroughtheCompany’sIntegrityHotline,1(877)522-6272;
✓ BywritingtotheChairoftheAuditCommittee,c/oCorporateSecretary,JacobsEngineeringGroupInc.,1999BryanStreet,Suite1200,Dallas,Texas,75201,inanenvelopemarkedconfidential;or
Availability of Documents
ThefulltextoftheCorporateGovernanceGuidelines,theCodeofBusinessConductandEthicsforMembersoftheBoardofDirectors,theCodeofEthicsfortheChiefExecutiveOfficerandSeniorFinancialOfficers,theCodeofConduct,theCommitteeCharters,theBoardofDirectorsGuidelinesforDeterminingtheIndependenceofitsMembers,andtheothercorporategovernancematerialsdescribedinthisProxyStatementareaccessiblebyfollowingthelinkto“CorporateGovernance”ontheCompany’swebsiteatwww.jacobs.com.
TheCompanywillfurnishwithoutchargeacopyofanyoftheforegoingdocumentstoanypersonmakingsucharequestinwritingandstatingthatheorsheisabeneficialownerofcommonstockoftheCompany.Requestsshouldbeaddressedto:JacobsEngineeringGroupInc.,1999BryanStreet,Suite1200,DallasTexas75201,Attention:CorporateSecretary.
Compensation of Directors for Fiscal 2017
TheCompanypaidnon-managementdirectorsacashretainerof$100,000peryearthroughthesecondfiscalquarterof2017and$110,000peryearthereafter.Inaddition,theChairofeachCommitteereceivesanadditionalcashretainerof$20,000peryear,andtheLeadIndependentDirectorreceivesanadditionalcashretainerof$100,000peryear.InanefforttoaligntheCompany’scompensationpracticeswiththoseofitspeers,duringfiscal2017theCompanymovedfromgrantingannualstockawardsofafixednumberofrestrictedstockunitsandoptionstoavalue-basedawardofrestrictedstockunits(“RSUs”).Jacobsalsoeliminatedtheappointmentgrantawardedtonewdirectors.
Forfiscal2017,theBoardsettheannualequityvaluetobeawardedtonon-managementdirectorsatapproximately$135,000and,accordingly,grantedeachnon-managementdirectoranawardof2,347RSUs.SuchgrantsweremadepursuanttotheJacobsEngineeringGroupInc.1999OutsideDirectorStockPlan,asamendedandrestated(the“1999OutsideDirectorPlan”).EachRSUgrantvestsupontheearlierof(i)thenextannualshareholdermeetingor(ii)theone-yearanniversaryofthegrantdate.IftheCompanypaysacashdividendonitsoutstandingcommonstock,RSUswillbecreditedwithcashdividendequivalentrights(“DividendEquivalents”)whicharepaidtosuchdirectoruponthevestingoftheRSUanddistributionoftheunderlyingshareofcommonstockasdescribedbelowinthesectionentitled“ExecutiveCompensation—NarrativeDisclosuretoSummaryCompensationTableandGrantsofPlanBasedAwardsTable—PaymentofDividendsandDividendEquivalentRights”.Eachdirectoralsoreceivescashdividendswithrespecttoeachrestrictedstockaward(“RSA”)asandwhenpaidtoshareholdersofcommonstock. 24 | 2018ProxyStatement
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ThetablebelowsetsforththecompensationpaidtoeachoftheCompany’snon-managementdirectorsduringfiscal2017.
Name
Fees Earned or Paid in Cash ($)(1)
Stock Awards ($)(3)
Option Awards ($) (4)
All Other Compensation
($) (5) Total ($)
JosephR.Bronson 125,000 135,046 — 3,600 263,646JuanJoséSuárezCoppel 105,000 135,046 — — 240,046JohnF.Coyne(2) 30,278 — — — 30,278RobertC.Davidson,Jr. 125,000 135,046 — 5,400 265,446RalphE.Eberhart 105,000 135,046 — — 240,046DawneS.Hickton 105,000 135,046 — — 240,046LindaFayneLevinson 205,000 135,046 — 6,300 346,346RobertA.McNamara(6) 74,722 135,046 — — 209,768PeterJ.Robertson 125,000 135,046 — — 260,046ChristopherM.T.Thompson 105,000 135,046 — — 240,046NoelG.Watson(2) 30,278 — — — 30,278
(1)Representsfeesearnedduringfiscal2017.(2)Messrs.CoyneandWatsondidnotstandforre-electionatthe2017annualmeetingofshareholders.(3)RepresentsthegrantdatefairvalueofthegrantsofRSUsunderthe1999OutsideDirectorPlanduringfiscal2017inaccordancewithFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718,StockCompensation(“FASBASCTopic718”).TheaggregatenumberofsharesofrestrictedstockandRSUsoutstandingatSeptember29,2017,foreachnon-managementdirectorwasasfollows:J.Bronson—23,156;J.SuárezCoppel—7,656,R.Davidson—27,156;R.Eberhart—9,156;D.Hickton—4,656;L.FayneLevinson—29,156;R.McNamara—2,347;P.Robertson—12,156;andC.Thompson—9,156.(4)TheaggregatenumberofoptionsoutstandingatSeptember29,2017,foreachnon-managementdirectorwasasfollows:J.Bronson—16,500;J.SuárezCoppel—14,500;J.Coyne—24,750;R.Davidson—27,000;R.Eberhart—18,000;D.Hickton—7,500;L.FayneLevinson—29,500;P.Robertson—28,500;C.Thompson—18,000;R.McNamara—0andN.Watson—12,250.(5)Representsdividendpaymentsonrestrictedstockawards(“RSAs”)duringfiscal2017.TheseamountsdonotincludeaccumulateddividendequivalentrightsonRSUsthathavevestedbutnotyetdistributedforeachnon-managementdirectorasfollows:J.Bronson—$5,764;J.SuárezCoppel—$2,389;R.Davidson—$5,764;R.Eberhart—$3,064;D.Hickton—$1,039;L.FayneLevinson—$5,764;P.Robertson—$4,414;andC.Thompson—$3,064.(6)Mr.McNamarawasappointedtofillavacancyontheBoardinJanuary2017.
Forward-Looking Statements
ThisProxyStatementcontainsforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Forward-lookingstatementsarestatementsthatdonotdirectlyrelatetoanyhistoricalorcurrentfact.Whenusedherein,wordssuchas“estimates”,“intends”,and“will”andsimilarwordsareintendedtoidentifyforward-lookingstatements.Youshouldnotplaceunduerelianceontheseforward-lookingstatements.Althoughsuchstatementsarebasedonmanagement’scurrentestimatesandexpectationsand/orcurrentlyavailabledata,forward-lookingstatementsareinherentlyuncertainandinvolverisksanduncertaintiesthatcouldcauseouractualresultstodiffermateriallyfromwhatmaybeinferredfromtheforward-lookingstatements.Factorsthatcouldcauseorcontributetosuchdifferencesinclude,butarenotlimitedto,thoselistedinItem1A—RiskFactorsintheCompany’s2017AnnualReportonForm10-K.TheCompanydoesnotundertakeanyobligationtoreleasepubliclyanyrevisionsorupdatestoanyforward-lookingstatements.
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PROPOSAL NO. 2 — ADVISORY VOTE TO APPROVE EXECUTIVECOMPENSATION
The Board of Directors unanimously recommends that you vote FOR the advisory resolution approving the Company’s executivecompensation.
26 | 2018ProxyStatement
What are you voting on?
AsrequiredbySection14AoftheSecuritiesExchangeActof1934,asamended,thisproposalseeksashareholderadvisoryvotetoapprovethecompensationofournamedexecutiveofficersasdisclosedpursuanttoItem402ofRegulationS-Kthroughthefollowingresolution:
“Resolved,thattheshareholdersapprove,onanadvisorybasis,thecompensationpaidtotheCompany’snamedexecutiveofficers,asdisclosedinthisProxyStatementpursuanttotheSEC’sexecutivecompensationdisclosurerules(whichincludestheCompensationDiscussionandAnalysis,theSummaryCompensationTable,andtherelatedcompensationtablesandnarrativedisclosures).”
Asanadvisoryvote,thisproposalisnotbindingontheCompany,theBoardofDirectors,ortheHumanResourceandCompensationCommittee(the“CompensationCommittee”),andwillnotbeconstruedasoverrulingadecisionbytheCompany,theBoard,ortheCompensationCommitteeorcreatingorimplyinganyadditionalfiduciarydutyfortheCompany,theBoard,ortheCompensationCommittee.However,theBoardofDirectorsandtheCompensationCommitteevaluetheopinionsthatshareholdersexpressintheirvotesandwillconsidertheoutcomeofthevotewhenmakingfuturecompensationdecisions.
Atour2017annualmeetingofshareholders,ourshareholdersapproved,onanadvisorybasis,afrequencyofeveryyearforcastingadvisoryvotesapprovingourexecutivecompensation.AftertheAnnualMeeting,ournextadvisoryvoteonexecutivecompensationwilloccuratour2019annualmeetingofshareholders.
What is the Vote Required?
TheapprovaloftheadvisoryresolutionontheCompany’sexecutivecompensationrequirestheaffirmativevoteofamajorityofsharesofcommonstockpresent,inpersonorbyproxy,attheAnnualMeetingandentitledtovote.Abstentionshavethesameeffectasavoteagainsttheadvisoryresolution.Brokernon-voteswillhavenoeffectoftheoutcomeoftheadvisoryvote.
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COMPENSATION COMMITTEE REPORTTheHumanResourceandCompensationCommitteeoftheBoardofDirectorsreviewedanddiscussedtheCompensationDiscussionandAnalysisrequiredbyItem402(b)ofRegulationS-KwiththeCompany’smanagement.Basedonsuchreviewanddiscussion,theHumanResourceandCompensationCommitteerecommendedtotheBoardofDirectorsthattheCompensationDiscussionandAnalysisbeincludedintheProxyStatement.TheBoardhasapprovedthatrecommendation. December7,2017 PeterJ.Robertson,Chair
GeneralRalphE.EberhartJuanJoséSuárezCoppelChristopherM.T.Thompson
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Compensation Discussion and Analysis (“CD&A”)Executive Summary Asoneoftheworld’slargestandmostdiverseprovidersoftechnicalprofessionalandconstructionservices,weoperatewithapay-for-performancephilosophyinachallenging,highlycompetitive,andrapidlyevolvingglobalenvironment.OurexecutivecompensationprogramisdesignedtoattractandretainindividualswiththeskillsandqualificationstomanageandleadtheCompanyeffectively.Theoverarchinggoalofourprogramistomotivateourleaderstocontributetotheachievementofourfinancialgoalsandtofocusonlong-termvaluecreationforourstockholders.Ournamedexecutiveofficers(“NEOs”)forfiscal2017were: Name PositionMr.StevenJ.Demetriou ChairmanandChiefExecutiveOfficer(“CEO”)Mr.KevinC.Berryman ChiefFinancialOfficer(“CFO”)Mr.TerenceD.Hagen President,Aerospace&TechnologyMr.JosephG.(“Gary”)Mandel ExecutiveVicePresident,IntegrationManagementOfficeMr.RobertV.Pragada President,Buildings&InfrastructureandIndustrial
How did we perform?
✓Improvedgrowthmomentumasboththirdquarterandfourthquarterfiscal2017showedsequentialrevenuegrowthversusthepreviousquarter
✓
Continuedstronggrossmarginperformanceinthefourthquarteroffiscal2017,contributingtoa160basispointannualimprovementto17.9%,drivenbystrongprojectexecutionandincreasedfocusonmoreprofitablebusiness
✓
Backlogof$19.8billionatfiscalyearend,upover$1.0billionversusayearago
✓
Repurchased$97millioninsharesandpaid$54millionindividends($0.45pershare)infiscal2017
What did wechange for 2017?
✓IncreasedbasesalariesforNEOs(otherthantheCEOandCFO)between3%and8%,consistentwithmarketdatafromourpeergroupandothermarketsurveyinformation
✓
Tofurtherincreaseaccountabilityandreinforceourcommitmenttoprofitablegrowthandeffectivecashmanagement,weupdatedourshort-termincentivetoincludeGMinBacklog*
✓
Weupdatedourlong-termincentiveplanbyincludingareturnoninvestedcapital(“ROIC”)metricinadditiontoearningspersharegrowth(“EPSGrowth”)
✓
InconnectionwiththeCompany’sannouncementofitsintentiontopayaregularquarterlycashdividend,weprovidedfordividendequivalentsontime-basedRSUsinordertotreatholdersofRSUsconsistentlywithshareholders
How do wedetermine pay?
✓DesignpayprogramstorewardexecutivesforpositiveCompanyandbusinessunitresults,mitigatematerialrisksandalignwithstockholderinterestsbyhavingasignificantportionofcompensationcomposedofequity-basedlong-termincentiveawards
✓
Setpaylevelscommensuratewithperformanceandtheneedtoattractandretainhighqualitytalent
✓
Considermanyfactors,includingtheadviceoftheCompensationCommittee’sindependentcompensationconsultant,internalpayequityamongexecutivesandthealignmentoftotalpayopportunityandpayoutcomeswithperformanceandwithexternalmarketdata
How did we payour NEOs?
✓ Payoutsalignedwithourfiscal2017performance
✓
BasesalariesreflecteachNEO’srole,responsibilityandexperience
✓
Annualcashincentivepayoutsrangedfrom73%to153%oftargetbasedonachievementofCompanyandbusinessareaperformanceobjectives
✓
Long-termequityincentivesgrantedattargetlevelsusingaportfolioofperformance-basedrestrictedstockunits(“PSUs”)andRSUs,withthelargestportion(60%)deliveredinPSUswhichvest50%basedonourEPSGrowthand50%basedonourROICoverathree-yearperiod
✓
Nooff-cycleequityawardsorexcessiveperquisitesforanyofourNEOs
How do we addressrisk and governance?
✓Provideanappropriatebalanceofshort-andlong-termcompensation,withpayoutsbasedontheCompany’sachievementofcertainfinancialmetricsandspecificbusinessareaobjectives
✓
Followpracticesthatpromotegoodgovernanceandservetheinterestsofourstockholders,withmaximumpayoutcapsforannualcashincentivesandlong-termperformanceawards,andpoliciesonclawbacks,anti-pledging,anti-hedging,insidertradingandstockownership
✓
Annual“say-on-pay”shareholdervotewasapprovedatthe2017shareholdermeeting
Why you shouldapprove thesay-on-payproposal
✓ Fiscal 2017 performance continued to support long-term stockholder value✓ Fiscal 2017 incentive payouts for our NEOs aligned with overall Company and business area performance
✓Our pay program is aligned with stockholder interests, emphasizing achievement of strategic objectives over the longterm
✓
Our pay practices are tied to robust risk management and corporate governance
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Our Executive Compensation Philosophy
Ourvisionistoprovidesuperiorcustomervaluethroughalong-term,relationship-basedapproachandsolidreturnstoourshareholdersthroughprofitablegrowth.TheCompensationCommitteehasacompensationphilosophythatdrivesthisvisionbyattractingandretaininghighlyqualifiedemployeesandmotivatingthemtodelivervaluetoourcustomersandshareholders.Accordingly,ourexecutivecompensationprogramisintendedto:
✓ Provideexecutiveswithbasesalarycompensationthatiscompetitivewiththemarket;
✓ RewardexecutivesforsuperiorannualCompanyperformancethroughourManagementIncentivePlan(“MIP”),ashort-termcash
incentiveprogramthatplacesasubstantialcomponentofpayatrisk,withspecificmeasuresandtargetsassignedtoeachparticipantbasedontheirroleintheCompany;and
✓ Incentivizeseniormanagementthroughtheuseoflong-termequity-basedawardsthatalignourexecutives’interestswiththoseofourshareholders.
Our Executive Compensation Program and Practices
OurCompensationCommitteebelievesthatourexecutivecompensationprogramisappropriatelydesignedtoadvanceshareholderinterests.Thekeycomponentsandassociatedpurposesofourcompensationprogramareasfollows:
*Seepage36forDSOandGMinBacklogdefinitions.
2018ProxyStatement | 29Short-Term/AnnualLong-TermComponentBaseSalaryManagementIncentivePlanPerformance-BasedRestrictedStockUnits(PSUs)TimeBasedRestrictedStockUnits(RSUs)PurposeProvidesthesecurityofacompetitivefixedcashpaymentforservicesrenderedEncouragessuperiorperformanceandaccountabilitybytyingpayoutstoachievementofpre-establishedmetricsassignedtoparticipantsbasedontheirroleintheCompanyAlignsinterestsofexecutiveswithlong-termshareholderinterests.RetainsexecutivesandmotivatesthemtobuildshareholdervalueoverthelifeofthegrantsRetainsexecutivesandmotivatesthemtobuildshareholdervalueoverthelifeofthegrantsFixedRisk-Variable/AtPerformanceMetricandDescriptionReviewedannuallybytheCompensationCommitteeandadjustedbasedoncompetitivepracticesandindividualperformanceMetricsusedforfiscal2017include:Consolidated/LineofBusinessOperatingProfitDSO*GMinBacklog*Beginninginfiscal2017,metricsused:EarningsPerShare(EPS)GrowthfocusesonprofitabilityandfinancialdisciplinesReturnonInvestedCapital(ROIC)alignswithourstrategybymotivatingmanagerstofocusonincreasingefficiencyandcapturingwhethermagnitudeofprofitabilityisappropriateforinvestmentsmadeMetricsforperformance-basedawardsinfiscal2016wereEPSGrowthandrelativetotalshareholderreturn(TSR)comparedtotheCompanyspeergroup.Forfiscal2017,theCompanychangedfromTSRtoaROIC-basedmetric,whichtheCompensationCommitteebelievesisappropriatetoensuretheCompanyeffectivelyemployscapitaltoprovideastrongreturntoshareholdersAwardsvestafterthreeyearsofperformance,ifperformancetargetsaremetAwardsvestratablyoverfouryears
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Weremaincommittedtoexecutivecompensationpracticesthatdriveperformanceandthataligntheinterestsofourleadershipteamwiththeinterestsofourshareholders.BelowisasummaryofbestpracticesthatwehaveimplementedandpracticesweavoidwithrespecttothecompensationofourNEOs. WHAT WE DO
WHAT WE DO NOT DO
☑ Pay for Performance —Asignificantmajorityofourexecutives’targetcompensationisatrisk,includingcompensationthatisstockbasedand/orperformancebased,tiedtopre-establishedperformancegoalsalignedwithourshort-andlong-termobjectives.
☒ No Tax Gross-Ups —Wedonothavetaxreimbursementsorgross-upsonseverancepayments.See“—OtherBenefitsandPolicies—Perquisites”below.
☑ Compensation Recoupment Policies —Wehaveaclawbackpolicythatapplieswheninaccuratefinancialstatementshaveaffectedincentiveawardpaymentstoexecutiveofficers.Thispolicyisfurtherdescribedunder“—ClawbackPolicy”below.
☒ No Pension Plans or Special Retirement Programs forExecutive Officers —Wedonothaveapensionplanorsupplementalretirementplanforexecutiveofficers.
☑ Stock Ownership Guidelines —OurBoardhasestablishedrobuststockownershipguidelinesapplicabletoourBoardmembersandexecutivesasdescribedunder“—StockOwnershipGuidelines”below.
☒ No Excessive Perquisites —Wedonotofferexcessiveexecutiveperquisitessuchaspersonaluseofairplanes,Company-providedautosorautoallowances(exceptforexpatriates)orpaymentofclubdues.
☑ Thorough Compensation Benchmarking —TheCompensationCommitteereviewspubliclyavailableinformationtoevaluatehowourNEOs’compensationcomparestothatofexecutivesincomparablepositionsatothercompaniesasdescribedunder“—AssessingCompensationCompetitiveness”below.
☒ No Speculative Trading —Boardmembersandexecutiveofficersareprohibitedfromshort-sellingourstockandbuyingorsellingputsandcallsofourstock.See“—InsiderTradingandPolicyonHedgingorPledgingofStock”below.
☑ Independent Compensation Consultant —TheCompensationCommitteebenefitsfromitsuseofanindependentcompensationconsultingfirm,whichprovidesnootherservicestotheCompany.
☒ No Hedging —Boardmembersandexecutiveofficersareprohibitedfromengaginginhedgingtransactionsthatcouldeliminateorlimittherisksandrewardsofowningourstock.See“—InsiderTradingandPolicyonHedgingorPledgingofStock”below.
☑ Annual Pay for Performance Review —Withthehelpofitsindependentcompensationconsultant,theCompensationCommitteeannuallyanalyzesthedifficultyofmeetingourperformancegoalsandthealignmentofrealizablepayandperformancetoensurethatourincentiveprogramsareworkingasintended.
☒ No Use of Jacobs Stock as Collateral for Margin Loans —Boardmembersandexecutiveofficersareprohibitedfromusingourstockascollateralforanymarginloan.See“—InsiderTradingandPolicyonHedgingorPledgingofStock”below.
☑ Vesting Conditions on Dividend Equivalents —WeimposethesamevestingconditionsondividendequivalentsasontheunderlyingRSUs.
The Compensation Decision Process
TheCompensationCommitteedirectlyretainstheservicesofindependentconsultantsandotherexpertstoassistinfulfillingitsresponsibilities.TheCompensationCommitteecurrentlyengagestheservicesofFWCook(the“IndependentConsultant”),anationalexecutivecompensationconsultingfirm,toreviewandproviderecommendationsconcerningallofthecomponentsoftheCompany’scompensationprograms.TheIndependentConsultantperformsservicessolelyonbehalfoftheCompensationCommitteeandhasnorelationshipwiththeCompanyormanagementexceptasitmayrelatetoperformingsuchservices.TheCompensationCommitteehas 30 | 2018ProxyStatement
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assessedtheindependenceoftheIndependentConsultant,pursuanttotherulesoftheSECandtheNYSE,andconcludedthattheIndependentConsultantisindependentandnoconflictofinterestexistswithrespecttotheservicesprovidedbytheIndependentConsultanttotheCompensationCommittee.
Duringfiscal2017,theCEOandothermembersofourseniorexecutiveteamworkedwiththeCompensationCommitteetohelpensurethatourexecutivecompensationprogramsarecompetitive,ethical,andalignedwiththeCompany’svalues.Forfiscal2017,compensationdecisionsfortheNEOs(otherthanourCEO)weremadebytheCompensationCommitteeafterconsultationwiththeCEO,andthecompensationdecisionwithrespecttoourCEOwasapprovedbythefullBoarduponrecommendationfromtheCompensationCommittee.
Assessing Compensation Competitiveness
TheCompensationCommittee,withthehelpoftheIndependentConsultant,annuallycompareseachelementofcompensationtothatofanindustrypeergroup.Forfiscal2017,aspartofitsannualreview,theCompensationCommitteedeterminedthatthepeergroupshouldbecomprisedof(1)constructionandengineeringfirmsthataredirectcompetitorswiththeCompanyforbusinessandexecutivemanagementtalentor(2)companiesthatprovideconsultingortechnicalservicestogovernmentandlargecommercialclients.Inaddition,tobeincluded,acompanywouldneedtobegenerallywithinone-thirdtothreetimesthesizeoftheCompanyintermsofrevenueandmarketcapitalization,evaluatedannually.
Similartoprioryears,inordertoassesscompensationcompetitivenesscomparedtothepeergroup,theIndependentConsultantutilizedcomparativedatadisclosedinpubliclyavailableproxystatements,otherdocumentsfiledwiththeSEC,anddatafromacomprehensivedatabaseofpayinformationdevelopedbyWillisTowersWatsonregardingtheindustryspecificandgeneralindustrygroupinwhichtheCompanycompetesfortalent.
Thefollowingchartshowsourfiscal2017industrypeergroup,includingrelevantsizeandperformancedatatoillustratetheCompany’srelativeposition.
Most Recently Available Four Quarters ($M)
Employees
Market Capitalization
as of 9/29/17 ($M)
Revenues
Net Income
NorthropGrumman $25,566
NorthropGrumman $2,362
AECOMTech 87,000
Raytheon $54,155
Raytheon $24,789
Raytheon $2,153
NorthropGrumman 67,000
NorthropGrumman $50,107
Fluor $19,483
Textron $627
Raytheon 63,000 DXCTechnology $24,449
AECOMTech $18,203
L-3Communications $576
Fluor 61,551
L-3Communications $14,739
DXCTechnology $15,882
AECOMTech $339
DXCTechnology 60,000
Textron $14,263
Textron $14,006
Leidos $311
Jacobs 54,700
Leidos $8,955
L-3Communications $11,036
DXCTechnology $298
ChicagoBridge&Iron 42,100
SNC-Lavalin $7,915
Leidos $10,229
Jacobs $294
L-3Communications 38,000
Jacobs $7,011
Jacobs $10,023 QuantaServices $289
Textron 36,000
Fluor $5,890
ChicagoBridge&Iron $9,148
BoozAllenHamilton $272
SNC-Lavalin 34,952
QuantaServices $5,799
QuantaServices $9,091
SNC-Lavalin $265 Leidos 32,000
AECOMTech $5,769
EMCOR $7,624
EMCOR $215
EMCOR 31,000
BoozAllenHamilton $5,559
SNC-Lavalin $6,903
Fluor $202
QuantaServices 28,100
EMCOR $4,106
BoozAllenHamilton $6,022
CH2MHill $141
KBR 27,500
KBR $2,501
CH2MHill $5,081
KBR $72
BoozAllenHamilton 23,300
ChicagoBridge&Iron $1,700
KBR $4,424
ChicagoBridge&Iron ($1,056
) CH2MHill 20,000
CH2MHill n/a
*
75thPercentile $17,043
$458
60,776
$14,620
Median $10,229
$289
36,000
$6,902
25thPercentile $7,264
$208
29,550
$5,611
JacobsPercentile** 47% 53% 67% 50%
*CH2MHill’sequityisnotpubliclytraded.**PercentilerankcalculationincludesJacobs.Source:Standard&Poor’sCapitalIQ.
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Forfiscal2017,aspartofitsannualreview,theCompensationCommittee,inconsultationwiththeIndependentConsultant,addedthefollowingcompaniestothepeergroup:BoozAllenHamilton,SNC-LavalinandTextron.Forfiscal2018,theCompensationCommittee,inconsultationwiththeIndependentConsultant,maintainedthecurrentpeerselectioncriteriaandgroupsizeusedinfiscal2017.Basedonthatcriteria,weaddedHalliburtontothepeergroupandduetotheCompany’spendingacquisitionofCH2M,weremoveditfromthepeergroup.
Shareholder Engagement and Say-on-Pay
InevaluatingtheCompany’sexecutivecompensationprogramforfiscal2017,theCompensationCommitteeconsideredtheresultsoftheadvisoryvoteonthe“say-on-pay”proposalpresentedattheCompany’s2016annualmeetingofshareholders.Asaresultofthepositivechangestothecompensationprogramforfiscal2016,over96%ofvotescastwereinsupportofthecompensationprovidedtoournamedexecutiveofficersatthe2017annualmeeting.
MembersofexecutiveleadershipandourBoardfrequentlyengagewithshareholdersandhostopen,ongoingdialoguesaroundcorporategovernancematters,includingexecutivecompensation.Takingintoaccountthepositivesupport,theCompensationCommitteecontinuestobelievethattheCompanyprovidesacompetitivepay-for-performancepackagethateffectivelyincentivizesandretainsexecutives.
Compensation ElementsDuringfiscal2017,theCompensationCommitteeutilizedfindingsbytheIndependentConsultanttodeterminethattheCompany’s
executivecompensationprogramcontinuedtobebothreasonableinrelationtocompetitivepaylevelsandappropriateinsupportingbusinessobjectivesandapositiveperformance-basedculture.
Asreflectedinthechartsbelow,variable/atriskcompensationcontinuestorepresentthemajorityofthetotaltargetdirectcompensationofourCEOandotherNEOs.
Totaltargetdirectcompensationreferstobasesalary,short-termincentivecompensation(measuredattargetforthefiscalyear)andlong-termequityincentivecompensation(PSUsandRSUs).Indeterminingtheexecutive’soverallcompensation,theCompensationCommitteetakesintoaccounttheabsoluteandrelativevalueofeachcomponentandtheoverallmix.Aswithprioryears,theCompensationCommitteecontinuedthepastpracticeofallocatingthelong-termincentiveawardswith60%ofthevaluesasPSUsand40%ofthevaluesasRSUs. 32 | 2018ProxyStatement
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BaseSalary
ThefollowingtablesetsforththebasesalariesofeachofourNEOsforfiscal2016andfiscal2017.
Named ExecutiveOfficer
Fiscal 2016 Base Salary
Fiscal 2017 Base Salary (1)
PercentageIncrease
StevenJ.Demetriou $1,300,000
$1,300,000 0%
KevinC.Berryman $750,000
$750,000 0%
TerenceD.Hagen $600,000
$650,000 8%
JosephG.Mandel $699,997
$720,000 3%
RobertV.Pragada $675,000
$695,000 3%
(1) SalaryincreaseseffectiveApril1,2017
InsettingthebasesalariesofourNEOs,theCompensationCommitteeutilizesinformationprovidedbyitsIndependentConsultanttodeterminethecompetitivenessofbasesalariescomparedtotheindustrypeergroupandmarketsurveydata.
TheCompensationCommitteealsoconsidersthefactthattheCompanycontinuestoprovidefewerancillarybenefitsandotherperquisitesascomparedtotheCompany’sindustrypeergroup.ThisstemsfromtheCompensationCommittee’sbeliefthatfocusingonthethreecoreelementsofcompensation(basesalaryandshort-andlong-termincentivecompensation)resultsinamoretransparentandeasier-to-administerpaysystem,andismoreconsistentwiththeCompany’sculture.
Forexample,theCompany’scurrentlyavailableretirementprogramintheU.S.consistssolelyofatax-qualified401(k)planwithmatchingcontributions,andanon-qualifiedsalaryandbonus(includingequitycompensation)deferralplanthatprovidesnon-enhancedmarketreturns.Whilemanyinourpeergroupprovideadditionalperquisites,includingautoallowance,personalaircraftuse,andclubdues,theCompanyonlyprovideslimitedperquisitesforfinancialplanningandannualhealthassessments.
Afterconsideringmarketdatafromourpeergroupandothermarketsurveyinformation,theCompensationCommitteedeterminedthatthebasesalariesofourCEOandCFOforfiscal2017wouldremainatthesamelevelsasfiscal2016.EffectiveApril1,2017,Messrs.PragadaandMandelreceived3%salaryincreases,andMr.Hagenreceivedanapproximately8.3%salaryincreasetoreflectthesuccessfulperformanceoftheAerospace&Technologygroupinfiscal2016andtoalignhispaymorewiththemarketandotherNEOs.
Short-TermIncentives
Forfiscal2017,theManagementIncentivePlan(orMIP)continuedtoreinforceourcommitmenttoprofitablegrowthandeffectivecashmanagementwithspecificmeasuresandtargetsassignedtoeachparticipantbasedonhisorherrespectiveroleintheorganization.Asdescribedbelow,thisplanprovidesforbonuspayoutstoeligibleemployeeswhencertainCompany-wideandbusinessunit-specifictargetgoalsareachieved.
Forfiscal2017,selectofficersandmanagersoftheCompany,includingtheNEOs,wereeligibletoparticipateintheMIP,whichcoveredapproximately365employees.
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Asshowninthefollowingchart,anemployee’stargetMIPawardundertheMIPiscalculatedbymultiplying(i)theemployee’sannualbasesalaryasofJuly1oftheapplicablefiscalyearby(ii)hisorhertargetpercentageofsalary.Anemployee’sactualMIPawardamountiscalculatedbymultiplying(i)theemployee’sannualbasesalaryasofJuly1oftheapplicablefiscalyear,by(ii)hisorhertargetpercentageofsalary,andthenby(iii)theperformanceachievementfactor.
Base Salary as of July 1,
2017
X
Target Percentage of Salary
=
2017 Target MIP Award
Base Salary as of July 1,
2017
X
Target Percentage of Salary
X
Performance Achievement
Factor
=
2017 Actual MIP Award
Eachyear,theCompanyestablishesperformanceachievementfactorsforeachparticipantbasedonhisorherroleintheCompany.Forthoseparticipantswithexclusivelycorporatelevelresponsibilities,suchastheCEOandCFO,theirbonusopportunityistiedentirelytocompany-widemetrics.Forthoseparticipantswhoarealignedwithabusinessunitorlineofbusiness,60%oftheirbonusopportunityistiedtotheoperatingmetricsdefinedfortheirbusinessunitorlineofbusiness,asapplicable.Theseoperationalmetricsreinforcethedirectlinkbetweeneachleader’scontributiontothesuccessoftheirbusinessunitorlineofbusinessandtheircompensation.Theremaining40%ofthoseparticipants’bonusopportunityistiedtocompany-widemetricstoencouragecollaborationacrossbusinessunitlinestodrivetheCompany’soverallresults.
AwardstoChiefExecutiveOfficerandChiefFinancialOfficer
Forfiscal2017,theCompensationCommitteeestablishedtheminimum,targetandmaximumperformancelevelsforMessrs.DemetriouandBerrymanbasedontheCompany-widemetricsofConsolidatedOperatingProfit,DSOandGMinBacklog.Thecorrespondingfiscal2017actualresults,performancelevels,relativeweightingandactualperformanceachievementpercentagesareshowninthechartbelow.Refertopage36belowfordescriptionsofhowthemetricsarecalculated.
Performance Metrics Performance Levels
2017 Actual Performance Level
Achievement(% of Payout)
Relative Weighting
(%)
2017 Actual Results
Minimum (25% Payout)
Target (100% Payout)
Maximum (200% Payout)
2017 Actual Performance Achievement(% of Target)
ConsolidatedOperatingProfit
$548.9M
$458.0M
$572.5M
$687.0M
84.5%
70%
59.2%
ConsolidatedDSO
57
62
58
56
158.2%
20%
31.6%
ConsolidatedGMinBacklog
$2,470.1M
$2,080.0M
$2,180.0M
$2,300.0M
200.0%
10%
20.0%
Total
100.0%
110.8%
ThecalculationofMessrs.Demetriou’sandBerryman’stargetMIPawardandactualMIPawardforfiscal2017isshownbelow,basedontheirtargetpercentageofsalariesof150%and100%,respectively.
Named Executive Officer
Base Salary (07/01/2017)
Target %
2017 Target MIP Award
Performance Achievement
Factor (% of Target)
2017 Actual MIP Award
StevenJ.Demetriou
$1,300,000
150%
$1,950,000
110.8%
$2,160,202
KevinC.Berryman
$750,000
100%
$750,000
110.8%
$830,847
AwardstoOtherNEOs
InlightofhisoversightoftheCompany’sAerospace&Technology(“A&T”)lineofbusiness,aswellashisexecutiveroleattheCompany,theCompensationCommitteeestablishedtheminimum,targetandmaximum 34 | 2018ProxyStatement
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performancelevelsforMr.Hagenforfiscal2017basedonthemetricsConsolidatedOperatingProfitandOperatingProfit,DSOandGMinBacklogfortheAerospace&Technologylineofbusinessassetforthinthechartbelow.Thecorrespondingfiscal2017actualresults,performancelevels,relativeweightingandactualachievementpercentagesareshowninthechartbelow.
Performance Metrics Performance Levels
2017 Actual Performance Level
Achievement (% of Payout)
Relative Weighting
(%)
2017 Actual Results
Minimum (25% Payout)
Target (100% Payout)
Maximum (200% Payout)
2017 Actual Performance Achievement(% of Target)
ConsolidatedOperatingProfit
$548.9M
$458.0M
$572.5M
$687.0M
84.5%
40%
33.8%
A&TOperatingProfit
$203.0M
$164.5M
$205.6M
$246.7M
95.3%
30%
28.6%
A&TDSO
54
59
55
53
114.5%
20%
22.9%
A&TGMinBacklog
$868.2M
$636.5M
$667.1M
$703.8M
200.0%
10%
20.0%
Total
100.0%
105.3%
ThecalculationofMr.Hagen’stargetMIPawardandactualMIPawardforfiscal2017isshownbelow,basedonhistargetincentivepercentageofsalaryof100%.
Named Executive Officer
Base Salary (07/01/2017)
Target %
2017 Target MIP Award
Performance Achievement
Factor (% of Target)
2017 Actual MIP Award
TerenceD.Hagen
$650,000
100%
$650,000
105.3%
$684,633
InlightofhisoversightoftheCompany’sPetroleum&Chemicals(“P&C”)lineofbusinessandMining&Minerals(“M&M”)businessunit,aswellashisexecutiveroleattheCompany,theCompensationCommitteeestablishedtheminimum,targetandmaximumperformancelevelsforMr.Mandelforfiscal2017basedonthemetricsConsolidatedOperatingProfitandOperatingProfit,DSOandGMinBacklogforthePetroleum&ChemicalslineofbusinessandtheMining&Mineralsbusinessunitassetforthinthechartbelow.Thecorrespondingfiscal2017actualresults,performancelevels,relativeweightingandactualachievementpercentagesareshowninthechartbelow.
Performance Metrics Performance Levels
2017 Actual Performance Level
Achievement(% of Payout)
Relative Weighting
(%)
2017 Actual Results
Minimum (25% Payout)
Target (100% Payout)
Maximum (200% Payout)
2017 Actual Performance Achievement(% of Target)
ConsolidatedOperatingProfit
$548.9M
$458.0M
$572.5M
$687.0M
84.5%
40%
33.8%
P&COperatingProfit
$115.3M
$89.6M
$112.0M
$134.4M
114.5%
27%
30.9%
P&CDSO
68
72
68
66
98.4%
18%
17.7%
P&CGMinBacklog
$601.0M
$572.0M
$599.5M
$632.6M
104.2%
9%
9.4%
M&MOperatingProfit
$12.2M
$3.2M
$4.9M
$8.2M
200.0%
3%
6.0%
M&MDSO
61
94
90
80
200.0%
2%
4.0%
M&MGMinBacklog
$99.3M
$72.8M
$76.3M
$80.5M
200.0%
1%
2.0%
Total
100.0%
103.8%
ThecalculationofMr.Mandel’stargetMIPawardandactualMIPawardforfiscal2017isshownbelow,basedonhistargetincentivepercentageofsalaryof100%.
Named Executive Officer
Base Salary(07/01/2017)
Target %
2017 Target MIPAward
Performance Achievement
Factor (% of Target)
2017 Actual MIPAward
JosephG.Mandel
$720,000
100%
$720,000
103.8%
$747,494
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InlightofhisoversightoftheCompany’sBuildings&Infrastructure(“B&I”)andIndustriallinesofbusiness,aswellashisexecutiveroleattheCompany,theCompensationCommitteeestablishedtheminimum,targetandmaximumperformancelevelsforMr.Pragadaforfiscal2017basedonthemetricsConsolidatedOperatingProfitandOperatingProfit,DSOandGMinBacklogfortheBuildings&InfrastructureandIndustriallinesofbusinessassetforthinthechartbelow.Thecorrespondingfiscal2017actualresults,performancelevels,relativeweightingandactualachievementpercentagesareshowninthechartbelow.
Performance Metrics Performance Levels
2017 Actual Performance Level
Achievement(% of Payout)
Relative Weighting
(%)
2017 Actual Results
Minimum (25% Payout)
Target (100% Payout)
Maximum (200% Payout)
2017 Actual Performance Achievement(% of Target)
ConsolidatedOperatingProfit
$548.9M
$458.0M
$572.5M
$687.0M
84.5%
40%
33.8%
B&IOperatingProfit
$203.9M
$142.0M
$177.5M
$213.0M
174.5%
21%
36.6%
B&IDSO
60
67
63
61
200.0%
14%
28.0%
B&IGMinBacklog
$730.9M
$654.4M
$685.9M
$723.6M
200.0%
7%
14.0%
IndustrialOperatingProfit
$109.6M
$98.8M
$123.5M
$148.2M
57.6%
9%
5.2%
IndustrialDSO
38
43
39
37
158.3%
6%
9.5%
IndustrialGMinBacklog
$170.7M
$144.3M
$151.2M
$159.5M
200.0%
3%
6.0%
Total
100.0%
133.1%
ThecalculationofMr.Pragada’stargetMIPawardandactualMIPawardforfiscal2017isshownbelow,basedonhistargetincentivepercentageofsalaryof100%.
Named Executive Officer
Base Salary(07/01/2017)
Target %
2017 Target MIPAward
Performance Achievement
Factor (% of Target)
2017 Actual MIPAward
RobertV.Pragada
$
695,000
100
%
$
695,000
133.1
%
$
925,361
Forpurposesofcalculatingthepayoutsforthe2017MIPawards:
• Consolidated Operating Profit meanstotalgrossmarginlessselling,generalandadministrativeexpenses(“SG&A”),asadjustedforspecialitemsthatareunusual,non-recurringorotherwisenotindicativeoftheCompany’snormaloperationsandwhichwerenotanticipatedinsettingtheoriginaltargets.AnysuchadjustmentsmustbeapprovedbytheCompensationCommittee.Forexample,suchadjustmentsinclude,withoutlimitation:(i)chargesforrestructurings;(ii)gainsorlossesonthedisposalofasegmentofthebusinessorinconnectionwithdiscontinuedoperations;(iii)chargesfortheimpairmentofgoodwillorotherlong-livedassets;(iv)gains/lossesonthesaleofassets;(v)majorlitigationsettlementsand/orotherjudgments;(vi)theeffectsofchangesinaccountingprinciples,lawsorregulationsaffectingreportedresults;and(vii)costsandexpensesrelatingtoacquisitions.
• Operating Profit meansforeachlineofbusinessorbusinessunit,totalgrossmarginearnedbytheapplicablelineof
businessorbusinessunit,asadjustedforunusualornon-recurringitemsassetforthabove,lesstheSG&AfortheapplicablelineofbusinessorbusinessunitandlessallocatedcorporateSG&Aexpenses,includingcashandequityincentivecompensation.
• DSO (DaysSalesOutstanding)means,foreachlineofbusinessorbusinessunit,theaverageaccountsreceivableforthefourquartersendedSeptember29,2017(asoftheendofthequarter)
• GM in Backlog meansstartingGrossMargininBacklogadjustedfor(1)newawards,(2)scopeincreasesofnewandexisting
work,(3)cancellationsandcorrectionsofunderstatements/overstatements,(4)acquisitions,and(5)theforeignexchangeeffect,lesstheGrossMarginburnforthefiscalyear.GrossMargininBacklogmustfollowJacobs’backlogrulesforvariouscontracttypes.
Infiscal2017,theCompensationCommitteeapprovedadjustmentstothelevelsofperformancemetrictargetstoreflecttheacquisitionofAquentaConsultingPtyLtd.whichwascompletedinJanuary2017.Achievingminimumperformancelevelsresultinapayoutof25%oftarget;targetperformancelevelsresultinapayoutof100%oftarget;andmaximumperformancelevelsresultinapayoutof200%oftarget.Actualawardpaymentsarecalculatedbylinearinterpolationforachievementofgoalsotherthanthosespecified. 36 | 2018ProxyStatement
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Thepaymentofbonusesinfiscal2017totheparticipatingNEOswasconditionedupontheCompanyachievingaperformancegoalof$100millionofnetearningsinanefforttobefullydeductibleasperformance-basedcompensationunderSection162(m)oftheInternalRevenueCode(the“Code”).Thisgoalwasmet,thustheparticipatingNEOsbecameentitledtoreceiveabonuspaymentequalto200%oftheirtargetbonus,subjecttothecompletediscretionoftheCompensationCommitteetoreducethebonuspaymenttoalesseramount.TheCompensationCommitteeexerciseditsdiscretiontoreducebonusamountsinaccordancewiththemethodologydescribedabove.
Equity-BasedCompensation
Infiscal2017,ourNEOs’equity-basedcompensationconsistedofthefollowingawards:
Forms of 2017 Long Term Incentive Grants Weight
Performance Metrics and Vesting Period
PerformanceBasedRestrictedStockUnits(PSUs)
60%
PerformanceMetrics:-50%EPSGrowthoverthree-yearperiod-50%ROICoverthree-yearperiod
Time-BasedRestrictedStockUnits(RSUs) 40%
25%annualvestingoverfour-yearperiod
Asummaryoftheequityawardsgrantedinfiscal2017toeachNEOisprovidedbelow:
Named Executive Officer
Grant Date
PSUs Awarded (1)
PSU Value
Awarded
RSUs Awarded
RSU Value Awarded
Total Value
Awarded
StevenJ.Demetriou 11/16/2016
76,754 $4,500,088 51,169
$3,071,675 $7,571,763
KevinC.Berryman 11/16/2016
17,398 $1,020,044 11,599
$696,288 $1,716,332
JosephG.Mandel 11/16/2016
17,398 $1,020,044 11,599
$696,288 $1,716,332
TerenceD.Hagen 11/16/2016
14,840 $870,070
9,893 $593,877
$1,463,947
RobertV.Pragada 11/16/2016
14,840 $870,070
9,893 $593,877
$1,463,947
(1) Representsthetargetpayoutsharesasdescribedunder“ExecutiveCompensation—2017GrantsofPlanBasedAwards”below.
TheCompensationCommitteebelievesthatlong-termequityincentivesshouldcomprisethemajorityofcompensationfortheCompany’sseniormanagement,includingtheNEOs.Indecidinguponthedesignandmagnitudeoflong-termincentives,theCompensationCommitteeisguidedbyseveralfactors,including,alignmentwithshareholderinterests,easeofunderstandingbyparticipants,andretentiveness.TheCompensationCommitteealsotakesintoaccountmarketdata,informationandrecommendationsfromtheIndependentConsultant,andinformationprovidedbymanagement,includingrecommendationsbytheCEOwithrespecttothemagnitudeofequityincentivesforexecutiveofficersotherthanhimself.Otherthanoff-cycleawardsfornewhires,promotionsorretentiongrants,theCompensationCommitteeawardsequityincentivesinthefirst90daysofeachfiscalyear.Therewerenooff-cyclegrantsinfiscal2017toanyoftheNEOs.
TodeterminethedollarvalueofawardstobegrantedtotheNEOsandconsistentwithitspriorprocessfordeterminingthemagnitudeofawards,theCompensationCommitteeexamineddatawithrespecttocompetitivegrantvaluesattheindustrypeergroupcompanies.ItalsoconsideredthesizeoftheawardspreviouslygrantedtotheNEOs,whichreflectedtheCompensationCommittee’spreviousevaluationofthemagnitudeofawardsconsiderednecessaryinordertoaligntheawardswithcompetitivelevels.Thedeterminationofawardlevelsinfiscal2017alsotookintoaccounttheCompensationCommittee’sreviewoftheCEO’sperformanceandthatoftheotherNEOs(andtheCEO’srecommendationswithrespecttotheotherNEOs),aswellastheCompany’soverallperformanceinwhatcontinuestobechallengingeconomiccircumstances.
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Fiscal2017EquityAwards
TheCompensationCommitteeestablishedthefollowingperformancemetricsforthefiscal2017PSUawards: - 50%ofthePSUswouldbebasedontheCompany’sEPSGrowthduringathree-yearperiod(startingonthefirstdayoffiscal
2017andendingonthelastdayoffiscal2019)(the“EPSBasedAwards”);and - 50%ofthePSUswouldbetiedtotheCompany’sROICoverathree-yearperiod(the“ROICBasedAwards”).
EPSBasedAwards:
TheCompensationCommitteebelievesthatEPSisakeyindicatorofacompany’sperformanceforshareholders.Itisthepredominantmetricusedinperformance-basedequityawardsoftheCompany’speersanditsuseisintendedtoimprovethefocusonprofitability,growthandfinancialdiscipline,whilealigningtheinterestsoftheCompany’sseniorexecutiveswiththelong-terminterestsofshareholders.
ThenumberofsharestobeissueduponthevestingoftheEPSBasedAwardsgrantedinfiscal2017isbasedontheCompany’sEPSGrowthinfiscal2017,2018and2019,ineachcasemeasuredfromfiscal2016EPS.Thiscalculationisshowninthefollowingcharts:
1/3 of TargetEPS Based
PSUs
X
EPS PerformanceMultiplier for EPS
Growth Rate in fiscal2017 over fiscal 2016
=
First Year EPSShares Earned
Average AdjustedEPS
Growth - Fiscal Year2016-2017
EPS GrowthPerformanceMultiplier
Lessthan0%
0%
2.3% 100%
4.3% 200%
2/3 of TargetEPS Based PSUs
X
EPS PerformanceMultiplier for CompoundEPS Annual Growth Ratefor fiscal 2018 over fiscal
2016
-
Numberof FirstYear EPSSharesEarned
=
Second YearEPS SharesEarned
Average AdjustedEPS
Growth - Fiscal Year2016-2018
EPS GrowthPerformanceMultiplier
Lessthan2.1% 0%
4.1% 100%
6.1% 200%
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Target EPSPSUs
X
EPS PerformanceMultiplier for CompoundEPS Annual Growth Rate
for fiscal 2019 over fiscal 2016
-
Number of FirstYear EPS Shares
Earned and numberof Second YearEPS SharesEarned
=
Total numberof SharesEarned andto be issued
Average AdjustedEPS
Growth - Fiscal Year2016-2019
EPS GrowthPerformanceMultiplier
Lessthan3.6% 0%
5.6% 100%
7.6% 200%
The“EPSPerformanceMultiplier”isdeterminedbyreferencetothetablesabovebasedupontheCompany’sEPSGrowthRateorCompoundAnnualEPSGrowthRateovertherelevantfiscalperiods.TheCompensationCommitteesetthesemetricsbasedontheCompany’splanatthestartofthefiscalyear,whichreflectedtheheadwindsinclientendmarkets,andtheCompany’sproactiveeffortstoalignitsoperationsandreducecosts.
“EPS”foranyfiscalperiodiscomputedbydividingAdjustedNetEarningsbytheweightedaveragenumberofsharesoftheCompany’scommonstockoutstandingduringtheperiod.
“AdjustedNetEarnings”meansthenetearningsattributabletotheCompanyasreportedinitsconsolidatedfinancialstatementsforsuchperioddeterminedinaccordancewithGAAP(A)asmaybeadjustedtoeliminatetheeffectsof(i)costsassociatedwithrestructuringactivities,regardlessofwhethertheCompanydisclosespubliclytheamountofsuchrestructuringcostsorthefactthattheCompanyengagedinrestructuringactivitiesduringtheperiodsrestructuringcostswereincurred;and(ii)gainsorlossesassociatedwithdiscontinuedoperations,asdeterminedinaccordancewithGAAP,butlimitedtothefirstreportingperiodanoperationisdeterminedtobediscontinuedandallsubsequentperiods(i.e.,therewillbenoretroactiveapplicationoftheadjustment);and(B)asadjustedforallgainsorlossesassociatedwitheventsortransactionsthattheCompensationCommitteehasdeterminedareunusualinnature,infrequentlyoccurringandotherwisenotindicativeoftheCompany’snormaloperations,andtherefore,notindicativeoftheunderlyingCompanyperformance.Forthesepurposes,sucheventsortransactionscouldinclude:(i)settlementsofclaimsandlitigation,(ii)disposalsofoperationsincludingadispositionofasignificantamountoftheCompany’sassets,(iii)lossesonsalesofinvestments,(iv)changesinlawsand/orregulations,and(v)acquisitions.
ROICBasedAwards:
TheCompensationCommitteebelievesthatROICisaneffectivemeansoflinkingexecutivecompensationtovaluecreationthatholdsmanagementaccountablefortheefficientuseofcapital.Previously,theCompanygrantedawardsthatvestedbasedontheCompany’stotalshareholderreturn(orTSR)comparedtothatofitspeergroupoverathree-yearperiod.
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BasedontheCompany’sROICresultsfromfiscal2017to2019,theresultingsharestobeissueduponthevestingoftheROICBasedAwardsissuedinfiscal2017areshownbelow:
Target ROIC Based
Awards
X
ROIC Performance
Multiplier for ROIC from fiscal 2017 to
fiscal 2019
=
3-Year ROIC Shares
Average ROIC - FiscalYear 2017-2019
ROIC Performance Multiplier
Lessthan8.9%
0%
8.9%
50%
9.9%
100%
10.9%
200%
The“ReturnonInvestedCapital”(orROIC)foranyfiscalperiodiscomputedbydividingAdjustedNetEarningsbytheaverageinvestedcapitalonthefirstdayoffiscal2017andonthelastdayoffiscal2019.Investedcapitalisthesumofequitypluslongtermdebtlesscashandcashequivalents.
“AdjustedNetEarnings”meansthenetearningsattributabletotheCompanyasreportedinitsconsolidatedfinancialstatementsforsuchperioddeterminedinaccordancewithGAAP(A)asmaybeadjustedtoeliminatetheeffectsof(i)costsassociatedwithrestructuringactivities,regardlessofwhethertheCompanydisclosespubliclytheamountofsuchrestructuringcostsorthefactthattheCompanyengagedinrestructuringactivitiesduringtheperiodsrestructuringcostswereincurred;and(ii)gainsorlossesassociatedwithdiscontinuedoperations,asdeterminedinaccordancewithGAAP,butlimitedtothefirstreportingperiodanoperationisdeterminedtobediscontinuedandallsubsequentperiods(i.e.,therewillbenoretroactiveapplicationoftheadjustment);and(B)asadjustedforallgainsorlossesassociatedwitheventsortransactionsthattheCompensationCommitteehasdeterminedareunusualinnature,infrequentlyoccurringandotherwisenotindicativeoftheCompany’snormaloperations,andtherefore,notindicativeoftheunderlyingCompanyperformance.Forthesepurposes,sucheventsortransactionscouldinclude:(i)settlementsofclaimsandlitigation,(ii)disposalsofoperationsincludingadispositionofasignificantamountoftheCompany’sassets,(iii)lossesonsalesofinvestments,(iv)changesinlawsand/orregulations,and(v)acquisitions.
RSUGrants:
The2017RSUawardsvestratablyoverafour-yearperiod.
DividendEquivalentRights
Duringfiscal2017,theCompensationCommitteeapprovedanamendmenttoalloutstandingRSUspursuanttowhich,iftheCompanypaysacashdividendonitsoutstandingcommonstock,eachholderofRSUswillbecreditedwithcashdividendequivalentrights(orDividendEquivalents)whicharesubjecttothesamevestingrequirementsastheunderlyingRSUsasdescribedbelowinthesectionentitled“ExecutiveCompensation—NarrativeDisclosuretoSummaryCompensationTable”.TheCompensationCommitteealsoapprovedtheprovisionforDividendEquivalentsonfuturegrantsofRSUs.TheCompensationCommitteedeterminedthatthesechangeswereappropriateinlightoftheCompany’sannouncementduringfiscal2017thatitintendstopayaregularquarterlycashdividend.AsRSUsarenotoutstandingsharesofcommonstockandthuswouldnototherwisebeentitledtoparticipateinanysuchdividends,thecreditingofDividendEquivalentsisintendedtotreattheawardholdersconsistentlywithshareholdersand,inthecaseofoutstandingRSUs,preservetheequity-basedincentivesintendedbytheCompanywhentheawardsweregranted. 40 | 2018ProxyStatement
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Long-TermIncentivePlanMetricsandPerformanceAttainment–PSUwithPerformancePeriodsEndingin2017
ThreeofourNEOsservedasexecutiveofficersoftheCompanyinfiscal2014andreceivedgrantsofPSUsinMay2014:Messrs.Berryman,HagenandMandel(Messrs.DemetriouandPragadawerenotemployedbytheCompanyinfiscal2014).Theseawardswerebasedona3-yearperformanceperiodthatleveragedbothshort-andlong-termgoals.Ifcertainthresholdsofperformancewerenotattained,thennopayoutwasearnedfortheaward.TheperformancemetricsassociatedwiththesePSUs,aswellasweightingandtheassociatedperformanceperiodareshownbelow:
Performance Metric
Weighting
Performance Period
NetEarningsGrowth(“NEG”)
50%
Beginningonthefirstdayofthethirdquarteroffiscal2014andendingonthelastdayofthesecondquarteroffiscal2017
TotalShareholderReturn(orTSR)
50%
Athree-yearperiodimmediatelyfollowingthegrantdate(May22,2014–May22,2017)
2014NEGBasedAwards
ThemethodofcalculatingthenumberofsharesunderlyingthePSUsbasedonNEG(the“NEGBasedAwards”)grantedinfiscal2014thatvestedissummarizedbelow.
Thetotalnumberofunitsawardedaccumulatedoverthethree-yearperformanceperiodinthreesegments: • One-thirdofawardisbasedonNEGinYear1(Q3FY2014–Q2FY2015);
• One-thirdofawardisbasedonaverageNEGinYears1-2(Q3FY2014–Q2FY2016);and
• One-thirdofawardisbasedonaverageNEGinYears1-3(Q3FY2014–Q2FY2017).
Thefirsttwoyearsoftheprogramareconsidereda“lockin”period,meaningitwaspossibleto“lockin”vestingofuptotwo-thirdsofthetotalpotentialawardbasedonperformanceduringthatperiod.
ThefollowingNEGperformancevestingschedulewasapprovedbytheCompensationCommitteeinfiscal2014:
Average NEG in Each Segment
of Performance Period NEG Performance
Multiplier
Lessthan5%
0%
5.0%
50%
10.0%
100%
15.0%
150%
20%orgreater
200%
TheNEGPerformanceMultiplierwasdeterminedbylinearinterpolationforgrowthratesbetween5%and10%,between10%and15%andbetween15%and20%.
ThefollowingchartsummarizestheCompany’sNEGduringtheperformanceperiodandtheresultingvestingundertheapprovedperformancecriteria:
Performance Period
Net Earnings(in thousands)
Avg. NEG Growth
NEG PerformanceMultiplier
BaselineEarnings
Q3FY13-Q2FY14
$396,874
Year1
Q3FY14-Q2FY15
$419,960
5.80%
58.20%
Year2
Q3FY15-Q2FY16
$329,915
-7.80%
0.00%
Year3
Q3FY16-Q2FY17
$366,520
-1.50%
0.00%
3-YearAverage
19.40%
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Total NEG Based Awards
Granted
X
3 Year Avg. NEG
Performance Multiplier
=
19.4% of Shares tobe Distributed
AsaresultoftheNEGperformanceoverthe3-yearperformanceperiod,Messrs.Berryman,HagenandMandelreceived19.4%ofthesharesunderlyingtheNEGBasedAwards,asshowninthefollowingtable:
Participant Name
Vesting Date
NEG Based Awards Granted
% Target Earned
Shares Earned
Shares Not Earned
KevinC.Berryman 5/22/2017 8,000 19.4% 1,552 6,448TerenceD.Hagen 5/22/2017 3,000 19.4% 582 2,418JosephG.Mandel 5/22/2017 8,000 19.4% 1,552 6,448
2014TSRBasedAwards
ThemethodofcalculatingthenumberofsharesunderlyingthePSUsbasedonTSR(“TSRBasedAwards”)thatvestedissummarizedbelow:
TheperformanceperiodfortheTSRBasedAwardsbeganonMay22,2014andendedonMay22,2017,andthefollowingTSRperformancetargetswereapprovedbytheCompensationCommitteeinfiscal2014:
TSR Performance Relative toPeer TSR Performance TSR Multiplier
Below30thPercentile 0.0%30thPercentile 50.0%50thPercentile 100.0%70thPercentileandAbove 150.0%
Forperformancebetweenthe30thand50thandbetweenthe50thand70thpercentiles,straight-lineinterpolationwasusedtodeterminetheTSRmultiplier.
TheTSRcalculationwasbasedonthereturnofthe30-calendar-dayaveragepricesbetweenthebeginningandendoftheperformanceperiodusingtheformulabelow.Theaveragepriceswerebasedupondailyassetvalues,whichrepresentadjustedstockpricesfordividendsreinvestedthroughouttheperiod.
Ending Average Price – Beginning Average PriceBeginning Average Price
=
TSR
Beginning Average Price—$56.84 —Baseduponthe30-calendar-dayaverageclosingstockpricesofJacobs’commonstock,assumingalldividendswerereinvestedasoftheex-dividenddate,fromApril23,2014toMay22,2014.
Ending Average Price—$54.28 —Baseduponthe30-calendar-dayaverageclosingstockpricesofJacobs’commonstock,assumingalldividendswerereinvestedasoftheex-dividenddate,fromApril23,2017toMay22,2017.
Dividends— $0.30 —Jacobspaidout$0.30individendsduringtheperformanceperiod.
ApplyingtheaboveformulaandinputsresultedinaTSRof-4.49%,asshownbelow:
$54.28-$56.84$56.84
=
-4.49%
Percentilerankingisderivedusingacontinuouscalculationmethod,whichfirstcalculatespercentileswithoutJacobs,andthencalculatesJacobs’percentileusinglinearinterpolationbetweenthepercentileranksofthepeersjustaboveandbelowJacobs.
ThepeergroupatthetimetheTSRBasedAwardsweregrantedconsistedof14peercompanies,however,forfinalresultsthegroupconsistedof11companiesasaresultofthefollowingchanges:
– URSCorporationwasacquiredbyAECOMinOctober2014; – FosterWheelerAGwasacquiredbyAMECinNovember2014;and – ComputerSciencesCorporationmergedwithHewlettPackardEnterprisesCompanyinApril2017. 42 | 2018ProxyStatement
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Thebelowtableshowsthe11remainingpeercompaniesalongwiththeirfinalTSRresultsandpercentileranking.
Company
TSR
Percentile Rank
NorthropGrummanCorporation 117.39% 100%LeidosHoldings,Inc. 110.06% 89%RaytheonCo. 75.39% 78%L-3CommunicationsHoldingsInc. 54.10% 67%EMCORGroupInc. 45.98% 56%AECOMTechnologyCorporation 4.54% 44%QuantaServices,Inc. -0.37% 33%Jacobs Engineering Group Inc. -4.49% 32%FluorCorporation -31.80% 22%KBR,Inc. -34.61% 11%ChicagoBridge&IronCompanyN.V. -66.08% 0%
Jacobs Payment Summary
JECTSR -4.49%Rank 8thof11PercentileRank 32ndPayoutPercentage 55%
AsaresultoftheTSRperformanceoverthe3-yearperformanceperiod,Messrs.Berryman,HagenandMandelreceived55.0%ofthesharesunderlyingtheTSRBasedAwardsgrantedinfiscal2014,asshownbelow.
Participant Name
Vesting Date
TSR Based Awards Granted
% Target Earned
Shares Earned
Shares Not Earned KevinC.Berryman 5/22/2017 8,000 55.0% 4,400 3,600TerenceD.Hagen 5/22/2017 3,000 55.0% 1,650 1,350JosephG.Mandel 5/22/2017 8,000 55.0% 4,400 3,600
GrantProcess
TheCompensationCommitteehasdelegatedcertainlimitedauthoritytotheCEOtomakeequitygrantsinaccordancewiththerulesestablishedbytheCompensationCommitteefornon-executiveofficersthroughouttheyear.Assoonasadministrativelypracticableafteranewhire,promotion,orretentionwarrantsanequitygrant,theCEOreviewsandapprovestheaward.AllawardsaregrantedonthedatetheCEOtakesaction.TheCompensationCommitteeperiodicallyreceivesreportsoftheCEO’sactions.Infiscal2017,noawardsweremadeonadateotherthanwhentheCompensationCommitteemetoronthedatetheCEOapprovedanaward.
Other Benefits and Policies
BenefitsPrograms
Withtheexceptionofitsexecutivedeferralplan(“EDP”),whichisgenerallyavailabletomostoftheCompany’sseniormanagement,andcertainexpatriatearrangements,theCompanyprovidesexecutiveswiththesamebenefitplansofferedtoU.S.staffemployees.
401(k) Plan :Duringfiscal2017,theCEOandotherNEOswereeligibletoparticipateintheCompany’s401(k)plan.TheplanprovidesamatchbytheCompanyequalto50%ofthefirst6%ofeligiblepay(currently$275,000).ThisisthesameplantheCompanyofferstoallfull-timeemployeesintheUnitedStates.NoneoftheNEOsparticipatedinanydefinedbenefitretirementorsupplementalretirementbenefitplan.
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Employee Stock Purchase Plan s :TheCompanyhasqualifiedemployeestockpurchaseplansinwhichallemployeesmeetingcertainminimumeligibilityrequirementsincertaincountriesareeligibletoparticipate.TheCompanyadoptedasafe-harborplandesignin2006thatprovidesfora5%discountfromtheclosingpriceofashareofcommonstockattheendofeachpurchaseperiod.Thesafe-harborplanresultsinnoaccountingcosttotheCompany.
Non-qualified Executive Deferral Plan (EDP) :Selectemployees,includingtheNEOs,meetingcertaincompensationminimumsmayelecttoparticipateintheCompany’sEDPwherebyaportionofsalaryandbonus(includingequitycompensation)isdeferredandpaidtotheemployeesatsomefuturedateincludinguponretirement,ordeath.ParticipantdeferralsarecreditedwithearningsandlossesbasedupontheactualexperienceofthedeemedinvestmentsselectedbyparticipantswithequitycompensationdeferralsgenerallybeingcreditedwithearningsandlossesbasedontheactualexperienceoftheCompany’scommonstock.See“ExecutiveCompensation—Non-qualifiedDeferredCompensation”belowforafurtherdescriptionoftheEDP.
Perquisites
OurNEOsareeligibleforthesamebenefitsasthoseofferedtostaffemployees,includingrelocationbenefits.ExecutivesmayhavespousaltravelpaidforbytheCompanyonlywhenitisforanapprovedbusinesspurpose,inwhichcasearelatedtaxgross-upisprovided.NEOsarealsoprovidedwithfinancialplanningassistanceandannualhealthassessmentbenefits.
InconnectionwiththeCompany’sdecisiontomoveitscorporateheadquarterstoDallas,Texas,theCompanyprovidedrelocationbenefitstoemployees,includingMr.DemetriouandMr.Berryman,whohaverelocatedtoDallas.TheCompanyalsoprovidedrelocationbenefitstoMessrs.HagenandPragada.Mr.HagenrelocatedtoTullahoma,Tennessee,wherehiskeyAerospace&Technologyleadershipteamislocated,andMr.PragadarelocatedtoDallas,wherehiskeyleadershipteamislocated.Thestandardrelocationbenefitsincludereimbursementforhouse-huntingtrips,variousexpensesrelatedtointerim-livingarrangements,thecostofmovinghouseholdgoodsaswellashome-saleandhome-buyingassistance,taxassistance,andrelocationallowancestocovermiscellaneousexpenses.
PaymentsUponTerminationorChangeinControl
IfMr.DemetriouisterminatedbytheCompanywithout“cause”orMr.Demetriouresignsfor“goodreason”priortoAugust17,2018(thethirdanniversaryofhisstartdate),certainRSUsgrantedtoMr.Demetrioupursuanttohisofferletter,totheextentunvested,willbecomesubjecttoacceleratedvesting.
TheCompanyisalsopartytoanemploymentagreementwithMr.Mandel,whichwasenteredintoinconnectionwiththecompletionofatransactionpursuanttowhichtheCompanyacquiredMr.Mandel’sformeremployer,pursuanttowhichhemaybecomeentitledtoaseverancepaymentequalto12monthsofbasesalaryandthecontinuationcostsof12monthsofCOBRApremiumsuponaterminationbytheCompanywithout“cause,”conditioneduponhisexecutionandnon-revocationofageneralreleaseinfavoroftheCompany.
ConsistentwithallparticipantsintheMIP,NEOsmayalsobeentitledtopotentialpayoutsundertheMIPuponretirementandproratedvestingatretirementofPSUsgrantedduringfiscal2014andthereafter.
InthecaseofaparticipantwhoseemploymentisterminatedintheeventofdeathorDisability(asdefinedintheJacobsEngineeringGroupInc.1999StockIncentivePlan),thetermsofourstockoptionsandRSUgrantsprovideforacceleratedvestingwhilePSUswouldremainoutstanding,withthefinaldeterminationofthepayout,ifany,generallydeterminedattheendofthethree-yearperformanceperiodasdescribedinmoredetailundertheheading“ExecutiveCompensation—CompensationUnderVariousTerminationScenarios”below.
Inadditiontotheseprovisions,thetermsofstockoptions,RSUsandPSUsprovideforpotentialdoubletriggerequityaccelerationuponcertainterminationsfollowingaChangeinControl(asdefinedintheStockIncentivePlan).TheCompanyprovidesforthistypeofequityaccelerationasameansoffocusingexecutiveofficersonshareholderinterestswhenconsideringstrategicalternatives.Theseprovisionsonlyapplyintheevent 44 | 2018ProxyStatement
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aChangeinControlisconsummated,theequityisassumedbytheacquirorandthenonlyiftheemployeeincursaQualifyingTermination(asdefinedintheStockIncentivePlan),whichgenerallyincludesaterminationbytheemployeefor“goodreason”orbytheCompanyotherthanfor“cause”withintwoyearsaftertheChangeinControl.IfaChangeinControloccursandcertainoptions,restrictedstock,RSUsandPSUsarenotassumedandcontinuedbytheacquiringorsurvivingcorporationinthetransaction(oraparentcorporationthereof),allsuchawardsvestimmediately;provided,however,thatanyawardsofrestrictedstockthataresubjecttoperformance-basedvestingcriteriaand/orPSUsshallbepaidatalevelbasedupontheCompany’sactualperformanceasofthedateoftheChangeinControl.
Furtherexplanationoftheseprovisionsmaybefoundunder“ExecutiveCompensation—CompensationUnderVariousTerminationScenarios”below.
StockOwnershipGuidelines
TheCompanyhasestablishedstockownershipguidelinesforitsexecutiveofficers.TheownershipguidelinesprovidethattheChairmanandCEOisexpectedtoownCompanystockvaluedatsixtimeshisannualbasesalary,andtheCFOandPresidentsoftheCompany’slinesofbusinessareexpectedtoownCompanystockvaluedatthreetimestheirannualbasesalary.Membersofseniormanagementarerestrictedfromsellinganysharesofcommonstock(otherthanthewithholdingofsharestosatisfytaxwithholdingrequirements)duringanyperiodinwhichtheyhavenotsatisfiedtheguidelines.TheCompensationCommitteereviewseachexecutive’sholdingswithrespecttotheseownershipguidelineseachyear.Asoftheendoffiscal2017,theNEOseitherexceededtheirrespectiveguidelinesorwerewithinthreetofiveyearsfromtheirhireorpromotiondateattheendofwhichtheyareexpectedtomeettheguidelines.Seethediscussionunder“CorporateGovernance—StockOwnershipGuidelines”aboveforfurtherinformation.
InsiderTradingandPolicyonHedgingorPledgingofStock
TheCompany’sinsidertradingpolicycontainsstringentrestrictionsontransactionsinCompanystockbyexecutiveofficersanddirectors.Alltradesbyexecutiveofficersanddirectorsmustbepre-cleared.TheexecutiveofficersanddirectorsareprohibitedfromanytradinginputsorcallsofCompanystock,fromengaginginshortsalesofCompanystock,andfromhedgingorpledgingCompanystockorusingitasloancollateraloraspartofamarginaccount.
ClawbackPolicy
TheCompensationCommitteemaintainsaclawbackpolicywithrespecttoincentiveawardsgrantedtoexecutiveofficers.TheCompanyisauthorizedtorecoveraportionofincentiveawardspaidwithinthreeyearsofafinancialstatementthatisinaccurateduetomaterialnoncompliancewithanyfinancialreportingrequirementunderthesecuritieslaws.Recoveryappliestotheextentalesseramountwouldhavebeenpaidundertherestatedfinancialstatement.
TaxConsiderations
Section162(m)oftheCodelimitsdeductionsforcertainexecutivecompensationinexcessof$1,000,000inanyfiscalyear,excludingfromthislimitcompensationthatqualifiesas“performance-basedcompensation”underSection162(m).TheCompanyattemptstostructureitscompensationarrangementstopermitdeductibilityunderSection162(m),unlessthebenefitofsuchdeductibilityisoutweighedbytheneedforflexibilityortheattainmentofothercorporateobjectives.Sincecorporateobjectivesmaynotalwaysbeconsistentwiththerequirementsforfulldeductibility,theCompensationCommitteeisprepared,ifitdeemsappropriate,toenterintocompensationarrangementsunderwhichpaymentsmaynotbedeductibleunderSection162(m).
CompensationRiskAssessment
Aspartofitsoversight,theCompensationCommitteeconsiderstheimpactoftheCompany’sexecutivecompensationprogram,andtheincentivescreatedbythecompensationawardsthatitadministers,onthe
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Company’sriskprofile.TheCompensationCommitteealsoretainsanindependentconsultanttoconductariskassessmentoftheCompany’scompensationpoliciesandpractices.
Inaddition,theCompanyreviewsallofitscompensationpoliciesandpractices,includingincentiveplandesignandfactorsthatmayaffectthelikelihoodofexcessiverisktaking,todeterminewhethertheypresentasignificantrisktotheCompany.TheCompany’spayphilosophyprovidesaneffectivebalanceincashandequitymix,short-andlong-termperformanceperiods,financialandnon-financialperformance,andallowsfortheCompensationCommittee’sdiscretion.Further,policiestomitigatecompensation-relatedriskincludestockownershipguidelines,vestingperiodsonequity,insider-tradingprohibitions,andindependentCompensationCommitteeoversight.
Basedonthisreview,bothforourexecutiveofficersandallotheremployees,theCompanyandtheIndependentConsultantconcludedthattherisksarisingfromtheCompany’scompensationpoliciesandpracticesarenotreasonablylikelytohaveamaterialadverseeffectontheCompany.TheCompensationCommitteereviewedandapprovedthisconclusion. 46 | 2018ProxyStatement
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EXECUTIVE COMPENSATIONSummary Compensation Table
ThetablebelowsummarizesthetotalcompensationearnedbytheCompany’snamedexecutiveofficers(orNEOs)infiscal2017,2016and2015.
Name & PrincipalPosition
Fiscal Year
Salary ($) (1)
Bonus ($) (2)
Stock Awards ($)
(3)
Option Awards ($) (4)
Non-Equity Incentive Plan Compensation
($) (5)
Change in Pension Value and
Non-qualified Deferred
Compensation Earnings ($)
All Other Compensation
($) (6)
Total ($)
StevenJ.Demetriou 2017 1,300,000 — 7,571,763 — 2,160,202 — 113,946 11,145,911ChairmanandChiefExecutive 2016 1,300,000 — 5,252,561 1,274,661 1,575,600 — 94,591 9,497,413Officer 2015
125,000
5,650,000
5,022,034
1,328,068
—
—
41,506
12,166,608
KevinC.Berryman 2017 750,000 — 1,716,332 — 830,847 — 104,479 3,401,658ExecutiveVicePresidentandChiefFinancialOfficer
2016 750,000 875,000 1,313,194 318,669 606,351 — 165,831 4,029,045 2015
544,832
1,500,000
6,239,286
922,213
174,816
—
46,112
9,427,259
TerenceD.Hagen 2017 637,711 — 1,463,947 — 684,633 — 19,552 2,805,843President—Aerospace&Technology
2016 620,414
425,000
1,025,914
248,958
615,290
—
68,941
3,004,517
JosephG.Mandel 2017 710,988 — 1,716,332 — 747,494 — 12,842 3,187,656ExecutiveVicePresident—IntegrationManagementOffice
2016 699,996 375,000 1,313,194 318,669 337,891 — 35,507 3,080,257 2015
699,996
—
405,175
591,720
224,604
—
7,950
1,929,445
RobertV.Pragada 2017 684,231 350,000 1,463,947 — 925,361 — 38,151 3,461,690President—Buildings&InfrastructureandIndustrial
2016 428,365
500,000
2,068,349
260,000
566,743
—
—
3,823,457
(1) Consistsofbasesalaryearnedduringthefiscalyearincludinganytimeoffwithpayandcash-pay-outofaccruedtimeoffinexcessoftheCompany’slimit.Mr.PragadabeganemploymentwiththeCompanyonFebruary1,2016withastartingannualsalaryof$675,000.Infiscal2016,Mr.Pragadaearnedapro-rataportionofhissalarybasedonhisstartdate.Mr.BerrymanbeganemploymentwiththeCompanyonDecember30,2014withastartingannualsalaryof$750,000.Infiscal2015,Mr.Berrymanearnedapro-rataportionofhissalarybasedonhisstartdate.Mr.DemetrioubeganemploymentwiththeCompanyonAugust17,2015withastartingannualsalaryof$1,300,000.Infiscal2015,Mr.Demetriouearnedapro-rataportionofhissalarybasedonhisstartdate.
(2) Infiscal2017,the$350,000forMr.Pragadarepresentsthesecondhalfofhishiringbonusthatwasincludedinhisofferletterinadditiontothe$500,000hereceivedinfiscal2016whichwasnecessarytorecruithimfromhisprioremployer.Infiscal2016,Messrs.Berryman,MandelandHagenreceivedcashtransitionbonusesof$375,000,$375,000and$425,000,respectively,toensureongoingstabilityandcontinuityofleadershipduringtheCEOtransitionperiodthatbeganinfiscal2015.ForMr.Berryman,the$875,000alsoconsistsofa$500,000hiringbonusreceivedinfiscal2016inadditiontothe$1,500,000hereceivedinfiscal2015whichwasnecessarytorecruithimfromhisprioremployer.ForMr.Demetriou,the$5,650,000infiscal2015consistedofhiringbonusnecessarytorecruithimfromhisprioremployer.
(3) RepresentsthegrantdatefairvalueofstockawardsgrantedundertheStockIncentivePlaninaccordancewithFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718,StockCompensation(“FASBASCTopic718”).PleaserefertoNote2,SignificantAccountingPolicies,ofNotestoConsolidatedFinancialStatementsincludedintheCompany’s2017AnnualReportonForm10-Kforadiscussionoftheassumptionsusedtocalculatetheseamounts.
(4) Representsthegrantdatefairvalueofoptionsgranted(adjusted,however,toexcludetheeffectsofestimatedforfeitures)undertheStockIncentivePlaninaccordancewithFASBASCTopic718.PleaserefertoNote2,SignificantAccountingPolicies,ofNotestoConsolidatedFinancialStatementsincludedintheCompany’s2017AnnualReportonForm10-Kforadiscussionoftheassumptionsusedtocalculatetheseamounts.
(5) Representstheannualincentiveawardsearnedineachfiscalyear,asdeterminedbytheCompensationCommittee.See“Compensation
DiscussionandAnalysis—CompensationElements—Short-TermIncentives”foradescriptionofnon-equityincentiveplancompensationisdeterminedfortheNEOs.
(6) Infiscal2017,Mr.Demetrioureceived$7,750,Mr.Pragadareceived$9,475andMessrs.Berryman,MandelandHageneachreceived$7,950in401(k)Companymatchingcontributions.SomeoftheNEOsalsoreceivedrelocationassistanceinconnectionwithvariousmovesonbehalfoftheCompany.ForMr.Demetriou,therelocationassistancetotaled$54,569infiscal2017,consistingof(i)$29,732ofnon-taxablerelocationitems(e.g.,movementofhouseholdgoods,lodging),(ii)$14,818forhousehuntingtrips,interimlivingandhomepurchaseassistance,and(iii)$10,019forassociatedtaxgross-uppayments.Additionally,forfiscal2017,Mr.Demetrioureceived$44,145individendpaymentsonRSAs,$1,042forbasiclifeinsurancepremiumspaidforbytheCompany,$187forMr.Demetriou’sspouse’sportionofabusinessmealaswellas$6,253forfinancialplanningassistance.Forfiscal2017,Mr.Berrymanreceived$70,384inrelocationassistance,consistingof(i)$49,735ofnon-taxablerelocationitems(e.g.,movementofhouseholdgoods),(ii)$9,128forhousehuntingtrips,interimlivingandhomesaleassistance,(iii)$5,000formiscellaneousrelocation
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expensesand(iv)$6,521forassociatedgrossuppayments.Additionally,forfiscal2017,Mr.Berrymanreceived$12,990individendpaymentsonRSAs,$1,042forbasiclifeinsurancepremiumspaidforbytheCompany,$60forMr.Berryman’sspouse’sportionofabusinessmealaswellas$12,053forfinancialplanningassistance.ForMr.Hagen,$1,256forhousehuntingtripsand$473forassociatedgross-uppaymentswereincludedforfiscal2017.Additionally,forfiscal2017,Mr.Hagenreceived$1,975wasdividendpaymentsonRSAs,$833forbasiclifeinsurancepremiumspaidforbytheCompany,$281forMr.Hagen’sspouse’sportionofabusinessmeal,$1,315forfinancialplanningassistanceand$5,469forannualhealthassessment.Forfiscal2017,Mr.Mandelreceived$2,527individendpaymentsonRSAs,$975forbasiclifeinsurancepremiumspaidforbytheCompany,$1,315forfinancialplanningassistanceand$75forMr.Mandel’sspouse’sportionofabusinessmeal.Forfiscal2017,Mr.Pragada,received$14,544forrelocationassistancewhichconsistedof$3,287forhousehuntingtripandinterimliving,$10,000formiscellaneousrelocationexpensesand$1,257forassociatedgrossuppayments.Additionallyforfiscal2017,Mr.Pragadareceived$10,868fordividendpaymentsonRSAs,$940forbasiclifeinsurancepremiumspaidforbytheCompany,and$2,324forfinancialplanningassistance.Inaddition,asaresultofthedecisionbytheCompensationCommitteeinJanuary2017tomodifyalloutstandingRSUstoprovideforDividendEquivalents,theamountsreportedforfiscal2017alsoincludetheincrementalfairvalueofDividendEquivalentsof$1.40forMessrs.Demetriou,Berryman,Hagen,MandelandPragada,calculatedinaccordancewithFASBASCTopic718.See“—NarrativeDisclosuretoSummaryCompensationTableand2017GrantsofPlanBasedAwardsTable—PaymentofDividendsandDividendEquivalentRights”belowand“CompensationDiscussionandAnalysis—CompensationElements—Equity-BasedCompensation—DividendEquivalents”formoreinformationregardingDividendEquivalents.
Narrative Disclosure to Summary Compensation Table
EmploymentAgreements
TheCompanyenteredintoanofferletterwithMr.DemetriouinconnectionwithhimjoiningtheCompany,pursuanttowhichhereceived(i)acashpaymentof$5,650,000whichhadtoberepaidtotheCompanyifMr.Demetriouresignedwithout“goodreason”orwasterminatedfor“cause”priortoAugust17,2017(thesecondanniversaryofhisstartdate),and(ii)agrantofRSUswithagrantvalueof$2,700,000,whichvestinequalinstallmentsoneachofthefirstthreeanniversariesofhisstartdate,subjecttoMr.Demetriou’scontinuedemploymentontherelevantvestingdateandtoacceleratedvestingifMr.Demetriouresignswith“goodreason”oristerminatedotherthanfor“cause”priortoAugust17,2018(thethirdanniversaryofhisstartdate).Inaddition,ifMr.DemetriouwereterminatedbytheCompanywithout“cause”orheresignedfor“goodreason,”ineachcase,priortoAugust17,2017(thesecondanniversaryofhisstartdate),hewouldhavebeenentitledtoreceivealumpsumpaymentequaltooneyear’sbasesalaryandtargetbonus.Foradescriptionof“cause”and“goodreason,”see“CompensationUnderVariousTerminationScenarios”below.
TheCompanyenteredintoanemploymentagreementwithMr.MandelinconnectionwiththecompletionofatransactionpursuanttowhichtheCompanyacquiredtheexecutive’sformeremployer.Mr.Mandel’semploymentagreemententitleshimtoabasesalary,eligibilitytoparticipateintheMIPandotherbenefitsgenerallymadeavailabletotheCompany’semployees.Inaddition,ifMr.Mandel’semploymentisterminatedbytheCompanywithoutCause,theCompanywillpayMr.Mandelaseverancepaymentequalto12monthsofbasesalaryandthecontinuationcostof12monthsofCOBRApremiums,subjecttohisexecutionandnon-revocationofageneralreleaseinfavoroftheCompany.Foradescriptionof“Cause,”see“CompensationUnderVariousTerminationScenarios”below.
PaymentofDividendsandDividendEquivalentRights
Infiscal2017,theCompanycommencedpayingaquarterlycashdividend.Adividendof$0.15persharewaspaidduringeachofthelastthreefiscalquartersoffiscal2017.
HoldersofRSAsareentitledtoreceivecashdividendsthereonunlessanduntiltheholderforfeitsthesharesofcommonstockunderlyingtheRSAspursuanttothetermsoftherelevantawardagreement.
IftheCompanypaysacashdividendonitsoutstandingcommonstock,eachholderofRSUsiscreditedwithadollaramountequalto(i)theper-sharecashdividend,multipliedby(ii)thetotalnumberofRSUsheldbysuchindividualontherecorddateforthatdividend.ThesearereferredtoasDividendEquivalents.DividendEquivalentsvestonthesamescheduleastheRSUtowhichtheyrelateandwillbepaidtotheawardholderincashatthesametimetheshareofcommonstock(or,inthecaseofcash-settledRSUs,thecash)underlyingtheRSUisdeliveredtotheawardholder. 48 | 2018ProxyStatement
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2017 Grants of Plan Based Awards
ThetablebelowsummarizesallgrantsofplanbasedawardstotheNEOsinfiscal2017:
Estimated Future Payouts Under Non-
Equity Incentive Plan Awards (1)
Estimated Future Payouts Under Equity Incentive Plan Awards (2)
All Other Stock
Awards: Number of Shares of
Stock or Units(#) (3)
All Other Option Awards: Number of Securities UnderlyingOptions (#)
Exerciseor Base Price of Option Awards ($/sh)
Grant DateFair Value of Stock and
Option Awards (6)
Name Grant Date
Threshold
($) Target ($)
Maximum ($)
Threshold(#)
Target (#)
Maximum (#)
Demetriou,StevenJ 11/16/2016 - - - - - - 51,169 - - 3,071,675 11/16/2016 - - - - 38,377 (4) 76,754 (4) - - - 2,250,044 11/16/2016 - - - - 38,377 (5) 76,754 (5) - - - 2,250,044 1,950,000
3,900,000 -
- -
- -
-
Berryman,KevinC 11/16/2016 - - - - - - 11,599 - - 696,288 11/16/2016 - - - - 8,699 (4) 17,398 (4) - - - 510,022 11/16/2016 - - - - 8,699 (5) 17,398 (5) - - - 510,022 750,000
1,500,000 -
- -
-
Mandel,JosephG 11/16/2016 - - - - - - 11,599 - - 696,288 11/16/2016 - - - - 8,699 (4) 17,398 (4) - - - 510,022 11/16/2016 - - - - 8,699 (5) 17,398 (5) - - - 510,022 720,000
1,440,000 -
- -
- -
Hagen,TerenceD 11/16/2016 - - - - - - 9,893 - - 593,877 11/16/2016 - - - - 7,420 (4) 14,840 (4) - - - 435,035 11/16/2016 - - - - 7,420 (5) 14,840 (5) - - - 435,035 650,000
1,300,000 -
- -
- -
-
Pragada,RobertV 11/16/2016 - - - - - - 9,893 - - 593,877 11/16/2016 - - - - 7,420 (4) 14,840 (4) - - - 435,035 11/16/2016 - - - - 7,420 (5) 14,840 (5) - - - 435,035 695,000
1,390,000 -
- -
-
(1) Amountsrepresentthe2017projectedawardundertheManagementIncentivePlan(orMIP)basedontheCompany’sinternalplanatthestart
offiscal2017.See“CompensationDiscussionandAnalysis—CompensationElements—Short-TermIncentives”aboveforadescriptionoftheMIPandthemannerinwhichbonusesarecomputed.
(2) AmountsrepresentthetargetandmaximumpayoutsharesofawardsofPSUsgrantedundertheStockIncentivePlaninfiscal2017. (3) RepresentstheRSUsgrantedundertheStockIncentivePlan.
(4) RepresentsthetargetandmaximumpayoutsharesofthegrantsoftheEPSBasedAwardsthateachNEOcouldearnundertheStockIncentivePlan.ThegrantdatefairvaluefortheNovember16,2016,awardwas$58.63.Thenumberofsharesultimatelyissued,whichcouldbegreaterorlessthantarget,willbebasedonachievingspecificperformanceconditions.Pleasereferto“CompensationDiscussionandAnalysis—CompensationElements—EquityBasedCompensation—Fiscal2017EquityAwards—EPSBasedAwards”foradiscussionofhowthenumberofsharesultimatelyissuedwillbedetermined.
(5) RepresentsthetargetandmaximumpayoutsharesofthegrantsoftheROICBasedAwardthateachNEOcouldearnundertheStockIncentivePlan.ThegrantdatefairvaluefortheNovember16,2016awardwas$58.63.Thenumberofsharesultimatelyissued,whichcouldbegreaterorlessthantarget,willbebasedonachievingspecificperformanceconditions.Pleasereferto“CompensationDiscussionandAnalysis—CompensationElements—EquityBasedCompensation—Fiscal2017EquityAwards”foradiscussionofhowthenumberofsharesultimatelyissuedwillbedetermined.
(6) RepresentsthegrantdatefairvalueofRSUsandPSUsgranted(assumingtargetlevelofshares)undertheStockIncentivePlan,aswellastheincrementalfairvalueofDividendEquivalentsontheRSUs,ineachcase,computedinaccordancewithFASBASCTopic718.PleaserefertoNote2,SignificantAccountingPolicies,ofNotestoConsolidatedFinancialStatementsincludedintheCompany’s2017AnnualReportonForm10-Kforadiscussionoftheassumptionsusedtocalculatetheseamounts.See“—NarrativeDisclosuretoSummaryCompensationTableand2017GrantsofPlanBasedAwardsTable—PaymentofDividendsandDividendEquivalentRights”belowand“CompensationDiscussionandAnalysis—CompensationElements—Equity-BasedCompensation—DividendEquivalents”formoreinformationregardingDividendEquivalents.
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Outstanding Equity Awards of NEOs at 2017 Fiscal Year-End
Option Awards Stock Awards
Name
Number of Securities Underlying Unexercised
Options(1)
Equity Incentive Plan
Awards: Number of Securities Underlying UnexercisedUnearned Options (#)
Option ExercisePrice ($)(2)
Option Expiration Date(3)
Number OfShares Or Units Of Stock ThatHave Not Vested (#)(4)
Market Value Of Shares Or Units Of Stock That
Have Not Vested ($)(5)
Equity IncentivePlan Awards: Number Of Unearned
Shares, Units Or Other RightsThat Have Not
Vested (#)(6)
Equity IncentivePlan Awards: Market Or
Payout Value OfUnearned
Shares, Units Or Other RightsThat Have Not
Grant Date
Exercisable#
Unexercisable
#
Vested ($)(7)
Steven J. Demetriou 8/17/2015 51,129 51,130 - 43.94 8/17/2025 53,047 3,091,049 16,065 - 11/19/2015 24,684 74,055 - 42.74 11/19/2025 22,462 1,308,861 44,923 - 11/19/2015 - - - - - - 44,923 2,617,663 11/16/2016 - - - - 51,169 2,981,618 38,377 4,472,456
11/16/2016
-
-
-
-
-
-
38,377
4,472,456
Kevin C. Berryman 12/30/2014 28,666 20,334 - 45.16 12/30/2024 23,251 1,354,836 - - 5/28/2015 8,500 8,500 - 43.34 5/28/2025 - - - - 6/8/2015 - - - - - 9,500 - 11/19/2015 6,171 18,514 - 42.74 11/19/2025 5,616 327,244 11,231 - 11/19/2015 - - - - - - 11,231 654,430 11/16/2016 - - - - 11,599 675,874 8,699 1,013,781
11/16/2016
-
-
-
-
-
-
8,699
1,013,781
Joseph G. Mandel 3/24/2011 40,000 - - 48.56 3/24/2021 - - - - 5/24/2012 36,000 - - 37.03 5/24/2022 - - - - 5/23/2013 36,000 - - 55.00 5/23/2023 - - - - 5/22/2014 18,000 6,000 - 53.17 5/22/2024 - - - - 12/19/2014 16,666 8,334 - 43.25 12/19/2024 - - - - 5/28/2015 8,500 8,500 - 43.34 5/28/2025 - - - - 6/8/2015 - - - - - - 9,500 - 11/19/2015 6,171 18,514 42.74 11/19/2025 5,616 327,244 11,231 - 11/19/2015 - - - - - - 11,231 654,430 11/16/2016 - - - - 11,599 675,874 8,699 1,013,781
11/16/2016
-
-
-
-
-
-
8,699
1,013,781
Terence D. Hagen 5/23/2013 12,000 - - 55.00 5/23/2023 - - - - 5/22/2014 6,750 2,250 - 53.17 5/22/2024 - - - - 5/22/2014 - - - - - - - 6/8/2015 8,500 8,500 - 42.65 6/8/2025 - - 9,500 - 11/19/2015 4,821 14,464 - 42.74 11/19/2025 4,388 255,689 8,774 - 11/19/2015 - - - - - - 8,774 511,261 11/16/2016 - - - - 9,893 576,465 7,420 864,727
11/16/2016
-
-
-
-
-
-
7,420
864,727
Robert V. Pragada 2/1/2016 5,346 16,041 39.13 2/1/2026 24,151 1,407,279 9,967 - 2/1/2016 - - - - - - 9,967 773,240 11/16/2016 - - - - 9,893 576,465 7,420 864,727
11/16/2016
-
-
-
-
-
-
7,420
864,727
(1) Allstockoptionsvestorhavevestedattherateof25%peryearbeginningonthefirstanniversaryofthegrantdate,withthe
exceptionofthe25,000optionsgrantedonDecember19,2014toMr.Mandeland25,000optionsgrantedonDecember30,2014toMr.Berrymanthatvestannuallyinthreeequalinstallmentsbeginningonthefirstanniversaryofthegrantdate.
(2) AlloutstandingstockoptionsweregrantedundertheStockIncentivePlanandweremadewithanexercisepriceequaltotheclosingpriceofashareoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryonthegrantdate.
(3) Theawardshaveatotaltermoftenyearsfromthedateofgrant.
(4) RepresentsthenumberofunvestedsharesofrestrictedstockgrantedundertheStockIncentivePlan.TheRSAsvestratablyoverfouryearsbeginningonthefirstanniversaryofthegrantdate,withtheexceptionof(i)stockgrantstoMr.BerrymanonDecember30,2014thatvestin40%,40%and20%incrementsonthefirst,secondandthirdanniversaryoftheawarddate,respectively,and(ii)stockgrantstoMr.DemetriouonAugust17,2015of67,772sharesthatvestinthreeequalinstallmentsbeginningonthefirstanniversaryofthegrantdate,and30,456sharesthatvestonthethirdanniversaryofthegrantdate.RSUgrantsareaccompaniedbydividendequivalentrights,thatwillvestonthesamescheduleastheRSUtowhichtheyrelate,andwillbepaidtotheawardholderincashatthesametimetheshareofcommonstockunderlyingtheRSUisdeliveredtotheawardholder.RSAgrantsareentitledtoreceivecashdividendsunlessanduntiltheholderforfeitsthesharesofcommonstockunderlyingtheRSAs,pursuanttothetermsoftherelevantawardagreement.
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(5) ThemarketvalueofoutstandingawardsofrestrictedstockiscomputedusingtheclosingpriceoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryatSeptember29,2017,whichwas$58.27.
(6) RepresentsthenumberofunvestedtargetsharesofPSUs(TSRBasedAwards,EPSBasedAwards,NEGBasedAwardsand
ROICBasedAwards)grantedundertheStockIncentivePlan.TheawardsofPSUsvestattheexpirationofthreeyearsfromthegrantdate.
(7) ThemarketvalueofoutstandingPSUs(TSRBasedAwards,EPSBasedAwards,NetEarningsBasedAwardsandROICBased
Awards)iscomputedbyusingtheclosingpriceoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryatSeptember29,2017,whichwas$58.27.
Option Exercises and Stock Vested in Fiscal 2017
Thefollowingtableprovidesinformationonstockoptionsthatwereexercisedandonrestrictedstockthatvestedinfiscal2017forourNEOs:
Name
Option Awards Stock Awards
Number of Shares
Acquired onExercise
(#)
Value Realized onExercise
($)
Number of Shares
Acquired onVesting
(#)
Value Realized onVesting ($)(1)
StevenJ.Demetriou
-
-
30,078
1,614,712
KevinC.Berryman
-
-
54,326
3,083,727
JosephG.Mandel
-
-
7,824
422,650
TerenceD.Hagen
-
-
3,694
203,715
RobertV.Pragada
-
-
8,050
484,530
(1) ValueisbasedontheclosingpriceofashareoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryonthevestingdate.Includesthevalueofdividendspaidincashrelatedtounvestedsharesofrestrictedstock.
Equity Compensation Plan Information
ThefollowingtablepresentscertaininformationaboutourequitycompensationplansasofSeptember29,2017:
Plan Category
Number of securitiesto be issued upon
exercise of outstanding options,warrants, and rights
(Column A)
Weighted-average exercise price of outstanding
options, warrants, and rights (Column B)
Number of securitiesremaining available for future issuance
under equity compensation plans (excluding securities
reflected inColumn A) (Column C)
Equitycompensationplansapprovedbyshareholders(1) 2,516,825
$46.19 7,664,358
Equitycompensationplansnotapprovedbyshareholders —
— —
Total 2,516,825
$46.19 7,664,358
(1) ThenumberinColumnAexcludespurchaserightsaccruingunderourtwo,broad-based,shareholder-approvedemployeestockpurchaseplans:theJacobsEngineeringGroupInc.1989EmployeeStockPurchasePlan,asamendedandrestated(the“ESPP”),andtheJacobsEngineeringGroupInc.GlobalEmployeeStockPurchasePlan,asamendedandrestated(the“GlobalESPP”).Theseplansgiveemployeestherighttopurchasesharesatanamountandpricethatarenotdeterminableuntiltheendofthespecifiedpurchaseperiods,whichoccurmonthly.Ourshareholdershaveauthorizedatotalof32.3millionsharesofcommonstocktobeissuedthroughtheESPPandtheGlobalESPP.FromtheinceptionoftheESPPandtheGlobalESPPthroughSeptember29,2017,atotalof27.6millionshareshavebeenissued,leaving4.7millionsharesofcommonstockavailableforfutureissuanceatthatdate.
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Non-qualified Deferred Compensation
Asdescribedabove,employees,includingNEOs,meetingcertaincompensationminimumsmayelecttoparticipateintheCompany’sexecutivedeferralplans(orEDPs)wherebyaportionofsalaryandbonus(includingequitycompensation)isdeferredandpaidtotheemployeeatsomefuturedate.TheEDPsarenon-qualifieddeferredcompensationprogramsthatprovidebenefitspayabletodirectors,officers,andcertainkeyemployeesortheirdesignatedbeneficiariesatspecifiedfuturedates,anduponretirementordeath.Participantcontributionsarecreditedwithearningsandlossesbasedupontheactualexperienceofthedeemedinvestmentsselectedbyparticipants.
FortheEDPsinwhichtheNEOsparticipate(the“VariablePlans”),accountsarecredited(ordebited)basedontheactualearnings(orlosses)ofthedeemedinvestmentsselectedbytheindividualparticipants.ParticipationintheEDPsisvoluntary.AllEDPsoperateunderasingletrust.Althoughtherearecertainchange-in-controlfeatureswithintheEDPs,nobenefitenhancementsoccuruponachange-in-control.AmountsdeferredintotheVariablePlansarecreditedorchargedwiththeperformanceofinvestmentoptionsselectedbytheparticipants.Theinvestmentoptionsarenotional,andareusedformeasurementpurposesonly.TheNEOsdonotownanyunitsintheactualfunds.Ingeneral,theinvestmentoptionsconsistofanumberofmutualandindexfundscomprisingstocks,bonds,andmoneymarketaccounts.
ThefollowingtableshowstheEDPaccountactivityduringfiscal2017fortheNEOs.Priortofiscal2018,executiveofficerswereonlypermittedtodefersalaryandcashbonusamounts.
Name
Deferred Compensation
Plan
Registrant ContributionsDuring Last Fiscal Year
($)
Executive ContributionsDuring Last Fiscal Year
($) (1)
AggregateEarnings During Last Fiscal Year ($)
(2)
Aggregate Withdrawals /Distributions During Last Fiscal Year
($)
AggregateBalance at Last Fiscal
Year End ($) (3)
StevenJ.Demetriou
VariablePlans
—
192,560
29,267
—
322,467
KevinC.Berryman
VariablePlans
—
44,423
29,582
—
345,927
JosephG.Mandel
VariablePlans
—
241,101
(351,772)
2,194,446
TerenceD.Hagen
VariablePlans
—
—
3,216
—
24,974
RobertV.Pragada
VariablePlans
—
—
—
—
—
(1) AllexecutivecontributionsareincludedintheSummaryCompensationTableunderthe“Salary”and“Non-EquityIncentivePlanCompensation”columns.
(2) EarningsareincludedintheSummaryCompensationTabletotheextenttheyexceed120%oftheAFR.
(3) Balancesattheendofthefiscalyearconsistof(i)salaryandbonusdeferralsmadebytheexecutiveovertime,beginningwhenthe
executivefirstjoinedtheplan,plus(ii)allearningsandlossescreditedonalldeferrals,less(iii)allpre-retirementdistributions,ifany,takenbytheexecutivesincetheexecutivefirstjoinedtheplan.
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Compensation Under Various Termination Scenarios
Thefollowingtableprovidesinformationonexecutivecompensationunder(i)terminationinconnectionwithaChangeinControl,(ii)terminationduetodeathorDisability,(iii)retirementapprovedbytheCompensationCommittee,and(iv)withrespecttoMessrs.DemetriouandMandel,terminationbytheCompanywithoutCause,orresignationforGoodReason,ineachcase,asifsuchterminationoccurredonSeptember29,2017.
Name
Change In Control ($)
Death or Disability ($)
(5)
Approved Retirement
($)
Termination Without Cause / Good Reason
($)
Steven J. Demetriou Non-EquityIncentiveCompensation(1) 2,160,202 1,950,000 - -UnvestedIn-The-MoneyStockOptions(2) 1,882,767 1,882,767 - -UnvestedStockAwards(3) 7,381,527 7,381,527 - 1,316,378UnvestedPerformanceShareUnits(4) 9,576,140 9,576,140 - -SeveranceBenefits - - - -Total
21,000,636
20,790,434
-
1,316,378
Kevin C. Berryman Non-EquityIncentiveCompensation(1) 830,847 750,000 - -UnvestedIn-The-MoneyStockOptions(2) 681,006 681,006 - -UnvestedStockAwards(3) 2,357,954 2,357,954 - -UnvestedPerformanceShareUnits(4) 2,221,340 2,221,340 - -SeveranceBenefits - - - -Total
6,091,147
6,010,300
-
-
Terence D. Hagen Non-EquityIncentiveCompensation(1) 684,633 650,000 - -UnvestedIn-The-MoneyStockOptions(2) 368,871 368,871 - -UnvestedStockAwards(3) 832,154 832,154 - -UnvestedPerformanceShareUnits(4) 1,855,772 1,855,772 - -SeveranceBenefits - - - -Total
3,741,430
3,706,797
-
-
Joseph G. Mandel Non-EquityIncentiveCompensation(1) 747,494 720,000 - -UnvestedIn-The-MoneyStockOptions(2) 570,204 570,204 - -UnvestedStockAwards(3) 1,003,118 1,003,118 - -UnvestedPerformanceShareUnits(4) 2,221,340 2,221,340 - -SeveranceandCOBRABenefits(6) - - - 736,492Total
4,542,156
4,514,662
-
736,492
Robert V. Pragada Non-EquityIncentiveCompensation(1) 925,361 695,000 - -UnvestedIn-The-MoneyStockOptions(2) 307,025 307,025 - -UnvestedStockAwards(3) 1,983,744 1,983,744 - -UnvestedPerformanceShareUnits(4) 1,913,470 1,913,470 - -SeveranceBenefits - - - -Total
5,129,600
4,899,239
-
-
(1) Theamountofunpaidshort-termincentivecompensationthatwouldbepaidasofSeptember29,2017.(2) Theamountthatwouldbeearnedrelatedtounvestedin-the-moneyoptionsasofSeptember29,2017.Valueisbasedontheclosing
priceofashareoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryatSeptember29,2017of$58.27,minusthecostoftheoption(i.e.,theexerciseprice).
(3) TheamountthatwouldbeearnedrelatedtounvestedRSAsasofSeptember29,2017.ValueiscomputedbyusingtheclosingpriceofashareoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryatSeptember29,2017of$58.27.
(4) TheamountthatwouldbeearnedrelatedtounvestedsharesofPSUsasofSeptember29,2017.TheamountreportedwithrespecttoaChangeinControlrepresents(i)thesharesthatwouldvestbasedonactualperformancethroughSeptember29,2017,multipliedby(ii)theclosingpriceofashareoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryatSeptember29,2017of$58.27.TheamountreportedwithrespecttoDeathorDisabilityrepresents(i)thesharesthatwouldvestifperformanceachievedisconsistentwiththeCompany’sinternalforecastsofitsperformancethroughtheend
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oftheperformanceperiod,multipliedby(ii)theclosingpriceofashareoftheCompany’scommonstockasquotedbytheNYSECompositePriceHistoryatSeptember29,2017of$58.27.
(5) FordeathorDisability,theamountshownrepresentsthevalueofsharestobevestedanddistributedaccordingtothenormalvestingschedule,basedupontheCompany’sactualperformancethroughtheendoftheapplicableperformanceperiod,assumingitisconstantwithexpectedperformanceasoftheendofthecurrentfiscalyear.
(6) UponaterminationbytheCompanywithoutCause,Mr.Mandelwouldbecomeentitledtoanamountequalto12monthsofhisthencurrentbasesalaryandthecostofCOBRAbenefitsfor12months.
AspartofMr.Demetriou’sofferletter,ifheisterminatedbytheCompanywithout“cause”orresignsfor“goodreason”priortoAugust17,2018(thethirdanniversaryofhisstartdate),certainRSUsgrantedtoMr.Demetrioupursuanttohisofferletter,totheextentunvested,willbecomesubjecttoacceleratedvesting.Mr.Mandelhasanemploymentagreementthatprovidesseverancebenefitsincludingone-yearbasesalaryandthecostofCOBRAcoverageforaperiodof12monthsifheisterminatedbytheCompanywithout“cause”;subjecttohisexecutiononandnon-revocationofageneralreleaseinfavoroftheCompany.NootherNEOhasanemploymentagreementthatprovidesfortermination,severanceorchange-in-controlbenefits.
Someelementsofexecutivecompensationareaffectedeitherbyanapprovedretirement,deathorDisabilityorbyaChangeinControl(asthesetermsaredefinedintheStockIncentivePlan).PursuanttotheStockIncentivePlan:
• Inthecaseofoptions,unlessotherwiseprovidedintheapplicableawardagreement,ifemploymentterminates(i)upon,orwithintwoyearsfollowingaChangeinControlinaQualifyingTermination(asdefinedintheStockIncentivePlan),alloptionsvestimmediatelyandareexercisableuntiltheearlierofthesecondanniversaryoftheQualifyingTerminationortheexpirationofthetermoftheoption,(ii)upondeathorDisability,alloptionsvestimmediatelyandareexercisableforthetermoftheoption;or(iii)uponapprovedretirement,allunvestedoptionsareforfeitedandvestedoptionsareexercisableforthetermoftheoption;
• Inthecaseofrestrictedstock,RSUsandPSUsgrantedonorafterMay26,2011,ifemploymentterminatesupondeathorDisability,unlessotherwiseprovidedintheawardagreement,allrestrictedstock,RSUsandPSUsvestimmediately;provided,however,thatanyawardsofrestrictedstockthataresubjecttoperformance-basedvestingcriteriaand/orPSUsshallremainoutstandingandcontinuetovestorbecomeearnedbasedupontheCompany’sactualperformancethroughtheendoftheapplicableperformanceperiod
• inthecaseofrestrictedstock,RSUsandPSUs,ifemploymentterminatesupon,orwithintwoyearsfollowingaChangeinControlinaQualifyingTermination,allrestrictedstock,RSUsandPSUsvestimmediately;provided,however,thatanyawardsofrestrictedstockunitsthataresubjecttoperformance-basedvestingcriteriaand/orPSUsshallbepaidatalevelbasedupontheCompany’sactualperformanceasoftheQualifyingTermination,exceptwithrespecttothePSUs,withrespectwhichthefollowingperformancecriteriaapply:
○ inthecaseofNEGBasedAwardsgrantedpriortofiscal2016,thenumberofearnedNetEarningsBasedAwardswillbedeterminedbaseduponperformancethroughtheMarch31immediatelyprecedingorcoincidingwiththedateoftheChangeinControl,plusanadditionalnumberofshares,notlessthanzero,equalto(A)thenumberofthetargetsharesawardedmultipliedbytheNetEarningsGrowthPerformanceMultiplierdeterminedbasedupontheaverageannualgrowthintheCompany’sNetEarningsthroughtheendofthelastfiscalquartercompletedonorpriortothedateoftheChangeinControl,minus(B)theamountdeterminedbaseduponperformancethroughtheMarch31immediatelyprecedingorcoincidingwiththedateoftheChangeinControl;
○ inthecaseofTSRBasedAwardsgrantedpriortofiscal2016,theTSRPerformanceMultipliershallbedetermined
basedupontheCompany’sTSRandtheTSRofeachofthecompaniesintheindustrypeergroupthroughthedateoftheChangeinControl(and,withrespecttotheCompany,takingintoaccounttheconsiderationpersharetobepaidintheChangeinControltransaction);
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○ inthecaseofEPSBasedAwardsgrantedinfiscal2016,(a)iftheChangeinControloccurspriortothelastdayoffiscalyear2016,theperformancemultiplierforsuchPSUgrantwillbe100%;and(b)iftheChangeinControloccursuponorafterthelastdayoffiscalyear2016,thenumberofEPSBasedAwardswillbedeterminedbaseduponperformancethroughthelastdayofthefiscalyearimmediatelyprecedingorcoincidingwiththedateoftheChangeinControl,plusanadditionalnumberofPSUsnotlessthanzero,equalto(A)thenumberoftargetEPSBasedAwardsmultipliedbytheEPSPerformanceMultiplierdeterminedbasedupontheapplicableCompoundAnnualEPSGrowthRateintheCompany’sEPSthroughtheendofthelastfiscalquartercompletedonorpriortothedateoftheChangeinControl,minus(B)theamountdeterminedbaseduponperformancethroughthelastdayofthefiscalyearimmediatelyprecedingorcoincidingwiththedateoftheChangeinControl;
○ inthecaseofTSRBasedAwardsgrantedinfiscal2016,(a)iftheChangeinControloccurspriortothelastdayoffiscalyear2016,theperformancemultiplierforsuchPSUgrantwillbe100%;and(b)iftheChangeinControloccursuponorafterthelastdayoffiscalyear2016,theRelativeTSRPerformanceMultipliershallbedeterminedbasedupontheCompany’sTSRandtheTSRofeachofthecompaniesintheindustrypeergroupthroughthedateoftheChangeinControl(and,withrespecttotheCompany,takingintoaccounttheconsiderationpersharetobepaidintheChangeinControltransaction);
○ inthecaseofEPSBasedAwardsgrantedinfiscal2017,(a)iftheChangeinControloccurspriortothelastdayoffiscalyear2017,theperformancemultiplierforsuchPSUgrantwillbe100%;and(b)iftheChangeinControloccursuponorafterthelastdayoffiscalyear2017,thenumberofEPSBasedAwardswillbedeterminedbaseduponperformancethroughthelastdayofthefiscalyearimmediatelyprecedingorcoincidingwiththedateoftheChangeinControl,plusanadditionalnumberofPSUsnotlessthanzero,equalto(A)thenumberoftargetEPSBasedAwardsmultipliedbytheEPSPerformanceMultiplierdeterminedbasedupontheapplicableCompoundAnnualEPSGrowthRateintheCompany’sEPSthroughtheendofthelastfiscalquartercompletedonorpriortothedateoftheChangeinControl,minus(B)theamountdeterminedbaseduponperformancethroughthelastdayofthefiscalyearimmediatelyprecedingorcoincidingwiththedateoftheChangeinControl;and
○ inthecaseofROICBasedAwardsgrantedinfiscal2017,(a)iftheChangeinControloccurspriortothelastdayoffiscalyear2017,theROICPerformanceMultiplierwillbe100%;and(2)iftheChangeinControloccursuponorafterthelastdayoffiscalyear2017,theROICPerformanceMultipliershallbedeterminedbasedupontheCompany’sannualaverageROICovertheperiodstartingonthefirstdayoffiscal2017andendingontheChangeinControl,basedoninformationavailableasofthedateoftheChangeinControl(and,withrespecttotheCompany,takingintoaccounttheconsiderationpersharetobepaidintheChangeinControltransaction).
○ See“CompensationDiscussionandAnalysis—CompensationElements—Equity-BasedCompensation—Fiscal2017EquityAwards”foradiscussionofthecomputationoftheEPSandROICPerformanceMultipliers.
• InthecaseofPSUsgrantedonorafterMay22,2014,ifemploymentterminatesasaresultofanemployee’sretirement,theawardshallremainoutstandingandcontinuetobecomeearnedbasedupontheCompany’sactualperformancethroughtheendoftheapplicableperformanceperiod;provided,however,thatonlyapro-ratedportion(basedonthenumberofdaysduringtheperformanceperiodthattheemployeewasemployedbytheCompany)oftheawardwillbecomevested,withtheremainderoftheawardforfeited.
ForpurposesoftheMIPandtheStockIncentivePlan,“Retirement”meansaperson’svoluntaryresignationfromemployment(i)atage65orolderor(ii)atage60orolderwith10ormoreyearsofservicewiththeCompany.
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ForthepurposesoftheStockIncentivePlan,thefollowingtermshavethefollowingdefinitions:
• “Cause”means(unlessotherwiseexpresslyprovidedinanawardagreementoranothercontract,includinganemploymentagreement)theCompany’sterminationoftheemployee’semploymentwiththeCompanyfollowingtheoccurrenceofanyoneormoreofthefollowing:(1)theemployeeisconvictedof,orpleadsguiltyornolocontendereto,afelony;(2)theemployeewillfullyandcontinuallyfailstosubstantiallyperformtheemployee’sdutieswiththeCompanyafterwrittennotificationbytheCompany;(3)theemployeewillfullyengagesinconductthatismateriallyinjurioustotheCompany,monetarilyorotherwise;(4)theemployeecommitsanactofgrossmisconductinconnectionwiththeperformanceoftheemployee’sdutiestotheCompany;or(5)theemployeemateriallybreachesanyemployment,confidentialityorothersimilaragreementbetweentheCompanyandtheemployee.
• “ChangeinControl”means,withrespecttotheCompany,achangeincontrolofanaturethatwouldberequiredtobereportedinresponsetoItem6(e)ofSchedule14AofRegulation14AundertheSecuritiesExchangeActof1934(the“ExchangeAct”),providedthatsuchachangeincontrolshallbedeemedtohaveoccurredatsuchtimeas(i)any“person”(asthattermisusedinSections13(d)and14(d)(2)oftheExchangeAct)isorbecomesthe“beneficialowner”(asdefinedinRule13d-3undertheExchangeAct),directlyorindirectly,ofsecuritiesrepresenting35%ormoreofthecombinedvotingpowerforelectionofdirectorsofthethenoutstandingsecuritiesoftheCompanyoranysuccessoroftheCompany;(ii)duringanyperiodoftwo(2)consecutiveyearsorless,individualswhoatthebeginningofsuchperiodconstitutedtheBoardofDirectorscease,foranyreason,toconstituteatleastamajorityoftheBoardofDirectors,unlesstheelectionornominationforelectionofeachnewdirectorwasapprovedbyavoteofatleasttwo-thirdsofthedirectorsthenstillinofficewhoweredirectorsatthebeginningoftheperiod;(iii)theconsummationofanymergerorconsolidationasaresultofwhichJacobscommonstockshallbechanged,convertedorexchanged(otherthanbymergerwithawhollyownedsubsidiaryoftheCompany)oranyliquidationoftheCompanyoranysaleorotherdispositionof50%ormoreoftheassetsorearningpoweroftheCompany;or(iv)theconsummationofanymergerorconsolidationtowhichtheCompanyisapartyasaresultofwhichthepersonswhowereshareholdersoftheCompanyimmediatelypriortotheeffectivedateofthemergerorconsolidationshallhavebeneficialownershipoflessthan50%ofthecombinedvotingpowerforelectionofdirectorsofthesurvivingcorporationfollowingtheeffectivedateofsuchmergerorconsolidation;provided,however,thatnoChangeinControlshallbedeemedtohaveoccurredif,priortosuchtimeasaChangeinControlwouldotherwisebedeemedtohaveoccurred,theBoardofDirectorsoftheCompanydeterminesotherwise.Notwithstandingtheforegoing,withrespecttoanawardthatissubjecttoSection409Aofthecode,andifaChangeinControlwouldacceleratethetimingofpaymentthereunder,thentheterm“ChangeinControl”shallmeanachangeintheownershiporeffectivecontroloftheCompany,orintheownershipofasubstantialportionoftheassetsoftheCompanyasdefinedinSection409Aofthecodeandtheauthoritativeguidanceissuedthereunder,butonlytotheextentinconsistentwiththeabovedefinition,andonlytotheminimumextentnecessarytocomplywithSection409AofthecodeasdeterminedbytheCompensationCommittee.
• “Disability”meanstheemployeemeetsthedefinitionof“disabled”underthetermsofthelong-termdisabilityplanoftheCompanyor
relatedcompanybywhichtheemployeeisemployedineffectonthedateinquestion,whetherornottheemployeeiscoveredbysuchplan.
• “GoodReason”means,withouttheemployee’sconsent(1)amaterialreductionintheposition,dutiesorresponsibilitiesofthe
employeefromthoseineffectimmediatelypriortosuchchange;(2)areductionintheemployee’sbasesalary;(3)arelocationoftheemployee’sprimaryworklocationtoadistanceofmorethanfifty(50)milesfromitslocationasofimmediatelypriortosuchchange;or(4)amaterialbreachbytheCompanyofanyemploymentagreementbetweentheCompanyandtheemployee.
• “QualifyingTermination”meansaterminationofanemployee’semploymentwiththeCompany(i)bytheCompanyforanyreasonotherthanforCauseortheemployee’sdeathorDisabilityor(ii)bytheemployeeforGoodReason.
ForthepurposesofMr.Demetriou’sofferletter,“Cause”means(i)anintentionalactoffraud,embezzlement,theftoranyothermaterialviolationoflawthatoccursduringorinthecourseofhisemploymentwiththeCompany;(ii)intentionaldamagetotheCompany’sassets;(iii)intentionalengagementinanycompetitiveactivitywhichwouldconstituteabreachofhisdutyofloyaltyorofhiscontractualobligations;(iv)intentionalbreachofanyoftheCompany’swrittenpolicies,includingitsconfidentialitypolicy;(v)thewillfulandcontinuedfailuretosubstantiallyperformhisdutiesfortheCompany(otherthanasaresultofincapacitydue 56 | 2018ProxyStatement
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tophysicalormentalillness);(vi)failurebyhimtocooperateinanyinvestigationofJacobsbyanygovernmentalorself-regulatoryauthority,orinanyinternalinvestigation;or(vii)willfulconductbyhimthatisdemonstrablyandmateriallyinjurioustoJacobs,monetarilyorotherwise.Forpurposesofthisparagraph,anact,orafailuretoact,shallnotbedeemedwillfulorintentional,asthosetermsareusedherein,unlessitisdone,oromittedtobedone,byhiminbadfaithorwithoutareasonablebeliefthathisactionoromissionwasinthebestinterestofJacobs.Failuretomeetperformancestandardsorobjectives,byitself,doesnotconstitute“Cause”.“Cause”includesanyoftheabovegroundsfordismissalregardlessofwhetherJacobslearnsoftheexistenceofsuchgroundsbeforeorafterterminatinghisemployment.ForpurposesofMr.Demetriou’sofferletter,“GoodReason”hasthedefinitionsetforthintheInternalRevenueCode(“Code”)Section409A“safeharbor”definition,asdescribedinTreasuryRegulationSection1.409A-1(n)(2)(ii).Notwithstandingtheforegoing,aresignationwillnotbeconsideredtobeforGoodReasonunlessMr.Demetriou’sresignationactuallyoccursnotmorethanninety(90)daysfollowingtheinitialexistenceofoneormoreoftheapplicableGoodReasonconditionsarisingwithouthisconsent,andthenonlyifheprovidesnoticetoJacobsoftheinitialexistenceofsuchacondition,whichdescribessuchconditionindetail,nolessthanninety(90)daysaftertheinitialexistenceofthecondition,andJacobsdoesnotremedytheconditionwithinthethirty(30)daysfollowingitsreceiptofsuchnotice.
ForthepurposesofMr.Mandel’semploymentagreement,“Cause”means(1)grossnegligenceorwillfulmisconductinrespectto,oramaterialfailureorrefusaltocontinuetheperformanceof,hisdutiesandresponsibilitiesassetforthintheagreement,whichhefailstocurewithintwenty(20)daysafterhavingreceivedwrittennoticefromtheCompanyofthefactsandcircumstancesthatitcontendsconstitutetheaboveconduct;(2)materialbreachofanyprovisionoftheagreementorofhisEmployeeInventionandConfidentialInformationAgreement,whichhefailstocurewithintwenty(20)daysafterhavingreceivedwrittennoticefromtheCompanyofthefactsandcircumstancesthatitcontendsconstituteamaterialbreach;(3)theillnessorincapacity(orotherdisabilityasdefinedintheCompany’sdisabilityplanineffectatthetimeofsuchdisability)ofMr.Mandelofsuchacharactersoastodisablehimfromrenderingservicesforaperiodofmorethan90days(whetherornotconsecutive)duringany12-monthperiod;(4)death;(5)materialbreachof,ormaterialfailuretoabideby,theCompany’sCorporatePolicyConcerningBusinessConduct,IntegrityandEthics(USA);(6)civilfraud,breachoffiduciarydutyinvolvingpersonalprofit,orwillfulviolationofanylaw,ruleorregulation(otherthantrafficviolationsorsimilaroffenses);and/or(7)breachoforfailuretoabidebytheCompany’sDrug,Alcohol,andContrabandPolicy.
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PROPOSAL NO. 3 — RATIFICATION OF THE APPOINTMENT OFERNST & YOUNG LLP
What are you voting on?
TheAuditCommitteehasappointedErnst&YoungLLP(“Ernst&Young”or“E&Y”)toaudittheconsolidatedfinancialstatementsoftheCompanyasofSeptember28,2018,andforthefiscalyearthenending.AttheAnnualMeeting,shareholderswillbeaskedtoratifytheappointmentofErnst&Young.
TheAuditCommittee’sdecisiontore-appointourindependentauditorwasbasedonthefollowingconsiderations:
•Thequalityandperformanceoftheleadauditpartnerandtheoverallengagementteam;
•Ernst&Young’sknowledgeoftheindustriesandmarketsinwhichtheCompanyoperates;
•Ernst&Young’sknowledgeoftheCompany’soperations;
•Ernst&Young’sglobalcapabilitiesandtechnicalexpertise;
•Ernst&Young’sindependenceandobjectivity;and
•Thepotentialimpactofrotatingtoanotherindependentauditfirm.
TheCompanyisnotrequiredtosubmittheselectionofthe
independentregisteredpublicaccountingfirmtoshareholdersforapproval,butisdoingsoasamatterofgoodcorporategovernance.IftheappointmentofErnst&Youngisnotratifiedbyamajorityofthesharesofcommonstockpresent,inpersonorbyproxy,attheAnnualMeeting,thentheAuditCommitteewillconsidertheappointmentofotherindependentauditorswhoseselectionforanyperiodsubsequenttotheAnnualMeetingwillbesubjecttoratificationbytheshareholdersatthe2019annualmeeting.
RepresentativesofE&YareexpectedtoattendtheAnnualMeeting,willhaveanopportunitytomakeastatementandareexpectedtobeavailabletorespondtoappropriatequestions.
What is the Vote Required?
Theaffirmativevoteofamajorityofthesharesofcommonstockpresent,inpersonorbyproxy,attheAnnualMeetingandentitledtovoteisnecessarytoratifytheappointmentofErnst&YoungastheCompany’sindependentregisteredpublicaccountingfirmforthefiscalyearendingSeptember28,2018.
Abstentionshavethesameeffectasavoteagainsttheproposal.
TheBoardofDirectorsunanimouslyrecommendsthatyouvoteFORtheratificationoftheappointmentofErnst&YoungastheCompany’s
independentregisteredpublicaccountingfirmforthefiscalyearendingSeptember28,2018. 58 | 2018ProxyStatement
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REPORT OF THE AUDIT COMMITTEETheAuditCommitteeherebyreportsasfollows: 1. ManagementhasprimaryresponsibilityfortheaccuracyandfairnessoftheCompany’sconsolidatedfinancialstatementsaswellas
theprocessesemployedtopreparethefinancialstatements,andthesystemofinternalcontroloverfinancialreporting.
2. TheAuditCommitteerepresentstheBoardofDirectorsindischargingitsresponsibilitiesrelatingtotheCompany’saccounting,
financialreporting,financialpractices,andsystemofinternalcontrols.Aspartofitsoversightrole,theAuditCommitteehasreviewedanddiscussedwiththeCompany’smanagementtheCompany’sauditedconsolidatedfinancialstatementsincludedinits2017AnnualReportonForm10-K.
3. TheAuditCommitteehasdiscussedwiththeCompany’sinternalauditorsandtheCompany’sindependentregisteredpublicaccountingfirm,Ernst&Young,theoverallscopeofandplansfortheirrespectiveaudits.TheAuditCommitteehasmetwiththeinternalauditorsandErnst&Young,separatelyandtogether,withandwithoutmanagementpresent,todiscusstheCompany’sfinancialreportingprocessesandsystemofinternalcontroloverfinancialreportinginadditiontothosemattersrequiredtobediscussedwiththeindependentauditorsundertherulesadoptedbythePublicCompanyAccountingOversightBoard(“PCAOB”)inRule3200T.
4. TheAuditCommitteehasreceivedthewrittendisclosuresandtheletterfromErnst&Youngrequiredbyapplicablerequirementsof
thePCAOBregardingtheindependentaccountant’scommunicationswiththeAuditCommitteeconcerningindependence,andhasdiscussedwithErnst&Youngtheirindependence.
5. TheAuditCommitteehasadoptedpre-approvalpoliciesandproceduresforcertainauditandnon-auditserviceswhichErnst&Youngprovides.Indevelopingthesepoliciesandprocedures,theAuditCommitteeconsideredtheneedtoensuretheindependenceofErnst&YoungwhilerecognizingthatincertainsituationsErnst&YoungmaypossessboththetechnicalexpertiseandknowledgeoftheCompanytobestadvisetheCompanyonissuesandmattersinadditiontoaccountingandauditing.ThepoliciesandproceduresadoptedbytheAuditCommitteeallowthegeneralpre-approvalbytheAuditCommitteeofcertainservices,suchasaudit-relatedservices(whichincludeprovidingaccountingandauditingconsultationandduediligenceservices),andtaxservices(whichincludegeneraltaxcompliance,taxresearch,andplanningservices),withoutaspecific,case-by-caseconsiderationofeachoftheservicestobeperformedbyErnst&Young.Thepoliciesandproceduresrequirethatanyotherservice,includingtheannualauditservicesandanyotherattestationservice,beexpresslyandspecificallyapprovedbytheAuditCommitteepriortosuchservicesbeingperformedbyErnst&Young.Inaddition,anyproposedservicesexceedingthegeneralpre-approvedcostlevelsorbudgetedamountsrequirespecificpre-approvalbytheAuditCommittee.TheAuditCommitteeconsiderswhetherallpre-approvedservicesareconsistentwiththeSEC’srulesandregulationsonauditorindependence.
6. Basedonthereviewanddiscussionsreferredtoinparagraphs(1)through(5)above,theAuditCommitteerecommendedtothe
BoardofDirectorsandtheBoardofDirectorshasapprovedtheinclusionoftheauditedfinancialstatementsintheCompany’sAnnualReportonForm10-KforthefiscalyearendedSeptember29,2017,forfilingwiththeSEC.
JosephR.Bronson,ChairDawneS.HicktonRobertA.McNamaraChristopherM.T.Thompson
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AUDIT AND NON-AUDIT FEESSetforthbelowarethefeesforservicesrenderedbyourindependentregisteredpublicaccountingfirm,Ernst&Young,forthefiscalperiodsindicated,allofwhichwereapprovedbytheAuditCommitteepursuanttotheapprovalpoliciesunder“ReportoftheAuditCommittee”describedabove.
Type of Fees
Description
2017
2016
Audit Fees
ConsistoffeesforprofessionalservicesprovidedinconnectionwiththeannualauditoftheCompany’sconsolidatedfinancialstatements;thereviewsoftheCompany’squarterlyfinancialstatementsincludedintheCompany’sreportsonForm10-Q;therenderingofanopinionpursuanttoSection404oftheSarbanes-OxleyActof2002;andtheservicesthatanindependentauditorwouldcustomarilyprovideinconnectionwithauditsoftheCompany’ssubsidiaries,otherregulatoryfilings,andsimilarengagementsforeachfiscalyearshown,suchasattestservices,consents,andreviewsofdocumentsfiledwiththeSEC.
$7,096,997
$6,977,300
Audit-RelatedFees
ConsistoffeesforservicesthatarereasonablyrelatedtotheperformanceoftheauditorreviewoftheCompany’sfinancialstatementsnotreportedunder“AuditFees”above,includingfeesfortheperformanceofauditsandattestservicesnotrequiredbystatuteorregulations;auditsoftheCompany’semployeebenefitplans;duediligenceactivitiesrelatedtomergers,acquisitions,andinvestments;contractor’slicensecomplianceprocedures;andaccountingconsultationsabouttheapplicationofgenerallyacceptedaccountingprinciplestoproposedtransactions.
$1,384,492
$460,030
Tax Fees
Consistoffeesfortaxcompliance,taxplanning,andtaxadvice.Corporatetaxservicesprovidedencompassavarietyofpermissibleservices,includingtechnicaltaxadvicerelatedtoU.S.andinternationaltaxmatters;assistancewithforeignincomeandwithholdingtaxmatters;assistancewithsalestax,valueaddedtax,andequivalenttaxrelatedmattersinlocaljurisdictions;preparationofreportstocomplywithlocaltaxauthoritytransferpricingdocumentationrequirements;andassistancewithtaxaudits.
$1,932,029
$1,659,700
Total $10,413,518 $9,097,030
WhatourAuditCommitteeconsideredwhenengagingErnst&Youngforfiscal2017:
✓ E&Y’sindependenceandintegrity
✓ E&Y’scompetenceanditscompliancewithregulations
✓ Thebusinessacumen,value-addedbenefit,continuityandconsistency,andtechnicalandcorecompetencyprovidedbytheengagementteam
✓ TheeffectivenessofE&Y’sprocesses,includingitsqualitycontrol,timelinessandresponsiveness,andcommunicationandinteractionwithmanagement
✓ E&Y’seffortstowardefficiency,includingwithrespecttoprocessimprovementsandfees 60 | 2018ProxyStatement
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SECURITY OWNERSHIPThefollowingtables,basedinpartuponinformationsuppliedbyofficersanddirectorsandcertainshareholders,setsforthcertain
informationregardingtheownershipoftheCompany’scommonstockasoftheRecordDateby(1)allthosepersonsknownbytheCompanytobebeneficialownersofmorethanfivepercentoftheoutstandingsharesofcommonstock,(2)eachdirectorandnomineefordirector,(3)eachNEO,and(4)alldirectorsandexecutiveofficersoftheCompanyasagroup.Unlessotherwiseindicated,eachoftheseshareholdershassolevotingandinvestmentpowerwithrespecttothesharesbeneficiallyowned,subjecttocommunitypropertylawswhereapplicable.
Security Ownership of Certain Beneficial Owners
Name and Address
Amount and Nature of Ownership of
Beneficial Ownership
Percentage of Class (1)
TheVanguardGroup 12,069,948(2) 10.03% POBox2600 ValleyForge,Pennsylvania19482
PRIMECAPManagementCompany 8,307,047(3) 6.89% 177EastColoradoBlvd.,11thFloorPasadena,California91105
(1) Calculatedbasedon120,521,384sharesofcommonstockoutstandingasoftheRecordDate.
(2) BasedsolelyontheinformationsetforthinaSchedule13G/AfiledbyTheVanguardGroupInc.withtheSEConNovember13,
2017.Basedonsuchfiling,TheVanguardGroupInc.hassolevotingpowerwithrespectto171,954shares,sharedvotingpowerwithrespectto26,338shares,soledispositivepowerwithrespectto11,877,929shares,andshareddispositivepowerwithrespectto192,019shares.
(3) BasedsolelyontheinformationsetforthinaSchedule13FfiledbyPRIMECAPManagementCompanywiththeSECfortheperiod
endedSeptember30,2017.Basedonsuchfiling,PRIMECAPManagementCompanyhassolevotingpowerwithrespectto4,374,963sharesandsoledispositivepowerwithrespecttoalloftheshares.
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Security Ownership of Directors, Nominees, and Management
Name
Number ofShares ofCommonStock
Number ofShares ofCommonStock
Relating to Unexercised
StockOptions (1)
TotalNumber ofShares
BeneficiallyOwned
Percent of Class (2)
Non-Management Directors:
JosephR.Bronson 11,840 11,250 23,090 *
JuanJoséSuárezCoppel — 9,250 9,250 *
RobertC.Davidson,Jr. 12,000 21,750 33,750 *
RalphE.Eberhart — 12,750 12,750 *
DawneS.Hickton 2,800 2,875 5,675 *
LindaFayneLevinson 31,000 24,250 55,250 *
RobertA.McNamara 250 — 250 *
PeterJ.Robertson 12,000(3) 23,250 35,250 *
ChristopherM.T.Thompson 10,000(4) 12,750 22,750 *
Named Executive Officers: *
StevenJ.Demetriou 113,050 100,498 213,548 *
KevinC.Berryman 80,418 49,508 129,926 *
TerenceD.Hagen 27,998 36,892 64,890 *
JosephG.Mandel 39,168 167,508 206,676 *
RobertV.Pragada 31,403 5,346 36,749 * All directors and executive officers as agroup 382,538 503,684 886,222 *
*Lessthan1%
(1) Includesonlythoseunexercisedoptionsthatareexercisable,orwillbecomeexercisablewithin60daysoftheRecordDate.(2) Calculatedbasedon120,521,384sharesofcommonstockoutstandingasoftheRecordDateandtherelevantnumberofsharesof
commonstockissuableuponexerciseofstockoptionswhichareexercisableorwillbeexercisablewithin60daysoftheRecordDate.(3) Mr.Robertsonsharesvotinganddispositivepowerwithhisspouseasto12,000sharesthatareheldinalivingtrust.(4) Mr.Thompsonsharesvotinganddispositivepowerwithhisspouseasto10,000sharesthatareheldinalivingtrust. 62 | 2018ProxyStatement
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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCESection16(a)oftheExchangeActrequirestheCompany’sdirectorsandexecutiveofficersandpersonswhoownbeneficiallymore
thantenpercentofaregisteredclassoftheCompany’sequitysecuritiestofilewiththeSECandtheNYSEinitialreportsofownershipandreportsofchangesinownershipofcommonstockandotherequitysecuritiesoftheCompany.Officers,directorsandgreaterthanten-percentshareholdersarerequiredbySECregulationstofurnishtheCompanywithcopiesofallSection16(a)formsfiledbythem.
TotheCompany’sknowledge,basedsolelyonareviewofthecopiesofsuchfilingsonfilewiththeCompanyandwrittenrepresentationsfromitsdirectorsandexecutiveofficers,allSection16(a)filingrequirementsapplicabletotheCompany’sdirectors,officersandgreater-than-ten-percentbeneficialownerswerecompliedwithonatimelybasisduringfiscal2017,withtheexceptionoftheinitialForm3filingupontheappointmentofMr.McNamaratotheBoardofDirectors,whichwasfiledlateduetoanadministrativedelayinobtainingtherequisiteEdgarfilingcodes.
EXECUTIVE OFFICERSForinformationabouttheexecutiveofficersoftheCompany,seePartI,Item1—BusinessintheCompany’s2017AnnualReporton
Form10-K.
SHAREHOLDERS’ PROPOSALSOnlyshareholdersmeetingcertaincriteriaoutlinedintheCompany’sBylawsareeligibletosubmitnominationsforelectiontothe
BoardofDirectorsortobringotherproperbusinessbeforeanannualmeeting.UndertheCompany’sBylaws,shareholderswhowishtonominatepersonsforelectiontotheBoardofDirectorsorbringotherproperbusinessbeforeanannualmeetingmustgivepropernoticetotheCompanynotearlierthanthecloseofbusinessonthe120thdayandnotlaterthanthecloseofbusinessonthe90thdaypriortothefirstanniversaryoftheprecedingyear’sannualmeeting.Therefore,noticesregardingnominationsofpersonsforelectiontotheBoardofDirectorsandotherproperbusinessforconsiderationatthe2019annualmeetingofshareholdersmustbesubmittedtotheCompanynoearlierthanSeptember19,2018andnolaterthanOctober19,2018.Noticesregardingnominationsandotherproperbusinessmustincludecertaininformationconcerningthenomineeortheproposalandtheproponent’sownershipofcommonstockoftheCompany,ineachcaseassetforthintheCompany’sBylaws.Nominationsorotherproposalsnotmeetingtheserequirementswillnotbeentertainedattheannualmeeting.TheSecretaryoftheCompanyshouldbecontactedinwritingattheaddressonthefirstpageofthisProxyStatementtosubmitanominationorbringotherproperbusinessortoobtainadditionalinformationastotheproperformofanomination.
InordertobeincludedintheCompany’sProxyStatementandformofproxyrelatingtothe2019annualmeeting,proposalsofshareholdersmustbereceivedbytheSecretaryoftheCompanynolaterthanAugust9,2018.IftimelynoticeofashareholderproposalisnotreceivedbytheCompany,thentheproxiesnamedontheproxycardsdistributedbytheCompanyfortheannualmeetingmayusethediscretionaryvotingauthoritygrantedtothembytheproxycardsiftheproposalisraisedattheannualmeeting,whetherornotthereisanydiscussionofthematterintheProxyStatement.The2019annualmeetingofshareholdersiscurrentlyexpectedtobeheldonWednesday,January16,2019.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONSTheNominatingandCorporateGovernanceCommitteeisresponsibleforthereview,approval,orratificationof“related-person
transactions”involvingtheCompanyoritssubsidiariesandrelatedpersons.UnderSECrules,arelatedpersonisadirector,executiveofficer,nomineefordirector,or5%shareholderoftheCompany,andtheirimmediatefamilymembers.TheCompanyhasadoptedwrittenpoliciesandproceduresthatapplytoanytransactionorseriesoftransactionsinwhichtheCompanyorasubsidiaryisaparticipant,inwhichtheamountinvolvedexceeds$120,000,andarelatedpersonhasadirectorindirectmaterialinterest.
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TheNominatingandCorporateGovernanceCommitteehasdeterminedthateachofthefollowingtransactionsshallbedeemedtobepre-approvedundertheCompany’spoliciesandproceduresreferencedabove: • anytransactionwithanothercompanyforwhicharelatedperson’sonlyrelationshipisasanemployee(otherthanasanexecutive
officer)iftheamountinvolveddoesnotexceedthegreaterof$1millionor2%ofthatcompany’stotalannualrevenue;
• anycharitablecontribution,grant,orendowmentbytheCompanytoacharitableorganization,foundation,oruniversityforwhicha
relatedperson’sonlyrelationshipisasanemployee(otherthanasanexecutiveofficer)oradirector,iftheamountinvolveddoesnotexceedthegreaterof$1millionor2%ofthecharitableorganization’stotalannualreceipts;
• compensationtoexecutiveofficersdeterminedbytheCompensationCommittee; • compensationtodirectorsasreportedintheCompany’sproxystatement; • transactionsinwhichallsecurityholdersreceiveproportionalbenefits;and • transactionswheretheratesorchargesinvolvedaredeterminedbycompetitivebids.
Anytransactioninvolvingrelatedpersonsthatexceeds$120,000andthatdoesnotfallwithinthecategoriesdescribedaboveispresentedtotheNominatingandCorporateGovernanceCommitteeforreview.TheCommitteedetermineswhethertherelatedpersonhasadirectorindirectmaterialinterestinthetransactionandmayapprove,ratify,rescind,ortakeotheractionwithrespecttothetransactioninitsdiscretion.Indeterminingwhethertoapproveorratifythetransaction,theNominatingandCorporateGovernanceCommitteetakesintoaccount,amongotherfactorsitdeemsappropriate,whethertheinterestedtransactionisontermsnolessfavorablethantermsgenerallyavailabletoanunaffiliatedthird-partyunderthesameorsimilarcircumstancesandtheextentoftherelatedperson’sinterestinthetransaction.
HOUSEHOLDING OF PROXY MATERIALSTheSEChasadoptedrulesthatpermitcompaniesandintermediariessuchasbrokerstosatisfydeliveryrequirementsforproxy
statementswithrespecttotwoormoreshareholderssharingthesameaddressbydeliveringasingleproxystatementaddressedtothoseshareholders.Thisprocess,whichiscommonlyreferredtoas“householding,”potentiallyprovidesextraconvenienceforshareholdersandcostsavingsforcompanies.TheCompanyandsomebrokershouseholdproxymaterials,deliveringasingleproxystatement,annualreportorNoticeofInternetAvailabilityofProxyMaterials,asapplicabletomultipleshareholderssharinganaddressunlesscontraryinstructionshavebeenreceivedfromtheaffectedshareholders.
OnceyouhavereceivednoticefromyourbrokerortheCompanythattheyortheCompanywillbehouseholdingmaterialstoyouraddress,householdingwillcontinueuntilyouarenotifiedotherwiseoruntilyouprovideuswithcontraryinstructions.If,atanytime,younolongerwishtoparticipateinhouseholdingandwouldprefertoreceiveaseparateproxystatement,annualreportorNoticeofInternetAvailabilityofProxyMaterials,asapplicable,orifyouarereceivingmultiplecopiesofsuchproxymaterialsandwishtoreceiveonlyoneset,pleasenotifyyourbrokerifyoursharesareheldinabrokerageaccountortheCompanyifyouholdcommonstockdirectly.Promptlyuponreceivingawrittenororalrequest,aseparatecopyoftheproxystatement,annualreportorNoticeofInternetAvailabilityofProxyMaterials,asapplicable,willbedeliveredtoyou.Requestsinwritingshouldbeaddressedtotheaddressbelow.Requestsmayalsobemadebycalling(214)638-0145.
JacobsEngineeringGroupInc.Attention:InvestorRelations1999BryanStreet,Suite1200
Dallas,Texas,75201 64 | 2018ProxyStatement
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ANNUAL REPORT, FINANCIAL AND ADDITIONAL INFORMATIONTheCompany’sannualauditedfinancialstatementsandreviewofoperationsforfiscal2017canbefoundintheCompany’sAnnual
ReportonForm10-KforthefiscalyearendedSeptember29,2017.Acopyofthe2017Form10-KisbeingmadeavailabletoeachshareholderofrecordontheRecordDateconcurrentlywiththisProxyStatement.Youcanaccessacopyofour2017AnnualReportonForm10-KonthesecurewebsitedisclosedinboththeNoticeofInternetAvailabilityofProxyMaterialsyoureceivedandinthisProxyStatementaswellasontheCompany’swebsiteatwww.jacobs.com.TheCompanywillfurnishwithoutchargeacopyofthe2017Form10-K,includingthefinancialstatementsandanyschedulesthereto,toanypersonfollowingtheinstructionsforrequestingwrittencopiesoftheproxymaterialsassetforthintheNoticeofInternetAvailabilityofProxyMaterialsortoanypersonrequestinginwritingandstatingthatheorshewasthebeneficialowneroftheCompany’scommonstockonNovember22,2017.TheCompanywillalsofurnishcopiesofanyexhibitstothe2017Form10-Ktoeligiblepersonsrequestingexhibitsatacostof$0.50perpage,paidinadvance.TheCompanywillindicatethenumberofpagestobechargedforuponwritteninquiry.Requestsshouldbeaddressedto:
JacobsEngineeringGroupInc.Attention:InvestorRelations1999BryanStreet,Suite1200
Dallas,Texas,75201
OTHER BUSINESSTheBoardofDirectorsdoesnotintendtopresentanyotherbusinessforactionattheAnnualMeetinganddoesnotknowofanybusinessintendedtobepresentedbyothers.
MichaelR.TylerSeniorVicePresident,GeneralCounselandSecretary
Dallas,TexasDecember7,2017
2018ProxyStatement | 65
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TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: E34472-P99820
KEEP THIS PORTION FOR YOUR RECORDS— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
DETACH AND RETURN THIS PORTION ONLYTHIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
JACOBS ENGINEERING GROUP INC.
The Board of Directors recommends a vote FOR each Nominee for Director and FOR Proposals 2 and 3.
1. Election of Directors
Nominees: For
Against
Abstain
1a. Joseph R. Bronson ☐ ☐ ☐
1b. Juan José Suárez Coppel ☐ ☐ ☐ For Against Abstain
1c. Robert C. Davidson, Jr.
☐
☐
☐
2. Advisory vote to approve the Company’s executivecompensation.
☐
☐
☐
1d. Steven J. Demetriou
☐
☐
☐
1e. Ralph E. Eberhart
☐
☐
☐
3. To ratify the appointment of Ernst & Young LLP asthe Company’s independent registered publicaccounting firm.
☐
☐
☐
1f. Dawne S. Hickton
☐
☐
☐
1g. Linda Fayne Levinson ☐ ☐ ☐
1h. Robert A. McNamara ☐ ☐ ☐
1i. Peter J. Robertson ☐ ☐ ☐
1j. Christopher M.T. Thompson ☐ ☐ ☐
THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN, WILL BE VOTEDFOR EACH DIRECTOR NOMINEE AND FOR PROPOSALS 2 AND 3.
Please sign as your name(s) appear(s) on this proxy. If held in joint tenancy, all holders must sign. Trustees, administrators, etc. should include theirtitle and authority. Corporations should provide the full name of the corporation and of the authorized officer signing this proxy.
Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date
JACOBS ENGINEERING GROUP INC.1999 BRYAN STREETSUITE 1200DALLAS, TX 75201
There are three ways to vote your proxy.
Your telephone or Internet vote authorizes the proxies named on the reverse side to vote theshares held in this account in the same manner as if you marked, signed and returned yourproxy card.
VOTE BY INTERNET - www.proxyvote.comUse the Internet to transmit your voting instructions and for electronic delivery of informationup until 11:59 p.m. Eastern Time (GMT-5) on Tuesday, January 16, 2018. Have your proxycard in hand when you access the web site and follow the instructions to obtain your recordsand to create an electronic voting instruction form.
VOTE BY PHONE - 1-800-690-6903Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. EasternTime (GMT-5) on Tuesday, January 16, 2018. Have your proxy card in hand when you calland then follow the instructions.
VOTE BY MAILMark, sign and date your proxy card and return it in the postage-paid envelope we haveprovided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY11717.
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALSIf you would like to reduce the costs incurred by our Company in mailing proxy materials, youcan consent to receiving all future proxy statements, proxy cards and annual reportselectronically via e-mail or the Internet. To sign up for electronic delivery, please follow theinstructions above to vote using the Internet and, when prompted, indicate that you agree toreceive or access proxy materials electronically in future years.
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JACOBS ENGINEERING GROUP INC.ANNUAL MEETING OF SHAREHOLDERS
Wednesday, January 17, 20184:30 PM ET
The Ritz-Carlton New York, Battery ParkManhattan Ballroom
2 West StreetNew York City, New York 10004
U.S.A.
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.
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E34473-P99820
Jacobs Engineering Group Inc.1999 Bryan Street, Suite 1200 proxyDallas, Texas 75201 This proxy is solicited by the Board of Directors for use at the Annual Meeting of Shareholders on January 17, 2018. The shares of stock held in this account will be voted as you specify on the reverse side. If no choice is specified, the proxy will be voted “FOR” the persons nominated as directors by the Board of Directors, “FOR” Proposals 2 and 3, and in thediscretion of the proxies named below with respect to any other matters that may properly come before the Annual Meeting and all adjournments andpostponements thereof. By signing the proxy, you revoke all prior proxies and appoint Steven J. Demetriou, Kevin C. Berryman and Michael J. Tyler, and each of them, as proxies,each with full power of substitution, to vote the shares held in this account on the matters shown on the reverse side and any other matters which mayproperly come before the Annual Meeting and all adjournments or postponements thereof.
If you vote by Phone or Internet, please do not mail your Proxy Card.
See reverse for voting instructions.