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Table of Contents SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Material Under §240.14a-12 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) Payment of Filing Fee (Check the appropriate box): No fee required. Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: Fee paid previously with preliminary materials: Check box if any part of the fee is offset as provided by Exchange Act Rule 01-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: (2) Form, Schedule or Registration Statement No.: (3) Filing Party: (4) Date Filed:

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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:

  

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Notice of 2018

Annual Meeting of Shareholders and Proxy Statement

Jacobs Engineering Group Inc. 

 

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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

Table of Contents

  

 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 

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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.

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  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

 2018ProxyStatement  |     5

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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

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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

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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

 

[email protected]

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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

 

[email protected].

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.

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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

*Seepage36fordefinitionofGMinBacklog 28        |  2018ProxyStatement

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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

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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

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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.

— — — — — — — — — — — —  — — — — — — — — — — — — — — — — — — — —  — — — — — — — — — — —

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.