SEC Filings

AECOM filed this Form DEF 14A on 01/23/2019
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Table of Contents

2018 Aligning Pay with Performance and Strategy

Our executive compensation program is designed to support its strategy for long-term profitable growth and stockholder value creation. With this in mind, for fiscal year 2018 the Compensation Committee selected earnings and cash flow metrics to align pay with its long-term strategy as follows:

Performance Metrics    

Operating Groups

Why Selected
Adjusted Earnings Per Share   Pre-Variable Compensation ("Pre-VC") EBITA   Adjusted EPS and Pre-VC EBITA incentivizes a focus on profitability

Adjusted EPS focuses on earnings on a per share basis to align with stockholder interests

Pre-VC EBITA focuses on overall operating profit levels
Operating Cash Flow Per Share   Operating Cash Flow   Cash flow incentivizes disciplined growth and risk management, operational efficiency and working capital management

Per Share for Corporate metrics incentivizes capital discipline and aligns with performance of our stockholders
Key Performance Indicator ("KPI") Assessment   Encourages focus on the achievement of the Company's annual financial plan, as well as on specific qualitative goals included in the Company's strategic plan

2018 Rigorous Goal Setting

The Compensation Committee reviews the financial, strategic and operational goals of the Company's annual financial plan when determining the financial targets for its NEOs. Financial performance goal setting is built upon a rigorous, bottom-up financial planning process across the entire organization.

Earnings Metrics Consistent with Financial Guidance

For fiscal year 2018, the adjusted EPS target for the NEOs' annual cash bonus award was consistent with the Company's 2018 financial plan and consistent with financial guidance presented to investors.

Incentivizing Continued E&C Industry Leading Cash Flow Performance

For fiscal year 2018, the Compensation Committee set the free cash flow per share target at 90% of its adjusted earnings per share target. Targeting 90% free cash flow conversion rates exceeds the E&C industry historical median conversion rates (81%). The operating cash flow per share goal was then derived by adding capital expenditures per share, net of proceeds from disposals, to the free cash flow per share target.

Aligning Pay for Performance in Fiscal Year 2018

For fiscal year 2018, the Compensation Committee exercised discretion to reduce the CEO's annual bonus from 131.8% to 100.0% to reflect execution challenges that led to operating profit below plan and the resulting underperformance of the Company's stock price.