Form 4: Jacobs Solutions Inc. Executive Vice President Stephen A. Arnette Reports Stock Transactions

Executive Vice President Stephen A. Arnette reports the vesting and distribution of performance stock units, resulting in the acquisition of Jacobs Solutions Inc. common stock and shares withheld for tax obligations.

Summary

• On September 18, 2024, Stephen A. Arnette, Executive Vice President of Jacobs Solutions Inc., acquired common stock through the vesting of performance stock units.
• The performance stock units were awarded on November 17, 2021, March 2, 2022, November 16, 2022, and November 15, 2023, under the Jacobs Stock Incentive Plan.
• The number of shares issued upon vesting was determined based on the company's EPS growth and average ROIC over three-year performance periods, as per the Employee Matters Agreement (EMA) related to the spin-off of the Critical Mission Solutions and Cyber & Intelligence businesses.
• A total of 8,758 shares were acquired through the vesting of performance stock units.
• Arnette also disposed of 4,559 shares to cover tax withholding obligations related to the vesting of the performance stock units and restricted stock units.
• Following these transactions, Arnette directly owns 27,084 shares of Jacobs Solutions Inc. common stock.

Sentiment

Score: 6

Explanation: Neutral sentiment. The document primarily reports routine stock transactions related to executive compensation. The vesting of performance stock units suggests the company is meeting some performance targets, but the tax withholding is a neutral event.

Positives

• The vesting of performance stock units indicates that the company has met certain performance targets related to EPS growth and ROIC.
• Arnette's increased holdings in Jacobs Solutions Inc. common stock could be interpreted as a sign of confidence in the company's future performance.

Negatives

• The disposal of shares for tax withholding reduces Arnette's overall holdings, although this is a standard practice.

Risks

• The value of the acquired shares is subject to market fluctuations, which could impact Arnette's investment.

Industry Context

Executive compensation and stock ownership are common practices in publicly traded companies like Jacobs Solutions Inc. to align management's interests with those of shareholders.

Comparison to Industry Standards

• Stock-based compensation is a common practice among engineering and construction firms like Jacobs Solutions, Fluor Corporation, and AECOM.
• Performance-based vesting schedules tied to metrics like EPS and ROIC are also standard in the industry to incentivize executives to achieve specific financial goals.
• The vesting percentages (e.g., 63.2%, 50.5%, 72.9%, 91.0%, 90.3%, 95.4%) are within a reasonable range for performance-based equity awards, although the specific targets and achievements would need to be compared to industry benchmarks for a more detailed assessment.

Stakeholder Impact

• The vesting of performance stock units aligns executive compensation with company performance, potentially benefiting shareholders.
• The transactions have a minimal direct impact on employees, customers, suppliers, or creditors.

Key Dates