As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive compensation and certain financial performance measures of the Company. For more information, refer to the “Compensation Discussion and Analysis” section of this proxy statement.
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| · · · · · · · · · · Value of Initial Fixed $100 · · · · · |
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| · · · · · · · · · · Investment Based on: · · · · |
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| · · Summary · · · · Average Summary · · Average · · Company · · Peer Group · · · · Company-Selected |
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| · · Compensation · · Compensation · · Compensation Table · · Compensation · · Total · · Total · · · · Performance |
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| · · Table Total for · · Actually Paid to · · Total for Non-CEO · · Actually Paid to · · Shareholder · · Shareholder · · Net Income · · Measure: Adjusted |
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| · · CEO(1) · · CEO(2) · · NEOs(3) · · Non-CEO NEOs(4) · · Return(5) · · Return(6) · · (Loss)(7) · · EPS(8)(9) |
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| Year · · ($) · · ($) · · ($) · · ($) · · ($) · · ($) · · ($ in Millions) · · ($) |
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| (a) · · (b) · · (c) · · (d) · · (e) · · (f) · · (g) · · (h) · · (i) · |
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| 2025 | 11,614,552 | 4,882,906 | 2,776,970 | 1,408,337 | 138.12 | 212.94 | 403 | 3.93 | |
| 2024 | 12,556,945 | 13,432,658 | 3,147,439 | 3,317,203 | 198.50 | 194.56 | 381 | 3.33 | |
| 2023 | 12,659,920 | 15,968,454 | 3,017,505 | 3,602,870 | 184.57 | 169.87 | (261) | 2.91 | |
| 2022 | 12,617,035 | 16,957,757 | 2,943,662 | 3,716,852 | 174.25 | 137.07 | 192 | 2.71 | |
| 2021 | 12,024,347 | 22,501,119 | 2,595,828 | 3,781,778 | 155.66 | 124.96 | 35 | 2.43 | |
| (1) | The amounts in this column are the amounts of total compensation reported for Mr. Bradie for each corresponding year in the “Total” column of the Summary Compensation Table on page 76. |
| (2) | The amounts in this column represent the amount of “Compensation Actually Paid” to Mr. Bradie, as computed in accordance with Item 402(v) of Regulation S-K. The amounts do not reflect the actual amount of compensation earned by or paid to Mr. Bradie during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Bradie’s total compensation for each year to determine the “Compensation Actually Paid”: |
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| · · · · · · · · Reported Change in · · · · · |
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| · · Reported Summary · · · · · · the Actuarial Present · · · · Compensation |
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| · · Compensation Table · · Reported Value of · · Equity Award · · Value of Pension · · Pension Benefits · · Actually Paid to |
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| · · Total for CEO · · Equity Awards(a) · · Adjustments(b) · · Benefits(c) · · Adjustments · · CEO |
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| Year · · ($) · · ($) · · ($) · · ($) · · ($) · · ($) |
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| 2025 | 11,614,552 | (4,879,034) | (1,852,612) | — | — | 4,882,906 | |
| 2024 | 12,556,945 | (4,819,548) | 5,695,261 | — | — | 13,432,658 | |
| 2023 | 12,659,920 | (4,630,378) | 7,938,912 | — | — | 15,968,454 | |
| 2022 | 12,617,035 | (4,641,028) | 8,981,750 | — | — | 16,957,757 | |
| 2021 | 12,024,347 | (4,256,264) | 14,733,036 | — | — | 22,501,119 | |
| (a) | This column reflects the grant date fair value of equity awards, which are the amounts reported in the “Stock Awards” column in the Summary Compensation Table for the applicable year. |
| (b) | The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: |
| (i) | the year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; |
| (ii) | the amount of change as of the end of the applicable fiscal year (from the end of the prior fiscal year) in fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year; |
| (iii) | for awards that are granted and vest in same applicable year, the fair value as of the vesting date; |
| (iv) | for awards granted in prior years that vest in the applicable year, the amount equal to the change as of the vesting date (from the end of the prior fiscal year) in fair value; |
| (v) | for awards granted in prior years that are determined to fail to meet the applicable vesting conditions during the applicable year, a deduction for the amount equal to the fair value at the end of the prior fiscal year; and |
| (vi) | the dollar value of any dividends or other earnings paid on stock or option awards in the applicable year prior to the vesting date that are not otherwise reflected in the fair value of such award or included in any other component of total compensation for the applicable year. |
KBR, INC. PROXY STATEMENT| 2026** **91
The valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant. The amounts deducted or added in calculating the equity award adjustments are as follows:
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| · · · · · · Fair Value as · · Year over Year · · Fair Value at the · · Value of Dividends · · · |
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| · · · · Year over Year · · of Vesting · · Change in Fair · · End of the Prior · · or Other Earnings · · · |
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| · · · · Change in Fair · · Date of Equity · · Value of Equity · · Year of Equity · · Paid on Stock or · · · |
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| · · Year-End Fair · · Value of · · Awards · · Awards Granted · · Awards that Failed · · Option Awards Not · · · |
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| · · Value of Equity · · Outstanding · · Granted and · · in Prior Years · · to Meet Vesting · · Otherwise Reflected · · Total Equity · |
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| · · Awards Granted · · and Unvested · · Vested in the · · that Vested in · · Conditions in the · · in Fair Value or · · Award · |
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| · · in Year · · Equity Awards · · Year · · the Year · · Year · · Total Compensation · · Adjustments · |
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| Year · · ($) · · ($) · · ($) · · ($) · · ($) · · ($) · · ($) |
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| 2025 | 3,938,199 | | (5,411,305) | | — | | (427,352) | | — | | 47,846 | | (1,852,612) |
| 2024 | 5,592,210 | | (143,980) | | — | | 221,880 | | — | | 25,151 | | 5,695,261 |
| 2023 | 5,608,767 | | 2,118,155 | | — | | 163,948 | | — | | 48,042 | | 7,938,912 |
| 2022 | 5,553,263 | | 3,224,991 | | — | | 131,229 | | — | | 72,267 | | 8,981,750 |
| 2021 | 8,574,868 | | 6,082,602 | | — | | 7,120 | | — | | 68,446 | | 14,733,036 |
| (c) | Mr. Bradie does not participate in any KBR-sponsored defined benefit or actuarial pension plans. |
| (3) | The amounts in this column represent the average of the amounts reported for the Company’s NEOs as a group (excluding Mr. Bradie) in the “Total” column of the Summary Compensation Table in each applicable year. The names of each of the NEOs (excluding Mr. Bradie) included for purposes of calculating the average amounts in each applicable year are as follows: |
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| Year | | NEOs | |
| 2025 | | Messrs. Bright, Ibrahim, and Sopp and Ms. Galindo and Ms. Myles | |
| 2024 | | Messrs. Bright, Ibrahim, and Sopp and Ms. Galindo | |
| 2023 | | Messrs. Bright, Ibrahim, and Sopp and Ms. Myles | |
| 2022 | | Messrs. Bright, Ibrahim, and Sopp and Ms. Myles | |
| 2021 | | Messrs. Bright, Ibrahim, Kelly, and Sopp and Ms. Akerson | |
| (4) | The amounts in this column represent the average amount of “Compensation Actually Paid” to the NEOs as a group (excluding Mr. Bradie), as computed in accordance with Item 402(v) of Regulation S-K. The amounts do not reflect the actual average amount of compensation earned by or paid to the NEOs as a group (excluding Mr. Bradie) during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation for the NEOs as a group (excluding Mr. Bradie) for each year to determine the “Compensation Actually Paid,” using the same methodology described above in Note 2: |
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| · · Average Reported · · · · · · Average Reported · · · · · |
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| · · Summary · · · · · · Change in the · · · · Average · |
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| · · Compensation Table · · Average Reported · · Average Equity · · Actuarial Present · · · · Compensation · |
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| · · Total for Non-CEO · · Value of Equity · · Award · · Value of Pension · · Average Pension · · Actually Paid to · |
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| · · NEOs · · Awards(a) · · Adjustments(b) · · Benefits(c) · · Benefit Adjustments · · Non-CEO NEOs · |
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| Year | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) |
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| 2025 | | 2,776,970 | | (803,636) | | (564,997) | | — | | — | | 1,408,337 |
| 2024 | | 3,147,439 | | (850,524) | | 1,020,288 | | — | | — | | 3,317,203 |
| 2023 | | 3,017,505 | | (750,463) | | 1,335,828 | | — | | — | | 3,602,870 |
| 2022 | | 2,943,662 | | (762,467) | | 1,535,657 | | — | | — | | 3,716,852 |
| 2021 | | 2,595,828 | | (721,882) | | 1,907,832 | | — | | — | | 3,781,778 |
| (a) | This column reflects the average grant date fair value of equity awards, which are the amounts reported in the “Stock Awards” column in the Summary Compensation Table for the applicable year, for the NEOs as a group (excluding Mr. Bradie). |
| (b) | The amounts deducted or added in calculating the total average equity award adjustments are as follows: |
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| · · · · · · Average Fair · · Year over Year · · · · Average Value of · · · |
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| · · · · Year over Year · · Value as of · · Average Change · · Average Fair Value · · Dividends or Other · · · |
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| · · · · Average · · Vesting · · in Fair Value of · · at the End of the · · Earnings Paid on · · · |
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| · · Average Year- · · Change in Fair · · Date of Equity · · Equity Awards · · Prior Year of Equity · · Stock or Option · · · |
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| · · End Fair Value · · Value of · · Awards · · Granted in Prior · · Awards that Failed · · Awards Not · · Total · |
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| · · of Equity · · Outstanding · · Granted and · · Years that · · to Meet Vesting · · Otherwise Reflected · · Average · |
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| · · Awards Granted · · and Unvested · · Vested in the · · Vested in the · · Conditions in the · · in Fair Value or · · Equity Award · |
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| · · in Year · · Equity Awards · · Year · · Year · · Year · · Total Compensation · · Adjustments · |
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| Year | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) |
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| 2025 | | 491,144 | | (684,963) | | — | | (68,646) | | (311,431) | | 8,899 | | (564,997) |
| 2024 | | 986,895 | | (25,383) | | — | | 49,196 | | — | | 9,580 | | 1,020,288 |
| 2023 | | 909,059 | | 362,354 | | — | | 56,203 | | — | | 8,212 | | 1,335,828 |
| 2022 | | 912,352 | | 605,404 | | — | | 7,066 | | — | | 10,835 | | 1,535,657 |
| 2021 | | 1,239,559 | | 802,342 | | — | | 2,557 | | (147,871) | | 11,245 | | 1,907,832 |
| (c) | Our NEOs do not participate in any KBR-sponsored defined benefit or actuarial pension plans. |
92** ** ** 2026 **|KBR, INC. PROXY STATEMENT
KBR, INC. PROXY STATEMENT| 2026** **93
| (5) | Cumulative total shareholder return (“TSR”) is the cumulative TSR on shares of our common stock assuming an investment of $100 on December 31, 2020, and reinvestment of all dividends. |
| (6) | The peer group used for this purpose is the Peer Group used by the Company for benchmarking purposes as discussed in the “Compensation Discussion and Analysis” section of this proxy statement. Peer group TSR was calculated on a market capitalization-weighted basis according to the respective issuers’ stock market capitalization at the beginning of each period for which a return is indicated. TSR for both the Company and the peer group is based on an initial $100 investment, measured on a cumulative basis from the market close on December 31, 2020, through and including January 2, 2026. TSR calculations reflect reinvestment of dividends. |
The 2025 Peer Group is composed of the following companies:
| ● BAE Systems plc● Booz Allen Hamilton Holding Corporation● CACI International Inc.● Dover Corporation● Flowserve Corporation | | ● Fluor Corporation● Gartner, Inc.● Hubbell Incorporated● Huntington Ingalls Industries, Inc.● Jacobs Solutions Inc. | | ● L3Harris Technologies, Inc.● Leidos Holdings, Inc.● Parsons Corporation● Science Applications International Corporation | | ●Teradata Corporation●Tetra Tech, Inc.● Textron Inc.● The Timken Company |
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Conduent Incorporated, which was a constituent of our 2024 Peer Group, was removed from the peer group in 2024 due to declining comparability with the Company’s size and business profile, and it therefore was excluded in determining our peer group TSR for 2025 (and the prior years presented). Using the peer group from the prior disclosure, the peer group TSR would be as follows: 2025: $212.57; 2024: $194.25; 2023: $169.53; 2022: $136.82; and 2021: $124.89.
| (7) | The amounts reported represent the amount of GAAP net income (loss) reflected in the Company’s audited financial statements for the applicable fiscal year. |
| (8) | Adjusted EPS is considered a non-GAAP financial measure under SEC rules. See the section titled “Non-GAAP Financial Information” at the end of this proxy statement for further information, including reconciliation of adjusted EPS to diluted EPS, the most directly comparable GAAP measure. |
| (9) | We wound down the HomeSafe Alliance joint venture in fiscal year 2025 and determined that this disposal was a new adjustment within our Adjusted EPS non-GAAP measure. Since this was a new adjustment, we recast Adjusted EPS for all periods. The recast changed the value for fiscal year 2024 from 3.34 (as disclosed in our 2024 proxy statement) to 3.33 (as disclosed here). |
