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UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 14A(RULE 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATIONProxy Statement Pursuant to Section 14(a) of the
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225WestWackerDriveChicago,Illinois60606
April29,2020
DearFellowShareholder:
OnbehalfoftheBoardofDirectorsandmanagementofCushman&Wakefieldplc,Iampleasedtosharewithyoutheenclosedmaterialsrelatingtoourannualgeneralmeetingofshareholdersfor2020,whichisbeingheldonJune10,2020at8:00a.m.(CentralTime).Thenoticeofmeetingandproxystatementthatfollowdescribethebusinessthatwewillconsideratthemeeting.
InlightoftheCOVID-19(coronavirus)pandemic,shareholdersarestronglydiscouragedfromattendingourmeetinginpersonthisyear,asitmaynotbesafeorlawfulforshareholderstodoso.Nevertheless,yourvoteisveryimportant.Wearepleasedtooffermultipleoptionsforvotingyourordinaryshares.Youmayvotebytelephone,viatheinternetorbymail,asdescribedbeginningonpage1oftheaccompanyingproxystatement.
ThankyouforyoursupportofCushman&Wakefieldplc.
Sincerelyyours,
Brett White
Executive Chairman and Chief Executive Officer
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Notice of 2020 Annual General Meeting of ShareholdersJune 10, 20208:00a.m.(CentralTime)225WestWackerDrive,Boardroom,30thFloorChicago,Illinois60606
AGENDA:
1. ElectionofthefourClassIIBoardnominateddirectorsnamedintheProxyStatement:BrettWhite,RichardMcGinn,JodieMcLeanandBillieWilliamson.
2. RatificationofKPMGLLPasourindependentregisteredpublicaccountingfirm.
3. AppointmentofKPMGLLPasourUKStatutoryAuditor.
4. AuthorizationoftheAuditCommitteetodeterminethecompensationofourUKStatutoryAuditor.
5. Non-binding,advisoryvoteonthecompensationofournamedexecutiveofficers(“Say-on-Pay”).
6. Non-binding,advisoryvoteonourdirectorcompensationreport.
OurArticlesofAssociationandUKlawdonotcurrentlyprovideuswiththeabilitytoholdavirtualannualgeneralmeetingofshareholders(the“AnnualMeeting”).AsaresultoftheCOVID-19(coronavirus)pandemic,theUKlegislatureorcertainregulatorybodiesmaytakeaction,byadoptinglegislationorotherwise,whichwouldpermitustolawfullyholdavirtualAnnualMeetingduringthependencyofthepandemic.Ifsuchactionoccurs,andwedetermineitispracticabletoswitchourAnnualMeetingtoavirtualformat,weexpecttodosoandwillprovideshareholderswithnoticeofsuchchangeinaccordancewithapplicablelegalrequirements.IfweareunabletoswitchtoavirtualAnnualMeeting,UKlawunfortunatelystillrequiresustoholdsuchAnnualMeetingnolaterthanJune30.As such, shareholders are stronglydiscouraged from attending the Annual Meeting in person, and shareholders are cautioned that such attendance may not be safe orlawful.WhileweregretthattheCOVID-19pandemicmayprecludeshareholderattendanceatthisyear’sAnnualMeeting,youarestronglyencouragedtocompleteandreturnyourproxysothatyoursharescanbevotedattheAnnualMeetinginaccordancewithyourinstructions.OnlyshareholdersofrecordasofApril23,2020willbeentitledtoattendandvoteattheAnnualMeetingandanyadjournmentsorpostponementsthereof.
April29,2020
ByOrderoftheBoardofDirectors
Brett Soloway
ExecutiveVicePresident,GeneralCounselandCorporateSecretary
ThisProxyStatementandaccompanyingproxycardarefirstbeingmailedtoshareholdersonoraboutMay8,2020.
ReferencesinthisProxyStatementto“Cushman,”“theCompany,”“we,”“us”or“our”refertoCushman&Wakefieldplcandincludeallofitsconsolidatedsubsidiaries,unlessotherwiseindicatedorthecontextrequiresotherwise.Referencesto“theBoard”refertoourBoardofDirectors.CopiesofourAnnualReportonForm10-KforthefiscalyearendedDecember31,2019,includingfinancialstatements,andourUKAnnualReportandAccountsforthefiscalyearendedDecember31,2019,arebeingmailedsimultaneouslywiththisProxyStatementtoeachshareholderandwillalsobeavailableathttp://ir.cushmanwakefield.com.
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PROXY SUMMARY INFORMATIONToassistyouinreviewingtheproposalstobevoteduponattheAnnualMeeting,wehavesummarizedimportantinformationcontainedinthisProxyStatementandourAnnualReportonForm10-KforthefiscalyearendedDecember31,2019.Thissummarydoesnotcontainalloftheinformationthatyoushouldconsider,andyoushouldcarefullyreadtheentireProxyStatementandAnnualReportonForm10-Kbeforevoting.
Voting
ShareholdersofrecordasofApril23,2020maycasttheirvotesinanyofthefollowingways:
InternetVisitwww.investorvote.com/CWK.Youwillneedthe16-digitnumberincludedinyourproxycard,voterinstructionformornotice.
PhoneCall+1800-652-8683orthenumberonyourvoterinstructionform.Youwillneedthe16-digitnumberincludedinyourproxycard,voterinstructionformornotice.
MailSendyourcompletedandsignedproxycardorvoterinstructionformtotheaddressonyourproxycardorvoterinstructionform.
In PersonDuetotheCOVID-19(coronavirus)pandemic,shareholdersarestronglydiscouragedfromattendingtheAnnualMeetinginperson,andshareholdersarecautionedthatsuchattendancemaynotbesafeorlawful.
Voting Matters and Board RecommendationsProposal BoardVoteRecommendationsElectionofdirectors(page1) ✓FOReachDirectorNomineeRatificationofKPMGLLPasindependentregisteredpublicaccountingfirm(page11) ✓FORAppointmentofKPMGLLPasUKStatutoryAuditor(page14) ✓FORAuthorizationoftheAuditCommitteetodeterminethecompensationoftheUKStatutoryAuditor(page15)
✓FOR
Non-binding,advisoryvoteonthecompensationofnamedexecutiveofficers(“Say-on-Pay”)(page16)
✓FOR
Non-binding,advisoryvoteonthedirectorcompensationreport(page39) ✓FOR
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Fiscal Year 2019 Business Highlights
Cushman&Wakefieldisaleadingglobalcommercialrealestateservicesfirmwithaniconicbrandandapproximately53,000employeesledbyanexperiencedexecutiveteam.Weoperatefromapproximately400officesin60countries,managingover4.1billionsquarefeetofcommercialrealestatespaceonbehalfofinstitutional,corporateandprivateclients.Weservetheworld’srealestateownersandoccupiers,deliveringabroadsuiteofservicesthroughourintegratedandscalableplatform.OurbusinessisfocusedonmeetingtheincreasingdemandsofourclientsthroughacomprehensiveofferingofservicesincludingProperty,facilitiesandprojectmanagement,Leasing,Capitalmarkets,Valuationandotherservices.In2019,2018and2017,wegeneratedrevenuesof$8.8billion,$8.2billionand$6.9billion,respectively,andFeerevenuesof$6.4billion,$6.0billionand$5.3billion,respectively.
Since2014,wehavebuiltourcompanyorganicallyandthroughthecombinationofDTZ,CassidyTurleyandCushman&Wakefield,givingusthescaleandworldwidefootprinttoeffectivelyserveourclients’multinationalbusinesses.TheresultisaglobalrealestateservicesfirmwiththeiconicCushman&Wakefieldbrand,steepedinover100yearsofleadership.In2018and2019,wewerenamed#2inourindustry’stopbrandstudy,theLipseyCompany’sTop25CommercialRealEstateBrands.
Thepastseveralyearshavebeenaperiodofrapidgrowthandtransformationforourcompany.Ourexperiencedmanagementteamhasbeenfocusedonintegratingcompanies,drivingoperatingefficiencies,realizingcostsavings,attractingandretainingtalentandimprovingfinancialperformance.InAugust2018,Cushman&Wakefieldsuccessfullycompletedaninitialpublicoffering,listingthefirmontheNewYorkStockExchange(NYSE:CWK).
Today,Cushman&Wakefieldisoneofthetopthreerealestateservicesprovidersasmeasuredbyrevenueandworkforce.Wehavemadesignificantinvestmentsintechnologyandworkflowstosupportourgrowthstrategytoimproveourproductivityanddrivebetteroutcomesforourclients.
In2019,weachievedrecordfullyearfinancialperformancewiththefollowingresults: • Revenueforthefullyearwas$8.8billion,up6%(8%localcurrency).Feerevenuewas$6.4billion,up8%(9%localcurrency).
• FullyearNetincomewas$0.2million,animprovementof$186.0millionover2018withearningspershareof$0.00andAdjustedearningspershareof$1.64.
• FullyearAdjustedEBITDAwas$724.4million,up10%(11%localcurrency).AdjustedEBITDAmarginof11.3%wasup25bps.
Formorecompleteinformationregardingouryear2019performance,pleasereviewourAnnualReportonForm10-KforthefiscalyearendedDecember31,2019.AdjustedEBITDA,AdjustedEBITDAmargin,adjustedearningspershareandlocalcurrencyarenon-GAAP(generallyacceptedaccountingprinciples)financialmeasures.Ourmanagementprincipallyusesthesenon-GAAPfinancialmeasurestoevaluateoperatingperformance,developbudgetsandforecasts,improvecomparabilityofresultsandassistourinvestorsinanalyzingtheunderlyingperformanceofourbusiness.For definitions of these measures, reconciliations to the most closely comparable GAAPmeasure and explanations on the reasons our management uses such measures, please see pages 40-42 in the section entitled“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K forthe fiscal year ended December 31, 2019.YoucanobtainafreecopyofourAnnualReportonForm10-KatthewebsiteoftheSecuritiesandExchangeCommission(the“SEC”),www.sec.gov,orbysubmittingawrittenrequestby(i)mailtoCushman&Wakefieldplc,Attention:InvestorRelations,225WestWackerDrive,Chicago,Illinois60606,(ii)telephoneat+1312-338-7860or(iii)[email protected].
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Summary of Board Nominees
ThefollowingtableprovidessummaryinformationabouteachofthedirectornomineeswhoisbeingvotedonbyshareholdersattheAnnualMeeting.
Name Age Director Since
Principal/Most Recent Occupation Committees
Other Public Company Boards
BrettWhite 60 2015 ExecutiveChairmanandCEOofCushman&Wakefield None NoneRichardMcGinn*
73
2019
FormerFounder/InvestorinSkyCapital
Audit,
Compensation None
JodieMcLean* 51 2018 ChiefExecutiveOfficerofEDENS Audit OneBillieWilliamson* 67 2018 FormerSeniorAssurancePartneratErnst&Young Audit Two*IndependentDirector
Executive Compensation Highlights
Our Philosophy
Ourcompensationphilosophyistoprovideanattractive,flexibleandeffectivecompensationpackagetoourexecutiveofficersthatistiedtoourcorporateperformanceandalignedwiththeinterestsofourshareholders.Ourexecutivecompensationprogramisdesignedtohelpusrecruit,motivateandretainthecaliberofexecutiveofficersnecessarytodeliverconsistenthighperformancetoourclients,shareholdersandotherstakeholders.
Oneofourgrowthstrategiesistorecruit,hireandretaintoptalent.Weattractandretainhighqualityemployees.Theseemployeesproducesuperiorclientresultsandpositionustowinadditionalbusinessacrossourplatform.Webelieveourpeoplearethekeytoourbusinessandwehaveinstilledanatmosphereofcollectivesuccess.Ourcompensationpoliciesandpracticesalsoallowustocommunicateourgoalsandstandardsofconductandperformanceandtomotivateandrewardemployeesfortheirachievements.Ingeneral,thesameprinciplesgoverningthecompensationofourexecutiveofficersalsoapplytothecompensationofallouremployees,whichinclude: • Retainandhirethebestleaders.
• Payforperformance.
• Rewardlong-termgrowthandprofitability.
• Tiecompensationtobusinessperformance.
• Alignexecutivecompensationwithshareholderinterests.
• Limitedpersonalbenefits.
Last Year’s Say-on-Pay Vote
Atour2019annualgeneralmeetingofshareholders,shareholdersapprovedour2018compensationofournamedexecutiveofficerswith96.6%ofthevotescastinfavorofourpractices.Giventhehighlevelofsupport,theCompensationCommitteedidnotmakeanysignificantchangestoitsapproachtoexecutivecompensationspecificallyasaresultofthis“say-on-pay”vote.
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Annual Compensation
Setforthbelowisthe2019compensationforourNamedExecutiveOfficers.SeethefootnotesaccompanyingtheSummaryCompensationTableonpage25formoreinformation.
Name and Principal Position Year Salary Bonus Stock Awards
Option Awards
Non-Equity Incentive Plan Compensation
All Other Compensation Total
Brett White,Executive Chairman and Chief Executive Officer 2019 $ 950,000 — $ 6,150,409 — $ 2,152,503 — $ 9,252,912Duncan Palmer,EVP, Chief Financial Officer 2019 $ 600,000 — $ 2,600,279 — $ 968,747 $ 7,000 $ 4,176,026John Forrester,EVP, Global President 2019 $ 593,101 — $ 2,600,279 — $ 1,235,250 $ 80,078 $ 4,508,708Nathaniel Robinson,Chief Investment Officer and EVP of Strategic Planning 2019 $ 389,151 — $ 520,052 — $ 413,200 $ 7,000 $ 1,329,402Brett Soloway,EVP, General Counsel and Corporate Secretary 2019 $ 495,479 — $ 832,089 — $ 387,375 — $ 1,714,943
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TABLE OF CONTENTS
PROPOSAL1 ELECTIONOFDIRECTORS 1
CORPORATEGOVERNANCE 4
PROPOSAL2 RATIFICATIONOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM 11
AUDITANDOTHERFEES 12
PROPOSAL3 APPOINTMENTOFUKSTATUTORYAUDITOR 14
PROPOSAL4 AUDITCOMMITTEEAUTHORIZATIONTODETERMINECOMPENSATIONOFUKSTATUTORYAUDITOR 15
PROPOSAL5 ADVISORYVOTEONCOMPENSATIONOFNAMEDEXECUTIVEOFFICERS 16
COMPENSATIONDISCUSSIONANDANALYSIS 17
DIRECTORSANDEXECUTIVEOFFICERS 35
PROPOSAL6 ADVISORYVOTEONDIRECTORCOMPENSATIONREPORT 39
SECURITYOWNERSHIP 40
CERTAINRELATIONSHIPSANDRELATED-PARTYTRANSACTIONS 42
GENERALINFORMATIONABOUTTHEANNUALMEETING 44
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PROPOSAL 1 ELECTION OF DIRECTORSOurBoardhasnominatedfourClassIIdirectorsforelectionatthisAnnualMeetingtoholdofficeuntiltheannualgeneralmeetingofshareholderstobeheldin2023andtheelectionoftheirsuccessors.AllofthenomineeswereselectedtoserveonourBoardbasedon: • outstandingachievementintheirprofessionalcareers;
• broadexperience;
• personalandprofessionalintegrity;
• theirabilitytomakeindependent,analyticalinquiries;
• financialliteracy;
• maturejudgment;
• high-performancestandards;
• familiaritywithourbusinessandindustry;and
• anabilitytoworkcollegially.
Wealsobelievethatallofourdirectornomineeshaveareputationforhonestyandadherencetohighethicalstandards.EachagreedtobenamedinthisProxyStatementandtoserveifelected.
Director Nomination Criteria: Qualifications, Skills and ExperienceThecriteriaforselectingdirectorcandidatesissetoutintheCorporateGovernanceGuidelinesandinthecharteroftheNominatingandCorporateGovernanceCommittee.Bothofthesedocumentsareavailableathttp://ir.cushmanwakefield.com/governance.Inevaluatingcandidates,theBoardseeksindividualsofhighintegrityandgoodjudgmentwhohavearecordofaccomplishmentintheirchosenfields,andwhodisplaytheindependenceofmindandstrengthofcharactertoeffectivelyrepresentthebestinterestofallshareholdersandprovidepracticalinsightsanddiverseperspectives.TheNominatingandCorporateGovernanceCommitteeisresponsibleforidentifyingandscreeningcandidates,fordevelopingandrecommendingtotheBoardcriteriafornominees,forevaluatingcandidatesrecommendedornominatedbyshareholders,forrecommendingtotheBoardallnomineesforelectiontotheBoardattheannualgeneralmeetingofshareholders,andforrecommendinganyotheractionwithrespecttocandidatesnominatedbyshareholders.TheCorporateGovernanceGuidelinesandthecharteroftheNominatingandCorporateGovernanceCommitteeauthorizetheNominatingandCorporateGovernanceCommitteetodeterminethequalifications,qualities,skillsandotherexpertiserequiredtobeadirectorbutalsosetsoutthefollowingminimumqualificationrequirements: • integrity,
• strengthofcharacter,
• judgment
• businessexperience,
• specificareasofexpertise,
• abilitytodevotesufficienttimetoattendanceatandpreparationforBoardmeetings,
• factorsrelatingtocompositionoftheBoard(includingsizeandstructure),and
• principlesofdiversity.
TheBoardhasnotintroducedtermoragelimits.WhiletermlimitscouldhelpensurethatfreshideasandviewpointsareavailabletotheBoard,theyholdthedisadvantageoflosingthecontributionofdirectorswhohavebeenabletodevelop,overaperiodoftime,increasedinsightintotheCompany
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anditsoperationsand,therefore,providesignificantcontributionstotheBoardasawhole.Asanalternativetotermlimits,theNominatingandCorporateGovernanceCommitteereviewseachdirector’scontinuedtenureontheBoardannually.
TheNominatingandCorporateGovernanceCommitteemayconsidercandidatesforourBoardfromanyreasonablesource,includingfromasearchfirmengagedbytheNominatingandCorporateGovernanceCommitteeorshareholderrecommendations.During2019,theNominatingandCorporateGovernanceCommitteeengagedasearchfirmtoassistitwiththepotentialcandidacyofMr.McGinn,whowasappointedtotheBoardonJune6,2019.
Althoughwedonothaveaformalpolicywithregardtotheconsiderationofanydirectornomineesrecommendedbyshareholders,ashareholderorgroupofshareholdersmayrecommendpotentialcandidatesforconsideration.WedonothavesuchapolicybecausetheNominatingandCorporateGovernanceCommitteebelievesthatitcanadequatelyevaluateanysuchnomineesonacase-by-casebasis.
ShareholdersseekingtorequestthatanindividualbenominatedasadirectormustgenerallydeliveranysuchrequestandaccompanyinginformationinwritingtotheCorporateSecretaryat225WestWackerDrive,Chicago,Illinois60606notearlierthanthecloseofbusinessontheonehundredandtwentieth(120)calendardaynorlaterthanthecloseofbusinessontheninetieth(90)calendardaypriortothedateofthefirstanniversaryoftheprecedingyear’sannualgeneralmeeting.Therequestmustincludeallinformationrelatingtosuchdirectornomineethatisrequiredtobedisclosedinaproxystatementorotherfilingsrequiredtobemadeinconnectionwithsolicitationsofproxiesforelectionofdirectors,orisotherwiserequired,pursuanttoRegulation14AundertheSecuritiesandExchangeActof1934,asamended(the“ExchangeAct”),includingsuchperson’swrittenconsenttobenamedintheproxystatementasnomineeandtoserveasadirectorifelected.Inaddition,therequestmustinclude,amongotherthings: • thenominatingshareholder’sorshareholders’name(s)andaddress(es)astheyappearontheCompany’sbooks;
• theclassandnumberofsharesbeneficiallyownedbythenominatingshareholder(s);
• anyotherinformationrelatingtosuchshareholder(s)thatwouldberequiredtobedisclosedinaproxystatementorotherfilingsrequiredtobemadeinconnectionwithsolicitationsofproxiespursuanttoRegulation14AundertheExchangeAct;and
• totheextentknownbytheshareholder(s)givingnotice,thenameandaddressofanyothershareholder(s)supportingtheelectionofthedirectorcandidate.
2020 Director NomineesBrett WhiteAge:60Director Since:2015Committees:NoneClass II DirectorMr.WhitehasservedasExecutiveChairmanandChiefExecutiveOfficerofCushman&Wakefieldsince2015.PriortojoiningCushman&Wakefield,Mr.Whitehada28-yearcareerwithCBRE,servingasChiefExecutiveOfficerfrom2005to2012andPresidentfrom2001to2005.HewasalsoamemberofCBRE’sboardofdirectorsfrom1998to2013.Previously,heservedasatrusteeoftheUniversityofSanFranciscoandasamemberoftheboardofdirectorsforEdisonInternational,SouthernCaliforniaEdison,RealogyHoldingsCorporationandMossimo,Inc.Mr.WhiteholdsaB.A.inBiologyfromtheUniversityofCalifornia,SantaBarbara.
Specific Qualifications, Attributes and Skills:TheBoardbelievesthatMr.White’sextensiveexperience,globalleadershipandknowledgeofcommercialrealestatequalifieshimtoserveontheBoard.
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Richard McGinnAge:73Director Since:2019Committees:Audit,CompensationClass II DirectorMr.McGinnheldnumerousexecutivepositionsatAT&Tfrom1969to1996.HeservedasPresident,thenCEOandChairmanofLucentTechnologiesfrom1996to2000.HewasaGeneralPartneratRREVenturesfrom2001to2010.HealsoservedasChairmanthenCEOofVeriFoneSystems,Inc.from2012to2013.HewasafounderandinvestorinSkyCapitalfrom2014to2016.Mr.McGinnpreviouslyservedontheboardsofAmericanExpress,VeriFoneSystems,ViaSystems,Cyota,Broadsoft,andNexsan.HeholdsaB.A.fromGrinnellCollege.
Qualifications, Attributes and Skills: Mr.McGinnbringstotheBoardhissubstantialbusiness,investmentandfinancialexperience,hisexpertiseinanalyzingbusinessdevelopmentsandopportunitiesintelecommunications,mobile,onlineandnewtechnologies,aswellashiscorebusinessandleadershipskillsandpubliccompanydirectorexperience.
Jodie McLeanAge:51Director Since:2018Committees:AuditMs.McLeanhasservedastheChiefExecutiveOfficerofEDENSsince2015.PriortothatsheservedasPresidentandChiefInvestmentOfficerofEDENSfrom2002.Ms.McLeanalsoservesontheboardofdirectorsofExtendedStayAmerica,Inc.andWoffordCollegeamongothers.SheholdsaB.S.fromtheUniversityofSouthCarolinaandadegreefromSouthCarolinaHonorsCollege.
Specific Qualifications, Attributes and Skills:TheBoardbelievesthatMs.McLeanbringsmorethan25yearsofrealestate,investmentandmanagementexpertisetotheBoard.
Billie WilliamsonAge:67Director Since:2018Committees:AuditMs.WilliamsonservedinvariousrolesatErnst&YoungL.L.P.,mostrecentlyintheroleofSeniorAssurancePartner,from1974to1993and1998to2011.ShealsoworkedatMarriottInternational,Inc.from1996to1998asSeniorVicePresident,FinanceandCorporateController,andbeforethatatAMXCorporationfrom1993to1996asChiefFinancialOfficer.Ms.WilliamsonalsoservesorhasservedontheboardsofdirectorsofXLGroupLtd.,Pentairplc,PharosCapitalBDC,Inc.,CSRAInc.,JanusCapitalGroup,ITTExelisInc.,Annie’sInc.,EnergyFutureHoldingsCorporationandKratonCorporation.SheholdsaB.B.A.fromSouthernMethodistUniversity.
Specific Qualifications, Attributes and Skills:TheBoardbelievesthatMs.Williamsonbringssignificantexpertiseandleadershipinfinance,accountingandpubliccompanygovernancetotheBoard.
Required VoteAnomineemustreceivemorevotes“FOR”than“AGAINST”herorhisre-electioninordertobere-elected.Shareholdersmayvote“FOR”or“AGAINST”allfouroranyofthenomineesormayelectto“ABSTAIN”theirvoteforallfouroranyofthenominees.Votesto“ABSTAIN”withrespecttoanomineeandbrokernon-votesarenotconsideredvotescast,andsowillnotaffecttheoutcomeofthenominee’selection.
Recommendation
Our Board recommends that shareholders vote “FOR” all of the nominees.
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CORPORATE GOVERNANCE
Corporate Governance Compensation Accountability Shareholder Rights• 9directors,8ofwhomareindependent
• Shareownershiprequirementsfornon-employee
directorsandexecutiveofficers • Shareholderrightstocallspecialmeetings
• Independentleaddirector• Policyrestrictingtrading,andprohibitinghedging
andshort-selling,ofourshares • Majorityvotingrequirementfordirectorsin
uncontestedelections
• Regularexecutivesessionsofindependentdirectors• Compensationclawbackpolicyforexecutive
officers • AdvisorySay-on-PayVote—Annual
• AllBoardcommitteesconsistentirelyofindependentdirectors
• Nogross-upfortaxliabilities
• Alldirectorsattendedatleast75%ofBoardandapplicableBoardcommitteemeetings
• RobustCodeofBusinessConductandEthicsandothergovernancepolicies
Shareholder Recommendations of Director CandidatesIfyouareashareholderwhowouldliketorecommendacandidateforourNominatingandCorporateGovernanceCommitteetoconsiderforpossibleinclusioninour2021proxystatement,youmustsendnoticetoourCorporateSecretaryat225WestWackerDrive,Chicago,Illinois60606,byregistered,certifiedorexpressmail,andprovideabriefbiographyoftherecommendedcandidate,adocumentindicatingtherecommendedcandidate’swillingnesstoserveifelected,andevidenceofyourshareownership.TheNominatingandCorporateGovernanceCommitteeoritschairwillthenconsidertherecommendeddirectorcandidateinaccordancewiththecriteriafordirectorselectiondescribedunder“Proposal1—ElectionofDirectors—DirectorNominationCriteria:Qualifications,SkillsandExperience”onpage1.
Director IndependenceSinceourinitialpublicofferinginAugust2018,ourordinaryshareshavebeenlistedontheNewYorkStockExchange(“NYSE”).Subjecttocertainexceptions,theNYSErulesrequirethat(i)independentdirectorscompriseamajorityofalistedcompany’sboardofdirectorsand(ii)eachmemberofalistedcompany’saudit,compensationandnominatingandcorporategovernancecommitteesbeindependent.MembersofthecompensationcommitteeandtheauditcommitteeofalistedcompanymustalsosatisfycertainenhancedindependencerequirementsunderNYSErulesandtheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),includingRule10A-3.
OurBoardhasundertakenareviewofitscomposition,thecompositionofitscommitteesandtheindependenceofeachdirector.Baseduponinformationrequestedfromandprovidedbyeachdirectorconcerninghisorherbackground,employmentandaffiliations,includingfamilyrelationships,ourBoardhasdeterminedthateightoutofnineofourcurrentdirectorsareindependentunderNYSErules.TheindependentdirectorsareMessrs.Coslet,Dattels,McGinn,PanandRuparelia,andMses.Chen,McLeanandWilliamson.OurBoardhasalsodeterminedthatMr.McGinn,Ms.McLeanandMs.Williamson,whocompriseourAuditCommittee,Mr.Dattels,Mr.McGinnandMr.Pan,whocompriseourCompensationCommittee,andMr.Dattels,Mr.PanandMr.Ruparelia,whocompriseourNominatingandCorporateGovernanceCommittee,satisfytheindependencestandardsforthosecommitteesundertheapplicablerulesoftheNYSEandtheExchangeAct.
Priortothecompletionoftheunderwrittenpublicofferingof10,000,000ofourordinarysharesonNovember14,2019,wewerea“controlledcompany”withinthemeaningoftheNYSErules.UndertheNYSErules,acompanyofwhichmorethan50%ofthevotingpowerisheldbyanindividualgrouporanothercompanyisa“controlledcompany”andmayelectnottocomplywithcertainNYSEcorporate
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governancestandards,including:therequirementthatamajorityoftheboardofdirectorsconsistofindependentdirectors;therequirementthatwehaveanominatingandcorporategovernancecommitteethatiscomposedentirelyofindependentdirectorswithawrittencharteraddressingthecommittee’spurposeandresponsibilities;therequirementthatwehaveacompensationcommitteethatiscomposedentirelyofindependentdirectorswithawrittencharteraddressingthecommittee’spurposeandresponsibilities;andtherequirementforanannualperformanceevaluationofthenominatingandcorporategovernanceandcompensationcommittees.Wedidnotutilizeanyoftheseexemptions.Asnotedabove,wearenolongera“controlledcompany”andthusarenolongereligibletoutilizetheseexemptions.
Whilethe“controlledcompany”exemptiondescribedabovedoesnotmodifytheindependencerequirementsforanauditcommitteeofalistedcompany,boththeNYSErulesandRule10A-3undertheExchangeActpermitalistedcompanytohaveamajorityofindependentdirectorsonitsauditcommitteeuntiloneyearfromthedateofeffectivenessofaregistrationstatementforaninitialpublicoffering.Aftersuchtransitionperiod,theauditcommitteeisrequiredtobecomprisedentirelyofindependentdirectors.In2019,weutilizedthistransitionperioduntilMr.McGinnreplacedMr.RupareliaonourAuditCommitteeonJune6,2019.
Independent Director MeetingsOurindependentdirectorsregularlymeetinexecutivesessionwithoutmanagementormanagementdirectorspresent.OurLeadDirectorpresidesatsuchmeetings.
Board CompositionOurbusinessandaffairsaremanagedunderthedirectionofourBoard.Mr.McGinnjoinedourBoardonJune6,2019,and,asofMarch17,2020,Ms.MacKayresignedfromourBoardtobecomeourChiefOperatingOfficer.Thus,ourBoardiscomprisedofninedirectors.OurArticlesofAssociationprovidethatourBoardwillhaveaminimumoffiveandmaximumofelevendirectors.OurBoardisdividedintothreeclasses,witheachdirectorservingathree-yeartermandoneclassbeingelectedateachyear’sannualgeneralmeetingofshareholders.Mr.White,Mr.McGinn,Ms.McLeanandMs.WilliamsonserveasClassIIdirectorswithatermexpiringattheAnnualMeeting.Messrs.Dattels,PanandRupareliaserveasClassIIIdirectorswithatermexpiringin2021.Mr.CosletandMs.ChenserveasClassIdirectorswithatermexpiringin2022.Upontheexpirationofthetermofofficeforeachclassofdirectors,eachdirectorinsuchclassshallbeelectedforatermofthreeyearsandserveuntilasuccessorisdulyelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.Anyadditionaldirectorshipsresultingfromanincreaseinthenumberofdirectorsoravacancymaybefilledbythedirectorstheninoffice.
Mr.WhiteservesastheExecutiveChairmanofourBoardandourCEO.WhentheExecutiveChairmanisalsotheCEO,ourCorporateGovernanceGuidelinesprovidethatourBoardmayelectoneofourindependentdirectorstoserveasLeadDirector.Mr.DattelscurrentlyservesasourLeadDirectorandisresponsibleforservingasliaisonbetweentheChairmanandtheindependentdirectors,approvingmeetingagendasandschedulesfortheBoardandpresidingatexecutivesessionsoftheindependentdirectorsandanyotherBoardmeetingsatwhichtheChairmanisnotpresent,amongotherresponsibilities.
Inconnectionwiththeclosingofourinitialpublicoffering,weenteredintoaShareholders’Agreement(the“Shareholders’Agreement”)withTPGGlobal,LLC(“TPG”),PAGAsiaCapital(“PAG”),andOntarioTeachers’PensionPlan(“OTPP”,andcollectivelywithTPGandPAG,the“PrincipalShareholders”).TheShareholders’AgreementprovidesthatthePrincipalShareholdershavecertainnominationrightstodesignatecandidatesfornominationtoourBoard.SubjecttoanyrestrictionsunderapplicablelawortheNYSErules,eachofTPGandPAGalsohastheabilitytoappointonedirectortoeachboardcommittee,andOTPPhastheabilitytoappointadirectortotheNominatingandCorporateGovernanceCommittee.
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AssetforthintheShareholders’Agreement,forsolongaseachofTPGandPAGownatleast7.5%ofourtotalordinarysharesoutstandingasoftheclosingofourinitialpublicoffering,TPGandPAGwilleachbeentitledtodesignatefornominationtwooftheseatsonourBoard.Thereafter,eachofTPGandPAGwillbeentitledtodesignatefornominationonedirectorsolongastheyeachownatleast2.5%ofourtotalordinarysharesoutstandingasoftheclosingofourinitialpublicoffering.Further,forsolongasOTPPownsatleast2.5%ofourtotalordinarysharesoutstandingasoftheclosingofourinitialpublicoffering,itwillbeentitledtodesignatefornominationonedirectoronourBoard.
Asnotedabove,priortothecompletionoftheunderwrittenpublicofferingof10,000,000ofourordinarysharesonNovember14,2019,wewerea“controlledcompany”withinthemeaningoftheNYSErulesbecausemorethan50%ofourvotingpowerwasheldbythePrincipalShareholders.Whilewewerea“controlledcompany”,thePrincipalShareholdersjointlyhadtherighttodesignatefornominationoneadditionaldirector(the“JointDesignee”),whomustqualifyasindependentundertherulesandmustmeettheindependencerequirementsofRule10A-3oftheExchangeAct.ThePrincipalShareholderspreviouslynominatedMs.McLeantoourBoardastheJointDesignee.Ms.McLeanisaClassIIdirectorandhasbeennominatedbyourBoard(notasaJointDesigneeofthePrincipalShareholders)forre-electionasaClassIIdirectorattheAnnualMeeting.
Wearerequired,totheextentpermittedbyapplicablelaw,totakeallnecessaryaction(asdefinedintheShareholders’Agreement)tocauseourBoardandeachBoardcommitteetoincludecertainpersonsdesignatedbythePrincipalShareholdersintheslateofdirectornomineesrecommendedbytheBoardforelectionbytheshareholdersandsolicitproxiesandconsentsinfavorofsuchdirectornominees.SubjecttothetermsoftheShareholders’Agreement,eachPrincipalShareholderagreestovoteitssharesinfavoroftheelectionofthedirectornomineesdesignatedbyeachofthePrincipalShareholders.
InaccordancewiththeShareholders’Agreement,TPGhasnominatedMr.CosletandMr.Dattels,PAGhasnominatedMr.PanandMs.ChenandOTPPhasnominatedMr.RupareliatoourBoard.
Compensation Committee Interlocks and Insider ParticipationDuring2019,noneofthemembersoftheCompensationCommittee(a)wasanofficeroremployeeoftheCompanyoranyofitssubsidiaries,(b)wasaformerofficeroftheCompanyoranyofitssubsidiariesor(c)hadanyrelatedpartyrelationshipsrequiringdisclosureunderItem404ofSECRegulationS-K.During2019,noexecutiveofficeroftheCompanyservedasamemberoftheboardofdirectorsoronthecompensationcommitteeofanyothercompany,oneofwhoseexecutiveofficersordirectorsserveorservedasamemberofourBoardorourCompensationCommittee.
Board of Directors’ Role in Risk OversightOurBoard,asawholeandthroughitscommittees,hasresponsibilityfortheoversightofriskmanagement.Initsriskoversightrole,ourBoardhastheresponsibilitytosatisfyitselfthattheriskmanagementprocessesdesignedandimplementedbymanagementareadequateandfunctioningasdesigned.OurBoardoverseesanenterprise-wideapproachtoriskmanagement,designedtosupporttheachievementoforganizationalobjectives,includingstrategicobjectives,toimprovelong-termorganizationalperformanceandenhanceshareholdervalue.
Code of Business Conduct and EthicsOurBoardhasadoptedaCodeofBusinessConductandEthicsapplicabletoourChiefExecutiveOfficerandseniorfinancialofficersandallpersonsperformingsimilarfunctions.Acopyofthatcodeisavailableonourcorporatewebsiteatwww.cushmanwakefield.com/investorrelations.Weexpectthatanyamendmentstosuchcode,oranymaterialwaiversofitsrequirements,willbedisclosedonourwebsite.
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Board Meetings and CommitteesOurBoardheldfourmeetingsin2019.In2019,eachdirectorattendedatleast75%oftheaggregateofallmeetingsoftheBoardandofanycommitteesheorsheservedduringtheperiodsuchdirectorwasontheBoardorcommittee.
Wealsoencourageourdirectorstomakeeveryefforttoattendourannualgeneralmeetingofshareholdersunlesstheyhaveanunavoidableconflict.Eightoutofourninethen-currentdirectorsattendedour2019annualgeneralmeetingofshareholders.
OurBoardcurrentlyhasthreestandingcommittees:AuditCommittee,CompensationCommitteeandNominatingandCorporateGovernanceCommittee,eachofwhichconsistssolelyofindependentdirectors.Eachstandingcommitteehasadoptedawrittencharter,meetsperiodicallythroughouttheyear,reportsitsactionsandrecommendationstotheBoard,receivesreportsfromseniormanagementandhastheauthoritytoretainoutsideadvisorsinitsdiscretion.Theprimaryresponsibilitiesofeachcommitteearesummarizedbelowandsetforthinmoredetailineachcommittee’swrittencharter,whichcanbefoundinthecorporategovernancesectiononourwebsiteathttp://ir.cushmanwakefield.com.
ThefollowingtabledescribesthecurrentmembersofeachstandingcommitteeandthenumberofmeetingsheldbyourBoardandeachstandingcommitteein2019:
Director* Board Audit
Committee CompensationCommittee
Nominatingand
CorporateGovernanceCommittee
BrettWhite Chair JonathanCoslet ✓ TimothyDattels LeadDirector Chair ✓QiChen ✓ RichardMcGinn** ✓ ✓ ✓ JodieMcLean ✓ ✓ LincolnPan ✓ ✓ ChairRajeevRuparelia*** ✓ ✓BillieWilliamson ✓ Chair Number of Meetings 4 9 5 4
* MichelleMacKaywasamemberoftheBoardduringallof2019andthroughherresignationonMarch17,2020tobecomeourChiefOperatingOfficer.
Ms.MacKaywasalsoamemberoftheCompensationCommitteefromMarch7,2019throughFebruary27,2020.** Mr.McGinnwasappointedtotheBoardandtheAuditCommitteeonJune6,2019.HewasalsoappointedtoreplaceMs.MacKayontheCompensation
CommitteeonFebruary27,2020.*** Mr.RupareliaservedontheAuditCommitteeduring2019untilMr.McGinnwasappointedtoreplacehimonJune6,2019.Mr.Rupareliaalsoservedonthe
CompensationCommitteeduring2019untilMs.MacKaywasappointedtoreplacehimonMarch7,2019.
Audit Committee
ThemembersoftheAuditCommitteeareMs.Williamson(chair),Mr.McGinnandMs.McLean,allofwhomareindependent.OurBoardhasdeterminedthateachmemberisfinanciallyliterate,andthatMs.Williamsonisanauditcommitteefinancialexpert.TheprimaryresponsibilitiesoftheAuditCommitteeare:
• appointingourindependentregisteredpublicaccountingfirmannually;evaluatingtheindependentauditor’sindependenceand
performanceandreplacesitasnecessary;pre-approvingallauditandnon-auditservices;andsettingguidelinesforthehiringofformeremployeesoftheindependentauditor;
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• reviewingtheauditplansandfindingsofourindependentauditorandourinternalauditfunction;
• reviewingwithourmanagementandindependentauditorourfinancialstatements,includinganysignificantfinancialreportingissuesandchangesinaccountingpolicies;
• reviewingwithourmanagementandindependentauditortheadequacyofourinternalcontrolsoverfinancialreporting;
• overseeingourpoliciesandprocedureswithrespecttoriskassessmentandriskmanagement;and
• overseeingtheimplementationandeffectivenessofourcomplianceandethicsprogram,includingour“whistleblowing”procedures.
Nominating and Corporate Governance Committee
ThemembersoftheNominatingandCorporateGovernanceCommitteeareMr.Pan(chair),Mr.DattelsandMr.Ruparelia,allofwhomareindependent.TheprimaryresponsibilitiesoftheNominatingandCorporateGovernanceCommitteeare: • developingandrecommendingcriteriatotheBoardforselectingnewdirectors;
• conductinginquiriesintothebackgroundandqualificationsofcandidatesfortheBoardandrecommendingproposednomineestotheBoard;
• recommendingcorporategovernanceguidelinestotheBoard;and
• overseeingtheevaluationoftheperformanceoftheBoard.
Compensation Committee
ThemembersoftheCompensationCommitteeareMr.Dattels(chair),Mr.PanandMr.McGinn,allofwhomareindependent.TheprimaryresponsibilitiesoftheCompensationCommitteeare:
• reviewingandrecommendingtotheBoardforapprovalthecorporategoalsandobjectivesrelevanttothecompensationofour
CEO;evaluatingtheperformanceofourCEOinlightofthosegoalsandobjectives;andrecommendingtotheBoardforapprovalthecompensationofourCEObasedonthatevaluation;
• reviewingandapprovingthecorporategoalsandobjectivesrelevanttothecompensationofourexecutiveofficers(otherthanthe
CEO);evaluatingtheperformanceofourexecutiveofficers(otherthantheCEO)inlightofthosegoalsandobjectives;anddeterminingthecompensationofourexecutiveofficers(otherthantheCEO)basedonthatevaluation;
• reviewingandapprovingpoliciesandguidelinesrelatedtothecompensationofourexecutiveofficersanddirectors;and
• establishing,reviewingandadministeringourcompensationandemployeebenefitplans.
Stock Ownership PolicyWerecognizetheimportanceofaligningtheinterestsofourmanagementanddirectorswiththoseofourshareholders.Asaresult,theBoardhasestablishedastockownershippolicywherebyourNamedExecutiveOfficersanddirectorswhoarenotemployeesoftheCompanyoranyPrincipalShareholder(a“Non-EmployeeDirector”)areexpectedtoaccumulate“OwnedEquity”and“QualifyingEquity”inCompanystockhavingafairmarketvalueequaltothemultiplesofannualbasesalarysetforthinthetablebelow.
Owned Equity (vested but unsettled RSUs, ordinary shares beneficially owned and shares held in a 401(k) plan or notionally
through a deferred compensation plan)
Qualifying Equity (all “Owned Equity” plus
unvested time-based RSUs)ChiefExecutiveOfficer 2xSalary 6xSalaryOtherNamedExecutiveOfficers 1xSalary 3xSalaryNon-EmployeeDirectors N/A 5xAnnualCashRetainer
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AnyNamedExecutiveOfficerorNon-EmployeeDirectorwhodoesnotmeetorexceedtheseguidelinesissubjecttoretentionrequirementsthatrestrictthesaleofsomeorallofsuchperson’sequity.OurCEOandNon-EmployeeDirectorsaresubjecttoa100%retentionrequirementandourotherNamedExecutiveOfficersaresubjectto75%retentionrequirements.Theretentionrequirementsdonotapplytosharesacquiredforfairvaluepriortoourinitialpublicoffering,orshareswithheldtosatisfytaxorexercisepricepaymentobligations.AsofDecember31,2019,allofourNamedExecutiveOfficerswereincompliancewiththeapplicableownershiprequirements.OurNon-EmployeeDirectorsarerelativelynewtoourBoardandhavenotyetreachedtheirapplicableownershiprequirements.Thus,eachNon-EmployeeDirectorissubjecttothe100%retentionrequirement.
Derivatives Trading, Hedging and Pledging PoliciesWehaveadoptedaninsidertradingpolicythatprovidesthatnoemployee,officerormemberofourBoardmayacquire,sellortradeinanyinterestorpositionrelatingtothefuturepriceofoursecurities,suchasaputoption,acalloptionorashortsale(includingashortsale“againstthebox”)orengageinhedgingtransactions(including“cashlesscollars”).WehavealsoadoptedageneralpolicythatprohibitsourexecutiveofficersandmembersofourBoardfrompledginganyoftheirordinarysharesascollateralforaloanorotherfinancialarrangement.
Tax ConsiderationsSection162(m)oftheCodegenerallydisallowspubliccompaniesataxdeductionforfederalincometaxpurposesofremunerationinexcessof$1millionpaidtotheNamedExecutiveOfficers.OnceanindividualhasbeenaNamedExecutiveOfficer,thedeductionlimitationappliesindefinitely.Asanewlypubliccompany,wemayrelyuponcertaintransitionreliefunderSection162(m)availableforcertaintypesofcompensation.Nonetheless,theCompensationCommitteebelievesthatthepotentialdeductibilityofthecompensationpayableundertheCompany’sexecutivecompensationprogramshouldbeonlyoneofmanyrelevantconsiderationsinsettingcompensation.Accordingly,theCompensationCommitteehasdeemedormaydeeminthefuturethatitisappropriatetoprovideoneormoreexecutiveofficerswiththeopportunitytoearncompensationthatmaybeinexcessoftheamountdeductiblebyreasonofSection162(m)orotherprovisionsoftheCode.
Wedonotprovideanyexecutiveofficerwitha“gross-up”orotherreimbursementpaymentforanytaxliabilityasaresultoftheapplicationofSections409Aor4999oftheCodeandwehavenotagreedandarenototherwiseobligatedtoprovideanyNamedExecutiveOfficerwithsucha“gross-up”orotherreimbursement.
Communications with our BoardShareholdersandotherinterestedpartiesmaywritetoanyoftheBoard’smembersatCushman&Wakefieldplc,c/oBrettSoloway,ExecutiveVicePresident,GeneralCounselandCorporateSecretary,225WestWackerDrive,Chicago,Illinois60606.TheBoardconsidersshareholderquestionsandcommentstobeimportantandendeavorstorespondpromptlyandappropriately,eventhoughtheBoardmaynotbeabletorespondtoallshareholderinquiriesdirectly.TheGeneralCounselwillreviewanyshareholdercommunicationsandwillforwardtotheChairofourBoard,ourBoardoranyofitsmembersasummaryand/orcopiesofanysuchcorrespondencethatdealswiththefunctionsofourBoardorcommitteesthereoforthattheGeneralCounselotherwisedeterminesrequirestheirattention.CertaincircumstancesmayrequirethatourBoarddepartfromtheproceduresdescribedabove,suchasthereceiptofthreateninglettersore-mailsorvoluminousinquirieswithrespecttothesamesubjectmatter.
Submission of Shareholder Proposals and Board NomineesShareholderswhowishtopresentaproposalinaccordancewithSECRule14a-8forinclusioninourproxymaterialstobedistributedinconnectionwithour2021annualgeneralmeetingofshareholdersmustsubmittheirproposalsinaccordancewiththatrulesothattheyarereceivedbytheSecretaryat
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theaddresssetforthabovenolaterthanthecloseofbusinessonJanuary8,2020.Ifthedateofour2021annualmeetingismorethan30daysbeforeorafterJune10,2021,thenthedeadlinetotimelyreceivesuchmaterialshallbeareasonabletimebeforewebegintoprintandsendourproxymaterials.
Failuretodeliveraproposalinaccordancewiththisproceduremayresultinitnotbeingdeemedtimelyreceived.AstherulesoftheSECmakeclear,simplysubmittingatimelyproposaldoesnotguaranteethatitwillbeincludedinourproxymaterials.
OurArticlesofAssociationrequirethatshareholderswhointendtoproposeanyresolution,includingnominatingcandidatesforelectionasdirectors,atour2021annualmeetingmustprovidenoticeofsuchproposalsinwritingtoourSecretarynoearlierthanthecloseofbusinessonFebruary10,2021andnolaterthanthecloseofbusinessonMarch12,2021,unlessour2021annualgeneralmeetingofshareholdersistobeheldmorethan30daysbeforeormorethan60daysafterJune10,2021,inwhichcasetheshareholder’snoticemustbedeliverednoearlierthanthecloseofbusinessonthe120thdaypriortothe2021annualgeneralmeetingandnolaterthanthecloseofbusinessonthelaterofthe90thdaypriortothe2021annualgeneralmeetingorthe10thdayafterpublicannouncementofthedateofthe2021annualgeneralmeetingisfirstmade.Thenoticemustsetforththeinformationrequiredbyourarticlesofassociation.
Additionally,undersection338oftheUKCompaniesAct,shareholdersmeetingthethresholdrequirementssetforthinthatsectionmayrequireustoincludearesolutioninournoticeofannualgeneralmeeting.Providedthattheappropriatethresholdsaremet,noticeoftheresolutionormattermustbereceivedbyourSecretaryatleastsixweekspriortothedateoftheannualgeneralmeetingor,iflater,atthetimenoticeoftheannualgeneralmeetingisdeliveredtoshareholders.
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PROPOSAL 2 RATIFICATION OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRMTheAuditCommitteehasappointedKPMGLLPasourindependentregisteredpublicaccountingfirmfortheyearendingDecember31,2020.Althoughtheratificationofthisappointmentisnotrequiredtobesubmittedtoavoteoftheshareholders,theBoardbelievesitappropriateasamatterofpolicytorequestthattheshareholdersratifytheappointmentoftheregisteredpublicaccountingfirmfortheyearendingDecember31,2020.
WeanticipatethatarepresentativeofKPMGLLPwillbepresentattheAnnualMeeting.Therepresentativewillbegiventheopportunitytomakeastatementifheorshedesirestodosoandisexpectedtobeavailabletorespondtoanyappropriatequestionsthatmaybesubmittedbyshareholdersattheannualmeeting.
Required Vote
Thisproposalwillbeapprovedifthenumberofvotescast“FOR”theproposalexceedthenumberofvotescast“AGAINST”theproposal.Abstentionsarenotconsideredvotescastandwillnothaveanyeffectonthisproposal.Ifyouownsharesthroughabank,brokerorotherholderofrecord,yourbrokermayvoteyoursharesonthisproposalintheabsenceofinstructionsfromyoubecausethisisconsideredaroutinematter.
Recommendation
Our Board recommends that shareholders vote “FOR” the proposal to ratify KPMG LLP as ourindependent registered public accounting firm for the year ended December 31, 2020.
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AUDIT AND OTHER FEESThefollowingtableshowsthefeesforauditandotherservicesprovidedbyKPMGLLPforthefiscalyearsendedDecember31,2019and2018:Fees Fiscal 2019 Fiscal 2018 AuditFees $ 10,873,000 $ 10,867,000Audit-RelatedFees 708,000 547,000TaxFees 1,115,000 759,941AllOtherFees — —
TotalFees $ 12,936,000 $ 12,173,941
Adescriptionofthetypesofservicesprovidedineachcategoryisasfollows:
Audit Fees—Includesfeesassociatedwiththeauditofourannualfinancialstatements,reviewofourannualreportonForm10-KandquarterlyreportsonForm10-Q,statutoryaudits,andconsentsandassistancewithandreviewofregistrationstatementsfiledwiththeSEC.Inaddition,auditfeesincludethosefeesassociatedwiththeauditoftheeffectivenessofourinternalcontrolsoverfinancialreportingpursuanttoSection404oftheSarbanes-OxleyAct.
Audit-Related Fees—Includesfeesassociatedwithinternalcontrolmattersandservicesnotrequiredbystatuteorregulation.
Tax Fees—Includesfeesassociatedwithtaxcomplianceatdomesticandinternationallocationsanddomesticandinternationaltaxadvice.
Pre-Approval Policies and ProceduresTheAuditCommittee’spolicyistoreviewandapprovetheplanandscopeoftheauditandnon-auditservicestobeprovidedbytheauditorsandthefeestobepaidforsuchservices.ConsistentwiththeAuditCommitteecharter,allauditandnon-auditservicesprovidedbytheauditorsfortherelevantfinancialyearsareapprovedbytheAuditCommittee,whichdetermineswhethertheservicesprovidedbytheauditorsarecompatiblewithmaintainingtheauditorindependence.
Audit Committee ReportTheAuditCommitteeoperatespursuanttoacharteradoptedbytheBoard.TheAuditCommitteereviewsandassessestheadequacyofthischarterannually.Additionally,abriefdescriptionoftheprimaryresponsibilitiesoftheAuditCommitteeisincludedinthisproxystatementunder“TheBoardofDirectorsandCertainGovernanceMatters—CommitteeMembershipandResponsibilities—AuditCommittee.”
Intheperformanceofitsoversightfunction,theAuditCommitteereviewedanddiscussedtheauditedfinancialstatementsoftheCompanyfortheyearendedDecember31,2019withmanagementandwiththeindependentregisteredpublicaccountingfirm.
Discussionsincluded,amongotherthings: • theacceptabilityandqualityoftheaccountingprinciples;
• thereasonablenessofsignificantaccountingjudgmentsandcriticalaccountingpoliciesandestimates;
• theclarityofdisclosuresinthefinancialstatements;and
• theadequacyandeffectivenessofCushman&Wakefield’sfinancialreportingproceduresanddisclosurecontrolsandprocedures.
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ManagementrepresentedtotheAuditCommitteethattheCompany’sconsolidatedfinancialstatementsasofandforthefiscalyearendedDecember31,2019werepreparedinaccordancewithgenerallyacceptedaccountingprinciples.TheAuditCommitteealsodiscussedwithmanagementandKPMGLLPtheprocessusedtosupportcertificationsbytheCompany’sChiefExecutiveOfficerandChiefFinancialOfficerthatarerequiredbytheSECandtheSarbanes-OxleyActof2002toaccompanytheCompany’speriodicfilingswiththeSECandtheprocessusedtosupportmanagement’sannualreportontheCompany’sinternalcontrolsoverfinancialreporting.
TheAuditCommitteealsodiscussedwiththeindependentregisteredpublicaccountingfirmthemattersrequiredtobediscussedbyapplicablePublicCompanyAccountingOversightBoard(“PCAOB”)standards(includingsignificantaccountingpolicies,alternativeaccountingtreatments,criticalauditmattersandestimates,judgmentsanduncertainties).Inaddition,theAuditCommitteereceivedthewrittendisclosuresandtheletterfromtheindependentregisteredpublicaccountingfirmrequiredbyapplicablerequirementsofthePCAOBregardingtheindependentregisteredpublicaccountingfirm’scommunicationswiththeAuditCommitteeconcerningindependenceanddiscussedwiththeindependentregisteredpublicaccountingfirmtheirindependence.
Baseduponthereviewanddiscussionsdescribedintheprecedingparagraph,theAuditCommitteerecommendedtotheBoardthattheauditedfinancialstatementsoftheCompanybeincludedintheAnnualReportonForm10-KfortheyearendedDecember31,2019filedwiththeSEC.
SubmittedbytheAuditCommitteeoftheCompany’sBoardofDirectors:
BillieWilliamson(Chair)RichardMcGinnJodieMcLean
NotwithstandinganystatementinanyofourfilingswiththeSECthatmightbedeemedtoincorporatepartorallofanyfilingswiththeSECbyreference,includingthisProxyStatement,theforegoingAuditCommitteeReportisnotincorporatedintoanysuchfiling.
Shareholder Requests Under Section 527 of the UK Companies ActUndersection527oftheUKCompaniesAct,shareholdersmeetingthethresholdrequirementssetoutinthatsectionhavetherighttorequiretheCompanytopublishonawebsiteastatementsettingoutanymatterrelatingto:(i)theauditoftheCompany’saccounts(includingtheauditor’sreportandtheconductoftheaudit)thataretobelaidbeforethemeeting;or(ii)anycircumstanceconnectedwithanauditoroftheCompanyceasingtoholdofficesincethepreviousmeetingatwhichannualaccountsandreportswerelaidinaccordancewithsection437oftheUKCompaniesAct.TheCompanymaynotrequiretheshareholdersrequestinganysuchwebsitepublicationtopayitsexpensesincomplyingwithsection527orsection528oftheUKCompaniesAct.WheretheCompanyisrequiredtoplaceastatementonawebsiteundersection527oftheUKCompaniesAct,itmustforwardthestatementtotheCompany’sauditornotlaterthanthetimewhenitmakesthestatementavailableonthewebsite.ThebusinesswhichmaybedealtwithatthemeetingincludesanystatementthattheCompanyhasbeenrequiredundersection527oftheUKCompaniesActtopublishonawebsite.
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PROPOSAL 3 APPOINTMENT OF UK STATUTORY AUDITORUndertheUKCompaniesAct,theCompanyisrequiredtoappointtheUKstatutoryauditorateachmeetingatwhichtheannualreportandaccountsarepresentedtoshareholders,toholdofficeuntiltheconclusionofthenextsuchmeeting.TheAuditCommitteehasrecommendedtotheBoardthere-appointmentofKPMGLLPastheCompany’sUKstatutoryauditorandhasconfirmedtotheBoardthatitsrecommendationisfreefromthirdpartyinfluenceandthatnorestrictivecontractualprovisionshavebeenimposedontheCompanylimitingthechoiceofauditor.
Required Vote
Thisproposalwillbeapprovedifthenumberofvotescast“FOR”theproposalexceedthenumberofvotescast“AGAINST”theproposal.Abstentionsandbrokernon-votesarenotconsideredvotescastandwillnothaveanyeffectonthisproposal.Ifyouownsharesthroughabank,brokerorotherholderofrecord,youmustinstructyourbank,brokerorotherholderofrecordhowtovoteinorderforthemtovoteyoursharessothatyourvotecanbecountedonthisproposal.
Recommendation
Our Board recommends that shareholders vote “FOR” the proposal to appoint KPMG LLP as our UKStatutory Auditor.
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PROPOSAL 4 AUDIT COMMITTEE AUTHORIZATION TO DETERMINECOMPENSATION OF UK STATUTORY AUDITORUndertheUKCompaniesAct,theremunerationofourUKstatutoryauditormustbefixedinageneralmeetingorinsuchmannerasmaybedeterminedinageneralmeeting.WeareaskingourshareholderstoauthorizetheAuditCommitteeoftheCompanytodeterminetheremunerationofKPMGLLPinitscapacityastheCompany’sUKstatutoryauditorundertheUKCompaniesAct.
Required Vote
Thisproposalwillbeapprovedifthenumberofvotescast“FOR”theproposalexceedthenumberofvotescast“AGAINST”theproposal.Abstentionsandbrokernon-votesarenotconsideredvotescastandwillnothaveanyeffectonthisproposal.Ifyouownsharesthroughabank,brokerorotherholderofrecord,youmustinstructyourbank,brokerorotherholderofrecordhowtovoteinorderforthemtovoteyoursharessothatyourvotecanbecountedonthisproposal.
Recommendation
Our Board recommends that shareholders vote “FOR” the proposal to authorize the Audit Committee todetermine the compensation of our UK Statutory Auditor.
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PROPOSAL 5 ADVISORY VOTE ON COMPENSATION OF NAMED EXECUTIVEOFFICERSInaccordancewithSECrules,weareaskingyoutoapprove,onanadvisorybasis,aresolutiononthecompensationoftheNamedExecutiveOfficersasreportedinthisProxyStatement.Thisproposal,commonlyknownasa“say-on-pay”proposal,givesyoutheopportunitytoendorseour2019executivecompensationprogramandpoliciesforourNamedExecutiveOfficers.
Indecidinghowtovoteonthisproposal,ourBoardencouragesyoutoreviewthe“CompensationDiscussionandAnalysis”inthisProxyStatementbeginningonpage17foradetaileddescriptionofourexecutivecompensationphilosophyandprograms.
Thisvoteisnotintendedtoaddressanyspecificitemofcompensation,butrathertheoverallcompensationthatwaspaidin2019toourNamedExecutiveOfficersresultingfromourcompensationobjectives,policiesandpracticesasdescribedinthisProxyStatement.Becauseyourvoteisadvisory,itwillnotbebindingupontheBoard.However,theBoardandtheCompensationCommitteevaluetheopinionsexpressedbyourshareholdersandwillreviewthevotingresultsinconnectionwiththeirongoingevaluationofourexecutivecompensationprogram.
Ourexecutivecompensationprogramisdesignedtoprovideanattractive,flexibleandeffectivecompensationpackagetoourexecutiveofficersthatistiedtoourcorporateperformanceandalignedwiththeinterestsofourshareholders.Ourexecutivecompensationprogramisdesignedtohelpusrecruit,motivateandretainthecaliberofexecutiveofficersnecessarytodeliverconsistenthighperformancetoourclients,shareholdersandotherstakeholders.Ourexecutivecompensationprogramisbasedonthefollowingprinciples,whicharefurtherdetailedundertheCompensationDiscussionandAnalysissectionofthisProxyStatement: • Retainandhirethebestleaders.
• Payforperformance.
• Rewardlong-termgrowthandprofitability.
• Tiecompensationtobusinessperformance.
• Alignexecutivecompensationwithshareholderinterests.
• Limitedpersonalbenefits.
ThetextoftheresolutioninrespectofProposal5isasfollows:
RESOLVED,thatthecompensationpaidtoourNamedExecutiveOfficersfor2019setforthintheCompensationDiscussionandAnalysis,theSummaryCompensationTableandtherelatedcompensationtablesandnarrativeinthisProxyStatement,asdisclosedpursuanttoItem402ofRegulationS-K,isherebyapprovedonanadvisorybasis.
Required VoteThisproposalwillbeapprovedifthenumberofvotescast“FOR”theproposalexceedthenumberofvotescast“AGAINST”theproposal.Abstentionsandbrokernon-votesarenotconsideredvotescastandwillnothaveanyeffectonthisproposal.Ifyouownsharesthroughabank,brokerorotherholderofrecord,youmustinstructyourbank,brokerorotherholderofrecordhowtovoteinorderforthemtovoteyoursharessothatyourvotecanbecountedonthisproposal.
Recommendation
Our Board recommends that shareholders vote “FOR” the advisory approval of the compensation of ourNamed Executive Officers for the year ended December 31, 2019.
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COMPENSATION DISCUSSION AND ANALYSISThisCompensationDiscussionandAnalysisaddressestheprinciplesunderlyingourexecutivecompensationprogramandthepoliciesandpracticesforthefiscalyearendedDecember31,2019for(i)ourprincipalexecutiveofficer,(ii)ourprincipalfinancialofficerand(iii)thethreeothermosthighlycompensatedexecutiveofficersoftheCompanyasofDecember31,2019: • BrettWhite,ourExecutiveChairmanandChiefExecutiveOfficer;
• DuncanPalmer,ourExecutiveVicePresidentandChiefFinancialOfficer;
• JohnForrester,ourExecutiveVicePresidentandGlobalPresident;
• NathanielRobinson,ourChiefInvestmentOfficerandExecutiveVicePresidentofStrategicPlanning;and
• BrettSoloway,ourExecutiveVicePresident,GeneralCounselandCorporateSecretary.
Werefertotheseexecutiveofficersasthe“NamedExecutiveOfficers.”
Atour2019annualgeneralmeetingofshareholders,shareholdersapprovedour2018compensationofournamedexecutiveofficerswith96.6%ofthevotescastinfavorofourpractices.Giventhehighlevelofsupport,theCompensationCommitteedidnotmakeanysignificantchangestoitsapproachtoexecutivecompensationspecificallyasaresultofthis“say-on-pay”vote.TheCompensationCommitteeconsiderstheoutcomeofourannualsay-on-payvoteswhenmakingfuturecompensationdecisionsforournamedexecutiveofficers.
Compensation Philosophy and ObjectivesOurcompensationphilosophyistoprovideanattractive,flexibleandeffectivecompensationpackagetoourexecutiveofficersthatistiedtoourcorporateperformanceandalignedwiththeinterestsofourshareholders.Ourexecutivecompensationprogramisdesignedtohelpusrecruit,motivateandretainthecaliberofexecutiveofficersnecessarytodeliverconsistenthighperformancetoourclients,shareholdersandotherstakeholders.
Ourcompensationpoliciesandpracticesalsoallowustocommunicateourgoalsandstandardsofconductandperformanceandtomotivateandrewardemployeesfortheirachievements.Ingeneral,thesameprinciplesgoverningthecompensationofourexecutiveofficersalsoapplytothecompensationofallouremployees,whichinclude:
Principle PracticeRetain and hire the best leaders. Competitivecompensationtofacilitateattractingandretaininghigh-qualitytalent.
Pay for performance.
Asignificantportionofpaydependsonannualandlong-termbusinessandindividualperformance;ingeneral,thelevelof“at-risk”compensationincreasesastheofficer’sscopeofresponsibilityincreases.
Reward long-term growth andprofitability.
Rewardsforachievinglong-termresults,andalignmentwiththeinterestsofourshareholders.
Tie compensation to businessperformance.
Asignificantportionofpayistiedtomeasuresofperformanceofthebusinessorbusinessesoverwhichtheindividualhasthegreatestinfluence.
Align executive compensation withshareholder interests.
Theinterestsofourexecutiveofficersarelinkedwiththoseofourshareholdersthroughtherisksandrewardsofstockownership.
Limited personal benefits.Perquisitesandotherpersonalbenefitsarelimitedtoitemsthatserveareasonablebusiness-relatedpurpose.
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Compensation MixOurexecutivecompensationprogramhasbeendesignedtorewardstrongperformancebyfocusingthecompensationopportunityforeachofourexecutiveofficersonannualandlong-termincentivesthatdependuponourperformanceasawhole,aswellastheperformanceofourindividualbusinessesoronthebasisofindividualmetricswhereappropriate.
Compensation-Setting ProcessRole of the Compensation Committee
TheCompensationCommitteeisresponsibleforoverseeingourexecutivecompensationprogram(includingourexecutivecompensationpoliciesandpractices)andapprovingthecompensationofourexecutiveofficers,includingtheNamedExecutiveOfficers(exceptforourCEO).
OurBoardisresponsibleforapprovingallcompensationpaidtoourCEO.Pursuanttoitscharter,theCompensationCommitteehastheresponsibilitytoreviewandrecommendtotheBoardanyproposedchangeincompensationforourCEOatleastannually,aswellasforevaluatingourCEO’sperformanceandrecommendingactualpaymentsundertheannualincentiveplaninlightofthecorporategoalsandobjectivesapplicabletohim.
Role of Executive Officers
TheCompensationCommitteereceivessupportfromourHumanResourcesDepartmentindesigningourexecutivecompensationprogramandanalyzingcompetitivemarketpractices.OurChiefHumanResourcesOfficerandGeneralCounselgenerallyattendregularmeetingsoftheCompensationCommitteeinordertoprovideinsightandexpertiseregardingtheoperationofourcompensationprogramsandtoprovidesupportandassistancewithrespecttothelegalandgovernanceimplicationsofourcompensationdecisions.OurCEOalsoregularlyparticipatesinCompensationCommitteemeetings,providingmanagementinputonorganizationalstructure,executivedevelopmentandfinancialanalysis.Inaddition,ourCFOprovidesthefinancialinformationusedbytheCompensationCommitteetomakedecisionswithrespecttoincentivecompensationgoalsbasedonachievementoffinancialtargetsandrelatedpayoutsforourannualandlong-termincentiveprograms.
OurCEOevaluatestheperformanceofeachofourexecutiveofficersagainstanyannualobjectivesestablishedforthebusinessorfunctionalareaforwhichsuchexecutiveofficerisresponsible.OurCEOthenreviewseachexecutiveofficer’stargetcompensationopportunityandbaseduponthetargetcompensationopportunityandtheindividual’sperformance,proposescompensationadjustments,subjecttoreviewandapprovalbytheCompensationCommittee.NeitherourCEOnoranyotherNamedExecutiveOfficerparticipatesintheevaluationofhisorherownperformanceandheorsheisnotpresentduringdiscussionsrelatingtohisorhercompensation.
Role of Independent Compensation Consultant
Infulfillingitsdutiesandresponsibilities,theCompensationCommitteehastheauthoritytoengagetheservicesofoutsideadvisersonanas-neededbasis.In2019,theCompensationCommitteeengagedFredericW.Cook&Co.,Inc.(“FWCook”),anationalexecutivecompensationconsultingfirm,asitsindependentcompensationconsultanttoassistitwithcompensationmatters.FWCookregularlyattendsmeetingsoftheCompensationCommittee,respondstoinquiriesfrommembersoftheCompensationCommitteeandprovidesanalysiswithrespecttotheseinquiries.FWCookworkscollaborativelywithourmanagementtogainanunderstandingofourbusinessandcompensationprogramstohelpthemadvisetheCompensationCommittee.Inaddition,FWCookregularlyconferswithourmanagementtocollect,analyzeandpresentdatarequestedbytheCompensationCommittee.
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TheCompensationCommitteehasaskedFWCooktoregularlyprovideindependentadviceonthefollowingmatters(amongothers):
• thecompositionofourcompensationpeergroup(includinganalyzingexecutivecompensationlevelsandpracticesofthecompaniesinourcompensationpeergroup);
• ourcompensationplanrisk;
• currentmarkettrendsandbestpracticesinexecutiveanddirectorcompensationdesign;and
• theoveralllevelsofcompensationandtypesandblendofvariouscompensationelements.
FWCookdoesnotprovideanyservicestousotherthantheservicesprovidedtotheCompensationCommittee.ThetotalexpensefortheservicesprovidedtotheCompensationCommitteebyFWCookduring2019wasapproximately$95,316.
Peer Group
OurCompensationCommittee,withtheassistanceofourindependentcompensationconsultant,reviewsandestablishesourpeergroupannuallyandusessuchpeergroupasareferencesourceinitsexecutivecompensationdeliberations.ThepeergroupisestablishedbyevaluatingcompaniesthattheCompensationCommittee,withtheassistanceofourindependentcompensationconsultant,believesarecomparabletouswithrespecttoindustrysegment,businessprofileandvariousfinancialcriteria.Our2019peergroup,whichwasapprovedbyourCompensationCommitteeinMarch2019,issetforthbelow.Theonlychangesfromour2018peergroupweretheremovalofConvergysandForestCityRealtyduetosuchcompaniesbeingacquiredin2018.
DirectPeers OtherBusinessServicePeersCBRE AECOMColliersInternational AonJonesLangLaSalle BostonProperties
CACIInternational CGIGroup DukeRealtyCorporation EMCOR FidelityNationalInformationServices Fiserv JacobsEngineering KBR KellyServices Leidos RobertHalfInternational UnisysWillisTowersWatson
AtthetimetheCompensationCommitteeestablishedour2019peergroupinMarch2019,ourrevenuewasnearthemedianofourpeergroupandourmarketcapitalizationwasnearthe25thpercentileofourpeergroup.WebelievethispositioningrelativetoourpeergroupprovidesourCompensationCommitteewithasoundbasisforcomparingourcompensationtomarketcompetitors.
ThispeergroupdataisnotusedbytheCompensationCommitteeinisolationbutratherservesasonepointofreferenceformakingdecisionsaboutcompensation.TheCompensationCommitteealsotakesintoconsiderationotherfactorsitconsidersrelevant,suchasthefinancialandoperationalperformanceofourbusinesses,individualperformance,experienceandskillset,specificretentionconcernsandinternalequity.
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Compensation-Related Risk AssessmentTheCompensationCommitteeevaluateseachelementofourexecutivecompensationprograminordertoensurethatitdoesnotencourageourexecutiveofficerstotakeexcessiveorunnecessaryrisksorincentivizetheachievementofshort-termresultsattheexpenseofourlong-terminterests.Webelievewehavedesignedourexecutivecompensationprogramtoaddresspotentialriskswhilealsorewardingourexecutiveofficersforachievingfinancialandstrategicobjectivesthroughprudentbusinessjudgmentandappropriaterisktaking.Amongotherthings,wehaveattemptedtomitigateriskbyadoptingstockownershipguidelines,hedgingandpledgingprohibitionsandclawbackpolicies.Basedonour2019evaluation,weconcludedthatourexecutivecompensationpoliciesandpracticesareappropriatelystructuredanddonotencourageemployeestotakeunnecessaryorexcessiverisks.
Compensation ElementsOurexecutivecompensationprogramconsistsofbasesalary,annualincentivecompensation,long-termequityincentiveawardsandhealth,welfareandothercustomaryemployeebenefits.
Base Salary
Webelievethatacompetitivebasesalaryiscriticalinattractingandretainingkeyexecutivetalent.InevaluatingthebasesalariesofourNamedExecutiveOfficers,theCompensationCommitteeconsidersseveralfactors,includingindividualandcompanyperformance,qualifications,experience,tenureandscopeofresponsibilities,futurepotential,competitivemarketpractices,difficultyoffindingareplacement,ourdesiredcompensationpositionwithrespecttothecompetitivemarketandinternalequity.
TheCompensationCommitteegenerallyreviewssalariesintheearlypartofeachyearand,ifappropriate,adjuststoreflectchangesintheconsiderationsdescribedaboveandtorespondtomarketconditionsandcompetitivepressures.Thetablebelowreflectstheextentofincreasesin2019tothebasesalariesforourNamedExecutiveOfficers.AnysuchincreaseswereeffectiveonApril1,2019.Named Executive Officer 2018 Base Salary 2019 Base Salary Percentage ChangeMr.White $ 950,000 $ 950,000 0%Mr.Palmer $ 600,000 $ 600,000 0%Mr.Forrester $ 593,101 $ 593,101 0%Mr.Robinson $ 340,000 $ 400,000 17.65%Mr.Soloway $ 475,000 $ 500,000 5.26%
Annual Incentive Compensation
Eachyear,ourexecutiveofficersareeligibletoreceiveannualcashincentiveawardsunderourAnnualIncentivePlan(“AIP”).AtthebeginningofeachyeartheCompensationCommittee(andtheBoardfortheCEO)approvesthetermsandconditionsoftheAIP,includingtheselectionofoneormoreperformancemeasuresasthebasisfordeterminingthefundingofannualcashbonuses,theperformancerangerelativetoourannualoperatingplanandtheweightingofsuchperformancemeasures.
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Target Annual Cash Bonus Opportunities
TheannualtargetcashbonusopportunityforeachNamedExecutiveOfficerisexpressedasapercentageofbasesalary.Similartobasesalaries,inevaluatingthetargetcashbonusopportunityofourNamedExecutiveOfficers,theCompensationCommitteeconsidersseveralfactors,includingindividualandcompanyperformance,qualifications,experience,tenureandscopeofresponsibilities,futurepotential,competitivemarketpractices,difficultyoffindingareplacement,ourdesiredcompensationpositionwithrespecttothecompetitivemarketandinternalequity.Thefollowingtableshowsthe2018and2019bonustargetsforeachNamedExecutiveOfficer.
Named Executive Officer 2018 Target Cash Bonus
(% of base salary) 2019 Target Cash Bonus
(% of base salary) Mr.White 210.5% 210.5%Mr.Palmer 100% 150%Mr.Forrester 193% 193%Mr.Robinson 50% 100%Mr.Soloway 50% 75%
Corporate Performance Measures
Forthe2019AIP,theCompensationCommittee(andtheBoardfortheCEO)selectedAdjustedEBITDA,adjustedasfollows,astheprimaryperformancemeasure:increasedby$3milliontoconverttoaconstantcurrencyexchangerate;increasedby$1millionforotherone-timeitems;anddecreasedby$6millionforrealizedandunrealizedexchangerategains(suchresultingamountisreferredtoasthe“CompensationEBITDA”).TheCompensationCommitteeandtheBoardbelievesthatCompensationEBITDAisthebestmeasureofbothcorporateandbusinesssegmentprofitability.
See“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations—Non-GAAPFinancialMeasures”inourAnnualReportonForm10-KforthefiscalyearendedDecember31,2019forfurtherdetailontheCompany’suseofAdjustedEBITDA.
Annual Cash Bonus Decisions
TheAIPisbasedontheachievementofacertainpercentageofCompensationEBITDA,fromaminimumof70%toamaximumof130%asmeasuredagainsttherelevantannualoperatingplantarget,subjecttotheachievementoftheminimum70%onaconsolidatedbasisandthediscretionoftheCompensationCommittee(andtheBoardfortheCEO),withstraightlineinterpolationbetweenperformancelevels.CompensationEBITDAgoalsaresetonaconstantcurrencybasis.OtheritemsandadjustmentsaremadetoCompensationEBITDAatthediscretionoftheCompensationCommittee(andtheBoardfortheCEO)toensurethattheachievementreflectsunderlyingperformanceasdeterminedbytheCompensationCommittee(andtheBoardfortheCEO).Theadjustmentsmadefor2019aredescribedabove.Individuals’bonusesarethendeterminedaccordingtotheirroleandcompany-widefinancialperformance.
In2019,thebonuspaidtoeachNamedExecutiveOfficerisdeterminedbasedonfinancialperformancethatresultsinafundedrangeof0%to200%oftheirapplicabletarget.TheCompensationCommittee(andtheBoardfortheCEO)hasthediscretiontoadjusttheamountoftheactualcashbonuspaymentstobereceivedasitdeemstobeappropriate,upwardstotheapplicablecapordownwardstozero.In2019,theCompensationCommittee(andtheBoardfortheCEO)usedthisdiscretiontoincreasethecashbonuspaymentstoMr.White,Mr.PalmerandMr.Forresterby4.2%basedontheaccomplishmentofcertainfreecashflowfinancialperformanceobjectivesincludedintheCompany’s2019operatingplan.Therewerenodiscretionaryadjustmentsfor2019withrespecttotheotherNamedExecutiveOfficers.
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2019 Performance and Payouts
Forthe2019AIP,thetargetCompensationEBITDAwas$715million,andtheactualachievedCompensationEBITDAwas$722million,resultinginafundinglevelof103.3%.Asnotedabove,theCompensationCommittee(andtheBoardfortheCEO)useditsdiscretiontoincreasethecashbonuspaymentstoMr.White,Mr.PalmerandMr.Forresterby4.2%basedontheaccomplishmentofcertainfreecashflowfinancialperformanceobjectivesincludedintheCompany’s2019operatingplan.Thisresultedinatotalfundinglevelof107.6%forMr.White,Mr.PalmerandMr.Forrester.
Thefollowingtablesummarizesthepayoutsunderthe2019AIP.
Named Executive Officer 2019 Actual
Cash Bonus Payment
Actual Cash Bonus Paymentas Percentage of Target
Cash Bonus Award Mr.White $ 2,152,503 107.6%Mr.Palmer $ 968,747 107.6%Mr.Forrester $ 1,235,250 107.6%Mr.Robinson $ 413,200 103.3%Mr.Soloway $ 387,375 103.3%
Long-Term Incentive Compensation
Weprovidelong-termincentivecompensationtoourexecutiveofficersbecausewebelieveitpromoteslong-termgrowthandprofitabilitybyaligningtheinterestsofourmanagementwiththeinterestsofourshareholdersandbyencouragingretention.
Atthebeginningofeachyear,theCompensationCommittee(andtheBoardfortheCEO)determinesthetargetandtypeofequityawardtobedeliveredtoeachexecutiveofficer.In2019,ourlong-termincentiveprogramconsistedofacombinationoftime-vestingandperformance-vestingrestrictedstockunits(“RSUs”)toeffectivelyandefficientlybalanceperformanceandretentionobjectives.Allawardsweregrantedunderour2018OmnibusManagementShareandCashIncentivePlan.
Thefollowingtablesummarizesthemixoftime-vestingRSUsandperformance-vestingRSUsforeachNamedExecutiveOfficerin2019.
Named Executive Officer Time-Vesting RSUs
(% of award) Performance-Vesting RSUs
(% of award) Mr.White 75% 25%Mr.Palmer 60% 40%Mr.Forrester 60% 40%Mr.Robinson 60% 40%Mr.Soloway 60% 40%
ThefollowingtablesummarizesthetargetequityawardvaluesofeachNamedExecutiveOfficerin2019.
Named Executive Officer 2019 Target Award ValuesMr.White $ 6,000,000Mr.Palmer $ 2,500,000Mr.Forrester $ 2,500,000Mr.Robinson $ 500,000Mr.Soloway $ 800,000
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Time-Vesting RSUs – Vesting Schedule
Toencourageretention,theRSUsvestinequalannualinstallmentsoverafour-yearperiodcommencingonthefirstanniversaryofthegrantdate.AstheRSUawardsareinherentlytiedtotheperformanceofourordinaryshares,weconsideravestingschedulebasedoncontinuedserviceappropriatetoprovidebothretentionandperformanceincentives.
Performance-Vesting RSUs
Fortheperformance-vestingportionoftheRSUaward,theNamedExecutiveOfficerreceivesanawardonthegrantdateexpressedasatargetnumberofRSUs.TheactualnumberofordinarysharesdeliveredtotheexecutiveinsettlementoftheRSUawardisbasedonourperformanceresultswithregardstothepredeterminedmetricormetricsacrossthemeasurementperiod.Toreceivethesharesinsettlement,theexecutivemustremainemployedthroughthesettlementdateoftheaward.
Forthe2019performance-vestingRSUs,payoutswillbebased50%onatargetAdjustedEBITDAMarginAccretion,asmeasuredastheaverageofthreeseparateyearsofperformance(2019,2020and2021),and50%onatargetRelativeTSR,asmeasuredonacumulativebasisoverameasurementperiodcommencinginMarch2019andendinginFebruary2022.AdjustedEBITDAMarginAccretionisameasureofprofitabilityobtainedbydividingAdjustedEBITDAbyFeerevenue.RelativeTSRistheCompany’stotalshareholderreturnrelativetothecompaniesintheRussel3000.Foreachperformancemetric,payoutrangesfrom0%to150%oftarget.Eachperformancemetricalsoincludesaminimumthreshold.Ifactualperformanceislessthantheminimumthresholdlevel,thepayoutwillbe0%forthatmetric.Thepayoutforeachmetricislinearlyinterpolatedforperformancebetweentheminimumthresholdandtargetandalsoforperformancebetweenthetargetandmaximum.
Forthe2019performance-vestingRSUsthatarebasedonRelativeTSR,thepayoutswillbebasedontheachievementpercentagesovertheperformanceperiodrelativetothecompaniesintheRussell3000assetforthbelow(exceptthatifthetotalshareholderreturnoftheCompanyisnegativeovertheperformanceperiod,theachievementpercentageshallnotexceed100%).
Level of Achievement Relative TSR Percentile Rank Achievement PercentageBelow Threshold Less than 25th percentile 0%
Threshold At least the 25th percentile 50%Target At least the 50th percentile 100%
Maximum At least the 75th percentile 150%
Health, Welfare, Retirement and Other Employee Benefits
WeprovidebenefitstoourNamedExecutiveOfficersonthesamebasisasallofourfull-timeemployees.Thesebenefitsinclude401(k)retirement,medical,pharmacy,dentalandvisionbenefits,medicalanddependentcareflexiblespendingaccounts,short-termandlong-termdisabilityinsurance,accidentaldeathanddismembermentinsuranceandbasiclifeinsurancecoverage.
Perquisites and Other Personal Benefits
Weonlyprovideperquisitesandotherpersonalbenefitstoourexecutiveofficerswhenwebelievetheyareappropriatetoassistanindividualintheperformanceofdutiesandtheachievementofbusinessobjectives,tomakeourexecutiveofficersmoreefficientandeffective,andforrecruitmentandretentionpurposes.TheCompensationCommitteebelievesthattheperquisitesandpersonalbenefitsthatweprovideareareasonablecomponentofouroverallexecutivecompensationprogramandareconsistentwithmarketpractices.Wemayprovideotherperquisitesorotherpersonalbenefitsinthefuturetoachievesimilargoals,subjecttoapprovalandperiodicreviewbyourCompensationCommittee.
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Employment Agreements and Severance Arrangements
WehaveenteredintowrittenemploymentagreementswithMessrs.White,PalmerandForrester,andMr.SolowayandMs.RobinsonarepartytoofferletterswiththeCompany.WehavealsoenteredintoatransitionagreementwithMr.Palmerinconnectionwithhisplannedretirementin2020.Theseagreementsestablishthetermsandconditionsgoverningtheiremployment,includinganyterminationthereof,andalsoincluderestrictivecovenants.Thesearrangementsaremorefullydescribedbelowunder“—EmploymentArrangements.”
TherightsofMessrs.WhiteandPalmertoreceiveseverancearesetforthintheirrespectiveemploymentagreements.EachofMr.Soloway,Mr.ForresterandMr.Robinsonareentitledtocertainbenefitsunderourseveranceplanthatwebelieveisinlinewithmarketpractice.ConsistentwiththearrangementsgoverningtheseveranceforMessrs.WhiteandPalmer,intheeventMr.Soloway’s,Mr.Forrester’sorMr.Robinson’semploymentisterminatedbytheCompanywithout“cause”,hewillreceiveaseverancepaymentbasedonamultipleofbasesalaryonly(1.5xinthecaseofMr.Forresterand1.0xforMr.RobinsonandMr.Soloway).Theseverancewillbepayableover18months,inthecaseofMr.Forrester,and12months,inthecaseofMr.RobinsonandMr.Soloway,andwillbesubjecttotherequirementthattheindividualexecuteavalidreleaseandcomplywithanyrestrictivecovenantstowhichtheyaresubject.
Employmentagreementsandseverancebenefitsassistusintherecruitmentandretentionofexecutivetalent.
Report of the Compensation CommitteeTheCompensationCommitteehasreviewedanddiscussedwithmanagementtheCompensationDiscussion&Analysisand,basedonsuchreviewanddiscussion,hasrecommendedtotheBoardthattheCompensationDiscussion&AnalysisbeincludedinthisProxyStatementandincorporatedbyreferenceintoourAnnualReportonForm10-KfortheyearendedDecember31,2019.
The Compensation Committee
TimothyDattels(Chair) LincolnPan RichardMcGinn
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Executive Compensation TablesSummary Compensation Table
ThefollowingtablesetsforthinformationregardingthecompensationtoourNamedExecutiveOfficersforthefiscalyearspresented:
Name and Principal Position Year Salary Bonus Stock
Awards(1) Option
Awards(1)
Non-Equity Incentive Plan Compensation(2)
All Other Compensation(3) Total
Brett White,Executive Chairman and Chief Executive Officer
201920182017
$$$
950,000950,000950,000
———
$$
6,150,40945,131,905
—
———
$$$
2,152,5033,066,6001,400,000
$$
—91,455145,285
$$$
9,252,91249,239,9602,495,285
Duncan Palmer,EVP, Chief Financial Officer
201920182017
$$$
600,000600,000600,000
$$
—1,450,0001,000,000
$$
2,600,279999,998
—
$$
—1,717,800745,400
$$$
968,747919,980420,000
$$$
7,0006,7506,750
$$$
4,176,0265,694,5282,772,150
John Forrester, (4)EVP, Global President
20192018
$$593,101628,312
$
—1,450,000
$$
2,600,2792,058,824
$
—1,717,800
$$
1,235,2501,864,068
$$
80,07884,832
$$
4,508,7087,803,836
Nathaniel Robinson,Chief Investment Officer and EVP of Strategic Planning 2019 $ 389,151 — $ 520,052 — $ 413,200 $ 7,000 $ 1,329,402Brett Soloway,EVP, General Counsel and Corporate Secretary
201920182017
$$$
495,479470,137437,500
$$
—300,00080,500
$$
832,089437,500
—
$$
—250,955268,187
$$$
387,375364,159174,375
———
$$$
1,714,9431,822,751960,562
(1) Theamountsreportedinthe“StockAwards”and“OptionAwards”columnsrepresenttheaggregategrantdatefairvalueofthestock-basedawardsgrantedto
theNamedExecutiveOfficersduringtheyearspresented,ascomputedinaccordancewithFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718.The“StockAwards”columnalsoincludesthevalueofperformance-vestingawards.Withrespecttotheperformance-vestingawardsgrantedin2019,theamountsrepresentthefairvalueoftheperformance-vestingawardatthegrantdateassumingthetargetlevelofperformanceconditionsareachieved.Assumingthemaximumlevelofperformanceconditionsareachieved,thefairvalueamountsforsuchawardswouldbe$6,975,612,$3,150,415,$3,150,415,$630,075and$1,008,131forMr.White,Mr.Palmer,Mr.Forrester,Mr.RobinsonandMr.Soloway,respectively.Fortheassumptionsusedinvaluingtheseawardsforpurposesofcomputingthisexpense,pleaseseeNote12oftheconsolidatedfinancialstatementsintheCompany’sAnnualReportfortheyearendedDecember31,2019.
(2) TheamountsrepresentcashbonusamountsearnedpursuanttoourAnnualIncentivePlanfortheapplicableyear.(3) Theamountsinthiscolumnincludethefollowingcategoriesofperquisitesfor2019:forMr.PalmerandMr.Robinson,401(k)contributionsbytheCompany
($7,000each);andforMr.Forrester,$59,292incashinlieuofretirementbenefits,$12,751forcarallowance,inadditiontoamountsfortaxcomplianceservicesandcertaincorebenefitsincludinglifeassurance,privatemedicalandincomeprotection;TheamountsreportedforperquisitesandotherbenefitsrepresenttheactualcostincurredbyusinprovidingthesebenefitstotheindicatedNamedExecutedOfficer.
(4) Salary,Non-EquityIncentiveandAllOtherCompensationforMr.ForresterhavebeenconvertedfromGBPatarateof$1.2751/GBP.
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2019 Grants of Plan-Based Awards Table
Thefollowingtablesetsforth,foreachoftheNamedExecutiveOfficers,theplan-basedawardsgrantedduring2019.
Name Grant Date
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 Sharesof Stock or Units(3)
Grant Date Fair Value of Stock
Awards(4) Threshold Target Maximum Threshold Target Maximum Mr.White $ — $2,000,000 $4,000,000
3/7/2019 42,017 84,033 126,050 252,101 $6,150,409Mr.Palmer $ — $ 900,000 $1,800,000
3/7/2019 28,011 56,022 84,033 84,034 $2,600,279Mr.Forrester $ — $1,147,590 $2,295,180
3/7/2019 28,011 56,022 84,033 84,034 $2,600,279Mr.Robinson $ 100,000 $ 400,000 $ 800,000
3/7/2019 5,602 11,204 16,806 16,807 $ 520,052Mr.Soloway $ 93,750 $ 375,000 $ 750,000 3/7/2019 8,964 17,927 26,891 26,891 $ 832,089(1) Thesevaluesrepresentthethreshold,targetandmaximumcashpayoutsundertheFiscal2019AIP.(2) Theseamountsrepresentthetargetandmaximumnumberofsharesunderlyingperformance-basedRSUsauthorizedbytheCompensationCommitteeon
March7,2019.TheactualpayoutlevelsforthesegrantswillbesetbytheCompensationCommitteein2022followingtheendofthethree-yearperformanceperiod.Theperformance-basedRSUsvestinoneinstallmentonthedatetheCompensationCommitteecertifiestheperformanceconditions.
(3) Theseamountsrepresenttime-vestingRSUswhichwillvestandsettleinfoursubstantiallyequalinstallmentsoneachofthefirstfouranniversariesofthegrant
date,subject,withcertainlimitedexceptions,totheexecutive’scontinuingemploymentthrougheachsuchvestingdate.(4) Thefairvaluesforthetime-vestingRSUsandtheperformance-vestingRSUsthatarebasedonMarginAccretionrepresentthefairvalueofanordinaryshareon
thegrantdate,whichisbasedontheclosingpriceofourordinarysharesonthegrantdate($17.85).Thefairvaluesoftheperformance-vestingRSUsthatarebasedonRelativeTSRwasdeterminedusingaMonteCarlosimulationbasedontheassumptionssetforthinNote12oftheconsolidatedfinancialstatementsintheCompany’sAnnualReportfortheyearendedDecember31,2019.
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2019 Outstanding Equity Awards at Year-End Table
Thefollowingtablesetsforth,foreachoftheNamedExecutiveOfficers,theequityawardsoutstandingasofDecember31,2019.
Name
Number of Securities Underlying UnexercisedOptions - Exercisable
Number of Securities Underlying Unexercised Options -
Unexercisable
Number of Securities Underlying UnexercisedUnearned Options
Option ExercisePrice
Option Expiration
Date
Number ofShares or Units of Stock ThatHave Not Vested
Market Value of Shares or Unit of
Stock That Have Not Vested(1)
Number ofUnearned Shares or Units of Stock ThatHave Not Vested
Market or Payout Value of Unearned Shares or Units of
Stock That Have Not Vested(1)
Mr.White 81,863 — $ 10.00 5/8/2025 1,030,967(5) $21,072,965 827,700(10) $16,918,188
Mr.Palmer 389,500 200,000(4) $ 10.00 5/8/2025 125,631(6) $ 2,567,898 56,022(11) $ 1,145,090
Mr.Forrester 400,000 200,000(4) $ 10.00 5/8/2025 182,073(7) $ 3,721,572 56,022(11) $ 1,145,090
Mr.Robinson — 41,317(8) $ 844,519 11,204(11) $ 229,010
Mr.Soloway 26,666 13,334(4) $ 10.00 5/8/2025 18,000 2,000(2) 10,000(4) $ 12.00 1/7/2026 18,667 7,999(3) 13,334(4) $ 17.00 3/31/2027
47,724(9) $ 975,479 17,927(11) $ 366,428(1) ThemarketvalueofunvestedandunearnedstockawardsiscalculatedasofDecember31,2019,astheaggregatenumberofsharesunderlyingtheunvested
time-vestingRSUsandtheunvestedperformance-vestingRSUs(attarget)multipliedbyouryearendclosingstockpriceof$20.44.(2) Consistsoftime-vestingoptionswhicharescheduledtovestonNovember1,2020.(3) Consistsoftime-vestingoptions,2,667ofwhichvestedonMarch10,2020andtheremainderofwhicharescheduledtovestinequalinstallmentsonMarch10,
2021andMarch10,2022.(4) Consistsofperformance-vestingoptionsthatwillvestupontheoccurrenceofaliquidityeventorsignificantcashsaleintheeventthePrincipalShareholders
realizeamultipleofmoneythatisatleastequalto2.0orifouraverageclosingsharepriceforaperiodof90daysisatleast$20.(5) Consistsoftime-vestingRSUs,63,026ofwhichvestedonMarch7,2020,55,147ofwhichvestedonMarch15,2020,166,667ofwhichvestedonMarch16,
2020,andtheremainderofwhicharescheduledtovestasfollows:Number of RSUs Vesting Date(s)446,758 TwoequalinstallmentsonMay8,2020and2021110,294 TwoequalinstallmentsonMarch15,2021and2022189,075 ThreeequalinstallmentsonMarch7,2021,2022and2023
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(6) Consistsoftime-vestingRSUs,21,009ofwhichvestedonMarch7,2020,andtheremainderofwhicharescheduledtovestasfollows:Number of RSUs Vesting Date(s)41,597 ThreeequalinstallmentsonSeptember6,2020,2021and202263,025 ThreeequalinstallmentsonMarch7,2021,2022and2023(7) Consistsoftime-vestingRSUs,19,608ofwhichvestedonJanuary1,2020,21,009ofwhichvestedonMarch7,2020,andtheremainderofwhicharescheduled
tovestasfollows:Number of RSUs Vesting Date(s)78,431 August6,202063,025 ThreeequalinstallmentsonMarch7,2021,2022and2023(8) Consistsoftime-vestingRSUs,4,202ofwhichvestedonMarch7,2020,4,902ofwhichvestedonApril1,2020,andtheremainderofwhicharescheduledto
vestasfollows:Number of RSUs Vesting Date(s)19,608 August6,202012,605 ThreeequalinstallmentsonMarch7,2021,2022and2023(9) Consistsoftime-vestingRSUs,6,723ofwhichvestedonMarch7,2020,4,167ofwhichvestedonMarch8,2020,andtheremainderofwhicharescheduledto
vestasfollows:Number of RSUs Vesting Date(s)16,666 August6,202020,168 ThreeequalinstallmentsonMarch7,2021,2022and2023(10) Consistsofperformance-vestingRSUs(attarget)withthefollowingperformance-vestingcriteria:(i)111,690ofsuchperformance-vestingRSUsvestedon
February18,2020basedontheachievementofperformancerequirements;(ii)558,448ofsuchperformance-vestingRSUsvestin12.5%incrementsifourclosingsharepriceforaperiodof90daysisatleast$22.30,$25.10,$27.80,$30.60and$33.40;(iii)73,529ofsuchperformance-vestingRSUsvestonlyupontheoccurrenceofaliquidityeventinwhichthePrincipalShareholdersrealizeanetmultipleofmoneyofatleast2.0;and(iv)84,033ofsuchperformance-vestingrepresent2019performance-vestingRSUsandpayoutswillbebased50%onatargetAdjustedEBITDAMarginAccretion,asmeasuredonacumulativebasisoverameasurementperiodcommencingonJanuary1,2019andendingonDecember31,2021,and50%onatargetRelativeTSR,asmeasuredonacumulativebasisoverameasurementperiodcommencinginMarch2019andendingonFebruary2022.See“ComponentsofCompensation–Long-TermIncentiveCompensation-Performance-VestingRSUs.”
(11) Consistsof2019performance-vestingRSUs(attarget)andpayoutswillbebased50%onatargetAdjustedEBITDAMarginAccretion,asmeasuredona
cumulativebasisoverameasurementperiodcommencingonJanuary1,2019andendingonDecember31,2021,and50%onatargetRelativeTSR,asmeasuredonacumulativebasisoverameasurementperiodcommencinginMarch2019andendingonFebruary2022.See“ComponentsofCompensation–Long-TermIncentiveCompensation-Performance-VestingRSUs.”
2019 Options Exercised and Stock Vested Table
Thefollowingtablesetsforth,foreachoftheNamedExecutiveOfficers,thenumberofordinarysharesacquiredupontheexerciseofoptionsandvestingofRSUsduring2019,andtheaggregatevaluerealized(beforepaymentofanyapplicablewithholdingtaxandbrokercommission)upontheexerciseorvestingofsuchawards.
Name
Option Awards –Number of Shares Acquired on Exercise
Option Awards – Value Realized on
Exercise
Stock Awards – Number of Shares
Vested Stock Awards – Value on Vesting
Mr.White 364,895 $ 2,749,163 752,193 $ 14,137,991Mr.Palmer 10,500 $ 81,165 13,866 $ 247,504Mr.Forrester — — 19,608 $ 283,726Mr.Robinson — — 4,902 $ 88,334Mr.Soloway — — 4,167 $ 74,501
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2019 Nonqualified Deferred Compensation Table
In2017,2016and2015theCompanyofferedcertainmanagementemployeestwooptionstopurchaseorotherwiseacquireshares.Managementmaypurchaseshareswithcash,ortheymayelecttoreceiveRSUsinlieuofalloraportionoftheirtargetedcashbonusunderthetargetannualincentiveplan(“AIP”)(thissecondoptionisreferredtohereinasthe“PriorDCP”).ParticipantschoosingtoreceiveRSUsunderthePriorDCPweregrantedafixednumberofRSUsbaseduponthefairvalueofanequityshareatthegrantdate.50%oftheRSUsvestedontheannualincentiveplanpaymentdateinMarchofthefollowingyear,andtheremaining50%vestedoneyearlater.Ifanindividual’sactualbonusdidnotmeetthetotallevelofRSUselected,anyshortfallofshareswasforfeited.AlloutstandingRSUsunderthePriorDCPweredistributedin2019.
InDecember2018,theCompanyadoptedanewexecutivedeferredcompensationplan(the“2019DCP”),whichbecameeffectiveonJanuary1,2019.The2019DCPallowshighlycompensatedemployeestodeferaportionoftheirsalary,bonus,commissionsand/orequity-basedcompensation,enablingtheemployeetodefertaxoncompensationuntilpaymentismade.DeferredcompensationiscreditedintoanaccountdenominatedinordinarysharesoftheCompanyinanumberdeterminedbasedonthefairmarketvalueoftheCompany’sordinarysharesonthedateofthedeposit.Allpaymentsaremadeinordinaryshares.
ThefollowingtablesetsforthNonqualifiedDeferredCompensationArrangementsforourNamedExecutiveOfficersin2019.
Name
Executive Contributionsin Last Fiscal
Year(1)
Registrant Contributionsin Last Fiscal
Year
Aggregate Earnings in Last
Fiscal Year
Aggregate Withdrawals/ Distributions(4)
AggregateBalance atLast FYE ($)(5)
Mr.White — — — — —Mr.Palmer $ 2,600,279 — $ 400,616(2) $ 789,300 $2,862,745Mr.Forrester — — $ 184,200(3) $ 1,052,400 —Mr.Robinson $ 520,052 — $ 52,493(2) — $ 572,545Mr.Soloway $ 832,089 — $ 83,991(2) — $ 916,080(1) AmountsreflectthefairmarketvaluesonthegrantdateofRSUsdeferredunderthe2019DCP.Allamountsarealsoincludedinthecompensationshownforthe
applicableofficerintheSummaryCompensationTableunderthecolumn“StockAwards”.(2) RepresentsappreciationinthepriceofsharesunderlyingdeferredRSUsunderthe2019DCP.(3) RepresentsappreciationinthepriceofsharesunderlyingdeferredRSUsunderthePriorDCP.(4) RepresentsthefairmarketvalueofRSUsonthedateofdistributionpursuanttothePriorDCP.(5) RepresentsthevalueofalldeferredRSUsunderthe2019DCPusingouryearendclosingstockpriceof$20.44.
Employment Arrangements
EachoftheNamedExecutiveOfficersispartytocertainagreementsorarrangementsgoverningtheiremployment,asdescribedbelow.
Mr. White
CWFacilityServicesInc.(assuccessorininteresttoDTZUSNewCo,Inc.)ispartytoanemploymentagreementwithMr.White,effectiveasofMarch16,2015,andasamendedonNovember19,2018(the“WhiteAmendment”),withatermextendingthroughDecember30,2021.TheWhiteAmendmentwasapprovedbytheBoardtoprovideforcontinuedimplementationoftheCompany’sstrategyandbettercontinuityofmanagement.Totheextenthemeetscertaincontinuedservicerequirements,Mr.Whitewillbeentitledtoalong-termincentiveawardinMarchof2021thatisprovidedgenerallyonthesamevestingandothertermsaswouldapplytosimilarannuallong-termincentivegrantsmadetootherseniorexecutivesinthatyear.
Mr.White’sbasesalarymaynotbereducedbelow$950,000.Mr.Whiteiseligibleforatargetannualbonusopportunityequalto$2,000,000,basedonindividualand/orcompanyperformance,as
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determinedbytheBoard.Mr.White’sannualcompensationwasinitiallyestablishedinconnectionwithMr.White’sserviceasourExecutiveChairman,andhisemploymentagreementalsoprovidedforequitygrantsmadeinconnectionwiththeacquisitionofDTZandCassidyTurleybyourPrincipalShareholdersandconsistentwiththatExecutiveChairmanroleandhisroleineffectuatingthetransaction.In2015,Mr.WhitetookoverasourCEO,andinconnectionwiththattransitionaswellastheacquisitionofCushman&Wakefield,Mr.WhitereceivedanadditionalgrantofRSUs.In2017andagaininNovember2018,hisoverallcompensationwasreviewedandamendedtobetterreflectmarketpracticeandlevelsforhisserviceastheCEOandasaresult,byMarch15,2018,2019,2020and2021,Mr.Whitehadreceivedorisentitledtoreceive,asapplicable,agrantofRSUswithrespecttoanumberofsharesoftheCompanyhavingavalueofatleast$5,000,000onthedateofgrant.OftheseRSUs,otherthanthosethatwillbegrantedin2021(whichwillvestonthetermsdescribedabove),75%willbesubjecttotheprovisionofcontinuedservicesorcertaintransitionobligationsintheeventheresignsasCEO,and25%willvestupontheoccurrenceofasaleofasignificantportionofourordinarysharesheldbyourPrincipalShareholdersforcashatamultipleofmoneyof2.0x,subjecttohisremainingemployedasofsuchdate.
IfMr.White’semploymentisterminatedbyuswithoutcauseorifheresignsforgoodreason(bothasdefinedintheemploymentagreement),heisentitledto:(i)continuedbasesalaryfor24months,(ii)continuedparticipationinourmedical,dentalandhealthplansathiscostuntilthesecondanniversaryoftheterminationofhisemploymentand(iii)apro-ratedannualbonusfortheyearofterminationbasedonactualperformance,unlesstheterminationoccurswithin12monthspriortoor24monthsfollowingachangeincontrol,inwhichcasethisproratabonuspaymentwillbeatleastequaltohistargetannualbonusopportunity.IntheeventMr.White’semploymentterminatesduetohisdeathordisability,inadditiontoearnedsalaryandbenefits,heisentitledtohisannualbonusfortheyearofterminationbasedonactualperformance.
Mr.Whiteissubjecttocertainrestrictivecovenants,includingprohibitionson(i)competingwithusduringhisemploymentwithusandforaperiodof18monthsthereafter,(ii)solicitingorhiringourcustomersoremployeesduringhisemploymentwithusandforaperiodof24monthsthereafter,and(iii)non-disparagement,confidentialityandintellectualpropertyobligations.IfMr.Whiteresignswithoutgoodreasonattheendoftheterm,hemaycontinuetoreceivehisthen-currentbasesalaryandtoparticipateinourmedical,dentalandhealthplansathiscostforupto18months,subjecttohiscontinuedcompliancewithanyotherobligationshehastous,unlesswenotifyhimthatwearewaivingourrightstoenforcethenon-competitioncovenant.
Mr. Palmer
CWFacilityServicesInc.(assuccessorininterestofDTZUSNewCo,Inc.)ispartytoanemploymentagreementwithMr.Palmer,effectiveasofMarch16,2015,whichhadaninitialtermofthreeyearsandissubjecttoautomaticone-yearextensionsthereafter.OnFebruary27,2020,weenteredintoatransitionagreementwithMr.Palmer(the“TransitionAgreement”)inconnectionwithMr.Palmer’splannedretirementin2020.TheTransitionAgreementprovidesthatMr.Palmer’soriginalemploymentagreementwillremainineffectuntilhisseparationfromtheCompany,whichwilloccurnolaterthanDecember31,2020.Mr.Palmer’soriginalemploymentagreementprovidesthathissalarymaynotbereducedbelow$600,000.Followinghisseparation,Mr.PalmerwillserveasaconsultanttotheCompanyforaperiodof12months(orsuchlesserperiodastheBoardofDirectorsmaydetermine)andwillbeentitledtomonthlypaymentsinanamountequaltohisbasesalaryatthetimeofretirement.TheTransitionAgreementalsoprovidesthatMr.Palmerwillbeentitledtoaproratedperformancebonusfor2020.Inlieuofthegrantofanyequityawardsin2020,Mr.PalmerwillbeentitledtoreceiveacashpaymentonMarch15,2021equalto$708,333,proratedaccordingtohis2020servicepriortoretirement.
Withrespecttooutstandingequityawards,theTransitionAgreementcontemplatesthat(i)allperformance-basedRSUsoutstandingasoftheseparationdatewillremaineligibletovestif,andtotheextent,theperformanceoftheCompanysatisfiestheapplicableperformancevestingrequirementsasoftheendoftheapplicableperformanceperiod;(ii)alltime-basedRSUsgrantedin2018,willfullyvestontheseparationdate;(iii)alltime-basedRSUsgrantedin2019willbeconvertedintorestrictedstock
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andwillcontinuetovestassetforthintheapplicableawardagreement;(iv)alltime-basedstockoptionsgrantedpriortotheCompany’sinitialpublicoffering,whicharenowfullyvested,willbeexercisableforaperiodof30daysfromtheseparationdate;and(v)allperformance-basedstockoptionsgrantedpriortotheCompany’sinitialpublicoffering,willremaineligibletovestif,andtotheextent,theperformanceoftheCompanysatisfiestheapplicableperformancevestingrequirementsasoftheendoftheapplicableperformanceperiod.
TheTransitionAgreementprovidesthatifMr.Palmer’semploymentisterminatedbyuswithoutcauseorifheresignsforgoodreason(bothasdefinedintheemploymentagreement)priortohisseparation,hewillbecomeentitledtothebenefitsdescribedaboveasthoughtheseparationhadoccurredonAugust15,2020(ortheactualdateofseparation,iflater),exceptthatMr.Palmerwillnotserveasaconsultantinthecaseofsuchterminationorresignation.
Mr.Palmerissubjecttocertainrestrictivecovenantssetforthinhisemploymentagreement,theTransitionAgreementandtheagreementsgoverninghisequityawards,includingprohibitionson(i)competingwithusduringhisemploymentwithusandforaperiodof36monthsthereafter,(ii)solicitingorhiringourcustomersoremployeesduringhisemploymentwithusandforaperiodof36monthsthereafterand(iii)non-disparagement,confidentialityandintellectualpropertyobligations.
Mr. Forrester
ThetermsofMr.Forrester’semploymentaregovernedbyanemploymentagreementwithCushman&WakefieldDebenhamTieLeungLimited.Undertheemploymentagreement,Mr.Forresterisentitledtoanannualbasesalary,whichissubjecttoannualreview,andtoparticipateintheemployer’sbenefitsscheme.
Underourcurrentseverancepolicy,upontermination(otherthanforcause),Mr.Forresterisentitledtoseveranceconsistingof18months’basesalarycontinuationplusapro-ratedbonusbasedonactualperformancefortheyearinwhichhewasterminated.
Mr.Forresterissubjecttocertainrestrictivecovenantssetforthinhisemploymentagreementandtheagreementsgoverninghisequityawards,includingprohibitionson(i)competingwithusduringhisemploymentwithusandforaperiodof12monthsthereafter,(ii)solicitingorhiringourcustomersoremployeesduringhisemploymentwithusandforaperiodof12monthsthereafterand(iii)non-disparagement,confidentialityandintellectualpropertyobligations.
Offer Letters
Messrs.RobinsonandSolowayareboth“atwill”employees,althoughthegeneraltermsoftheiremploymentwereinitiallysetoutinofferlettersbetweenthemselvesandtheCompany.Theircurrentsalaries,targetbonusesandseverancepoliciesaredeterminedbytheCompensationCommittee.See“—SummaryCompensationTable”and“—PotentialPaymentsUponTerminationorChangeinControl.”Inaddition,Messrs.RobinsonandSolowayarebothsubjecttocustomaryrestrictivecovenantssetforthintheagreementsgoverningtheirCompanyequityawards.
Management Stockholders’ Agreement
Aspreviouslydisclosed,wehavemadepre-IPOequitygrantsundertheDTZJerseyHoldingsLimitedManagementEquityIncentivePlan(the“MEIP”),whichwasadoptedbyourcorporatepredecessorinMay2015,andpursuanttoRSUagreements.WeandthePrincipalShareholdershaveenteredintoamanagementstockholders’agreementwitheachofourexecutiveofficersthatremainsineffectuntilDecember31,2021andwhichgovernsallpre-IPOequityheldbyourexecutiveofficers,whetheracquiredpursuanttotheexerciseofoptionsgrantedundertheMEIP,thesettlementofRSUsorpurchases.Theequityisheldpursuanttoanomineearrangementandisgenerallynontransferable,exceptthataparticipantmaytransfertheirrightsforestateplanningpurposesorotherwiseaspermittedbyus.Innoeventwillatransferbepermittedtoacompetitor.Themanagementstockholders’agreementprovidesfordrag-along,tag-alongandpost-terminationrepurchaseandrecapturerights,lock-upandotherrestrictions.
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Potential Payments Upon Termination or Change in ControlTheNamedExecutiveOfficersareeligibletoreceivecertainseverancepaymentsandbenefitsundertheiremploymentandequitygrantagreementsorourSeverancePlaninconnectionwithaterminationofemploymentundervariouscircumstancesand/orachangeincontrol.
Thetablebelowprovidesanestimateofthevalueofsuchpaymentsandbenefitsassumingthataqualifyingterminationofemploymentand,asapplicable,achangeincontrol,occurredonDecember31,2019,andassumingasharepriceof$20.44pershare,theclosingpriceoftheordinarysharesonsuchdate.TheactualamountsthatwouldbepaidordistributedtotheNamedExecutiveOfficersasaresultofoneoftheterminationeventsoccurringinthefuturewilldependonfactorssuchasthedateoftermination,themannerofterminationandthetermsoftheapplicableagreementsineffectatsuchtime,whichcoulddiffermateriallyfromthetermsandamountsdescribedhere.
Potential Payments and Benefits upon Termination of Employment or Change in Control Table
Triggering Event(1) Mr. White(2)
(7) Mr. Palmer(3) Mr. Forrester(4) Mr. Robinson(5) Mr. Soloway(6)Termination without Cause or for Good Reason Notin Connection With Change in Control BaseSalary $ 1,900,000 $ 900,000 $ 889,652 $ 400,000 $ 500,000AnnualBonus $ 2,152,503 $ 968,747 $ 1,235,250 $ 413,200 $ 387,375AcceleratedVestingofStockOptions — $ — — — —AcceleratedVestingofRestrictedShareUnitAwards $ 13,586,880 $ 850,248 — — —HealthandWelfareBenefits $ 33,030 $ 13,457 4,759 — $ 13,712TOTAL $ 17,672,413 $ 2,732,452 $ 2,129,661 $ 813,200 $ 901,087Termination without Cause or for Good Reason inConnection With Change in Control BaseSalary $ 1,900,000 $ 900,000 $ 889,652 $ 400,000 $ 500,000AnnualBonus $ 2,152,503 $ 968,747 $ 1,235,250 $ 413,200 $ 387,375AcceleratedVestingofStockOptions — $ 2,088,000 $ 2,088,000 $ — $ 313,872AcceleratedVestingofRestrictedShareUnitAwards $ 34,584,490 $ 3,712,992 $ 4,866,666 $ 1,073,525 $ 1,341,913HealthandWelfareBenefits $ 33,030 $ 13,457 $ 4,759 — $ 13,712TOTAL $ 38,670,023 $ 7,683,197 $ 9,084,327 $ 1,886,725 $ 2,556,872Death or Disability BaseSalary — — — — —AnnualBonus $ 2,152,503 $ 968,747 $ 1,235,250 $ 413,200 $ 387,375AcceleratedVestingofRestrictedShareUnitAwards $ 6,870,579 $ 3,712,992 $ 2,862,745 $ 572,545 $ 916,080TOTAL $ 9,023,082 $ 4,681,739 $ 4,097,995 $ 985,745 $ 1,303,455(1) ThecalculationspresentedinthistableillustratetheestimatedpaymentsandbenefitsthatwouldhavebeenpaidtoeachoftheNamedExecutiveOfficershad
theiremploymentbeenterminatedonDecember31,2019foreachofthefollowingreasons:aterminationofemploymentwithout“cause”oraterminationofemploymentbyaNamedExecutiveOfficerfor“goodreason”(includingfollowingachangeincontrolofDTZJerseyHoldingsLimited)ortheindividual’sdeathordisability.
(2) Intheeventofhisdeathordisability,Mr.Whiteiseligibletoreceiveaprorataportionofhistargetannualcashbonusopportunityfortheyearofhisdeathor
disability,basedonouractualperformancefortheyear.(3) Includesthevestingof200,000optionswhichwouldonlyvestifsuchchangeofcontrolconstitutesa“liquidityevent”inaccordancewiththeapplicable
documentsgoverningsuchawards.Intheeventofhisdeathordisability,Mr.Palmeriseligibletoreceiveaprorataportionofhistargetannualcashbonusopportunityfortheyearofhisdeathordisability,basedonouractualperformancefortheyear.
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(4) Includes(i)198,880unvestedRSUssubjecttovestingintheeventofaqualifyingterminationfollowingachangeofcontroland(ii)thevestingof39,216RSUsand200,000optionswhichwouldonlyvestifsuchchangeofcontrolconstitutesa“liquidityevent”inaccordancewiththeapplicabledocumentsgoverningsuchawards.BasesalaryandhealthandwelfareamountsareconvertedfromGBPtoUSDatarateof$1.2751/GBP.
(5) Includes(i)42,717unvestedRSUswhichvestintheeventofaqualifyingterminationfollowingachangeofcontroland(ii)thevestingof9,804RSUswhich
wouldonlyvestifsuchchangeofcontrolconstitutesa“liquidityevent”inaccordancewiththeapplicabledocumentsgoverningsuchawards.(6) Includes(i)57,318unvestedRSUssubjecttovestingintheeventofaqualifyingterminationfollowingachangeincontroland(ii)thevestingof8,333RSUsand
36,668optionswhichwouldonlyvestifsuchchangeofcontrolconstitutesa“liquidityevent”inaccordancewiththeapplicabledocumentsgoverningsuchawards.PursuanttotheMEIP,100%ofunvestedoptionssubjecttotime-basedvestingconditionsshallvestuponaterminationwithoutcauseorforgoodreasonwithinthetwo-yearperiodfollowingachangeincontrol.
(7) NoterminationofMr.White’semploymentisrequiredfortheseawardstovest,subjecttoanyapplicableperformancecriteria,intheeventofaliquidityevent.
Thesecalculationsassumethatthechangeincontrolconstitutesaliquidityevent.Intheabsenceofaliquidityevent,only336,134time-basedandperformance-basedRSUswouldvestuponachangeincontrol.Additionally,664,720time-basedRSUsvestinconjunctionwitha“QualifyingResignation.”
Director Compensation ProgramDirectorswhoarealsoemployeesoftheCompanyoranyPrincipalShareholderdonotreceiveanycompensationfortheirservicesasdirectors.
PriortoOctober1,2019,eachdirectorwhoisnotanemployeeoftheCompanyoranyPrincipalShareholder(a“Non-EmployeeDirector”)wasentitledtoreceiveannualcashretainersforBoardandcommitteeservicein2019assetforthinthefollowingtable:
Type of Compensation Base Retainer
(pre-October 1, 2019)
Additional Retainer Payable to Committee Chair
(pre-October 1, 2019) Annualboardmemberretainer $ 75,000 n/aAuditCommitteemember $ 10,000 $ 15,000CompensationCommitteemember $ 10,000 $ 15,000NominatingandCorporateGovernanceCommitteemember $ 5,000 $ 10,000
Basedontheresultsofamarketstudyregardingdirectorcompensation,effectiveOctober1,2019,theannualcashretainerforBoardservicewasincreasedto$90,000andtheannualcashadditionalretainerforchairingtheAuditCommitteewasincreasedto$20,000.Thus,effectiveOctober1,2019,eachNon-EmployeeDirectorisentitledtoreceiveannualcashretainersforBoardandcommitteeserviceassetforthinthefollowingtable.
Type of Compensation Base Retainer
(effective October 1, 2019)
Additional Retainer For Committee Chair
(effective October 1, 2019)Annualboardmemberretainer $ 90,000 n/aAuditCommitteemember $ 10,000 $ 20,000CompensationCommitteemember $ 10,000 $ 15,000NominatingandCorporateGovernanceCommitteemember $ 5,000 $ 10,000
Directorsdonotearnfeesforeachmeetingattended;however,theyarereimbursedfortheirtravelexpenses.
Inaddition,eachNon-EmployeeDirectoriseligibletoreceiveanannualRSUawardwithagrantdatevalueof$170,000,whichwillvestinfullontheearlieroffirstanniversaryofthedateofgrantortheannualshareholdermeeting.TheamountoftheRSUawardwasincreasedfrom$145,000to$170,000effectiveOctober1,2019basedonthemarketstudyregardingdirectorcompensationnotedabove.Allawardsgrantedin2019weregrantedunderour2018OmnibusNon-EmployeeDirectorShareandCashIncentivePlan.
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Thetablebelowsummarizesthecompensationofeachdirector(otherthanMr.White)in2019.
Name Fees Earned or Paid
in Cash Stock Awards(1) Total JonathanCoslet — — —TimothyDattels — — —QiChen — — —LincolnPan — — —RajeevRuparelia — — —BillieWilliamson $ 105,000 $ 170,000 $275,000JodieMcLean $ 88,750 $ 170,000 $258,750MichelleMacKay $ 86,944 $ 170,000 $256,944RichardMcGinn $ 52,088 $ 170,000 $222,088
(1) Thecolumntitled“StockAwards”reportsthefairvalueoftheRSUawardstotheNon-EmployeeDirectorsattheirgrantdatesin2019calculatedinaccordance
withFinancialAccountingStandardsBoardAccountingStandardsCodificationTopic718.Fortheassumptionsusedinvaluingtheseawardsforpurposesofcomputingthisexpense,pleaseseeNote12oftheconsolidatedfinancialstatementsinourAnnualReportonForm10-KfortheyearendedDecember31,2019.
CEO Pay RatioInAugust2015,pursuanttotheDodd-FrankWallStreetReformandConsumerProtectionAct,theSECadoptedarulerequiringannualdisclosureoftheratioofthemedianemployee’sannualtotalcompensationtothetotalcompensationoftheprincipalexecutiveofficer(“PEO”).TheCompany’sPEOisourCEO.TheCompanyispresentingtherequireddisclosureasfollows:
Wehadapproximately45,950full-time,part-timeandseasonalemployeesasofDecember31,2019.Forpurposesofthisdisclosure,weexcludedthepopulationoftheworkforcethatarenotconsideredemployeesoftheCompanyunderapplicablelocalregulations.UnderthedeminimisexemptionoftheSECrule,weexcludedapproximately5%ofourinternationalpopulationbyexcludingemployeepopulationsinthefollowingjurisdictions:Brazil(1,565),Colombia(49),Malaysia(28),Mexico(320),Philippines(142),Thailand(158),andTurkey(37).AsofDecember31,2019,approximately19,651ofouremployeeswerelocatedoutsideoftheUnitedStates.
WeidentifiedourmedianasofDecember31,2019utilizingbasepayearningsfortheprevious12-monthperiodforthepopulationofemployeesdescribedabove.Weemployedstatisticalsamplingtoidentifyagroupofemployeeswithin2.5%ofthemedian,thenselectedthemedianemployeefromthisgroup.Ourmedianemployeeisafull-timeemployeelocatedintheUnitedStates.Wedeterminedthisperson’stotalcompensation,calculatedinaccordancewithItem402(c)ofRegulationS-K,was$54,107,whichincludesbase,bonusandcompany401(k)match.BaseduponthismethodologyandtheCEO’stotalcompensationof$9,252,912,assetforthintheSummaryCompensationTable,weestimatetheratioofourCEOpaytothemedianworker’spayis171:1.
TheSECrequirementsforidentifyingthemedianemployeeandcalculatingthepayratiobasedonthatemployee’sannualtotalcompensationallowcompaniestoadoptavarietyofmethodologies,toapplycertainexclusions,andtomakereasonableestimatesandassumptionsthatreflecttheircompensationpractices.Accordingly,thepayratioreportedbyothercompaniesmaynotbecomparabletothepayratioreportedbyus.
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DIRECTORS AND EXECUTIVE OFFICERSWehaveprovidedbelowsummarybiographiesofourdirectors(otherthanourdirectornomineeswhosebiographiesappearunderProposal1)andexecutiveofficers.
Directors
Qi ChenAge:43Class I DirectorMs.ChenwasappointedtotheboardofdirectorsofCushman&Wakefieldin2014.Ms.ChenisaPartneratPAGAsiaCapital(“PAG”)whereshefocusesoninvestmentsinfinancialservicesandcross-bordertransactions.PriortojoiningPAGin2011,sheworkedatTPGCapitalfrom2006to2011.ShealsoworkedinMorganStanley’sinvestmentbankingdivisionandBostonConsultingGrouppreviously.SheholdsaB.A.fromPekingUniversityandanM.B.A.fromtheKelloggSchoolofManagement,NorthwesternUniversity.
Qualifications, Attributes and Skills:Extensivemanagementandboardofdirectorexperience;expertiseincross-marketandglobaloperations;broadmarketexpertiseandunderstandingofthemarkets.
Jonathan CosletAge:55Class I DirectorMr.CosletwasappointedtotheboardofdirectorsofCushman&Wakefieldin2018.Mr.CosletisaSeniorPartnerofTPGGlobalLLC(“TPG”).Mr.Cosletisalsoamemberofthefirm’sInvestmentCommitteeandManagementCommittee.PriortojoiningTPG,heworkedatDonaldson,Lufkin&Jenrette,andbeforethat,atDrexelBurnhamLambert,wherehestartedhiscareer.Mr.CosletpreviouslyservedontheboardofdirectorsofBiomet,Inc.,IASISHealthcareLLC,QuintilesIMSHoldings,Inc.,QuintilesTransnationalHoldingsInc.,PETCOAnimalSupplies,Inc.andNeimanMarcusGroup,Inc.HecurrentlyservesontheboardsofLifeTimeFitness,Inc.,IQVIAHoldingsInc.,andontheStanfordMedicalAdvisoryCouncilandtheStanfordInstituteforEconomicPolicyResearchAdvisoryBoard,andheservesasaTrusteeforMenloSchool.Mr.CosletholdsaB.S.ineconomicsandfinancefromtheWhartonSchooloftheUniversityofPennsylvaniaandanM.B.A.fromHarvardBusinessSchool.
Qualifications, Attributes and Skills:Morethan25yearsofexperienceinadvisingandgrowingcompanies;extensivemanagementandboardofdirectorexperience;andfinancebackground.
Timothy DattelsAge:62Class III DirectorMr.DattelswasappointedtotheboardofdirectorsofCushman&Wakefieldin2018.Mr.DattelsisCo-ManagingPartnerofTPGCapitalAsia.PriortojoiningTPGin2004,heservedasaPartnerandManagingDirectorofGoldman,Sachs&Co.Mr.DattelsservesorhasservedontheboardofdirectorsofBlackBerryLtd.,ParkwayHoldingsLtd.,Primedia,Inc.,Shangri-LaAsiaLtd.andSingTaoNewsCorporationLtd.andservesasatrusteeofJacksonLaboratoryandViceChairmanofSFJazz.HeholdsaB.A.inbusinessadministrationfromtheUniversityofWesternOntarioandanM.B.A.fromHarvardBusinessSchool.
Specific Qualifications, Attributes and Skills:TheBoardbelievesthatMr.DattelsbringssignificantmanagementandglobaloperationalexpertisetotheBoard.
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Lincoln PanAge:43Class III DirectorMr.PanwasappointedtotheboardofdirectorsofCushman&Wakefieldin2017.Mr.PanisaPartneratPAG.PriortojoiningPAG,hewasaRegionalCEOforWillisTowersWatson.Mr.PanhasalsopreviouslyworkedatAdvantagePartners,GECapitalandMcKinsey&Company.HeholdsaB.A.inhistoryandenglishfromWilliamsCollegeandaJ.D.fromHarvardLawSchool.
Specific Qualifications, Attributes and Skills:TheBoardbelievesthatMr.PanbringsextensiveexperiencedrivingbusinessdevelopmentandexpansiontotheBoard.
Rajeev RupareliaAge: 44Class III DirectorMr.RupareliawasappointedtotheboardofdirectorsofCushman&Wakefieldin2014.Mr.RupareliahasservedasaManagingDirectoratOTPPsinceApril2019.From2008toApril2019,heservedasaDirectoratOTPP.PriortojoiningOTPPin2008,heworkedininvestmentbankingatCreditSuisseGroup(NewYork),ininvestmentsatCadillacFairview(OTPP’swhollyownedrealestatesubsidiary)andinthecorporatefinancegroupatDeloitte&ToucheLLP.Mr.RupareliaisalsoanobserverontheboardofCowayCo.,Ltd.HeholdsaB.A.ineconomicsfromWilfridLaurierUniversityandanM.B.A.fromtheRotmanSchoolofManagementattheUniversityofToronto.
Specific Qualifications, Attributes and Skills:TheBoardbelievesthatMr.RupareliabringssignificantexperienceinthemanagementofcomplexorganizationsandskillsinstrategicplanningtotheBoard.
Executive Officers
Duncan J. PalmerAge:54Executive Vice President and Chief Financial OfficerMr.PalmerisourExecutiveVicePresidentandChiefFinancialOfficerandhasservedinsuchcapacitysince2014.PriortojoiningCushman&Wakefield,from2012until2014,Mr.PalmerservedasGroupFinanceDirectorofRELXGroupplc,aleadingproviderofprofessionalinformationsolutionstothescience,medical,legal,riskmanagementandbusiness-to-businesssectorsanditsparentcompanies.From2007to2012,Mr.PalmerwastheSeniorVicePresident,ChiefFinancialOfficerofOwensCorning,Inc.,whichmarketsbuildingmaterialsandcompositesystems.Mr.Palmerpreviouslyspent20yearswithRoyalDutch/ShellGroup,whereheheldpositionsofincreasingresponsibilityintheU.K.,theNetherlandsandtheU.S.,includingVicePresident,UpstreamCommercialFinance,forShellInternationalExplorationandProductionBVandVicePresident,Finance,GlobalLubricants,fortheRoyalDutchShellGroupofCompanies.Mr.PalmerhasservedontheboardofdirectorsofOshkoshCorporationsince2011.HeholdsanM.A.fromCambridgeUniversityandanM.B.A.fromtheStanfordGraduateSchoolofBusiness.HeisaFellowofthe(U.K.)CharteredInstituteofManagementAccountants.
John ForresterAge: 57Executive Vice President and Global PresidentMr.ForresterisourExecutiveVicePresidentandGlobalPresidentandhasservedinsuchcapacitysinceDecember2017.Priortohiscurrentrole,Mr.ForresterwasChiefExecutive,EMEAatCushman&Wakefield,arolehepreviouslyheldatDTZGroup,ourpredecessorfirm.Mr.ForresterwasalsopreviouslyGroupChiefExecutiveofDTZHoldingsplc.HejoinedDTZGroupinSeptember1988.Mr.ForresterisamemberoftheBoardofManagementandManagementExecutivefortheBritishCouncilforOfficesandhaspreviouslyservedasitsPresident.HeisatrusteeoftheGeffryeMuseum.Mr.ForresterholdsaB.S.inUrbanEstateSurveyingandisaFellowoftheRoyalInstitutionofCharteredSurveyors.
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Michelle MacKayAge:53Chief Operating OfficerMs.MacKayisourChiefOperatingOfficerandhasservedinsuchcapacitysinceMarch2020.Priortohercurrentrole,Ms.MacKayservedasamemberofourBoardsince2018.PriortojoiningourBoard,Ms.MacKaywasmostrecentlyaSeniorAdvisortoiStarfrom2017to2018,andpreviouslyservedasiStar’sExecutiveVicePresidentofInvestmentsfrom2003to2017.PriortoiStar,sheservedasanExecutiveDirectorandasaseniormemberoftheCommercialRealEstateInvestmentCommitteeatUBS.Ms.MacKayalsoservesorhasservedontheboardsofdirectorsofAmericoldRealtyTrustandWCICommunities,Inc.SheholdsaB.A.fromtheUniversityofConnecticutandanM.B.A.fromtheUniversityofHartford.
Brett SolowayAge:51Executive Vice President, General Counsel and Corporate SecretaryMr.SolowayisExecutiveVicePresident,GeneralCounselandCorporateSecretaryandhasservedinsuchcapacitysince2014.PriortojoiningCushman&Wakefield,Mr.SolowayledateamforTheHomeDepot,Inc.thatwasresponsibleforalllegalmattersrelatingtonewstoreanddistributioncenterdevelopment,operationsandpropertymanagementactivitiesintheU.S.,Canada,Mexico,ChinaandIndia.Earlierinhiscareer,Mr.SolowayservedasVicePresidentandGeneralCounselforRedSealDevelopment,Inc.,andpracticedlawatKirkland&EllisandRudnick&Wolfe.HereceivedaB.A.inpoliticalsciencefromtheUniversityofMichiganandaJ.D.fromtheUniversityofIllinois.
Nathaniel RobinsonAge:45Chief Investment Officer and Executive Vice President of Strategic PlanningMr.RobinsonisourChiefInvestmentOfficerandExecutiveVicePresidentofStrategicPlanningandhasservedinsuchcapacitysince2018.Priortohiscurrentrole,Mr.RobinsonwasourSVP,CorporateDevelopmentsincejoiningtheCompanyin2016.PriortojoiningCushman&Wakefield,Mr.RobinsonwasanInvestmentPartneratVirgoCapitalwherehefocusedonmakingnewplatforminvestmentsanddevelopingstrategicinitiativesforthefirm’sportfoliocompanies.Mr.RobinsonalsopreviouslyworkedinMorganStanley’sGlobalTechnologyGroupandisaco-founderandformerchairmanofPhillyCarShare,whichwasacquiredbyEnterpriseHoldingsin2011.HeholdsaB.S.infinanceandaccountingfromDrexelUniversity,anM.P.P.fromHarvardUniversityandanM.B.A.fromDartmouthCollege.
Michelle HayAge:51Chief Human Resources OfficerMs.HayisourChiefHumanResourcesOfficerandhasservedinsuchcapacitysince2017.PriortojoiningCushman&Wakefield,Ms.HayservedasHeadofHRfortheAmericasatA.T.Kearney.ShealsopreviouslyservedasGlobalChiefHumanResourcesOfficeratHeitmanLLC,andpreviouslyheldHRconsultingpositionswithDeloitte&ToucheLLP,Ernst&YoungLLP,CapGeminiandCapitalHGroup.SheholdsaB.S.inpsychologyfromtheUniversityofHoustonandanM.B.A.fromtheUniversityofIllinoisatUrbana-Champaign.
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Len TexterAge:48Global Controller, Head of Investor Relations, Chief Accounting OfficerMr.TexterisourGlobalController(sincejoiningtheCompanyin2019),HeadofInvestorRelations(sinceNovember2019)andChiefAccountingOfficer(sinceFebruary2020).PriortojoiningCushman&Wakefield,Mr.TexterspentelevenyearsatGeneralCableCorporation,aglobalmanufacturingleaderindeveloping,designing&distributingwire&cableproducts.From2015to2018,Mr.TexterservedasSeniorVicePresidentFinance–GlobalController,FP&AandInvestorRelations.HewasappointedPrincipalAccountingOfficerin2016.From2007to2015,Mr.TexterheldpositionsofincreasingresponsibilityatGeneralCable,includingVicePresidentFinance–InvestorRelations&GlobalAnalyticsandFinanceDirector–InvestorRelationsandMergers&Acquisitions.Mr.TexterbeganhiscareerinaccountingandfinancewithDeloitte&Touchein2002intheauditandM&Apractices.HeholdsanMBAfromXavierUniversityandBSfromUniversityofDayton.HeisaCertifiedPublicAccountant(Inactive).
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PROPOSAL 6 ADVISORY VOTE ON DIRECTOR COMPENSATION REPORTInaccordancewiththeUKCompaniesAct,weareprovidingshareholderswiththeopportunitytovoteonanadvisoryresolutionapprovingthedirectorcompensationreportincludedasAnnexAtothisProxyStatement.ThisproposalissimilartoProposal5regardingthecompensationofourNamedExecutiveOfficers.However,thedirectorcompensationreportisconcernedsolelywiththecompensationofourexecutiveandnon-executivedirectorsandisrequiredundertheUKCompaniesAct.WeencourageshareholderstoreadthedirectorcompensationreportincludedasAnnexAtothisproxystatement.TheBoardandtheCompensationCommitteebelievethatthepoliciesandproceduresarticulatedinthedirectorcompensationreportareeffectiveinachievingourcompensationobjectives,andservetoattractandretainhigh-qualitydirectors.
Thisvoteisadvisoryonly,pursuanttotheUKCompaniesAct,andthedirectorentitlementtoreceivecompensationisnotconditionalonit.Paymentsmadeorpromisedtodirectorswillnothavetoberepaid,reducedorwithheldintheeventthattheresolutionisnotpassed.TheresolutionandvoteareameansofprovidingshareholderfeedbacktotheBoard.TheCompensationCommitteewillreviewandconsidertheoutcomeofthevoteinconnectionwiththeongoingreviewofourexecutivedirectorandnon-executivedirectorcompensationprograms.
Required Vote
Thisproposalwillbeapprovedifthenumberofvotescast“FOR”theproposalexceedthenumberofvotescast“AGAINST”theproposal.Abstentionsandbrokernon-votesarenotconsideredvotescastandwillnothaveanyeffectonthisproposal.Ifyouownsharesthroughabank,brokerorotherholderofrecord,youmustinstructyourbank,brokerorotherholderofrecordhowtovoteinorderforthemtovoteyoursharessothatyourvotecanbecountedonthisproposal.
Recommendation
Our Board recommends that shareholders vote “FOR” the proposal to approve our 2019 DirectorCompensation Report.
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SECURITY OWNERSHIPThefollowingtablebelowsetsforthinformationasofthecloseofbusinessonApril23,2020regardingthebeneficialownershipofourordinarysharesby:(i)eachpersonorgroupwhoisknownbyustoownbeneficiallymorethan5%ofouroutstandingordinaryshares;(ii)eachofourcurrentdirectorsandeachnomineefordirectortoourBoard;(iii)eachofourexecutiveofficers;and(iv)allcurrentdirectors,directornomineesandcurrentexecutiveofficersasagroup.Unlessotherwisenoted,thebeneficialownersexercisesolevotingand/orinvestmentpowerovertheirshares.
BeneficialownershipisdeterminedinaccordancewiththerulesandregulationsoftheSEC.Theserulesgenerallyprovidethatapersonisthebeneficialownerofsecuritiesifsuchpersonhasorsharesthepowertovoteordirectthevotingthereof,ortodisposeordirectthedispositionthereoforhastherighttoacquiresuchpowerswithin60days.Allpercentagesinthetablebelowarebasedon220,294,905sharesofordinarysharesoutstandingasofApril23,2020.
Unlessotherwisenoted,theaddressofeachbeneficialownerisc/oCushman&Wakefield,225WestWackerDrive,Chicago,Illinois60606. Shares Beneficially Owned Name and Address of Beneficial Owner Number Percent 5% Stockholders TPGFunds(1) 47,709,929 21.7%FundsaffiliatedwithPAGAsiaCapital(2) 47,134,892 21.4%OntarioTeachers’PensionPlanBoard(3) 14,634,825 6.6%FMRLLC(4) 18,591,789 8.4%TheVanguardGroup(5) 13,817,136 6.3%JPMorganChase&Co(6) 12,743,407 5.8%Named Executive Officers and Directors:
BrettWhite(7) 1,249,462 *DuncanPalmer(8) 467,331 *BrettSoloway(9) 138,615 *JohnForrester(10) 523,718 *NathanielRobinson 41,981 *JonathanCoslet — —TimothyDattels — —QiChen — —LincolnPan — —RichardMcGinn(11) 9,780 —JodieMcLean(11) 14,983 *RajeevRuparelia — —BillieWilliamson(11) 17,152 *
All Executive Officers and Directors as a group (16 Persons)(12) 2,497,041 1.1%* Representsbeneficialownershipoflessthan1%.(1) TheTPGFunds(asdefinedbelow)holdanaggregateof47,709,929ordinaryshares(the“TPGShares”),ofwhich32,357,616areheldbyTPGDrone
Investment,L.P.,aCaymanlimitedpartnership,and14,082,767areheldbyTPGDroneCo-Invest,L.P.,aCaymanlimitedpartnership(together,the“TPGFunds”).ThegeneralpartnerofeachoftheTPGFundsisTPGAsiaAdvisorsVI,Inc.,aDelawarecorporation(“TPGAsiaAdvisorsVI”).DavidBondermanandJamesG.CoulteraresoleshareholdersofTPGAsiaAdvisorsVIandmaythereforebedeemedtobethebeneficialownersoftheTPGShares.Messrs.BondermanandCoulterdisclaimbeneficialownershipoftheTPGSharesexcepttotheextentoftheirpecuniaryinteresttherein.TheaddressofeachofTPGAsiaAdvisorsVIandMessrs.BondermanandCoulterisc/oTPGGlobal,LLC,301CommerceStreet,Suite3300,FortWorth,TX76102.
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(2) Consistsofordinaryshares(the“PAGAsiaCapitalShares”)heldbyPAGACDroneHoldingILP,aCaymanlimitedpartnership(“PAGACDroneLP”).ThegeneralpartnerofPAGACDroneLPisPAGACDroneHoldingGPILimited,aCaymanexemptedlimitedcompany.AsdirectorsofPAGACDroneHoldingGPILimited,Messrs.JonRobertLewis,DavidJaeminKim,NoelPatrickWalshandOliverMorrishavebeendelegated,inaccordancewithcertainproxyvotingguidelines,theauthoritytoimplementvotingdecisionsandtheauthoritytoimplementdispositiondecisionswithrespecttosharesindirectlyheldbyPAGACDroneHoldingGPILimited,includingtheCompany’s47,134,892ordinaryshares.EachofMessrs.Lewis,Kim,WalshandMorrisexpresslydisclaimsbeneficialownershipofsuchshares.ThecorrespondenceaddressofPAGACDroneHoldingGPILimitedis32/F,AIACentral,1ConnaughtRoadCentral,HongKong.
(3) ConsistsofordinarysharesheldbyOTPP.ThePresidentandChiefExecutiveOfficerofOTPPhasdelegatedtoeachofMessrs.RajeevRupareliaandWei
BengChanandMs.SarahJaneRoweauthoritytoimplementdispositiondecisionswithrespecttosharesheldbyOTPP;however,approvalofsuchdecisionsismadebyseniorpersonnelwithintheprivatecapitalgroupofOTPPinaccordancewithinternalportfolioguidelines.VotingdecisionsaremadebypersonnelwithinthepublicequitiesgroupofOTPPinaccordancewithinternalproxyvotingguidelines.Assuch,eachofMessrs.RupareliaandChanandMs.Roweexpresslydisclaimsbeneficialownershipofsuchshares.TheaddressofOTPPis5650YongeStreet,Toronto,OntarioM2M4H5.
(4) RepresentssharesbeneficiallyownedbyFMRLLC,245SummerStreet,BostonMA02210.TheforegoinginformationisbasedsolelyonaSchedule13Gfiled
byFMRLLCwiththeSEConFebruary7,2020.(5) RepresentssharesbeneficiallyownedbyTheVanguardGroup,100VanguardBlvd.,Malvern,PA19355.Theforegoinginformationisbasedsolelyona
Schedule13GfiledbyTheVanguardGroupwiththeSEConFebruary11,2020.(6) RepresentssharesbeneficiallyownedbyJPMorganChase&Co.,383MadisonAvenue,NewYork,NY10179.Theforegoinginformationisbasedsolelyona
Schedule13GfiledbyJPMorganChase&Co.withtheSEConJanuary22,2020.(7) Includes64,108ordinarysharestobeissueduponexerciseoffully-vestedoptionsand223,379restrictedstockunitsthatvestwithin60daysofApril23,2020.(8) Includes389,500ordinarysharestobeissueduponexerciseoffully-vestedoptions.ThesharesandoptionsareheldofrecordbytheDuncanPalmerRevocable
TrustU/A/D10/16/17ofwhichMr.Palmeristhetrustee.(9) Includes66,000ordinarysharestobeissueduponexerciseoffully-vestedoptions.(10) Includes400,000ordinarysharestobeissueduponexerciseoffully-vestedoptions.(11) Includes9,780restrictedstockunitsthatvestwithin60daysofApril23,2020.(12 Includesanaggregate939,216ordinarysharestobeissueduponexerciseoffully-vestedoptionsand223,379restrictedstockunitsthatvestorsettlewithin60
daysofApril23,2020.
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CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONSThefollowingisasummaryofmaterialprovisionsofvarioustransactionswehaveenteredintowithourexecutiveofficers,boardmembersor5%orgreatershareholdersandtheiraffiliatessinceJanuary1,2019.Webelievethetermsandconditionsintheseagreementsarereasonableandcustomaryfortransactionsofthesetypes.
Pursuanttoourwrittenrelatedpartytransactionpolicy,ourAuditCommitteeisresponsibleforevaluatingeachrelatedpartytransactionandmakingarecommendationtothedisinterestedmembersofourBoardastowhetherthetransactionatissueisfair,reasonableandwithinourpolicyandwhetheritshouldberatifiedandapproved.TheAuditCommittee,inmakingitsrecommendation,considersvariousfactors,includingthebenefitofthetransactiontous,thetermsofthetransactionandwhethertheyareatarm’s-lengthandintheordinarycourseofourbusiness,thedirectorindirectnatureoftherelatedperson’sinterestinthetransaction,thesizeandexpectedtermofthetransactionandotherfactsandcircumstancesthatbearonthematerialityoftherelatedpartytransactionunderapplicablelawandlistingstandards.TheAuditCommitteereviews,atleastannually,asummaryofourtransactionswithourdirectorsandofficersandwithfirmsthatemployourdirectors,aswellasanyotherrelatedpersontransactions.
Shareholders’ Agreement; Registration Rights Agreement
Inconnectionwiththeclosingofourinitialpublicoffering,weenteredintotheShareholders’Agreement.See“CorporateGovernance–BoardComposition.”
Inconnectionwiththeclosingofourinitialpublicoffering,wealsoenteredintoaregistrationrightsagreement(the“RegistrationRightsAgreement”)withthePrincipalShareholdersandVankeService(HongKong)Co.,Limited(萬科物業服務(香港)有限公司),aHongKonglimitedcompany(“VankeService”).TheRegistrationRightsAgreementprovidesthePrincipalShareholderswithdemandrightsandthePrincipalShareholdersandVankeServicewithshelfregistrationrights.Inaddition,theRegistrationRightsAgreementprovidesthePrincipalShareholdersandVankeServicewithpiggybackregistrationrightsonanyregistrationstatement,otherthanonFormsS-4,S-8oranyothersuccessorform,tobefiledbytheCompany.Theseregistrationrightsaresubjecttocertainconditionsandlimitations,includingtherightoftheunderwriterstolimitthenumberofordinarysharestobeincludedinaregistrationstatementandourrighttodelayaregistrationstatementundercertaincircumstances.
UndertheRegistrationRightsAgreement,wehaveagreedtopaycertainexpensesrelatedtoanysuchregistrationandtoindemnifythePrincipalShareholdersandVankeServiceagainstcertainliabilitiesthatmayariseundertheSecuritiesAct.
March 2019 Public Offering of Ordinary Shares
OnMarch22,2019,theCompanyclosedanunderwrittensecondaryofferingof16,500,000ordinarysharesbycertainshareholders,includingTPGandOTPP,atapricetothepublicof$17.75pershare.InaccordancewiththeRegistrationRightsAgreement,theCompanypaidexpensesrelatedtothisofferinginanestimatedamountof$1,075,000,exclusiveoftheunderwritingdiscountsandcommissions.
November 2019 Public Offering of Ordinary Shares
OnNovember14,2019,theCompanyclosedanunderwrittensecondaryofferingof10,000,000ordinarysharesbycertainshareholders,includingaffiliatesofeachofthePrincipalShareholders,atapricetothepublicof$18.35pershare.InaccordancewiththeRegistrationRightsAgreement,theCompanypaidexpensesrelatedtothisofferinginanestimatedamountof$880,000,exclusiveoftheunderwritingdiscountsandcommissions.
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Certain Relationships
Fromtimetotime,wedobusinesswithothercompaniesaffiliatedwiththePrincipalShareholders.Webelievethatallsucharrangementshavebeenenteredintointheordinarycourseofbusinessandhavebeenconductedonanarms-lengthbasis.
Deeds of Indemnification and Appointment Letters
Wehaveenteredintoourstandardformofdeedofindemnityfordirectorswithallofourdirectors.Pursuanttothisagreement,weagreetoindemnifyeachdirectortothefullestextentpermissibleunderEnglishlawagainstliabilitiesarisingoutof,orinconnectionwith,theactualorpurportedexerciseof,orfailuretoexercise,anyofhisorherpowers,dutiesorresponsibilitiesasadirector,andtoadvanceexpensesincurredasaresultofanyproceedingagainsthimorherastowhichheorshecouldbeindemnified.Thisagreementdoesnotindemnifyadirectoragainstanyliabilityattachingtohimorherinconnectionwithanynegligence,default,breachofdutyorbreachoftrustinrelationtotheCompany.Wealsoagreetouseallreasonableendeavorstoprovideandmaintainappropriatedirectors’andofficers’liabilityinsurancetothefullestextentpermissibleunderEnglishlaw(includingensuringthatpremiumsareproperlypaid)forhisorherbenefitforsolongasanyclaimsmaylawfullybebroughtagainsthimorher.
Inconnectionthedirector’sappointmenttoourBoard,wealsoenteredintoourstandardformofletterofappointmentfornon-employeedirectorswitheachdirector.ThislettersetsforththemaintermsonwhichheorsheservesonourBoard.Continuedappointmentundertheletteriscontingentoncontinuedsatisfactoryperformance,re-nominationbytheNominatingandCorporateGovernanceCommitteeandapprovaloftheBoard,re-electionbytheshareholdersandanyrelevantstatutoryprovisionsandprovisionsofourArticlesofAssociationrelatingtoremovalofadirector.
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GENERAL INFORMATION ABOUT THE ANNUAL MEETINGVoting Instructions and InformationWhy did I receive these proxy materials?
WehavedeliveredprintedversionsofthenoticeofAnnualMeetinginthisproxystatement,proxycards,theCushman&Wakefield2019AnnualReport,andourUKAnnualReportandStatutoryAccountsfortheyearendedDecember31,2019(the“proxymaterials”)toourshareholdersofrecordandbeneficialholdersofoursharesasoftherecorddate,inconnectionwiththesolicitationofproxiesforuseattheAnnualMeeting,oratanyadjournmentorpostponementthereof.
Inaddition,wehaveprovidedbrokers,dealers,bankers,votingtrusteesandtheirnominees,atourexpense,withadditionalcopiesoftheproxymaterialssothatourshareholdersofrecordcan,asneeded,supplythesematerialstothebeneficialownersofsharesasoftherecorddate.
Copiesoftheproxymaterialshavealsobeensupplied,atourexpense,toComputershareTrustCompany,N.A.(the“Depositary”)forordinarysharesthatcouldnotbedepositedwithTheDepositoryTrustCompany(“DTC”)attheclosingoftheCompany’sinitialpublicofferingandhavenotbeensubsequentlytransferred.TheDepositarywill,asneeded,supplythesematerialstothebeneficialownersofthedepositaryreceiptsasoftherecorddate.EachdepositaryreceiptrepresentsoneordinaryshareinourCompany.TheuseoftheDepositaryallowsfortheordinarysharestobeheldintheDepositaryinitiallyandsubsequentlytransferredintoDTCwithouttheapplicationofU.K.stampdutyorstampdutyreservetax(“SDRT”),providedcertainconditionsaremet.
Will any other matters be decided at the Annual Meeting?
Asofthedateofthisproxystatement,wedonotknowofanyothermatterstoberaisedattheAnnualMeetingotherthanthosedescribedinthisproxystatement.Ifanyothermattersare,inaccordancewiththeUKCompaniesAct,otherapplicablelaworourarticlesofassociation,properlypresentedforconsiderationattheAnnualMeeting,suchmatterswill,subjecttotheUKCompaniesAct,articlesofassociationandapplicablelaw,beconsideredattheAnnualMeetingandtheindividualsnamedintheproxycardwillvoteonsuchmattersintheirdiscretion.
What is the difference between holding ordinary shares as a shareholder of record, as a beneficial owner and holder of depositaryreceipts?
IfashareholderisregisteredontheregisterofmembersoftheCompanyinrespectofordinaryshares,theyareconsidered,withrespecttothoseordinaryshares,theshareholderofrecord.AsofApril23,2020,beingthelatestpracticabledatepriortopublicationofthisproxystatement,ourshareholdersofrecordwereCede&Co.,thenomineeforDTC,andGTUOpsInc.,thenomineeforComputershareTrustCompanyN.A.,asdepositary,forordinarysharesthatcouldnotbedepositedwithDTCasoftheclosingoftheCompany’sinitialpublicoffering.
Ifyourordinarysharesareheldforyouinastockbrokerageaccountorbyabroker,bankorothernominee,youareconsideredthebeneficialownerofsharesheldinstreetname,andtheseproxymaterialsarebeingmadeavailableorforwardedtoyoubyyourbroker,bankorothernomineethroughwhomyouholdtheordinaryshares.Asthebeneficialowner,youhavetherighttodirectyourbroker,bankorothernomineeonhowtovoteyourordinarysharesbyfollowingtheinstructionsforvotingontheproxycard.
IfyouholddepositaryreceiptsthroughtheDepositary,theseproxymaterialsarebeingmadeavailableorforwardedtoyoubytheDepositary.BecauseeachdepositaryreceiptrepresentsoneordinaryshareinourCompany,youhavetherighttodirecttheDepositaryonhowtovoteyourdepositaryreceiptsbyfollowingtheinstructionsforvotingonyourproxycard.
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Inordertobecomeashareholderofrecordofordinaryshares,abeneficialownerwhoseordinarysharesaredepositedwithDTCoraredepositedwiththeDepositary,wouldneedtotakestepstowithdrawtherelevantordinarysharesfromtheDTCsystemortheDepositary’scustody,asapplicable.BeneficialownersareremindedthatanytransferoftheordinarysharesoutoftheDTCsystemortheDepositary,asapplicable,willgenerallybesubjecttoUKstampdutyorSDRTatarateof0.5%ofanyconsideration,whichispayablebythetransfereeoftheordinaryshares(i.e.,anythirdpartyintowhosenametheordinarysharesaretransferred).However,wherenoconsiderationisgivenforthetransferoftheordinarysharesoutoftheDTCsystemortheDepositary,asapplicable(i.e.,wherebeneficialownershipoftheordinarysharesisnotchangingandthereisnothird-partypayingconsiderationfortheordinaryshares),nochargetoUKstampdutyorSDRTshouldarise.Inaddition,ifsuchordinarysharesaresubsequentlyredepositedintotheDTCsystem,theredepositwillattractUKstampdutyorSDRTatahigher1.5%rate.Beneficialownersare,therefore,stronglydiscouragedfromwithdrawingtheirordinarysharesfromtheDTCsystemortheDepositary,asapplicable.
What is “householding” and how does it affect me?
Wehaveadoptedaprocedurecalled“householding,”whichtheSEChasapproved.Underthisprocedure,wedeliverasinglecopyofourproxymaterialstomultipleshareholderswhosharethesameaddressunlesswehavereceivedcontraryinstructionsfromoneormoreoftheshareholders.Thisprocedurereducesourprintingcosts,mailingcostsandfees.Shareholderswhoparticipateinhouseholdingwillcontinuetobeabletoaccessandreceiveseparateproxycards.Uponwrittenororalrequest,wewilldeliverpromptlyaseparatecopyofourproxymaterialstoanyshareholdersatasharedaddresstowhichwedeliveredasinglecopyofanyofthesematerials.Toreceiveaseparatecopy,or,ifashareholderisreceivingmultiplecopies,torequestthatweonlysendasinglecopyofourproxymaterials,suchshareholdermaywritetoCushman&Wakefieldplc,c/oBrettSoloway,ExecutiveVicePresident,GeneralCounselandCorporateSecretary,225WestWackerDrive,Chicago,Illinois60606.Shareholderswhobeneficiallyownordinarysharesheldinstreetnamemaycontacttheirbrokeragefirm,bank,broker-dealerorothersimilarorganizationtorequestinformationabouthouseholding.
Who is entitled to vote at the Annual Meeting?
ShareholdersofrecordandbeneficialholdersasoftherecorddateareentitledtovoteattheAnnualMeeting.Pleasenotethefollowingspecialcases:
Beneficialownersofordinarysharesasoftherecorddatehavetherighttodirecttheirbrokerorotheragentonhowtovotetheordinarysharesintheiraccount.Asbeneficialownersarenotshareholdersofrecordoftherelevantordinaryshares,theymaynotvotetheirordinarysharesattheAnnualMeetingunlesstheyrequestandobtainalegalproxyfromtheirbrokeroragent.DuetotheCOVID-19Pandemic,shareholders(includingbeneficialowners)arestronglydiscouragedfromattendingtheAnnualMeetinginperson,andshareholdersarecautionedthatsuchattendancemaynotbesafeorlawful.Instead,beneficialownersareencouragedtodirecttheirbrokerorotheragentonhowtovotetheordinarysharesintheiraccount.
HoldersofdepositaryreceiptsasoftherecorddatemayinstructtheDepositaryastohowtoexercisethevotesattachingtotheordinarysharesunderlyingsuchdepositaryreceiptsbycompletingtheproxycardandfollowingtheinstructionsfurnishedbytheDepositary.AftertheDepositaryhasreceivedinstructionsonhowtovoteontheproposalsfromtheholdersofdepositaryreceipts,itwillcompleteanomnibusproxycardreflectingsuchinstructionsandsendittothetransferagent.
What are the total voting rights in the Company?
AsofApril23,2020,beingthelastpracticabledatepriortothepublicationofthisproxystatement,therewere220,294,905ordinarysharesinissueandentitledtovote.EachordinaryshareisentitledtoonevoteoneachmatterproperlybroughtbeforetheAnnualMeeting.
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How do I vote if I am a shareholder of record?
IfyouareashareholderofrecordwhoisentitledtoattendandvoteattheAnnualMeeting,youmayvoteyourordinarysharesinpersonattheAnnualMeetingorappointanotherpersonorpersonsasyourproxytoexerciseanyorallofyourrightstoattendandtospeakandvoteattheAnnualMeeting.DuetotheCOVID-19Pandemic,shareholdersarestronglydiscouragedfromattendingtheAnnualMeetinginperson,andshareholdersarecautionedthatsuchattendancemaynotbesafeorlawful.Ifyouintendtovoteinperson,youmustpresentgovernment-issuedidentification.YoumayappointmorethanoneproxyinrelationtotheAnnualMeeting(providedthateachproxyisappointedtoexercisetherightsattachedtoadifferentordinaryshare(s)).Suchproxyneednotbeashareholderofrecord,butmustattendtheAnnualMeetingtorepresentyouandmustvoteasyouinstructforyourvotetobecounted.
Youmayappointaproxytovoteonyourbehalfusingoneofthefollowingmethods:
• byreturningtheproxycard,orotherinstrumentappointingaproxy,completedinaccordancewiththeinstructionsthereinandsignedtotheaddressprovidedwiththeproxycardmailing.
• bysubmissionviatheinternetbygoingtowww.investorvote.com/CWKandfollowingtheinstructionsprovided;
• bytelephone,usingthenumbershownonthenoticeorproxycard;or
• duringtheAnnualMeeting,youmaysubmitaballot.
Tobeeffective,theproxyappointmentmustbereceivedby11:59p.m.(EasternTime)onJune9,2020.
Pleasesigntheproxycardexactlyasyournameappearsonthecard.Ifashareholderofrecordisacorporation,limitedliabilitycompanyorpartnership,theproxycardshouldbesignedinthefullcorporate,limitedliabilitycompanyorpartnershipnamebyadulyauthorizedperson.Iftheproxycardissignedpursuanttoapowerofattorneyorbyanexecutor,administrator,trusteeorguardian,pleasestatethesignatory’sfulltitleandprovideacertificateorotherproofofappointment.Inthecaseofjointholders,thevoteoftheseniorholderwhotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevotesoftheotherjointholdersandseniorityshallbedeterminedbytheorderinwhichthenamesoftheholdersstandintheregisterofmembers.
Thereturnofacompletedproxycard,orthesubmissionofproxyinstructionsviatheinternetorbytelephone,willnotpreventashareholderofrecordfromattendingandvotingattheAnnualMeeting.IfyouhaveappointedaproxyandattendtheAnnualMeetingandvoteinperson,yourproxyappointmentwillautomaticallybeterminated.
Ifyouproperlygiveinstructionsastoyourproxyappointmentbyexecutingandreturningapaperproxycardorthroughtheinternetorbytelephone,andyourproxyappointmentisnotsubsequentlyrevoked,yourordinaryshareswillbevotedinaccordancewithyourinstructions.
Ifyouareashareholderofrecordandyouexecuteandreturnaproxycard,butdonotgiveinstructions,yourproxywillbevotedFOReachoftheproposals.
Ifyouhavenotreceivedaproxycardandbelievethatyoushouldhaveone,pleasecontactyourbroker,bankorothernomineeformoreinformationifyouareabeneficialholderofordinarysharesdepositedinDTC.
How do I vote if I am a beneficial owner?
Ifyouareabeneficialowner,youshouldfollowthedirectionsprovidedbyyourbroker,bankorothernominee.Youmaysubmitinstructionsbytelephoneorthroughtheinternettoyourbroker,bankorothernominee,orrequestandreturnapaperproxycardtoyourbroker,bankorothernominee.
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How do I vote if I am a holder of depositary receipts?
Ifyouareaholderofdepositaryreceipts,youshouldfollowtheinstructionsontheformofproxycardfurnishedtoyoubytheDepositary.AftertheDepositaryhasreceivedinstructionsastohowtovoteontheresolutionsfromthedepositaryreceiptholders,itwillthencompleteanomnibusproxycardreflectingsuchinstructions.
How is a quorum determined?
ThepresenceoftheholdersofrecordofsharesintheCompanywhotogetherrepresentatleastthemajorityofthevotingrightsofalltheshareholdersofrecordentitledtovote,presentinpersonorbyproxy,attheAnnualMeetingisnecessarytoconstituteaquorum.DuetotheCOVID-19Pandemic,weexpectthatvirtuallyallshareholderswillberepresentedbyproxy.Abstentionsandbrokernon-voteswillbecountedaspresentandentitledtovoteforthepurposesofdeterminingaquorumattheAnnualMeeting.
How many votes are required to approve each proposal?
EachproposalscheduledtobevotedonattheAnnualMeetingwillbeproposedasanordinaryresolutionandrequirestheaffirmativevoteofasimplemajorityofthevotescastattheAnnualMeetinginpersonorbyproxy.Abstentionsandbrokernon-votesarenotconsidered“votescast”anddonothaveanyeffectontheoutcomeofthevote.ItisimportanttonotethatvotesonProposals5,6and7arenon-bindingandadvisory.Therefore,theCompanyand/ortheBoardmaydeterminetoactinamannerinconsistentwiththeoutcomesofsuchvotes.However,theBoardvaluestheopinionsoftheCompany’sshareholdersasexpressedthroughtheiradvisoryvotesand,accordingly,theBoardintendstoreviewandconsiderthevotingresultsonsuchresolutions.
How does the Board recommend that I vote?
TheBoardrecommendsthatyouvote“FOR”eachofthedirectornomineesinProposal1and“FOR”eachofProposals2-6.
What are “routine” and “non-routine” matters and what are “broker non-votes?
UndertherulesandinterpretationsoftheNewYorkStockExchange(whichbyextensionimposedbytheSECapplytoallUSbrokers),“non-routine”mattersaremattersthatmaysubstantiallyaffecttherightsorprivilegesofshareholders,suchasmergers,shareholderproposals,electionsofdirectors(evenifnotcontested)and,pursuanttoarecentamendmenttotherules,executivecompensation,includingadvisoryshareholdervotesonexecutivecompensationandonthefrequencyofshareholdervotesonexecutivecompensation.Theratificationoftheselectionoftheindependentregisteredpublicaccountingfirmisgenerallyconsideredtobe“routine”.
Brokers,banksorothernomineesgenerallyhavediscretionaryvotingpowerwithrespecttoroutinemattersandcanexercisewhatarecalled“brokernon-votes”.
Ifyouownyourordinarysharesthroughabank,brokerorothernomineeandyoudonotprovidethemwithspecificvotinginstructions,thebank,brokerornomineeispermittedtocastabrokernon-vote,butonlyonnon-routinematters.AtourAnnualMeeting,theymayonlycastbrokernon-voteswithrespecttotheratificationoftheselectionoftheindependentregisteredpublicaccountingfirm.AllotherproposalsbeingconsideredattheAnnualMeetingareconsideredtobenon-routinematters.Brokers,banksandothernomineesmaynotvoteonyourbehalfonthesemattersunlessyouhaveprovidedinstructionsfromyouonhowtovoteyourshares.
Brokernon-voteswillbecountedforthepurposeofdeterminingwhetheraquorumispresentattheAnnualMeeting.
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What are the voting requirements to approve the resolutions?
Inaccordancewithourarticlesofassociation,allresolutionswillbetakenonapoll.Votingonapollwillmeanthateachsharerepresentedinpersonorbyproxymaybevoted“for”or“against”aparticularresolution,ormayabstainfromvotingwithrespecttoaparticularresolution.Pleaseseethediscussionundereachproposalforadetailedexplanationofthevotingrequirementforeachproposal.
Can I change my vote or revoke my proxy?
If you are a shareholder of record,youcanchangehowyouwishtoinstructtheproxytovoteorrevokeyourproxyatanytimebeforetheAnnualMeeting,by:
• deliveringavalid,later-datedproxycardpriortothecut-offtimeforreceiptofproxies,inwhichcaseyourlater-submittedproxywillberecordedandyourearlierproxyrevoked.Anylater-datedproxycardreceivedaftertherelevantcut-offtimewillbedisregarded;
• amendingyourinternetortelephoneproxyinstructionpriortothecut-offtimeforreceiptofproxies,wherebyyouroriginalinstructionwillbesuperseded.Anyamendedproxyinstructionreceivedaftertherelevantcut-offtimewillbedisregarded;
• sendingwrittennoticetotheofficeoftheCompanySecretaryattheCompany’sregisteredoffice,whichmustbereceivedatleast24hourspriortothestartoftheAnnualMeeting;or
• votingonthepollinpersonattheAnnualMeeting(however,duetotheCOVID-19Pandemic,shareholdersarestronglydiscouragedfromexercisingthisoptionatour2020AnnualMeeting).
If you are a beneficial owner of ordinary shares,youmaysubmitnewproxyappointmentinstructionsbycontactingyourbroker,bankorothernominee.YoumayalsovoteinpersonattheAnnualMeetingifyouobtainalegalproxy(however,duetotheCOVID-19Pandemic,shareholdersarestronglydiscouragedfromexercisingthisoptionatour2020AnnualMeeting).Youmayalsochangeyourvoteonline.
If you are a holder of depositary receipts,youmaysubmitanewproxycardbyfollowingtheinstructionspreviouslysetout,atanytimepriorto11:59a.m.(EasternTime)onJune8,2020.
AllordinarysharesthathavebeenproperlyvotedandnotrevokedwillbecountedinthevotesheldontheresolutionsproposedattheAnnualMeeting.AttendingtheAnnualMeetingwithouttakingfurtheractionwillnotautomaticallyrevokeyourpriorproxy.
Wewillhonortheproxywiththelatestdate.However,norevocationwillbeeffectiveunlesswereceivenoticeofsuchrevocationatorpriortothedeadlinesmentionedabove.Forthoseshareholderswhosubmitaproxyelectronicallyorbytelephone,thedateonwhichtheproxyissubmittedinaccordancewiththeinstructionslistedontheproxycardisthedateoftheproxy.
Can I attend the Annual Meeting in person?
Shareholders of record on the record datemayattendtheAnnualMeeting,howeverduetotheCOVID-19Pandemic,shareholdersarestronglydiscouragedfromattendingtheAnnualMeetinginperson,andshareholdersarecautionedthatsuchattendancemaynotbesafeorlawful.Ifyouareashareholderofrecord,youwillneedtopresenttheproxycardthatyoureceived,togetherwithaformofpersonphotoidentification,inordertobeadmittedintothemeeting.OurArticlesofAssociationandUKlawdonotcurrentlyprovideuswiththeabilitytoholdavirtualAnnualMeeting.AsaresultoftheCOVID-19pandemic,theUKlegislatureorcertainregulatorybodiesmaytakeaction,byadoptinglegislationorotherwise,whichwouldpermitustolawfullyholdavirtualAnnualMeetingduringthependencyofthepandemic.Ifsuchactionoccurs,andwedetermineitispracticabletoswitchourAnnualMeetingtoavirtualformat,weexpecttodosoandwillprovideshareholderswithnoticeofsuchchangeinaccordancewithapplicablelegalrequirements.IfweareunabletoswitchtoavirtualAnnualMeeting,UKlawunfortunatelystillrequiresustoholdsuchAnnualMeetingnolaterthanJune30,andweexpecttoholdsuchmeetinginthemannerdescribedinthisproxystatement.
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Ifyouarethebeneficial ownerofordinarysharesheldin“streetname,”youwillneedtoprovideproofofownership,suchasarecentaccountstatementorletterfromyourbank,brokerorothernomineeasofthecloseofbusinessinNewYorkCity,NewYork,ontherecorddate,alongwithaformofpersonalphotoidentification.Alternatively,youmaycontactthebank,brokerorothernomineeinwhosenameyourordinarysharesareregisteredandobtainalegalproxytobringtotheAnnualMeeting.
Nocameras,recordingequipment,electronicdevices,largebags,briefcasesorpackageswillbepermittedintothemeetingoradjacentareas.Allotheritemsmaybesubjecttosearch.
Where is the Annual Meeting being held?
TheAnnualMeetingisbeingheldat225WestWackerDrive,Boardroom,30thFloor,Chicago,Illinois60606.DuetotheCOVID-19Pandemic,shareholdersarestronglydiscouragedfromattendingtheAnnualMeetinginperson,andarecautionedthatsuchattendancemaynotbesafeorlawful.IfsubsequentchangestoUKlawmakeitlawfulandpracticalforustoholdavirtualAnnualMeetingthisyear,wemayutilizesuchformatandwillprovideshareholderswithnoticeofsuchchangeinaccordancewithapplicablelegalrequirements.See“GeneralInformationabouttheAnnualMeeting—CanIattendtheAnnualMeetinginperson?”
Can I ask questions at the Annual Meeting?
IfyouwereashareholderontherecorddateandhavetherighttoattendtheAnnualMeeting,youcanaskquestionsattheAnnualMeeting.Ifyouattendinperson,youcandosoinperson.
Who will count the votes?
RepresentativesofComputershare,theCompany’stransferagent,willserveasscrutineersofthepollandtabulatethefinalresults.
Where can I find the voting results of the Annual Meeting?
ThepreliminaryvotingresultswillbeannouncedattheAnnualMeeting.ThefinalvotingresultswillbecheckedbythescrutineersanddisclosedbywayofanannouncementviaaCurrentReportonForm8-K,whichCushmanisrequiredtofilewiththeSEC.TheresultsofthepollstakenontheresolutionsattheAnnualMeetingandanyotherinformationrequiredbytheUKCompaniesActwillbemadeavailableonourwebsite(www.cushmanwakefield.com)assoonasreasonablypracticableaftertheAnnualMeetingandforaperiodoftwoyearsthereafter.
Other information
Foradditionalinformation,[email protected]+1312338-7860.
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Annex A
Director Compensation Report
Table of Contents
DIRECTORS’ REMUNERATION REPORTAnnual StatementFrom the Chair of the Compensation Committee
AsrequiredbytheCompaniesAct2006andTheLargeandMedium-sizedCompaniesandGroups(AccountsandReports)Regulations2008(asamended),thisDirectors’RemunerationReportismadeupofthreeparts: • TheAnnual StatementfromtheChairoftheCompensationCommittee;and
• A summary of the Directors’ Remuneration Policy (“Policy”) whichsetsoutthePolicyapprovedbyshareholdersatthe2019AnnualShareholders’Meetingwhichappliesforuptothreeyearsbeginningon1January2020;and
• The Annual Report on Remuneration, whichsetsoutthepaymentsmadeandawardsgrantedtothedirectorsinthefinancial
yearended31December2019andhowtheCompanyintendstoimplementthePolicyin2020,andwhich,togetherwiththisAnnualStatement,issubjecttoanadvisoryshareholdervoteatthe2020AnnualShareholders’Meeting.
TheobjectivesofourPolicyaretoprovideanattractive,flexibleandeffectivecompensationpackagetoourexecutiveofficersthatistiedtoourcorporateperformanceandalignedwiththeinterestsofourshareholders.Ourcompensationprogramisdesignedtohelpusrecruit,motivateandretainthecalibreofexecutiveofficersnecessarytodeliverconsistenthighperformancetoourclients,shareholdersandotherstakeholders.
Ourcompensationpoliciesandpracticesalsoallowustocommunicateourgoalsandstandardsofconductandperformanceandtomotivateandrewardemployeesfortheirachievements.Ingeneral,thesameprinciplesgoverningthecompensationofourexecutiveofficersalsoapplytothecompensationofallouremployees.CurrentlytheExecutiveChairmanandChiefExecutiveOfficeristheonlyExecutiveDirectorontheBoard.
In2019,weachievedrecordfullyearfinancialperformancewiththefollowingresults: • Revenueforthefullyearwas$8.8billion,up6%(8%localcurrency).Feerevenuewas$6.4billion,up8%(9%localcurrency).
• FullyearNetincomewas$0.2million,animprovementof$186.0millionover2018withearningspershareof$0.00andAdjustedearningspershareof$1.64.
• FullyearAdjustedEBITDAwas$724.4million,up10%(11%inlocalcurrency).AdjustedEBITDAmarginof11.3%wasup25bps.
Forthe2019AnnualIncentivePlan,thetargetCompensationEBITDAwas$715million,andtheactualachievedCompensationEBITDAwas$722million,resultinginafundinglevelof103.3%.TheBoardofDirectorsuseditsdiscretiontoincreasethecashbonuspaymenttotheExecutiveChairmanandChiefExecutiveOfficerby4.2%basedontheaccomplishmentofcertainfreecashflowfinancialperformanceobjectivesincludedintheCompany’s2019operatingplan.Thisresultedinatotalfundinglevelof107.6%in2019whichamountedtothepaymentofanannualincentivetoourExecutiveChairmanandChiefExecutiveOfficerof$2,152,503.OurExecutiveChairmanandChiefExecutiveOfficeralsoreceivedanawardofRSUs,havingafacevalueequivalentto$6,000,000,ofwhich25%issubjecttoperformanceconditionsandthebalancesubjecttocontinuedemploymentoverthefour-yearvestingperiod.
Basedontheresultsofamarketstudyregardingdirectorcompensation,effective1October2019,theannualcashretainerforNon-ExecutiveDirectorswasincreasedto$90,000from$75,000andtheannualcashadditionalretainerforchairingtheAuditCommitteewasincreasedto$20,000from$15,000.Additionally,theamountoftheannualRSUawardforNon-ExecutiveDirectorswasincreasedfrom$145,000to$170,000.
IlookforwardtoreceivingyoursupportattheAnnualGeneralShareholders’MeetingontheDirectors’RemunerationReportresolution.
Timothy DattelsChair of the Compensation Committee
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Executive Remuneration PrinciplesOurcompensationphilosophyistoprovideanattractive,flexibleandeffectivecompensationpackagetoourExecutiveDirectorsthatistiedtoourcorporateperformanceandalignedwiththeinterestsofourshareholders.Ourexecutivecompensationprogramisdesignedtohelpusrecruit,motivateandretainthecaliberofexecutiveofficersnecessarytodeliverconsistenthighperformancetoourclients,shareholdersandotherstakeholders.
Webelieveourpeoplearethekeytoourbusinessandwehaveinstilledanatmosphereofcollectivesuccess.Ourcompensationpoliciesandpracticesalsoallowustocommunicateourgoalsandstandardsofconductandperformanceandtomotivateandrewardemployeesfortheirachievements.Ingeneral,thesameprinciplesgoverningthecompensationofourexecutiveofficersalsoapplytothecompensationofallouremployees,whichincludethefollowing.
Principle PracticeRetain and hire the best leaders. Competitivecompensationtofacilitateattractingandretaininghigh-qualitytalent.
Pay for performance.
Asignificantportionofpaydependsonannualandlong-termbusinessandindividualperformance;ingeneral,thelevelof“at-risk”compensationincreasesastheofficer’sscopeofresponsibilityincreases.
Reward long-term growth andprofitability.
Rewardsforachievinglong-termresults,andalignmentwiththeinterestsofourshareholders.
Tie compensation to businessperformance.
Asignificantportionofpayistiedtomeasuresofperformanceofthebusinessorbusinessesoverwhichtheindividualhasthegreatestinfluence.
Align executive compensation withshareholder interests.
Theinterestsofourexecutiveofficersarelinkedwiththoseofourshareholdersthroughtherisksandrewardsofstockownership.
Limited personal benefits.Perquisitesandotherpersonalbenefitsarelimitedtoitemsthatserveareasonablebusiness-relatedpurpose.
OurexecutivecompensationprogramhasbeendesignedtorewardstrongperformancebyfocusingthecompensationopportunityforourExecutiveChairmanandChiefExecutiveOfficeronannualandlong-termincentivesthatdependuponourperformanceasawhole,aswellastheperformanceofourindividualbusinessesoronthebasisofindividualmetricswhereappropriate.
Ourexecutivecompensationprogramconsistsofbasesalary,annualincentivecompensation,long-termequityincentiveawardsandhealth,welfareandothercustomaryemployeebenefits.
• Basesalary—Criticalinattractingandretainingkeyexecutivetalent.InevaluatingthebasesalaryofourExecutiveDirector,the
Boardconsidersseveralfactors,includingindividualandcompanyperformance,qualifications,experience,competitivemarketpractices,difficultyoffindingareplacement,andourdesiredcompensationpositionwithrespecttothecompetitivemarket.
• Short-TermIncentive—Eachyear,ourExecutiveDirectoriseligibletoreceiveanannualcashincentiveawardunderourAnnualIncentivePlan(“AIP”).AtthebeginningofeachyeartheCompensationCommittee(andtheBoardforourExecutiveDirector)approvesthetermsandconditionsoftheAIP,includingtheselectionofoneormoreperformancemeasuresasthebasisfordeterminingthefundingofannualcashbonuses,theperformancerangerelativetoourannualoperatingplanandtheweightingofsuchperformancemeasures.WhendeterminingAIPtargets,similartobasesalary,theCompensationCommittee(andtheBoardforourExecutiveDirector)considersseveralfactors,includingindividualandcompanyperformance,qualifications,experience,competitivemarketpractices,difficultyoffindingareplacement,andourdesiredcompensationpositionwithrespecttothecompetitivemarket.
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• Long-TermIncentive—Promoteslong-termgrowthandprofitabilitybyaligningtheinterestsofmanagementwiththeinterestsofourshareholdersandbyencouragingretention.Atthebeginningofeachyear,theCompensationCommittee(andtheBoardforourExecutiveDirector)determinesthetargetandtypeofequityawardtobedelivered.In2019,ourlong-termincentiveprogramconsistedofacombinationoftime-vestingandperformance-vestingrestrictedstockunits(“RSUs”)toeffectivelyandefficientlybalanceperformanceandretentionobjectives.
Summary of the Directors’ Remuneration PolicyIntroduction
TheDirectors’RemunerationPolicysummarisedinthebelowwasapprovedatthe2019AnnualGeneralShareholders’Meetingheldon6June2019.Thisisintendedtoapplyforthreeyears,beginningon1January2020.Fulldetailsoftheremunerationpolicycanbefoundatwww.cushmanandwakefield.com
Directors’ Remuneration Policy tableElement and link to strategy Operation Opportunity Performance conditionsBaseSalaryToattractandretainindividualsbasedontheirskillsandfortheroleresponsibilities.
Salariesaregenerallyreviewedannually.Salarylevelstakeaccountof:
• Role,performance,experienceandqualifications
• Futurepotential,tenureandeaseofreplacement
• Companyperformanceanddesiredpositionwithrespecttocompetitivemarket/internalequity
• Salarylevelsforsimilarrolesatrelevantmarketcomparators
Increasesareappliedinlinewiththeoutcomeofthereview.Salarywillconstitutenomorethan15%ofthetotaltargetcompensationpackage.
N/A
BenefitsTodriveeffectivenessandefficiencyofexecutiveofficers,andforrecruitmentandretentionpurposes
Benefitstypicallyincludethefollowing:
• HealthCare(medical,pharmacy,dentalandvisionbenefits)
• Welfare(medicalanddependentcareflexiblespendingaccounts)
• Insurance(short-termandlong-termdisability,accidentaldeath,dismemberment,basiclifeinsurance)
Benefitsmayvarybyroleandindividualcircumstance,andarereviewedperiodicallyTheCompensationCommitteereservestherighttointroduceadditionalbenefitstoensurealignmentwithmarketpractice.
N/A
PensionToprovidemarketcompetitiveretirementpackages.
Contributionsto401(k)retirementplan
Employercontributionofupto2.5%toa401(k)planorsimilardefinedcontributionarrangementinotherjurisdictions
N/A
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Element and link to strategy Operation Opportunity Performance conditionsAnnualIncentivePlan(“AIP”)Toreinforceandrewardimprovedfinancialandpersonalperformance
TheperformancemeasuresandtargetrangesareapprovedbytheCommitteeatthebeginningofthefinancialyear.AIPawardsarepayableincash.
TheAIPwillformnomorethan35%oftheoverallpackageattargetsuchthatthetotalcompensationdeliveredincashislimitedtonomorethan50%oftheoverallcompensationpackageattarget.TheCommitteeretainsdiscretiontoadjusttheamountoftheactualcashbonuspaymentstoreflectthequalityoftheresults.
Performanceconditions:willbebasedinthemajorityonfinancialmetrics(e.g.,EBITDA-basedmetrics).ProvisionsfortherecoveryorwithholdingofamountsincertainspecificscenariosarecontainedintheCushman&WakefieldRecoupmentPolicy.
LongTermIncentivePlan(“LTIP”)Torewardandretainkeyexecutivesforthedeliveryoflong-termgrowthobjectivesandtoaligntheinterestsofmanagementwiththoseofshareholders
TheCommitteemaygrantannualawardsofrestrictedstockunits(“RSUs”)andoptionstopurchasethecompany’sordinarysharesNormally,around25%-50%oftheRSUawardswillbeperformance-vestingandaround50%-75%willvestinequalinstalmentsoverfouryearsfromthedateofgrantsubjecttocontinuedemployment.TheCommitteeretainsdiscretiontomakeawardsundertheLTIPwithagreaterorlesserpercentageofperformance-vestingRSUawards.
ThemaximumannualawardofRSUsand/oroptionswillgenerallybeintheregionof60%ofthetotalcompensationpackageattarget,butmaybeupto80%ofthetotalcompensationpackageattarget.TheCommitteereservestherighttomakeadditionalawardsforthepurposesofretentioninexceptionalcircumstances,subjecttotheoverallLTIPcomponentofcompensationfortheyearnotexceeding80%.
Performance-vestedRSUswillbedependentonmetricssuchasRelativeTotalShareholderReturnandmeasuresbasedonfinancialmetricssuchasmarginaccretionorEBITDA.Provisionsfortherecoveryorwithholdingofamounts(whethervestedorunvested)incertainspecificscenariosarecontainedintheCushman&WakefieldRecoupmentPolicy.
Shareholdingrequirement
ExecutiveDirectorsareexpectedtomeetminimumstockownershipguidelines.TheExecutiveDirectors’compliancewiththestockownershipguidelinesisassessedat31Mayeachyear,basedontheExecutiveDirectors’salaryandtheaverage12month-endshareprice.
OwnershipGuideline(includingunvestedtime-vestedRSUs)6xsalary.One-thirdofguidelinemustbeinsharesownedoutright—2xsalary
N/A
Malus and clawback
TheCushman&WakefieldRecoupmentPolicyprovidesthattheExecutiveDirectorswillforfeit,repayorreturntotheCompanyanycashorequity-basedincentivecompensation,ortheproceedsofanysaleofequity,inthefollowingscenarios:
(i)materialrestatementoftheCompany’sfinancialresults;(ii)theindividualviolatesaMaterialPolicy(e.g.,theCompany’sCodeofConduct);(iii)theindividualbreachesanon-compete,non-solicitationorconfidentialityclause;(iv)misrepresentationofamaterialfactinconnectionwiththesecuringorretentionofemployment;(v)theindividualengagesinfraud;or(vi)theindividualmanipulatesresultswithaviewtoincreasingincentivepay-outsforhimselforothers.
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Directors’ Remuneration Policy table (Non-executive directors)
How the element supports our strategic objectives
Operation of the elements (fees and benefits) Maximum potential pay-out
Performance measures used, weighting and time period
applicableToattractnon-executivedirectorswhohavethebroadrangeofexperienceandskillsrequiredtooverseetheimplementationofthestrategy
• Feesfornon-executivedirectors(otherthantheChairman)aresetbytheBoardandpaidinregularinstalments.
• Thenon-executivedirectorswhoarenotemployeesofourPrincipalShareholdersarealsoeligibletoreceiveannualRSUawardswithagrantdatevalueof$145,000,whichwillvestinfullontheearlierofthefirstanniversaryofthedateofgrantortheAGM.
• Feesaresetwithintherangeofcomparativeboardandcommitteefees,benchmarkedagainstthepeergroup.Averageincreaseswilltypicallybeinalignmentwiththemarketmedian.
• FeesareconstitutedofanannualBoardretainerplusadditionalfeesformembersandchairsoftheAudit,CompensationandNominatingandCorporateGovernanceCommittees.
• N/A
Shareholdingguideline
• Shareholdingguidelinecomplianceassessedat31Mayeachyear.
• UnvestedRSUsincluded
• Non-executiveDirectorswhoarenotemployeesofourPrincipalShareholdersareexpectedtoretain100%oftheirafter-taxsharesuntiltheymeettheirstockownershipguideline
• 5timesannualBoardfee
• N/A
Annual Report on RemunerationSingle total figure of remuneration for executive director for two financial years ended 31 December 2019 (Audited)
Executive Chairman andChief Executive Officer Year
Base pay$000
Taxablebenefits$000
Annual Incentive$000
Time-based RSUs awarded
$’000
Long-termincentive
$000 Total$000
BrettWhite 2019 950 — 2,153 4,500 — 7,603 2018 950 110 3,067 3,750 29,318 37,195
Additional information in relation to the 2019 single total figure (Audited)Element Explanation
Taxablebenefits Notaxablebenefitswerepaidintheyear.
Annualincentive
Opportunityattargetperformance—$2,000,000(210.5%ofsalary);Opportunityatmaximumperformance—$4,000,000(421%ofsalary)Payableincash
Time-basedRSUs
Representsthevalueof252,101time-basedRSUsawardedinthefinancialyearatthesharepriceonthedateofgrantof$17.85
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Determination of annual incentive payment (“AIP”) amount (Audited)
The2019AIPisbasedontheachievementofacertainpercentageofCompensationEBITDA,fromaminimumof70%toamaximumof130%oftheannualoperatingplantarget,subjecttotheachievementoftheminimum70%onaconsolidatedbasisandthediscretionofourboardofdirectors,withstraightlineinterpolationbetweenthesepoints. Threshold Target Maximum Actual CompensationEBITDA $ 500.5m $ 715m $ 929.5m $ 722mBonuspayable(%oftarget) 0% 100% 200% 103.3%Bonuspayable($) $ 0 $2,000,000 $4,000,000 $2,066,000
In2019,theAIPamountpaidisdeterminedbasedonfinancialperformancethatresultsinafundedrangeof0%to200%oftheindividual’sapplicabletarget.TheCompensationCommittee(andtheBoardfortheCEO)hasthediscretiontoadjusttheamountoftheactualcashbonuspaymentstobereceivedasitdeemstobeappropriate,upwardstotheapplicablecapordownwardstozero.In2019,theBoardusedthisdiscretiontoincreasethecashbonuspaymenttoMr.Whiteby4.2%basedontheaccomplishmentofcertainfreecashflowfinancialperformanceobjectivesincludedintheCompany’s2019operatingplan,resultinginapayouttoMr.Whiteof2,152,503.
AdjustedEBITDAwasadjustedasfollowsforthepurposesofthe2019AIP(suchresultingamountisreferredtohereinasthe“CompensationEBITDA”):Increasedby: Decreasedby:Constantcurrencyconversion—$3m Realizedandunrealizedexchangerategains—$6mOtherone-timeitems—$1m
Single total figure of remuneration for non-executive directors (Audited)
Non-executivedirectorswhoarenotemployeesofourPrincipalShareholdersreceivecompensationconsistingoffeesandequityawards.TheydonotparticipateinanyoftheCompany’sincentivearrangements,nordotheyreceiveanybenefits.
Basedontheresultsofamarketstudyregardingdirectorcompensation,effective1October2019,theannualcashretainerforNon-ExecutiveDirectorswasincreasedto$90,000andtheannualcashadditionalretainerforchairingtheAuditCommitteewasincreasedto$20,000.
EachNon-ExecutiveDirectorwhoisnotanemployeeofourPrincipalShareholdersiseligibletoreceiveanannualRSUawardwithagrantdatevalueof$170,000,whichwillvestinfullontheearlierofthefirstanniversaryofthedateofgrantortheannualshareholdermeeting.TheamountoftheRSUawardwasincreasedfrom$145,000to$170,000effective1October2019basedonthemarketstudyregardingdirectorcompensationnotedabove.Allawardsgrantedin2019weregrantedunderour2018OmnibusNon-EmployeeDirectorShareandCashIncentivePlan.
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Non-executive director
Fees1$0002019
Fees1$0002018
Equity Awards2$0002019
Equity Awards2$0002018
Total$0002019
Total$000-2018
JonathanCoslet3 — — — — — —TimothyDattels3 — — — — — —QiChen3 — — — — — —LincolnPan3 — — — — — —RajeevRuparella3 — — — — — —BillieWilliamson 105 50 170 133 275 183JodieMcLean 89 14 170 97 259 111MichelleMacKay 87 7 170 85 257 92RichardMcGinn 52 — 170 — 222 —
Notes:1. Feesarepro-ratedtoreflectthenumberofdaysworkedinthefinancialyear2. EquityawardsvestontheearlierofthefirstanniversaryofthedateofgrantorthedateoftheAnnualShareholdersMeeting.3. TheseDirectorsrepresentourPrincipalShareholdersanddonotreceivefees
Total pension entitlements (Audited)
NoneofthedirectorshasaprospectiveentitlementtoadefinedbenefitpensionbyreasonoftheprovisionofqualifyingservicestotheCompany.
Scheme interests awarded during 2019 (Audited)
Weprovidelong-termincentivecompensationbecausewebelieveitpromoteslong-termgrowthandprofitabilitybyaligningtheinterestsofourExecutiveChairmanandChiefExecutiveOfficerwiththeinterestsofourshareholdersandbyencouragingretention.
Atthebeginningofeachyear,theBoarddeterminesthetargetandtypeofequityawardtobedeliveredtotheExecutiveChairmanandChiefExecutiveOfficer.In2019,ourlong-termincentiveprogramconsistedofacombinationoftime-vesting(75%)andperformance-vesting(25%)restrictedstockunits(“RSUs”)toeffectivelyandefficientlybalanceperformanceandretentionobjectives.Allawardsweregrantedunderour2018OmnibusManagementShareandCashIncentivePlan.
ThefollowingschemeinterestswereawardedtoBrettWhite,ExecutiveChairmanandChiefExecutiveOfficer,intheyearended31December2019.
Date of grant Type of interest Basis of award No of shares Face value
$ Threshold vesting
End of performance
period7March2019
Time-vesting
RSUs Fixedvalue
252,101
4,500,003
—
—
7March2019
Performance-vestingRSUs
Fixedvalue
126,050
2,249,993
Nil
Seebelow
Notes:1. Thefacevalueoftime-vestingRSUscalculatedbasedontheunderlyingsharesandtheclosingstockpriceonthedateofgrantof$17.85pershare.Theface
valueoftheperformance-basedRSUscalculatedbasedassumedmaximumperformanceof150%andtheclosingstockpriceonthedayofgrantof$17.85.2. Time-vestingRSUsvestinequalinstalmentsoverfouryears,subjecttocontinuedemployment,withthefirstvestingon7March20203. Theperformance-vestingRSUswillvestonthebasisofconditionsrelatingtoMarginAccretionandrelativeTSRassetoutbelow
Forthe2019performance-vestingRSUs,payoutswillbebased50%onatargetAdjustedEBITDAMarginAccretion,asmeasuredastheaverageofthreeseparateyearsofperformance(2019,2020and2021),and50%onatargetRelativeTSR,asmeasuredonacumulativebasisoverameasurementperiodcommencinginMarch2019andendinginFebruary2022.AdjustedEBITDAMarginAccretionisameasureofprofitabilityobtainedbydividingAdjustedEBITDAbyFeerevenue.RelativeTSRistheCompany’stotalshareholderreturnrelativetothecompaniesintheRussel3000.Foreach
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performancemetric,payoutrangesfrom0%to150%oftarget.Eachperformancemetricalsoincludesaminimumthreshold.Ifactualperformanceislessthantheminimumthresholdlevel,thepayoutwillbe0%forthatmetric.Thepayoutforeachmetricislinearlyinterpolatedforperformancebetweentheminimumthresholdandtargetandalsoforperformancebetweenthetargetandmaximum.
Forthe2019performance-basedvestingRSUsthatarebasedonMarginAccretion,specificdetailsrelatedtothefinancialtargetswillnotbereleasedduetotheircommercialsensitivity.Resultsoffinancialdatawillbereleasedastheybecomepubliclyavailable.Forthe2019performance-vestingRSUsthatarebasedonRelativeTSR,thepayoutswillbebasedontheachievementpercentagesovertheperformanceperiodrelativetothecompaniesintheRussell3000assetforthbelow(exceptthatifthetotalshareholderreturnoftheCompanyisnegativeovertheperformanceperiod,theachievementpercentageshallnotexceed100%).
Level of Achievement Relative TSR Percentile Rank Achievement PercentageBelow Threshold Less than 25th percentile 0%
Threshold At least the 25th percentile 50%Target At least the 50th percentile 100%
Maximum At least the 75th percentile 150%
Payments to past directors (Audited)
Therewerenopaymentstopastdirectorsduring2019.
Payments for loss of office (Audited)
Therewerenopaymentsforlossofofficepaidtodirectorsduring2019.
Directors’ shareholdings and share interests (Audited)Executive Director’s Share Interests (Audited)
BrettWhitehasashareholdingrequirementof600%ofsalary(includinghisunvestedRSUssubjecttocontinuedservice).Basedonthesharepriceatthefinancialyearendof$20.44hisshareownershipexceededthisrequirementbyasignificantmargin. Cushman & Wakefield plc shares as at 31 December 2019
Executive Chairman and Chief Executive Officer
Shares heldoutright
RSUs subject tocontinued service
RSUs subject toperformance
OptionsSubject tocontinuedservice
Options that havevested but not been exercised
BrettWhite 814,967 1,030,967 827,700 0 81,863
OverthecourseoftheyearMr.Whiteexercised364,895stockoptionsasdetailedinthetablebelow:
Date of Exercise # of Options Exercised FMV on Exercise Exercise Price
Value Realized on Exercise
1/29/2019 74,850 $15.67 $10.00 $424,3993/22/2019 162,171 $17.75 $10.00 $1,256,8254/1/2019 29,242 $17.80 $10.00 $228,0884/12/2019 21,241 $17.75 $10.00 $164,6187/1/2019 16,995 $18.00 $10.00 $135,96010/1/2019 12,260 $18.65 $10.00 $106,04911/14/2019 48,136 $19.00 $10.00 $433,224
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Non-ExecutiveDirectorswhoarenotemployeesofourPrincipalShareholdersmusthold100%oftheirafter-taxsharesuntiltheymeettheirstockownershipguidelineoffive-timestheirannualretainer.ShareinterestsheldbytheNon-ExecutiveDirectors(includingholdingsbyconnectedpersons)attheendoftheyear(orearlierretirementfromtheBoard)areshownbelow:
Non-Executive Director Cushman & Wakefield plc shares
held at 31 December 2019 Shareholding guideline met Shares held outright RSU awards1 JonathanCoslet — — N/ATimothyDattels — — N/AQiChen — — N/ALincolnPan — — N/ARajeevRuparella — — N/ABillieWilliamson 7,372 9,780 NoJodieMcLean 5,203 9,780 NoMichelleMacKay 4,552 9,780 NoRichardMcGinn — 9,780 No
Notes1. Non-ExecutiveDirectorswhoarenotemployeesofourPrincipalShareholdersreceivedtwoRSUawardshavingatotalvalueof$170,000.ThefirstRSUsaward
havingavalueof$145,000on6June2019atasharepriceof$17.32andthesecondRSUawardhavingavalueof$25,000on1October2019atasharepriceof$17.75.
Dates of directors’ employment agreements and letters of appointment
OurbusinessandaffairsaremanagedunderthedirectionofourBoard.Mr.McGinnjoinedourBoardon6June2019,and,asof17March2020,Ms.MacKayresignedfromourBoardtobecomeourChiefOperatingOfficer.Thus,ourBoardiscomprisedofnineDirectors.OurArticlesofAssociationprovidethatourBoardwillhaveaminimumoffiveandmaximumofelevenDirectors.
Executive Chairman and Chief Executive Officer Employment agreement commencement dateDate employment
agreement terminatesBrettWhite 16March2015 31December2021
OurBoardisdividedintothreeclasses,witheachdirectorservingathree-yeartermandoneclassbeingelectedateachyear’sannualgeneralmeetingofshareholders.Mr.White,Mr.McGinn,Ms.McLeanandMs.WilliamsonserveasClassIIdirectorswithatermexpiringattheAnnualMeeting.Messrs.Dattels,PanandRupareliaserveasClassIIIdirectorswithatermexpiringin2021.Mr.CosletandMs.ChenserveasClassIdirectorswithatermexpiringin2022.Upontheexpirationofthetermofofficeforeachclassofdirectors,eachdirectorinsuchclassshallbeelectedforatermofthreeyearsandserveuntilasuccessorisdulyelectedandqualifiedoruntilhisorherearlierdeath,resignationorremoval.Anyadditionaldirectorshipsresultingfromanincreaseinthenumberofdirectorsoravacancymaybefilledbythedirectorstheninoffice.
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TSR chart and CEO pay table
ForthepurposesoftheTSRchartbelow,theRussell3000indexhasbeenchosenasthebroadequitymarketindexagainstwhichtocomparetheTotalShareholderReturnofCushman&WakefieldplcsincetheIPOinAugust2018asCushman&Wakefieldisincludedinthisindex.
Executive Chairman and Chief Executive Officer 2018‘000s
2019 ‘000s
Singletotalfigure $37,195 $7,603%ofmaximumAIP 76.7% 53.8%%ofmaximumperformance-vestingLTIP N/A —
Note:TheSingleTotalFigurevaluein2018isinflatedbytheinclusionoftheconversionof1,625,275performance-vestingRSUstotime-vestingRSUs.
Percentage change in CEO pay compared with employee pay
Thetablebelowshowsthepercentagechangeinsalary,benefitsandbonusfortheExecutiveChairmanandChiefExecutiveOfficerandtheCompany’sglobalemployeesbetween2018and2019.Theyear-over-yeardecreaseinMr.White’sBenefitscanlargelybeattributedtotheeliminationofCompanyreimbursementforpersonalaircraftusage.Theyear-over-yeardecreaseinbonusesforbothMr.WhiteandtheCompany’sglobalemployeesisduetolowerpercentagepayoutsundertheannualincentiveplanin2019comparedwith2018.
% change from 2018 to 2019 Salary Benefits BonusBrettWhite Nil -100% -29.8%Employees 12% 7% -9%
CEO pay ratioYear Method 25th percentile ratio Median ratio 75th percentile ratio2019 OptionA 164:1 114:1 68:1
Y25,Y50andY75representthepayandbenefits(calculatedonthesamemethodologyasthesingletotalfigure)fortheemployeesatthe25th,50thand75thpercentiles.
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OptionAhasbeenchosenbecauseitisthemoststatisticallyaccuratemethodology.Weidentifiedthe25th,50thand75thpopulationbasedontheemployeepopulationasof31December2019.Inidentifyingtheemployeesatthe25th,50thand75thpercentiles,wehaveannualizedthecompensationforemployeeswhowerenotinemploymentwiththeCompanyforthewholeofthefinancialyear.
ThemedianratiorepresentstheCompany’spayandprogressionpolicies.
Relative importance of spend on pay
Theoverallspendonpayin2018and2019andthechangeinspendisshownbelow.Nodividendswerepaidineitheryear.Theyear-over-yearincreaseinspendcanlargelybeattributedtoincreasedheadcountandmoderatepayincreasesduringtheperiod.
Overall spend on pay2018 ($millions) 2019 ($ millions) Change
6,016 6,253 4%
Implementation of remuneration policy for 2020
OurBoardofDirectors,withtheassistanceofourindependentcompensationconsultant,reviewsandestablishesourpeergroupannuallyandusessuchpeergroupasareferencesourceinitscompensationdeliberations.ThepeergroupisestablishedbyevaluatingcompaniesthattheCompensationCommittee,withtheassistanceofourindependentcompensationconsultant,believesarecomparabletouswithrespecttoindustrysegment,businessprofileandvariousfinancialcriteria.Our2019peergroupwasapprovedbyourCompensationCommitteeinMarch2019.Theonlychangesfromour2018peergroupweretheremovalofConvergysandForestCityRealtyduetosuchcompaniesbeingacquiredin2018.
In2020Non-ExecutiveDirectorsareeligibletoreceiveannualcashretainersandanannualRSUawardwithagrantdatevalueof$170,000whichwillvestinfullontheearlierofthefirstanniversaryofthedateofgrantortheannualshareholdermeeting.
ThesalaryoftheExecutiveChairmanandChiefExecutiveOfficerisreviewedeachyearrelativetomarketmedians.Adjustmentswouldbemadeifthesalaryisfoundtobelowagainstthemarket.Inaddition,Non-executiveDirectorfeesarealsoreviewedeachyearrelativetomarketdata.ThecurrentratesaresetoutbelowandtheCommittee(andtheBoardfortheExecutiveChairman)reservestherighttoadjustformarketalignment. 2019 2020 SalaryofExecutiveChairmanandChiefExecutiveOfficer $ 950,000 $ 950,000Non-executivedirectorBoardfee $ 90,000 $ 90,000AuditCommitteemember $ 10,000 $ 10,000AuditCommitteeChair(inadditiontomemberretainer) $ 15,000 $ 20,000CompensationCommitteemember $ 10,000 $ 10,000CompensationCommitteeChair(inadditiontomemberretainer) $ 15,000 $ 15,000NominatingandCorporateGovernanceCommitteemember $ 5,000 $ 5,000NominatingandCorporateGovernanceCommitteeChair(inadditiontomemberretainer) $ 10,000 $ 10,000
For2020,thecompensationstructurefortheExecutiveChairmanandChiefExecutiveOfficerremainsunchanged:
• Inadditiontobasepay,Mr.Whitewillcontinuetobeeligibleforatargetannualincentiveof$2,000,000.Thebonuspaidis
determinedbasedonfinancialperformancethatresultsinafundedrangeof0%to200%oftheirapplicabletarget.FinancialperformancewillbedeterminedbasedonCompanyachievementofEBITDA,fromaminimumof70%toamaximumof130%oftheannualoperatingplantarget,subjecttotheachievementoftheminimum70%ona
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consolidatedbasisandthediscretionofourboardofdirectors,withstraightlineinterpolationbetweenthesepoints.TheBoardmaintainsdiscretiontoadjustthefinalpaymentamount.
For2020EBITDAtargetsrelatedtotheAIP,specificdetailsrelatedtothefinancialtargetswillnotbereleasedduetotheircommercialsensitivity.Resultsoffinancialdatawillbereleasedastheybecomepubliclyavailableandthetargetswillbedisclosedinnextyear’sremunerationreport.
• Mr.Whitewillalsocontinuetobeeligibleforlong-termincentivesthatwillremain75%time-basedand25%performancebased.
The2020performance-vestingRSUs,payoutswillbebased50%onatargetAdjustedEBITDAMarginAccretion,asmeasuredastheaverageofthreeseparateyearsofperformance(2020,2021and2022),and50%onatargetRelativeTSR,asmeasuredonacumulativebasisoverameasurementperiodcommencinginMarch2020andendinginFebruary2023.AdjustedEBITDAMarginAccretionisameasureofprofitabilityobtainedbydividingAdjustedEBITDAbyFeerevenue.RelativeTSRistheCompany’stotalshareholderreturnrelativetothecompaniesintheRussel3000.Foreachperformancemetric,payoutrangesfrom0%to150%oftarget.Eachperformancemetricalsoincludesaminimumthreshold.Ifactualperformanceislessthantheminimumthresholdlevel,thepayoutwillbe0%forthatmetric.Thepayoutforeachmetricislinearlyinterpolatedforperformancebetweentheminimumthresholdandtargetandalsoforperformancebetweenthetargetandmaximum.
Forthe2020performance-basedvestingRSUsthatarebasedonMarginAccretion,specificdetailsrelatedtothefinancialtargetswillnotbereleasedduetotheircommercialsensitivity.Resultsoffinancialdatawillbereleasedastheybecomepubliclyavailableandthetargetswillbedisclosedintheremunerationreportdisclosingthepayoutsfortheseawards.Forthe2020performance-vestingRSUsthatarebasedonRelativeTSR,thepayoutswillbebasedontheachievementpercentagesovertheperformanceperiodrelativetothecompaniesintheRussell3000assetforthbelow(exceptthatifthetotalshareholderreturnoftheCompanyisnegativeovertheperformanceperiod,theachievementpercentageshallnotexceed100%).
Level of Achievement Relative TSR Percentile Rank Achievement PercentageBelow Threshold Less than 25th percentile 0%
Threshold At least the 25th percentile 50%Target At least the 50th percentile 100%
Maximum At least the 75th percentile 150%
Compensation Committee (“Committee”)
TheCommitteeshallbecomposedofthreeindependentnon-executivedirectors.ThechairoftheCommitteeshallbeappointedbytheBoard.CommitteemembersshallserveuntiltheirsuccessorsaredulyappointedandqualifiedoruntiltheirearlierremovalbytheBoardatanytime.
ThemembersoftheCommitteeduringtheyearwere:TimothyDattels(Chair),LincolnPan,andMichelleMacKayand,allofwhomareconsideredtobeindependentduringtheyear.Mr.McGinnwasappointedtotheCompensationCommitteein2020uponMs.MacKay’sresignationfromtheBoardtobecometheCompany’sChiefOperatingOfficer.
TheprimaryresponsibilitiesoftheCompensationCommitteeare:
• reviewingandrecommendingtotheBoardforapprovalthecorporategoalsandobjectivesrelevanttothecompensationofour
CEO;evaluatingtheperformanceofourCEOinlightofthosegoalsandobjectives;andrecommendingtotheBoardforapprovalthecompensationofourCEObasedonthatevaluation;
• reviewingandapprovingthecorporategoalsandobjectivesrelevanttothecompensationofourexecutiveofficers(otherthanthe
CEO);evaluatingtheperformanceofourexecutiveofficers(otherthantheCEO)inlightofthosegoalsandobjectives;anddeterminingthecompensationofourexecutiveofficers(otherthantheCEO)basedonthatevaluation;
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• reviewingandapprovingpoliciesandguidelinesrelatedtothecompensationofourexecutiveofficersanddirectors;and
• establishing,reviewingandadministeringourcompensationandemployeebenefitplans.
Independent Compensation Consultant
Infulfillingitsdutiesandresponsibilities,theCompensationCommitteehastheauthoritytoengagetheservicesofoutsideadvisersonanas-neededbasis.In2019,theCompensationCommitteeengagedFredericW.Cook&Co.,Inc.(“FWCook”),anationalexecutivecompensationconsultingfirm,asitsindependentcompensationconsultanttoassistitwithcompensationmatters.FWCookwasselectedastheCommittee’sexternal,independentcompensationadvisorthroughanRFPprocessconductedin2016.FWCookregularlyattendsmeetingsoftheCompensationCommittee,respondstoinquiriesfrommembersoftheCompensationCommitteeandprovidesanalysiswithrespecttotheseinquiries.FWCookworkscollaborativelywithourmanagementtogainanunderstandingofourbusinessandcompensationprogramstohelpthemadvisetheCompensationCommittee.Inaddition,FWCookregularlyconferswithourmanagementtocollect,analyzeandpresentdatarequestedbytheCompensationCommittee.
TheCompensationCommitteehasaskedFWCooktoregularlyprovideindependentadviceonthefollowingmatters(amongothers):
• thecompositionofourcompensationpeergroup(includinganalyzingexecutiveandnon-executivedirectorcompensationlevelsandpracticesofthecompaniesinourcompensationpeergroup);
• ourcompensationplanrisk;
• currentmarkettrendsandbestpracticesinexecutiveanddirectorcompensationdesign;and
• theoveralllevelsofcompensationandtypesandblendofvariouscompensationelements.
FWCookdoesnotprovideanyservicestousotherthantheservicesprovidedtotheCompensationCommittee.ThetotalexpensefortheservicesprovidedtotheCompensationCommitteebyFWCookduring2019wasapproximately$95,316,basedonagreedhourlyrates.
Shareholder voting outcome
TheresolutionsontheDirectors’RemunerationPolicyandtheDirectors’RemunerationReport(excludingtheDirectors’RemunerationPolicy)receivedthefollowingvotesfromshareholdersattheAnnualShareholders’Meetingheldon6June2019. Votes for % Votes against % Votes abstainedDirectors’remunerationpolicy(bindingvote) 188,219,888 96.58% 6,666,231 3.42% 2,669,960Annualreportonremuneration(advisoryvote) 188,234,625 96.60% 6,629,452 3.40% 2,692,042
Notes:Avoteabstainedisnotavoteinlawandisnotcountedinthecalculationofthevotes‘For’or‘Against’theresolution.VotesabstainedincludesbothvotesabstainedattheAnnualShareholders’MeetingandanyBrokernon-votes.
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01-BrettWhite02-RichardMcGinn03-JodieMcLeanForAgainstAbstainForAgainstAbstainForAgainstAbstain1UPX04-BillieWilliamsonCushman&WakefieldplcUsingablackinkpen,markyourvoteswithanXasshowninthisexample.Pleasedonotwriteoutsidethedesignatedareas.037TXB++Proposals—TheBoardofDirectorsrecommendavoteFORallthenomineeslistedandAFORProposals2-6.2.RatificationofKPMGLLPasourindependentregisteredpublic
accountingfirm.5.Non-binding,advisoryvoteonthecompensationofournamedexecutiveofficers(“Say-on-Pay”).1.ElectionoffourClassIIdirectorstoholdofficeuntilthe2023annualgeneralmeetingofshareholders:ForAgainstAbstainPleasesignexactlyasname(s)appearshereon.Jointownersshouldeachsign.Whensigningasattorney,executor,administrator,corporateofficer,trustee,guardian,orcustodian,pleasegivefulltitle.Date(mm/dd/yyyy)—Pleaseprintdatebelow.Signature1—Pleasekeepsignaturewithinthebox.Signature2—Pleasekeepsignaturewithinthebox.BAuthorizedSignatures—Thissectionmustbecompletedforyourvotetocount.Pleasedateandsignbelow.3.AppointmentofKPMGLLPasourUKStatutoryAuditor.4.AuthorizationoftheAuditCommitteetodeterminethecompensationofourUKStatutoryAuditor.qIFVOTINGBYMAIL,SIGN,DETACHANDRETURNTHEBOTTOMPORTIONINTHEENCLOSEDENVELOPE.q2020AnnualGeneralMeetingProxyCardForAgainstAbstain6.Non-binding,advisoryvoteonourdirectorcompensationreport.000004MRASAMPLEDESIGNATION(IFANY)ADD1ADD2ADD3ADD4ADD5ADD6ENDORSEMENT_LINE______________SACKPACK_____________123456789012345MMMMMMMMMMMMMMMMMMMMMMM457817MRASAMPLE(THISAREAISSETUPTOACCOMMODATE140CHARACTERS)MRASAMPLEANDMRASAMPLEANDMRASAMPLEANDMRASAMPLEANDMRASAMPLEANDMRASAMPLEANDMRASAMPLEANDMRASAMPLEANDC1234567890JNTC123456789MMMMMMMMMMMMMMMMMMMM000000000.000000ext000000000.000000ext000000000.000000ext000000000.000000ext000000000.000000ext000000000.000000extIfnoelectronicvoting,deleteQRcodeandcontrol#ÄYoumayvoteonlineorbyphoneinsteadofmailingthiscard.OnlineGotowww.investorvote.com/CWKorscantheQRcode—logindetailsarelocatedintheshadedbarbelow.Savepaper,timeandmoney!Signupforelectronicdeliveryatwww.investorvote.com/CWKPhoneCalltollfree1-800-652-VOTE(8683)withintheUSA,USterritoriesandCanadaVotessubmittedelectronicallymustbereceivedby11:59pm(EasternTime)onJune9,2020.Yourvotematters–here’showtovote!
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Smallstepsmakeanimpact.Helptheenvironmentbyconsentingtoreceiveelectronicdelivery,signupatwww.investorvote.com/CWKNoticeof2020AnnualGeneralMeetingofShareholdersProxySolicitedbyBoardofDirectorsforAnnualGeneralMeeting—June10,2020Theundersignedshareholder(s)ofCushman&Wakefieldplcherebyappoint(s)BrettWhite,DuncanPalmerandBrettSoloway,andeachofthem,astheundersigned’strueandlawfulproxies,eachwiththepowertoappointhissubstitute(s),andherebyauthorize(s)themtorepresentandtovoteallofthesharesofCushman&Wakefieldplcthattheshareholder(s)is/areentitledtovoteattheAnnualGeneralMeetingofShareholderstobeheldat8:00a.m.(CentralTime)onJune10,2020andatanyadjournmentorpostponementthereof,uponallsubjectsthatmayproperlycomebeforesuchmeeting,includingthemattersdescribedintheproxystatementfurnishedwiththisproxycard,subjecttothedirectionsindicatedonthereversesideofthiscard,withallthepowertheundersignedwouldpossessifpersonallypresent.
Sharesrepresentedbythisproxywillbevotedasdirectedbytheshareholder(s).Ifnosuchdirectionsareindicated,thisproxywillbevotedFOReachdirectornomineeandFORProposals2-6andinthediscretionoftheProxiesuponsuchotherbusinessasmayproperlycomebeforethemeetingoranyadjournmentorpostponementthereof.(Itemstobevotedappearonreverseside)CUSHMAN&WAKEFIELDplcqIFVOTINGBYMAIL,SIGN,DETACHANDRETURNTHEBOTTOMPORTIONINTHEENCLOSEDENVELOPE.qCNon-VotingItems++ChangeofAddress—Pleaseprintnewaddressbelow.ProxymaterialsfortheAnnualGeneralMeetingofShareholdersareavailableat:http://ir.cushmanwakefield.com