UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

(Rule 14a-101)

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LOGO  

Sealed Air Corporation

8215 Forest Point
2415 Cascade Pointe Boulevard


Charlotte, NC 28273

North Carolina 28208

April 8, 20165, 2018

Dear Fellow Stockholder:

It is my pleasure to invite you to attend the Annual Meeting of Stockholders of Sealed Air Corporation scheduled to be held on Thursday, May 19, 201617, 2018, at 10:00 a.m., Eastern Time,daylight time. We are pleased to announce that this year’s Annual Meeting will be a “virtual meeting.” Each stockholder will be able to participate in the Annual Meeting – including casting votes and submitting questions – by accessing a live webcast atwww.virtualshareholdermeeting.com/SEE2018 and entering the Crowne Plaza Charlotte Executive Park at 5700 Westpark Drive, Charlotte, North Carolina 28217. Your Board16-digit control number included on the stockholder’s Notice of Directors and senior management look forward to greeting you atInternet Availability of Proxy Materials or proxy card.

During the meeting.

At this meeting, youAnnual Meeting, stockholders will be asked to elect the entire Board of Directors, of Sealed Airto amend and restate our 2014 Omnibus Incentive Plan, and to ratify the selectionappointment of Ernst & Young LLP as our independent registered public accounting firmauditor for 2016. In addition, you2018. We also will be askedasking stockholders for an approval, by an advisory vote, to approveof our 2017 executive compensation as disclosed in the proxy statement.Proxy Statement for the Annual Meeting. These matters are important, and we urge you to vote in favor of the election of each of the director nominees, our executive compensationthe amendment and restatement of the 2014 Omnibus Incentive Plan, the ratification of the appointment of our independent auditor.auditor, and the approval of our 2017 executive compensation.

For your convenience, we are also offering a webcast of the meeting. If you choose to follow the meeting via webcast, go to http://sealedair.com/investors shortly before the meeting time and follow the instructions to join the event. We will also provide a replay of this meeting for your reference.

This year, as in 2015, we are again taking advantage of the Securities and Exchange Commission rule that allows us to furnishfurnishing proxy materials to our stockholders over the Internet. Thise-proxy process expedites stockholders’ receipt of proxy materials, lowers our costs and reduces the environmental impact of ourthe Annual Meeting. Today we sent to most of our stockholders a Notice of Internet Availability of Proxy Materials containing instructions on how to access our 2016 proxy statementProxy Statement for the Annual Meeting and 2015 annual report andour 2017 Annual Report to Stockholders, as well as how to vote via the Internet. Other stockholders will receive a copycopies of the Proxy Statement, a proxy statementcard and annual reportthe 2017 Annual Report by mail ore-mail.

Regardless of the number of shares of common stock you own, itIt is important that you vote your shares of common stock in person or by proxy.proxy, regardless of the number of shares you own. You will find the instructions for voting on theyour Notice of Internet Availability of Proxy Materials or proxy card. We appreciate your prompt cooperation.attention.

The Board of Directors invites you to participate in the Annual Meeting so that management can discuss business trends with you, listen to your suggestions and answer your questions. Thank you for your continuing support, and we look forward to joining you at Sealed Air’s first webcast stockholder meeting.

Sincerely,

LOGO

Edward L. Doheny II

President and Chief Executive Officer


LOGO

Notice of Annual Meeting of Stockholders

Sealed Air Corporation, a Delaware corporation (“Sealed Air”), will hold its Annual Meeting of Stockholders (the “Annual Meeting”) on May 17, 2018, at 10:00 a.m., Eastern daylight time. Each stockholder may participate in the Annual Meeting, including casting votes and submitting questions during the Annual Meeting, by accessing a live webcast atwww.virtualshareholdermeeting.com/SEE2018 and then using the16-digit control number provided on the Notice of Internet Availability of Proxy Materials or proxy card being delivered to the stockholder.

The purposes for the Annual Meeting are to consider and vote upon:

1.Election of each of the following nominees as Directors:

Michael Chu

Edward L. Doheny II

Patrick Duff

Henry R. Keizer

Jacqueline B. Kosecoff

Neil Lustig

Richard L. Wambold

Jerry R. Whitaker

2.Amendment and restatement of 2014 Omnibus Incentive Plan

3.Ratification of the appointment of Ernst & Young LLP as Sealed Air’s independent auditor for the year ending December 31, 2018

4.Approval, as an advisory vote, of 2017 executive compensation as disclosed in the attached Proxy Statement

5.Such other matters as properly come before the Annual Meeting

The Board of Directors has fixed the close of business on March 19, 2018 as the record date for the determination of stockholders entitled to notice of, and to vote at, the Annual Meeting. Sealed Air is making available or mailing its 2017 Annual Report to Stockholders to all stockholders of record as of the record date. Additional copies of the 2017 Annual Report are available upon written request to the Corporate Secretary at Sealed Air Corporation, 2415 Cascade Pointe Boulevard, Charlotte, North Carolina 28208.

Because it is important that as many stockholders as possible be represented at the Annual Meeting, stockholders should review the attached Proxy Statement promptly and carefully and then vote. A stockholder may vote by following the instructions for voting set forth on the Notice of Internet Availability of Proxy Materials or proxy card. A stockholder who receives a paper copy of the proxy card by mail will also receive a postage-paid, addressed envelope that can be used to return the completed proxy card. A stockholder who joins the Annual Meeting may vote electronically at the Annual Meeting.

Sealed Air will maintain a list of stockholders of record as of the record date at Sealed Air’s corporate headquarters, 2415 Cascade Pointe Boulevard, Charlotte, North Carolina, for a period of ten days prior to the Annual Meeting.

On behalf of yourthe Board of Directors, we thank you for your ongoing support.

Sincerely,THOMAS C. LAGALY

Vice President, Acting General Counsel and Secretary

LOGO

Jerome A. Peribere

President and

Chief Executive Officer


LOGO

SEALED AIR CORPORATION

8215 Forest Point Boulevard

Charlotte, North Carolina 28273

April 5, 2018

 

Important Notice Regarding Availability of Proxy Materials for Annual Meeting on May 17, 2018:

Sealed Air’s Notice of Annual Meeting of Stockholders, Proxy Statement and

2017 Annual Report to Stockholders are available atproxyreport.sealedair.com.

PROXY STATEMENT

Dated


LOGOSealed Air Corporation
2415 Cascade Pointe Boulevard
Charlotte, North Carolina 28208

Proxy Statement dated April 8, 20165, 2018

For the 20162018 Annual Meeting of Stockholders

General Information

We areSealed Air Corporation, a Delaware corporation, is furnishing this Proxy Statement and related proxy materials in connection with the solicitation by theits Board of Directors of Sealed Air Corporation (“Sealed Air,” the “Company,” “we,” “us” or “our”), a Delaware corporation, of proxies to be voted at our 2016its 2018 Annual Meeting of Stockholders and at any adjournments. We areSealed Air Corporation is providing these materials to the holders of Sealed Airrecord of its common stock, par value $0.10 per share. We areshare, as of the close of business on March 19, 2018 and is first making available or mailing the materials on or about April 8, 2016 to stockholders of record at the close of business on March 21, 2016.5, 2018.

The Annual Meeting is scheduled to be held:held by webcast as follows:

 

Date:Date

    Thursday, May 19, 201617, 2018

Time:

    10:00 a.m., Eastern Timedaylight time

Place:Meeting Website Address:

    

Crowne Plaza Charlotte Executive Park

5700 Westpark Drive

Charlotte, North Carolina 28217

www.virtualshareholdermeeting.com/SEE2018

Your vote is important. Please see the detailed information that follows.


Contents

2018 Proxy Summary

1

Questions and Answers about the Annual Meeting

7

Vote Required for Election or Approval

11

Corporate Governance

13

Corporate Governance Guidelines

13

Independence of Directors

13

Code of Conduct

13

Board Oversight of Risk

13

Communicating with Directors

13

Board Leadership Structure

14

Board of Directors Overview

14

Audit Committee

15

Nominating and Corporate Governance Committee

15

Organization and Compensation Committee

16

Compensation Committee Interlocks and Insider Participation

17

Certain Relationships and Related-Person Transactions

18

Director Compensation

19

Proposal 1. Election of Directors

23

Director Qualifications

23

Identifying and Evaluating Nominees for Directors

24

Information Concerning Nominees

24

Nominees for Election as Directors

25

Section 16(a) Beneficial Ownership Reporting Compliance

30

Beneficial Ownership Table

30

Executive Compensation

33

Compensation Discussion and Analysis

33

Compensation Committee Report

54

Board Oversight of Compensation Risks

54

2017 Summary Compensation Table

55

Grants of Plan-Based Awards in 2017

56

Outstanding Equity Awards at 2017 FiscalYear-End

58

Stock Vested in 2017

59

Pension Benefits in 2017

60

Nonqualified Deferred Compensation in 2017

61

Payments Upon Termination or Change in Control

61

CEO Pay Ratio

65

Equity Compensation Plan Information

66

Proposal 2. Amendment and Restatement of 2014 Omnibus Incentive Plan

67

Proposal 3. Ratification of Appointment of Independent Auditor for 2018

77

Proposal 4. Approval of Executive Compensation on Advisory Basis

78

Principal Independent Auditor Fees

79

Audit CommitteePre-Approval Policies and Procedures

79

Report of Audit Committee

80

Stockholder Proposals for 2019 Annual Meeting

81

Delivery of Documents to Security Holders Sharing an Address

81

Other Matters

82

Standards For Director Independence

Annex A

Policy and Procedure for Stockholder Nominations to the Board

Annex B

Qualifications for Nomination to the Board

Annex C

Amended and Restated 2014 Omnibus Incentive Plan

Annex D


20162018 Proxy Summary

This summary highlights information contained elsewhere in this proxy statement.Proxy Statement. This summary does not contain all of the information that you should consider, and you should read the entire proxy statementProxy Statement carefully before voting. References in this Proxy Statement to “Sealed Air,” and to “we,” “us,” “our” and similar terms, refer to Sealed Air Corporation.

Annual Meeting of Stockholders

 

Time and Date

  10:00 a.m. (ET), Eastern daylight time, on May 19, 201617, 2018

PlaceMeeting Webcast Address

  

Crowne Plaza Charlotte Executive Park

www.virtualshareholdermeeting.com/SEE2018
5700 Westpark Drive
Charlotte, North Carolina 28217

Record Date

  

March 21, 2016

Voting

Stockholders of record of Sealed Air common stock at the closeClose of business on March 21, 2016, the record date,19, 2018

Voting

Holders will be entitled to one vote at the Annual Meeting. EachMeeting for each of the outstanding share is entitled to one vote.

shares of our common stock they hold of record as of the record date.

Outstanding Shares

(as of March 21, 2016)Votes Eligible to be Cast

  

196,720,368

A total of 166,512,914 votes are eligible to be cast on each proposal at the Annual Meeting.

Annual Meeting Agenda

 

  

Board Vote Proposal

Recommendation

  Board Recommendation
1

Election of Directors (Proposals 1-10)directors

  FOR each Director Nomineenominee
2  

 Advisory Vote to Approve our Executive CompensationAmendment and restatement of 2014 Omnibus Incentive Plan

  FOR
3

Ratification of Auditorsappointment of independent auditor for 2018

  FOR
4  

Approval of 2017 executive compensation on an advisory basis

FOR

How to Cast Your Vote

You can vote by any of the following methods:

 

· Until 11:59 p.m., EDT, on May 16, 2018  At the Annual Meeting on May 17, 2018

Internet (http://:www.proxyvote.com for

Internet:by joining the Annual Meeting atwww.virtualshareholdermeeting.com/SEE2018if you are the stockholder of record or if you hold a proxy from the broker, bank or other nominee holding your shares in street name

Telephone:

 +1-800-454-8683 if you beneficially own shares held in “street name” holders

 +1-800-690-6903 if you are the stockholder of record

  Completed, signed and www.investorvote.com/SEE for registered holders) until May 18, 2016;returnedproxy card

If you participate in our Profit-Sharing Plan or 401(k) Thrift Plan, you may use the proxy card to provide voting instructions to Fidelity Management Trust Company, as trustee, andyour completed, signed card must be delivered to the trustee by 11:59 p.m., Eastern daylight time, onMay 14, 2018.



Proposal 1.    Election of Directors

We are asking stockholders to elect the following eight director nominees. Each of the nominees currently serves as a member of our Board of Directors.

Name Age  Director
Since
  Occupation Experience/
Qualifications
 Independent Committee
Memberships
 Other Boards
     Yes No  

Michael Chu

  69   2002  

Co-Founder and Managing Director of IGNIA Fund, Senior Advisor of Pegasus Capital

 

Senior Lecturer at Harvard Business School

 

  Leadership

 

  Global

 

  Finance

   

  Organization and Compensation

 

  Arco Dorados Holdings Inc.

Edward L. Doheny II

  55   2017  President and CEO 

  Leadership

 

  Global

 

  Industry

    

  John Bean Technologies Corporation

Patrick Duff

  60   2010  General Partner of Dunham Partners, LLC 

  Leadership

 

  Global

 

  Education

   

  Audit

 

  Nominating and Corporate Governance (Chair)

 

Henry R. Keizer

  61   2016  Chairman of Hertz Global Holdings, Inc. 

  Leadership

 

  Finance

 

  Industry

   

  Audit

 

  BlackRock Funds

 

  Hertz Global Holdings, Inc.

 

  WABCO Holdings Inc.

Jacqueline B. Kosecoff

  68   2005  

Managing Partner of Moriah Partners, LLC

 

Senior Advisor to Warburg Pincus

 

  Leadership

 

  Industry

 

  Global

   

  Nominating and Corporate Governance

 

  Organization and Compensation (Chair)

 

  athenahealth, Inc.

 

  Houlihan Lokey, Inc.

 

  STERIS Corporation

Neil Lustig

  56   2015  CEO of Sailthru, Inc. 

  Leadership

 

  Innovation

 

  Industry

   

  Nominating and Corporate Governance

 

  Organization and Compensation

 

Richard L. Wambold

  66   2012  Retired CEO of Reynolds/Pactiv Foodservice and Consumer Products 

  Leadership

 

  Industry

 

  Global

   

  Organization and Compensation

 

Jerry R. Whitaker

  67   2012  Retired President of Electrical Sector-Americas, Eaton Corporation 

  Leadership

 

  Global

 

  Finance

    

  Audit (Chair)

 

  Nominating and Corporate Governance

 

  Matthews International Corporation



Proposal2. Amendment and Restatement of 2014 Omnibus Incentive Plan

We are asking stockholders to approve the amendment and restatement of our 2014 Omnibus Incentive Plan to, among other things, add 2,200,000 shares to the number of shares available for awards under the plan and extend the term of the plan from May 21, 2024 to May 18, 2028.

 

Proposal·

Telephone (1-800-454-86833.Ratification of Appointment of Independent Auditor for “street name” holders and 800-652-8683 for registered holders) until May 18, 2016;

2018
·

Completing, signing and returning your proxy or voting instruction card before May 18, 2016; or

We are asking stockholders to ratify the Audit Committee’s retention of Ernst & Young LLP, an independent registered public accounting firm, as our independent auditor to examine and report on our consolidated financial statements and the effectiveness of our internal control over financial reporting for the fiscal year ending December 31, 2018.

 

Proposal·

In person, at the Annual Meeting: If you are a stockholder4. Approval of record, your admission ticket is attached to your proxy card. If your shares are held in the name of a broker, nominee or other intermediary, you must bring proof of ownership with you to the meeting.

2017 Executive Compensation on an Advisory Basis

We are asking for stockholder approval, on an advisory basis in accordance with Securities and Exchange Commission rules, of the 2017 compensation of our “named executive officers” as disclosed under “Executive Compensation” in this Proxy Statement, including the disclosures set forth thereunder in “—Compensation Discussion and Analysis” and the compensation tables and related narrative discussion.



PROXY SUMMARY

Director Nominees

 Name Age  

Director

Since

  Occupation Experience/
Qualifications
 Independent  Committee Memberships Other Company Boards
     Yes  No   

 Michael Chu

  67    2002   Managing Director of 

 Leadership

  X       

 Organization and

 

 Arcos Dorados

   IGNIA Fund, Senior 

 Global

      Compensation 
   Advisor of Pegasus 

 Finance

    
   Capital and Senior     
   Lecturer at Harvard     
   Business School     

 Lawrence R. Codey

  71    1993   Retired President 

 Leadership

  X    

 Audit

 

 Horizon Blue Cross  Blue

   and COO of PSE&G 

 Government

       Shield of New Jersey
    

 Finance

    

 New Jersey Resources

           Corporation

 Patrick Duff

  58    2010   General Partner of 

 Leadership

  X    

 Audit

 
   Dunham Partners, LLC 

 Finance

   

 Nominating and  Corporate

 
    

 Education

      Governance (Chair) 

 Jacqueline B. Kosecoff

  66    2005   Managing Partner of 

 Leadership

  X    

 Nominating and  Corporate

 

 athenahealth, Inc.

   Moriah Partners, LLC 

 Industry

      Governance 

 STERIS Corporation

   and senior advisor 

 Global

   

 Organization and

 
   to Warburg Pincus       Compensation (Chair) 

 Neil Lustig

  54    2015   CEO of Sailthru, Inc. 

 Leadership

  X    

 Nominating and  Corporate

 
    

 Innovation

      Governance 
    

 Industry

   

 Organization and

 
          Compensation 

 Kenneth P. Manning

  74    2002   Chairman 

 Leadership

  X    

 Audit

 

 Sensient Technologies

   

of Sensient

Technologies

 

 Industry

  Global

   

 Nominating and Corporate

   Governance

    Corporation
   Corporation     
        

 William J. Marino

  72    2002   Retired Chairman, 

 Leadership

  X    

 Chairman of the Board

 

 Sun Bancorp, Inc.

   President and CEO 

 Industry

    

 WebMD Health Corp.

   of Horizon Blue 

 Governance

    
   Cross Blue Shield of     
   New Jersey     

 Jerome A. Peribere

  61    2012   President and 

 Leadership

   X    

 Xylem Inc.

   CEO of Sealed 

 Global

    
   Air Corporation 

 Industry

    

 Richard L. Wambold

  64    2012   Retired CEO of 

 Leadership

  X    

 Organization and

 
   Reynolds/Pactiv 

 Industry

      Compensation 
   Foodservice and 

 Global

    
   Consumer Products     

 Jerry R. Whitaker

  65    2012   Retired President of 

 Leadership

  X    

 Audit (Chair)

 

 Matthews International

   Electrical Sector-Americas, Eaton 

  Global

  Finance

   

  Nominating and Corporate

   Governance

    Corporation
   Corporation     
                         



PROXY SUMMARY

Key Features of Our Executive Compensation Program

Key Features

The Compensation Committee believes that our executive compensation program follows best practices aligned to long-term stockholder interests, as summarized below:

 

What We Do

ü  Provide a majority of compensation in performance-based compensation

 

LOGO

LOGO
  Consistent with our goal of creating a performance-oriented environment; 85%environment, 88% of total direct compensation for CEO, and 70%79% of total direct compensation for other named executive officers (excluding Mr. Doheny), is performance-based

ü  Pay for performance based on goals for both annual and long-term awards

 

LOGO

LOGO
  Use multiple, balanced measures;measures, including use of both absolute and relative measures for long-term awards

ü  Balanced mix of awards tied to annual and long-term performance

 

LOGO

LOGO
  For CEO, total direct compensation includes 19%16% in annual incentive award and 66%72% in long-term award at target; for 2017, 100% of long-term awards for named executive officers are(other than Mr. Doheny) were performance-based

ü  Stock ownership and retention policy

 

LOGO

LOGO
  

Multiple of base salary and cash bonus must be held in common stock—stock — 6x for CEO, 3.5x for CFO and at least 2x3x for other named executive officers (3x for the Senior Vice Presidents)

Presidents; 100% ofafter-tax shares must be held until ownership goal is met; 50% of additional after-tax shares expected to be held until retirement

met

ü  Compensation recoupment (clawback) policy

 

LOGO

LOGO
  Recovery of annual or long-term incentive compensation based on achievement of financial results that were subsequently restated due to error or misconduct, regardless of whether the named executive officer was responsible for the error or misconduct

ü  Receive advice from independent compensation consultant

 

LOGO

LOGO
  Compensation consultant (Cook & Co.)(FW Cook) provides no other services to the CompanySealed Air
What We Don’t Do

×   No supplemental executive retirement plans for named executive officers

 

LOGO

LOGO
  Consistent with focus on performance- orientedperformance-oriented environment; reasonable and competitive retirement programs offered

×   No change in control excise taxgross-ups

 

LOGO

LOGO
  Consistent with focus on performance-oriented environment and commitment to best practices aligned to long-term stockholder interests

×   No excessive perquisites or severance benefits

 

LOGO

LOGO
  Consistent with focus on performance-oriented environment and commitment to best practices aligned to long-term stockholder interests

×   No single-trigger vesting of equity compensation upon a change in control

 

LOGO

LOGO
  Under our equity compensation plans, vesting following a change in control requires involuntary termination of employment (double-trigger)



PROXY SUMMARY

  Key Elements of OurKey Elements of our Executive Compensation Program

Compensation ComponentsProgram

The following table summarizes the main components of our executive compensation program for U.S. employees, including for our named executive officers, are set forth in the following table. A more detailed description is provided in the Compensation Discussion and Analysis.officers.

 

Compensation
Element
  Description  Objectives
Base Salary  -

  Fixed cash compensation

  

-  Appropriate level of fixed compensation based on role and duties

- Assists

  Assist with recruitment and retention

Annual Incentive  

-  Annual cash award if performance metrics are achieved

-

  Target award is based on a percentage of base salary

-

  Payouts from0-200% of target based on performance resultscompany and individual performance review

-

  Executive may elect all or a portion of the award in the form of a restricted stock award vesting over two years, with a 25% enhancement

  

- Intended to reward  Reward executives for driving superior operating and financial results over aone-year timeframe

- Creates

  Create a direct connection between business success and financial reward

Long-Term Incentives  

-  Performance Share Unitsshare units earned based on performance, typically over three-year performance period with0-200% payout

-

  Occasional awards of restricted stock or restricted stock units that vest at the end of three years of service

  

- Rewards  Reward achievement of longer-term goals

- Creates

  Create direct connection between longer termlonger-term business success and financial reward

- Encourages

  Encourage retention

Retirement Plans  

-  Standard plans generally offered to all salaried employees based on location of services

-

  No supplemental executive retirement plans

  

- Provides  Provide retirement income for participants

- Assists

  Assist with recruitment and retention

Deferred Compensation  

-  Elective, nonqualified deferred compensation plan for select U.S. employees

-

  Permits deferral of salary and certain cash incentives

-

  No CompanySealed Air contributions are included

  

- Provides  Provide opportunity to save for retirement

- Assists

  Assist with recruitment and retention

Post-Employment Benefits  

-  Executive Severance Plan provides modestcompetitive benefits in case of involuntary termination; no single-trigger vesting of equity awards upon a change in control

- CEO

  Mr. Peribere has post-employment benefits under the terms of his employment arrangement

  Mr. Doheny also has post-employment benefits under the terms of his offer letter agreement

  

- Assures  Assure continuing performance of executives in the face of possible termination of employment without cause

- Assists

  Assist with recruitment and retention

Other Benefits  

-  Health care and life insurance programs

-

  Limited perquisites

  

-  Competitive with peer companies

- Assists

  Assist with recruitment and retention



PROXY SUMMARY

20152017 Executive Total Direct Compensation Mix

 

LOGOLOGO

Director and Executive Compensation

2015 DIRECTOR COMPENSATION TABLE

Director  

Fees Earned or

Paid in Cash

($)

   

Stock Awards

($)

   

Total

($)

 

Hank Brown

   24,375     0     24,375  

Michael Chu

   95,000     100,024     195,024  

Lawrence R. Codey

   95,000     100,024     195,024  

Patrick Duff

   110,000     100,024     210,024  

Jacqueline B. Kosecoff

   27,500     185,039     212,539  

Neil Lustig

   87,500     100,024     187,524  

Kenneth P. Manning

   102,500     100,024     202,524  

William J. Marino

   136,000     160,008     296,008  

Richard L. Wambold

   95,000     100,024     195,024  

Jerry R. Whitaker

   110,000     100,024     210,024  



PROXY SUMMARY

Summary Compensation Table

Name and

Principal Position

 Year  

Salary

($)

  

Bonus

($)

  

Stock

Awards

($)

  

Non-Equity

Incentive

Plan

Compensation

($)

  

All Other

Compensation

($)

  

Total

($)

 

Jerome A. Peribere

  2015    1,180,188    0    6,918,394    0    31,800    8,130,382  
President and Chief Executive Officer  2014    1,150,000    0    10,775,959    0    37,200    11,963,159  
  2013    1,016,667    0    6,158,787    900,000    226,383    8,301,837  

Carol P. Lowe

  2015    613,500    0    1,195,493    418,662    106,772    2,334,427  
Senior Vice President and
Chief Financial Officer
  2014    585,844    0    2,147,601    562,394    43,296    3,339,134  
  2013    540,313    0    908,602    449,507    24,481    1,922,903  

Emile Z. Chammas

  2015    501,025    0    807,579    395,093    62,607    1,766,304  

Senior Vice President,

Chief Supply Chain Officer

  2014    477,480    0    1,542,639    530,732    286,498    2,837,349  
  2013    437,100    0    967,459    0    34,606    1,439,165  

Karl R. Deily

  2015    502,863    0    914,505    351,371    63,425    1,832,164  
Vice President, President
Food Care
  2014    470,500    0    1,642,171    456,287    44,233    2,613,292  
  2013    410,000    0    724,591    357,268    25,974    1,517,833  

Ilham Kadri

  2015    433,695    0    713,078    346,062    378,795    1,871,360  

Vice President, President

Diversey Care

  2014    433,073    0    1,542,576    466,807    131,753    2,574,209  
  2013    466,567    0    734,203    355,597    198,458    1,754,825  

Advisory Vote to Approve Our Executive Compensation

We are asking for stockholder approval of the compensation of our named executive officers as disclosed in this proxy statement in accordance with SEC rules, which disclosures include the disclosures under “Executive Compensation—Compensation Discussion and Analysis,” the compensation tables and the narrative discussion following the compensation tables.

Auditors

The Audit Committee has approved the retention of Ernst & Young LLP, an Independent Registered Public Accounting Firm, as the independent auditor of Sealed Air to examine and report on the Company’s consolidated financial statements and the effectiveness of the Company’s internal control over financial reporting for the fiscal year ending December 31, 2016, subject to ratification of the retention by the stockholders at the Annual Meeting.



Notice of Annual Meeting of Stockholders

of

Sealed Air Corporation

We will hold the Annual Meeting of Stockholders of Sealed Air Corporation, a Delaware corporation, on May 19, 2016 at 10:00 a.m., Eastern Time, at Crowne Plaza Charlotte Executive Park at 5700 Westpark Drive, Charlotte, North Carolina 28217. The purposes for the Annual Meeting are to elect Sealed Air’s entire Board of Directors, to provide for an advisory vote of the stockholders to approve our executive compensation as disclosed in the attached proxy statement, to ratify the appointment of the independent auditor of Sealed Air, and to transact such other business as may properly come before the meeting. The individual proposals are:

  1.Election of Michael Chu as a Director.

  2.Election of Lawrence R. Codey as a Director.

  3.Election of Patrick Duff as a Director.

  4.Election of Jacqueline B. Kosecoff as a Director.

  5.Election of Neil Lustig as a Director.

  6.Election of Kenneth P. Manning as a Director.

  7.Election of William J. Marino as a Director.

  8.Election of Jerome A. Peribere as a Director.

  9.Election of Richard L. Wambold as a Director.

10.Election of Jerry R. Whitaker as a Director.

11.Advisory vote to approve our executive compensation as disclosed in the proxy statement.

12.Ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for the year ending December 31, 2016.

13.In accordance with the Proxy Committee’s discretion, such other matters as may properly come before the meeting.

The Board of Directors has fixed the close of business on March 21, 2016 as the record date for the determination of stockholders entitled to notice of and to vote at the Annual Meeting.

We have sent or made available a copy of our 2015 Annual Report to Stockholders to all stockholders of record. Additional copies are available upon request.

We invite you to attend the meeting so that management may discuss business trends with you, listen to your suggestions, and answer any questions that you may have. Because it is important that as many stockholders as possible be represented at the meeting, please review the proxy statement promptly and carefully and then vote. You may vote by following the instructions for voting set forth on the Notice of Internet Availability of Proxy Materials or on your proxy card, or if you receive a paper copy of the proxy card by mail, you may complete and return the proxy card in the accompanying postage-paid, addressed envelope. If you attend the meeting, you may vote your shares personally even though you have previously voted by proxy.

The only voting securities of the Company are the outstanding shares of its common stock, par value $0.10 per share. The Company will keep a list of the stockholders of record at its principal office at 8215 Forest Point Boulevard, Charlotte, North Carolina 28273 for a period of ten days prior to the Annual Meeting.

On behalf of the Board of Directors,

NORMAN D. FINCH JR.

Vice President, General Counsel

and Secretary

Charlotte, North Carolina

April 8, 2016

Important Notice Regarding the Availability of Proxy Materials

for the Stockholder Meeting to be held on May 19, 2016

Please note that the Company’s Notice of Annual Meeting of Stockholders, Proxy Statement for the Annual Meeting of Stockholders and 2015 Annual Report are available at:

http://proxyreport.sealedair.com

Contents

 

General Information

1

2016 Proxy Summary

2

Questions and Answers about the Annual Meeting

11

Vote Required for Election or Approval

15

Corporate Governance

16

Corporate Governance Guidelines

16

Independence of Directors

16

Code of Conduct

16

Board Oversight of Risk

17

Communicating with Directors

17

Board Leadership Structure

17

Board of Directors Overview

17

Audit Committee

18

Nominating and Corporate Governance Committee

19

Organization and Compensation Committee

19

Compensation Committee Interlocks and Insider Participation

20

Certain Relationships and Related Person Transactions

21

Director Compensation

22

Election of Directors (Proposals 1-10)

26

Director Qualifications

26

Identifying and Evaluating Nominees for Directors

27

Information Concerning Nominees

27

Nominees for Election as Directors

28

Section 16(a) Beneficial Ownership Reporting Compliance

33

Beneficial Ownership Table

33

Executive Compensation

36

Compensation Discussion and Analysis

36

Compensation Committee Report

55

2015 Summary Compensation Table

56

Grants of Plan-Based Awards in 2015

58

Outstanding Equity Awards at 2015 Fiscal Year-End

60

Stock Vested in 2015

62

Pension Benefits in 2015

62

Nonqualified Deferred Compensation in 2015

63

Payments Upon Termination or Change in Control

63

Equity Compensation Plan Information

68

Advisory Vote to Approve Our Executive Compensation (Proposal 11)

69

Selection of Independent Auditor (Proposal 12)

70

Principal Independent Auditor Fees

71

Audit Committee Pre-Approval Policies and Procedures

71

Report of the Company’s Audit Committee

72

Stockholder Proposals for the 2017 Annual Meeting

73

Delivery of Documents to Security Holders Sharing an Address

73

Other Matters

74

Sealed Air Corporation Standards For Director Independence

Annex A

Policy and Procedure for Stockholder Nominations to the Board

Annex B

Qualifications for Nomination to the Board

Annex C

Directions to the Annual Meeting of Stockholders

Back Cover

              Name and

      Principal Position

 Year  

Salary

($)

  

Bonus

($)

  

Stock Awards

($)

  

Non-Equity

Incentive Plan

Compensation

($)

  

All Other

Compensation

($)

  

Total

($)

 

Jerome A. Peribere

  2017   1,250,000   0   7,559,026   2,055,625   24,300   10,888,951 

President and CEO

  2016   1,250,000   0   13,527,824   0   31,800   14,809,624 
  2015   1,180,188   0   6,918,394   0   31,800   8,130,382 

William G. Stiehl

  2017   336,548   0   304,464   192,523   24,300   857,835 

Acting CFO

       

Edward L. Doheny II

  2017   335,417   0   2,030,800   502,180   13,500   2,881,896 

Chief Operating Officer and

CEO-Designate

       

Emile Z. Chammas

  2017   563,581   0   941,709   589,098   24,300   2,118,688 

Senior Vice President,

  2016   518,832   0   830,218   317,546   31,800   1,698,395 

Chief Supply Chain Officer

  2015   501,025   0   807,579   395,093   62,607   1,766,304 

Karl R. Deily

  2017   560,452   0   1,071,817   437,996   24,300   2,094,564 

Senior Vice President,

  2016   521,350   0   834,244   287,029   43,078   1,685,701 

President Food Care

  2015   502,863   0   914,505   351,371   63,425   1,832,164 

Carol P. Lowe

  2017   536,832   0   1,101,716   0   24,300   1,662,848 

Former Senior Vice

President and CFO

(resigned 2017)

  2016   635,304   0   1,080,073   407,865   31,800   2,155,042 


Questions and Answers about the Annual Meeting

 

Q:Why am I receiving these materials?When and where will the Annual Meeting be held?

 

A:We are providing these proxy materials to you in connection with ourThis year the Annual Meeting of Stockholders of Sealed Air Corporation, which will take place on May 19, 2016. These materials were first made available on the Internet or mailedwe refer to stockholders on or about April 8, 2016. You are invited to attendbelow as the Annual Meeting, and requested to votewill be held by webcast atwww.virtualshareholdermeeting.com/SEE2018, beginning at 10:00 a.m., Eastern daylight time, on the proposals described in this Proxy Statement.Thursday, May 17, 2018.

 

Q:What materials have been prepared for stockholders in connection with the Annual Meeting?

A:We are furnishing stockholders of record with the following proxy materials:

our 2017 Annual Report to Stockholders, which includes our audited consolidated financial statements;

this Proxy Statement for the 2018 Annual Meeting, which also includes a letter from our President and Chief Executive Officer to Stockholders and a Notice of Annual Meeting of Stockholders; and

for stockholders receiving printed copies of the 2017 Annual Report and Proxy Statement by mail, a proxy card for the Annual Meeting.

These materials were first made available on the Internet or mailed to stockholders on or about April 5, 2018.

Q:Why didwas I receivemailed a notice in the mail regarding theNotice of Internet availabilityAvailability of proxy materials instead ofProxy Materials rather than a fullprinted set of proxy materials?

 

A:In accordance with rules and regulations adopted by the Securities and Exchange Commission, or SEC,we are furnishing the proxy materials to most stockholders by providing access via the Internet, instead of mailing a printed copy of our proxy materials to each stockholder of record, we may furnish proxy materials, including this Proxy Statement and our 2015 Annual Report to Stockholders, by providing access to such documents via the Internet.copies. Thise-proxy process expedites our stockholders’ receipt of proxy materials, lowers our costs and reduces the environmental impact of ourthe Annual Meeting.

Most stockholders will not receive printed copies of the proxy materials unless they request them. Instead, we have mailed aThe Notice of Internet Availability of Proxy Materials that will telltells you how to access and review all of the proxy materials on the Internet. The notice also tells youInternet and how to vote on the Internet. IfThe Notice also provides instructions you would likemay follow to receive arequest paper or e-mail copye-mailed copies of our proxy materials, you should follow the instructions for requesting such materials in the notice.materials.

 

Q:Are the proxy materials available via the Internet?

A:You can access the proxy materials for the Annual Meeting atproxyreport.sealedair.com.

Q:What is a proxy?

 

A:OurBecause it is important that as many stockholders as possible be represented at the Annual Meeting, the Board of Directors is asking forthat you review the Proxy Statement carefully and then vote by following the instructions set forth on the Notice of Internet Availability of Proxy Materials or proxy card. In voting prior to the Annual Meeting, you will deliver your proxy. Thisproxy to the Proxy Committee, which means you will authorize usthe Proxy Committee to vote your shares at the 2016 Annual Meeting in the way you instruct. The Proxy Committee consists of Edward L. Doheny II, William G. Stiehl and Thomas C. Lagaly. All shares represented by valid proxies will be voted in accordance with the stockholder’s specific instructions.

 

Q:What is included in these materials?matters will the stockholders vote on at the Annual Meeting?

 

A:•    ProposalThese materials include:

Our Proxy Statement for the 2016 Annual Meeting; and

Our 2015 Annual Report to Stockholders, which includes our audited consolidated financial statements.

If you requested or receive printed versions1. Election of these materials by mail, these materials also include the proxy card for the Annual Meeting.

Q:What are the stockholders voting on?following eight director nominees:

 

A:•  Election of the entire Board of Directors:
Michael ChuHenry R. KeizerRichard L. Wambold
Edward L. Doheny IIJacqueline B. KosecoffJerry R. Whitaker
Patrick DuffNeil Lustig

The ten nominees are:

Michael Chu

Lawrence R. Codey

Patrick Duff

Jacqueline B. Kosecoff

Neil Lustig

Kenneth P. Manning

William J. Marino

Jerome A. Peribere

Richard L. Wambold

Jerry R. Whitaker

Advisory vote to approveProposal 2.Amendment and restatement of our executive compensation; and2014 Omnibus Incentive Plan.

RatificationProposal 3.Ratification of Ernst & Young LLP asappointment of our independent registered public accounting firmauditor for 2016.

2018.

 

Proposal 4. Approval, as an advisory vote, of 2017 executive compensation as disclosed in this Proxy Statement.

Q:Who can vote?vote at the Annual Meeting?

 

A:Stockholders of record of Sealed Airour common stock at the close of business on March 21, 2016,19, 2018, the record date, will be entitled to vote at the Annual Meeting. AsA total of 166,511,216 shares of common stock were outstanding as of the close of businessrecord date. Each share outstanding on the record date there were 196,720,368 shares of our common stock outstanding. Each outstanding share iswill be entitled to one vote.vote on each proposal. In addition, holders of record of W.R. Grace & Co. common stock issued prior to March 31, 1998 and outstanding at the record date will have an aggregate of 1,698 votes on each proposal.

As a result, a total of 166,512,914 votes will be eligible to be cast on each proposal at the Annual Meeting.

 

Q:What is a stockholder of record?

 

A:A stockholder of record or registered stockholder is a stockholder whose ownership of Sealed Air common stock is reflected directly on the books and records of our transfer agent, Computershare.

Q:What does it mean for a broker or other nominee to hold shares in “street name”?

A:If you hold stock throughbeneficially own shares held in an account with a broker, bank broker or similar organization, you are considered the beneficial owner of shares held in “street name” and are not a stockholder of record. For shares held in street name,that organization is the stockholder of record and is your bank, broker or similar organization.considered to hold those shares in “street name.”

An organization that holds your beneficially owned shares in street name will vote in accordance with the instructions you provide. If you do not provide the organization with specific voting instructions with respect to a proposal, under the rules of the New York Stock Exchange the organization’s authority to vote your shares will depend upon whether the proposal is considered a “routine” ornon-routine matter.

The organization generally may vote your beneficially owned shares on routine items for which you have not provided voting instructions to the organization. The only routine matter expected to be voted on at the Annual Meeting is the ratification of the appointment of our independent auditor for 2018 (Proposal 3).

The organization generally may not vote onnon-routine matters, including Proposals 1, 2 and 4. Instead, it will inform the inspector of election that it does not have the authority to vote on those matters. This is referred to as a “brokernon-vote.”

For the purpose of determining a quorum, we will treat as present at the Annual Meeting any proxies that are voted on any of the four proposals to be acted upon by the stockholders, including abstentions or proxies containing brokernon-votes.

 

Q:How do I vote my shares?shares if I do not attend the Annual Meeting?

 

A:StockholdersIf you are a stockholder of record, you may vote your shares of our common stock prior to the Annual Meeting as follows:

Via the Internet: You may vote via the Internet or, if you received a paper proxy card, by mail. Also,atwww.proxyvote.com, in accordance with the proxy card contains a toll free telephone number that you may use to vote. If you received a paper proxy card and choose to vote by mail, we have provided a postage-paid return envelope. For your information, voting via the Internet is the least expensive to the Company, followed by telephone voting, with voting by mail being the most expensive. Also, you may help us to save the expense of a second mailing if you vote promptly.

Beneficial owners of shares held in “street name” may vote by following the voting instructions provided to you by your bank or broker or other nominee.

You may also vote in person at the Annual Meeting as described below.

Q:How do I vote via the Internet?

A:Stockholders of record may vote via the Internet as instructedinstructions printed on the Notice of Internet Availability of Proxy Materials orand the proxy card. We provide voting instructions on the web site for you to follow. Internet voting is available 24 hours a day.day until 11:59 p.m., Eastern daylight time, on May 16, 2018. You will be given the opportunity to confirm that your instructions have been recorded properly. If you vote via the Internet, you do not need to return a proxy card. Please see the notice or proxy card for Internet voting instructions.

 

Q:How do I vote by telephone?

A:Stockholders of record whoBy Telephone: If you receive a proxy card by mail, you may vote by calling the toll-free number listed on the proxy card+1-800-690-6903 and following the instructions provided on the telephone line. Telephone voting is available 24 hours a day. day until 11:59 p.m., Eastern daylight time, on May 16, 2018.Easy-to-follow voice prompts allow you to vote your shares and confirm that your instructions have been recorded properly. If you vote by telephone, you do not need to return a proxy card. Please see the proxy card for telephone voting instructions.

 

Q:How do I vote by mail?

A:By Mail: If you have receivedreceive a paper proxy card and choose to vote by mail, simply mark your proxy card, sign and date it, and return it in the postage-paid envelope provided.

Q:Can I access the Annual Meeting materials via the Internet?

A:The Company’s Notice of Annual Meeting of Stockholders, Proxy Statement for the Annual Meeting of Stockholders and 2015 Annual Report are available at:

http://proxyreport.sealedair.com

Q:May I change my vote? May I revoke my proxy?

A:If you are a stockholder of record, whatever method you use to vote, you may later change or revoke your proxy at any time before it is exercised by:

voting via the Internet or telephone at a later time;

submitting a properly signed proxy card with a later date; or

voting in person at the Annual Meeting.

Q:Can I vote at the Annual Meeting?

A:The method by which you vote will not limit your right to vote at the Annual Meeting if you decide to attend in person. Any stockholder of record may vote in person at the Annual Meeting whether or not he or she has previously voted. If your shares are held in “street name,” you must obtain a written proxy, executed in your favor, from the record holder to be able to vote at the meeting. If you hold shares through our Profit-Sharing Plan or our 401(k) Thrift Plan, you cannot vote those shares in person at the Annual Meeting; see the question “How do I vote if I participate in Sealed Air’s Profit Sharing-Plan or Sealed Air’s 401(k) Plan?” and the corresponding answer below.

Q:What is the deadline for voting my shares if I do not intend to vote in person at the Annual Meeting?

A:If you are a stockholder of record and do not intend to vote in person at the Annual Meeting, you may vote by returning the completed and signed proxy card in the postage-paid return envelope provided with the proxy card.

If you hold shares in street name, you may vote your shares of our common stock by following the voting instructions provided by your bank, broker or other nominee. In general, you may vote prior to the Annual Meeting as follows:

Via the Internet: You may vote atwww.proxyvote.com, in accordance with the voting instructions printed on the Notice of Internet or by telephoneAvailability of Proxy Materials and the proxy card. Internet voting is available 24 hours a day until 11:59 p.m., Eastern Time,daylight time, on May 18, 2016.16, 2018. You will be given the opportunity to confirm that your instructions have been recorded properly.

By Telephone: If you arereceive a beneficial owner ofproxy card by mail, you may vote by calling+1-800-454-8683 and following the instructions provided on the telephone line. Telephone voting is available 24 hours a day until 11:59 p.m., Eastern daylight time, on May 16, 2018.Easy-to-follow voice prompts allow you to vote your shares held throughand confirm that your instructions have been recorded properly.

By Mail: You may vote by returning a bank or brokerage firm, please follow the votingcompleted and signed proxy card in accordance with instructions provided by your bank, broker or brokerage firm.other nominee.

IfFor your information, voting via the Internet is the least expensive to Sealed Air, followed by telephone voting, with voting by mail being the most expensive. Also, you hold sharesmay help us to save the expense of the Company through Sealed Air’s Profit-Sharing Plan or Sealed Air’s 401(k) Thrift Plan, please refer to the next question and answer.a second mailing if you vote promptly.

 

Q:How do I vote if I participate in Sealed Air’s Profit-Sharing Plan or 401(k) Thrift Plan?

 

A:For eachIf you are a participant in Sealed Air’sour Profit-Sharing Plan or our 401(k) Thrift Plan, you can vote via the Internet or by using the proxy also servescard as a voting instruction card permitting the participant to provide voting instructions to Fidelity Management Trust Company, (“Fidelity”),or Fidelity, the trustee for the Profit-Sharing Plan for the shares of common stock allocated to the participant’s account in the plan. For each participant in Sealed Air’s 401(k) Thrift Plan, the proxy also serves as a voting instruction card permitting the participant to provide voting instructions to Fidelity, which also acts as trustee for theand 401(k) Thrift Plan, for the shares of common stock allocated to the participant’syour plan account in the plan. Internet voting is available to plan participants.or accounts. Fidelity will vote theyour allocated shares in eachthe applicable plan as directedin accordance with directions you provide by each participant who provides voting instructions to it before 11:59 p.m., Eastern Time,daylight time, on May 16, 2016. The14, 2018. If you do not provide timely voting instructions to Fidelity, the terms of each plan provide that Fidelity will vote your shares allocated to the accounts of participants who do not provide timely voting instructions in the same proportion as shares it votes on behalf of participants who do provide timely voting instructions.

 

Q:What if my broker holds shares in street name for me?Can I vote at the Annual Meeting?

 

A:UnderIf you are a stockholder of record, you may vote in person at the rules of the New York Stock Exchange, Inc.,Annual Meeting, whether or “NYSE,” brokers who holdnot you previously voted. If your shares in street name for customers have the authority to vote on specified items when they have not received instructions from their customers who are the beneficial owners of the shares. We understand that, unless instructed to the contrary by the beneficial owners of shares held in street name, brokers may exercise this authorityyou must obtain a written proxy, executed in your favor, from the stockholder of record to be able to vote on the ratification of the appointment of the independent auditor of Sealed Air. For the purpose of determining a quorum, we will treat as present at the meeting any proxies that are voted on any matter to be acted upon byAnnual Meeting. If you hold shares through our Profit-Sharing Plan or 401(k) Thrift Plan, you cannot vote those shares at the stockholders, including abstentions or any proxies containing broker non-votes.Annual Meeting.

 

Q:May I change my vote or revoke my proxy?

A:If you are a stockholder of record, you may later change or revoke your proxy at any time before it is exercised by:

voting via the Internet or telephone at a later time;

submitting a completed and signed proxy card with a later date; or

voting via the Internet at the Annual Meeting.

If you are a beneficial owner of shares held in street name, you should contact your bank, broker or other nominee for instructions as to whether, and how, you can change or revoke your proxy.

Q:What happens if I do not give specific voting instructions?

 

A:

If you are a stockholder of record and you sign and return a proxy card without giving specific voting instructions, then the proxy holdersProxy Committee will vote your shares in the manner recommended by the Board of

Directors on all mattersfour proposals presented in this proxy statementProxy Statement and as the proxy holdersProxy Committee may determine in theirits discretion foron any other matters properly presented for a vote at the meeting.Annual Meeting.

If you are a beneficial owner of shares held in street name and do not provide the organization that holds your shares with specific voting instructions to the broker, bank or other organization that is the stockholder of record of your shares, the organization that holds your sharesgenerally may generally vote on routine matters but cannot votenot onnon-routine matters. If the organization that holds your shares does not receive instructions from you on how to vote your shares on a non-routine matter, the organization that holds your shares will inform the inspector of election that it does not have the authority to vote on this matter with respect to your shares. This is referred to as a “broker non-vote.” The only routine matter expected to be voted on at the Annual Meeting is the ratification of the appointment of our independent auditor for 2018 (Proposal 3). If the independent auditor.organization does not receive instructions from you on how to vote your shares on one or more of Proposals 1, 2 and 4, your shares will be subject to a brokernon-vote and no vote will be cast on those matters. See “Q. What does it mean for a broker or other nominee to hold shares in ‘street name’?” above.

 

Q:What if other matters are presented at the Annual Meeting?

 

A:If a stockholder of record provides a proxy by voting in any manner described in this Proxy Statement, the Proxy Committee will have the discretion to vote on any matters, other mattersthan the four proposals presented in this Proxy Statement, that are properly presented for consideration at the Annual Meeting, the persons named in the proxy will have the discretion to vote on those matters for you.Meeting. We do not know of any other matters to be presented for consideration at the Annual Meeting.

Vote Required for Election or Approval

Introduction

Sealed Air’s only voting securities areAs of the outstanding shares of our common stock. As ofrecord date, which is the close of business on March 21, 2016, 196,720,36819, 2018, 166,511,216 shares of common stock were outstanding, each of which is entitled to one vote at the Annual Meeting. OnlyIn addition, holders of record of W.R. Grace & Co. common stock at the close of business onissued prior to March 21, 2016,31, 1998 and outstanding at the record date will have an aggregate of 1,698 votes on each proposal at the Annual Meeting, which means there will be entitleda total of 166,512,914 votes eligible to notice of, and to votebe cast at the Annual Meeting. A majority of the outstanding shares of common stockHolders who are present in person or represented by proxy and entitled to vote on any matterswho hold shares representing a majority of the votes eligible to be considered at the Annual Meetingcast will constitute a quorum for the transaction of business at the Annual Meeting. For the purpose of determining a quorum, we will treat as present at the meetingAnnual Meeting any proxies that are voted on any matter to be acted upon by the stockholders, as well as abstentions or any proxies containing brokernon-votes.

Proposal 1.    Election of Directors: Majority Vote RequirementDirectors

Each director will be elected by a vote of the majority of the votes cast with respect to that director, where a majority of the votes cast means that the number of shares voted “for” a director must exceed the number of votes cast “against” the director. We will not count shares voted to “abstain” for the purpose of determining whether a director is elected. Similarly, brokernon-votes will not have any effect on the outcome of the election of directors since brokernon-votes are not counted as “votes cast.”

Under the Company’sour Certificate of Incorporation, itsour Bylaws and the Delaware General Corporation Law, a director holds office until a successor is elected and qualified or until his or her earlier resignation or removal. Each of the nominees currently serves as one of our directors. If any of the nominees that is currently in office is not elected at the Annual Meeting, then the Bylaws provide that the director shall offer to resign from ourthe Board of Directors. The Nominating and Corporate Governance Committee will make a recommendation to ourthe Board whether to accept or reject the resignation, or whether other action should be taken. OurThe Board will consider and act on the recommendation of the Nominating and Corporate Governance Committee and publicly disclose its decision and the rationale behind it within 90ninety days from the date of the certification of the election results. The director who offers his or her resignation will not participate in the decision of the Nominating and Corporate Governance Committee or of the Board of Directors.Board. If the Board of Directors accepts such resignation, then the Board canmay fill the vacancy resulting from that resignation or canmay reduce the number of directors that constitutes the entire Board of Directors so that no vacancy exists.

Advisory Vote to Approve Our Executive CompensationProposal 2.    Amendment and Restatement of 2014 Omnibus Incentive Plan

The advisory vote to approveamendment and restatement of our executive compensation2014 Omnibus Incentive Plan must be affirmatively approved by the affirmative vote of the holders of a majority of the shares of common stockvotes entitled to votebe cast and present in person or represented by proxy at the Annual Meeting. Abstentions will count as votes against this proposal since shares with respect to which the stockholder abstains will be deemed present and entitled to vote. Brokernon-votes will have no effect on the outcome of this proposal since such shares willbrokernon-votes are not be deemed entitled to vote.counted as “votes cast.”

Proposal 3.    Ratification of Ernst & Young LLP as OurAppointment of Independent Registered Public Accounting firmAuditor for 20162018

The ratification of Ernst & Young LLP as our independent registered public accounting firmauditor for 2016the year ending December 31, 2018 must be affirmatively approved by the affirmative vote of the holders of a majority of the shares of common stockvotes entitled to votebe cast and present in person or represented by proxy at the Annual Meeting. Abstentions will be deemed present and, therefore, will count as votes against this proposal. Because this proposal is considered a routine matter, therediscretionary votes by brokers will not be any broker non-votescounted.

Proposal 4.     Approval of 2017 Executive Compensation on this proposal.

Other Mattersan Advisory Basis

Any other matters considered at the Annual MeetingThe advisory vote to approve our 2017 executive compensation must be affirmatively approved by the affirmative vote of the holders of a majority of the shares of common stockvotes entitled to votebe cast and present in person or represented by proxy at the Annual Meeting. Abstentions will count as votes against this proposal, since shares with respect to which the holder abstains will be deemed present and entitled to vote. Brokernon-votes will have no effect on the outcome of this proposal, since brokernon-votes are not counted as “votes cast.”

Corporate Governance

Corporate Governance Guidelines

The Board of Directors has adopted and operates under Corporate Governance Guidelines that reflect our current governance practices in accordance with applicable statutory and regulatory requirements, including those of the Securities and Exchange Commission, or SEC, and the New York Stock Exchange, or NYSE. The Corporate Governance Guidelines are available on our web sitewebsite atwww.sealedair.comwww.sealedair.com..

Independence of Directors

Under the Corporate Governance Guidelines and the requirements of the NYSE, the Board of Directors must consist of a majority of independent directors. The Board annually reviews the independence of allnon-employee directors. The Board has established categorical standards consistent with the corporate governance standards of the NYSE to assist it in making determinations of the independence of Board members. We have attached a copy of our current director independence standardsStandards for Director Independence to this Proxy Statement as Annex A and also posted a copy on our web sitewebsite atwww.sealedair.com. These categorical standards require that, to be independent, a director may not have a material relationship with the Company.Sealed Air. Even if a director meets all categorical standards for independence, the Board reviews other relationships with the CompanySealed Air in order to conclude that each independent director has no material relationship with the CompanySealed Air either directly or indirectly.

The Board has determined that the following director nominees are independent: Michael Chu, LawrencePatrick Duff, Henry R. Codey, Patrick Duff,Keizer, Jacqueline B. Kosecoff, Neil Lustig, Kenneth P. Manning, William J. Marino, Richard L. Wambold and Jerry R. Whitaker. In evaluating the independence of the non-employee director nominees, the Board considered the following transactions, relationships or arrangements:

Mr. Manning is the Chairman and a director of Sensient Technologies Corporation. In 2015, Sealed Air Corporation and all of its subsidiaries paid approximately $357,971 to Sensient and its affiliates for colors and other products. Sealed Air sold to Sensient and its affiliates goods and services in an amount totaling approximately $236,195 during 2015. These relationships are expected to continue at approximately the same levels during 2016. In 2014, Sealed Air Corporation and all of its subsidiaries paid approximately $270,809 to Sensient and its affiliates for colors and other products. Sealed Air sold to Sensient and its affiliates goods and services in an amount totaling approximately $307,215 during 2014. The fees paid to Sensient during 2014 and 2015 have been substantially less than 2% of Sensient’s consolidated gross revenues.

Mr. Lustig served as the President and Chief Executive Officer of Vendavo Inc. from August 2007 through October 2014. In February 2014, Vendavo entered into an agreement with Deloitte Consulting to act as a subcontractor to Deloitte in connection with Deloitte’s professional services engagement with Sealed Air. This contract served to engage Vendavo’s consultants to implement the SAP Price and Margin Management software modules for Sealed Air. In 2014, Sealed Air paid Deloitte Consulting approximately $3,368,380 for such work. Shortly after Mr. Lustig’s departure from Vendavo on October 30, 2014, the contract with Deloitte was cancelled and replaced with a direct agreement between Vendavo and Sealed Air. Mr. Lustig was not involved in any way with this renegotiation. In 2015, Sealed Air paid Vendavo approximately $1.2 million for such work. The fees paid to Vendavo, directly or indirectly, during each of the years 2013, 2014 and 2015 have been less than 2% of Vendavo’s consolidated gross revenues. Mr. Lustig remained an advisor to Vendavo from October 2014 through October 2015. In exchange for these advisory services, Mr. Lustig received a modest stock option grant.

Code of Conduct

For many years, weWe have had a Code of Conduct applicable to the Companyall directors, officers and employees of Sealed Air and its subsidiaries. The Code of Conduct applies to all of our employees and to our officers and directors. We also have a supplemental Code of Ethics for Senior Financial Executives that applies to our Chief Executive Officer or CEO, Chief Financial

Officer or CFO, Controller, Treasurer and all other employees performing similar functions. We have posted the texts of the Code of Conduct and the Code of Ethics for Senior Financial Executives on our web sitewebsite atwww.sealedair.com. We will post any amendments to the Code of Conduct and the Code of Ethics for Senior Financial Executives on our web site.website. In accordance with the requirements of the SEC and the NYSE, we will also post waivers applicable to any of our officers or directors from provisions of the Code of Conduct or the Code of Ethics for Senior Financial Executives on our web site.website. We have not granted any such waivers.waivers to date.

Board Oversight of Risk

The Board of Directors is actively involved in oversight of risks that could affect the Company.Sealed Air. While the Audit Committee oversees our major financial risk exposures and the steps we have taken to monitor and control such exposures, and the Organization and Compensation Committee considers the potential of our executive compensation programs to raise material risks to the Company,Sealed Air, the Board as a whole is responsible for oversight of our risk management processes and our enterprise risk management program. The Board regularly discusses risk management with Managementmanagement and among the Directorsdirectors during meetings.

Communicating with Directors

Stockholders and other interested parties may communicate directly with thenon-management directors of the Board of Directors by writing toNon-Management Directors, c/o Corporate Secretary, at Sealed Air Corporation, 8215 Forest Point2415 Cascade Pointe Boulevard, Charlotte, North Carolina 28273,28208, or by sending an email to

directors@sealedair.com. In either case, the Chairman of ourthe Board will be notified of all such correspondence as appropriate and will communicate with the other directors as appropriate about the correspondence. We have posted information on how to communicate with thenon-management directors on our web sitewebsite atwww.sealedair.com.www.sealedair.com.

Board Leadership Structure

Mr.William J. Marino, who is not standing forre-election at the Annual Meeting, was elected as the Chairman of the Board of Directors in May 2014.2014 and will continue in that role through the Annual Meeting. The Chairman presides at meetings of the Board of Directors at which he or she is present and leads the Board of Directors in fulfilling its responsibilities as specified in the Bylaws. The Chairman has the right to call special and emergency meetings. The Chairman serves as the liaison for interested parties who request direct communications with the Board of Directors.Board.

Notwithstanding the appointment of a Chairman, the Board considers all of its members responsible and accountable for oversight and guidance of its activities. All directors have the opportunity to request items to be included on the agendas of upcoming meetings.

The Board of Directors believes having an independent chair is beneficial in that it ensures that management is subject to independent and objective oversight and the independent directors have an active voice in the governance of the Company.Sealed Air. The leadership structure is reviewed annually as part of the Board’s self-assessment process, and changes may be made in the future to reflect the Board’s composition as well as our needs and circumstances.

Board of Directors Overview

Under our Bylaws and the Delaware General Corporation Law, and the Company’s Bylaws, our business and affairs are managed by or under the direction of the Board of Directors, which delegates some of its responsibilities to its Committees and to management.Committees.

The Board of Directors generally holds sixfive regular meetings per year and meets on other occasions when circumstances require. Directors spend additional time preparing for Board and Committee meetings, and we may call upon directors for advice between meetings. Also, weWe encourage our directors to attend director education programs.

The Corporate Governance Guidelines adopted by the Board provide that the Board will meet regularly in executive session without management in attendance. The Chairman of the Board presides at each

executive session. The Chairman’s designee or the chair of the Nominating and Corporate Governance Committee serves as the presiding director if the Chairman of the Board is unable to serve.

Under the Corporate Governance Guidelines, we expect directors to regularly attend meetings of the Board and of all Committees on which they serve and to review the materials sent to them in advance of those meetings. We expect nominees for election at each annual meetingAnnual Meeting of stockholders to attend the Annual Meeting. AllEach of the eight nominees for electionre-election at the Annual Meeting this year currently serve as directors ofattended the Company. All of the nominees for election at the2017 Annual Meeting this year who are currently directors attended the 2015 Annual Meeting.of Stockholders.

During 2015,2017 the Board of Directors held seventwelve meetings, excluding actions by unanimous written consent, and held fourfive executive sessions and sixfive executive sessions with only independent directors. Each current member of the Board of Directors attendeddirector participated in at least 7580 percent of the aggregate number of meetings of the Board of Directors and of the Committees of the Board on which the director served during 2015.2017.

The Board of Directors maintains an Audit Committee, a Nominating and Corporate Governance Committee, and an Organization and Compensation Committee. The members of these Committees consist only of

independent directors. The Board of Directors has adopted charters for each of the Committees, which are reviewed annually by eachthe Committee and the Board of Directors.Board. The Committee charters are available on our web sitewebsite atwww.sealedair.com.www.sealedair.com.

Audit Committee

The principal responsibility of the Audit Committee is to assist the Board of Directors in fulfilling itsthe Board’s responsibilities for monitoring and overseeing:

 

our internal control system, including information technology security and control;

 

our public reporting processes;

 

the performance of our internal audit function;

 

the annual independent audit of our consolidated financial statements;

 

the integrity of our consolidated financial statements;

 

our legal and regulatory compliance; and

 

the retention, performance, qualifications, rotation of personnel and independence of our independent auditor.

Our independent auditor is ultimately accountable to the Audit Committee. The Audit Committee has the ultimate authority and responsibility to select, evaluate, approve terms of retention and compensation of, and, where appropriate, replace the independent auditor, subject to ratification of the selection of the independent auditor by our stockholders at the Annual Meeting.auditor.

The current members of the Audit Committee are Mr.Jerry R. Whitaker, who serves as chair, and Messrs.Lawrence R. Codey, Patrick Duff and Manning,Henry R. Keizer, as well as Mr.William J. Marino, who serves ex officio. OurMessrs. Codey and Marino are not standing forre-election at the Annual Meeting. The Board of Directors has determined that each current member of the Audit Committee is independent, as defined in the listing standards of the NYSE, is financially literate, and is an audit committee financial expert in accordance with the standards of the SEC. The Audit Committee held sixteen meetings in 2017, excluding actions by unanimous written consent. During 2017 the Audit Committee met privately with representatives of Ernst & Young LLP, our independent auditor, on five occasions, met privately with our head of Internal Audit on five occasions, met privately with our management on seven occasions, and held four executive sessions with onlynon-employee directors in attendance. Each member participated in at least 75% of the aggregate number of meetings of the Audit Committee during 2017. No director is eligible to serve on the Audit Committee if that director simultaneously serves on the audit committees of three or more other public companies. The Audit Committee held thirteen meetings in 2015, excluding actions by unanimous written consent. During 2015, the Audit Committee met privately with representatives of the independent auditors of Sealed Air, KPMG LLP (predecessor) and Ernst & Young LLP on five occasions, met privately with the Company’s head of Internal Audit on four occasions, met privately with the Company’s management on four occasions, and held three executive sessions with only non-employee directors in attendance.

Nominating and Corporate Governance Committee

The principal responsibilities of the Nominating and Corporate Governance Committee are to:

 

identify individuals qualified to become members of the Board members,of Directors, consistent with criteria approved by the Board, and recommend to the Board director nominees for the next annual meetingAnnual Meeting of stockholders and director nominees to fill vacancies or newly-created directorships at other times;

 

provide oversight of the corporate governance affairs of the Board and the Company,Sealed Air, including developing and recommending to the Board the Corporate Governance Guidelines;

 

assist the Board in evaluating the Board and its Committees; and

 

recommend to the Board the compensation ofnon-employee directors.

The current members of the Nominating and Corporate Governance Committee are Mr.Patrick Duff, who serves as chair, and Messrs.Jacqueline B. Kosecoff, Neil Lustig Manning and Jerry R. Whitaker, and Dr. Kosecoff, as well as Mr.

William J. Marino, who serves ex officio. OurMr. Marino is not standing forre-election at the Annual Meeting. The Board of Directors has determined that each current member of the Nominating and Corporate Governance Committee is independent, as defined in the listing standards of the NYSE. The Nominating and Corporate Governance Committee held five meetings in 2015,2017, excluding actions by unanimous written consent. During 2015,2017, the Nominating and Corporate Governance Committee held onefour executive sessionsessions with onlynon-employee directors in attendance. Each member participated in all of the meetings of the Nominating and Corporate Governance Committee during 2017.

The Nominating and Corporate Governance Committee has the sole authority to retain, oversee and terminate any consulting or search firm to be used to identify director candidates or assist in evaluating director compensation and to approve any such firm’s fees and retention terms. Starting in lateSince 2010 the Nominating and Corporate Governance Committee has engaged Frederic W. Cook & Co., Inc. (“, or FW Cook, & Co.”) to advise the Nominating and Corporate Governance Committee on director compensation. FW Cook & Co. also advises the Organization and Compensation Committee regarding executive compensation.

The Nominating and Corporate Governance Committee will consider director nominees recommended by our stockholders in accordance with a policyour Policy and Procedure for Stockholder Nominations to the Board adopted by the Committee.Committee and approved by the Board, a copy of which is attached to this Proxy Statement as Annex B and posted on our website atwww.sealedair.com. Recommendations should be submitted to theour Corporate Secretary of the Company in writing at Sealed Air Corporation, 8215 Forest Point2415 Cascade Pointe Boulevard, Charlotte, North Carolina 28273,28208, along with additional required information about the nominee and the stockholder making the recommendation. A copy of the policy is attached to this Proxy Statement as Annex B and posted on our web site atwww.sealedair.com. Information on qualifications for nominations to the Board and procedures for stockholder nominations to the Board is included below under “Director“Proposal 1. Election of Directors—Director Qualifications” and “Identifying“—Identifying and Evaluating Nominees for Directors.”

Organization and Compensation Committee

The principal responsibilities of the Organization and Compensation Committee, which we refer to as the Compensation Committee, are to assist the Board of Directors in fulfilling its responsibilities relating to:

 

compensation of the executive officers;

 

stockholder review and action regarding executive compensation matters;

 

performance of our Chief Executive OfficerCEO and executive management;

 

succession planning; and

 

Company-sponsoredSealedAir-sponsored incentive compensation plans, equity-based plans andtax-qualified retirement plans.

The current members of the Compensation Committee are Dr.Jacqueline B. Kosecoff, who serves as chair, Messrs.Michael Chu, Neal Lustig and Richard L. Wambold, as well as Mr.William J. Marino, who serves ex officio. OurMr. Marino is not standing forre-election at the Annual Meeting. The Board of Directors has determined that each current member of the Compensation Committee is independent, as defined in the listing standards of the NYSE. The Compensation Committee held seventen meetings in 2015,2017, excluding actions by unanimous written consent. During 2015,2017 the Compensation Committee held fivethree executive sessions with onlynon-employee directors in attendance. Each of the four appointed members participated in all of the meetings of the Compensation Committee during 2017.

The Compensation Committee oversees and provides strategic direction to management with respect to our executive compensation plans and programs. The Compensation Committee reviews our Chief Executive Officer’sCEO’s performance and compensation with the othernon-employee directors. Based on that review, the

Compensation Committee evaluates the performance of our Chief Executive Officer,CEO, reviews the Compensation Committee’s evaluation with him, and makes all compensation decisions for our Chief Executive Officer.CEO. The Compensation Committee also reviews and approves the compensation of the other executive officers. The Compensation Committee makes most decisions regarding changes in salaries and bonuses during the first quarter of the year based on Company,company, division or function and individual performance during the prior year, as well as reviewing relevant commercially available proxy and survey data of peer group companies and companies of comparable size. The Compensation Committee also has authority to grant equity compensation awards under our 2014 Omnibus Incentive Plan. This award authority has been delegated on a limited basis for awards to employees who are not subject to the requirements of Section 16 of the Securities Exchange Act of 1934 to the Equity Award Committee, comprised of our Chief Executive Officer.CEO.

The Compensation Committee has the sole authority to retain, oversee and terminate any compensation consultant to be used to assist in the evaluation of executive compensation and to approve the consultant’s fees and retention terms. Since November 2006 the Compensation Committee has retained FW Cook & Co. as its executive compensation consultant. FW Cook & Co. also advises the Nominating and Corporate Governance Committee regarding director compensation but does not provide any other services to the Company. The CompanySealed Air. Sealed Air pays Cook & Co.’sFW Cook’s fees. Additional information on the executive compensation services performed in 20152017 by FW Cook & Co. is included in “Executive Compensation—Compensation Discussion and Analysis—Governance of Our Executive Compensation Program—Role of Independent Compensation Consultant” below.Consultant.”

Compensation Committee Interlocks and Insider Participation

During 2015,2017 none of the members of the Compensation Committee has beenwas an officer or employee of the CompanySealed Air or any of its subsidiaries.

Certain Relationships and Related PersonRelated-Person Transactions

Under our Code of Conduct, the Audit CommitteeBoard of Directors reviews any relationships or transactions that might constitute a conflict of interest for a director. Under its charter, the Audit Committee has the responsibility to reviewreviews and, if appropriate, approveapproves conflicts of interest or potential conflicts of interest involving our senior financial executives and to act,acts, or recommendrecommends action of the Board, action, on any other violations or potential violations of our Code of Conduct by executive officers. Under our Code of Conduct, the Board reviews any relationships or transactions that might constitute a conflict of interest for a director.

In 2007 the Board adopted its Related-Person Transactions Policy and Procedures, (the “Related-Person Policy”).which we refer to below as the Related-Person Policy. The current Related-Person Policy is in writing and is posted on the Company’s web siteSealed Air’s website atwww.sealedair.com. The Related-Person Policy provides for the review of all relationships and transactions in which the CompanySealed Air and any of its executive officers, directors and five-percent stockholders or their immediate family members are participants to determine whether to approve or ratify such relationships or transactions, as well as whether such relationships or transactions might affect a director’s independence or must be disclosed in our proxy statement.Proxy Statement. All such transactions or relationships are covered if the aggregate amount may exceed $120,000 in a calendar year and the person involved has a direct or indirect interest other than solely as a director or a less than 10 percent beneficial ownership interest in another entity. The Related-Person Policy includes a list of certain types ofpre-approved relationships and transactions. Determinations whether to approve or ratify any other relationship or transaction are based on the terms of the transaction, the importance of the relationship or transaction to the Company,Sealed Air, whether the relationship or transaction could impair the independence of anon-employee director, and whether the relationship or transaction would present an improper conflict of interest for any director or executive officer of the Company,Sealed Air, among other factors. Information on relationships and transactions is requested in connection with annual questionnaires completed by each of our executive officers and directors.

TheUnder the Related-Person Policy, the Nominating and Corporate Governance Committee has the responsibility to review and, if appropriate, approve or ratify all relationships and transactions covered under the Related-Person Policy, although the Board has delegated to the chair of the Nominating and Corporate Governance Committee and to the Chief Executive Officer of the Companyour CEO the authority to approve or ratify specified transactions. For potential conflicts of interest involving an executive officer, the chair of the Nominating and Corporate Governance Committee and the chair of the Audit Committee can agree that only one of those Committees will address the matter. No director can participate in any discussion or approval of a relationship or transaction involving himself or herself (or one of his or her immediate family members).

Other than transactions that are considered pre-approved under the Related-Person Policy, the transactions described above under “Corporate Governance—Independence of Directors” were ratified or approved in accordance with the Related-Person Policy.

Director Compensation

During 2015,2017 annual compensation for our non-employee directors was comprisedconsisted of the following components: annual or interim retainers paid at least 50% in shares of common stock,stock; committee fees paid in cash,cash; and other fees for special assignments or director education programs paid in cash. A director may defer payment of annual or interim retainers until retirement from the Board of Directors, as described below. The following table shows the total compensation fornon-employee directors during 2015:2017:

20152017 DIRECTOR COMPENSATION TABLE

 

Director  

Fees Earned or

Paid in Cash1

($)

   

Stock Awards2

($)

   

Total

($)

   

Fees Earned or

Paid in Cash1

($)

   

Stock
Awards
2

($)

   

Total

($)

 

Hank Brown*, **

   24,375             0           24,375  

Michael Chu

   95,000             100,024           195,024     100,000    115,036    215,036 

Lawrence R. Codey

   95,000             100,024           195,024     100,000    115,036    215,036 

Patrick Duff*

   110,000             100,024           210,024       25,000    205,039    230,039 

Henry R. Keizer

     95,000    115,036    210,036 

Jacqueline B. Kosecoff*

   27,500             185,039           212,539     117,500    115,036    232,536 

Neil Lustig

   87,500             100,024           187,524     107,500    115,036    222,536 

Kenneth P. Manning

   102,500             100,024           202,524  

Kenneth P. Manning**

     13,125    0    13,125 

William J. Marino

   136,000             160,008           296,008     190,000    190,010    380,010 

Richard L. Wambold

   95,000             100,024           195,024       10,000    205,039    215,039 

Jerry R. Whitaker*

   110,000             100,024           210,024     122,500    115,036    237,536 

 

*Chair of committee for all or part of 2015.during 2017.

 

**Mr. Brown retiredRetired from the Board as of the 2015our 2017 Annual Meeting.Meeting of Stockholders.

 

Chairman of the Board during 2015.2017.

 

1 

This column reports the amountThe amounts shown consist of cash compensation paid in 2015.

2017.

 

2 

The amounts shown in the Stock Awards column represent the aggregate grant date fair value of stock awards granted in the fiscal year ended December 31, 20152017 in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718,Compensation—Stock Compensation, or FASB ASC Topic 718, for the stock portion of the annual retainers for 20152017 under the 2014 Omnibus Incentive Plan, described below under “Board Retainers” and “Form and Payment of Retainers.” For additional information, refer to Note 18, “Stockholders’ Equity,” of Notes to our consolidated financial statements included in our Annual Report on Form10-K for the fiscal year ended December 31, 2015, as filed with the SEC.2017. Messrs. Codey, Duff, Marino and DuffWhitaker received stock units under the Deferred Compensation Plan described below. All other directors listed in the table received shares of common stock. In addition, Mr. Duff elected to have the cash portion of his annual retainer paid in stock units under the Deferred Compensation Plan and Mr. Wambold elected to have the cash portion of his annual retainer paid in shares of common stock. The number of shares or stock units paid as the equity portion of the annual retainer in 2015 was determined by dividing the amount of the annual retainer so paid by the closing price of a share of common stock on May 14, 2015,18, 2017, the date of the 20152017 Annual Meeting of Stockholders, at which meeting all of thenon-employee directors were elected, and in each case, rounding up to the nearest whole share. In addition, Dr. Kosecoff elected to have the cash portion of her annual retainer paid in shares of common stock, with the number of shares similarly determined by dividing the amount of the annual retainer so paid by the closing price on May 14, 2015. All shares and stock units paid as all or part of annual retainers in 20152017 are fully vested. Directors are credited with dividend equivalents on stock units, as described under “Deferred“—Deferred Compensation Plan” below, which are not included in the table above.

Director Compensation Processes

Our director compensation program is intended to enhance our ability to attract, retain and motivatenon-employee directors of exceptional ability and to promote the common interest of directors and stockholders in enhancing the value of our common stock.

The Board of Directors reviews director compensation at least annually based on recommendations by the Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee has the sole authority to engage a consulting firm to evaluate director compensation and starting in latesince 2010 has engaged FW Cook & Co. to assist in establishing director compensation. The Nominating and Corporate Governance Committee and the Board base their determinations on director compensation

on recommendations from FW Cook & Co. and based on reviewing commercially available survey data related to general industry director

compensation trends at companies of comparable size and our peer group companies. FW Cook & Co. also serves as the independent consultant to the Compensation Committee on executive compensation.

Board Retainers

Under the 2014 Omnibus Incentive Plan, each member of the Board of Directorsdirector who is neither an officer nor an employee of the CompanySealed Air and who is elected at an annual meeting of stockholders receives an annual retainer for serving as a director. The Board of Directors sets the amount of the annual retainer prior to the Annual Meetingannual meeting based on the recommendation of the Nominating and Corporate Governance Committee.

The 2014 Omnibus Incentive Plan gives the Board the flexibility to set annual retainers based on a fixed number of shares of common stock, a fixed amount of cash, or a combination of shares of common stock and cash. In late 2014,2016, based on peer company data provided by FW Cook, & Co., the Nominating and Corporate Governance Committee recommended and the Board approved 20152017 annual retainers in the amount of (i) $160,000(a) $190,000 payable in shares of common stock and $136,000$190,000 payable in cash (or in shares of common stock at the election of the Chairman of the Board) for the independent Chairman of the Board, and (ii) $100,000(b) $115,000 payable in shares of common stock and $85,000$90,000 payable in cash (or in shares of common stock at the election of each director) for each othernon-employee director.

The chair of the Audit Committee received an annual fee of $25,000, and other members of the Audit Committee received annual fees of $10,000. The chair of the Nominating and Corporate Governance Committee received an annual fee of $15,000, and other members of the Nominating and Corporate Governance Committee received annual fees of $7,500. The chair of the Compensation Committee received an annual fee of $20,000, and other members of the Compensation Committee received annual fees of $10,000. Committee fees are paid in quarterly installments in cash.

Anon-employee director who is elected other than at an annual meeting is entitled to an interim retainer on the date of election. The interim retainer is a pro rata portion of the annual retainer to reflect less than a full year of service.

Form and Payment of Retainers

We pay at least half of each retainer, whether annual or interim retainer in shares of common stock or deferred stock units and the remainder in cash, except that eachnon-employee director canmay elect, prior to becoming entitled to the retainer, to receive the entire retainer in shares of common stock. For any portion of an annual or interim retainer denominated in cash but paid in shares of common stock, we calculate the number of shares of common stock to be issued by dividing the amount payable in shares of common stock by the fair market value per share. The fair market value per share is the closing price of the common stock on the Annual Meeting date or, if no sales occurred on that date, the closing price on the most recent prior day on which a sale occurred. The number of shares issued as all or part of an interim retainer is the amount of cash payable as shares of common stock divided by the fair market value per share on the date of the director’s election to the Board.Board of Directors. If any calculation would result in a fractional share of common stock being issued, then we round the number of shares to be issued up to the nearest whole share.

We issue shares of common stock in payment of the portion of a retainer that is payable in shares of common stock to thenon-employee director promptly after he or she becomes entitled to receive it. We pay the portion of an annual retainer payable in cash in a single payment shortly after the end of the calendar quarter during which the director is elected. We pay the portion of an interim retainer payable

in cash shortly after the end of the calendar quarter in which thenon-employee director is elected, except that if thenon-employee director is elected between April 1 and the next annual meeting of stockholders, then we pay the cash portion of the interim retainer shortly after thenon-employee director is elected.

Deferred Compensation Plan

The Sealed Air CorporationOur Deferred Compensation Plan for Directors permits anon-employee director to elect to defer all or part of the director’s annual retainer until the non-employee director retires from the Board.Board of Directors. Eachnon-employee director has the opportunity to elect to defer the portion of the annual retainer payable in shares of common stock. If anon-employee director makes that election, he or she may also elect to defer the portion, if any, of the annual retainer payable in cash. We hold deferred shares of common stock as stock units

in a stock account. Such stock units may not be transferred by a director. We do not issue these shares until we pay the non-employee director, normally after retirement from the Board, so the non-employee director cannot vote the stock units. We consider deferred shares, when issued, as issued under the 2014 Omnibus Incentive Plan. In 2013, the Board amended the Sealed Air Corporationour Deferred Compensation Plan for Directors to allow for directors to be credited with additional full or fractional stock units for cash dividends received with respect to their outstanding stock units. We credit deferred cash to an unfunded cash account that earns interest quarterly at the prime rate less 50 basis points until paid. During 2015,2017 none of thenon-employee directors who participated in the Deferred Compensation Plan for Directors received above market earnings on the cash or stock units credited to his or her account. The Anon-employee director canmay elect to receive the balances in his or her stock and cash accounts in a single payment during January of the year after retirement or in five annual installments starting during January of the year after retirement.

Restrictions on Transfer

A director may not sell, transfer or encumber shares of common stock issued under the 2014 Omnibus Incentive Plan while the director serves on the Board of Directors, except that anon-employee director may make gifts of shares issued under the 2014 Omnibus Incentive Plan to family members or to trusts or other forms of indirect ownership so long as thenon-employee director would be deemed a beneficial owner of the shares with a direct or indirect pecuniary interest in the shares and would retain voting and investment control over the shares while thenon-employee director remains a director of the Company.Sealed Air. During this period, the director, or the director’s accounts under the Deferred Compensation Plan for Directors, if the director has elected to defer payment of the shares, is entitled to receive or be credited with any dividends or other distributions in respect of the shares. The director has voting rights in respect of the shares issued to the director under the 2014 Omnibus Incentive Plan. Since we hold deferred shares of common stock as stock units in a stock account, with no shares issued until payment is made to thenon-employee director, directors cannot vote stock units representing deferred shares of common stock. The restrictions on the disposition of shares issued pursuant to the 2014 Omnibus Incentive Plan terminate upon the occurrence of specified events related to a change in control of the Company.Sealed Air.

Other Fees and Arrangements

During 2015, 2017non-employee directors who undertook special assignments at the request of the Board of Directors or of any Committee of the Board, or who attended a director education program, received a fee of $2,000 per day. All directors are entitled to reimbursement for expenses incurred in connection with Board service, including attending Board or Committee meetings. We pay these fees and reimbursements in cash; these payments are not eligible for deferral under the Deferred Compensation Plan for Directors described above. Additionally, directors are permitted to participate in the Company’sour matching gift program, whereby the Companywe will match gifts to qualified educational institutions on a dollar for dollardollar-for-dollar basis to a maximum of $5,000 per participant in any calendar year, on the same basis as employees.

20162018 Director Compensation

In late 2015,2017, based on peer company data provided by FW Cook, & Co., the Nominating and Corporate Governance Committee recommended, and the Board of Directors approved, 2016that 2018 director compensation will generally remain the same as 2017, except that the annual retainers inretainer for our Chairman of the amount of (i)Board will be $184,000 payable in shares of common stock and $144,000 payable in cash (or in shares of common stock at the election of the Chairman of the Board) for the independent Chairman of the Board, and (ii) $115,000 payable in shares of common stock and $90,000 payable in cash (or in shares of common stock at the election of each director) for each other non-employee director. The compensation for committee assignments for non-employee directors will remain the same as 2015..

Director Stock Ownership Guidelines

In order to align the interests of directors and stockholders, we believe that our directors should have a significant financial stake in the Company.Sealed Air. To further that goal, we adopted stock ownership guidelines fornon-employee directors during 2006. The current stock ownership guidelines fornon-employee directors,

which are part of our Corporate Governance Guidelines, specify thatnon-employee directors hold shares of common stock and stock units under the Sealed Air Corporationour Deferred Compensation Plan for Directors equal in aggregate value to five times the amount of the annual retainer payable in cash, or $425,000 (or $680,000which equaled (a) for the Chairman of the Board)Board, $950,000 for 20152017 and $450,000 (or $720,000 for the Chairman of the Board)2018, and (b) for 2016.other directors, $450,000 for both 2017 and 2018. Directors first elected after February 18, 2010 have five years following first election to achieve the guidelines. In the event of an increase in the amount of the annual retainer payable in cash, directors serving when the increase is approved by the Board of Directors have two years after such approval to achieve the increased guideline. As of March 21, 2016,19, 2018, all directors were in compliance with the guidelines for 2015 based on the 2015 retainer level,2017, other than Mr.Messrs. Keizer and Lustig who isare within the initial five-year period allowed under the policy.

Proposal 1.

Election of Directors (Proposals 1-10)

At the Annual Meeting, the stockholders of the Company will elect the entire Board of Directors to serve for the ensuing year and until their successors are elected and qualified. The Board of Directors has designated as nominees for election the teneight persons named below, alleach of whom currently serveserves as directors of the Company.a director.

Shares of common stock that are voted as recommended by the Board of Directors will be voted in favor of the election as directors of the nominees named below. If any nominee becomes unavailable for any reason or if a vacancy should occur before the election, which we do not anticipate, the shares represented by a duly completed proxy may be voted in favor of such other person as may be determined by the holder of the proxy.Proxy Committee.

Director Qualifications

In 2004, the Nominating and Corporate Governance Committee of theThe Board adopted its “Qualificationsthe Qualifications for Nomination to the Board, a copy of which is attached to this Proxy Statement as Annex C and posted on the Company’s web siteour website atwww.sealedair.com.www.sealedair.com. The Qualifications provide that, in selecting directors, the Board of Directors should seek to achieve a mix of Board membersdirectors that enhances the diversity of background, skills and experience on the Board, including with respect to age, gender, international background, race, ethnicity and specialized experience. Directors should have relevant expertise and experience and be able to offer advice and guidance to our Chief Executive OfficerCEO based on that expertise and experience. Also, a majority of directors should be independent under applicable NYSE listing standards, Board and Committee guidelines, and applicable laws and regulations. Each director is also expected to:

 

be of the highest ethical character and share the values of the CompanySealed Air as reflected in its Code of Conduct;

 

be highly accomplished in his or her field, with superior credentials and recognition;

 

have sound business judgment, be able to work effectively with others, have sufficient time to devote to theour affairs, of the Company, and be free from conflicts of interest; and

 

be independent of any particular constituency and be able to represent all stockholders of the Company.

our stockholders.

The Board has determined that, as a whole, it must have the right mix of characteristics, skills and diversity to provide effective oversight of the Company. However, we do not have a formal policy concerning the diversity of the Board of Directors.Sealed Air. Based on an evaluation of our business and the risks associated with the business, the Board believes that it should be comprised of persons with skills in areas such as:

 

knowledge of the industries in which we operate;

 

financial literacy;

 

management of complex businesses;

 

international business;

 

relevant technology and innovation;

 

financial markets;

 

manufacturing;

 

information technology;

 

sales and marketing;

legislative and governmental affairs;

 

legal and regulatory environment; and

 

strategic planning.

The Board conducts aIn connection with the Board’s annual self-assessment process, every year and periodicallyit reviews the diversity of skills and characteristics needed by the Board in its oversight of the Company,Sealed Air, as well as the effectiveness of the diverse mix of skills and experience. As part of the review process, the Board considers the skill areas represented on the Board, those skill areas represented by directors expected to retire or leave the Board in the near future, and recommendations of directors regarding skills that could improve the ability of the Board to carry out its responsibilities.

Identifying and Evaluating Nominees for Directors

When the Board or theits Nominating and Corporate Governance Committee has identified the need to add a new Board memberdirector with specific qualifications or to fill a vacancy on the Board, the chair of the Nominating and Corporate Governance Committee will initiate a search to identify candidates who meet the Company’s “Qualifications for Nomination to the Board.” Such search may include seeking input from other directors and senior management, reviewreviewing any candidates that the Nominating and Corporate Governance Committee has previously identified, and, if necessary, hirehiring a search firm. The Board is committed to a policy of inclusiveness, and, as such, the Nominating and Corporate Governance Committee, in performing its responsibilities to review director candidates and recommend candidates to the Board for election, considers in each search diversity of age, gender, international background, race, ethnicity and specialized experience, in addition to the other criteria set forth above under “—Director Qualifications” and such other factors as the Nominating and Corporate Governance Committee deems appropriate. Similarly, in conducting its annual self-assessment, as described above, the Board considers these same characteristics, criteria and other factors. Our director searches are conducted consistent with these priorities, and search firms with which we work are instructed accordingly.

The Nominating and Corporate Governance Committee will identify the initial list of candidates who satisfy the specificabove criteria if any, and otherwise qualify for membership on the Board. At least one member of the Nominating and Corporate Governance Committee (preferably the chair) and our Chairman of the Board and Chief Executive Officer will interview each qualified candidate; other directors will also interview the candidate if practicable. Based on a satisfactory outcome of those interviews, the Nominating and Corporate Governance Committee will make its recommendation on the candidate to the Board.

Our Bylaws include a procedure that stockholders must follow in order to nominate a person for election as a director at an annual meeting of stockholders, other than a nomination submitted by a stockholder to the Nominating and Corporate Governance Committee under the policy and procedures set forth in “Policyaccordance with our Policy and Procedure Forfor Stockholder Nominations Toto the Board”Board, a copy of which is attached to this Proxy Statement as Annex B, and as described above under “Corporate Governance—Nominating and Corporate Governance Committee.” The Bylaws require that timely notice of the nomination in proper written form, including all required information, be provided to the Corporate Secretary of the Company.Sealed Air. A copy of our Bylaws is posted on our web sitewebsite atwww.sealedair.com.

Information Concerning Nominees

The information appearing in the following table sets forth, for each nominee for election as a director:

 

The nominee’s business experience for at least the past five years.

 

The year in which the nominee first became a director of the CompanySealed Air or of the former Sealed Air Corporation. On March 31, 1998, the Company completed a multi-step transaction, one step of which was a combination of the Cryovac business with the former Sealed Air Corporation. The period of service before that date includes time during which each director served continuously as a director of the Company or of the former Sealed Air Corporation.

 

The nominee’s age as of the date of the Annual Meeting.

Directorships held by each nominee presently and at any time during the past five years at any public company or registered investment company.

 

The reasons that the Board of Directors concluded that the nominee should serve as one of our director, at the time we file our proxy statement,directors in light of our business and structure.

There are no family relationships among any of the Company’sour directors orand officers.

Nominees for Election as Directors

 

Michael Chu  

Director since 2002

Member of Organization and Compensation Committee

Age 6769

Mr. Chu is Managing Director and Co-Founder of IGNIA Fund, a venture capital firm based in Monterrey, Mexico, dedicated to investing in commercial enterprises serving low-income populations in Mexico, since July 2007. He is also Senior Advisor since June 2007 (previously Senior Partner and Managing Director from August 2000 to June 2007) and Founding Partner of Pegasus Capital, a private investment firm deploying equity capital in Latin America. Mr. Chu has been a Senior Lecturer on the faculty of the Harvard Business School since July 2003 and trustee emeritus of Dartmouth College. Mr. Chu serves as a director of Arcos Dorados, a public company and the largest operator of McDonald’s restaurants in Latin America and the world’s largest McDonald’s franchisee.

Mr. Chu received his bachelor of arts degree from Dartmouth College and his masters of business administration with highest distinction from Harvard Business School. His experience includes serving as a management consultant with Boston Consulting Group, in senior management positions with U.S. corporations and as an executive and limited partner with Kohlberg Kravis Roberts & Co., a private equity firm. Additionally, he is director emeritus of ACCION International, a non-profit corporation dedicated to microfinance. Mr. Chu previously served as the President and Chief Executive Officer of ACCION International. He brings to the Board extensive international experience, particularly in the increasingly important region of Latin America, where Mr. Chu grew up. Mr. Chu has proven leadership capabilities and an entrepreneurial vision, as demonstrated by his roles with IGNIA and Pegasus Capital. He also has experience as a chief financial officer

Mr. Chu isCo-Founder and has been the Managing Director of IGNIA Fund, a venture capital firm based in Monterrey, Mexico, dedicated to investing in commercial enterprises servinglow-income populations in Mexico, since July 2007. He is also Senior Advisor since June 2007 (Senior Partner and Managing Director from August 2000 to June 2007) and Founding Partner of Pegasus Capital, a private investment firm deploying equity capital in Latin America. Mr. Chu has been a Senior Lecturer on the faculty of the Harvard Business School since July 2003 and trustee emeritus of Dartmouth College. Mr. Chu serves as a director of Arcos Dorados Holdings, Inc., a public company and the largest operator of McDonald’s restaurants in Latin America and the world’s largest McDonald’s franchisee and Takeoff Technologies, a privatestart-up company in eGrocery.

Mr. Chu received his bachelor of arts degree from Dartmouth College and his masters of business administration with highest distinction from Harvard Business School. His experience includes serving as a management consultant with Boston Consulting Group, in senior management positions with U.S. corporations and as an executive and limited partner with Kohlberg Kravis Roberts & Co., a private equity firm. Additionally, he is director emeritus of ACCION International, anon-profit corporation dedicated to microfinance. Mr. Chu previously served as the President and CEO of ACCION International. He brings to the Board of Directors extensive international experience, particularly in the increasingly important region of Latin America, where Mr. Chu grew up. Mr. Chu has proven leadership capabilities and an entrepreneurial vision, as demonstrated by his roles with IGNIA and Pegasus Capital. He also has experience as a CFO and extensive involvement in mergers and acquisitions.

 

Lawrence R. Codey

Director since 1993

Audit Committee

Age 71

Mr. Codey is a retired President and Chief Operating Officer of Public Service Electric and Gas Company (PSE&G), a public utility. Currently, Mr. Codey serves as a director of New Jersey Resources Corporation, a natural gas holding company, where he is lead director and chairs the executive committee and also serves on the nominating/corporate governance committee and audit committee. Further, he serves as a director of Horizon Blue Cross Blue Shield of New Jersey, a health insurance company, where he is a member of the audit committee and the governance committee. Mr. Codey previously served on the board of United Water Resources, a subsidiary of Suez Environment. Neither Horizon Blue Cross Blue Shield of New Jersey nor United Water Resources is a public company.

Mr. Codey received his bachelor of science degree from St. Peter’s College, a juris doctor degree from Seton Hall School of Law, and a master’s degree in business administration from Rutgers University. In addition, he completed the Advanced Management program at Harvard University’s School of Business. Mr. Codey’s career at PSE&G started as a trial attorney and then as a Vice President in charge of preparation and presentation of utility rate proceedings before both federal and state regulatory bodies. Thereafter, Mr. Codey was in charge of the gas business unit and subsequently the electric business unit. Mr. Codey previously served on the Board of Directors of Public Service Enterprise Group, an energy holding company of which PSE&G was its largest subsidiary. Mr. Codey has served on numerous governmental and non-governmental boards and commissions, including the EPA Clean Air Act Advisory Committee under both President George W. Bush and President William J. Clinton. In addition to the knowledge gained from his experience as our director, Mr. Codey has a broad background of experience and education in the areas of executive management, general management, legal and regulatory matters, finance, accounting, human resource management, legislative and governmental affairs, environmental affairs, and operations. He has been accountable for the performance of large, complex, multi-disciplined organizations and brings that discipline to the Board. Mr. Codey also brings to the Board the experience of a director who has served in various leadership capacities across an array of companies involved in energy, utilities and government.

Patrick DuffEdward L. Doheny II  

Director since 2017

Age 55

Mr. Doheny is the President and Chief Executive Officer of Sealed Air. Mr. Doheny joined Sealed Air as Chief Operating Officer andCEO-Designate and was elected to the Board in September 2017. He became President and CEO effective January 1, 2018.

Prior to joining Sealed Air, Mr. Doheny served as President and Chief Executive Officer of Joy Global Inc. from December 2013 through May 2017. Mr. Doheny also served as the Executive Vice President of Joy Global and President and Chief Operating Officer of its Underground Mining Machinery business from 2006 to 2013, where he had global responsibility for Joy Global’s underground mining machinery business. Prior to joining Joy Global, Mr. Doheny had a21-year career with Ingersoll-Rand Co. holding a series of senior executive positions of increasing responsibility, including President of Industrial Technologies from 2003 to 2005 and President of the Air Solutions Group from 2000 to 2003.

Mr. Doheny currently serves as a director of John Bean Technologies Corporation where he serves on the compensation committee and the nominating and governance committee. He earned his bachelor of science degree in engineering from Cornell University and his master’s degree from Purdue University’s Krannert School of Management.

Mr. Doheny brings 30 years of extensive experience leading global manufacturers of highly mechanized equipment and systems, including a keen focus on solutions, service and operational excellence and a proven ability to drive profitable innovation-based growth strategies.

Patrick Duff

Director since 2010

Chair of Nominating and Corporate Governance Committee (Chair)

Member of Audit Committee

Age 5860

Mr. Duff is a general partner of Dunham Partners, LLC, a private investment firm. Previously, he served as a director of Hercules, Inc. While at Hercules, Mr. Duff was chairman of the audit committee and served on the corporate governance, nominating and ethics committee, emergency committee and finance committee.

Mr. Duff received his bachelor of science degree in accounting from Lehigh University and a master of business administration degree from the Columbia Graduate School of Business. He taught security analysis at Columbia University from 1993 until 1999. Formerly, Mr. Duff was a senior managing director at Tiger Management Corp., an investment management firm, from 1989 through December 1993, where he was a member of the management committee. Prior to joining Tiger in 1989, Mr. Duff worked in asset management at Mitchell Hutchins and Capital Builders Advisory Services. He is a certified public accountant and a chartered financial analyst. Mr. Duff has an extensive knowledge of investing, asset management and financial markets gained from his experience with Tiger and with prior employers as well as through his teaching position at Columbia University. He brings a unique perspective to the Board of Directors as a stockholder and investor. In addition, he has accounting and financial expertise. He also has prior board experience, including service on a public company board.

 

Jacqueline B. Kosecoff

Director since 2005

Nominating and Corporate Governance Committee

Organization and Compensation Committee (Chair)

Age 66

Dr. Kosecoff works in private equity to identify, select, mentor and manage health services and IT companies. She is a managing partner at Moriah Partners and a senior advisor to Warburg Pincus.

From 2002 to 2012, Dr. Kosecoff was a senior executive at UnitedHealth Group-PacifiCare. Dr. Kosecoff joined UnitedHealth Group as part of its acquisition of PacifiCare Health Systems in 2005. At PacifiCare, Dr. Kosecoff served as Executive Vice President with responsibility for its specialty businesses, including its PBM, the Medicare Part D Drug Program, PacifiCare Behavioral Health, PacifiCare Dental & Vision, and Women’s Health Solutions. Upon joining United, Dr. Kosecoff took responsibility for the Medicare Part D business, pharmacy services for United’s senior, legacy PacifiCare and external PBM business, as well as the consumer health product division serving seniors. In 2007, Dr. Kosecoff was appointed CEO of Prescription Solutions (now known as OptumRx) with responsibility for United’s PBM, Specialty Pharmacy and Consumer Health Products, providing services as of 2011 to more than 13 million members with annual revenue of $18.5 billion. In 2011, Dr. Kosecoff was named Senior Advisor for Optum to identify and develop new growth and collaborative opportunities. Optum encompasses the health services businesses of UnitedHealth Group, consisting of OptumHealth, OptumInsight and OptumRx.

Dr. Kosecoff is a Director of athenahealth, Inc., a leading provider of cloud-based electronic health record practice management and care coordination services to medical groups and health systems, where she chairs the compensation committee and also serves on the nominating and corporate governance committee; and STERIS Corporation, a global leader in infection prevention, contamination control and surgical and critical care technologies, where she serves as chair of the compliance committee and is on the nominating and corporate governance committee. She also sits on the Executive Advisory Board for SAP America Inc. and is an advisor to Alignment Healthcare and Zoom+. Dr. Kosecoff previously served as a director of CareFusion Corporation.

Dr. Kosecoff received a bachelor of arts degree from the University of California, Los Angeles. She received a master of science degree in applied mathematics from Brown University and a Ph.D. degree in research methods from the University of California, Los Angeles. Previously, she founded information technology and drug development businesses in the medical field. Dr. Kosecoff was also previously on the faculty of the Schools of Medicine and Public Health at the University of California, Los Angeles. She has served as a consultant to the World Health Organization’s Global Quality Assessment Programs, on

the Institute of Medicine’s Board of Health Care Services, the RAND Graduate School’s Board of Governors, and the Board of Directors for ALARIS, City of Hope, the Alliance for Aging Research, and the Pharmaceutical Care Management Association. Dr. Kosecoff is a seasoned health care executive. Dr. Kosecoff brings to the Board her outstanding background as a business leader in the medical field. Sealed Air benefits from her experience in leading complex operations and in strategic planning. Additionally, Dr. Kosecoff brings an entrepreneurial direction to the Company.

Neil LustigHenry R. Keizer  

Director since 20152017

Member of Audit Committee

Age 61

Mr. Keizer formerly served as Deputy Chairman and Chief Operating Officer of KPMG, the U.S.-based and largest individual member firm of KPMG International or KMPGI, a role from which he retired in December 2012. KPMGI is a professional services organization that provides audit, tax and advisory services in 152 countries. Prior to serving as Deputy Chairman and Chief Operating Office, Mr. Keizer held a number of key leadership positions throughout his 35 years at KPMG, including Global Head of Audit from 2006 to 2010 and U.S. Vice Chairman of Audit from 2005 to 2010.

Mr. Keizer currently serves as Chairman of the Board and as a director of Hertz Global Holdings, Inc., where he also chairs the audit committee and serves on the financing committee and the nominating and governance committee. He is also a trustee of BlackRock Funds. He is a member of the Board of Directors of WABCO Holdings Inc., where he chairs the audit committee, and of Park Indemnity Ltd., a privately held Bermuda captive insurer affiliated with KPMGI. He previously served as a director and audit committee chair of MUFG Americas Holdings, Inc. and MUFG Union Bank, a financial and bank holding company and of Montpelier Re Holdings, Ltd., a global property and casualty reinsurance company until it merged with Endurance Specialty Holdings Ltd. in July 2015. Mr. Keizer was formerly a director of the American Institute of Certified Public Accountants from 2008 to 2011. He holds a bachelor’s degree in accounting, summa cum laude, from Montclair State University, New Jersey.

Mr. Keizer has significant management, operating and leadership skills gained as Deputy Chairman and Chief Operating Officer of KPMG and as a director of multiple public and private companies. Mr. Keizer, a certified public accountant, has extensive knowledge and understanding of financial accounting, internal control over financial reporting and auditing standards from his many years of experience and key leadership positions he held with KPMGI. Mr. Keizer also has over four decades of diverse industry perspective gained through advising companies engaged in manufacturing, banking, insurance, consumer products, retail, technology and energy, providing him with perspective on the issues facing major companies and the evolving global business environment.

Mr. Keizer’s extensive leadership experience at KPMG provides the Board with expertise in risk management and oversight over our domestic and international operations.

Jacqueline B. Kosecoff

Director since 2005

Member of Nominating and Corporate Governance Committee

Chair of Organization and Compensation Committee

Age 5468

Dr. Kosecoff works in private equity to identify, select, mentor and manage health services and IT companies. She is a managing partner at Moriah Partners and a senior advisor to Warburg Pincus.

From 2002 to 2012, Dr. Kosecoff was a senior executive at UnitedHealth Group-PacifiCare. Dr. Kosecoff joined UnitedHealth Group as part of its acquisition of PacifiCare Health Systems in 2005. At PacifiCare, Dr. Kosecoff served as Executive Vice President with responsibility for its specialty businesses, including its PBM, the Medicare Part D Drug Program, PacifiCare Behavioral Health, PacifiCare Dental & Vision, and Women’s Health Solutions. Upon joining United, Dr. Kosecoff took responsibility for the Medicare Part D business, pharmacy services for United’s senior, legacy PacifiCare and external PBM business, as well as the consumer health product division serving seniors. In 2007, Dr. Kosecoff was appointed CEO of Prescription Solutions (now known as OptumRx) with responsibility for United’s PBM, Specialty Pharmacy and Consumer Health Products, providing services as of 2011 to more than 13 million members with annual revenue of $18.5 billion. In 2011, Dr. Kosecoff was named Senior Advisor for Optum to identify and develop new growth and collaborative opportunities. Optum encompasses the health services businesses of UnitedHealth Group, consisting of OptumHealth, OptumInsight and OptumRx.

Dr. Kosecoff is a Director of athenahealth, Inc., a leading provider of cloud-based electronic health record practice management and care coordination services to medical groups and health systems, where she chairs the compensation committee and also serves on the nominating and corporate governance committee; Houlihan Lokey, Inc., a global investment bank, providing M&A, Capital Markets, Financial Restructuring, and Financial Advisory services, where she serves on the audit and the nominating and corporate governance committee; and STERIS Corporation, a global leader in infection prevention, contamination control and surgical and critical care technologies, where she serves on the compensation committee and the nominating and corporate governance committee. She also sits on severalnon-public boards – Alignment Healthcare; Amino; GoodRx, Inc.; Independent Living Systems, LLC; and Specialist on Call where she is the Board Chair and sits on the compensation committee.

Dr. Kosecoff received a bachelor of arts degree from the University of California, Los Angeles. She received a master of science degree in applied mathematics from Brown University and a Ph.D. degree in research methods from the University of California, Los Angeles. Previously, she founded information technology and drug development businesses in the medical field. Dr. Kosecoff was also previously on the faculty of the Schools of Medicine and Public Health at the University of California, Los Angeles. She has served as a consultant to the World Health Organization’s Global Quality Assessment Programs, on the Institute of Medicine’s Board of Health Care Services, the RAND Graduate School’s Board of Governors, and the Board of Directors for ALARIS, City of Hope, the Alliance for Aging Research, and the Pharmaceutical Care Management Association. Dr. Kosecoff is a seasoned health care executive. Dr. Kosecoff brings to the Board of Directors her outstanding background as a business leader in the medical field. Sealed Air benefits from her experience in leading complex operations and in strategic planning. Additionally, Dr. Kosecoff brings an entrepreneurial direction to Sealed Air.

Neil Lustig

Director since 2015

Mr. Lustig was elected to the BoardMember of Directors in May 2015. Mr. Lustig is the Chief Executive OfficerNominating and Corporate Governance Committee

Member of Sailthru, Inc. Mr. Lustig previously served as the PresidentOrganization and Chief Executive Officer of Vendavo Inc. from September 2010 until he retired in October 2014. Mr. Lustig joined Vendavo Inc. as Senior Vice President Global Sales in August 2007 and was appointed as the President and Chief Executive Officer after three years. Prior to joining Vendavo Inc., Mr. Lustig worked at Ariba, Inc. from 2001 to 2007, serving in multiple managerial roles in Ariba’s U.S. and European businesses. Mr. Lustig started his career in technology at IBM where he held a variety of Engineering, Sales, and Management roles over a sixteen year period. Mr. Lustig has more than 25 years of experience in software, hardware and cloud technology industries. Mr. Lustig was an advisor to Vendavo Inc. from October 2014 to October 2015.Compensation Committee

Age 56

Mr. Lustig received a Bachelor of Science degree in computer science and applied mathematics from the State University of New York at Albany. Mr. Lustig’s education, business management experience and knowledge of software, hardware and cloud technology industry are valuable to the Company,

Mr. Lustig was elected to the Board of Directors in May 2015. Mr. Lustig is the CEO of Sailthru, Inc. Mr. Lustig previously served as the President and CEO of Vendavo Inc. from September 2010 until he retired in October 2014. Mr. Lustig joined Vendavo Inc. as Senior Vice President Global Sales in August 2007 and was appointed as the President and CEO after three years. Prior to joining Vendavo Inc., Mr. Lustig worked at Ariba, Inc. from 2001 to 2007, serving in multiple managerial roles in Ariba’s U.S. and European businesses. Mr. Lustig started his career in technology at IBM where he held a variety of Engineering, Sales, and Management roles over a sixteen year period. Mr. Lustig has more than 25 years of experience in software, hardware and cloud technology industries. Mr. Lustig was an advisor to Vendavo Inc. from October 2014 to October 2015.

Mr. Lustig received a bachelor of science degree in computer science and applied mathematics from the State University of New York at Albany. Mr. Lustig’s education, business management experience and knowledge of software, hardware and cloud technology industry are valuable to Sealed Air, including in connection with its innovation strategies.

 

Kenneth P. Manning

Director since 2002

Audit Committee

Nominating and Corporate Governance Committee

Age 74

Mr. Manning is the Chairman of Sensient Technologies Corporation, a global manufacturer and marketer of colors, flavors and fragrances and other specialty chemicals. Mr. Manning previously served as Chairman and Chief Executive Officer of Sensient from 1996 until February 2014. At Sensient, he was the architect of that company’s strategic moves overseas and the transformation of the company from a producer of yeast and other commodities into a producer of flavor, fragrance and colors for foods, beverages, cosmetics and pharmaceuticals. Sensient also manufactures color, ink and other specialty chemicals for inkjet inks, display imaging systems and other applications. Sensient now has over 70 locations in more than 30 countries. Mr. Manning is also a director of Sensient. Mr. Manning is expected to retire from the Sensient board on April 21, 2016. Previously, Mr. Manning was a director of Badger Meter, Inc., a manufacturer of flow measurement and control products. In all, Mr. Manning has been a director of five different public companies.

Mr. Manning received his bachelor of science degree in mechanical engineering from Rensselaer Polytechnic Institute and his master of business administration degree from American University in operations research. He also has honorary doctor’s degrees from Cardinal Stritch University and Marian University. Prior to joining Sensient, Mr. Manning worked for W. R. Grace, where he held various executive positions including: Assistant to the CEO, Vice President of Operations—European Division, President of the Educational Products Division, President of Real Estate Division, Vice President—Corporate Technical Group and President and CEO of the Ambrosia Chocolate Division. Mr. Manning retired from the United States Naval Reserve as an Aerospace Engineering Duty Officer with the rank of Rear Admiral. He served on active duty in the United States Navy from 1963 to 1967 and, during his tenure in the Reserve, was the Commanding Officer of four different commands. His last assignment was Director of the Naval Reserve Air System Program. His military awards include the Legion of Merit. Mr. Manning is a member of the American Society of Mechanical Engineers and the American Chemical

Society, Navy League, the United States Naval Institute, the Naval Reserve Association, and the National Maritime Historic Association. He is also a Knight of Malta. Mr. Manning has extensive executive experience in international business, specialty chemicals and the food and beverage industry, with 18 years as a CEO and an additional six years as a COO.

William J. MarinoRichard L. Wambold  

Director since 2002

Chairman of the Board of Directors

Age 72

Mr. Marino is the retired Chairman, President and Chief Executive Officer of Horizon Blue Cross Blue Shield of New Jersey (“BCBSNJ”), the state’s largest health insurer, providing coverage for over 3.6 million people.

Mr. Marino joined Horizon BCBSNJ as Senior Vice President of Health Industry Services in January 1992, responsible for all aspects of Managed Care operations in New Jersey, as well as Market Research, Product Development, Provider Relations and Health Care Management. He became President and CEO in January 1994 and Chairman effective January 2010.

Since November 2010 Mr. Marino has served as a director of Sun Bancorp, Inc., where he serves on the Executive Committee, chairs the nominating and corporate governance committee and is a member of the compensation committee. Mr. Marino also serves as a director of WebMD Health Corp., where he is a member of the audit committee. Mr. Marino also serves as a director or trustee for numerous New Jersey-based cultural and community organizations.

Mr. Marino has over 40 years of experience in the health and employee benefits field, primarily in managed care, marketing and management. Before joining Horizon BCBSNJ, he was Vice President of Regional Group Operations for New York and Connecticut for Prudential, capping a 23-year career with the company.

Mr. Marino has extensive experience in the areas of management and strategic planning and board governance, as evidenced by his career at Horizon BCBSNJ and corporate boards. The breadth of his involvement in many corporate and community organizations has given him knowledge of corporate governance processes and practices and organizational structure optimization.

Mr. Marino is a recipient of the 1997 Ellis Island Medal of Honor. In 2007 he received the American Conference on Diversity’s Humanitarian of the Year Award. Mr. Marino graduated from St. Peter’s College in Jersey City with a Bachelor of Science degree in Economics.

Jerome A. Peribere

Director since 2012

Member of Organization and Compensation Committee

Age 61

Mr. Peribere is the President and Chief Executive Officer of Sealed Air since March 1, 2013. Prior to such position, Mr. Peribere served as the President and Chief Operating Officer of Sealed Air and was elected to the Board in September 2012. Prior to joining the Company, Mr. Peribere worked at The Dow Chemical Company (“Dow”) from 1977 through August 2012. Mr. Peribere served in multiple managerial roles with Dow, most recently as Executive Vice President of Dow and President and Chief Executive Officer, Dow Advanced Materials, a unit of Dow, from 2010 through August 2012. Mr. Peribere currently serves as a board member of Xylem Inc. Mr. Peribere previously served as a director of BMO Financial Corporation. Mr. Peribere graduated with a degree in business economics and finance from the Institut D’Etudes Politiques in Paris, France.

Mr. Peribere brings his extensive leadership, global operations, strategy and integration experience to the Board.

66

Mr. Wambold joined the Board of Directors of Sealed Air in March 2012. Mr. Wambold previously served as CEO of Reynolds/Pactiv Foodservice and Consumer Products, a global manufacturer and supplier of consumer food and beverage packaging and consumer products, from November 2010 until January 2011 when he retired. Mr. Wambold was CEO of Pactiv from November 1999 until November 2010 and was CEO and Chairman of the Board from 2000 until November 2010. Mr. Wambold has been a private investor since January 2011. Mr. Wambold served as a director of Cooper Tire & Rubber Company from 2003 until his retirement from the board in May 2015. Mr. Wambold joined the board of Precision Castparts Corp in 2009. He served as lead director there until its sale to Berkshire Hathaway at the end of 2015.

Mr. Wambold holds a bachelor of arts degree in Government and a master of business administration from the University of Texas. Mr. Wambold’s education, board member experience, business management experience, including his service as a public company chairman and CEO, and knowledge of the packaging industry make him a valuable member of the Board.

Richard L. WamboldJerry R. Whitaker  

Director since 2012

Organization and Compensation Committee

Age 64

Mr. Wambold joined the BoardChair of the Company in March 2012. Mr. Wambold previously served as Chief Executive Officer of Reynolds/Pactiv Foodservice and Consumer Products, a global manufacturer and supplier of consumer food and beverage packaging and consumer products, from November 2010 until January 2011 when he retired. Mr. Wambold was Chief Executive Officer of Pactiv from November 1999 until November 2010 and was Chief Executive Officer and Chairman of the Board from 2000 until November 2010. Mr. Wambold has been a private investor since January 2011. Mr. Wambold served as a director of Cooper Tire & Rubber Company from 2003 until his retirement from the board in May 2015. Mr. Wambold joined the board of Precision Castparts Corp in 2009. He served as lead director there until its sale to Berkshire Hathaway at the end of 2015.

Mr. Wambold holds a B.A. in Government and a master of business administration from the University of Texas. Mr. Wambold’s education, board member experience, business management experience, including his service as a public company chairman and chief executive officer, and knowledge of the packaging industry make him a valuable member of the Board of Directors.

Jerry R. Whitaker

Director since 2012

Audit Committee (Chair)

Member of Nominating and Corporate Governance Committee

Age 65

Mr. Whitaker was elected to the Board of the Company in January 2012. Mr. Whitaker served as President of Power Components & Systems Group from 2004 through 2009 and as President of Electrical Sector-Americas, Eaton Corporation, a global manufacturer of highly engineered products, until his retirement in June 2011. Prior thereto, he served in various management positions at Eaton Corporation since 1994. Prior to joining Eaton Corporation, Mr. Whitaker spent 22 years with Westinghouse Electric Corp.

Mr. Whitaker received a Bachelor of Science degree from Syracuse University and a master of business administration degree from George Washington University. He currently serves as a director of Matthews International Corporation. Mr. Whitaker also serves on the Boards of the Carnegie Science Center and The Carnegie Museums of Pittsburgh, as well as the advisory board for The Syracuse University School of Engineering. Mr. Whitaker’s experience and knowledge as an executive in global manufacturing industries are valuable resources to the Company.

67

Mr. Whitaker was elected to the Board of Directors of Sealed Air in January 2012. Mr. Whitaker served as President of Power Components & Systems Group from 2004 through 2009 and as President of Electrical Sector-Americas, Eaton Corporation, a global manufacturer of highly engineered products, until his retirement in June 2011. Prior thereto, he served in various management positions at Eaton Corporation since 1994. Prior to joining Eaton Corporation, Mr. Whitaker spent 22 years with Westinghouse Electric Corp.

Mr. Whitaker received a bachelor of science degree from Syracuse University and a master of business administration degree from George Washington University. He currently serves as a director of Matthews International Corporation, where he serves as chair of the nominating and corporate governance committee and as a member of the finance committee, and on the boards of three private companies, Crescent Electric Supply Co., Milliken & Company, and Universal Electric Co. Mr. Whitaker also serves on the board of the Energy Innovation Center, as well as the advisory board for The Syracuse University School of Engineering. Mr. Whitaker’s experience and knowledge as an executive in global manufacturing industries are valuable resources to Sealed Air.

The Board of Directors recommends a vote FOR the teneight nominees for election as directors.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934 as amended, requires our executive officers and directors and any persons owning ten percent or more of the common stock to file reports with the SEC to report their beneficial ownership of and transactions in our securities and to furnish the Companyus with copies of the reports.

Based solely upon a review of the Section 16(a) reports furnished to us, along with written representations from or on behalf ofour executive officers and directors, that no other such reports were required during 2015, we believe that all required reports were timely filed during 2015.2017.

Beneficial Ownership Table

The following table sets forth the number of outstanding shares of common stock beneficially owned (as of the record date or, where indicated, the Schedule 13G or Schedule 13D date where indicated)date) and the percentage of the class beneficially owned (as of the record date):

 

by each person known to us to be the beneficial owner of more than five percent of the then outstandingthen-outstanding shares of common stock;

 

directly or indirectly by each current director, nominee for election as a director, and named executive officer who is included in the 2015“Executive Compensation—2017 Summary Compensation Table below;Table”; and

 

directly or indirectly by all of our directors and executive officers of the Company as a group.

The number of shares of our common stock owned by each person is determined under the rules of the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose.SEC. Under these rules, beneficial ownership includes any shares as to which the individual has sole or shared voting power or investment power and also any shares whichthat the individual has the right to acquire within 60sixty days after March 21, 2016,19, 2018, or by May 20, 2016,18, 2018, through the conversion of a security or other right. Unless otherwise indicated, each person has sole investment and voting power, or shares such power with a family member, with respect to the shares set forth in the following table. The inclusion in this table of any shares deemed beneficially owned does not constitute an admission of beneficial ownership of those shares.shares for any other purpose.

Beneficial Owner  

Shares of

Common Stock

Beneficially

Owned

  

Percentage of
Outstanding Shares of

Outstanding

Shares of Common

Stock

 

The Vanguard Group, Inc.

19,783,735110.1


100 Vanguard Blvd


Malvern, PA 19355

  18,934,966 

Iridian Asset Management LLC

116,438,7122   8.310.5

276 Post Road West

Westport, CT 06880-4704

% 

BlackRock, Inc.

12,084,06236.1


55 East 52nd Street


New York, NY 10022

  11,671,160 2 6.3

Janus Henderson Group PLC
201 Bishopsgate, London
EC2M 3AE United Kingdom

10,667,641 35.9 

Emile Z. Chammas

   107,250177,894 7   * 

Michael Chu

   25,81438,402 4, 5   * 

Lawrence R. Codey

   43,14072,741 4, 5   * 

Karl R. Deily

   190,463263,869 6, 7, 8*

Edward L. Doheny II

43,448 7   * 

Patrick Duff

   88,655116,146 4, 5   * 

Ilham KadriHenry R. Keizer

   39,9003,779 75   * 

Jacqueline B. Kosecoff

   30,18543,778 4, 5   * 

Carol P. Lowe

   82,268132,538 6, 7   * 

Neil Lustig

   4,038*

Kenneth P. Manning

130,0749,349    * 

William J. Marino

   46,444120,347 4   * 

Jerome A. Peribere

   644,8261,084,710 5, 6, 7*

William G. Stiehl

46,291 7   * 

Richard L. Wambold

   18,31142,041 4   * 

Jerry R. Whitaker

   7,02124,744 4   * 

All current directors and executive officers as a group (18(14 persons)

   1,688,9411,055,613 9   * 

 

*Less than 1%.

 

1 

The ownership information set forth in the table is based on information contained in a Schedule 13G, dated March 10, 2016,February 9, 2018, filed with the SEC by The Vanguard Group, Inc., with respect to ownership of shares of common stock, which indicated that The Vanguard Group, Inc. had sole voting power with respect to 391,872259,349 shares, shared voting power with respect to 19,90035,893 shares, sole dispositive power with respect to 19,378,25718,648,340 shares and shared dispositive power with respect to 405,478286,626 shares.

 

2 

The ownership information set forth in the table is based on information contained in a Schedule 13G, dated January 26, 2016, filed with the SEC by Iridian Asset Management LLC (“Iridian”), David L. Cohen (“Cohen”) and Harold J. Levy (“Levy”), with respect to ownership of shares of common stock. Iridian is majority owned by Arovid Associates LLC, a Delaware limited liability company owned and controlled by the following: 12.5% by Cohen, 12.5% by Levy, 37.5% by LLMD LLC, a Delaware limited liability company, and 37.5% by ALHERO LLC, a Delaware limited liability company. LLMD LLC is owned 1% by Cohen, and 99% by a family trust controlled by Cohen. ALHERO LLC is owned 1% by Levy and 99% by a family trust controlled by Levy. Iridian has the direct power to vote or direct the vote, and the direct power to dispose or direct the disposition, of 16,438,712 shares of common stock. Cohen and Levy may be deemed to share with Iridian the power to vote or direct the vote and to dispose or direct the disposition of such shares.

3

The ownership information set forth in the table is based on information contained in a Schedule 13G, dated January 22, 2016,23, 2018, filed with the SEC by BlackRock, Inc., with respect to ownership of shares of common stock, which indicated that BlackRock, Inc. had sole voting power with respect to 10,387,76210,018,577 shares and sole dispositive power with respect to 12,084,06211,671,160 shares.

 

3The ownership information set forth in the table is based on information contained in a Schedule 13G, dated February 12, 2018, filed with the SEC by Janus Handerson Group PLC, with respect to ownership of shares of common stock, which indicated that Janus Handerson Group PLC had shared voting power with respect to 10,667,641 shares and shared dispositive power with respect to 10,667,641 shares.

4 

The number of shares of common stock listed in the table does not include 148,863180,361 stock units held in the stock accounts of thenon-employee directors under the Sealed Air Corporationour Deferred Compensation Plan for Directors. Each stock unit

represents one share of common stock. Holders of stock units cannot vote the shares represented by the units or transfer such units; see “Director Compensation—Deferred Compensation Plan” above. The stock units so held bynon-employee directors are set forth below.

Michael Chu

   7,1559,909 

Lawrence R. Codey

   28,42834,561 

Patrick Duff

   17,58727,491 

Jacqueline B. Kosecoff

   8,1978,451 

William J. Marino

   59,40365,733 

Richard L. Wambold

   15,99516,492 

Jerry R. Whitaker

   12,098

17,723
 

Total

   148,863

180,361
 

5 

The number of shares of common stock listed for Mr. Chu includes 2,000 shares for which he shares voting and investment power with a family member. The number of shares of common stock listed for Mr. Codey includes 960 shares held in a trust relating to a deceased family member for which he has voting and investment power but disclaims beneficial ownership and 7,425 shares for which he shares voting and investment power with a family member. The number of shares of common stock listed for Mr. Duff includes 50,000 shares for which he shares voting and investment power with a family member. The number of shares of common stock listed for Mr. Keizer includes 3,779 shares for which he shares voting and investment power with a family member. The number of shares of common stock listed for Dr. Kosecoff includes 30,18532,648 shares for which she holds indirectly through a certain estate planning vehicle and shares voting and investment power with a family member. The number of shares of common stock listed for Mr. Peribere includes 199,042818,108 shares for which he holds indirectly through certain estate planning vehicles.

 

6 

This figure includes restricted stock units awarded to our executive officers as the “principal portion” of their stock leverage opportunity (SLO) awards and restricted stock units awarded to our executive officers who are retirement-eligible as the “premium portion” of their SLO awards. Under our Annual Incentive Plan, our executive officers have the opportunity to designate a portion of their annual bonus to be received as SLO awards. The numbers of such restricted stock units held by the named executive officers and by the directors and executive officers as a group who are retirement eligible are as follows.

Karl R. Deily

   9,0663,925 

Carol P. Lowe

   8,8293,269 

Jerome A. Peribere

   127,12497,850 

DirectorsCurrent directors and executive officers as a group

   166,92611,113 

 

This figure does not include restricted stock units awarded to our executive offices who are not retirement-eligible as the “premium portion” of their SLO awards. The number of such restricted stock units held by the named executive officers and by the directors and executive officers as a group are as follows.

Carol P. Lowe

2,206

Jerome A. Peribere

31,780

Directors and executive officers as a group

37,625

7 

This figure includes shares of common stock held in our Profit-Sharing Plan trust fund with respect to which our executive officers individually and as a group may, by virtue of their participation in the plan, be deemed to be beneficial owners. The approximate numbers of share equivalents held by the named executive officers and by the directors and executive officers as a group under the plan are set forth below.

Emile Z. Chammas

   2,6923,385 

Karl R. Deily

   4,3065,052 

Ilham KadriEdward L. Doheny II

   347303 

Carol P. Lowe

   2,0432,413 

Jerome A. Peribere

   2,0432,716 

DirectorsWilliam G. Stiehl

2,124

Current directors and executive officers as a group

   27,34920,430 

 

8 

This figure includes shares of common stock held in the Company’sour 401(k) Thrift Plan trust fund with respect to which our executive officers individually and as a group may, by virtue of their participation in the plan, be deemed to be beneficial owners. The approximate numbers of share equivalents held by the named executive officers and by the directors and executive officers as a group under the plan are set forth below.

Karl R. Deily

   953983 

DirectorsCurrent directors and executive officers as a group

   4669983 

 

9 

This figure includes, without duplication, the outstanding shares of common stock and restricted stock units referred to in Notes 5 through 8 above held by our current directors and executive officers, and does not include stock units held in the stock accounts of thenon-employee directors or the restricted stock units held by officers who are not retirement-eligible as the “premium portion” of their SLO awards.

The address of all personsindividuals listed above (other than The Vanguard Group, Iridian Asset Management LLC, and BlackRock, Inc.) is c/o Sealed Air Corporation, 8215 Forest Point2415 Cascade Pointe Boulevard, Charlotte, NC 28273.North Carolina 28208.

Executive Compensation

Compensation Discussion and Analysis

Our Compensation Discussion and Analysis, (“or CD&A”)&A, describes the key features of our executive compensation program and the Compensation Committee’s approach in deciding 20152017 compensation for our named executive officers:

 

Name

  Title (as of the last day of 2015)2017)

Jerome A. Peribere

  President and Chief Executive Officer
Carol P. Lowe

William G. Stiehl

  Senior Vice President andActing Chief Financial Officer, Chief Accounting Officer and Controller

Edward L. Doheny II

Chief Operating Officer andCEO-Designate

Emile Z. Chammas

  Senior Vice President, Chief Supply Chain Officer

Karl R. Deily

  Senior Vice President, President, Food Care
Ilham Kadri

Carol P. Lowe

  Former Senior Vice President President, Diversey Careand Chief Financial Officer

We have divided this discussion into five parts:

1.20152017 Overview
2.Key Elements of Our Executive Compensation Program
3.20152017 Compensation Decisions: Base Salary and Incentive Compensation
4.Governance of Our Executive Compensation Program
5.Other Features and Policies

2017 Overview

2015 Overview

Key Business Accomplishments in 20152017

 

Delivered net sales of $7.0$4.5 billion, an increase of 6% compared to the prior year, and Adjusted EBITDA of $1.17 billion,$833 million, or 16.7%19% of net sales. All three divisions,regions reported positive sales growth. North America, which accounted for 54% of net sales, was the fastest growing region, reporting an increase of 8%.

Generated $421 million in consolidated free cash flow, excluding $181 million in payments related to the sale of our Diversey Care division and the food and hygiene and cleaning business within its Food Care Product Care anddivision, which we refer to below as the Diversey Care, delivered Adjusted EBITDA margin expansion as compared to 2014.

Sale.

 

Adjusted EBITDA increased 5.0% as reported compared to 2014 despite $126 million of unfavorable foreign currency translation impact.

Returned value to stockholders through the repurchase of approximately 16.127 million shares for $802 million$1.2 billion and annual dividend of approximately $107$120 million in 2015.

2017.

LOGO

Please refer to pages 2, 3, 35, 5731, 49 and 9387 of our Annual Report on Form10-K filed on February 22, 201621, 2018 for additional information about our key accomplishments in 20152017 and for important information about the use ofnon-U.S. GAAP financial measures, including applicable reconciliations to U.S. GAAP financial measures.

Key 20152017 Compensation Decisions

Compensation decisions by the Compensation Committee for 20152017 demonstrate the direct link between the compensation opportunities for our named executive officers and performance for our stockholders:

 

The Compensation Committee structured compensation opportunities for our named executive officers for 20152017 similar to the design of our compensation program for 2014,2016, taking into account the potential Diversey Sale, with an emphasis on performance-based annual and long-term incentive compensation opportunities. For the named executive officers other than Mr. Doheny (who was hired in September 2017), 100% of the long-term incentive compensation opportunity was in the form of an award of performance share units, (“PSUs”).

or PSUs.

 

The Compensation Committee established performance goals for 20152017 annual incentive awards under the Annual Incentive Plan, focused on a balanced mix of Adjusted EBITDA, and expense reduction and working capital ratio goals.

The Compensation Committee established performance goals for the PSUs awarded in early 20152017 based on our performance over a three-year performance period, 2015-2017.2017-2019. Performance for the PSUs is measured by a combination of our 2017Net Sales Compound Average Growth Rate for the performance period, 2019 Consolidated Adjusted EBITDA Margin and our relative total stockholder return, (“TSR”)or TSR, compared against a group of peer companies over the performance period.

Details regarding the performance measures and targets used for the 20152017 annual incentive awards and 2015-20172017-2019 PSUs can be found below under “2015“2017 Compensation Decisions: Base Salary and Incentive Compensation.”

Mr. Doheny was hired in September 2017, and his 2017 compensation was based on the terms of his offer letter agreement. Under his offer letter agreement, Mr. Doheny was eligible for a prorated 2017 annual incentive award determined on the same basis as the other named executive officers. He also received two new hire equity awards, structured 70% as performance-vesting restricted stock units (to be earned based on a combination of relative TSR and stock-price goals for 2018-2020) and 30% as time-vesting restricted stock units (vesting on December 31, 2020).

The following summarizes the 20152017 compensation results for the named executive officers based on annual and three-year performance results through 2015:2017:

Summary of 2017 Incentive Award Results

 

Annual performance of
Award TypePerformance MeasuresPerformance ResultsCompensation Outcomes

2017 Annual Incentive

Awards

  Adjusted EBITDA

  Expense ratio

  Working capital ratio

  Division and individual performance

  2017 Adjusted EBITDA: below target

  Expense ratio and working capital ratio: above maximum

  Annual Incentive Plan pool funded at 126.5% of target

  Division and individual performance results reviewed

  For the named executive officers (other than Ms. Lowe), 2017 cash incentive awards earned between 126.5% and 145.5% of target

2015-2017 PSUs

  2015-2017 relative TSR

  2017 Adjusted EBITDA Margin

  Relative TSR: below target level

  Adjusted EBITDA Margin: below target level

  Awards earned at 73.3% of target

2014-2016 Special PSUs

  Second 50% of award (previously earned at 200% of 2014-2016 free cash flow goals) subject to meeting 2017 ratio of working capital to net trade sales goal

  2017 ratio of working capital to net trade sales goal met

  Second 50% of award earned

In addition, in January 2016, Mr. Peribere and expenseSealed Air entered into a new agreement to extend his employment term to December 31, 2017 and working capital ratios all exceededto update his salary and incentive compensation targets for 2015.service during that period beginning in 2016. As part of that extension, Mr. Peribere was granted twoone-time inducement stock awards, one a result,time-based restricted stock unit award for 75,000 shares

vesting based on continued service through December 31, 2017 and the bonus poolother a PSU award for 75,000 shares based on relative TSR and stock price goals for the Annual Incentive Plan funded at 118.3% of target. Based on this funding andperiod from January 1, 2016 to December 31, 2017. Mr. Peribere earned the Compensation Committee’s review of individual performance, the named executive officers received annual incentive awards for 2015 ranging from 112% to 142% of target, with Mr. Peribere’stime-based award, at 131.91% of his target.

The Compensation Committee reviewedbut the performance resultsgoals for the 2013-2015 PSUs. Performance goals for these PSUsPSU award were based on Adjusted EBITDA marginsnot met and relative TSR. The overall performance for 2013-2015it was above maximum levels and as a result these awards paid out at 200% of target.forfeited accordingly.

Key Features

The Compensation Committee believes that our executive compensation program follows best practices aligned to long-term stockholder interests, as summarized below:

 

What We Do

ü  Provide a majority of compensation in performance-based compensation

 

LOGO

LOGO
  Consistent with our goal of creating a performance-oriented environment; 85%environment, 88% of total direct compensation for CEO, and 70%79% of total direct compensation for other named executive officers (excluding Mr. Doheny), is performance-based

ü  Pay for performance based on goals for both annual and long-term awards

 

LOGO

LOGO
  Use multiple, balanced measures;measures, including use of both absolute and relative measures for long-term awards

ü  Balanced mix of awards tied to annual and long-term performance

 

LOGO

LOGO
  For CEO, total direct compensation includes 19%16% in annual incentive award and 66%72% in long-term award at target; for 2017, 100% of long-term awards for named executive officers are(other than Mr. Doheny) were performance-based

ü  Stock ownership and retention policy

 

LOGO

LOGO
  

Multiple of base salary and cash bonus must be held in common stock — 6x for CEO, 3.5x for CFO and at least 2x3x for other named executive officers (3x for the Senior Vice Presidents)

Presidents; 100% ofafter-tax shares must be held until ownership goal is met; 50% of additional after-tax shares expected to be held until retirement

met

ü  Compensation recoupment (clawback) policy

 

LOGO

LOGO
  Recovery of annual or long-term incentive compensation based on achievement of financial results that were subsequently restated due to error or misconduct, regardless of whether the named executive officer was responsible for the error or misconduct

ü  Receive advice from independent compensation consultant

 

LOGO

LOGO
  Compensation consultant (Cook & Co.)(FW Cook) provides no other services to the CompanySealed Air
What We Don’t Do

×   No supplemental executive retirement plans for named executive officers

 

LOGO

LOGO
  Consistent with focus on performance- orientedperformance-oriented environment; reasonable and competitive retirement programs offered

×   No change in control excise taxgross-ups

 

LOGO

LOGO
  Consistent with focus on performance-oriented environment and commitment to best practices aligned to long-term stockholder interests

×   No excessive perquisites or severance benefits

 

LOGO

LOGO
  Consistent with focus on performance-oriented environment and commitment to best practices aligned to long-term stockholder interests

×   No single-trigger vesting of equity compensation upon a change in control

 

LOGO

LOGO
  Under our equity compensation plans, vesting following a change in control requires involuntary termination of employment (double-trigger)

Key Elements of Our Executive Compensation Program

Key Elements of Our Executive Compensation Program

Compensation Components

The following table summarizes the main components of our executive compensation program for U.S. employees, including for our named executive officers, are set forth in the following table.officers. A more detailed description is provided in the following sections of this CD&A.

 

Compensation
Element
  Description  Objectives

Base Salary

- Fixed cash compensation

  

-  Fixed cash compensation

  Appropriate level of fixed compensation based on role and duties

- Assists

  Assist with recruitment and retention

Annual Incentive

  

-  Annual cash award if performance metrics are achieved

-

  Target award is based on a percentage of base salary

-

  Payouts from0-200% of target based on performance resultscompany and individual performance review

-

  Executive may elect all or a portion of the award in the form of a restricted stock award vesting over two years, with a 25% enhancement

  

- Intended to reward  Reward executives for driving superior operating and financial results over aone-year timeframe

- Creates

  Create a direct connection between business success and financial reward

Long-Term Incentives

  

- PSUs  Performance share units earned based on performance, typically over three-year performance period with0-200% payout

-

  Occasional awards of restricted stock or restricted stock units that vest at the end of three years of service

  

- Rewards  Reward achievement of longer-term goals

- Creates

  Create direct connection between longer termlonger-term business success and financial reward

- Encourages

  Encourage retention

Retirement Plans

  

-  Standard plans generally offered to all salaried employees based on location of services

-

  No supplemental executive retirement plans

  

- Provides  Provide retirement income for participants

- Assists

  Assist with recruitment and retention

Deferred Compensation

  

-  Elective, nonqualified deferred compensation plan for select U.S. employees

-

  Permits deferral of salary and certain cash incentives

-

  No CompanySealed Air contributions are included

  

- Provides  Provide opportunity to save for retirement

- Assists

  Assist with recruitment and retention

Post-Employment Benefits

  

-  Executive Severance Plan provides modestcompetitive benefits in case of involuntary termination; no single-trigger vesting of equity awards upon a change in control

- CEO

  Mr. Peribere has post-employment benefits under the terms of his employment arrangement

  Mr. Doheny also has post-employment benefits under the terms of his offer letter agreement

  

- Assures  Assure continuing performance of executives in the face of possible termination of employment without cause

- Assists

  Assist with recruitment and retention

Other Benefits

  

-  Health care and life insurance programs

-

  Limited perquisites

  

-  Competitive with peer companies

- Assists

  Assist with recruitment and retention

Compensation Mix

Under our executive compensation program, the Compensation Committee establishes each principal element of compensation for our named executive officers—i.e., comprising base salary, annual incentive targets and long-term incentive compensation targets—close to the median range based on data from peer companies (discussed below). As a result, both the level and the mix of the total compensation opportunity are intended to generally approximate the competitive median range. This design addresses one of our key goals: to ensure we provide competitive compensation opportunities so that we can attract and retain executives with the necessary skills to successfully manage a business of our size, scope and scope.complexity. Since each element of compensation is mainly set by reference to levels at other companies, the Compensation Committee has not set any fixed relationship between the compensation of the CEO and that of any other named executive officer. The Compensation Committee considers the peer group data regressed to the Company’sour revenue size when evaluating the named executive officers’ compensation against the peer group.

Executive officers earn annual incentive and long-term incentive awards based on achievement of performance goals, which we establish to support our annual and longer-term financial and strategic goals. Because annual and long-term incentives make up a significant portion of each executive officer’s total compensation, the program has been designed to pay close to the median range when target goals are met, provide above-median pay when our target goals are exceeded, and provide below-median pay when target goals are not met. These incentive award opportunities address another of our key goals: to provide a performance-oriented environment where above-median compensation can be realized when performance goals are exceeded and below-median compensation will be paid when performance goals are not achieved.

The following charts show the mix of base salary, target annual incentives and target PSU awards for the named executive officers for 2015:2017 (ignoring Mr. Doheny’s 2017 compensation given he was newly hired in September 2017):

20152017 Executive Total Direct Compensation Mix

 

LOGOLOGO

2017 Compensation Decisions: Base Salary and Incentive Compensation

2015 Compensation Decisions: Base Salary and Incentive Compensation

Base Salary

We pay salaries because a fixed component of compensation is an important part of a competitive compensation package. The Compensation Committee establishes salary levels for executive officers primarily based on consideration of the median range for the peer companies, as well as reviews of broad- basedbroad-based surveys of compensation trends and practices at other industrial companies in the United States, while also considering country-specific guidelines for compensation increases and performance, which are more significant factors for those whoseperformance. For Mr. Peribere, his 2017 salary is within or nearlevel was established as part of the agreement

extending his employment term through December 31, 2017. For Mr. Doheny, his 2017 salary level was established as part of his new hire offer letter agreement entered into in September 2017. For Messrs. Chammas and Deily, the increases were designed to better align their salaries with the peer company median range.based on guidance from FW Cook.

In 2015,2017, the Compensation Committee set the base salaries of each of the named executive officers as follows:

 

Name  2014 Salary   2015 Salary   % Increase 

Jerome A. Peribere

  $1,150,000    $1,190,250     3.5

Carol P. Lowe

  $600,000    $618,000     3.0

Emile Z. Chammas

  $490,000    $504,700     3.0

Karl R. Deily

  $490,000    $507,150     3.5

Ilham Kadri1

  $433,073    $477,000     10.14
1Dr. Kadri’s base salary from January through July 2015 is converted from euros; see Note 4 to the 2015 Summary Compensation Table below. Dr. Kadri’s salary increase primarily related to her move in mid-year 2015 from the Netherlands, where she was paid in euros, to the U.S., where she is paid in dollars.
Name  2016 Salary   2017 Salary   % Increase 

Jerome A. Peribere

   $1,250,000    $1,250,000    0.0

William G. Stiehl

   $331,574    $338,205    2.0

Edward L. Doheny II

       $1,150,000     

Emile Z. Chammas

   $518,832    $578,497    11.5

Karl R. Deily

   $521,350    $573,485    10.0

Carol P. Lowe

   $635,304    $648,010    2.0

Annual Incentive Compensation

 

    
A significant portion of each named executive officer’s total annual compensation opportunity is made in the form of a target annual incentive opportunity under the Annual Incentive Plan. The Annual Incentive Plan is intended to drive high performance results based on the achievement of our strategic goals, with emphasis on performance and alignment of the interests of our named executive officers with our stockholders. The program provides the opportunity to earn a significantly higher annual incentive award if target performance is exceeded but the risk of a significantly lower annual incentive award, or even no annual incentive award, if target performance is not achieved.    

20152017 Annual Incentive Award Highlights

 

üBased on balanced mix of objective financial measures and individual performance assessments

 

ü2015 2017 corporate financial achievement exceeded targets,for two of three goals above maximum, resulting in above-target payouts

 

ü Some executives elected a portion to be awarded as equity-based SLOsStock Leverage Opportunities (SLOs)

  
    

The Compensation Committee sets annual incentive compensation through a four step process: (1) set target award levels for the named executive officers, (2) establish the performance goals and payout curve for the year, (3) review company and individual performance results after the end of the year and (4) determine award amounts. For any named executive officer who elects to have all or a portion of the annual incentive award delivered as a “stock leverage opportunity” (SLO),opportunity,” or SLO, there is a fifth step related to applying the SLO award rules. Each of these steps is discussed further below.

Step 1: Setting Target Award Levels. The Compensation Committee determines the target level of annual incentive award for each named executive officer as a percentage of the named executive officer’s base salary. Mr. Peribere’s target award for 20152017 was set at 125%130% of his salary.salary as part of the agreement extending his employment term through December 31, 2017. The Compensation Committee considered that this target for Mr. Peribere was in line with the median for the Sealed Air compensation peer group. See “—Use of Peer Group Data” below. Mr. Doheny’s target award for 2017 was set at 120% of his salary as part of his new hire offer letter agreement entered into in September 2017. For the other named executive officers, the target percentages established for 20152017 were based on consideration of the median ranges established through peer group and general industry survey data on compensation trends and practices. The following table shows the calculation of the target annual incentive award for each named executive officer:

 

Name 2015 Salary Target %    Target Annual Award  2017 Salary Target%    Target Annual Award 

Jerome A. Peribere

 $1,190,250    125  =   $1,487,813    $1,250,000   130 =  $1,625,000 

Carol P. Lowe

 $618,000    75  =   $463,500  

William G. Stiehl

  $338,205   45 =  $152,192 

Edward L. Doheny II

  $1,150,000   120 =  $396,980

Emile Z. Chammas

 $504,700    65  =   $328,055    $578,497   70 =  $404,948 

Karl R. Deily

 $507,150    65  =   $329,648    $573,485   70 =  $401,440 

Ilham Kadri

 $477,000    65  =   $310,050  

Carol P. Lowe

  $648,010   75 =  $486,008 

*For Mr. Doheny, his 2017 target annual award was prorated based on his September 2017 hire date in accordance with his offer letter agreement.

Step 2: Performance-Based Design. The Compensation Committee established the performance design for 20152017 annual incentive awards for the named executive officers similar to the design for 2014.2016. The design uses both a Financial Achievement Factor and an Individual Achievement Factor, as follows:

 

LOGOLOGO

The Financial Achievement Factor is based on a formula established by the Compensation Committee in early 2015.2017. For the CEO and Chief Financial Officer,named executive officers other than Mr. Deily, this factor is based 100% on overall corporate results. For Mr. Deily, who runs the other named executive officers who run a business segment,Food Care division, in order to focus the executive on the financial performance of their business segmentthis division while also encouraging senior leadership teamwork towards overall corporate results, the Financial Achievement Factor is based 50% on corporate results and 50% on the executive’s business segmentFood Care’s division results.

Similar to 2014,2016, the Compensation Committee established three performance goals under the Annual Incentive Plan for determining the Financial Achievement Factor for 2015:2017:

 

  

Consolidated Adjusted EBITDA, weighted 50%. Consolidated Adjustedadjusted EBITDA is defined as 20152017 adjusted net earnings plus interest expense, taxes and depreciation and amortization, but excluding the expense of funding the Annual Incentive Plan bonus pool.amortization. Consolidated Adjustedadjusted EBITDA is anon-U.S. GAAP financial measure and excludes the impact of specific items approved by the Compensation Committee as noted below.

 

  

Improvement in ratio of support expense to gross profit,weighted 25%. Support expense is defined as selling, general and administrative expenses plus R&D costs, excluding depreciation and amortization. Gross profit is defined as net trade sales minus the cost of goods and services sold.

  

Improvement in ratio of working capital to net trade sales,weighted 25%. Working capital is defined as trade receivables plus inventory minus trade payables. Net trade sales is defined as consolidated revenues from all divisions to external third parties and excluding intercompany sales.

All three performance criteria represent continuing operations only, excluding the portion of the business sold in 2017 as part of the Diversey Sale. In order to ensure that achievement of these measures represents the performance of the core business, each of the measures was calculated at 20152017 budgeted foreign exchange rates and adjusted for specific items approved by the Compensation Committee, including restructuring charges, charges relating to impairment of goodwill or intangibles, all tax adjustments related to the completion of tax audits or the expiration of relevant statutes of limitation, all expenses relating to our involvement in the W. R. Grace & Co. bankruptcy proceedings, expenses relating to capital markets transactions, the effect of certain acquisitions and dispositions, expenses related to cash-settled stock appreciation rights granted as part of the 2011 Diversey acquisition and the effect of certain accounting changes.

The Compensation Committee selected these three goals because it believes that achieving such goals will improve the quality of the Company’sour earnings and they are in the long-term interest of our stockholders. The target levels for these goals were based on the Company’sour goals and strategies to improve the quality of earnings, profitability, cash flow from operations and working capital overall.

The following summarizes the performance goals selected by the Compensation Committee at threshold, target and maximum, and the corresponding payout percentage at each performance level (with the payout percentage determined on a pro rata basis for achievement between levels above threshold):

 

Metric: 20152017 Consolidated Adjusted EBITDA – weighted 50%

% Achievement

of Target

  

Consolidated Adjusted

EBITDA Goal Achieved

  Payout %

Less than 90%85%

  Less than $1,041 million$708M  0%
90%

85% (threshold)

  $             1,041 million708M  50%

100% (target)

  $             1,157 million833M  100%

At least 110%115% (max)

  $             1,273 million958M  200%

 

Metric: 20152017 Ratio of Support Expense to Gross Profit – weighted 25%

Achievement

  Ratio of Support Expense
to Gross Profit Goal
Achieved
  Payout %

Above 64.8%50.6%

  Higher ratio than 20142016  0%
64.8%

50.6% (threshold)

  Same ratio as 20142016  50%
60.6%

49.9% (target)

  41370 bps improvement  100%

Less than 56.5%49.2% (max)

  826140 bps improvement  200%

 

Metric: 20152017 Ratio of Working Capital to Net Trade Sales – weighted 25%

Achievement

  

Ratio of Working Capital to

Net Trade Sales

Goal Achieved

  Payout %

Above 17.0%12.6%

  Higher ratio than 20142016  0%
17.0%

12.6% (threshold)

  Same ratio as 20142016  50%
15.0%

12.1% (target)

  19450 bps improvement  100%

Less than 13.3%10.4% (max)

  371220 bps improvement  200%

The Compensation Committee applies the Individual Achievement Factor, which could range from 0% to 200%, to adjust individual bonus awards. In no event, however, will the annual incentive award, as adjusted for individual performance, exceed 200% of the target. Unlike the formulaic calculation for the Financial Achievement Factor, each named executive officer’s individual performance adjustment factor is based on a subjective evaluation of overall performance and consideration of the achievement of individual goals established at the beginning of the year. The material features of the 20152017 individual performance assessments for the named executive officers are described in Step 3 below.

Step 3: Performance Results for 20152017. In early 2016,2018, the Compensation Committee reviewed the financial performance of the Companyour company and its business segments to determine the 20152017 Financial Achievement Factor. The following chart summarizes the corporate-level results of this analysis:

 

Metric Weighting Threshold Target Maximum Actual Payout %

Consolidated Adjusted

EBITDA

 50% $1,041M $1,157M $1,273M $1,185 124.1%

Support Expense to Gross

Profit Ratio

 25% 64.8%
Same ratio
as 2014
 60.6%

413 bps
improvement

 56.5%

826 bps
improvement

 59.7%

509 bps
improvement

 123.2%

Working Capital to Net

Trade Sales Ratio

 25% 17.0%

Same ratio
as 2014

 15.0%

194 bps
improvement

 13.3%

371 bps
improvement

 15.0%

197 bps

improvement

 101.8%
    Financial

Achievement Factor

 118.3%

Metric

  Weighting  Threshold  Target  Maximum  Actual  Payout %

Consolidated

Adjusted EBITDA

  50%  $708M  $833M  $958M  $804M  88.4%

Support Expense

to Gross Profit

Ratio

  25%  50.6%
Same ratio
as 2016
  49.9%

70 bps
improvement

  49.2%

140 bps
improvement

  48.2%

243 bps
improvement

  200.0%

Working Capital to

Net Trade Sales

Ratio

  25%  12.6%

Same ratio
as 2016

  12.1%

50 bps
improvement

  10.4%

220 bps
improvement

  8.1%

448 bps

improvement

  200.0%
            Financial Achievement Factor  126.5%1
1Annual Incentive Plan (AIP) payout would be capped at 110% if our reported adjusted EBITDA at actual rates were below $833 million. While the calculated achievement is 144.2%, additional funding of the AIP pool beyond 126.5% would result in reported adjusted EBITDA at actual rates less than $833 million, and therefore the Financial Achievement Factor is capped at 126.5%.

Ms. Lowe resigned effective October 31, 2017. The terms of the Annual Incentive Plan generally require participants to remain employed through the award payment date. Ms. Lowe was therefore not eligible for an annual incentive award for 2017. As a result, no additional individual performance review was performed for Ms. Lowe.

The Compensation Committee also reviewed individual performance of the other named executive officers to establish an Individual Achievement Factor for each. OurMr. Doheny, who succeeded Mr. Peribere as our CEO effective January 1, 2018 and with input from Mr. Peribere prior to his retirement, recommended to the Compensation Committee an Individual Achievement Factor and annual incentive award amount for each named executive officer other than himself based on his discretionary assessment of his/her individualthe individual’s contributions for the full year. The Compensation Committee considered all of the information presented, discussed our CEO’s recommendations with him and FW Cook, & Co., and applied its judgment to determine the final Individual Achievement Factor and annual incentive award amount for each named executive officer. The Compensation Committee, with further approval of the Board of Directors, determined our CEO’sMr. Doheny’s Individual Achievement Factor and bonus amount based on its assessment of his performance.

The following chart briefly summarizes the material factors considered by the Compensation Committee in this individual performance assessment for 2015.2017. In addition to the individual performance goals, the Compensation Committee considered how those goals were achieved, addressing individual performance in categories such as team building, talent development, and ability to deliver value and results.

 

Name  Individual Performance Goals/Assessment
Jerome A. Peribere  

The Compensation Committee considered Mr. Peribere’s continued progresseffort and leadership in shaping new business models forcompleting the Company, changingDiversey Sale while also maintaining Company-wide focus on achieving 2017 financial goals under the culture into a customer value creation centric organization and continued delivery of superior financial performance.Annual Incentive Plan.

Carol P. LoweWilliam G. Stiehl  The Compensation Committee considered Ms. Lowe’sMr. Stiehl’s successful leadership of the complex finance requirements of the Diversey Sale, enterprise-wide expense management leading to EBITDA contributions, and his effectiveness in team buildingassuming the Acting CFO role in connectionQ3 2017.
Edward L Doheny IIThe Compensation Committee considered Mr. Doheny’s effective transition from the Chief Operating Officer role into the CEO position effective January 1, 2018. Mr. Doheny’s transition included customer visits, global facility visits and town hall meetings, investor interaction, and strong focus with the movesenior leadership team. Early analysis of business performance led to strategic pivots for the new Charlotte headquarters,business strategy on innovations, operational excellence, customer service, and performance metrics to be implemented in addition to continued successes related to oversight of restructuring programs and other cost-saving initiatives, refinancing the Company’s debt at favorable conditions, reporting system improvements, mergers and acquisitions and other strategic financial initiatives and engagement with the investment community.2018.
Emile Z. Chammas  The Compensation Committee considered Mr. Chammas’sChammas’ leadership in overseeingof continued improvement in cost optimization, procurement efficiencies, best in classprogress ofbest-in-class safety results, improved manufacturing quality, supply chain contributions to EBITDA, further deployment of a lean culture, and improved qualitymanagement of production.cost reduction throughout the organization.
Karl R. Deily  The Compensation Committee considered Mr. Deily’s leadership inof commercial transformational programs to enable growth, the highly successfuleffective leadership of the global hygiene business until the Diversey Sale, the launch of new products, and the development of new business models, as well as overall leadership of his business unit which drove strong financialdivision results and certain other strategic goals specific to Mr. Deily’s business unit.
Ilham KadriThe Compensation Committee considered Dr. Kadri’s development of new value creation customer partnerships and execution of new business models, including a robotics business and the future digital programdivision. Mr. Deily’s role has also been expanded to include responsibility for the Company.Core Innovation organization spanning both the Food Care and Product Care Divisions and enterprise-wide innovation initiatives.

Based on its assessment and judgment, the Compensation Committee determined an Individual Achievement Factor for Mr. Peribere and Mr. Doheny of 115%100%. The other named executive officers had Individual Achievement Factors ranging from 105%100% to 110%115%.

Step 4: Award Payouts for 20152017. The following table summarizes the annual incentive awards determined for each of the named executive officers for 2015:2017, other than Ms. Lowe who did not receive an award:

 

Name Target Annual Award X Overall
Achievement
Factor
 Annual Incentive
Award
   Target Annual Award   X   Overall
Achievement
Factor
 Annual Incentive
Award
 

Jerome A. Peribere

  $1,487,813    x    131.91%    $1,962,499    $1,625,000    x    126.5 $2,055,625 

Carol P. Lowe

  $463,500    x    120.44%    $558,216  

William G. Stiehl

   $152,192    x    126.5  $192,523 

Edward L. Doheny II

   $396,980    x    126.5  $502,180 

Emile Z. Chammas

  $328,055    x    120.44%    $395,093     $404,948    x    145.5  $589,098 

Karl R. Deily

  $329,648    x    142.12%    $468,495     $401,440    x    145.5  $583,994 

Ilham Kadri

  $310,050    x    111.62%    $346,062  

 

*The Overall Achievement Factor is the combined result of the applicable Financial Achievement Factor and Individual Achievement Factor. These have been roundedFactor (rounded to the nearest tenth of a percent in the table.table above). As noted above, the Financial Achievement Factor for any named executive officer that leads a business segment was based 50% on corporate financial results and 50% on business segmentdivision results.

 

**As noted above, the maximum annual incentive award is capped at 200% of target.

Step 5: SLO Awards. Under the Annual Incentive Plan, our named executive officers also have the opportunity each year to designate a portion of their annual incentive award to be received as an equity award under our equity compensation plan, called stock leverage opportunity, (“SLO”)or SLO, awards. The portion to be denominated in SLO awards, in increments of 25% of the annual incentive award, may be given a premium to be determined by the Compensation Committee each year. The stock price used to calculate the number of shares that can be earned is the closing price on the first trading day of the performance year ($42.7046.50 on January 2, 2015)3, 2017), thereby reflecting stock price changes during the performance year in the value of the SLO award. Once the amount of the earned annual incentive award that has been earned has been determined for each executive officer following the end of the year, the cash portion is paid out shortly thereafter, and the SLO award is provided in the form of an award of restricted stock or restricted stock units under our equity compensation plan with atwo-year restriction period. The Compensation Committee believes that SLO awards provide an additional means to align the interests of our named executive officers with those of our stockholders using performance-based compensation.

For 2015,2017, the Compensation Committee established a 25% premium for any portion of the annual incentive award elected as an SLO award. The following named executive officers elected to receive a portion of their annual incentive award as ana SLO award:

 

Name  Cash Award %   SLO Award % 

Jerome A. Peribere

   0%     100%  

Carol P. Lowe

   75%     25%  

Emile Z. Chammas

   100%     0%  

Karl R. Deily

   75%     25%  

Ilham Kadri

   100%     0%  
Name  Cash Award %   SLO Award % 

Karl R. Deily

   75   25

For those named executive officers who elected to receive a portion of their 20152017 annual incentive award as ana SLO award, the division of the final annual incentive award between cash and the SLO award was as follows:

 

Name  Cash Award
($)
   

SLO Award

(# of Shares)

 

Jerome A. Peribere

  $0     57,451  

Carol P. Lowe

  $418,662     4,086  

Emile Z. Chammas

  $395,093       

Karl R. Deily

  $351,371     3,429  

Ilham Kadri

  $346,062       

Name  Cash Award ($)   SLO Award 
(# of Shares)
 

Karl R. Deily

  $437,996    3,925 

The amounts awarded as cash for 20152017 are shown later in the 2015this Proxy Statement in “—2017 Summary Compensation Table at page 56Table” under the “Non-Equity“Non-Equity Incentive Compensation Plan” column, while under SEC rulesand the SLO awards are includedshown in “—2017 Summary Compensation Table” under the “Stock Award” column based on their grant date fair value assuming target performance.

Long-Term Incentive Compensation

2017-2019 PSU Awards. Our executive compensation program provides for annual awards of PSUs to the named executive officers. The program is intended to align compensation closely to our performance while giving the executive officers the opportunity for exceptional value if performance targets are exceeded and while continuing to encourage the retention of our executive officers.

 

   
The PSU awards provide for three-year performance periods with a targeted number of shares to be earned if performance during the period meets goals set during the first 90 days of the period. If performance is below defined threshold levels, then no units will be earned, and if performance exceeds defined maximum levels, then a maximum number of units (above the target number) will be earned.  

 

Long-Term Incentive Award Highlights

 

ü100% of 20152017 award in the form of PSUs earned based on 2015-2017
2017-2019 performance goals (Adjusted(adjusted EBITDA Marginmargin, net sales CAGR and relative TSR)

ü2013-2015 2015-2017 PSUs earned at maximumbelow target level based on above-maximumbelow-
target performance results

New hire awards to Mr. Doheny in connection with his offer of employment

 

 
   

During the first quarter of 2015,2017, the Compensation Committee established PSU award target levels for the performance period starting January 1, 20152017 for the named executive officers. We refer to these as the “2015-20172017-2019 PSUs.

The target award levels were generally based on a percentage of base salary, with the percentage of salary set within the median range for long-term incentive compensation for executives with similar positions and responsibilities. For Mr. Peribere, the target award dollar amount was determined under the agreement he entered into in 2016 in connection with the extension of his employment term. The target dollar amount was separately allocated to each of the two weighted performance metrics for the award: (1) relative TSR, weighted at 35%, and (2) 2017 consolidated adjusted EBITDA margin, weighted at 65%. award, as follows:

Performance Measure

Weighting

2017-2019 relative TSR

34%

2019 consolidated adjusted EBITDA margin

33%

Net sales compound annual growth rate (3-year CAGR)

33%

The target number of PSUs for the relative TSR portion was determined by dividing the allocated portion of the target dollar amount by the accounting value per share for that portion of the award (based on the Monte Carlo simulation value as of the grant date). Similarly, the target number of PSUs for the consolidated adjusted EBITDA margin portion wasand net sales CAGR portions were determined by dividing the allocated portion of the target dollar amount by the closing price of our common stock on the grant date. In each case, the target number of PSUs was rounded up to the next whole unit. Mr. Doheny was not eligible for a 2017-2019 PSU award since he was not hired until September 2017.

 

              

Target Award

(# of PSUs)

 
Name  Target %   LTI Value   Relative
TSR
   Adj. EBITDA
Margin
 

Jerome A. Peribere

   425  $5,058,628     29,553     71,403  

Carol P. Lowe

   170  $1,050,649     6,138     14,830  

Emile Z. Chammas

   160  $807,579     4,718     11,399  

Karl R. Deily

   160  $811,490     4,741     11,454  

Ilham Kadri1

   160  $713,078     4,166     10,065  

Name

    

Target %

   

LTI Value

     Target Award (# of PSUs) 
          Relative
TSR
     Adj. EBITDA
Margin
     Net Sale
CAGR
 

Jerome A. Peribere1

     N/A   $7,559,000      55,786      54,993      54,993 

William G. Stiehl

     90   $304,385      2,247      2,215      2,215 

Emile Z. Chammas

     165   $941,679      6,950      6,851      6,851 

Karl R. Deily

     165   $946,251      6,984      6,885      6,885 

Carol P. Lowe

     170   $1,101,618      8,131      8,015      8,015 
1 (1)Dr. Kadri’sMr. Peribere’s target LTI value is converted from euros; see Note 4 todetermined under the Summary Compensation Table below.agreement he entered into in 2016 in connection with the extension of his employment term.

The Compensation Committee selected relative TSR as a metric to balance achievement of internal goals with performance against our peers in an easily measurable metric that directly demonstrates value creation for our stockholders. The Compensation Committee recognized that the consolidated adjusted EBITDA margin metric provides further alignment with the broader Annual Incentive Plan and our goal to improve quality of earnings. The Compensation Committee added net sales CAGR as a measure to create additional alignment with our top line growth. The results of each metric will determine the number of shares earned for that metric, based on that metric’s weighting. The total award will be the addition of the total number of shares earned for each of the twothree performance metrics.

TSR represents the percent change in the share price from the beginning of the performance period to the end of the performance period and assumes immediate reinvestment of dividends when declared at the closing share price on the date declared. The beginning share price will be calculated as an average of 31 data points: the closing share price on January 2, 20153, 2017 and the closing share price +/+/-15 trading days from January 2, 2015.3, 2017. The ending share price will be calculated as an average of 31 data points: the closing share price on December 31, 20172019 and the closing share price +/+/-15 trading days from December 31, 2017.2019.

The performance of this metric will be assessed in comparison of the percentile rank to the approved peer group of companies. The lowest ranked company will be the 0% rank, the middle ranked company will be the 50th percentile rank and the top ranked company will be the 100th percentile rank. If a company is acquired or otherwise is no longer publicly traded and its share price is no longer available, it will be excluded from the peer group.

The three yearthree-year relative TSR percentile rank at threshold, target and maximum for the performance period follows:

2015-20172017-2019 PSUs

RELATIVE TSR PERFORMANCE GOAL

(weighted 35%34%)

 

Achievement    TSR Percentile Rank    % of Target Earned

Below Threshold

    Below 25th25th percentile    0%0%��

Threshold

    25th percentile    25%25

Target

    50th percentile    100%100

Maximum

    75th percentile and above    200%200

Award levels based on three yearthree-year relative TSR percentile rank between any two of these levels would be based on apro-rata calculation of the number of shares earned, except that no shares for this metric will be earned for three yearthree-year relative TSR percentile rank below 25ththe 25th percentile.

The Consolidated Adjustedconsolidated adjusted EBITDA Marginmargin metric measures 2017 Consolidated Adjusted2019 consolidated adjusted EBITDA as a percentage of 2017 Net Sales,2019 net sales, subject to certain adjustments. For this purpose, (i) “2017 Consolidated Adjusted(1) “2019 consolidated adjusted EBITDA” is the Company’sour earnings before interest, taxes, depreciation and amortization for calendar year 2017,2019, derived from the Company’sour U.S. GAAP net earnings, subject to certain specified adjustments;adjustments and (ii) “2017 Net Sales”(2) “2019 net sales” is the Company’sour “net sales” for 20172019 as reported in the Company’sour Annual Report on Form10-K for 2017.2019. The goals were based on the continuing operations of Sealed Air taking into account the planned Diversey Sale.

2017 Consolidated Adjusted2019 consolidated adjusted EBITDA Marginmargin performance levels at threshold, target and maximum are as follows:

2015-20172017-2019 PSUs

20172019 CONSOLIDATED ADJUSTED EBITDA MARGIN GOAL

(weighted 65%33%)

 

  
Achievement  

2017 Consolidated

Adjusted EBITDA Margin

  % of Target Earned    

2019 Consolidated

Adjusted EBITDA Margin

    % of Target Earned 

Below Threshold

  Less than 16.0%  0%    Less than 18.9%     0

Threshold

  16.0%  50%    18.9%     50

Target

  17.5%  100%    20.2%     100

Maximum

  19.0% and above  200%    21.5% and above     200

Award levels based on 2017 Consolidated Adjusted2019 consolidated adjusted EBITDA Marginmargin between any two of these levels would be based on apro-rata calculation of the number of shares earned, except that no shares for this metric will be earned for 2019 consolidated adjusted EBITDA margin below the threshold goal.

The net sales CAGR metric measures the CAGR for net sales for the performance period against the baseline of 2016 net sales. The CAGR will be determined using the standard CAGR formula and based on 2019 net sales. For this purpose, “net sales” for 2016 and 2019 means our net sales for 2016 and 2019, as applicable, as reported in our Annual Report on Form10-K for the applicable year and, for 2019 Net Sales, measured (1) at the 2017 Consolidated Adjusted EBITDA Marginannual operating plan foreign exchange rates and (2) to reflect constant resin prices determined and fixed as of December 31, 2016. The goals were based on the continuing operations of Sealed Air taking into account the planned Diversey Sale.

The net sales CAGR performance levels at threshold, target and maximum are as follows:

2017-2019 PSUs

NET SALES CAGR GOAL

(weighted 33%)

Achievement    Net Sales CAGR    % of Target Earned 

Below Threshold

    Less than 0.7%     0

Threshold

    0.7%     50

Target

    2.5%     100

Maximum

    3.6% and above     200

Award levels based on net sales CAGR between any two of these levels would be based on apro-rata calculation of the number of shares earned, except that no shares for this metric will be earned for net sales CAGR below 16.0%.

the threshold goal.

Mr. Peribere and Ms. Lowe received this PSU award. Mr. Peribere’s employment agreement provided for special retirement treatment for his award, permitting the continued vesting of the award following his retirement on December 31, 2017, subject to actual performance results for the performance period and his compliance with post-employment covenants. Ms. Lowe’s award was forfeited in connection with her resignation.

Mr. Doheny’s New Hire Awards. In connection with his recruitment, we entered into an offer letter agreement with Mr. Doheny. The offer letter agreement provides that Mr. Doheny will be granted on his start date twonew-hire equity awards, with 30% as a time-vesting award and 70% as a performance-vesting award. These awards were necessary to encourage Mr. Doheny to accept our offer of employment and provide both retention and performance incentives that are aligned to our long-term stockholder interests. The time-vesting award, for 30,000 shares, requires Mr. Doheny to remain in service with us through December 31, 2020. The performance-vesting award, for 70,000 shares, in addition to requiring employment through December 31, 2020, requires that either (1) our cumulative total stockholder return for 2018-2020 be in the top 33% of our peers (using the same peers and methodology under the 2017-2019 PSU awards) and our stock price as of December 31, 2020 equals at least $60/share or (2) our stock price as of December 31, 2020 equals at least $75/share. The offer letter agreement provides that the stock price as of December 31, 2020 for this purpose will be determined using a30-day arithmetic mean of closing prices. The offer letter agreement also addresses treatment of the new hire awards upon termination of employment, which is more fully discussed under “—Payments Upon Termination or Change in Control” below.

Performance Results for Prior Year PSU Awards

The Compensation Committee certifieddetermined the performance results for twothree sets of PSUs with performance periods ending in 2015:2017: (1) the 2013-20152015-2017 PSUs granted in early 2013, and2015; (2) the third vesting tranchesecond half of a 2012 new hirethe Special PSUs granted in early 2014 focused principally on adjusted free cash flow performance from 2014-2016 and our working capital to net trade sales ratio calculated as of December 31, 2017; and (3) the CEO inducement award granted in early 2016 based on our total shareholder return relative to Mr. Peribere with a 12-month performance period ending August 31, 2015.its peer companies from 2016 -2017.

2013-20152015-2017 PSUs. The 2013-20152015-2017 PSUs earned at 200%73.3% of target based on achievement of two principal goals measured over the 2013-20152015-2017 performance period, as follows:

2013-20152015-2017 PSUs

 

Metric (weighting)  Metric Target  Achievement  Payout %  Metric  Target3   Achievement  Payout %

Adjusted EBITDA Margin1 (65%)

  14.0%  16.7%  200%   19.8%   19.0%  73.3%

TSR2 (35%)

  50th percentile  100th percentile  200%   50th percentile   41st percentile  73.3%
    Total  200%     Total  73.3%

 

1Adjusted EBITDA Marginmargin metric measures 2015 Consolidated Adjustedmeasured 2017 consolidated adjusted EBITDA as a percentage of 2015 Net Sales,2017 net sales, subject to certain exclusions. For this purpose, (i) “2015 Consolidated Adjusted(a) “2017 consolidated adjusted EBITDA” is the Company’sour earnings before interest, taxes, depreciation and amortization for calendar year 2015,2017, derived from the Company’sour U.S. GAAP net earnings, subjectadjusted to exclude certain specified adjustments;items and (ii) “2015 Net Sales”(b) “2017 net sales” is the Company’s “net sales”our net sales for 20152017 as reported in the Company’sour Annual Report on Form10-K for 2015.2017.

 

2The TSR metric measures the percent change in share price from the beginning of the performance period to the end of the performance period and assumes immediate reinvestment of dividends when declared at the closing share price on the date declared. The beginning share price will bewas calculated as an average of 31 data points: the closing share price on January 2, 20132015 and the closing share price +/- 15 trading days from January 2, 2013.2015. The ending share price will bewas calculated as an average of 31 data points: the closing share price on December 31, 20152017 and the closing share price +/- 15 trading days from December 31, 2015.2017. The performance of this metric will bewas assessed in comparison of the percentile rank to the approved peer group of companies. The lowest ranked company will bewas the 0%0 percentile rank, the middle ranked company will bewas the 50th percentile rank and the top ranked company will bewas the 100th percentile rank. If a company iswas acquired or otherwise is no longer publicly traded and its share price no longer available, it will bewas excluded from the peer group.

3For Adjusted EBITDA Margin, consistent with the terms of the award as originally approved that provide for adjustments to exclude the effect of acquisitions and divestitures, the performance goals and results were adjusted to reflect continuing operations only, excluding the businesses sold in 2017 as part of the Diversey Sale. The adjustment to the performance goals to exclude the Diversey Sale resulted in higher achievement targets than originally approved. For example, target achievement as originally approved in early 2015 was 17.5%, but after adjustment for the Diversey Sale was 19.8%.

2012 New Hire2014 Special PSUs. The special PSU Awardawards were aone-time award made in early 2014 to further focus the enterprise on generating free cash flow. The named executive officers (other than Mr. Doheny) received this award. The special PSUs were earned principally based on achievement of specified levels of adjusted free cash flow, above targets established in our 2014 three-year strategic plan, over the three-year performance period of 2014-2016. In addition, no portion of an award was earned unless we achieved a minimum specified level of adjusted earnings per share for Mr. Peribere Earned2016, in 2015order to balance the free cash flow goal with an appropriate focus on generating earnings. To further balance the incentives, the award earned based on adjusted free cash flow performance could be reduced by 25% if our relative TSR for 2014-2016 was below the 50th percentile of an approved peer group of companies.

Actual achievement of the award based on performance through 2016 was 200%. The special PSUs earned are paid out in equal installments over two years. The first half of the award was paid in 2017. The 2018 payment is subject to continued service to December 31, 2017 and the achievement of a 2017 performance goal related to the ratio of working capital to net trade sales for 2017. We met thepre-established ratio of working capital to net trade sales for 2017, and the award has been paid out.

2016 CEO Inducement Award. As an inducement to accept our offer ofcontinued employment, on January 15, 2016, Mr. Peribere’s employment agreement includes a new hirePeribere was granted an Inducement PSU award granted in 2012 (on his hire date) divided into four separate vesting tranches of 25,000 shares each (for a total of 100,000 shares). These vesting tranches become75,000 shares. The award would be earned based onif either (1) our relativecumulative TSR for 2016-2017 is in the four consecutive 12-month performance periods ending on August 31 in each of 2013, 2014, 2015 and 2016. The shares for a tranche are earned if our relative TSR for the applicable 12-month performance period is at or above median of the peer group. Any shares that become earned based on TSR performance for a performance period will be vested and settled by delivery of shares on August 31, 2016. For the performance period ending August 31, 2015, our relative TSR performed above the mediantop 25% of our peers (using the same peers and therefore the 25,000 shares for that period have been earnedmethodology under our 2016-2018 PSU award) and will be settled Augustour stock price as of December 31, 20162017 equals at least $43.70 per share or (2) our stock price as of December 31, 2017 equals at least $55.00 per share. The December 31, 2017 share price calculated in accordance with the termsinducement award was $47.67; our cumulative TSR for 2016 – 2017 compared to our peer group was below the 25th percentile. As a result, the performance goals were not achieved and the award was forfeited.

Governance of the award.Our Executive Compensation Program

Governance of Our Executive Compensation Program

Oversight by the Compensation Committee

The Compensation Committee is responsible for establishing and implementing our executive compensation philosophy and for ensuring that the total compensation paid to our named executive officers and other executives is fair and competitive and motivates high performance.

Under our executive compensation philosophy, we provide compensation in the forms and at levels that will permit us to retain and motivate our existing executives and to attract new executives with the skills and attributes that we need. The compensation program is intended to provide appropriate and balanced incentives toward achieving our annual and long-term strategic objectives, to support a performance-oriented environment based on the attainment of goals and objectives intended to benefit our Company and

our stockholders, and to create an alignment of interests between our executives and our stockholders. The compensation program is designed to place a greater weight on rewarding the achievement of longer termour longer-term objectives and financial performance of the Company.performance.

Role of Independent Compensation Consultant

Since 2006,FW Cook & Co. has advisedadvises the Compensation Committee on the selection of peer companies, provided comparative industry trends and peer group data regarding salary, annual incentive and long-term incentive compensation levels for our executive officers and other key executives, and advised on recommended compensation levels for our management. FW Cook & Co. assisted the Compensation Committee in selecting metrics and goals for the 20152017 annual bonus program and the 2015-20172017-2019 PSUs. The Compensation Committee has assessed the independence of FW Cook & Co. pursuant to SEC rules and concluded that no conflict of interest exists that would prevent FW Cook & Co. from serving as an independent consultant to the Compensation Committee.

Role of CEO and Management

The Compensation Committee from time to time directs members of management to work with FW Cook & Co. to provide executive compensation information or recommendations to the Compensation Committee. However, the Compensation Committee has not delegated any of its authority to determine executive compensation programs, practices or other decisions to our management. As noted above, the current executive compensation program was developed and approved by the Compensation Committee with advice and support from FW Cook & Co. after consulting with the CEO and the Company’sour compensation and legal professionals. The CEO and other executive officers and compensation professionals attend portions of meetings as requested by the Compensation Committee.

While the Compensation Committee approved metrics for the 20152017 annual bonus and long-term incentive programs, FW Cook, & Co., the CEO and other members of our management also were consulted in developing the metrics and establishing the goals for the 20152017 programs.

The CEO submits salary and bonus recommendations to the Compensation Committee for the other named executive officers as well as for the other executives whose compensation is set by the Compensation Committee. In addition, the Compensation Committee has delegated to the CEO limited authority to make equity awards to employees who are not executive officers. The CEO does not provide input regarding his own compensation and does not participate in any related Compensation Committee deliberations. Following a review of those recommendations with FW Cook, & Co., the Compensation Committee approves compensation decisions for our named executive officers. In making compensation decisions for named executive officers other than the CEO, the Compensation Committee relies on the CEO’s recommendations but makes independent adjustments and is not bound by those recommendations.

Use of Peer Group Data

The Compensation Committee uses data from a peer group as a factor in setting executive compensation levels and in designing executive compensation programs. The peer group is reviewed annually by the Compensation Committee. The Compensation Committee includes companies primarily in the materials sector that are comparable to usSealed Air based on sales, percentage of sales outside of the U.S.,United States, number of employees and market capitalization. The table below sets forth the peer group of companies that the Compensation Committee considers in setting executive compensation levels and in designing compensation programs. The peer group is unchanged from 2012 (other thanwas adjusted in 2017 to reflect the removal of MeadWestvaco Corporation which was acquired during 2015).Diversey Sale.

 

Peer Group Companies
Agrium

AptarGroup, Inc.

Berry Plastics Group, Inc.Owens-Illinois, Inc.

Ashland Global Holdings Inc.

Celanese CorporationPackaging Corporation of America

Avery Dennison Corporation

 Crown Holdings, Inc. Owens-Illinois,PolyOne Corporation

Axalta Coating Systems Ltd.

Graphic Packaging Holding Co.Silgan Holdings Inc.
Air Products & Chemicals, Inc.

Ball Corporation

 Celanese CorporationThe Mosaic Company
AshlandGreif, Inc.Eastman Chemical CompanyPPG Industries, Inc.
Avery Dennison CorporationEcolab Inc.Praxair, Inc.
Ball CorporationHuntsman CorporationThe Sherwin-Williams Company
Bemis Company, Inc.Monsanto Company Sonoco Products Co.

Bemis Company, Inc.

Maple Leaf Foods Inc.

The Compensation Committee considers comparative executive compensation levels and practices based on information from the peer companies as well as other data provided by FW Cook & Co. related to general industry executive compensation trends.

Shareholder Feedback and Consideration of 2015 2017Say-on-Pay Vote

The Compensation Committee and the Board of Directors considered the results of the “say-on-pay”“say-on-pay” vote at the Annual Meeting held on May 14, 2015,18, 2017, when the compensation of our named executive officers was approved by over 97%96% of the stockholders that voted. The Compensation Committee believes that this stockholder vote indicates strong support for our executive compensation program and considered the strong stockholder support in determining its 20162018 compensation practices. The Board encourages stockholders to contact the Board and share any concerns about our executive compensation program, but given the historic strong levels of stockholder support for our executive compensation program, the Compensation Committee did not engage in any formal outreach program to stockholders on executive compensation matters in 2015.2017.

Other Features and Policies

Other Features and Policies

ShareStock Ownership Guidelines

In order to align the interests of named executive officers and stockholders, we believe that our named executive officers should have a significant financial stake in the Company.Sealed Air. To further that goal, we have stock ownership guidelines that apply to our named executive officers and other key executives. The guidelines for our named executive officers are as follows:

 

Executive officers are required to hold a multiple of their salary plus cash bonus, where the multiple ranges from sixsalary: 6 for the CEO, to three3.5 for the Senior Vice PresidentsCFO and two3 for the other executive officers.

Senior Vice Presidents;

 

Share equivalents held in ourtax-qualified retirement plans are included, but unvested awards under our equity compensation plans are excluded. Executive officers have five years from the later of the adoption of the stock ownership guidelines or their appointment as executive officers to reach the guidelines.excluded;

Until the minimum stock ownership has been reached, executive officers are expected to retain all shares received as awards under the Company’sour equity compensation programs after payment of applicable taxes.

taxes; and

 

Once the minimum stock ownership has been reached, executive officers are expected to retain half of any additional shares received as awards under our equity compensation programs (after payment of applicable taxes) until retirement.

The Compensation Committee can approve exceptions to the stock ownership guidelines for executive officers in the event of home purchase, higher education expenses, major illness, gifts or financial hardship.

As of March 21, 2016,19, 2018, all of our named executive officers had met thesethe ownership guidelines other than Dr. Kadri, who is still withinor had shares retained at vesting as required by the initial five-year period allowed under the policy.guidelines.

Savings, Retirement and Health and Welfare Benefits

Our named executive officers participate in the retirement programs available generally to employees in the countries in which they work because we believe that participation in these programs and in the other health and welfare programs mentioned below is an important part of a competitive compensation package. In the U.S.,United States, our named executive officers participate in twotax-qualified defined contribution retirement plans, the Profit-Sharing Plan of Sealed Air Corporation and the Sealed Air Corporation 401(k) Thrift Plan. As a result of participating in these broad-based retirement plans, our executive officers are eligible to receive Company-paid profit-sharing and matching contributions paid by us, up to IRS limits applicable totax-qualified plans.

Mr. Deily also participates in the Sealed Air Corporation Restoration Plan for Cryovac Employees, a tax- qualifiedcomponent plan of the Sealed Air Combined Pension Plan and atax-qualified defined benefit plan that covers the employees of our Cryovac operations who participated in a defined benefit plan maintained by a previous employer immediately prior to March 31, 1998. The Restoration Plan for Cryovac Employees is described under “Pension“—Pension Benefits in 2015”2017” below. The plan was amended to freeze benefit accruals as of December 31, 2016, and as a result, no additional benefits will be accrued under the plan after 2016. Mr. Deily currently does not have any cumulative benefit under that plan.

U.S.-based named executive officers may elect to defer a portion of salary or cash incentive awards under our nonqualified deferred compensation plan. The Compensation Committee believes that this plan is appropriate because executives are limited in the amount that they can save for retirement under the 401(k) Thrift Plan due to IRS limits applicable totax-qualified retirement plans. No employer contributions are provided under the deferred compensation plan. None of the named executive officersFor 2017, Mr. Peribere, Mr. Stiehl and Mr. Deily elected to participate in the plan for 2015, other than Mr. Deily.plan.

We do not offer any other nonqualified excess or supplemental benefit plans to our named executive officers in the U.S.United States

All of our named executive officers participate in the health, life insurance, disability benefits and other welfare programs that are provided generally to employees in the countries in which they work.

Perquisites and Other Personal Benefits

Consistent with our performance-oriented environment, we provided limited perquisites to our named executive officers, as discussed below.included under the “All Other Compensation” column in “—2017 Summary Compensation Table.” The limited perquisites we do provide are intended to provide a competitive compensation package for retention and recruitment.

Ms. Lowe and Messrs. Chammas and Deily were transferred title of a Company-owned vehicle during 2015 in connection with the termination of the Company’s automobile benefits. Before relocating to the U.S., Dr. Kadri received certain benefits pursuant to the terms of her employment agreement, including a Company-leased vehicle and related expenses, and school expenses for her child. See discussion below under “Employment, Severance and Change in Control Agreements” regarding certain relocation-related benefits and payments received by Dr. Kadri during 2015 in connection with her relocation to the U.S.

Compensation Recoupment (Clawback) Policy

TheOur compensation recoupment (clawback) policy, or the Recoupment Policy requires each executive officer to reimburse the Companyus for all or a portion of any annual or long-term incentive compensation paid to the executive officer based on achievement of financial results that were subsequently the subject of a restatement due to error or misconduct regardless of whether the executive officer was responsible for the error or misconduct so long as no payment or award or a lower payment or award would have been made to the officer based on the restated results. The Board of Directors will make the determination whether to seek recovery. The Recoupment Policy is part of our overall risk management practices to ensure that compensation programs do not encourage manipulation of financial results.

In addition, the policyRecoupment Policy provides that our CEO and CFO must reimburse the Companyus for any compensation or profits from the sale of securities under Section 304 of the Sarbanes-Oxley Act of 2002. The policyRecoupment Policy has been incorporated into our equity award documents.

Employment, Severance and Change in Control Arrangements

Employment Agreements. We do not generally enter into employment agreements with executive officers or other employees except in countries outside the U.S.United States where such agreements are customary or as necessary for recruitment.

The CompanyWe entered into an employment agreement with Mr. Peribere, dated September 1, 2012, in connection with his recruitment. The CompanyWe received guidance from FW Cook & Co. in the negotiation of the employment agreement. The employment agreement includes provisions regarding Mr. Peribere’s position and duties, compensation, post-employment covenants and other matters, including provisions regarding certainnew-hire equity awards, severance in case of termination of employment without cause during the initial four-year term ending August 31, 2016, and special retirement provisions for certain long-term incentive awards in case of retirement after completion of the initial term. The Compensation Committee believes that the terms of the employment agreement are reasonable and were necessary to cause him to leave his prior employer and accept a significant leadership role with our Company.Sealed Air. On January 15, 2016, Mr. Peribere entered into a letter agreement amending the terms of the employment agreement to extend the term of Mr. Peribere’s employment until December 31, 2017. The amendment letter includes certain adjustments to his compensation opportunities beginning in 2016 and includes certain additional equity awards intended to further encourage focus on improving stockholder value through the extended term.

On May 14, 2015,term, as discussed above. Given our performance over the term of Mr. Peribere’s service with us, the Compensation Committee approvedfelt that the extension of Mr. Peribere’s employment term to December 31, 2017 was an important goal for our stockholders and that the compensation adjustments were reasonable in light of this goal.

We entered into an offer letter between Dr. Kadri andagreement with Mr. Doheny, dated September 5, 2017, in connection with his recruitment. We received guidance from FW Cook in the Company regarding her relocation from the Netherlands to the Company’s headquarters in Charlotte, North Carolina (the “Relocation Letter”). Upon Dr. Kadri’s relocation, the prior employment agreement between Dr. Kadri and Diversey Europe Operations BV (a subsidiarynegotiation of the Company) dated February 25, 2013 was terminated.offer letter agreement. The Relocation Letter established Dr. Kadri’s salaryoffer letter agreement includes provisions regarding Mr. Doheny’s position and duties, compensation, post-employment covenants and other matters, including provisions regarding certainnew-hire equity awards described above and certain severance benefits described under “—Payments Upon Termination or Change in U.S. dollars at $477,000 and left her annual and long-term incentive targets as a percentage of salary unchanged at 65% and 160%, respectively. In order to addressControl” below. The Compensation Committee believes that the timingterms of the relocation, the loss of certain customary benefits provided under her terminating employmentoffer letter agreement are reasonable and certain differences in anticipated taxes relatedwere necessary to outstanding PSU awards, the Relocation Letter provides Dr. Kadricause him to accept a significant leadership role with (i) one academic year of school tuition for her child, (ii) certain one-time payments, and (iii) certain future potential tax equalization payments related to her outstanding PSUs. The Relocation Letter also provides for an amendment to her outstanding PSUs to treat any termination of employment without “cause” before March 31, 2018 the same as “retirement” (i.e., resulting in pro rata vesting subject to actual performance results). All other Company benefits under the Relocation Letter, including relocation benefits, generally follow standard Company programs.Sealed Air.

Executive Severance Plan. In early 2014, the Compensation Committee established the Executive Severance Plan. This plan provides for reasonable severance benefits in the case of an executive’s involuntary termination of employment, either by the Companyus without “cause” or by the executive for “good reason.” The Compensation Committee believes that the Executive Severance Plan serves the interests of stockholders by encouraging the retention of a stable management team.

Under the Executive Severance Plan, in the case of an involuntary termination of employment without cause or with good reason, the executive is eligible for severance benefits in the form of continuation of base salary and health and welfare benefits for a period of months (ranging from 3 to 12 months) based on the employee’s years of service with us. In February 2018, the Company.Compensation Committee approved an amendment to the Executive Severance Plan to (a) fix the severance period at 12 months regardless of years of service and (b) determine the cash severance on the sum of the covered executive’s base salary and target annual bonus.

If the qualifying termination occurs upon or within two years after a change in control of the Company,Sealed Air, the executive is instead entitled to receive (1) a lump sum payment equal to two years of base salary (or after the February 2018 amendment, the sum of base salary and target annual bonus), (2) continued health and welfare benefits for up to 18 months, and (3) accelerated vesting of all outstanding equity compensation awards.

Severance benefits are conditioned upon the executive giving the Companyus a general release of claims at the time of separation. Benefits are also conditioned upon the executive’s compliance with certain

restrictive covenants regardingnon-disparagement, confidentiality andnon-competition (in addition to any other restrictive covenants to which an employee may be subject). No taxgross-ups are provided to any participant under the plan in case of any excise taxes under Sections 280G and 4999 of the Internal Revenue Code as a result of payments under the plan in connection with a change in control.

If an executive covered by the plan is also entitled to severance under an existing agreement with the Company,us, the terms of the individual severance agreement will control instead of the plan.

Confidentiality and Restrictive Covenants Agreement. Exempt employees who are eligible to receive equity awards are required to sign a Confidentiality and Restrictive Covenants Agreement which addresses confidentiality of our proprietary Company information and disclosure and assignment of inventions as well as an eighteen montheighteen-month post-employment restrictive covenants obligation as a condition of receiving an equity award. In recent years, most other exempt new employees in the U.S.United States have been required to enter into an appropriate Restrictive Covenant and Confidentiality Agreement with the Company.us. These agreements address the confidentiality of our proprietary Company information and disclosure and assignment of inventions to the Companyus and include at least an eighteen-month post-employment restrictive covenant obligation by the employee, and the employee is provided the greater of severance as provided in any applicable severance program in effect at the time of the employee’s termination or severance pay equal in amount to(1) one-twelfth of the annual salary rate at which he or she was paid immediately preceding such termination, if such termination occurs within the first year of employment or(2) one-sixth of the annual salary rate at which he or she was paid immediately preceding such termination, if such termination occurs thereafter.

Timing of Equity Grants

PSU awards made to the Company’sour executive officers under the Company’sour equity compensation plans are made during the first 90 days of each year, either at the regularly-scheduled meeting of the Compensation Committee held in February of each year or at a special meeting held later but during the first 90 days of the year. In addition, SLO awards are made effective on a date set by the Compensation Committee in advance but no later than March 15 to those executive officers who have elected to receive a portion of their annual incentive award as an SLO award. The date is selected based on when the Compensation Committee expects that all annual incentive awards will be determined and to allow our staff sufficient time to assist executive officers to make required SEC filings for the SLO awards on a timely basis.

To the extent that other awards of restricted stock or restricted stock units may be made to executive officers, they are generally made at one of the regularly-scheduled meetings of the Compensation Committee. Awards are generally effective on the date of the meeting at which they were approved. However, when an award is to be made to an executive officer who is traveling or otherwise not available to make the required filing regarding such award with the SEC on a timely basis, then at the meeting the award is given an effective date after the date of the meeting so that the filing can be made on a timely basis. Dates for Compensation Committee meetings are usually set during the prior year, and the timing of meetings and awards is unrelated to the release of materialnon-public information.

Section 162(m) Considerations

General. Under Section 162(m) of the Internal Revenue Code a public company is limited to aSection 162(m) limits the deductibility of compensation in excess of $1 million deduction for compensation paid to its CEO or any of its three other most highly compensatedone named executive officers (other thanofficer in any calendar year. Under the CFO) who are employed at year-end. This limitation does not apply totax rules in effect before 2018, compensation that qualifiesqualified as “performance-based” under Section 162(m) was deductible without regard to this $1 million limit. In 2017 and prior years, the Compensation Committee designed awards under the Annual Incentive Plan and our Performance-Based Compensation Program, as “performance-based compensation.” Somewell as PSUs under equity incentive plans, that were intended to qualify for this performance-based compensation received byexception. However, the Tax Cuts and Jobs Act, which was signed into law December 22, 2017, eliminated this performance-based compensation exception effective January 1, 2018, subject to a special rule that “grandfathers” certain awards and arrangements that were in effect on or before November 2, 2017. As a

result, compensation that the Compensation Committee structured in 2017 and prior years with the intent of qualifying as performance-based compensation under Section 162(m) that is paid on or after January 1, 2018 may not be fully deductible, depending on the application of the special grandfather rules. Moreover, from and after January 1, 2018, compensation awarded in excess of $1 million to our named executive officers may exceedgenerally will not be deductible. While the applicable Section 162(m) deductionTax Cuts and Jobs Act will limit and not otherwise qualify as “performance-based compensation.” Whilethe deductibility of compensation paid to the named executive officers, the Compensation Committee retains discretionwill—consistent with its past practice—design compensation programs that are intended to makebe in the best long-term interests of Sealed Air and our stockholders, with deductibility of compensation decisions in lightbeing one of a variety of considerations compensation decisions for our named executive officers are made after consideration of the Section 162(m) implications.taken into account.

2015 Performance-Based Compensation Program Goals and Achievements. For 2015, the Compensation Committee approved a formula under the stockholder-approved Performance-Based Compensation Program of Sealed Air Corporation (the “Program”) intended to qualify the 2015 annual incentive awards, including SLO awards, as “performance-based compensation” under Section 162(m). The goals and the achievement levels required to allow the Compensation Committee to approve annual incentive awards (including SLO awards) up to the limit provided in the Program were as follows:

2015 adjusted fully diluted EPS measured at 2015 foreign exchange rates meets or exceeds $1.86 per share;

2015 adjusted operating expenses (including selling, general, administrative, research and development expenses and non-manufacturing depreciation and amortization expenses, but excluding goodwill amortization and impairment charges) measured at 2014 foreign exchange rates are less than or equal to $1,921 million;

2015 adjusted net operating profit after tax measured at 2014 foreign exchange rates meets or exceeds $614 million;

2015 adjusted net income measured at 2014 foreign exchange rates exceeds $399 million;

2015 adjusted operating profit divided by 2015 net sales measured at 2014 foreign exchange rates meets or exceeds 10.2%; or

2015 adjusted gross profit divided by 2015 net sales measured at 2014 foreign exchange rates meets or exceeds 34.9%.

In order to ensure that achievement of these measures represents the performance of the core business, each of the measures was calculated at 2014 actual foreign exchange rates (other than EPS, which is calculated at 2015 actual foreign exchange rates) and adjusted for specific items approved by the Compensation Committee, including restructuring charges, charges relating to impairment of goodwill or intangibles, all expenses relating to capital market transactions, all tax adjustments related to the completion of tax audits or the expiration of relevant statutes of limitation, all expenses relating to our involvement in the W. R. Grace & Co. bankruptcy proceedings, the effect of certain acquisitions and dispositions, the effect of any accounting changes implemented during 2015, expenses related to cash-settled stock appreciation rights granted as part of the Diversey acquisition and the effect of certain accounting changes, any remeasurement adjustments of monetary assets and liabilities held in highly inflationary countries and other transactional foreign exchange gains and losses reflected in earnings and other customary adjustments that are consistent with the Company’s calculation of publicly disclosed Adjusted EBITDA as communicated to the Organization and Compensation Committee.

During the first quarter of 2016, the Compensation Committee certified achievement of all six of the goals that had been established for calendar year 2015. This permitted us to pay 2015 annual incentive awards (including SLO awards) as discussed previously under “Annual Incentive Compensation” in amounts less than the stockholder-approved maximum awards permitted under the Program. The Compensation Committee believes that this approach to addressing Section 162(m) serves our stockholders by preserving the tax deductibility of annual incentive awards that might otherwise be limited by Section 162(m).

Compensation Committee Report

The Organization and Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management. Based on its review and discussions with management, the members of the Committee recommended to ourthe Board of Directors that the Compensation Discussion and Analysis be included in the Company’s 2016Sealed Air’s 2018 Proxy Statement and incorporated by reference into the Company’sSealed Air’s Annual Report on Form10-K for the fiscal year ended December 31, 2015.2017.

Organization and Compensation Committee

Jacqueline B. Kosecoff, Chair

Michael Chu

Neil Lustig

Richard L. Wambold

Board Oversight of Compensation Risks

We believe that risks arising from our compensation policies and practices for our employees are not reasonably likely to have a material adverse effect on the Company.Sealed Air. In 20152017 as in prior years, at the request of the Compensation Committee and with the assistance of FW Cook, & Co., we evaluated our incentive compensation plans relative to our enterprise risks and determined that there were no significant changes to the compensation risks identified below. We determined, taking into account advice from FW Cook, & Co., that there were no significant risk areas from a compensation risk perspective.

With respect to our executive compensation programs, a number of risk mitigation features were in place in 2015,2017, including the following:

 

The primary metric for the Annual Incentive Plan focused on earnings (consolidated adjusted EBITDA, ratio of support expense to gross profit ratio and ratio of working capital to net trade sales), and the Compensation Committee had discretion to adjust bonus pool funding and individual award payouts.

 

The principal long-term incentive program for executives is PSU awards that vest based on achievement of measurable financial three-year goals balanced by relative stock return performance. No stock options were used.

 

The Compensation Committee has discretion in extraordinary circumstances to reduce long-term incentive (“PSU”) awards, or PSUs, below the amount otherwise earned.

 

Pay leverage is reasonable and generally does not exceed 200% of target.

 

The recoupment policy thatRecoupment Policy, which applies to executive officers and other key executives, discourages excessive risk taking and manipulation of financial results.

 

Our stock ownership guidelines require executives to hold at least a portion of vested equity awards during employment, thus discouraging excessive risk taking.

 

Different metrics are used for annual and long-term incentive plans for executives, thus not placing too much emphasis on a single metric.

20152017 Summary Compensation Table

The following table includes information concerning 2015as to 2017 compensation for our Chief Executive Officer,CEO, our Chief Financial OfficerCFO and our three other most highly compensated executive officers during 20152017 who served as such at the end of the year.

 

Name and

Principal Position

 Year  

Salary

($)

  

Bonus

($)

  

Stock

Awards1

($)

  

Non-Equity

Incentive

Plan

Compensation2
($)

  

All Other

Compensation3

($)

  

Total

($)

  Year   

Salary

($)

   

Bonus

($)

   

Stock Awards1

($)

   

Non-Equity

Incentive Plan

Compensation2

($)

   

All Other

Compensation3

($)

   

Total

($)

 

Jerome A. Peribere

  2015    1,180,188    0    6,918,394    0    31,800    8,130,382  

President and Chief Executive

Officer

  2014    1,150,000    0    10,775,959    0    37,200    11,963,159  
 2013    1,016,667    0    6,158,787    900,000    226,383    8,301,837  

Carol P. Lowe

  2015    613,500    0    1,195,493    418,662    106,772    2,334,427  

Senior Vice President and Chief

Financial Officer

  2014    585,844    0    2,147,601    562,394    43,296    3,339,134  
 2013    540,313    0    908,602    449,507    24,481    1,922,903  

Jerome A. Peribere4

 2017    1,250,000    0    7,559,026    2,055,625    24,300    10,888,951 

President and CEO

 2016    1,250,000    0    13,527,824    0    31,800    14,809,624 
 2015    1,180,188    0    6,918,394    0    31,800    8,130,382 

William G. Stiehl

 2017    336,548    0    304,464    192,523    24,300    857,835 

Acting CFO

             

Edward L. Doheny II4

 2017    335,417    0    2,030,800    502,180    13,500    2,881,896 

Chief Operating Officer and

CEO-Designate

             

Emile Z. Chammas

  2015    501,025    0    807,579    395,093    62,607    1,766,304   2017    563,581    0    941,709    589,098    24,300    2,118,688 

Senior Vice President,

  2014    477,480    0    1,542,639    530,732    286,498    2,837,349   2016    518,832    0    830,218    317,546    31,800    1,698,395 

Chief Supply Chain Officer

  2013    437,100    0    967,459    0    34,606    1,439,165   2015    501,025    0    807,579    395,093    62,607    1,766,304 

Karl R. Deily

  2015    502,863    0    914,505    351,371    63,425    1,832,164   2017    560,452    0    1,071,817    437,996    24,300    2,094,564 

Vice President, President

Food Care

  2014    470,500    0    1,642,171    456,287    44,233    2,613,292  
 2013    410,000    0    724,591    357,268    25,974    1,517,833  

Ilham Kadri4

  2015    433,695    0    713,078    346,062    378,795    1,871,360  

Vice President, President

Diversey Care

  2014    433,073    0    1,542,576    466,807    131,753    2,574,209  
 2013    466,567    0    734,203    355,597    198,458    1,754,825  

Senior Vice President,

President Food Care

 2016    521,350    0    834,244    287,029    43,078    1,685,701 
 2015    502,863    0    914,505    351,371    63,425    1,832,164 

Carol P. Lowe

 2017    536,832    0    1,101,716    0    24,300    1,662,848 

Former Senior Vice

President and CFO

(resigned 2017)

  

2016

2015

 

 

   

635,304

613,500

 

 

   

0

0

 

 

   

1,080,073

1,195,493

 

 

   

407,865

418,662

 

 

   

31,800

106,772

 

 

   

2,155,042

2,334,427

 

 

  

 

1 

The Stock Awards column shows the value of equity awards granted during the year indicated. The amounts do not correspond to the actual amounts that may be earned by the named executive officers. Equity awards granted during each year may include: (i)(a) awards of restricted stock, (RS)or RS, and restricted stock units, (“RSUs”)or RSUs, under the 2005 Contingent Stock Plan (predecessor to the 2014 Omnibus Incentive Plan), (ii)Plan; (b) SLO awards under the Annual Incentive Plan,Plan; and (iii)(c) PSU awards granted under the 2005 Contingent Stock Plan or the 2014 Omnibus Incentive Plan. RS and RSU awards are valued at the grant date fair value computed in accordance with FASB ASC Topic 718. SLO awards are valued at the fair value at the service inception date based on the percentage of the target bonus to be paid as an SLO award, increased by the 25% premium, using the closing price of our common stock on the first trading day of the calendar year, where the service inception date is the beginning of the calendar year. PSU awards are valued based on the grant date fair value on the date on which the PSU award was granted by the Compensation Committee. In valuing the SLO awards and PSU awards, we assumed the probable achievement of the target levels for the primary performance goals. Pursuant to SEC rules, the amounts shown exclude the impact of estimated forfeitures. For the portion of PSU awards earned based on relative TSR, the grant date fair value is based on a Monte Carlo simulation that determines the likely payout of the award (which was $25.19 per share for the PSUs granted on February 14, 2013; $34.05 per share for the PSUs granted on February 28, 2013; $42.97 per share for the PSUs granted on February 18, 2014; $13.73 per share for the 2014 Special PSUs granted on March 14, 2014; and $59.91 per share for the PSU granted on February 16, 2015)2015; $57.14 per share for the PSUs granted on February 17, 2016; and $46.07 per share for the PSU granted on March 21, 2017). For the new hire PSUs awarded to Mr. Doheny on September 18, 2017 in connection with his employment, the grant date fair value is based on a Monte Carlo simulation of $10.63 per share. For additional assumptions made in valuing these awards and other information, see Note 18, “Stockholders’ Equity,” of Notes to our consolidated financial statements included in our Annual Report on Form10-K for the fiscal year ended December 31, 2015.2017. For the PSU awards made in 2015,granted on March 21, 2017, the value of the awards as of the grant date, assuming that the highest level of performance conditions would be achieved (which is 200% of target for the 2015-20172017-2019 PSUs), is as follows:

 

Name  

Maximum
2015-2017 PSU 2017-2019
PSU Award

($)

 

Mr. Peribere

   10,117,25715,118,052

Mr. Stiehl

608,928

Mr. Doheny

-

Mr. Chammas

1,883,418

Mr. Deily

1,892,720 

Ms. Lowe

   2,101,298

Mr. Chammas

1,615,159

Mr. Deily

1,622,980

Dr. Kadri

1,426,1572,203,432 

2 2

The amounts in theNon-Equity Incentive Compensation column for 20152017 reflect the cash portion of annual bonuses earned by the named executive officers for 2015. Messrs. Peribere and2017. Mr. Deily and Ms. Lowe also received an SLO awards as all or partaward for a portion of theirhis annual bonusesbonus for 2015.2017. The valuesvalue of the SLO award portion of his annual bonusesbonus at the service inception date areis included in the Stock Awards column. For further discussion regarding annual bonus awards in 2015,2017, see “Compensation“—Compensation Discussion and Analysis—20152017 Compensation Decisions: Base Salary and Incentive Compensation—Annual Incentive Compensation” above.

Compensation.”

3 

The amounts shown in the All Other Compensation column for 20152017 are attributable to the following:

 

   Mr. Peribere  Ms. Lowe  Mr. Chammas  Mr. Deily  Dr. Kadri 

Company provided car/Allowance *

 $0   $29,660   $30,807   $31,625   $11,303  

Company contribution to Profit-Sharing

Plan

  21,200    21,200    21,200    21,200    15,900  
Company matching contributions to 401(k) Thrift Plan or Local DC Plan  10,600    10,600    10,600    10,600    4,174  

Relocation Benefits **

  0    45,312    0    0    100,448  

Children’s Education ***

  0    0    0    0    19,805  

Payments under Relocation Letter †

  0    0    0    0    169,786  

Tax Gross-up‡

      57,379  

Total

 $31,800   $106,772   $62,607   $63,425   $378,795  

 

  Mr. Peribere   Mr. Stiehl   Mr. Doheny   Mr. Chammas   Mr. Deily   Ms. Lowe 

Company contribution to Profit-Sharing Plan

  $13,500   $13,500   $13,500   $13,500   $13,500   $13,500 

Company matching contributions to 401(k)

   10,800    10,800    -    10,800    10,800    10,800 

Total

  $24,300   $24,300   $13,500   $24,300   $24,300   $24,300 

 

*Represents the fair market values of Company cars as determined with an independent third party, which cars were transferred to Ms. Lowe and Messrs. Deily and Chammas in 2015. Dr. Kadri’s amount represents car allowance payments before relocation to the U.S.

**Includes relocation benefits such as travel expenses, temporary living reimbursement, home purchasing related expenses and tax services.

***Includes tuition per Dr. Kadri’s employment agreement and relocation letter.

Comprised of two cash payments per Relocation Letter related to car benefits and tax equalization for differences between taxes in the U.S. and the Netherlands.

Includes tax gross-ups for non-cash relocation benefits and children’s education.

4 

For Dr. Kadri, all dollar amounts of compensation paid on or before JulyMr. Peribere retired as President and CEO effective December 31, 2015 as included in the 2015 Summary Compensation Table and elsewhere in this proxy statement (except for the value of shares of common stock and equity awards), represent data converted from euros. For 2015, 2014 and 2013, compensation was converted at the exchange rates of 0.9105, 1.2152 and 1.3749 dollars per euros, respectively.

2017. Mr. Doheny assumed those positions effective January 1, 2018.

Grants of Plan-Based Awards in 20152017

The following table sets forth additional information concerning stock awards granted during 20152017 under the 2014 Omnibus Incentive Plan and the cash and SLO portions of the annual bonus targets for 20152017 performance under the Company’sour Annual Incentive Plan.

 

        Estimated
Possible
Payouts Under
Non-Equity
Incentive Plan
Awards
2
  Estimated Future Payouts
Under Equity Incentive Plan
Awards
3
  

Grant
Date
Fair
Value of
Stock
Awards
4

($)

    Estimated
Possible
Payouts  Under
Non-Equity
Incentive Plan
Awards2
   Estimated Future Payouts
Under Equity Incentive Plan
Awards3
 

All Other
Stock
Awards,
number of
shares of
stock or
units

(#)

  

Grant
Date
Fair
Value of
Stock
Awards4

($)

 
Name 

Type of

Award1

 

Grant

Date

  

Target

($)

  

Threshold

(#)

 

Target

(#)

 

Maximum

(#)

    

Type of

Award1

  

Grant

Date

 

Target

($)

   

Threshold

(#)

   

Target

(#)

   

Maximum

(#)

  

Mr. Peribere

 15SLO  1/2/2015      43,555     1,859,766    Cash  1/3/2017 1,625,000         
 15PSU  2/16/2015     43,090    100,956    201,912    5,058,628    17PSU  3/21/2017    68,940    165,772    331,544   7,559,026 

Ms. Lowe

 Cash  1/2/2015    347,625       

Mr. Stiehl

  Cash  1/3/2017 152,192         
  17PSU  3/21/2017    2,777    6,667    13,354   304,464 

Mr. Doheny

  Cash  9/18/2017 396,980        -   
 15SLO  1/2/2015      3,393     144,844    17New Hire RSU  9/18/2017        30,000  1,286,700 
 15PSU  2/16/2015     8,950    20,968    41,936    1,050,649    17New Hire PSU  9/18/2017      70,000     744,100 

Mr. Chammas

 Cash  1/2/2015    328,055         Cash  1/3/2017 404,948         
 15PSU  2/16/2015     6,879    16,117    32,234    807,579    17PSU  3/21/2017    8,589    20,652    41,304   941,709 

Mr. Deily

 Cash  1/2/2015    247,236         Cash  1/3/2017 301,080         
 15SLO  1/2/2015      2,413     103,015    17SLO  1/3/2017      2,698     125,457 
 15PSU  2/16/2015     6,913    16,195    32,390    811,490    17PSU  3/21/2017    8,631    20,754    41,508   946,360 

Dr. Kadri

 Cash  1/2/2015    310,050       

Ms. Lowe

  Cash  1/3/2017 486,008         
 15PSU  2/16/2015      6,074    14,231    28,462    713,078    17PSU  3/21/2017     10,048    24,161    48,322    1,101,716 

 

1 

Type of award:

award

Cash = cash portion of 2017 annual bonus

17SLO = SLO award portion of 2017 annual bonus

17PSU = three-year PSU award for the performance period beginning January 1, 2017

17New Hire RSU = time-vesting restricted stock unit award granted in September 2017 as an inducement to sign an offer letter agreement, scheduled to vest on December 31, 2020

17New Hire PSU = performance-vesting restricted stock unit award granted in September 2017 as an inducement to sign an offer letter agreement, scheduled to vest on December 31, 2020 subject to stock price and TSR performance conditions.

 

2 Cash = cash portion of 2015 annual bonus

15SLO = SLO award portion of 2015 annual bonus

15PSU = three-year PSU award for the performance period beginning January 1, 2015

2

This column shows the target awards established in early 20152017 for the cash portion of 20152017 annual bonuses for each of the named executive officers under the Company’sour Annual Incentive Plan. While the overall funded bonussub-pool applicable to the named executive officers has a 25% of target threshold level and a 200% of target maximum funding limit, individual bonus awards can vary as long as the total of all bonus awards is within the overall fundedsub-pool. Actual payouts for 20152017 are shown in theNon-Equity Incentive Plan CompensationCompensation” column of the 2015in “—2017 Summary Compensation Table.

 

3 

These columns show target awards established in early 20152017 for the SLO portion of 20152017 annual bonuses for each of the named executive officers under the Company’sour Annual Incentive Plan, as well as the threshold, target and maximum awards for PSU awards granted in 20152017 for each of the named executive officers under the 2014 Omnibus Incentive Plan. In addition, these columns show the target PSU award granted to Mr. Doheny in September 2017 as an inducement to sign an offer letter agreement. The maximum number of shares that can be issued to any participant in any calendar year with respect to a PSU award is 1,000,000 shares.

 

 The threshold number of shares for 2015-20172017-2019 PSU awards is 25% of the target number of shares for the relative TSR portion plus 50% of the target number of shares for the EBITDA margin portion,and net sales CAGR portions, and the maximum number of shares for such awards is 200% of the target number of shares. Shares, to the extent earned, will be issued in 20182020 for the 2017-2019 PSU awards. See “Compensation“—Compensation Discussion and Analysis—20152017 Compensation Decisions: Base Salary and Incentive Compensation—Long-Term Incentive Compensation.”

 

4 

This column shows the fair value on the grant date or service inception date of the equity awards shown in the table computed in accordance with FASB ASC Topic 718. The manner in which grant date fair value was determined for awards granted in 20152017 is discussed above in Note 1 to the 2015under “—2017 Summary Compensation Table. The amounts shown exclude the impact of estimated forfeitures.

Description of Annual and Long-Term Incentive Awards in the 20152017 Summary Compensation Table and the Grants of Plan-Based Awards in 20152017 Table

Annual Incentive Plan: Cash Bonuses and SLO Awards. Each of the named executive officers has a target bonus that is established by the Compensation Committee during the first quarter of the year. Also, each of the named executive officers has the opportunity at a time determined by the Compensation Committee (generally prior to the start of the performance year) to designate a portion of his or her annual bonus to be received as an equitya SLO award under the 2014 Omnibus Incentive Plan, called a stock leverage opportunity (“SLO”) award.Plan. The portion to be denominated as SLO awards, in increments of 25% of the annual bonus, may be given a premium to be determined by the Compensation Committee each year. The stock price used to calculate the number of shares that can be earned is the closing price on the first trading day of the performance year, thereby reflecting stock price changes during the performance year in the value of the SLO award.

Once the amount of the annual bonus that has been earned has been determined for each named executive officer following the end of the year, the cash portion is paid out shortly thereafter, and the SLO award is provided in the form of an award of restricted stock units under the 2014 Omnibus Incentive Plan that vest on the second anniversary of the grant date. The award is granted on a date determined by the Compensation Committee, but no later than March 15 following the end of the performance year. For the “principal portion” of the award that would have otherwise been paid in cash, the award vests earlier upon any termination of employment, other than for cause. For the “premium portion” of the award equal to the additional 25%, the award vests earlier only in case of death, disability or retirement from the Company.retirement. Retirement for the purpose of SLO awards and the PSU awards described below means termination of employment after five or more years of employment and with years of employment plus age equal to 70 or more, except termination for cause. Except as described above, if the recipient ceases to be employed by the Companyus prior to vesting, then the award is forfeited, except for certain circumstances following a change in control. SLO awards in the form of restricted stock units have no voting rights until shares are issued to them but do receive a cash payment in the amount of the dividends (without interest) on the shares they have earned at about the same time that shares are issued to them following the period of restriction.

Performance Share Unit Awards. PSU awards, which were awarded under the 2014 Omnibus Incentive Plan, or, for 2014 and prior years, under the 2005 Contingent Stock Plan,generally provide for a minimum one-yearthree-year performance period with a targeted number of shares to be earned if performance during the period meets goals set by the Compensation Committee during the first 90 days of the period. If performance is below defined threshold levels, then no units will be earned, and if performance exceeds defined maximum levels, then a maximum number of units (above the target number) will be earned. PSU awards are not transferable by the participant until the end of the performance period and certification by the Compensation Committee with respect to each performance measure used for the award. If a participant terminates employment during the performance period due to death, disability or retirement, then the participant (or his or her estate) will receive a pro rata payout following the end of the performance period based on the portion of the performance period during which the participant was employed and based on the number of units that would have been earned by the participant if he or she had remained employed for the entire performance period prior to applying the pro rata factor. If the participant leaves employment during the performance period for any other reason, then the units are forfeited, except for certain circumstances following a change in control. Special retirement provisions apply to Mr. Peribere under his 2012 employment agreement and the additional agreement entered into in January 2016 to extend the term of his employment to December 31, 2017. At about the same time that shares are issued to participants following the performance period, participants also receive a cash payment in the amount of the dividends (without interest) that would have been paid during the performance period on the number of shares that they have earned. Holders of PSU awards have no voting rights as stockholders until shares of common stock are issued after the end of the performance period.

Restricted Stock and Restricted Stock Units. Awards of restricted stock and restricted stock units included in the 2015“—2017 Summary Compensation TableTable” were made under the 2014 Omnibus Incentive Plan or, for 2014 and prior years, the 2005 Contingent Stock Plan, which awards provide for a vesting period. Awards vest earlier in the event of the participant’s death or disability. If a participant terminates employment prior to vesting, then the award of restricted stock or restricted stock units is forfeited, except for certain

circumstances following a change in control. Within 90 days following the date of termination, the Compensation Committee can waive the forfeiture of all or a portion of an award. Special retirement provisions apply to Mr. Peribere under his 2012 employment agreement and the additional agreement entered into in January 2016 to extend the term of his employment to December 31, 2017. During the vesting period, holders of unvested shares of restricted stock (but not holders of unvested shares of restricted stock units) are entitled to receive dividends on the same basis as dividends are paid to other stockholders and are entitled to vote the unvested shares.

Outstanding Equity Awards at 20152017 FiscalYear-End

The following table shows, as of December 31, 2015,2017, outstanding and unvested stock awards under the 2005 Contingent Stock Plan and the 2014 Omnibus Incentive Plan for the named executive officers. All market or payout values in the table shown for stock awards are based on the closing price of common stock on December 31, 201529, 2017 of $44.60$49.30 per share. No awards were outstanding as of December 31, 2017 for Ms. Lowe as a result of her resignation during 2017.

 

    Stock Awards 
Name  Type of  Awards1  Stock Awards 
 Type of Awards1 

Number of

Shares or Units

of Common Stock
That Have Not

Vested2

(#)

  

Market Value of
Shares or Units of
Common Stock

That Have Not

Vested3

($)

  

Equity Incentive

Plan Awards:

Number of

Unearned Shares,
Units or Other

Rights That Have

Not Vested4

(#)

  

Equity Incentive

Plan Award: Market

or Payout Value of
Unearned Shares,
Units or Other

Rights That Have

Not Vested3

($)

    

Number of

Shares or Units

of Common
Stock
That Have Not

Vested2

(#)

   

Market Value of
Shares or Units of
Common Stock

That Have Not

Vested3

($)

   

Equity Incentive

Plan Awards:

Number of

Unearned Shares,
Units or Other

Rights That Have

Not Vested4

(#)

   

Equity Incentive

Plan Award: Market

or Payout Value of
Unearned Shares,
Units or Other

Rights That Have

Not Vested3

($)

 

Mr. Peribere

 RS  25,000            1,115,000               16PSU       49,998    2,464,901 
 13SLO  62,711            2,796,911               17PSU       165,772    8,172,560 

Mr. Stiehl

  16PSU       1,975    97,368 
 14SLO  101,453            4,524,804               17PSU       6,677    329,176 
 15SLO  57,451            2,562,315             
 12PSU#2  75,000            3,345,000            25,000            1,115,000          
 12PSU#3    250,000            11,150,000          
 14PSU    281,778            12,567,299          
 14SPSU    286,694            12,786,552          
 15PSU    100,956            4,502,638          

Ms. Lowe

 14SLO  6,949            309,925             
 15SLO  4,086            182,236             
 14PSU    62,482            2,786,697          
 14SPSU    63,572            2,835,311          

Mr. Doheny

  17New Hire PSU       70,000    3,451,000 
 15PSU    20,968            935,173            17New Hire RSU   30,000    1,479,000     

Mr. Chammas

 13SLO  30,430            1,357,178               16PSU       5,492    270,756 
 14PSU    48,026            2,141,960          
 14SPSU    48,864            2,179,334          
 15PSU    16,117            718,818            17PSU       20,652    1,018,144 

Mr. Deily

 13SLO  8,300            370,180               15SLO   3,429    169,050     
 14SLO  5,637            251,410               16PSU       5,518    272,037 
 15SLO  3,429            152,933               17PSU         20,754    1,023,172 
 14PSU    48,026            2,141,960          
 14SPSU    48,864            2,179,334          
 15PSU    16,195            722,279          

Dr. Kadri

 14PSU    48,024            2,141,870          
 14SPSU    48,862            2,179,245          
 15SPSU      14,231            634,703          

 

1 

Type of award:

 

 15SLORS = restricted stock award

13SLO = SLO award portion of 2013 annual bonus

14SLO = SLO award portion of 2014 annual bonus

15SLO = SLO award portion of 2015 annual bonus

 

 16PSU14PSU = three-year PSU award for the performance period beginning January 1, 20142016

 

 15PSU17PSU = three-year PSU award for the performance period beginning January 1, 20152017

 

 12PSU#217New Hire PSU = The first new hire PSUperformance-vesting restricted stock unit award granted in September 2017 as an inducement to Mr. Periberesign an offer letter agreement, scheduled to vest on December 31, 2020 subject to stock price and TSR performance conditions.

 

 12PSU#317New Hire RSU = The second new hire PSUtime-vesting restricted stock unit award granted in September 2017 as an inducement to Mr. Peribere

14SPSU = The Special PSU award grantedsign an offer letter agreement, scheduled to the named executive officers and a broader group of other employeesvest on December 31, 2020.

 

2

The amounts shown in this column for 13SLO awards are the actual numbers of shares of restricted stock or restricted stock units earned by each named executive officer under the stock leverage opportunity feature of the Annual Incentive Plan for 2013. The 13SLO awards for all named executive officers were made in the form of awards of restricted stock and restricted stock units that vest and pay on March 14, 2016, or earlier in case of death, disability or retirement. As of December 31, 2015, Mr. Deily is retirement eligible, and Messrs. Peribere and Chammas are not retirement eligible.

The amounts shown in this column for 14SLO awards are the actual numbers of shares of restricted stock or restricted stock units earned by each named executive officer under the stock leverage opportunity feature of the Annual Incentive Plan for 2014. The 14SLO awards for all named executive officers were made in the form of awards of restricted stock units that vest and pay on March 13, 2017, or earlier (i) upon termination of employment, other than for cause, with respect to the “principal portion” or (ii) in case of death, disability or retirement with respect to the “premium portion.” As of December 31, 2015, Mr. Deily is retirement eligible, and Mr. Peribere and Ms. Lowe are not retirement eligible.

 The amounts shown in this column for 15SLO awards are the actual numbers of shares of restricted stock or restricted stock units earned by each named executive officer under the stock leverage opportunity feature of the Annual Incentive Plan for 2015. The 15SLO awards for all named executive officers were made in the form of awards of restricted stock units that vest and pay on March 14, 2018, or earlier (i)(a) upon termination of employment, other than for cause, with respect to the “principal portion” or (ii)(b) in case of death, disability or retirement with respect to the “premium portion.” As of December 31, 2015,2017, Mr. Deily is retirement eligible, and Mr. Peribere and Ms. Lowe are not retirement eligible.

The amount shown for the 12PSU#2 award for Mr. Peribere is the actual number of shares earned for the 12 month performance periods ended on August 31 in each of 2013, 2014 and 2015 based on our relative TSR performance. These shares will vest on August 31, 2016, or earlier in case of Mr. Peribere’s death or disability.

RS and RSU awards vest as follows:

NameType of
Award
Number of
Shares or Units
Date of
Vesting

Mr. Peribere

RS25,00009/01/2016
13SLO38,96103/14/2016
14SLO101,45303/13/2017
15SLO57,45103/14/2018

Ms. Lowe

14SLO6,94903/13/2017
15SLO4,08603/14/2018

Mr. Chammas

13SLO30,43003/14/2016

Mr. Deily

13SLO8,30003/14/2016
14SLO5,63703/13/2017
15SLO3,42903/14/2018

3 

The market or payout values shown in this column are based on the closing price of common stock on December 31, 201529, 2017 of $44.60$49.30 per share as reported on the NYSE.

 

4 

14PSU16PSU awards are performance share unit awards for the performance period January 1, 20142016 through December 31, 20162018 that vest on the latter date. The amounts shown in this column for 14PSU16PSU awards represent 200%32.5% of the target number of shares (i.e., threshold) based on performance through December 31, 2015.

15PSU2017. 17PSU awards are performance share unit awards for the performance period January 1, 20152017 through December 31, 20172019 that vest on the latter date. The amounts shown in this column for 15PSU17PSU awards represent 100% of the target number of shares based on performance through December 31, 2015.

2017. The amount shown forPSUs are not settled until after the 12PSU#2 award for Mr. Peribere is based on threshold performance for the remaining performance-based portionend of the award outstanding as of December 31, 2015. The remaining performance-based portion of the award becomes earned based on our relative TSR for the 12-month performance periods ending on August 31, 2016. The shares for a tranche are earned if our relative TSR for the 12-month performance period is at or above median of the peer group. The 12PSU#3 award for Mr. Peribere vests on August 31, 2016 based on a combination of stock price and relative TSR performance for the period September 1, 2012 to August 31, 2016. The amount shown for the 12PSU#3 award represents the maximum award amount assuming maximum performance based on performance through December 31, 2015.

14SPSU awards are performance share unit awards for the performance period January 1, 2014 through December 31, 2016 (with an additional goal for 2017). The PSUs will vestwhen performance results are certified by the Compensation Committee, usually at the regularly scheduled meeting in equal installments on December 31, 2016 and December 31, 2017. The amounts shown in this column for 14SPSU awards represent 200% ofFebruary, which generally approximates three years after the target number of shares based on performance through December 31, 2015.original grant date.

Stock Vested in 20152017

The following table shows the number of shares acquired byvesting for stock awards for the named executive officers on vesting of stock awards during 2015,2017, as well as the value of the shares realized upon vesting. All awards were awarded under the 2005 Contingent Stock Plan.

 

  Stock Awards      
Name  Stock Award  

Value Realized

On Vesting

($)

  

Type of

Award

   

Number of Shares

Acquired on Vesting

(#)

   

Value Realized

on Vesting

($)

  Type of Award  

Number of Shares

Acquired on Vesting

(#)

  

Mr. Peribere

   RS     50,000     2,530,500    14SLO  101,453  5,001,633
   13PSU     360,198     16,064,831    15SLO  57,451  2,832,334

Ms. Lowe

   RS     42,000     2,174,340  
  16SLO  40,399  1,991,671
  14SPSU  143,347  7,067,007
  15PSU  74,002  3,648,299
  16 CEO RSU  75,000  3,697,500

Mr. Stiehl

  14SPSU  5,993  295,455
   13PSU     85,932     3,832,567    15PSU  4,248  209,426

Mr. Chammas

   12SLO     21,505     982,779    14SPSU  24,432  1,204,498
   13PSU     60,294     2,689,112    15PSU  11,815  582,480

Mr. Deily

   12SLO     3,159     144,366    14SLO  5,637  277,904
   13PSU     60,812     2,712,215    14SPSU  24,432  1,204,498

Dr. Kadri

   13PSU     69,438     3,096,935  
  15PSU  11,872  585,290

Ms. Lowe

  14SLO  6,949  342,586
  15SLO  3,269  161,162

The value realized represents the gross number of the SLO portion of the 2012 annual bonus (“12SLO”) is based onshares or units that vested, multiplied by the closing pricemarket value of our common stock on the applicable vesting date, (or if the vesting date is not a trading date, the immediately preceding trading date). The 12SLO awards vested on March 13, 2015. In all cases the Companyand includes any amounts that were withheld a portionfor applicable taxes. Certain of the vested shares to cover withholding taxes due upon payment of shares under the award.

The 2013 three-year PSU (“13PSU”) awards represent the actual number of shares earned for the performance period from January 1, 2013 through December 31, 2015 that vested on December 31, 2015. The values for such awards are based onduring 2017 may be paid during 2018, when performance results were certified or as the closing priceresult of common stock on December 31, 2015 of $44.60 per share and represent 200% of target.certain payment delays required by U.S. tax laws.

Pension Benefits in 20152017

Mr. Deily participates in the Sealed Air Corporation Restoration Plan for Cryovac Employees, a component plan of the Sealed Air Combined Pension Plan and atax-qualified defined benefit plan that covers the employees of our Cryovac operations who participated in a defined benefit plan maintained by a prior employer immediately prior to March 31, 1998.

 

Name Plan Name 

Number of

Years Credited

Service

(#)

  

Present Value of

Accumulated

Benefit

($)

  

Payment During

Last Fiscal Year

($)

  Plan Name 

Number of

Years Credited

Service

(#)

 

Present Value of

Accumulated

Benefit

($)

 

Payment During 

Last Fiscal Year 

($) 

Mr. Deily

 Restoration Plan for Cryovac Employees  33.1    0    0   Restoration Plan for Cryovac
Employees
  34.0833  0 0

The Restoration Plan for Cryovac Employees provides a retirement benefit that is based on the amount by which the benefit assuming the participant had remained in the prior employer’s defined benefit plan until retirement exceeds assumed benefits under our Profit-Sharing Plan plus the accrued benefit as of March 31, 1998 under the prior employer’s plan. This calculation resulted in an accumulated benefit for Mr. Deily of $0 at December 31, 2015.2017.

The number of years of credited service at December 31, 20152017 includes service with the prior employer of 15.3 years for Mr. Deily. The present value of the accumulated benefit at December 31, 20152017 is calculated assuming a retirement age of 65. The Restoration Plan for Cryovac Employees provides for normal retirement at age 65 and early retirement at age 55. Benefits are generally paid as a single life annuity, but benefits canmay be paid in other forms, including joint and survivor annuities.

The normal retirement benefit is a monthly amount equal to the excess of (i)(a) the sum of 1% of the average of the annual compensation for the highest five consecutive12-month periods during the last 15 years of service (the final average compensation) plus 0.4 of 1% of the final average compensation in excess of the average Social Security wage bases during the 35 years ending with the year in which the participant attains

Social Security retirement age, multiplied by the years of credited service, over (ii)(b) the accrued monthly benefit as of March 31, 1998 under the defined benefit plan maintained by the prior employer plus the participant’s assumed accrued benefit under our Profit-Sharing Plan. The early retirement benefit is calculated in a similar manner after applying actuarial equivalent factors to the calculation described in (i)(a) of the preceding sentence and based on the early retirement factors in effect on March 31, 1998 under the defined benefit plan maintained by the prior employer. The participant’s assumed accrued benefit under our Profit-Sharing Plan is determined by crediting 10% annual interest prior to 2003 and 8.5% annual interest beginning in 2003 to our contributions to the Profit-Sharing Plan each year from the date of contribution to the date of determination, summing all of these adjusted contributions, and converting the result to an annual benefit payable for the life of the participant. The Restoration Plan for Cryovac Employees also provides apre-retirement death benefit in the amount of 75% of the normal retirement benefit under a 75% joint and survivor annuity that would commence on the participant’s 65th birthday.

The Restoration Plan for Cryovac Employees was amended to freeze benefit accruals as of December 31, 2016, and as a result, no additional benefits will be accrued under the Restoration Plan for Cryovac Employees after 2016.

Nonqualified Deferred Compensation in 20152017

Mr.Messrs. Peribere, Stiehl and Deily participatesparticipate in the Sealed Air Corporation Deferred Compensation Plan for Key Employees, an unfunded nonqualified deferred compensation plan designed to provide selected employees of the Company the opportunity to defer the payment of a portion of base salary and certain cash annual incentive compensation.

 

Name  

Executive
contributions in
2015

($)1

   

Company
contributions in
2015

($)

   

Aggregate
earnings in 2015

($)2

   

Aggregate
withdrawals/

distributions

($)

   

Aggregate balance
at December 31,
2015

($)

   

Executive

contributions in

2017

($)1

   

Company

contributions in

2017

($)

   

Aggregate

earnings in 2017

($)2

   

Aggregate

withdrawals/

distributions

($)

   

Aggregate balance

at December 31,

2017

($)

 

Mr. Peribere

   625,000    0    11,686    0    636,686 

Mr. Stiehl

   43,751    0    5,539    0    171,858 

Mr. Deily

   85,527     0     4,382     0     183,524     99,845    0    11,274    0    382,607 

 

1 

Of this amount, $50,390 isThese amounts were included in the 2015“—2017 Summary Compensation TableTable” in the “Salary” column for 2015,2017 for Mr. Peribere and $35,137 is includedMr. Stiehl, and $56,046 in the “Non-Equity“Salary” column and $43,799 in the“Non-Equity Incentive Plan Compensation” column for 2015.

2017 for Mr. Deily.

 

2 

This amount is not included in the 2015“—2017 Summary Compensation TableTable” because earnings were not preferential or above market.

Each year the Deferred Compensation Plan for Key Employees permits participating employees to elect to defer (1)(a) up to 50% of base salary for the year and (2)(b) up to 100% of the cash annual incentive award for the year payable under the Sealed Air Corporationour Annual Incentive Plan. TheOur Deferred Compensation Plan for Key Employees permits discretionary contributions by the Company.us. Participant account balances are credited with interest as determined by the Compensation Committee, which has determined that accounts will be adjusted monthly based on the Moody’s Seasoned Aaa Corporate Bond Yield for that month.

A participant’s account will be distributed based on the participant’s payment election made at the time of deferral. A participant can elect to have deferrals credited to a “retirement account” to be paid in a lump sum or installments (over 5, 10 or 15 years) commencing the seventh month after termination of employment or at a later age or date selected by the participant. Alternatively, a participant can have up to two “in-service“in-service accounts” that will be payable in a lump sum or 5 annual installments on a date specified by the participant (or earlier upon a termination of employment).

Payments Upon Termination or Change in Control

We do not have any severance programs or agreements covering any of our named executive officers, except for the arrangements described below and benefits generally available to salaried employees, also noted below. We also have no programs or agreements providing any payments or benefits to our named executive officers in connection with a change in control, except as part of our equity compensation awards and Executive Severance Plan as discussed in more detail below. The following describes arrangements that address cash payments or other benefits to certain of our named executive officers following termination of employment:

 

  

Peribere Employment Agreement: When he was hired, Mr. Peribere signed an employment agreement.agreement, and portions of that agreement were modified by an agreement entered into in January 2016 in connection with the extension of the term of his employment. See the discussion above in “Compensation“—Compensation Discussion and Analysis—Employment, Severance and Change in Control Arrangements” for more details. Mr. Peribere is entitled to certainAlthough the agreement included provisions regarding severance benefits upon ain case of an involuntary termination of employment by the Company without “cause” (as defined in

the agreement) at any timecause during the “Initial Term”employment term, as a result of the agreement, which is the four-year period ending August 31, 2016. Upon a termination of employment without causeMr. Peribere’s retirement on December 31, 2015, Mr. Peribere would have been entitled to total cash2017, no severance payments equal to $4,640,562 (comprised of the following individual components: (1) $1,962,499 for his bonus for 2015, based on minimum bonus to be paid when bonuses are normally paid, (2) $1,190,250 for one year of continued salary payments, and (3) $1,487,813 for his target annual bonus, paid in 12 monthly installments following termination). The severance payments are conditioned on Mr. Peribere providing the Company with a release of claims and complying with certain post-employment covenants including an 18-month non-compete.was payable. (Note that the treatment of Mr. Peribere’s equity awards that were granted under the employment agreement upon a termination of employment or a change in control is discussed below.)

Doheny Offer Letter Agreement.Mr. Doheny’s offer letter agreement includes severance protection if Mr. Doheny’s employment is terminated by us without “cause” or by Mr. Doheny for “good reason” (as those terms are defined in the offer letter agreement). If the termination of employment occurs other than within 24 months after a change in control, the cash severance equals two times his annual salary and target annual bonus. If the termination of employment occurs on or within 24 months after a change in control, the cash severance equals three times the sum of his salary and target annual bonus. Payments for a pro rata bonus and premiums for certain health benefits may also apply. The amendment tooffer letter agreement does not provide for any taxgross-ups for excise taxes for payments in connection with a change in control, and instead provides for a “best net” cutback consistent with our standard practice for other senior executives. Payment of severance is conditioned on Mr. Peribere’s employment agreement dated January 15, 2016, did not change these provisions asDoheny providing us with a release of claims and complying with applicable covenants. Upon a termination without cause or with good reason on December 31, 2017, Mr. Doheny would have received the amount of severance benefits shown in 2015.

the table below.

 

  

Executive Severance Plan: The Company sponsors the Sealed Air Corporation Executive Severance Plan (the “Executive Severance Plan”). TheOur Executive Severance Plan provides severance benefits upon a qualifying termination of employment to selected employees of the Company as designated by the Compensation Committee. Each of the named executive officers (other than Mr. Doheny) has been designated a participant in the Executive Severance Plan. For Mr. Peribere, however, the severance provisions in his Employment Agreement described above will apply in lieu ofSeverance benefits are triggered under the Executive Severance Plan upon a termination of employment (other than by reason of death or disability) by us without “cause” or by the employee for “good reason” (as those terms are defined in the Executive Severance Plan). Severance benefits are in the form of continuation of base salary and health and welfare benefits for a period of months (ranging from 3 to 12 months) based on the extentemployee’s years of service in accordance with the Employment Agreement provides greater benefits.

following schedule:

Severance benefits are triggered under the Executive Severance Plan upon a termination of employment (other than by reason of death or disability) by the Company without “Cause” or by the employee for “Good Reason” (as those terms are defined in the Executive Severance Plan). Severance benefits are in the form of continuation of base salary and health and welfare benefits for a period of months (ranging from 3 to 12 months) based on the employee’s years of service with the Company in accordance with the following schedule:

 

Participant’s Years of Service

  

Severance Period

Less than 1

  None

Between 1 and 2

  3 months of Compensation

Between 2 and 3

  6 months of Compensation

Between 3 and 5

  9 months of Compensation

More than 5

  12 months of Compensation

If a termination without Causecause or for Good Reasongood reason occurs upon or within two years after a change in control, of the Company, the employee is instead entitled to receive (1)(a) a lump sum payment equal to two years of base salary, (2)(b) continued health and welfare benefits for up to 18 months, and (3)(c) accelerated vesting of all outstanding equity compensation awards. For this purpose, and consistent with the current provisions of the Company’sour stockholder-approved 2014 Omnibus Incentive Plan, (and its predecessor plan), accelerated vesting of any performance-based equity awards is based on assumed achievement of performance goals at the greater of target performance or actual performance measured through the last quarter preceding the change in control. Additional details on treatment of equity awards upon termination of employment or following a change in control can be found below.

The Executive Severance Plan was amended in February 2018 to make two changes: (a) for an involuntary termination not in connection with a change in control, the severance period will be fixed as 12 months; and (b) for cash severance, the severance will be based on the sum of the covered executive’s salary and target annual bonus. The table below shows the value of severance benefits under the Executive Severance Plan as in effect on December 31, 2017, before this amendment became effective.

Severance benefits are conditioned upon an employee giving the Companyus a general release of claims at the time of separation. Benefits are also conditioned upon an employee’s compliance with certain restrictive covenants regardingnon-disparagement, confidentiality, andnon-competition (in addition to any other restrictive covenants to which an employee may be subject). No taxgross-ups are provided to any participant under the Plan in case of any excise taxes under

Sections 280G and 4999 of the Internal Revenue Code as a result of payments under the Executive Severance Plan in connection with a change in control. If an employee covered by the Plan is also entitled to severance under an existing agreement with the Company,us, the terms of the individual severance agreement will control instead of the Plan.

The following table shows the total amount that would have been payable to the named executive officers under the Executive Severance Plan, or, for Mr. Doheny, under his offer letter agreement, in case of a qualifying termination on December 31, 2015:2017. Mr. Peribere is excluded because he retired on December 31, 2017 and Ms. Lowe is excluded because she resigned effective October 31, 2017, and neither executive was eligible for severance as a result of those events:

 

Executive  Termination without Cause or
With Good Reason—No
Change in Control*
   Termination without Cause or With Good
Reason—Within 2 Years After a Change in
Control**
 

Mr. Peribere

   
 
See above under “Peribere
Employment Agreement”
  
  
  $2,401,733  

Ms. Lowe

  $478,616    $1,266,233  

Mr. Chammas

  $518,243    $1,029,715  

Mr. Deily

  $520,660    $1,034,565  

Dr. Kadri

  $248,578    $984,233  
Name  

Termination without Cause or

With Good Reason—No

Change in Control* ($)

   

Termination without Cause or With Good

Reason—Within 2 Years After a Change in

Control** ($)

 

Mr. Stiehl

   173,924    690,045 

Mr. Doheny

   5,070,574    7,600,574 

Mr. Chammas

   575,106    1,144,449 

Mr. Deily

   571,980    1,138,196 

 

*This column includes salarycash severance and estimated value of continued benefits for the applicable severance period.

 

**This column includes lump sum paymentpayments equal to two years of salary plus the estimated value of continued benefits for 18 months.months, except that for Mr. Doheny it includes (a) three times the sum of his annual salary and target annual bonus and (b) two times the cost of certain benefits. The amount does not includecolumn excludes the value of any accelerated vesting of equity compensation awards. See table below for that information.awards (see following table).

Our incentive award programs include provisions addressing the extent to which the award becomes vested and payable or is forfeited upon termination of employment. The following briefly describes the key features of these provisions. See also “Description“—Description of Annual and Long-Term Incentive Awards in the 20152017 Summary Compensation Table and the Grants of Plan-Based Awards in 20152017 Table” above for more details.

 

  

Annual Bonus AwardsAwards::    Under theour Annual Incentive Plan, employees must remain employed through the applicable payment date in order to be entitled to receive an annual bonus for a year; otherwise, payment of the annual bonus is at the discretion of the Company.our discretion. Bonuses are paid during the month of March for the prior year, so termination of the named executive officers as of the end of 20152017 would have meant that they were not entitled to receive a cash bonus or SLO award based on 20152017 performance. For 2015, the Company’s usual practice for employees was to pay an annual bonus in the event ofa termination of employment as ofbefore the end of the year due to death, disability or retirement and not to pay an annual bonus in the case of involuntary termination due to gross misconduct. With respect to a voluntary resignation or other involuntary termination,payment date, the payment of an annual bonus is discretionary depending on the circumstances.

Under his offer letter agreement, however, Mr. Doheny will receive a pro rata annual bonus in case of a termination without cause or for good reason. The annual bonus paid (as cash and/or SLO award) under the Annual Incentive Plan to each named executive officer for 2017 was as follows: Mr. Peribere, $2,055,625, Mr. Stiehl, $192,523; Mr. Doheny, $502,180; Mr. Chammas, $589,098; and Mr. Deily, $437,996. These amounts may not represent the amounts that would have been awarded if the named executive officers had terminated employment at the end of 2017 for any of the reasons noted above. As noted earlier, Ms. Lowe did not receive a 2017 Annual Incentive Plan award because of her resignation during 2017.

The annual bonus paid (as cash and/or SLO award) under the Annual Incentive Plan to each named executive officer for 2015 was as follows: Mr. Peribere—$1,962,499; Ms. Lowe—$558,216; Mr. Chammas – $395,093; Mr. Deily—$468,495; Dr. Kadri—$346,062. These amounts may not represent the amounts that would have been awarded if the named executive officers had terminated employment at the end of 2015 for any of the reasons noted above.

 

  

Restricted Stock and Restricted Stock UnitsUnits::    These awards will vest in full in case of death or disability before the scheduled vesting date and will generally forfeit for any other termination of employment before the scheduled vesting date with foursix exceptions. First, SLO awards that have been awarded as restricted stock sharesRS or unitsRSUs after the end of the performance year will vest in full upon retirement. Second, restricted stock shares or unitsRS and RSUs will vest upon a termination of employment by the Companyus without cause or by the executive with good reason that occurs within two years after a change in control. Third, for SLO awards, granted after 2014, the “principal portion” that would have otherwise been paid in cash vestvests in full upon any termination other than a termination for cause. Fourth, Mr. Doheny’s offer letter agreement provides for prorated vesting of his new hire RSUs (subject to actual

performance results for the performance-vesting RSUs) if he has been terminated without cause or terminates with good reason on or before December 31, 2020. Sixth, within 90 days following the date of termination, the Compensation Committee can waive the forfeiture of restricted stock sharesRS or units.RSUs.

 

  

Performance Share Units: Termination of employment before the end of the performance period generally results in the forfeiture of any outstanding PSU awards with two exceptions. First, in case of death, disability or retirement before the end of the performance period, a pro rata number of the PSUs will become payable after the end of the performance period, based on the actual performance

results for the performance period. Second, in case of a change in control of the Company followed within two years by a termination of employment by the Company without cause or by the executive with good reason (a “qualifying termination” for purposes of the table below), per the Executive Severance Plan, the PSUs will become payable as of the date of termination based on target performance (or actual performance through the quarter prior to the change in control, if greater). In addition, under Dr. Kadri’s relocation letter dated May 7, 2015, if herMr. Peribere’s 2012 employment with the Company is terminated without cause at any time before March 31, 2018,agreement and January 2016 agreement, for PSUs granted in 2016 and 2017 (including the PSUs granted as an inducement to herhis entering into the January 2016 agreement), in 2013, 2014case of termination by us without cause or upon completion of the term of employment ending December 31, 2017 (subject to certain conditions related to succession planning and 2015compliance with employment-related covenants), the PSUs will be treated the same as described above regarding retirement (i.e., pro rata vestingvest in full (not prorated) subject to actual performance)performance results. Based on Mr. Peribere’s retirement on December 31, 2017, these provisions were triggered for his outstanding PSUs, which based on the closing price of our common stock of $49.30 as of December 29, 2017 were valued at $10,637,461 (assuming threshold performance for the 2016 PSUs and target performance for the 2017 PSUs).

Mr. Peribere’s two new hire PSU awards generally follow the same termination treatment provisions as other PSU awards, with (i) pro rata vesting based on actual performance in case of termination due to death or disability and (ii) per the Executive Severance Plan, full vesting based on target performance (or actual performance through the quarter prior to the change in control, if greater) for a termination without cause or with good reason within two years after a change in control. The first of those two new hire PSU awards includes certain unique provisions due to the design of the award. First, the vesting described above applies only to the one-year performance period then in effect at the date of termination. Second, no amount is payable for any one-year performance period beginning after the date of termination. Finally, for any portion of the award that has become earned based on relative TSR performance for a prior one-year performance period but has not yet been paid (because each annual amount to the extent earned is generally not paid until after August 31, 2016 under the terms of the award), that amount will be forfeited in case of a termination for cause, but otherwise will be paid according to schedule (or earlier in case of death or disability) for any other termination of employment.

The following table shows the amounts that would have been payable to the named executive officers under these equity award programs for a termination of employment as of December 31, 2015,2017, based on the closing price of the Company’sour common stock of $44.60$49.30 as of that date.December 29, 2017. All awards remain subject to the Company’s compensation recoupment policyRecoupment Policy (discussed in the “—Compensation Discussion and AnalysisAnalysis” above). Mr. Peribere is excluded because he retired on December 31, 2017 and Ms. Lowe is excluded because she resigned effective October 31, 2017.

 

Name Type of
Award
 Death or
Disability
  Involuntary
for Cause
  Involuntary
(all others)
  Voluntary  CIC Only  CIC +  qualifying
termination
1
 

Peribere

 RS2 $1,150,000   $0   $0   $0   $0   $1,150,000  
  SLO3 $9,884,030   $0   $2,049,861   $2,049,861   $0   $9,884,030  
  12PSU4 $3,345,000   $0   $3,345,000   $3,345,000   $0   $3,345,000  
  PSU5 $19,075,203   $0   $0   $0   $0   $29,444,564  

Lowe

 SLO3 $492,161   $0   $145,797   $145,797   $0   $492,161  
  PSU5 $2,065,875   $0   $0   $0   $0   $3,746,176  

Chammas

 SLO3 $1,357,178   $0   $0   $0   $0   $1,357,178  
  PSU5 $1,587,915   $0   $0   $0   $0   $2,879,465  

Deily

 SLO3 $774,523   $0   $774,523   $774,523   $0   $774,523  
  PSU5 $1,589,068   $0   $1,589,068   $1,589,068   $0   $2,882,926  

Kadri

 PSU5 $1,559,819   $0   $1,559,819   $0   $0   $2,795,216  
Name Type of
Award
 

Death or
Disability

($)

  

Involuntary
for Cause

($)

  

Involuntary
(all
others)
1

($)

  

Voluntary

($)

  

CIC Only

($)

  

CIC + qualifying
termination
2

($)

 

Mr. Stiehl

 PSU3  174,637   0   0   0   0   628,624 

Mr. Doheny

 17New Hire PSU4  299,087   0   299,087   0   0   3,451,000 
 17New Hire RSU4  1,479,000   0   128,180   0   0   1,479,000 

Mr. Chammas

 PSU3  519,885   0   0   0   0   1,851,117 

Mr. Deily

 SLO5  169,050   0   169,050   169,050   0   169,050 
 PSU3  522,415   0   522,415   522,415   0   1,860,187 

 

 
1 For Mr. Doheny, amounts in this column also include amounts resulting from a termination of employment by Mr. Doheny for good reason.

2The amounts shown in the column labeled “CIC + qualifying termination” represent theconsists of amounts that would have been paid to the named executive officers if a change in control had occurred within thetwo-year period ending December 31, 20152017 and a qualifying termination of employment had occurred at the end of 2015.

2017.

 

2

The amounts shown in this row relate to a restricted stock award granted to Mr. Peribere in 2013 in connection with his 2012 employment agreement.

3 

The amounts shown in theseThese rows represent theconsist of amounts that would have been paid to the named executive officer in connection with the 20132016 and 2014 SLO awards. The amounts above under “Involuntary (all others)” and “Voluntary” represent the “principal portion” of the 2014 SLO awards, except for Mr. Deily, who was retirement eligible as of December 31, 2015, and as a result the amounts shown represent the full value of his 2013 and 2014 SLO awards.

4

The amounts in this row relate to 75,000 shares under the first of Mr. Peribere’s 2012 new hire PSU awards that have been earned based on performance prior to December 31, 2015 and which are scheduled to vest August 31, 2016.

5

The amounts shown in these rows represent the amounts that would have been paid to the named executive officers in connection with (i) the 20142017 three-year PSU award, plus (ii) 2014 special PSU award, plus (iii)awards. For the 2015 three-year special PSU award, plus (iv)scenarios other than “CIC + qualifying termination,” the PSUs are included assuming threshold performance for Mr. Peribere, the outstanding performance-based portions of his two 2012 new hire PSU awards. The amounts

above assume2016 PSUs and target performance (except that in case of Mr. Peribere’s second 2012 new hire PSU award,for the amount assumes maximum performance).2017 PSUs. In the case of “CIC + qualifying termination,” per the terms of the Executive Severance Plan under which each of the named executive officers participates, the amounts represent the full value of the awards based on target performance and are not pro-rated. As of December 31, 2015, Mr. Deily was eligible for retirement treatment under the awards as described above. In addition, as noted above, Dr. Kadri receives additional vesting for certain PSUs in case of an involuntary termination without cause per her relocation letter.prorated. In certain cases, vesting may be conditioned on the named executive officer first providing the Companyus with a release of claims.

4These rows consist of amounts that would have been paid to Mr. Doheny in connection with the 2017 New Hire PSU and 2017 New Hire RSU. As noted above, Mr. Doheny’s offer letter agreement provides for prorated vesting of his RSUs (subject to actual performance results for the 2017 New Hire PSUs) if he has been terminated without cause or terminates with good reason on or before December 31, 2020.

5This row consists of amounts that would have been paid to Mr. Deily in connection with the 2015 SLO award. Because Mr. Deily was retirement eligible as of December 31, 2017, the amounts above under “Involuntary (all others)” and “Voluntary” represent the full value of the SLO award.

The benefits described or referenced above are in addition to benefits available generally to salaried employees of the Company upon termination of employment, such as, for employees in the United States, distributions under the Sealed Air Corporationour 401(k) Thrift Plan and theour Profit-Sharing Plan, of Sealed Air Corporation, non-subsidized retiree medical benefits, disability benefits and accrued vacation pay (if applicable).

CEO Pay Ratio

As required by applicable SEC rules, we are providing the following estimate of the relationship of the annual total compensation of our employees and the annual total compensation of Jerome A. Peribere, our President and CEO as of the end of 2017, our last completed fiscal year.

For 2017:

the median of the annual total compensation of all our employees, other than our CEO, was $61,031; and

the annual total compensation of our CEO, as reported in “Executive Compensation—2017 Summary Compensation Table” (and adjusted as noted below), was $10,900,704.

Based on this information, we reasonably estimate that for 2017 our CEO’s annual total compensation was approximately 179 times that of the median of the annual total compensation of all our employees.

We took the following steps to identify the median of the annual total compensation of all our employees, as well as to determine the annual total compensation of our median employee and our CEO.

1.We determined that, as of December 31, 2017, our employee population consisted of approximately 14,120 individuals. This population consisted of our full-time, part-time and temporary employees employed with us as of the determination date.

2.To identify the “median employee” from our employee population, we used total annual salary (including base wages for hourly employees) that each employee was paid for 2017 before any taxes, deductions, insurance, premiums and other payroll withholding, plus any 2017 target bonus amount. We did not use any statistical sampling techniques.

3.For the annual total compensation of our median employee, we identified and calculated the elements of that employee’s compensation for 2017 in accordance with the requirements of Item 402(c)(2)(x) of RegulationS-K, except that we also included the estimated value of certain broad-based group health and life benefits, resulting in annual total compensation of $61,031.

4.For the annual total compensation of our CEO, we used the amount reported in the “Total” column in “Executive Compensation—2017 Summary Compensation Table.” However, to maintain consistency between the annual total compensation of our CEO and the median employee, we also added the estimated value of certain broad-based group health and life benefits for our CEO to the amount reported in that table.

The CEO pay ratio reported above is a reasonable estimate calculated in a manner consistent with SEC rules based on the methodologies and assumptions described above. SEC rules for identifying the median employee and determining the CEO pay ratio permit companies to employ a wide range of methodologies, estimates and assumptions. As a result, the CEO pay ratios reported by other companies, which may have employed other permitted methodologies or assumptions and which may have a significantly different work force structure from ours, are likely not comparable to our CEO pay ratio.

Equity Compensation Plan Information

The following table provides information as of December 31, 20152017 with respect to shares of common stock that may be issued under theour 2014 Omnibus Incentive Plan and Predecessor Plans of Sealed Air Corporation.predecessor plans.

 

Plan Category  Number of Securities to be
Issued Upon Exercise of
Outstanding Options,
Warrants and Rights
(a)
   Weighted-Average
Exercise Price of
Outstanding Options,
Warrants, and Rights
(b)
   Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans
1,2
(c)
 

Equity compensation plans
approved by stockholders
3

   5,034,6152,079,674        2,660,1242,146,7021 

Equity compensation plans not
approved by stockholders

            
Total

Totals

   5,034,6152,079,674        2,660,1242,146,7022 

 

1 

Excludes securities reflected in column (a).

 

2 

This number of securities is comprised of 7,694,7393,668,954 shares available at December 31, 20152017 for awards under the 2014 Omnibus Incentive Plan and Predecessor Planspredecessor plans (as disclosed in the Company’s 2015our Annual Report on Form 10-K),10-K for the fiscal year ended December 31, 2017) plusnon-vested restricted stock units of 557,422, less the 5,034,6152,079,672 of securities to be issued upon vesting included in column (a) in the table above.

 

3 

Consists of theour 2014 Omnibus Incentive Plan and Predecessor Plans of Sealed Air Corporation.predecessor plans. Column (a) includes the following as of December 31, 2015:

2017:

 

1,062,880129,139 performance share units awarded under the 20132015 three-year PSU award. This number reflects an assumption that such awards are paid out based upon the achievement below the target level of performance conditions, resulting in an award equal to 73% of the target.

658,783 performance share units awarded under the 2014 Special PSU award. This number reflects an assumption that such awards are paid out based upon the achievement above the target level of performance conditions, resulting in an award equal to 200% of the target.

 

650,49068,524 performance share units awarded under the 20142016 three-year PSU award. This number reflects an assumption that such awards are paid out based upon the achievement abovebelow the target level ofbased on current performance conditions, resulting in an award equal to 200%30% of the target.

 

1,552,094262,910 performance share units awarded under the Special 2014 three-year PSU award. This number reflects an assumption that such awards are paid out based upon the achievement above the target level of performance conditions, resulting in an award equal to 200% of the target.

224,760 performance share units awarded under the 20152017 three-year PSU award. This number reflects an assumption that such awards are paid out based upon the achievement at the target level of performance conditions, resulting in an award equal to 100% of the target.

 

350,00070,000 performance share units awarded to Jerome A. PeribereEdward Doheny as initiala new hire equity award which included two awards based on the Company’scompany performance.

 

5,777 shares40,506 performance share units awarded tonon-officer employees as part of restricted stock awarded granted but not yet issued asan acquisition made us. This number reflects an assumption that such awards are paid out based upon the achievement at the target level, resulting in an award equal to 100% of December 31, 2015.

the target.

 

882,449 557,422non-vested restricted stock units as of December 31, 2015.

2017.

 

156,402111,840 restricted stock units unvested SLO awards awarded in 20132015 and 2014.

2016.

 

149,763180,550 deferred stock units held bynon-employee directors.

There is no exercise price for shares or units awarded under the 2014 Omnibus Incentive Plan and Predecessor Plans.predecessor plans. There was no exercise price for deferred stock units credited to the accounts ofnon-employee directors in 2015.2017.

Advisory VoteProposal 2.

Amendment and Restatement of 2014 Omnibus Incentive Plan

Introduction

We use equity compensation awards to Approveprovide long-term incentive compensation and to attract and retain highly regarded employees andnon-employee directors. Our board believes that our equity compensation program is an integral part of our approach to long-term incentive compensation, focused on shareholder return, and our continuing efforts to align shareholder and management interests. We believe that growth in shareholder value depends on, among other things, our continued ability to attract and retain employees, in a competitive workplace market, with the experience and capacity to perform at the highest levels.

The 2014 Omnibus Incentive Plan, or the Omnibus Plan, was approved by our stockholders in 2014. The Omnibus Plan authorized the issuance, pursuant to awards under the plan, of up to 4,250,000 shares of our common stock plus any shares that were available for issuance under its predecessor plans. As of March 19, 2018, there were about 1.4 million shares available for future grants under the Omnibus Plan.

In view of the limited number of shares remaining available under the Omnibus Plan, our board approved an amendment and restatement of the Omnibus Plan, or the Amended Plan, a copy of which appears as Annex D to this Proxy Statement, subject to shareholder approval. If our stockholders do not approve the Amended Plan, the Omnibus Plan will remain in effect in its current form.

The Amended Plan adds 2.2 million shares of common stock to the share pool previously available under the Omnibus Plan. The Amended Plan makes certain other minor changes to the plan, including the addition of minimum vesting requirements as described below.

The Omnibus Plan includes design features intended to allow awards that qualify as “performance-based compensation” under Section 162(m) of the Internal Revenue Code. These awards are intended to be exempt from the $1 million deduction limit that would otherwise apply under Section 162(m) for compensation paid to certain executive officers. The Tax Cuts and Jobs Act eliminated the “performance-based compensation” exception effective 2018. The Amended Plan retains certain individual award limits and a list of permitted performance criteria, even though those features are no longer required by the Tax Cuts and Jobs Act for future awards. We mayre-evaluate these features at a later date as additional guidance is provided by the Internal Revenue Service regarding the changes made to Section 162(m) by the Tax Cuts and Jobs Act.

Information on Equity Compensation Plans as of March 19, 2018

The Board recognizes that the increase in the number of shares under the Omnibus Plan will result in additional dilution or “overhang” for our stockholders, although the incremental dilution would not be material. As commonly calculated, the total potential overhang resulting from the amendment of the Omnibus Plan would be approximately 3.88%, with the incremental overhang resulting from the share increase equal to approximately 1.27%. This overhang is calculated as follows, in each case as of the record date of March 19, 2018:

(a) Incremental Share Request Subject to Stockholder Approval

2,200,000

(b) Shares Underlying Outstanding Awards

3,116,072

(c) Shares currently available under the Omnibus Plan

1,397,387

(d) Total shares authorized for, or outstanding under, equity awards (a + b + c)

6,713,459

(e) Total shares outstanding

166,512,914

(f) Fully Diluted Overhang (d/(d+e))

3.88%

We note that the number of shares remaining available for grant as described above differs from those reported above under Equity Compensation Plan Information, since that table, required by SEC disclosure rules, is dated as of December 31, 2017, and therefore does not take into accountyear-to-date grants during 2018.

The following table includes information regarding all outstanding equity awards (all of which were originally made under the Omnibus Plan) and shares available for future awards under the Omnibus Plan as of March 19, 2018 (and without giving effect to the amended and restated Omnibus Plan under this Proposal 2):

Total shares underlying outstanding options and warrants

0

Weighted average exercise price of outstanding options and warrants

N/A

Weighted average remaining contractual life of outstanding options and warrants

N/A

Total shares subject to outstanding, unvested full-value awards

3,116,072

Total shares currently available for grant

1,397,387

Outstanding awards include unvested shares of restricted stock and PSUs assuming target performance.

Key Features of the Amended Plan

The following features of the Amended Plan will protect the interests of our stockholders:

Limitation on terms of stock options and stock appreciation rights. The maximum term of each stock option and stock appreciation right, or SARs, is ten years.

No repricing or grant of discounted stock options or SARs. The Amended Plan does not permit the repricing of options or SARs either by amending an existing award or by substituting a new award at a lower price. The Amended Plan prohibits the granting of stock options or SARs with an exercise price less than the fair market value of the common stock on the date of grant.

No single-trigger acceleration, “liberal” change in control definition, or excise taxgross-ups. Under the Amended Plan we do not automatically accelerate vesting of awards in connection with a change in control of our company. The Amended Plan does not include a “liberal” change in control definition. As previously noted, we do not provide change in control excise taxgross-ups.

No Liberal Share Counting for Options/SARs. The Amended Plan prohibits us fromre-using shares that are tendered or surrendered to pay the exercise cost or tax obligation for grants of options and SARs. The only shares that arere-used in the Amended Plan are for awards that have been canceled, forfeited, expired, for awards settled in cash, or withheld to cover tax obligations in case of full-value awards such as restricted stock, RSUs and PSUs.

Minimum Vesting Requirements. The Amended Plan includes minimum vesting requirements. Equity-based awards generally cannot vest earlier than one year after grant. Certain limited exceptions are permitted.

Dividends. We do not pay dividends or dividend equivalents on stock options or SARs. We also do not pay dividends or dividend equivalents on unearned restricted shares, RSUs or PSUs, except to the extent the award actually becomes vested.

Clawback. Awards granted under the Amended Plan are subject to the Recoupment Policy described in “Executive Compensation—Compensation Discussion and Analysis.”

Director Limits.The Amended Plan contains annual limits on the amount of awards that may be granted tonon-employee directors.

The following is a summary of the material features of the Amended Plan. This summary is qualified in its entirety by reference to the complete text of the Amended Plan, which is attached as Annex D to this Proxy Statement. To the extent the description below differs from the text of the Amended Plan, the text of the Amended Plan will control.

Material Terms of the Amended Plan

Eligibility

Awards may be granted under the Amended Plan to our, and our affiliates’, officers, employees, consultants and advisors and to ournon-employee directors. Incentive stock options may be granted only to our, and our subsidiaries’, employees. As of March 19, 2018, approximately 1,100 individuals were eligible to receive awards under the Amended Plan, including 5 executive officers and 9non-employee directors.

Administration

The Amended Plan may be administered by the Board of Directors or the Compensation Committee. The Compensation Committee, in its discretion, selects the individuals to whom awards may be granted, the time or times at which such awards are granted, and the terms of such awards.

Number of Authorized Shares

The number of shares of common stock authorized for issuance under the Amended Plan is the sum of:

the shares approved by stockholders at the original effective date of the Omnibus Plan, equal to the sum of (A) 4,250,000 shares plus (B) the number of shares of common stock that remained available for awards under two predecessor plans as of the original effective date of the Omnibus Plan; plus

effective upon approval of the stockholders at the Annual Meeting, 2,200,000 shares.

In addition, any awards that were outstanding under the predecessor plans as of the original effective date of the Omnibus Plan that subsequently expire, terminate, or are surrendered or forfeited for any reason without issuance of shares will automatically become available for issuance under the Amended Plan. Up to 4,250,000 shares may be granted as incentive stock options under Internal Revenue Code Section 422. The shares of common stock issuable under the Amended Plan will consist of authorized and unissued shares, treasury shares, or shares purchased on the open market or otherwise.

If any award is canceled, terminates, expires or lapses for any reason prior to the issuance of shares or if shares are issued under the Amended Plan and thereafter are forfeited to us, the shares subject to such awards and the forfeited shares will not count against the aggregate number of shares of common stock available for grant under the Amended Plan. In addition, the following items will not count against the aggregate number of shares of common stock available for grant under the Amended Plan: (a) the payment in cash of dividends or dividend equivalents under any outstanding award, (b) any award that is settled in cash rather than by issuance of shares of common stock, (c) shares surrendered or tendered in payment of any taxes required to be withheld in respect of a full-value award, such as restricted stock, RSUs, PSUs or other stock-based awards, or (d) awards granted in assumption of or in substitution for awards previously granted by an acquired company. Shares tendered or withheld to pay the option exercise price or tax withholding for options or SARs will continue to count against the aggregate number of shares of common stock available for grant under the Amended Plan. SARs are counted based on the gross number of shares covered by the award, not the net shares settled at exercise. Any shares of common stock repurchased by us with cash proceeds from the exercise of options will not be added back to the pool of shares available for grant under the Amended Plan.

Awards toNon-employee Directors

No more than $500,000 may be granted in equity-based awards during any one year to anon-employee director, based on the grant date fair value for accounting purposes in the case of stock options or stock appreciation rights and based on the fair market value of the common stock underlying the award on the grant date for other equity-based awards. This limit does not apply to shares received by anon-employee director at his or her election in lieu of all or a portion of the director’s retainer for board service (described below).

After each annual meeting of stockholders, anynon-employee director elected at such meeting will be eligible to receive a retainer in an amount established prior to the annual meeting by the Board. Anynon-employee director elected or appointed other than at an annual meeting will be entitled to receive an interim retainer established by the Board of Directors. Retainers may be paid in either cash or shares, and retainers will be eligible for deferral under our Deferred Compensation Plan for Directors (or any similar plan we maintain).

Adjustments

If certain changes in the common stock occur by reason of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in stock, or other increase or decrease in the common stock without our receipt of consideration, or if we effect anyspin-off,split-up, extraordinary cash dividend or other distribution of assets, we must equitably adjust the number and kind of securities for which stock options and other stock-based awards may be made under the Omnibus Plan, including the individual award limits for “performance-based” compensation under Internal Revenue Code Section 162(m). In addition, if we effect anyspin-off,split-up, extraordinary cash dividend or other distribution of assets, we must equitably adjust the number and kind of securities subject to any outstanding awards and the exercise price of any outstanding stock options or SARs.

Types of Awards

The Amended Plan permits the granting of any or all of the following types of awards:

Stock Options. Stock options entitle the holder to purchase a specified number of shares of common stock at a specified price (the exercise price), subject to the terms and conditions of the stock option grant. The Compensation Committee may grant either incentive stock options, which must comply with Code Section 422, or nonqualified stock options. The Compensation Committee sets exercise prices and terms, except that stock options must be granted with an exercise price not less than 100% of the fair market value of the common stock on the date of grant (excluding stock options granted in connection with assuming or substituting stock options in acquisition transactions). Unless the Compensation Committee determines otherwise, fair market value means, as of a given date, the closing price of the common stock. (The fair market value of a share of our common stock as of March 19, 2018 was $43.80.) At the time of grant, the Compensation Committee determines the terms and conditions of stock options, including the quantity, exercise price, vesting periods, term (which cannot exceed ten years) and other conditions on exercise.

Stock Appreciation Rights. The Compensation Committee may grant SARs, as a right in tandem with the number of shares underlying stock options granted under the Amended Plan or as a freestanding award. Upon exercise, SARs entitle the holder to receive payment per share in stock or cash, or in a combination of stock and cash, equal to the excess of the share’s fair market value on the date of exercise over the grant price of the SAR. The grant price of a tandem SAR is equal to the exercise price of the related stock option and the grant price for a freestanding SAR is determined by the Compensation Committee in accordance with the procedures described above for stock options. Exercise of a SAR issued in tandem with a stock option will reduce the number of shares underlying

the related stock option to the extent of the SAR exercised. The term of a freestanding SAR cannot exceed ten years, and the term of a tandem SAR cannot exceed the term of the related stock option.

Restricted Stock, Restricted Stock Units and Other Stock-Based Awards. The Compensation Committee may grant awards of restricted stock, which are shares of common stock subject to specified restrictions, and restricted stock units, which represent the right to receive shares of the common stock in the future. These awards may be made subject to repurchase, forfeiture or vesting restrictions at the Compensation Committee’s discretion. The restrictions may be based on continuous service with us or the attainment of specified performance goals, as determined by the Compensation Committee. Stock units may be paid in stock or cash or a combination of stock and cash, as determined by the Compensation Committee. The Compensation Committee may also grant other types of equity or equity-based awards subject to the terms of the Amended Plan and any other terms and conditions determined by the Compensation Committee.

Performance Awards. The Compensation Committee may grant performance awards, which entitle participants to receive a payment from us, the amount of which is based on the attainment of performance goals established by the Compensation Committee over a specified award period. Performance awards may be denominated in shares of common stock or in cash, and may be paid in stock or cash or a combination of stock and cash, as determined by the Compensation Committee. Cash-based performance awards include annual incentive awards.

The Compensation Committee has discretion to select any performance goals for performance awards. Those performance goals may include, among others, the attainment of specified levels of one, or any combination, of the following performance criteria for our company on a consolidated basis, and/or specified subsidiaries or business units, as reported or calculated by us: (1) cash flow; (2) earnings per share, as adjusted for any stock split, stock dividend or other recapitalization; (3) earnings measures (including EBIT and EBITDA); (4) return on equity; (5) total stockholder return; (6) share price performance, as adjusted for any stock split, stock dividend or other recapitalization; (7) return on capital; (8) revenue; (9) income; (10) profit margin; (11) return on operating revenue; (12) brand recognition/acceptance; (13) customer metrics (including customer satisfaction, customer retention, customer profitability, or customer contract terms); (14) productivity; (15) expense targets; (16) market share; (17) cost control measures; (18) balance sheet metrics; (19) strategic initiatives; (20) implementation, completion or attainment of measurable objectives with respect to recruitment or retention of personnel or employee satisfaction; (21) return on assets; (22) growth in net sales; (23) the ratio of net sales to net working capital; (24) stockholder value added (net operating profit after tax, or NOPAT), excludingnon-recurring items, less our cost of capital); (25) improvement in management of working capital items (inventory, accounts receivable or accounts payable); (26) sales from newly-introduced products; (27) successful completion of, or achievement of milestones or objectives related to, financing or capital raising transactions, strategic acquisitions or divestitures, joint ventures, partnerships, collaborations, or other transactions; (28) product quality, safety, productivity, yield or reliability (on time and complete orders); (29) funds from operations; (30) regulatory body approval for commercialization of a product; (31) debt levels or reduction or debt ratios; (32) economic value; (33) operating efficiency; (34) research and development achievements; or (35) any combination of the forgoing business criteria. The Compensation Committee may also select any derivations of these business criteria (e.g., income shall includepre-tax income, net income, operating income, etc.). Performance goals may, in the discretion of the Compensation Committee, be established on a company-wide basis, or with respect to one or more business units, divisions, subsidiaries or business segments, as applicable. Performance goals may be absolute or relative to the performance of one or more comparable companies or indices.

Dividends and Dividend Equivalents. Subject to the terms of the Amended Plan and any applicable award agreement, a participant may be entitled to receive dividends or dividend equivalents with respect to shares covered by an award, other than an award of stock options or SARs. Dividends or dividend equivalents may be credited as additional shares or units. However, notwithstanding anything

to the contrary, no dividends or dividend equivalents will vest or otherwise be paid out prior to the time that the underlying award (or portion thereof) has vested and, accordingly, will be subject to cancellation and forfeiture if such award does not vest (including both time-based and performance-based awards).

Minimum Vesting Requirements

While the Compensation Committee generally may set the terms and conditions of awards, the Amended Plan requires that equity-based awards may not vest earlier than the first anniversary of the date the award is granted. This requirement does not apply to (1) substitute awards, (2) shares delivered in lieu of fully vested cash awards or (3)��awards tonon-employee directors that vest on the earlier of the one year anniversary of the date of grant or the next annual meeting of stockholders (but not sooner than 50 weeks after the grant date). Also, the Compensation Committee may grant equity-based awards without regard to the minimum vesting requirement with respect to a maximum of five percent of the available share reserve authorized for issuance under the Amended Plan. In addition, the minimum vesting requirement does not apply to the Compensation Committee’s discretion to provide for accelerated exercisability or vesting of any award, including in cases of retirement, death, disability or a change in control, in the terms of the award or otherwise.

No Repricing

Without stockholder approval, the Compensation Committee is not authorized to (a) lower the exercise or grant price of a stock option or SAR after it is granted, except in connection with certain adjustments to our corporate or capital structure permitted by the Amended Plan, such as stock splits, (b) take any other action that is treated as a repricing under generally accepted accounting principles or (c) cancel a stock option or SAR at a time when its exercise or grant price exceeds the fair market value of the underlying stock, in exchange for cash, another stock option or SAR, restricted stock, restricted stock units or other equity award, unless the cancellation and exchange occur in connection with a change in capitalization or other similar change.

Clawback

All cash and equity awards granted under the Amended Plan will be subject to the requirements of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the recovery of erroneously awarded compensation, any implementing rules and regulations under such act, any policies we adopt to implement such requirements, and any other compensation recovery policies as we may adopt from time to time, including the Recoupment Policy described in “Executive Compensation—Compensation Discussion and Analysis.”

Certain Individual Award Limits

Subject to certain adjustments for changes in our corporate or capital structure described above, participants who are granted awards intended to qualify as “performance-based” compensation under Internal Revenue Code Section 162(m) may not be granted stock options or stock appreciation rights for more than 1,000,000 shares in any calendar year or more than 1,000,000 shares for all share-based awards that are performance awards in any calendar year. The maximum dollar value granted to any participant pursuant to that portion of a cash award granted under the Amended Plan for any calendar year to any employee that is intended to satisfy the requirements for “performance-based compensation” under Internal Revenue Code Section 162(m) may not exceed $10 million for an annual incentive award and $10 million for all other cash-based awards. As noted earlier, under the Tax Cuts and Jobs Act the “performance-based compensation” exception will not be available under Section 162(m) for awards granted in 2018 or later.

Transferability

Awards are not transferable other than by will or the laws of descent and distribution, except that in certain instances transfers may be made to or for the benefit of designated family members of the participant for no value.

Change in Control

Effect of Change in Control. Under the Amended Plan, in the event of a change in control, outstanding awards will be treated in accordance with the applicable transaction agreement. If no treatment is provided for in the transaction agreement, each award holder will be entitled to receive the same consideration that stockholders receive in the change in control for each share of stock subject to the award holder’s awards, upon the exercise, payment or transfer of the awards, but the awards will remain subject to the same terms, conditions, and performance criteria applicable to the awards before the change in control, unless otherwise determined by the Compensation Committee. In connection with a change in control, outstanding stock options and SARs may be cancelled in exchange for the excess of the per share consideration paid to stockholders in the transaction, minus the option or SARs exercise price.

Awards granted tonon-employee directors will fully vest on an accelerated basis, and any performance goals will be deemed to be satisfied at target. For awards granted to all other service providers, except as may otherwise be provided in the applicable award agreement, vesting of awards will depend on whether the awards are assumed, converted or replaced by the resulting entity.

For awards that are not assumed, converted or replaced, the awards will vest upon the change in control. For performance awards, the amount vesting will be based on the greater of (a) achievement of all performance goals at the “target” level or (b) the actual level of achievement of performance goals as of our fiscal quarter end preceding the change in control, and will be prorated based on the portion of the performance period that had been completed through the date of the change in control.

For awards that are assumed, converted or replaced by the resulting entity, no automatic vesting will occur upon the change in control. Instead, the awards, as adjusted in connection with the transaction, will continue to vest in accordance with their terms. In addition, the awards will vest if the award recipient has a separation from service within two years after the change in control by us other than for “cause” or by the award recipient for “good reason” (as defined in the applicable award agreement). For performance awards, the amount vesting will be based on the greater of (a) achievement of all performance goals at the “target” level or (b) the actual level of achievement of performance goals as of our fiscal quarter end preceding the change in control, and will be prorated based on the portion of the performance period that had been completed through the date of the separation from service.

Definition of Change in Control. A change in control generally means the occurrence of any of the following events:

(1)an acquisition by any individual, entity or group of beneficial ownership of 30% or more of our outstanding voting securities entitled to vote generally in the election of directors (generally excluding any acquisition directly from us, any acquisition by us, any acquisition by any employee benefit plan of ours or of a related company, or an acquisition pursuant to certain transactions described in clause (3) below);

(2)a change in the composition of the Board of Directors such that the “continuing directors” cease to constitute at least a majority of the Board;

(3)

consummation of a reorganization, merger or consolidation, a sale of all or substantially all of our outstanding assets or the acquisition of assets or stock of another entity by us, unless after

such transaction (a) the beneficial owners of our outstanding voting securities entitled to vote generally in the election of directors immediately prior to the transaction retain at least 50% of such voting securities resulting from such transaction, (b) no person beneficially owns 30% or more of our then-outstanding voting securities entitled to vote generally in the election of directors resulting from such transaction except to the extent such ownership existed prior to the transaction, and (c) at least a majority of the directors resulting from such transaction were “continuing directors” prior to the change in control; or

(4)our stockholders approve our complete liquidation or dissolution.

For the purposes of this definition of a change in control, “continuing director” means one of our directors who is serving as such on the effective date of the Omnibus Plan and any person who is approved as a nominee or elected to the Board by a majority of the continuing directors who are then members of the Board, but excluding anyone whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consent by or on behalf of an individual, entity or group other than the Board.

Term, Termination and Amendment of the Amended Plan

Unless earlier terminated by the Board of Directors, the Amended Plan will terminate, and no further awards may be granted, on May 17, 2028. The Board may amend, suspend or terminate the Amended Plan at any time, except that, if required by applicable law, regulation or stock exchange rule, stockholder approval will be required for any amendment. The amendment, suspension or termination of the Amended Plan or the amendment of an outstanding award generally may not, without a participant’s consent, materially impair the participant’s rights under an outstanding award.

New Plan Benefits

A new plan benefits table for the Amended Plan and the benefits or amounts that would have been received by or allocated to participants for the last completed fiscal year under the Amended Plan if the Amended Plan was then in effect, as described in the federal proxy rules, are not provided because all awards made under the Amended Plan will be made at the Compensation Committee’s discretion, subject to the terms of the Amended Plan. Therefore, the benefits and amounts that will be received or allocated under the Amended Plan are not determinable at this time. The equity grant program for ournon-employee directors is described under “Director Compensation.”

Federal Income Tax Information

The following is a brief summary of the U.S. federal income tax consequences of the Amended Plan generally applicable to us and to participants in the Amended Plan who are subject to U.S. federal taxes. The summary is based on the Internal Revenue Code, applicable Treasury Regulations and administrative and judicial interpretations thereof, each as in effect on the date of this Proxy Statement, and is, therefore, subject to future changes in the law, possibly with retroactive effect. The summary is general in nature and does not purport to be legal or tax advice. Furthermore, the summary does not address issues relating to any U.S. gift or estate tax consequences or the consequences of any state, local or foreign tax laws.

Nonqualified Stock Options. A participant generally will not recognize taxable income upon the grant or vesting of a nonqualified stock option with an exercise price at least equal to the fair market value of our common stock on the date of grant and no additional deferral feature. Upon the exercise of a nonqualified stock option, a participant generally will recognize compensation taxable as ordinary income in an amount equal to the difference between the fair market value of the shares underlying the stock option on the date of exercise and the exercise price of the stock option. When a participant sells the shares, the participant will have short-term or long-term capital gain or loss, as the case may be,

equal to the difference between the amount the participant received from the sale and the tax basis of the shares sold. The tax basis of the shares generally will be equal to the greater of the fair market value of the shares on the exercise date or the exercise price of the stock option.

Incentive Stock Options. A participant generally will not recognize taxable income upon the grant of an incentive stock option. If a participant exercises an incentive stock option during employment or within three months after employment ends (12 months in the case of permanent and total disability), the participant will not recognize taxable income at the time of exercise for regular U.S. federal income tax purposes (although the participant generally will have taxable income for alternative minimum tax purposes at that time as if the stock option were a nonqualified stock option). If a participant sells or otherwise disposes of the shares acquired upon exercise of an incentive stock option after the later of (a) one year from the date the participant exercised the option and (b) two years from the grant date of the stock option, the participant generally will recognize long-term capital gain or loss equal to the difference between the amount the participant received in the disposition and the exercise price of the stock option. If a participant sells or otherwise disposes of shares acquired upon exercise of an incentive stock option before these holding period requirements are satisfied, the disposition will constitute a “disqualifying disposition,” and the participant generally will recognize taxable ordinary income in the year of disposition equal to the excess of the fair market value of the shares on the date of exercise over the exercise price of the stock option (or, if less, the excess of the amount realized on the disposition of the shares over the exercise price of the stock option). The balance of the participant’s gain on a disqualifying disposition, if any, will be taxed as short-term or long-term capital gain, as the case may be.

With respect to both nonqualified stock options and incentive stock options, special rules apply if a participant uses shares of common stock already held by the participant to pay the exercise price or if the shares received upon exercise of the stock option are subject to a substantial risk of forfeiture by the participant.

Stock Appreciation Rights. A participant generally will not recognize taxable income upon the grant or vesting of a SAR with a grant price at least equal to the fair market value of our common stock on the date of grant and no additional deferral feature. Upon the exercise of a SAR, a participant generally will recognize compensation taxable as ordinary income in an amount equal to the difference between the fair market value of the shares underlying the SAR on the date of exercise and the grant price of the SAR.

Restricted Stock Awards, Restricted Stock Units, and Performance Awards. A participant generally will not have taxable income upon the grant of restricted stock, restricted stock units or performance awards. Instead, the participant will recognize ordinary income at the time of vesting or payout equal to the fair market value (on the vesting or payout date) of the shares or cash received minus any amount paid. For restricted stock only, a participant may instead elect to be taxed at the time of grant.

Unrestricted Stock Awards. Upon receipt of an unrestricted stock award, a participant generally will recognize compensation taxable as ordinary income in an amount equal to the excess of the fair market value of the shares at such time over the amount, if any, paid by the participant with respect to the shares.

Other Stock or Cash-Based Awards. The U.S. federal income tax consequences of other stock or cash-based awards will depend upon the specific terms of each award.

Tax Consequences to Us. In the foregoing cases, we generally will be entitled to a deduction at the same time, and in the same amount, as a participant recognizes ordinary income, subject to certain limitations imposed under the Code, including Section 162(m). Under Section 162(m) as amended by the Tax Cuts and Jobs Act, we cannot deduct compensation paid to certain covered employees in a calendar year that exceeds $1 million.

Code Section 409A. We intend that awards granted under the Amended Plan comply with, or otherwise be exempt from, Code Section 409A (to the extent applicable), but make no representation or warranty to that effect.

Tax Withholding. We are authorized to deduct or withhold from any award granted or payment due under the Amended Plan, or require a participant to remit to us, the amount of any withholding taxes due in respect of the award or payment and to take such other action as may be necessary to satisfy all obligations for the payment of applicable withholding taxes. We are not required to issue any shares of common stock or otherwise settle an award under the Amended Plan until all tax withholding obligations are satisfied.

The Board of Directors recommends a vote FOR the approval of the Amended and Restated 2014 Omnibus Incentive Plan.

Proposal 3.

Ratification of Appointment of Independent Auditor for 2018

The Audit Committee has approved the retention of Ernst & Young LLP, or EY, an Independent registered public accounting firm, as our independent auditor to examine and report on our consolidated financial statements and the effectiveness of our internal control over financial reporting for the fiscal year ending December 31, 2018. The Audit Committee considers EY to be well qualified. In the absence of contrary specification, the Proxy Committee will vote proxies received in response to this solicitation in favor of ratification of the appointment. Even if the proposal is approved, the Audit Committee may, in its discretion, appoint a different independent registered public accounting firm to serve as independent auditor at any time during the year.

Representatives of EY will be present at the Annual Meeting. The EY representatives will have the opportunity to make a statement if they desire to do so, and we expect that they will be available to respond to appropriate questions.

The Board of Directors recommends a vote FOR the proposal to ratify the appointment of Ernst & Young LLP as our independent auditor for 2018.

Proposal 4.

Approval of Executive Compensation (Proposal 11)on Advisory Basis

Our stockholders have the opportunity at our 2016the Annual Meeting to vote to approve, on anon-binding, advisory basis, the compensation of our named executive officers as disclosed in this proxy statementProxy Statement in accordance with SEC rules. At our 20122017 Annual Meeting of Stockholders, we asked our stockholders to indicate if we should hold a “say-on-pay”“say-on-pay” vote every one, two or three years. Consistent with the recommendation of ourthe Board of Directors, our stockholders indicated by advisory vote their preference to hold a “say-on-pay”“say-on-pay” vote annually. After consideration of the 20122017 voting results, and based upon its prior recommendation, ourthe Board of Directors elected to hold a stockholder “say-on-pay”“say-on-pay” vote annually.

Our compensation program is intended to provide appropriate and balanced incentives toward achieving our annual and long-term strategic objectives, to support a performance-oriented environment based on the attainment of goals and objectives intended to benefit us and our stockholders and to create an alignment of interests between our executives and our stockholders. This approach has resulted in our ability to motivate our existing executives and to attract new executives with the skills and attributes that we need. Please refer to “Executive Compensation—Compensation Discussion and Analysis” for an overview of the compensation of our named executive officers.

We are asking for stockholder approval of the compensation of our named executive officers as disclosed in this proxy statementProxy Statement in accordance with SEC rules, which disclosures include the disclosures under “Executive Compensation—Compensation Discussion and Analysis,” the compensation tables and the narrative discussion following the compensation tables. This vote is not intended to address any specific item of compensation, but rather the overall compensation of our named executive officers and the policies and practices described in this proxy statement.Proxy Statement.

Accordingly, stockholders are being asked to vote on the following resolution:

RESOLVED, that the stockholders of Sealed Air Corporation approve the compensation paid to Sealed Air Corporation’s named executive officers, as disclosed in this proxy statementProxy Statement pursuant to Item 402 of RegulationS-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion.

This vote is advisory and therefore not binding on the Company,Sealed Air, the Compensation Committee or the Board of Directors. However, the Board of Directors and theits Compensation Committee value the opinions of our stockholders and to the extent there is any significant vote against the named executive officer compensation as disclosed in this proxy statement,Proxy Statement, we will consider our stockholders’ concerns, and the Compensation Committee will evaluate whether any actions are necessary to address those concerns.

OurThe Board of Directors recommends a vote FOR the approval of the compensation paid to Sealed Air Corporation’sour named executive officers, as disclosed in this proxy statementProxy Statement pursuant to Item 402 of RegulationS-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion.

Selection of Independent Auditor (Proposal 12)

The Audit Committee has approved the retention of Ernst & Young LLP (“EY”), an Independent Registered Public Accounting Firm, as our independent registered public accounting firm to examine and report on the Company’s consolidated financial statements and the effectiveness of the Company’s internal control over financial reporting for the fiscal year ending December 31, 2016, subject to ratification of the retention by the stockholders at the Annual Meeting. The Audit Committee considers EY to be well qualified. In the absence of contrary specification, the Proxy Committee will vote proxies received in response to this solicitation in favor of ratification of the appointment. Even if the proposal is approved, the Audit Committee may, in its discretion, appoint a different independent registered public accounting firm at any time during the year.

KPMG LLP (“KPMG”) was the Company’s independent registered public accounting firm until March 2, 2015, when, following approval by the Audit Committee, EY was engaged as the Company’s independent registered public accounting firm to examine and report on the Company’s consolidated financial statements and the effectiveness of the Company’s internal control over financial reporting for the fiscal year ended December 31, 2015.

During the fiscal years ended December 31, 2014 and 2013, and the subsequent interim period through March 2, 2015, neither Sealed Air nor anyone on its behalf has consulted with EY, regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on Sealed Air’s consolidated financial statements, in any case where a written report or oral advice was provided to Sealed Air that EY concluded was an important factor considered by Sealed Air in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a “disagreement,” as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K, or a “reportable event,” as that term is defined in Item 304(a)(1)(v) of Regulation S-K.

The audit reports of KPMG on the consolidated financial statements of Sealed Air and its subsidiaries as of and for the years ended December 31, 2014 and 2013 did not contain any adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. The audit reports of KPMG on the effectiveness of internal control over financial reporting as of December 31, 2014 and 2013 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. During the fiscal years ended December 31, 2014 and 2013, and the subsequent interim period through the filing of the Annual Report on Form 10-K, there were (i) no disagreements between Sealed Air and KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference thereto in their reports on the consolidated financial statements for such years, and (ii) no “reportable events” as that term is defined in Item 304(a)(1)(v) of Regulation S-K.

Representatives of EY will be present at the Annual Meeting. The EY representatives will have the opportunity to make a statement if they desire to do so, and we expect that they will be available to respond to appropriate questions.

The Board of Directors recommends a vote FOR the proposal to ratify the selection of EY as our independent public accounting firm for 2016.

Principal Independent Auditor Fees

The following table sets forth the aggregate fees billed to the Companyus by EY and KPMG LLP for professional services rendered for the fiscal years ended December 31, 20152017 and 2014:2016:

 

    20151   20142 

Audit Fees3

  $7,821,000    $10,919,000  

Audit-Related Fees4

   478,000     1,154,000  

Tax Fees5

   4,919,000     1,278,000  

Total Fees

  $13,218,000    $13,351,000  
    2017   2016 

Audit Fees1

  $6,442,000     $7,101,000   

Audit-Related Fees2

   3,479,000      1,261,000   

Tax Fees3

   5,194,000      5,316,000   
  

 

 

   

 

 

 

Total Fees

  $    15,115,000     $    13,678,000   

 

1 

All fees for 2015 were billed by EY.

2

All fees for 2014 were billed by KPMG.

3

Audit fees includeIncludes services relating to the audit of the annual consolidated financial statements, audit of the effectiveness of internal control over financial reporting, review of quarterly consolidated financial statements, statutory audits, comfort letters, and consents and review of documentation filed with the SECSEC-registered and other securities offerings.

 

42 

These fees includeIncludes services assistance with general accounting matters, work performed on the Company acquisitions and divestitures, employee benefit plan audits and assistance with statutory audit matters.

 

53 

Includes services for global tax compliance services and services for special tax projects and are inclusive of expenses.

projects.

Audit CommitteePre-Approval Policies and Procedures

The Audit Committee has adopted a policy that requires the Audit Committee or a member of the Audit Committee topre-approve all engagements with Sealed Air’sour independent auditor. These services include audit services, audit-related services tax services and othertax services. Each year, the Audit Committee must approve the independent auditor’s retention to audit the Company’sour financial statements, subject to ratification by the stockholders at the Annual Meeting.stockholders. The Audit Committee also approves the estimated fees associated with the audit before the audit begins. The Audit Committee or a member of the Audit Committee alsopre-approves any engagement of an auditing firm other than the independent auditor to perform a statutory audit for any of our subsidiaries. The Audit Committee or its chairpre-approved all audit, services, audit-related, services, tax services and other services provided during 2015.2017.

Report of the Company’s Audit Committee

The Audit Committee of the Board of Directors is responsible for providing independent, objective oversight of ourthe financial reporting processes and internal controls.controls of Sealed Air Corporation, or Sealed Air. The Audit Committee operates under a written charter approved by the Board of Directors.Board. A copy of the current charter is available on the Company’s web siteSealed Air’s website atwww.sealedair.com www.sealedair.com..

Management is responsible for ourSealed Air’s system of internal control and financial reporting processes, for the preparation of consolidated financial statements in accordance with U.S. generally accepted accounting principles and for the annual report on ourSealed Air’s internal control over financial reporting. The independent auditor is responsible for performing an independent audit of the Company’sSealed Air’s consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board, (PCAOB)or PCAOB, and for issuing a report on the financial statements and the effectiveness of ourSealed Air’s internal control over financial reporting. The Audit Committee’s responsibility is to monitor and oversee these processes.

In connection with these responsibilities, the Audit Committee met with management and Ernst & Young LLP, (“EY”),or EY, the independent auditor of Sealed Air, to review and discuss the December 31, 20152017 audited consolidated financial statements. Our managementManagement represented that weSealed Air had prepared the consolidated financial statements in accordance with U.S. generally accepted accounting principles. The Audit Committee discussed with EY the matters required by PCAOB onin accordance with Auditing Standard No. 16, “Communications With Audit Committees.”

The Audit Committee received from EY the written communication that is required by PCAOB Rule 3526, “Communication with Audit Committees Concerning Independence,” and the Audit Committee discussed with EY that firm’s independence. The Audit Committee also considered whether EY’s provision ofnon-audit services and the audit andnon-audit fees paid to EY were compatible with maintaining that firm’s independence. On the basis of these reviews, the Audit Committee determined that EY has the requisite independence.

Management completed the documentation, testing and evaluation of ourSealed Air’s system of internal control over financial reporting as of December 31, 20152017 as required by Section 404 of the Sarbanes-Oxley Act of 2002. The Audit Committee received periodic updates from management and from EY at Committee meetings throughout the year and provided oversight of the process. Prior to filing the Company’sSealed Air’s Annual Report on Form10-K for the year ended December 31, 20152017 with the SEC, the Audit Committee also reviewed management’s report on the effectiveness of ourSealed Air’s internal control over financial reporting contained in ourSealed Air’s Form10-K, as well as the Report of Independent Registered Public Accounting Firmregistered public accounting firm provided by EY, also included in our suchForm 10-K. EY’s report included in ourSealed Air’s Form10-K related to its audit of ourSealed Air’s consolidated financial statements and the effectiveness of ourSealed Air’s internal control over financial reporting.

Based upon the Audit Committee’s discussions with management and the independent auditorEY and the Audit Committee’s review of the information provided by, and the representations of, management and the independent auditor,EY, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements as of and for the year ended December 31, 20152017 be included in ourSealed Air’s Annual Report on Form10-K for the year ended December 31, 2015, to be filed with the SEC.2017. The Audit Committee selected EY as ourSealed Air’s independent auditor for the fiscal year ending December 31, 2016,2018, subject to ratification of the selection by our stockholders.the stockholders of Sealed Air.

Audit Committee

Jerry R. Whitaker, Chair

Lawrence R. Codey

Patrick Duff

Kenneth P. ManningHenry R. Keizer

Stockholder Proposals for the 20172019 Annual Meeting

In order for stockholder proposals for the 2017 annual meeting2019 Annual Meeting of stockholdersStockholders to be eligible for inclusion in the Company’s proxy statement and form of proxy card for that meeting, the Companywe must receive themthe proposals at its principal office at 8215 Forest Pointour corporate headquarters, 2415 Cascade Pointe Boulevard, Charlotte, North Carolina 28273,28208, directed to the attention of the Corporate Secretary, no later than December 9, 2016.7, 2018. In addition, all proposals will need to comply with Rule14a-8 of the Securities Exchange Act of 1934, as amended, which sets forth the requirements for the inclusion of stockholder proposals in Company-sponsoredour sponsored proxy materials.

Our Bylaws set forth the procedures you must follow in order to nominate a director for election or present any other proposal at an annual meeting of our stockholders, other than proposals intended to be included in Company-sponsoredour sponsored proxy materials. In addition to any other applicable requirements, for business to be properly brought before the 2017 annual meeting2018 Annual Meeting by a stockholder, the stockholder must have given us timely notice thereof in proper written form, including all required information, to the Company at 8215 Forest Pointour corporate headquarters, 2415 Cascade Pointe Boulevard, Charlotte, North Carolina 28273,28208, directed to the attention of the Secretary. To be timely, we must receive a stockholder’s notice to theCorporate Secretary, at our principal office between January 19, 201717, 2019 and our close of business on February 18, 2017, provided that, if the 2017 annual meeting is called for a date that is not within 30 days before or 60 days after May 19, 2017, then the Company must receive the notice from the stockholder no later than the tenth day following the day on which the date of such meeting is publicly disclosed.16, 2019. We have posted a copy of our Bylaws on our web sitewebsite atwww.sealedair.com www.sealedair.com. .

Delivery of Documents to Security Holders Sharing an Address

SEC rules permit the deliveryus to deliver a single copy of one annual reportour 2017 Annual Report to security holdersStockholders and proxy statement,this Proxy Statement, or one Notice of Internet Availability of Proxy Materials, to two or more security holdersstockholders who share an address, unless we have received contrary instructions from one or more of the security holders. This delivery method, which is known as “householding.“householding,Householding may providecan reduce our expenses for printing and mailing cost savings.mailing. Any stockholder of record at a shared address to which a single copy of the documents was delivered who wishes to receivemay request a separate copy of an annual reportthe 2017 Annual Report to security holdersStockholders and proxy statement,this Proxy Statement, or a separate Notice of Internet Availability of Proxy Materials, as applicable, can contact us by (a) calling Shareholder Services at(980) 221-3236, by (b) sending a letter to Sealed Air Corporation,us at Shareholder Services, 8215 Forest Point2415 Cascade Pointe Boulevard, Charlotte, North Carolina 2827328208, or by(c) sending us ane-mail atinvestor.relations@sealedair.com and we will promptly deliver to you the requested documents.. Stockholders of record who wish to receive separate copies of these documents in the future canmay also contact us as stated above. Stockholders of record who share an address and are receiving multiple copies of theour annual reports to security holdersstockholders and proxy statementsProxy Statements, or of our Notices of Internet Availability of Proxy Materials, canmay contact us as stated above to request delivery of a single copy of such documents. Stockholders who hold their shares in “street name,” that is, through a bank, broker or other holder of record,name” and who wish to change their householding instructions or obtain copies of these documents,proxy materials should follow the instructions on their voting instruction forms or contact the holders of record.

Other Matters

TheWe will pay all expenses of preparing, printing and mailing, this notice of meeting and proxy material, making them available over the Internet, andthese proxy materials, as well as all other expenses of soliciting proxies will be borne by us.for the Annual Meeting on behalf of the Board of Directors. Georgeson LLC.LLC will solicit proxies by personal interview, mail, telephone, facsimile,e-mail, Internet or other means of electronic transmission and will request brokerage houses, banks, and other custodians, nominees and fiduciaries to forward soliciting material to the beneficial owners of the common stock held of record by these persons. We will pay Georgeson a fee of $14,000 coveringto Georgeson LLC for its services and will reimburse Georgesonit for payments made to brokers and other nominees for their expenses in forwarding soliciting material. In addition, certain of our directors, officers and employees, who will receive no compensation in addition to their regular salary or other compensation, may solicit proxies by personal interview, mail, telephone, facsimile,e-mail, Internet or other means of electronic transmission.

On behalf of the Board of Directors,

Norman D. Finch Jr.THOMAS C. LAGALY

Vice President, Acting General Counsel

and Secretary

Charlotte, North Carolina

April 8, 20165, 2018

Annex A

Annex A

SEALED AIR CORPORATION

STANDARDS FOR DIRECTOR INDEPENDENCE

October 23, 2008

Under the Corporate Governance Guidelines adopted by the Board of Directors of Sealed Air Corporation and the requirements of the New York Stock Exchange (NYSE), the Board of Directors must consist of a majority of independent directors. Its three standing committees—the Audit Committee, the Nominating and Corporate Governance Committee, and the Organization and Compensation Committee—are composed entirely of directors who are independent.

For a director to be deemed “independent,” the Board of Directors must affirmatively determine, based on all relevant facts and circumstances, that the director has no material relationships with the CompanySealed Air (either directly or as a partner, shareholder or officer of an organization that has a relationship with the Company). To assist with the determination of independence, the Board of Directors has established categorical standards consistent with the corporate governance standards of the NYSE. These categorical standards require that, to be independent, a director may not have a material relationship with the Company. Even if a director meets all categorical standards for independence described below, the Board of Directors reviews all other relationships with the Company in order to conclude that each independent director has no material relationship with the Company.

The Board of Directors annually reviews the independence of allnon-employee directors. The Company identifies the directors that it has determined to be independent and discloses the basis for that determination in its annual proxy statement for the election of directors.

Material Relationships with the Company

A director would be deemed to have a material relationship with the Company in any of the following circumstances:

 

the director is or has been within the last three years an employee, or has an immediate family member who is or has been within the last three years an executive officer, of the Company or any of its subsidiaries;

 

the director has received, or a member of the director’s immediate family has received, during any twelve-month period within the last three years, more than $120,000 in direct compensation from the Company or any of its subsidiaries other than director and committee fees and pension or other forms of deferred compensation for prior service (provided that such compensation is not contingent in any way on continued service and provided further that compensation received by a director for former service as an interim chairman or executive officer or by an immediate family member for service as an employee other than an executive officer need not be considered);

 

(i)(a) the director is, or has a member of the director’s immediate family who is, a current partner of a firm that is the internal or external auditor of the Company or any of its subsidiaries, (ii)(b) the director is a current employee of such a firm, (iii)(c) the director has an immediate family member who is a current employee of such a firm and who personally works on the audit of the Company or any of its subsidiaries, or (iv) the director was, or has a member of the director’s immediate family who was, within the last three years (but is no longer) a partner or employee of such a firm and personally worked on the audit of the Company or any of its subsidiaries;

 

the director is employed, or has a member of the director’s immediate family who is employed, or has been within the last three years employed, as an executive officer of another company where any of the Company’sour present executive officers at the same time serves or served on that company’s compensation committee;

the director is an employee, or has a member of the director’s immediate family who is an executive officer, of another company that makes payments to, or receives payments from, the Company and

its subsidiaries for property or services in an amount which, in any of the last three fiscal years, exceeded the greater of $1 million or 2% of such other company’s consolidated gross revenues; or

 

the director serves as an executive officer of a charitable organization to which the Company has contributed, in any one year within the preceding three years, in excess of the greater of $1 million or 2% of the charitable organization’s consolidated gross revenues.

Material Relationships with an Executive Officer

Consistent with the expectation thatnon-employee directors will not have professional or financial relationships (includingside-by-side investments) that could impair their independence, a director will be deemed to have a material relationship with the Company and not be considered independent, if any of the following apply:

 

the director receives, or has an immediate family member who receives, any direct compensation from an executive officer or any immediate family member of an executive officer of the Company;

 

an entity affiliated with the director or with an immediate family member of a director receives any payment from any executive officer of the Company, other than in a routine, commercial or consumer transaction with terms no more favorable than those customarily offered to similarly-situated persons;

 

the director or an immediate family member of a director receives, or is affiliated with an entity that receives, any payment, whether direct or indirect, for legal, accounting, financial or other professional services provided to an executive officer of the Company or an immediate family member of an executive officer; and

 

the director or an immediate family member of a director is a current executive officer of atax-exempt organization that receives contributions from an executive officer of the Company, in an amount that exceeds the lesser of $100,000 or 1% of the tax exempt organization’s consolidated gross revenues in that fiscal year.

Relationships That Are Not Material

A director generally will not be deemed to have a material relationship with the Company and will be considered independent, if any of the following, when viewed singularly, apply:

 

a transaction in which the director’s interest arises solely from the director’s position as a director of another corporation or organization that is a party to the transaction, and the director did not participate in furtherance or approval of the transaction and the transaction was negotiated on an arms’ length basis

 

a transaction in which the director’s interest arises solely from the director’s ownership of an equity or limited partnership interest in the other party to the transaction, so long as the aggregate ownership of all directors, director nominees, executive officers and five percent stockholders of the Company (together with their immediate family members) does not exceed 5% of the equity or partnership interests in that other party;

 

a transaction in which the director’s interest arises solely from the director’s status as an employee ornon-controlling equity owner of a company to which the Company was indebted at the end of the Company’sour last full fiscal year in an aggregate amount not in excess of 5% of the Company’sour total consolidated assets;

ownership by the director of equity or other securities of the Company, as long as the director is not the beneficial owner, directly or indirectly, of more than 10% of any class of the Company’sour equity securities;

 

the receipt by the director of compensation for service as a member of the Board of Directors or any committee thereof, including regular benefits received by othernon-employee directors;

any other relationship or transaction that is not listed above and in which the amount involved does not exceed $120,000;

 

any immediate family member of the director having any of the above relationships; and

 

any relationship between the Company and anon-immediate family member of the director.

Definitions

For purposes of these standards:

 

An “executive officer” means an “officer” for the purposes of Rule16a-1(f) under the Securities Exchange Act of 1934.

 

An “immediate family member” includes a person’s spouse, parents, children, siblings, mothers andfathers-in-law, sons anddaughters-in-law, brothers andsisters-in-law, and anyone (other than tenants and domestic employees) who shares such person’s home. When applying the three-year look-back provisions above, the Company need not consider individuals who are no longer immediate family members as a result of legal separation or divorce, or those who have died or become incapacitated.

Directors have an affirmative obligation to inform the Board of any material changes in their circumstances or relationships that may impact their designation by the Board as “independent.” This obligation includes all business relationships between, on the one hand, directors or members of their immediate family, and, on the other hand, the Company and its affiliates or members of senior management and their affiliates, whether or not such business relationships are subject to any other approval requirements of the Company.

Annex B

Annex B

POLICY AND PROCEDURE FOR STOCKHOLDER NOMINATIONS TO THE BOARD

 

1.The Nominating and Corporate Governance Committee will consider director candidates recommended by stockholders for open positions on the Board. This policy addresses the consideration of director candidates recommended by stockholders for nomination by the Board.

 

2.Recommendations should be submitted to the Secretary of the Corporation in writing, along with a statement signed by the candidate acknowledging that:

 

 a.the candidate, if elected, will serve as a director of the Corporation and will represent all stockholders of the Corporation in accordance with applicable laws and the Corporation’s charter and Bylaws; and

 

 b.the candidate, if elected, will comply with the Corporation’s Code of Conduct for Directors, Corporate Governance Guidelines, and any other applicable rule, regulation, policy or standard of conduct applicable to the Board of Directors and its individual members.

In addition, each candidate must submit a fully completed and signed Questionnaire for Directors and Officers on the Corporation’s standard form and provide any additional information requested by the Corporation, including any information that would be required to be included in a proxy statement in which the candidate is named as a nominee for election as a director and information showing that the candidate meets the Board’s qualifications for nomination as a director and for service on the committees of the Board. Also, a candidate must be available for interviews with members of the Corporation’s Board as provided in the Corporation’s process for identifying and evaluating nominees for director.

 

3.In addition to the information to be provided by the candidate, at the time of submitting the recommendation, the stockholder making the recommendation should submit the following information in writing:

 

 a.the name and address of the stockholder as they appear in the Corporation’s books and the class and number of shares of the Corporation’s stock held beneficially and of record by the stockholder; and

 

 b.a description of all arrangements or understandings among the stockholder and the candidate and any other persons (naming them) pursuant to which the recommendation is being made by the stockholder.

 

4.A stockholder who wishes to recommend a candidate for election as a director at the next annual meeting of stockholders must submit the information described in items 2 and 3 above for receipt by the Secretary of the Corporation sufficiently in advance of the Board’s approval of nominations for the Annual Meeting to permit the Nominating and Corporate Governance Committee and the Board to complete its evaluation of the candidate, which will generally be no later than 120 days prior to the first anniversary of the Corporation’s previous annual meeting of stockholders.

 

5.Candidates who are recommended by a stockholder at a time when there are no open positions on the Board and are considered qualified candidates by the Nominating and Corporate Governance Committee may be placed on the rolling list of candidates for open Board positions maintained by that Committee, generally for a period of up to 24 months from the date that the recommendation was received by the Secretary of the Corporation.

 

6.Candidates recommended by stockholders will be evaluated by the Nominating and Corporate Governance Committee on the same basis as candidates identified by other means, including consideration of the qualifications for nomination to the Board most recently approved by the Board.

 

7.Any director nomination submitted by a stockholder for presentation by the stockholder at an annual or special meeting of stockholders must be made in accordance with the advance notice requirements contained in Section 2.12 of the Corporation’s Bylaws.

Annex C

Annex C

QUALIFICATIONS FOR NOMINATION TO THE BOARD

The Nominating and Corporate Governance Committee will consider the following factors, at a minimum, in recommending to the Board potential new Board members or the continued service of existing members:

 

1.Directors should be of the highest ethical character and share the values of Sealed Air Corporation as reflected in its Code of Conduct.

 

2.Directors should be highly accomplished in their respective fields, with superior credentials and recognition.

 

3.In selecting Directors, the Board should seek to achieve a mix of Board members that enhances the diversity of background, skills and experience on the Board, including with respect to age, gender, international background, race, ethnicity and specialized experience.

 

4.Each Director should have relevant expertise and experience and be able to offer advice and guidance to the chief executive officerCEO based on that expertise and experience.

 

5.In selecting Directors, the Board should generally seek active and former executives of public companies and of other complex organizations, including government, educational and other not for profit institutions, or persons with specialized expertise in a discipline that is relevant to service as a Director of Sealed Air Corporation.

 

6.The majority of Directors should be independent under applicable listing standards, Board and Committee guidelines and any applicable legislation.

 

7.Each Director should be “financially literate,” and some should be considered “financial experts” as described in applicable listing standards, legislation and Audit Committee or Board guidelines.

 

8.Each Director should have sound business judgment, be able to work effectively with others, have sufficient time to devote to the affairs of the Company, and be free from conflicts of interest. Also, all Directors should be independent of any particular constituency and be able to represent all stockholders of the Company.

 

9.Each new Director should confirm his or her willingness and ability to serve for a number of years as a Director prior to retirement from the Board.

 

10.The Nominating and Corporate Governance Committee will also consider any other factors related to the ability and willingness of a new member to serve or an existing member to continue his or her service.

Annex D

SEALED AIR CORPORATION

DIRECTIONS TO THE ANNUAL MEETING OF STOCKHOLDERS2014 OMNIBUS INCENTIVE PLAN

Crowne Plaza Charlotte Executive Park(as amended and restated effective May 17, 2018)

5700 Westpark Drive

Charlotte, NC 28217

(704) 527-9650

From Charlotte-Douglas International Airport:

Take Billy Graham Parkway South to Tyvola Road/Coliseum Area Exit. Travel on Tyvola Rd. approx. 4 miles. Turn right at light after crossing over I-77 (Westpark Drive). Stay right atSealed Air Corporation, a Delaware corporation, sets forth herein the fork, Crowne Plaza will be all the way down on the right.

From the North:

I-77 South—Exit 5 at Tyvola Road. Turn left across I-77, then right at the first light (Westpark Drive). Stay right at the fork, Crowne Plaza will be all the way down on the right.

I-85—Take I-77 South, exit 5 at Tyvola Road. Turn left across I-77, then right at the first light (Westpark Drive). Stay right at the fork, Crowne Plaza will be all the way down on the right.

From the South:

I-77 North—Exit 5 at Tyvola Road. Turn right, then right at the first light (Westpark Drive). Stay right at the fork, Crowne Plaza will be all the way down on the right.

I-85—Take I-485 (South/East) to I-77 North. Exit 5 at Tyvola Road. Turn right, then right at the first light (Westpark Drive). Stay right at the fork, Crowne Plaza will be all the way down on the right.

I-26—Take I-77 North. Exit 5 at Tyvola Road. Turn right, then right at the first light (Westpark Drive). Stay right at the fork, Crowne Plaza will be all the way down on the right.


LOGOterms of its 2014 Omnibus Incentive Plan, as follows:

 

1.Electronic Voting InstructionsPURPOSE

Available 24 hours a day, 7 days a week!

Instead of mailing your proxy, you may choose one of the voting methods outlined below to vote your proxy.

VALIDATION DETAILS ARE LOCATED BELOW IN THE TITLE BAR.

Proxies submitted by the Internet or telephone must be received by 11:59 P.M. (Eastern time) on May 18, 2016.

Vote by Internet

• Go towww.investorvote.com/SEE

• Or scan the QR code with your smartphone

• Follow the steps outlined on the secure website

Vote by telephone

  • Call toll free 1-800-652-VOTE (8683) within the USA, US territories

    & Canada on a touch tone telephone

Using ablack inkpen, mark your votes with anXas shown in this example. Please do not write outside the designated areas.

x

  • Follow the instructions provided by the recorded message

The Plan is intended to enhance the Company’s and its Affiliates’ (as defined herein) ability to attract and retain highly qualified officers, Non-Employee Directors (as defined herein), key employees, consultants and advisors, and to motivate such officers, Non-Employee Directors, key employees, consultants and advisors to serve the Company and its Affiliates and to expend maximum effort to improve the business results and earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, other stock-based awards and cash awards. Any of these awards may, but need not, be made as performance incentives to reward attainment of performance goals in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein. The Plan was originally adopted and became effective on May 22, 2014, at which time the Plan replaced, and no further awards were permitted to be made under, the Predecessor Plans (as defined herein). This amendment and restatement of the Plan becomes effective upon approval of the Company’s stockholders at the 2018 Annual Meeting of Stockholders for the purposes of (i) adding shares to the Plan’s award pool and (ii) making certain design changes related to share recycling for Options and SARs, minimum vesting periods for Awards and accrual of dividends and dividend equivalents on unvested Awards.

LOGO

2.DEFINITIONS

For purposes of interpreting the Plan and related documents (including Award Agreements), the following definitions shall apply:

2.1. “Affiliate” means any company or other trade or business that “controls,” is “controlled by” or is “under common control” with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including, without limitation, any Subsidiary.

q2.2. “Annual Incentive Award” means a cash-based Performance Award with a performance period that is the Company’s fiscal year or other 12-month (or shorter) performance period as specified under the terms of the Award as approved by the Committee.

  IF YOU HAVE NOT VOTED VIA THE INTERNETOR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  2.3. “Annual Retainer” means an amount established by the Board from time to time, payable to a Non-Employee Director for service on the Board for the period beginning on the date of an annual meeting of stockholders of the Company at which the Non-Employee Director is elected and continuing until the next annual meeting of stockholders of the Company.

q2.4. “Award” means a grant of an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Other Stock-based Award or cash award under the Plan.

2.5. “Award Agreement” means a written agreement between the Company and a Grantee, or notice from the Company or an Affiliate to a Grantee that evidences and sets out the terms and conditions of an Award.

2.6. “Board” means the Board of Directors of the Company.

2.7. “Change in Control” shall have the meaning set forth inSection 16.3.2.

2.8. “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. References to the Code shall include the valid and binding governmental regulations, court decisions and other regulatory and judicial authority issued or rendered thereunder.

2.9. “Committee” means the Organization and Compensation Committee of the Board or any committee or other person or persons designated by the Board to administer the Plan. The Board will cause the Committee to satisfy the applicable requirements of any stock exchange on which the Common Stock may then be listed. For purposes of Awards to Covered Employees intended to constitute “performance-based compensation” under Section 162(m), to the extent required by Section 162(m), Committee means all of the members of the Committee who are “outside directors” within the meaning of Section 162(m). For purposes of Awards to Grantees who are subject to Section 16 of the Exchange Act, Committee means all of the members of the Committee who are “non-employee directors” within the meaning of Rule 16b-3 adopted under the Exchange Act. All references in the Plan to the Board shall mean such Committee or the Board.

2.10. “Company” means Sealed Air Corporation, a Delaware corporation, or any successor corporation.

2.11. “Common Stock” or “Stock” means a share of common stock of the Company, par value $0.10 per share.

2.12. “Continuing Director” means a director of the Company who is serving as such on the Effective Date and any person who is approved as a nominee or elected to the Board by a majority of the Continuing Directors who are then members of the Board, but excluding, for this purpose, any such person whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consent by or on behalf of a Person other than the Board.

2.13. “Corporate Transaction” means a reorganization, merger, statutory share exchange, consolidation, sale of all or substantially all of the Company’s assets, or the acquisition of assets or stock of another entity by the Company, or other corporate transaction involving the Company or any of its Subsidiaries.

2.14. “Covered Employee” means a Grantee who is a “covered employee” within the meaning of Section 162(m) as qualified bySection 12.4 herein.

2.15. “Effective Date” means May 22, 2014, the date the Plan was approved by the Company’s stockholders.

2.16. “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended.

2.17. “Fair Market Value” of a share of Common Stock as of a particular date shall mean (i) if the Common Stock is listed on a national securities exchange, the closing or last price of the Common Stock on the composite tape or other comparable reporting system for the applicable date, or if the

applicable date is not a trading day, the trading day immediately preceding the applicable date, or (ii) if the shares of Common Stock are not then listed on a national securities exchange, the closing or last price of the Common Stock quoted by an established quotation service for over-the-counter securities, or (iii) if the shares of Common Stock are not then listed on a national securities exchange or quoted by an established quotation service for over-the-counter securities, or the value of such shares is not otherwise determinable, such value as determined by the Board in good faith in its sole discretion.

2.18. “Family Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of the applicable individual, any person sharing the applicable individual’s household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of the beneficial interest, a foundation in which any one or more of these persons (or the applicable individual) control the management of assets, and any other entity in which one or more of these persons (or the applicable individual) own more than fifty percent of the voting interests.

2.19. “Grant Date” means, as determined by the Board, the latest to occur of (i) the date as of which the Board approves an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award underSection 6 hereof, or (iii) such other date as may be specified by the Board in the Award Agreement.

2.20. “Grantee”means a person who receives or holds an Award under the Plan.

2.21. “Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time.

2.22. “Interim Retainer” means an amount established by the Board from time to time payable to a Non-Employee Director for service on the Board if the Non-Employee Director is elected or appointed to the Board other than at an annual meeting of the stockholders of the Company. Unless otherwise determined by the Board, the amount of the Interim Retainer will be equal to the amount of the most recent Annual Retainer, prorated for the period of service by the Non-Employee Director through the next annual meeting of stockholders of the Company.

2.23. “Non-Employee Director” means a member of the Board who is not an officer or employee of the Company or any Subsidiary.

2.24. “Non-qualified Stock Option” means an Option that is not an Incentive Stock Option.

2.25. “Option”means an option to purchase one or more shares of Stock pursuant to the Plan.

2.26. “Option Price” means the exercise price for each share of Stock subject to an Option.

2.27. “Other Stock-based Awards” means Awards consisting of Stock units, or other Awards, valued in whole or in part by reference to, or otherwise based on, Common Stock, other than Options, Stock Appreciation Rights, Restricted Stock, and Restricted Stock Units.

2.28. “Outstanding Voting Securities” means the outstanding voting securities of the Company entitled to vote generally in the election of directors.

2.29. “Performance Award”means an Award made subject to the attainment of performance goals (as described inSection 12) over a performance period established by the Committee, and includes an Annual Incentive Award.

2.30. “Person”means an individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act.

2.31. “Plan” means this Sealed Air Corporation 2014 Omnibus Incentive Plan, as amended from time to time.

2.32. “Predecessor Plans” means the Sealed Air Corporation 2002 Stock Plan for Non-Employee Directors, the 2005 Contingent Stock Plan of Sealed Air Corporation, and the Sealed Air Corporation Performance-Based Compensation Program.

2.33. “Purchase Price” means the purchase price for each share of Stock pursuant to a grant of Restricted Stock.

2.34. “Restatement Effective Date” shall mean the date of the 2018 Annual Meeting of Stockholders.

2.35. “Restricted Period” shall have the meaning set forth inSection 10.1.

2.36. “Restricted Stock”means shares of Stock, awarded to a Grantee pursuant toSection 10 hereof.

2.37. “Restricted Stock Unit” means a bookkeeping entry representing the equivalent of shares of Stock, awarded to a Grantee pursuant toSection 10 hereof.

2.38. “Retainer” means either an Annual Retainer or Interim Retainer.

2.39. “SAR Exercise Price” means the per share exercise price of a SAR granted to a Grantee underSection 9 hereof.

2.40. “SEC”means the United States Securities and Exchange Commission.

2.41. “Section 162(m)” means Section 162(m) of the Code.

2.42. “Section 409A” means Section 409A of the Code.

2.43. “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended.

2.44. “Separation from Service” means a termination of Service by a Service Provider, as determined by the Board, which determination shall be final, binding and conclusive; provided if any Award governed by Section 409A is to be distributed on a Separation from Service, then the definition of Separation from Service for such purposes shall comply with the definition provided in Section 409A.

2.45. “Service” means service as a Service Provider to the Company or an Affiliate. Unless otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service, so long as such Grantee continues to be a Service Provider to the Company or an Affiliate.

2.46. “Service Provider” means an employee, officer, Non-Employee Director, consultant or advisor of the Company or an Affiliate.

2.47. “Stock Appreciation Right” or“SAR” means a right granted to a Grantee underSection 9 hereof.

2.48. “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code.

2.49. “Substitute Award” means any Award granted in assumption of or in substitution for an award of a company or business acquired by the Company or a Subsidiary or with which the Company or an Affiliate combines.

2.50. “Ten Percent Stockholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, its parent or any of its Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied.

2.51. “Termination Date” means the date that is ten (10) years after the Restatement Effective Date, unless the Plan is earlier terminated by the Board underSection 5.2 hereof.

 

 A 3.The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.+

PROPOSALS FORADMINISTRATION OF THE SEALED AIR CORPORATION 2016 ANNUAL MEETING OF STOCKHOLDERS

     For   Against Abstain   For Against Abstain   For Against Abstain 
 

 

01 -

 

 

Election of Michael Chu as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

02 -

 

 

Election of Lawrence R. Codey as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

03 -

 

 

Election of Patrick Duff as a Director.

 

 

¨

 

 

¨

 

 

¨

 
 04 - Election of Jacqueline B. Kosecoff as a Director. ¨ ¨ ¨ 05 - Election of Neil Lustig as a Director. ¨ ¨ ¨ 06 - Election of Kenneth P. Manning as a Director. ¨ ¨ ¨ 
 07 - Election of William J. Marino as a Director. ¨ ¨ ¨ 08 - Election of Jerome A. Peribere as a Director. ¨ ¨ ¨ 09 - Election of Richard L. Wambold as a Director. ¨ ¨ ¨ 
 10 - Election of Jerry R. Whitaker as a Director. ¨ ¨ ¨ 11 - Advisory vote to approve our executive compensation. ¨ ¨ ¨ 12 - Ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2016. ¨ ¨ ¨ 
 In accordance with the Proxy Committee’s discretion, upon such other matters as may properly come before the meeting.           

 B PLANNon-Voting Items

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Mark the box to the right if you plan to attend the Annual Meeting.

 

3.1.    General.

The Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s certificate of incorporation and bylaws and applicable law. The Board shall have the power and authority to delegate its responsibilities hereunder to the Committee, which shall have full authority to act in accordance with its charter, and with respect to the authority of the Board to act hereunder, all references to the Board shall be deemed to include a reference to the Committee, to the extent such power or responsibilities have been delegated. Except as specifically provided inSection 15 or as otherwise may be required by applicable law, regulatory requirement or the certificate of incorporation or the bylaws of the Company, the Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan. The Committee shall administer the Plan; provided that, the Board shall retain the right to exercise the authority of the Committee to the extent consistent with applicable law and the applicable requirements of any securities exchange on which the Common Stock may then be listed. The interpretation and construction by the Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. Without limitation, the Board shall have full and final authority, subject to the other terms and conditions of the Plan, to:

(i) designate Grantees;

(ii) determine the type or types of Awards to be made to a Grantee;

(iii) determine the number of shares of Stock to be subject to an Award;

(iv) establish the terms and conditions of each Award (including, but not limited to, the Option Price of any Option, the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock subject thereto, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options);

(v) prescribe the form of each Award Agreement; and

(vi) amend, modify, or supplement the terms of any outstanding Award including the authority, in order to effectuate the purposes of the Plan, to modify Awards to foreign nationals or individuals who are employed outside the United States to recognize differences in local law, tax policy, or custom.

To the extent permitted by applicable law, the Board may delegate its authority as identified herein to any individual or committee of individuals (who need not be directors), including without limitation the authority to make Awards to Grantees who are not subject to Section 16 of the Exchange Act or who are not Covered Employees. To the extent that the Board delegates its authority to make Awards as provided by thisSection 3.1, all references in the Plan to the Board’s authority to make Awards and determinations with respect thereto shall be deemed to include the Board’s delegate. Any such delegate shall serve at the pleasure of, and may be removed at any time by the Board.

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1  U  P  X                                          +3.2.    No Repricing.

Notwithstanding any provision herein to the contrary, the repricing of Options or SARs is prohibited without prior approval of the Company’s stockholders. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an Option or SAR to lower its Option Price or SAR Exercise Price; (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing for cash or canceling an Option or SAR at a time when its Option Price or SAR Exercise Price is greater than the Fair Market Value of the underlying shares in exchange for another Award, unless the cancellation and exchange occurs in connection with a change in capitalization or similar change underSection 16. A cancellation and exchange under clause (iii) would be considered a “repricing” regardless of whether it is treated as a “repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of the Grantee.

 3.3.    Award Agreements; Clawbacks.

The grant of any Award may be contingent upon the Grantee executing the appropriate Award Agreement. The Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any employment agreement, non-competition agreement, any agreement prohibiting solicitation of employees or clients of the Company or any Affiliate thereof or any confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in competition with the Company or any Affiliate thereof, to the extent specified in such Award Agreement applicable to the Grantee. Furthermore, the Company may annul an Award if the Grantee is terminated for “cause” as defined in the applicable Award Agreement.

Awards shall be subject to the requirements of (i) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (ii) similar rules under the laws of any other jurisdiction, (iii) any compensation recovery policies adopted by the Company to implement any such requirements or (iv) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to be applicable to a Grantee.

 

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 3.4.    Deferral Arrangement.

The Board may permit or require the deferral of any Award payment into a deferred compensation arrangement, subject to such rules and procedures as it may establish and in accordance with Section 409A, which may include provisions for the payment or crediting of interest or dividend equivalents, including converting such credits into deferred Stock units.

3.5.    No Liability.

No member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan, any Award or Award Agreement.

3.6.    Minimum Vesting Requirements.

Notwithstanding any other provision of the Plan to the contrary, equity-based Awards granted under the Plan shall vest no earlier than the first anniversary of the date the Award is granted, excluding, for this purpose, any (i) Substitute Awards, (ii) shares delivered in lieu of fully vested cash Awards, and (iii) Awards to Non-employee Directors that vest on the earlier of the one year anniversary of the date of grant or the next annual meeting of stockholders (provided that such vesting period under this clause (iii) may not be less than 50 weeks after grant); provided, that, the Board may grant equity-based Awards without regard to the foregoing minimum vesting requirement with respect to a maximum of five percent (5%) of the available share reserve authorized for issuance under the Plan pursuant toSection 4.1 (subject to adjustment underSection 16); and, provided further, for the avoidance of doubt, that the foregoing restriction does not apply to the Board’s discretion to provide for accelerated exercisability or vesting of any Award, including in cases of retirement, death, disability or a Change in Control, in the terms of the Award or otherwise.

3.7.    Book Entry.

Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for the delivery of stock certificates through the use of book-entry.

4.STOCK SUBJECT TO THE PLAN

4.1.    Authorized Number of Shares.

Subject to adjustment underSection 16, the total number of shares of Common Stock authorized to be awarded under the Plan shall not exceed the sum of (A) 4,250,000, plus (B) the number of shares of Common Stock available for the grant of awards as of the Effective Date under the Predecessor Plans, plus (C) effective upon approval of the Company’s stockholders at the 2018 Annual Meeting of Stockholders, 2,200,000 shares (less any shares of Common Stock for any Awards made on or after March 19, 2018 and before 2018 Annual Meeting of Stockholders). In addition, shares of Common Stock underlying any outstanding award granted under the Predecessor Plans that, following the Effective Date, expires, or is terminated, surrendered or forfeited for any reason without issuance of such shares shall be available for the grant of new Awards under this Plan. As provided inSection 1, no new awards shall be granted under the Predecessor Plans following the Effective Date. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares, treasury shares, or shares purchased on the open market or otherwise, all as determined by the Company from time to time.

4.2.    Share Counting.

4.2.1.    General.

Each share of Common Stock granted in connection with an Award shall be counted as one share against the limit inSection 4.1, subject to the provisions of thisSection 4.2.

4.2.2.    Cash-Settled Awards.

Any Award settled in cash shall not be counted as shares of Common Stock for any purpose under this Plan.

4.2.3.    Expired or Terminated Awards.

If any Award under the Plan expires, or is terminated, surrendered or forfeited, in whole or in part, the unissued Common Stock covered by such Award shall again be available for the grant of Awards under the Plan.

4.2.4.    Payment of Option Price or Tax Withholding in Shares.

4.2.4.1 Restricted Stock, Restricted Stock Units and Other Stock-based Awards.  For an Award of Restricted Stock, Restricted Stock Units or Other Stock-based Award, if shares of Common Stock issuable upon vesting or settlement of the Award, or shares of Common Stock owned by a Grantee (which are not subject to any pledge or other security interest), are surrendered or tendered to the Company in payment of any taxes required to be withheld in respect of an Award in accordance with the terms and conditions of the Plan and any applicable Award Agreement, such surrendered or tendered shares of Common Stock shall again be available for the grant of Awards under the Plan.

4.2.4.2 Stock Options and SARs.  The full number of shares of Common Stock with respect to which an Option or SAR is granted shall count against the aggregate number of shares available for grant under the Plan. Accordingly, (i) if in accordance with the terms of the Plan, a Grantee pays the Option Price for an Option by either tendering previously owned shares or having the Company withhold shares, then such shares surrendered to pay the Option Price shall continue to count against the aggregate number of shares available for grant under the Plan set forth inSection 4.1 above; and (ii) for a share-settled SAR, the gross number of shares with respect to which the SAR is granted shall be counted against the limit inSection 4.1 (i.e., not just the net shares actually issued upon exercise of the SAR). In addition, if in accordance with the terms of the Plan, a Grantee satisfies any tax withholding requirement with respect to any taxable event arising as a result of an Option or SAR by either tendering previously owned shares or having the Company withhold shares, then such shares surrendered to satisfy such tax withholding requirements shall continue to count against the aggregate number of shares available for grant under the Plan set forth inSection 4.1 above. Any shares of Common Stock repurchased by the Company with cash proceeds from the exercise of Options shall not be added back to the pool of shares available for grant under the Plan set forth inSection 4.1 above.

4.2.5.    Substitute Awards.

In the case of any Substitute Award, such Substitute Award shall not be counted against the number of shares reserved under the Plan.

4.3.    Award Limits.

4.3.1.    Incentive Stock Options.

Subject to adjustment underSection 16, 4,250,000 shares of Common Stock available for issuance under the Plan shall be available for issuance under Incentive Stock Options.

4.3.2.    Individual Award Limits for Section 162(m) – Share-Based Awards.

Subject to adjustment underSection 16, the maximum number of each type of Award (other than cash-based Performance Awards) intended to constitute “performance-based compensation” under Section 162(m) granted to any Grantee in any calendar year shall not exceed the following number of shares of Common Stock: (i) Options and SARs: 1 million shares; and (ii) all share-based Performance Awards (including Restricted Stock, Restricted Stock Units and Other Stock-based Awards that are Performance Awards): 1 million shares.

4.3.3.    Individual Award Limits for Section 162(m) – Cash-Based Awards.

The maximum amount of cash-based Performance Awards intended to constitute “performance-based compensation” under Section 162(m) granted to any Grantee in any calendar year shall not exceed the following: (i) Annual Incentive Award: $10 million; and (ii) all other cash-based Performance Awards: $10 million.

4.3.4.    Limits on Awards to Non-Employee Directors.

No more than $500,000 may be granted in share-based Awards under the Plan during any one year to a Grantee who is a Non-Employee Director (based on the Fair Market Value of the shares of Common Stock underlying the Award as of the applicable Grant Date in the case of Restricted Stock, Restricted Stock Units or Other Stock-based Awards, and based on the applicable grant date fair value for accounting purposes in the case of Options or SARs);provided,however, that share-based Awards made to a Grantee who is a Non-Employee Director at such Grantee’s election in lieu of all or a portion of his or her Retainer for service on the Board and any Board committee shall not be counted towards the limit under thisSection 4.3.4.

5.EFFECTIVE DATE, DURATION AND AMENDMENTS

5.1.    Term.

The Plan originally became effective on the Effective Date. This amendment and restatement of the Plan will become effective as of the Restatement Effective Date, provided that it has been approved by the Company’s stockholders. The Plan shall terminate automatically on the ten (10) year anniversary of the Restatement Effective Date and may be terminated on any earlier date as provided inSection 5.2.

5.2.    Amendment and Termination of the Plan.

The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any Awards which have not been made. An amendment shall be contingent on approval of the Company’s stockholders to the extent stated by the Board, required by applicable law or required by applicable stock exchange listing requirements. Notwithstanding the foregoing, any amendment toSection 3.2 shall be contingent upon the approval of the Company’s stockholders. No Awards shall be made after the Termination Date. The applicable terms of the Plan, and any terms and conditions applicable to Awards granted prior to the Termination Date shall survive the termination of the Plan and continue to apply to such Awards. No amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, materially impair rights or obligations under any Award theretofore awarded.

6.AWARD ELIGIBILITY AND LIMITATIONS

6.1.    Service Providers.

Subject to thisSection 6.1, Awards may be made to any Service Provider, including any Service Provider who is an officer, Non-Employee Director, consultant or advisor of the Company or of any Affiliate, as the Board shall determine and designate from time to time in its discretion.

6.2.    Successive Awards.

An eligible person may receive more than one Award, subject to such restrictions as are provided herein.

6.3.    Stand-Alone, Additional, Tandem, and Substitute Awards.

Awards may, in the discretion of the Board, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or any award granted under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any other right of a Grantee to receive payment from the Company or any Affiliate. Such additional,

tandem, and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Board shall have the right to require the surrender of such other Award in consideration for the grant of the new Award. Subject toSection 3.2, the Board shall have the right, in its discretion, to make Awards in substitution or exchange for any other award under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts payable under other plans of the Company or any Affiliate, in which the value of Stock subject to the Award is equivalent in value to the cash compensation (for example, Restricted Stock Units or Restricted Stock).

7.AWARD AGREEMENT

Each Award shall be evidenced by an Award Agreement, in such form or forms as the Board shall from time to time determine. Without limiting the foregoing, an Award Agreement may be provided in the form of a notice which provides that acceptance of the Award constitutes acceptance of all terms of the Plan and the notice. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of such specification such options shall be deemed Non-qualified Stock Options.

8.TERMS AND CONDITIONS OF OPTIONS

8.1.    Option Price.

The Option Price of each Option shall be fixed by the Board and stated in the related Award Agreement. The Option Price of each Option (except those that constitute Substitute Awards) shall be at least the Fair Market Value on the Grant Date of a share of Stock;provided,however, that in the event that a Grantee is a Ten Percent Stockholder as of the Grant Date, the Option Price of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock.

8.2.    Vesting.

Subject toSection 8.3 hereof, each Option shall become exercisable at such times and under such conditions (including, without limitation, performance requirements) as shall be determined by the Board and stated in the Award Agreement.

8.3.    Term.

Each Option shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten (10) years from the Grant Date, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in the related Award Agreement;provided,however, that in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is intended to be an Incentive Stock Option at the Grant Date shall not be exercisable after the expiration of five (5) years from its Grant Date.

8.4.    Limitations on Exercise of Option.

Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, (i) prior to the date the Plan is approved by the stockholders of the Company as provided herein or (ii) after the occurrence of an event which results in termination of the Option.

8.5.    Method of Exercise.

An Option that is exercisable may be exercised by the Grantee’s delivery of a notice of exercise to the Company, setting forth the number of shares of Stock with respect to which the Option is to be exercised, accompanied by full payment for the shares. To be effective, notice of exercise must be made in accordance with procedures established by the Company from time to time.

8.6.    Rights of Holders of Options.

Unless otherwise stated in the related Award Agreement, an individual holding or exercising an Option shall have none of the rights of a stockholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to direct the voting of the subject shares of Stock) until the shares of Stock covered thereby are fully paid and issued to him. Except as provided inSection 16 hereof or the related Award Agreement, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date of such issuance.

8.7.    Delivery of Stock Certificates.

Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a stock certificate or certificates evidencing his or her ownership of the shares of Stock subject to the Option.

8.8.    Limitations on Incentive Stock Options.

An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an employee of the Company or any Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates) does not exceed $100,000. This limitation shall be applied by taking Options into account in the order in which they were granted.

9.TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

9.1.    Right to Payment.

A SAR shall confer on the Grantee a right to receive, upon exercise thereof, the excess of (i) the Fair Market Value of one share of Stock on the date of exercise over (ii) the SAR Exercise Price, as determined by the Board. The Award Agreement for a SAR (except those that constitute Substitute Awards) shall specify the SAR Exercise Price, which shall be fixed on the Grant Date as not less than the Fair Market Value of a share of Stock on that date. SARs may be granted alone or in conjunction with all or part of an Option or at any subsequent time during the term of such Option or in conjunction with all or part of any other Award. A SAR granted in tandem with an outstanding Option following the Grant Date of such Option shall have a grant price that is equal to the Option Price;provided,however, that the SAR’s grant price may not be less than the Fair Market Value of a share of Stock on the Grant Date of the SAR to the extent required by Section 409A.

9.2.    Other Terms.

The Board shall determine at the Grant Date, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following Separation from Service or upon other conditions, the method of exercise, whether or not a SAR shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR.

9.3.    Term of SARs.

The term of a SAR granted under the Plan shall be determined by the Board, in its sole discretion;provided,however, that such term shall not exceed ten (10) years.

9.4.    Payment of SAR Amount.

Upon exercise of a SAR, a Grantee shall be entitled to receive payment from the Company (in cash or Stock, as determined by the Board) in an amount determined by multiplying:

(i)the difference between the Fair Market Value of a share of Stock on the date of exercise over the SAR Exercise Price; by

(ii)the number of shares of Stock with respect to which the SAR is exercised.

10.TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS

10.1.    Restrictions.

At the time of grant, the Board may, in its sole discretion, establish a period of time (a “Restricted Period”) and any additional restrictions including the satisfaction of corporate or individual performance objectives applicable to an Award of Restricted Stock or Restricted Stock Units in accordance withSection 12.1 and12.2. Each Award of Restricted Stock or Restricted Stock Units may be subject to adifferent Restricted Period and additional restrictions. Neither Restricted Stock nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other applicable restrictions.

10.2.    Restricted Stock Certificates.

The Company shall issue stock, in the name of each Grantee to whom Restricted Stock has been granted, stock certificates or other evidence of ownership representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Board may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be delivered to the Grantee;provided,however, that such certificates shall bear a legend or legends that comply with the applicable securities laws and regulations and make appropriate reference to the restrictions imposed under the Plan and the Award Agreement.

10.3.    Rights of Holders of Restricted Stock.

Unless the Board otherwise provides in an Award Agreement and subject toSection 18.12, holders of Restricted Stock shall have rights as stockholders of the Company, including voting and dividend rights.

10.4.    Rights of Holders of Restricted Stock Units.

10.4.1.     Settlement of Restricted Stock Units.

Restricted Stock Units may be settled in cash or Stock, as determined by the Board and set forth in the Award Agreement. The Award Agreement shall also set forth whether the Restricted Stock Units shall be settled (i) within the time period specified for “short term deferrals” under Section 409A or (ii) otherwise within the requirements of Section 409A, in which case the Award Agreement shall specify upon which events such Restricted Stock Units shall be settled.

10.4.2.     Voting and Dividend Rights.

Unless otherwise stated in the applicable Award Agreement and subject toSection 18.12, holders of Restricted Stock Units shall not have rights as stockholders of the Company, including no voting or dividend or dividend equivalents rights.

10.4.3.     Creditor’s Rights.

A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company. Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement.

10.5.    Purchaseof Restricted Stock.

The Grantee shall be required, to the extent required by applicable law, to purchase the Restricted Stock from the Company at a Purchase Price equal to the greater of (i) the aggregate par value of the shares of Stock represented by such Restricted Stock or (ii) the Purchase Price, if any, specified in the related Award Agreement. If specified in the Award Agreement, the Purchase Price may be deemed paid by Services already rendered. The Purchase Price shall be payable in a form described inSection 11 or, in the discretion of the Board, in consideration for past Services rendered.

10.6.    Deliveryof Stock.

Upon the expiration or termination of any Restricted Period and the satisfaction of any other conditions prescribed by the Board, the restrictions applicable to shares of Restricted Stock or Restricted Stock Units settled in Stock shall lapse, and, unless otherwise provided in the Award Agreement, a stock certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be.

11.FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

11.1.    GeneralRule.

Payment of the Option Price for the shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company, except as provided in thisSection 11.

11.2.    Surrenderof Stock.

To the extent the Award Agreement so provides, payment of the Option Price for shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock may be made all or in part through the tender to the Company of shares of Stock, which shares shall be valued, for purposes of determining the extent to which the Option Price or Purchase Price for Restricted Stock has been paid thereby, at their Fair Market Value on the date of exercise or surrender. Notwithstanding the foregoing, in the case of an Incentive Stock Option, the right to make payment in the form of already owned shares of Stock may be authorized only at the time of grant.

11.3.    CashlessExercise.

With respect to an Option only (and not with respect to Restricted Stock), to the extent permitted by law and to the extent the Award Agreement so provides, payment of the Option Price may be made all or in part by delivery (on a form acceptable to the Company) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described inSection 18.3.

11.4.    OtherForms of Payment.

To the extent the Award Agreement so provides, payment of the Option Price or the Purchase Price for Restricted Stock may be made in any other form that is consistent with applicable laws, regulations and rules, including, but not limited to, the Company’s withholding of shares of Stock otherwise due to the exercising Grantee.

12.TERMS AND CONDITIONS OF PERFORMANCE AWARDS

12.1.    PerformanceConditions.

The right of a Grantee to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions.

12.2.    PerformanceAwards Granted to Designated Covered Employees.

If and to the extent that the Committee determines that a Performance Award to be granted to a Grantee who is designated by the Committee as having the potential to be a Covered Employeeshould qualify as “performance-based compensation” for purposes of Section 162(m), the grant, exercise and/or settlement of such Performance Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in thisSection 12.2. Notwithstanding anything herein to the contrary, the Committee in its discretion may provide for Performance Awards to Covered Employees that are not intended to qualify as “performance-based compensation” for purposes of Section 162(m).

12.2.1.    Performance Goals Generally.

The performance goals for such Performance Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with thisSection 12.2. Performance goals shall be objective and shall otherwise meet the requirements of Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Performance Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or that two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such Performance Awards. Performance goals may, in the discretion of the Committee, be established on a Company-wide basis, or with respect to one or more business units, divisions, subsidiaries or business segments, as applicable. Performance goals may be absolute or relative (to the performance of one or more comparable companies or indices). To the extent consistent with the requirements of Section 162(m), the Committee may determine at the time that goals under thisSection 12are established, the extent to which measurement of performance goals may exclude the impact of charges for restructuring, discontinued operations, extraordinary items, debt redemption or retirement, asset write downs, litigation or claim judgments or settlements, acquisitions or divestitures, foreign exchange gains and losses, and other unusual non-recurring items, and the cumulative effects of tax or accounting changes (each as defined by generally accepted accounting principles and as identified in the Company’s financial statements or other SEC filings). Performance goals may differ for Performance Awards granted to any one Grantee or to different Grantees.

12.2.2.    Business Criteria.

One or more of the following business criteria for the Company, on a consolidated basis, and/or specified subsidiaries or business units of the Company (except with respect to the total stockholder

return and earnings per share criteria), shall be used exclusively by the Committee in establishing performance goals for such Performance Awards: (i) cash flow; (ii) earnings per share, as adjusted for any stock split, stock dividend or other recapitalization; (iii) earnings measures (including EBIT and EBITDA)); (iv) return on equity; (v) total stockholder return; (vi) share price performance, as adjusted for any stock split, stock dividend or other recapitalization; (vii) return on capital; (viii) revenue; (ix) income; (x) profit margin; (xi) return on operating revenue; (xii) brand recognition/acceptance; (xiii) customer metrics (including customer satisfaction, customer retention, customer profitability, or customer contract terms); (xiv) productivity; (xv) expense targets; (xvi) market share; (xvii) cost control measures; (xviii) balance sheet metrics; (xix) strategic initiatives; (xx) implementation, completion or attainment of measurable objectives with respect to recruitment or retention of personnel or employee satisfaction; (xxi) return on assets; (xxii) growth in net sales; (xxiii) the ratio of net sales to net working capital; (xxiv) stockholder value added (net operating profit after tax (NOPAT), excluding non-recurring items, less the Company’s cost of capital); (xxv) improvement in management of working capital items (inventory, accounts receivable or accounts payable); (xxvi) sales from newly-introduced products; (xxvii) successful completion of, or achievement of milestones or objectives related to, financing or capital raising transactions, strategic acquisitions or divestitures, joint ventures, partnerships, collaborations, or other transactions; (xxviii) product quality, safety, productivity, yield or reliability (on time and complete orders); (xxix) funds from operations; (xxx) regulatory body approval for commercialization of a product; (xxxi) debt levels or reduction or debt ratios; (xxxii) economic value; (xxxiii) operating efficiency; (xxxiv) research and development achievements; or (xxxv) any combination of the forgoing business criteria;provided,however, that such business criteria shall include any derivations of business criteria listed above (e.g., income shall include pre-tax income, net income, operating income, etc.).

12.2.3.    Timing for Establishing Performance Goals.

Performance goals shall be established not later than 90 days after the beginning of any performance period applicable to such Performance Awards, or at such other date as may be required or permitted for “performance-based compensation” under Section 162(m).

12.2.4.    Settlement of Performance Awards; Other Terms.

Settlement of Performance Awards shall be in cash, Stock, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance Awards.

12.3.    WrittenDeterminations.

All determinations by the Committee as to the establishment of performance goals, the amount of any Performance Award pool or potential individual Performance Awards and as to the achievement of performance goals relating to Performance Awards, shall be made in writing in the case of any Award intended to qualify under Section 162(m) to the extent required by Section 162(m). To the extent permitted by Section 162(m), the Committee may delegate any responsibility relating to such Performance Awards.

12.4.    Status of Section 12.2 Awards under Section 162(m).

It is the intent of the Company that Performance Awards underSection 12.2 hereof granted to persons who are designated by the Committee as having the potential to be Covered Employees within the meaning of Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of Section 162(m) and regulations thereunder. Accordingly, the terms ofSection 12.2, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent withSection 162(m) and regulations thereunder. The foregoing notwithstanding, because the Committee

cannot determine with certainty whether a given Grantee will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards, as having the potential to be a Covered Employee with respect to that fiscal year or any subsequentfiscal year. If any provision of the Plan or any agreement relating to such Performance Awards does not comply or is inconsistent with the requirements of Section 162(m) or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements.

13.OTHER STOCK-BASED AWARDS

13.1.    Grantof Other Stock-based Awards.

Other Stock-based Awards may be granted either alone or in addition to or in conjunction with other Awards under the Plan. Other Stock-based Awards may be granted in lieu of other cash or other compensation to which a Service Provider is entitled from the Company or may be used in the settlement of amounts payable in shares of Common Stock under any other compensation plan or arrangement of the Company. Subject to the provisions of the Plan, the Committee shall have the sole and complete authority to determine the persons to whom and the time or times at which such Awards shall be made, the number of shares of Common Stock to be granted pursuant to such Awards, and all other conditions of such Awards. Unless the Committee determines otherwise, any such Award shall be confirmed by an Award Agreement, which shall contain such provisions as the Committee determines to be necessary or appropriate to carry out the intent of this Plan with respect to such Award.

13.2.    Termsof Other Stock-based Awards.

Any Common Stock subject to Awards made under this Section 13 may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date on which the shares are issued, or, if later, the date on which any applicable restriction, performance or deferral period lapses.

14.NON-EMPLOYEE DIRECTOR RETAINERS

14.1.    Retainers

14.1.1.    Annual Retainers

Upon the adjournment of each annual meeting of the stockholders of the Company, each Non-Employee Director who has been elected a director of the Company at such meeting shall be entitled to receive an Annual Retainer in an amount established prior to such annual meeting by the Board. The amount of the Annual Retainer may be expressed in cash, shares of Common Stock or a combination thereof, as more fully described inSection 14.2.1.

14.1.2.    Interim Retainers

If any Non-Employee Director is elected or appointed a director other than at an annual meeting of the stockholders of the Company, then on the date of such Non-Employee Director’s election or appointment such Non-Employee Director shall be entitled to an Interim Retainer. The amount of the Interim Retainer may be expressed in cash, shares of Common Stock or a combination thereof, as more fully described inSection 14.2.1.

14.2.    Formand Payment of Retainers

14.2.1.    Form of Retainers

The Board may establish the amount of any Retainer either as an amount of cash, a number of shares of Common Stock or a combination of an amount of cash and a number of shares of Common Stock. Regardless of how expressed, the Board shall also determine the portion of the Retainer to be payable in cash and the portion to be payable by an Award, subject to the following additional rules:

(i) For any portion of the Retainer expressed as cash and payable by delivery of a share-based Award, the number of shares of Common Stock underlying the Award will be determined in accordance withSection 14.2.3;

(ii) For any portion of the Retainer expressed as a number of shares of Common Stock and payable in cash, the amount of cash payable will be determined in accordance withSection 14.2.4;

(iii) The Board may permit Non-Employee Directors to elect between forms of payment in accordance with such rules as the Board may establish from time to time; and

(iv) Notwithstanding any provision herein to the contrary (including any Non-Employee Director election), at least 50% of the Retainer shall be payable as a share-based Award.

14.2.2.     Cash Awards

For any portion of the Annual Retainer payable as cash, unless the Board determines otherwise, payment shall be made in a single payment as promptly as practicable after the end of the calendar quarter in which the annual meeting of the stockholders of the Company occurs. For any portion of an Interim Retainer payable in cash, unless the Board determines otherwise, payment shall be made in a single payment as promptly as practicable after the end of the calendar quarter in which the Non-Employee Director is elected or appointed, provided that if such Non-Employee Director is elected between April 1 and the next annual meeting of stockholders of the Company, then such portion of the Interim Retainer shall be paid as promptly as practicable after the Non-Employee Director is elected.

14.2.3.     Share-Based Awards Based on Cash Amount

For any portion of the Annual Retainer expressed as an amount of cash and payable as a share-based Award (either as required by the Board or as elected by a Non-Employee Director, if permitted), the number of shares of Common Stock with respect to such Award shall be calculated by dividing the amount of such portion of the Annual Retainer by the Fair Market Value of the Common Stock on the applicable annual meeting date. Similarly, for any portion of an Interim Retainer expressed as an amount of cash and payable as an Award, the number of shares of Common Stock with respect to such Award shall be calculated using the Fair Market Value on the date of election or appointment of the Non-Employee Director. If the calculation of the portion of a Retainer payable as a share-based Award would result in a fractional share of Common Stock being issued, then the number of shares to be so paid shall be rounded up to the nearest whole share.

14.2.4.     Cash Payments Based on Stock Amount

For any portion of the Annual Retainer expressed as a number of shares of Common Stock and payable in cash (either as required by the Board or as elected by a Non-Employee Director, if permitted), the amount of cash shall be calculated by multiplying the number of shares of Common Stock by the Fair Market Value on the applicable annual meeting date. Similarly, for any portion of an

Interim Retainer expressed as a number of shares of Common Stock and payable as cash, the amount of cash shall be calculated using the Fair Market Value on the date of election or appointment of the Non-Employee Director who will receive the Interim Retainer.

14.2.5.     Share-Based Awards

For any portion of the Retainer payable as a share-based Award, the Award shall be granted to each applicable Non-Employee Director as promptly as practicable after the Non-Employee Director becomes entitled to receive it. The Board shall establish the terms of the Award, including the extent to which any vesting conditions will apply.

14.2.6.     Deferrals of Retainers

Payment of all or part of a Retainer may be deferred under the Sealed Air Corporation Deferred Compensation Plan for Directors or any other applicable plan or arrangement providing for the deferred payment of retainers that may be in effect from time to time. Shares of Common Stock which a Non-Employee Director becomes entitled to receive under this Plan and for which payment is deferred under any such deferral arrangement shall be deemed to be issued under this Plan when issued.

15.REQUIREMENTS OF LAW

15.1.    General.

The Company shall not be required to sell or issue any shares of Stock under any Award if the sale or issuance of such shares would constitute a violation by the Grantee, any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Award unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award. Specifically, in connection with the Securities Act, upon the exercise of any Option or the delivery of any shares of Stock underlying an Award, unless a registration statement under such Act is in effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the Board has received evidence satisfactory to it that the Grantee or any other individual exercising an Option may acquire such shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Board shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or the issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option shall not be exercisable until the shares of Stock covered by such Option are registered or are exempt from registration, the exercise of such Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

15.2.    Rule 16b-3.

During any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards and the exercise of Options granted to

officers and directors hereunder will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Board or Committee does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement.

16.EFFECT OF CHANGES IN CAPITALIZATION

16.1.    Changes in Stock.

If (i) the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date or (ii) there occurs any spin-off, split-up, extraordinary cash dividend or other distribution of assets by the Company, the number and kinds of shares for which grants of Awards may be made under the Plan (including the per-Grantee maximums set forth inSection 4) shall be equitably adjusted by the Company; provided that any such adjustment shall comply with Section 409A. In addition, in the event of any such increase or decease in the number of outstanding shares or other transaction described in clause (ii) above, the number and kind of shares for which Awards are outstanding and the Option Price per share of outstanding Options and SAR Exercise Price per share of outstanding SARs shall be equitably adjusted; provided that any such adjustment shall comply with Section 409A.

16.2.    Effect of Certain Transactions.

Except as otherwise provided in an Award Agreement and subject to the provisions ofSection 16.3, in the event of a Corporate Transaction, the Plan and the Awards issued hereunder shall continue in effect in accordance with their respective terms, except that following a Corporate Transaction either (i) each outstanding Award shall be treated as provided for in the agreement entered into in connection with the Corporate Transaction or (ii) if not so provided in such agreement, each Grantee shall be entitled to receive in respect of each share of Common Stock subject to any outstanding Awards, upon exercise or payment or transfer in respect of any Award, the same number and kind of stock, securities, cash, property or other consideration that each holder of a share of Common Stock was entitled to receive in the Corporate Transaction in respect of a share of Common stock;provided,however, that, unless otherwise determined by the Committee, such stock, securities, cash, property or other consideration shall remain subject to all of the conditions, restrictions and performance criteria which were applicable to the Awards prior to such Corporate Transaction. Without limiting the generality of the foregoing, the treatment of outstanding Options and SARs pursuant to thisSection 16.2 in connection with a Corporate Transaction in which the consideration paid or distributed to the Company’s stockholders is not entirely shares of common stock of the acquiring or resulting corporation may include the cancellation of outstanding Options and SARs upon consummation of the Corporate Transaction as long as, at the election of the Committee, (i) the holders of affected Options and SARs have been given a period of at least fifteen days prior to the date of the consummation of the Corporate Transaction to exercise the Options or SARs (to the extent otherwise exercisable)or (ii) the holders of the affected Options and SARs are paid (in cash or cash equivalents) in respect of each Share covered by the Option or SAR being canceled an amount equal to the excess, if any, of the per share price paid or distributed to stockholders in the Corporate Transaction (the value of any non-cash consideration to be determined by the Committee in its sole discretion) over the Option Price or SAR Exercise Price, as applicable. For avoidance of doubt, (1) the cancellation of Options and SARs

pursuant to clause (ii) of the preceding sentence may be effected notwithstanding anything to the contrary contained in this Plan or any Award Agreement and (2) if the amount determined pursuant to clause (ii) of the preceding sentence is zero or less, the affected Option or SAR may be cancelled without any payment therefore. The treatment of any Award as provided in thisSection 16.2 shall be conclusively presumed to be appropriate for purposes ofSection 16.1.

16.3.    Change in Control

16.3.1.     Consequences of a Change in Control

For Awards granted to Non-Employee Directors, upon a Change in Control all outstanding Awards that may be exercised shall become fully exercisable, all restrictions with respect to outstanding Awards shall lapse and become vested and non-forfeitable, and any specified performance goals with respect to outstanding Awards shall be deemed to be satisfied at target.

For Awards granted to any other Service Providers, except as may otherwise be provided in the applicable Award Agreement, either of the following provisions shall apply, depending on whether, and the extent to which, Awards are assumed, converted or replaced by the resulting entity in a Change in Control:

(i)To the extent such Awards are not assumed, converted or replaced by the resulting entity in the Change in Control, then upon the Change in Control such outstanding Awards that may be exercised shall become fully exercisable, all restrictions with respect to such outstanding Awards, other than for Performance Awards, shall lapse and become vested and non-forfeitable, and for any outstanding Performance Awards the target payout opportunities attainable under such Awards shall be deemed to have been fully earned as of the Change in Control based upon the greater of: (A) an assumed achievement of all relevant performance goals at the “target” level, or (B) the actual level of achievement of all relevant performance goals against target as of the Company’s fiscal quarter end preceding the Change in Control and the Award shall become vested pro rata based on the portion of the applicable performance period completed through the date of the Change in Control.

(ii)To the extent such Awards are assumed, converted or replaced by the resulting entity in the Change in Control, if, within two years after the date of the Change in Control, the Service Provider has a Separation from Service either (1) by the Company other than for “cause” or (2) by the Service Provider for “good reason” (each as defined in the applicable Award Agreement), then such outstanding Awards that may be exercised shall become fully exercisable, all restrictions with respect to such outstanding Awards, other than for Performance Awards, shall lapse and become vested and non-forfeitable, and for any outstanding Performance Awards the target payout opportunities attainable under such Awards shall be deemed to have been fully earned as of the Separation from Service based upon the greater of: (A) an assumed achievement of all relevant performance goals at the “target” level, or (B) the actual level of achievement of all relevant performance goals against target as of the Company’s fiscal quarter end preceding the Change in Control and the Award shall become vested pro rata based on the portion of the applicable performance period completed through the date of the Separation from Service.

16.3.2.     Change in Control Defined

Except as may otherwise be defined in an Award Agreement, a “Change in Control” shall mean the occurrence of any of the following events:

(a) Any Person becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of Outstanding Voting Securities;provided,however,

that, for purposes of this definition, the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (iv) any acquisition pursuant to a Corporate Transaction that complies with subsections (c)(i), (c)(ii) and (c)(iii) of this definition;

(b) Continuing Directors cease for any reason to constitute at least a majority of the Board;

(c) Consummation of a Corporate Transaction unless, following such Corporate Transaction, (i) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Voting Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 50% of the then-outstanding combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Corporate Transaction (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership of the Outstanding Voting Securities immediately prior to such Corporate Transaction, (ii) no Person (excluding any corporation resulting from such Corporate Transaction or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Corporate Transaction) beneficially owns, directly or indirectly, 30% or more of the combined voting power of the then-outstanding voting securities of such entity, except to the extent that such ownership existed prior to the Corporate Transaction, and (iii) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Corporate Transaction were Continuing Directors at the time of the execution of the initial agreement or of the action of the Board providing for such Corporate Transaction; or

(d) The stockholders of the Company give approval of a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, if it is determined that an Award hereunder is subject to the requirements of Section 409A and payable upon a Change in Control, the Company will not be deemed to have undergone a Change in Control unless the Company is deemed to have undergone a “change in control event” pursuant to the definition of such term in Section 409A.

16.4.    Adjustments

Adjustments under thisSection 16 related to shares of Stock or securities of the Company shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share.

17.NO LIMITATIONS ON COMPANY

The making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets.

18.TERMS APPLICABLE GENERALLY TO AWARDS GRANTED UNDER THE PLAN

18.1.    Disclaimer of Rights.

No provision in the Plan or in any Award Agreement shall be construed to confer upon any individual the right to remain in the employ or service of the Company or any Affiliate, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any employment or other relationship between any individual and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Award granted under the Plan shall be affected by any change of duties or position of the Grantee, so long as such Grantee continues to be a Service Provider. The obligation of the Company to pay any benefits pursuant to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan.

18.2.    Nonexclusivity of the Plan.

Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals), including, without limitation, the granting of stock options as the Board in its discretion determines desirable.

18.3.    Withholding Taxes.

The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld (i) with respect to the vesting of or other lapse of restrictions applicable to an Award, (ii) upon the issuance of any shares of Stock upon the exercise of an Option or SAR, or (iii) otherwise due in connection with an Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the Affiliate, as the case may be, any amount that the Company or the Affiliate may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the Affiliate, which may be withheld by the Company or the Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, or the Company may require such obligations to be satisfied, in whole or in part, (i) by causing the Company or the Affiliate to withhold the number of shares of Stock otherwise issuable to the Grantee as may be necessary to satisfy such withholding obligation or (ii) by delivering to the Company or the Affiliate shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to thisSection 18.3 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.

18.4.    Captions.

The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or any Award Agreement.

18.5.    Other Provisions.

Each Award Agreement may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Board, in its sole discretion. In the event of any conflict between the terms of an employment agreement and the Plan, the terms of the employment agreement govern.

18.6.    Number and Gender.

With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as the context requires.

18.7.    Severability.

If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

18.8.    Governing Law.

The Plan shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to the principles of conflicts of law, and applicable Federal law.

18.9.    Section 409A.

The Plan is intended to comply with Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral period” as defined in Section 409A shall not be treated as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Grantee’s Separation from Service shall instead be paid on the first payroll date after the six-month anniversary of the Grantee’s Separation from Service (or the Grantee’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Grantee under Section 409A and neither the Company nor the Committee will have any liability to any Grantee for such tax or penalty.

18.10.    Separation from Service.

The Board shall determine the effect of a Separation from Service upon Awards, and such effect shall be set forth in the appropriate Award Agreement. Without limiting the foregoing, the Board may provide in the Award Agreements at the time of grant, or any time thereafter with the consent of the Grantee, the actions that will be taken upon the occurrence of a Separation from Service, including, but not limited to, accelerated vesting or termination, depending upon the circumstances surrounding the Separation from Service.

18.11.    Transferability of Awards.

18.11.1.    Transfers in General.

Except as provided inSection 18.11.2, no Award shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and distribution, and, during the

lifetime of the Grantee, only the Grantee personally (or the Grantee’s personal representative) may exercise rights under the Plan.

18.11.2.    Family Transfers.

If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Award (other than Incentive Stock Options) to any Family Member. For the purpose of thisSection 18.11.2, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under thisSection 18.11.2, any such Award shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers of transferred Awards are prohibited except to Family Members of the original Grantee in accordance with thisSection 18.11.2 or by will or the laws of descent and distribution.

18.12.    Dividends and Dividend Equivalent Rights.

If specified in the Award Agreement, the recipient of an Award (other than Options or SARs) may be entitled to receive dividends or dividend equivalents with respect to the Common Stock or other securities covered by an Award. The terms and conditions of a dividend equivalent right may be set forth in the Award Agreement. Dividend equivalents credited to a Grantee may be reinvested in additional shares of Stock or other securities of the Company at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend was paid to stockholders, as determined in the sole discretion of the Committee. Notwithstanding any provision herein to the contrary, in no event will dividends or dividend equivalents vest or otherwise be paid out prior to the time that the underlying Award (or portion thereof) has vested and, accordingly, will be subject to cancellation and forfeiture if such Award does not vest (including both time-based and performance-based Awards).

The Plan was originally adopted by the Board of Directors on February 18, 2014 and was approved by the stockholders of the Company on May 22, 2014.

This amendment and restatement of the Plan was adopted by the Board of Directors on February 13, 2018 and was approved by the stockholders of the Company on May 17, 2018.

LOGO

VOTE BY INTERNET Before The Meeting—Go to www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time the day before thecut-off date SEALED AIR CORPORATION or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic 2415 CASCADE POINTE BLVD. voting instruction form. CHARLOTTE, NC 28208 During The Meeting—Go to www.virtualshareholdermeeting.com/SEE2018 You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions. VOTE BYPHONE—1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time the day before thecut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: E42801-P06699-Z72141 KEEP THIS PORTION FOR YOUR RECORDS THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. DETACH AND RETURN THIS PORTION ONLY SEALED AIR CORPORATION The Board of Directors recommends you vote FOR the following proposals: 1. Election of Directors. Nominees: For Against Abstain 1a. Michael Chu ! ! ! For Against Abstain 1b. Edward L. Doheny II 2. Amendment and restatement of 2014 Omnibus ! ! ! Incentive Plan. ! ! ! 3. Ratification of the appointment of Ernst & Young LLP    1c. Patrick Duff ! ! ! as Sealed Air’s independent auditor for the year ending ! ! ! December 31, 2018. 1d. Henry R. Keizer ! ! ! 4. Approval, as an advisory vote, of 2017 executive ! ! ! compensation as disclosed in the attached 1e. Jacqueline B. Kosecoff Proxy Statement. ! ! ! NOTE: Such other business as may properly come before the 1f. Neil Lustig ! ! ! meeting or any adjournment thereof. 1g. Richard L. Wambold ! ! ! 1h. Jerry R. Whitaker ! ! ! Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date


LOGO

Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be held on May 19, 2016

Please note that the Company’sAnnual Meeting: The Notice of Annual Meeting of Stockholders,and Proxy Statement for the Annual Meeting of Stockholders and 2015 Annual Report are available at http://proxyreport.sealedair.com.

q  IF YOU HAVE NOT VOTED VIA THE INTERNETOR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  q

PROXY/VOTING INSTRUCTION CARD — SEALED AIR CORPORATION

+

2016 ANNUAL MEETING OF STOCKHOLDERS

THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS

www.proxyvote.com. E42802-P06699-Z72141 SEALED AIR CORPORATION Annual Meeting of Stockholders May 17, 2018 10:00 a.m. This proxy is solicited by the Board of Directors The signer hereby appoints Jerome A. Peribere, Carol P. LoweEdward L. Doheny II, William G. Stiehl and Norman D. Finch Jr.,Thomas C. Lagaly, or a majority of them as shall act (or if only one shall act, then that one) (the “Proxy Committee”), proxies with power of substitution to act and vote at the 20162018 Annual Meeting of Stockholders of Sealed Air Corporation (the “2016“2018 Annual Meeting”) to be held at 10:00 a.m. (Eastern time)Daylight Time) on May 19, 2016 at the Crowne Plaza Charlotte Executive Park, 5700 Westpark Drive, Charlotte, North Carolina 2821717, 2018 and at any adjournments thereof. The 2018 Annual Meeting will be hosted live via the Internet at www.virtualshareholdermeeting.com/SEE2018. The Proxy Committee is directed to vote as indicated on the reverse side and in its discretion upon any other matters that may properly come before the 20162018 Annual Meeting.

If the signer is a participant in Sealed Air Corporation’s Profit-Sharing Plan or its 401(k) Thrift Plan and has stock of Sealed Air Corporation allocated to his or her account, the signer instructs the trustee of such plan to vote such shares of stock, in person or by proxy, in accordance with the instructions on the reverse side at the 20162018 Annual Meeting and any adjournments thereof and in its discretion upon any other matters that may properly come before the 20162018 Annual Meeting. The terms of each plan provide that shares for which no voting instructions are received will be voted in the same proportion as shares are voted for participants who provide voting instructions. The plan trustee will vote the allocated shares in each plan as directed by each participant who provides voting instructions to it before 11:59 p.m. (Eastern Daylight time) on May 16, 2016.

14, 2018. The signer hereby revokes all proxies previously given by the signer to vote at the 20162018 Annual Meeting and any adjournments and acknowledges receipt of Sealed Air Corporation’s Proxy Statement for the 20162018 Annual Meeting.

The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.

THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS INDICATED ON THE REVERSE SIDE.

(Continued and to be marked, dated and signed below)

 C Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below

NOTE: Please sign EXACTLY as name appears above. When signing on behalf of a corporation, estate, trust or other stockholder, please give its full name and state your full title or capacity or otherwise indicate that you are authorized to sign.

Date (mm/dd/yyyy) — Please print date below.Signature 1 — Please keep signature within the box.Signature 2 — Please keep signature within the box.
     /     /

¢

IF VOTING BY MAIL, YOUMUST COMPLETE SECTIONS A - C ON BOTH SIDES OF THIS CARD.+


LOGO

Electronic Voting Instructions

Available 24 hours a day, 7 days a week!

Instead of mailing your proxy, you may choose one of the voting methods outlined below to vote your proxy.

VALIDATION DETAILS ARE LOCATED BELOW IN THE TITLE BAR.

Proxies submitted by the Internet or telephone must be received by 11:59 P.M. (Eastern time) on May 18, 2016.

Vote by Internet

• Go towww.investorvote.com/SEE

• Or scan the QR code with your smartphone

• Follow the steps outlined on the secure website

Vote by telephone

  • Call toll free 1-800-652-VOTE (8683) within the USA, US territories

    & Canada on a touch tone telephone

Using ablack inkpen, mark your votes with anXas shown in this example. Please do not write outside the designated areas.

x

  • Follow the instructions provided by the recorded message

LOGO

q  IF YOU HAVE NOT VOTED VIA THE INTERNETOR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  q

 A The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.+

PROPOSALS FOR THE SEALED AIR CORPORATION 2016 ANNUAL MEETING OF STOCKHOLDERS

     For   Against Abstain   For Against Abstain   For Against Abstain 
 

 

01 -

 

 

Election of Michael Chu as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

02 -

 

 

Election of Lawrence R. Codey as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

03 -

 

 

Election of Patrick Duff as a Director.

 

 

¨

 

 

¨

 

 

¨

 
 04 - Election of Jacqueline B. Kosecoff as a Director. ¨ ¨ ¨ 05 - Election of Neil Lustig as a Director. ¨ ¨ ¨ 06 - Election of Kenneth P. Manning as a Director. ¨ ¨ ¨ 
 07 - Election of William J. Marino as a Director. ¨ ¨ ¨ 08 - Election of Jerome A. Peribere as a Director. ¨ ¨ ¨ 09 - Election of Richard L. Wambold as a Director. ¨ ¨ ¨ 
 10 - Election of Jerry R. Whitaker as a Director. ¨ ¨ ¨ 11 - Advisory vote to approve our executive compensation. ¨ ¨ ¨ 12 - Ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2016. ¨ ¨ ¨ 
 In accordance with the Proxy Committee’s discretion, upon such other matters as may properly come before the meeting.           

 B Non-Voting Items

Change of Address — Please print your new address below.

   Comments — Please print your comments below.Meeting Attendance

¨

Mark the box to the right if you plan to attend the Annual Meeting.

¢

1  U  P  X                                         +

02AZZB


Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be held on May 19, 2016

Please note that the Company’s Notice of Annual Meeting of Stockholders, Proxy Statement for the Annual Meeting of Stockholders and 2015 Annual Report are available at http://proxyreport.sealedair.com.

q   IF YOU HAVE NOT VOTED VIA THE INTERNETOR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  q

PROXY/VOTING INSTRUCTION CARD — SEALED AIR CORPORATION

+

2016 ANNUAL MEETING OF STOCKHOLDERS

THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS

The signer hereby appoints Jerome A. Peribere, Carol P. Lowe and Norman D. Finch Jr., or a majority of them as shall act (or if only one shall act, then that one) (the “Proxy Committee”), proxies with power of substitution to act and vote at the 2016 Annual Meeting of Stockholders of Sealed Air Corporation (the “2016 Annual Meeting”) to be held at 10:00 a.m. (Eastern time) on May 19, 2016 at the Crowne Plaza Charlotte Executive Park, 5700 Westpark Drive, Charlotte, North Carolina 28217 and at any adjournments thereof. The Proxy Committee is directed to vote as indicated on the reverse side    and in its discretion upon any other matters that may properly come before the 2016 Annual Meeting.

If the signer is a participant in Sealed Air Corporation’s Profit-Sharing Plan or its 401(k) Thrift Plan and has stock of Sealed Air Corporation allocated to his or her account, the signer instructs the trustee of such plan to vote such shares of stock, in person or by proxy, in accordance with the instructions on the reverse side at the 2016 Annual Meeting and any adjournments thereof and in its discretion upon any other matters that may properly come before the 2016 Annual Meeting. The terms of each plan provide that shares for which no voting instructions are received will be voted in the same proportion as shares are voted for participants who provide voting instructions. The plan trustee will vote the allocated shares in each plan as directed by each participant who provides voting instructions to it before 11:59 p.m. (Eastern time) on May 16, 2016.

The signer hereby revokes all proxies previously given by the signer to vote at the 2016 Annual Meeting and any adjournments and acknowledges receipt of Sealed Air Corporation’s Proxy Statement for the 2016 Annual Meeting.

The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.

THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS INDICATED ON THE REVERSE SIDE.

(Continued and to be marked, dated and signed, below)

 C Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below

NOTE: Please sign EXACTLY as name appears above. When signing on behalf of a corporation, estate, trust or other stockholder, please give its full name and state your full title or capacity or otherwise indicate that you are authorized to sign.

Date (mm/dd/yyyy) — Please print date below.

   Signature 1 — Please keep signature within the box.   Signature 2 — Please keep signature within the box.
    /    /        

¢

IF VOTING BY MAIL, YOUMUST COMPLETE SECTIONS A - C ON BOTH SIDES OF THIS CARD.+


LOGO

Using ablack inkpen, mark your votes with anXas shown in this example. Please do not write outside the designated areas.x

LOGO

q  PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  q

 A The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.+

PROPOSALS FOR THE SEALED AIR CORPORATION 2016 ANNUAL MEETING OF STOCKHOLDERS

     For   Against Abstain   For Against Abstain   For Against Abstain 
 

 

01 -

 

 

Election of Michael Chu as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

02 -

 

 

Election of Lawrence R. Codey as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

03 -

 

 

Election of Patrick Duff as a Director.

 

 

¨

 

 

¨

 

 

¨

 
 04 - Election of Jacqueline B. Kosecoff as a Director. ¨ ¨ ¨ 05 - Election of Neil Lustig as a Director. ¨ ¨ ¨ 06 - Election of Kenneth P. Manning as a Director. ¨ ¨ ¨ 
 07 - Election of William J. Marino as a Director. ¨ ¨ ¨ 08 - Election of Jerome A. Peribere as a Director. ¨ ¨ ¨ 09 - Election of Richard L. Wambold as a Director. ¨ ¨ ¨ 
 10 - Election of Jerry R. Whitaker as a Director. ¨ ¨ ¨ 11 - Advisory vote to approve our executive compensation. ¨ ¨ ¨ 12 - Ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2016. ¨ ¨ ¨ 
 In accordance with the Proxy Committee’s discretion, upon such other matters as may properly come before the meeting.           

 B Non-Voting Items

Change of Address — Please print your new address below.

   Comments — Please print your comments below.Meeting Attendance

¨

Mark the box to the right if you plan to attend the Annual Meeting.

¢

1  U  P  X                                         +

02AZYB


Please note that Internet and telephone voting is not available to stockholders who have not exchanged their W. R. Grace & Co. (“Old Grace”) shares issued prior to March 31, 1998 (Cusip #383911 10 4) for shares of Sealed Air Corporation.

You may vote those shares using the attached proxy card. To vote please mark, date and sign your proxy card and return it in the enclosed postage-paid envelope.

For information regarding the exchange of Old Grace shares, please contact our Stock Transfer Agent, Computershare. Contact information is as follows: Computershare, P.O. Box 30170, College Station, TX 77842-3170 or call (800) 648-8381.

Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be held on May 19, 2016

Please note that the Company’s Notice of Annual Meeting of Stockholders, Proxy Statement for the Annual Meeting of Stockholders and 2015 Annual Report are available at http://proxyreport.sealedair.com.

q   PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  q

PROXY/VOTING INSTRUCTION CARD — SEALED AIR CORPORATION

+

2016 ANNUAL MEETING OF STOCKHOLDERS

THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS

The signer hereby appoints Jerome A. Peribere, Carol P. Lowe and Norman D. Finch Jr., or a majority of them as shall act (or if only one shall act, then that one) (the “Proxy Committee”), proxies with power of substitution to act and vote at the 2016 Annual Meeting of Stockholders of Sealed Air Corporation (the “2016 Annual Meeting”) to be held at 10:00 a.m. (Eastern time) on May 19, 2016 at the Crowne Plaza Charlotte Executive Park, 5700 Westpark Drive, Charlotte, North Carolina 28217 and at any adjournments thereof. The Proxy Committee is directed to vote as indicated on the reverse side and in its discretion upon any other matters that may properly come before the 2016 Annual Meeting.

If the signer is a participant in Sealed Air Corporation’s Profit-Sharing Plan or its 401(k) Thrift Plan and has stock of Sealed Air Corporation allocated to his or her account, the signer instructs the trustee of such plan to vote such shares of stock, in person or by proxy, in accordance with the instructions on the reverse side at the 2016 Annual Meeting and any adjournments thereof and in its discretion upon any other matters that may properly come before the 2016 Annual Meeting. The terms of each plan provide that shares for which no voting instructions are received will be voted in the same proportion as shares are voted for participants who provide voting instructions. The plan trustee will vote the allocated shares in each plan as directed by each participant who provides voting instructions to it before 11:59 p.m. (Eastern time) on May 16, 2016.

The signer hereby revokes all proxies previously given by the signer to vote at the 2016 Annual Meeting and any adjournments and acknowledges receipt of Sealed Air Corporation’s Proxy Statement for the 2016 Annual Meeting.

The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.

THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS INDICATED ON THE REVERSE SIDE.

(Continued and to be marked, dated and signed, below)

 C Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below

NOTE: Please sign EXACTLY as name appears above. When signing on behalf of a corporation, estate, trust or other stockholder, please give its full name and state your full title or capacity or otherwise indicate that you are authorized to sign.

Date (mm/dd/yyyy) — Please print date below.

   Signature 1 — Please keep signature within the box.   Signature 2 — Please keep signature within the box.
    /    /        

¢

IF VOTING BY MAIL, YOUMUST COMPLETE SECTIONS A - C ON BOTH SIDES OF THIS CARD.+


LOGO

Using ablack inkpen, mark your votes with anXas shown in this example. Please do not write outside the designated areas.x

LOGO

q  PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  q

 A The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.+

PROPOSALS FOR THE SEALED AIR CORPORATION 2016 ANNUAL MEETING OF STOCKHOLDERS

     For   Against Abstain   For Against Abstain   For Against Abstain 
 

 

01 -

 

 

Election of Michael Chu as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

02 -

 

 

Election of Lawrence R. Codey as a Director.

 

 

¨

 

 

¨

 

 

¨

 

 

03 -

 

 

Election of Patrick Duff as a Director.

 

 

¨

 

 

¨

 

 

¨

 
 04 - Election of Jacqueline B. Kosecoff as a Director. ¨ ¨ ¨ 05 - Election of Neil Lustig as a Director. ¨ ¨ ¨ 06 - Election of Kenneth P. Manning as a Director. ¨ ¨ ¨ 
 07 - Election of William J. Marino as a Director. ¨ ¨ ¨ 08 - Election of Jerome A. Peribere as a Director. ¨ ¨ ¨ 09 - Election of Richard L. Wambold as a Director. ¨ ¨ ¨ 
 10 - Election of Jerry R. Whitaker as a Director. ¨ ¨ ¨ 11 - Advisory vote to approve our executive compensation. ¨ ¨ ¨ 12 - Ratification of the appointment of Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2016. ¨ ¨ ¨ 
 In accordance with the Proxy Committee’s discretion, upon such other matters as may properly come before the meeting.           

¢

1  U  P  X                                         +

02AZXB


Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be held on May 19, 2016

Please note that the Company’s Notice of Annual Meeting of Stockholders, Proxy Statement for the Annual Meeting of Stockholders and 2015 Annual Report are available at http://proxyreport.sealedair.com.

q   PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.  q

PROXY/VOTING INSTRUCTION CARD — SEALED AIR CORPORATION

+

2016 ANNUAL MEETING OF STOCKHOLDERS

THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS

The signer hereby appoints Jerome A. Peribere, Carol P. Lowe and Norman D. Finch Jr., or a majority of them as shall act (or if only one shall act, then that one) (the “Proxy Committee”), proxies with power of substitution to act and vote at the 2016 Annual Meeting of Stockholders of Sealed Air Corporation (the “2016 Annual Meeting”) to be held at 10:00 a.m. (Eastern time) on May 19, 2016 at the Crowne Plaza Charlotte Executive Park, 5700 Westpark Drive, Charlotte, North Carolina 28217 and at any adjournments thereof. The Proxy Committee is directed to vote as indicated on the reverse side and in its discretion upon any other matters that may properly come before the 2016 Annual Meeting.

If the signer is a participant in Sealed Air Corporation’s Profit-Sharing Plan or its 401(k) Thrift Plan and has stock of Sealed Air Corporation allocated to his or her account, the signer instructs the trustee of such plan to vote such shares of stock, in person or by proxy, in accordance with the instructions on the reverse side at the 2016 Annual Meeting and any adjournments thereof and in its discretion upon any other matters that may properly come before the 2016 Annual Meeting. The terms of each plan provide that shares for which no voting instructions are received will be voted in the same proportion as shares are voted for participants who provide voting instructions. The plan trustee will vote the allocated shares in each plan as directed by each participant who provides voting instructions to it before 11:59 p.m. (Eastern time) on May 16, 2016.

The signer hereby revokes all proxies previously given by the signer to vote at the 2016 Annual Meeting and any adjournments and acknowledges receipt of Sealed Air Corporation’s Proxy Statement for the 2016 Annual Meeting.

The Board of Directors recommends a vote FOR Proposals 1 through 12. If no choice is specified, this proxy when properly signed and returned will be voted FOR Proposals 1 through 12. Please date and sign and return this proxy promptly.

THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS INDICATED ON THE REVERSE SIDE.

(Continued and to be marked, dated and signed, below)

 B Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below

NOTE: Please sign EXACTLY as name appears above. When signing on behalf of a corporation, estate, trust or other stockholder, please give its full name and state your full title or capacity or otherwise indicate that you are authorized to sign.

Date (mm/dd/yyyy) — Please print date below.

   Signature 1 — Please keep signature within the box.   Signature 2 — Please keep signature within the box.
    /    /        

¢

IF VOTING BY MAIL, YOUMUST COMPLETE SECTIONS A - C ON BOTH SIDES OF THIS CARD.+