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UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549

SCHEDULE 14A INFORMATION


Proxy Statement Pursuant to Section 14(a) of the


Securities Exchange Act of 1934


(Amendment No.   )

Filed by the Registrant  ☐                              Filed by a Party other than the Registrant  ☐

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Filed by a Party other than the Registrant  ☐
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material under § 240.14a-12
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ITRON, INC.


(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

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Payment of Filing Fee (Check the appropriate box):
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No fee required.
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Fee paid previously with preliminary materials.
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Fee computed on table belowin exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1)

Title of each class of securities to which transaction applies:

(2)

Aggregate number of securities to which transaction applies:

(3)

Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

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(5)Total fee paid:

☐Fee paid previously with preliminary materials.
☐Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
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Date Filed:

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ITRON, INC.


2111 N. Molter Road


Liberty Lake, Washington 99019

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

TO BE HELD ON MAY 10, 2018

NOTICE IS HEREBY GIVEN that

Notice of 2022 Annual Meeting of Shareholders
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When:
May 12, 2022 at 9:00 a.m., Central Time
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Where:
Virtual Meeting – see details below
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Who Can Vote:
Shareholders of Itron’s common stock as of the record date, March 8, 2022
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Attending the Meeting:
Shareholders who wish to attend the meeting in person should review the instructions set forth below under “Attending the Annual Meeting.”
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We are holding our annual meeting via a “virtual” format. Therefore, we cordially invite you to electronically attend the Annual Meeting of Shareholders of Itron, Inc. (Itron or Company), which will be held on May 12, 2022, at 9:00 a.m., Central Time. We are pleased to announce that this year’s annual meeting will be a virtual meeting via live webcast on the Houston Marriott Marquis Hotel inInternet. You will be able to attend the Kingwood Room, at 1777 Walker Street, Houston, Texas, 77010, at 4:00 p.m., local time,annual meeting, vote and submit your questions during the meeting by visiting:
www.virtualshareholdermeeting.com/ITRI2022
You will need to have your 16-Digit Control Number included on Thursday, May 10, 2018,your Notice or your proxy card (if you received a printed copy of the proxy materials) to join the annual meeting. As always, we encourage you to vote your shares prior to the annual meeting. The annual meeting will be held for the following purposes:

Items of Business:
1.
(1)

toTo elect three directors to the Company’s Board of Directors;

Directors.

2.
(2)

toTo approve, on anon-binding advisory basis, the compensation of our named executive officers for the fiscal year ended December 31, 2017;

2021.

3.
(3)

toTo ratify the appointment of Deloitte & Touche LLP as the Company’s independent registered public accountant for the 20182022 fiscal year; and

year.

4.
(4)

toTo transact any other business that may properly come before the annual meeting.

The Board of Directors has established the close of business on March 5, 2018 as the record date for the determination of shareholders entitled to notice of and to vote at the annual meeting or any adjournment or postponement thereof.

Members of the Company’s management will not make any formal presentation as part of the annual meeting, but will be available to address questions from shareholders, as appropriate. In addition, we expect all of our director nominees together with those directors continuing in office will attend the annual meeting.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER ANNUAL MEETING TO BE HELD ON MAY 10, 2018:

Our proxy statement is attached. Financial and other information concerning Itron is contained in our Annual Report to Shareholders for the 2017 fiscal year. The proxy statement and our Annual Report are available for all shareholders atwww.edocumentview.com/ITRI

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Important notice regarding the availability of proxy materials for the shareholder annual meeting to be held on May 12, 2022. Our 2022 proxy statement is attached and, along with the Annual Report, is available for all shareholders at https://materials.proxyvote.com. Financial and other information concerning Itron is contained in our Annual Report for the 2021 fiscal year.
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Your vote is very important.important. To ensure representation at the annual meeting, shareholders are urged to vote as promptly as possible. To vote your shares, please refer to the voting instruction form on the website noted above, or review the section titled “Quorum and Voting” beginning on page two ofin the accompanying proxy statement. Any shareholder attending the annual meeting may vote in person (virtually) even if that shareholder has returned a proxy.

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By Order of the Board of Directors,

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LOGO

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Sarah E. Hlavinka

Shannon M. Votava

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Corporate Secretary

Corporate Secretary

Liberty Lake, Washington
March 22, 2022
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Liberty Lake, Washington

March 23, 2018

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TABLE OF CONTENTS

PROXY STATEMENT

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Attending the Annual Meeting
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Internet Availability of Annual Meeting Materials

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Proposals to Be Voted On at the Annual Meeting

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Record Date and Outstanding Shares

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Quorum and Voting

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Revocability of Proxies

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Proxy Solicitation

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PROPOSAL 1 – ELECTION OF DIRECTORS

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MORE INFORMATION ABOUT OUR DIRECTORS

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Compensation of Directors
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COMPENSATION OF DIRECTORSCORPORATE GOVERNANCE

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Leadership Structure of the Board of Directors
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LEADERSHIP STRUCTURE OF THE BOARD OF DIRECTORSCorporate Governance Guiding Principles

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Board Matters – Meeting Attendance
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Director Independence
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Committees of the Board
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Nominating and Corporate Governance Committee
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Audit/Finance Committee
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Compensation Committee
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Compensation Committee Interlocks and Insider Participation
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Transactions with Related Persons
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Our Board’s Role in Risk Oversight
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Code of Conduct
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Anti-Hedging Policy
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Incentive Repayment (Clawback) Policy
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Director Nominations by Shareholders
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Shareholder Communications with the Board
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PROPOSAL 2 – ADVISORY APPROVAL OF EXECUTIVE COMPENSATION(Say-on-Pay)

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PROPOSAL  3 – RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANT

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CORPORATE GOVERNANCE

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Corporate Governance Guiding Principles

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Board Matters – Meeting Attendance

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Director Independence

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Committees of the Board

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Corporate Governance Committee

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Audit/Finance Committee

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Compensation Committee

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Value Enhancement Committee

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Compensation Committee Interlocks and Insider Participation

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Transactions with Related Persons

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Our Board’s Role in Risk Oversight

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Code of Conduct

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Anti-Hedging Policy

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Incentive Repayment (Clawback) Policy

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Director Nominations by Shareholders

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Shareholder Communications with the Board

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EXECUTIVE COMPENSATION

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Compensation Discussion and Analysis

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Executive Summary

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Business Performance
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Compensation Highlights
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Linking CEO Pay and Performance

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Best Compensation Practices & Policies

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2017​2021 Say-on-Pay & Shareholder Engagement

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What Guides Our Program

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Our Compensation Philosophy & Objectives

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The Principal Elements of Pay: Total Direct Compensation (TDC)

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Pay Mix

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​Our Decision Making Process

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The 20172021 Executive Compensation Program in Detail

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Base Salary

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Annual Cash Incentives: The Executive Management Incentive Plan (EMIP)

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Long-Term Incentives

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Other Practices, Policies and Guidelines

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Stock Ownership Guidelines

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Anti-Hedging Policy

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Change-in-Control Agreements

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Employment Agreements; Severance Policy

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Incentive Repayment (Clawback) Policy

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Executive Deferred Compensation

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General Benefits and Perquisites

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401(k) Plan and Employee Stock Purchase Plan

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2017​2021 Risk Assessment

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CEO Pay Ratio

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Impact of Tax and Accounting

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Compensation Committee Report

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EXECUTIVE COMPENSATION TABLES

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Summary Compensation Table

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20172021 Grants of Plan-Based Awards Table

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2017 ​Outstanding Equity Awards at Fiscal Year End Table

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20172021 Option Exercises and Stock Vested Table

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20172021 Nonqualified Deferred Compensation Table

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Executive Deferred Compensation Plan

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Potential Payments Upon Termination

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Potential Payments Upon Change in ControlChange-in-Control

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Termination Payment Tables for NEOs

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PROPOSAL 3 – RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANT
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2017 AUDIT/FINANCE COMMITTEE REPORT

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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM’S AUDIT FEES AND SERVICES

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2021 AUDIT/FINANCE COMMITTEE REPORT
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EQUITY COMPENSATION PLAN INFORMATION

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

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DELINQUENT SECTION 16(a) REPORTS
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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

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LIST OF SHAREHOLDERS OF RECORD

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ANNUAL REPORT AND FINANCIAL STATEMENTS

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SHAREHOLDER PROPOSALS FOR THE 2019 ANNUAL MEETING2023 Annual Meeting

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OTHER INFORMATION

DIRECTIONS TO 2018 ANNUAL MEETING

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This proxy statement includes several website addresses and references to additional materials found on those websites. Content on the websites, including content on our Company website, is not, and shall not be deemed to be, part of this proxy statement or incorporated herein or into any of our other filings with the Securities and Exchange Commission (SEC).

LOGO

PROXY STATEMENT

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This proxy statement is being furnished to shareholders of Itron, Inc. (the Company or Itron) in connection with the solicitation by our Board of Directors of proxies for use at the 20182022 Annual Meeting of Shareholders.Shareholders (Annual Meeting). The meeting willis scheduled to be held inon May 12, 2022, at 9:00 a.m., Central Time, via live webcast through the Kingwood Room of the Houston Marriott Marquis Hotel, located at 1777 Walker Street, Houston, Texas, 77010, at 4:00 p.m., local time, on Thursday, May 10, 2018,link, for the purposes listed in the accompanying Notice of Annual Meeting of Shareholders. You will need the 16-digit control number provided on the Notice of Internet Availability of Proxy Materials or your proxy card (if applicable). We have made these materials available to you over the Internet, or have delivered printed versions of these materials to you by mail, in connection with the Board’s solicitation of proxies for use at the Annual Meeting. This solicitation is for proxies for use at the annual meeting or at any reconvened meeting after an adjournment or postponement of the annual meeting. The Company’s principal executive office is at 2111 North Molter Road, Liberty Lake, Washington, 99019.

Attending the Annual Meeting
You are entitled to attend the virtual annual meeting only if you were a shareholder of record as of the Record Date for the annual meeting, or you hold a valid proxy for the annual meeting. You may attend the annual meeting, vote, and submit a question during the annual meeting by visiting www.virtualshareholdermeeting.com/ITRI2022 and using your 16-digit control number to enter the meeting. If you are not a shareholder of record but hold shares as a beneficial owner in street name, you may be required to provide proof of beneficial ownership, such as your most recent account statement as of the Record Date, a copy of the voting instruction form provided by your broker, bank, trustee, or nominee, or other similar evidence of ownership. If you do not comply with the procedures outlined above, you will not be admitted to the virtual annual meeting.
Internet Availability of Annual Meeting Materials

Our proxy materials will be available for you to access over the Internet. On or about March 29, 2018,25, 2022, we will mail to our shareholders a Notice of Internet Availability of Proxy Materials (Notice) directing shareholders to the website provided on the Notice where they can access our proxy materials and view instructions on how to vote via the Internet or by phone. The Notice will also provide instructions for obtaining paper copies of the proxy materials and a proxy card, if requested by a shareholder.

The following proxy materials will be available for you to review online:

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The Company’s Notice of Annual Meeting of Shareholders;

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The Company’s 2018 Proxy Statement;

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The Company’s Annual Report to Shareholders for the year ended December 31, 2017 (which is not deemed to be part of the official proxy soliciting materials); and

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Any amendments to the foregoing materials that may be required to be furnished to the shareholders by the Securities and Exchange Commission (SEC).

The Company’s Notice of Annual Meeting of Shareholders;
The Company’s 2022 Proxy Statement;
The Company’s Annual Report to Shareholders for the year ended December 31, 2021 (which is not deemed to be part of the official proxy soliciting materials); and
Any amendments to the foregoing materials that may be required to be furnished to the shareholders by the Securities and Exchange Commission.
Proposals to Be Voted On at the Annual Meeting

At the annual meeting, we will consider and vote on the following proposals:

(1)
(1)

to elect three directors to the Itron, Inc. Board of Directors, eachone for a term of two years ending upon our 2024 annual meeting of shareholders, and two for a term of three years ending upon our 20212025 annual meeting of shareholders;

(2)
(2)

to approve, on anon-binding advisory basis, the compensation of our named executive officers for the fiscal year ended December 31, 2017(Say-on-Pay2021 (Say-on-Pay vote);

(3)
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to ratify the appointment of Deloitte & Touche LLP as the Company’s independent registered public accountant for the 20182022 fiscal year; and

(4)
(4)

to transact any other business that may properly come before the annual meeting.

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Record Date and Outstanding Shares

Holders of record of our common stock at the close of business on March 5, 2018,8, 2022, are entitled to notice of, and to vote at, the annual meeting. On the record date, there were 39,122,51245,037,070 shares of our common stock outstanding. Each outstanding share of our common stock will entitle its holder to one vote on each of the three directors to be elected and one vote on each other matter to be voted on at the annual meeting. Each of our directors and executive officers intends to vote or direct the vote of all shares of common stock over which he or she has voting control in favor of: (1) the election of the nominees for director; (2) the advisory approval of the compensation we paid our named executive officers in 2017;2021; and (3) the ratification of Deloitte & Touche LLP as our independent registered public accountant.

accountant for the 2022 fiscal year.

Quorum and Voting

Each shareholder is entitled to one vote per share of common stock held on each matter to be voted on. Our annual meeting will be through a virtual-only format solely through means of remote communication, and participation by such means shall constitute presence in person at the meeting. The presence at the annual meeting, in person or by proxy, of holders of a majority of the outstanding shares of common stock on the record date will constitute a quorum. AbstentionsAttendance by abstentions and “brokernon-votes” (shares held by a broker or nominee who does not have the authority, express or discretionary, to vote on a particular matter) on any of the proposals to be voted on will be counted only for purposes of determining the presence of a quorum.

How to Vote Your Shares in Person and Participate at the Annual Meeting
This year’s annual meeting will be held entirely online. Shareholders may participate in the annual meeting by visiting the following website: www.virtualshareholdermeeting.com/ITRI2022. To participate in the meeting, you will need the 16-digit control number included on your Notice, on your proxy card or on the instructions that accompanied your proxy materials. Shares held in your name as the shareholder of record may be voted electronically during the annual meeting. Shares for which you are the beneficial owner but not the shareholder of record also may be voted electronically during the annual meeting. However, even if you plan to attend the annual meeting, the Company recommends that you vote your shares in advance, so that your vote will be counted if you later decide not to attend the annual meeting.
How to Vote Your Shares without Attending the Annual Meeting
To vote your shares without attending the meeting, please follow the instructions for Internet or telephone voting on the Notice. If you request printed copies of the proxy materials by mail, you may also vote by signing and submitting your proxy card and returning it by mail, if you are the shareholder of record, or by signing the voter instruction form provided by your bank or broker and returning it by mail, if you are the beneficial owner but not the shareholder of record. This way your shares will be represented whether or not you are able to attend the meeting.
You may vote your shares in one of several ways, depending on how you own your shares.

Registered Shareholders (Shares held in your name)

Registered shareholders can vote in person, by Internet, by telephone, or by mail, by casting their vote as follows:

(1)
1)

Accessing the Internet website specified in the Notice of Internet Availability and following the instructions provided on the website (or if printed copies of the proxy materials were requested, as specified in the printed proxy card); or

(2)
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Requesting a printed proxy card and either calling the telephone number specified on the proxy card and following the instructions provided on the phone line, or completing, signing, dating, and promptly mailing the proxy card in the envelope provided; or

(3)
3)

Attending and voting in person at the annual meeting.

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Beneficial Shareholders (Shares held in the name of a broker, bank or other holder of record on your behalf)

If your shares are held in the name of a broker, bank, or other nominee or holder of record, follow the voting instructions on the voting instruction form provided to you by the holder of record to vote your shares.

Proposal One – Election of Directors: Each nominee for director is elected by the vote of the majority of the votes cast with respect to that director’s election (meaning the number of votes cast “for” a nominee must exceed the number of votes cast “against” such nominee). Holders of common stock are not entitled to cumulative votes in the election of directors. Abstentions from voting on this matter will not be counted. Brokers and other holders of record do not have discretionary voting authority to vote your shares in the election of directors, absent voting instructions from you. Therefore, if you are a beneficial shareholder and do not provide voting instructions on proposal number one to the holder of record for your shares, they willnot be voted in the election of directors.

Proposal Two – Say-on-Pay Vote (non-binding)Say-on-Pay Vote(non-binding): Thenon-binding advisory vote on this proposal will be approved if the majority of votes cast are in favor of the proposal (meaning the number of votes cast “for” the proposal must exceed the number of votes cast “against” the proposal). Abstentions from voting on this matter will not be counted. Brokers and other holders of record do not have discretionary voting authority to vote your shares for this proposal, absent voting instructions from you. Therefore, if you are a beneficial shareholder and do not provide voting instructions on proposal number two to the holder of record for your shares, they willnotbe voted on this proposal.

Proposal Three – Ratification of Appointment of Independent Auditor: The appointment of Deloitte & Touche LLP as the Company’s independent registered public accountant for 20182022 will be ratified if the majority of the votes cast are in favor of the proposal (meaning the number of votes cast “for” the proposal must exceed the number of votes cast “against” the proposal). Abstentions from voting on this matter will not be counted. Brokers and other holders of recorddohave discretionary authority to vote shares on this matter. Therefore, there will be no brokernon-votes on the ratification of the Company’s independent registered public accountant.

Unless contrary instructions are specified, if the proxy is completed and submitted (and not revoked) prior to the annual meeting, the shares represented by the proxy will be voted as follows: (i) FOR proposals one, two, and three; and (ii) in accordance with the best judgment of the named proxies on any other matters properly brought before the annual meeting.

Revocability of Proxies

Shares represented at the annual meeting by properly signed proxies will be voted at the annual meeting in accordance with the instructions given in the proxy. A shareholder may revoke a proxy at any time before the vote. Mere attendance at the annual meeting will not revoke a proxy. A proxy may be revoked only by:

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submitting a later-dated proxy by mail, by Internet or by telephone for the same shares at any time before the proxy is voted;

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delivering written notice of revocation to the Corporate Secretary of the Company at any time before the vote; or

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attending the annual meetingandvoting in person.

submitting a later-dated proxy by mail, by Internet or by telephone for the same shares at any time before the proxy is voted;
delivering written notice of revocation to the Corporate Secretary of the Company at any time before the vote; or
attending the annual meeting and voting in person.
If the annual meeting is postponed or adjourned for any reason, at any subsequent reconvening of the annual meeting, all proxies will be voted in the same manner as the proxies would have been voted at the original convening of the annual meeting (except for any proxies that have at that time effectively been revoked or withdrawn).

Proxy Solicitation

For the 2018 annual meeting,Annual Meeting, we have retained Innisfree M&A IncorporatedBroadridge Financial Solutions, Inc. to aid in the solicitation of proxies. We will bear the cost of such solicitation of proxies, which we estimate will be approximately $10,000, plus expenses. Proxies may be solicited by personal contact, mail, email, telephone, or facsimile. In addition, we may reimburse brokerage firms and other persons representing beneficial owners of our common stock for their reasonable expenses in forwarding solicitation materials to the beneficial owners. Our directors, officers, and employees may also solicit proxies personally or by telephone, without additional compensation.
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PROPOSAL 1 – ELECTION OF DIRECTORS

The Board of Directors (Board) is divided into three classes, with each director holding office for a three-year term or until his or her successor has been duly elected and qualified, or until his or her death, resignation, or removal from office. At the 2018 Annual Meeting, of Shareholders (Annual Meeting), shareholders are being asked tore-elect three one Class 2 director for a term of two years and two Class 3 directors for termsa term of three years, or in each case, until their death, resignation, or removal from office or their successors are duly elected and qualified. Santiago Perez, a Class 2 director appointed in June 2021, is being nominated in accordance with the Company’s Amended and Restated Bylaws, which state that a director elected to fill a Board vacancy shall only serve until the next election of directors by shareholders.
Unless authority is withheld, the persons named as proxies will vote for the election of the nominees listed below. If any of the nominees become unavailable to serve, the persons named as proxies will have discretionary authority to vote for a substitute nominee.

Our Board has nominated the following persons for election to the Board. Each nominee is currently a director and has indicated that he or she is willing and able to continue to serve as a director.

Class 2 (to serve until the 20212024 annual meeting)

Philip C. Mezey

Daniel S. Pelino

Timothy M. Leyden


Santiago Perez
Class 3 (to serve until the 2025 annual meeting)
Lynda L. Ziegler
Diana D. Tremblay
We have concluded that each of the nominees forre-election, as well as the other directors who will continue in office, have the skills, experience, knowledge, and personal attributes that are necessary to effectively serve on our Board. As described below in their biographies and the section “Director and Director Nominee Qualifications” that follows, the qualifications of our directors and director nominees support our conclusion that each of the individuals should serve as a director in light of our current business operations and structure.

THE BOARD RECOMMENDS THAT YOU VOTEFOR

THE ELECTION OF EACH OF THE THREE NOMINEES FOR DIRECTOR.

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The Board recommends that shareholders
vote “FOR” the election of each of the
director nominees.
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MORE INFORMATION ABOUT OUR DIRECTORS
Class 2 Director Nominee – Three Year Terms That Will Expire in 2024
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Santiago Perez
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Director since: 2021
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Other Current Public Directorships: None
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Age: 57
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Independent
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Santiago Perez is CEO at Keter Environmental Services as of January 1, 2022. Before taking this role, Mr. Perez served as a Senior Advisor for Arsenal Capital Partners in 2021. Prior to this, Mr. Perez served as Chief Commercial Digital Officer & Senior Vice President U.S. Services & Solutions at Schneider Electric from 2017 to 2020. He also held several leadership roles at Johnson Controls between 1999 and 2016. These included Vice President & General Manager Europe, Middle East, Africa, Latin America, where he led the company’s sales, distribution, contracting and service operations, as well as Vice President Global Business Lines & Operations, leading the company’s global supply chain, product management, development and engineering. Prior to this Mr. Perez held a variety of positions in Thermo Fisher Scientific from 1997 to 1999, in United Technologies between 1991 and 1997, and with The Whiting-Turner Contracting Company from 1985 to 1989.
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Qualifications: Mr. Perez brings to the board nearly 35 years of sales, product management and service operations experience in high-tech industries, including the energy, building automation and industrial automation sectors.
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Class 3 Director Nominees – Three Year Terms That Will Expire in 2025
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Lynda L. Ziegler
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Director since: 2013
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Other Current Public Directorships: None
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Age: 69
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Independent
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Lynda L. Ziegler was elected Vice Chair of the Board in April 2015, and then Chair of the Board in September 2016. She was elected to a second term as Chair of the Board at the 2019 annual meeting. In September 2012, Ms. Ziegler retired from Southern California Edison (SCE), one of the largest electric utilities in the U.S. (and a customer of Itron), whose parent is Edison International. During her tenure at SCE, she held various management positions related to customer program offerings, customer service, development, communication and implementation of energy efficiency programs, marketing and communication of smart meters, and generally led all aspects of delivering power to almost 5 million customers. From 2006 to 2011, Ms. Ziegler was Senior Vice President of Customer Service, and from January 1, 2011 until her retirement in September of 2012, she served as Executive Vice President of Power Delivery Services, where she was responsible for transmission and distribution construction and maintenance, customer service, information technology (IT), and support services including procurement and real estate management. In the past, she has served on the advisory committee for power delivery and utilization at the Electric Power Research Institute and was a founding member of the Board of the Association for Women in Water and Energy.
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Qualifications: Ms. Ziegler brings to the Board her extensive background with public utilities, especially with her recent responsibilities in the industry related to smart meters and customer relations from the utility perspective. Her breadth of knowledge of software services, transmission and distribution construction and maintenance, IT, and business development adds to the diverse business backgrounds of our other members of the Board.
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Diana D. Tremblay
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Director since: 2015
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Other Current Public Directorships: Lightning eMotors, Inc.
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Age: 62
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Independent
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Diane D. Tremblay retired from General Motors Company, the motor vehicle manufacturer and distributor multinational corporation (NYSE: “GM”) in September 2017. She had been with that company since 1977, and during her tenure at GM, she held a variety of positions in engineering, manufacturing, and labor relations, including direct operational responsibility for over 50,000 employees. From July 2013 until her retirement, Ms. Tremblay served as Vice President of Global Business Services, where she was charged with streamlining administrative processes around the world to improve service quality, reduce complexity, and achieve cost efficiencies in such areas as finance, human resources, real estate, purchasing, asset management, and master data. From December 2009 to July 2013, Ms. Tremblay held the position of Vice President of Manufacturing at GM.
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Qualifications: Ms. Tremblay brings to the Board her broad business experience that includes her previous roles at GM as an engineer, plant manager, head of manufacturing, and lead labor relations negotiator, which together with her knowledge of business services and global manufacturing processes, provide additional international, administrative, and manufacturing perspectives to the Board.
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RetiringTABLE OF CONTENTS

Current Class 3 Director – Not Nominated for Reelection — Director With Term That Will Expire in 2022
​
Thomas S. Glanville
​​
Director since: 2001
​​
Other Current Public Directorships: MIND Technology, Inc.
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​
Age: 63
​​
Independent
​​
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​
​​
​​
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​
Thomas S. Glanville is not a nominee for election at the forthcoming Annual Meeting due to the term limit provision in our Corporate Governance Guiding Principles (Governance Principles). Mr. Glanville has been the Managing Partner of Eschelon Advisors, LP and affiliates, providing energy and private equity investment and advisory services since 2003. From 1999 to 2002, Mr. Glanville served as Vice President of Technology and New Ventures for Reliant Energy, Inc., one of the world’s largest international energy services companies, and its affiliate, Reliant Resources, Inc. In September 2015, he was appointed to the board of directors of MIND Technology, Inc. (NASDAQ: “MIND”), a publicly traded company providing technology and solutions in oceanographic, hydrographic, defense, seismic, and security industries, where he also serves as chair of the board’s audit committee and on its nominating and compensation committees. He currently serves on the board of directors for Strand Energy, LLC, a privately-held oil and gas exploration and production company, and Crescent Pass Energy, LLC, a private oil and gas production company. Mr. Glanville also serves as Vice Chair of Enchant Energy Corporation, a private carbon capture and storage company whose first project is in New Mexico. He served as Chairman of the Texas TriCities Chapter of the National Association of Corporate Directors (Houston, Austin, San Antonio) from 2011 through 2016.
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Qualifications: Mr. Glanville brings to the Board financial expertise, industry-related experience through his association with Reliant Energy, energy sector exposure through the Eschelon entities and MIND Technology, and skills that include his involvement with electric metering studies and research while he was Vice President of Technology and New Ventures for Reliant Energy. As Chair of the National Association of Corporate Directors Texas TriCities Chapter from 2011-2016, he has significant corporate governance and board leadership experience and knowledge.
​
Current Class 1 Directors – Class 1 – DecreaseDirectors with Terms That Will Expire in Size of Board

Kirby A. Dyess, age 71, and Peter Mainz, age 53, have been directors of Itron since 2006 and 2016, respectively, and their current terms will expire at the Annual Meeting. Both notified the Board that they will not stand forre-election2023

​
Jerome J. Lande
​​
Director since: 2015
​​
Other Current Public Directorships: CONMED Corporation; Indivior PLC
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Age: 46
​​
Independent
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​
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​
Jerome J. Lande joined Scopia Capital Management LP (Scopia), an asset management firm, in April 2016 and is currently a Partner and Deputy Chief Investment Officer. He was previously the Managing Partner of Coppersmith Capital Management LLC (Coppersmith), an asset management firm focused on equity investing in small to mid-cap markets and in long-term value creation, which he co-founded in April 2012. Prior to co-founding Coppersmith, Mr. Lande was a partner of MCM Capital Management, LLC, the general partner of MMI Investments, LP, a small-cap investment fund founded in 1996 to employ private equity investing methodologies in public equities, and where Mr. Lande oversaw research, trading and activism from 1998 to 2011. Prior to that time, he was associated with other equity investment firms where he was directly involved with corporate development as well as equity growth. Mr. Lande is a member of the board of directors of CONMED Corporation (NASDAQ: “CNMD”), a public global medical technology company, where he also serves on the compensation committee and chairs the strategy committee, and of Indivior PLC (LON: “INDV”), a public global pharmaceutical company, where he also serves on the audit committee and the nomination and governance committee.
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​​
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Qualifications: Mr. Lande brings to the Board and will retire at the Annual Meeting. We recognize and appreciate the exemplary dedication and long-time service to the Company by Ms. Dyess and Mr. Mainz during their tenures on the Board. Upon their retirement at the Annual Meeting, the Board financial and investing acumen gained through his many years of experience at several equity investment firms, including his current employer Scopia (and affiliates).
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Frank M. Jaehnert
​​
Director since: 2015
​​
Other Current Public Directorships: Nordson Corporation
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​
Age: 64
​​
Independent
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​
​​
​​
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​
From 1995 until his retirement in 2013, Frank M. Jaehnert held several roles with Brady Corporation (NYSE: “BRC”), a publicly traded manufacturer and marketer of complete solutions that identify and protect premises, products and people. These roles included President and Chief Executive Officer from 2003 to 2013, Senior Vice President and President of a business line from 2002 to 2003, and Vice President and Chief Financial Officer from 1996 to 2001. Prior to joining Brady Corporation, Mr. Jaehnert held various financial and management positions for Robert Bosch GmbH, a German multinational engineering and electronics company. Mr. Jaehnert serves on the board of directors of Nordson Corporation (NASDAQ: “NDSN”), which he joined in 2012. NDSN is a publicly traded large manufacturing company. Mr. Jaehnert is the chair of the NDSN audit committee.
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Qualifications: Mr. Jaehnert has extensive, broad-based international business and executive management and leadership experience. Mr. Jaehnert’s diverse background, his experience with geographic expansion and acquisitions, as well as his experience serving on other public company boards bring valuable perspectives to the Board.
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​
Gary E. Pruitt
​​
Director since: 2006
​​
Other Current Public Directorships: PS Business Parks, Inc.
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​
Age: 72
​​
Independent
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​
​​
​​
​
​
In 2010, Gary E. Pruitt retired as Chairman of Univar N.V. (Univar), a multi-national chemical distribution company based in Bellevue, Washington, and retired as Chief Executive Officer in October 2009. Before joining Univar in 1978, Mr. Pruitt was a chartered accountant with Arthur Andersen from 1973 through 1977. Mr. Pruitt is a member of the board of directors of PS Business Parks, Inc. (a full-service real estate company) (NYSE: “PSB”), and is a member of its audit committee.
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​
​​
​​
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Qualifications: Mr. Pruitt brings to the Board his experience as a chief executive officer of a multi-national company and all the business attributes required of that position, along with operational and manufacturing expertise through his various other management positions held with Univar. His public accounting financial background and other public board experiences provide strategic and global perspectives on our business as well.
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Current Class 2 Directors – Directors with Terms That Will Expire in 2024
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Thomas L. Deitrich
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Director since: 2019
​​
Other Current Public Directorships: ON Semiconductor Corporation
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​
Age: 55
​​
​​
​
​
​​
​​
​
​
Tom Deitrich is President and Chief Executive Officer and a member of our Board of Directors. Mr. Deitrich was appointed to his current position and to the Board of Directors in August 2019. Mr. Deitrich joined Itron in October 2015, serving as Itron’s Executive Vice President and Chief Operating Officer until August 2019. From 2012 to September 2015, Mr. Deitrich was Senior Vice President and General Manager for Digital Networking at Freescale Semiconductor, Inc. (Freescale), and he served as the Senior Vice President and General Manager of Freescale’s RF, Analog, Sensor, and Cellular Products Group from 2009 to 2012. Mr. Deitrich held other roles of increasing responsibility at Freescale from 2006 to 2009. Prior to Freescale, Mr. Deitrich worked for Flextronics, Sony-Ericsson/Ericsson, and GE.
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​
​​
​​
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Qualifications: Mr. Deitrich brings to the Board more than 20 years of executive experience in technology businesses, having held roles in research and development, product management, manufacturing, business development, and general management. As Itron’s prior Chief Operating Officer, Mr. Deitrich has extensive knowledge of Itron’s global operations, including finance, product development, manufacturing, procurement, product management, go-to-market and sales, and strategy. Additionally, Mr. Deitrich has been involved with a number of mergers and acquisitions at Itron. During his tenure at Itron, he has had extensive exposure to global systems and utilities throughout the world. As the only employee director, Mr. Deitrich provides the Board with valuable insight into management’s views and perspectives, as well as the day-to-day operations of Itron. In 2020, Mr. Deitrich was appointed to the board of directors of ON Semiconductor Corporation (NASDAQ: “ON”).
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​
Timothy M. Leyden
​​
Director since: 2015
​​
Other Current Public Directorships: None
​
​
Age: 70
​​
Independent
​​
​
​
​​
​​
​
​
Timothy M. Leyden retired in 2015 after eight years with Western Digital Corporation (NASDAQ: “WDC”), a company that manufactures hard-disk drives and solid state storage devices used to record, store, and recall volumes of data. He served as WDC’s Chief Financial Officer from 2013 until January 2015, President of Western Digital, one of WDC’s two operating subsidiaries, from 2012 to 2013, its Chief Operating Officer from 2010 to 2012, and its Executive Vice President of Finance and Chief Financial Officer from 2007 to 2010. Mr. Leyden previously worked at WDC from 1983 to 2000 in various management and leadership capacities, both internationally and in the USA, in finance, operations, manufacturing, and IT. Prior to joining WDC for a second time, Mr. Leyden was Vice President and then Senior Vice President of Finance and Chief Financial Officer for various USA divisions of Sage Software PLC, a customized software solutions business, from 2001 to 2007. Mr. Leyden serves on the board of advisors for Oracle Elevator Company, a private company providing maintenance, repair, and modifications to commercial elevators, and on the board of advisors of BlytheCo, a private company that brokers a variety of third party software solutions to all sizes of businesses. These solutions include ERP and CRM software installations. Mr. Leyden also serves on the Dean’s Advisory Board at the University of California Irvine’s Paul Merage School of Business.
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​
​​
​​
​
​
Qualifications: Mr. Leyden brings to the Board a mix of financial and operational experience (in both hardware and software industries), in addition to a background that includes mergers and acquisitions and integration experience related to the assimilation of acquired companies into both WDC and Sage Software. His prior experience with overseeing global manufacturing, engineering, marketing, and sales operations, when combined with his financial and accounting background, adds a depth of international insight to the Board.
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TABLE OF CONTENTS

Snapshot of Directors will be reduced from eleven to nine members.

Nominees to Serve until 2021 (Class 2)

Philip C. Mezey(age 58) has been a director since 2013. Effective January 1, 2013, he was elected Itron’s President and Chief Executive Officer, and was previously President and Chief Operating Officer of Itron’s Energy segment from March 2011 until December 31, 2012. Mr. Mezey joined Itron in March 2003 as Managing Director of Software Development for Itron’s Energy Management Solutions Group as part of Itron’s acquisition of Silicon Energy Corp., where he had most recently served as its Senior Vice President of Product Development and Strategy. Mr. Mezey was promoted to Group Vice President and Manager of Software Solutions in 2004. In 2005, he became Senior Vice President Software Solutions, and in 2007 Mr. Mezey became Senior Vice President and Chief Operating Officer Itron North America.

Mr. Mezey brings to the Board more than thirteen years of experience in research and development, manufacturing, and business development for metering software and related services. While at Silicon Energy Corp., he managed the marketing department and was directly involved with a number of mergers and acquisitions prior to Itron’s acquisition of that company. During his tenure at Itron, he has had extensive exposure to international systems and utilities throughout the world, and, as the only employee director, Mr. Mezey provides the Board with valuable insight into management’s views and perspectives, as well as theday-to-day operations of Itron.

Nominees

Daniel S. Pelino (age 60) has been a director since November 2014. Mr. Pelino retired from International Business Machines Corp., the multinational technology company (NYSE: “IBM”) in November 2016, where he had been employed since 1980, most recently as General Manager of IBM’s public sector business, a position he had held since 2012. The public sector business focused on government, education, healthcare and life sciences industries, including IBM’s Smarter Cities initiative. While at IBM, Mr. Pelino held several other positions of escalating responsibility focused on helping organizations, states, and countries transform and digitize their technology systems. Mr. Pelino currently serves on the executive committee for the Patient Centered Primary Care Collaborative and on the board of directors of the Healthcare Executive Network.

Mr. Pelino provides the Board with a strong background in technology, brand marketing, and business innovation and development. With his worldwide experience in governmental business and strategies, he brings a current global business perspective to the Board. In addition, Mr. Pelino’s knowledge of digitized services created for economic development adds invaluable insight to the Company’s smart metering systems and strategies for its utility customers.

Timothy M. Leyden (age 66) has been a director since March 2015. Mr. Leyden retired in 2015 after eight years with Western Digital Corporation (NASDAQ: “WDC”), a company that manufactures hard-disk drives used to record, store, and recall volumes of data. He served as WDC’s Chief Financial Officer from 2013 until January 2015, President of Western Digital, one of WDC’s two operating subsidiaries, from 2012 to 2013, its Chief Operating Officer from 2010 to 2012, and its Executive Vice President of Finance and Chief Financial Officer from 2007 to 2010. Prior to joining WDC, Mr. Leyden was Vice President and then Senior Vice President of Finance and Chief Financial Officer for Sage Software PLC, a customized software solutions business, from 2001 to 2007. Mr. Leyden serves on the board of directors of Oakgate Technology, Inc., a privately-held company that provides test, validation and benchmarking products and services to the storage industry. He also serves on the board of directors of Virtium LLC, a private company that provides storage and memory innovation for various imbedded industrial segments.

Mr. Leyden brings to the Board a mix of financial and operational experience (in both hardware and software industries), in addition to a background that includes mergers and acquisitions and integration experience related to the assimilation of acquired companies into both WDC and Sage Software. His prior experience with overseeing global manufacturing, engineering, marketing, and sales operations, when combined with his financial and accounting background, adds a depth of international insight to the Board.

Directors Continuing in Office until 2019 (Class 3)

Lynda L. Ziegler (age 65) has been a director since February 2013 and was elected Vice Chair of the Board in April 2015, and then Chair of the Board in September 2016. In September 2012, Ms. Ziegler retired from Southern California Edison (SCE), one of the largest electric utilities in the U.S. (and a customer of Itron), whose parent is Edison International. During her tenure at SCE, she held various management positions related to customer program offerings, customer service, development, communication and implementation of energy efficiency programs, marketing and communication of smart meters, and generally led all aspects of delivering power to almost 5 million customers. From 2006 to 2011, Ms. Ziegler was Senior Vice President of Customer Service, and from January 1, 2011 until her retirement in September of 2012, she served as Executive Vice President of Power Delivery Services, where she was responsible for transmission and distribution construction and maintenance, customer service, information technology (IT), and support services including procurement and real estate management. In the past, she has served on the advisory committee for power delivery and utilization at the Electric Power Research Institute and was a founding member of the Board of the Association for Women in Water and Energy.

Ms. Ziegler brings to the Board her extensive background with public utilities, especially with her recent responsibilities in the industry related to smart meters and customer relations from the utility perspective. Her breadth of knowledge of software services, transmission and distribution construction and maintenance, IT, and business development adds to the diverse business backgrounds of our other members of the Board.


Thomas S. Glanville (age 59) has been a director since May 2001. Since 2003, Mr. Glanville has been the Managing Partner of Eschelon Advisors, LP and affiliates, providing energy and private equity investment and advisory services. From 1999 to 2002, Mr. Glanville served as Vice President of Technology and New Ventures for Reliant Energy, Inc., one of the world’s largest international energy services companies, and its affiliate, Reliant Resources, Inc. In September 2015, he was appointed to the board of directors of Mitcham Industries, Inc. (NASDAQ: “MIND”), a publicly traded technology company for the oceanographic, hydrographic, defense, seismic, and security industries, where he also serves as chair of the board’s audit committee. He currently serves on the board of directors of a privately-held oil and gas exploration and production company, Strand Energy, LLC. He served as Chairman of the Texas TriCities Chapter of the National Association of Corporate Directors (Houston, Austin, San Antonio) from 2011 through 2016.

Mr. Glanville brings to the Board financial expertise, industry-related experience through his association with Reliant Energy, energy sector exposure through the Eschelon entities and Mitcham Industries, and technology skills that include his involvement with electric metering studies and research while he was Vice President of Technology and New Ventures for Reliant Energy.

Diana D. Tremblay (age 58) has been a director since May 2015. In September 2017, Ms. Tremblay retired from General Motors Company, the motor vehicle manufacturer and distributor multinational corporation (NYSE: “GM”). She had been with that company since 1977, and during her tenure at GM, she held a variety of positions in engineering, manufacturing and labor relations, including direct operational responsibility for over 50,000 employees. From July 2013 to her retirement, Ms. Tremblay served as Vice President of Global Business Services, where she was charged with streamlining administrative processes around the world to improve service quality, reduce complexity, and achieve cost efficiencies in such areas as finance, human resources, real estate, purchasing, asset management, and master data. From December 2009 to July 2013, Ms. Tremblay held the position of Vice President of Manufacturing at GM.

Ms. Tremblay brings to the Board her broad business experience that includes her previous roles at GM as an engineer, plant manager, head of manufacturing, and lead labor relations negotiator, which together with her knowledge of business services and global manufacturing processes, provide additional international, administrative and manufacturing perspectives to the Board.

Directors Continuing in Office until 2020 (Class 1)

Jerome J. Lande (age 42) has been a director since December 2015. Mr. Lande joined Scopia Capital Management LP (Scopia), an asset management firm and one of Itron’s principal minority shareholders, as the Head of Special-Situation Investments in April 2016 and currently serves as a Partner at Scopia. He was previously the Managing Partner of Coppersmith Capital Management LLC (Coppersmith), an asset management firm focused on equity investing in small tomid-cap markets and in long-term value creation, which heco-founded in April 2012. Prior toco-founding Coppersmith, Mr. Lande was a partner of MCM Capital Management, LLC, the general partner of MMI Investments, LP, asmall-cap investment fund founded in 1996 to employ private equity investing methodologies in public equities, and where Mr. Lande oversaw research, trading and activism from 1998 to 2011. Prior to that time, he was associated with other equity investment firms where he was directly involved with corporate development as well as equity growth. Mr. Lande is a member of the board of directors of CONMED Corporation (NASDAQ: “CNMD”), a public global medical technology company, where he also serves on the compensation and strategy committees.

Mr. Lande brings to the board financial and investing acumen gained through his many years of experience at several equity investment firms, including his current employer Scopia (and affiliates), who is a principal minority shareholder of the Company.

Frank M. Jaehnert (age 60) has been a director since May 2015. From 1995 to his retirement in 2013, Mr. Jaehnert held several roles with Brady Corporation (NYSE: “BRC”), a publicly traded manufacturer and marketer of complete solutions that identify and protect premises, products and people. These roles included President and Chief Executive Officer from 2003 to 2013, Senior Vice President and President of a business line

from 2002 to 2003, and Vice President and Chief Financial Officer from 1996 to 2001. Prior to joining Brady Corporation, Mr. Jaehnert held various financial and management positions for Robert Bosch GmbH, a German multinational engineering and electronics company. Mr. Jaehnert serves on the board of directors of Nordson Corporation (NASDAQ: “NDSN”), which he joined in 2012, and Briggs & Stratton Corporation (NYSE: “BGG”), which he joined in 2014. NDSN and BGG are both publicly traded large manufacturing companies. Mr. Jaehnert also serves on the audit committees of both BGG and NDSN.

Mr. Jaehnert has extensive, broad-based international business and executive management and leadership experience. Mr. Jaehnert’s diverse background, his experience with geographic expansion and acquisitions, as well as his experience serving on other public company boards bring valuable perspectives to the Board.

Gary E. Pruitt (age 68) has been a director since 2006. In 2010, Mr. Pruitt retired as Chairman of Univar N.V. (Univar), a multi-national chemical distribution company based in Bellevue, Washington, and retired as Chief Executive Officer in October 2009. Before joining Univar in 1978, Mr. Pruitt was a chartered accountant with Arthur Andersen from 1973 through 1977. Mr. Pruitt is a member of the board of directors of Public Storage, Inc. (a real estate investment trust specializing in self-storage facilities) (NYSE: “PSA”) and PS Business Parks, Inc. (a full service real estate company) (NYSE: “PSB”). Mr. Pruitt is a Lead Independent Trustee of PSA and also serves as a member of its audit committee and nominating/corporate governance committee. He also is a member of the audit committee of PSB.

Mr. Pruitt brings to the Board his experience as a chief executive officer of a multi-national company and all the business attributes required of that position, along with operational and manufacturing expertise through his various other management positions held with Univar. His public accounting financial background and other public board experiences provide strategic and global perspectives on our business as well.

*
The table includes Mr. Glanville, who has not been renominated to serve as a director after the end of his current term ending at the Annual Meeting due to the term limit provision in our Governance Principles.
Director and Director Nominee Qualifications

Our Nominating and Corporate Governance Committee assists the Board in reviewing the business and personal background of each of our directors with respect to our business and business goals. Our skill criteria for our Board members includes a person whowith the following personal criteria: adheres to and demonstrates the highest ethical standards and integrity, in addition to the following: executive leadership experience; functional knowledge of technologypersonal and technology applications; international business experience; knowledge of the utility and energy industry; marketing and sales experience; financial experience gained from a chief financial officer position, a CPA, or other financial reporting background; expertise in manufacturing or software services; experience as an independent board member with a public company; knowledge and experience of executive compensation and benefits; and experience in business integrations, including mergers and acquisitions. In addition, we look for the following personal criteria:professional integrity; an effective negotiator, listener, and team player; a visionary with a strategic and global perspective; a successful leader with a proven record of accomplishments; a problem-solver; an effective decision-maker; and a person who will take a strong interest in the Company. In addition, we believe that certain skills and experience should be represented on the Board, as represented below, although not every Board member must possess all such skills and experience to be considered capable of making valuable contributions to the Board.
​
​​
Frank
Jaehnert
​​
Jerome
Lande
​​
Tim
Leyden
​​
Santiago
Perez
​​
Tom
Deitrich
​​
Gary
Pruitt
​​
Diana
Tremblay
​​
Lynda
Ziegler
​​
Thomas
Glanville*
​​
Total
​
​
Executive leadership experience
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
9
​
​
Business development experience
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
9
​
​
Financial literacy/CFO
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
​​
​​
■
​​
7
​
​
Public board and governance experience
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
9
​
​
Industry expertise
​​
​​
​​
​​
■
​​
■
​​
​​
​​
■
​​
■
​​
4
​
​
Global experience
​​
■
​​
​​
■
​​
■
​​
■
​​
■
​​
■
​​
​​
■
​​
7
​
​
Manufacturing and/or Supply Chain expertise**
​​
■
​​
​​
■
​​
■
​​
■
​​
■
​​
■
​​
​​
​​
6
​
​
Technology and Innovation expertise
​​
​​
​​
■
​​
■
​​
■
​​
■
​​
​​
​​
■
​​
5
​
​
Marketing/sales expertise
​​
​​
■
​​
​​
■
​​
■
​​
■
​​
​​
■
​​
■
​​
6
​
​
Hardware/software services expertise
​​
​​
​​
■
​​
■
​​
■
​​
​​
​​
■
​​
​​
4
​
​
Government expertise
​​
​​
​​
​​
​​
​​
​​
​​
■
​​
​​
1
​
​
Compensation, Benefits and Talent Management***
​​
■
​​
■
​​
■
​​
■
​​
■
​​
​​
■
​​
■
​​
​​
7
​
​
Mergers and Acquisitions
​​
■
​​
■
​​
■
​​
■
​​
■
​​
■
​​
​​
​​
■
​​
7
​
*
Mr. Glanville has not been renominated to serve as a director after the end of his current term ending at the Annual Meeting due to the term limit provision in our Governance Principles.
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TABLE OF CONTENTS

**
Has run or overseen manufacturing or supply chain operations.
***
Serves as member of the Compensation Committee of our Board or has overseen compensation and benefits in a management capacity.
Our Nominating and Corporate Governance Committee generally considers diversity as one of several factors relating to overall composition when makingrecommending nominations to our Board. Although we do not have a formal policy governing how diversity is considered theour Governance Principles state that diversity is an aspect that should be considered with respect to director nominations. The Nominating and Corporate Governance Committee generally considers diversity by examining the entire Board membership and when making nominations to our Board, reviewing the diversity of the entire Board. The Corporate Governance Committee construes Board diversity broadly to include many factors, including, but not limited to, gender, age, race and ethnicity. As a result, the Nominating and Corporate Governance Committee strives to ensure when recommending nominations to our Board that our Board is represented by individuals with a variety of different opinions, perspectives, personal, professional, and industry experience and backgrounds, skills, and expertise. In addition, as part of our effort to provide for fresh perspectives and diverse views on our Board, our Governance Principles require that a director will not be nominated for a new term if upon such nomination the director would be 75 years of age or older or if the director has served five full terms on the Board, unless the Board determines it to be in the best interests of the Company’s shareholders to renominate the director.
In connection with the last annual meeting, the Nominating and Corporate Governance Committee and the Board as a whole considered the diversity of the Board as a whole and the diverse perspectives of each nominee as one of several factors in its nomination decision. Currently, of the eightseven independent directors on our Board who are nominees or continuing on the Board after the Annual Meeting, three are either former Chief Financial Officers (CFOs) or former Chief Executive Officers, (CEOs), three are under the age of 60, sixfive have global business experience, one is Hispanic or Latinx, and two are women, including our Board Chair.

WhenChair and the Corporate Governance Committee considers candidates to be recommended toChair of the Board for inclusion onCompensation Committee.

The table below provides certain information regarding the slate of director nominees for the next annual meeting of shareholders, it creates a matrix for each candidate to address our criteria. The following matrix summarizes the skills and attributescomposition of our directorsBoard. Each of the categories listed in the below table has the meaning as it is used in Nasdaq Rule 5605(f) and director nominees for 2018 that we believe are essential to our business:

Frank
Jaehnert		Thomas
Glanville		Jerome
Lande		Tim
Leyden		Philip
Mezey		Dan
Pelino		Gary
Pruitt		Diana
Tremblay		Lynda
Ziegler

Senior leadership/ CEO/COO experience

ÖÖÖÖÖÖÖÖÖ

Business development experience

ÖÖÖÖÖÖÖÖÖ

Financial expertise/CFO

ÖÖÖÖÖÖ

Public board experience

ÖÖÖÖÖÖÖÖÖ

Independence

ÖÖÖÖÖÖÖÖ

Industry expertise

ÖÖÖ

Global experience

ÖÖÖÖÖÖÖ

Operational – manufacturing expertise*

ÖÖÖÖÖÖ

IT/technology/R&D/ Telecom expertise

ÖÖÖÖÖ

Marketing/sales expertise

ÖÖÖÖÖÖ

Hardware/software services expertise

ÖÖÖÖ

Government expertise

ÖÖ

Compensation and Benefits**

ÖÖÖÖÖÖÖ

Mergers and Acquisitions

ÖÖÖÖÖÖÖ

Demonstrated integrity-personal and professional

ÖÖÖÖÖÖÖÖÖ

*

Operational — manufacturing expertise: has run or overseen manufacturing operations.

**

Compensation and Benefits: serves as member of the Compensation Committee of our Board or has overseen compensation and benefits in a management capacity.

related instructions.

Board Diversity Matrix (As of March 22, 2022)
​
 
​​
Female
​​
Male
​​
Non-Binary
​​
Did Not
Disclose
Gender
​
​
Part I: Gender Identity
​​
​​
​​
​​
​
​
Directors
​​
2
​​
7
​​
—
​​
—
​
​
Part II: Demographic Background
​​
​​
​​
​​
​
​
African American or Black
​​
​​
​​
—
​​
—
​
​
Alaskan Native or Native American
​​
​​
​​
—
​​
—
​
​
Asian
​​
​​
​​
—
​​
—
​
​
Hispanic or Latinx
​​
​​
1
​​
—
​​
—
​
​
Native Hawaiian or Pacific Islander
​​
​​
​​
—
​​
—
​
​
White
​​
2
​​
7
​​
—
​​
—
​
​
Two or More Races or Ethnicities
​​
​​
1
​​
—
​​
—
​
​
LGBTQ+
​​
​​
​​
​​
​
​
Did Not Disclose Demographic Background
​​
​​
​​
​​
​
Director Qualifications and Attributes

We have concluded that all of our directors, including the nominees forre-election, have the skills, experience, knowledge, and personal attributes that are necessary to effectively serve on our Board and to contribute to the overall success of our Company. We believe that the diverse background of each of our Board members ensures that we have a Board that has a broad range of industry-related knowledge, experience, and business acumen.See also “CORPORATE GOVERNANCE – Director Nominations by Shareholders” in this proxy statement.

​​
-10-
​​
COMPENSATION

TABLE OF DIRECTORSCONTENTS

In 2017,

Compensation of Directors
The Nominating and Corporate Governance Committee annually reviews compensation paid to non-employee directors and makes recommendations for adjustment, as appropriate, to the Company increased the aggregate annual retainer for ourBoard. The Board Chair by $20,000, with the increase equally divided between cash and equity compensation. Except forlast adjusted the compensation paid to the Board Vice Chair and the Value Enhancement Committee members, both of which were established in 2015, as described below, the compensation paid to ournon-employee directors has remained the same since 2011.effective January 1, 2021. Both equity and cash compensation werepaid to our directors in 2021 was determined using benchmark data from our peer companies provided by the Compensation Committee’s independent compensation consultant, Frederic W. Cook & Co. (F.W. Cook).

Director Fees.Ournon-employee directors (other than our Board Chair and Vice Chair, if any) receive an aggregate annual retainer equal to $165,000, with $65,000 paid in cash and $100,000 paid in shares of our common stock. For our Chair, the aggregate annual retainer is equal to $250,000, with $120,000 paid in cash and $130,000 paid in shares of our common stock. For our Vice Chair, if any, the aggregate annual retainer is equal to $200,000, with $100,000 paid in cash and $100,000 paid in shares of our common stock. Members of the Audit/Finance Committee and the Value Enhancement Committee receive an additional annual retainer of $10,000 paid in cash, and members of our Compensation and Corporate Governance Committees receive an additional annual retainer of $6,500 and $5,000, respectively, paid in cash. The committee Chairs for the

​
Compensation structure for directors(1)
​​
2021
​
​
Regular retainer (all directors except Mr. Deitrich(2) and Board Chair Ms. Ziegler)
​
​
Total annual base retainer(3)
​​
$195,000
​
​
Cash
​​
$65,000
​
​
Stock
​​
$130,000
​
​
Annual committee chair retainer (cash)
​​
​
​
Compensation
​​
$21,500
​
​
Nominating & Corporate Governance
​​
$20,000
​
​
Audit/Finance
​​
$25,000
​
​
Annual committee member retainer (cash)
​​
​
​
Compensation
​​
$6,500
​
​
Nominating & Corporate Governance
​​
$5,000
​
​
Audit/Finance
​​
$10,000
​
​
Board Chair retainer
​​
​
​
Total annual Board Chair retainer(3)(4)
​​
$295,000
​
​
Cash
​​
$120,000
​
​
Stock
​​
$175,000
​
(1)
Director compensation is payable quarterly at the beginning of each quarter.
(2)
Mr. Deitrich is our CEO. In accordance with our Governance Principles, our employee directors do not receive any compensation for serving on the Board.
(3)
In 2014, the Board adopted a policy that permits a director age 65 or older to elect to receive all of his or her retainer in cash, provided they continuously meet the stock ownership guidelines described in the following paragraph.
(4)
The Board Chair receives no additional retainers for serving on any of our committees.

Corporate Governance and Compensation Committees receive an additional annual retainer of $15,000, and the Chairs of the Audit/Finance Committee and Value Enhancement Committee receive an additional annual retainer of $20,000, all paid in cash in quarterly installments. Our Board Chair receives no additional retainers for serving on any of our committees.See“LEADERSHIP STRUCTURE OF THE BOARD OF DIRECTORS”in this proxy statement for more information on the Chair and Vice Chair of the Board.

Newnon-employee directors receive a grant of restricted stock units (RSUs) equal in value to $32,500, which is 50% of the annual cash retainer for directors other than the Board Chair and Vice Chair, if any. Upon election to the Board, thenon-employee directors’ RSUs vest in equal installments on each of the first three anniversaries of the date of grant. Shares of our common stock and RSUs granted tonon-employee directors are issued under our Second Amended and Restated 2010 Stock Incentive Plan (Second A&R 2010 Plan).

In 2014, the Board adopted a policy that permits a director age 65 or older to elect to receive all of his or her retainer in cash, provided they continuously meet the stock ownership guidelines described in the following paragraph.

Stock Ownership Guidelines. Since 2006, we have maintained stock ownership guidelines for ournon-employee directors. We expect our directors to accumulate shares equal to five times their annual cash retainer within five years from their initial appointment or election as a director, or to be making progress towards meeting the guidelines. For our Board Chair that equates to a value of $600,000, for our Vice Chair, if any, that equates to a value of $500,000, and for the other directors, it equates to a value of $325,000. All of ournon-employee directors currently comply with these ownership guidelines, with the exception of Peter Mainz who joined the Board within the last three years.

Deferred Compensation Plan.Pursuant to the Company’s Amended and Restated Executive Deferred Compensation Plan dated January 1, 2012, ournon-employee directors are eligible to participate in that plan, and may defer up to 100% of any director fees and 100% of any shares of common stock that he or she anticipates receiving into a nonqualified account.

20172021 Director Compensation Table (for allnon-employee Directors)

Director Compensation

 

Name

 Fees
Earned
or Paid
in Cash
($)		  Stock
Awards
($) (18)		  Option
Awards
($) (19)		  Non-Equity
Incentive Plan
Compensation
($)		  Change in
Pension Value
and Nonqualified
Deferred
Compensation
Earnings
($)		  All Other
Compensation
($)		  Total
($)		 

Kirby Dyess (1)(2)(3)

  74,000   99,849   —     —     —     —     173,849 

Jon Eliassen (4)

  90,000   —     —     —     —     —     90,000 

Charles Gaylord (5)

  40,000   49,965   —     —     —     —     89,965 

Thomas Glanville (6)

  85,000   99,849   —     —     —     —     184,849 

Frank M. Jaehnert (1)(7)

  86,500   99,849   —     —     —     —     186,349 

Jerome Lande (8)(9)(10)(11)

  85,000   —     —     —     —     —     85,000 

Timothy Leyden (8)(12)(13)

  97,500   99,849   —     —     —     —     197,349 

Peter Mainz (1)(9)(10)

  81,500   99,849   —     —     —     —     181,349 

Daniel Pelino (1)(2)(14)

  74,000   99,849   —     —     —     —     173,849 

Gary Pruitt (8)(9)

  85,000   99,849   —     —     —     —     184,849 

Diana D. Tremblay (9)(15)

  90,000   99,849   —     —     —     —     189,849 

Lynda Ziegler (16)(17)

  115,000   124,805   —     —     —     —     239,805 

​
ITRON, INC.
​
​
Director Compensation
​
​
Name
​​
Fees Earned or
Paid in Cash
($)
​​
Stock
Awards
($) (17)
​​
Option
Awards
($)
​​
Non-Equity
Incentive Plan
Compensation
($)
​​
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings
($)
​​
All Other
Compensations
($)
​​
Total
($)
​
​
Thomas Glanville(1)(2)
​​
80,000
​​
129,772
​​
—
​​
—
​​
—
​​
—
​​
209,772
​
​
Frank Jaehnert(3)(4)
​​
91,500
​​
129,772
​​
—
​​
—
​​
—
​​
—
​​
221,272
​
​
Jerome Lande(1)(5)(6)
​​
—
​​
151,286
​​
—
​​
—
​​
—
​​
—
​​
151,286
​
​
Timothy Leyden(7)
​​
220,000
​​
—
​​
—
​​
—
​​
—
​​
—
​​
220,000
​
​
Daniel Pelino(8)(9)(10)
​​
38,250
​​
64,835
​​
—
​​
—
​​
—
​​
—
​​
103,085
​
​
Santiago Perez(3)(11)
​​
41,643
​​
76,033
​​
—
​​
—
​​
—
​​
—
​​
117,676
​
​
Gary Pruitt(1)(12)
​​
205,000
​​
—
​​
—
​​
—
​​
—
​​
—
​​
205,000
​
​
Diana Tremblay(13)(14)
​​
86,500
​​
129,772
​​
—
​​
—
​​
—
​​
—
​​
216,272
​
​
Lynda Ziegler(2)(15)(16)
​​
120,000
​​
174,825
​​
—
​​
—
​​
—
​​
—
​​
294,825
​
(1)

Member of the Compensation Committee.

(2)

Member of the Corporate Governance Committee.

(3)

Ms. Dyess joined the Corporate Governance Committee at the 2017 Annual Meeting and served as a member of that committee for the remainder of the year.

(4)

Mr. Eliassen did not stand forre-election at the 2017 Annual Meeting and retired effective May 12, 2017.

(5)

Mr. Gaylord did not stand forre-election at the 2017 Annual Meeting and retired effective May 12, 2017.

(6)

Chair of the Audit/Finance Committee.

(7)

Chair of the Corporate Governance Committee.

(8)

Member of the Audit/Finance Committee.

(9)(2)

Member of the Value EnhancementNominating and Corporate Governance Committee.

(10)

Messrs.​

​
-11-
​​

TABLE OF CONTENTS

(3)
Member of the Compensation Committee.
(4)
Chair of the Nominating and Corporate Governance Committee.
(5)
Mr. Lande and Mainz werewas initially appointed to the Board pursuant to a cooperation agreement with Coppersmith Capital Management, LLC, Scopia Management, Inc., and Jerome J. Lande, and Peter Mainz.

Lande.

(11)(6)

Includes a pro-rated stock award with a value of $21,514 for the fourth quarter of 2020 that was granted to Mr. Lande waived equity grants and hisin the first quarter of 2021. His cash retainers were paid directly to Scopia Capital Management LP.

paid.

(12)(7)

Chair of the Value EnhancementAudit/Finance Committee.

(13)

Mr. Leyden leftelected to receive his 2021 equity awards in cash.

(8)
Member of the Compensation Committee until his retirement from the Board at the 2021 annual meeting.
(9)
Member of the Nominating and Corporate Governance Committee until his retirement from the Board at the 2017 Annual Meeting.

2021 annual meeting.

(14)(10)

Mr. Pelino did not stand for re-election at the 2021 annual meeting and retired effective May 13, 2021.

(11)
Mr. Perez joined the Corporate Governance Committee at the 2017 Annual Meeting.

Board effective June 1, 2021.

(15)(12)

Mr. Pruitt elected to receive his 2021 equity awards in cash.

(13)
Chair of the Compensation Committee.

(16)(14)

Vice Chair of the Board.

(15)
Ms. Ziegler served as a member of the Nominating and Corporate Governance Committee, but was not compensated for her service on that committee.

committee given her position as Board Chair.

(16)
Board Chair.
(17)

Chair of the Board.

(18)

The amounts in this column reflect the aggregate grant date fair value of the awards determined in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“FASB ASC Topic 718”). Quarterly retainer grants to directors vest immediately. Mr. Eliassen elected to receive his retainer in cash. Ms. Dyess, Mr. Jaehnert, and Mr. Mainz elected to defer their equity grants for 2017. As of December 31, 2017, the following directors had the following RSUs outstanding: F. Jaehnert – 304; J. Lande – 313; T. Leyden – 289; P. Mainz – 608; D. Tremblay – 304.

Stock Ownership Guidelines
Since 2006, we have maintained stock ownership guidelines for our non-employee directors. We expect our directors to accumulate shares equal to five times their annual cash retainer within five years from their initial appointment or election as a director, or to be making progress towards meeting the guidelines. Based on 2021 director compensation, for our Board Chair that equates to a value of $600,000, and for the other directors, it equates to a value of $325,000. All of our non-employee directors currently comply with these ownership guidelines.
Deferred Compensation Plan
Pursuant to the Company’s Amended and Restated Executive Deferred Compensation Plan dated January 1, 2012, our non-employee directors are eligible to participate in that plan and may defer into a nonqualified account up to 100% of any director fees and 100% of any shares of common stock that he or she anticipates receiving.
(19)

No options were granted tonon-employee directors in 2017. As of December 31, 2017, the following directors had the following options outstanding: K. Dyess – 4,099; J. Eliassen – 1,000; C. Gaylord – 3,486; T. Glanville – 2,102; G. Pruitt – 3,486.

​		​
-12-
​​

LEADERSHIP STRUCTURE

TABLE OF THE BOARD OF DIRECTORSCONTENTS

CORPORATE GOVERNANCE
Leadership Structure of the Board of Directors
The leadership of our Board is managed by our Board Chair. Our Corporate Governance Guiding Principles (Governance Principles)generally require the role of Board Chair to be held by an independent director who meets the independence requirements of NASDAQ.the Nasdaq Stock Market. The Board believes having separate roles of Board Chair and CEO allows for a more balanced workload between the Board Chair and the CEO, especially in light of the current duties and responsibilities of the Board Chair, which include the following:

◾

Preside over all meetings of the Board (including executive sessions of the Board) and meetings of the shareholders;

◾

Review the agendas of each Board and committee meeting;

◾

Prepare agendas as needed for executive sessions of the independent directors;

◾

Serve as a liaison between the independent directors and the CEO;

◾

In consultation with the CEO, make recommendations to the Corporate Governance Committee as to membership of Board committees and appointment of Board committee Chairs; and

◾

Perform such other duties as the Board may require.

Preside over all meetings of the Board (including executive sessions of the Board) and meetings of the shareholders;

Review the agendas of each Board and committee meeting;
Prepare agendas as needed for executive sessions of the independent directors;
Serve as a liaison between the independent directors and the CEO;
In consultation with the CEO, make recommendations to the Nominating and Corporate Governance Committee as to membership of Board committees and appointment of Board committee Chairs; and
Perform such other duties as the Board may require.
Pursuant to theour Governance Principles, the Board Chair must be an independent director unless the Board determines that the best interests of shareholders would otherwise be better served. The Board Chair is elected by a majority of the members of the Board following the annual meeting of shareholders (or at such other time as a vacancy for the role of Board Chair may occur). The Board Chair serves for a term of three years (provided such director isre-elected by shareholders if his or her term as a director does not coincide with his or her term as Board Chair). The Board Chair may not serve more than two consecutive terms unless the Board approves an extended term. Our current Chair, Lynda L. Zeigler,Ziegler, is serving her firstsecond term that will expire atafter the 2019 annual meeting.

Annual Meeting.

If the Board determines that it is in the best interests of the shareholders to combine the roles of CEO and Board Chair, the Board will appoint a Lead Independent Director with the duties set forth in theour Governance Principles.

Since February 2015, our Governance Principles have provided for the role of Vice Chair, to be held by an independent director who meets the independence requirements of NASDAQ, unless the Board determines that the best interests of shareholders would otherwise be better served. As stated in the Governance Principles, the Vice Chair is appointed by the members of the Board and serves for a term to be determined by the Board (provided such director isre-elected by shareholders if his or her term as a director does not coincide with his or her term as Vice Chair). At the 2016 annual meeting after the elevation of Lynda L. Zeigler from Vice Chair to Chair, the Board chose to leave the position of Vice Chair vacant.

The Vice Chair, who like the Board Chair may serve on Board committees, has the following duties and responsibilities:

◾

Attend all meetings of the Board (including executive sessions of the Board) and meetings of the shareholders;

◾

Review the agendas of each Board and committee meeting and assist in the preparation of agendas as needed for executive sessions of the independent directors;

◾

Serve with the Board Chair as a liaison between the independent directors and the CEO;

◾

In consultation with the Board Chair and the CEO, make recommendations to the Corporate Governance Committee as to membership of Board committees and appointment of Board committee Chairs;

◾

Perform all duties of the Board Chair in the event the Board Chair is unavailable or unable to perform his or her duties; and

◾

Perform such other duties as the Board Chair or the Board may require.

The current Governance Principles, as amended, may be found online atwww.itron.com by selecting “Investors” and then “Corporate Governance.”

See “CORPORATE GOVERNANCE” in this proxy statement for additional information on our Board.

PROPOSAL 2 – ADVISORY APPROVAL OF EXECUTIVE COMPENSATION(Say-on-Pay)

We are asking our shareholders to approve anon-binding advisory resolution on the Company’s executive compensation programs for our Named Executive Officers (NEOs) (commonly known as“say-on-pay”) as we have described them in this proxy statement. Although this advisory vote isnon-binding, the Board and the Compensation Committee will take into account the outcome of the vote when considering future compensation decisions for our executives. As discussed in the Compensation Discussion and Analysis (CD&A) section of this proxy statement, we believe our compensation programs are reasonable, competitive and strongly focused onpay-for-performance principles that will result in the creation of long-term shareholder value. Some of the features of our compensation programs that illustrate our philosophy are:

◾

A significant portion of an NEO’s compensation isat-risk or performance-based and subject to the Company’s operating and financial performance. We consider annual cash-based incentives, equity long-term incentives, and stock options to be performance-based, because each of these three elements is valuable to the executive only if performance goals are achieved and/or our share price improves. In fiscal year 2017, the executive compensation package (base salary and short- and long-term incentives at target) included 84% ofat-risk compensation for the CEO and an average of 71% ofat-risk compensation for the other NEOs. Our long-term incentive plan (LTIP) for equity awards granted under our Amended and Restated 2010 Stock Incentive Plan (A&R 2010 Plan) or Second A&R 2010 Plan, as applicable has three-year performance periods, withone-year averages determined each year for measurement purposes, to encourage NEOs to make decisions that align our long-term goals with shareholder interests and to discourage excessive risk taking.

◾

Stock ownership guidelines require executive officers to acquire and hold certain amounts of Itron stock to further strengthen alignment of management’s interest with those of our shareholders.

◾

We have established an Incentive Repayment (Clawback) Policy that covers awards under all of our incentive programs, and provides that if a bonus or equity award is paid that is conditional on meeting certain financial metrics, and subsequently, there is a required material financial restatement, which had the correct information been known at the time would have resulted in a lower award, then the Board (or its delegated committee) has the right to demand repayment of the excess amount of the award, net of taxes. If the Board (or its delegated committee) determines that fraud has resulted in a material financial restatement, it is required that the Board demand repayment of the full award, net of taxes.

◾

We maintain our long-standing commitment to strong corporate governance by continuing our policies of (i) separate Board Chair and CEO roles, (ii) majority voting for directors, (iii) all independent Board members (except our CEO) and all independent committee members, (iv) executive sessions of independent directors after each quarterly Board meeting, and (v) prohibition on hedging or pledging of Itron stock by our executives.

◾

The compensation of our NEOs varies depending upon the achievement ofpre-established performance goals determined by the Compensation Committee (or the independent members of the Board, for the CEO), which are intended to serve as incentives for our executives. When performance does not meet thepre-established target goals, as was the case in prior years, then the amount of compensation paid to our executives is correspondingly reduced or eliminated. Conversely, when the Company’s operating and financial performance meets or exceeds thepre-established performance metrics, as was the case in fiscal year 2017, then the amount of compensation paid to our executives increases.See “The 2017 Executive Compensation Program in Detail” in the CD&A.

We believe our executive compensation policies have enabled us to retain and attract exceptional senior executives whose talent and experience have helped Itron become a leader in our industry. Our Compensation Committee (and the independent members of the Board for CEO compensation), which provides overall direction for our compensation programs, believes the fiscal year 2017 compensation paid to our NEOs is reasonable and appropriate and adequately reflects the Company’s overall performance in 2017.

Shareholders are encouraged to read the full details of our executive compensation programs as described in the Executive Compensation section of this proxy statement.

For the reasons provided above, we recommend that the shareholders vote in favor of the following resolution:

RESOLVED, that the shareholders approve, on anon-binding advisory basis, the compensation of the Company’s NEOs, as disclosed in the Executive Compensation section of the Company’s proxy statement for the 2018 Annual Meeting of Shareholders (which disclosure includes the Compensation Discussion and Analysis (CD&A), the Executive Compensation Tables, and the accompanying footnotes and narratives within the CD&A section of the proxy statement).

THE BOARD OF DIRECTORS RECOMMENDS A VOTEFOR THE APPROVAL OF THE EXECUTIVE COMPENSATION OF OUR NEOs.

PROPOSAL 3 – RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANT

The Board, upon the recommendation of its Audit/Finance Committee, has selected Deloitte & Touche LLP to serve as the Company’s independent registered public accountant for the 2018 fiscal year, subject to ratification by our shareholders. Although not required to do so, the Board is submitting the selection of Deloitte & Touche LLP for ratification by the Company’s shareholders for their views on the Company’s independent registered public accountant and as a matter of good corporate practice. Deloitte & Touche LLP has advised the Company that it has no direct, nor any material indirect, financial interest in the Company or any of its subsidiaries. Representatives of Deloitte & Touche LLP are expected to be present at the Annual Meeting, will have the opportunity to make a statement, if they desire to do so, and will be available to respond to appropriate questions.

In the event that our shareholders fail to ratify the selection, it will be considered as a direction to the Board and the Audit/Finance Committee to consider the selection of a different firm. Even if the selection is ratified, the Audit/Finance Committee in its discretion may select a different independent registered public accounting firm, subject to ratification by the Board, at any time during the year if it determines that such a change would be in the best interest of the Company and our shareholders.

THE BOARD RECOMMENDS THAT YOU VOTEFOR THE RATIFICATION

OF DELOITTE & TOUCHE LLP AS OUR INDEPENDENT REGISTERED

PUBLIC ACCOUNTANT FOR THE 2018 FISCAL YEAR.

CORPORATE GOVERNANCE

Corporate Governance Guiding Principles

The Company’s Governance Principles are available on the Company’s website,www.itron.com, by selecting “Investors” and then “Corporate“Sustainability and Governance.”

Board Matters – Meeting Attendance

Our business, property, and affairs are managed under the directionoversight of our Board. Members of our Board are kept informed of our business through discussions with our CEO and other officers, by reviewing materials provided to them, by visiting our offices, and by participating in meetings of the Board and its committees.

In accordance with our Governance Principles, directors are expected to attend the Company’s annual meeting of shareholders. All but one of our directors attendedserving at the 2017time of the 2021 annual meeting of shareholders attended in person or by telephone.person. During 2017,2021, the Board met sixteeneight times. All of the directors attended at least 75% of the meetings of the Board and committees on which he or she served.

Also, in accordance with our Governance Principles, our independent directors meet in an executive session as often as necessary, but no less than fourtwo times annually.

Director Independence

Our common stock is listed on the NASDAQNasdaq Stock Market stock exchange.exchange (Nasdaq). Under the rules of NASDAQ,Nasdaq, independent directors must comprise a majority of a listed company’s board of directors. In addition, the rules of NASDAQNasdaq require that, subject to specified exceptions, each member of a listed company’s audit, compensation, and nominating and corporate governance committees be independent. Under the rules of NASDAQ,Nasdaq, a director will only
​​
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​​

TABLE OF CONTENTS

qualify as an “independent director” if that company’s board of directors determines that the person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

As recommended by the Nominating and Corporate Governance Committee, the Board has determined that a majority of our Board are independent directors as defined under the rules of NASDAQNasdaq and the SEC, with Mr. MezeyDeitrich serving as the solenon-independent director. As Mr. MezeyDeitrich does not sitserve on any committees, and as recommended by the Nominating and Corporate Governance Committee, the Board has determined that all members of Itron’s committees are independent under SEC rules and NASDAQNasdaq listing standards.rules. In addition, as recommended by the Nominating and Corporate Governance Committee, the Board has determined that all members of our Audit/Finance Committee are independent under Rule10A-3 of the Securities Exchange Act.

Act of 1934, as amended (Exchange Act).

Committees of the Board

We have fourthree committees to assist the Board in fulfilling its responsibilities: Nominating and Corporate Governance, Audit/Finance, Value Enhancement, and Compensation. Each of the fourthree current committees operates under a written charter that has been approved by the Board. The committee charters are reviewed annually and are updated as necessary to reflect changes in regulatory requirements and evolving oversight practices. In 2017, with the exception of the Value Enhancement Committee, all of the committee charters were amended, as described below, and all fourAll of the current committee charters are available on our websitewww.itron.com, by selecting “Investors” and then “Corporate Governance.”

at http://investors.itron.com/corporate-governance-0. The following table shows the currentbelow provides membership of each committee at the end of fiscal 2017:

year 2021, followed by a description of each committee’s responsibilities.
​
Director
​​
Compensation
​​
Nominating and
Corporate
Governance
​​
Audit/Finance
​

Director

​
Thomas S. Glanville*
Compensation
Committee​		​Corporate Governance
Committee
​Audit/Finance
Committee​
Value
Enhancement
Committee​		​
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Kirby A. Dyess

​		XX

Thomas S. Glanville

Chair

Frank M. Jaehnert

​X​
Chair​​
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Jerome J. Lande

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​​X
​X​
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Timothy M. Leyden

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​​X
​Chair​
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Peter Mainz

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Thomas L. Deitrich
X​​
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X​​
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Daniel S. Pelino

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Santiago Perez
X​​X
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Gary E. Pruitt

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​​X
​X​
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Diana D. Tremblay

​Chair​
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​X​
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Lynda L. Ziegler

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X​​
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Our sole employee director, Philip C. Mezey, does not sit on any committees.    

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Committee Member
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Committee Chair
*
Mr. Glanville has not been renominated to serve as a director after the end of his current term ending at the Annual Meeting due to the term limit provision in our Governance Principles.

Nominating and Corporate Governance Committee.
The Nominating and Corporate Governance Committee (CGC)(NCGC) is primarily responsible for for:
developing and implementing our Governance Principles
overseeing the process for evaluating the performance of our Board Chair of the Board and the CEO, as well as the other directors and the Board as a whole soliciting recommendations for candidates for the Board,
determining the qualificationqualifications of the directors serving on the Board, making recommendations to the Board regarding theincluding their independence of the directors serving on the Board,
recommending candidates to serve on the Board and
reviewing and making recommendations to the Board with respect to candidates for directors proposed by shareholders. shareholders
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To assist the committeeNCGC in its identification of qualified director candidates, it has historically engagedusually engages an outside search firm and may do so in the future. The CGCNCGC also reviews the compensation paid to our directors and makes recommendations to the Board on director fees and other compensation payable to the Board members.

The Board amended the CGC’s charter in December 2017 to remove the responsibility of reviewing succession plans for the CEO and key executives as this is done by the full Board.    

All of the members of the CGCNCGC are independent under SEC rules and NASDAQNasdaq listing standards. The CGC held five meetings during 2017.    

rules.

Audit/Finance Committee.
The Audit/Finance Committee (AFC) monitorsis primarily responsible for:
overseeing our borrowingsaccounting and capital structure, accounting policies, internal controls over financial reporting processes and the audit of our financial results, and reviews at least quarterly our business financial risks to determine if management and our internal controls are identifying and mitigating risks associated with our business operations. In addition, the AFC determinesstatements
approving the compensation of our independent auditors
reviewing with management our business financial risks and makes recommendations to the Board to retainprocess by which management assesses and manages such financial risks
selecting, retaining, or terminateterminating our independent auditors. auditors
monitoring compliance with our code of conduct
The Board has determined that all members of the AFC are independent under SEC rules and NASDAQNasdaq listing standards,rules, including Rule10A-3 of the Exchange Act.

The Board amended the AFC’s charter in 2017 to reorganize current functions to reflect order of importance and added a periodic review of critical accounting policies to the AFC’s responsibilities. The CGCNCGC has determined that all of the current members of the Audit/Finance CommitteeAFC are financially literate in accordance with the Standards of NASDAQNasdaq Rule 5605(c)(2)(A)(iv), and “audit committee financial experts” as defined in Item 407(d)(5) of RegulationS-K. The AFC held eight meetings during 2017.

Compensation Committee.
The Compensation Committee (CC) is primarily responsible for making recommendationsfor:
recommending to the Board for our CEO’s total annual and long-term incentive compensation and for
setting compensation levels for our other executive officers. The CC also overseesofficers
overseeing the administration of various incentive compensation and benefit plans, which includes an annual evaluation of our compensation plans and policies. policies
The CC, when appropriate, may form and delegate authority to subcommittees and may delegate authority to one or more designated members of the Board or to Company officers.

The Board amended the CC’s charter in December 2017 to remove the responsibility of reviewing executive and management development plans. The Board has determined that all members of the CC are independent under SEC rules and NASDAQNasdaq listing standards.rules. In addition, all CC members are“non-employee “non-employee directors” underSection 16b-3 of the Exchange Act and “outside directors” for the purposes of Section 162 (m)162(m) of the U.S. Internal Revenue Code. The CC held nine meetings during 2017.See “EXECUTIVE COMPENSATION – CD&A” in this proxy statement for more information on the CC’s responsibilities regarding the compensation of our executives.

Value Enhancement Committee. The Value Enhancement Committee (VEC) reviews, studies and develops potential initiatives and transactions designed to create durable, sustainable long-term shareholder value. The VEC is charged with making recommendations to the Board regarding actions to be considered in furtherance of the committee’s purpose. The Board has determined that all members of the VEC are independent under SEC rules and NASDAQ listing standards. The VEC held six meetings in 2017.

executive officers.

Compensation Committee Interlocks and Insider Participation

No member of our Board’s Compensation Committee has served as an officer or employee of the Company. None of our executive officers serve as a member of the compensation committee of any other company that has an executive officer serving as a member of our Board. None of our executive officers serve as a member of the board of directors of any other company that has an executive officer serving as a member of our Board’s Compensation Committee.

Transactions with Related Persons

There were no related person transactions required to be disclosed pursuant to Item 404(a) of RegulationS-K in fiscal year 2017.2021. In order to determine this, the Board requires our executive officers, directors orand director nominees to disclose certain information regarding related person transactions. A “related person transaction” generally is a transaction (including any indebtedness or a guarantee of indebtedness) that involves the Company’s directors, executive officers, director nominees, 5% or more beneficial owners of the Company’s common stock, immediate family members of these persons, or entities in which one of these persons has a direct or indirect
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material interest. The current threshold required to be disclosed under SEC regulations is $120,000. Under its charter, the Corporate GovernanceAudit/Finance Committee of the Board has been delegated with the responsibility of reviewing and approving any related person transactions.

Our Board’s Role in Risk Oversight

The Board has overall responsibility for risk oversight, including, as part of regular Board and committee meetings, general oversight of our executives’ management of risks relevant to the Company. The Board routinely determines, directly or through Board committees, that:whether: (i) there are adequate processes designed and implemented by Company management such that risks have been identified and are being managed; (ii) the risk management processes are intended to ensure that Company risks are taken into account in corporate decision-making; and (iii) the risk management processes and procedures ensure that material risks to the Company are brought to the attention of the Board or an appropriate committee of the Board. Each of the Company’s risk management processes are reviewed periodically (but at least once a year) by either the Board or an appropriate committee to which the Board has delegated specific oversight responsibility, as described below. Throughout the year, the Board and each committee spend a portion of their time reviewing and discussing specific risk topics. Committee Chairs regularly report to the full Board on actions taken at committee meetings. At least annually, the Board conducts a review of our long-term strategic plans, and at each of our quarterly meetings, our General Counsel updates the Board on material legal and regulatory matters.

The Audit/Finance Committee is responsible for reviewing our major financial risk exposures, financial reporting, internal controls, credit and liquidity risk, compliance risk, and key operational risks. It meets regularly with our independent auditors and in executive session to facilitate a full and candid discussion of risk and other issues. Our Compensation Committee is responsible for overseeing compensation risks, including assessing

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Board
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Compensation
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Nominating and Corporate Governance
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Audit/Finance
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Overall responsibility for risk oversight
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Responsible for overseeing compensation risks, including assessing possible risks from our compensation plans and policies for our executives and ensuring that our executive compensation is aligned with Company performance
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Oversees our overall corporate governance, including Board and committee composition, Board size and structure, and our director independence
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Responsible for reviewing our major financial risk exposures, financial reporting, and monitors our credit and liquidity risk, and compliance risk
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Assesses directly, through Board committees or through established processes and procedures, risks relevant to the Company
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Reviews our Governance Principles annually pursuant to its charter
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Meets regularly with our independent auditors and in executive session to facilitate a full and candid discussion of risk and other issues
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Reviews a summary and assessment of such risks annually and in connection with discussions of various compensation elements and benefits throughout the year
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possible risks from our compensation plans and policies for our executives and ensuring that our executive compensation is aligned with Company performance. The Compensation Committee reviews a summary and assessment of such risks annually and in connection with discussions of various compensation elements and benefits throughout the year. Our Corporate Governance Committee oversees risks related to our overall corporate governance, including Board and committee composition, Board size and structure, and our director independence. The Corporate Governance Committee reviews our Governance Principles annually pursuant to its charter.

Following a review of the Company’s current risk management systems and processes, the Board has concluded that the current allocation of oversight responsibilities between the Board and its committees is adequate, provided that the committees continue to coordinate their risk oversight responsibilities, share information appropriately with the other Board members, and provide timely and adequate reports to the full Board. The Board continually evaluates its risk oversight role.

Code of Conduct

The Company has adopted a Code of Conduct that applies to all directors, officers, and employees of the Company and any subsidiary of the Company and is available on the Company’s website,www.itron.com, by selecting “Investors” and then “Corporate“Sustainability and Governance.” In addition, we have adopted policies and procedures for reporting and investigating suspected violations of the Code of Conduct. The Company intends to satisfy any future
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disclosure requirement under Item 5.05 of Form8-K regarding an amendment to or waiver from application of the code of ethics or provisions of the Code of Conduct, that applies to the CEO or the CFO, by posting such information on our website,www.itron.com.

Anti-Hedging Policy

The Company has adopted an Anti-Hedging Policy that prohibits our directors, officers, and employees from entering into transactions involving our securities that are designed to hedge or offset any decrease in the market value of Itron securities.See “EXECUTIVE COMPENSATION – CD&A – Anti-Hedging Policy” in this proxy statement for more information on this policy.

Director Term Limit and Retirement Guidelines
In 2022, the Board amended our Governance Principles to include a term limit provision to encourage Board refreshment. Non-executive directors will not be eligible to stand for re-election after serving as a director for five full terms on the Board, with limited exceptions. Additionally, the Board amended the retirement policy under which directors may not be nominated or appointed after age 75, unless the Board determines that it would be in the best interests of the Company’s shareholders to extend the director’s period of eligible service.
Incentive Repayment (Clawback) Policy

The Company has adopted a repayment or “clawback” policy, which provides that if a bonus or equity award (Award) is paid that is conditioned on meeting certain financial metrics, and, subsequently, there is a required financial restatement, which, had the correct information been known at the time, would have resulted in a lower Award, then the Board has the right to demand repayment of the excess amount of the Award, net of taxes, from an executive officer who has received an Award. If the Board (or its delegated committee) determines that fraud has resulted in a material financial restatement, it is required that the Board demand repayment from the executive officer engaged in the fraud of the full Award, net of taxes.

Director Nominations by Shareholders

In accordance with the Company’s Amended and Restated Bylaws, in order to nominate a director for election to the Board at an annual meeting of shareholders, a shareholder must deliver written notice of such nomination to the Corporate Secretary of the Company at the Company’s executive offices no fewer than 6090 days nor more than 90120 days prior to the date of the annual meeting (or if less than 60 days’ notice or prior public disclosure of the date of such annual meeting is given or made to the shareholders, not later than the tenth day following the day on which notice of the date of the annual meeting was mailed or public disclosure was made). The notice of a shareholder’s intention to nominate a director must include:

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the name and address of the shareholder;

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a representation that the shareholder is entitled to vote at the meeting at which directors will be elected;

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a statement of the number of shares of the Company that are beneficially owned by the shareholder;

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a representation that the shareholder intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice;

the name and address of the shareholder;

a representation that the shareholder is entitled to vote at the meeting at which directors will be elected;
a statement of the number of shares of the Company that are beneficially owned by the shareholder;
a representation that the shareholder intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice;
and the following information with respect to the person nominated by the shareholder:

name and address;
other information regarding such nominee as would be required in a proxy statement filed pursuant to applicable SEC rules;
a description of any arrangements or understandings between the shareholder and the nominee and any other persons (including their names), pursuant to which the nomination is made; and
the consent of such nominee to serve as a director, if elected.
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name and address;

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◾

other information regarding such nominee as would be required in a proxy statement filed pursuant to applicable SEC rules;

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a description of any arrangements or understandings between the shareholder and the nominee and any other persons (including their names), pursuant to which the nomination is made; and

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the consent of such nominee to serve as a director, if elected.

Other directors and senior management of the Company may also recommend director nominees for consideration by the Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee evaluates director nominees, including nominees that are submitted to the Company by a shareholder, taking into consideration the qualification criteria set forth under “ELECTION OF DIRECTORS – Director and Director Nominee Qualifications” in this proxy statement. In the event of a shareholder recommendation, the Nominating and Corporate Governance Committee screens and evaluates the person recommended in the same manner as other candidates. In addition, the Nominating and Corporate Governance Committee determines if the proposed director nominee will have sufficient time available to effectively carry out his or her Board duties and responsibilities effectively.responsibilities. The Nominating and Corporate Governance Committee may then recommend the director candidate to the Board for its consideration, if deemed appropriate.

Shareholder Communications with the Board

The Company’s Board provides a process whereby shareholders may contact the Board or any committee as a group or any committee Chair or individual director, by email addressed toboardofdirectors@itron.com. Shareholders should clearly specify in each communication the name of the director to whom the communication is addressed. Shareholders may also write to the Board or any committee as a group or any committee Chair or individual director by sending the communication to: Itron, Inc., Attn: Corporate Secretary, 2111 N. Molter Road, Liberty Lake, WA 99019. Communications may also be submitted through our website atwww.itron.com by selecting “Investors,” “Corporate“Sustainability and Governance,” and then “Contact the Board.”

Shareholder communications are delivered directly to the Corporate Secretary of the Company, who then determines whether to forward such communications to the specified director addressees. You can access a description of the process that the Corporate Secretary uses for determining whether to forward shareholders’ communications to directors at our website,www.itron.com, by selecting “Investors,” “Corporate“Sustainability and Governance,” and then “Contact the Board.”

Shareholders wishing to submit proposals for inclusion in the proxy statement relating to the 20192023 annual shareholders meeting should follow the procedures specified under “SHAREHOLDER PROPOSALS FOR THE 20192023 ANNUAL MEETING”MEETING” in this proxy statement. Shareholders wishing to nominate directors should follow the procedures specified under “CORPORATE GOVERNANCE –Director Nominations by Shareholders”Shareholders” in this proxy statement.
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PROPOSAL 2 – ADVISORY APPROVAL OF EXECUTIVE COMPENSATION (Say-on-Pay)
We are asking our shareholders to approve a non-binding advisory resolution on the Company’s executive compensation programs for our named executive officers (NEOs) (commonly known as “say-on-pay”) as we have described them in this proxy statement. Although this advisory vote is non-binding, the Board and the Compensation Committee will take into account the outcome of the vote when considering future compensation decisions for our executives. As discussed in the Compensation Discussion and Analysis (CD&A) section of this proxy statement, we believe our compensation programs are reasonable, competitive and strongly focused on pay-for-performance principles that will result in the creation of long-term shareholder value. Some of the features of our compensation programs that illustrate our philosophy are:
A significant portion of an NEO’s compensation is at-risk or performance-based and subject to the Company’s operating and financial performance. We consider annual cash-based incentives, equity long-term incentives, and stock options to be performance-based, because each of these three elements is valuable to the executive only if performance goals are achieved and/or our share price improves. In fiscal year 2021, the executive compensation package (base salary and short- and long-term incentives at target) included 83% of at-risk compensation for the CEO and an average of 70% of at-risk compensation for the other NEOs. Our long-term incentive plan (LTIP) for equity awards granted under our Amended and Restated 2010 Stock Incentive Plan (A&R 2010 Plan) or Second Amended and Restated 2010 Stock Incentive Plan (Second A&R 2010 Plan), as applicable, has three-year performance periods, with one-year averages determined each year for measurement purposes, to encourage NEOs to make decisions that align our long-term goals with shareholder interests and to discourage excessive risk taking.
Stock ownership guidelines require executive officers who are NEOs to acquire and hold certain amounts of Itron stock to further strengthen alignment of management’s interest with those of our shareholders.
We have established an Incentive Repayment (Clawback) Policy that covers awards under all of our incentive programs, and provides that if a bonus or equity award is paid that is conditional on meeting certain financial metrics, and subsequently, there is a required material financial restatement, which, had the correct information been known at the time, would have resulted in a lower award, then the Board (or its delegated committee) has the right to demand repayment of the excess amount of the award, net of taxes. If the Board (or its delegated committee) determines that fraud has resulted in a material financial restatement, the Board is required to demand repayment of the full award, net of taxes.
We maintain our long-standing commitment to strong corporate governance by continuing our policies of (i) separate Board Chair and CEO roles, (ii) majority voting for directors, (iii) all independent Board members (except our CEO) and all independent committee members, (iv) executive sessions of independent directors, and (v) prohibition on hedging or pledging of Itron stock by our executive officers.
The compensation of our NEOs varies depending upon the achievement of pre-established performance goals determined by the Compensation Committee (or the independent members of the Board, for the CEO), which are intended to serve as incentives for our NEOs. When performance does not meet the pre-established target goals then the amount of compensation paid to our executives is correspondingly reduced or eliminated. Conversely, when the Company’s operating and financial performance meets or exceeds the pre-established performance metrics, then the amount of compensation paid to our executives increases. See “The 2021 Executive Compensation Program in Detail” in the CD&A.
We believe our executive compensation policies have enabled us to retain and attract exceptional senior executives whose talent and experience have helped Itron become a leader in our industry. Our Compensation Committee (and for the CEO compensation, also the independent members of the Board), which provides overall direction for our compensation programs, believes the fiscal year 2021 compensation paid to our NEOs is reasonable and appropriate and adequately reflects the Company’s overall performance in 2021.
Shareholders are encouraged to read the full details of our executive compensation programs as described in the “EXECUTIVE COMPENSATION” section of this proxy statement.
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For the reasons provided above, we recommend that the shareholders vote in favor of the following resolution:
RESOLVED, that the shareholders approve, on a non-binding advisory basis, the compensation of the Company’s named executive officers, as disclosed in the Compensation Discussion and Analysis section of the Company’s proxy statement for the Annual Meeting, which disclosure includes the Executive Compensation Tables, and the accompanying footnotes and narrative disclosures within the proxy statement.
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The Board recommends that shareholders vote
“FOR” the approval of the compensation paid to
our named executive officers in fiscal year 2021
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EXECUTIVE COMPENSATION

Compensation DiscussionCOMPENSATION DISCUSSION & AnalysisANALYSIS (CD&A)

This CD&A explains our executive compensation program for our named executive officers (NEOs) listed below. The CD&A also describes the process followed by the Compensation Committee of the Board (referred to as the Compensation Committee or the Committee in this CD&A) for making pay decisions, as well as its rationale for specific decisions related to 2017.

2021.
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Name
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Title
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Name

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Thomas L. Deitrich

Title

Philip C. Mezey

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President and CEO

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Thomas L. Deitrich

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Executive Vice President and Chief Operating Officer (COO)

Robert H.A. Farrow*

Interim CFO and Vice President, Treasury and Strategic Planning

Joan S. Hooper*

Hooper
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Senior Vice President and CFO

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Michel C. Cadieux

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Sarah E. Hlavinka*

Senior Vice President, Human Resources

Shannon M. Votava

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Senior Vice President, General Counsel and Corporate Secretary

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W. Mark Schmitz*

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Michel C. Cadieux

Former Executive​

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Senior Vice President, and Chief Financial Officer (CFO)

Human Resources
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Donald L. Reeves III
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Senior Vice President, Outcomes
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*

EffectiveOn March 28, 2017, Mr. Schmitz stepped down from his position as Itron’s CFO and as an employee. For information about the 2017 compensation for which he was eligible, please refer to the “Summary Compensation Table.” From March 28, 2017 until June 5, 2017, Mr. Farrow, the Company’s Vice President, Treasury and Strategic Planning, served as interim CFO. On June 5, 2017,4, 2022, Ms. Hooper joined the CompanyHlavinka notified Itron that she is resigning as Senior Vice President, General Counsel and CFO, and Mr. Farrow remained as Vice President, Treasury and Strategic Planning.

Corporate Secretary, effective March 31, 2022.

Executive Summary

Business Performance

In 2017,

Market demand for Itron solutions reached new heights in 2021 as we improvedgrew our business results compareddistributed intelligence footprint by approximately 40% to 2016 driven3.8 million endpoints, ended the year with 82 million customer endpoints under Itron’s management, and achieved a record $2.8 billion in bookings that resulted in a record backlog of $4.0 billion.
Strong customer demand was offset by higher salesthe pandemic-induced component constraints, primarily semiconductors, impacting revenue by approximately $225 million in 2021. As we managed through these macro constraints, which heavily impacted Networked Solutions, we continued to have collaborative support from our customers on project profiles and have not seen any cancellation of backlog.
The progress we made in 2021 has better positioned Itron for the future. We delivered on our smart solutionscommitment to strengthen the balance sheet, continued the shift to an asset-light operating model with the announced sale of certain non-communicating gas devices; and continued our focus on innovation, resiliency, and sustainability as we worked to provide value for all our Company objectives for improved predictability, profitability,stakeholders.
Our financial performance was impacted by the macro supply chain challenges, which gated our ability to meet customer demand and growth. We exceeded Company targets forpressured our cost structure. In response, we have been working closely with our suppliers to maximize allocations and alternatives, tightened discretionary spending, and closely managed working capital throughout the year. Itron’s 2021 revenue, non-GAAP earnings per diluted share(1)(2) (EPS)(non-GAAP diluted EPS), while annual revenue remained roughly the same. We incurred higher costs in the second half of 2017 as we implemented changes in our supply chain, and we fell short on our earnings before interest, tax, depreciation and amortization (Adjusted EBITDA)(1)(2)(3), and Free Cash Flow(4) management target. These measurements are all strongly embedded in our executive compensation program:

as follows:
Revenue of approximately $2.0 billion decreased 9%;
Adjusted EBITDA of approximately $115 million decreased 35%;
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Total Company consolidated revenue of $2.0 billion was roughly flat to 2016;

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Total Company Adjusted EBITDA of $227.9 million improved by 9% percent over 2016; and

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Non-GAAP EPS of $3.06 increased by 20% over 2016.

Non-GAAP diluted EPS of $1.75 decreased 5%; and
Free Cash Flow of $120 million increased 90%.
(1)

A schedule reconciling Adjusted EBITDA to net income, andnon-GAAP diluted EPS to net income, and free cash flow to net cash provided by operating activities, is available on page 41pages 45-46 of our 20172021 Annual Report on Form10-K.

(2)

We define non-GAAP diluted EPS as non-GAAP net income divided by the weighted average shares, on a diluted basis, outstanding during each period.

(3)
We define Adjusted EBITDA as net income (loss) (a) minus interest income, (b) plus interest expense, depreciation and amortization, debt extinguishment, restructuring, loss on sale of intangible assets, restructuring,business, corporate transition cost, acquisition, related expense, goodwill impairmentand integration, and (c) excluding theincome tax expenseprovision or benefit.

These financial results reflect our continued operational transformation, including the implementation of global sourcing projects. The transition of our global supply chain will provide long-term flexible capacity and lower costs, while driving our core business objectives of predictability, profitability, and growth. During this time, our executive leadership team also remained focused on the Company’s strategic vision to be a leading partner with utilities in the resourceful delivery and use of energy and water. The Company took additional steps to invest in the internet of things (IoT) and networking capabilities to reduce operating expenses and create new revenue opportunities. The 2017 acquisitions of Comverge, Inc. and Silver Spring Networks, Inc. were of significance —

(4)
We define free cash flow as net cash provided by operating activities less cash used for acquisitions of property, plant and equipment.

further advancing our strategy of delivering highly-secure, value-generating solutions for utilities, smart cities, and the broader industrial IoT sector. These achievements demonstrate our executive leadership’s balanced approach to driving long-term growth in addition to near-term financial improvements at a time when our industry dynamics are changing.

Compensation Highlights

Our executive compensation program has three primary elements: base salary, annual cash incentives (as part of our Executive Management Incentive Plan (EMIP)), and long-term equity incentives (as part of our Long-Term Incentive Plan (LTIP)). Each of these compensation elements serves a specific purpose in our compensation strategy. Base salary is an essential component to any market-competitive compensation program. Annual incentives reward the achievement of short-term goals, while long-term incentives drive our NEOs to focus on long-term sustainable shareholder value creation.
Based on our performance and consistent with the design of our program, the Compensation Committee made the following executive compensation decisions for fiscal 2017:

year 2021:
Salary: None of the NEOs received base salary adjustments in 2021. See “Base Salary” in this CD&A for details.
EMIP:
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NoneApproved EMIP financial targets based on preliminary projections for 2021, including certain assumptions regarding the impact and timing of reduced COVID-19 restrictions on installations and stabilization of the NEOs received base salary adjustments in 2017, except that Mr. Farrow received additional compensation for each month he served as interim CFO and a merit based increase. See “Base Salary”in this CD&A for details.

supply chain.

○◾Set the maximum EMIP payout at 150% of target instead of the maximum of 200% allowed by the EMIP to ensure affordability; and
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EMIP: 2017 financial and strategic objectives resulted in an overall attainment percentageFor fiscal year 2021, to prioritize profitability improvement over revenue growth, the Compensation Committee revised the mix of 84.80%. This overall attainment result ismetrics under the EMIP to place a combination of achievement of specific total Company consolidated revenue andheavier emphasis on Adjusted EBITDA goals and strategic objectives.See “Annual Cash Incentives: The Executive Management Incentive Plan (EMIP)”in this CD&A for details.

as follows:

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Performance Objectives
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Performance Metrics & Weightings
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2020 EMIP Weighting
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2021 EMIP Weighting
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Financial (100%)
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Adjusted EBITDA
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45%
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60%
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Revenue
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45%
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30%
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Free Cash Flow
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10%
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10%
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Total
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100%
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100%
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Adjusted EBITDA focuses on profitable growth, while continuing to provide strong accountability for returns. Revenue ensures we are delivering an appropriate level of top-line growth. Free Cash Flow is a strong indicator of profitability adjusted for non-cash expenses and capital investments. The Compensation Committee retains discretion to further adjust the award upward or downward based on its assessment of Company and/or individual performance.
LTIP: To continue to strengthen alignment with the market and provide a balance between performance and retention, the Compensation Committee decided it would no longer grant stock options as part of the annual LTIP awards and instead used a mix of 50% performance-based restricted stock units (PRSUs) and 50% time-vested restricted stock units (RSUs). See “Long-Term Incentives” in this CD&A for details.
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LTIP: Under the LTIP, NEOs receive 50% of their grant in the form of performance-based restricted stock units (PRSUs). Consistent with the terms of the LTIP, the NEOs earned 111.07% of their target PRSUs for the 2015-2017 performance cycle. This attainment is the combination of an averagenon-GAAP EPS target attainment of 90.67% and a total shareholder return (TSR) multiplier of 123%.See “Long Term Incentives – A Closer Look at Performance-Based Restricted Stock Units (PRSUs)” in this CD&A for details.

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One-Time Equity Grant: As disclosed in last year’s proxy statement, in February 2021, the Compensation Committee approved a one-time grant of time-based RSUs to certain NEOs, which vest in equal installments over three years. The value of the RSUs granted to Ms. Hooper was $350,000. Messrs. Cadieux and Reeves RSUs were both granted at a value of $50,000. These grants were to support retention.
The Impact of Supply Chain Disruptions and Other Factors on Compensation Decisions
In 2021, we continued to navigate through the challenges presented by the ongoing COVID-19 pandemic. Our priorities remained focused on creating long term sustainable shareholder value, employee well-being and safety, and keeping our customers operational. Early in the year, at the time the Compensation Committee was establishing performance metrics and goals under the EMIP and for PRSUs for 2021, we were cautiously optimistic about the pace of economic recovery given signs that COVID-19 restrictions were easing, vaccine rollouts were moving quickly, and customer demand was strong. With this outlook, the Compensation Committee set goals for the incentive plans in early 2021 expecting an improved demand environment, reduced impacts from COVID-19 restrictions on installations, and minimal supply chain disruptions. However, the macro-economic environment, including the Delta and Omicron variants, caused new, unanticipated restrictions, and increased supply chain disruptions ― particularly the semiconductor chip shortage ― throughout 2021, resulting in unavoidable and unplanned constraints to meet our customer demands.
With this as the backdrop, and based on our performance results, the Compensation Committee made the following incentive plan payout decisions for fiscal year 2021:
EMIP: 2021 Adjusted EBITDA did not meet the original threshold performance levels. However, after evaluating the goal achievement under the original 2021 adjusted EBITDA goal, the Compensation Committee considered that, by force of circumstance, the original targets became effectively unattainable, and that, despite external headwinds, the Company ultimately performed favorably ― significantly increasing backlog through strong order intake. However, because of significant supply chain disruptions caused by several factors, including component supply constraints, orders could not be converted to revenue in 2021 and negatively impacted sales.
Based on these considerations (and unlike 2020 when the Compensation Committee did not adjust funding levels and there were no award payouts are alignedto the NEOs), the Compensation Committee made adjustments to the EMIP results as per the plan rules and within its mandate, resulting in an adjusted calculation of 85% attainment of target. Consistent with the Company’s businessphilosophy of making equitable, Company-wide compensation decisions for 2021, the adjusted attainment amount of 85% of target was applicable for all participants in a management incentive plan (approximately 1,842 employees), not just the NEOs. See “Annual Cash Incentives: The Executive Management Incentive Plan (EMIP)” in this CD&A for details.
LTIP: Non-GAAP diluted EPS for 2021 was $1.75, which did not meet the original threshold performance in 2017. Thelevels. However, the Compensation Committee believes thatdetermined it was appropriate to apply the designsame logic used for adjusting awards under the EMIP for purposes of determining 2021 non-GAAP diluted EPS performance for PRSUs under the LTIP. Unlike 2020 when no adjustments were made, the Compensation Committee adjusted results for the impact of supply chain disruptions and structureapproved 2021 non-GAAP diluted EPS achievement of $2.29 or 85% of the Company’s incentive program providetarget 2021 PRSU award. As a direct link between Company performance and pay outcomesresult, the NEOs earned 70.19% of their target PRSUs for the executives, as described2019-2021 performance cycle under the LTIP. This attainment is the combination of an average non-GAAP diluted EPS target attainment of 75.48% and a total shareholder return (TSR) multiplier of 0.93. See “Long-Term Incentives – A Closer Look at Performance-Based Restricted Stock Units (PRSUs)” in greater detail in the following section.

this CD&A for details.

Linking CEO Pay and Performance

A key component of our executive compensation philosophy is the link between compensation and overall business results and shareholder value creation. We strive to clearly communicate this to our shareholders and believe that looking at realizable pay in the following different contexts can illustrate this point effectively:

Realizable pay versus pay opportunity; and
◾​​

Realizable pay versus pay opportunity

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◾

Realizable pay for performance relative to peers

Realizable pay for performance relative to peers.
CEO Realizable Pay versus Pay Opportunity. Many of the required disclosures concerning CEO compensation discuss pay elements or opportunities that may be earned by the CEO. Realizable pay, on the other hand, more closely considers actual compensation earned (or earnable) based on performance. To illustrate the differences, we compared pay opportunity to realizable pay on ayear-by-year basis over the past three years; for this purpose, we use the following definitions:

Pay opportunityrepresents:

◾

The sum of base salary and target EMIP opportunity for each fiscal year; and

◾

The grant date fair value of stock options, RSUs and PRSUs granted in each fiscal year.

The sum of base salary and target EMIP opportunity for each fiscal year; and

The grant date fair value of stock options, RSUs and PRSUs granted in each fiscal year.
Realizable payrepresents:

◾

The sum of base salary and actual EMIP paid for each fiscal year;

◾

The “in the money” value of any stock options granted in each fiscal year, valued as of December 31 of each year;

◾

The value of RSUs granted in each fiscal year valued at their vesting date, or if unvested, as of December 31 of each year;

◾

The number of PRSUs actually earned based on performance, valued as of December 31 of each year; and

◾

For outstanding PRSUs (uncompleted performance cycles), the estimated number of PRSUs based on performance to date, valued as of December 31 of each year.

The sum of base salary and actual EMIP paid for each fiscal year;
The “in the money” value of any stock options granted in each fiscal year, valued as of their vesting date, or if unvested, as of December 31, 2021;
The value of RSUs granted in each fiscal year valued at their vesting date, or if unvested, as of December 31, 2021;
The number of PRSUs actually earned based on performance, valued as of December 31, 2021; and
For outstanding PRSUs (uncompleted performance cycles), the estimated number of PRSUs based on performance to date, valued as of December 31, 2021.
The chart below illustrates Mr. Mezey’sDeitrich’s realizable pay compared to his pay opportunity,opportunities, as well as the correspondingyear-end stock price for the last three years.

LOGO


CEO Realizable Pay for Performance Relative to Peer Group. To provide another perspective, it is also helpful to understand the degree of alignment between CEO realizable pay andperformance relative to our peer companies.companies. See“Our Decision MakingDecision-Making Process – The Role of Peer Companies”Companies” in this CD&A for a list of the peer companies. To evaluate this alignment, we analyzed the relationship between realizable total direct compensation (TDC) for the CEO over 2014-20162018-2020 for the peer companies and for the Company, and TSR for the three years ended December 31, 2016. This2020. Note that this time period was selected because it was most closely aligned withis different than used in the chart above since disclosed compensation information available for our peer group companies forwas only available through 2020 at the years that Mr. Mezey has been our CEO.time of the analysis.
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For this purpose, realizable TDC is defined as the sum of:

◾

Actual base salaries paid over the three-year period;

◾

Actual annual incentives (bonuses) paid over the three-year period;

◾

“In-the-money” value as of December 31, 2016 of any stock options granted over the three-year period;

◾

The value as of December 31, 2016 of any restricted shares granted (including vested and unvested shares) over the three-year period; and

◾

Cash-based long-term incentives awarded during the period, and the value as of December 31, 2016 of any performance shares granted over the three-year period (assuming target performance for cycles not completed).

Actual base salaries paid over the three-year period;

Actual annual incentives (bonuses) paid over the three-year period;
“In-the-money” value as of December 31, 2020 of any stock options granted over the three-year period;
The value as of December 31, 2020 of any restricted shares granted (including vested and unvested shares) over the three-year period; and
Cash-based long-term incentives awarded during the period, and the value as of December 31, 2020 of any performance shares granted over the three-year period (assuming target performance for cycles not completed).
The chart below illustrates the percentile ranking of our three-year TSR and Mr. Mezey’sItron CEOs’ realizable TDC relative to our peer companies. As the chart indicates, during the three-year period our TSR performance was abovebelow the median of the peer companies and Mr. Mezey’sour CEOs’ realizable TDC was also abovebelow the median. Mr. Mezey’sItron CEO realizable TDC was within an “alignment corridor” representing a strong correlation between compensation and performance.

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LOGO

Best Compensation Practices & Policies

We also believe the followingCompany’s practices and policies promote sound compensation governance and are in the best interests of our shareholders and executives:

​

What We Do

​

​

What We Don’t Do

​
​
☑

☑ ​

​
Heavy emphasis on variable compensation

​

​

☒
​​
No employment agreements

​
​
☑

☑ 50%​

​
Significant portion of annual long-term incentives are performance based

​

​

☒
​​
No “single trigger”change-in-control cash payments

​
​
☑

☑ ​

​
Rigorous stock ownership guidelines

​

​

☒
​​
No tax gross upsgross-ups in ourchange-in-control agreements

​
​
☑

☑ ​

​
Incentive Repayment (Clawback) Policy

​

​

☒
​​
No option backdating or repricing

​
​
☑

☑ ​

​
Independent compensation consultant

​

​

☒
​​
No hedging or pledging

​
​
☑

☑ ​

​
Annual risk assessments

​

​

☒
​​
No special perquisites

​

20172021 Say-On-Pay & Shareholder Engagement

Each year, we carefully consider the results of our shareholdersay-on-pay vote from the preceding year. We also take into accountconsider the feedback we receive from our major shareholders, which is solicited by the Board Chair, of the Board, and the Chair of the Compensation Committee, either in person or via telephone.

In 2017,2021, approximately 95%90.49% of the votes cast supported our executive compensation decisions. Since 2012, theThe Board has regularly conductedconducts proactive outreach meetings with the company’sCompany’s largest shareholders. During 2017,2021, the Company offered meetings to our top 100 shareholders representing 45% of shares outstanding, and directors met with shareholders representing 15%approximately 84% of shares outstanding, to discussinvite them to have discussions with our directors on topics including Company strategy and performance, governance, and executive compensation. Overall, our shareholders are highly supportive of our executive compensation program and its direction. Based on the positive feedback we received from our major shareholders, in addition to the vote result in 2017, we did not make substantive changes to the structure of our program. We will continue to keep an open dialogue with our shareholders to help ensure that we have a regular pulse on investor perspectives.

What Guides Our Program

Our Compensation Philosophy & Objectives

The philosophy underlying our executive compensation program is to employ the best leaders in our industry to ensure we execute on our business goals, promote bothshort-and long-term profitable growth of the Company, and create long-term sustainable shareholder value, all grounded in the following guiding principles:

​
Pay for Performance
​

​

A significant portion of an executive’s total compensation should be variable (“at risk”at-risk”) and dependent upon the attainment of certain specific and measurable annual and long-term businessfinancial performance objectives.

​
​
​​
​
​
Shareholder Alignment
​

​

Executives should be compensated through pay elements (base salaries and annual- and long-term incentives) designed to createalign executive compensation to the creation of long-term value for our shareholders, as well as foster a culture of ownership.

shareholders.
​
​
​​
​
Competitiveness​
Competitiveness

​

​
Target compensation should be set at the median of market to ensure that compensation is at a level that is competitive with that being offered to individuals holding comparable positions at other companies with which we compete for business and leadership talent.

​
​
​​
​
​
Attraction and Retention
​

​

The executive compensation program should enable the Company to attract highly-talentedhighly talented people with exceptional leadership capabilities and to retain high-caliber talent.

When required, the Company may adjust individual elements of compensation to accomplish this goal.
​
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The Principal Elements of Pay: Total Direct Compensation (TDC)

Our compensation philosophy is supported by the following principal pay elements:

​
Pay Element
​​
How Its It’s
Paid
​​
What It Does
​​
How It Links to Performance
​
​
Base Salary
​

Cash

(Fixed)

​
Cash (Fixed)
​​
Provides a competitive fixed rate of pay relative to similar positions in the market, and enables the Company to attract and retain critical executive talent
​​
Based on job scope, level of responsibilities, individual performance, experience, and market levels
​
​
Annual Cash Incentive (EMIP)
​

Cash

(Variable)

​
Cash (Variable)
​​
Focuses executives on achieving annual financial and strategic goals that drive long-term shareholder value
​​
•

◾      ​

​
Financial metrics: Adjusted EBITDA, Revenue, and Free Cash Flow
​
​
•
​​
Payouts: 0% to 180%200%* of target based on financial results and strategic goalperformance attainment againstpre-established pre-determined goals,

◾      Financial metrics: Total Company consolidated revenue and subject to the achievement of a threshold Adjusted EBITDA

◾      Strategic goals: tied to specific strategic objectives

goal
​
​
•
​​
The Committee retains discretion to further adjust the award upward or downward based on its assessment of Company and/or individual performance
​
​
Long-Term Incentive Plan (LTIP)
​

Equity

(Variable)

​
Equity (Variable)
​​
Provides incentives for executives to execute on longer-term financial/strategic growth goals that drive shareholder value creation and support the Company’s retention strategy
​​
See below
​
​

50% of LTIP Grant:

Performance- Based

Performance-Based Restricted Stock Units (PRSUs)

​​
Rewards achievement of financial goals measured over a three-year performance period
​​
•

◾      ​

​
Financial metrics: Non-GAAP diluted EPS and relative TSR
​
​
•
​​
Payouts: 0% to 200% of a target based on results againstpre-established pre- determined financial goals and relative TSR performance

◾      Financial metrics:Non-GAAP EPS and relative TSR

​
​
Time-Vested Restricted Stock Units (RSUs)
​

25% of LTIP Grant:

Stock Options

​
Supports retention
Rewards for stock price appreciation​​
•
​

◾      Exercise price: 100% of fair market value on the grant date

◾      ​

Vesting: 1/3 per year on the anniversary of the grant date

◾      Exercise term: 10 years

​
​
•
​

25% of LTIP Grant:

Time-Vested Restricted Stock Units (RSUs)

​		Supports retention

◾      Vesting: 1/3 per year on the anniversary of the grant date

◾      

Paid in Itron shares at vesting

​
*
Plan design allows for 200%; for fiscal year 2021, the maximum payout was set at 150% of target to ensure affordability.
​​
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Pay Mix

The charts below show the target annual TDC of our CEO, Mr. Deitrich, and our other NEOs for fiscal 2017.year 2021. These charts illustrate that a majority of NEO TDC is variable (84%(83% for our CEO and an average of 71% for our other NEOs).

LOGO

These charts do not include any one-time equity grants or awards outside of target annual TDC, if any.


 Note: Figures may not add up to 100% due to rounding.
Our Decision MakingDecision-Making Process

The Role of the Compensation Committee

The Compensation Committee oversees the executive compensation program for our NEOs. The Committee is comprised of independent,non-employee members of the Board. The Committee works very closely with its independent consultant and management to examine the effectiveness of the Company’s executive compensation program throughout the year. Details of the Committee’s authority and responsibilities are specified in the Compensation Committee’s charter, which may be accessed at our website,www.itron.com, by clickingselecting “Investors,” and then “Corporate“Sustainability and Governance.”

The Committee makes all final compensation and equity award decisions regarding our NEOs, except for the CEO, whose compensation is determined by the independent members of the full Board, based upon recommendations of the Committee.

The Role of Management

Members of our management team attend regular Compensation Committee meetings where executive compensation, Company and individual performance, and competitive compensation levels and practices are discussed and evaluated. Only the Committee members are allowed tocan vote on decisions regarding NEO compensation.

The CEO reviews his recommendations pertaining to the compensation of other executives(non-NEO) paynon-NEO executive officers with the Committee providing management input, transparency, and oversight. Decisions onApprovals of non-NEO pay executive officer compensation are made by the CEO.Committee. The CEO does not participate in the deliberations of the Committee regarding his own compensation. Independent members of the Board make all final determinations regarding CEO compensation.

The Role of the Independent Consultant

The Committee engages an independent compensation consultant to provide expertise on competitive pay practices, program design, and an objective assessment of any inherent risks of any programs. Pursuant to authority granted to it under its charter, the Committee has hired F.W. Cook as its independent consultant. F.W. Cook reports directly to the Committee and does not provide any additional services to management. The Committee has conducted an independence assessment of F.W. Cook in accordance with SEC rules.rules and concluded that F.W. Cook is independent.
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The Role of Peer Companies

For some of our direct competitors who are not publicly held, or are smaller business units within a conglomerate, there is limited compensation information available. As a result, our peer companies for purposes

of benchmarking executive compensation (Peer Companies) generally consist of direct competitors for which public information is available or companies that compete for our talent, who are part of the same broad Standard & Poor’s (S&P) industry classifications of technology hardware and equipment or in software and services, and who are similar in size and scope of global operations as Itron. The Committee reviews the Peer Companies on an annual basis.

For the purposes of

Our current Peer Companies for setting 2017 compensation were updated in 2018. After review, and with the support of F.W. Cook, the Committee did not make anydetermined that no changes to the Peer Companies. Note that due to acquisition by MicroChip technology in April 2016, Atmel Corporation was eliminated.

Peer Companies

 Peer Data as of12-31-2016 

Ametek Inc.

  OSI Systems, Inc   $ Millions 

Ciber, Inc.*

  Roper Technologies Inc.  Percentile   Revenue    Market Cap 

Diebold Nixdorf, Inc.

  Teradyne Inc.  25th   $1,156    $1,782 

EPAM Systems, Inc.*

  Trimble Inc.  50th   $2,058    $3,905 

ESCO Technologies Inc.

  Unisys Corporation*  75th   $3,623    $7,887 

FLIR Systems, Inc.

  Watts Water Technologies, Inc     

Juniper Networks, Inc.*

  Xylem Inc.  Itron   $2,013    $2,405 

Mueller Water Products, Inc.

  Zebra Technologies Corp*  Percentile Rank   50%    41% 

Companies were necessary for the purposes of setting 2021 compensation. The 2021 Peer Companies are listed below:
​
Peer Companies
​
​
​​
​
​
Diebold Nixdorf, Inc.*
​​
PTC Inc.
​
​
EPAM Systems, Inc.*
​​
Roper Technologies Inc.*
​
​
F5 Networks, Inc.*
​​
Teradyne Inc.
​
​
FLIR Systems, Inc.**
​​
Trimble Inc.*
​
​
ITT Inc.
​​
Unisys Corporation*
​
​
Keysight Technologies, Inc.*
​​
Watts Water Technologies, Inc
​
​
Mueller Water Products, Inc.
​​
Xylem Inc.
​
​
NetScout Systems, Inc.*
​​
Zebra Technologies Corp*
​
​
Peer Data as of 12-31-2020
​
​
 
​​
$Millions
​
​
Percentile
​​
Revenue
​​
Market Cap
​
​
25th
​​
$1,820
​​
$3,575
​
​
50th
​​
$2,569
​​
$12,396
​
​
75th
​​
$3,982
​​
$19,947
​
​
 
​​
​​
​
​
Itron
​​
$2,173
​​
$3,874
​
​
Percentile Rank
​​
36%
​​
26%
​
*

Software and services included in their business mix

mix.

**
FLIR Systems, Inc. was acquired by Teledyne Technologies, Inc. in May 2021.

For each of the Peer Companies, data regarding base salaries, annual incentives, and long-term incentives was obtained from their annual proxy statements and reviewed by the Committee’s compensation consultant, Pearl Meyer.statements. This data was supplemented with survey data prepared by Radford Survey & Consulting (Radford Survey), which provides compensation market information on more than 700 technology companies, aggregated, and presented anonymously. The Radford Survey data was narrowed to those technology companies with revenues between $1 billion and $3 billion, similar to Itron.

With the support of F.W. Cook, the Committee evaluates this data for informational purposes when establishing a range of competitive compensation for our NEOs. For each NEO, the Committee determines the salary range, annual incentive target, and long-term incentive taking into consideration market data for the position being evaluated. However, market data is not the sole determinant of the Company’s practices or executive compensation levels. The Committee also takes into accountconsiders the experience, performance, responsibilities, and contributions to the Company by each NEO when making its decisions. For the CEO, the Committee makes a recommendation to the full Board, and the independent members of the Board review and approve the CEO’s compensation.

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The 20172021 Executive Compensation Program in Detail

Base Salary

Base salary represents annual fixed compensation and is a standard element of compensation necessary to attract and retain executive leadership talent. In making base salary decisions, the Committee considers the CEO’s recommendations for NEO compensation (other than the CEO), as well as each NEO’s position and level of responsibility within the Company. The Committee takes into accountconsiders factors such as relevant market data as well as individual performance and contributions. The Committee approved the CEO recommended annualAnnual base salary rate,rates for 2021 were unchanged from 2020 and the independent members of the Board approved the CEO annual base salary ratewere as follows:

NEO

  2016   2017   % Increase

Philip C. Mezey

  $800,000   $800,000      0%

Thomas L. Deitrich

  $550,000   $550,000      0%

Robert H.A. Farrow*

  $293,000   $300,000   2.4%

Joan S. Hooper**

  $NA   $485,000      NA

Michel C. Cadieux

  $400,000   $400,000      0%

Shannon M. Votava

  $400,000   $400,000      0%

W. Mark Schmitz

  $475,000   $475,000      0%

*

Mr. Farrow’s annual base salary as interim CFO was $293,300. He also received an additional payment of $7,000 for each month he served as interim CFO. Mr. Farrow received a merit increase bringing his salary to $300,000 on July 3, 2017.

**

Ms. Hooper’s annual base salary as CFO was set at $485,000 when she was hired on June 5, 2017.

​
NEO
​​
2020
​​
2021
​​
% Increase
​
​
Thomas L. Deitrich
​​
$800,000
​​
$800,000
​​
0%
​
​
Joan S. Hooper
​​
$520,000
​​
$520,000
​​
0%
​
​
Sarah E. Hlavinka
​​
$475,000
​​
$475,000
​​
0%
​
​
Michel C. Cadieux
​​
$410,000
​​
$410,000
​​
0%
​
​
Donald L. Reeves III
​​
$425,000
​​
$425,000
​​
0%
​
Annual Cash Incentives: The Executive Management Incentive Plan (EMIP)

The 20172021 EMIP provided our NEOs the opportunity to earn a performance-based annual cash bonus. Actual bonus payouts depend on the achievement ofpre-established pre-determined financial performance objectives and can range from 0% to 180%150% of target award amounts. Target annual bonus opportunities are expressed as a percentage of base salary and were established by the NEO’s level of responsibility and his or her ability to impact overall results. The Committee also considers market data in setting target award amounts. 2017, target award opportunities for 2021 remained unchanged from 2016 target award opportunities2020, and were as follows:

​
NEO

NEO

​		​
Target EMIP
(as a % of
Base Salary)
​

Philip C. Mezey

​		125%

Thomas L. Deitrich

​100%​
125%
​

Robert H.A. Farrow*

​		50%

Joan S. Hooper

​​
75%
​

​

Sarah E. Hlavinka
​​
75%
​
​
Michel C. Cadieux

​​
75%
​

Shannon M. Votava

​
Donald L. Reeves III
65%

W. Mark Schmitz

​		​75%
60%
​

*

Mr. Farrow’s target EMIP opportunity was 50% of his base salary for 2017 only (to reflect his role as Interim CFO).

2017

2021 Financial Performance Objectives. An individual NEO’s EMIP award is based on a combinationmix of financial and strategic objectives.

​
Performance Objectives
​​
Performance Metrics & Weightings
​​
EMIP Weighting
​
Performance Objectives​
Financial (100%)
Metrics & Metrics Weighting​​EMIP Weighting
Adjusted EBITDA
​​
60%
​
Financial​
Revenue
Total Company Consolidated Revenue (30%)​​  24%
30%
​
​
Free Cash Flow
Total Company Adjusted EBITDA (70%)​​  56%
10%
​
Strategic ​
Total
Strategic Objectives​​  20%
Total      
​​
100%
100%​

In 2017, we used total Company consolidatedFor fiscal year 2021, to prioritize profitability improvement over revenue and Adjusted EBITDA asgrowth, the financial performanceCompensation Committee returned the mix of metrics inunder the EMIP because we believe it is important to focusagain place a heavier emphasis on both top line growth (revenue), as well as profitability. Total CompanyAdjusted EBITDA. Adjusted EBITDA provides a more useful illustration of our financial performance and the ongoing operations of our business, since the adjustments exclude certain expenses that are not indicative of our recurring core operating results. This facilitates better comparisons to our historical performance and our competitors’ operating results. To continue our focus on profits and sales performance, the weighting of the financial performance objectives (which represent 80% of a NEO’s EMIP award) for 2017 was 70% total Company Adjusted EBITDA and 30% total Company consolidated revenue. A schedule reconciling Adjusted EBITDA to net income andnon-GAAP EPS to GAAP EPS is available on page 41 of our 2017 Annual Report on Form10-K.

Each year, the Committee reviews the financial performance and considers adjustments for items that are not reflective of normal operating performance for that year. These adjustments are items that the Committee believes are fair to both participants and shareholders, encourage appropriate actions that foster the long-term health of the business, and are consistent with the objectives underlying our predetermined performance goals. Such exclusions
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may consist of the costs and financial effects of restructuring, acquisitions, and dispositions, selected legal costs and settlements, pandemics, and the effects of foreign currency translation.

2017

2021 Financial Performance Levels & Results. The following table shows the financial performance necessary to achieve threshold (0% payout), target (100% payout), and maximum (150% payout) bonus payout amounts, along with actual results for 2017:

ThresholdTargetMaximumActual
Results

Total Company Consolidated Revenue

$1,846 M$2,052 M$2,257 M$2,018 M

Total Company Adjusted EBITDA

$204 M$232 M$260 M$228 M

2021:

​
 
​​
Threshold
($M)
​​
Target
($M)
​​
Maximum
($M)
​​
Actual
Results ($M)
​
​
Adjusted EBITDA
​​
$175
​​
$233
​​
$256
​​
$115
​
​
Revenue
​​
$2,160
​​
$2,250
​​
$2,340
​​
$1,982
​
​
Free Cash Flow
​​
$88
​​
$110
​​
$132
​​
$120
​
Note: Payouts are linearly interpolated for performance between threshold target and maximum.

2017 Strategic Goals & Achievements. The strategic goals for the NEOs, as determined in consultation with the CEO and reviewed with the Committee, generally encompass objectives as they relate to both the individual business segments and the entire Company. For 2017, they were developed to continue to strengthen our operational results through objectives that align to predictability, profitability, and growth.

Approved strategic goals included meeting return on invested capital targets, growth in Software and Services revenue and margin, cost ofnon-quality targets, improvement in predictability of quarterly financial results, and new hire goals focused on diversifying and broadening our organizational talent capabilities. The Company achieved partial results on goals relating to predictability in results and diversifying and refreshing organizational talent. The Company missed the goal related to growth in Software and Services revenue and margin, but fully achieved specific strategic goals relating to return on invested capital and cost ofnon-quality.

2017 EMIP Results and Payouts.The following table summarizes the financial and strategic performance results for 2017:

Performance Objectives  Weighting   Percentage of
Attainment		  Overall Weighted
Attainment
Total Company Consolidated Revenue   24%   87.79%  21.07%
Total Company Adjusted EBITDA   56%   89.70%  50.23%
Strategic Objectives   20%   67.50%  13.50%
Total:          84.80%

Based on the above, Adjusted EBITDA did not meet threshold performance levels. However, as described under “The Impact of Supply Chain Disruptions and Other Factors on Compensation Decisions” in the Executive Summary of this CD&A, after evaluating the goal achievement under the original 2021 adjusted EBITDA goal, the Compensation Committee considered that, by force of circumstance, the original targets became effectively unattainable, and that, despite external headwinds, the Company ultimately performed favorably ― significantly increasing backlog through strong order intake. However, because of significant supply chain disruptions caused by several factors, including component supply constraints, orders could not be converted to revenue in 2021 and negatively impacted sales.

Based on these considerations (and unlike 2020 when the Compensation Committee did not adjust funding levels and there were no award payouts to the NEOs) the Compensation Committee made adjustments to the EMIP results as per the plan rules and within its mandate, resulting in an adjusted calculation of 85% attainment of target. Consistent with the Company’s philosophy of making equitable, Company-wide compensation decisions for 2021, the adjusted attainment amount of 85% of target was applicable for all participants in a management incentive plan (approximately 1,842 employees), not just the NEOs. The following table lists the actual awards and bonuses paid toearned by the NEOs in 2017:

NEO

  Target
(as a % of Base Salary)		  Actual Payout
(as a % of Salary)		  Actual Cash Payout
($)		 

Philip C. Mezey

   125%   106.01%  $848,040 

Thomas L. Deitrich

   100%   84.80%  $466,422 

Robert H.A. Farrow

   50%   42.40%  $127,206 

Joan S. Hooper*

   75%   36.59%  $177,465 

Michel C. Cadieux

   75%   63.60%  $254,412 

Shannon M. Votava

   65%   55.12%  $220,490 

W. Mark Schmitz**

   75%   0%  $0 

2021 (and paid in 2022):
​
NEO
​​
Target
(as a % of
Base Salary)
​​
Target
EMIP Payout ($)
​​
Actual
Cash Payout ($)
​
​
Thomas L. Deitrich
​​
125%
​​
$1,000,000
​​
$850,000
​
​
Joan S. Hooper
​​
75%
​​
$390,000
​​
$331,500
​
​
Sarah E. Hlavinka
​​
75%
​​
$356,250
​​
$302,813
​
​
Michel C. Cadieux
​​
75%
​​
$307,500
​​
$261,375
​
​
Donald L. Reeves III
​​
60%
​​
$255,000
​​
$216,750
​
*

Ms. Hooper’s payout waspro-rated at 57.53% based on her start date of June 5, 2017.

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**

Mr. Schmitz’s awards were forfeited upon his stepping down from his position as CFO.

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Long-Term Incentives

The NEOs are eligible for long-term incentives, all of which were issued under the terms of our A&R 2010 Plan or Second A&R 2010 Plan. For fiscal year 2017,The Compensation Committee considers a mix of equity vehicles when granting long-term incentives were grantedincentives. To continue to strengthen alignment with the market and provide a balance between performance and retention, the Committee decided it would no longer grant stock options as part of the annual LTIP awards and instead used a mix of performance-based restricted stock units (PRSUs) and time-vested restricted stock units (RSUs) as follows:

LOGO

2017


2021 Target Long-Term Incentive Award Grants. The table below shows the target annual long-term incentive award values granted for fiscal 2017year 2021 for each of the NEOs, which remained unchanged from 2016 values, except with respect to Ms. Votava who received an additional $50,000 in value as a result of benchmarking compensation data provided by F.W. Cook:

NEO

  PRSUs**
(at Target)		   Stock
Options*		   RSUs**   Total Value 

Philip C. Mezey

  $1,600,000   $800,000   $800,000   $3,200,000 

Thomas L. Deitrich

  $1,000,000   $500,000   $500,000   $2,000,000 

Robert H.A. Farrow†

  $70,000   $35,000   $35,000   $140,000 

Joan S. Hooper

  $500,000   $250,000   $250,000   $1,000,000 

Michel C. Cadieux

  $400,000   $200,000   $200,000   $800,000 

Shannon M. Votava

  $300,000   $150,000   $150,000   $600,000 

W. Mark Schmitz††

  $500,000   $250,000   $250,000   $1,000,000 

NEOs:
​
NEO
​​
PRSUs*
(at Target)
​​
RSUs*
​​
Total Value
​
​
Thomas L. Deitrich
​​
$1,500,000
​​
$1,500,000
​​
$3,000,000
​
​
Joan S. Hooper†
​​
$700,000
​​
$700,00
​​
$1,400,000
​
​
Sarah E. Hlavinka
​​
$400,000
​​
$400,000
​​
$800,000
​
​
Michel C. Cadieux†
​​
$400,000
​​
$400,000
​​
$800,000
​
​
Donald L. Reeves III†
​​
$225,000
​​
$225,000
​​
$450,000
​
*

Individual award amounts were calculated based on Black-Scholes values.

**

Award amounts for PRSUs and RSUs were determined based on the closing price of our common stock on the date of grant on February 23, 2017 for all other NEOs, except that award values for Ms. Hooper were determined based on the closing price of our common stock on June 20, 2017 in connection with her new hire.

18, 2021, which was $100.28.
†

In conjunction with Mr. Farrow’s role as interim CFO, he also receivedAs disclosed in last year’s proxy statement, to help support our retention objectives, in February 2021, the Compensation Committee approved aone-time special grant of time-based RSUs with a grant date fair market valueto certain of $140,000,our NEOs, which is not includedvest in the table above. This award amount wasequal installments over three years. Award amounts were determined based on the closing price of our common stock on the date of the grant on March 28, 2017. This awardFebruary 18, 2021, which was granted under$100.28. Ms. Hooper received a grant with a grant date fair market value of $350,000, Mr. Cadieux received a grant with a grant date fair market value of $50,000, and Mr. Reeves received a grant with a grant date fair market value of $50,000. These amounts are not included in the A&R 2010 Plan and will vest 100% on the second anniversary of the grant.

table above.
††

Mr. Schmitz’s awards were forfeited upon his stepping down from his position as CFO.

A Closer Look at Performance-Based Restricted Stock Units (PRSUs). The actual number of PRSUs that are earned and vested are based on the achievement of specific financial performance goals and relative TSR results. Specifically, actual awards are linked to a three-year performance period that consists of three annual performance cycles. The performance result used to determine the actual award earned is calculated at the end of the three-year performance period by averaging the results of the three annual performance cycles, then is adjusted based on performance relative to TSR as compared to the Russell 3000 Index.

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LOGO

2017

2021 Performance Metrics:Non-GAAP Diluted EPS & Relative TSR. PRSUs are driven by the achievement ofnon-GAAP diluted EPS and relative TSR performance targets.

◾

Non-GAAP EPS:Non-GAAP EPS targets are set by the Committee at the beginning of each annual performance cycle. Payout levels can range from 50% to 160% of target for each year in the performance cycle. No PSRUs are earned for performance below the threshold. The following table shows the thresholds, targets and maximums fornon-GAAP EPS set by the Committee at the beginning of each annual performance cycle and our actualnon-GAAP EPS results used for calculating PRSUs earned for 2015, 2016 and 2017:

Year

  Threshold
50%		   Target
100%		   Maximum
160%		   Results 

2015

  $1.60   $1.85   $2.15   $0.73 

2016

  $1.95   $2.25   $2.48   $2.54 

2017

  $2.58   $3.00   $3.30   $3.06 

Non-GAAP Diluted EPS: Non-GAAP diluted EPS targets are set by the Committee at the beginning of each annual performance cycle. Payout levels can range from 50% to 160% of target for the performance cycle. Non-GAAP diluted EPS for 2021 was $1.75, which did not meet the original threshold performance levels. However, unlike 2020 when no adjustments were made, the Compensation Committee determined it was appropriate to apply the same logic used for adjusting awards under the EMIP for purposes of determining 2021 non-GAAP diluted EPS performance for PRSUs under the LTIP. As described under “The Impact of Supply Chain Disruptions and Other Factors on Compensation Decisions” in the Executive Summary of this CD&A, the Compensation Committee adjusted results for the impact of supply chain disruptions and approved 2021 non-GAAP diluted EPS achievement of $2.29 or 85% of the target 2021 PRSU award.
Based on the above, the following table shows the thresholds, targets and maximums for non-GAAP diluted EPS set by the Committee at the beginning of each annual performance cycle and our non-GAAP diluted EPS results used for calculating PRSUs earned for 2019, 2020 and 2021:
​
Year
​​
Threshold
50%
​​
Target
100%
​​
Maximum
160%
​​
Results
​
​
2019
​​
$2.46
​​
$2.74
​​
$3.58
​​
$3.32
​
​
2020
​​
$3.33
​​
$4.00
​​
$4.67
​​
$1.85
​
​
2021
​​
$2.00
​​
$2.42
​​
$3.00
​​
$2.29
​
Note: Thenon-GAAP diluted EPS results shown are based on financial results as reported for 2015, 2016, and 20172019 (as reported in our Annual Report on Form10-K for the year ended December 31, 2017).2019), 2020 (as reported in our Annual Report on Form 10-K for the year ended December 31, 2020), and 2021 as adjusted as described above. Performance for levels achieved between threshold, target, and maximum are linearly interpolated.

Relative TSR: At the end of the three-year performance period, the non-GAAP diluted EPS attainment results for each of the annual performance cycles are averaged. The average non-GAAP diluted EPS is then adjusted based on the achievement by the Company of TSR relative to the Russell 3000 index for the same three-year performance cycle as follows:
​◾

Relative TSR:At the end of the three-year performance period, thenon-GAAP EPS results for each of the annual performance cycles are averaged. The averagenon-GAAP EPS is then adjusted based on the achievement by the Company of TSR relative to the Russell 3000 index for the same three-year performance cycle as follows:

If relative TSR attainment is...

is		​

​

Then the average non-GAAP diluted EPS attainment is...

is
​

​

At or below the 25th percentile

​

​

Adjusted down by 25%

​

​

At 50th percentile

​

​

No adjustment

​

​

At or above the 75th Percentile

​

​

Increased by 25%

​

Note: Adjustments for levels achieved between the 25th, 50th,25th, 50th, and 75th75th percentiles are linearly interpolated.

For the 20172021 PRSUs, the TSR targets and point multipliers were all established in February 2017December 2020 by the Compensation Committee and by the independent members of the full Board for the CEO.

PRSUs Earned and Vested In 20172021 (1/1/2015 – 2019–12/31/2017)2021). In 2015,2019, the NEOs at that time were granted their target PRSUs with vesting based on achievement of thenon-GAAP diluted EPS and relative TSR performance targets for 2015, 2016,2019, 2020, and 20172021 as outlined above. The actual award earned was calculated at the end of the three-year performance period by averaging the results of the three annual performance cycles:
​
Year
​​
Percentage
of
Attainment
​
​
2019
​​
141%
​
​
2020
​​
0%
​
​
2021
​​
85%
​
​
2019-2021 Average
​​
75.48%
​
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Year

  Percentage of Attainment

2015

  0%

2016

  160%

2017

  112%

2015-2017 Average

  90.67%

Consistent with

Based on the terms of the LTIP,above results, the average performance attainment for the 2015-20172019-2021 PRSUs was then adjusted upwarddownward by 123%a factor of 0.93 since our TSR was at the 7243ndrd percentile of the Russell 3000 index. As a result, the NEOs (other than those who waswere not employed at Itrongranted PRSUs in 2015)2019) earned 111.07%70.19% of their target PRSUs for the 2015-20172019-2021 performance cycle, as follows:

NEO

  Target PRSUs Granted  Actual PRSUs Earned

Philip C. Mezey

  45,338  50,356

Robert H.A. Farrow

    2,083    2,313

Michel C. Cadieux

  11,334  12,588

Shannon M. Votava

    7,084    7,868

W. Mark Schmitz†

  14,168          0

†

Mr. Schmitz’s awards were forfeited upon his stepping down from his position as CFO.

​
NEO
​​
Target
PRSUs
Granted
​​
Actual
PRSUs
Earned
​
​
Thomas L. Deitrich
​​
8,208
​​
5,761
​
​
Joan S. Hooper
​​
5,130
​​
3,600
​
​
Sarah E. Hlavinka
​​
3,283
​​
2,304
​
​
Michel C. Cadieux
​​
3,283
​​
2,304
​
​
Donald L. Reeves
​​
1,670
​​
1,172
​
Other Practices, Policies and Guidelines

Stock Ownership Guidelines

We believe that when our executivesNEOs hold an equity interest in the Company, they will be less inclined to take excessive business risks. We maintain stock ownership guidelines to encourage our key executivesNEOs to own stock at least equal in value to:

​
Title
​​
Multiple of
Base Salary
​

Title

​
CEO
Multiple of Base Salary​​
6.0x
​

CEO

​
CFO
6.0x​​
3.0x
​

COO and CFO

​		3.0x

Senior Vice Presidents and General Counsel

who are Named Executive Officers
​​
2.0x
​

Common stock, vested and unvested restricted shares, the netafter-tax value of unexercised vested and unvested stock options, and stock held in the deferred compensation, 401(k) and the Employee Stock Purchase plans all

count towards satisfaction of the guidelines. Additionally, participants are required to retain 50% of net profit shares from all stock acquired upon exercise or vesting unless the guideline level is achieved. Net profit shares are defined as the number of shares of stock acquired after payment of (i) in the case of options, any exercise price and tax withholding upon exercise, or (ii) in the case of restricted stock or restricted stock units, tax withholding upon vesting. We annually review the levels of stock ownership of our executives,NEOs, and, based on a rolling12-month average of our stock price as of the end of 2017,2021, all of our NEOs have met the guidelines, with the exception of Ms. Hooper who joined the Company within the last year and is making progress towards her goal.guidelines. We also have stock ownership guidelines for the members of our Board.

Anti-Hedging Policy

We prohibit the NEOs, other executive officers, directors and other executivesemployees from engaging in transactions designed to insulate them from changes in the Company’s stock price. Therefore, the Company has an Anti-Hedging Policy that prohibits our NEOs from entering into transactions that include (without limitation) equity swaps or short sales of our securities, margin accounts or pledges of our securities, and hedges or monetization transactions involving our securities that are designed to hedge or offset any decrease in the market value of Itron securities. In addition, the purchase or sale of puts, calls, options, or other derivative securities based on the Company’s securities is prohibited under this policy, and borrowing against any account in which our securities are held is prohibited.

Change-in-Control Agreements

We have entered intochange-in-control agreements with certain of our executivesexecutive officers to encourage their full attention and dedication to the Company in the event of achange-in-control of the Company, and to provide them with reasonable compensation and benefits in the event of achange-in-control and a subsequent loss of employment. All equity awards granted have “double trigger” requirements before vesting upon achange-in-control.See “EXECUTIVE“EXECUTIVE COMPENSATION TABLES – Potential Payments uponChange-in-Control” Change-in-Control in this CD&A” for descriptions of the benefits provided under thechange-in-control agreements.
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Employment Agreements; Severance Policy

We do not have formal employment agreements with our executives.executive officers. However, we do have an Executive Severance Policy for our executivesexecutive officers that provides severance pay equal to one year’s base salary, employer benefit premium payments or reimbursements for one year, and outplacement assistance provided there is a release of claims,non-disparagement, and confidentiality agreement with the executive.executive officer. In addition, the executive officer must enter into aone-yearnon-compete one-year non-compete agreement, where enforceable.

In 2017, in connection with their roles, both Ms. Hooper and Mr. Farrow became participants under the Company’s Executive Severance Policy and also entered into indemnification agreements in the form customary for the Company’s officers and directors.

Incentive Repayment (Clawback) Policy

Under our Incentive Repayment (Clawback) Policy, in the event of a restatement of the Company’s financial results, the Compensation Committee, as designated by the Board, may review all cash or equity incentive awards that were based in whole or in part on the achievement of certain financial results.

Where award(s) were predicated, in part or in whole, upon the achievement of certain financial results that were subsequently the subject of a material financial restatement and, as determined by the Compensation Committee, the executive(s) engaged in fraud that caused or partially caused the need for the restatement, the Compensation Committee will seek forfeiture or reimbursement to the Company of the award(s) from the executive(s)executive officer(s) engaged in fraud in full, net of tax. If a material financial restatement was not due to fraud, the Compensation Committee may review the circumstances and, in its discretion to the extent practicable and allowable under applicable laws, determine to require forfeiture or reimbursement to the Company of the amount of the award(s) that exceeded the lower amount, payment or value that would have been made based on the restated financial results, net of tax.

Any recoupment under this policy may be in addition to, and shall not otherwise limit, any other remedies that may be available to the Company under applicable law, including disciplinary actions up to and including termination of employment.

Executive Deferred Compensation

Executives

Executive officers located in the U.S. are eligible to participate in our Executive Deferred Compensation Plan (EDCP). We offer the EDCP to our highly-compensated employees to give them the benefit of being able to defer some of their taxable income, which also encourages their retention with the Company. Participants may defer up to 50% of their base salary and up to 50% of their annual cash incentive into a nonqualified account.

Executives

Executive officers are also permitted to elect to defer an additional portion of their base salary under the EDCP equal to the amount of any contributions returned to them during the year from the Company’s 401(k) Plan. In 2017,2021, the Company made matching contributions to the account of each participating executive at the rate of 75% of the first 6% of base salary and annual incentive deferred by the executive officer during that year, which is the same matching formula as the Company’s 401(k) Plan. The employer match into the EDCP startsafter the employee reaches IRS limits on the 401(k) Plan and is no longer eligible for the 401(k) match. The executives’executive officers’ account balances are adjusted for hypothetical investment earnings or losses according to the returns of the specified “measurement funds” selected by the executives. The measurement funds correspond to the mutual funds available for investment under the 401(k) Plan (but currently do not include a Company stock fund).

See“EXECUTIVE COMPENSATION TABLES – 20172021 Nonqualified Deferred Compensation Table” in this CD&ATable” for more details.

General Benefits and Perquisites

Our NEOs receive the same benefits as our U.S. based salaried employees generally, including medical and dental benefits, group term life insurance, and short- and long-term disability protection. Itron also has relocation policies and benefits in place that may be applicable if an employee is required to move or has long termlong-term extended business travel to a new location.
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401(k) Plan and Employee Stock Purchase Plan

Executives

Executive officers located in the U.S. are eligible to participate in our 401(k) Plan which provides our employees, including executives,the NEOs, with a 75% Company match on the first 6% of compensation deferred, subject to qualified plan limits. Similarly, executivesexecutive officers located in the U.S. may participate in the Company’s Employee Stock Purchase Plan, along with our other U.S. employees.

We do not maintain any defined benefit or supplemental retirement programs for our NEOs.

20172021 Risk Assessment

It is our belief that a majority of an executive’sNEO’s total compensation should be variable “at risk” compensation, meaning it is tied to the Company’s financial performance. However, because performance-based incentives play a large role in our compensation program, we strive to ensure that incentives do not result in actions that may conflict with the long-term best interests of the Company and our shareholders. Therefore, the Committee evaluated all of our plans and policies (applicable to executivesexecutive officers and employees below the executive level) in December 20172021 for attributes that could cause excessive risk-taking. We concluded that our programs and policies do not encourage excessive risk-taking because: (a) the salary component of our program is a fixed amount; (b) the majority of the average compensation paid to our executive officers is delivered in the form of equity ownership, which aligns the interest of our executivesexecutive officers with those of our shareholders; (c) executive officersNEOs are subject to our executive stock ownership guidelines; and (d) the annual cash-based incentive plan and long-term incentive plans are designed with risk-mitigating characteristics such as (i) maximum award payouts based on the attainment of various and continually evolving Company financial objectives which diversify risks

associated with a single indicator of performance, (ii) our equity-based incentives encourage a longer-term focus through multi-year performance periods, (iii) our risk-mitigating policies in place such as insider trading and hedging prohibitions and clawbacks, and (iv) review and approval of final awards by our Committee (and the independent members of the full Board in the case of the CEO), which is composed entirely of independent directors who have discretion under our plans to approve, modify, or eliminate any award earned.

CEO Pay Ratio

For 2017,

We are providing the following information about the relationship of the annual total compensation of our CEO was 124 times thatemployees and the annual total compensation of our CEO:
For 2021, our last completed fiscal year:
the median of the annual total compensation of all employees based onof our company (other than our CEO) was $61,721; and
the aggregated annual total compensation of $5,884,658our CEO during 2021 was $4,540,331.
In determining the ratio below, we began by using the same median employee identified for purposes of calculating the CEO and $47,538 for the median employee. This calculation is based onratio included in our 2021 proxy statement (an employee located in Portugal) because there have not been changes in our employee population of 6,922 as of October 1, 2017.or employee compensation arrangements that we believe would significantly impact the pay ratio disclosure. The median employee initially was identified usingbased on base pay, overtime pay, short-term incentives, and long-term incentive grant date fair values, using data for the twelve months ended September 30, 2017.

December 31, 2020. The median employee was selected from among our 6,153 employees as of December 31, 2020.

For 2021, the annual total compensation of our CEO was 74 times that of the median of the annual total compensation of all employees. For purposes of this disclosure, we applied a Euro to U.S. dollars exchange rate of $1.1350 using a period-end rate of twelve months as of December 2021.
Annual total compensation for both the CEO and the median employee was calculated in accordance with
Item 402(c)(2)(x) of RegulationS-K. This pay ratio is a reasonable estimate calculated in a manner consistent with SEC rules based on our payroll and employment records and the methodology described above. The SEC rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their compensation practices. As such, the pay ratio reported by
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other companies may not be comparable to the pay ratio reported above, as other companies may have different employment and compensation practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios.

Impact of Tax and Accounting

We regularly consider the various tax and accounting implications of our compensation plans. When determining the amountvalue of long-term incentives and equity grants to executives and employees, the compensation costs associated with the grants are reviewed, as required by FASB ASC Topic 718.

Section 162(m) of the Code generally prohibits any publicly held corporation from taking a federal income tax deduction for compensation paid in excess of $1 million in any taxable year to the CEO and the other “covered employees” as defined in the rule. Under the tax laws in effect for 2017, there was an exception for qualified performance-based compensation and the Committee had the flexibility to structure certain compensation programs in a manner intended to be deductible as qualified performance-based compensation. However, as a result of new tax legislation that went into effect on December 22, 2017, this performance-based exception will not be available for taxable years beginning after December 31, 2017, unless the compensation qualifies for certain transition relief in the new legislation. Therefore, while considering tax deductibility as a factor in determining compensation, the Committee may not limit compensation to those levels or types of compensation that will be deductible if it believes that the compensation is commensurate with the performance of the covered employee.

Compensation Committee Report

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with Itron’s management.management and the Board’s outside compensation consultant. Based on the review and discussions, the Compensation Committee has recommended to the Board of Directors that the Compensation Discussion and Analysis be included in the Company’s 20172021 Annual Report on Form10-K and the Company’s 20182022 proxy statement.

Compensation Committee

Diana D. Tremblay, Chair

Peter Mainz

Daniel S. Pelino


Frank M. Jaehnert
Santiago Perez
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Kirby A. Dyess

EXECUTIVE COMPENSATION TABLES

Summary Compensation Table

The following table provides information regarding compensation of the Company’s NEOs. The amounts shown include amounts deferred at the executives’ election. All numbers are rounded to the nearest dollar.

Summary Compensation Table

 

Name and Principal Position

 Year  Salary
($)		  Bonus
($)		  Stock
Awards
($) (1)(2)		  Option
Awards
($) (1)		  Non-Equity
Incentive Plan
Compensation
($) (3)		  All Other
Compensation
($)		  Total
($)		 

Philip Mezey

  2017   800,000   —   3,345,686   800,001   848,040   90,931(4)   5,884,658 

President and CEO

  2016   800,000   —   2,805,949   799,987   1,292,480   24,000   5,722,416 
  2015   830,769   —   2,183,565   799,998   —   45,236   3,859,568 

Thomas Deitrich

  2017   550,000   —   1,471,377   499,995   466,422   12,150(4)   2,999,944 

Executive Vice President and COO

  2016   550,000   —   995,073   500,000   710,864   7,950   2,763,887 
  2015   126,923   424,375   2,999,997   999,992   —   —   4,551,287 

Michel Cadieux

  2017   400,000   —   836,225   199,989   254,412   14,562(4)   1,705,188 

Senior Vice President, Human Resources

  2016   400,000   —   634,427   199,989   387,744   11,769   1,633,929 
  2015   415,384   —   414,312   199,996   —   30,403   1,060,095 

Shannon Votava

  2017   400,000   —   582,526   149,992   220,490   30,763(4)   1,383,771 

Senior Vice President, General Counsel and Corporate Secretary

  2016   397,467   —   443,830   137,498   336,045   7,950   1,322,790 
  2015   377,300   —   315,789   124,992   —   7,950   826,031 

Joan Hooper (5) (6)

  2017   279,808   —   468,664   250,044   177,465   4,757(4)   1,180,738 

Senior Vice President and CFO

        

Robert Farrow (6) (7)

  2017   312,804   —   291,102   34,998   127,206   12,017(4)   778,127 

Vice President, Strategic Planning and Treasury; Former Interim CFO

        
        

W. Mark Schmitz (8)

  2017   172,788   —   1,045,278   249,986   —   504,650(4)   1,972,702 

Former Executive Vice President and CFO

  2016   475,000   —   810,007   249,993   460,446   7,950   2,003,396 
  2015   479,808   —   532,801   249,996   —   44,005   1,306,610 

​
ITRON, INC.
​
​
Summary Compensation Table
​
​
Name and
Principal
Position
​​
Year
​​
Salary
($)
​​
Bonus
($)
​​
Stock
Awards
($)(1)(2)
​​
Option
Awards
($)
​​
Non-Equity
Incentive Plan
Compensation
($)(3)
​​
All Other
Compensations
($)
​​
Total
($)
​
​
Thomas Deitrich
President and CEO
​​
2021
​​
800,000
​​
—
​​
2,877,281
​​
—
​​
850,000
​​
13,050(4)
​​
4,540,331
​
​
2020
​​
800,000
​​
—
​​
2,075,403
​​
749,976
​​
—
​​
12,825
​​
3,638,204
​
​
2019
​​
650,000
​​
—
​​
3,333,990
​​
1,999,984
​​
567,668
​​
12,600
​​
6,564,242
​
​
Joan Hooper
Senior Vice President and CFO
​​
2021
​​
520,000
​​
—
​​
1,709,125
​​
—
​​
331,500
​​
23,175(4)
​​
2,583,800
​
​
2020
​​
511,298
​​
—
​​
949,389
​​
312,479
​​
—
​​
39,138
​​
1,812,304
​
​
2019
​​
485,000
​​
—
​​
1,314,265
​​
—
​​
310,097
​​
19,634
​​
2,128,996
​
​
Sarah Hlavinka
Senior Vice President, General Counsel and Corporate Secretary
​​
2021
​​
475,000
​​
—
​​
785,760
​​
—
​​
302,813
​​
19,601(4)
​​
1,583,174
​
​
2020
​​
475,000
​​
—
​​
601,480
​​
174,983
​​
—
​​
40,931
​​
1,292,394
​
​
2019
​​
475,000
​​
—
​​
614,992
​​
—
​​
248,484
​​
23,809
​​
1,364,284
​
​
Michel Cadieux
Senior Vice President, Human Resources
​​
2021
​​
410,000
​​
—
​​
853,577
​​
—
​​
261,375
​​
9,225(4)
​​
1,534,177
​
​
2020
​​
407,514
​​
—
​​
641,079
​​
199,992
​​
—
​​
16,425
​​
1,292,394
​
​
2019
​​
400,000
​​
—
​​
733,583
​​
—
​​
232,500
​​
9,000
​​
1,362,284
​
​
Donald Reeves
Senior Vice President, Outcomes
​​
2021
​​
425,000
​​
—
​​
496,103
​​
—
​​
216,750
​​
11,947(4)
​​
1,149,800
​
​
2020
​​
425,000
​​
—
​​
326,812
​​
112,487
​​
—
​​
13,070
​​
877,369
​
​
2019
​​
425,000
​​
—
​​
308,104
​​
—
​​
164,688
​​
18,110
​​
915,901
​
(1)

These columns reflect the aggregate grant date fair value of RSU and PRSU awards granted under our Long-Term Incentive Plan (LTIP) and A&R 2010 Plan or Second A&R 2010 Plan as applicable,(2010 SIP) determined in accordance with FASB ASC Topic 718. SeeNote 9of the consolidated financial statements in our Annual Report on Form10-K for the year ended December 31, 20172021 regarding assumptions underlying the valuation of thesethe equity awards.

awards granted in 2021.

(2)

Includes the grant date fair value of Performance RSUs (PRSUs)PRSUs assuming target performance achievement. As the performance-contingent awards are based on separate measurements of the Company’sCompany's financial performance for each year in the three-year performance cycle, FASB ASC Topic 718 requires the grant date fair value to be calculated for the portion of the award related to performance in each year. Therefore, the value includesone-third of the target PRSUs for each active three-year performance cycle. The values for 2015 and 2016 have been corrected to include the grant date fair values of the target PRSUs for the 2016 and 2017 portions of the performance cycles where applicable. For more details on how performance is calculated, refer to “A Closer Look at Performance-Based Restricted Stock Units (PRSUs)” in this CD&A.

proxy statement.

The grant date fair value of the performance related component is based upon the probable outcome for the award and is consistent with the estimate of aggregate compensation cost to be recognized over the performance period determined as of the grant date under FASB ASC Topic 718. As required under FASB ASC Topic 718, the full grant date fair value for the TSR multiplier for the entire three-year performance cycle is included in the amounts shown for the initial year of each performance cycle and was determined using a Monte Carlo valuation model on the date the PRSUs were awarded. Grant date fair values assuming maximum performance achievement for the 2017 PRSUs for the full performance cycle (2017-2019) would be: P. Mezey – $3,348,045; T. Deitrich – $2,092,528; M. Cadieux – $837,011; S. Votava – $627,690; J. Hooper – $1,051,995; R. Farrow – $146,360; W. Schmitz – $1,046,196.

The grant date fair value of the financial performance related component is based upon the probable outcome for the award and is consistent with the estimate of aggregate compensation cost to be recognized over the performance period determined as of the grant date under FASB ASC Topic 718. As required under FASB ASC Topic 718, the grant date fair value for the TSR multiplier is recalculated and included in the amounts shown for 2021 for the 2021 portion of the award in each active performance cycle and was determined using a Monte Carlo valuation model on the date the PRSUs were awarded. Grant date fair values assuming maximum performance achievement for the 2021 PRSUs for the full performance cycle (2021-2023) would be: T. Deitrich - $3,201,461; J. Hooper - $1,493,929;
S. Hlavinka - $853,552; M. Cadieux - $853,552; D. Reeves - $480,069.
(3)

This column reflects the cash awards earned by the NEOs under our annual incentive program.

(4)

We value these benefits based on the actual costs or charges incurred by us for the benefits. For each executive, theThe amounts shown under “All Other Compensation” consistsconsist of Company 401(k) matching contributions with the exception of $13,050 for Mr. MezeyDeitrich, $12,825 for Ms. Hooper, $11,276 for Ms. Hlavinka, $9,225 for Mr. Cadieux, and Ms. Votava’s values which also include$11,947 for Mr. Reeves; a company match under the Executive Deferred Compensation Plan of $78,781 and $16,126, respectively, and Mr. Schmitz’s value which also includes severance payments. Mr. Schmitz received severance payments pursuant to our Executive Officer Severance Policy which provides severance pay equal to one year’s base salary ($475,000) and outplacement assistance ($17,500). Payments are subject to Mr. Schmitz’s compliance with thenon-competition and other terms of the policy.

(5)

Ms. Hooper joined the Company as Senior Vice President and CFO effective June 5, 2017. Her annual base salary upon hire was $485,000.

(6)

$10,350 for Ms. Hooper and Mr. Farrow were not NEOs prior to 2017; therefore, compensation data$8,325 for those years is not disclosed.

Ms. Hlavinka.

(7)

Mr. Farrow became the interim CFO effective March 28, 2017 and resumed his role as Vice President, Strategic Planning and Treasury effective June 5, 2017. His annual base salary was $293,300 plus an additional payment of $7,000 for each month served as interim CFO.

​		​
-37-
​​

(8)

Mr. Schmitz stepped down as Executive Vice President and CFO effective March 28, 2017.

2017

TABLE OF CONTENTS

2021 Grants of Plan-Based Awards Table

The following table provides information regarding grants of plan-based awards to the NEOs during 2017.

Grants of Plan – Based Awards

 
  Grant
Date		  Board or
Committee
Action
Date		  Estimated Future Payouts Under
Non-Equity Incentive
Plan Awards		  Estimated Future Payouts
Under Equity Incentive
Plan Awards		  All Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#) (3)		  All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#) (4)		  

 

Exercise
or Base
Price of
Option
Awards

($/Sh)

  Grant
Date
Fair
Value of
Stock
and
Option
Awards		 

Name

   Threshold
($) (1)		  Target
($) (1)		  Maximum
($) (1)		  Threshold
(#) (2)		  Target
(#) (2)		  Maximum
(#) (2)		     

Philip Mezey

  —   —  $250,000  $1,000,000  $1,800,000   —   —   —   —   —   —   — 
  2/23/2017   2/23/2017   —   —   —   —   —   —   12,204   —   —  $799,972 
  2/23/2017   2/23/2017   —   —   —   —   —   —   —   36,322  $65.55  $800,001 
  2/23/2017   2/23/2017   —   —   —   9,153   24,408   48,816   —   —   —  $681,471(5) 

Thomas Deitrich

  —   $137,500  $550,000  $990,000   —   —   —   —   —   —   — 
  2/23/2017   2/23/2017   —   —   —   —   —   —   7,627   —   —  $499,950 
  2/23/2017   2/23/2017   —   —   —   —   —   —   —   22,701  $65.55  $499,995 
  2/23/2017   2/23/2017   —   —   —   5,721   15,255   30,510   —   —   —  $425,920(5) 

Michel Cadieux

  —   $75,000  $300,000  $540,000   —   —   —   —   —   —   — 
  2/23/2017   2/23/2017   —   —   —   —   —   —   3,051   —   —  $199,993 
  2/23/2017   2/23/2017   —   —   —   —   —   —   —   9,080  $65.55  $199,989 
  2/23/2017   2/23/2017   —   —   —   2,288   6,102   12,204   —   —   —  $170,368(5) 

Shannon Votava

  —   $65,000  $260,000  $468,000   —   —   —   —   —   —   — 
  2/23/2017   2/23/2017   —   —   —   —   —   —   2,288   —   —  $149,978 
  2/23/2017   2/23/2017   —   —   —   —   —   —   —   6,810  $65.55  $149,992 
  2/23/2017   2/23/2017   —   —   —   1,716   4,576   9,152   —   —   —  $127,740(5) 

Joan Hooper

  —   —  $52,316  $209,265  $376,677      —   —   —   — 
  6/20/2017   6/20/2017   —   —   —   —   —   —   3,652   —   —  $249,979 
  6/20/2017   6/20/2017   —   —   —   —   —   —   —   11,515  $68.45  $250,044 
  6/20/2017   6/20/2017   —   —   —   2,739   7,304   14,608   —   —   —  $218,685(5) 

Robert Farrow

  —   —  $37,500  $150,000  $270,000   —   —   —   —   —   —   — 
  2/23/2017   2/23/2017   —   —   —   —   —   —   533    $34,938 
  2/23/2017   2/23/2017   —   —   —   —   —   —   —   1,589  $65.55  $34,998 
  2/23/2017   2/23/2017   —   —   —   400   1,067   2,134   —   —   —  $29,747 
  3/28/2017   3/28/2017   —   —   —   —   —   —   2,321   —   —  $139,956 

W. Mark Schmitz

  —   —  $89,063  $356,250  $641,250   —   —   —   —   —   —   — 
  2/23/2017   2/23/2017   —   —   —   —   —   —   3,813   —   —  $249,942 
  2/23/2017   2/23/2017   —   —   —   —   —   —   —   11,350  $65.55  $249,986 
  2/23/2017   2/23/2017   —   —   —   2,860   7,627   15,254   —   —   —  $212,924(5) 

2021.
​
ITRON, INC.
​
​
Grants of Plans - Based Awards
​
​
 
​​
Grant
Date
​​
Estimated Future Payouts Under
Non-Equity Incentive
Plan Awards
​​
Estimated Future Payouts
Under Equity Incentive
Plan Awards
​​
All Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#)(3)
​​
Grant
Date
Fair
Value of
Stock
Awards
​
​
Name
​​
Threshold
($)(1)
​​
Target
($)(1)
​​
Maximum
($)(1)
​​
Threshold
(#)(2)
​​
Target
(#)(2)
​​
Maximum
(#)(2)
​
​
Thomas Deitrich
​​
—
​​
—
​​
$1,000,000
​​
$1,500,000
​​
—
​​
—
​​
—
​​
—
​​
—
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
—
​​
—
​​
—
​​
14,958
​​
$1,499,988
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
5,609
​​
14,958
​​
29,916
​​
—
​​
$567,158 (4)
​
​
Joan Hooper
​​
—
​​
—
​​
$390,000
​​
$585,000
​​
—
​​
—
​​
—
​​
—
​​
—
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
—
​​
—
​​
—
​​
10,470
​​
$1,049,931
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
2,618
​​
6,980
​​
13,960
​​
—
​​
$264,583 (4)
​
​
Sarah Hlavinka
​​
—
​​
—
​​
$356,250
​​
$534,375
​​
—
​​
—
​​
—
​​
—
​​
—
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
—
​​
—
​​
—
​​
3,988
​​
$399,917
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
1,496
​​
3,988
​​
7,976
​​
—
​​
$151,174 (4)
​
​
Michel Cadieux
​​
—
​​
—
​​
$307,500
​​
$461,250
​​
—
​​
—
​​
—
​​
—
​​
—
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
—
​​
—
​​
—
​​
4,486
​​
$449,856
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
1,496
​​
3,988
​​
7,976
​​
—
​​
$151,174 (4)
​
​
Donald Reeves
​​
—
​​
—
​​
$255,000
​​
$382,500
​​
—
​​
—
​​
—
​​
—
​​
—
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
—
​​
—
​​
—
​​
2,741
​​
$274,867
​
​
​​
2/18/2021
​​
—
​​
—
​​
—
​​
841
​​
2,243
​​
4,486
​​
—
​​
$84,971 (4)
​
(1)

Represents threshold, target, and maximum opportunity under the Company’sCompany's annual incentive program for fiscal 2017.year 2021. Our annual incentive program is discussed under the caption “Annual“Annual Cash Incentives –- The Executive Management Incentive Plan (EMIP)” in the CD&A.

this proxy statement.

(2)

Represents range of possible PRSU payouts for the three-year performance cycle beginning in 2017;2021; earned PRSU awards are paid in Itron common stock. Our PRSUs are discussed under the caption “A“A Closer Look at Performance-Based Restricted Stock Units (PRSUs)” in this CD&A.

proxy statement.

(3)

Amounts shown in this column reflect the number of time-vested RSUs granted under our A&R 2010 Plan or Second A&R 2010 Plan, as applicable.

SIP. For Ms. Hooper and Messrs. Cadieux and Reeves, the amounts reflect annual and one-time RSU grants.

(4)

Amounts shown in this column reflect the number of options granted under our A&R 2010 Plan or Second A&R 2010 Plan, as applicable.

(5)

Amounts shown are based on target performance achievement for the 20172021 portion of the three-year performance cycle. As required under FASB ASC Topic 718, includes the value of the award contingent upon the Company’sCompany's financial performance and the full grant date fair value for the TSR multiplier.multiplier for the 2021 portion of the award. See footnote 2 of theSummary Compensation Table in this CD&Aproxy statement for further details.

Thenon-equity incentive awards included in this table and also set forth in the Summary Compensation Table represent the annual incentive component of our executives’NEO’s compensation. These potential payout awards are

paid in cash as a percentage of each of the NEO’s salary, based upon achievement of certainpre-determined financial performance criteria and strategic objectives. For more details, refer to the “EXECUTIVECOMPENSATION – 20172021 Executive Compensation Program in Detail” section of the CD&A.

The equity incentive plan awards included in this table represent PRSUs granted in 20172020 for the 2017-20192020-2022 performance period, which were issued under the Company’s A&R 2010 Plan or Second A&R 2010 Plan, as applicable. For further details on these awards, see“EXECUTIVECOMPENSATION – 20172021 Executive Compensation Program in Detail” in the CD&A.

The amounts included in the “All Other Stock Awards” column and in the “All Other Option Awards” column represent time-vested RSUs and stock options, respectively, both of which were issued under the A&R 2010 Plan or Second A&R 2010 Plan, as applicable. For further details on these awards,see“EXECUTIVE “EXECUTIVE COMPENSATION – 20172021 Executive Compensation Program in Detail” in the CD&A.

​​
-38-
​​

2017

TABLE OF CONTENTS

Outstanding Equity Awards at FiscalYear-End Table

The following table provides information regarding outstanding equity awards held by each NEO as of December 31, 2017. Mr. Schmitz is not included in the table, because he did not hold any equity awards as of such date.2021.
​
ITRON, INC.
​
​
Outstanding Equity Awards At Fiscal Year End
​
​
Name
​​
Grant Date
​​
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
​​
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable (1)
​​
Option
Exercise
Price
($)
​​
Option
Expiration
Date
​​
Number of
Shares or
Units of
Stock That
Have Not
Vested(2)
​​
Market Value
of Shares or
Units of
Stock That
Have Not
Vested ($)(5)
​​
Equity Incentive
Plan Awards:
Number of
Unearned
Shares, Units
or Other Rights
That Have Not
Vested (#)
​​
Equity Incentive
Plan Awards:
Market or Payout
Value of Unearned
Shares, Units
or Other Rights
that have not
Vested ($)(5)
​
​
Thomas Deitrich
​​
12/10/2015
​​
83,779
​​
​​
$35.13
​​
12/10/2025
​​
​​
​​
​​
​
​
​​
2/24/2016
​​
37,957
​​
​​
$40.05
​​
2/24/2026
​​
​​
​​
​​
​
​
​​
2/23/2017
​​
22,701
​​
​​
$65.55
​​
2/23/2027
​​
​​
​​
​​
​
​
​​
2/22/2018
​​
20,116
​​
​​
$69.30
​​
2/22/2028
​​
​​
​​
​​
​
​
​​
2/21/2019
​​
​​
​​
​​
​​
5,473
​​
$375,010
​​
​​
​
​
​​
9/19/2019
​​
50,891
​​
25,446
​​
$76.55
​​
9/19/2029
​​
​​
​​
​​
​
​
​​
9/19/2019
​​
​​
​​
���​
​​
6,532
​​
$447,573
​​
​​
​
​
​​
2/20/2020
​​
9,356
​​
18,713
​​
$87.27
​​
2/20/2030
​​
​​
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
5,730
​​
$392,620
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
​​
​​
17,188(3)
​​
$1,177,722
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
14,958
​​
$1,024,922
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
​​
​​
14,958(4)
​​
$1,024,922
​
​
​​
​​
​​
​​
​​
​​
​​
​​
​​
​
​
Joan Hooper
​​
6/20/2017
​​
11,515
​​
​​
$68.45
​​
6/20/2027
​​
​​
​​
​​
​
​
​​
2/22/2018
​​
10,058
​​
​​
$69.30
​​
2/22/2028
​​
​​
​​
​​
​
​
​​
2/21/2019
​​
​​
​​
​​
​​
3,421
​​
$243,407
​​
​​
​
​
​​
5/17/2019
​​
​​
​​
​​
​​
1,465
​​
$100,382
​​
​​
​
​
​​
2/20/2020
​​
3,898
​​
7,797
​​
$87.27
​​
2/20/2030
​​
​​
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
2,387
​​
$163,557
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
​​
​​
7,161 (3)
​​
$490,672
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
6,980
​​
$478,270
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
3,490
​​
$239,125
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
​​
​​
6,980(4)
​​
$478,270
​
​
​​
​​
​​
​​
​​
​​
​​
​​
​​
​
​
Sarah Hlavinka
​​
9/12/2018
​​
2,934
​​
​​
$66.30
​​
2/19/2028
​​
​​
​​
​​
​
​
​​
2/21/2019
​​
​​
​​
​​
​​
2,189
​​
$149,900
​​
​​
​
​
​​
2/20/2020
​​
2,183
​​
4,366
​​
$87.27
​​
2/20/2030
​​
​​
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
1,337
​​
$91,611
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
​​
​​
4,010(3)
​​
$274,765
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
3,988
​​
$273,258
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
​​
​​
3,988(4)
​​
$273,258
​
​
​​
​​
​​
​​
​​
​​
​​
​​
​​
​
​
Michel Cadieux
​​
2/23/2017
​​
9,080
​​
​​
$65.55
​​
2/23/2027
​​
​​
​​
​​
​
​
​​
2/22/2018
​​
8,046
​​
​​
$69.30
​​
2/22/2028
​​
​​
​​
​​
​
​
​​
2/21/2019
​​
​​
​​
​​
​​
2,189
​​
$149,990
​​
​​
​
​
​​
2/20/2020
​​
2,495
​​
4,990
​​
$87.27
​​
2/20/2030
​​
​​
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
1,528
​​
$104,699
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
​​
​​
4,583(3)
​​
314,027
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
3,988
​​
$273,258
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
498
​​
$34,123
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
​​
​​
3,988(4)
​​
$273,258
​
​
​​
​​
​​
​​
​​
​​
​​
​​
​​
​
​
Donald Reeves
​​
4/10/2014
​​
983
​​
​​
$63.16
​​
4/9/2024
​​
​​
​​
​​
​
​
​​
5/10/2016
​​
4,802
​​
​​
$55.49
​​
5/9/2026
​​
​​
​​
​​
​
​
​​
9/12/2018
​​
3,300
​​
​​
$66.30
​​
9/12/2028
​​
​​
​​
​​
​
​
​​
7/1/2019
​​
​​
​​
​​
​​
1,114
​​
$76,331
​​
​​
​
​
​​
2/20/2020
​​
1,403
​​
2,807
​​
$87.27
​​
2/20/2030
​​
​​
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
860
​​
$58,927
​​
​​
​
​
​​
2/20/2020
​​
​​
​​
​​
​​
​​
​​
2,578(3)
​​
$176,645
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
2,243
​​
$153,690
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
498
​​
$34,123
​​
​​
​
​
​​
2/18/2021
​​
​​
​​
​​
​​
​​
​​
2,243(4)
​​
$153,690
​
​​
-39-
​​

TABLE OF CONTENTS

Outstanding Equity Awards At Fiscal Year End

 
     Option Awards  Stock Awards 

Name

 Grant
Date		  Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable		  Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable (1)		  Option
Exercise
Price
($)		  Option
Expiration
Date		  Number
of Shares
or Units
of Stock
That
Have Not
Vested (#)		  Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($) (5)		  Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other
Rights
That Have
Not
Vested (#)		  Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares, Units
or Other
Rights That
Have Not
Vested ($) (5)		 

Philip Mezey

  5/5/2008   20,000   $95.78   5/5/2018     
  2/11/2010   8,610   $61.56   2/11/2020     
  2/24/2011   8,810   $56.65   2/24/2021     
  2/16/2012   11,398   $48.23   2/16/2022     
  11/15/2012   140,570   $41.36   11/15/2022     
  2/22/2013   51,270   $43.38   2/22/2023     
  2/21/2014   58,957   $35.05   2/21/2024     
  2/19/2015   43,894   21,947  $35.29   2/19/2025     
  2/19/2015       7,557(2)  $515,387   
  2/25/2016   20,341   40,682  $40.02   2/25/2026     
  2/25/2016       13,327(2)  $908,901   
  2/25/2016         79,960(3)  $5,453,272 
  2/23/2017    36,322  $65.55   2/23/2027     
  2/23/2017       12,204(2)  $832,313   
  2/23/2017         48,816(4)  $3,329,251 

Thomas Deitrich

  12/10/2015   55,852   27,927  $35.13   12/10/2025     
  12/10/2015       28,466(2)  $1,941,381   
  2/24/2016   12,652   25,305  $40.05   2/24/2026     
  2/24/2016       8,323(2)  $567,629   
  2/24/2016         49,936(3)  $3,405,635 
  2/23/2017    22,701  $65.55   2/23/2027     
  2/23/2017       7,627(2)  $520,161   
  2/23/2017         30,510(4)  $2,080,782 

Michel Cadieux

  2/19/2014   8,223   $35.29   2/19/2024     
  2/19/2015   10,973   5,667  $35.29   2/19/2025     
  2/19/2015       1,889(2)  $128,830   
  2/24/2016   5,060   10,122  $40.05   2/24/2026     
  2/24/2016       3,329(2)  $227,038   
  2/24/2016         19,974(3)  $1,362,227 
  2/23/2017    9,080  $65.55   2/23/2027     
  2/23/2017       3,051(2)  $208,078   
  2/23/2017         12,204(4)  $832,313 

Shannon Votava

  12/12/2011   10,000   $35.65   12/12/2021     
  2/16/2012   4,023   $48.23   2/16/2022     
  2/21/2013   6,521   $42.35   2/21/2023     
  2/19/2014   7,309   $35.29   2/19/2024     
  2/19/2015   6,858   3,429  $35.29   2/19/2025     
  2/19/2015       1,181(2)  $80,544   
  2/24/2016   3,479   6,959  $40.05   2/24/2026     
  2/24/2016       2,289(2)  $156,110   
  2/24/2016         13,732(3)  $936,522 
  2/23/2017    6,810  $65.55   2/23/2027     
  2/23/2017       2,288(2)  $156,042   
  2/23/2017         9,152(4)  $624,166 

Joan Hooper

  6/20/2017    11,515  $68.45   6/20/2027     
  6/20/2017       3,652(2)  $249,066   
  6/20/2017         14,608(4)  $996,266 

Robert Farrow

  5/7/2015   1,024   1,024  $35.99   5/7/2025     
  5/7/2015       347(2)  $23,665   
  2/24/2016   948   1,898  $40.05   2/24/2026     
  2/24/2016       624(2)  $42,557   
  2/24/2016         3,744(3)  $255,341 
  2/23/2017    1,589  $65.55   2/23/2027     
  2/23/2017       533(2)  $36,351   
  2/23/2017         2,134(4)  $145,539 
  3/28/2017       2,321(2)  $158,292   

(1)

One third of the options granted on September 19, 2019 vest on each of September 19, 2020, 2021, and 2022. One third of the options granted on February 19, 201520, 2020 vest on each of February 19, 2016, 2017,20, 2021, 2022, and 2018. One third of the options granted on December 10, 2015 vest on each of December 10, 2016, 2017, and 2018. One third of the options granted on February 24, 2016 vest on each of February 24, 2017, 2018, and 2019. One third of the options granted on February 25, 2016 vest on each of February 25, 2017, 2018, and 2019. One third of the options granted on February 23, 2017 vest on each of February 23, 2018, 2019, and 2020. One third of the options granted on June 20, 2017 vest on each of June 20, 2018, 2019, and 2020.

2023.

Vesting information for each outstanding option award for the NEOs that is unvested as of December 31, 2021 is described in the table below.
​
Vesting Date
​​
Exercise Price
​​
Thomas
Deitrich
​​
Joan
Hooper
​​
Sarah
Hlavinka
​​
Michel
Cadieux
​​
Donald
Reeves
​
​
2022
​​
​​
​​
​​
​​
​​
​
​
2/20/2022
​​
$87.27
​​
9,356
​​
3,898
​​
2,183
​​
2,495
​​
1,403
​
​
9/19/2022
​​
$76.55
​​
25,446
​​
​​
​​
​​
​
​
​​
​​
​​
​​
​​
​​
​
​
2023
​​
​​
​​
​​
​​
​​
​
​
2/20/2023
​​
$87.27
​​
9,357
​​
3,899
​​
2,183
​​
2,495
​​
1,404
​
(2)

Represents time-vested RSUs granted under the A&R 2010 Plan or Second A&R 2010 Plan, as applicable.SIP. One third of the RSUs granted on February 19, 201521, 2019 vest on each of February 19, 2016, 2017,21, 2020, 2021, and 2018.2022. One-third of the RSUs granted on May 17, 2019 vest on each of May 17, 2020, 2021, and 2022. One third of the RSUs granted on December 10, 2015July 1, 2019 vest on each of December 10, 2016, 2017,July 1, 2020, 2021, and 2018.2022. One third of the RSUs granted on September 19, 2019 vest on each of September 19, 2020, 2021, and 2022. One third of the RSUs granted on February 24, 201620, 2020 vest on each of February 24, 2017, 2018,20, 2021, 2022, and 2019.2023. One third of the RSUs granted on February 25, 201618, 2021 vest on each of February 25, 2017, 2018,18, 2022, 2023, and 2019. One third of the RSUs granted on February 23, 2017 vest on each of February 23, 2018, 2019, and 2020. The RSUs granted on March 28, 2017 will vest in full on March 28, 2019. One third of the RSUs granted on June 20, 2017 vest on each of June 20, 2018, 2019, and 2020.

2024.

Vesting information for each RSU award for the NEOs that is unvested as of December 31, 2021 is described in the table below.
​
Vesting Date
​​
 
​​
Thomas
Deitrich
​​
Joan
Hooper
​​
Sarah
Hlavinka
​​
Michel
Cadieux
​​
Donald
Reeves
​
​
2022
​​
​​
​​
​​
​​
​​
​
​
2/18/2022
​​
​​
4,986
​​
3,489
​​
1,329
​​
1,495
​​
913
​
​
2/20/2022
​​
​​
2,856
​​
1,193
​​
668
​​
764
​​
430
​
​
2/21/2022
​​
​​
5,473
​​
3,420
​​
2,189
​​
2,189
​​
​
​
5/17/2022
​​
​​
​​
1,465
​​
​​
​​
​
​
7/1/2022
​​
​​
​​
​​
​​
​​
1,114
​
​
9/19/2022
​​
​​
6,532
​​
​​
​​
​​
​
​
​​
​​
​​
​​
​​
​
​
2023
​​
​​
​​
​​
​​
​​
​
​
2/18/2023
​​
​​
4,986
​​
3,490
​​
1,329
​​
1,495
​​
914
​
​
2/20/2023
​​
​​
2,865
​​
1,193
​​
669
​​
764
​​
430
​
​
​​
​​
​​
​​
​​
​
​
2024
​​
​​
​​
​​
​​
​​
​
​
2/18/2024
​​
​​
4,986
​​
3,491
​​
1,330
​​
1,496
​​
914
​
(3)

Represents PRSUs granted for the three-year performance cycle beginning in 20162020 assuming achievement at maximumtarget levels of performance.

(4)

Represents PRSUs granted for the three-year performance cycle beginning in 20172021 assuming achievement at maximumtarget levels of performance.

(5)

Based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52).

​​
-40-
​​
2017

TABLE OF CONTENTS

2021 Option Exercises and Stock Vested Table

The following table provides information regarding stock option exercises and shares acquired upon the vesting of stock awards by the NEOs during the 20172021 fiscal year.

Option Exercises and Stock Vested

   Option Awards   Stock Awards

Name

  Number of Shares
Acquired on
Exercise (#)		   Value Realized
Upon Exercise
($) (1)		   Number of Shares
Acquired on
Vesting (#) (2)		   Value Realized
on Vesting ($) (2)(3)

Philip Mezey

       72,183   4,842,728

Thomas Deitrich

       32,627   2,244,057

Michel Cadieux

       17,204   1,156,940

Shannon Votava

       11,138      747,945

Joan Hooper

       —   —

Robert Farrow

       2,972      200,758

W. Mark Schmitz

   29,060    813,762    4,441      288,058

​
ITRON, INC.
​
​
Option Exercises and Stock Vested
​
​
 
​​
Option Awards
​​
Stock Awards
​
​
Name
​​
Number of Shares
Acquired on Exercise
(#)
​​
Value Realized
Upon Exercises
($)(1)
​​
Number of Shares
Acquired on Vesting
(#)(2)
​​
Value Realized
on Vesting
($)(2)(3)
​
​
Thomas Deitrich
​​
​​
​​
23,034
​​
1,999,283
​
​
Joan Hooper
​​
​​
​​
12,120
​​
1,075,768
​
​
Sarah Hlavinka
​​
5,866
​​
179,724
​​
6,167
​​
528,237
​
​
Michel Cadieux
​​
​​
​​
6,218
​​
554,742
​
​
Donald Reeves
​​
​​
​​
3,092
​​
266,110
​
(1)

Represents the difference between the exercise price and the fair market value of our common stock on the date of exercise.

(2)

Except for Mr. Deitrich and Ms. Hooper, who joined the Company in October 2015 and June 2017, respectively, value includes

Includes PRSUs earned based on financial results, as originally reportedadjusted, for the three-year performance cycle beginning in 20152019 and vested on December 31, 2017.2021. SeeExecutive Summary “Long-Term Incentives – A Closer Look at Performance-Based Restricted Stock Units (PRSUs)” in the CD&Athis proxy statement for more detail.

(3)

Based on the fair market value of our common stock on the vest date.

20172021 Nonqualified Deferred Compensation Table

The following table provides information regarding the nonqualified deferred compensation of each of the NEOs for the 20172021 fiscal year.

Nonqualified Deferred Compensation

Name

  Executive
Contributions
in Last Fiscal
Year
($) (1)		   Registrant
Contributions
in Last Fiscal
Year
($) (2)		   Aggregate Earnings
in Last Fiscal Year
($)		   Aggregate
Withdrawals/
Distributions
($)		   Aggregate Balance
at Last Fiscal
Year End ($)

Philip Mezey

   123,703    78,781    317,050    —   2,026,844

Thomas Deitrich

   —    —    —    —             —

Michel Cadieux

   —    —    —    —             —

Shannon Votava

   43,240    16,126    4,168    —   63,534

Joan Hooper

   55,962    —    2,998    —   58,960

Robert Farrow

   —    —    —    —             —

W. Mark Schmitz

   —    —    —    —             —

​
ITRON, INC.
​
​
Nonqualified Deferred Compensation
​
​
Name
​​
Executive
Contributions in
Last Fiscal Year
($)(1)
​​
Registrant
Contributions in
Last Fiscal Year
($) (2)
​​
Aggregate
Earnings in
Last Fiscal Year
($)
​​
Aggregate
Withdrawals/
Distributions
($)
​​
Aggregate
Balance at
Fiscal Year End
($)
​
​
Thomas Deitrich
​​
—
​​
—
​​
—
​​
—
​​
—
​
​
Joan Hooper
​​
130,000
​​
10,350
​​
138,406
​​
—
​​
887,301
​
​
Sarah Hlavinka
​​
28,500
​​
8,325
​​
82,089
​​
—
​​
423,970
​
​
Michel Cadieux
​​
—
​​
—
​​
—
​​
—
​​
—
​
​
Donald Reeves
​​
—
​​
—
​​
—
​​
—
​​
—
​
(1)

This deferred compensation represents amounts that are reported as compensation earned in 20172021 in theSummary Compensation Table.

Table.
(2)

This amount has been included in the “All Other Compensation” column of theSummary Compensation Table.

Table.
​​
-41-
​​

TABLE OF CONTENTS

Executive Deferred Compensation Plan

Executives

Executive officers located in the U.S. are eligible to participate in the Company’s Executive Deferred Compensation Plan (EDCP). Under this plan, participantsWe offer the EDCP to our highly-compensated employees to give them the benefit of being able to defer some of their taxable income, which also encourages their retention with the Company. Participants may defer up to 50% of their base salary and up to 50% of their annual cash incentive bonusinto a nonqualified account.
Executive officers are also permitted to anon-qualified account. Participants may alsoelect to defer an additional portion of their base salary under the EDCP equal to the amount of any contributions returned to them during the year from the Company’s 401(k) plan so that the 401(k) plan can satisfy the nondiscrimination requirements applicable to it. Annually,Plan. In 2020, the Company makesmade matching contributions to the account of each participating executive at the rate of 75% of the first 6% of base salary and annual incentive deferred by the executive officer during that year.year, which is the same matching formula as the Company’s 401(k) Plan. The employer match into the EDCP only commencesstarts after the employee reaches IRS limits on the 401(k) planPlan and is no longer eligible for the 401(k) match.

Each participant’s The executive officers’ account isbalances are adjusted for hypothetical investment earnings or losses based onaccording to the performancereturns of the “measurement funds” in whichselected by the account is deemed to be invested. Participants allocate their accounts among theexecutives. The measurement funds available under the plan and can change their allocation at any time. These measurement funds are the same ascorrespond to the mutual funds offeredavailable for investment purposes under the Company’s 401(k) plan. Measurement funds are used solely to determine the amount of the hypothetical investment earnings or losses to be allocated to the participant’s account. Theplan (but currently do not include a Company is not obligated to invest any assets in these funds.

Accounts are distributed (or commence to be distributed) to participants either based onpre-selected,in-service distribution dates or upon termination of employment with the Company and its affiliates. Distribution made after termination of employment will be made six months after termination to comply with the requirements of Internal Revenue Code Section 409A.

A participant’s account will be distributed in a lump sum, unless the participant elects to have it distributed in substantially equal annual installments over a period of not more than 10 years. This election must be made at the time the participant is first eligible to participate in the plan.

stock fund).

Potential Payments upon Termination

The following describes certain actions and payments upon termination in accordance with Company policies and the provisions of our current Second A&R 2010 Plan,SIP, pursuant to which all of our equity awards are granted.

Upon any termination of employment, our NEOs are entitled to receive any accrued and unpaid base salary through the date of termination.

Termination for Cause

The executive is entitled to receive any accrued and unpaid base salary through the date of termination. All options granted automatically expire when terminated for cause and all unvested time-vested RSUs and all unvested awards under the LTIP and the EMIP are forfeited in the event of termination for cause.
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Termination Due to Death, Disability, or Retirement

What happens if termination is due to:
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​​

What happens if termination is due to:

Death or Disability
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Retirement(1)

​
​
Annual Incentive
Plan(2)
​2016 and
Prior Awards​
Prorated
2017 Awards​​
Prorated
​

Annual Incentive Plan (2)

​

Prorated

Prorated

Prorated

Time-vested RSUs(3)

​​
Fully accelerated
​Forfeited​
If retire after24-months 12 months
following grant date,
continued vesting subject
to completion of new
non-compete/non-solicit
agreement and
reasonable notice
​
​

Stock Options(4)

​​
Fully accelerated
​

Vested Shares

Expire at end of earlier of 3 years or original expiration of grant date

​

Unvested Shares

Forfeited

Options
If retire after24-months 12 months
following grant date,
continued vesting subject
to completion of new
non-compete/non-solicit
agreement and
reasonable notice

Vested Options
Remain exercisable until
the original expiration
date of the grant.
​
​

Performance-Based RSUs
(PRSUs)(5)

​

2016 & Prior Awards

Prorated

Based on days employed during the performance period​

Shares awarded and shares awarded
settled based on
actual attainment of
performance results as
measured at the end
of the performance period.

2017 Awards

Prorated

Continued eligibility during remainder

period ending in the
year of the year in which disabilitydeath or death occurs, and
disability. Number of
shares awarded based on actual attainment as measuredis not
pro-rated for partial
employment during the
performance period.
​​
If retire after 12 months
following grant date, shares
awarded at the end of the performance period.

Actual (prorated)

If retire after24-months following grant date, continued vesting over remainder of

performance period andbased
on actual attainment of
performance results as
measured at the end
of the performance
period. Number of
shares awarded is not prorated
pro-rated for number of days workedpartial
employment during the
performance period

period.
​

(1)

Definition of Retirement:For purposes of all awards granted under the Second A&R 2010 PlanSIP to NEOs located in the U.S., “retirement” means voluntary termination of employment after the date on which the award recipient has reached (i) the age of 55 and has a total of at least 10 years of continuous employment with Itron or (ii) the age of 60 and has a total of at least 5 years of continuous employment with Itron. For stock options granted in fiscal year 2016 or prior, “retirement” means the earlier of age 65 or age 55 with at least 10 years of service with Itron. For stock options granted in 2008 or later, “retirement” means attainment of age 65.

(2)

Annual Incentive Plan: For awards under the EMIP, participants would receive a prorated award (assuming an award is earned) based on the number of calendar days employed during the performance period and such payout, if any, will be made at the same time as the other participants.

(3)

Time-vested RSUs:If termination is due to retirement, any unvested RSUs granted in 2016 or prior would immediately be forfeited. However, for the awards granted in fiscal 2017, if a retirement occurs after 12 months following the second anniversary of the grant date, RSUs will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions. If termination is due to death or disability (as defined in the Second A&R 2010 Plan)SIP), any unvested RSUs will vest immediately.

(4)

Stock Options:Upon retirement, all unvested options automatically expire. Vestedvested options granted in 2016 or prior would remain exercisable until the earlier of three years following retirement or the option expiration date. However, for the awards granted in fiscal 2017, ifIf a retirement occurs after 12 months following the second anniversary of the grant date, options will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions. If termination is due to death or disability, all unvested options become exercisable and remain exercisable until the earlier of one year following the date of death or disability, or the date on which the options expire by their terms.

(5)

Performance-Based RSUs (PRSUs):If termination occurs due to death or disability during the performance period, the awardsshares will be vestedawarded and settled based on actualthe performance atperiod and results ending in the conclusionyear of death or disability, and will not be pro-rated for partial employment during the performance period. If terminationa retirement occurs due to retirement,after 12 months following the awards will be vested at actual performance and applied TSR multiplier after then end of the performance period, andpro-rated based on the number of calendar days between the beginning of the performance period and thegrant date, of retirement. However, for the awards granted in fiscal 2017, awards will vest in full based on actual performance and the applied TSR multiplier calculated at the end of the performance period, subject tonon-compete/non-solicit and reasonable notice restrictions. Vested units generally will be settled at the original vesting date set forth in the award agreement, and in accordance with the provisions of Section 409A of the Code.

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Voluntary Termination or Termination without Cause

◾

Stock Options:All unvested options automatically expire due to voluntary termination or termination by the Company without cause. Any vested options would remain exercisable until the earlier of 90 days following termination of employment or the date on which the options expire by their terms.

◾

Time-vested RSUs:All unvested RSUs are forfeited upon voluntary termination or termination without cause.

◾

Performance-Based RSUs (PRSUs):All unvested PRSUs are forfeited upon voluntary termination or termination without cause. Vested units will be settled in accordance with the provisions of Section 409A of the Code.

◾

Annual Incentive Plan:The bonus under the EMIP would be forfeited in its entirety if the NEO is not employed by the Company or working as a service contractor for the Company at the time of the payout.

Stock Options: All unvested options automatically expire due to voluntary termination or termination by the Company without cause. Any vested options would remain exercisable until the earlier of 90 days following termination of employment or the date on which the options expire by their terms.
Time-vested RSUs: All unvested RSUs are forfeited upon voluntary termination or termination without cause.
Performance-Based RSUs (PRSUs): All unvested PRSUs are forfeited upon voluntary termination or termination without cause. Vested units will be settled in accordance with the provisions of Section 409A of the Code.
Annual Incentive Plan: The bonus under the EMIP would be forfeited in its entirety if the NEO is not employed by the Company or working as a service contractor for the Company at the time of the payout.
Potential Payments uponChange-in-Control

The following describes the material provisions of thechange-in-control agreements that we have entered into with our NEOs, except for Mr. Farrow who does not have aNEOs. The change-in-control agreement. Thechange-in-control agreements provide for the following benefits if there is achange-in-control and the NEO’s employment is terminated within 24 months by the Company without cause or by the NEO for “good reason”:

Severance Benefit: The change-in-control agreements provide Mr. Deitrich with a severance benefit equal to 2.5 times the sum of base salary and target annual incentive opportunity. For Ms. Hlavinka, Ms. Hooper, Mr. Cadieux, and Mr. Reeves, the benefit is equal to 2 times the sum of base salary and target annual incentive opportunity. For all, the benefit is paid in cash in one lump sum.
Pro-Rata Annual Incentive for Year of Termination: The change-in-control agreements provide for a payment based on the greater of target opportunity or actual performance (as determined by the Board), prorated for the time worked during the year of termination.
Welfare Benefit Continuation: The change-in-control agreements provide Mr. Deitrich with 2.5 years of life and disability insurance coverage (with no tax gross-up). For Ms. Hlavinka, Ms. Hooper, Mr. Cadieux and Mr. Reeves, this benefit is equal to 2 years of life and disability insurance coverage (with no tax gross-up). The Agreements also provide our NEOs and their dependents with the same respective years of health care coverage.
Equity Award Vesting and Acceleration (Double Trigger): The change-in-control agreements provide that any acceleration for equity awards is “double trigger” and thus will occur only upon a change-in-control and a qualifying termination (a termination without cause or for good reason). All vesting acceleration is subject to consummation of the change-in-control transaction.
Excise Tax Gross-Up: There are no effective provisions for an excise tax gross-up.
Legal Fees: The change-in-control agreements provide that NEOs will be reimbursed for legal fees and expenses incurred in seeking to enforce the change-in-control agreement.
Restrictive Covenants: The change-in-control agreements include restrictive covenants relating to non-solicitation (one-year), non-disparagement, and non-competition (one-year, where enforceable), and require a release of all claims against the Company.
Definition of Change-in-Control: For purposes of the change-in-control agreements, a “change-in-control” generally consists of any of the following:
An acquisition of 25 percent or more of our voting securities;
Our current Board of Directors (and their approved successors) ceasing to constitute a majority of the Board;
◾​​

Severance Benefit:Thechange-in-control agreements provide Messrs. Mezey and Deitrich with a severance benefit equal to 2.5 times the sum of base salary and target annual incentive opportunity. For Ms. Votava, Ms. Hooper, and Mr. Cadieux, the benefit is equal to 2 times the sum of base salary and target annual incentive opportunity. For all, the benefit is paid in cash in one lump sum.

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◾​​

Pro-Rata Annual Incentive for Year of Termination:Thechange-in-control agreements provide for a payment based on the greater of target opportunity or actual performance (as determined by the Board), prorated for the time worked during the year of termination.

◾

Welfare Benefit Continuation:Thechange-in-control agreements provide Messrs. Mezey and Deitrich with 2.5 years of life and disability insurance coverage (with no taxgross-up). For Ms. Votava, Ms. Hooper, and Mr. Cadieux, this benefit is equal to 2 years of life and disability insurance coverage (with no taxgross-up). The Agreements also provide our NEOs and their dependents with the same respective years of health care coverage.

◾

Equity Award Vesting and Acceleration (Double Trigger):Thechange-in-control agreements provide that any acceleration for equity awards is “double trigger” and thus will occur only upon achange-in-control and a qualifying termination (a termination without cause or for good reason). All vesting acceleration is subject to consummation of thechange-in-control transaction.

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◾

Excise TaxGross-Up: There are no effective provisions for an excise taxgross-up.

◾

Legal Fees:Thechange-in-control agreements provide that NEOs will be reimbursed for legal fees and expenses incurred in seeking to enforce thechange-in-control agreement.

◾

Restrictive Covenants: Thechange-in-control agreements include restrictive covenants relating tonon-solicitation(one-year),non-disparagement, andnon-competition (where enforceable), and require a release of all claims against the Company.

◾

Definition ofChange-in-Control:For purposes of thechange-in-control agreements, a“change-in-control” generally consists of any of the following:

◾

An acquisition of 25 percent or more of our voting securities;

◾

Our current Board of Directors (and their approved successors) ceasing to constitute a majority of the Board;

◾

Consummation of any merger or consolidation with or into another corporation, the effect of which would be that our Board would consist of a majority of directors who were not members of the Board prior to the merger or consolidation; or

◾

Consummation of any sale or disposition of all or substantially all of our assets, or the approval by our shareholders of a plan of complete liquidation or dissolution of the Company.

◾

Definition of Good Reason:For purposes of thechange-in-control agreements, “good reason” for termination by the NEO of his or her employment generally means any one of the following acts by the Company following achange-in-control:

◾

An adverse change in the NEO’s duties, status or position as an executive officer;

◾

A reduction in the NEO’s base salary;

◾

A reduction in the NEO’s annual bonus or long-term incentive opportunity;

◾

The failure to continue to provide welfare, medical, and other fringe benefits which in the aggregate are substantially similar to those provided immediately prior to thechange-in-control;

◾

The requirement for the NEO to be based at an office more than 50 miles from the NEO’s office prior to thechange-in-control; or

◾

The failure by the Company or successor company to assume or agree to perform the provisions of thechange-in-control agreement.

Consummation of any merger or consolidation with or into another corporation, the effect of which would be that our Board would consist of a majority of directors who were not members of the Board prior to the merger or consolidation; or
Consummation of any sale or disposition of all or substantially all of our assets, or the approval by our shareholders of a plan of complete liquidation or dissolution of the Company.
Definition of Good Reason: For purposes of the change-in-control agreements, “good reason” for termination by the NEO of his or her employment generally means any one of the following acts by the Company following a change-in-control:
An adverse change in the NEO’s duties, status or position as an executive officer;
A reduction in the NEO’s base salary;
A reduction in the NEO’s annual bonus or long-term incentive opportunity;
The failure to continue to provide welfare, medical, and other fringe benefits which in the aggregate are substantially similar to those provided immediately prior to the change-in-control;
The requirement for the NEO to be based at an office more than 50 miles from the NEO’s office prior to the change-in-control; or
The failure by the Company or successor company to assume or agree to perform the provisions of the change-in-control agreement.
See also “Termination Payment Tables for NEOs” in this CD&A.

Second A&R below.

2010 PlanSIP Change-in-Control Provisions

Our Second A&R 2010 PlanSIP provides that in the event of achange-in-control, as defined in ourchange-in-control agreements described above, unless otherwise provided in the award agreement, generally awards will be assumed or substituted for by the surviving corporation, and will accelerate only if not so assumed or substituted. The vesting and payout of PRSUs will be governed by the award agreement, as described below.

Performance-Based (PRSU)Change-in-Control Provisions

If achange-in-control occurs during the following performance periods; (2015-2017)(2019-2021) under the 20152019 grant, (2016-2018)(2020-2022) under the 20162020 grant, or (2017-2019)(2021-2023) under the 20172021 grant, the PRSU awards will be vested at the greater of target or actual performance for the year, andpro-rated based on the number of calendar days between

the beginning of the performance period and thechange-in-control (i) in the event the awards are not assumed by the acquiring entity, or (ii) the beginning of the performance period and the date of termination of employment in the event the awards are assumed by the acquiring entity.

Executive Officer Severance Policy

The Company recognizes that it is usually difficult for executive officers whose employment is terminated involuntarily to obtain a position comparable to the one he or she has with the Company. In view of this, any executive officer who is terminated involuntarily, except if terminated for disciplinary reasons, will be entitled to receive severance pay equal to one year’s base salary, employer benefit premium payments/reimbursement for one year and outplacement assistance provided that (1) the executive (1) releases all claims that he or she may have against the Company, (2) enters into a one yearnon-compete agreement (where enforceable), (3) agrees not to solicit employees for a period of one year, and (4) agrees not to disparage the Company.

Termination Payment Tables for NEOs

The tables below reflect the estimated amount of incremental compensation payable to each of our NEOs in the event of termination of employment orchange-in-control. The tables do not include benefits generally available to all employees on anon-discriminatory basis or payments and benefits that the NEOs would have already earned
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during their employment with us, whether or not a termination orchange-in-control event had occurred. The amounts shown assume that such termination orchange-in-control was effective as of December 31, 2017.2021. The actual amounts to be paid out can only be determined at the time of such executive’s termination or upon achange-in-control, as applicable.

Summary of Termination Payments

Philip Mezey

 

Executive Benefits (1)

 Termination
for Cause		  Voluntary
Termination		  Death  Disability  Retirement  Termination
Without
Cause		  Change-in-
Control		  Termination
Without Cause
or by Executive
for Good Reason
Following a
Change-in-Control		 

Annual Incentive (2)

 $            —  $            —  $—  $—  $—  $—  $  151,960  $151,960 

Accelerated Stock Options (3)

 $—  $—  $1,964,948  $1,964,948  $—  $—  $—  $  1,964,948 

Severance (4)

 $—  $—  $—  $—  $—  $  832,667  $—  $4,500,000 

Benefit Continuation

 $—  $—  $—  $—  $—  $—  $—  $59,167 

Accelerated RSUs (5)

 $—  $—  $  2,256,602  $  2,256,602  $—  $—  $—  $2,256,602 

Accelerated Performance RSUs (PRSUs) (6)

 $—  $—  $6,715,790  $6,715,790  $  5,252,866  $—  $—  $2,373,462 

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ITRON, INC.
​
​
Summary of Termination Payments
​
​
Thomas Deitrich
​
​
Executive Benefits(1)
​​
Termination
for Cause
​​
Voluntary
Termination
​​
Death
​​
Disability
​​
Retirement
​​
Termination
Without
Cause
​​
Change-in-
Control
​​
Termination
Without Cause
or by Executive
for Good
Reason
Following a
Change-in-
Control
​
​
Annual Incentive(2)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$150,000
​​
$150,000
​
​
Accelerated Stock Options(3)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​
​
Severance(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$800,000
​​
$—
​​
$4,500,000
​
​
Benefit Continuation(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$36,846
​​
$—
​​
$69,615
​
​
Accelerated RSUs(5)
​​
$—
​​
$—
​​
$2,240,124
​​
$2,240,124
​​
$1,215,202
​​
$—
​​
$—
​​
$2,240,124
​
​
Accelerated Performance
RSUs (PRSUs)(6)
​​
$—
​​
$—
​​
$2,094,682
​​
$2,094,682
​​
$1,572,465
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$—
​​
$—
​​
$167,668
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(1)

The above table does not include amounts under our Executive Deferred Compensation Plan, stock option awards that are fully vested, earned salary, and accrued vacation as those items are earned and due to the employee regardless of such termination orchange-in-control events. It also does not include amounts payable under life insurance coverage, our accidental death & dismemberment coverage or our business travel accident coverage, which are programs available to all employees. Under thechange-in-control agreement with this executive the term is 24 months following achange-in-control and the severance payment is equal to 2.5 times the sum of the executive’sexecutive's base salary and target annual bonus. Each form of payment is mutually exclusive based on the individual circumstances or events and therefore represents a single payment and should not be added together.

(2)

Pursuant to ourchange-in-control agreement with this executive, the annual bonus payable in the event of termination following achange-in-control is the greater of target or the actual amount earned. For 2017, the actualThe annual incentive plan payout was less thanpaid out below target in 2021, so the value represents the incremental difference between the target and actual bonus paid.

(3)

Representsin-the-money value of accelerated stock options based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponAs all accelerated options are underwater at this price, no values are shown. Upon a termination due to retirement after the secondfirst anniversary of the grant date, stock options will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017 awards are assumed forfeited, as retirement at December 31, 2017 is before the second anniversary of the grant date.restrictions. Upon achange-in-control, stock options will accelerate only if they are not assumed or substituted, and otherwise provide for a double trigger; values presume that the acquirer assumes outstanding stock options.

(4)

Effective April 29, 2014, the Executive Officer Severance Pay Policy provides an executive officer, who is terminated involuntarily, a severance payment equal to 1 times base salary plus one year of continued benefits and outplacement. Thechange-in-control agreements provide for a severance payment equal to 2.5 times the sum of base salary and target annual bonus.

(5)

For the time-vested RSUs, upon termination due to death or disability, represents the accelerated value of the RSUs based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, RSUs will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017restrictions. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Upon achange-in-control only (single trigger), RSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding RSUs.

(6)

Upon a termination due to death or disability, awards will vest based on actual performance at the conclusion of the performance periods. Forperiod ending in the awards in fiscal 2017, awards willyear of death or disability. Shares continue to vest on apro-rated basis based onthrough the numberyear of years completed (partial yearsdeath or disability and all unvested shares are reflected as one full year). Upon a termination due to retirement, awards will vest based on actual performanceaccelerated. Fiscal year 2020 and arepro-rated based on the number of completed calendar days during the performance period;2021 values assume target performance will be achieved. For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, awards will vest in full based on actual performance at the end of the performance period (nopro-rated payout); 2017. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Pursuant to our award agreements with this executive the PRSUs outstanding as of thechange-in-control will be vested at the greater of target or actual performance for the year,performance period, andpro-rated based on the number of calendar days between the beginning of the performance period and thechange-in-control. Upon achange-in-control only (single trigger), PRSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding PRSUs. As of December 31, 2017,2021, two three-year performance cycles (2016-2018(2020-2022 and 2017-2019)2021-2023) are not yet complete and the awards are tracking at target, payoutsso no incremental values are used.included in this table. For the 2015-20172019-2021 performance cycle, actual payouts were greaterless than target and the value shown in the table represents the incremental difference between actual payout and target. Upon a termination following achange-in-control, value represents the incremental difference in values between target and actual performance (e.g. no value for cycles where actual payouts are greater than or equal to target amounts). Values are based on the closing price of our common stock on December 31, 20172021 ($68.20)68.52).

Summary of Termination Payments

Thomas Deitrich

 

Executive Benefits (1)

 Termination
for Cause		  Voluntary
Termination		  Death  Disability  Retirement  Termination
Without
Cause		  Change-in-
Control		  Termination
Without Cause or
by Executive for
Good Reason
Following a
Change-in-Control		 

Annual Incentive (2)

 $            —  $            —  $—  $—  $—  $—  $  83,578  $83,578 

Accelerated Stock Options (3)

 $—  $—  $  1,696,039  $  1,696,039  $—  $—  $—  $1,696,039 

Severance (4)

 $—  $—  $—  $—  $—  $  583,104  $—  $  2,750,000 

Benefit Continuation

 $—  $—  $—  $—  $—  $—  $—  $60,260 

Accelerated RSUs(5)

 $—  $—  $3,029,171  $3,029,171  $—  $—  $—  $3,029,171 

Accelerated Performance RSUs (PRSUs) (6)

 $—  $—  $2,049,615  $2,049,615  $  1,135,730  $—  $—  $1,482,527 

(1)
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ITRON, INC.
​
​
Summary of Termination Payments
​
​
Joan Hooper
​
​
Executive Benefits(1)
​​
Termination
for Cause
​​
Voluntary
Termination
​​
Death
​​
Disability
​​
Retirement
​​
Termination
Without
Cause
​​
Change-in-
Control
​​
Termination
Without Cause
or by Executive
for Good
Reason
Following a
Change-in-
Control
​
​
Annual Incentive(2)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$58,500
​​
$58,500
​
​
Accelerated Stock Options(3)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​
​
Severance(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$520,000
​​
$—
​​
$1,820,000
​
​
Benefit Continuation(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$27,652
​​
$—
​​
$37,304
​
​
Accelerated RSUs(5)
​​
$—
​​
$—
​​
$1,215,750
​​
$1,215,750
​​
$498,346
​​
$—
​​
$—
​​
$1,215,750
​
​
Accelerated Performance
RSUs (PRSUs)(6)
​​
$—
​​
$—
​​
$1,003,609
​​
$1,003,609
​​
$737,344
​​
$—
​​
$—
​​
$104,836
​
(1)
The above table does not include amounts under our Executive Deferred Compensation Plan, stock option awards that are fully vested, earned salary, and accrued vacation as those items are earned and due to the employee regardless of such termination orchange-in-control events. It also does not include amounts payable under life insurance coverage, our accidental death & dismemberment coverage or our business travel accident coverage, which are programs available to all employees. Under thechange-in-control agreement with this executive the term is 24 months following achange-in-control and the severance payment is equal to 2.52 times the sum of the executive’sexecutive's base salary and target annual bonus. Each form of payment is mutually exclusive based on the individual circumstances or events and therefore represents a single payment and should not be added together.

(2)

Pursuant to ourchange-in-control agreement with this executive, the annual bonus payable in the event of termination following achange-in-control is the greater of target or the actual amount earned. For 2017, the actualThe annual incentive plan payout was less thanpaid out below target in 2021, so the value represents the incremental difference between the target and actual bonus paid.

(3)

Representsin-the-money value of accelerated stock options based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponAs all accelerated options are underwater at this price, no values are shown. Upon a termination due to retirement after the secondfirst anniversary of the grant date, stock options will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017 awards are assumed forfeited, as retirement at December 31, 2017 is before the second anniversary of the grant date.restrictions. Upon achange-in-control, stock options will accelerate only if they are not assumed or substituted, and otherwise provide for a double trigger; values presume that the acquirer assumes outstanding stock options.

(4)

Effective April 29, 2014, the Executive Officer Severance Pay Policy provides an executive officer, who is terminated involuntarily, a severance payment equal to 1 times base salary plus one year of continued benefits and outplacement. Thechange-in-control agreements provide for a severance payment equal to 2.52 times the sum of base salary and target annual bonus.

(5)

For the time-vested RSUs, upon termination due to death or disability, represents the accelerated value of the RSUs based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, RSUs will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017restrictions. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Upon achange-in-control only (single trigger), RSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding RSUs.

(6)

Upon a termination due to death or disability, awards will vest based on actual performance at the conclusion of the performance periods. Forperiod ending in the awards in fiscal 2017, awards willyear of death or disability. Shares continue to vest on apro-rated basis based onthrough the numberyear of years completed (partial yearsdeath or disability and all unvested shares are reflected as one full year). Upon a termination due to retirement, awards will vest based on actual performanceaccelerated. Fiscal year 2020 and arepro-rated based on the number of completed calendar days during the performance period;2021 values assume target performance will be achieved. For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, awards will vest in full based on actual performance at the end of the performance period (nopro-rated payout); 2017. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Pursuant to our award agreements with this executive the PRSUs outstanding as of thechange-in-control will be vested at the greater of target or actual performance for the year,performance period, andpro-rated based on the number of calendar days between the beginning of the performance period and thechange-in-control. Upon achange-in-control only (single trigger), PRSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding PRSUs. As of December 31, 2017, Mr. Deitrich has2021, two three-year performance cycles (2016-2018(2020-2022 and 2017-2019) that2021-2023) are not yet complete and the awards are tracking at target, so no incremental values are included in this table. For the 2019-2021 performance cycle, actual payouts were less than target and the value shown in the table represents the incremental difference between actual payout is used.and target. Upon a termination following achange-in-control, value represents the incremental difference in values between target and actual performance (e.g. no value for cycles where actual payouts are greater than or equal to target amounts). Values are based on the closing price of our common stock on December 31, 20172021 ($68.20)68.52).

Summary of Termination Payments

Michel Cadieux

 

Executive Benefits (1)

 Termination
for Cause		  Voluntary
Termination		  Death  Disability  Retirement  Termination
Without
Cause		  Change-in-
Control		  Termination
Without Cause or
by Executive for
Good Reason
Following a
Change-in-Control		 

Annual Incentive (2)

 $            —  $            —  $—  $—  $—  $—  $  45,588  $45,588 

Accelerated Stock Options (3)

 $—  $—  $495,497  $495,497  $—  $—  $—  $495,497 

Severance (4)

 $—  $—  $—  $—  $—  $  432,912  $—  $  1,400,000 

Benefit Continuation

 $—  $—  $—  $—  $—  $—  $—  $47,824 

Accelerated RSUs (5)

 $—  $—  $563,946  $563,946  $—  $—  $—  $563,946 

Accelerated Performance RSUs (PRSUs) (6)

 $—  $—  $  1,678,334  $  1,678,334  $  1,312,784  $—  $—  $593,002 

(1)
​​
-47-
​​

TABLE OF CONTENTS

​
ITRON, INC.
​
​
Summary of Termination Payments
​
​
Sarah Hlavinka
​
​
Executive Benefits(1)
​​
Termination
for Cause
​​
Voluntary
Termination
​​
Death
​​
Disability
​​
Retirement
​​
Termination
Without
Cause
​​
Change-in-
Control
​​
Termination
Without Cause
or by Executive
for Good Reason
Following a
Change-in-
Control
​
​
Annual Incentive(2)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$53,438
​​
$53,438
​
​
Accelerated Stock Options(3)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​
​
Severance(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$475,000
​​
$—
​​
$1,662,500
​
​
Benefit Continuation(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$18,965
​​
$—
​​
$19,930
​
​
Accelerated RSUs(5)
​​
$—
​​
$—
​​
$514,859
​​
$514,859
​​
$241,602
​​
$—
​​
$—
​​
$514,859
​
​
Accelerated Performance RSUs (PRSUs)(6)
​​
$—
​​
$—
​​
$586,903
​​
$586,903
​​
$432,635
​​
$—
​​
$—
​​
$67,081
​
(1)
The above table does not include amounts under our Executive Deferred Compensation Plan, stock option awards that are fully vested, earned salary, and accrued vacation as those items are earned and due to the employee regardless of such termination orchange-in-control events. It also does not include amounts payable under life insurance coverage, our accidental death & dismemberment coverage or our business travel accident coverage, which are programs available to all employees. Under thechange-in-control agreement with this executive the term is 24 months following achange-in-control and the severance payment is equal to 2 times the sum of the executive’sexecutive's base salary and target annual bonus. Each form of payment is mutually exclusive based on the individual circumstances or events and therefore represents a single payment and should not be added together.

(2)

Pursuant to ourchange-in-control agreement with this executive, the annual bonus payable in the event of termination following achange-in-control is the greater of target or the actual amount earned. For 2017, the actualThe annual incentive plan payout was less thanpaid out below target in 2021, so the value represents the incremental difference between the target and actual bonus paid.

(3)

Representsin-the-money value of accelerated stock options based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponAs all accelerated options are underwater at this price, no values are shown. Upon a termination due to retirement after the secondfirst anniversary of the grant date, stock options will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017 awards are assumed forfeited, as retirement at December 31, 2017 is before the second anniversary of the grant date.restrictions. Upon achange-in-control, stock options will accelerate only if they are not assumed or substituted, and otherwise provide for a double trigger; values presume that the acquirer assumes outstanding stock options.

(4)

Effective April 29, 2014, the Executive Officer Severance Pay Policy provides an executive officer, who is terminated involuntarily, a severance payment equal to 1 times base salary plus one year of continued benefits and outplacement. Thechange-in-control agreements provide for a severance payment equal to 2 times the sum of base salary and target annual bonus.

(5)

For the time-vested RSUs, upon termination due to death or disability, represents the accelerated value of the RSUs based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, RSUs will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017restrictions. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Upon achange-in-control only (single trigger), RSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding RSUs.

(6)

Upon a termination due to death or disability, awards will vest based on actual performance at the conclusion of the performance periods. Forperiod ending in the awards in fiscal 2017, awards willyear of death or disability. Shares continue to vest on apro-rated basis based onthrough the numberyear of years completed (partial yearsdeath or disability and all unvested shares are reflected as one full year). Upon a termination due to retirement, awards will vest based on actual performanceaccelerated. Fiscal year 2020 and arepro-rated based on the number of completed calendar days during the performance period;2021 values assume target performance will be achieved. For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, awards will vest in full based on actual performance at the end of the performance period (nopro-rated payout); 2017. 2021 awards are assumed forfeited, as retirement at

December 31, 20172021 is before the secondfirst anniversary of the grant date. Pursuant to our award agreements with this executive the PRSUs outstanding as of thechange-in-control will be vested at the greater of target or actual performance for the year,performance period, andpro-rated based on the number of calendar days between the beginning of the performance period and thechange-in-control. Upon achange-in-control only (single trigger), PRSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding PRSUs. As of December��December 31, 2017,2021, two three-year performance cycles (2016-2018(2020-2022 and 2017-2019)2021-2023) are not yet complete and the awards are tracking at target, payoutsso no incremental values are used.included in this table. For the 2015-20172019-2021 performance cycle, actual payouts were greaterless than target and the value shown in the table represents the incremental difference between actual payout and target. Upon a termination following achange-in-control, value represents the incremental difference in values between target and actual performance (e.g. no value for cycles where actual payouts are greater than or equal to target amounts). Values are based on the closing price of our common stock on December 31, 20172021 ($68.20)68.52).

Summary of Termination Payments

Shannon Votava

 

Executive Benefits (1)

 Termination
for Cause		  Voluntary
Termination		  Death  Disability  Retirement  Termination
Without
Cause		  Change-in-
Control		  Termination
Without Cause
or by Executive
for Good Reason
Following a
Change-in-
Control		 

Annual Incentive (2)

 $            —  $            —  $—  $—  $—  $—  $  39,510  $39,510 

Accelerated Stock Options (3)

 $—  $—  $326,791  $326,791  $—  $—  $—  $326,791 

Severance (4)

 $—  $—  $—  $—  $—  $  417,308  $—  $  1,320,000 

Benefit Continuation

 $—  $—  $—  $—  $—  $—  $—  $16,615 

Accelerated RSUs (5)

 $—  $—  $392,696  $392,696  $—  $—  $—  $392,696 

Accelerated Performance RSUs (PRSUs) (6)

 $—  $—  $  1,108,887  $  1,108,887  $  848,914  $—  $—  $416,344 

(1)
​​
-48-
​​

TABLE OF CONTENTS

​
ITRON, INC.
​
​
Summary of Termination Payments
​
​
Michel Cadieux
​
​
Executive Benefits(1)
​​
Termination
for Cause
​​
Voluntary
Termination
​​
Death
​​
Disability
​​
Retirement
​​
Termination
Without
Cause
​​
Change-in-
Control
​​
Termination
Without Cause
or by Executive
for Good Reason
Following a Change-in-
Control
​
​
Annual Incentive(2)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$46,125
​​
$46,125
​
​
Accelerated Stock Options(3)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​
​
Severance(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$410,000
​​
$—
​​
$1,435,000
​
​
Benefit Continuation(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$27,351
​​
$—
​​
$36,702
​
​
Accelerated RSUs(5)
​​
$—
​​
$—
​​
$562,070
​​
$562,070
​​
$254,689
​​
$—
​​
$—
​​
$562,070
​
​
Accelerated Performance RSUs (PRSUs)(6)
​​
$—
​​
$—
​​
$611,115
​​
$611,115
​​
$471,897
​​
$—
​​
$—
​​
$67,081
​
(1)
The above table does not include amounts under our Executive Deferred Compensation Plan, stock option awards that are fully vested, earned salary, and accrued vacation as those items are earned and due to the employee regardless of such termination orchange-in-control events. It also does not include amounts payable under life insurance coverage, our accidental death & dismemberment coverage or our business travel accident coverage, which are programs available to all employees. Under thechange-in-control agreement with this executive the term is 24 months following achange-in-control and the severance payment is equal to 2 times the sum of the executive’sexecutive's base salary and target annual bonus. Each form of payment is mutually exclusive based on the individual circumstances or events and therefore represents a single payment and should not be added together.

(2)

Pursuant to ourchange-in-control agreement with this executive, the annual bonus payable in the event of termination following achange-in-control is the greater of target or the actual amount earned. For 2017, the actualThe annual incentive plan payout was less thanpaid out below target in 2021, so the value represents the incremental difference between the target and actual bonus paid.

(3)

Representsin-the-money value of accelerated stock options based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponAs all accelerated options are underwater at this price, no values are shown. Upon a termination due to retirement after the secondfirst anniversary of the grant date, stock options will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017 awards are assumed forfeited, as retirement at December 31, 2017 is before the second anniversary of the grant date.restrictions. Upon achange-in-control, stock options will accelerate only if they are not assumed or substituted, and otherwise provide for a double trigger; values presume that the acquirer assumes outstanding stock options.

(4)

Effective April 29, 2014, the Executive Officer Severance Pay Policy provides an executive officer, who is terminated involuntarily, a severance payment equal to 1 times base salary plus one year of continued benefits and outplacement. Thechange-in-control agreements provide for a severance payment equal to 2 times the sum of base salary and target annual bonus.

(5)

For the time-vested RSUs, upon termination due to death or disability, represents the accelerated value of the RSUs based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, RSUs will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017restrictions. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Upon achange-in-control only (single trigger), RSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding RSUs.

(6)

Upon a termination due to death or disability, awards will vest based on actual performance at the conclusion of the performance periods. Forperiod ending in the awards in fiscal 2017, awards willyear of death or disability. Shares continue to vest on apro-rated basis based onthrough the numberyear of years completed (partial yearsdeath or disability and all unvested shares are reflected as one full year). Upon a termination due to retirement, awards will vest based on actual performanceaccelerated. Fiscal year 2020 and arepro-rated based on the number of completed calendar days during the performance period;2021 values assume target performance will be achieved. For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, awards will vest in full based on actual performance at the end of the performance period (nopro-rated payout); 2017. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Pursuant to our award agreements with this executive the PRSUs outstanding as of thechange-in-control will be vested at the greater of target or actual performance for the year,performance period, andpro-rated based on the number of calendar days between the beginning of the performance period and thechange-in-control. Upon achange-in-control only (single trigger), PRSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding PRSUs. As of December 31, 2017,2021, two three-year performance cycles (2016-2018(2020-2022 and 2017-2019)2021-2023) are not yet complete and

the awards are tracking at target, payoutsso no incremental values are used.included in this table. For the 2015-20172019-2021 performance cycle, actual payouts were greaterless than target and the value shown in the table represents the incremental difference between actual payout and target. Upon a termination following achange-in-control, value represents the incremental difference in values between target and actual performance (e.g. no value for cycles where actual payouts are greater than or equal to target amounts). Values are based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52).

Summary of Termination Payments

Joan Hooper

 

Executive Benefits (1)

 Termination
for Cause		  Voluntary
Termination		  Death  Disability  Retirement  Termination
Without
Cause		  Change-in-
Control		  Termination
Without Cause
or by Executive
for Good Reason
Following a
Change-in-
Control		 

Annual Incentive (2)

 $            —  $            —  $—  $—  $            —  $—  $  31,800  $31,800 

Accelerated Stock Options (3)

 $—  $—  $—  $—  $—  $—  $—  $— 

Severance (4)

 $—  $—  $—  $—  $—  $  501,235  $—  $  1,697,500 

Benefit Continuation

 $—  $—  $—  $—  $—  $—  $—  $14,470 

Accelerated RSUs (5)

 $—  $—  $  249,066  $  249,066  $—  $—  $—  $249,066 

Accelerated Performance RSUs (PRSUs) (6)

 $—  $—  $166,044  $166,044  $—  $—  $—  $105,012 

(1)
​​
-49-
​​

TABLE OF CONTENTS

​
ITRON, INC.
​
​
Summary of Termination Payments
​
​
Donald Reeves
​
​
Executive Benefits(1)
​​
Termination
for Cause
​​
Voluntary
Termination
​​
Death
​​
Disability
​​
Retirement
​​
Termination
Without
Cause
​​
Change-in-
Control
​​
Termination
Without Cause
or by Executive
for Good Reason
Following a Change-in-
Control
​
​
Annual Incentive(2)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$38,250
​​
$38,250
​
​
Accelerated Stock Options(3)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​
​
Severance(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$425,000
​​
$—
​​
$1,360,000
​
​
Benefit Continuation(4)
​​
$—
​​
$—
​​
$—
​​
$—
​​
$—
​​
$33,427
​​
$—
​​
$48,854
​
​
Accelerated RSUs(5)
​​
$—
​​
$—
​​
$323,072
​​
$323,072
​​
$135,258
​​
$—
​​
$—
​​
$323,072
​
​
Accelerated Performance RSUs (PRSUs)(6)
​​
$—
​​
$—
​​
$335,242
​​
$335,242
​​
$256,950
​​
$—
​​
$—
​​
$34,123
​
(1)
The above table does not include amounts under our Executive Deferred Compensation Plan, stock option awards that are fully vested, earned salary, and accrued vacation as those items are earned and due to the employee regardless of such termination orchange-in-control events. It also does not include amounts payable under life insurance coverage, our accidental death & dismemberment coverage or our business travel accident coverage, which are programs available to all employees. Under thechange-in-control agreement with this executive the term is 24 months following achange-in-control and the severance payment is equal to 2 times the sum of the executive’sexecutive's base salary and target annual bonus. Each form of payment is mutually exclusive based on the individual circumstances or events and therefore represents a single payment and should not be added together.

(2)

Pursuant to ourchange-in-control agreement with this executive, the annual bonus payable in the event of termination following achange-in-control is the greater of target or the actual amount earned. For 2017, the actualThe annual incentive plan payout was less thanpaid out below target in 2021, so the value represents the incremental difference between the target and actual bonus paid.

(3)

Representsin-the-money value of accelerated stock options based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponAs all accelerated options are underwater at this price, no values are shown. Upon a termination due to retirement after the secondfirst anniversary of the grant date, stock options will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017 awards are assumed forfeited, as retirement at December 31, 2017 is before the second anniversary of the grant date.restrictions. Upon achange-in-control, stock options will accelerate only if they are not assumed or substituted, and otherwise provide for a double trigger; values presume that the acquirer assumes outstanding stock options.

(4)

Effective April 29, 2014,In December 2021, Mr. Reeves became entitled to the Executive Officer Severance Pay Policy which provides an executive officer, who is terminated involuntarily, a severance payment equal to 1 times base salary plus one year of continued benefits and outplacement. Thechange-in-control agreements provide for a severance payment equal to 2 times the sum of base salary and target annual bonus.

(5)

For the time-vested RSUs, upon termination due to death or disability, represents the accelerated value of the RSUs based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52). For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, RSUs will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017restrictions. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Upon achange-in-control only (single trigger), RSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding RSUs.

(6)

Upon a termination due to death or disability, awards will vest based on actual performance at the conclusion of the performance periods. Forperiod ending in the awards in fiscal 2017, awards willyear of death or disability. Shares continue to vest on apro-rated basis based onthrough the numberyear of years completed (partial yearsdeath or disability and all unvested shares are reflected as one full year). Upon a termination due to retirement, awards will vest based on actual performanceaccelerated. Fiscal year 2020 and arepro-rated based on the number of completed calendar days during the performance period;2021 values assume target performance will be achieved. For the awards in fiscal 2017, uponUpon a termination due to retirement after the secondfirst anniversary of the grant date, awards will vest in full based on actual performance at the end of the performance period (nopro-rated payout); 2017. 2021 awards are assumed forfeited, as retirement at December 31, 20172021 is before the secondfirst anniversary of the grant date. Pursuant to our award agreements with this executive the PRSUs outstanding as of thechange-in-control will be vested at the greater of target or actual performance for the year,performance period, andpro-rated based on the number of calendar days between the beginning of the performance period and thechange-in-control. Upon achange-in-control only (single trigger), PRSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding PRSUs. As of December 31, 2017, one2021, two three-year performance cycle (2017-2019) iscycles (2020-2022 and 2021-2023) are not yet complete and the awards are tracking at target, so no incremental values are included in this table. For the 2019-2021 performance cycle, actual payouts were less than target and the value shown in the table represents the incremental difference between actual payout is being used.and target. Upon a termination following achange-in-control, value represents the incremental difference in values between target and actual performance (e.g. no value for cycles where actual payouts are greater than or equal to target amounts). Values are based on the closing price of our common stock on December 29, 201731, 2021 ($68.20)68.52).

Summary of Termination Payments

Robert Farrow

 

Executive Benefits (1)

 Termination
for Cause		  Voluntary
Termination		  Death  Disability  Retirement  Termination
Without
Cause		  Change-in-
Control		  Termination
Without Cause
or by Executive
for Good Reason
Following a
Change-in-
Control		 

Annual Incentive

 $            —  $            —  $—  $—  $—  $—  $—  $— 

Accelerated Stock Options (2)

 $—  $—  $90,623  $90,623  $—  $—  $—  $90,623 

Severance (3)

 $—  $—  $—  $—  $—  $  317,868  $            —  $  317,868 

Benefit Continuation

 $—  $—  $—  $—  $—  $—  $—  $— 

Accelerated RSUs (4)

 $—  $—  $  260,865  $  260,865  $—  $—  $—  $260,865 

Accelerated Performance RSUs (PRSUs) (5)

 $—  $—  $309,673  $309,673  $  242,899  $—  $—  $109,409 

(1)
​​
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PROPOSAL 3 – RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANT
The Board, upon the recommendation of its Audit/Finance Committee, has selected Deloitte & Touche LLP to serve as the Company’s independent registered public accountant for the 2022 fiscal year, subject to ratification by our shareholders. Although not required to do so, the Board is submitting the selection of Deloitte & Touche LLP for ratification by the Company’s shareholders for their views on the Company’s independent registered public accountant and as a matter of good corporate practice. Deloitte & Touche LLP has advised the Company that it has no direct, nor any material indirect, financial interest in the Company or any of its subsidiaries. Representatives of Deloitte & Touche LLP are expected to be present at the Annual Meeting, will have the opportunity to make a statement, if they desire to do so, and will be available to respond to appropriate questions.
In the event that our shareholders fail to ratify the selection, it will be considered as a direction to the Board and the Audit/Finance Committee to consider the selection of a different firm. Even if the selection is ratified, the Audit/Finance Committee in its discretion may select a different independent registered public accounting firm, subject to ratification by the Board, at any time during the year if it determines that such a change would be in the best interest of the Company and our shareholders.
​
​​
​​
The above table does notBoard recommends that shareholders
vote “FOR” the ratification of Deloitte &
Touche LLP as our independent registered
public accountant for fiscal year 2022.
​
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM’S AUDIT FEES AND SERVICES
For the years ended December 31, 2020 and 2021, professional services were performed by Deloitte & Touche LLP and their respective affiliates (collectively, Deloitte). The aggregate fees billed by Deloitte for the years ended December 31, 2020 and 2021 were as follows:
​
Services Rendered
​​
2020
​​
2021
​
​
Audit Fees(1)
​​
$6,363,549
​​
$7,170,960
​
​
Audit-Related Fees(2)
​​
—
​​
—
​
​
Total Audit and Audit-Related Fees
​​
​6,363,549
​​
7,170,960
​
​
Tax Fees(3)
​​
​1,962,798
​​
2,722,790
​
​
Other Fees(4)
​​
2,064
​​
2,064
​
​
Total Fees
​​
$​8,328,411
​​
$9,895,814
​
(1)
Audit services include amounts under our Executive Deferred Compensation Plan, stock option awards that are fully vested, earned salary,fees for professional services rendered for the audit of the Company’s annual financial statements and accrued vacation as those items are earnedinternal controls over financial reporting for the years ended December 31, 2020 and due2021, including out of pocket expenses, and reviews of the financial statements included in the Company’s Quarterly Reports on Form 10-Q. In addition, services include statutory audits required, and accounting consultations on matters related to the employee regardless of such terminationannual audits orchange-in-control events. It also does not include amounts payable under life insurance coverage, our accidental death & dismemberment coverage or our business travel accident coverage, which interim reviews.
(2)
Audit-related services are programs available to all employees. Each form of payment is mutually exclusivedisclosed in the year incurred, based on when the individual circumstances or eventswork is performed. These services typically include due diligence in connection with acquisitions, accounting process advice, and therefore represents a single paymentagreed-upon procedures. We did not engage any such services during the years ended December 31, 2020 and should not be added together.

2021.

(2)(3)

Representsin-the-money value of accelerated stock optionsTax services are disclosed in the year incurred, based on when the closing price of our common stock on December 29, 2017 ($68.20). Forwork is performed. These services include tax compliance, tax advice, and tax planning during the awards in fiscal 2017, upon a termination due to retirement after the second anniversary of the grant date, stock options will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017 awards are assumed forfeited, as retirement atyears ended December 31, 2017 is before2020 and 2021.

(4)
Services performed by Deloitte qualifying as “Other” for the second anniversary of the grant date. Upon achange-in-control, stock options will accelerate only if they are not assumed or substituted, and otherwise provide for a double trigger; values presume that the acquirer assumes outstanding stock options.

(3)

Effective April 29, 2014, the Executive Officer Severance Pay Policy provides an executive officer, who is terminated involuntarily, a severance payment equal to 1 times base salary plus one year of continued benefits and outplacement.

(4)

For the time-vested RSUs, upon termination due to death or disability, represents the accelerated value of the RSUs based on the closing price of our common stock on December 29, 2017 ($68.20). For the awards in fiscal 2017, upon a termination due to retirement after the second anniversary of the grant date, RSUs will continue to vest subject tonon-compete/non-solicit and reasonable notice restrictions; 2017 awards are assumed forfeited, as retirement atyears ended December 31, 2017 is before the second anniversary of the grant date. Upon achange-in-control only (single trigger), RSUs that2020 and 2021, are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding RSUs.

related to accounting research tools and permitted consultation services.

The Audit/Finance Committee has adopted policies and procedures that require the Company to obtain the Committee’s pre-approval of all audit and permissible non-audit services to be provided by the Company’s independent registered public accounting firm. Pre-approval is generally granted on a quarterly basis, is detailed as to the particular service or category of services to be provided and is granted after consideration of the estimated fees for each service or category of service. Actual fees and any changes to estimated fees for pre-approved services are reported to the Committee on a quarterly basis. In 2020 and 2021, all services were pre-approved in accordance with the charter of the Audit/Finance Committee.
(5)

Upon a termination due to death or disability, awards will vest based on actual performance at the conclusion of the performance periods. For the awards in fiscal 2017, awards will vest on apro-rated basis based on the number of years completed (partial years are reflected as one full year). Upon a termination due to retirement, awards will vest based on actual performance and arepro-rated based on the number of completed calendar days during the performance period; values assume target performance will be achieved. For the awards in fiscal 2017, upon a termination due to retirement after the second anniversary of the grant date, awards will vest in full based on actual performance at the end of the performance period (nopro-rated payout); 2017 awards are assumed forfeited, as retirement at December 31, 2017 is before the second anniversary of the grant date. Pursuant to our award agreements with this executive the PRSUs outstanding as of thechange-in-control will be vested at the greater of target or actual performance for the year, andpro-rated based on the number of calendar days between the beginning of the performance period and thechange-in-control. Upon achange-in-control only (single trigger), PRSUs that are not assumed by an acquirer will accelerate; values presume that the acquirer assumes applicable outstanding PRSUs. As of December 31, 2017, two three-year performance cycles (2016-2018 and 2017-2019) are not yet complete and target payouts are used. For the 2015-2017 performance cycle, actual payouts were greater than target. Upon a termination following achange-in-control, value represents the incremental difference in values between target and actual performance (e.g. no value for cycles where actual payouts are greater than or equal to target amounts). Values are based on the closing price of our common stock on December 29, 2017 ($68.20).

​		​
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TABLE OF CONTENTS

2021 AUDIT/FINANCE COMMITTEE REPORT

The Audit/Finance Committee is composed of independent directors as defined by Rule 5605(a)(2) of the NASDAQNasdaq rules and acts under a written charter developed by the Committee and approved by the Board. Management is responsible for the Company’s internal controls and the financial reporting process. Deloitte & Touche LLP, the Company’s independent registered public accounting firm in 2017,2021, is responsible for performing an independent audit of the Company’s consolidated financial statements and internal control over financial reporting in accordance with auditing standards of the Public Company Accounting Oversight Board (United States) (the PCAOB) and for issuing a report thereon. The Committee’s responsibility is to monitor and oversee these processes on behalf of our Board of Directors.

In connection with the December 31, 20172021 financial statements, the Audit/Finance Committee hereby reports as follows:

(1)
(1)

The Audit/Finance Committee has reviewed and discussed the audited financial statements and report on internal control over financial reporting with management.

(2)
(2)

The Audit/Finance Committee has discussed with the independent auditors the matters required by the applicable requirements of the PCAOB Auditing Standard No. 1301,Communications with Audit Committees.

and the SEC.

(3)
(3)

The Audit/Finance Committee has received the written disclosures and the letter from the auditors, as required by applicable requirements of the PCAOB regarding the independent accountant’s communications with the Audit/Finance Committee concerning independence and discussed with the auditors the auditors’ independence.

(4)
(4)

Based upon these reviews and discussions, the Audit/Finance Committee has recommended to the Board of Directors and the Board has approved, that the Company’s audited financial statements be included in the Securities and Exchange Commissionits Annual Report on Form10-K for the year ended December 31, 2017.

2021 and filed with the SEC.

Audit/Finance Committee

Thomas S. Glanville, Chairman

Jerome J. Lande

Timothy M. Leyden

Gary E. Pruitt

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM’S AUDIT FEES AND SERVICES

For the years ended December 31, 2016 and December 31, 2017, professional services were performed by Deloitte & Touche LLP and their respective affiliates (collectively, Deloitte). The aggregate fees billed by Deloitte for the years ended December 31, 2016 and 2017, respectively, were as follows:

Services Rendered

  2016   2017 

Audit Fees (1)

  $5,165,145   $6,115,322 

Audit-Related Fees (2)

     981,885 
  

 

 

   

 

 

 

Total Audit and Audit-Related Fees

   5,165,145    7,097,207 

Tax Fees (3)

   2,326,547    1,492,516 

Other Fees (4)

   2,174    2,060 
  

 

 

   

 

 

 

Total Fees

  $7,493,866   $8,591,783 
  

 

 

   

 

 

 

(1)​

Audit services include fees for professional services rendered for the audit of the Company’s annual financial statements and internal controls over financial reporting for the years ended December 31, 2016 and 2017, and reviews of the financial statements included in the Company’s Quarterly Reports on Form10-Q. In addition, services include statutory audits required, and accounting consultations on matters related to the annual audits or interim reviews.

​​
Audit/Finance Committee
​
​
​​
​
​
​​
Timothy M. Leyden, Chair
Thomas S. Glanville
Jerome J. Lande
Gary E. Pruitt
​

(2)

Audit-related services primarily include fees for accounting policy and process advice and agreed-upon procedures.

​		​
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TABLE OF CONTENTS

(3)

Tax services include fees for consultation and assistance with tax preparation and compliance during the years ended December 31, 2016 and 2017.

(4)

Services performed by Deloitte qualifying as “Other” for the year ended December 31, 2017, related to accounting research tools.

The Audit/Finance Committee has adopted policies and procedures that require the Company to obtain the Committee’spre-approval of all audit and permissiblenon-audit services to be provided by the Company’s independent registered public accounting firm.Pre-approval is generally granted on a quarterly basis, is detailed as to the particular service or category of services to be provided, and is granted after consideration of the estimated fees for each service or category of service. Actual fees and any changes to estimated fees forpre-approved services are reported to the Committee on a quarterly basis. In 2016 and 2017, all services werepre-approved in accordance with the charter of the Audit/Finance Committee.

EQUITY COMPENSATION PLAN INFORMATION

The following table gives certain information about our equity compensation plans in effect as of December 31, 2017.

Plan Category

  Number of Shares 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 Shares
Remaining Available
for Issuance Under
Equity Compensation
Plans (excluding shares
reflected in column (a))
(c)		 

Equity Compensation Plans Approved by Shareholders (1)

   1,511,863   $47.10(2)    4,996,046(3) 

Equity Compensation Plans Not Approved by Shareholders

   —    —    — 
  

 

 

   

 

 

   

 

 

 

Total

   1,511,863   $47.10(2)    4,996,046(3) 
  

 

 

   

 

 

   

 

 

 

2021.
​
Plan Category
​​
Number of Shares 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 Shares
Remaining Available
for Issuance Under
Equity Compensation
Plans (excluding shares
reflected in column (a))
(c)
​
​
Equity Compensation Plans Approved by Shareholders(1)
​​
​823,168
​​
$61.18(2)
​​
5,486,053(3)
​
​
Equity Compensation Plans Not Approved by Shareholders
​​
—
​​
—
​​
—
​
​
Total
​​
​823,168
​​
$61.18(2)
​​
​5,486,053(3)
​
(1)

Under the provisions of the Second A&R 2010 Plan, the Company may grant stock awards, stock units, performance shares, stock appreciation rights, and performance units (collectively Awards) in addition to stock options. For purposes of this table, the number of performance sharesPRSUs included are determined based on achievement of target performance goals.

(2)

The weighted-average exercise price pertains only to outstanding options and excludes 414,371430,407 shares issuable upon vesting of outstanding Awards.

(3)

This number includes 4,656,3275,344,978 shares available for issuance under the Second A&R 2010 Plan and 339,719141,075 shares available for issuance under the 2012 Employee Stock Purchase Plan.

Plan, as amended.
​​
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Directors and Executive Officers
The following table provides information with respect to the beneficial ownership of our common stock as of March 1, 2018 by:

◾

each of our directors;

◾

each of our executive officers listed in the Summary Compensation Table;

◾

all of our director nominees, directors, and executive officers as a group; and

◾

each person that we know beneficially owns more than 5% of our common stock.

8, 2022 by each of our directors, each of our named executive officers listed in the Summary Compensation Table, and all of our director nominees, directors, and executive officers as a group. The percentage ownership data is based on 39,121,723shares45,037,070 shares of our common stock outstanding as of March 1, 2018.8, 2022. Under SEC rules, beneficial ownership includes shares over that which the indicated beneficial owner exercises voting and/or investment power. Shares of common stock subject to options that are currently exercisable or will become exercisable within 60 days or shares of restricted stock unitesunits vested or that will vest within 60 days are deemed outstanding for computing the number of shares and the percentage ownership of the person holding the option, but are not deemed outstanding for purposes of computing the percentage ownership of any other person. Except as otherwise noted, we believe that the beneficial owners of the shares of common stock listed below have sole voting and investment power with respect to all shares beneficially owned, subject to applicable community property laws.

   Shares Beneficially
Owned		 

Name

  Number   Percent 

Directors and Executive Officers:

    

Philip C. Mezey (1)

   520,459    1.32% 

Thomas L. Deitrich (2)

   131,246    *     

W. Mark Schmitz (3)

   0    0 

Michel C. Cadieux (4)

   60,419    *     

Shannon M. Votava (5)

   55,924    *     

Joan S. Hooper (6)

   3,652    *     

Robert H.A. Farrow (7)

   5,783    *     

Kirby A. Dyess (8)

   17,686    *     

Thomas S. Glanville (9)

   16,192    *     

Frank M. Jaehnert (10)

   6,433    *     

Jerome J. Lande (11)

   11,922    *     

Timothy M. Leyden (12)

   7,368    *     

Peter Mainz (13)

   4,677    *     

Daniel S. Pelino (14)

   10,411    *     

Gary E. Pruitt (15)

   23,791    *     

Diana D. Tremblay (16)

   6,433    *     

Lynda L. Ziegler (17)

   12,882    *     

All directors and executive officers as a group (17 persons) (18)

   921,249    2.32% 
    

Greater-Than-5% Beneficial Owners:

    

Scopia Capital Management LP (19)

152 West 57th Street, 33rd Floor

New York, New York 10019

   5,222,140    13.35% 

BlackRock, Inc. (20)

40 East 52nd Street

New York, NY 10022

   4,620,250    11.81% 

Vanguard Group (21)

100 Vanguard Blvd.

Malvern, PA 19355

   3,419,813    8.74% 

The address of each person named in the table, unless otherwise indicated, is c/o Itron, Inc., 2111 N. Molter Road, Liberty Lake, WA 99019.
​
Name
​​
Shares Beneficially
Owned
​
​
Number
​​
Percent
​
​
Directors and Executive Officers:
​​
​​
​
​
Thomas L. Deitrich(1)
​​
​361,586
​​
*
​
​
Joan S. Hooper(2)
​​
​56,863
​​
*
​
​
Michel C. Cadieux(3)
​​
​32,593
​​
*
​
​
Sarah E. Hlavinka(4)
​​
​22,274
​​
*
​
​
Donald L. Reeves(5)
​​
​15,912
​​
*
​
​
Thomas S. Glanville(6)
​​
8,123
​​
*
​
​
Frank M. Jaehnert(7)
​​
​13,770
​​
*
​
​
Jerome J. Lande(8)
​​
​14,596
​​
*
​
​
Timothy M. Leyden(9)
​​
​12,360
​​
*
​
​
Santiago Perez(10)
​​
​1,454
​​
*
​
​
Gary E. Pruitt(11)
​​
​43,791
​​
*
​
​
Diana D. Tremblay(12)
​​
​13,770
​​
*
​
​
Lynda L. Ziegler(13)
​​
​14,178
​​
*
​
​
All directors and executive officers as a group (15 persons)(14)
​​
​618,350
​​
​1.36%
​
*

Less than 1%.

(1)

Includes 418,245For Mr. Deitrich, includes 234,156 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $43.86 per share. Also includes 53,354and 25,000 shares held in trust for the benefit of Mr. Deitrich’s son, of which Mr. Deitrich is a trust with Mr. Mezey and his spouse asco-trustees, who share voting and investment power over these shares.

trustee.

(2)

Includes 88,723For Ms. Hooper, includes 29,369 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $39.13 per share.

days.

(3)

Represents shares owned as of March 1, 2018.

(4)

Includes 37,830For Mr. Cadieux, includes 22,116 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $38.98 per share.

days.

(5)(4)

Includes 47,368For Ms. Hlavinka, includes 7,300 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $39.59 per share.

days.

(6)(5)

Represents shares owned as of March 1, 2018.

(7)

Includes (i) 1,478For Mr. Reeves, includes 11,891 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $49.18 per share and (ii) 2,321 restricted share units that will vest within 60 days.

(8)(6)

Includes (i) 3,099 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $57.48 per share, and (ii) 6,833 vested restricted share units where payout of the underlying shares has been deferred pursuant to the Company’s Amended and Restated Executive Deferred Compensation Plan.

(9)

Includes 1,102 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $67.80 per share.

(10)

Includes 1,503 vested restricted share units where payout of the underlying shares has been deferred pursuant to the Company’s Amended and Restated Executive Deferred Compensation Plan.

(11)

RepresentsFor Mr. Glanville, represents shares owned as of March 1, 2018.8, 2022.

(7)
For Mr. Lande was appointed to our Board through an agreement with Scopia. Mr. Lande is an employee of Scopia but does not have voting or investment power over and disclaims beneficial ownership of the shares of the Company owned by Scopia.

(12)

Includes 289 restricted share units that will vest within 60 days.

(13)

Includes 1,863 vested restricted share units where payout of the underlying shares has been deferred pursuant to the Company’s Amended and Restated Executive Deferred Compensation Plan. Mr. Mainz was appointed to our Board through an agreement with Scopia. Mr. Mainz is not affiliated with Scopia and does not have voting or investment power over and disclaims beneficial ownership of the shares of the Company owned by Scopia.

(14)

RepresentsJaehnert, represents shares owned as of March 1, 2018.

8, 2022, including 7,357 shares of which Mr. Jaehnert has deferred receipt of pursuant to Itron's Executive Deferred Compensation Plan.

(15)(8)

Includes 2,486 shares issuable on exercise of outstanding options exercisable within 60 days at a weighted average exercise price of $60.69 per share.

(16)

RepresentsFor Mr. Lande, represents shares owned as of March 1, 2018.

8, 2022.

(17)(9)

RepresentsFor Mr. Leyden, represents shares owned as of March 1, 2018.

8, 2022.

(18)(10)

For Mr. Perez, represents shares owned as of March 8, 2022.

(11)
For Mr. Pruitt, represents shares owned as of March 8, 2022
(12)
For Ms. Tremblay, represents shares owned as of March 8, 2022.
(13)
For Ms. Ziegler, represents shares owned as of March 8, 2022.
(14)
Includes (i) 600,331308,275 shares issuable on exercise of outstanding options that are held by all current directors and executive officers and are exercisable within 60 days, (ii) 2,610 restricted share units that will vest within 60 days,days.
​​
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TABLE OF CONTENTS

Principal Shareholders
The following table provides information with respect to the beneficial ownership of our common stock as of March 8, 2022 by each person that we know beneficially owns more than five percent (5%) of our common stock.
​
​​
Shares of Common Stock Beneficially Owned
​
​
Name and (iii) 10,199 vested restricted share units where payout of the underlying shares has been deferred pursuant to the Company’s Amended and Restated Executive Deferred Compensation Plan.

Address
​​
Number
​​
Percent
​
​
BlackRock, Inc.(1)
40 East 52nd Street
New York, NY 10055
​​
​7,143,476
​​
15.9%
​
​
​​
​​
​
​
Vanguard Group(2)
100 Vanguard Blvd.
Malvern, PA 19355
​​
​5,023,798
​​
11.2%
​
​
​​
​​
​
​
Impax Asset Management Limited(3)
7th Floor, 30 Panton Street
London, SW1Y 4AJ, United Kingdom
​​
​2,322,840
​​
​5.2%
​

(19)(1)

Information is based on Amendment No. 1020 to a Schedule 13D filed with the SEC on December 11, 2017 by Scopia Capital Management LP (“Scopia”) (jointly with others as described below), reporting beneficial ownership as of December 7, 2017, and supplemented with information based on a Form 4 filed by Scopia (jointly with others as described below) with the SEC on January 3, 2018. According to these filings, Scopia beneficially owns 5,222,140 shares of Common Stock by virtue of having sole voting power and sole dispositive power over 5,222,140 shares of Common Stock in its role as investment advisor for certain funds, consisting of a separately managed account and the following investment advisory client funds: Scopia Long LLC; Scopia LB LLC; Scopia PX LLC; Scopia Partners LLC; Scopia Long QP LLC; Scopia Long International Master Fund LP; Scopia Windmill Fund LP; Scopia International Master Fund LP; Scopia PX International Master Fund LP; and Scopia LB International Master Fund LP. These filings further indicate that Scopia Management, Inc., as the general partner of Scopia, beneficially owns 5,222,140 shares of Common Stock by virtue of having sole voting power and dispositive power of 5,222,140 shares of Common Stock, and Messrs. Matthew Sirovich and Jeremy Mindich, as the managing directors of Scopia Management, Inc., a general partner of Scopia Capital Management LP, each beneficially own 5,222,140 shares of Common Stock by virtue of having shared voting power and dispositive power of 5,222,140 shares

of Common Stock. Jerome Lande and Peter Mainz were appointed to our Board through an agreement with Scopia. Mr. Lande is an employee of Scopia but does not have voting or investment power over, and disclaims beneficial ownership of, the shares of the Company owned by Scopia. Mr. Mainz is not affiliated with Scopia and does not have voting or investment power over, and disclaims beneficial ownership of, the shares of the Company owned by Scopia.

(20)

Information is based on Amendment No. 15 to a Schedule 13G13G/A filed with the SEC on January 19, 201827, 2022 by BlackRock, Inc., reporting beneficial ownership as of December 31, 20172021 on behalf of its investment advisory subsidiaries, BlackRock Life Limited, BlackRock Advisors, LLC, Aperio Group, LLC, BlackRock Asset Management Canada Limited, BlackRock Asset Management Ireland Limited, BlackRock Asset Management Schweiz AG, BlackRock Financial Management, Inc.(Netherlands) B.V., BlackRock Fund Advisors, BlackRock Institutional Trust Company, N.A.National Association, BlackRock Asset Management Ireland Limited, BlackRock Financial Management, Inc., BlackRock Asset Management Schweiz AG, BlackRock Investment Management, LLC, BlackRock Investment Management (UK) Limited, BlackRock Asset Management Canada Limited, BlackRock (Luxembourg) S.A., BlackRock (Netherlands) B.V., BlackRock Investment Management (Australia) Limited, and BlackRock Investment Management (UK) Ltd,.Fund Managers Ltd. The Schedule 13G indicates that BlackRock Fund Advisors beneficially owns 5% or greater of these shares reported, and that BlackRock, Inc. has sole voting power over 4,545,0587,044,429 of these shares and sole dispositive power over all of these shares.

(21)(2)

Information is based on Amendment No. 510 to a Schedule 13G13G/A filed with the SEC on February 9, 201810, 2022 by The Vanguard Group (Vanguard), reporting beneficial ownership as of December 31, 2017.2021. The Schedule 13G indicates that Vanguard has sole dispositive power over 3,349,8134,906,650 of these shares and shared dispositive power over 68,919117,148 of these shares. Vanguard has soleshared voting power over 66,46376,697 of these shares.

(3)
Information is based on the Schedule 13G filed with the SEC on February 14, 2022 jointly by Impax Asset Management Limited, Impax Asset Management (AIFM) Limited, and Impax Asset Management LLC (collectively Impax), reporting beneficial ownership as of December 31, 2021. The Schedule 13G indicates that Impax Asset Management Limited has sole voting and dispositive power over 1,989,626 of these shares, Impax Asset Management (AIFM) Limited has sole voting and dispositive power over 329,676 of these shares, and sharedImpax Asset Management LLC has sole voting and dispositive power over 5,3573,538 of these shares.

DELINQUENT SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

REPORTS

Section 16(a) of the Exchange Act requires our executive officers and directors and persons who own more than 10% of a registered class of our equity securities, to file reports of ownership and changes in ownership with the SEC. SEC regulations require our executive officers, directors, and greater than 10% shareholders to provide us with copies of all Section 16(a) forms they file.

Based solely on our review of these forms and written representations received from certain reporting persons, we believe that during 20172021 all of our executive officers, directors, and greater than 10% shareholders complied with all Section 16(a) filing requirements applicable to them.

them, except for a late Form 4 for Mr. Thomas Glanville reporting the sale of shares in September 2019.

LIST OF SHAREHOLDERS OF RECORD

A list of shareholders of record entitled to vote at the Annual Meeting will be available at the Annual Meeting and will also be available ten days prior to the annual meetingAnnual Meeting between the hours of 9:00 a.m. and 4:00 p.m., Pacific time, at the office of the Corporate Secretary, Itron, Inc., 2111 N. Molter Road, Liberty Lake, Washington 99019. A shareholder may examine the list for any legally valid purpose related to the annual meeting.Annual Meeting.
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TABLE OF CONTENTS

ANNUAL REPORT AND FINANCIAL STATEMENTS

A copy of our 20172021 Annual Report to Shareholders, which includes our financial statements for the year ended December 31, 2017,2021, accompanies this proxy statement. In addition, you may view the Annual Report and this proxy statement on our Company website,www.itron.com, by selecting “Investors” and then “Financials and Filings.”

SHAREHOLDER PROPOSALS FOR THE 20192023 ANNUAL MEETING

Requirements for Shareholder Proposals to be Considered for Inclusion in Itron’s Proxy Materials.
Under the SEC’s proxy rules, shareholder proposals that meet specified conditions must be included in our proxy statement and proxy for the 20192023 annual meeting. Under Exchange Act Rules14a-5(e) and14a-8(e), shareholders that intend to present a proposal at our 20192023 annual meeting must give us written notice of the proposal not later than November 29, 201825, 2022 for the proposal to be considered for inclusion in our proxy materials for that meeting. In addition, shareholders
Requirements for Shareholder Proposals and Nominations to be Brought Before the Annual Meeting.
Shareholders who wish to submit nominations for the election of directors or proposals that will not be included in our proxy materials must do so in accordance with the advance notice provisions and other applicable requirements set forth in our Amended and Restated Bylaws. Our Amended and Restated Bylaws provide that the notice of proposals to be considered at our annual meeting must be received by Itron at least 90 days and not more than 120 days prior to the anniversary date of the prior year’s annual meeting, and that the notice of nominations for election of directors must be received at least 60 days and not more than 90 days prior to the date of our annual meeting (or if less than 60 days’ notice or prior public disclosure of the date of such annual meeting is given or made to the shareholders, not later than the tenth day following the day on which notice of the date of the annual meeting was mailed or public disclosure was made). Shareholders who intend to present proposals at the 20192023 annual meeting that will not be included in our proxy materials must provide to our Corporate Secretary written notice of the business they wish to propose not later than February 9, 201911, 2023 and no sooner than January 10, 2019, assuming12, 2023. Shareholders who intend to present notice of nominations for election of directors at the 2023 annual meeting is scheduled for May 9, 2019.that will not be included in our proxy materials must provide to our Corporate Secretary written notice of the business they wish to propose not later than March 13, 2023 and no sooner than February 11, 2023. Our timely receipt of a proposal by a qualified shareholder will not guarantee the proposal’s inclusion in our proxy materials or presentation at the 20192023 annual meeting, because there are other requirements in the proxy rules. We reserve the right to reject, rule out of order, or take other appropriate action with respect to any proposal that does not comply with all applicable requirements of the SEC’s proxy rules, state law, and our Amended and Restated Bylaws.

In addition to satisfying the foregoing requirements under our Amended and Restated Bylaws, to comply with the universal proxy rules, shareholders who intend to solicit proxies in support of director nominees other than the Company’s nominees must provide notice that sets forth the information required by Rule 14a-19 under the Exchange Act no later than March 13, 2023.
Shareholder proposals should be directed to the attention of our Corporate Secretary, Itron, Inc., 2111 N. Molter Road, Liberty Lake, Washington 99019.

OTHER INFORMATION

We make available, free of charge, copies of our filings with the SEC, including this proxy statement and our Annual Report to Shareholders, upon the request of shareholders. The documents are also available for downloading or printing by going to our website atwww.itron.com, and selecting “Investors” and then “Investor Relations - Financial Information.“Financials and Filings.” Shareholders may submit a request for printed copies bye-mail through our website atwww.itron.com, by selecting “Investors” and then “Contact Investor Relations”“Contact” or by mail to the following address:

Itron, Inc. – Attention: Investor Relations


2111 N. Molter Road


Liberty Lake, Washington 99019

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DIRECTIONS TO ANNUAL SHAREHOLDERS MEETING

May 10, 2018 – 4:00 pm Central Time

LOGO

LOGO

Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas. X Itron, Inc. 02SC4B 1 U P X + Annual Meeting Proxy Card . C Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below NOTE: Please sign as name appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, trustee, or guardian, please give full title as such. Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box. + B Non-Voting Items A Proposals — The Board of Directors recommends a vote FOR all the nominees listed. IMPORTANT ANNUAL MEETING INFORMATION 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. 1.1 - Philip C. Mezey 1.2 - Daniel S. Pelino 1. Election of Directors: For Against Abstain For Against Abstain The Board of Directors recommends a vote FOR Proposals 2 and 3, both of which are Company Proposals. 1.3 - Timothy M. Leyden For Against Abstain For Against Abstain 2. Proposal to approve the advisory (non-binding) resolution relating to executive compensation. For Against Abstain 3. Ratification of the appointment of Deloitte & Touche LLP as the Company’s independent registered public accountant for 2018. MMMMMMMMMMMM MMMMMMMMMMMMMMM 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000004 MR A SAMPLE DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4 ADD 5 ADD 6 ENDORSEMENT_LINE SACKPACK 1234 5678 9012 345 MMMMMMM 3 7 0 8 9 6 1 MR A SAMPLE (THIS AREA IS SET UP TO ACCOMMODATE 140 CHARACTERS) MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MMMMMMMMM C 1234567890 J N T C123456789 IF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. 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 PM, Eastern Time, on May 9, 2018. Vote by Internet • Go to www.envisionreports.com/ITRI • 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 • Follow the instructions provided by the recorded message

LOGO

This Proxy is Solicited by Itron’s Board of Directors for the Annual Meeting of Shareholders to be held on May 10, 2018 The undersigned hereby appoint(s) Philip C. Mezey and Shannon M. Votava and each of them, as proxies, with full power of substitution, to represent and vote as designated all shares of common stock of Itron, Inc. held of record by the undersigned on March 5, 2018, at the Annual Meeting of Shareholders of Itron to be held at the Houston Marriott Marquis Hotel in the Kingwood Room at 1777 Walker Street, Houston, Texas, 77010, at 4:00 p.m., local time, on Thursday, May 10, 2018, with authority to vote upon the matters listed in this proxy and with discretionary authority as to any other matters that may properly come before the meeting or any adjournment or postponement thereof. THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER(S). IF NO DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED FOR THE ELECTIONTABLE OF ALL NOMINEES NAMED AND FOR THE OTHER PROPOSALS OR OTHERWISE IN ACCORDANCE WITH THE RECOMMENDATIONCONTENTS



TABLE OF THE BOARDCONTENTS



TABLE OF DIRECTORS. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED REPLY ENVELOPE. (Continued and to be marked, dated and signed, on the other side) Proxy — Itron, Inc. Important Notice regarding Internet availability of proxy materials for the Shareholder Meeting to be held on May 10, 2018. The Proxy Statement and the Annual Report to security holders are available at: http://www.envisionreports.com/ITRI IF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.CONTENTS



LOGO

Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas. X Itron, Inc. 02SC5B 1 U P X + PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. Annual Meeting Proxy Card . B Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below NOTE: Please sign as name appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, trustee, or guardian, please give full title as such. Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box. + A Proposals — The Board of Directors recommends a vote FOR all the nominees listed. IMPORTANT ANNUAL MEETING INFORMATION 1.1 - Philip C. Mezey 1.2 - Daniel S. Pelino 1. Election of Directors: For Against Abstain For Against Abstain 1.3 - Timothy M. Leyden For Against Abstain The Board of Directors recommends a vote FOR Proposals 2 and 3, both of which are Company Proposals. For Against Abstain 2. Proposal to approve the advisory (non-binding) resolution relating to executive compensation. For Against Abstain 3. Ratification of the appointment of Deloitte & Touche LLP as the Company’s independent registered public accountant for 2018. MMMMMMMMMMMM 3 7 0 8 9 6 2 MMMMMMMMM

LOGO

PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. . This Proxy is Solicited by Itron’s Board of Directors for the Annual Meeting of Shareholders to be held on May 10, 2018 The undersigned hereby appoint(s) Philip C. Mezey and Shannon M. Votava and each of them, as proxies, with full power of substitution, to represent and vote as designated all shares of common stock of Itron, Inc. held of record by the undersigned on March 5, 2018, at the Annual Meeting of Shareholders of Itron to be held at the Houston Marriott Marquis Hotel in the Kingwood Room at 1777 Walker Street, Houston, Texas, 77010, at 4:00 p.m., local time, on Thursday, May 10, 2018, with authority to vote upon the matters listed in this proxy and with discretionary authority as to any other matters that may properly come before the meeting or any adjournment or postponement thereof. THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER(S). IF NO DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED FOR THE ELECTIONTABLE OF ALL NOMINEES NAMED AND FOR THE OTHER PROPOSALS OR OTHERWISE IN ACCORDANCE WITH THE RECOMMENDATION OF THE BOARD OF DIRECTORS. PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED REPLY ENVELOPE. (Continued and to be marked, dated and signed, on the other side) Proxy — Itron, Inc. Important Notice regarding Internet availability of proxy materials for the Shareholder Meeting to be held on May 10, 2018. The Proxy Statement and the Annual Report to security holders are available at: http://www.edocumentview.com/ITRICONTENTS

LOGO

Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas. X Itron, Inc. 02SC7B 1 U P X + Annual Meeting Proxy Card . C Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below NOTE: Please sign as name appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, trustee, or guardian, please give full title as such. Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box. B Non-Voting Items IMPORTANT ANNUAL MEETING INFORMATION 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. + A Proposals — The Board of Directors recommends a vote FOR all the nominees listed. 1.1 - Philip C. Mezey 1.2 - Daniel S. Pelino 1. Election of Directors: For Against Abstain For Against Abstain 1.3 - Timothy M. Leyden For Against Abstain The Board of Directors recommends a vote FOR Proposals 2 and 3, both of which are Company Proposals. For Against Abstain 2. Proposal to approve the advisory (non-binding) resolution relating to executive compensation. For Against Abstain 3. Ratification of the appointment of Deloitte & Touche LLP as the Company’s independent registered public accountant for 2018. MMMMMMMMMMMM MMMMMMMMMMMMMMM 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000004 MR A SAMPLE DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4 ADD 5 ADD 6 ENDORSEMENT_LINE SACKPACK 1234 5678 9012 345 MMMMMMM 3 7 0 8 9 6 4 MR A SAMPLE (THIS AREA IS SET UP TO ACCOMMODATE 140 CHARACTERS) MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MMMMMMMMM C 1234567890 J N T C123456789 IF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. 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 PM, Eastern Time, on May 7, 2018. Vote by Internet • Go to www.envisionreports.com/ITRI • 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 • Follow the instructions provided by the recorded message

LOGO

Proxy — Itron, Inc. Important Notice regarding Internet availability of proxy materials for the Shareholder Meeting to be held on May 10, 2018. The Proxy Statement and the Annual Report to security holders are available at: http://www.envisionreports.com/ITRI Annual Meeting May 10, 2018 Fidelity Management Trust Company (“Fidelity”), as Trustee of the Itron, Inc. Incentive Savings Plan, has been requested to forward to you the enclosed proxy material relative to the securities held by us in your account but not registered in your name. Such securities can be voted only by Fidelity as holder of record. Fidelity will vote your securities in accordance with your wishes if you execute this form and return it promptly in the enclosed business reply envelope, or provide directions via the telephone or internet, as described elsewhere in this form. It is understood that, if you sign without otherwise marking the form, the securities will be voted as recommended by the Board of Directors on all matters to be considered at the meeting. For this meeting, to the extent of its authority to vote securities in the absence of participant instructions, unless otherwise required by law, Fidelity will not vote any allocated shares with respect to which Fidelity does not receive timely voting directions. In order to ensure that your securities are voted as you wish, please provide your vote directions by May 7, 2018. Fidelity Management Trust Company (Continued and to be marked, dated and signed, on the other side) IF YOU HAVE NOT VOTED VIA THE INTERNET OR TELEPHONE, FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE.