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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.DC 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.       )

Filed by the Registrant   ☒
Filed by the Registrantý

Filed by a Party other than the Registranto

Check the appropriate box:

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Preliminary Proxy Statement

o


Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

ý


Definitive Proxy Statement

o


Definitive Additional Materials

o


Soliciting Material under §240.14a-12


Filed by a Party other than the Registrant   ☐
Check the appropriate box:
SERVICEMASTER GLOBAL HOLDINGS, 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):

ý


No fee required.

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Fee computed on table below 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):
(4)Proposed maximum aggregate value of transaction:
(5)Total fee paid:

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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.



(1)


Amount Previously Paid:
(2)Form, Schedule or Registration Statement No.:
(3)Filing Party:
(4)Date Filed:

Confidential, for Use of Contents

LOGO

SERVICEMASTER GLOBAL HOLDINGS, INC.

150 Peabody Place
Memphis, TN 38103

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON APRIL 30, 2019

To Our Stockholders:

        NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders of ServiceMasterCommission Only (as permitted by Rule 14a-6(e)(2))


Definitive Proxy Statement

Definitive Additional Materials

Soliciting Material under §240.14a-12
Terminix Global Holdings, Inc. will be held
(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):

No fee required.

Fee computed on table below 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):
(4)
Proposed maximum aggregate value of transaction:
(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.
(1)
Amount Previously Paid:
(2)
Form, Schedule or Registration Statement No.:
(3)
Filing Party:
(4)
Date Filed:

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MESSAGE FROM OUR CEO
To My Fellow Stockholders,
It is our pleasure to invite you to join us on Monday, May 17, 2021 at the Marriott Milwaukee West Hotel, located at W 231 N 1600 Corporate Court, Waukesha, WI 53186, on Tuesday, April 30, 2019, at 2:6:00 p.m., local time at 150 Peabody Place in Memphis, Tennessee for the following purposes:

    1.
    To elect the three Class II directors named in the accompanying proxy statement to serve until the 2022our 2021 Annual Meeting of Stockholders.

    2.
    To hold
2020 Year in Review
Since I joined Terminix, I’ve stated that our teammates are the most important part of our business. I’m proud that Terminix was deemed an essential services provider during the COVID-19 pandemic and our teammates could continue serving our customers in a non-binding advisory vote approving executive compensation.

3.
To ratifysafe, responsible manner through implementation of new safety protocols. We also tried to make life easier for our teammates, given the selectionunusual circumstances of Deloitte & Touche LLP2020, by enhancing our paid time off policies so that any teammate affected by the coronavirus could benefit from additional time off to take care of themselves and their loved ones. Overall, I want to express my appreciation to all of Terminix Nation for their dedication to our customers during unprecedented times.
In spite of 2020 being a difficult year due to the COVID-19 pandemic, the Company demonstrated continued improvement by increasing both revenue and Adjusted EBITDA. We made strong progress towards our strategic priorities of reducing employee turnover, improving customer retention, enhancing profit margins and revitalizing the termite business. The Company sold its ServiceMaster Brands business in the fourth quarter, leaving Terminix as a singularly focused pest management company. We also strengthened our termite business in 2020 by completing the company's independent registered public accounting firmtermite damage claim mitigation program in the Mobile Bay Area. As I pause to reflect, 2020 was a successful year showing good progress on our strategic initiatives despite unprecedented circumstances.
Looking to the Future
We look forward to accelerating our improvements during 2021 by driving consistent execution on our fundamentals through enhancing key operational capabilities. Strategic priorities for 2021 include enhancing the year ending December 31, 2019.

4.
To transact such other business as may properly come beforeteammate experience, improving the customer acquisition process, improving customer retention and expanding profit margins.
Your Vote is Important
We encourage you to take part in our Annual Meeting on May 17, but regardless of Stockholderswhether or any reconvenednot you attend, we encourage you to promptly vote your shares.
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“2020 was a successful year showing good progress on our strategic initiatives despite
unprecedented circumstances.”
Sincerely,
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Brett T. Ponton
Chief Executive Officer


NOTICE OF 2021
ANNUAL MEETING
OF STOCKHOLDERS
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150 Peabody Place
Memphis, TN 38103
To Our Stockholders:
Please join us at our Annual Meeting.
DATE & TIME
May 17, 2021, at 6:00 p.m., local time
LOCATION
150 Peabody Place, Memphis, TN 38103
RECORD DATE
March 26, 2021
At the meeting, you will be asked to vote on the following any adjournment or postponement thereof.

proposals.

Items of Business:Board RecommendationPage(s)
1To elect the three Class I directors named in the accompanying proxy statement to serve until the 2024 Annual Meeting of Stockholders.FOR EACH DIRECTOR NOMINEE
2To hold a non-binding advisory vote approving executive compensation.FOR
3To hold a non-binding advisory vote on the frequency of future advisory votes approving executive compensation.FOR EVERY YEAR
4To ratify the selection of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the year ending December 31, 2021.FOR
57 – 58
To transact such other business as may properly come before the Annual Meeting of Stockholders or any reconvened meeting following any adjournment or postponement thereof.
The foregoing items of business are more fully described in the proxy statement accompanying this notice.

Only stockholders of record at the close of business on March 7, 201926, 2021 are entitled to notice of, and to vote at, the Annual Meeting of Stockholders or any adjournment or postponement thereof. This notice and the accompanying proxy statement are first being mailed to stockholders on or about March 21, 2019.

By OrderApril 9, 2021. We currently intend to hold our Annual Meeting in person; however, we will continue to actively monitor issues related to COVID-19 and the impact of such on our Annual Meeting of Stockholders. We are sensitive to the public health and travel concerns our stockholders may have and the protocols that federal, state and local governments may impose or recommend. In response to the COVID-19 pandemic, it is possible that we may change the date, time or location of the BoardAnnual Meeting of Directors,

GRAPHIC

Michael C. Bisignano
Senior Vice President, General CounselStockholders, or may conduct the Annual Meeting via the Internet or teleconference call if we determine it is not possible or advisable to hold an in person meeting. We will notify stockholders of any such changes as promptly as practicable by issuing a press release that will be filed with the Securities and SecretaryExchange Commission and posted to our website.

March 21, 2019

YOUR VOTE IS IMPORTANT.
Whether or not you plan to attend the annual meeting,Annual Meeting, please vote by Internet or telephone at your earliest convenience or complete, sign, date and return the proxy card so that your shares will be represented at the meeting. You may choose to attend the meeting and personally cast your votes even if you vote by Internet or telephone or fill out and return a proxy card by mail. If you choose to attend the meeting in person, you may revoke your proxy and personally cast your votes at the meeting.
By Order of the Board of Directors,
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Dion Persson


IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON APRIL 30, 2019:

The proxy statementSenior Vice President and the 2018 annual report are available, free of charge, at http://www.proxyvote.com.Interim General Counsel and Secretary


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PROXY STATEMENT
FOR
ANNUAL MEETING OF STOCKHOLDERS
To Be Held

April 30, 2019
9, 2021
Voting Methods

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TABLE OF CONTENTS

TABLE OF CONTENTS
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1
6

22
24
24
39
40
50
52
53
54
55
59
QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND ANNUAL MEETING

1

IMPORTANT NOTICE REGARDING THE BOARDAVAILABILITY OF DIRECTORS AND CORPORATE GOVERNANCEPROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON MAY 17, 2021:
The proxy statement, notice of annual meeting and the 2020 annual report are


available, free of charge, at http://www.proxyvote.com.

6

EXECUTIVE OFFICERS


17

EXECUTIVE COMPENSATION


19

—COMPENSATION DISCUSSION AND ANALYSIS


19

—COMPENSATION COMMITTEE REPORT


34

—EXECUTIVE COMPENSATION TABLES


35

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT


47

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE


49

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS


49

REPORT OF THE AUDIT COMMITTEE


51

PROPOSAL 1: ELECTION OF DIRECTORS


52

PROPOSAL 2: NON-BINDING ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION


52

PROPOSAL 3: RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


53

OTHER BUSINESS


55

i

TERMINIX

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LOGO

SERVICEMASTER GLOBAL HOLDINGS, INC.

150 Peabody Place
Memphis, TN 38103

PROXY STATEMENTSUMMARY

QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND ANNUAL MEETING

What are the proxy materials?

The accompanying proxy is delivered and solicited on behalf of the board of directors of Terminix Global Holdings, Inc. (formerly known as ServiceMaster Global Holdings, Inc.), a Delaware corporation (referred to as "ServiceMaster,"“Terminix,” the "Company," "we," "us,"“Company,” “we,” “us,” or "our"“our”), in connection with the 20192021 Annual Meeting of Stockholders (the "Annual Meeting"“Annual Meeting”) to be held at the Marriott Milwaukee West Hotel, located at W 231 N 1600 Corporate Court, Waukesha, WI 53186, on Tuesday, April 30, 2019, at 2:00 p.m., local time. We are first sending this proxy statement and the accompanying form of proxy to stockholders on or about March 21, 2019. As a stockholder, you are invited to attend the Annual Meeting and are requested to vote on the items of business described. This summary highlights selected information contained in this proxy statement. ThisPlease read the entire proxy statement includes information that we are required to provide to you under U.S. Securities and Exchange Commission ("SEC") rules and is designed to assist you incarefully before voting your shares. The proxy materials include our proxy statement for the Annual Meeting, our 2018 annual report to stockholders, which includes our Annual Report on Form 10-K for the year ended December 31, 2018, and the proxy card or a voting instruction card for the Annual Meeting.

All stockholders and beneficial owners may access the proxy materials, free of charge, at www.proxyvote.com or on our website, at www.servicemaster.com. If you would like to receive a paper copy of our proxy materials, free of charge, please write to ServiceMaster Global Holdings, Inc., c/o Secretary, 150 Peabody Place, Memphis, TN 38103.

What items of business will be voted on at the Annual Meeting?

        The items of business scheduled to be voted on at the Annual Meeting are:

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PROPOSALS TO BE VOTED ON AT THE ANNUAL MEETING
Item
Election of three Directors for a Three-Year Term (see page 54)
1Proposal 1:
The electionboard of directors recommends that you vote FOR each director nominee. These individuals bring a range of relevant experiences and overall diversity of perspectives that is essential to good governance and leadership of our Company.
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OUR BOARD RECOMMENDS A VOTE FOR EACH DIRECTOR NOMINEE
ItemAdvisory vote Approving the three nominees named in the proxy statement as Class II directors for a term expiring at the 2022 Annual Meeting of Stockholders.Company’s Executive Compensation
(“Say-on-Pay”) (see page 55)
2
The board of directors recommends that you vote FOR this “Say-on-Pay” advisory proposal because our compensation program attracts top talent and reinforces our “Pay for Performance” philosophy.
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OUR BOARD RECOMMENDS A
VOTE FOR THIS ITEM
ItemAdvisory vote on the frequency of future advisory votes approving
executive compensation (see page 56)


Proposal 2:


A non-binding advisory vote approving executive compensation.


3

Proposal 3:


The ratificationboard of directors recommends that you vote FOR every year of Executive Compensation by stockholders.
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OUR BOARD RECOMMENDS A
VOTE FOR EVERY YEAR FOR THIS ITEM
Item
4
Approval of Deloitte & Touche LLP ("Deloitte"(“Deloitte”) as the Company'sCompany’s
Independent Public Accounting Firm (see pages 57-58)
The board of directors recommends that you vote FOR the ratification of Deloitte as the Company’s independent registered public accounting firm for the year ending December 31, 2019.2021.
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OUR BOARD RECOMMENDS A
VOTE FOR THIS ITEM
ABOUT US
Our People


We are committed to fostering a culture and workplace where all teammates are treated with respect and given an opportunity to contribute to our success.

To transact such other business as may properly come before the Annual Meeting or any reconvened meeting following any adjournment or postponement thereof.

How does the board of directors recommend I vote on these proposals?

Our Service
We provide industry-leading essential pest management services to more than 50,000 homes and businesses every day.
Proposal 1:"FOR" each of the nominees named in the proxy statement as Class II directors for a term expiring at the 2022 Annual Meeting of Stockholders.



Proposal 2:


"FOR" the non-binding advisory vote approving executive compensation.



Proposal 3:


"FOR" the ratification of Deloitte as the Company's independent registered public accounting firm for the year ending December 31, 2019.
Our Community
We live and work in the same communities as our customers, and we extend our support to these communities through giving, serving and protecting the places and people they care about the most.
TERMINIX1

PROXY SUMMARY
2021 ANNUAL
PROXY STATEMENT
PERFORMANCE HIGHLIGHTS & STRATEGIC ACHIEVEMENTS
The Company achieved some significant objectives during 2020.
Our 2020 Performance Highlights
Financial performance highlights includeFilled senior management roles

Eight percent increase in revenue

Ten percent increase in Adjusted EBITDA

The Company’s stock price increased by 31.9 percent during 2020

Hired Brett Ponton as CEO in September

Hired Bob Riesbeck in December to succeed Tony DiLucente as CFO

Appointed Kim Scott as COO in January 2021, responsible for both the Residential and Commercial businesses
Sale of the ServiceMaster Brands business on October 1, 2020

Sale price of $1.541 billion

The Company changed its name to Terminix Global Holdings, Inc., with a NYSE ticker of TMX following the sale

Terminix is now singularly focused on the pest management business
Difficult year due to COVID-19 pandemic

The Company implemented detailed protocols to ensure the safety of customers and teammates

Residential pest and termite businesses continued to grow during the pandemic

Terminix Commercial was negatively impacted but was resilient throughout the pandemic
Our 2020 Strategic Achievements
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Reduced
Employee
Turnover

Technician turnover improved 20 percent year-over-year
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Improved
Customer
Retention

Residential pest customer retention improved 160 bps
Termite customer retention improved 230 bps
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Revitalized
Termite
Business

Ten percent core termite completion growth year-over-year
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Enhanced
Profit Margins

40 bps margin expansion year-over-year
2TERMINIX

2021 ANNUAL
PROXY STATEMENT
PROXY SUMMARY
CORPORATE GOVERNANCE HIGHLIGHTS

        At

Our Governance Best Practices
We have tailored our corporate governance practices to reflect the Company’s culture, strategy and performance.
Independence
Majority
Vote Policy
Clawback
Policy
Our board of directors has determined that each member of the Audit, Compensation, Nominating & Corporate Governance and Environmental, Health & Safety committees is “independent” as defined under New York Stock Exchange (“NYSE”) listing standards and other relevant facts and circumstances.
Following certification of the stockholder vote in an uncontested election, any incumbent director who did not receive a majority of the votes cast for his or her election shall promptly tender his or her resignation, contingent upon acceptance of such resignation by the board, to the Chairman of the Board.The board of directors has approved and implemented a clawback policy that provides the Compensation Committee with the discretion to claw back performance-based compensation in the event of a restatement of Company financial statements or misconduct.
Meeting Attendance
No Hedging and Pledging
No Short Selling
Each of our incumbent directors attended at least 94 percent of the total number of meetings of the board, and in the case of committee meetings 100 percent, of which he or she was a member in 2020.We prohibit any of our directors, executive officers and all other teammates from engaging in pledging and hedging transactions in the Company’s securities.Our board of directors has adopted a policy that prohibits our directors, executive officers and all other teammates from short sales and transactions in puts and calls of the Company’s securities.
Double Trigger Awards
Stock Ownership Guidelines
Code of Conduct and
Financial Code of Ethics
The Company has adopted “double trigger” vesting acceleration in the event of a change in control of the Company, effective for all equity awards granted on or after April 23, 2018. This “double trigger” vesting acceleration provision was already included in our stock option agreements, but the Compensation Committee’s action includes this provision in all other stock awards.The board of directors has adopted stock ownership guidelines for members of the board and for executive officers. Members of the board are expected to hold stock valued at five times the annual cash retainer, or $400,000. The ownership guidelines for executive officers are based on a multiple of annual base salary with the CEO expected to own stock valued at six times his annual salary and other executive officers expected to own stock valued at three times their respective annual salaries.We have a Financial Code of Ethics that applies to the CEO, CFO and Controller, or persons performing similar functions, and other designated officers and teammates. We also have a Code of Conduct that applies to all of our directors, officers and teammates. The Financial Code of Ethics and Code of Conduct each address matters such as conflicts of interest, confidentiality, fair dealing and compliance with laws and regulations.
TERMINIX3

PROXY SUMMARY
2021 ANNUAL
PROXY STATEMENT
Our Current Board Overview
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The following table provides summary information about each director nominee and other directors continuing in office. See pages 7 to 10 for more information.
COMMITTEES
Director and
Principal Occupation
Age
Director
Since
AuditCompensation
Nominating &
Corporate
Governance
Environmental,
Health & Safety
Deborah H. Caplan
Executive Vice President, Human Resources and Corporate Services, NextEra Energy, Inc.
582019CM
David J. Frear
Former Chief Financial Officer, Sirius XM
642021MM
Laurie Ann Goldman
Former Chief Executive Officer, New Avon, LLC
582015MC
Naren K. Gursahaney
Chairman of the Board, Terminix Global Holdings, Inc.
592017MM
Steven B. Hochhauser
Former Chief Executive Officer, Ascensus Specialities
592018MM
Stephen J. Sedita
Former Chief Financial Officer, GE Home & Business Solutions
692013MC
Mark E. Tomkins
Former Chief Financial Officer, Innovene
652015CM
Brett T. Ponton
CEO, Terminix Global Holdings, Inc.
512020
4TERMINIX

2021 ANNUAL
PROXY STATEMENT
PROXY SUMMARY
KEY COMPENSATION HIGHLIGHTS
Our Compensation Philosophy
Our executive compensation program is designed to:
Attract and retain highly motivated, qualified and experienced executives
Focus the attention of the NEOs on the strategic, operational and financial performance of the Company
Encourage the NEOs to meet long-term performance objectives and increase stockholder value
To do so, the Compensation Committee uses a combination of near- and long-term incentive compensation to motivate and reward executives who have the ability to significantly influence our long-term financial success and who are responsible for effectively managing our operations in a way that maximizes stockholder value.
A significant portion of our executives’ target compensation is performance-based as exemplified in the below charts which illustrate the individual pay components.
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HUMAN CAPITAL MANAGEMENT
Terminix employs approximately 10,000 teammates in the United States and 1,400 teammates outside the United States in Europe, Canada and Central America. As a leader in the pest management industry, we recognize that our teammates are our most important asset in the delivery of the proxy holders, either FOR or AGAINST, any other matter or business that may properly come beforeservices we provide to customers. Since we deliver services in various communities around the Annual Meeting.

        As of the date hereof, our board of directorsworld, it is not aware of any other such matter or business to be transacted at our Annual Meeting. If other matters requiring a vote of the stockholders arise, the persons designated as proxies will vote the shares of common stock of the Company, par value $0.01 per share, represented by the proxies in accordance with their judgment on those matters.

Who is entitled to vote at the Annual Meeting?

        The record date for stockholders entitled to notice of, and to vote at, the Annual Meeting is March 7, 2019. At the close of business on that date, we had 136,057,181 shares of common stock outstanding and entitled to be voted at the Annual Meeting held by two stockholders of record and approximately 34,000 beneficial stockholders. A quorum is required for our stockholders to conduct business at the Annual Meeting. The presence in person or by proxy of the holders of record of a majority of the shares of common stock entitled to vote at the Annual Meeting is necessary to constitute a quorum at the Annual Meeting. Each outstanding share of common stock is entitled to one vote. Dissenters' rights are not applicable to any of the matters being voted upon at the Annual Meeting.

        By granting a proxy, you authorize the persons named in the proxy to represent you and vote your shares at the Annual Meeting. Those persons will also be authorized to vote your shares to adjourn the Annual Meeting from time to time and to vote your shares at any adjournments or postponements of the Annual Meeting.

        Registered Stockholders.    If your shares are registered directly in your name with our transfer agent, Computershare Trust Company, N.A. ("Computershare"), you are considered the stockholder of record with respect to those shares, and the proxy materials were provided to you directly by us. As a stockholder of record, you have the right to grant your voting proxy directly to the individuals listed on the proxy card in one of the manners listed on the proxy card or to vote in person at the Annual Meeting.

        Beneficial Stockholders.    If your shares are held in a stock brokerage account or by a broker, bank, trustee or other nominee, you are considered the beneficial owner of shares held in "street name," and the proxy materials were forwarded to you by your broker, bank, trustee or other nominee, who is considered, with respect to those shares, the stockholder of record. As the beneficial owner, you have the right to direct your broker, bank, trustee or other nominee how to vote your shares using the methods prescribed by your broker, bank, trustee or other nominee on the voting instruction card you received with the proxy materials. Beneficial owners are also invited to attend the Annual Meeting. However, since you are not the stockholder of record, you may not vote your shares in person at the Annual Meeting unless you follow your broker's, bank's, trustee's or other nominee's procedures for obtaining a legal proxy.

What votes are required to approve each of the proposals?

        Proposal 1, the nominees for Class II director will be elected by a majority of the votes cast with respect to such director nominee's election. On October 28, 2016, the board of directors amended and restated the Company's by-laws to provide for the election of directors by a majority of the votes cast, except in the case of contested elections. The "majority of votes cast" means that the number of shares voted "for" a director nominee must exceed the number of votes cast "against" that director nominee's election. In accordance with our amended and restated by-laws, stockholders do not have the right to cumulate their votes for the election of directors.


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        Proposal 2, the non-binding advisory vote approving executive compensation, will be determined by the affirmative vote of the holders of at least a majority of the outstanding shares of common stock present in person or represented by proxy at the Annual Meeting and entitled to vote. As an advisory vote, this proposal is not binding. However, our board of directors and Compensation Committee will consider the outcome of the vote when making future compensation decisions for our executive officers.

        Proposal 3, the ratification of the selection of Deloitte as our independent registered public accounting firm for the fiscal year ending December 31, 2019, will be determined by the affirmative vote of the holders of at least a majority of the outstanding shares of common stock present in person or represented by proxy at the Annual Meeting and entitled to vote. The Audit Committee has sole and direct responsibility for the appointment, retention, termination, compensation, evaluation and oversight of the work of any independent registered public accounting firm engaged by the Company. The Audit Committee has already appointed Deloitte as our independent registered public accounting firm for the fiscal year ending December 31, 2019. In the event of a negative vote on the ratification, the Audit Committee may reconsider its appointment of Deloitte for 2019; however, the Audit Committee will consider the outcome of the vote when making appointments of our independent registered public accounting firm in future years. Even if the appointment is ratified, the Audit Committee, in its discretion, may direct the appointment of a different independent registered public accounting firm at any time during the year if the Audit Committee determines that such a change would be in the Company's and the stockholders' best interests.

How are broker non-votes and abstentions counted?

        The presence of a majority of the outstanding shares of common stock entitled to vote at the Annual Meeting, either in person or by proxy, will constitute a quorum. Shares of common stock represented by proxies at the meeting, including broker non-votes and those that are marked "ABSTAIN" will be counted as shares present for purposes of establishing a quorum. Brokers or nominees holding shares for a beneficial owner may only vote on routine matters on behalf of a beneficial owner that does not provide voting instructions for their shares. A broker non-vote occurs when a broker or nominee holding shares for a beneficial owner has not received instructions from the beneficial owner and, therefore, does not vote on a non-routine matter. Because broker non-votes are not voted affirmatively or negatively, they will have no effect on the approval of any of the proposals, except where brokers may exercise their discretion on routine matters. Abstention and broker non-votes shall not be counted as votes cast with respect to a director nominee's election in Proposal 1. As to Proposals 2 and 3, shares represented by proxies that are marked "ABSTAIN" will have the effect of a vote against the proposal, while a broker non-vote will not have an effect on the outcome of any proposal other than Proposal 3. Only the ratification of the selection of Deloitte as our independent registered public accounting firm in Proposal 3 is considered a routine matter. Your broker will therefore not have discretion to vote on the "non-routine" matters set forth in Proposals 1 and 2 absent direction from you. It is, therefore, important that you vote your shares.

What happens ifour Teammate base reflect the values and customers of those communities we serve. In this regard, we are committed to fostering a director nominee does not get a majority vote?

        Following certification of the stockholder vote in an uncontested election, any incumbent director who did not receive a majority of the votes cast for his or her election shall promptly tender his or her resignation, contingent upon acceptance of such resignation by the board,safe, inclusive, and equitable workplace that attracts and retains exceptional talent, enabling us to the Chairman of the board. The Chairman of the board shall inform the Nominating and Corporate Governance Committee of such tender of resignation, and the Nominating and Corporate Governance Committee shall consider such resignation and recommend to the board of directors whether to accept the tendered resignation or reject it or whether any other action should be taken. In deciding upon its recommendation, the Nominating and Corporate Governance Committee shall consider all relevant


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factors, including without limitation the qualifications of the director who has tendered his or her resignation and the director's contribution to the Company and the board. The board will act on the recommendation of the Nominating and Corporate Governance Committee no later than 90 days after the certification of the stockholder vote and disclose the decision by filing a Form 8-K with the SEC. The board shall consider the factors considered by the Nominating and Corporate Governance Committee and such additional information and factors that the board deems relevant.

Can I vote in person at the Annual Meeting?

        For stockholders with shares registered in the name of a brokerage firm or bank or other similar organization, you will need to obtain a legal proxy from the broker, bank, trustee or other nominee that holds your shares before you can vote your shares in person at the Annual Meeting. For stockholders with shares registered directly in their names with Computershare, you may vote your shares in person at the Annual Meeting.

What do I need to do to attend the Annual Meeting in person?

        Space for the Annual Meeting is limited and admission will be granted on a first-come, first-served basis. Stockholders should be prepared to present (1) valid government photo identification, such as a driver's license or passport; and (2) beneficial stockholders holding their shares through a broker, bank, trustee or other nominee will need to bring proof of beneficial ownership as of March 7, 2019, the record date, such as their most recent account statement reflecting their stock ownership prior to March 7, 2019, a copy of the voting instruction card provided by their broker, bank, trustee or other nominee or similar evidence of ownership.

Can I vote by telephone or Internet?

        Stockholders of record with shares registered directly in their names with Computershare will be able to vote using the telephone and Internet. For beneficial stockholders with shares registered in the name of a broker, bank, trustee or other nominee, a number of brokerage firms and banks are participating in a program that offers telephone and Internet voting options. Stockholders should refer to the voting instruction card provided by their broker, bank, trustee or other nominee for instructions on the voting methods they offer. If your shares are held in an account at a broker, bank, trustee or other nominee participating in this program or registered directly in your name with Computershare, you may vote those shares by calling the telephone number specified on your proxy or accessing the Internet website address specified on your proxy instead of completing and signing the proxy itself. The giving of such a telephonic or Internet proxy will not affect your right to vote in person should you decide to attend the Annual Meeting. The telephone and Internet voting procedures are designed to authenticate stockholders' identities, to allow stockholders to give their voting instructions and to confirm that stockholders' instructions have been recorded properly. If you vote by telephone or by the Internet, you do not need to send in a proxy card or voting instruction form. The deadline for telephone and Internet voting will be 11:59 p.m., Eastern Time, on April 29, 2018.

How will my proxy be voted?

        The proxy accompanying this proxy statement is solicited on behalf of our board of directors for use at the Annual Meeting. Stockholders who received a proxy by mail and choose to vote by mail are requested to complete, date and sign the accompanying proxy and promptly return it in the envelope provided. All signed, returned proxies that are not revoked will be voted in accordance with the instructions contained therein.

        Proxies will be voted as specified by the stockholders. Unless contrary instructions are specified by the stockholder on the proxy card, if the accompanying proxy card is executed and returned (and not


Table of Contents

revoked) before the Annual Meeting, the shares of the common stock of the Company represented thereby will be voted "FOR" election of the nominees listed in this Proxy Statement as directors of the Company, "FOR" the proposal regarding advisory vote approving executive compensation and "FOR" the ratification of Deloitte as the Company's independent registered public accounting firm for the year ending December 31, 2019. A stockholder's submission of a signed proxy will not affect his or her right to attend and to vote in person at the Annual Meeting.

How do I change or revoke my proxy?

        Any person signing a proxy in the form accompanying this proxy statement has the power to revoke it prior to the Annual Meeting or at the Annual Meeting prior to the vote pursuant to the proxy. A proxy may be revoked by a writing delivered to us stating that the proxy is revoked, by a subsequent proxy that is signed by the person who signed the earlier proxy and is delivered before or at the Annual Meeting, by voting again on a later date on the Internet or by telephone (only your latest Internet or telephone proxy submitted prior to the Annual Meeting will be counted) or by attendance at the Annual Meeting and voting in person. Please note, however, that if a stockholder's shares are held of record by a broker, bank, trustee or other nominee and that stockholder wishes to vote in person at the Annual Meeting, the stockholder must bring a legal proxy to the Annual Meeting.

Who will count and certify the votes?

        Representatives of Broadridge Investor Communication Solutions, Inc. ("Broadridge") and the staff of our corporate secretary and investor relations offices will count the votes and certify the election results. The results will be publicly filed with the SEC on a Form 8-K within four business days after the Annual Meeting.

How can I make a proposal or make a nomination for director for next year's annual meeting?

        You may present proposals for action at a future meeting or submit nominations for election of directors only if you comply with the requirements of the proxy rules established by the SEC and our amended and restated by-laws, as applicable. In order for a stockholder proposal or nomination for director to be considered for inclusion in our proxy statement and form of proxy relatingbetter serve to our annual meeting of stockholders to be held in 2020, the proposal or nomination must be received by us at our principal executive offices no later than November 22, 2019. Stockholders wishing to bring a proposal or nominate a director at the annual meeting to be held in 2020 (but not include it in our proxy materials) must provide written notice of such proposal to our Secretary at our principal executive offices between January 1, 2020 and January 31, 2020 and comply with the other provisions of our amended and restated by-laws.

customers.

Five key areas in which we focus our efforts include:
Teammate Safety
2Diversity, Equity and Inclusion
3Training and Development
4Teammate Retention
5Competitive Compensation and Benefits
Who pays for the cost of proxy preparation and solicitation?

        The accompanying proxy is solicited by our board of directors. We have also retaineda Corporate Sustainability Report that discusses the firm of Georgeson to aid in the solicitation of brokers, banks, institutionalvalues, goals and other stockholdersobjectives we strive for a fee of approximately $10,000, plus reimbursement of expenses. Broadridge will also assist us in the distribution of proxy materials and provide voting and tabulation services for the Annual Meeting. All costs of the solicitation of proxies will be borne by us. We pay for the cost of proxy preparation and solicitation, including the reasonable charges and expenses of brokerage firms, banks, trusts or nominees for forwarding proxy materials to street name holders. We are soliciting proxies primarily by mail. In addition,each day.

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The Corporate Sustainability Report
is available without charge on our directors, officers and employees may solicit proxies by telephone or other means of communication personally. Our directors, officers and employees will receive no additional compensation for these services other than their regular compensation.


website at www.corporate.terminix.com/
responsibility/corporate-governance/index.html.
TERMINIX5


THE BOARD OF DIRECTORS AND CORPORATE GOVERNANCE

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Board Structure and Director Independence

Our board of directors is currently composed of seveneight directors. Our amended and restated certificate of incorporation provides for a classified board of directors, with members of each class serving staggered three-year terms. We currently have two directors in Class I, three directors in Class IIClasses I and III each and two directors in Class III.II. Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. The terms of directors in Classes I, II and III end at the annual meetings in 2019, 20202021, 2022 and 2021,2023, as indicated below.

NamePositionClassTerm Expires
David J. FrearIndependent DirectorClassI2021
John B. CornessBrett T. PontonClass I—Expiring Chief Executive Officer and DirectorI2021 Annual Meeting
Stephen J. SeditaClass I—Expiring Independent DirectorI2021 Annual Meeting
Laurie Ann GoldmanClass II—Expiring 2019 Annual MeetingIndependent DirectorII2022
Steven B. HochhauserClass II—Expiring 2019 Annual MeetingIndependent DirectorII2022
Nikhil M. VartyDeborah H. CaplanClass II—Expiring 2019 Annual MeetingIndependent DirectorIII2023
Naren K. GursahaneyClass III—Expiring 2020 Annual MeetingChairman of the BoardIII2023
Mark E. Tomkins*TomkinsClass III—Expiring 2020 Annual MeetingIndependent DirectorIII2023

* Chairman of the Board

At each annual meeting of stockholders, the successors of the directors whose term expires at that meeting are elected to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election. The board of directors is therefore asking you to elect the three nominees for director whose term expires at the Annual Meeting. Laurie Ann Goldman, Steven B. HochhauserDavid J. Frear, Brett T. Ponton and Nikhil M. Varty,Stephen J. Sedita, our Class III directors, have been nominated for reelection at the Annual Meeting. See "Proposal“Proposal 1—Election of Directors"Directors” below.

The number of members on our board of directors may be fixed by resolution adopted from time to time by the board of directors. Any vacancies or newly created directorships may be filled only by the affirmative vote of a majority of directors then in office, even if less than a quorum, or by a sole remaining director. Each director shall hold office until his or her successor has been duly elected and qualified, or until his or her earlier death, resignation or removal. During 2018,In September 2020, Mr. HochhauserPonton was added as a new member of the board of directors and in January 2021 Mr. Frear was added as a new member of the board of directors. In connection with the spin-offEffective as of January 21, 2020, Nikhil M. Varty resigned from his position as Chief Executive Officer and as a member of the American Home Shield business ("AHS") on October 1, 2018, on September 30, 2018, Peter L. Cella, William C. Cobb and Richard P. Fox resigned as members of our board of directors and were appointeddirectors. Effective as of December 31, 2020, John B. Corness retired as a member of the board of directors. On April 8, 2021, Mr. Tomkins provided notice of his intent to serve onretire as a member of the board of directors effective as of frontdoor, inc.,May 18, 2021, after conclusion of the parent companyAnnual Meeting on May 17 and the board of AHS ("Frontdoor").

directors meeting on May 18, 2021.
6TERMINIX

2021 ANNUAL
PROXY STATEMENT
THE BOARD OF DIRECTORS AND
CORPORATE GOVERNANCE
Table of Contents

Set forth below is biographical information as well as background information relating to each nominee'snominee’s and continuing director'sdirector’s business experience, qualifications, attributes and skills and why the board of directors and Nominating and Corporate Governance Committee believe each individual is a valuable member of the board of directors. The persons who have been nominated for election and are to be voted upon at the Annual Meeting are listed first, with continuing directors following thereafter. The respective age of each individual below is as of March 21, 2019.

April 9, 2021.

Nominees for Election to the Board of Directors in 20192021

Class I—Nominees Whose Term Expires in 2021
David J. Frear
Age: 64
Director Since: 2021
Independent Director
Committees:
Audit
Environmental, Health & Safety
EXPERIENCE

Mr. Frear served as chief financial officer of subscription-based, satellite radio provider Sirius XM from 2003 through September 2020.

Mr. Frear is a member of the board of directors of The NASDAQ Stock Market LLC, NASDAQ PHLX LLC, and NASDAQ BX, Inc., subsidiaries of Nasdaq, Inc., a leading provider of trading, clearing, exchange technology, listing, information and public company services.

He previously served on the boards of Sirius XM Canada Holdings Inc., Savvis Communications and Pandora Media Inc.

Prior to Sirius XM, Mr. Frear was also chief financial officer at Savvis Communications Corporation, Orion Network Systems Inc. and Millicom Incorporated and was an investment banker at Bear, Stearns & Co., Inc. and Credit Suisse.
REASONS FOR NOMINATION
Mr. Frear’s experience as a chief financial officer, his financial acumen and his experience on other public and private company boards qualify him to serve on our board of directors.
Brett T. Ponton
Age: 51
Director Since: 2020
EXPERIENCE

Mr. Ponton has served as Terminix’s Chief Executive Officer and as a member of our board of directors since September 15, 2020.

Mr. Ponton previously served as president of Monro, Inc. from August 2017 and as chief executive officer from October 2017 until August 2020.

Prior to Monro, Mr. Ponton served as president and chief executive officer of American Driveline Systems, Inc. (the parent company of AAMCO Transmissions Inc., Cottman Transmission Systems, LLC and Global Powertrain Systems, Inc.) from September 2013 until July 2017.

He also served as president and chief executive officer of Heartland Automotive Services, Inc., the largest operator of Jiffy Lube stores in North America, from 2009 until September 2013.

He previously held leadership positions at Veyance Technologies, an engineered products business based in Shanghai, China, and Melbourne, Australia, and Goodyear Tire & Rubber Co.
REASONS FOR NOMINATION
Mr. Ponton’s experience in operations and strategic planning with consumer services companies, along with his board experience, qualify him to serve on our board of directors.
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THE BOARD OF DIRECTORS AND
CORPORATE GOVERNANCE
2021 ANNUAL
PROXY STATEMENT
Stephen J. Sedita
Age: 69
Director Since: 2013
Committees:
Audit
Environmental, Health & Safety (Chair)
EXPERIENCE

Mr. Sedita served as the chief financial officer and vice president of GE Home & Business Solutions, a business of General Electric Company, from 2008 until he retired in 2011.

Mr. Sedita served as chief financial officer and vice president of GE Aviation from 2007 until 2008.

Mr. Sedita was vice president and chief financial officer of GE Industrial Sector, a portfolio of electrical product, systems and plastics businesses from 2005 until 2007.

Prior to GE Industrial Sector, he served as chief financial officer of GE Consumer & Industrial, GE Appliances and GE Plastics.

He served on the board of Controladora Mabe, S.A. de C.V., from 1995 until 2016 and also previously served on the boards of Camco Inc. and Momentive Performance Materials Holdings Inc.
REASONS FOR NOMINATION

Mr. Sedita’s extensive business and financial background and his prior board service experience qualify him to serve on our board of directors.
Continuing Members of the Board of Directors
Class II—Nominees Whose Term Expires in 2019

2022
Laurie Ann Goldman
Age: 58
Director Since: 2015
Committees:
Compensation
Nominating & Corporate Governance (Chair)
Name
AgePrincipal Occupation and Other InformationEXPERIENCE

Laurie Ann Goldman

56

Ms. Goldman has served as one of our directors since December 2015. She was named chief executive officer of New Avon LLC, infrom January 2019 until August 2019. New Avon, LLC is a privately held company and is the leading social selling beauty company in North America, with independent sales representatives throughout the United States, Puerto Rico and Canada.

Ms. Goldman is the founder and chief executive officer of LA Ventures, an investment and advisory firm for growth-oriented, consumer-facing businesses. From 2014 until 2019, she

She was a private investor and advisor. advisor from 2014 until 2018 and since August 2019.

She serves on the boardboards of directors of New Avon LLC, Guess? Inc., a publicly traded contemporary apparel and related consumer products retailer, and Joe & The Juice Holding A/S, a private company with a chain of juice bars and coffee shops in North America, Europe, Asia and Australia. Australia, ClubCorp, a privately held corporation that is the largest owner and operator of private golf and country clubs in the U.S. and 101 Studios, a privately held global entertainment studio and Newlight Technologies, a privately held biotechnology company that produces degradable products designed to replace plastic products.

Ms. Goldman previously served on the boardboards of directors of Francesca'sNew Avon, LLC and Francesca’s Holdings Corporation, a women'swomen’s clothing retailer. From 2002 until 2014,

Ms. Goldman served as chief executive officer of Spanx, Inc., a women'swomen’s undergarment and apparel company. company from 2002 until 2014.
QUALIFICATIONS FOR BOARD MEMBERSHIP
Ms. Goldman brings significant brand management and multi-channel product and marketing experience, and her prior executive management expertise, along with her experience on public and private company boards, qualify her to serve on our board of directors.
8TERMINIX

2021 ANNUAL
PROXY STATEMENT
THE BOARD OF DIRECTORS AND
CORPORATE GOVERNANCE
Steven B. Hochhauser
Age: 59
Director Since: 2018
Committees:
Compensation
Nominating & Corporate Governance

Steven B. Hochhauser

EXPERIENCE

57

Mr. Hochhauser has served as one of our directors since May 2018.

Mr. Hochhauser, served as interim president of our American Home Shield business prior to its spin-off from March until May 2018.

He has been a private investor since 2011.

Since May 2019, he has served as chairman of A&R Logistics, a privately held company, and since 2016, he has served as chairman of Ascensus Specialties LLC, a privatlyprivately held specialty chemicals company, and served as chief executive officer of Ascensus Specialties from 2016 until 2017. From 2012 until 2016 he

He was the lead director of Novolex, a privately held paper and plastic packaging company from 2012 until 2016 and from 2013 until 2015, he was on the board of Argotec LLC, a privately held specialty plastic and films company.

He is the former chairman and chief executive officer of Johns Manville.

Mr. Hochhauser has held various executive positions at Ingersoll Rand, Honeywell and United Technologies.
QUALIFICATIONS FOR BOARD MEMBERSHIP
Mr. Hochhauser'sHochhauser’s knowledge of strategic planning and business operations, along with his leadership experience and prior board experience, qualify him to serve on our board of directors.

Class III—Directors Whose Term Expires in 2023

Deborah H. Caplan

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Age: 58
Director Since: 2019
Committees:
Compensation (Chair)
Environmental, Health & Safety
Name
AgePrincipal Occupation and Other InformationEXPERIENCE

Nikhil M. Varty

54

Mr. Varty
Ms. Caplan has served since April 2013 as ServiceMaster's Chief Executive Officerexecutive vice president, human resources and corporate services for NextEra Energy, Inc., a director since July 2017. From 2012 until 2016, Mr. Vartyleading clean energy company. Her responsibilities include leadership of the company’s corporate pandemic team, human resources, corporate real estate, security and innovation initiatives.

She previously served as presidentchief operating officer of NextEra Energy’s subsidiary, Florida Power & Light Company, one of the Americaslargest electric utilities in the U.S. and globalas NextEra Energy's vice president of mergers & acquisitionsintegrated supply chain covering strategy, procurement and logistics of all materials and services.

Prior to joining NextEra Energy, she worked at WABCO Holdings Inc., a leadingGE as the senior vice president of global supplier of electronic, mechanical, electro-mechanical and aerodynamic productsoperations for the major manufacturers of commercial trucks, buses, trailers and passenger cars. From 2005 through 2012, Mr. VartyGE Capital Vendor Financial Services. She also served as vice president of six sigma, sourcing and e-commerce for a GE Capital business unit leader for WABCO's compression & brakingwith distributed U.S. operations.

Prior to GE Capital, she served in various leadership roles at GE Aircraft Engines in manufacturing and new product development.
QUALIFICATIONS FOR BOARD MEMBERSHIP
Ms. Caplan’s broad experience in business unit in Brussels, Belgium. Mr. Varty's extensive businessoperations, strategy, leadership, customer service, culture and management background and his prior experience leading and managing large, complex organizationstalent development all qualify himher to serve on our board of directors.

Continuing Members of the Board of DirectorsTERMINIX

Class III—Directors Whose Term Expires in 20209



THE BOARD OF DIRECTORS AND
CORPORATE GOVERNANCE
2021 ANNUAL
PROXY STATEMENT
Naren K. Gursahaney
Age: 59
Director Since: 2017
Committees:
Audit
Nominating & Corporate Governance
Name
AgePrincipal Occupation and Other InformationEXPERIENCE

Naren K. Gursahaney

57

Mr. Gursahaney has served as oneour Chairman of the Board
since April 2019.

He served as our directors since December 2017. Interim Chief Executive Officer from January 2020 until September 14, 2020.

He has been a private investor since 2016. From 2012 until 2016, he

He served as president and chief executive officer, and a member of the board of directors, of The ADT Corporation, a leading provider of security and automation solutions for homes and businesses in the United States and Canada. From 2003Canada from 2012 until 2012, he served in various executive positions at Tyco International Ltd. 2016.

He currently serves on the board of directors of NextEra Energy, Inc.

He served in various executive positions at Tyco International Ltd. from 2003 until 2012.
QUALIFICATIONS FOR BOARD MEMBERSHIP
Mr. Gursahaney'sGursahaney’s extensive experience in operations, strategic planning and with large, global residential and commercial services companies, along with his board experience, qualify him to serve on our board of directors.
Mark E. Tomkins
Age: 65
Director Since: 2015
Committees:
Audit (Chair)
Environmental, Health & Safety

Mark E. Tomkins

EXPERIENCE

63

Mr. Tomkins has served as one of our directors since June 2015 andlead independent director from January 2020 until September 14, 2020. He previously served as our non-executive Chairman sincefrom May 2016. 2016 until April 2019.

He has been a private investor since 2006.

He currently serves on the boards of W. R. Grace & Co., a specialty chemical and specialty materials manufacturing and production company, and Trinseo S.A., a manufacturer of plastics, latex binders and synthetic rubber.

He served on the board of Klockner Pentaplast Group, a privately held plastic film and packaging manufacturer. From 2007 until 2014,manufacturer from 2016 to 2019 and he served on the board of Elevance Renewable Sciences Inc., a privately held renewable polymer and energy company and from 2007 to 2012,until 2014 and he served on the board of CVR Energy, Inc., a petroleum refining and nitrogen fertilizer manufacturing company. From 2005 until 2006, company from 2007 to 2012.

Mr. Tomkins served as senior vice president and chief financial officer of Innovene, a petrochemical and oil refining company controlled by BP p.l.c. that is now part of the INEOS Group. Group from 2005 until 2006.

Prior to Innovene, he served as chief financial officer of Vulcan Materials Company and Great Lakes Chemical (now Chemtura)Lanxess), and was vice president of finance and business development for the polymer and electonricelectronic materials divisiondivisions of Allied Signal (now Honeywell) and held several finance positions with Monsanto.

Mr. Tomkins is a certified public accountant.
QUALIFICATIONS FOR BOARD MEMBERSHIP
Mr. Tomkins'Tomkins’ financial, accounting and management expertise, along with his experience on other public and private company boards, qualify him to serve on our board of directors.

10TERMINIX

Table of Contents

Class I—Nominees Whose Term Expires in 2021


2021 ANNUAL
PROXY STATEMENT
THE BOARD OF DIRECTORS AND
CORPORATE GOVERNANCE
Name
Director Independence
AgePrincipal Occupation
Our board of directors has determined, after considering all of the relevant facts and Other Information

John B. Corness

64Mr. Corness has servedcircumstances, that Mses. Caplan and Goldman and Messrs. Frear, Gursahaney, Hochhauser, Tomkins and Sedita are “independent” as onedefined under NYSE listing standards. In making its determination of our directors since July 2016. He has been a private investor and advisor since 2013. From 1999 until 2013, Mr. Corness was employed by Polaris Industries, Inc., a leading manufacturer of recreational and utility vehicles, where he held various positions including vice president of human resources. Previously, he served in various human resources positions at General Electric, Maple Leaf Foods Canada and TransAlta Resources. From 2013 until 2018 he owned Corness Associates, a consulting firm focused on succession planning, leadership development and HR strategy. His strength in identifying and creating strong leadership teams, and his knowledge of executive succession planning and compensation practices and plans for public company executive officers, qualify him to serve ondirector independence, our board of directors.directors considers the NYSE listing standards and all relevant facts and circumstances, including ensuring that the following categories of relationships between a director and our Company are evaluated:
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Stephen J. Sedita


67

Mr. Sedita has served

employment of a director or a director’s immediate family member by, a director’s position as onea director with, or direct or indirect ownership by a director or a director’s immediate family member of a 10 percent or greater equity interest in, another company or organization that made payments to, or received payments from, our Company or any of our directors since December 2013. From 2008 until he retiredsubsidiaries for property or services in 2011, Mr. Sedita servedan amount which, in each of the last three fiscal years, did not exceed the greater of $1 million or two percent of such other company’s consolidated gross revenues; and

a relationship of a director or a director’s immediate family member with a charitable organization, as an executive officer, board member, trustee or otherwise, to which our Company or any of our subsidiaries has made, in any of the chief financial officer and vice presidentlast three fiscal years, charitable contributions of GE Home & Business Solutions, a businessnot more than the greater of General Electric Company. From 2007 until 2008, Mr. Sedita served as chief financial officer and vice president$100,000 or two percent of GE Aviation. From 2005 until 2007, Mr. Sedita was vice president and chief financial officer of GE Industrial Sector, a portfolio of electrical product, systems and plastics businesses. Prior to GE Industrial Sector, he served as chief financial officer of GE Consumer & Industrial, GE Appliances and GE Plastics. From 1995 until 2016, he served on the board of Controladora Mabe, S.A. de C.V., and also served on the boards of Camco Inc. and Momentive Performance Materials Holdings Inc. Mr. Sedita's extensive business and financial background and his prior board service experience qualify him to serve on our board of directors.

such charitable organization’s consolidated gross revenues.

Director Independence

        Our board of directors has determined, after considering all of the relevant facts and circumstances, that Ms. Goldman and Messrs. Corness, Gursahaney, Hochhauser, Tomkins and Sedita are "independent" as defined under New York Stock Exchange ("NYSE") listing standards. In making its determination of director independence, our board of directors considers the NYSE listing standards and all relevant facts and circumstances, including ensuring that the following categories of relationships between a director and our Company are evaluated:

    employment of a director or a director's immediate family member by, a director's position as a director with, or direct or indirect ownership by a director or a director's immediate family member of a 10 percent or greater equity interest in, another company or organization that made payments to, or received payments from, our Company or any of our subsidiaries for property or services in an amount which, in each of the last three fiscal years, did not exceed the greater of $1 million or two percent of such other company's consolidated gross revenues; and

    a relationship of a director or a director's immediate family member with a charitable organization, as an executive officer, board member, trustee or otherwise, to which our Company or any of our subsidiaries has made, in any of the last three fiscal years, charitable contributions of not more than the greater of $100,000 or two percent of such charitable organization's consolidated gross revenues.

Table of Contents

    No director qualifies as "independent"“independent” unless the board of directors affirmatively determines that the director has no material relationship with our Company or our subsidiaries (either directly or as a partner, stockholder or officer of an organization that has a relationship with our Company or any of our subsidiaries). Our board of directors assesses on a regular basis, and at least annually, the independence of directors and, based on the recommendation of the Nominating and Corporate Governance Committee, makes a determination as to which members are independent. To assist the board of directors in making its independence assessment, each year members of our board of directors complete responses to a questionnaire, which requires disclosure of each director'sdirector’s and his or her immediate family'sfamily’s relationships to the Company, as well as any potential conflicts of interest and other matters. From March until May 2018, Mr. Hochhauser served as interim president of AHS prior to its spin-off and received payments totaling $250,000 for such service. The Board determined, after considering all of the relevant facts and circumstances, that Mr. Hochhauser was independent as defined under NYSE listing standards. Other than Mr. Hochhauser's payment for serving as interim president of AHS,In 2020, there were no related-party or conflicts of interest transactions between the Company and any of our independent directors that require disclosure under SECU.S. Securities and Exchange Commission (“SEC”) rules.

    On January 21, 2020, Naren K. Gursahaney, our Chairman of the Board, was appointed as the Company’s interim CEO until September 14, 2020. Prior to his appointment, Mr. Gursahaney was deemed to be an independent director of the board and after he resigned as interim CEO, the board again evaluated his situation and determined that he qualified as an independent director.
    Board Leadership Structure

    Our board of directors is currently led by our non-executive Chairman of the Board, Mr. Tomkins.Gursahaney. As stated in our Corporate Governance Guidelines, the board has no policy with respect to the separation of the offices of Chairman of the Board and CEO. The board believes it is important to retain its flexibility to allocate the responsibilities of the offices of the Chairman and CEO in any way that is in the best interests of the companyCompany at a given point in time. The board believes this governance structure currently promotes a balance between the board'sboard’s independent authority to oversee our business and the CEO and his management team who manage the business on a day-to-day basis. The board expects to periodically review its leadership structure to ensure that it continues to meet our needs.

    In connection with Mr. Gursahaney’s appointment as interim CEO, the board of directors amended the board’s corporate governance guidelines to provide that if the Chairman of the Board is not an independent director, a lead independent director will be elected by and from among the independent directors of the board. The lead independent director is responsible for serving as liaison between the Chairman of the Board and the independent directors and will have authority to call meetings of the independent directors, and if requested by stockholders, ensure that he or she is available for consultation and direct communication with the stockholders. On January 21, 2020, the board of directors appointed Mr. Tomkins to serve as lead independent director, which he did until September 14, 2020.
    Meetings of the Board of Directors and Attendance at the Annual Meeting

    Our board of directors held 1516 meetings during the fiscal year ended December 31, 2018.2020. Each of our incumbent directors attended at least 7594 percent of the total number of meetings of the board, and any committeesin the case of committee meetings 100 percent, of which he or she was a member in 2018.2020. Directors are encouraged to attend our annual meetings. All of the directors serving on the board at the time attended the 20182020 Annual Meeting, except for Ms. Goldman who could not attend due to a conflicting family event.

    Meeting.

    TERMINIX11

    THE BOARD OF DIRECTORS AND
    CORPORATE GOVERNANCE
    2021 ANNUAL
    PROXY STATEMENT
    Executive Sessions

    Executive sessions, which are meetings of the independent directors, are regularly scheduled throughout the year. Since Mr. Tomkins' appointmentWhile serving as non-executive Chairman, in May 2016, he hasMr. Gursahaney presided over the executive sessions. With Mr. Gursahaney’s appointment as interim CEO, Mr. Tomkins, as lead independent director, presided over the executive sessions of the independent directors. The committees of the board, as described more fully below, also meet regularly in executive session.

    Governance Documents
    (All Publicly Available)
    Corporate Governance GuidelinesEnvironment, Health and Safety Committee Charter
    Audit Committee CharterCode of Conduct
    Compensation Committee CharterFinancial Code of Ethics
    Nominating and Corporate Governance Committee CharterCorporate Sustainability Report
    A copy of these governance documents are available, without charge, on our website at www.corporate.terminix.com/responsibility/corporate-governance/index.html.
    Corporate Governance Guidelines

    Our board of directors has adopted Corporate Governance Guidelines to address significant corporate governance issues. A copy of these guidelines is available on our website atwww.servicemaster.com/company/about/corporate-governance. These guidelines provide a framework for our corporate governance initiatives and cover topics including, but not limited to, director qualification and responsibilities, board composition, director compensation and management and succession planning. The Nominating and Corporate Governance Committee is responsible for overseeing and reviewing the guidelines and reporting and recommending to our board of directors any changes to the guidelines.


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    Code of Conduct and Financial Code of Ethics

    We have a Financial Code of Ethics that applies to the CEO, CFO and Controller, or persons performing similar functions, and other designated officers and employees,teammates, including the primary financial officer of each of our business units and the Treasurer. We also have a Code of Conduct that applies to all of our directors, officers and employees.teammates. The Financial Code of Ethics and Code of Conduct each address matters such as conflicts of interest, confidentiality, fair dealing and compliance with laws and regulations. The Financial Code of Ethics and the Code of Conduct is available without charge on our website at
    www.servicemaster.com/company/about/corporate-governance.

    We will promptly disclose any substantive changes in or waiver of, together with reasons for any waiver of, either of these codes granted to our executive officers, including our principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions, and our directors, by posting such information on our website atwww.servicemaster.com/company/about/corporate-governance.www.corporate.terminix.com/responsibility/corporate-governance/index.html.

    Complaints Regarding Accounting, Internal Accounting Controls and Auditing Matters

    In accordance with the Sarbanes-Oxley Act of 2002, our Audit Committee has adopted procedures for the receipt, retention and treatment of complaints regarding accounting controls or auditing matters and to allow for the confidential, anonymous submission by teammates and others of concerns regarding questionable accounting or auditing matters.
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    Environmental, Social, Safety and Teammate Matters
    Our customers have come to trust us during some of the most important moments of their lives, protecting them from the effects of pests and termites, so they can live hassle-free lives. Our frontline serves our customers with passion because they care deeply about the work they do and the relationships they have built.
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    We aspire to deliver an unparalleled customer experience. We believe through outstanding service, we have the power to impact and improve lives and drive growth in our businesses. This core belief is at the heart of how we are shaping our future, working with teammates and franchise associates, and re-imagining our customer journeys to deliver memorable experiences to our customers at every touch point.
    Listening to our teammates in the field and instilling their learnings in our processes and systems allows us to remove obstacles from their paths, enabling them to deliver an unmatched customer experience. Enhancing benefits, optimizing work hours, improving pay-for-performance structures and creating career paths tailored to deserving teammates’ aspirations demonstrates our deep care for them in their quest to deliver outstanding service. We are creating a workplace that respects creativity, initiative, diversity of thought and cultural inclusion by recognizing talent and perseverance at every level. We have increased our community outreach because service and care are at the heart of our business. Credibility is extremely important. We have significantly improved our ability to deliver on our commitments to our customers, teammates, partners, stockholders and other stakeholders.
    Human Capital Management
    Terminix employs approximately 10,000 teammates in the United States and 1,400 teammates outside the United States in Europe, Canada and Central America. As a leader in the pest management industry, we recognize that our teammates are our most important asset in the delivery of the services we provide to customers. Since we deliver services in various communities around the world, it is important that our teammate base reflect the values and customers of those communities we serve. In this regard, we are committed to fostering a safe, inclusive, and equitable workplace that attracts and retains exceptional talent, enabling us to better serve to our customers.
    Five key areas in which we focus our efforts include:
    Teammate Safety
    Diversity, Equity and Inclusion
    Training and Development
    Teammate Retention
    Competitive Compensation and Benefits
    Teammate Safety
    At Terminix, safety is a core value. We maintain strong safety programs focused on continuously improving the safety and wellbeing of our communities, teammates and customers we serve. We maintain a safety culture grounded in striving for zero teammate injuries and illnesses, while operating and delivering our services responsibly and eliminating workplace incidents, risks and hazards. We review and monitor our performance regularly with a goal to continually reduce Occupational Safety and Health Administration recordable incidents. During 2020, our recordable incident rate declined seven percent compared to fiscal 2019.
    During 2020, our focus on workplace safety enabled us to preserve business continuity without sacrificing our commitment to keep our teammates, workplace visitors and customers safe during the global novel COVID-19 pandemic.
    Terminix was designated an essential business early in the COVID-19 pandemic. Since the onset of the pandemic, we have taken an integrated approach to helping our teammates manage their work and personal responsibilities, with the Sarbanes-Oxley Act,priority on teammate wellbeing, health and safety. Terminix has worked with suppliers to ensure our Audit Committee has adopted proceduresteammates have the appropriate personal protection equipment to allow them to continue to serve our customers in a safe manner, protecting both the customer and the teammate. The Company developed COVID-19 protocols relating to most aspects of the business, including customer service visits, working at Terminix buildings and individual health. Many departments have worked remotely and have not been required to come to the central offices, so as to minimize exposure to the virus.
    Diversity, Equity and Inclusion
    At Terminix, we believe inclusion inspires results. Perspectives from a diverse workforce can provide key insights into selling into varied and different communities, providing numerous avenues for the receipt,growth of the business and improved customer satisfaction.
    The Company has created a Diversity, Equity and Inclusion Council (the “Council”) with a mission to foster actions that create an inclusive work environment valuing the contributions and perspectives of all team members. The goal of the Council is to advance a workforce that builds and advocates for gender, race, age, language, cultural background, education, work experience, ethnicity, sexual orientation and physical ability, as well as the religious and cultural views of members of Terminix. The Council is comprised
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    of Terminix teammates chosen to help engage in ongoing evaluation of Terminix’s internal business practices and advise the Terminix executive team on driving a culture of diversity, equity and inclusion.
    The Council is committed to promoting and advancing this important work through five distinct subcommittees that drive diversity, equity and inclusion goals across core business streams:

    Corporate Responsibility

    Culture

    Inclusion

    Supplier Diversity

    Talent and Equity
    As of December 31, 2020, Terminix employed a workforce in the Unites States that was 62% white and 38% minority representation. Also, the workforce was 82% male and 16% female, with 2% undeclared. Terminix is committed to improving the levels of both race and gender representation to better reflect the communities in which we operate.
    We have long-established, teammate-driven Business Resource Groups (“BRGs”), which provide opportunities for education, community partnerships, cultural awareness and career development. BRGs that have been established and are active include:

    African American BRG

    Asian Pacific Islander BRG

    Latino BRG

    Limitless BRG

    Pride Alliance BRG

    Sustainability BRG

    Veterans BRG

    Women’s BRG

    Young Professionals BRG
    Training and Development
    We have made investments to our human resources organization and structure that centralized and standardized hiring and training practices. We have also introduced tools to help our branch managers manage labor more efficiently, and we continue to invest in attracting, developing and retaining talent. Our front-line teammates also receive on-the-job training to ensure we are executing for our customers. Our online training platforms provide our teammates with access to a multitude of training courses, videos, reference material and other tools. Recent enhancements to our training and development program include:

    Prioritized development for all teammates by investing in LinkedIn learning where our teammates can continue to drive their growth by leveraging any of the 5,000 courses from anywhere, including mobile devices.

    Migrated our training and learning to virtual administration to meet the needs of continuing to onboard and develop talent in the midst of the COVID-19 pandemic.

    Invested in a new 90-day manager training program that incorporates critical technical and leadership skills.
    As part of encouraging internal development, we engage in regular discussions around succession planning and talent development at all levels of our Company. Our board of directors has frequent contact with business leaders within the organization and participates actively in the succession planning process. Our Senior Vice President of Human Resources reports directly to the CEO and works with management to evaluate internal talent for future leadership positions within the organization on an ongoing basis. In evaluating potential acquisitions, an important consideration is the quality of the management team of the target company and our ability to ensure such management team will remain with the Company as needed if we acquire the business.
    Teammate Retention
    Our experience has demonstrated that the retention of well-trained, high-performing teammates results in higher customer retention and treatmentimproved financial results. Terminix has made significant investments in the hiring and training of complaints regarding accounting controls or auditing mattersteammates, especially those who are the Company’s face to the customer. Turnover rates for pest technicians tend to be higher in the first year of employment with a reduced rate beyond the first year. Consequently, Terminix has made investments in the recruiting, onboarding and training of new teammates to enhance their ability to deliver quality service to our customers and to allowkeep them engaged in the Terminix business. As a result, the Company made significant progress during 2020 toward the improvement of teammate retention. The Company is also implementing the Terminix Way that includes the development of enhanced Standard Operating Procedures, training paths, and technology for frontline teammates that will improve consistency from branch-to-branch and teammate-to-teammate, and provide well-defined career paths for our teammates.
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    Competitive Compensation and Benefits
    Terminix is committed to investing in our workforce by providing competitive compensation and benefit programs.

    Compensation programs include base salary and variable compensation programs such as annual bonus, production plans, sales commissions, spot bonus and stock awards. The variable compensation programs are performance based, with the confidential, anonymous submission by employeesactual amount earned depending on the performance of the Company and othersthe teammate.

    Comprehensive health and dental coverage is offered to teammates.

    A 401(k) savings plan with a Company match is offered that allows teammates to save for their future.

    Parental leaves are provided to all new parents of concerns regarding questionable accounting or auditing matters.

    both genders for births and adoptions.


    Other insurance benefits are also offered, including Company-paid and supplemental teammate-paid life insurance, long-term disability and accidental death and disability coverage.

    An Employee Stock Purchase Plan, where teammates can purchase stock in the Company to participate in the success of the Company, is also offered to teammates.
    We have a Corporate Sustainability Report that discusses the values, goals and objectives we strive for each day and the impact we are making for our customers and stakeholders that is available on our corporate website.
    Board Committees

    Our board of directors maintains an Audit Committee, a Compensation Committee, an Environmental, Health and Safety Committee and a Nominating and Corporate Governance Committee. EachIn January 2020, each of these committees iswas comprised entirely of independent directors until January 21, 2020. On January 21, 2020, in connection with Mr. Gursahaney’s appointment as interim CEO, the board of directors reconstituted the committees and realigned the membership of the committees to reflect appropriate representation among the other directors. After September 15, 2020, when Mr. Ponton was hired as our CEO, Mr. Gursahaney was again deemed to be an independent director and the board of directors reconstituted the committees to add Mr. Gursahaney to the Audit and Nominating and Corporate Governance Committees. Below is a brief description of our committees. The following table shows the committee members as of December 31, 2018,2020, and the number of meetings held during 2018.

    2020.
    DirectorAuditCompensation
    Nominating &
    Corporate
    Governance
    Environmental,
    Health & Safety
    Deborah H. CaplanCM
    Laurie Ann GoldmanMC
    Naren K. GursahaneyMM
    Steven B. HochhauserMM
    Stephen J. SeditaMC
    Mark E. TomkinsCM
    Number of Meetings in 202011844
    Director
     Audit Compensation Nominating &
    Corporate
    Governance
     Environmental,
    Health &
    Safety

    John B. Corness

     X   X* X   X  

    Laurie Ann Goldman

     X   X   X   X  

    Naren K. Gursahaney

     X   X   X* X  

    Steven B. Hochhauser

     X   X   X   X  

    Stephen J. Sedita

     X   X   X   X*

    Mark E. Tomkins

     X* X   X   X  

    Nikhil M. Varty(1)

            

    Number of Meetings in 2018

     9   6   3   4  

    X=
    Committee Member asAs of December 31, 2018; * = Chair2020
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    On January 18, 2021, in connection with Mr. Varty attends each of the committee meetings as invited, but he is not a member of the committees.

    Audit Committee

            Our Audit Committee is responsible, among its other duties and responsibilities, for overseeing our accounting and financial reporting processes, the audits of our financial statements, the qualifications and independence of our independent registered public accounting firm, the effectiveness of our internal control over financial reporting and the performance of our internal audit function and


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    independent registered public accounting firm. Our Audit Committee reviews and assesses the qualitative aspects of our financial reporting, our processes to manage business and financial risks, and our compliance with significant applicable legal, ethical and regulatory requirements. Our Audit Committee is directly responsible for theFrear’s appointment, compensation, retention and oversight of our independent registered public accounting firm. The charter of our Audit Committee is available without charge on our website atwww.servicemaster.com/company/about/corporate-governance.

            The current members of our Audit Committee are Messrs. Tomkins (Chair), Corness, Gursahaney, Hochhauser and Sedita and Ms. Goldman. Our board of directors has designated each of Messrs. Tomkins, Gursahaney and Sedita as "audit committee financial experts," and each member of the Audit Committee has been determined to be "financially literate" under the NYSE rules. Our board of directors has also determined that each member of the Audit Committee is "independent" as defined under NYSE and Exchange Act rules and regulations.

    Compensation Committee

            Our Compensation Committee is responsible, among its other duties and responsibilities, for reviewing and approving all forms of compensation to be provided to, and employment agreements with, the executive officers and directors of our company and its subsidiaries (including the CEO), establishing the general compensation policies of our company and its subsidiaries and reviewing, approving and overseeing the administration of the employee benefits plans of our company and its subsidiaries. Our Compensation Committee also periodically reviews management development and succession plans. The charter of our Compensation Committee is available without charge on our website atwww.servicemaster.com/company/about/corporate-governance.

            The current members of our Compensation Committee are Messrs. Corness (Chair), Gursahaney, Hochhauser, Sedita and Tomkins and Ms. Goldman. Our board of directors determined that each member of the Compensation Committee is "independent" as defined under NYSE listing standards. The Compensation Committee has the authority to retain compensation consultants, outside counsel and other advisers. During 2018, the committee engaged Semler Brossy Consulting Group, LLC ("Semler Brossy") to advise it on executive compensation program-design matters and to prepare market studies of the competitiveness of components of the company's compensation program for its senior executive officers, including the named executive officers and non-employee directors. The Compensation Committee performed an assessment of Semler Brossy's independence to determine whether the consultant is independent, taking into account Semler Brossy's executive compensation consulting protocols to ensure consultant independence and other relevant factors. Based on that assessment, the Compensation Committee determined that the firm's work has not raised any conflict of interest and the firm is independent.

    Nominating and Corporate Governance Committee

            Our Nominating and Corporate Governance Committee is responsible, among its other duties and responsibilities, for identifying and recommending candidates to the board of directors for election to our board of directors, reviewingreconstituted the compositionmembership of the boardcommittees as set forth below.

    DirectorAuditCompensation
    Nominating &
    Corporate
    Governance
    Environmental,
    Health & Safety
    Deborah H. CaplanCM
    David J. FrearMM
    Laurie Ann GoldmanMC
    Naren K. GursahaneyMM
    Steven B. HochhauserMM
    Stephen J. SeditaMC
    Mark E. TomkinsCM
    As of directors and its committees, developing and recommending to the board of directors corporate governance guidelines that are applicable to us and overseeing board of directors evaluations. The charter of our Nominating and Corporate Governance Committee is available without charge on our website at January 18, 2021
    AUDIT COMMITTEE
    Meetings: 11
    Chair: Mark E. Tomkins
    Other Members:
    David J. Frear
    Naren K. Gursahaney
    Stephen J. Sedita
    KEY RESPONSIBILITIES

    Our Audit Committee is responsible, among its other duties and responsibilities, for overseeing our accounting and financial reporting processes, the audits of our financial statements, the qualifications and independence of our independent registered public accounting firm, the effectiveness of our internal control over financial reporting and the performance of both our internal audit function and independent registered public accounting firm.

    Our Audit Committee reviews and assesses the qualitative aspects of our financial reporting, our processes to manage business and financial risks and our compliance with significant applicable legal, ethical and regulatory requirements.

    Our Audit Committee is directly responsible for the appointment, compensation, retention and oversight of our independent registered public accounting firm.
    Our board of directors has designated each member of the Audit Committee as “audit committee financial experts,” and each member of the Audit Committee has been determined to be “financially literate” under the NYSE listing standards. Our board of directors has also determined that each member of the Audit Committee is “independent” as defined under NYSE listing standards and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), rules and regulations.
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            The current members of our Nominating and Corporate Governance Committee are Messrs. Gursahaney (Chair), Corness, Hochhauser, Sedita and Tomkins and Ms. Goldman. Our board of directors determined that each member of the Nominating and Corporate Governance Committee is "independent" as defined under NYSE listing standards.



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    COMPENSATION COMMITTEE
    Meetings: 8
    Chair: Deborah H. Caplan
    Other Members:
    Laurie Ann Goldman
    Steven B. Hochhauser
    KEY RESPONSIBILITIES

    Our Compensation Committee is responsible, among its other duties and responsibilities, for reviewing and approving all forms of compensation to be provided to, and employment agreements with, the executive officers of our Company and its subsidiaries (including the CEO), establishing the general compensation policies of our company and its subsidiaries and reviewing, approving and overseeing the administration of the employee benefits plans of our company and its subsidiaries.

    Our Compensation Committee also periodically reviews management development and succession plans.

    Our Compensation Committee has the authority to retain compensation consultants, outside counsel and other advisers. During 2020, the committee engaged Pearl Meyer & Partners, LLC (“Pearl Meyer”) to advise it on executive compensation program-design matters and to prepare market studies of the competitiveness of components of the Company’s compensation program for its senior executive officers, including the named executive officers and non-employee directors. The Compensation Committee performed an assessment of Pearl Meyer’s independence to determine whether the consultant is independent, taking into account Pearl Meyer’s executive compensation consulting protocols to ensure consultant independence and other relevant factors. Based on that assessment, the Compensation Committee determined that the firm’s work has not raised any conflict of interest and the firm is independent.
    Our board of directors determined that each member of the Compensation Committee is “independent” as defined under NYSE listing standards.
    NOMINATING AND CORPORATE GOVERNANCE COMMITTEE
    Meetings: 4
    Chair: Laurie Ann Goldman
    Other Members:
    Naren K. Gursahaney
    Steven B. Hochhauser
    KEY RESPONSIBILITIES

    Our Nominating and Corporate Governance Committee is responsible, among its other duties and responsibilities, for identifying and recommending candidates to the board of directors for election to our board of directors, reviewing the composition of the board of directors and its committees, reviewing and approval of director compensation and developing and recommending to the board of directors corporate governance guidelines that are applicable to us and overseeing board of directors evaluations.
    Our board of directors determined that each member of the Nominating and Corporate Governance Committee is “independent” as defined under NYSE listing standards.
    ENVIRONMENTAL, HEALTH AND SAFETY COMMITTEE
    Meetings: 4
    Chair: Stephen J. Sedita
    Other Members:
    Deborah H. Caplan
    David J. Frear
    Mark E. Tomkins
    KEY RESPONSIBILITIES

    Our Environmental, Health and Safety Committee is responsible, among its other duties and responsibilities, for reviewing the status of the Company’s policies and practices concerning environmental, health and safety matters, including processes to manage environmental, health and safety risk and ensure compliance with applicable laws and regulations; reviewing and monitoring the Company’s environmental, health and safety risk assessments, performance, strategies, training and resources; and providing input to the Company on the management of current and emerging environmental, health and safety regulations and issues.

    Our business is subject to various regulations, including those relating to consumer protection, permitting and licensing, workers’ safety, the application and use of pesticides and other chemicals and other environmental matters that could be impacted by climate change and other factors, all of which this Committee oversees and monitors.
    Our board of directors determined that each member of the Environmental, Health and Safety Committee is “independent” as defined under NYSE listing standards.
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    Environmental, Health and Safety Committee

            Our Environmental, Health and Safety Committee is responsible, among its other duties and responsibilities, for reviewing the status of the Company's policies and practices concerning environmental, health and safety matters, including processes to manage environmental, health and safety risk and ensure compliance with applicable laws and regulations; reviewing and monitoring the Company's environmental, health and safety risk assessments, performance, strategies, training and resources; and providing input to the Company on the management of current and emerging environmental, health and safety regulations and issues. The charter of our Environmental, Health and Safety Committee is available without charge on our website at www.servicemaster.com/company/about/corporate-governance.

            The current members of our Environmental, Health and Safety Committee are Messrs. Sedita (Chair), Corness, Gursahaney, Hochhauser and Tomkins and Ms. Goldman. Our board of directors determined that each member of the Environmental, Health and Safety Committee is "independent" as defined under NYSE listing standards.

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    Compensation Committee Interlocks and Insider Participation

    During January 2020, all independent directors of the Company served on the Compensation Committee. Upon Mr. Gursahaney’s appointment as interim CEO, the board reconstituted the Compensation Committee and Messrs. Corness Cella, Cobb, Gursahaney,and Hochhauser Sedita and Tomkins and Ms. Goldman served on the Compensation Committee in 2018.until December 7, 2020. On December 7, 2020, Mr. Corness announced his retirement from the board and Ms. Caplan was appointed as the chair of the Compensation Committee. During 2018, Mr. Hochhauser2020, only Messrs. Gursahaney and Ponton served as interim presidentan officer of AHS prior to its spin-off from March until May 2018. He was appointed toTerminix. Ms. Caplan is an executive officer at NextEra Energy and Mr. Gursahaney serves on the board of directorsNextEra Energy, but does not serve on NextEra Energy’s compensation committee. While Mr. Gursahaney served as our interim CEO in May 2018 and as a member of the2020, Ms. Caplan was not on our Compensation Committee in October 2018. No other member of the Compensation Committee was atand she recused herself from any time an officer or employee of ServiceMaster or any of our subsidiaries nor was any such person a former officer of ServiceMaster or any one of our subsidiaries.board discussions and votes on Mr. Gursahaney’s interim CEO compensation. For 2018,2020, there were no related-party or conflicts of interest transactions between the Company and any of our Compensation Committee members that require disclosure under SEC rules.

    Selection of Nominees for Election to the Board

    Our Corporate Governance Guidelines provide that the Nominating and Corporate Governance Committee will identify and select, or recommend that the board select, board candidates who the Nominating and Corporate Governance Committee believes are qualified and suitable to become members of the board consistent with the criteria for selection of new directors adopted from time to time by the board. The Nominating and Corporate Governance Committee considers the board'sboard’s current composition, including expertise, diversity and balance of inside, outside and independent directors, and considers the general qualifications of the potential nominees, such as: integrity and honesty; the ability to exercise sound, mature and independent business judgment in the best interests of the stockholders as a whole; a background and experience with healthcare,recurring revenue, multi-unit distributed services, operations, finance or marketing or other fields which will complement the talents of the other board members; factors that promote diversity of views and experience such as gender, race, national origin, age and sexual orientation; willingness and capability to take the time to actively participate in board and committee meetings and related activities; ability to work professionally and effectively with other board members and the Company'sCompany’s management; availability to remain on the board long enough to make an effective contribution; satisfaction of applicable independence standards; and absence of material relationships with competitors or other third parties that could present realistic possibilities of conflict of interest or legal issues.

    In identifying candidates for election to the board of directors, the Nominating and Corporate Governance Committee considers nominees recommended by directors, stockholders and other sources. The Nominating and Corporate Governance Committee reviews each candidate'scandidate’s qualifications, including whether a candidate possesses any of the specific qualities and skills desirable in certain members of the board of directors. Evaluations of candidates generally involve a review of background


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    materials, internal discussions and interviews with selected candidates as appropriate. Upon selection of a qualified candidate, the Nominating and Corporate Governance Committee would recommend the candidate for consideration by the full board of directors. The Nominating and Corporate Governance Committee may engage consultants or third-party search firms to assist in identifying and evaluating potential nominees.

    The Nominating and Corporate Governance Committee will consider director candidates proposed by stockholders on the same basis as recommendations from other sources. Any stockholder who wishes to recommend a prospective candidate for the board of directors for consideration by the Nominating and Corporate Governance Committee may do so by submitting the name and qualifications of the prospective candidate in writing to the following address: ServiceMasterTerminix Global Holdings, Inc., c/o Secretary, 150 Peabody Place, Memphis, TN 38103. Any such submission should also describe the experience, qualifications, attributes and skills that make the prospective candidate a suitable nominee for the board of directors. Our amended and restated by-laws set forth the requirements for direct nomination by a stockholder of persons for election to the board of directors.

    Stockholder Engagement

    We expect all of our directors to attend our annual meetings of stockholders and be available to answer questions from stockholders at the meetings. Between meetings, we expect our CEO and our Senior Vice President and Chief Financial Officer,CFO to engage with stockholders on a regular basis at industry and financial conferences, road shows and one-on-one meetings. Mr. Tomkins,Gursahaney, our non-executive Chairman, is also available to meet with stockholders on matters that they believe are better addressed by an independent director.

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    Communications with the Board

            Any stockholder or interested party who wishes to communicate with our board of directors as a whole, the independent directors, our Chairman or any individual member of the board or any committee of the board may write to or email the Company at: ServiceMaster Global Holdings, Inc., c/o Assistant Secretary, 150 Peabody Place, Memphis, TN 38103 or Board_of_Directors@servicemaster.com.

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    Any stockholder or interested party who wishes to communicate with our board of directors as a whole, the independent directors, our Chairman or any individual member of the board or any committee of the board may write to or email the Company at: Terminix Global Holdings, Inc., c/o Assistant Secretary, 150 Peabody Place, Memphis, TN 38103 or Board_of_Directors@terminix.com.
    The board has designated the Company'sCompany’s Assistant Secretary as its agent to receive and review written communications addressed to the board, any of its committees, or any board member or group of members. The Assistant Secretary may communicate with the sender for any clarification. In addition, the Assistant Secretary will promptly forward to the chair of the Audit Committee and the Company'sCompany’s General Counsel any communication alleging legal, ethical or compliance issues by management or any other matter deemed by the Assistant Secretary to be potentially material to the Company. As an initial matter, the Assistant Secretary will determine whether the communication is a proper communication for the board. The Assistant Secretary will not forward to the board, any committee or any director communications of a personal nature or not related to the duties and responsibilities of the board including, without limitation, junk mail and mass mailings, business solicitations, routine customer service complaints, new product or service suggestions, opinion survey polls or any other communications deemed by the Assistant Secretary to be immaterial to the Company.

    Separately, the Audit Committee has established a whistleblower policy for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by employeesteammates of the Company of concerns regarding questionable accounting or auditing matters.


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    Risk Oversight

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    BOARD OF DIRECTORS
    Our board of directors as a whole has responsibility for overseeing our risk management. The board of directors exercises this oversight responsibility directly and through its committees. The oversight responsibility of the board of directors and its committees is informed by reports from our management team and from our internal audit department that are designed to provide visibility to the board of directors about the identification and assessment of key risks and our risk mitigation strategies.
    The full board of directors has primary responsibility for evaluating strategic and operational risk management and succession planning.
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    Audit Committee
    This Committee has the responsibility for overseeing our major financial and accounting risk exposures and the steps our management has taken to monitor and control these exposures, including policies and procedures for assessing and managing risk, oversight on compliance related to legal and regulatory exposure and meeting regularly with our chief legal and compliance officers.
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    Compensation
    Committee
    This Committee evaluates risks arising from our compensation policies and practices, as more fully described below.
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    Nominating and
    Corporate Governance
    This Committee ensures compliance with our governance guidelines and addresses significant issues raised by stockholders.
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    Environmental, Health
    and Safety Committee
    This Committee has responsibility for overseeing Company’s policies and practices concerning environmental, health and safety matters, including processes to manage environmental, health and safety risk and ensure compliance with applicable laws and regulations. These committees provide reports to the full board of directors regarding these and other matters.
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    Management
    The oversight responsibility of the board of directors and its committees is informed by reports from our management team and from our internal audit department that are designed to provide visibility to the board of directors about the identification and assessment of key risks and our risk mitigation strategies.
    TERMINIX

            Our board of directors as a whole has responsibility for overseeing our risk management. The board of directors exercises this oversight responsibility directly and through its committees. The oversight responsibility of the board of directors and its committees is informed by reports from our management team and from our internal audit department that are designed to provide visibility to the board of directors about the identification and assessment of key risks and our risk mitigation strategies. The full board of directors has primary responsibility for evaluating strategic and operational risk management and succession planning. Our Audit Committee has the responsibility for overseeing our major financial and accounting risk exposures and the steps our management has taken to monitor and control these exposures, including policies and procedures for assessing and managing risk, including oversight on compliance related to legal and regulatory exposure, and meets regularly with our chief legal and compliance officers. Our Compensation Committee evaluates risks arising from our compensation policies and practices, as more fully described below. The Audit Committee and Compensation Committee provide reports to the full board of directors regarding these and other matters.

    19


    THE BOARD OF DIRECTORS AND
    CORPORATE GOVERNANCE
    2021 ANNUAL
    PROXY STATEMENT
    Director Compensation

    2018

    2020 Cash and Equity Retainers

    Members of the board of directors who are not employed by us are entitled to receive an annual retainer of $200,000, of which $80,000 is payable in cash and the other $120,000 payable in stock. Effective as of March 22, 2018, theThe equity awards will consist of a grant of shares of common stock on the date of the Annual Meeting or the date of the director'sdirector’s appointment to the board of directors, if thereafter. Each director may elect to defer the receipt of the shares of common stock as Deferred Stock Equivalents ("DSEs"(“DSEs”) to a point in the future, including the time at which the individual is no longer a member of the board, subject to the terms of the Amended and Restated ServiceMasterTerminix Global Holdings, Inc. 2014 Omnibus Incentive Plan (the "Omnibus“Omnibus Incentive Plan"Plan”). In addition to the amounts described above, the non-executive Chairman will receive an additional annual cash retainer of $50,000 and an extra $100,000 award of stock. The chairpersons of the Audit Committee and the Compensation Committee will each receive an additional annual cash retainer of $20,000, and the chairpersons of the Nominating and Corporate Governance Committee and the Environmental, Health and Safety Committee will each receive an additional annual cash retainer of $10,000.$10,000; however, if our Chairman serves as a chairperson of a committee, the Chairman will not be entitled to the additional cash retainer for the committee chair role. All of our directors were reimbursed for reasonable expenses incurred in connection with attending board of directors meetings and committee meetings.

    While serving as interim CEO, Mr. Gursahaney did not receive any of the director compensation noted above. (Details of Mr. Gursahaney’s compensation while serving as interim CEO are set forth below under “Executive Compensation.”) With Mr. Tomkins’ appointment as lead independent director, he received an additional annual cash retainer of $50,000, but did not receive the additional fees for serving as chair of the Audit Committee. The board unanimously elected to reduce each of their annual cash retainer by 25 percent in the second half of 2020 to address business challenges arising from the COVID-19 pandemic. In recognition of Mr. Corness’ retirement from the board of directors, the Company made a charitable contribution of $10,000 to a charity of his designation in his name.
    As part of its annual review of director compensation, the CompensationNominating and Corporate Governance Committee asked our independent compensation consultant to review our pay practices relative to peers. We found that pay levels for our directors and non-executive Chairman are in-line with peer medians and we continue to believe that our compensation structure properly rewards our non-employee directors.


    Table of Contents

    20182020 Director Compensation Table

    This table shows the compensation that each non-employee director received for his or her board and committee chair service in 2018. Amounts reflect partial year board service for Messrs. Cella, Cobb, Fox and Hochhauser and Ms. DeVard.

    2020.
    Name of Director
    Fees Earned or
    Paid in Cash(1)
    Stock
    Awards(2)
    Total
    Deborah H. Caplan$70,000$120,000$190,000
    John B. Corness$90,000$120,000$210,000
    Laurie Ann Goldman$79,167$120,000$199,167
    Naren K. Gursahaney$60,000$60,000
    Steven B. Hochhauser$70,000$120,000$190,000
    Stephen J. Sedita$80,000$120,000$200,000
    Mark E. Tomkins$113,334$120,000$233,334
    Name of Director(1)
    Fees Earned or
    Paid in Cash(2)
    Stock
    Awards(3)
    All Other
    Compensation(4)
    Total

    Peter L. Cella

    $60,000$120,000 $180,000

    William C. Cobb

    $38,242$125,291 $163,533

    John B. Corness

    $100,000$120,000$25,000(5)$245,000

    Jerri L. DeVard(1)

    $20,000  $20,000

    Richard P. Fox

    $75,000$120,000 $195,000

    Naren K. Gursahaney

    $82,500$120,000$1,112$203,612

    Laurie Ann Goldman

    $80,000$120,000 $200,000

    Steven B. Hochhauser

    $46,594$107,537$250,934(6)$405,065

    Mark E. Tomkins

    $142,500(2)$220,000(3)$844$363,344

    Stephen J. Sedita

    $90,000$120,000 $210,000

    (1)
    (1)
    Fees paid to Messrs. Cella, Cobb and Fox is for service on the board through September 30, 2018; they were appointed to the frontdoor, inc. board on October 1, 2018 upon the spin-off of AHS. Annual cash fees for these former directors reflect payments for their service through September 30, 2018. Ms. DeVard resigned from the board on January 9, 2018 and received a quarterly payment for the cash board retainer.

    (2)
    Total of cash fees paid for annual board retainer and committee chair retainer. Proratedretainer, prorated from the time of their appointment to the board or as committee chair. The annual cash retainer for board fees for 2018 is2020 was $80,000, with the non-executive Chairman receiving $130,000. With Mr. Tomkins receiving $130,000Tomkins’ appointment as Chairmanlead independent director, he received an additional annual cash retainer of $50,000, but did not receive the additional fees for serving as chair of the board.Audit Committee. The board unanimously elected to reduce their annual cash retainer by 25 percent in the second half of 2020 to reflect issues with the COVID-19 pandemic.
    (2)

    (3)
    The amounts in this column reflect the grant date value of the award of common stock (rounded up to one full share if necessary) for annual board retainer. Mr. Cobb received a prorated stock award from the time of his appointment to the board in April 2018, then received then received the annual retainer grant at the annual meeting of stockholders later in April. Mr. Hochhauser received an award prorated from his appointment to the board in June 2018 through the remainder of the board year. Messrs. Cella, Cobb, Corness, Gursahaney, Hochhauser and Sedita elected to defer the receipt of the shares until a date in the future. These awards are now denominated as DSEs. DSEs for Messrs. Cella and Cobb were converted to DSEs of Frontdoor upon their move to the Frontdoor board of directors. The stock awards were based on the grant date fair value of $34.04 per share for the prorated award for Mr. Cobb in April 2018 (now 155 Frontdoor shares delivered as DSEs); $34.52 per share for Messrs. Cella and Cobb (now 3,518 Frontdoor shares deferred as DSEs): $34.52$29.13 per share for Messrs. Corness, GursahaneyHochhauser and Sedita (3,476(4,120 shares deferred as DSEs); $34.52and $29.13 per share for Ms.Mses. Caplan and Goldman and Mr. Fox (2,354Tomkins (4,120 shares); $34.52 per share for. As noted below, Mr. Tomkins (4,316 shares);Gursahaney did not receive a director stock award since he was serving as interim CEO, and $38.69 per share for the prorated grant for Mr. Hochhauserreceived restricted stock units (“RSUs”) and stock option awards in June 2018 (2,779 shares deferredthat capacity as DSEs). The number of DSEs were adjusted to reflect the dividend paid as the spin-off of AHS. All shares delivered to directors received a dividend of one share of frontdoor, inc. stock for each two shares of ServiceMaster stock held. DSEs were adjusted into the stock of the company on whose board the director sits with the intent to provide value equal to the value immediately prior to the spin-off.

    (4)
    The numbersdescribed in this column, unless otherwise noted, reflect imputed income (and tax gross-up) for spousal travel to a Company-sponsored function.

    (5)
    Mr. Corness received an additional $25,000 payment for his efforts in the search and hire of the CEO of American Home Shield, in preparation for the spin-off of AHS.
    “Executive Compensation” below.
    20TERMINIX

    (6)
    Mr. Hochhauser received compensation from the Company ($250,000) through a consulting agreement prior to his appointment to the board. He served as the interim President of AHS following the resignation of the prior President and the hire of the new President and CEO. His number also includes $934 for spousal travel, including tax gross-up, to a Company sponsored function.
    2021 ANNUAL
    PROXY STATEMENT
    THE BOARD OF DIRECTORS AND
    CORPORATE GOVERNANCE

    Stock Ownership Guidelines for Directors

    The board of directors has adopted stock ownership guidelines for members of the board of directors and for executive officers of the Company. The board believes that setting these ownership guidelines will enhance directors'directors’ and executive officers'officers’ alignment with other stockholders. The Nominating and Corporate Governance Committee reviews the director ownership levels and the Compensation Committee reviews director andthe executive officer stock ownership levels on an annual basis. The guidelines for executive officers are discussed below in the Compensation Discussion and Analysis.

    Members of the board of directors are expected to hold stock valued at five times the annual cash retainer. The annual cash retainer is $80,000, resulting in a current expectation to hold stock valued at $400,000. Directors will have a period of five years from February 2015 or their appointment to the board whichever is later, to meet the ownership guidelines. Until a director meets his or her stock ownership guideline level, he or she cannot sell more than 50 percent of the shares such director owns. All directors subject to the stock ownership guidelineshave either met, or are on track to meet, their stock ownership level within the applicable five-year period.

    Certain Securities Transactions

    Short Selling

            Our board of directors has adopted a policy that prohibits our directors, executive officers and all other employees from short sales and transactions in puts and calls of the Company's securities. Short sales of securities of the Company evidence an expectation on the part of the seller that such securities will decline in value and signal to the market an absence of confidence in the short-term prospects of the Company. Short sales may also reduce the seller's incentive to improve the performance of the Company.

    [MISSING IMAGE: tm212361d1-icon_securitpn.jpg]
    Our board of directors has adopted a policy that prohibits our directors, executive officers and all other teammates from short sales and transactions in puts and calls of the Company’s securities. Short sales of securities of the Company evidence an expectation on the part of the seller that such securities will decline in value and signal to the market an absence of confidence in the short-term prospects of the Company. Short sales may also reduce the seller’s incentive to improve the performance of the Company.
    Pledges and Hedges

            In addition, the adopted policy prohibits any of our directors, executive officers and all other employees from engaging in hedging transactions in the Company's securities. Certain forms of hedging or monetization transactions (such as zero-cost collars and forward sale contracts) allow a person to lock in much of the value of his or her stock holdings, often in exchange for all or part of the potential appreciation in the stock. These transactions allow the person to continue to own the stock, but without the full risks and rewards of ownership. When that occurs, the person may no longer have the same objectives as the Company's other stockholders.

    [MISSING IMAGE: tm212361d1-icon_securitpn.jpg]
    In addition, the adopted policy prohibits any of our directors, executive officers and all other teammates from engaging in pledging and hedging transactions in the Company’s securities. Certain forms of hedging or monetization transactions (such as zero-cost collars and forward sale contracts) allow a person to lock in much of the value of his or her stock holdings, often in exchange for all or part of the potential appreciation in the stock. These transactions allow the person to continue to own the stock, but without the full risks and rewards of ownership. When that occurs, the person may no longer have the same objectives as the Company’s other stockholders.
    TERMINIX21

    EXECUTIVE OFFICERS

    [MISSING IMAGE: lg_termnixbar-pms.jpg]
    The following table sets forth information about our executive officers as of March 21, 2019.

    April 9, 2021.
    NameAgePresent Positions
    First Became an
    Executive Officer
    Brett T. Ponton51Chief Executive Officer2020
    Robert J. Riesbeck57Executive Vice President & Chief Financial Officer2020
    David M. Dart51Senior Vice President, Human Resources2018
    Dion Persson60Senior Vice President and Interim General Counsel and Secretary2018
    Kim Scott48Chief Operating Officer2019
    Brett T. Ponton
    Brett has served as Terminix’s Chief Executive Officer and as a member of our board of directors since September 15, 2020. Mr. Ponton previously served as president of Monro, Inc. from August 2017 and as chief executive officer from October 2017 until August 2020. Prior to Monro, Mr. Ponton served as president and chief executive officer of American Driveline Systems, Inc. (the parent company of AAMCO Transmissions Inc., Cottman Transmission Systems, LLC and Global Powertrain Systems, Inc.) from September 2013 until July 2017. He also served as president and chief executive officer of Heartland Automotive Services, Inc., the largest operator of Jiffy Lube stores in North America, from 2009 until September 2013. He previously held leadership positions at Veyance Technologies, an engineered products business based in Shanghai, China and Melbourne, Australia, and Goodyear Tire & Rubber Co.
    Robert J. Riesbeck
    Robert has served as Terminix’s Executive Vice President since December 2020, with responsibility for leading the finance, information technology and supply management functions. On March 4, 2021, Mr. Riesbeck was appointed to the role of Chief Financial Officer at Terminix. From November 2019 until October 2020, Mr. Riesbeck served as chief executive officer and as a director at Pier 1 Imports, Inc., a specialty home décor and home furnishings brand retailer; he also served as chief financial officer at Pier 1 from July 2019 until October 2020. From 2018 until 2019, he served as chief financial officer of Full Beauty Brands, a portfolio company of Apax Partners and online marketplace of eight distinct proprietary brands catering to plus size consumers seeking on-trend style advice, fit and fashion. From 2014 until 2017, Mr. Riesbeck was at H.H. Gregg, Inc., a leading specialty retailer of home appliances, consumer electronics, furniture and related services, serving as chief executive officer and as a director from 2016 until 2017, and from 2014 until 2016 as chief financial officer. He previously held leadership roles at Sun Capital Partners and Nike, Inc. Mr. Riesbeck served as chief executive officer and chief financial officer of Pier 1 Imports, Inc. when on February 18, 2020, Pier 1 announced that it had filed a voluntary petition in the U.S. Bankruptcy Court for the Eastern District of Virginia under Chapter 11 of the United States Bankruptcy Code.
    David M. Dart
    David has served as Senior Vice President, Human Resources since August 2018. From 2016 until 2018, he served as senior vice president and chief human resources officer of Veritas Technologies, a global enterprise software company. From 2014 until 2016 he served vice president of human resources for the specialty materials division of Celanese. Previously, he held positions at Ecolab, Bissell, ConAgra Foods and Amgen.
    22TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    EXECUTIVE OFFICERS
    Dion Persson
    Dion has served as Senior Vice President since September 2017. In addition, he is currently serving as Interim General Counsel and Secretary of the Company. From 2011 until 2016, he served as vice president of strategy and analytics for Ingersoll Rand, a leading global provider of products, services and solutions. Mr. Persson has also held leadership roles at Johns Manville, a Berkshire Hathaway company, including senior vice president and general counsel, head of human resources and business leader for the company’s global fiberglass business.
    Kim Scott
    Kim has served as Chief Operating Officer since January 2021. She previously served as President, Terminix Residential, from December 2019 until January 2021. From 2018 until 2019 she served as president of Rubicon Global Holdings LLC, a venture-backed technology company that provides waste, recycling and smart cities solutions to businesses and governments worldwide. Ms. Scott served on the board of directors of Rubicon Global from 2015 until 2018. Prior to Rubicon Global, from 2013 until 2017, she served as president of CHEP North America, a division of Brambles Limited, a supply chain logistics company. During her 11-year career with Brambles Limited, she held several leadership roles including, president CHEP USA; group vice president global acquisition integration; and vice president of operations. Ms. Scott began her career as an environmental engineer for the General Electric Company and U.S. Steel. She served on the board of directors of the U.S. Chamber of Commerce from 2013 until 2017.
    TERMINIX23

    EXECUTIVE COMPENSATION
    Name
     Age Present Positions First
    Became
    an Executive
    Officer
     

    Nikhil M. Varty

      54 Chief Executive Officer & Director  2017 

    Anthony D. DiLucente

      60 Senior Vice President & Chief Financial Officer  2017 

    Michael C. Bisignano

      47 Senior Vice President, General Counsel & Secretary  2018 

    David M. Dart

      49 Senior Vice President, Human Resources  2018 

    Pratip Dastidar

      56 Senior Vice President & Chief Transformation Officer  2018 

    Dion Persson

      58 Senior Vice President, Business Development  2018 

    Matthew J. Stevenson

      41 President, Terminix Residential  2018 

    Mary Kay Wegner

      51 President, ServiceMaster Brands  2013 
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    Table of Contents

    Nikhil M. Varty has served as ServiceMaster's Chief Executive Officer and a director since July 2017. From 2012 until 2016, Mr. Varty served as president of the Americas and global vice president of mergers & acquisitions at WABCO Holdings Inc., a leading global supplier of electronic, mechanical, electro-mechanical and aerodynamic products for the major manufacturers of commercial trucks, buses, trailers and passenger cars. From 2005 through 2012, Mr. Varty served as vice president and business unit leader for WABCO's compression & braking business unit in Brussels, Belgium.

    Anthony D. DiLucente has served as ServiceMaster's Senior Vice President and Chief Financial Officer since February 25, 2017. Mr. DiLucente joined ServiceMaster as Senior Vice President on January 17, 2017. From April 2011 until January 2017, he served as executive vice president and chief financial officer of HDT Global, a comprehensive provider of mobility solutions for military and government applications. He previously held financial leadership positions with Sun Capital Partners, Inc., Masonite Inc., Johns Manville and Honeywell International, Inc. Mr. DiLucente served as executive vice president and chief financial officer of Masonite Inc. when on March 16, 2009 Masonite Inc. filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code and made a similar filing in Canada.

    Michael C. Bisignano has served as Senior Vice President, General Counsel and Secretary since October 2018. From 2015 until 2018, Mr. Bisignano served as executive vice president, general counsel and secretary of CA Technologies, a leading global technology company. From 2010 until 2015, he served as senior vice president, general counsel and corporate secretary for Blackboard Inc., a multinational technology company. He previously held positions at Online Resources Corporation, Arbros Communications and with the law firm Milbank, Tweed, Hadley & McCoy.

    David M. Dart has served as Senior Vice President, Human Resources since August 2018. From 2016 until 2018, he served as senior vice president and chief human resources officer of Veritas Technologies, a global enterprise software company. From 2014 until 2016 he served vice president of human resources for the specialty materials division of Celanese. Previously, he held positions at Ecolab, Bissell, ConAgra Foods and Amgen.

    Pratip Dastidar has served as Senior Vice President and Chief Transformation Officer since December 2017. From 2015 until 2017, he led process innovation that helped operational scale-up at Salesforce.com. He previously held positions at HP, Amazon, Applied Materials, WABCO, United Technologies Carrier and Honeywell Aerospace.

    Dion Persson has served as Senior Vice President, Business Development since September 2017. From 2011 until 2016 he served as vice president of strategy and analytics for Ingersoll Rand, a leading global provider of products, services and solutions. Mr. Persson has also held leadership roles at Johns Manville, a Berkshire Hathaway company, including senior vice president and general counsel, head of human resources and business leader for the company's global fiberglass business.

    Matthew J. Stevenson has served as President, Terminix Residential since October 2017. From March 2016 until October 2017, he served as president and general manager of Meritor WABCO, a joint venture between Meritor, Inc. and WABCO Holdings Inc. focused on the application and delivery of WABCO's braking and safety systems, electronic suspension control and air management products. From 2013 until 2016, Mr. Stevenson served in a variety of executive sales, marketing and operations roles at Bridgestone Americas, Inc., the largest tire producer in the world.

    Mary Kay Wegner has served as President, ServiceMaster Brands (formerly our Franchise Services Group) since November 2016. From February 2016 until November 2016, she served as Senior Vice President, Service and Operations, Terminix. Ms. Wegner joined ServiceMaster in April 2010 and served as Senior Vice President, Supply Management from July 2013 until February 2016, and as Vice President, Fleet from April 2010 until July 2013. From 2009 until 2010, Ms. Wegner served as the executive in charge of North American fleet operations for Coca-Cola Enterprises, where she was responsible for policy, process and operational performance across the United States and Canada.


    Table of Contents


    EXECUTIVE COMPENSATION

    Compensation Discussion and Analysis

    This section describes the material elements of our 20182020 executive compensation program and the principles underlying our executive compensation policies and decisions. In addition, in this section, we provide information regarding the compensation paid to each individual who served in the capacity as principal executive officer (CEO) or principal financial officer (CFO) during 20182020 and the three most highly compensated executive officers (other than the CEO and CFO) who were serving as such as of the end of our most recent fiscal year, collectively referred to as our Named Executive Officers ("NEOs"(“NEOs”). We have also included compensation data for one former executive officer, who, by virtue of his compensation, would have been designated as a NEO. This former executive officer is the President and Chief Executive officer of Frontdoor, which was spun out of ServiceMaster into a separate, publicly traded company on October 1, 2018. For fiscal 20182020, our NEOs are as follows:

    Named Executive Officer (NEO)Position
    Brett T. PontonChief Executive Officer
    Anthony D. DiLucenteFormer Senior Vice President and Chief Financial Officer
    Dion PerssonSenior Vice President and Interim General Counsel and Secretary
    Gregory L. RutherfordFormer President, Terminix Commercial
    Kim ScottChief Operating Officer
    Naren K. GursahaneyFormer Interim Chief Executive Officer
    Nikhil M. VartyFormer Chief Executive Officer
    Nikhil M. Varty, Chief Executive Officer;2020 and Recent Highlights
    [MISSING IMAGE: tm212361d1-icon_companypn.jpg]

    We completed the sale of our ServiceMaster Brands business on October 1, 2020.

    We have positioned our Company as one singularly focused on pest management and related services.

    We changed our corporate name to Terminix Global Holdings, Inc. and changed our NYSE ticker symbol
    to TMX from SERV following the completion of the sale of the ServiceMaster Brands business.

    The steps we undertook to enhance the customer experience across the Terminix business drove our
    results of improving customer retention, reducing daily cancellation rates and garnering higher net
    promoter scores (NPS).

    We implemented a robust termite damage claims mitigation program.

    We were deemed an essential service in most markets and actively responded to the COVID-19
    pandemic by creating protocols to ensure the safety of teammates and customers.
    [MISSING IMAGE: tm212361d1-icon_bussachpn.jpg]

    Revenues increased over the prior year by eight percent, with growth in Europe and improved operational performance that resulted in a better customer experience and improved customer retention.

    Adjusted EBITDA improvement was driven by operational improvements that expanded margins by 40 basis points year-over-year and improvements in customer retention. Information on the calculation of Adjusted EBITDA, and the reconciliation to net income, along with other details of the financial performance of the Company are available in Items 6 and 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Please see the narrative in the “Annual Incentive Plan” section below for more detailed information on this subject, including the impact of COVID-19 and the sale of the ServiceMaster Brands business on Annual Incentive Payments.
    Metric
    2020 Target
    Performance
    2020 Actual
    Achievement
    Revenue$2.017 billion$1.961 billion
    Adjusted EBITDA$ 342 million$ 345 million

    The Company’s stock price increased by 31.9 percent during 2020.
    24

    TERMINIX
    Anthony D. DiLucente, Senior Vice President and Chief Financial Officer;

    Dion Persson, Senior Vice President, Business Development;

    Matthew J. Stevenson, President, Terminix Residential;

    Mary Kay Wegner, President, ServiceMaster Brands; and

    Rexford J. Tibbens, President and Chief Executive Officer, Frontdoor.

    Highlights

      Company Structure

      The Company completed a successful spin-off of Frontdoor as a separate, publicly traded company on October 1, 2018.

      We launched an independent Terminix Commercial business and acquired companies, including Copesan and Cooper giving the Company a stronger presence in the commercial, urban and national accounts markets.

      The Franchise Services Group was renamed ServiceMaster Brands, reflecting an enhanced focus on potential and growth.

      The Company's transformation office has facilitated the partnership with salesforce.com to implement a new operating system platform. This partnership is expected to improve customer experience, empower frontline employees and deliver significant growth.

      Business Performance

      The financial performance of the Company demonstrated improvement over the prior year Adjusted EBITDA and revenue. However, financial performance in 2018 did not fully meet target objectives for Adjusted EBITDA in the Annual Incentive Plan. Details of the financial performance of the Company are available in Item 8 of the Company's Annual Report on


    TABLE OF CONTENTS

    Table of Contents

        Form 10-K for the year ended December 31, 2018 ("2018 Form 10-K"). Please see the narrative in the "Annual Incentive Plan" section below for more detailed information on this subject.

    2021 ANNUAL
    PROXY STATEMENT
    EXECUTIVE COMPENSATION
    The Company made progress toward the achievement of its strategic priorities for 2020:
    Our 2020 Strategic Achievements
    [MISSING IMAGE: tm212361d1-icon_employepn.jpg]
    MetricReduced
    Employee
    Turnover
    [MISSING IMAGE: tm212361d1-icon_customepn.jpg]
    2018 TargetImproved
    Performance
    Customer

    2018 Actual
    Achievement
    Retention

    Adjusted EBITDAT

    ECHNICIAN TURNOVER IMPROVED 20 percent year-over-year

    Strong technician retention

    Improved labor productivity

    Improved customer satisfaction and NPS
    RESIDENTIAL DAILY CANCEL rate DOWN 11 Percentyear-over-year

    Residential pest customer retention improved 160 bps

    Termite customer retention improved 230 bps

    Commercial pest retention relatively flat, excluding COVID-19 impacts and certain price increases
    [MISSING IMAGE: tm212361d1-icon_enhancepn.jpg]
    Enhanced
    Profit Margins
    [MISSING IMAGE: tm212361d1-icon_revitalpn.jpg]
    Revitalized
    Termite Business
    40 BPS MARGIN EXPANSIONyear-over-year

    Direct cost productivity

    G&A and back-office productivity

    Growth through retention and pricing actions

    Growth in high margin termite services
    Ten percent CORE TERMITE COMPLETION GROWTHyear-over-year

    Four percent organic growth

    Successful tiered/monthly pay launch

    Nine percent home services growth

    Completion of mitigation program in Mobile Bay Area
    $
    TERMINIX25

    654 millionEXECUTIVE COMPENSATION
    2021 ANNUAL
    PROXY STATEMENT
    Changes were made to our leadership structure during 2020 and subsequent to the end of the fiscal year but prior to the filing of this proxy statement.
    [MISSING IMAGE: tm212361d1-icon_managepn.jpg]
    Departures

    Mr. Varty resigned his positions as CEO and member of the board of directors as of January 21, 2020, and left the Company on February 29, 2020.

    Mr. Gursahaney was appointed interim CEO as of January 21, 2020, and resigned as interim CEO on September 14, 2020.

    Pratip Dastidar, former Senior Vice President and Chief Transformation Officer, left the Company on June 30, 2020.

    Aster Angagaw, former President, ServiceMaster Brands, left the Company on October 1, 2020 as part of the sale of ServiceMaster Brands.

    Mr. Rutherford left his position as President, Terminix Commercial, on January 20, 2021, and left the Company on March 15, 2021.

    Michael Bisignano left his position as Senior Vice President, General Counsel and Secretary on January 20, 2021, and left the Company on March 15, 2021.

    Mr. DiLucente resigned from his position as CFO on March 4, 2021, and retired as of March 31, 2021.
    New Hires/New Assignments

    Mr. Ponton was hired as CEO of Terminix effective September 15, 2020.

    Mr. Riesbeck was hired in December 2020 as the replacement for Mr. DiLucente as CFO. He was appointed as CFO on March 4, 2021.

    Ms. Scott was promoted to the position of Chief Operating Officer in January 2021, responsible for the operations of both Terminix Residential and Terminix Commercial.

    Mr. Persson was appointed to the position of interim General Counsel and Secretary following Mr. Bisignano’s departure in January 2021.
    $
    26TERMINIX

    622 million2021 ANNUAL
    PROXY STATEMENT
    (1)EXECUTIVE COMPENSATION
    In 2020, the Compensation Committee made the following compensation decisions:

    Revenue

    $2,854 millionCompensation Element$2,879 millionNEO(s) ImpactedAction
    Determine compensation offer for CEOsMessrs. Ponton and GursahaneyApprove employment agreements containing compensation and other terms of employment as CEO and interim CEO, respectively.
    Base SalaryMr. DiLucenteIncreased Mr. DiLucente’s salary by 3.4% to $535,000 to better align with market pay levels and to recognize his high-level contributions, including his efforts in the sale of the ServiceMaster Brands business.
    [MISSING IMAGE: tm212361d1-icon_calculapn.jpg]
    Annual IncentiveAll NEOsReaffirmed their current target bonus opportunity. Determined annual incentive payouts based on assessment of Company, business unit and individual performance.
    Long-Term IncentiveAll NEOsGrant to NEOs comprised of performance-based stock units (“PSUs”), nonqualified stock options and RSUs in 2020 with approximate grant date values allocated at 50 percent for PSUs, 30 percent for nonqualified stock options and 20 percent for RSUs.
    Other AwardsMessrs. Persson and Rutherford and Ms. ScottApproved cash award to Mr. Persson of $450,000 relating to his leadership of the action to sell the ServiceMaster Brands business. Granted retention awards in the form of RSUs to Mr. Rutherford and Ms. Scott, with a value of $1,000,000 each, to retain their services to maintain continuity during the search for a new CEO.
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    (1)
    The $622 million of Adjusted EBITDA is comprised of $398 million of Adjusted EBITDA reported in our 2018 Form 10-K, plus $33 million in the dissynergies related to the spin-off of AHS, plus $191 million of Adjusted EBITDA attributable to nine months of AHS performance.
      After accounting for the impact of the Frontdoor stock dividend paid on October 1, 2018 (valued at $20.75 per share), the Company's stock price increased by 7.1 percent during 2018.

      Management Structure

      Changes were made to our leadership structure during 2018. Mr. Tibbens was hired in May 2018 to lead AHS as it was being spun-off into a separate, publicly traded company. Mr. Stevenson previously led the Terminix business, but as the Company launched and separated the residential and commercial customer focus. Mr. Stevenson is now primarily focused on the growth and service capabilities of Terminix Residential. Other executive appointments included the hiring of Messers. Bisignano as Senior Vice President, General Counsel and Secretary and Dart as Senior Vice President, Human Resources. Messrs. Dastidar, Persson and Stevenson were designated as executive officers in 2018.

      Compensation Decisions

      Base salaries of the NEOs were increased on a selective basis. In 2018, adjustments were made to salaries for Mr. DiLucente (3.5 percent increase) to better align his salary with internal peers and external benchmarks, Mr. Persson (12.5 percent increase) to recognize his significant role in the spin-off of Frontdoor and his ongoing role with the strategic focus and merger and acquisition activities of the Company, and Mr. Stevenson (20 percent increase) to reflect his leadership of the Company's largest business and to better align his salary with internal peers.

      The Compensation Committee reviewed the target bonus opportunities for each of the NEOs and made no changes during 2018.

      Long-term incentive ("LTI") awards were granted to NEOs comprised of nonqualified stock options and restricted stock units ("RSUs") in 2018 with approximately equal grant date values. For 2018, the Compensation Committee decided to replace Performance Share Units ("PSUs") with RSUs on a one-year basis due to the complexities in determining longer term financial goals within the context of the spin-off of AHS. Annual LTI grants approved during 2018 were consistent with target levels and prior year awards. The Compensation Committee has returned to the use of PSUs as part of the 2019 LTI Program.

      The board of directors approved LTI awards for Mr. Tibbens upon his hire as CEO of AHS. Mr. Tibbens was hired with the intent that he become the President and CEO of Frontdoor after the spin-off from ServiceMaster. The LTI awards were intended to ensure a successful spin-off of AHS and were granted at competitive levels for a CEO of a company with a size and business focus similar to AHS. On May 15, 2018, Mr. Tibbens received two grants of RSUs, one that vests in equal installments on the first three anniversaries of the grant and the other that has vested or will vest in equal installments on February 18, 2019, February 18, 2020 and
    EXECUTIVE COMPENSATION
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        February 18, 2021. On May 15, 2018 he also received two stock option grants, one that vests in equal installments on the first four anniversaries of the grant and the other that has vested or will vest in equal installments on February 18, 2019, February 18, 2020, February 18, 2021 and February 18, 2022. These awards were converted to stock options and RSUs in Frontdoor as of October 1, 2018, the date of the spin-off of AHS.

      The Compensation Committee approved an RSU award in October 2018 to Mr. Persson to recognize his efforts leading activities for the spin-off of Frontdoor since he joined the Company in September 2017 and for his leadership in developing the Company's long-term and merger and acquisition strategy.

    Objectives of Our Compensation Program

    Our compensation plans for executive officers (including the NEOs) are designed to:

      Attract, motivate and retain highly qualified executives;

      Reward successful performance by the executives and us by linking a significant portion of compensation to financial and business results;

      Align our executives' long-term interests with those of our stockholders through meaningful share ownership; and

      Appropriately balance long-term and near-term incentive compensation so that near-term performance is not emphasized at the expense of long-term value creation.

    Attract
    Attract, motivate and retain highly qualified executives
    Align
    Align our executives’ long-term interests with those of our stockholders through meaningful share ownership
    Balance
    Appropriately balance long-term and near-term incentive compensation so that near-term performance is not emphasized at the expense of long-term value creation
    Reward
    Reward successful performance by the executives and us by linking a significant portion of compensation to financial and business results
    Elements of Executive Compensation, including for NEOs

    To meet these objectives, our executive compensation program consists of the following:

    Compensation ElementPurposeDeliveryFocus
    Base SalaryAttract and retain highly qualified executivesCash, generally paid on a semi-monthly basisDifferentiated based on market salary levels and the executive’s experience skills and performance
    Annual Cash IncentiveFocus executives’ performance to achieve near-term goalsCash, generally paid in March following end of the performance yearNear-term, generally annual performance period
    Long-Term Incentives (“LTI”)Focus executives’ performance to achieve long-term goalsAwards based on stock. LTI program includes PSUs, RSUs and stock optionsLong-term focus to build shareholder value over a 3 to 5-year period
    One-Time AwardsUsed for retention, promotion or extraordinary performanceCash or StockVaries depending on circumstance; generally, 1 to 3 years
    Employee benefitsAttract and retain qualified executives by ensuring that our benefit programs are competitiveIncluding retirement benefits, health and welfare benefits, perquisites, new hire bonuses and relocation benefitsTailored to each benefit program
    Base salary, which is intended to attract and retain highly qualified executives and to recognize individual performance by the executive;

    Annual cash incentive, which is intended to motivate each executive to achieve near-term Company (and, where applicable, business unit) performance goals while contributing to the attainment of long-term business objectives;

    One-time awards (either cash or equity) for retention, promotion or extraordinary performance purposes from time to time;

    Long-term equity incentives, which are intended to align executives' incentives with stockholder interests;

    For 2018, LTI was delivered through a mix of stock options and RSUs due to the complexities related to the spin-off of AHS;

    For 2019, LTI was delivered through a mix of stock options, RSUs and PSUs as described in the Long-Term Equity Awards section later in this document; and

    Employee benefits, including retirement benefits, health and welfare benefits, perquisites, new hire bonuses and relocation benefits, which are intended to attract and retain qualified executives by ensuring that our benefit programs are competitive.

    The Compensation Committee determined a target mix of compensation delivered through the three core elements of base salary, annual cash incentive and LTI awards described above based on competitive market data and internal equity, ensuring that the total compensation is heavily weighted to performance-based elements. The target mix of compensation elements for Mr. Varty, thePonton, our CEO, and an average mix for other NEOs are pictured below. The Other NEO Compensation Mix chart does not

    [MISSING IMAGE: tm212361d1-pc_ceoneopn.jpg]
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    include compensation data for Mr. Tibbens as he was specifically hired to be the CEO of Frontdoor, with the mix of his compensation targeted at a CEO-level position.

    GRAPHIC

    GRAPHIC

    Each of these elements, discussed in more detail below, plays an integral role in our balancing of executive rewards over near- and long-term periods and our ability to attract and retain key executives. We believe the design of our executive compensation program creates alignment between performance achieved and compensation awarded and motivates achievement of both annual goals and sustainable long-term performance.


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    Determination of Executive Compensation

    Pay Decision Process

            The role of our Compensation Committee is to assist our board of directors in the discharge of its responsibilities relating to our executive compensation program. Our Compensation Committee is responsible for establishing, administering and monitoring our policies governing the compensation for our executive officers, including determining base salaries and near-term and LTI awards.

            The Compensation Committee determines the CEO's compensation and discusses the approved compensation with the board of directors. Historically, in determining the CEO's compensation, the Compensation Committee has considered the following factors: (1) our operating and financial performance, (2) the competitive market data provided by Semler Brossy, our external compensation consultant, as presented to the Compensation Committee by our Senior Vice President, Human Resources in collaboration with Semler Brossy, (3) the assessment by the Compensation Committee of the CEO's individual performance with subsequent discussion with the full board of directors and (4) prevailing economic conditions.

    The role of our Compensation Committee is to assist our board of directors in the discharge of its responsibilities relating to our executive compensation program. Our Compensation Committee is responsible for establishing, administering and monitoring our policies governing the compensation for our executive officers, including determining base salaries and near-term and LTI awards.
    The Compensation Committee determines the CEO’s compensation and discusses the approved compensation with the board
    of directors. Historically, in determining the CEO’s compensation, the Compensation Committee has considered the following
    factors:
    Our operating and financial performance;
    2The competitive market data provided by Pearl Meyer, our external compensation consultant, as presented to the Compensation Committee by our Senior Vice President, Human Resources in collaboration with Pearl Meyer;
    3The assessment by the Compensation Committee of the CEO’s individual performance with subsequent discussion with the full board of directors; and
    4Prevailing economic conditions.
    The CEO recommendedrecommends to the Compensation Committee compensation for the other executive officers based on his assessment of each executive officer'sofficer’s area of responsibility, individual and business unit performance, overall contribution, the competitive market data provided by Semler BrossyPearl Meyer and prevailing economic conditions. All aspects of compensation for our executive officers, including for the CEO, in fiscal year 20182020 were approved by the Compensation Committee, and the Compensation Committee performs all functions described in this Compensation Discussion and Analysis as provided for in its charter.

    We believe that our executive compensation program must be attractive to compete in the market for executive talent and must support our growth strategy. As a result of this focus, we rely on competitive pay practices and individual and business performance in determining the compensation of our executives. In making these compensation determinations, we also consider historical individual compensation levels and historical company payout levels for annual cash incentives. The executive compensation program and underlying philosophy are reviewed at least annually by our Compensation Committee to determine what, if any, modifications should be considered.

    Compensation Consultant Independence
    The Compensation Committee has the authority to retain compensation consultants, outside counsel and other advisers. During 2020, the committee engaged Pearl Meyer to advise it on executive compensation program-design matters and to prepare market studies of the competitiveness of components of the company’s compensation program for its senior executive officers, including the named executive officers, and non-employee directors. Pearl Meyer is a global professional services company. The Compensation Committee performed an assessment of Pearl Meyer’s independence to determine whether the consultant is independent, taking into account executive compensation consulting protocols from Pearl Meyer to ensure consultant independence and other relevant factors. Based on that assessment, the Compensation Committee determined that Pearl Meyer’s work has not raised any conflict of interest and the firm is independent.
    Compensation Risk Assessment

    Management has assessed the Company'sCompany’s compensation plans and practices to evaluate whether they create risks that are reasonably likely to have a material adverse effect on the Company. Based on its assessment, management has concluded that the Company'sCompany’s compensation policies and practices do not create incentives to take risks that are reasonably likely to have a material adverse effect on the Company. We believe we have allocated our compensation among base salary, near-term incentives and LTI awards in such a way as to not encourage excessive risk taking. Management'sManagement’s assessment of theour compensation plans and programs was reviewed with the Compensation Committee.

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    Clawback Policy

    The board of directors has approved and implemented a clawback policy that provides the Compensation Committee with the discretion to claw back performance-based compensation in the event of a restatement of Company financial statements or misconduct. This policy was approved in February 2016 and became effective on a prospective basis.

    Stock Ownership Guidelines for Executive Officers

    The board of directors has adopted stock ownership guidelines for executive officers of the Company. The board believes that setting these ownership guidelines will enhance our executive officers'


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    officers’ alignment with other stockholders. The Compensation Committee will reviewreviews executive officer stock ownership levels on an annual basis.

    The ownership guidelines for executive officers are based on a multiple of annual base salary, with the CEO expected to own stock valued at six times his annual salary and other executive officers expected to own stock valued at three times their respective annual salaries. Until an executive officer meets these stock ownership guidelines, each executive officer is required to retain 50 percent of the shares obtained, net of the strike price and taxes, upon the exercise of stock options and vestings of other equity awards that are granted on or after February 18, 2018. Shares included in the ownership guideline calculation include shares owned by the executive, unvested RSUs and 25 percent of the in-the-money value of vested options.

    Say-on-Pay

    The Compensation Committee considers the advisory vote from stockholders on executive compensation as an important input into the determination of the compensation program structure. The approval of the executive compensation program by more than 9597 percent of the votes cast by stockholders in 20182020 provides a further endorsement of our executive compensation program. The most significant change to the compensation structure during 2018 was the grant of RSUs, rather than PSUs, due to the complexities in determining longer-term financial goals within the context of the spin-off and financial separation of AHS. The annual grant of these LTI awards enables the Company to deliver compensation that is competitive with the external market, while aligning executives' interests with those of our stockholders. The Compensation Committee will continue to consider stockholder feedback as part of its decision-making process consistent with the Company'sCompany’s pay-for-performance philosophy. The Compensation Committee granted PSUs in 2019 in conjunction with stock options and RSUs to focus on Company performance and building shareholder value.

    [MISSING IMAGE: tm212361d1-pc_sayonpaypn.jpg]
    Peer Group

    In 2018,2019, the Compensation Committee conducted theirits annual review of our Peer Group which was considered as an element in the peer group.determination of compensation of our executive officers for 2020. After the review, the Compensation Committee removed one company and added one companymade changes to the existing peer group,Peer Group to which we comparebetter align with our NEOs' compensation. The Compensation Committeebusiness model and growth rates relative to our growth and approved a list of 1318 companies as our Peer Group. These companies are generally 0.3 to 3.0 times our revenue size, based on 20172018 revenue figures.

    The peer companies are generally from the service industry and have a distributed business model. The Compensation Committee also considered the growth rates of the companies when selecting this group of companies. We reviewThe Compensation Committee reviews our Peer Group and may from time to time adjust the companies comprising the group to better reflect competitors in the industries in which we compete, companies with similar business models and companies that compete in our labor markets for talent. For 2018, the ADT Corporation was deleted from the group due to its being taken private at that time and Central Garden and Pet Company was added to ourOur Peer Group which consists of the following companies:

    ADT Inc.
    ABM Industries IncorporatedRollins, Inc.
    Central Garden and Pet CompanyService Corporation International
    ChemedCovanta Holding CorporationSpectrum Brands Holdings, Inc.
    CintasAdvanced Disposal Services, Inc.FirstService CorporationStericycle, Inc.
    BrightView Holdings, Inc.H&R Block, Inc.The Scotts Miracle Grow CompanyBrink’s Company.
    Realogy Holdings Corp.Casella Waste Systems, Inc.Waste Connections, Inc.
    Rentokil Initial plcWeight WatchersThe Scotts Miracle-Gro Company
    Central Garden & Pet CompanyRollins, Inc.UniFirst Corporation
    Chemed CorporationService Corporation InternationalWW International, Inc.
    Republic Services, Inc.

    As part of our review of competitive pay practices, we engaged Semler Brossy in 2018Pearl Meyer to conduct a market review to determine whether executive officer total compensation opportunities were


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    competitive. In determining 20182020 executive compensation, the Compensation Committee relied on the Peer Group data provided by Semler BrossyPearl Meyer for positions reported in the peer companies'companies’ respective proxy statements. A general survey of competitive market data for positions which were not reported in Peer Group proxy statements was provided by Aon Hewittthird-party survey sources and was adjusted to mirror general market merit increases, as identified in market salary

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    increase surveys sponsored by compensation consulting organizations. The survey data reflectsreflected companies in general industries with revenue sizes between $1 billion$500 million and $5$2 billion. The positions for which survey data was the primary source of competitive information includeincluded business unit presidents and the heads of Human Resources, Legal, Business Development and Information Technology functions. The Compensation Committee then evaluated base pay and annual bonuses for our executives as discussed below. Differences in total compensation generally reflect the relevant experience, expertise, tenure and performance of the individual executive officer within his or her role.

    CEO Performance

    The Company negotiated salary, 2018annual bonus and equityLTI awards with Mr. VartyPonton as part of his agreement to join the Company as CEO in July 2017.September 2020. The Compensation Committee confirmed the salary, annual bonus and LTI awards detailed in Mr. Varty'sPonton’s employment agreementagreement. Mr. Gursahaney’s salary, bonus and equity awards were approved by the board of directors for his service as interim CEO. The Compensation Committee reviewed the performance of both Messrs. Ponton and Gursahaney for 2018,their respective portion of 2020, with a focus on actions taken to ensure a successful spin-offgrow the Company profitably. The Compensation Committee was pleased with the performance of AHS, highlighted by:

      both Messrs. Ponton and Mr. Gursahaney during their respective tenures as CEO and, as such, approved annual incentive payouts for each at above target levels, in part due to:
    (1)

    An eight percent increase in revenue;
    (2)

    (2)
    A six10 percent increase in Adjusted EBITDA; and
    (3)

    (3)
    The successful spin-off
    Sale of Frontdoor as an independent, publicly traded company; and

    (4)
    The launch of an independent Terminix Commercialthe ServiceMaster Brands business with acquisitions supportingenabling the growth of that business.

            Key operational strategies that have enhanced the Company's abilityCompany to deliver solid performancefocus solely on being a consistent basis have been implemented and key initiatives have been undertaken in 2018, which should bear positive results in the future. The Compensation Committee did not adjust Mr. Varty's compensation package, but was pleased with Mr. Varty's performance in 2018 and with the initiatives launched and his vision for the Company.

    pest management company.

    Base Salary

    The Compensation Committee annually reviews the base salaries of our executive officers. The Compensation Committee may take into account numerous factors when making its determination including the NEO'sNEO’s experience relative to industry peers, competitive market data, time in his or her position, individual performance, future potential and leadership qualities.


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    The following table sets forth information regarding the 20182020 base salaries for our NEOs.

    2018

    2020 Base Salary Table

    Named Executive Officer
    Base Salary
    as of
    January 1,
    2020($)
    Base Salary
    as of
    December 31,
    2020 or date of
    Departure ($)
    Aggregate
    Increase %
    Brett T. Ponton(1)975,0000%
    Anthony D. DiLucente517,500535,000(2)3.4%
    Dion Persson450,000450,0000%
    Gregory L. Rutherford460,000460,0000%
    Kim Scott525,000525,0000%
    Naren K. Gursahaney(3)(3)N/A
    Nikhil M. Varty1,000,000(4)N/A
    Named Executive Officer
     Base Salary
    as of
    January 1,
    2018 ($)
     Base Salary
    as of
    December 31,
    2018 ($)
     Aggregate
    Increase %
     

    Nikhil M Varty

      1,000,000  1,000,000  0%

    Anthony D. DiLucente(1)

      500,000  517,500  3.5%

    Dion Persson(2)

      400,000  450,000  12.5%

    Matthew J. Stevenson(3)

      375,000  450,000  20.0%

    Mary Kay Wegner

      425,000  425,000  0%

    Rexford J. Tibbens

      (4)  (4)  (4) 

    (1)
    (1)
    Mr. DiLucente's salary was increased on April 1, 2018 to better align his salary with internal peers and the external market. The salary was also intended to recognize significant contributions he has made to the realignment of the Company's Finance function, as well as his significant effort related to the spin-off of AHS.

    (2)
    Mr. Persson's salary was increased from $400,000 to $450,000 on November 1, 2018 to better align his salary with his responsibilities related to the development and implementation of the Company's strategy in addition to his management of activities related to the spin-off of AHS.

    (3)
    Mr. Stevenson's salary was increased from $375,000 to $450,000 on April 1, 2018 to better align his salary with internal peers and the external market. As the leader of the Company's largest business, he has had significant impact in the streamlining and improved efficiency of business unit operations.

    (4)
    Mr. TibbensPonton was hired on MaySeptember 15, 20182020 with a salary of $800,000,$975,000, consistent with his employment agreement.
    (2)
    Mr. Tibbens separated from the CompanyDiLucente received a salary adjustment to an annual salary of $535,000 on October 1, 2018 with2020 to reflect more appropriate market salary levels and to recognize his leadership in the sale of the ServiceMaster Brands business.
    (3)
    Mr. Gursahaney assumed the role of President andinterim CEO on January 21, 2020 following the resignation of Frontdoor. He did not receive aMr. Varty. His salary increase during 2018.was $1,000,000 from his start date, but was voluntarily reduced by 25% on May 7, 2020 for the duration of his tenure in response to the COVID-19 pandemic.

    (4)
    Mr. Varty’s resigned as CEO on January 21, 2020.
    Annual Incentive Plan

    The Company administers the Annual Incentive Plan ("AIP"(“AIP”), our annual cash incentive program, which is designed to reward the achievement of specific pre-set financial results measured over one fiscal year (or, as applicable, a portion of a fiscal year) subject to the maximum amounts derived under the Executive Annual Bonus Plan ("EABP"). Stockholders of the Company approved the EABP at the 2015 Annual Meeting of Stockholders, providing for a maximum bonus that can be paid to any executive officer equal to one percent of Adjusted EBITDA. The Tax Cuts and Jobs Act of 2017 eliminated deductions under Section 162(m) of the Code rendering the EABP ineffective for its intended purpose. Although in place for the 2018 fiscal year, the Compensation Committee terminated the EABP effective as of February 18, 2019. For 2018,2020, the AIP was measured over the 20182020 calendar year results. The 2020 results included the performance of the ServiceMaster Brands business for three quarters of the year. The ServiceMaster Brands business was sold effective October 1, 2020. Each participant was assigned an annual incentive target expressed as a percentage of base salary. For the NEOs, these targets ranged from 60 percent of base salary to 100 percent of base salary. The specific target bonus for each NEO is listed in the table below:

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    Named Executive Officer
    Target Bonus
    as a Percent
    of Salary

    Brett T. Ponton100%
    Anthony D. DiLucente70%
    Dion Persson60%
    Gregory L. Rutherford65%
    Kim Scott65%
    Naren K. Gursahaney100%
    Nikhil M. Varty

    100%

    Anthony D. DiLucente

      70%

    Dion Persson

    (1)  60%

    Matthew J. Stevenson

      65%

    Mary Kay Wegner

      65%

    Rexford J. Tibbens

    100%
    (1)

    Table of ContentsMr. Varty was not eligible to participate in the 2020 AIP as he resigned from the Company on February 29, 2020.

    Performance Measures

    To encourage our executive officers to focus on near-term Company (and, where applicable, business unit) goals and financial performance, incentives under the AIP are based on our performance with respect to the following measures and an individual performance evaluation, as determined by the Compensation Committee, at both a corporate consolidated and, where applicable, a business unit level:


    Revenue;

    Adjusted EBITDA;


    Revenue;Customer retention; and


    Customer count as measured by the change
    Termite damage claim mitigation efforts in the total customer count for Terminix, improvement in the customer count for AHSMobile Bay Area.
    Revenue and the Net Promoter Score for Merry Maids. The measure for the corporate customer count is a revenue-weighted average of the business unit customer count measures.

    Adjusted EBITDA and revenue achievement metrics are discussed above on page 20.

    above.

    The performance measures above were selected as the most appropriate measures upon which to determine annual bonuses because they are the primary metrics that management believes build value in the Company. Additionally, these measures were selected to incentivize profitable growth, with a focus on enhancing the customer experience as measured by customer retention rate. All of the opportunity for payment under the AIP to our NEOs is based on these performance measures and individual performance.

    Payments under the AIP were also subject to the achievement of a minimum level of performance on the Adjusted EBITDA financial measure ("(“Adjusted EBITDA Threshold"Threshold”). In order to earn any payment under the AIP, the Adjusted EBITDA Threshold had to be achieved at the corporate consolidated or, where applicable, business unit levels. The Adjusted EBITDA Threshold was exceeded by the Corporate organization, Terminix and ServiceMaster Brands, but was not met by AHS. Stockholders of the Company approved the EABP at the 2015 Annual Meeting of Stockholders, providing for a maximum bonus that can be paid to any executive officer equal to one percent of Adjusted EBITDA. As noted above, due to changes in the tax law the company has terminated the EABP. The corporate consolidated Adjusted EBITDA Threshold and business unit Adjusted EBITDA Thresholds applicable to the NEOs are set forth in the table below:

    NEOPerformance Measure(1)
    Adjusted EBITDA
    Threshold
    ($ in 000s)
    Adjusted EBITDA
    Actual
    ($ in 000s)
    Brett T. Ponton(2)Consolidated Adjusted EBITDA385,000419,000
    Anthony D. DiLucenteConsolidated Adjusted EBITDA385,000419,000
    Dion PerssonConsolidated Adjusted EBITDA385,000419,000
    Gregory L. RutherfordTerminix Adjusted EBITDA309,000343,000
    Kim Scott(3)Terminix Adjusted EBITDA309,000343,000
    Naren K. Gursahaney(4)Consolidated Adjusted EBITDA385,000419,000
    Nikhil M. Varty(Not Eligible for the 2020 AIP)
    NEO
     Performance Measure Adjusted EBITDA
    Threshold
    ($ in 000s)
     Adjusted EBITDA
    Actual
    ($ in 000s)

    Nikhil M. Varty

     ServiceMaster Adjusted EBITDA 616,000 622,000

    Anthony D. DiLucente

     ServiceMaster Adjusted EBITDA 616,000 622,000

    Dion Persson

     ServiceMaster Adjusted EBITDA 616,000 622,000

    Matthew J. Stevenson

     Terminix Adjusted EBITDA 325,000 333,000

    Mary Kay Wegner

     ServiceMaster Brands Adjusted EBITDA 84,000 89,000

    Rexford J. Tibbens

     American Home Shield Adjusted EBITDA (1) (1)

    (1)
    (1)
    Consolidated Adjusted EBITDA, including threshold and actual performance also reflects the operating results of ServiceMaster Brands for nine months of 2020.
    (2)
    As part of his new hire package, Mr. Tibbens'Ponton’s annual bonus payment for 20182020 was guaranteed at a minimum of 100 percent of his target bonus percent prorated for the time of his service from May 15, 2018, his hire date, through September 30, 2018, the date prior to the spin-off of AHS,during 2020, as provided for in his employment agreement.

    (3)
    Ms. Scott’s annual bonus payment for 2020 was guaranteed at a minimum of 100 percent of her target bonus for the year, as provided for in her offer letter.
    (4)
    Mr. Gursahaney’s annual bonus payment for 2020 was guaranteed at a minimum of 100 percent of his target bonus prorated for the time of service for the year, as provided for in his employment agreement.
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    Performance Targets and Weightings

    Performance targets are established by the Compensation Committee in the first quarter of each year and are based on expected performance in accordance with our, and where applicable, the


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    business unit's,unit’s, approved business plan for the year. In the event we and, where applicable, the business unit, achieve the performance targets specified in the table above, payout under the AIP would be 100 percent of a specified percentage of the executive'sexecutive’s base salary. Performance below the target goal would result in below target payouts and performance above target goals would pay above target and be subject to anythe plan-based cap based on the EABP.of 200 percent of target for financial performance and 110 percent for termite damage mitigation treatments. The components and weightings of the performance measures are reviewed and determined annually by the Compensation Committee to reflect Company strategy. The 2020 AIP provides that the bonus payout for Messrs. Ponton, DiLucente, Persson and Gursahaney is weighted 75 percent on the payout for the consolidated organization and 25 percent on the achievement of termite damage claim mitigation goals. Payouts for Messrs. Ponton and Gursahaney were guaranteed at a minimum of 100 percent of their respective target bonuses per their offers.

    The payout for Mr. Rutherford is based on the performance weightings in the table below, including the Terminix Commercial business. Terminix Commercial revenue and customer retention metrics were negatively impacted by the COVID-19 pandemic in 2020, and this business unit absorbed the effects of the government mandated shut down of non-essential businesses—which caused greater disruption with our commercial customers than residential customers. Terminix Commercial proactively implemented cost control measures to protect profitability and profitability margins during the pandemic, which assisted Terminix in achieving 104 percent on the Adjusted EBITDA performance metric. We went through a fulsome process to quantify the impacts of the pandemic on the Terminix Commercial business, both positive and negative, and concluded adjustments related to the impacts would have brought the performance achievement above 100 percent; however, although the identified adjustments would have resulted in a payout above target, the Compensation Committee only exercised discretion to adjust Mr. Rutherford’s bonus up to 100 percent of target. The payout for Ms. Scott was guaranteed at a minimum of 100% of her target bonus opportunity with any higher achievement level based on the performance weightings in the table below, including for the Terminix Residential business. The Compensation Committee also considers an evaluation of the individual performance for each executive officer and may adjust the formulaic bonus calculation based on its evaluation again subject to the maximum limits set under the EABP for 2018.

    2020.

    The tables below provide information regarding the 20182020 AIP for our participating NEOs, including the performance goals, the weight assigned to each performance goal and the payout as a percentage of the target bonus if the threshold or target performance goal is met. The performance goals and relative weightings reflect the Compensation Committee'sCommittee’s objective of ensuring that a substantial amount of each NEO'sNEO’s total compensation is tied to applicable overall corporateconsolidated and business unit performance.

    2018TERMINIX33

    EXECUTIVE COMPENSATION
    2021 ANNUAL
    PROXY STATEMENT
    2020 AIP Weighting, Threshold and Target Performance Goals

    NEO
    Target Bonus
    as a % of
    Salary
    Organizational
    Weighting
    Performance
    Weighting
    Threshold(1)Target(1)
    % of Target
    Performance
    for Threshold
    Payout
    % Payout with
    Threshold
    Performance
    Brett T. Ponton
    Anthony D. DiLucente
    Dion Persson
    Naren K. Gursahaney
    100%
    70%
    60%
    100%
    40%
    Consolidated Revenue(2)
    2,020,0002,223,00091%50%
    75%
    Corporate
    40%
    Consolidated Adjusted EBITDA(2)
    385,000411,00094%50%
    20%
    Revenue-weighted Customer Retention
    92 bps102 bps90%50%
    25%
    Termite
    Damage
    Claims
    60%
    Termite Damage Treatments
    7,50015,00050%50%
    40%
    Termite Damage Cost of Treatment
    11,00010,00091%50%
    Gregory L. Rutherford65%
    37.5%
    Terminix
    Commercial 
    40%
    Terminix Commercial Revenue
    475,000528,00090%50%
    40%
    Terminix Adjusted EBITDA
    309,000331,00093%50%
    20%
    Terminix Commercial Customer Retention
    102 bps114 bps89%50%
    37.5%
    Corporate
    (As detailed for the other NEOs in this table above)
    25%
    Termite
    Damage
    Claims
    60%
    Termite Damage Treatments
    7,50015,00050%50%
    40%
    Termite Damage Cost of Treatment
    11,00010,00091%50%
    40%
    Terminix Residential Revenue
    1,332,0001,409,00095%50%
    Kim Scott65%
    37.5%
    Terminix
    Residential 
    40%
    Terminix Adjusted EBITDA
    309,000331,00093%50%
    20%
    Terminix Residential Customer Retention
    88 bps98 bps90%50%
    37.5%
    Corporate
    (As detailed for the other NEOs in this table above)
    25%
    Termite
    Damage
    Claims
    60%
    Termite Damage Treatments
    7,50015,00050%50%
    40%
    Termite Damage Cost of Treatment
    11,00010,00091%50%
    Nikhil M. Varty(3)N/A

    NEO
     Target
    Bonus
    as a
    % of
    Salary
     Organizational Weighting Performance Weighting Threshold
    ($ in 000s,
    except
    Customer
    Count)
     Target
    ($ in 000s,
    except
    Customer
    Count)
     % of Target
    Performance
    for
    Threshold
    Payout
     % Payout
    with
    Threshold
    Performance

    Nikhil M. Varty

      100% 100% ServiceMaster 40% ServiceMaster Adjusted EBITDA  616,043  653,529  94%  50%

    Anthony D. DiLucente

       70%   40% ServiceMaster Revenue  2,654,703  2,854,370   93%   50%

    Dion Persson

       60%   20% ServiceMaster Customer Count  (1)  (1)   25%   50%

         40% Terminix Adjusted EBITDA  325,029  345,230   94%   50%

    Matthew J. Stevenson

       65% 100% Terminix 40% Terminix Revenue  1,541,484  1,641,789   94%   50%

         20% Terminix Customer Count  59 bps(2) 235 bps(2)  98%   50%

         50% ServiceMaster Brands Adjusted EBITDA  84,185  84,185   100%   100%

    Mary Kay Wegner

     65% 100% ServiceMaster Brands 40% ServiceMaster Brands Revenue  212,256  231,941   92%   50%

         10% Merry Maids NPS  25 bps(2) 100 bps(2)  98%   50%

         40% American Home Shield Adjusted EBITDA  206,607  223,893   92%   50%

    Rexford J. Tibbens(3)

     100% 100% American Home Shield 40% American Home Shield Revenue  899,438  978,740   92%   50%

         20% American Home Shield Customer Count  214 bps(2) 857 bps(2)  92%   50%

    (1)
    (1)
    Customer Count thresholdAmounts in 000s, except for customer retention and target for Corporate Organizations are calculated as the revenue-weighted averagetermite damage mitigation treatments.
    (2)
    Includes results of the Customer Count payouts for Terminix, AHS (through September 30, 2018)our European pest management subsidiaries and nine months of ServiceMaster Brands.
    (3)

    (2)
    Improvement
    Mr. Varty was not eligible to participate in customer count is measured in basis points (1% = 100 basis points ("bps")).

    (3)
    Mr. Tibbens' payment under the 2020 AIP was guaranteed at 100% of his target bonus percent prorated for his time of service during 2018 through September 30,as he resigned from the day prior to the effective date of the spin-off of AHS.
    Company on February 29, 2020.

    The "%“% of Target Performance for Threshold Payout"Payout” is equal to threshold performance (which is generally equal to the prior year'syear’s actual performance) divided by the current year'syear’s target goal. The payout levels for performance between threshold and target are generally based on a 6:1 ratio—for every one percent of achievement above threshold performance levels, the plan pays out six additional percentage points of the targeted payout. The payout levels for performance above target to maximum are generally based on a 10:1 ratio—for every one percent of achievement above threshold performance levels, the plan pays out ten additional percentage points of the targeted payout. We believe the 10:1 ratio to be an effective motivator to provide significant rewards for exceptional performance. The customer count metric is measured and rewarded using a different scale than the 10:1 ratio. The customer count metric is based on the basis point change year over year as defined in the annual operating plan. Threshold is set at 25 percent of the target change and will determine a payout of 25 percent of that portion of the total payout. The scale increases to a 100 percent payout at target and 150 percent at the stretch target, with interpolation between achievement and payout levels. The 20182020 AIP target payout opportunity for each participating NEO was based on our review of Peer Group and survey data and the importance of the NEO'sNEO’s position relative to our overall financial success.

    As noted above, business unit presidents’ bonus payout is weighted 37.5 percent on consolidated performance, 37.5 percent on the presidents’ respective business unit performance and 25% on termite damage claims mitigation goals.
    34TERMINIX


    2021 ANNUAL
    PROXY STATEMENT
    EXECUTIVE COMPENSATION
    2020 AIP Performance

    NEO
    % of
    Terminix
    Target
    Adjusted
    EBITDA
    Attained
    % of
    Terminix
    Target
    Revenue
    Attained
    % of
    Terminix
    Customer
    Retention
    Attained
    % of
    Termite
    Damage
    Treatments
    Attained
    % of
    Termite
    Avg Cost of
    Treatments
    Attained
    Business
    Unit
    % of
    Business
    Unit Target
    Adjusted
    EBITDA
    Attained
    % of
    Business
    Unit Target
    Revenue
    Attained
    % of
    Business
    Unit Target
    Customer
    Retention
    Attained
    % of
    Target
    Bonus
    Earned(1)
    Brett T. Ponton104%97%152%110%110%ConsolidatedN/AN/AN/A112%
    Anthony D. DiLucente104%97%152%110%110%ConsolidatedN/AN/AN/A112%
    Dion Persson104%97%152%110%110%ConsolidatedN/AN/AN/A112%
    Gregory L. RutherfordN/AN/AN/A110%110%
    Terminix
    Commercial
    104%92%0%79%
    Kim ScottN/AN/AN/A110%110%
    Terminix
    Residential
    104%99%205%131%
    Naren K. Gursahaney104%97%152%110%110%ConsolidatedN/AN/AN/A112%
    Nikhil M. Varty(2)
    NEO
     % of
    ServiceMaster
    Target
    Adjusted
    EBITDA
    Attained
     % of
    ServiceMaster
    Target
    Revenue
    Attained
     % of
    ServiceMaster
    Customer
    Retention
    Attained
     Business Unit % of
    Business
    Unit
    Target
    Adjusted
    EBITDA
    Attained
     % of
    Business
    Unit
    Target
    Revenue
    Attained
     % of
    Business
    Unit
    Target
    Customer
    Retention
    Attained
     % of
    Target
    Bonus
    Earned
     

    Nikhil M. Varty

      95% 101%   Corporate  N/A  N/A  N/A  94%

    Anthony D. DiLucente

      95% 101%   Corporate  N/A  N/A  N/A  94%

    Dion Persson

      95% 101%   Corporate  N/A  N/A  N/A  94%

    Matthew J. Stevenson

      N/A  N/A  N/A Terminix  96% 101% 99% 95%

    Mary Kay Wegner

      N/A  N/A  N/A ServiceMaster Brands  106% 105% 100% 150%

    Rexford J. Tibbens(1)

      N/A  N/A  N/A American Home Shield  85% 100% 99% 0%

    (1)
    Bonus calculations are weighted 75 percent based on corporate performance and 25 percent on attainment of termite damage claim mitigation goals for those NEOs participating in the corporate plan. The bonus calculations for the Presidents of Terminix Commercial and Terminix Residential are weighted 37.5 percent for corporate performance, 37.5 percent for business unit performance and 25 percent on the termite damage claims mitigation goals.
    (2)
    Mr. Varty was not eligible to participate in the 2020 AIP as he resigned from the Company on February 29, 2020.
    2020 AIP Payments
    NEO
    % of Salary Paid
    at Target
    Performance
    Year-End
    Base Salary ($)
    Target Award
    Opportunity ($)
    Actual %
    of Target
    Awarded
    Total Bonus
    Earned ($)
    Brett T. Ponton(1)100%975,000285,822112%318,691
    Anthony D. DiLucente(2)70%535,000365,313112%407,323
    Dion Persson(2)60%450,000270,000112%301,050
    Gregory L. Rutherford(3)65%460,000299,000100%299,191
    Kim Scott(4)65%525,000341,250119%404,808
    Naren K. Gursahaney(5)100%750,000649,315112%723,986
    Nikhil M. Varty(6)
    (1)
    Mr.Tibbens' annual bonus
    Mr. Ponton’s AIP payment was guaranteed at a minimum of 100 percent of his target, prorated from his hire date of September 15, 2020 through the end of the year. Since the Company’s performance exceeded target performance, his payment was approved at 112% of target payout.
    (2)
    Messrs. DiLucente’s and Persson’s AIP payment exceeded internal financial performance goals, with resulting payouts at 112 percent of target payout.
    (3)
    Mr. Rutherford’s AIP payment for 20182020 performance was guaranteed at his target bonus percent of 65 percent of base salary, even though Terminix Commercial achieved less than target for 2020. The Compensation Committee adjusted his payment to 100 percent of his target level due to the negative impact the COVID-19 pandemic had on the commercial business.
    (4)
    Ms. Scott’s AIP payment was guaranteed at a minimum of 100 percent of her target per her offer letter. The Terminix Residential business exceeded its target performance levels for 2020 and the Compensation Committee confirmed her payment at 119 percent of her target.
    (5)
    Mr. Gursahaney’s AIP payment was guaranteed at a minimum of 100 percent of target prorated for his service during 2018.

    2018 AIP Payments

    NEO
     % of Salary Paid
    at Target
    Performance
     Year-End
    Base Salary ($)
     Target Award
    Opportunity ($)
     Actual %
    of Target
    Awarded
     Total Bonus
    Earned ($)
     

    Nikhil M. Varty(1)

     100%  1,000,000  1,000,000 89%  890,000 

    Anthony D. DiLucente(2)

     70%  517,500  362,250 116%  419,123 

    Dion Persson(3)

     60%  450,000  270,000 111%  300,375 

    Matthew J. Stevenson(4)

     65%  450,000  292,500 105%  305,663 

    Mary Kay Wegner(5)

     65%  425,000  276,250 104%  288,405 

    Rexford J. Tibbens(6)

     100%  800,000  300,000 100%  300,000 

    (1)
    as interim CEO from January 31, 2020 through September 14, 2020. Mr. Varty'sGursahaney’s base salary was voluntarily reduced to an annual incentive payment was below the calculated funding level as the Company fell shortrate of internal financial goals. The Compensation Committee exercised its discretion and reduced the funding level for Corporate organizations$750,000 in May 2020 to 89 percent of target levelshelp address business challenges arising from the calculated 94 percent achievement due to the adjustment for area wide events (hurricanes and large area disasters) as well as the underperformanceCOVID-19 pandemic, however, his annual target incentive was based on his unreduced salary of AHS for the first three quarters of the year. Consequently,$1,000,000. Since Terminix’s performance exceeded target, the Compensation Committee determined approved his payout at 112% of target.
    (6)
    Mr. Varty's annual incentiveVarty was not eligible to be paidparticipate in line with the Corporate funding level.

    (2)
    Mr. DiLucente's annual incentive payment exceeded the calculated payout level2020 AIP as the Compensation Committee determined, based upon the CEO's recommendation, that his leadership and contributions focused on the spin-off of AHS and the internal streamlining of the Finance function, along with the CEO's evaluation of his individual performance, merited a higher level of payment.

    (3)
    Mr. Persson's annual incentive payment exceeded the calculated amount as the Compensation Committee determined, based upon the CEO's recommendation, that his leadership of the activities related to the spin-off of AHS, his role in developing the Company's strategy and his leadership in executing the Company's acquisition strategy, along with the CEO's evaluation of his individual performance, merited a higher level of annual incentive.

    (4)
    Mr. Stevenson's annual incentive payment exceeded the calculated amount as the Compensation Committee determined, based upon the CEO's recommendation, that the structural changes, streamlining of service delivery and heightened focus on the customer experience set the framework for improved performance, both near-term and longer-term at Terminix, along with the CEO's evaluation of his individual performance, merited a higher level of annual incentive.

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    (5)
    The annual incentive funding level (116 percent) for the ServiceMaster Brands business was reducedhe resigned from the calculated achievement level (150 percent) as the Compensation Committee exercised its discretion and reduced the funding level due to the adjustment for area wide events (hurricanes and large area disasters). Ms. Wegner's annual incentive payment was reduced basedCompany on the CEO's evaluation of her individual performance; however, her overall pyament was still above her target level.February 29, 2020.
    TERMINIX35

    (6)
    Mr. Tibbens' annual bonus payment for 2018 performance was guaranteed at his target bonus percent of 100 percent of base salary, prorated from his hire date of May 15, 2018 through September 30, 2018, the date prior to the spin-off of AHS. His prorated salary paid for the period from his hire on May 15, 2018 through September 30, 2018 was $300,000.


    EXECUTIVE COMPENSATION
    2021 ANNUAL
    PROXY STATEMENT
    Long-Term Equity Awards

    Our long-term equity incentive plans are designed to retain key executives and to align the interests of our executives with the achievement of sustainable long-term growth and performance. For 2018,2020, to provide a long-term incentive component to the pay mix of executive officers, the Compensation Committee approved LTI awards comprised of bothPSUs, stock options and RSUs with each award having an equivalent grant date value (50 percent of total grant value delivered through stock options and 50 percent delivered through RSUs). Prior to 2018, the Company used an equity mix of 50 percent options and 50 percent PSUs. For 2018, the Compensation Committee decided to replace PSUs with RSUs on a one-time basis due to the complexities in determining longer term financial goals given the projected spin-off of AHS later in 2018. In 2019, the Compensation Committee returned to 50 percent PSUs combined with 30 percent options and 20 percent RSUs.

    [MISSING IMAGE: tm212361d1-pc_longpn.jpg]
    The Compensation Committee periodically reviews the equity holdings of executive officers of the Company to ensure there are appropriate levels of ownership and incentive and retention value. The Compensation Committee also reviews competitive market practice regarding the awarding of LTI awards and, following its 2020 assessment during 2018 of our executives'executives’ stock holdings and future long-term incentive opportunity, the Compensation Committee approved a LTI strategy and subsequently approved awards for the NEOs. The 20182020 equity awards are comprised of bothPSUs, stock options and RSUs, with equivalent grant date value.values equal to 50 percent for PSUs, 30 percent for stock options and 20 percent for RSUs. The specific size and value of the awards are detailed in the Summary Compensation and the Grants of Plan Based Award tables below. The Compensation Committee approved a RSU award in October 2018 to Mr. Persson to recognize his efforts leading activities
    PSU awards will be earned based on the Company’s attainment of certain levels of cumulative adjusted EPS and cumulative revenue, then modified up or down based on the total stockholder return (“TSR”) for the spin-off of AHS and for his leadership in developingCompany relative to the Company's long-term and merger and acquisition strategy. Additionally, Mr. Tibbens received two grants of RSUs, one that vests in equal installments on the first three anniversariesTSR of the grant andcompanies in our Peer Group. The performance period for which the other that has vested ornumber of PSUs earned will vest in equal installments on February 18, 2019, February 18,be a three-year period from January 1, 2020 and February 18, 2021. He also received two stock option grants, one that vests in equal installments on the first four anniversariesthrough December 31, 2022. Executive officers may earn a maximum of 200 percent of the grant andtarget award with a potential 20 percent upward adjustment if the other that has vested or will vestCompany’s TSR is in equal installments on February 18, 2019, February 18, 2010, February 18, 2021 and February 18, 2022. These grantsthe highest quartile of RSUs and stock options were convertedTSR relative to RSUs and stock options in Frontdoor stock effective October 1, 2018. The terms and conditionsthe Peer Group for an absolute maximum payout of 220 percent of the grants remained the same as the original grants prior to the conversion.

    target number of PSUs.

    Stock options awarded are nonqualified stock options with vesting generally in equal installments on the first fourthree anniversaries of the grant date. The exercise price of the stock options is the fair market value of the Company'sCompany’s common stock as defined in the Omnibus Incentive Plan. Stock option awards granted in February 2019, and options awarded in the future, will vest in equal installments on the first three anniversaries of the grant date.

    The RSU awards will generally vest in three equal installments on the first three anniversaries of the grant date. Effective July 31, 2018, PSUs previously

    On September 15, 2020, we granted retention RSUs with a fair value of $1 million each to certain executive officersMs. Scott and Mr. Rutherford. The RSUs vest on the first anniversary of the grant date, subject to continued employment through such date, and will vest on a pro rata basis if Ms. Scott or Mr. Rutherford is terminated by the Company before such date, calculated from the grant date through the date of termination. Mr. Rutherford left the Company on February 22, 2016March 15, 2021; his $1 million retention award equated to 24,589 RSUs and February 20, 2017 were cancelled by the Compensation Committee


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    of the Board of Directors duepursuant to the complexitiesterms of adjusting such awards asthat award, on March 15, 2021, a consequencepro-rated number of the planned spin-offthose units vested, entitling him to 12,194 shares of the AHS business and because the awards were tracking below payout threshold at the time of cancellation. The executive officers voluntarily agreed to the cancellation of these awards. The awards were cancelled for Mr. DiLucente and Ms. Wegner.

    Terminix common stock.

    Double Trigger Vesting Upon Change In Control

    The Company has adopted "double trigger"“double trigger” vesting acceleration in the event of a change in control of the Company, effective for all equity awards granted on or after April 23, 2018. This "double trigger"“double trigger” vesting acceleration provision was already included in our stock option agreements, but the Compensation Committee's action includesCommittee’s included this provision in all other stock awards. If the Compensation Committee reasonably determines prior to a change in control that an employeeteammate would receive an "Alternative Award"“Alternative Award” meeting the requirements of the Omnibus Incentive Plan; provided, however, that if within two years following a change in control, the employee'steammate’s employment is involuntarily (other than for cause) terminated or the employeeteammate resigns with good reason, at a time when any portion of the Alternative Award is unvested, the unvested portion of such Alternative Award shall immediately vest in full and such employeeteammate shall be provided with either cash or marketable stock equal to the fair market value of the stock subject to the Alternative Award on the date of termination.

            On the October 1, 2018 effective date of the spin-off of AHS, LTI awards were adjusted to reflect the spin-off of AHS. All stock option grants were adjusted and concentrated in the company of employment immediately post-spin. Both the number of options and the exercise price, were adjusted to provide equivalent in-the-money value post-spin as existed immediately pre-spin. Holders of outstanding RSU awards were provided an election to concentrate their RSU awards into their company of employment post-spin or to receive RSUs in Frontdoor at the distribution rate of one Frontdoor RSU for each two ServiceMaster RSUs. Messrs. Varty, DiLucente and Stevenson elected to concentrate their RSUs into ServiceMaster RSUs, and consequently, their respective RSU awards, including the number of RSUs were adjusted to provide value equivalent to the pre-spin value. Mr. Persson and Ms. Wegner elected to receive RSUs of Frontdoor as well as maintaining their original number of RSUs in ServiceMaster, consistent with the terms of their existing RSU agreements. Mr. Tibbens' RSUs were concentrated into RSUs in Frontdoor as he holds the position of President and CEO of Frontdoor. All awards listed in the Summary Compensation, Grants of Plan Based Awards (2018), Outstanding Equity Awards at Fiscal Year End (2018), and Option Exercises and Stock Vested (2018) tables reflect the applicable adjustments related to the spin-off of Frontdoor to stock option and RSU awards. All awards, whether in ServiceMaster or Frontdoor retained the same terms and conditions, including the vesting terms, as the original ServiceMaster awards. Individual awards are detailed in the Grants of Plan Based Awards table below.

    36TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    EXECUTIVE COMPENSATION
    Omnibus Incentive Plan

    Our board of directors adopted and our stockholders approved the Omnibus Incentive Plan in 2015. Our directors, officers, employeesteammates and consultants are eligible to receive awards under the Omnibus Incentive Plan. Awards under the Omnibus Incentive Plan may be made in the form of stock options, which may be either incentive stock options or non-qualified stock options; stock purchase rights; restricted stock; RSUs; performance RSUs; performance shares; PSUs; stock appreciation rights ("SARs"(“SARs”); dividend equivalents; deferred share units; and other stock-based awards.

    A total of 5,817,6814,349,999 shares of our common stock remained available for issuance under the Omnibus Incentive Plan as of December 31, 2018.2020. This figure represented approximatelyless than four percent of the shares of our common stock that were outstanding as of December 31, 2018. During any period2020. The Omnibus Incentive Plan provides that Section 162(m) of the Internal Revenue Code is applicable to us, (1) the maximum number of stock options, SARs or other awards based solely on the increase in the value of common stock that a participant may receive in any year is 2,000,000; (2) a participant may receive a maximum of 1,000,000


    Table of Contents

    performance shares, shares of performance-based restricted stock and performance-based RSUs in any year; and (3) the maximum value of performance units granted to a participant during any year may not exceed $10,000,000.

    We will continue to consider LTI awards under the Omnibus Incentive Plan on an ongoing basis to certain key employees,teammates, including our NEOs, in order to recognize outstanding performance, assumption of additional responsibilities, enhance retention or otherwise as the Compensation Committee may determine is in our best interest.

    Employee Stock Purchase Plan

    The Employee Stock Purchase Plan ("ESPP"(“ESPP”) was approved by stockholders at the 2015 Annual Meetingannual meeting in April 2015. A total of 1,000,000 shares was authorized by stockholders for issuance under the ESPP. Purchases under the ESPP were suspended in 2018 due to the pending spin-off of Frontdoor.

    The Compensation Committee amended the ESPP in February 2019 to allow for more frequent purchase periods and to change the allowed 10 percent discount to a company match of 10 percent of employeeteammate contributions. The authorized number of shares of common stock remaining in the ESPP (843,584) was not changed. The expiration date of the planESPP was not changed from April 27, 2025. We expect purchasesOur executive officers are prohibited from participating in the ESPP. As of December 31, 2020, 783,315 shares of common stock remained available for purchase under the amended ESPP period to begin in July 2019.

    ESPP.

    Retirement Benefits

            Employees,

    Teammates, including the NEOs, are generally eligible to participate in the ServiceMasterTerminix Profit Sharing and Retirement Plan, as amended and restated and, as it may be further amended from time to time (the "PSRP"“PSRP”). The PSRP is a tax qualified 401(k) defined contribution plan under which we may make discretionary matching contributions. Historically, we have provided for a matching contribution in the PSRP where employeesteammates receive a dollar for dollar match on the first one percent of their contributions, and then a $0.50 per dollar match on the next two percent to six percent contributed. Company matching contributions for the NEOs are set forth below in the All Other Compensation table.

    We also maintain the ServiceMasterTerminix Deferred Compensation Plan, as amended and restated, as it may be further amended from time to time (the "DCP"“DCP”), which is a non-qualified deferred compensation plan designed to afford certain highly compensated employeesteammates (including the NEOs, executive officers and certain other employees)teammates) the opportunity to defer additional amounts of compensation on a pre-tax basis. Messrs.Mr. DiLucente and Stevensonwas the only NEO who contributed to the DCP during 2018.

    2020.

    Employee Benefits and Executive Perquisites

    We offer a variety of health and welfare programs to all eligible employees,teammates, including the NEOs. The NEOs are eligible for the same health and welfare benefit programs on the same basis as the rest of our employees,teammates, including medical and dental care coverage, life insurance coverage and short and long-term disability.

    We limit the use of perquisites as a method of compensation and provide executive officers with only those perquisites that we believe are reasonable and consistent with our compensation goal of enabling us to attract and retain superior executives for key positions. The perquisites provided to our NEOs are memberships in social and professional clubs.

            Mr. Varty's employment agreement provided for corporate housing through July 2018 and the reimbursement of reasonable weekly commuting expenses between Detroit, Michigan and Memphis, Tennessee through July 2018.


    Table of Contents

    Our aircraft policy was amended in October 2018 to requirerequires the approval of the Chairman of the board of directorsBoard to approve personal use of the Company aircraft by the CEO. Prior to the amendment to the policy in October the CEO was required to reimburse us for personal use of the company aircraft exceeding 100 hours annually. Any amount so reimbursed to us would be applied to reduce the executive'sexecutive’s taxable income arising from the personal use. If our CEO utilizes our aircraft for non-business reasons, the amount, included as All Other Compensation on the Summary Compensation Table below, is generally calculated under the income imputation rules established by the IRS for personal use of company aircraft. These rules require the cost of each flight to be estimated by applying published IRS per mile rates based on the size of the aircraft to the total miles flown. This method of calculation was affirmed by the Compensation Committee.

            Prior to the amendment to the policy The Company sold its aircraft in October, the CEO could approve the personal use of the company aircraft by other executive officers and directors as needed. During 2018, Mr. Tibbens was authorized to use the company aircraft or a limited basis in conjunction with his hiring and move from Seattle, Washington to Memphis, Tennessee.

    September 2020.

    TERMINIX37

    EXECUTIVE COMPENSATION
    2021 ANNUAL
    PROXY STATEMENT
    Employment Arrangements

    We generally provide an executive with an offer letter prior to the time he or she joins the Company. The offer letter generally describes the basic terms of the executive'sexecutive’s employment, including his or her start date, starting salary, AIP bonus target, special bonuses (if any), relocation benefits, severance benefits (if any), sign-on bonus (if any) and equity awards granted in connection with the commencement of his or her employment. The terms of the executive'sexecutive’s employment are thereafter based on sustained good performance rather than contractual terms and our policies will apply as warranted. Under certain circumstances, we recognize that special arrangements with respect to an executive'sexecutive’s employment may be necessary or desirable. In July 2017,January 2020, we entered into an employment agreement with Mr. Gursahaney setting forth the terms of his employment as our interim CEO. Also, in January 2020, we approved a letter agreement with Mr. Varty detailing terms regarding his voluntary termination from the Company. We also entered into an agreement with Mr. DiLucente setting forth the terms of his continued service until his retirement in March 2021. In August 2020, we entered into an employment agreement with Mr. Ponton setting forth the terms of his employment as our CEO. Please see the narrative following the table in "Grants“Grants of Plan Based Awards (2018)" and the "—“— Potential Payments Upon Termination or Change in Control"Control” section for a description of the agreements with Messrs. Varty, Persson, Stevenson and Tibbens.

    our NEOs.

    Post-Termination Compensation

    Messrs. DiLucente, Persson and StevensonRutherford and Ms. WegnerScott are covered under our standard severance policy or practice as in effect at the time their employment is terminated. The standard severance policy and the terms of the post termination arrangements between us and the other NEOs are described in detail below under the "—“— Potential Payments Upon Termination or Change in Control"Control” section.

    2020 Executive Compensation Matters
    CEO Resignation
    2019Mr. Varty resigned from his position as CEO effective as of January 21, 2020. Mr. Varty and the Company entered into a letter agreement (the “Varty Letter Agreement”), effective as of January 21, 2020, setting forth the terms of Mr. Varty’s resignation and continued employment as executive advisor until February 29, 2020. The Varty Letter Agreement provides that through February 29, 2020, Mr. Varty continued to receive his salary and benefits and was eligible for continued vesting of his outstanding equity awards. Mr. Varty was not eligible to earn a bonus under the Company’s 2020 AIP.
    Interim CEO Employment Agreement
    On January 31, 2020, in connection with Mr. Gursahaney’s assumption of the role of interim CEO, the board of directors approved, and the Company entered into, an employment agreement with Mr. Gursahaney, dated January 31, 2020 (the “Gursahaney Employment Agreement”). The Gursahaney Employment Agreement provided Mr. Gursahaney with the following compensation: (1) an annual base salary of $1,000,000, subject to proration for the number of days he served as interim CEO; (2) a target annual bonus opportunity under the Company’s AIP equal to 100 percent of his annual base salary (which bonus amount was, for fiscal year 2020, not less than his target annual bonus, subject to proration for the number of days he served as interim CEO); (3) a grant of 47,620 RSUs (a grant date value equal to $1,750,000) and (4) a grant of 167,625 options to purchase Company common stock that have an exercise price of $36.75 per share (a grant date value equal to $1,750,000). The RSUs and the options vested on a pro-rated basis on Mr. Gursahaney’s termination as interim CEO, on September 14, 2020, and as a result received a pro-rated amount of 104,249 options and 29,616 RSUs, of which 11,663 were surrendered to cover withholding taxes leaving him with a net of 17,953 shares of common stock. During his time serving as interim CEO Mr. Gursahaney was also entitled to corporate housing in Memphis and use of the corporate aircraft (or other private aircraft) for commuting purposes.
    CEO Employment Agreement
    On September 15, 2020, the Company entered into an employment agreement with Mr. Ponton, dated August 4, 2020 (the “Ponton Employment Agreement”). The Ponton Employment Agreement provides Mr. Ponton with the following compensation: (1) an annual base salary of $975,000; (2) a target annual bonus opportunity under the Company’s AIP equal to 100 percent of his annual base salary (which bonus amount will, for fiscal year 2020, be no less than his target annual bonus, subject to proration for the number of days he serves as CEO); (3) a make-whole bonus of $520,000 to compensate Mr. Ponton for the loss of his annual bonus at his previous company; (4) a grant of 5,194 RSUs (a grant date value equal to $211,240); (5) a grant of 22,142 options to purchase Company common stock that have an exercise price of $40.67 per share (a grant date value equal to $316,852) and (6) a grant of 12,985 PSUs (a grant date value equal to $528,100) that are earned based on the Company’s performance during the period 2020-2022. The RSUs and the options shall vest vest in equal installments on the first three anniversaries of the grant date. The 2020 equity awards for Mr. Ponton were based on a pro-rated equity grant on his start date equal to approximately 33 percent of his annual equity award value in the same form and subject to the same vesting criteria applicable to the 2020 equity grants made to other senior executives (i.e., 50 percent PSUs, 30 percent stock options and 20 percent RSUs), valued at approximately $1,056,192. Mr. Ponton received a grant of equity awards of approximately $3.2 million in March 2021.
    38TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    Compensation Committee Report
    Other NEO Compensation Matters
    In order to retain the services of Mr. DiLucente while the Company sought a new CEO, the Company entered into a retention agreement with Mr. DiLucente to ensure the Company had the benefit of his continued service and leadership. Mr. DiLucente held the title of Chief Financial Officer of the Company until March 4, 2021, at which time Mr. Riesbeck was appointed as the new Chief Financial Officer. The retention agreement provided that Mr. DiLucente continued to receive his current base salary and incentive compensation through March 31, 2021, and a payment of (1) one year’s base salary and (2) his target annual bonus under the Company’s 2021 incentive plan upon his retirement.
    In January 2020, the Company decided to explore strategic alternatives for its ServiceMaster Brands reporting segment, including a potential sale of the segment. The Company determined that the continued leadership of Dion Persson, Senior Vice President, Business Development, was important with respect to any potential transaction related to ServiceMaster Brands. In order to retain his services, on January 28, 2020, the Compensation Committee approved a retention agreement for Mr. Persson that provided he would receive a cash retention award of $225,000, and subsequently increased the payment to $450,000. The increase in payment was due, in part, to Mr. Persson’s leadership in securing a successful sale of the ServiceMaster Brands business in spite of the challenges presented by the COVID-19 pandemic. Payment of the retention award was made to Mr. Persson on October 1, 2020 when the sale was consummated.
    2021 Long-Term Incentive Awards

    In the first quarter of 2019,2021, the Compensation Committee approved the grant of the equity awards set forth in the table below to ourthe NEOs listed below (weighted 50 percent PSUs, 30 percent stock options and 20 percent RSUs). The PSUs have a performance period of three years, 20192021 through 2021,2023, based on the achievement of cumulative adjusted earnings per share and cumulative revenue goals, with a modifier based on total shareholder return ("TSR")TSR relative to companies in our peer group.Peer Group. Any payout earned under the PSU award will be settled in the first quarter of 2022.2024. The stock options are scheduled to vest and become exercisable in equal installments on the first three anniversaries of the grant date, subject to the NEO'sNEO’s continued employment with the Company. The RSUs will vest in equal installments on the first three anniversaries of the grant date. After granting stock optionsMessrs. DiLucente and RSUsRutherford did not receive any awards as they left the Company in 2018 due to the complexity of the then expected spin-off of AHS, the Compensation Committee decided to return to the use of PSUs to ensure executive officers alignment with specific

    March 2021.
    Named Executive Officer
    Number of
    PSUs
    Number of
    Stock Options
    Number of
    RSUs
    Brett T. Ponton34,47359,90113,790
    Dion Persson6,12010,6342,448
    Kim Scott10,88018,9044,352

    Table of Contents

    performance goals that are expected to deliver increased shareholder value, while also providing significant reward opportunity for the executive officer.

    Named Executive Officer
     Number of
    PSUs
     Number of
    Stock Options
     Number of
    RSUs
     

    Nikhil M. Varty

      49,951  100,756  19,981 

    Anthony D. DiLucente

      11,302  22,796  4,521 

    Dion Persson

      7,493  15,114  2,998 

    Matthew J. Stevenson

      8,742  17,633  3,497 

    Mary Kay Wegner

      7,493  15,114  2,998 


    Compensation Committee Report

    The Company'sCompany’s Compensation Committee has reviewed the Compensation Discussion and Analysis and discussed it with management and, based on such review and discussions, has recommended to the board of directors that the Compensation Discussion and Analysis should be included in this Proxy Statement.

    John B. CornessDeborah H. Caplan (Chair)
    Laurie Ann Goldman
    Naren K. Gursahaney
    Steven B. Hochhauser
    Stephen J. Sedita
    Mark E. Tomkins

    This Compensation Committee Report is required by the SEC and, in accordance with the SEC'sSEC’s rules, will not be deemed to be part of or incorporated by reference by any general statement incorporating by reference this proxy statement into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except to the extent that we specifically incorporate this information by reference, and will not otherwise be deemed "soliciting material"“soliciting material” or "filed"“filed” under either the Securities Act or the Exchange Act.
    TERMINIX

    39

    Executive Compensation Tables

    [MISSING IMAGE: lg_termnixbar-pms.jpg]
    Summary Compensation Table

    Name and Principal
    Position
    Year
    Salary
    ($)
    Bonus
    ($)
    Stock
    Awards ($)(1)
    Option
    Awards ($)(1)
    Non-Equity
    Incentive Plan 
    Compensation
    ($)(2)
    All Other
    Compensation
    ($)(3)
    Total
    ($)
    Brett T. Ponton
    Chief Executive Officer
    2020288,068805,822(4)739,340316,85232,87055,8622,238,814
    Anthony D. DiLucente
    Former Senior Vice President and Chief Financial Officer
    2020521,875700,101300,013407,32310,1481,939,460
    2019517,500633,553271,500220,80016,4081,659,761
    2018513,125450,018450,016419,12320,5741,852,856
    Dion Persson
    Senior Vice President and
    Interim General Counsel
    2020450,000450,000(5)420,061180,014301,05010,1481,811,273
    2019450,000420,060180,008143,1009,9731,203,141
    2018408,333850,032450,016300,37552,2072,060,963
    Gregory L. Rutherford
    Former President, Terminix
    Commercial
    2020460,000150,000(6)1,515,260220,801299,19110,1482,655,400
    2019292,727449,000(7)600,0386,2481,348,013
    Kim Scott
    Chief Operating Officer
    2020525,000341,250(8)1,551,319236,25563,55810,0172,727,399
    Naren K. Gursahaney
    Former Interim Chief Executive Officer
    2020559,6591,750,0351,750,005723,986456,9915,240,676
    Nikhil M. Varty
    Former Chief Executive Officer
    2020166,6676,442173,109
    20191,000,0002,800,0771,200,004265,0002,6375,267,718
    20181,000,0001,750,0381,750,002890,000136,7695,526,809
    Name and Principal Position
     Year Salary
    ($)
     Bonus
    ($)
     Stock
    Awards
    ($)(1)
     Option
    Awards
    ($)(1)
     Non-Equity
    Incentive Plan
    Compensation
    ($)(2)
     All Other
    Compensation
    ($)(3)
     Total
    ($)
     

    Nikhil M. Varty

      2018  1,000,000     1,750,038  1,750,002  890,000  136,769  5,526,809 

    Chief Executive Officer

      2017  431,818  431,818  2,000,007  1,250,005    42,966  4,156,614 

    Anthony D. DiLucente

      2018  513,125     450,018  450,016  419,123  10,336  1,842,618 

    Senior Vice President and Chief Financial Officer

      2017  446,354     1,100,045  373,443  350,000  30,787  2,300,629 

    Dion Persson

      2018  408,333     850,032  450,016  300,375  52,207  2,060,963 

    Senior Vice President, Business Development

                             

    Matthew J. Stevenson

      2018  431,250     400,040  400,008  305,663  44,019  1,580,980 

    President, Terminix Residential

                             

    Mary Kay Wegner

      2018  425,000     400,040  400,008  288,405  14,031  1,527,484 

    President, ServiceMaster Brands

      2017  425,000     800,061  350,101  415,000  9,788  1,999,950 

      2016  396,250    475,058  225,007  172,000  8,155  1,276,470 

    Rexford J. Tibbens

      2018  300,000  300,000(4) 1,625,068(5) 1,625,022(5)   73,213  3,923,303 

    President and CEO, frontdoor, inc.

                             

    (1)
    (1)
    The amounts in these columns reflect the aggregate grant date fair value of the PSUs, RSUs and stock options awarded. For Mr. Gursahaney, the amounts reflect the grant date value of RSUs and stock options, even though only a pro-rated amount vested as of September 14, 2020. The assumptions used in the valuation of the PSUs, RSUs and stock option awards are disclosed in the Stock-Based Compensation footnote to the audited financial statements included in Item 8 of the 20182020 Form 10-K.
    (2)

    (2)
    Annual bonuses for 20182020 were based on Adjusted EBITDA, revenue, customer countretention, termite damage claims mitigation goals and other individual performance criteria approved by the Compensation Committee.
    (3)

    (3)
    Amounts in this column for 20182020 are detailed in the All Other Compensation (2018)(2020) table below.
    (4)

    (4)
    Mr. Tibbens'Ponton received a cash sign-on bonus of $520,000 paid in 2020 as part of his offer of employment and received a guaranteed annual bonus payment at a minimum of 100% of his target bonus opportunity. The amount of his bonus above the 100% guarantee due to performance exceeding plan goals is listed in the Non-Equity Incentive Plan Compensation column.
    (5)
    Mr. Persson received a cash award paid in 2020 related to the sale of the ServiceMaster Brands business.
    (6)
    Mr. Rutherford was paid the second installment of his sign-on bonus in the amount of $150,000 during 2020.
    (7)
    Mr. Rutherford’s annual bonus was guaranteed at his target payout level prorated for his service with the Company (May 15, 2018 - September 30, 2018). Information regarding his total compensation for 2018 can be foundfull 2019 performance year.
    (8)
    Ms. Scott received a guaranteed annual bonus payment at a minimum of 100% of her target bonus opportunity. The amount of her bonus above the 100% guarantee due to performance exceeding plan goals is listed in the Form S-1 registration statement filed February 1, 2019 by Frontdoor.

    (5)
    The RSU and stock option awards were granted to Mr. Tibbens consistent with his employment agreement. The values listed are the fair value of the ServiceMaster awards at the time of the grants. These RSUs and stock options have been converted to RSUs and options of Frontdoor stock following the spin-off.
    Non-Equity Incentive Plan Compensation column.
    40TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    Executive Compensation Tables
    All Other Compensation (2018)(2020)

    Named Executive Officer
    Perquisites and
    Other Personal
    Benefits
    ($)
    Relocation
    Expenses
    ($)
    Company Paid
    Life Insurance
    Premiums
    ($)
    Company
    Contributions
    to PSRP
    ($)(1)
    Tax
    Payment(s)
    ($)(2)
    Total
    ($)
    Brett T. Ponton32,992431,42221,40555,862
    Anthony D. DiLucente1739,97510,148
    Dion Persson1739,97510,148
    Gregory L. Rutherford1739,97510,148
    Kim Scott1739,84410,017
    Naren K. Gursahaney300,099(3)(4)(5)1011,458155,333456,991
    Nikhil M. Varty6,413(6)296,442
    Named Executive Officer
     Perquisites
    and Other
    Personal
    Benefits
    ($)
     Relocation
    Expenses
    ($)
     Company Paid
    Life Insurance
    Premiums
    ($)
     Company
    Contributions
    to PSRP
    ($)(1)
     Tax
    Payment(s)
    ($)(2)
     Total
    ($)
     

    Nikhil M. Varty

      17,530(3)(9) 66,276  338  9,625  43,000  136,769 

    Anthony D. DiLucente

      226(4)   338  9,625  147  10,336 

    Dion Persson

      605(5) 24,870  338  9,625  16,769  52,207 

    Matthew J. Stevenson

      3,538(6) 17,125  324  9,625  13,407  44,019 

    Mary Kay Wegner

      2,538(7)   338  9,625  1,530  14,031 

    Rexford J. Tibbens

      12,164(8)(9) 30,040  56  2,000  28,953  73,213 

    (1)
    (1)
    The PSRP is our tax-qualified retirement savings plan.
    (2)

    (2)
    The numbersamounts disclosed in this column reflect the tax gross-up for relocation expenses consistent with the Company'sCompany’s relocation policy relating to the hire of Messrs. Varty, Persson, Stevenson and TibbensMr. Ponton and the tax gross-up for the non-business use of the companyCompany aircraft or commercial airlines by nonemployees, including spouses,Mr. Gursahaney.
    (3)
    Mr. Gursahaney’s amount includes $276,048 for Ms. Wegner and Mr. Tibbens.

    (3)
    Mr. Varty's number includes the use of the corporateCompany and commercial aircraft for business entertainment ($10,700) and reimbursement for use of commercial airlines ($6,830) for commuting between Detroit and Memphis.

    (4)
    Mr. DiLucente's number includes reimbursement for use of commercial airlines for non-business reasons between Cleveland and Memphis.

    (5)
    Mr. Persson's number includes reimbursement for use of commercial airlines for non-business reasons between San Francisco and Memphis.

    (6)
    Mr. Stevenson's number includes reimbursement for use of commercial airlines for commuting between Detroit and Memphis.

    (7)
    Ms. Wegner's number includes income for use of commercial airlines for an accompanying non-employee guest traveling to a business function.

    (8)
    Mr. Tibbens' number includes non-business use of the corporate aircraft, including travel forfrom his spouse, related to his movehome in Florida to Memphis from Seattle ($11,821) and reimbursement for useduring the period he was serving as interim CEO.
    (4)
    Mr. Gursahaney’s amount includes the payment of commercial airlines ($343) traveling from Seattle to Memphis.his accrued, unused vacation in the amount of $24,051 upon his leaving his position of interim CEO.
    (5)

    (9)
    The incremental cost of the use of the Company aircraft included in the table above is calculated based on the variable operating costs to ServiceMaster,Terminix, including fuel costs, mileage, trip related maintenance, universal weather monitoring costs, on board catering, lamp/ramp fees and other miscellaneous variable costs based on occupied seat hours. Fixed costs, which do not change based on usage, such as pilot salaries, depreciation and the cost of maintenance not related to trips are excluded. The compensation for personal use of the Company aircraft calculated based on the variable operating costs incurred is typically greater than the amount calculated under the income imputation rules established by the IRS for personal use of company aircraft. The aggregate cost of other perquisites and personal benefitsthe use of charter aircraft is measured on the basis of the actual cost to the Company. The Company sold the corporate aircraft in September 2020.

    (6)
    This amount represents the accrued, unused vacation payable to Mr. Varty upon his resignation from the Company.
    TERMINIX41

    Executive Compensation Tables
    2021 ANNUAL
    PROXY STATEMENT
    Grants of Plan Based Awards (2018)(2020)

    The amounts listed in the table below in the column entitled Estimated Future Payouts Under Non-Equity Incentive Plan Awards represent the potential 20182020 earnings under the AIP, which is a non-equity incentive plan. The threshold amount is the minimum earned amount if threshold


    Table of Contents

    performance is attained for all performance measures. The plan provides for a maximum payout underequal to 300 percent of the plan is the amount calculated under the EABP. For 2018, theexecutive’s target award, 200 percent maximum is $6.22 million. As noted above,funding plus up to 150 percent individual modifier as determined by the Compensation Committee terminated the EABP on February 18, 2019.Committee. Additional information is discussed in "Compensation“Compensation Discussion and Analysis—Annual Incentive Plan"Plan” above. All stock option and RSU awards listed reflect the adjustment resulting from the spin-off of AHS. Additional detail is provided in "Compensation“Compensation Discussion and Analysis—Long-Term Equity Awards"Awards” above.

    Estimated Future Payouts Under
    Non-Equity Incentive Plan Awards
    Estimated Future Payouts Under
    Equity Incentive Plan Awards(2)
    All Other
    Stock
    Awards:
    Number of
    Shares of
    Stock
    (#)(3)
    All Other
    Option
    Awards:
    Number of
    Securities
    Underlying
    Options
    (#)(4)
    Exercise or
    Base Price
    of Option
    Awards
    ($/Sh)
    Grant Date
    Fair Value
    of Stock
    and Option
    Awards(5)
    Named Executive OfficerGrant Date
    Threshold
    ($)
    Target
    ($)
    Maximum
    ($)(1)
    Threshold
    (#)
    Target
    (#)(2)
    Maximum
    (#)
    Brett T. PontonN/A142,911285,822571,644
    9/15/20206,49312,98525,970528,100
    9/15/20205,194211,240
    9/15/202022,14240.67316,852
    Anthony D. DiLucenteN/A182,657365,313730,626
    3/4/20206,87913,75727,514500,067
    3/4/20205,503200,034
    3/4/202026,53936.35300,013
    Dion PerssonN/A135,000270,000540,000
    3/4/20204,1278,25416,508300,033
    3/4/20203,302120,028
    3/4/202015,92436.35180,014
    Gregory L. RutherfordN/A149,500299,000598,000
    3/4/20205,06210,12420,248368,007
    3/4/20204,050147,218
    3/4/202019,53236.35220,801
    9/15/202024,5891,000,035
    Kim ScottN/A170,625341,250682,500
    3/4/20205,41710,83321,666393,780
    3/4/20204,333157,505
    3/4/202020,89936.35236,255
    9/15/202024,5891,000,035
    Naren K. GursahaneyN/A324,658649,3151,298,630
    1/31/202047,6201,750,035
    1/31/2020167,62536.751,750,000
    Nikhil M. VartyN/A
     
      
      
      
      
      
     All Other
    Option
    Awards:
    Number of
    Securities
    Underlying
    Options
    (#)(3)(4)
      
      
     
     
      
     Estimated Future Payouts
    Under Non-Equity Incentive
    Plan Awards
     All Other
    Stock Awards:
    Number of
    Shares of
    Stock
    (#)(2)(3)
      
      
     
     
      
     Exercise or
    Base Price
    of Option
    Awards
    ($/Sh)
     Grant Date
    Fair Value of
    Stock and
    Option
    Awards(8)
     
    Named Executive Officer
     Grant Date Threshold
    ($)
     Target
    ($)
     Maximum
    ($)(1)
     

    Nikhil M. Varty

     N/A  500,000  1,000,000  6,220,000             

     2/18/2018           47,216        1,750,038 

     2/18/2018              145,459  37.07  1,750,002 

    Anthony D. DiLucente

     N/A  181,125  362,250  6,220,000             

     2/18/2018           12,141        450,018 

     2/18/2018              37,405  37.07  450,016 

    Dion Persson

     N/A  135,000  270,000  6,220,000             

     2/18/2018           8,221(5)       450,018 

     2/18/2018              37,359  37.07  450,016 

     10/23/2018           9,046        400,014 

    Matthew J. Stevenson

     N/A  146,250  292,500  6,220,000             

     2/18/2018           10,793        400,040 

     2/18/2018              33,248  37.07  400,008 

    Mary Kay Wegner

     N/A  138,125  276,250  6,220,000             

     2/18/2018           7,308(5)       400,040 

     2/18/2018              33,248  37.07  400,008 

    Rexford J. Tibbens

     N/A  N/A  300,000  6,220,000             

     5/15/2018           16,369(6)(7)       625,031 

     5/15/2018              87,122(6) 38.19  1,000,008 

     5/15/2018           26,191(6)       1,000,038 

     5/15/2018              54,452(6)(7) 38.19  625,014 

    (1)
    (1)
    Represents the calculation of the annual bonus under the EABP.2020 AIP at 200 percent of target.
    (2)
    Represents PSUs, which are earned based on performance and vest following the three-year performance period (2020—2022). Maximum payout under the performance share units is 220 percent.
    (3)
    (2)
    Represents RSUs granted March 4, 2020 that will vest in equal installments on the first three anniversaries of the grant date, assuming continued service.

    (3)
    All figures have been adjustedservice, except the award to Mr. Gursahaney that vested in a prorated amount upon his termination as interim CEO of 29,616 RSUs, with 11,663 shares surrendered to cover withholding taxes, leaving Mr. Gursahaney with a resultnet amount of the spin-off17,953 shares of Frontdoor effective October 1, 2018.common stock.
    (4)

    (4)
    Represents nonqualified stock options that will vest in equal installments on the first fourthree anniversaries of the grant date, assuming continued service.

    (5)
    In conjunction withservice, except the spin-offaward to Mr. Gursahaney that vested in a prorated amount upon his termination as interim CEO of Frontdoor, Mr. Persson and Ms. Wegner elected to receive RSUs in both ServiceMaster and Frontdoor. The figures listed represent only the RSUs in ServiceMaster. They also hold the following RSUs in Frontdoor: Mr. Persson (4,110) and Ms. Wegner (3,654). The RSUs in both ServiceMaster and Frontdoor have the same vesting provisions as the original award.104,249 options.
    (5)

    (6)
    RSU and stock option awards for Mr. Tibbens, while originally granted as ServiceMaster RSUs and stock options, have been converted into RSUs and stock options of Frontdoor as result of the spin-off of Frontdoor.

    (7)
    The RSUs and stock options have vesting dates beginning on February 18, 2019, with RSUs continuing to vest on February 18, 2020 and 2021, respectively, and stock options continuing to vest on February 18, 2020, 2021 and 2022, respectively.

    (8)
    The amounts in this column reflect the aggregate grant date fair value of PSUs, options and RSUs detailed in the prior columns. The assumptions used in the valuation of PSUs, stock options and RSU awards are disclosed in the Stock-Based Compensation footnote to the audited financial statements included in Item 8 of the 20182020 Form 10-K.
    42TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    Executive Compensation Tables
    Table of Contents

    Employment Arrangements

    Employment Agreement with Mr. Varty

            On July 26, 2017, we announced that Nikhil M. Varty had been elected to serve as our CEO pursuant to an employment agreement with us. Mr. Varty's employment agreement is initially for a term of three years subject to automatic one year renewals thereafter, absent termination notice by either party. Under his employment agreement, Mr. Varty received an initial annual base salary of $1 million and a target annual incentive bonus opportunity of 100 percent of his base salary. Mr. Varty's employment agreement provides for corporate housing through the first anniversary of his hire date and the reimbursement of reasonable weekly commuting expenses between Detroit, Michigan and Memphis, Tennessee through the first anniversary of his hire date. Mr. Varty's employment agreement provides for annual long-term equity awards with a grant value equal to 350 percent of his base salary for 2018 and 2019. Mr. Varty's employment agreement also provides for severance benefits as described below under "Potential Payments Upon Termination or Change in Control." A failure by us to renew the agreement will constitute a termination of Mr. Varty's employment without cause for purposes of his severance benefits.

    Employment Agreement with Mr. Tibbens

            On May 15, 2018, Mr. Tibbens was hired as the President and CEO of AHS in anticipation of the spin-off of AHS pursuant to an employment agreement. Mr. Tibbens' employment agreement is initially for a term of four years subject to automatic one year renewals thereafter, absent termination notice by either party. Under his employment agreement, Mr. Tibbens received an initial annual base salary of $800,000 and a target annual incentive bonus opportunity of 100 percent of his base salary. Mr. Tibbens' employment agreement also provides for severance benefits, which have not been executed as he continues as the President and CEO of Frontdoor, a publicly traded company, following the spin-off of AHS.

    Equity Awards

    As noted in the Compensation Discussion and Analysis, on February 18, 2018,March 4, 2020, the Compensation Committee approved the grant of the equity awards set forth in the table below to our NEOs. The stockPSUs will be earned over the three-year performance period (2020-2022). Stock options are scheduled to vest and become exercisable in equal annual installments on the first fourthree anniversaries of the grant date, subject to the NEO'sNEO’s continued employment with the Company. The stock options awarded on February 18, 2018March 4, 2020 have an exercise price of $37.07$36.35 per share. The Compensation Committee also approved RSUs that vest in equal annual installments on the first three anniversaries of the grant date, subject to the NEO'sNEO’s continue employment with the Company. The Compensation Committee approved RSUs and stock options and RSUson January 31, 2020 for Mr. TibbensGursahaney as part of his employment agreement. TheseThe Compensation Committee approved PSUs, RSUs and stock options on September 15, 2020 to Mr. Ponton as part of his employment agreement. RSU awards were approved withby the Compensation Committee for Mr. Rutherford and Ms. Scott on September 15, 2020 to retain their services during a grant dateperiod of May 15, 2018. The stock options awarded to Mr. Tibbens are scheduled totransition for the Company. These awards will vest and become exercisable in equal annual installments on the first four anniversariesanniversary of the grant date, for one grant, with a secondassuming continued employment.
    Named Executive Officer
    Number of
    PSUs
    Number of
    Stock Options
    Number of
    RSUs
    Brett T. Ponton12,98522,1425,194
    Anthony D. DiLucente13,75726,5395,503
    Dion Persson8,25415,9243,302
    Gregory L. Rutherford10,12419,53228,639
    Kim Scott10,83320,89928,922
    Naren K. Gursahaney167,62547,620
    Nikhil M. Varty
    All PSUs, stock option grant vesting and becoming exercisable in equal installments beginning on February 18, 2019 and the next three anniversaries of the February 18 initial vest date, subject to his continued employment with the Company. The stock options awarded on May 15, 2018 have an exercise price based on a Frontdoor stock price of $38.19 per share. Mr. Tibbens also received two RSU awards. The first will vest in equal installments on the first three anniversaries of the grant date, and the second award will vest in three equal annual installments beginning on February 18, 2019 and the next two anniversaries of the February 18 initial vest date. Mr. Persson also received an additional RSU award on October 23,


    Table of Contents

    2018 to recognize his efforts leading activities for the spin-off of AHS and for his leadership in developing the Company's long-term and merger and acquisition strategy.

    Named Executive Officer
     Number of
    Stock Options
     Number of
    RSUs
     

    Nikhil M. Varty

      145,459  47,216 

    Anthony D. DiLucente

      37,405  12,141 

    Dion Persson(1)

      37,359  17,267 

    Matthew J. Stevenson

      33,248  10,793 

    Mary Kay Wegner(1)

      33,248  7,308 

    Rexford J. Tibbens(2)

      141,574  42,560 

    (1)
    Mr. Persson and Ms. Wegner elected to receive RSUs in Frontdoor as well as maintaining the original number of RSUs in ServiceMaster in connection with the spin-off of Frontdoor.

    (2)
    These awards converted to Frontdoor equity awards as of October 1, 2018

            All stock options, restricted shares and RSUs currently held by the NEOs are shown in the "Outstanding“Outstanding Equity Awards at Fiscal Year End (2018)"(2020)” table below.

    The Omnibus Incentive Plan and an employee stock option agreement govern each option award and provide, among other things, that the options vest in equal installments on the first four anniversaries of the grant dates for options granted prior to 2019 and generally vest in equal installments on the first three anniversaries of the grant dates for options granted in 2019 and later, subject to continued employment through each applicable vesting date. The Omnibus Incentive Plan and an RSU award agreement govern each RSU award and provide, among other things, that the RSUs generally vest in equal installments on the first three anniversaries of the grant dates, subject to continued employment through each applicable vesting date. Holders of RSUs have no rights as stockholders, including voting rights. Holders of RSUs are, however, entitled to dividend equivalents if a dividend is declared on our common stock. See "Potential“Potential Payments Upon Termination or Change in Control"Control” below for information regarding the cancellation or acceleration of vesting of stock options and RSUs upon certain terminations of employment or a change in control.

    TERMINIX43


    Executive Compensation Tables
    2021 ANNUAL
    PROXY STATEMENT
    Outstanding Equity Awards at Fiscal Year End (2018)(2020)

    Option AwardsStock AwardsPerformance Stock Awards
    Named Executive OfficerGrant Date
    Number of
    Securities
    Underlying
    Unexercised
    Options (#)
    Exercisable
    (1)
    Number of
    Securities
    Underlying
    Unexercised
    Options (#)
    Unexercisable
    (1)
    Option
    Exercise
    Price
    ($)
    Option
    Expiration
    Date
    Number of
    Units of
    Stock That
    Have Not
    Vested
    (#)(2)
    Market
    Value of
    Units of
    Stock That
    Have Not
    Vested
    ($)(3)
    Equity
    Incentive Plan 
    Awards:
    Number of
    Unearned
    Units That
    Have Not Yet
    Vested
    (#)(4)
    Equity
    Incentive Plan 
    Awards:
    Market
    Value of
    Unearned
    Units That
    Have Not Yet
    Vested
    (#)(3)(4)
    Brett T. Ponton9/15/202022,14240.679/15/20285,194264,9466,493331,208
    Anthony D. DiLucente2/20/201711,20826.012/20/2027
    2/18/201818,70437.072/18/20284,047206,437
    2/18/201915,19740.042/18/20273,014153,7445,651288,258
    3/4/202026,53936.353/4/20285,503280,7086,879350,898
    Dion Persson2/18/201818,67918,68037.072/18/2028
    10/22/20183,015153,795
    2/18/20195,03810,07640.042/18/20271,998101,9183,747191,134
    3/4/202015,92436.353/4/20283,302168,4354,127210,518
    Gregory L. Rutherford5/13/201911,201571,363
    3/4/202019,53236.353/4/20284,050206,5915,062258,213
    9/15/202024,5891,254,285
    Kim Scott12/4/201910,256523,159
    3/4/202020,89936.353/4/20284,333221,0265,417276,321
    9/15/202024,5891,254,285
    Naren K. Gursahaney(5)1/31/2020104,24936.751/31/2028
    Nikhil M. Varty(6)N/A
     
      
     Option Awards Stock Awards 
    Named Executive Officer
     Grant Date Number of
    Securities
    Underlying
    Unexercised
    Options (#)
    Exercisable(1)
     Number of
    Securities
    Underlying
    Unexercised
    Options (#)
    Unexercisable(1)
     Option
    Exercise
    Price
    ($)
     Option
    Expiration
    Date
     Number of
    Units of
    Stock That
    Have Not
    Vested
    (#)(2)
     Market
    Value of
    Units of
    Stock That
    Have Not
    Vested
    ($)(3)
     

    Nikhil M. Varty

      7/26/2017  37,012  111,037  28.56  7/26/2027      

      2/18/2018  0  145,459  37.07  2/18/2028  47,216  1,734,716 

    Anthony D. DiLucente

      1/24/2017          6,558  240,941 

      2/20/2017  11,208  33,624  26.01  2/20/2027       

      2/18/2018  0  37,405  37.07  2/18/2028  12,141  446,060 

    Dion Persson

      2/18/2018  0  37,359  37.07  2/18/2028  8,221(4) 302,040 

      10/22/2018          9,046  332,350 

    Matthew J. Stevenson

      10/23/2017          6,890  253,139 

      2/18/2018  0  33,248  37.07  2/18/2028  10,793  396,535 

    Mary Kay Wegner

      2/22/2016  6,119  12,237  26.81  2/22/2026     

      11/29/2016              2,151(4) 79,028 

      2/20/2017  10,508  31,522  26.01  2/20/2027     

      2/18/2018  0  33,248  37.07  2/18/2028  7,308(4) 268,496 

    Rexford J. Tibbens

      5/15/2018  0  87,122(5) 38.19  5/15/2028  26,191(5) 696,943 

      5/15/2018  0  54,452(5) 38.19  5/15/2028  16,369(5) 435,579 

    (1)
    (1)
    Represents options to purchase shares of common stock granted under the Omnibus Incentive Plan. Options become exercisable on the basis of passage of time and continued employment over a four-year period with one-fourth becoming exercisablefor options granted prior to 2019 and generally vest in equal installments on each anniversary followingthe first three anniversaries of the grant dates for options granted in 2019 and later, subject to continued employment through each applicable vesting date.
    (2)

    (2)
    Represents RSUs to be settled in common stock granted under the Omnibus Incentive Plan.
    (3)

    (3)
    Fair
    Represents the fair market value as of December 31, 20182020 of $36.74$51.01 per share.
    (4)
    Represents the number and market value of PSUs at the threshold payout level. PSUs are earned based on the level of achievement of a cumulative revenue and a cumulative adjusted EPS target for performance years 2019-2021 and will vest at the end of 2021 for the grant on February 18, 2019. PSUs granted on March 4, 2020 will be earned based on the level of achievement of a cumulative revenue and a cumulative adjusted EPS target for performance years 2020-2022 and will vest at the end of 2022. Maximum payout under the performance share for ServiceMasterunits is 200 percent of the target award.
    (5)
    Unvested stock options and in the case ofRSUs were canceled upon Mr. Tibbens, $26.61 for Frontdoor.

    (4)
    In conjunction with the spin-off of AHS, Mr. Persson and Ms. Wegner elected to receive RSUs in both ServiceMaster and Frontdoor. The figures listed represent only the RSUs in ServiceMaster. They also hold the following RSUs in Frontdoor: Mr. Persson (4,110) and Ms. Wegner (1,076 and 3,654). The RSUs in both ServiceMaster and Frontdoor have the same vesting provisionsGursahaney’s resignation as the original award.interim CEO on September 14, 2020.
    (6)

    (5)
    RSU and
    Unvested stock option awards for Mr. Tibbens, while originally granted as ServiceMasteroptions, RSUs and stock options, have been converted into RSUs and stock options in Frontdoor as a result ofPSUs were canceled upon Mr. Varty’s departure from the spin-off of AHS.Company on February 29, 2020.
    44TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    Executive Compensation Tables
    Option Exercises and Stock Vested (2018)(2020)

    Option AwardsStock Awards
    Named Executive Officer
    Number of
    Shares
    Acquired on
    Exercise
    (#)
    Value
    Realized on
    Exercise
    ($)
    Number of
    Shares
    Acquired on
    Vesting
    (#)(1)
    Value
    Realized on
    Vesting
    ($)(2)
    Brett T. Ponton
    Anthony D. DiLucente54,964985,7738,832331,236
    Dion Persson6,755282,493
    Gregory L. Rutherford
    Kim Scott5,129255,065
    Naren K. Gursahaney29,6161,184,344
    Nikhil M. Varty74,024522,71322,400843,584
     
     Option Awards Stock Awards 
    Named Executive Officer
     Number of
    Shares
    Acquired on
    Exercise (#)
     Value
    Realized on
    Exercise ($)
     Number of
    Shares
    Acquired on
    Vesting (#)(1)
     Value
    Realized on
    Vesting ($)(2)
     

    Nikhil M. Varty

          70,028  2,917,191 

    Anthony D. DiLucente

          19,038  781,780 

    Dion Persson(3)

          8,482  356,244 

    Matthew J. Stevenson

          3,455  151,821 

    Mary Kay Wegner(3)

          19,612  788,793 

    Rexford J. Tibbens

             

    (1)
    (1)
    Reflects the vesting of RSUs in 2018.2020, for Messrs. Varty, DiLucente, Persson, Gursahaney and StevensonVarty and Ms. WegnerScott. These NEOs elected to surrender a portion of the shares that settled upon vesting of the RSUs to satisfy tax withholding obligations, resulting in net shares of 48,616, 12,604, 5,027, 2,5626,474; 5,579; 17,953; 13,327; and 11,686,2,857, respectively.
    (2)

    (2)
    The figures in this column represent the number of RSUs vesting multiplied by the fair market value of Company stock on the date of vesting.

    (3)
    Mr. Persson and Ms. Wegner also received also acquired shares of Frontdoor stock upon the vesting of RSUs for which they had elected to receive RSU awards in both ServiceMaster and Frontdoor. Mr. Persson had 4,241 RSUs of Frontdoor vest with a value realized on vesting of $173,881 and surrendered 1,636 shares to satisfy tax withholding obligations. Ms. Wegner had 6,113 RSUs of Frontdoor vest with a value realized upon vesting of $230,789 and surrendered 2,376 shares to satisfy tax withholding obligations.

    Nonqualified Deferred Compensation Plans

    The table below sets forth information regarding the NEO'seach NEO’s deferred compensation. Messrs.Mr. DiLucente and Stevenson participated in the DCP during 2018.2020. Details are listed on the following table.

    Nonqualified Deferred Compensation (2018)(2020)

    Named Executive Officer
    Executive
    Contributions
    in Last FY
    ($)(1)
    Company
    Contributions
    in Last FY
    ($)(2)
    Aggregate
    Earnings in
    Last FY
    ($)(3)
    Aggregate
    Withdrawals/
    Distributions
    ($)
    Aggregate
    Balance at
    Last FYE
    ($)
    Brett T. Ponton
    Anthony D. DiLucente165,600148,6781,285,107
    Dion Persson
    Gregory L. Rutherford
    Kim Scott
    Naren K. Gursahaney
    Nikhil M. Varty
    Named Executive Officer
     Executive
    Contributions
    in Last FY
    ($)(1)
     Company
    Contributions
    in Last FY
    ($)(2)
     Aggregate
    Earnings in
    Last FY
    ($)(3)
     Aggregate
    Withdrawals/
    Distributions
    ($)
     Aggregate
    Balance at
    Last FYE
    ($)
     

    Nikhil M. Varty

               

    Anthony D. DiLucente

      278,125    (14,595)   538,766 

    Dion Persson

               

    Matthew J. Stevenson

      54,844    (2,600)   63,936 

    Mary Kay Wegner

               

    Rexford J. Tibbens

               

    (1)
    (1)
    Amounts shown in this column for Messrs.Mr. DiLucente and Stevenson are included in the Summary Compensation Table as 20182020 Salary and Non-Equity Incentive Plan Compensation.
    (2)

    (2)
    Matching contributions to the DCP were not made in 2018.2020.
    (3)

    (3)
    The amounts in this column do not represent above-market or preferential earnings and therefore are not included in the Summary Compensation Table.

    Table of Contents

    Deferred Compensation Programs

    The DCP is a nonqualified deferred compensation plan designed to afford certain highly compensated employeesteammates the opportunity to defer up to 75 percent of their compensation on a pre-tax basis. Deferred amounts are credited with earnings or losses based on the rate of return of mutual funds selected by the participants in the DCP. The Company, in its sole discretion, may make matching contributions, based on the amounts that are deferred by employeesteammates pursuant to the DCP, but did not choose to make matching contributions for 2018.2020. Distributions are paid at the time elected by the participant in accordance with the DCP.

    The DCP is not currently funded by the Company, and participants have an unsecured contractual commitment from the Company to pay the amounts due under the DCP. All plan assets are held in trust and are considered general assets of the Company. When such payments are due, the cash will be distributed from the DCP'sDCP’s trust.

    TERMINIX45

    Executive Compensation Tables
    2021 ANNUAL
    PROXY STATEMENT
    Potential Payments Upon Termination or Change in Control

    Severance Benefits for NEOs

    Unless modified by separate agreement, and except as described below, upon a termination of employment for any reason, we have no obligation to pay any prospective amounts or provide any benefits to our NEOs. Our obligations will consist of those obligations accrued at the date of termination, including payment of earned salary, vacation, reimbursement of expenses and obligations that may otherwise be payable in the event of death or disability.

    For the purpose of the following discussion, "cause"“cause” means a material breach by the executive of the duties and responsibilities of the executive (other than as a result of incapacity due to physical or mental illness) that is demonstrably willful and deliberate on the executive'sexecutive’s part, committed in bad faith or without reasonable belief that such breach is in our best interests and not remedied in a reasonable period of time after receipt of written notice from us specifying such breach; or the commission by the executive of a felony or misdemeanor involving any act of fraud, embezzlement or dishonesty or any other intentional misconduct by the executive that materially and adversely affects our business affairs or reputation. The NEOs'NEOs’ agreements described below also include in the definition of "cause"“cause”: any failure by the executive to cooperate with any investigation or inquiry into the executive'sexecutive’s business practices, whether internal or external, including, but not limited to, the executive'sexecutive’s refusal to be deposed or to provide testimony at any trial or inquiry.

    Upon each executive'sexecutive’s death or disability, we will pay to the executive (or his or her executors or legal representatives, to the extent applicable) the annual bonus earned for the fiscal year immediately preceding the date of termination to the extent not previously paid; plus if the date of termination is after June 30 of a fiscal year, a prorated bonus through his date of termination (determined based on the target bonus, in the event of retirement or death, or actual accomplishment, in the event of disability).

    Mr. Varty

    Ponton

    Mr. Varty'sPonton’s employment agreement providesprovided that if we were to terminateterminated Mr. Varty'sPonton’s employment without cause, or Mr. Varty terminatesPonton terminated his employment for good reason, he would receive:have received: (1) continued payment of his monthly base salary for 24 months following the date of termination; (2) reimbursement of COBRA premiums paid by him for 18 months following the date of termination (and reimbursement of COBRA premiums for up to an additional 6 months following the end of the original 18 month period to the extent that Mr. Varty and his dependents have not obtained coverage from a subsequent employer); (3) the annual bonus earned for the fiscal year immediately preceding the date of termination to the extent not previously paid; (4)paid and (3) a prorated bonus for the year in which his termination occurs through his date of


    Table of Contents

    termination; and (5) an amount equal to two times his average annual bonus paid or payable to Mr. Varty with respect to the two fiscal years immediately preceding the date of termination or, if Mr. Varty has not received an annual bonus for either or both of those fiscal years immediately preceding the date of termination, with such average to be calculated using his target annual bonus for such year or years, as applicable. termination. Payments of Mr. Varty'sPonton’s severance benefits arewere subject to Mr. VartyPonton signing a general release of claims. Mr. VartyPonton is also subject to covenants not to compete or solicit for two years following termination and an indefinite covenant not to disclose confidential information. Upon Mr. Varty'sPonton’s retirement, death or disability, we shallwould have been obligated to pay to Mr. VartyPonton (or his executors or legal representatives, to the extent applicable) the annual bonus earned for the fiscal year immediately preceding the date of termination to the extent not previously paid, plus a prorated bonus through his date of termination. The treatment of equity awards granted to Mr. VartyPonton is described below under the "MSIP“Omnibus Incentive Plan” section.

    Mr. Varty
    Mr. Varty resigned from his position as CEO of the Company effective January 21, 2020. Since his departure was voluntary, he did not receive any severance benefits. All unvested PSUs, RSUs and Omnibus Incentive Plan" section.

    stock options were canceled upon his departure from the Company on February 29, 2020.

    Mr. Tibbens

    DiLucente

    The agreement executed between Terminix and Mr. Tibbens' employment agreementDiLucente on February 26, 2020 provides he will receive:for severance benefits equal to (1) continued12 months of annual salary; (2) the amount of the annual incentive payment for fiscal year 2020 and (3) an amount equal to 100% of his target bonus under the 2021 AIP. These payments will be paid in 12 equal monthly base salary, atinstallments, other than the rateannual bonus for 2020 which was paid in effect immediately prior to the Date of Termination, for 12 months following the Date of Termination; provided that such payment period shall be for 24 months following the date of termination if the date of termination is prior to January 1, 2020; (2) a lump sum payment equal to Mr. Tibbens' target bonus; (3) to the extent not already vested by their terms on or prior to such date of termination, the Sign-On RSUs will become immediately vested on the date of termination; and (4) the annual bonus earned for the 2018 fiscal year.

    in March 2021.

    Severance Arrangements with Other NEOs

    We have not historically offered severance agreements or change in control agreements to newly hired executive officers. Messrs. DiLucente,Mr. Persson and Stevenson and Ms. WegnerScott are covered under our standard severance practices and guidelines. As an officerofficers who reportsreport directly to our CEO, he or she isthey are eligible to receive severance if terminated without cause (as defined in "Potential“Potential Payments Upon Termination or Change in Control—Severance Benefits for NEOs"NEOs”). Under our practice for executive officers as in effect as of December 31, 2018,2020, in the event of such termination, an amount equal to one times base salary plus target bonus for the year of termination is paid out generally in monthly installments over a period of 12 months, and, if termination occurs after June 30 of a year, a prorated portion of the bonus earned under the AIP would be payable to the terminated executive at the same time as annual bonuses are paid to other executives for the applicable year, subject to execution of a general release and observing covenants not to compete, solicit, nor disclose confidential information.
    46TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    Executive Compensation Tables
    Mr. Rutherford separated from the Company on March 15, 2021 and received severance payments equal to (1) 12 months of annual salary; and (2) an amount equal to 100% of his target bonus under the 2021 AIP. These payments will be paid in 12 equal monthly installments.
    The Compensation Committee adopted severance guidelines in July 2018 that provide for enhanced severance payments to executive officers in the event of a change in control and subsequent termination from the acquiring company within 24 months of the change in control, a "double“double trigger provision." The guidelines provide for the payment of two times annual salary and target bonus upon the termination following a change in control.

    Omnibus Incentive Plan

    If an executive'sexecutive’s employment is terminated by us for "cause" (as“cause” ​(as defined in the Omnibus Incentive Plan) all options (vested and unvested), unvested RSUs, unvested restricted stock and unvested performance RSUs are immediately cancelled.

    If an executive'sexecutive’s employment is terminated by us without "cause"“cause” or if the executive voluntarily terminates his employment for any reason, all unvested options, RSUs and PSUs immediately terminate. Upon such a termination, the executive may exercise vested options before the first to occur of (1) the three month anniversary of the executive'sexecutive’s termination of employment, (2) the expiration of


    Table of Contents

    the options'options’ normal term, after which date such options are cancelled or (3) the cancellation of the options in the event of a change in control in exchange for a cash payment.

    If an executive'sexecutive’s employment terminates by reason of death or disability, all unvested options will vest, and all options will remain exercisable until the first to occur of (1) the one year anniversary of the executive'sexecutive’s date of termination, (2) the expiration of the options'options’ normal term, after which date such options are cancelled or (3) the cancellation of the options in the event of a change in control in exchange for a cash payment. RSUs will vest as to the number of RSUs that would have vested on the next anniversary of the grant date (assuming the executive'sexecutive’s employment had continued through such anniversary) multiplied by a fraction, the numerator of which is the number of days elapsed since (x) the grant date, if the termination due to death or disability occurs on or prior to the first anniversary of the grant date, or (y) the most recent prior anniversary of the grant date, if the termination due to death or disability occurs after the first anniversary of the grant date, and the denominator of which was 365366 for 2018.

    2020.

    The stock option agreements provide that all then outstanding options (whether vested or unvested) will be cancelled in exchange for a cash payment if we experience a "change“change in control" (ascontrol” ​(as defined in the Omnibus Incentive Plan), unless the board of directors reasonably determines in good faith that options with substantially equivalent or better terms are substituted for the existing options. Upon a change in control, all RSUs will become vested.vest. For stock option and RSU awards granted April 23, 2018 and later, no cancellation, acceleration of vesting or other payment shall occur with respect to any RSU in connection with a change in control occurring prior to the third anniversary of the grant date, if the administrator reasonably determines prior to the change in control that the executive shall receive an "alternative award"“alternative award” meeting the requirements of the plan; provided, however, that if within two years following a change in control, the executive'sexecutive’s employment is involuntarily terminated (other than for cause) or the executive resigns with good reason, at a time when any portion of the alternative award is unvested, the unvested portion of such alternative award shall immediately vest in full and such executive shall be provided with either cash or marketable stock equal to the fair market value of the stock subject to the alternative award on the date of termination. Notwithstanding the plan terms, certain legacy RSU grant agreements provide for accelerated vesting on a change in control occurring prior to vesting.

            Mr. Varty's equity awards (granted in connection with his employment agreement and any other awards granted to

    Mr. Varty underresigned from his position as CEO of the Omnibus Incentive Plan) will also vest if he is terminated without cause or resigns for good reason, within 24 months followingCompany effective January 21, 2020. Since his departure was voluntary, all unvested PSUs, RSUs and stock options were canceled upon his departure from the signing of a definitive agreement, which if consummated, would result in a change in control.

    Company on February 29, 2020.

    The Compensation Committee also has the discretion to accelerate the vesting of options and RSUs at any time.

    Payment Upon Retirement, Death, Disability, Qualifying Termination, or Change in Control as of December 31, 2018

    2020

    The following table sets forth information regarding the value of payments and other benefits payable by us to each of the NEOs employed by us as of December 31, 20182020 in the event of retirement, death, disability, qualifying termination (a termination which qualifies an NEO for severance payments under his employment agreement or offer letter or our general severance policy) or change in control. Except as otherwise noted below, the amounts shown assume termination or change in control effective as of December 31, 20182020 and a fair market value of our common stock on December 31, 20182020 of $36.74$51.01 per share.

    TERMINIX47

    Executive Compensation Tables
    2021 ANNUAL
    PROXY STATEMENT
    Potential Payments Upon Retirement, Death, Disability, Qualifying Termination or Change in Control (2018)(2020)

    Named Executive OfficerEvent
    Base Salary
    and Target
    Bonus
    ($)(1)
    Payment
    of Current
    Year
    Bonus
    ($)
    Acceleration
    of Vesting
    of Stock
    Options
    ($)(2)
    Acceleration
    of Vesting
    of RSUs/
    PSUs
    ($)(2)
    Health &
    Welfare
    ($)(3)
    Total
    Payments
    ($)
    Brett T. PontonRetirement318,691318,691
    Death288,068228,94891,466608,482
    Disability318,691228,94891,466639,105
    Qualifying Termination1,950,000318,6912,268,691
    Change in Control1,950,000318,691228,948927,3623,425,001
    Anthony D. DiLucenteRetirement407,323407,323
    Death374,5001,096,707742,3012,213,508
    Disability407,3231,096,707742,3012,246,331
    Qualifying Termination909,500407,3231,316,823
    Change in Control1,819,000407,3231,096,7071,539,3254,862,355
    Dion PerssonRetirement301,050301,050
    Death270,000604,379481,7381,356,117
    Disability301,050604,379481,7381,387,167
    Qualifying Termination720,000301,0501,021,050
    Change in Control1,440,000301,050604,379965,5683,310,997
    Gregory L. RutherfordRetirement299,191299,191
    Death299,000286,339637,8761,223,215
    Disability299,191286,339637,8761,223,406
    Qualifying Termination759,000299,1911,058,191
    Change in Control1,518,000299,191286,3392,290,4514,393,981
    Kim ScottRetirement404,808404,808
    Death341,250306,379547,2071,194,836
    Disability404,808306,379547,2071,258,394
    Qualifying Termination866,250404,8081,271,058
    Change in Control1,732,500404,808306,3792,274,7914,718,478
    Naren K. Gursahaney(4)0
    Nikhil M. Varty(5)0
    Named Executive Officer
     Event Base Salary
    and Target
    Bonus
    ($)(1)
     Payment of
    Current
    Year
    Bonus
    ($)
     Acceleration
    of Vesting
    of Stock
    Options
    ($)(2)
     Acceleration
    of Vesting of
    RSUs/Performance
    RSUs/PSUs ($)(2)
     Health &
    Welfare
    ($)(3)
     Total
    Payments
    ($)
     

    Nikhil M. Varty

     Retirement    890,000        890,000 

     Death    1,000,000  908,283  502,196    2,410,479 

     Disability    890,000  908,283  502,196    2,300,479 

     Qualifying Termination  4,000,000  890,000      65,091  4,955,091 

     Change in Control  4,000,000  890,000  908,283  1,734,716    7,532,999 

    Anthony D. DiLucente

     Retirement    419,123        419,123 

     Death    362,250  360,786  242,013    965,049 

     Disability    419,123  360,786  242,013    1,021,922 

     Qualifying Termination  879,750  419,123         1,298,873 

     Change in Control  1,759,500  419,123  360,786  687,001    3,226,410 

    Dion Persson

     Retirement    300,375        300,375 

     Death    270,000  0  108,989    378,989 

     Disability    300,375  0  108,989    409,364 

     Qualifying Termination  720,000  300,375        1,020,375 

     Change in Control  1,440,000  300,375  0  634,390    2,374,765 

    Matthew J. Stevenson

     Retirement    305,663        305,663 

     Death    292,500  0  139,069    431,569 

     Disability    305,663  0  139,069    444,732 

     Qualifying Termination  742,500  305,663        1,048,163 

     Change in Control  1,485,000  305,663  0  649,673    2,440,336 

    Mary Kay Wegner

     Retirement    288,405        288,405 

     Death    276,250  459,744  84,874    820,868 

     Disability    288,405  459,744  84,874    833,023 

     Qualifying Termination  701,250  288,405        989,655 

     Change in Control  1,402,500  288,405  459,744  347,524    2,498,173 

    Rexford J. Tibbens

     (4)  (4)  (4)  (4)  (4)  (4)  (4)
     

    (1)
    (1)
    Calculations are based upon the terms previously discussed under Severance Benefits for NEOs.
    (2)

    (2)
    As noted above in the sections entitled Omnibus Incentive Plan, upon death or disability, all or portions of unvested stock options and RSUs become vested and exercisable. For RSUs, a prorated number of units will vest based on the length of service to the date of death or disability divided by the full number of days in the performance period. Beginning with awards granted in July 2018 and going forward, the Company implemented a "double trigger"“double trigger” acceleration of stock options and RSUs in the event of a change in control. The values in the table were based on a value of $36.74$51.01 per share at December 31, 20182020 and option exercise prices of $26.01, $26.81, $28.56$26.01; $28.56; $37.07; and $37.07,$40.04; as applicable. The price per share in thes footnote has been adjusted to give effect to the spin-off of Frontdoor.
    (3)

    (3)
    Represents the amount to be paid for continuation of benefits coverage, based on the coverage carried on December 31, 2018.2020. No agreements include the payment of continued benefits coverage.
    (4)

    (4)
    Mr. TibbensGursahaney resigned as interim CEO on September 14, 2020.
    (5)
    Ms. Varty left the Company on September 30, 2018 in conjunction with the spin-off of AHS, therefore, there is no termination data to report effective December 31, 2018.February 29, 2020.
    48TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    Executive Compensation Tables
    CEO Pay Ratio

    To determine the CEO pay ratio, we included our global population as of December 31, 2018.2020. We used actual compensation data from the Company'sCompany’s human resource systems for employeesteammates in the United States and target compensation for employeesteammates outside the United States. We annualized pay for employees,teammates, including part-time employees,teammates, who commenced work in 2018.2020. Pay for part-time employeesteammates who commenced work in 20182020 was annualized only to the extent of the part-time hours they would have worked during 2018.2020. We determined our median employeeteammate based on this data. We calculated the median base salary and determined that person'sperson’s total compensation was $47,907$49,773 in 2018.2020. Since our CEO was hired effective September 15, 2020, we annualized his salary, annual bonus plus the performance achievement level and the value of his target long-term incentive awards, while adding in his other compensation, including his relocation benefits and tax gross-up as listed in the All Other Compensation (2020) table presented above. Since we included his full annual incentive award, we did not include his make-whole bonus that was paid to offset his accrued bonus at his prior employer. Our CEO's annualCEO’s annualized compensation for 20182020 was $5,526,809,$5,286,737, including the grant date value of his target equity awards. As a result, the ratio of CEO pay to median employeeteammate pay for 20182020 was 115:106:1.

    The SEC'sSEC’s pay ratio disclosure rules permit the use of estimates, assumptions and adjustments, and the SEC has acknowledged that pay ratio disclosures may involve a degree of imprecision. The resulting pay ratio asis calculated in a manner consistent with SEC rules and we believe it constitutes a reasonable estimate. However, as contemplated by SEC rules, we relied on methods and assumptions that we determined to be appropriate for calculating the pay ratio at ServiceMaster.Terminix. Other companies will use methods and assumptions that differ from the ones we chose but are appropriate for their circumstances. It may therefore be difficult, for this and other reasons, to compare our reported pay ratio to pay ratios reported by other companies.

    Equity Compensation Plan Information

    The following table contains information, as of December 31, 2018,2020, about the amount of our common shares to be issued upon the exercise of outstanding options, RSUs and DSEs granted under the MSIPold Management Stock Incentive Plan (“MSIP”) and the Omnibus Incentive Plan.

    Plan Category
    Number of Securities
    to be Issued Upon
    Exercise of
    Outstanding Options,
    Warrants and Rights(1)
    Weighted Average
    Exercise Price
    of Outstanding
    Options
    Number of Securities
    Remaining Available
    for Future Issuance
    Under Equity
    Compensation Plans
    (excluding securities
    reflected in first column)(2)
    Equity compensation plans approved by stockholders2,220,15936.475,133,314
    Equity compensation plans not approved by stockholders
    Total2,220,15936.475,133,314
    Plan Category
    Number of Securities
    to be Issued Upon
    Exercise of
    Outstanding Options,
    Warrants and Rights(1)
    Weighted Average
    Exercise Price
    of Outstanding
    Options
    Number of Securities
    Remaining Available
    for Future Issuance
    Under Equity
    Compensation Plans
    (excluding securities
    reflected in first column)(2)

    Equity compensation plans approved by stockholders

    1,882,794$  29.346,661,265

    Equity compensation plans not approved by stockholders

    Total

    1,882,794$  29.346,661,265

    (1)
    (1)
    The figures in this column reflect 1,342,843 stock options, 526,744PSUs, RSUs and 13,207 DSEs granted to directors, executives, officers and employeesteammates pursuant to the MSIP and Omnibus Incentive Plan.
    (2)

    (2)
    Includes 5,817,681 and 843,584any shares that can be issued under the Omnibus Incentive Plan and the ESPP, respectively.ESPP.
    TERMINIX49


    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

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    The following table sets forth information as of March 7, 201926, 2021 with respect to the ownership of our common stock by:


    each person known to own beneficially more than five percent of our common stock;


    each of our directors;


    each of our NEOs; and


    all of our current executive officers and directors as a group.

    The amounts and percentages of shares beneficially owned are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities. Under SEC rules, a person is deemed to be a "beneficial owner"“beneficial owner” of a security if that person has or shares voting power or investment power, which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days. Securities that can be so acquired are deemed to be outstanding for purposes of computing such person'sperson’s ownership percentage, but not for purposes of computing any other person'sperson’s percentage. Under these rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest.

    Percentage computations are based on 136,057,181129,861,771 shares of our common stock outstanding as of March 7, 2019.

    26, 2021.

    Except as otherwise indicated in these footnotes, each of the beneficial owners listed has, to our knowledge, sole voting and investment power with respect to the indicated shares of common stock. Addresses for the beneficial owners are set forth in the footnotes to the table.

    Name of Beneficial Owner
    Shares
    Beneficially
    Owned
    Percent
    T. Rowe Price Associates, Inc.(1)17,944,35013.8
    Janus Henderson Group plc(2)17,587,80813.5
    The Vanguard Group(3)11,638,9749.0
    Eaton Vance Management(4)10,572,0788.1
    Naren K. Gursahaney(5)(6)138,1341.1
    Deborah H. Caplan(5)(6)7,867*
    David J. Frear(5)(6)809*
    Laurie Ann Goldman(5)(6)13,863*
    Steven B. Hochhauser(5)(6)11,843*
    Stephen J. Sedita(5)(6)24,373*
    Mark E. Tomkins(5)(6)21,518*
    Brett T. Ponton(5)(7)
    Anthony D. DiLucente26,575*
    Dion Persson(5)(7)61,573*
    Gregory L. Rutherford14,163*
    Kim Scott(6)(7)10,565
    Nikhil M. Varty
    All current directors and executive officers as a group (12 persons)(7)303,2642.3
    Name of Beneficial Owner
     Shares
    Beneficially
    Owned
     Percent

    T. Rowe Price Associates, Inc.(1)

      17,255,484 12.7

    Janus Henderson Group plc(2)

      15,378,109 11.3

    Eaton Vance Management(3)

      12,733,355 9.4

    The Vanguard Group(4)

      11,859,575 8.7

    The Growth Fund of America(5)

      7,572,514 5.6

    Mark E. Tomkins(6)(7)

      17,398 *

    John B. Corness(6)(7)

      8,296 *

    Laurie Ann Goldman(6)(7)

      7,299 *

    Naren K. Gursahaney(6)(7)

      6,452 *

    Steven B. Hochhauser(6)(7)

      3,279 *

    Stephen J. Sedita(6)(7)

      16,809 *

    Nikhil M. Varty(6)(8)

      125,847 *

    Anthony D. DiLucente (6)(8)

      47,512 *

    Dion Persson(6)(8)

      15,936 *

    Matthew J. Stevenson(6)(8)

      10,396 *

    Mary Kay Wegner(6)(8)

      53,192 *

    All current directors and executive officers as a group (14 persons)(8)

      310,514 *

    *
    *
    Less than one percent.
    50TERMINIX

    2021 ANNUAL
    PROXY STATEMENT
    SECURITY OWNERSHIP OF CERTAIN
    BENEFICIAL OWNERS AND MANAGEMENT
    (1)
    (1)
    Based on information obtained from a Schedule 13G/A13G filed with the SEC by T. Rowe Price Associates, Inc. ("(“Price Associates"Associates”). Price Associates does not serve as custodian of the assets of any of its clients; accordingly, in each instance only the client or the client'sclient’s custodian or trustee bank has the right to receive dividends paid with respect to, and proceeds from the sale of, such

    Table of Contents

      securities. The ultimate power to direct the receipt of dividends paid with respect to, and the proceeds from the sale of, such securities, is vested in the individual and institutional clients which Price Associates serves as investment adviser. Any and all discretionary authority which has been delegated to Price Associates may be revoked in whole or in part at any time.

    Except as may be indicated if this is a joint filing with one of the registered investment companies sponsored by Price Associates which it also serves as investment adviser ("(“T. Rowe Price Funds"Funds”), not more than five percent of the class of such securities is owned by any one client subject to the investment advice of Price Associates. With respect to securities owned by any one of the T. Rowe Price Funds, only the custodian for each of such Funds, has the right to receive dividends paid with respect to, and proceeds from the sale of, such securities. No other person is known to have such right, except that the shareholders of each such Fund participate proportionately in any dividends and distributions so paid.

    T. Rowe Price Associates, Inc. is a Maryland corporation. The principal business address of T. Rowe Price Associates, Inc. is 100 E. Pratt Street, Baltimore, MD 21202.

    (2)

    Based on information obtained from a Schedule 13G/A filed with the SEC by Janus Henderson Group plc ("(“Janus Henderson"Henderson”). Janus Henderson has a direct 97.11an indirect 97 percent ownership stake in Intech Investment Management LLC ("Intech"(“Intech”) and a direct 100 percent ownership stake in Janus Capital Management LLC ("(“Janus Capital"), Janus Capital International Limited ("JCIL"Capital”), Perkins Investment Management LLC ("Perkins"), Geneva Capital Management LLC ("Geneva"(“Perkins”), Henderson Global Investors Limited ("HGIL"(“HGIL”) and Janus Henderson Investors Australia Institutional Funds Management Limited ("JHGIAIFML"(“JHGIAIFML”) (each an "Asset Manager"“Asset Manager” and collectively as the "Asset Managers"“Asset Managers”). Due to the above ownership structure, holdings for the Asset Managers are aggregated. Each Asset Manager is an investment adviser registered or authorized in its relevant jurisdiction and each furnishing investment advice to various fund, individual and/or institutional clients (collectively referred to herein as "Managed Portfolios"“Managed Portfolios”).

    As a result of its role as investment adviser or sub-adviser to the Managed Portfolios, Janus Capital may be deemed to be the beneficial owner of 14,808,94517,571,929 shares of ServiceMasterTerminix common stock held by such Managed Portfolios. However, Janus Capital does not have the right to receive any dividends from, or the proceeds from the sale of, the securities held in the Managed Portfolios and disclaims any ownership associated with such rights. As a result of its role as investment adviser or sub-adviser to the Managed Portfolios, JCIL may be deemed to be the beneficial owner of 191,189 shares of ServiceMaster common stock held by such Managed Portfolios. However, JCIL does not have the right to receive any dividends from, or the proceeds from the sale of, the securities held in the Managed Portfolios and disclaims any ownership associated with such rights. As a result of its role as investment adviser or sub-adviser to the Managed Portfolios, Intech may be deemed to be the beneficial owner of 377,97515,879 shares of ServiceMasterTerminix common stock held by such Managed Portfolios. However, Intech does not have the right to receive any dividends from, or the proceeds from the sale of, the securities held in the Managed Portfolios and disclaims any ownership associated with such rights.

    Janus Henderson Group plc is a Jersey, Channel Islands company with an address of 201 Bishopsgate EC2M 3AE, United Kingdom.

    (3)

    Based on information obtained from a Schedule 13G/A filed with the SEC by The Vanguard Group. The Vanguard Group is a Pennsylvania corporation with an address of 100 Vanguard Blvd., Malvern, PA 19355.
    (4)
    Based on information obtained from a Schedule 13G filed with the SEC by Eaton Vance Management. The address of Eaton Vance Management is 2 International Place, Boston, MA 02110.

    (4)
    Based on information obtained from a Schedule 13G/A filed with the SEC by The Vanguard Group. Vanguard Fiduciary Trust Company, a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 61,168 shares of the common stock of the Company as a result of its serving as investment manager of collective trust accounts. Vanguard Investments Australia, Ltd., a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 29,141 shares of the common stock of the Company as a result of its serving as investment manager of Australian investment offerings. The Vanguard Group is a Pennsylvania corporation with an address of 100 Vanguard Blvd., Malvern, PA 19355.
    (5)

    Table of Contents

    (5)
    Based on information obtained from a Schedule 13G filed with the SEC by The Growth Fund of America. The Growth Fund of America is an investment company, which is advised by Capital Research and Management Company ("CRMC"), is the beneficial owner of 7,572,514 shares of ServiceMaster common stock. CRMC manages equity assets for various investment companies through three divisions, Capital Research Global Investors, Capital World Investors and Capital International Investors. These divisions generally function separately from each other with respect to investment research activities and they make investment decisions and proxy voting decisions for the investment companies on a separate basis. The address of The Growth Fund of America is 6455 Irvine Center Drive, Irvine, CA 92618.

    (6)
    The business address for these persons is c/o ServiceMasterTerminix Global Holdings, Inc., 150 Peabody Place, Memphis, Tennessee 38103.
    (6)

    (7)
    Includes DSEs granted to the directors for board service as follows: Messrs. Corness,Frear (809), Gursahaney (3,476), Hochhauser (9,343) and Sedita 3,476 DSEs; and(4,120). Mr. Hochhauser, 2,779 DSEs. Mr. Sedita'sSedita’s DSEs will settle on April 24, 2019,May 26, 2021, and DSEs for the other directors will settle 30 days after their departure from the board of directors. Also includes shares which Mr. Gursahaney has the right to acquire prior to May 25, 2021 through the exercise of stock options of 104,249 shares. Each director has represented to the Company that none of the securities owned by him or her have been pledged.
    (7)

    (8)
    Includes shares which the current executive officersNEOs have the right to acquire prior to May 6, 201925, 2021 through the exercise of stock options or vesting of RSUs as follows: Mr. Varty, 73,377 shares; Mr. DiLucente, 31,766 shares;Ms. Scott 6,967 and Mr. Persson, 9,339 shares; Mr. Stevenson, 8,313 shares; and Ms. Wegner, 41,56543,403 shares. All current executive officers as a group have the right to acquire 171,62461,710 shares prior to May 6, 201928, 2021 through the exercise of stock options or vesting of RSUs. Each executive officer has represented to the Company that none of the securities owned by him or her have been pledged.

    TERMINIX51

    SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

            Section 16(a) of the Exchange Act requires the Company's directors and executive officers, and persons who own more than 10 percent of the Company's common stock, to file with the SEC reports of ownership and reports of changes in ownership of common stock and other equity securities of the Company and to furnish such reports to the Company. To the Company's knowledge, based solely on a review of the copies of such reports furnished to the Company and written representations that no other reports were required, during the year ended December 31, 2018, all Section 16(a) filing requirements applicable to directors, executive officers and greater than 10 percent beneficial owners were complied with by such persons, except that Mr. Stevenson inadvertently filed a Form 4 one day late in 2018 due to the demands of his business travel schedule.


    CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

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    Policies and Procedures for Related Person Transactions

    Our board of directors has approved written policies and procedures with respect to the review and approval of certain transactions between us and a "Related“Related Person," or a "Related“Related Person Transaction," which we refer to as our "Related“Related Person Transaction Policy." Pursuant to the terms of the Related Person Transaction Policy, the board of directors must review and decide whether to approve or ratify any Related Person Transaction. Any Related Person Transaction is required to be reported to our legal department, and the legal department will then determine whether it should be submitted to our Audit Committee for consideration.


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    For the purposes of the Related Person Transaction Policy, a "Related“Related Person Transaction"Transaction” is a transaction, arrangement or relationship (or any series of similar transactions, arrangements or relationships) in which we (including any of our subsidiaries) were, are or will be a participant and the amount involved exceeds $120,000 and in which any Related Person had, has or will have a direct or indirect interest.

    A "Related“Related Person," as defined in the Related Person Transaction Policy, means any person who is, or at any time since the beginning of our last fiscal year was, a director or executive officer of ServiceMasterTerminix or a nominee to become a director of ServiceMaster;Terminix; any person who is known to be the beneficial owner of more than five percent of our common stock; any immediate family member of any of the foregoing persons, including any child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the director, executive officer, nominee or more than five percent beneficial owner, and any person (other than a tenant or employee)teammate) sharing the household of such director, executive officer, nominee or more than five percent beneficial owner; and any firm, corporation or other entity in which any of the foregoing persons is a general partner or, for other ownership interests, a limited partner or other owner in which such person has a beneficial ownership interest of 10 percent or more.

            From March until May 2018, Mr. Hochhauser served as interim president of AHS prior to its spin-off and received payments totaling $250,000 for such service. The Board determined, after considering all of the relevant facts and circumstances, that Mr. Hochhauser was independent as defined under NYSE listing standards. Other than Mr. Hochhauser's payment for serving as interim president of AHS,

    During 2020, there were no related-party or conflicts of interest transactions between the Company and any of our independentexecutive officers, directors or five percent stockholders that require disclosure under SEC rules.

    Indemnification Agreements

    We have entered into indemnification agreements with each of our directors. The indemnification agreements provide our directors with contractual rights to indemnification and expense advancement rights.

    52TERMINIX

    REPORT OF THE AUDIT COMMITTEE

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    The principal purpose of the Audit Committee is to assist the board of directors in its general oversight of our accounting practices, system of internal controls, audit processes and financial reporting processes. The Audit Committee is responsible for the appointment, retention, termination, compensation, evaluation and oversight of our independent registered public accounting firm. The Audit Committee'sCommittee’s function is more fully described in its charter, and a description of its oversight responsibilities is set forth below in Proposal 3.

    4.

    Our management is responsible for preparing our financial statements and ensuring they are complete and accurate and prepared in accordance with generally accepted accounting principles and for establishing and maintaining adequate internal controls over financial reporting. Deloitte, our independent registered public accounting firm for 2018,2020, was responsible for performing an independent audit of our consolidated financial statements and internal control over financial reporting in accordance with standards of the Public Company Accounting Oversight Board (United States) (the "PCAOB"“PCAOB”) and to issue a report as a result of such audits. The Audit Committee serves as a focal point for communication among the board of directors and its committees, the independent registered public accounting firm, management and our internal audit function, as the respective duties of such groups, or their constituent members, relate to our financial accounting and reporting and to its internal controls.

    The Audit Committee has reviewed and discussed our audited financial statements for the year ended December 31, 20182020 with management and with Deloitte. These audited financial statements are included in our Annual Report on Form 10-K for the year ended December 31, 2018.

    2020.

    The Audit Committee has also discussed with Deloitte the matters required to be discussed by Auditing Standard No. 16 adopted by the PCAOB regarding "1301 “Communications with Audit Committees."” issued by the PCAOB. The Audit Committee also reviewed and discussed with management, the internal auditors and the independent registered public accounting firm, management'smanagement’s report, and the independent registered public accounting firm'sfirm’s attestation, on internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002.

    The Audit Committee also has received and reviewed the written disclosures and the letter from Deloitte required by applicable requirements of the PCAOB regarding Deloitte'sDeloitte’s communications with the Audit Committee concerning independence and has discussed with Deloitte its independence from us.

    The board of directors has determined that the following members of the Audit Committee are audit committee financial experts as defined in Item 407(d)(5)(ii) of Regulation S-K: Mark E. Tomkins, David J. Frear, Naren K. Gursahaney and Stephen J. Sedita. The board of director has also determined each member of the Audit Committee meets the independence and financial literacy requirements for audit committee members set forth under the listing standards of the NYSE and our independence standards.
    Based on the review and discussions described above, the Audit Committee recommended to the board of directors that the audited financial statements be included in the Annual Report on Form 10-K for the year ended December 31, 20182020 for filing with the SEC.

    The Audit Committee

    Mark E. Tomkins (Chair)
    John B. CornessDavid J. Frear
    Laurie Ann Goldman
    Naren K. Gursahaney
    Steven B. Hochhauser
    Stephen J. Sedita

    This Report of the Audit Committee is required by the SEC and, in accordance with the SEC'sSEC’s rules, will not be deemed to be part of or incorporated by reference by any general statement incorporating by reference this proxy statement into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except to the extent that we specifically incorporate this information by reference, and will not otherwise be deemed "soliciting material"“soliciting material” or "filed"“filed” under either the Securities Act or the Exchange Act.
    TERMINIX

    53

    PROPOSAL 1: ELECTION OF DIRECTORS

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    The following individuals, all of whom are currently serving on our board of directors, are nominated for election this year as Class III directors:

    David J. FrearBrett T. PontonStephen J. Sedita
    Laurie Ann Goldman

    Steven B. Hochhauser

    Nikhil M. Varty

    If elected, each of these individuals will serve as a Class III director until the 20222024 Annual Meeting of Stockholders and until his or her successor has been elected and qualified, or until his or her earlier death, resignation or removal. In the event that any nominee for any reason is unable to serve, or for good cause will not serve, the proxies will be voted for such substitute nominee as our board of directors may determine. We are not aware of any nominee who will be unable to serve, or for good cause will not serve, as a Class III director.

    The relevant experiences, qualifications, attributes or skills of each nominee that led our board of directors to recommend the above persons as a nominee for director are described above in the section entitled "The“The Board of Directors and Corporate Governance."

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    OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR THE ELECTION OF EACH OF THE CLASS I NOMINEES LISTED ABOVE.
    54TERMINIX

    PROPOSAL 2: NON-BINDING ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION

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    As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and in accordance with Section 14A of the Exchange Act, the Company'sCompany’s stockholders are entitled to approve, on an advisory basis, the compensation of our NEOs. This non-binding advisory vote, commonly known as a "Say-on-Pay"“Say-on-Pay” vote, gives our stockholders the opportunity to express their views on our NEOs'NEOs’ compensation. This vote is not intended to address any specific item of compensation, but rather the overall compensation of our NEOs and the philosophy, policies and practices described in this proxy statement. At the 20182020 Annual Meeting, 97 percent of voting stockholders approved the 20182020 Say-on-Pay vote and at the 2015 Annual Meeting approved the advisory vote on the frequency of Say-on-Pay vote for every year. As such, we expect to present a Say-on-Pay vote to stockholders each year.

    As described in the "Compensation“Compensation Discussion and Analysis"Analysis” section of this proxy statement (the "CD&A"“CD&A”), the Compensation Committee is tasked with the implementation of our executive compensation philosophy, and the core of that philosophy has been, and continues to be, to pay our executives based on our performance. In particular, the Compensation Committee strives to (i) attract and retain highly motivated, qualified and experienced executives, (ii) focus the attention of the NEOs on the strategic, operational and financial performance of the Company and (iii) encourage the NEOs to meet long-term performance objectives and increase stockholder value. To do so, the Compensation Committee uses a combination of near- and long-term incentive compensation to motivate and reward executives who have the ability to significantly influence our long-term financial success and who are responsible for effectively managing our operations in a way that maximizes stockholder value. It is always the intention of the Compensation Committee that our executive officers be compensated competitively with the market and consistently with our business strategy, sound corporate governance principles and stockholder interests and concerns. We believe our compensation program is effective, appropriate and strongly aligned with the long-term interests of our stockholders and that the total compensation package provided to our NEOs are reasonable and not excessive.


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    For these reasons, the board of directors is asking stockholders to vote "FOR"“FOR” the following resolution:

      "

    RESOLVED, that the compensation paid to the Company'sCompany’s NEOs, as disclosed pursuant to the rules of the SEC, including the CD&A, compensation tables and narrative discussion, is hereby APPROVED."

    As you consider this Proposal 2, we urge you to read the CD&A section of this proxy statement for additional details on executive compensation, including the more detailed information about our compensation philosophy and objectives and the past compensation of our NEOs, and to review the tabular disclosures regarding NEO compensation together with the accompanying narrative disclosures in the "Executive Compensation"“Executive Compensation” section of this proxy statement.

    As an advisory vote, Proposal 2 is not binding on our board of directors or the Compensation Committee, will not overrule any decisions made by our board of directors or the Compensation Committee or require our board of directors or the Compensation Committee to take any specific action. Although the vote is non-binding, our board of directors and the Compensation Committee value the opinions of our stockholders and will carefully consider the outcome of the vote when making future compensation decisions for our NEOs.

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    OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR NON-BINDING ADVISORY APPROVAL OF EXECUTIVE COMPENSATION AS DISCLOSED IN THIS PROXY STATEMENT.
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    PROPOSAL 3: ADVISORY VOTE "FOR" NON-BINDINGON THE FREQUENCY OF THE ADVISORY APPROVALVOTE
    APPROVING EXECUTIVE COMPENSATION
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    In addition to the advisory “Say-on-Pay” vote set forth in Proposal 2, under the Dodd-Frank Act and Section 14A of the Exchange Act, stockholders are also entitled, at least once every six years, to indicate on an advisory basis, their preference regarding how frequently we should solicit the “Say-on-Pay” vote. This non-binding advisory vote is commonly referred to as a “Say-on-Frequency” vote. By voting on this Proposal 3, stockholders may indicate whether the advisory “Say-on-Pay” vote should occur every year, every two years or every three years or they may abstain from voting. Although the vote is advisory and is not binding on the board of directors, the board will take into account the outcome of the vote when considering the frequency of future “Say-on-Pay” proposals. At the 2015 Annual Meeting, stockholders approved the advisory vote on the frequency of Say-on-Pay vote for every year and we have presented such advisory vote each year since. Depending on the outcome of this year’s vote, we expect to present a Say-on-Pay vote to stockholders each year going forward.
    After careful consideration, the board of directors believes that an advisory vote on executive compensation that occurs EVERY YEAR is the most appropriate alternative for our Company as an annual vote cycle gives the Compensation Committee frequent information about our stockholders’ sentiments so that the Compensation Committee can take any action to implement necessary changes to our executive compensation policies and procedures.
    Please note that this proposal does not provide stockholders with the opportunity to vote for or against any particular resolution. Rather it permits stockholders to choose how often they would like us to include a stockholder advisory vote on the compensation of our executives on the agenda for the annual meeting of stockholders. Notwithstanding the board’s recommendation and the outcome of the stockholder vote, the board may in the future decide that it is in the best interest of our stockholders and the Company to conduct “Say-on-Frequency” votes on a more or less frequent basis and may vary its practice based on factors such as discussions with stockholders and the adoption of material changes to compensation programs.
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    OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR EVERY YEARFREQUENCY
    FOR FUTURE “SAY-ON-PAY” PROPOSALS ON EXECUTIVE COMPENSATION.
    56TERMINIX

    PROPOSAL 3:4: RATIFICATION OF SELECTION OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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    The Audit Committee of the board of directors has selected Deloitte as our independent registered public accounting firm for the fiscal year ending December 31, 20192021 and recommends that the stockholders vote for ratification of such selection. Prior to appointing Deloitte as our independent registered public accounting firm for the fiscal year ending December 31, 2019,2021, the Audit Committee reviewed the performance of Deloitte and made inquiries of management regarding Deloitte'sDeloitte’s performance. The Audit Committee has sole and direct responsibility for the appointment, retention, termination, compensation, evaluation and oversight of the work of any independent registered public accounting firm engaged by the Company. In the event of a negative vote on the ratification, the Audit Committee may reconsider its appointment of Deloitte for 2019; however, the Audit Committee2021 and will consider the outcome of the vote when making appointments of our independent registered public accounting firm in future years. Even if the appointment is ratified, the Audit Committee, in its discretion, may direct the appointment of a different independent registered public accounting firm at any time during the year if the Audit Committee determines that such a change would be in the Company'sCompany’s and the stockholders'stockholders’ best interests.

    Representatives of Deloitte are expected to be present at the Annual Meeting and will have an opportunity to make a statement, if they desire to do so, and to respond to appropriate questions from those attending the meeting.

    Evaluation and Oversight Responsibilities

    The Audit Committee evaluates the selection of the independent registered public accounting firm each year. In determining whether to reappoint Deloitte as our independent registered public accounting firm, the Audit Committee considers a number of factors, including:


    Deloitte'sDeloitte’s historical and recent performance on the Company'sCompany’s audit;


    the quality and efficiency of the services provided by Deloitte;

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      an assessment of the firm'sfirm’s professional qualifications, resources and expertise;


    Deloitte'sDeloitte’s knowledge of the Company'sCompany’s business and industry;


    the quality of the Audit Committee'sCommittee’s ongoing communications with Deloitte and of the firm'sfirm’s relationship with the Audit Committee and Company management;


    the quality and efficiency of the services provided by Deloitte, including input from management on Deloitte'sDeloitte’s performance and how effectively Deloitte demonstrated its independent judgment, objectivity and professional skepticism;


    Deloitte'sDeloitte’s independence;


    the appropriateness of Deloitte'sDeloitte’s fees;


    the length of time the firm has served in this role; and


    external data on audit quality and performance, including recent PCAOB reports on Deloitte and peer firms.

    Considered together, these factors enable the Audit Committee to evaluate whether the selection of Deloitte as the Company'sCompany’s independent registered public accounting firm, and the retention of Deloitte to perform other services, will contribute to, and enhance, audit quality. Based on its evaluation, the Audit Committee believes that the continued retention of Deloitte to serve as the Company'sCompany’s independent registered public accounting firm is in the best interest of our stockholders.

    Review and Assessment of Audit and Related Services

    The Audit Committee has sole and direct responsibility for assessing the overall value, both quality and cost, of the annual audit and related services provided by Deloitte. They actively monitor the engagement through all phases of the process, including approving audit fees and other related fees and assessing overall value delivered. Each year Deloitte makes a proposal of services
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    PROPOSAL 4: RATIFICATION OF SELECTION
    OF INDEPENDENT REGISTERED PUBLIC
    ACCOUNTING FIRM
    2021 ANNUAL
    PROXY STATEMENT
    to be performed and the fees related to such services. The Audit Committee, along with management, engages Deloitte in a negotiation of such fees, consistent with the value of a quality audit. Our Audit Committee members are experienced in the accounting industry and sit on other boards and audit committees, which provides them with competitive insight that allows them to assess the total value derived from the annual audit and related services.

    The following table presents, for 20182020 and 2017,2019, fees for professional services rendered by Deloitte for the audit of our annual financial statements, audit-related services, tax services and all other services. In accordance with the SEC'sSEC’s definitions and rules, "audit fees"“audit fees” are fees we paid Deloitte for professional services for the audit of our Consolidated Financial Statements included in our Annual Report on Form 10-K, review of the financial statements included in our quarterly reports on Form 10-Q and services that are normally provided by Deloitte in connection with statutory and regulatory filings or engagements; "audit-related fees"“audit-related fees” are fees for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements; "tax fees"


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    “tax fees” are fees for tax compliance, tax advice and tax planning; and "all“all other fees"fees” are fees for any products and services provided by Deloitte not included in the first three categories.

    20202019
    Audit Fees(1)$2,589,000$2,638,000
    Audit-Related Fees(2)$1,525,000$6,000
    Tax Fees(3)$49,000$185,000
    All Other Fees(4)$$291,000
     
     2018 2017 

    Audit Fees(1)

     $2,732,700 $3,030,500 

    Audit-Related Fees(2)

     $298,000 $1,530,000 

    Tax Fees(3)

     $276,000 $121,952 

    All Other Fees

         

    (1)
    (1)
    Audit fees include fees related to the audit of ServiceMasterTerminix and other services associated with regulatory filings as well as other fees associated with audits of certain subsidiaries of ServiceMaster.Terminix.
    (2)

    (2)
    Principally
    For 2020, principally represents fees paid in connection with auditing carve-out financial statements for AHSServiceMaster Brands related to the spin-off transaction, as well as fees paid in connection with a comfort letter issued in connection with debt incurred by AHS prior to the spin-off.sale transaction.
    (3)

    (3)
    For 20182020 and 2017,2019, includes services rendered in connection with tax planning, compliance and tax return preparation fees.

    (4)
    Represents fees paid in connection with due diligence services related to potential acquisitions.
    Pre-Approval Policies and Procedures

    In accordance with the Sarbanes-Oxley Act of 2002, the Audit Committee charter provides that the Audit Committee of the board of directors has the sole authority and responsibility to pre-approve all audit services, audit- related tax services and other permitted services to be performed for the Company by its independent auditors and the related fees. Pursuant to its charter and in compliance with rules of the SEC and PCAOB, the Audit Committee has established a pre-approval policy that requires the pre-approval of all services to be performed by the independent auditors. The independent auditors may be considered for other services not specifically approved as audit services or audit-related services and tax services so long as the services are not prohibited by SEC or PCAOB rules and would not otherwise impair the independence of the independent auditor.

    All of the services performed by Deloitte during the year ended December 31, 20182020 and 20172019 were approved in advance by the Audit Committee pursuant to the pre-approval policy.

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    OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR RATIFICATION OF THE SELECTION OF DELOITTE AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2021.
    58TERMINIX

    OTHER BUSINESS

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    The board does not know of any matters which will be brought before the Annual Meeting other than those specifically set forth in the notice of meeting. If any other matters are properly introduced at the meeting for consideration, including, among other things, consideration of a motion to adjourn the meeting to another time or place, the individuals named in the accompanying proxy will have discretion to vote in accordance with their best judgment, unless otherwise restricted by law.

    A list of stockholders entitled to be present and vote at the Annual Meeting will be available at the Company'sCompany’s offices at 150 Peabody Place, Memphis, TN 38103, for inspection by the stockholders during regular business hours from March 7, 201926, 2021 to the date of the Annual Meeting. The list also will be available during the Annual Meeting for inspection by stockholders who are present.


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    Whether or not you expect to attend the Annual Meeting, if you received a proxy card or voting instruction card and choose to vote by mail, please complete, date and sign and promptly return the accompanying card in the provided postage-paid envelope, or vote via the Internet or by telephone, so that your shares may be represented at the Annual Meeting.

    By Order of the Board of Directors,
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    Dion Persson
    Senior Vice President and Interim General Counsel and Secretary
    April 9, 2021
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    QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND ANNUAL MEETING
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    What are the proxy materials?
    The accompanying proxy is delivered and solicited on behalf of the board of directors of Terminix Global Holdings, Inc. in connection with the 2021 Annual Meeting of Stockholders to be held at Terminix’s corporate office, located at 150 Peabody Place, Memphis, TN 38103, on Monday, May 17, 2021, at 6:00 p.m., local time. We are first sending this proxy statement and the accompanying form of proxy to stockholders on or about April 9, 2021. As a stockholder, you are invited to attend the Annual Meeting and are requested to vote on the items of business described in this proxy statement. This proxy statement includes information that we are required to provide to you under SEC rules and is designed to assist you in voting your shares. The proxy materials include our proxy statement for the Annual Meeting, our 2020 annual report to stockholders, which includes our Annual Report on Form 10-K for the year ended December 31, 2020, and the proxy card or a voting instruction card for the Annual Meeting.
    All stockholders and beneficial owners may access the proxy materials, free of charge, at www.proxyvote.com or on our website, at http://investors.terminix.com. If you would like to receive a paper copy of our proxy materials, free of charge, please write to Terminix Global Holdings, Inc., c/o Secretary, 150 Peabody Place, Memphis, TN 38103.
    Could the Date, Time and Location of the Annual Meeting Change Due to COVID-19?
    We currently intend to hold our Annual Meeting in person; however, we will continue to actively monitor issues related to COVID-19 and the impact of such on our Annual Meeting. We are sensitive to the public health and travel concerns our stockholders may have and the protocols that federal, state and local governments may impose or recommend. In response to the COVID-19 pandemic, it is possible that we may change the date, time or location of the Annual Meeting, or may conduct the Annual Meeting via the Internet or teleconference call (a “virtual meeting”) if we determine it is not possible or advisable to hold an in-person meeting. We will notify stockholders of any such changes as promptly as practicable by issuing a press release that will be filed with the SEC and posted to our website.
    If we elect to proceed with a virtual meeting, we will ensure that our stockholders will be able to participate in the virtual meeting by providing a toll-free telephone number whereby they can access the meeting, ensuring any presentations are available to access via the Internet, afford stockholders the opportunity to ask questions and be able to vote their shares, if necessary, in conjunction with the Annual Meeting. If we elect to hold a virtual meeting for the 2021 Annual Meeting, we would do so only as a precautionary measure in response to the COVID-19 situation; we would expect to revert to an in-person annual meeting in 2022 and future years.
    If you plan to attend the Annual Meeting in person, please monitor our Investor Relations website at http://investors.terminix.com and check the website in advance of the Annual Meeting for any updates. Please also retain your Annual Meeting materials for access details you will need in the event we decide to hold a virtual meeting, including the control number included on your proxy card or in the voting instructions that accompanied your proxy materials as you will need this number should we determine to switch to virtual meeting. A virtual meeting will have no impact on your ability to provide your proxy prior to the Annual Meeting by using the Internet or telephone or by completing, signing, dating and mailing your proxy card, as explained in this proxy statement.
    What items of business will be voted on at the Annual Meeting?
    The items of business scheduled to be voted on at the Annual Meeting are:
    Proposal 1:The election of the three nominees named in this proxy statement as Class I directors for a term expiring at the 2024 Annual Meeting of Stockholders.
    Proposal 2:A non-binding advisory vote approving executive compensation.
    Proposal 3:A non-binding advisory vote on the frequency of future advisory votes approving executive compensation.
    Proposal 4:The ratification of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2021.
    To transact such other business as may properly come before the Annual Meeting or any reconvened meeting following any adjournment or postponement thereof.
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    TABLE OF CONTENTS
    2021 ANNUAL
    PROXY STATEMENT
    QUESTIONS AND ANSWERS ABOUT THE
    PROXY MATERIALS AND ANNUAL MEETING
    How does the board of directors recommend I vote on these proposals?
    Proposal 1:“FOR” each of the nominees named in this proxy statement as Class I directors for a term expiring at the 2024 Annual Meeting of Stockholders.

    Proposal 2:By Order of“FOR” the Board of Directors,non-binding advisory vote approving executive compensation.


    Proposal 3:

    GRAPHIC
    “FOR Every Year” on the frequency of future advisory votes approving executive compensation.

    Proposal 4:

    Michael C. Bisignano

    “FOR” the ratification of Deloitte as the Company’s independent registered public accounting firm for the year ending December 31, 2021.
    At the discretion of the proxy holders, either FOR or AGAINST, any other matter or business that may properly come before the Annual Meeting.
    As of the date hereof, our board of directors is not aware of any other such matter or business to be transacted at our Annual Meeting. If other matters requiring a vote of the stockholders arise, the persons designated as proxies will vote the shares of common stock of the Company, par value $0.01 per share, represented by the proxies in accordance with their judgment on those matters.
    Who is entitled to vote at the Annual Meeting?
    The record date for stockholders entitled to notice of, and to vote at, the Annual Meeting is March 26, 2021. At the close of business on that date, we had 129,861,771 shares of common stock outstanding and entitled to be voted at the Annual Meeting held by two stockholders of record and approximately 60,500 beneficial stockholders. A quorum is required for our stockholders to conduct business at the Annual Meeting. The presence in person or by proxy of the holders of record of a majority of the shares of common stock entitled to vote at the Annual Meeting is necessary to constitute a quorum at the Annual Meeting. Each outstanding share of common stock is entitled to one vote. Dissenters’ rights are not applicable to any of the matters being voted upon at the Annual Meeting.
    By granting a proxy, you authorize the persons named in the proxy to represent you and vote your shares at the Annual Meeting. Those persons will also be authorized to vote your shares to adjourn the Annual Meeting from time to time and to vote your shares at any adjournments or postponements of the Annual Meeting.
    Registered Stockholders. If your shares are registered directly in your name with our transfer agent, Computershare Trust Company, N.A. (“Computershare”), you are considered the stockholder of record with respect to those shares, and the proxy materials were provided to you directly by us. As a stockholder of record, you have the right to grant your voting proxy directly to the individuals listed on the proxy card in one of the manners listed on the proxy card or to vote in person at the Annual Meeting.
    Beneficial Stockholders. If your shares are held in a stock brokerage account or by a broker, bank, trustee or other nominee, you are considered the beneficial owner of shares held in “street name,” and the proxy materials were forwarded to you by your broker, bank, trustee or other nominee, who is considered, with respect to those shares, the stockholder of record. As the beneficial owner, you have the right to direct your broker, bank, trustee or other nominee how to vote your shares using the methods prescribed by your broker, bank, trustee or other nominee on the voting instruction card you received with the proxy materials. Beneficial owners are also invited to attend the Annual Meeting. However, since you are not the stockholder of record, you may not vote your shares in person at the Annual Meeting unless you follow your broker’s, bank’s, trustee’s or other nominee’s procedures for obtaining a legal proxy.
    What votes are required to approve each of the proposals?
    Proposal 1, the nominees for Class I director will be elected by a majority of the votes cast with respect to such director nominee’s election. The “majority of votes cast” means that the number of shares voted “for” a director nominee must exceed the number of votes cast “against” that director nominee’s election. In accordance with our amended and restated by-laws, stockholders do not have the right to cumulate their votes for the election of directors.
    Proposal 2, the non-binding advisory vote approving executive compensation, will be determined by the affirmative vote of the holders of at least a majority of the outstanding shares of common stock present in person or represented by proxy at the Annual Meeting and entitled to vote. As an advisory vote, this proposal is not binding. However, our board of directors and Compensation Committee will consider the outcome of the vote when making future compensation decisions for our executive officers.
    Proposal 3, the non-binding advisory vote on the frequency of future advisory votes approving executive compensation, will be determined by a plurality of the votes cast of the outstanding shares of common stock present in person or represented by proxy at the Annual Meeting and entitled to vote, which means that the option receiving the highest number of votes will be determined to be the preferred frequency. As an advisory vote, this proposal is not binding. However, our board of directors and Compensation Committee will consider the choice that receives the most votes in making future decisions regarding the frequency of future advisory votes approving executive compensation.
    Proposal 4, the ratification of the selection of Deloitte as our independent registered public accounting firm for the fiscal year ending December 31, 2021, will be determined by the affirmative vote of the holders of at least a majority of the outstanding shares
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    Senior Vice President, General Counsel and SecretaryQUESTIONS AND ANSWERS ABOUT THE
    PROXY MATERIALS AND ANNUAL MEETING
    2021 ANNUAL
    PROXY STATEMENT

    of common stock present in person or represented by proxy at the Annual Meeting and entitled to vote. The Audit Committee has sole and direct responsibility for the appointment, retention, termination, compensation, evaluation and oversight of the work of any independent registered public accounting firm engaged by the Company. The Audit Committee has already appointed Deloitte as our independent registered public accounting firm for the fiscal year ending December 31, 2021. In the event of a negative vote on the ratification, the Audit Committee may reconsider its appointment of Deloitte for 2021 and will consider the outcome of the vote when making appointments of our independent registered public accounting firm in future years. Even if the appointment is ratified, the Audit Committee, in its discretion, may direct the appointment of a different independent registered public accounting firm at any time during the year if the Audit Committee determines that such a change would be in the Company’s and the stockholders’ best interests.
    How are broker non-votes and abstentions counted?
    The presence of a majority of the outstanding shares of common stock entitled to vote at the Annual Meeting, either in person or by proxy, will constitute a quorum. Shares of common stock represented by proxies at the meeting, including broker non-votes and those that are marked “ABSTAIN” will be counted as shares present for purposes of establishing a quorum. Brokers or nominees holding shares for a beneficial owner may only vote on routine matters on behalf of a beneficial owner that does not provide voting instructions for their shares. A broker non-vote occurs when a broker or nominee holding shares for a beneficial owner has not received instructions from the beneficial owner and, therefore, does not vote on a non-routine matter. Because broker non-votes are not voted affirmatively or negatively, they will have no effect on the approval of any of the proposals, except where brokers may exercise their discretion on routine matters. Neither withholding authority to vote with respect to one or more nominees nor a broker non-vote will have an effect on the outcome of the election of directors in Proposal 1 or the advisory vote on the frequency of future advisory votes approving executive compensation in Proposal 3. As to Proposals 2 and 4, shares represented by proxies that are marked “ABSTAIN” will have the effect of a vote against the proposal, while a broker non-vote will not have an effect on the outcome of any proposal other than Proposal 4. Only the ratification of the selection of Deloitte as our independent registered public accounting firm in Proposal 4 is considered a routine matter. Your broker will therefore not have discretion to vote on the “non-routine” matters set forth in Proposals 1-3 absent direction from you. It is, therefore, important that you vote your shares.
    What happens if a director nominee does not get a majority vote?
    Following certification of the stockholder vote in an uncontested election, any incumbent director who did not receive a majority of the votes cast for his or her election shall promptly tender his or her resignation, contingent upon acceptance of such resignation by the board, to the Chairman of the Board. The Chairman of the Board shall inform the Nominating and Corporate Governance Committee of such tender of resignation, and the Nominating and Corporate Governance Committee shall consider such resignation and recommend to the board of directors whether to accept the tendered resignation or reject it or whether any other action should be taken. In deciding upon its recommendation, the Nominating and Corporate Governance Committee shall consider all relevant factors, including without limitation the qualifications of the director who has tendered his or her resignation and the director’s contribution to the Company and the board. The board will act on the recommendation of the Nominating and Corporate Governance Committee no later than 90 days after the certification of the stockholder vote and disclose the decision by filing a Form 8-K with the SEC. The board shall consider the factors considered by the Nominating and Corporate Governance Committee and such additional information and factors that the board deems relevant.
    Can I vote in person at the Annual Meeting?
    For beneficial stockholders with shares registered in the name of a brokerage firm or bank or other similar organization, you will need to obtain a legal proxy from the broker, bank, trustee or other nominee that holds your shares before you can vote your shares in person at the Annual Meeting. For stockholders of record with shares registered directly in their names with Computershare, you may vote your shares in person at the Annual Meeting.
    What do I need to do to attend the Annual Meeting in person?
    Space for the Annual Meeting is limited and admission will be granted on a first-come, first-served basis. Stockholders should be prepared to present (1) valid government photo identification, such as a driver’s license or passport; and (2) beneficial stockholders holding their shares through a broker, bank, trustee or other nominee will need to bring proof of beneficial ownership as of March 21, 2019

    26, 2021, the record date, such as their most recent account statement reflecting their stock ownership prior to March 26, 2021, a copy of the voting instruction card provided by their broker, bank, trustee or other nominee or similar evidence of ownership.
    Can I vote by telephone or Internet?
    Stockholders of record with shares registered directly in their names with Computershare will be able to vote using the telephone and Internet. For beneficial stockholders with shares registered in the name of a broker, bank, trustee or other nominee, a number of brokerage firms and banks are participating in a program that offers telephone and Internet voting options. Stockholders should refer to the voting instruction card provided by their broker, bank, trustee or other nominee for instructions on the voting methods they offer. If your shares are held in an account at a broker, bank, trustee or other nominee participating in this program or registered
    62TERMINIX


    TABLE OF CONTENTS
    2021 ANNUAL
    PROXY STATEMENT
    QUESTIONS AND ANSWERS ABOUT THE
    PROXY MATERIALS AND ANNUAL MEETING

    TABLE OF CONTENTS

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    LOGO

    SERVICEMASTERTERMINIX GLOBAL HOLDINGS, INC.

    150 Peabody Place
    Memphis, TN 38103


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    VOTE BY INTERNET Before The Meeting - Go to www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information.proxy materials. Vote by 11:59 P.M. ETp.m. Eastern Time on 04/29/2019.May 16, 2021. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. ELECTRONICform.ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. SERVICEMASTER GLOBAL HOLDINGS, INC. 150 Peabody Place MEMPHIS, TN 38103 VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 P.M. ETp.m. Eastern Time on 04/29/2019.May 16, 2021. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. The Board of Directors recommends you vote FOR the following: 1. Election of Directors Nominees For 0 0 0 For 0 0 Against 0 0 0 Against 0 0 Abstain 0 0 0 Abstain 0 0 1A Laurie Ann Goldman 1B Steven B. Hochhauser 1C Nikhil M. Varty The Board of Directors recommends you vote FOR proposals 2. and 3.. 2. To hold a non-binding advisory vote approving executive compensation. 3. To ratify the selection of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the year ending December 31, 2019. NOTE: Such other business as may properly come before the meeting or any adjournment thereof. 0 For address change/comments, mark here. (see reverse for instructions) Please indicate if you plan to attend this meeting Yes 0 No 0 Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date 0000405772_1 R1.0.1.18


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    ADMISSION TICKET Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Annual Report and Notice & Proxy Statement are available at www.proxyvote.com . SERVICEMASTER GLOBAL HOLDINGS, INC. Annual Meeting of Shareholders April 30, 2019 2:00 PM local time This proxy is solicited by the Board of Directors The shareholder(s) hereby appoints Anthony D. DiLucente and Michael C. Bisignano, or either of them, as proxies, each with the power to appoint (his/her) substitute, and hereby authorizes them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of common stock of SERVICEMASTER GLOBAL HOLDINGS, INC. that the shareholder(s) is/are entitled to vote at the Annual Meeting of shareholder(s) to be held at Marriott Milwaukee West Hotel, located at W 231 N 1600 Corporate Court, Waukesha, WI 53186 on April 30, 2019 at 2:00 PM, local time, and any adjournment or postponement thereof. This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors' recommendations. In their discretion, the proxies are authorized to vote upon such other business as may properly come before the meeting. Address change/comments: (If you noted any Address Changes and/or Comments above, please mark corresponding box on the reverse side.) Continued and to be signed on reverse side 0000405772_2 R1.0.1.18