AAR CORP — Form 10-Q

AAR CORP adopted three compensation instruments effective July 23, 2026 for Fiscal 2027 (year ending May 31, 2027): (1) a Short-Term Incentive Plan (STIP) paying cash bonuses based 80% on Earnings Per Share achievement and 20% on Working Capital Turns, with payouts ranging 0–200% of target; (2) Restricted Stock Agreements with ratable vesting (33⅓% per year over 3 years) or cliff vesting (100% at year 3); and (3) Performance Restricted Stock tied to income from continuing operations, ROIC, and relative TSR targets over the 3-year period. Specific dollar amounts, participant names, and share counts are not disclosed in this filing—only the plan templates are provided. No changes to existing plans are announced; these appear to be standard annual compensation framework resets.