Company: JACK
Filing Date: 2025-01-27
Form Type: DEF 14A
Source: 0000807882-25-000004
Chunk: 54

Company: JACK IN THE BOX INC
Filing Date: 2025-01-27
Form: DEF 14A
Chunk 54
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, such that compensation paid to certain covered employees in excess of $1 million per taxable year will not be deductible unless it qualifies for transition relief applicable to certain arrangements in place as of November 2, 2017 (the “Section 162(m) Transition Relief”). Our compensation programs have historically been designed to provide for a substantial portion of an executive’s compensation to be delivered through programs generally intended to qualify as performance-based compensation under Section 162(m), including our incentive plan in the form of stock options. However, any such compensation will no longer qualify for the performance-based compensation exemption under Section 162(m) unless it qualifies for the Section 162(m) Transition Relief and despite the Committee’s efforts to structure certain compensation to qualify for a maximum allowable tax deduction, no assurance can be given that such compensation will be eligible for the exemption from the $1 million deductibility limit imposed by the Section 162(m). Further, the Committee may modify compensation that was initially intended to be exempt from the $1 million deductibility limit under Section 162(m) if it determines that such modifications are consistent with our business needs. The Committee will continue to monitor the applicability of Section 162(m) to the Company’s ongoing compensation arrangements. 53 JACK IN THE BOX INC. | 2025 PROXY STATEMENT

| CD&A — VII. ADDITIONAL COMPENSATION INFORMATION |

Internal Revenue Code Section 409A Under IRC Section 409A, amounts deferred by an employee under a non-qualified deferred compensation plan (such as the EDCP) may be included in gross income when deferred and be subject to a 20% additional federal tax, unless the plan complies with certain requirements related to the timing of deferral election and distribution decisions. The Company administers the EDCP intending to comply with Section 409A. The Company intends that its stock options are exempt from Section 409A. Expensing of Stock and Option Awards The Company accounts for compensation expense associated with stock and option awards in accordance with the Financial Accounting Standards Board (“FASB”) authoritative guidance on stock compensation. For further details regarding the accounting for the compensation expense associated with stock and option awards, refer to Note 13, Share -Based Employee Compensation in the Company’s 2024 Annual Report on Form 10-K. i. Insider Trading Policy and Equity Grant Timing Practices We maintain an Insider Trading Policygoverning the purchase, sale, and other disposition of Company securities that is applicable to the Company, all of our directors, officers, and employees