Governance best practices Risk management Good corporate governance is an essential part of our culture. We review our corporate governance policies and procedures on an annual basis. Effective risk management is an important Board priority. The We strive to emulate “best practices,” tailoring them, as appropriate, to fit our culture, strategy and performance. We believe that we comply risk oversight function at the Board begins with a fundamental with all applicable SEC and NYSE corporate governance rules and regulations. We also have adopted additional corporate governance practices understanding of AAR’s culture, business and strategy. The Board that we believe are in the best interests of AAR and our stockholders. delegates significant aspects of its risk management oversight responsibilities to its committees. The Board also works with management to manage risk through robust and comprehensive internal processes, an effective internal control environment and an Independent Lead Director Code of business ethics and conduct enterprise risk management program. Majority voting in uncontested director elections Ethics hotline policy Stock ownership and retention guidelines Related person transaction policy Annual stock grant to non-employee directors Disclosure committee for financial reporting Executive sessions of Independent directors Annual stockholder approval of executive compensation Independent compensation consultant Stockholder engagement program Annual Board and Board Committee self-evaluations Separation of Chairman and CEO Roles Director orientation and continuing education programs Independent Board Committees All directors on the audit committee are “audit Enterprise Risk Management Program committee financial experts” 34