Ryder System, Inc.d1lge852tjjqow.cloudfront.net/CIK-0000085961/69fc1026-f255-4f61-ab7… · NOTICE...

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

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Ryder System, Inc.11690N.W.105StreetMiami,Florida33178

NOTICE OF 2016 ANNUAL MEETING OF SHAREHOLDERS

Time: 10:00a.m.,EasternDaylightTime Date: May6,2016 Place: RyderSystem,Inc.Headquarters

11690N.W.105thStreetMiami,Florida33178

Purpose: 1.Toelectthreedirectorsforaone-yeartermexpiringatthe2017AnnualMeetingofShareholders.

2.ToratifytheappointmentofPricewaterhouseCoopersLLPasourindependentregisteredcertifiedpublic

accountingfirmforthe2016fiscalyear. 3.Toapprove,onanadvisorybasis,thecompensationofournamedexecutiveofficers. 4.ToapprovetheAmendedandRestated2012EquityandIncentiveCompensationPlan. 5.ToapprovetheAmendedandRestatedStockPurchasePlanforEmployees. 6.Toconsideranyotherbusinessthatisproperlypresentedatthemeeting.Who May Vote: YoumayvoteifyouwerearecordownerofourcommonstockatthecloseofbusinessonMarch4,2016.Proxy Voting: Yourvoteisimportant.Youmayvote: •viaInternet; •bytelephone; •bymail,ifyoureceivedapapercopyoftheseproxymaterials;or •inpersonatthemeeting.

ByorderoftheBoardofDirectors,

RobertD.FatovicExecutiveVicePresident,ChiefLegalOfficerandCorporateSecretary

Miami,FloridaMarch21,2016

Thisproxystatementandtheformofproxy,alongwithourannualreportonForm10-KfortheyearendedDecember31,2015andtheshareholderletter,werefirstsentorgiventoshareholdersonoraboutMarch21,2016.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING TO BE HELD ON FRIDAY,MAY 6, 2016.

Ryder’s proxy statement and annual report are available online at: http://www.proxyvote.com

TABLE OF CONTENTS

PagePROXYSUMMARY 1INFORMATIONABOUTOURANNUALMEETING 4ELECTIONOFDIRECTORS(PROPOSAL1) 5CORPORATEGOVERNANCE 12BOARDOFDIRECTORS 12AUDITCOMMITTEE 17COMPENSATIONCOMMITTEE 17CORPORATEGOVERNANCEANDNOMINATINGCOMMITTEE 18FINANCECOMMITTEE 20RISKMANAGEMENT 21RELATEDPERSONTRANSACTIONS 22RATIFICATIONOFINDEPENDENTREGISTEREDCERTIFIEDPUBLICACCOUNTINGFIRM(PROPOSAL2) 23AUDITCOMMITTEEREPORT 25SECURITYOWNERSHIPOFOFFICERSANDDIRECTORS 26SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERS 27SECTION16(a)BENEFICIALOWNERSHIPREPORTINGCOMPLIANCE 27COMPENSATIONDISCUSSIONANDANALYSIS 28COMPENSATIONCOMMITTEEREPORTONEXECUTIVECOMPENSATION 46EXECUTIVECOMPENSATION 47DIRECTORCOMPENSATION 58ADVISORYVOTEONEXECUTIVECOMPENSATION(PROPOSAL3) 60APPROVALOFAMENDEDANDRESTATED2012EQUITYANDINCENTIVECOMPENSATIONPLAN(PROPOSAL4) 62APPROVALOFAMENDEDANDRESTATEDSTOCKPURCHASEPLANFOREMPLOYEES(PROPOSAL5) 73OTHERMATTERS 78APPENDIXA-AMENDEDANDRESTATED2012EQUITYANDINCENTIVECOMPENSATIONPLAN A-1APPENDIXB-AMENDEDANDRESTATEDSTOCKPURCHASEPLANFOREMPLOYEES B-1

Table of Contents RyderSystem,Inc.| 2016ProxyStatement i

Proxy Summary

______________________________________________________ PROXY SUMMARY

______________________________________________________

This proxy summary provides selectedhighlights of someof theinformation containedelsewherein this proxy statement. Pleasereadtheentireproxystatementwithcarebeforevoting.

ANNUAL MEETING

Date and Time: Friday,May6,2016at10:00a.m.(EasternDaylightTime)Place: RyderHeadquarters,11690N.W.105thStreet,Miami,Florida33178Record Date: March4,2016Voting: EachshareoftheCompany'scommonstockoutstandingatthecloseofbusinessonMarch4,2016hasonevoteon

eachmatterthatisproperlysubmittedforavoteattheAnnualMeeting.

VOTING MATTERS AND BOARD RECOMMENDATION

Matter Board RecommendationPage

ReferenceElectionofDirectors FOReachDirectorNominee 5RatificationofPricewaterhouseCoopersLLPasAuditors FOR 23AdvisoryVoteonExecutiveCompensation FOR 60ApprovalofAmendedandRestated2012EquityandIncentiveCompensationPlan FOR 62

ApprovalofAmendedandRestatedEmployeeStockPurchasePlan FOR 73

2015 FINANCIAL HIGHLIGHTS

In2015,wehadrevenueandearningsgrowthinallsegmentsandexecutedonkeyelementsofourlong-termgrowthstrategy.Specifically,

ØRecordoperatingrevenueof$5.6billion(up6%from2014)andrecordcomparableearningspershareof$6.13(up10%from2014).*

ØTotalrevenueremainedat$6.6billion,withgrowthinoperatingrevenueoffsetbylowerfuelcostspassedthroughtocustomersandnegativeimpactsfromforeignexchange.

ØOperatingrevenuegrowthinallbusinesssegments,withearningsbeforetaxgrowthof7%inourFleetManagementSolutions(FMS)businesssegment.

ØStrongreturnonequityandsolidreturnoncapitalwithapositivespreadbetweencostofcapitalandreturnoncapitalof140basispoints,thehighestinthelast10years,whichRyderiscontinuouslystrivingtoimprove.

FormoreinformationrelatingtotheCompany’s2015financialperformance,pleasereviewour2015annualreportonForm10-K.

*Operatingrevenueandcomparableearningspersharearenon-GAAPfinancialmeasures.ForareconciliationtototalrevenueandGAAPEPS,respectively,refertoourForm10-KfortheyearendedDecember31,2015.

Table of Contents RyderSystem,Inc.| 2016ProxyStatement 1

Proxy Summary

BOARD AND GOVERNANCE HIGHLIGHTS

Shareholder Engagement:

ü Activeshareholderengagement.In2015,wereachedouttoourlargestshareholdersconstitutingover50%ofouroutstandingsharestorequestfeedbackonourgovernanceprofileandcompensationstructure,includingspecificfeedbackonhowbesttoimplementproxyaccess,andwereceivedsubstantivefeedbackfromshareholdersholdingnearly20%ofoutstandingshares.Weusedthefeedbackwereceived,aswellastheviewsexpressedbyourshareholdersintheirpubliclyavailablegovernancepolicies,toadoptameaningfulproxyaccessrightwhichisappropriatelytailoredtoourshareholders.

2015 - 2016 Key Changes, Based on Shareholder Feedback:

ü Boardadoptedproxyaccessin2016• ownershipthresholdof3%• holdingperiodof3years• maysubmitnomineesupto20%ofourBoardor2directors(whicheverisgreater)• upto25shareholdersmaygrouptogethertoreachthe3%ownershipthreshold

ü Annualdirectorelectionsbeginningin2016

ü Loweredourgeneralvotingrequirementtoamajorityofvotescast(fromamajorityofsharesoutstanding)in2015

ü Begandisclosingourpoliticalcontributionspolicyandourannualdirectcorporatecontributionstopoliticalcandidatesonourwebsitein2015

ü Loweredthemaximumnumberofotherpubliccompanyboardsthatournon-employeedirectorscansiton(maximumoffour)intheCorporateGovernanceGuidelines

Board Facts:

ü 10outof11independentdirectors

ü StrongLeadIndependentDirectorrole,withoversightofannualBoardevaluationprocessandsearchprocessfornewdirectors

ü AverageBoardtenureislessthan8years

ü StrongBoarddiversitybasedonexperience,tenure,age,genderandrace;6of11directorsarewomenorminorities

ü Noneofourdirectorsserveonmorethan3otherpubliccompanyboards

ü StrongBoardoversightofriskmanagementandcomplianceprocess

ü Norelatedpersontransactionsin2015

Shareholder Rights:

ü Nostockholderrightsplan(poisonpill)

ü Shareholderscancallaspecialmeetingwith10%ofsharesoutstanding

ü Majorityvotestandardfordirectorelections,withapluralitycarve-outforcontestedelections


Proxy Summary

EXECUTIVE COMPENSATION HIGHLIGHTS

• TheBoardamendedthe2012EquityandIncentiveCompensationPlantoprovidefordouble-triggervestingforallfutureincentivegrantsuponachangeincontrol,amongotherchanges,andisproposingthisamendmenttoshareholdersforapprovalatthe2016AnnualMeeting.Ourcashseveranceandourannualcashincentiveawards(bonus)hadalreadybeensubjecttodouble-triggervestingprovisions.

• CEOcompensationisamixofbasesalary(13%),short-termincentives(20%)andlong-termincentives(67%)whichwebelieveprovidescompensationopportunitiesmeasuredbyavarietyoftimehorizonstobalanceournear-termandlong-termstrategicgoals.

• Avarietyofdistinctperformancemetrics(operatingrevenue,comparableearningspershare,totalshareholderreturnandreturnoncapital)areusedintheshort-termandlong-termincentiveplans.This“portfolio”approachtoperformancemetricsencouragesexecutivestofocusonoverall,sustainableCompanyperformance.

• Goalsareapprovedbyourindependentdirectorsandtakeintoaccountourhistoricalperformance,currentstrategicinitiativesandtheexpectedmacroeconomicenvironment.In2015,thetargetoperatingrevenuewas$5.67billion,whichwasan8.0%increasefromour2014actualoperatingrevenue.Similarly,thetargetcomparableearningspersharefor2015was$6.40,a14.7%increasefrom2014.

• Short-termandlong-termincentivecompensationprogramsaredesignedwithpayoutslopesthatsupportourpayforperformancephilosophy.Inaddition,wecapthemaximumpayoutofourannualcashincentiveawardsbasedonapercentageofourEBT,andcapourperformance-basedrestrictedstockrightsandperformance-basedcashawardsat125%oftargettolimitthepotentialforexcessiverisktaking.

• Equityincentiveprogramsandstockownershipguidelines(fourtimesbasesalaryfortheCEOandtwotimesforallotherNEOs)aredesignedtoalignmanagementandshareholderinterestsbyprovidingvehiclesforexecutiveofficerstoaccumulateandmaintainanownershippositionintheCompany.

• Weincorporateseveralriskmitigationpoliciesintoourcompensationprogram,including:◦ TheCompensationCommittee’sabilitytouse“negativediscretion”toalignappropriatepayoutstoCompanyandindividual

performance;◦ Anti-hedgingandanti-pledgingpolicies;and◦ Writtenclawbackpolicyforfinancialrestatementsresultingfromexecutivemisconduct.

BOARD OF DIRECTORS

Name AgeDirector

Since Professional Background Indep Committee MembershipsJohnM.Berra 68 2003 RetiredEVPofEmersonElectricCompany X Compensation&FinanceRobertJ.Eck 57 2011 President&CEOofAnixterInternational,Inc. X Compensation&FinanceRobertA.Hagemann 59 2014 RetiredCFOofQuestDiagnosticsIncorporated X Audit&FinanceL.PatrickHassey 70 2005 RetiredChairman&CEOofAlleghenyTechnologies

IncorporatedX Compensation&Governance

MichaelF.Hilton 61 2012 President&CEOofNordsonCorporation X Compensation&GovernanceTamaraL.Lundgren 58 2012 President&CEOofSchnitzerSteelIndustries,Inc. X Audit&GovernanceLuisP.Nieto,Jr. 60 2007 RetiredPresidentoftheConsumerFoodsGroupfor

ConAgraFoodsInc.X Audit&Finance

RobertE.Sanchez 50 2013 Chair&CEOofRyder AbbieJ.Smith 62 2003 ProfessorofAccountingattheUniversityofChicagoBooth

SchoolofBusinessX Audit&Finance

E.FollinSmith 56 2005 RetiredEVP,CFO&ChiefAdministrativeOfficerofConstellationEnergyGroup,Inc.

X Compensation&Governance

HanselE.Tookes,II 68 2002 RetiredPresidentofRaytheonInternational X Audit&Governance


Information About our Annual Meeting

RYDER SYSTEM, INC.11690 N.W. 105th STREET

MIAMI, FLORIDA 33178______________________________________________________

PROXY STATEMENT______________________________________________________

INFORMATION ABOUT OUR ANNUAL MEETING

YouarereceivingthisproxystatementbecauseyouownsharesofRydercommonstockthatentitleyoutovoteatthe2016AnnualMeetingofShareholderstobeheldonFriday,May6,2016at10:00a.m.,EasternDaylightTime,atourcorporateheadquarters.OurBoardofDirectors(Board)issolicitingproxiesfromshareholderswhowishtovoteatthemeeting.Byusingaproxy,youcanvoteevenifyoudonotattendthemeeting.Thisproxystatementdescribesthemattersonwhichyouarebeingaskedtovoteandprovidesinformationonthosematterssothatyoucanmakeaninformeddecision.

AttheAnnualMeetingyouwillbeaskedtovoteonthefollowingfiveproposals.OurBoardrecommendationforeachproposalissetforthbelow.

Proposal Board Recommendation1.Toelectthreedirectorsasfollows:RobertJ.Eck,TamaraL.LundgrenandAbbieJ.Smithfora

one-yeartermexpiringatthe2017AnnualMeetingofShareholders.FOReachdirectornominee

2.ToratifytheappointmentofPricewaterhouseCoopersLLPasourindependentregisteredcertifiedpublicaccountingfirmforthe2016fiscalyear.

FOR

3.Toapprove,onanadvisorybasis,thecompensationofournamedexecutiveofficers,whichwerefertoas“SayonPay”.

FOR

4.ToapprovetheAmendedandRestated2012EquityandIncentiveCompensationPlan. FOR5.ToapprovetheAmendedandRestatedStockPurchasePlanforEmployeestoincreasethe

numberofsharesissuableunderthePurchasePlanby1,000,000shares.FOR

If you sign and return your proxy without making any selections, your shares will be voted “FOR” each of the director nominees and“FOR” Proposals 2 - 5.

Ifothermattersproperlycomebeforethemeeting,theproxyholderswillhavetheauthoritytovoteonthosemattersonyourbehalfattheirdiscretion.Asofthedateofthisproxystatement,wearenotawareofanymattersthatwillcomebeforethemeetingotherthanthosedisclosedinthisproxystatement.


Election of Directors (Proposal 1)

ELECTION OF DIRECTORS

(Proposal 1)

UnderourBy-Laws,directorsareelectedannuallybeginningin2016.Previously,directorswereelectedforthree-yearterms,typicallywithone-thirdoftheBoardstandingforelectioninanygivenyear.Thedirectorscurrentlyservingthree-yeartermswillcontinuetoservetheremainderoftheirterms.Thereafter,eachdirectorwillbeelectedannuallywhenhisorherthree-yeartermexpires.Directorsupforelectionatthe2016AnnualMeetingwillbenominatedforone-yearterms.

RobertJ.Eck,TamaraL.LundgrenandAbbieJ.Smitharecurrentlyservingtermsthatexpireatthe2016AnnualMeeting.UpontherecommendationoftheCorporateGovernanceandNominatingCommittee(GovernanceCommittee),ourBoardhasnominatedMr.Eck,Ms.LundgrenandMs.AbbieSmithforre-electionatthe2016AnnualMeetingforaone-yeartermthatexpiresatthe2017AnnualMeeting.

L.PatrickHassey,MichaelF.HiltonandHanselE.Tookes,IIarecurrentlyservingtermsthatexpireatthe2017AnnualMeeting.JohnM.Berra,RobertA.Hagemann,LuisP.Nieto,Jr.,E.FollinSmithandRobertE.Sanchezarecurrentlyservingtermsthatexpireatthe2018AnnualMeeting.

Webelievethateachofourdirectorshastheexperience,skillsandqualitiestofullyperformhisorherdutiesasadirectorandcontributetooursuccess.Ourdirectorswerenominatedbecauseeachindividualpossessesthehigheststandardsofpersonalintegrityandinterpersonalandcommunicationskills,ishighlyaccomplishedinhisorherfield,hasanunderstandingoftheinterestsandissuesthatareimportanttoourshareholdersandisabletodedicatesufficienttimetofulfillinghisorherobligationsasadirector.Ourdirectors,asagroup,complementeachotherandeachother’srespectiveexperiences,skillsandqualities.Ourdirectorsmakeupadiversebodyintermsofage,gender,tenure,ethnicbackgroundandprofessionalexperiencebutengenderacohesivebodyintermsofBoardprocessandcollaboration.

Eachdirector’sprincipaloccupationandotherpertinentinformationabouthisorherparticularexperience,qualifications,attributesandskillsthatledtheBoardtoconcludethatsuchpersonshouldserveasadirectorappearsonthefollowingpages.

Ifyouareabeneficialshareholderanddonotgiveyournomineeinstructions,yournomineedoesnothavetheabilitytovoteinfavororagainstthedirectornominees.Wethereforeurgeyoutoreturnyourproxycardandvoteyoursharesastothisproposal.

The Board recommends a vote FOR the election of each of the director nominees.



Nominees for Director

FOR A TERM OF OFFICE EXPIRING AT THE 2017 ANNUAL MEETING

Robert J. Eck

CURRENT PRINCIPAL OCCUPATION:

PresidentandChiefExecutiveOfficerofAnixterInternational,Inc.(Anixter),aglobaldistributorofnetworkandsecuritysolutions,electricalandelectronicsolutions,andutilitypowersolutionswith$6.2billioninannualrevenue.HealsoservesasPresidentandChiefExecutiveOfficerofAnixterInc.,asubsidiaryofAnixter.

DESCRIPTION OF BUSINESS EXPERIENCE:

Mr.Eckhasheldbothpositionssince2008.From2007to2008,heservedasExecutiveVicePresidentandChiefOperatingOfficerofAnixter.Priortothatposition,Mr.EckservedasExecutiveVicePresidentofEnterpriseCablingandSecuritySolutionsforAnixterfrom2004to2007.In2003,heservedasSeniorVicePresident—PhysicalSecurityProductsandIntegratedSupplyofAnixterInc.Mr.EckjoinedAnixterin1989andheldrolesofincreasingresponsibilityinstrategy,supplychainmanagement,salesandmarketing,andhumanresources.

Other Public Board Memberships •AnixterInternational,Inc.

Qualifications

TheBoardnominatedMr.EckasadirectorbecauseofhisexperienceasaBoardmember,PresidentandChiefExecutiveOfficerofalarge,publiccompanyandpastseniorleadershipexperienceinsupplychainmanagement,domesticandinternationaloperations,marketingandbusinessdevelopment.

Director since:May 2011 Committees:CompensationFinance Age :57

Tamara L. Lundgren


PresidentandChiefExecutiveOfficerofSchnitzerSteelIndustries,Inc.,apositionshehasheldsince2008.SchnitzerSteelisoneofthelargestmanufacturersandexportersofrecycledferrousmetalproductsintheUnitedStateswith$2billioninannualrevenueandmorethan100operatingfacilitiesintheU.S.,PuertoRicoandCanada.


Ms.LundgrenjoinedSchnitzerSteelin2005asChiefStrategyOfficerandsubsequentlyservedasExecutiveVicePresidentandChiefOperatingOfficerfrom2006until2008.PriortojoiningSchnitzerSteel,Ms.LundgrenwasamanagingdirectoratJPMorganChaseinLondonandmanagingdirectoratDeutscheBankAGinNewYorkandLondon.BeforejoiningDeutscheBank,Ms.LundgrenwasapartneratthelawfirmofHogan&Hartson,LLPinWashington,D.C.

Other Public Board Memberships•SchnitzerSteelIndustries,Inc.

Other Relevant Experience•DirectoroftheFederalReserveBankofSanFrancisco,PortlandBranch

•ChairmanoftheExecutiveCommitteeoftheU.S.ChamberofCommerce

Qualifications

TheBoardnominatedMs.LundgrenasadirectorbecauseofherexperienceasaBoardmember,PresidentandChiefExecutiveOfficerofapubliccompanyandherexperienceinoperations,strategy,financeandcorporatelaw.

Director since:October2012 Committees:AuditCorporateGovernance&Nominating Age :58



Abbie J. Smith


BorisandIreneSternDistinguishedServiceProfessorofAccountingattheUniversityofChicagoBoothSchoolofBusiness.


Shejoinedtheirfacultyin1980uponcompletionofherPh.D.inAccountingatCornellUniversity.Theprimaryfocusofherresearchiscorporaterestructuring,transparencyandcorporategovernance.Shewasnominatedfora2005SmithBreedenPrizeforherpublicationinTheJournalofFinanceandhasreceivedaMarvinBowerFellowshipfromtheHarvardBusinessSchool,aMcKinseyAwardforExcellenceinTeachingandaGEFoundationResearchGrant.

Other Public Board Memberships•HNICorporation

•DFAInvestmentDimensionsGroupInc.

•DimensionalInvestmentGroupInc.

Other Relevant Experience•TrusteeofcertainChicago-basedUBSFunds

QualificationsTheBoardnominatedMs.Smithasadirectorbecauseofheraccomplishededucationalbackgroundandacademicexperienceinaccounting,herpublishedworksandsignificantcontributionsintheareasofaccountingandcorporategovernanceandherexperienceservingonotherpubliccompanyboards.

Director since:July2003 Committees:AuditFinance Age :62



DIRECTORS CONTINUING IN OFFICE

John M. Berra


ServedasChairmanofEmersonProcessManagement,agloballeaderinprovidingsolutionstocustomersinprocesscontrol,andExecutiveVicePresidentofEmersonElectricCompany,untilheretiredinOctober2010.


PriortoOctober2008,heservedasPresidentofEmersonProcessManagement.Mr.BerrajoinedEmerson'sRosemountdivisionasamarketingmanagerin1976andthereaftercontinuedassumingmoreprominentrolesintheorganizationuntil1997whenhewasnamedPresidentofEmerson'sFisher-Rosemountdivision(nowEmersonProcessManagement).PriortojoiningEmerson,Mr.BerrawasaninstrumentandelectricalengineerwithMonsantoCompany.

Other Public Board Memberships•NationalInstrumentsCorporation

Other Relevant Experience•ApastAdvisoryDirectortotheBoardofDirectorsofEmersonElectricCompany(untilOctober2010)

Qualifications

TheBoardnominatedMr.Berraasadirectorbecauseofhisexperienceinpositionsofexecutiveoversightandseniorleadershipinaglobalcompanywithadiversifiedbusinessaswellashisexperienceinglobalmarketingandoperationsandexpertiseintechnologyandengineering.

Director since:July 2003 Committees:CompensationFinance Age :68

Robert A. Hagemann


ServedasSeniorVicePresidentandChiefFinancialOfficerofQuestDiagnosticsIncorporateduntilheretiredin2013.


Mr.HagemannjoinedQuest’spredecessor,CorningLifeSciences,Inc.,in1992,andheldrolesofincreasingresponsibilityuntilhewasnamedChiefFinancialOfficerofQuestin1998.PriortojoiningCorning,Mr.HagemannheldseniorfinancialpositionsatPrimeHospitality,Inc.andCrompton&Knowles,Inc.HealsoheldvariouspositionsincorporateaccountingandauditatMerrillLynchandCompanyandErnst&Young.

Other Public Board Memberships•ZimmerBiometHoldings,Inc.

•GraphicPackagingHoldingCompany

Qualifications

TheBoardnominatedMr.HagemannasadirectorbecauseofhispastexperienceasChiefFinancialOfficerofapubliccompanyandotherseniormanagementexperienceinbusinessdevelopmentandstrategy,supplychainandgovernmentcontracting.

Director since:August2014 Committees:AuditFinance Age :59



L. Patrick Hassey


ServedasChairmanandChiefExecutiveOfficerofAlleghenyTechnologiesIncorporated(ATI),agloballeaderintheproductionofspecialtymaterialsuntilheretiredinMay2011.


Mr.HasseyalsoservedasPresidentofATIuntilAugust2010.HebecameChairmanin2004andPresidentandChiefExecutiveOfficerin2003.PriortoOctober2003,Mr.HasseyservedasanoutsidemanagementconsultanttoATIexecutivemanagement.Atpresent,Mr.HasseynolongerservesasaconsultantforATI.BeforejoiningATI,Mr.HasseyservedasExecutiveVicePresidentandamemberofthecorporateexecutivecommitteeofAlcoa,Inc.fromMay2000untilhisearlyretirementinFebruary2003.HeservedasExecutiveVicePresidentofAlcoaandGroupPresidentofAlcoaIndustrialComponentsfromMay2000toOctober2002.PriortoMay2000,Mr.HasseyservedasExecutiveVicePresidentofAlcoaandPresidentofAlcoaEurope,Inc.

Other Public Board Memberships•AlphaNaturalResources,Inc.

•KaiserAluminumCorporation

•ApastdirectorofATI(untilMay2011)

Qualifications

TheBoardnominatedMr.HasseyasadirectorbecauseofhispastexperienceasaBoardChairman,PresidentandChiefExecutiveOfficerofapubliccompanyandyearsinpositionsofexecutiveoversightandseniorleadershipinlarge,globalpubliccompaniesaswellashisexperienceindomesticandinternationaloperations.

Director since:December2005 Committees:CompensationCorporateGovernance&Nominating Age :70

Michael F. Hilton


PresidentandChiefExecutiveOfficerofNordsonCorporation,apositionhehasheldsincehejoinedNordsonin2010.Nordsonengineers,manufacturesandmarketsproductsandsystemsusedfordispensingadhesives,coatings,sealants,biomaterialsandothermaterialsinawidevarietyofendmarkets.


PriortojoiningNordson,Mr.HiltonservedasSeniorVicePresidentandGeneralManagerofAirProducts&Chemicals,Inc.from2007until2010withspecificresponsibilityforleadingthecompany'sglobalElectronicsandPerformanceMaterialssegment.Mr.HiltonjoinedAirProductsin1976whereheheldrolesofincreasingresponsibilityinavarietyofstaff,managementandoperationspositions.AirProductsservescustomersinindustrial,energy,technologyandhealthcaremarketsworldwidewithauniqueportfolioofatmosphericgases,processandspecialtygases,performancematerials,equipmentandservices.

Other Public Board Memberships•NordsonCorporation

•LincolnElectric

Qualifications

TheBoardnominatedMr.HiltonasadirectorbecauseofhisexperienceasaBoardMember,PresidentandChiefExecutiveOfficerofapubliccompanyandhispastseniorleadershipandglobaloperationsexperiencewithoversightoflargeanddiversebusinessunits.

Director since:July2012 Committees:CompensationCorporateGovernance&Nominating Age :61



Luis P. Nieto, Jr.


ServedasPresidentoftheConsumerFoodsGroupforConAgraFoodsInc.from2007untilheretiredin2009.


Mr.NietojoinedConAgrain2005andheldvariousleadershippositions,includingPresidentoftheMeatsGroupandRefrigeratedFoodsGroup.ConAgrafoodsisoneofthelargestpackagedfoodscompaniesinNorthAmerica.PriortojoiningConAgra,Mr.NietowaspresidentandChiefExecutiveOfficeroftheFederatedGroup,aleadingprivatelabelsuppliertotheretailgroceryandfoodserviceindustries,from2005to2002.From2000to2002,heservedasPresidentoftheNationalRefrigeratedProductsGroupofDeanFoodsCompany.PriortojoiningDeanFoods,Mr.NietoheldpositionsinbrandmanagementandstrategicplanningwithMissionFoods,KraftFoodsandtheQuakerOatsCompany.Mr.NietoisthePresidentofNietoAdvisoryLLC,aconsultingfirmandisaffiliatedwithAkoyaCapitalPartners.

Other Public Board Memberships•AutoZone,Inc.

Qualifications

TheBoardnominatedMr.Nietoasadirectorbecauseofhisseniorleadershipandexecutiveoversightexperienceatalargepubliccompanyaswellashisfinance,operationalandsupplychainexperience,andhisexpertiseinbrandmanagement,marketingandstrategicplanning.

Director since:February2007 Committees:AuditFinance Age :60

Robert E. Sanchez


ChairandChiefExecutiveOfficerofRyderSystem,Inc.Mr.SanchezwasappointedChairofRyder'sBoardinMay2013.


HewasappointedPresidentandChiefExecutiveOfficerinJanuary2013,atwhichtimehewasalsoelectedtoRyder'sBoard.Mr.SanchezjoinedRyderin1993andhasservedinpositionsinincreasingresponsibility,includingabroadrangeofleadershippositionsinseveralofRyder'sbusinesssegments.Mr.SanchezmostrecentlyservedasPresidentandChiefOperatingOfficerfromFebruary2012toDecember2012.Priortothatposition,heservedasPresidentofGlobalFleetManagementSolutions,Ryder'slargestbusinesssegment,fromSeptember2010toFebruary2012.Mr.SanchezalsoservedasExecutiveVicePresidentandChiefFinancialOfficerfromOctober2007toSeptember2010;asExecutiveVicePresidentofOperations,U.S.FleetManagementSolutionsfromOctober2005toOctober2007;andasSeniorVicePresidentandChiefInformationOfficerfromJanuary2003toOctober2005.Mr.SanchezhasbeenamemberofRyder'sExecutiveLeadershipteamsince2003.

Other Public Board Memberships•TexasInstrumentsIncorporated

Other Relevant Experience•MemberoftheBoardofDirectorsoftheTruckRentingandLeasingAssociation

Qualifications

TheBoardnominatedMr.SanchezasadirectorandappointedhimasBoardChairbecauseofhisroleasRyder'sChiefExecutiveOfficerandhisyearsofseniorleadershipexperienceatRyder,includinghisexperienceasPresidentandChiefOperatingOfficer,hisleadershipexperienceinseveralofRyder'sbusinesssegmentsandhisoversightandexperienceintheareasofglobaloperations,financeandinformationtechnology.

Director since:January2013 Committees:None

Age :50


E. Follin Smith


ServedastheExecutiveVicePresident,ChiefFinancialOfficerandChiefAdministrativeOfficerofConstellationEnergyGroup,Inc.,thenthenation'slargestcompetitivesupplierofelectricitytolargecommercialandindustrialcustomersandthenation'slargestwholesalepowerseller,untilMay2007.Ms.SmithjoinedConstellationEnergyGroupasSeniorVicePresident,ChiefFinancialOfficerinJune2001andwasappointedChiefAdministrativeOfficerinDecember2003.


BeforejoiningConstellationEnergyGroup,Ms.SmithwasSeniorVicePresidentandChiefFinancialOfficerofArmstrongHoldings,Inc.,thegloballeaderinhard-surfaceflooringandceilings.PriortojoiningArmstrong,Ms.SmithheldvariousseniorfinancialpositionswithGeneralMotors,includingChiefFinancialOfficerforGeneralMotors’DelphiChassisSystemsdivision.

Other Public Board Memberships•ApastdirectorofDiscoverFinancialServices(untilMay2014)

•ApastdirectorofKraftFoodsGroup(untilJuly2015)

Qualifications

TheBoardnominatedMs.SmithasadirectorbecauseofherdeepexperienceingovernanceoflargepubliccompaniesandbecauseofherpastexperienceasChiefFinancialOfficerandChiefAdministrativeOfficerofpubliccompaniesandotherseniormanagementexperience,whichincludesoversightoffinance,humanresources,riskmanagement,legalandinformationtechnologyfunctions.

Director since:July2005 Committees:CompensationCorporateGovernanceandNominating Age :56

Hansel E. Tookes, II


ServedasPresidentofRaytheonInternationaluntilheretiredfromRaytheonCompanyinDecember2002.


HejoinedRaytheoninSeptember1999asPresidentandChiefOperatingOfficerofRaytheonAircraftCompany.HewasappointedChiefExecutiveOfficerinJanuary2000andChairmaninAugust2000.Mr.TookesbecamePresidentofRaytheonInternationalinMay2001.PriortojoiningRaytheonin1999,Mr.TookesservedasPresidentofPratt&Whitney'sLargeMilitaryEnginesGroupsince1996.HejoinedPratt&Whitney'sparentcompany,UnitedTechnologiesCorporation,in1980.Mr.TookeswasaLieutenantCommanderandmilitarypilotintheU.S.NavyandlaterservedasacommercialpilotwithUnitedAirlines.

Other Public Board Memberships•CorningIncorporated

•NextEraEnergy,Inc.(formerlyFPLGroup,Inc.)

•HarrisCorporation

Qualifications

TheBoardnominatedMr.Tookesasadirectorbecauseofhispastexecutiveoversightandseniormanagementexperienceoflarge,globalcompanieswithdiversifiedbusinessesaswellashissignificantoperationalexperienceinthetransportationindustryandtheU.S.militaryandexpertiseingovernmentcontracts.

TheBoardappointedMr.TookesasLeadIndependentDirectorbecause,inadditiontohisexecutiveleadershipexperience,Mr.Tookeshassignificantcorporategovernanceexperienceasadirectoroflargepubliccompaniesincludinggovernancecommitteechairandcompensationandauditcommitteeexperience.

Director since:September2002 Committees:AuditCorporateGovernance&Nominating Age :68

Corporate Governance |

Board of Directors

CORPORATE GOVERNANCE

WemaintainaCorporateGovernancepageonourwebsiteatwww.ryder.com,whichincludesourCorporateGovernanceGuidelinesandthefollowingadditionalmaterialsrelatingtocorporategovernance:

• PrinciplesofBusinessConduct• CommitteeCharters• Board-BackgroundandExperience• BoardCommittees-CurrentMembers• HowtoContactourDirectors

TheCorporateGovernanceGuidelinessetforthourgovernanceprinciplesrelatingto,amongotherthings:

• Directorindependence(includingourdirectorindependencestandards)• Directorqualificationsandresponsibilities• Boardandleadershipstructure;directorresignationpolicy• Directorcompensation• Managementsuccession• PeriodicBoardevaluation

ThePrinciplesofBusinessConductapplytoourofficers,employeesandBoardmembersandcoverallareasofprofessionalconductincludingconflictsofinterest,confidentiality,compliancewithlawandmechanismstoreportknownorsuspectedwrongdoing.WealsohaveaCodeofEthicsapplicabletoourChiefExecutiveOfficer,ChiefFinancialOfficerandseniorfinancialmanagement,acopyofwhichisavailablewithoutchargeuponrequest.Anychangestothesedocumentswillbepostedonourwebsite.AnywaiverstoourPrinciplesofBusinessConductforBoardmembersorourexecutiveofficersgrantedbytheGovernanceCommitteewillbepostedonourwebsiteordisclosedinapublicfilingmadewiththeSecuritiesandExchangeCommission(SEC).

BOARD OF DIRECTORS

ItisourpolicythatasubstantialmajorityofthemembersofourBoardandallofthemembersofourAuditCommittee,CompensationCommittee,CorporateGovernanceandNominatingCommittee,andFinanceCommitteequalifyasindependentundertheNewYorkStockExchange(NYSE)corporategovernancelistingstandards.

Toassistitinmakingindependencedeterminations,ourBoardhasadoptedthefollowingdirectorindependencestandards,whichareincludedaspartofourCorporateGovernanceGuidelines.Specifically,theBoardhasdeterminedthateachofthefollowingtransactionsorrelationshipswillnot,byitself,bedeemedtocreateamaterialrelationshipforthepurposeofdeterminingdirectorindependence.However,theBoardwillconsiderallrelationshipsandtransactionswithourdirectors,eventhosethatmeetthesestandards,todeterminewhethertheparticularfactsorcircumstancesoftherelationshiportransactionwouldimpairthedirector'sindependence.

• PriorEmploymentofDirector.ThedirectorwasemployedbyRyderorwaspersonallyworkingonRyder'sauditasanemployeeorpartnerofRyder'sindependentauditor,andoverfiveyearshavepassedsincesuchemployment,partnershiporauditingrelationshipended.

• EmploymentofImmediateFamilyMember.(i)AnimmediatefamilymemberwasanofficerofRyderorwaspersonallyworkingonRyder'sauditasanemployeeorpartnerofRyder'sindependentauditor,andoverfiveyearshavepassedsincesuchemployment,partnerorauditingrelationshipended;or(ii)animmediatefamilymemberiscurrentlyemployedbyRyderinanon-officerposition,orbyRyder'sindependentauditornotasapartnerandnotparticipatinginthefirm’saudit,assuranceortaxcompliancepractice.

• InterlockingDirectorships.AnexecutiveofficerofRyderservedontheboardofdirectorsofacompanythatemployedthedirectororemployedanimmediatefamilymemberasanexecutiveofficer,andoverfiveyearshavepassedsinceeithersuchrelationshipended.


Board of Directors

• CommercialRelationships.Thedirectorisanemployee(oradirector’simmediatefamilymemberisanexecutiveofficer)ofacompanythatmakesorhasmadepaymentsto,orreceivesorhasreceivedpayments(otherthancontributions,ifthecompanyisatax-exemptorganization)from,Ryderforpropertyorservices,andtheamountofsuchpaymentshasnotwithinanyofsuchothercompany’sthreemostrecentlycompletedfiscalyearsexceededonepercent(or$1million,whicheverisgreater)ofsuchothercompany’sconsolidatedgrossrevenuesforsuchyear.

• IndebtednessRelationships.Adirectororanimmediatefamilymemberisapartner,greaterthan10%shareholder,directororofficerofacompanythatisindebtedtoRyderortowhichRyderisindebted,andtheaggregateamountofsuchdebtislessthanonepercent(or$1million,whicheverisgreater)ofthetotalconsolidatedassetsoftheindebtedcompany.

• CharitableRelationships.Adirectorisatrustee,fiduciary,directororofficerofatax-exemptorganizationtowhichRydercontributes,andthecontributionstosuchorganizationbyRyderhavenot,withinanyofsuchorganization’sthreemostrecentlycompletedfiscalyears,exceededonepercent(or$250,000,whicheverisgreater)ofsuchorganization’sconsolidatedgrossrevenuesforsuchyear.

Forpurposesoftheseindependencestandards,an“immediatefamilymember”includesadirector’sspouse,parents,children,siblings,mother-andfather-in-law,son-anddaughter-in-law,brother-andsister-in-law,andanyone(otherthandomesticemployees)whosharessuchdirector’shome.

PursuanttoourCorporateGovernanceGuidelines,theBoardundertakesanannualreviewofdirectorindependence,whichincludesareviewofeachdirector’sresponsestoquestionnairesaskingaboutanyrelationshipswithus.Thisreviewisdesignedtoidentifyandevaluateanytransactionsorrelationshipsbetweenadirectororanymemberofhisorherimmediatefamilyandusormembersofourseniormanagement.

Intheordinarycourseofbusiness,transactionsmayoccurbetweenusandentitieswithwhichsomeofourdirectorsareorhavebeenaffiliated.Inconnectionwithitsevaluationofdirectorindependence,ourBoardidentifiedandreviewedseveraltransactionsthatoccurredduring2015betweenusandcompanieswhereourdirectorsorfamilymembersofourdirectorsserveasexecutiveofficers.Specifically,Mr.Eck,Mr.HiltonandMs.Lundgrenserveasexecutivesofcompaniesthatleasevehiclesorreceiveotherservicesfromus.Wereviewedeachofthesecommercialrelationshipsandfoundthatallthetransactionsbetweenusandtherelevantcompanyweremadeintheordinarycourseofbusinessandwerenegotiatedatarm’slength.Furthermore,eachofthesecommercialrelationshipswaswellbelowthethresholdsetforthinourdirectorindependencestandards(i.e.,onepercentofsuchothercompany’sconsolidatedgrossrevenuesforsuchyearor$1million,whicheverisgreater).Asaresult,ourBoarddeterminedthatnoneofthesecommercialrelationshipsimpairedtheindependenceoftherelevantdirector.

Additionally,wereviewedcharitabledonationsandcontributionsmadebytheCompanytotax-exemptorganizationswhereourdirectorsserveasatrusteeordirector.Specifically,Ms.Lundgrenservesontheboardofatax-exemptorganizationtowhichtheCompanymakesorhasmadecontributions.WereviewedthisrelationshipandfoundthatallcontributionsmadebytheCompanyweremadeintheordinarycourse,atarm’slengthandconsistentwithourpoliciesandprocedures.Furthermore,thisrelationshipwasbelowthethresholdsetforthinourdirectorindependencestandards(i.e.,onepercentofsuchorganization’sconsolidatedgrossrevenuesforsuchyearor$250,000,whicheverisgreater).Asaresult,ourBoarddeterminedthatthisrelationshipdoesnotimpairMs.Lundgren'sindependence.

Basedonitsindependencereviewandafterconsideringthetransactionsdescribedabove,theBoarddeterminedthateachofthefollowingdirectors(whichtogetherconstituteallmembersoftheBoardotherthanMr.Sanchez)isindependent:JohnM.Berra,RobertJ.Eck,RobertA.Hagemann,L.PatrickHassey,MichaelF.Hilton,TamaraL.Lundgren,LuisP.Nieto,Jr.,AbbieJ.Smith,E.FollinSmithandHanselE.Tookes,II.


Board of Directors

Shareholder Engagement; Communications with the Board

2015 Shareholder EngagementŸ Wesoughtfeedbackfromshareholdersholdingover50%ofoursharesonRyder's

governanceandcompensationprofile,includingspecificfeedbackonproxyaccessŸ Wereceivedsubstantivefeedbackfromshareholdersholdingnearly20%ofoursharesŸ TheBoardusedthefeedbackreceivedtoadoptareasonable,balancedproxyaccessright

forourshareholders

-Shareholdersowning3%ofsharesfor3yearsmaynominatethegreaterof20%oftheBoardor2directors;shareholdergroupsofupto25arepermittedtocombinetheirownershiptomeettheownershiprequirements

Shareholder Engagement Policy and Practices. WeregularlyengagewithourshareholderstobetterunderstandtheirperspectivesonourCompany,includingtheirthoughtsandprioritieswithrespecttomattersofcorporategovernanceandexecutivecompensation.Annually,wereachouttoasignificantpercentageofourshareholderstodiscussRyder'scorporategovernanceandcompensationprofileandanyconcernsourshareholdersmayhave.Onanongoingbasis,wealsoreviewthegovernance,compensationandproxyvotingpoliciesofourshareholderswhopublishtheirpoliciestobetterunderstandwhereourpracticesalignwithshareholderpoliciesandwhetherthereareanyareaswheretheydiffer.

2015 - 2016 Shareholder Engagement & Board Responsiveness. IntheSummerandFallof2015,consistentwith2014,wereachedouttoourlargestshareholders(constitutingover50%ofouroutstandingshares)torequestfeedbackonourgovernanceprofileandcompensationstructureandreceivedsubstantivefeedbackfromshareholdersholdingnearly20%ofouroutstandingshares.

Wespecificallyrequestedfeedbackonwhetherandhowbesttoimplementproxyaccessandusedthefeedbackreceived,bothfromourshareholdermeetingsandourreviewofpublishedshareholdergovernancepolicies,tocraftproxyaccesstermsthatwouldprovideshareholderswiththeabilitytonominatedirectors(witha3%ownershipthreshold,holdingperiodof3years,theabilitytonominateupto20%oftheBoardor2directors(whicheverisgreater),andupto25shareholdersmaygrouptogethertoreach3%ownership),whileimposingappropriateproceduralsafeguardstopreventagainstunintendedabuse.Ryderisapproximately95%institutionallyheldand,throughourshareholderengagementefforts,wereceivedfeedbackonseveralproceduraltermsthatourlarge,institutionalshareholdersindicatedwereimportanttothem,whichweincorporatedintoourproxyaccessterms.Forinstance,Rydercountsrecallable,loanedsharestowardthe3%ownershipthreshold,treatsfundfamiliesasoneshareholderforpurposesofthegrouplimitandhasnotimposedspecialpost-meetingownershiprequirementsonnominatingshareholders.Wealsodonotimposespecialrenominationrestrictionsonfailedproxyaccesscandidatestiedtoreceivingaminimumpercentageofvotestheprioryear.InOctober2015,wereceivedashareholderproposalrequestingthattheBoardadoptproxyaccessontermssimilartoRyder'sproxyaccessprovisioninmostrespects.Althoughtheshareholderproposaldidnotincludeagrouplimitof25(oranyrestrictionsongrouping),theshareholderproponentdidnotmoveforwardwiththeshareholderproposalasaresultoftheBoard'sdisclosureofitsadoptionofproxyaccess.

Inadditiontoimplementingproxyaccess,wehavetakenseveralactionsinrecentyearsasadirectresultofourshareholderengagementapproach,including:(1)declassifyingourBoardbeginningin2016,(2)loweringofourgeneralvotingstandardtoamajorityofvotescast,(3)eliminatingsupermajorityvotingprovisionsregarding(i)removalofdirectors,(ii)amendmentofcertainprovisionsoftheArticlesofIncorporationandBy-Lawsand(iii)approvalofcertainbusinesscombinationswithinterestedshareholders,(4)disclosingourpoliticalcontributionspolicyandannualdirectcorporatecontributionstopoliticalcandidatesonourwebsiteand(5)continuouslyimprovingourcorporatesustainabilityreport.WealsocontinuetofacilitatedirectshareholdercommunicationwithmembersofourBoardwhereappropriate.


Board of Directors

Communications with the Board. Shareholdersandotherinterestedpartiescancommunicatewithourindependentdirectorsasagroupthroughanexternaltoll-freehotlinenumber(7daysaweek/24hoursaday),throughtheCorporateGovernancepageofourwebsiteatwww.ryder.com,orbymailingtheircommunicationtoIndependentDirectors,c/oCorporateSecretary,RyderSystem,Inc.,11690N.W.105thStreet,Miami,Florida33178.AnycommunicationsreceivedfrominterestedpartiesinthemannerdescribedabovewillbecollectedandorganizedbyourCorporateSecretaryandwillbeperiodically,butinanyeventpriortoeachregularly-scheduledBoardmeeting,reportedand/ordeliveredtoourindependentdirectors.TheCorporateSecretarywillnotforwardspam,junkmail,massmailings,servicecomplaintsorinquiries,jobinquiries,surveys,businesssolicitationsoradvertisements,orpatentlyoffensiveorotherwiseinappropriatematerialstotheindependentdirectors.Correspondencerelatingtocertainofthesematters,suchasserviceissues,maybedistributedinternallyforreviewandpossibleresponse.TheproceduresforcommunicatingwithourindependentdirectorsasagroupareavailableontheCorporateGovernancepageofourwebsiteatwww.ryder.com.

OurAuditCommitteehasestablishedproceduresforthereceipt,retentionandtreatmentofcomplaintsregardingquestionableaccounting,internalcontrol,financialimproprietiesorauditingmatters.Anyofouremployeesormembersofthegeneralpublicmayconfidentiallycommunicateconcernsaboutanyofthesematterstoanysupervisorormanager,theChiefLegalOfficer,theVicePresidentofInternalAuditandtheGlobalComplianceOfficer,oronaconfidentialand/oranonymousbasisbywayofathirdpartytoll-freehotlinenumberandweb-basedportal(www.ryder.alertline.com),aninternalethicsphoneline,[email protected],ortomembersofourAuditCommitteeataudit@ryder.com.Allofthereportingmechanismsarepublicizedonourwebsiteatwww.ryder.com,inourPrinciplesofBusinessConduct,throughinpersonandon-linecompliancetrainingandlocationposters.Uponreceiptofacomplaintorconcern,adeterminationwillbemadewhetheritpertainstoaccounting,internalcontrol,financialimproprietiesorauditingmattersand,ifitdoes,itwillbehandledinaccordancewiththeproceduresestablishedbytheAuditCommittee.Asummaryofallcomplaints,ofwhatevertype,receivedthroughthereportingmechanismsarereportedtotheAuditCommitteeateachregularly-scheduledAuditCommitteemeeting.MattersrequiringimmediateattentionarepromptlyforwardedtotheChairoftheAuditCommittee.

Board Meetings

TheBoardheldsixregularmeetingsin2015.Eachofthedirectorsattended75%ormoreoftheaggregatenumberofmeetingsoftheBoardandCommitteesonwhichthedirectorservedin2015.Ourindependentdirectorsmeetinoutsidedirectorssessionwithoutmanagementpresentaspartofeachregularly-scheduledBoardmeeting.OurLeadIndependentDirectorpresidesovertheseoutsidedirectorssessions.

WeexpecteachofourdirectorstoattendourAnnualMeetingofShareholders.Allofourdirectorsattendedthe2015AnnualMeeting.

Board Leadership Structure

RydercombinesthepositionsofChiefExecutiveOfficer(CEO)andChairoftheBoard.RyderbelievesthattheCEO,asaCompanyexecutive,isinthebestpositiontofulfilltheChair’sresponsibilities,includingthoserelatedtoidentifyingemergingissuesfacingRyder,communicatingessentialinformationtotheBoardaboutRyder’sperformanceandstrategies,andproposingagendasfortheBoard.

InordertomitigateanypotentialdisadvantagesofacombinedCEOandChair,theBoardhasdevelopedtheroleofastrongLeadIndependentDirectortofacilitateandstrengthentheBoard’sindependentoversightofCompanyperformance,strategyandsuccessionplanning,andtoupholdeffectivegovernancestandards.Ryder’sCorporateGovernanceGuidelinesestablishthattheBoardmembersshallappointaLeadIndependentDirector.ConsistentwithourCorporateGovernanceGuidelines,in2015,werotatedthepositionofLeadIndependentDirectorfromE.FollinSmithtoHanselE.Tookes,II.TheLeadIndependentDirector’sduties,whicharelistedinourCorporateGovernanceGuidelines,include:


Board of Directors

Lead Independent Director DutiesŸ PresidesatallmeetingsoftheBoardat

whichtheChairisnotpresent,includingoutsidedirectorssessionsoftheindependentdirectors

Ÿ DevelopsmeetingagendasfortheBoard,incollaborationwiththeChairandCorporateSecretary,toensurethattopicsrequestedbytheindependentdirectorsareincluded

Ÿ ServesastheliaisonbetweentheChair/CEOandtheindependentdirectors

Ÿ Hasauthoritytocallmeetingsoftheindependentdirectors

Ÿ ServesastheliaisonbetweentheBoardandmanagementtoobtainthetypesandformsofinformationthattheBoardneeds

Ÿ Isavailableforconsultationanddirectcommunicationwithshareholderstodiscussconcernsandexpectations,uponrequest

Ÿ RequestsandpreviewsinformationsenttotheBoardasnecessary

Ÿ Inaddition,ourLeadIndependentDirector,whoalsoservesastheGovernanceCommitteeChair,overseestheBoard’sannualevaluationprocessandthesearchprocessfornewdirectorcandidates

Ÿ CommunicateswithmanagementregardingtheformandsubstanceofpresentationsfortheBoard

Board Committees

TheBoardhasfourstandingcommittees—Audit,Compensation,CorporateGovernanceandNominatingandFinance.AlloftheCommitteesarecomposedentirelyofindependentdirectorswhomeetinoutsidedirectorssessionwithoutmanagementpresentaspartofeachregularly-scheduledCommitteemeeting.Thetablebelowprovidescurrentmembershipand2015meetinginformationforeachoftheCommittees.

Committees

Name Audit Compensation Corporate Governance

& Nominating FinanceJohn M. Berra Member Member

Robert J. Eck Member Member

Robert A. Hagemann Chair Member

L. Patrick Hassey Chair Member Michael F. Hilton Member Member Tamara L. Lundgren Member Member Luis P. Nieto, Jr. Member Chair

Robert E. Sanchez* Abbie J. Smith Member Member

E. Follin Smith Member Member Hansel E. Tookes, II** Member Chair 2015 Meetings 11 4 5 10

* ChairoftheBoard** LeadIndependentDirector

WehaveadoptedwrittenChartersforeachoftheCommitteesthatcomplywiththeNYSE’scorporategovernancelistingstandards,applicableprovisionsoftheSarbanes-OxleyActof2002(Sarbanes-Oxley)andSECrules.EachCommitteeChartersetsforththerespectiveCommittee’sresponsibilities,andprovidesforaperiodicreviewofsuchCharterandanannualevaluationoftherespectiveCommittee’sperformance.TheChartersgranteachCommitteetheauthoritytoobtaintheadviceandassistanceof,andreceiveappropriatefundingfromusfor,outsidelegal,accountingorotheradvisorsastheCommitteedeemsnecessarytofulfillitsobligations.ThespecificpowersandresponsibilitiesofthevariousCommitteesaresetforthinmoredetailintheirCharters,whichareavailableontheCorporateGovernancepageofourwebsiteatwww.ryder.com.

EachyearinDecember,theCommitteesreviewandapproveanagendascheduleforthefollowingyear.TheagendascheduleoutlinesthevarioustopicstheCommitteewillconsiderduringtheyeartoensurethattheCommitteeadequatelyfulfillsitsresponsibilitiesunderitsCommitteeCharter.TheCommitteeconsidersothertopicsduringtheyearasneededtofulfillitsresponsibilities.OurChiefLegalOfficerworkscloselywiththeChairoftheBoard,theLeadIndependentDirectorandeachCommitteeChairtoensurethattheinformationpresentedtotheCommitteesinconnectionwiththeitemstobediscussedand/orapprovedisclearandcomprehensive.


Audit Committee | Compensation Committee

AUDIT COMMITTEE

Responsibilities

TheAuditCommittee’sresponsibilitiesinclude:

• appointing,overseeinganddeterminingthecompensationandindependenceofourindependentregisteredcertifiedpublicaccountingfirm;• approvingthescopeoftheannualauditandtherelatedauditfeesaswellasthescopeofinternalauditprocedures;• reviewingauditresults,financialdisclosureandearningsguidance;• overseeinginvestigationsintoaccountingandfinancialcomplaints;• reviewing,discussingandoverseeingtheprocessbywhichweassessandmanagerisk;and• reviewingandoverseeingmattersrelatingtoaccounting,auditingandfinancialreportingpracticesandpolicies.

Meetings.OurChiefFinancialOfficer,Controller,VicePresidentofInternalAudit,ChiefLegalOfficer,GlobalComplianceOfficerandrepresentativesofourindependentregisteredcertifiedpublicaccountingfirmparticipateinAuditCommitteemeetings,asnecessaryandappropriate,toassisttheAuditCommitteeinitsdiscussionandanalysisofthevariousagendaitems.TheAuditCommitteealsomeetsindividuallywithourChiefFinancialOfficer,VicePresidentofInternalAuditandrepresentativesofourindependentregisteredcertifiedpublicaccountingfirmattheendofeveryregularly-scheduledAuditCommitteemeeting(otherthantelephonicmeetings);meetsindividuallywithourControllerandGlobalComplianceOfficeratleastonceperyear;andmeetsindividuallywithourChiefLegalOfficerasneededthroughouttheyear.

Independence and Financial Expertise

TheBoardreviewedthebackground,experienceandindependenceoftheAuditCommitteemembersbasedinpartonthedirectors’responsestoquestionsrelatingtotheirrelationships,backgroundandexperience.Basedonthisreview,theBoarddeterminedthateachmemberoftheAuditCommittee:

• meetstheindependencerequirementsoftheNYSE’scorporategovernancelistingstandardsandourdirectorindependencestandards;• meetstheenhancedindependencestandardsforauditcommitteemembersrequiredbytheSEC;• isfinanciallyliterate,knowledgeableandqualifiedtoreviewfinancialstatements;and• qualifiesasan“auditcommitteefinancialexpert”underSECrules.

COMPENSATION COMMITTEE

Responsibilities

TheCompensationCommittee’sresponsibilitiesinclude:

• overseeing,reviewingandapprovingourexecutiveanddirectorcompensationplans,policiesandprograms;• approvingcompensationactionsfordirectreportstotheCEOandrecommendingcompensationactionsfortheCEOforconsiderationbythe

independentdirectors;• reviewinganddiscussingtheresultsoftheshareholderadvisoryvoteonexecutivecompensationandconsideringwhethertorecommend

anyadjustmentstotheCompany'spoliciesandpracticesbasedonthevoteresults;and• reviewinganddiscussingtheCompensationDiscussionandAnalysistodeterminewhethertorecommenditforinclusioninthisproxy

statement.


Compensation Committee |

Corporate Governance and Nominating Committee

Compensation Committee Processes and Procedures

Meetings.TheChiefAdministrativeOfficer(CAO),VicePresidentofCompensationandBenefits,DeputyGeneralCounsel,andwhenrequested,theCEO,participateinCompensationCommitteemeetings,asnecessaryandappropriate,toassisttheCompensationCommitteeinitsdiscussionandanalysisofthevariousagendaitems.Theseindividualsaregenerallyexcusedfromthemeetingsasappropriate,includingfordiscussionsregardingtheirowncompensation.

Authority,RoleofManagementandDelegation.TheCompensationCommitteeisresponsibleforreviewingandapprovingallofthecomponentsofourexecutivecompensationprogramaswellasthecompensationprogramforourBoard.NewexecutivecompensationplansandprogramsmustbeapprovedbythefullBoardbasedonrecommendationsmadebytheCompensationCommittee.TheCompensationCommittee,withinputfromtheCEO,isresponsibleforsettingthecompensationofallofourothernamedexecutiveofficers.Ourindependentdirectors,actingasagroup,areresponsibleforsettingCEOcompensationbasedonrecommendationsfromtheCompensationCommittee.PursuanttothetermsofitsCharter,theCompensationCommitteemaydelegatealloraportionofitsresponsibilitiesrelatingtoretirementplanstotheCompany'sRetirementCommittee.ForadditionaldiscussionoftheCompensationCommittee'sprocessesandproceduresfortheconsiderationanddeterminationofexecutivecompensation,pleaseseethediscussionunder“CompensationSettingProcess”inourCompensationDiscussionandAnalysisonpage34ofthisproxystatement.

UseofCompensationConsultants.TheCompensationCommitteehasauthoritytoretaincompensationconsultants,outsidelegalcounselandotheradvisorstoassistitinfulfillingitsresponsibilities.During2015,theCommitteeagainretainedFredericW.Cook&Co.(Cook)toserveasitsindependentcompensationconsultant.ForfurtherdiscussionoftherolethatCookplayedinsettingexecutivecompensationduring2015,pleaseseethediscussionunder“CompensationSettingProcess”inourCompensationDiscussionandAnalysisonpage34ofthisproxystatement.

CompensationCommitteeInterlocksandInsiderParticipation.DuringthefiscalyearendedDecember31,2015,JohnM.Berra,RobertJ.Eck,L.PatrickHassey,MichaelF.HiltonandE.FollinSmithservedasmembersoftheCompensationCommittee,andnoneofthesedirectorswas,during2015,anofficeroremployeeofRyder,orwasformerlyanofficerofRyder.Therewerenotransactionsin2015betweenusandanyofthedirectorswhoservedasmembersoftheCompensationCommitteeforanypartof2015thatwouldrequiredisclosurebyRyderundertheSEC’srulesrequiringdisclosureofcertainrelationshipsandrelatedpartytransactions.

Independence

TheBoardreviewedthebackground,experienceandindependenceoftheCompensationCommitteemembersbasedinpartonthedirectors’responsestoaquestionnairerelatingtotheirrelationships,backgroundandexperience.Basedonthisreview,theBoarddeterminedthateachmemberoftheCompensationCommittee:

• meetstheindependencerequirementsoftheNYSE’scorporategovernancelistingstandards,includingtheadditionalindependencerequirementsspecifictocompensationcommitteemembers,andourdirectorindependencestandards.

CORPORATE GOVERNANCE AND NOMINATING COMMITTEEResponsibilities

TheCorporateGovernanceandNominatingCommittee’s(GovernanceCommittee)responsibilitiesinclude:

• Identifyingqualifiedindividualstoserveasdirectors;• reviewingthequalificationsofdirectorcandidates,includingthoserecommendedbyourshareholderspursuanttoourBy-Laws;• recommendingtotheBoardthenomineestobeproposedbytheBoardforelectionasdirectorsatourAnnualMeetingofShareholders;• recommendingthesize,structure,compositionandfunctionsofBoardCommittees;• reviewingandrecommendingchangestotheChartersofeachCommitteeoftheBoard;


Corporate Governance and Nominating Committee

• designingandoverseeingtheBoardevaluationprocessaswellastheannualCEOevaluationprocess;• reviewingandrecommendingchangestoourCorporateGovernanceGuidelinesandPrinciplesofBusinessConductandoverseeing

governancepracticesoftheCompanyandBoard;• reviewingandoverseeingtheprocessbywhichtheBoardidentifiesandpreparesforacrisis;and• overseeingtheCompany'scharitablecontributions,politicalactivities,environmentalandsafetyperformance,anddiversityefforts.

OurChiefLegalOfficer,andwhenrequested,ourChiefExecutiveOfficer,participateinGovernanceCommitteemeetings,asnecessaryandappropriate,toassisttheGovernanceCommitteeinitsdiscussionandanalysisofthevariousagendaitems.

Process for Nominating Directors

InidentifyingindividualstonominateforelectiontoourBoard,theGovernanceCommitteeseekscandidatesthat:

• haveahighlevelofpersonalintegrityandexercisesoundbusinessjudgment;• arehighlyaccomplishedintheirfields,withsuperiorcredentialsandrecognitionandhaveareputation,bothpersonalandprofessional,

consistentwithourimageandreputation;• haverelevantexpertiseandexperienceandareabletoofferadviceandguidancetoourseniormanagement;• haveanunderstandingof,andconcernfor,theinterestsofourshareholders;and• havesufficienttimetodevotetofulfillingtheirobligationsasdirectors.

TheGovernanceCommitteewillseektoidentifyindividualswhowouldqualifyasindependentunderapplicableNYSElistingstandardsandourdirectorindependencestandards,andwhoareindependentofanyparticularconstituency.TheGovernanceCommitteemay,basedonthecompositionoftheBoard,seekindividualswhohavespecializedskillsorexpertise,experienceasaleaderofanotherpubliccompanyormajorcomplexorganization,orrelevantindustryexperience.Inaddition,theGovernanceCommitteewillattempttoselectcandidateswhowillassistinmakingtheBoardadiversebody.RyderbelievesthatadiversegroupofdirectorsbringsabroaderrangeofexperiencestotheBoardandgeneratesagreatervolumeofideasandperspectives,and,therefore,isinabetterpositiontomakecomplexdecisions.Inaddition,RyderbelievesitsshareholdersappreciateadiverseBoard,whichismorereflectiveoftheoverallinvestmentcommunityandmarketsweandourcustomersserve.TheGovernanceCommitteeusesfeedbackfromitsBoardandCommitteeevaluationprocess,aswellasaBoardCompositionMatrixwhicheachdirectorcompletes,toassistindeterminingthepropermixofdirectorexperienceanddiversity,andtoassistintheidentificationandselectionofcandidatesfornomination.

Generally,theGovernanceCommitteeidentifiesindividualsforserviceonourBoardthroughtheGovernanceCommittee’sretentionofexperienceddirectorsearchfirmsthatarepaidtousetheirextensiveresourcesandnetworkstofindqualifiedindividualswhomeetthequalificationsestablishedbytheBoard.Thesesearchfirmscreateacomprehensiverecordofacandidate’sbackground,businessandprofessionalexperienceandotherinformationthatwouldberelevanttotheGovernanceCommitteeindeterminingacandidate’scapabilitiesandsuitability.TheGovernanceCommitteewillalsoconsiderqualifiedcandidateswhoareproposedbyothermembersoftheBoard,ourseniormanagementand,totheextentsubmittedinaccordancewiththeproceduresdescribedbelow,ourshareholders.TheGovernanceCommitteewillnotconsideradirectorcandidateunlessthecandidatehasexpressedhisorherwillingnesstoserveontheBoardifelectedandtheGovernanceCommitteehasreceivedsufficientinformationrelatingtothecandidatetodeterminewhetherheorshemeetsthequalificationsestablishedbytheBoard.

Recommending a Director Candidate to the Governance Committee. IfashareholderwouldliketorecommendadirectorcandidatetotheGovernanceCommittee,heorshemustdelivertotheGovernanceCommitteethesameinformationandstatementofwillingnesstoservedescribedabove.Inaddition,therecommendingshareholdermustdelivertotheGovernanceCommitteearepresentationthattheshareholderownssharesofourcommonstockandintendstocontinueholdingthosesharesuntiltherelevantAnnualMeetingofShareholdersaswellasarepresentationregardingtheshareholder’sdirectandindirectrelationshiptothesuggestedcandidate.Thisinformationshouldbedeliveredtousat:

11690 N.W. 105th StreetMiami, Florida 33178

Attention: Corporate Secretary


Corporate Governance and Nominating Committee | Finance Committee

ThisinformationmustbedeliveredtotheGovernanceCommitteenoearlierthan120andnolaterthan90dayspriortotheone-yearanniversaryofthedateoftheprioryear’sAnnualMeetingofShareholders.AnycandidatesproperlyrecommendedbyashareholderwillbeconsideredandevaluatedinthesamewayasanyothercandidatesubmittedtotheGovernanceCommittee.

Uponreceiptofthisinformation,theGovernanceCommitteewillevaluateanddiscussthecandidate’squalifications,skillsandcharacteristicsinlightofthecurrentcompositionoftheBoard.TheGovernanceCommitteemayrequestadditionalinformationfromtherecommendingpartyorthecandidateinordertocompleteitsinitialevaluation.IftheGovernanceCommitteedeterminesthattheindividualwouldbeasuitablecandidatetoserveasoneofourdirectors,thecandidatewillbeaskedtomeetwithmembersoftheGovernanceCommittee,membersoftheBoardand/ormembersofseniormanagement,includingineachcase,ourCEO,todiscussthecandidate’squalificationsandabilitytoserveontheBoard.BasedontheGovernanceCommittee’sdiscussionsandtheresultsofthesemeetings,theGovernanceCommitteewillrecommendanomineeornomineesforelectiontotheBoardeitherbyourshareholdersatourAnnualMeetingofShareholdersorbytheBoardtofillvacanciesontheBoardbetweenAnnualMeetings.TheBoardwill,afterconsiderationoftheGovernanceCommittee’srecommendations,nominateaslateofdirectorsforelectionbyourshareholders,orforpurposesoffillingvacancies,electanomineetotheBoard.PursuanttoourCorporateGovernanceGuidelines,eachincumbentdirectornomineemustagreetotenderhisorherresignationforconsiderationbytheBoardifthedirectorfailstoreceivetherequirednumberofvotesforre-electioninaccordancewiththeBy-Laws.

Nominating a Director Candidate Through Proxy Access (for Inclusion in the Company's Proxy Materials). OurBy-Lawsprovideforproxyaccessfordirectornominationsbyshareholders.Ashareholder,orgroupofupto25shareholders,owningRyderstockrepresentinganaggregateofatleast3%ofouroutstandingsharescontinuouslyforatleastthreeyears,maynominateandincludeinRyder'sproxymaterialsdirectornomineesconstitutingupto20%ofRyder'sBoardor2directors,whicheverisgreater,providedthattheshareholder(s)andnominee(s)satisfytheproxyaccessrequirementssetforthinourBy-Laws.

Nominating a Director Candidate Without Using the Company's Proxy Materials. IfashareholderwouldliketonominateoneormoredirectorsforelectionattheAnnualMeetingofShareholderswithoutinvolvingtheGovernanceCommitteeorfollowingtheproxyaccessprocedures,itmustcomplywithalloftherequirementssetforthinourBy-Laws.

FINANCE COMMITTEE

Responsibilities

TheFinanceCommittee’sresponsibilitiesinclude:

• reviewingouroverallfinancialgoals,liquidityposition,arrangementsandrequirements;• reviewing,approvingandrecommendingcertaincapitalexpenditures,issuancesofdebtandequitysecurities,dividendpolicy,pension

contributionsandacquisitions;and• reviewingourrelationshipswithratingagencies,banksandanalysts,andreviewingoureconomicandinsuranceriskprogramandtax

planninginitiatives.

OurChiefFinancialOfficer,TreasurerandothermembersofmanagementincludingourVicePresidentofInvestorRelationsandStrategy,participateinFinanceCommitteemeetings,asnecessaryandappropriate,toassisttheFinanceCommitteeinitsdiscussionandanalysisofthevariousagendaitems.


Risk Management

RISK MANAGEMENT

Enterprise Risk Management

TheCompanyunderstandsthatriskispresentinitseverydaybusinessandorganizationalstrategyandrisk-takingisanecessarypartofgrowingandoperatingabusiness.Consequently,theCompanyhasimplementedanenterpriseriskmanagement(ERM)programtoprovidemanagementandtheBoardwitharobustandholistictop-downviewofkeyrisksfacingRyder.

OurERMprogramwasdevelopedunderthedirectionandsupervisionofourChiefLegalOfficerandChiefFinancialOfficerwiththeassistanceofexternalexperts,andismanagedbyourGlobalComplianceOfficerandVicePresidentofInternalAudit,allofwhomprovideupdatesonrisktotheCommitteesandfullBoardonaregularbasisandgiveaformalpresentationatleastonceperyear.

TheERMprogramisstructuredsothattheBoardisresponsibleforoversightofourERMprocessandtheCEOandexecutiveleadershipteamareresponsibleforriskidentification,managementandcommunicationunderourERMprocesses.WebelievethateffectiveBoardoversightoftheERMprocessisakeyelementinthepreservationandenhancementofshareholdervalue.Specifically,ourBoardandCommittees:

• Discusswithmanagementtheeffectivenessofriskmanagementprocessesinidentifying,assessingandmanagingtheorganization’smostsignificantenterprise-wideriskexposures.

• ReceiveanERMreportfromtheChiefLegalOfficerandGlobalComplianceOfficeratleastannually.• ReceivewrittenupdatesandpresentationsontheERMreportsandourERMprogramateveryregularlyscheduledmeeting,anddiscusswith

managementthemostsignificantrisksthatareidentifiedandmanagedbyRyder.• ReceiveareportfromtheVicePresidentofInternalAuditatleastannuallyregardingidentificationofenterpriserisksandauditactivitiesto

assessthecontrolsandprocessesregardingsuchrisks.• DiscussandreceiveupdatesfrommanagementonthevariouscontrolsandmitigatingactionsRyderistakingtomitigatesignificantrisks.• ReviewRyder’ssignificantrisksandconsidersuchriskswhenoverseeingRyder’sstrategicandbusinessdecisions.

Inaddition,allsignificantrisksidentifiedthroughourERMprogramorintheERMreportsarecommunicatedtoanddiscussedwiththeBoardand/oroneormoreoftheCommittees.Forexample,ourprocesscallsforallrisksthatmayhaveamaterialimpactonourfinancialstatementsordisclosurestobebroughtbeforetheAuditCommittee.RisksinvolvingcapitalstructureoraccesstocapitalarediscussedwiththeFinanceCommittee.WecommunicaterisksassociatedwithexecutivecompensationandbenefitprogramstoourCompensationCommittee.TheGovernanceCommitteereceivesreportsfrommanagementongovernanceandreputationalrisksRyderidentifiesthroughourERMprogram.

Board/Committee Areas of Risk Oversight

Full Board Ÿ Strategic,financialandexecutionriskassociatedwiththeannualoperatingplanandstrategicplan(includingallocationofcapitalinvestments);

Ÿ Majorlitigationandregulatorymatters;

Ÿ Acquisitionsanddivestitures;and

Ÿ Managementsuccessionplanning.

Audit Committee Ÿ Risksassociatedwithfinancialmatters,particularlyfinancialreporting,accounting,anddisclosureandinternalcontrols,andinformationtechnologyandcybersecurity.

Compensation Committee Ÿ Risksassociatedwiththeestablishmentandadministrationofexecutivecompensation,equity-basedcompensationprograms,andperformancemanagementofofficers.

Governance Committee Ÿ RisksassociatedwithBoardeffectivenessandorganization,corporategovernancematters,anddirectorsuccessionplanning.

Finance Committee Ÿ Risksassociatedwithliquidity,pensionplans(includinginvestmentperformance,assetallocationandfundedstatus),taxes,currencyandinterestrateexposures,andinsurancestrategies.


Risk Management |

Related Person Transactions

AlthoughRyder’sERMprogramisstructuredwithformalprocesses,itremainsflexibleenoughtoadjusttochangingeconomic,businessandregulatorydevelopmentsandisfoundedonclearlinesofcommunicationtotheleadershipteam,theBoardanditsCommittees.Inaddition,theCompanyperiodically,includingduring2012and2013,commissionsanexternalassessmentofitsERMprogramanditsriskassessmentprocessestoensurethattheyareinlinewithindustrypracticesandareeffectivelyidentifying,monitoringandmitigatingenterprise-widerisks.

RELATED PERSON TRANSACTIONS

InaccordancewithourwrittenPoliciesandProceduresRelatingtoRelatedPersonTransactions,all“relatedpersontransactions”aresubjecttoreview,approvalorratificationbytheGovernanceCommittee.ForpurposesofthePoliciesandProcedures,andconsistentwithItem404ofRegulationS-K,a“relatedpersontransaction”is:

• anytransactioninwhichweorasubsidiaryofoursisaparticipant,theamountinvolvedexceeds$120,000anda“relatedperson”hasadirectorindirectmaterialinterest;or

• anymaterialamendmenttoanexistingrelatedpersontransaction.

“Relatedpersons”areourexecutiveofficers,directors,nomineesfordirector,anypersonwhoisknowntobethebeneficialownerofmorethan5%ofanyclassofourvotingsecuritiesandanyimmediatefamilymemberofanyoftheforegoingpersons.

OurPrinciplesofBusinessConductrequirethatdirectorsandexecutiveofficersreportanyactualorpotentialconflictsofinterest,includingpotentialrelatedpersontransactions,totheCompany.Inaddition,eachdirectorandexecutiveofficercompletesandsignsaquestionnaireannuallytoconfirmtherearenomaterialrelationshipsorrelatedpersontransactionsbetweensuchindividualsandtheCompanyotherthanthosepreviouslydisclosedtous.Thisensuresthatallmaterialrelationshipsandrelatedpersontransactionsareidentified,reviewedanddisclosedinaccordancewithapplicablepolicies,proceduresandregulations.Basedonthisinformation,wereviewtheCompany'sownrecordsandmakefollow-upinquiriesasmaybenecessarytoidentifypotentiallyreportabletransactions.AreportsummarizingsuchtransactionsandincludingareasonablelevelofdetailisthenprovidedtotheGovernanceCommittee.

TheGovernanceCommitteeisresponsibleforreviewinganddeterminingwhethertoapproverelatedpersontransactions.Inconsideringwhethertoapprovearelatedpersontransaction,theGovernanceCommitteeconsidersthefollowingfactors,totheextentrelevant:

• whetherthetermsoftherelatedpersontransactionarefairtousandonthesamebasisaswouldapplyifthetransactiondidnotinvolvearelatedperson;

• whethertherearebusinessreasonsforustoenterintotherelatedpersontransaction;• whethertherelatedpersontransactionwouldimpairtheindependenceofanoutsidedirector;and• whethertherelatedpersontransactionwouldpresentanimproperconflictofinterestforanyofourdirectorsorexecutiveofficers,takinginto

accountthesizeofthetransaction,theoverallfinancialpositionofthedirector,executiveofficerorrelatedperson,thedirectorindirectnatureofthedirector’s,executiveofficer’sorrelatedperson’sinterestinthetransactionandtheongoingnatureofanyproposedrelationship,andanyotherfactorstheGovernanceCommitteedeemsrelevant.

Therewerenorelatedpersontransactionsduring2015.


Ratification of Independent Public Accounting Firm (Proposal 2)

RATIFICATION OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING FIRM

(Proposal 2)

OurAuditCommitteeappointedPricewaterhouseCoopersLLPasourindependentregisteredcertifiedpublicaccountingfirmforthe2016fiscalyear.AlthoughshareholderratificationoftheappointmentofPricewaterhouseCoopersLLPisnotrequired,theBoardbelievesthatsubmittingtheappointmenttotheshareholdersforratificationisamatterofgoodcorporategovernance.TheAuditCommitteewillconsidertheoutcomeofthisvoteinfuturedeliberationsregardingtheappointmentofourindependentregisteredcertifiedpublicaccountingfirm.RepresentativesofPricewaterhouseCoopersLLPwillbepresentatthe2016AnnualMeetingofShareholderstorespondtoappropriatequestionsandtomakeastatementiftheydesiretodoso.

Fees and Services of Independent Registered Certified Public Accounting Firm

FeesbilledforservicesbyPricewaterhouseCoopersLLPforthe2015and2014fiscalyearswereasfollows($inmillions):

2015 2014AuditFees $4.2 $4.2Audit-RelatedFees 0.5 0.3TaxFees1 0.3 0.3AllOtherFees2 0.0 0.2TotalFees $5.0 $5.0

1 AlloftheTaxFeespaidin2015and2014relatetotaxcomplianceservices.2 In2014,AllOtherFeesconsistedof$216,480forITconsultingservicesprovidedbyBGTPartners,adigitalmarketingfirmacquiredby

PricewaterhouseCoopersLLPinNovember2013.

AuditFeesprimarilyrepresentamountsforservicesrelatedtotheauditofourconsolidatedfinancialstatementsandinternalcontroloverfinancialreporting,areviewoffinancialstatementsincludedinourForms10-Q(orotherperiodicreportsordocumentsfiledwiththeSEC),statutoryorfinancialauditsforoursubsidiariesoraffiliates,andconsultationsrelatingtofinancialaccountingorreportingstandards.

Audit-RelatedFeesrepresentamountsforassuranceandrelatedservicesthatarereasonablyrelatedtotheperformanceoftheauditorreviewofourfinancialstatements.Theseservicesincludeauditsofemployeebenefitplans,consultationsconcerningmattersrelatingtoSection404ofSarbanes-Oxleyandduediligence.

TaxFeesrepresentamountsforU.S.andinternationaltaxcomplianceservices(includingreviewofourfederal,state,localandinternationaltaxreturns),taxadviceandtaxplanning,inaccordancewithourapprovalpoliciesdescribedbelow.

AllOtherFeesfor2014primarilyrepresentamountsforITconsultingservicesprovidedbyBGTPartners,adigitalmarketingfirmacquiredbyPricewaterhouseCoopersLLPinNovember2013.WeoriginallyretainedBGTPartnerspriortotheacquisitiontoprovideongoingITconsultingservicesrelatingtoourwww.ryder.comwebsite,includingsocialmediaresources,onlinereviews,mobilewebservices,websiteenhancementandmaintenance,andrelatedtools.FollowingtheacquisitionofBGTPartnersbyPricewaterhouseCoopersLLP,theCompanycontinuedtoreceivetheseservicesfromPricewaterhouseCoopersLLPduring2014.


Ratification of Independent Public Accounting Firm (Proposal 2)

Approval Policy

Allservicesrenderedbyourindependentregisteredcertifiedpublicaccountingfirmareeitherspecificallyapproved(includingtheannualfinancialstatementsaudit)orarepre-approvedbytheAuditCommitteeineachinstanceinaccordancewithourApprovalPolicyforIndependentAuditorServices(ApprovalPolicy),andaremonitoredbothastospendinglevelandworkcontentbytheAuditCommitteetomaintaintheappropriateobjectivityandindependenceoftheindependentregisteredcertifiedpublicaccountingfirm’scoreservice,whichistheauditofourconsolidatedfinancialstatementsandinternalcontroloverfinancialreporting.UndertheApprovalPolicy,thetermsandfeesofannualauditservicesandanychangesthereto,mustbeapprovedbytheAuditCommittee.TheApprovalPolicyalsosetsforthdetailedpre-approvedcategoriesofotheraudit,audit-related,taxandothernon-auditservicesthatmaybeperformedbyourindependentregisteredcertifiedpublicaccountingfirmduringthefiscalyear,subjecttothedollarlimitationssetbytheAuditCommittee.TheAuditCommitteemay,inaccordancewiththeApprovalPolicy,delegatetoanymemberoftheAuditCommitteetheauthoritytoapproveauditandnon-auditservicestobeperformedbytheindependentregisteredcertifiedpublicaccountingfirm.TheAuditCommitteehasdelegatedtotheChairoftheAuditCommitteetheauthoritytoapproveauditandnon-auditservicesifitisnotpracticaltobringthematterbeforethefullAuditCommitteeandtheestimatedfeedoesnotexceed$100,000.AnyAuditCommitteememberwhoexerciseshisorherdelegatedauthority,includingtheChair,mustreportanyapprovaldecisionstotheAuditCommitteeatitsnextscheduledmeeting.Alloftheservicesprovidedin2015wereapprovedbytheAuditCommitteeinaccordancewiththeApprovalPolicy.

The Board recommends a vote FOR ratification of the appointment of PricewaterhouseCoopers LLP as our independent registeredcertified public accounting firm for the 2016 fiscal year.


Audit Committee Report

AUDIT COMMITTEE REPORT

ThefollowingreportoftheAuditCommitteeshallnotbedeemedtobe“solicitingmaterial”ortobe“filed”withtheSECnorshallthisinformationbeincorporatedbyreferenceintoanyfuturefilingundertheSecuritiesActof1933ortheSecuritiesExchangeActof1934,eachasamended,excepttotheextentthatRyderspecificallyincorporatesitbyreferenceintoafiling.

TheAuditCommitteeiscomprisedoffiveoutsidedirectors,allofwhomareindependentundertherulesoftheNYSE,ourdirectorindependencestandardsandapplicablerulesoftheSEC.TheCommitteeoperatesunderawrittenCharterthatspecifiestheCommittee’sresponsibilities.ThefulltextoftheCommittee’sCharterisavailableontheCorporateGovernancepageofRyder’swebsite(www.ryder.com).TheAuditCommitteemembersarenotauditorsandtheirfunctionsarenotintendedtoduplicateortocertifytheactivitiesofmanagementandtheindependentregisteredcertifiedpublicaccountingfirm.

TheAuditCommitteeoverseesRyder’sfinancialreportingprocessonbehalfoftheBoard.Ryder’smanagementhastheresponsibilityforpreparingtheconsolidatedfinancialstatements,forestablishingandmaintainingadequateinternalcontroloverfinancialreportingandforassessingtheeffectivenessofinternalcontroloverfinancialreporting.Ryder’sindependentregisteredcertifiedpublicaccountingfirmisresponsibleforperforminganintegratedauditofRyder’sannualconsolidatedfinancialstatementsandinternalcontroloverfinancialreportingasoftheendoftheyearinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(PCAOB)andexpressingopinionson(1)whetherthefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionandresultsofoperationsandcashflowsofRyderinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesand(2)whetherRydermaintainedeffectiveinternalcontroloverfinancialreportingbasedoncriteriaestablishedin“InternalControl-IntegratedFramework(2013)”issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).Infulfillingitsoversightresponsibilities,theCommitteereviewedanddiscussedtheauditedconsolidatedfinancialstatementsintheannualreportonForm10-KforthefiscalyearendedDecember31,2015andmanagement’sassessmentoftheeffectivenessofinternalcontroloverfinancialreportingwithCompanymanagement,includingadiscussionofthequalityoftheaccountingprinciples,thereasonablenessofsignificantjudgmentsandtheclarityofdisclosuresinthefinancialstatements.

TheCommitteereviewedwiththeindependentregisteredcertifiedpublicaccountingfirmitsjudgmentsastothequalityofRyder’saccountingprinciplesandsuchothermattersasarerequiredtobediscussedwiththeCommitteebyAuditingStandardNo.16,“CommunicationswithAuditCommittees”,adoptedbythePCAOB,asamendedandtherulesoftheSEC.Inaddition,theCommitteehasdiscussedwiththeindependentregisteredcertifiedpublicaccountingfirmthefirm’sindependencefromCompanymanagementandRyder,reviewedthewrittendisclosuresandletterfromtheindependentregisteredcertifiedpublicaccountingfirmrequiredbyapplicablerequirementsofthePCAOBregardingtheindependentregisteredcertifiedpublicaccountingfirm’scommunicationswiththeAuditCommitteeconcerningindependence,andconsideredthecompatibilityofnon-auditserviceswiththeindependentregisteredcertifiedpublicaccountingfirm’sindependence.

TheCommitteediscussedwithRyder’sinternalauditorandrepresentativesoftheindependentregisteredcertifiedpublicaccountingfirmtheoverallscopeandplansfortheirrespectiveaudits.TheCommitteemetwiththeinternalauditorandrepresentativesoftheindependentregisteredcertifiedpublicaccountingfirm,withandwithoutmanagementpresent,todiscusstheresultsoftheiraudits;theirevaluationsofRyder’sinternalcontrol,includinginternalcontroloverfinancialreporting;andtheoverallqualityofRyder’sfinancialreporting.

Inrelianceonthereviewsanddiscussionsreferredtoabove,theCommitteerecommendedtotheBoard,andtheBoardhasapproved,thattheauditedconsolidatedfinancialstatementsandmanagement’sassessmentoftheeffectivenessofRyder’sinternalcontroloverfinancialreportingbeincludedintheannualreportonForm10-KfortheyearendedDecember31,2015filedbyRyderwiththeSEC.TheCommitteehasalsoapproved,subjecttoshareholderratification,theselectionofPricewaterhouseCoopersLLPasRyder’sindependentregisteredcertifiedpublicaccountingfirmforthe2016fiscalyear.

SubmittedbytheAuditCommitteeoftheBoard.

RobertA.Hagemann(Chair) AbbieJ.SmithTamaraL.Lundgren HanselE.Tookes,IILuisP.Nieto,Jr.


Security Ownership of Officers and Directors

SECURITY OWNERSHIP OF OFFICERS AND DIRECTORS

ThefollowingtableshowsthenumberofsharesofcommonstockbeneficiallyownedasofJanuary20,2016,byeachdirectorandeachexecutiveofficernamedintheSummaryCompensationTablehereinindividuallyandalldirectorsandexecutiveofficersasagroup.Nofamilyrelationshipsexistamongourdirectorsandexecutiveofficers.

Name of Beneficial Owner Total Shares

Beneficially Owned 1 Percent of Class 2

Of the Total SharesBeneficially Owned,

Shares Which May beAcquired Within 60

Days 3

RobertE.Sanchez4,5 342,110 * 111,734

JohnM.Berra6 25,420 * 25,420

DennisC.Cooke 54,712 * 28,939

RobertJ.Eck4 10,026 * 8,126

RobertD.Fatovic5 77,566 * 20,665

ArtA.Garcia5 70,895 * 24,816

GregoryF.Greene 29,100 * 20,665

RobertA.Hagemann6 4,801 * 2,401

L.PatrickHassey 20,021 * 20,021

MichaelF.Hilton 6,048 * 6,048

TamaraL.Lundgren 5,199 * 5,199

LuisP.Nieto,Jr. 18,195 * 18,195

AbbieJ.Smith5,6 36,924 * 25,852

E.FollinSmith6 21,763 * 21,763

HanselE.Tookes,II4,6 26,774 * 25,774

DirectorsandExecutiveOfficersasaGroup(20persons)4,5

867,291

1.599%

414,624

* Representslessthan1%ofouroutstandingcommonstock.

1 Unlessotherwisenoted,allsharesincludedinthistableareowneddirectly,withsolevotinganddispositivepower.ListingsharesinthistableshallnotbeconstruedasanadmissionthatsuchsharesarebeneficiallyownedforpurposesofSection16oftheSecuritiesExchangeActof1934,asamended(ExchangeAct).

2 PercentofclasshasbeencomputedinaccordancewithRule13d-3(d)(1)oftheExchangeAct.

3 RepresentsoptionstopurchaseshareswhichbecameexercisablebetweenJanuary20,2016andMarch20,2016,time-basedandperformance-basedrestrictedstockrightsvestingonFebruary7,2016andFebruary8,2016andrestrictedstockunitsheldintheaccountsofdirectorsthataredelivereduponthedirector'sdeparturefromtheBoard,whichsharesvestupongrant,followingadirector'sfirstyearofserviceontheBoard.

4 Includessharesheldthroughatrust,jointlywiththeirspousesorotherfamilymembersorheldsolelybytheirspouses,asfollows:Mr.Sanchez,2,152shares;Mr.Eck,1,900shares;Mr.Tookes,1,000shares;andalldirectorsandexecutiveofficersasagroup,5,052shares.

5 Includessharesheldintheaccountsofexecutiveofficerspursuanttoour401(k)plananddeferredcompensationplanandsharesheldintheaccountsofdirectorspursuanttoourdeferredcompensationplanasfollows:Mr.Sanchez,4,389shares;Mr.Fatovic,2,280shares;Mr.Garcia,3,048shares;Ms.A.Smith,11,072shares;andalldirectorsandexecutiveofficersasagroup,21,055shares.

6 Includesstockgrantedtothedirectorinlieuofhisorherannualcashretainer,whichstockhasvestedbutwillnotbedeliveredtothedirectoruntilsixmonthsafterhisorherdeparturefromtheBoard.


Security Ownership of Certain Beneficial Owners | Section 16(a) Beneficial Ownership Reporting Compliance

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

Thefollowingtableshowsthenumberofsharesofcommonstockheldbyallpersonswhoareknownbyustobeneficiallyownorexercisevotingordispositivecontrolovermorethanfivepercentofouroutstandingcommonstock.

Name and Address

Number of Shares

BeneficiallyOwned

Percent ofClass 4

TheVanguardGroup,Inc.1100VanguardBlvd.Malvern,PA19355

4,619,296 8.52%

BlackRock,Inc.255East52ndStreetNewYork,NY10055

3,865,050 7.13%

AllianzGlobalInvestorsU.S.HoldingsLLCandNFJInvestmentGroupLLC3c/oAllianzGlobalInvestorsU.S.HoldingsLLC1633BroadwayNewYork,NY10019

3,668,708 6.77%

1 BasedonthemostrecentSECfilingbyTheVanguardGroup,Inc.onSchedule13G/AdatedFebruary10,2016.Ofthetotalsharesshown,thenatureofbeneficialownershipisasfollows:solevotingpower85,647;sharedvotingpower2,700;soledispositivepower4,534,149;andshareddispositivepower85,147.

2 BasedonthemostrecentSECfilingbyBlackRock,Inc.onSchedule13G/AdatedJanuary22,2016.Ofthetotalsharesshown,thenatureofbeneficialownershipisasfollows:solevotingpower3,401,136;sharedvotingpower0;soledispositivepower3,865,050;andshareddispositivepower0.

3 BasedonthemostrecentSECfilingbyAllianzGlobalInvestorsU.S.HoldingsLLConSchedule13GdatedFebruary12,2016.Ofthetotalsharesshown,thenatureofbeneficialownershipisasfollows:solevotingpower:AllianzGlobalInvestorsGmbH(AllianzGmbH)250,681,AllianzGlobalInvestorsU.S.LLC(AllianzU.S.)4,007andNFJInvestmentGroupLLC(NFJ)3,209,412;sharedvotingpower0;soledispositivepower:AllianzGmbH404,689,AllianzU.S.51,207andNFJ3,212,812;andshareddispositivepower0.TheaddressofNFJis2100RossAvenue,Suite700,Dallas,TX75201.

4 TheownershippercentagessetforthinthiscolumnarebasedonthenumberofsharesoutstandingoftheCompany'scommonstockonJanuary20,2016,andtheassumptionthateachpersonlistedaboveownedthenumberofsharesreflectedaboveonsuchdate.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section16(a)oftheSecuritiesExchangeActof1934requiresourdirectorsandexecutiveofficers,andpersonswhobeneficiallyownmorethan10%ofaregisteredclassofourequitysecurities,tofilereportswiththeSECrelatingtotheircommonstockownershipandchangesinsuchownership.Toourknowledge,basedsolelyonourrecordsandcertainwrittenrepresentationsreceivedfromourexecutiveofficersanddirectors,duringtheyearendedDecember31,2015,allSection16(a)filingrequirementsapplicabletodirectors,executiveofficersandgreaterthan10%shareholderswerecompliedwithonatimelybasis.


Compensation Discussion and Analysis

COMPENSATION DISCUSSION AND ANALYSIS

ThisCompensationDiscussionandAnalysisisdesignedtoprovideourshareholderswithaclearunderstandingofourcompensationphilosophyandobjectives,compensation-settingprocess,and2015compensationprogramsandactionsforournamedexecutiveofficers.AsdiscussedinProposal3onpage60,weareconductingourannualSayonPayvotethatrequestsyourapprovalofthecompensationofournamedexecutiveofficersasdescribedinthissectionandinthetablesandaccompanyingnarrativecontainedintheExecutiveCompensationsection.Indecidinghowtovote,youshouldreviewourcompensationphilosophies,thedesignofourexecutivecompensationprograms,ourpay-for-performanceprofile,materialcompensationdecisionsandhowwebelievetheseprogramsanddecisionshavecontributedtostrongshort-termfinancialperformanceandwillhelpsupportanddrivelong-termgrowthandvalue.

In2015,ournamedexecutiveofficers,orNEOs,were:

RobertE.Sanchez ChairandChiefExecutiveOfficer(CEO)ArtA.Garcia ExecutiveVicePresidentandChiefFinancialOfficerDennisC.Cooke President-GlobalFleetManagementSolutionsGregoryF.Greene ExecutiveVicePresidentandChiefAdministrativeOfficerRobertD.Fatovic ExecutiveVicePresident,ChiefLegalOfficerandCorporateSecretary

Executive Summary

Ryder'sexecutivecompensationdecisionsreflecttheCompany'scommitmenttopayforperformanceandtostronglyaligntheinterestsoftheCompany'sleadershipwiththoseofourshareholders.Inaddition,theCompany'sexecutivecompensationprogramisdesignedtoencourageourexecutivestotakeactionsthatsupporttheCompany'sshort-termfinancialgoalsbutwhichalsoensuretheCompany'sabilitytosustainstrongshareholdervaluecreationoverthelong-term,irrespectiveofannualperformancevariability.Thisexecutivesummaryprovidesanoverviewof2015Companyperformance,thealignmentbetweenourpayandourperformance,shareholderoutreacheffortsandSayonPayfeedback,keycompensationactionstakenin2015andourexecutivecompensationgovernancepractices.

2015 Company Performance

Thetablebelowshowsthekeyhighlightsofourfinancialperformancein2015:

Financial HighlightsØ Recordoperatingrevenueof$5.6billion(up6%from2014)

andrecordcomparableearningspershareof$6.13(up10%from2014).*

Ø Organicleasefleetgrowthexceededexpectationswithanincreaseofover6,000units(thelargestinthelastdecade)duetocontinuedstrongsalesactivityinourfullserviceleaseproductline.

Ø Totalrevenueremainedat$6.6billion,withgrowthinoperatingrevenueoffsetbylowerfuelcostspassedthroughtocustomersandnegativeimpactsfromforeignexchange.

Ø Solidrentalperformanceandfleetutilizationdespiteweakerfreighttrends.

Ø Operatingrevenuegrowthinallbusinesssegments,withearningsbeforetaxgrowthof7%inourFleetManagementSolutions(FMS)businesssegment.

Ø Strongreturnonequityandsolidreturnoncapitalwithapositivespreadbetweencostofcapitalandreturnoncapitalof140basispoints,thehighestin10years,whichwearecontinuouslystrivingtoimprove.

Ø OperatingrevenuegrowthinSupplyChainSolutions(SCS)andDedicatedTransportationSolutions(DTS)revenuereflectingnewbusiness,highervolumesandincreasedpricing.

Ø Higheroperatingcashflowduetostrongoperatingperformance,withhighernegativefreecashflowtofundgrowthinourfullserviceleaseandrentalfleetsthroughincreasedinvestments.

Ø Despitesolidrevenueandearningsgrowth,ourtotalshareholderreturnwas-38%for2015versus-29%forourCustomPeerGroup.

Ø Increasedannualdividendtoshareholdersby11%.

*Operatingrevenueandcomparableearningspersharearenon-GAAPfinancialmeasures.ForareconciliationtototalrevenueandGAAPEPS,respectively,refertoourForm10-KfortheyearendedDecember31,2015.



Strategic/Business HighlightsØ Strong2015financialperformancewhilemakinginvestments

ininformationtechnologyandmarketingtosupportgrowthinitiatives,ensuringoperationalexcellenceandfosteringacultureofcustomerfocus.

Ø DevelopingandlaunchingnewproductssuchasOn-DemandMaintenanceandTranSync.

Ø Strongandengagedleadershipthroughouttheorganization;widespreadcommunicationandunderstandingonstrategicinitiatives.

Ø Effectiveassetmanagementinitiativescontributedtosolidrentalperformance.

Ø Successfulcollaborativesellingactivitiesacrossallsegmentstodrivefuturerevenuegrowth.

Ø Progressonreducingpensionliabilitythroughinvestmentstrategies,pensionbuy-outofferandwithdrawalfromseveralmulti-employerpensionplans.

Ø Continuedfocusandstrongprogressonestablishingnewcustomerandindustryrelationshipsinallthreebusinesssegments.

Pay for Performance

At-RiskPay.Consistentwithourcompensationgoalsandphilosophy,ourexecutives'directcompensationpackageiscomprisedofbasesalary,anannualcashincentiveawardandalong-termperformance-basedequityandcashincentiveaward.ThefollowingchartillustratestheCompany' scommitmenttopayforperformanceandshareholderalignmentasitshowsthatfor2015,(1)87%ofMr.Sanchez'stargettotaldirectcompensationandover74%oftheotherNEOs' targettotaldirectcompensationwasintheformof“ at-risk” incentivecompensationopportunities,thevestingandvalueofwhichistiedtoachievementofperformancegoalsandtheCompany' sstockprice,and(2)67%ofMr.Sanchez'spayand53%ofpayfortheotherNEOswasintheformoflong-termequityandincentivecompensation,whichdirectlyalignstheinterestsofshareholdersandexecutives.Inaddition,wecapthemaximumpayoutofourannualcashincentiveawardsbasedonapercentageofourEBT,andcapourperformance-basedrestrictedstockrightsandperformance-basedcashawardsto125%oftargettolimitthepotentialforexcessiverisktaking.

Thepercentagesinthechartbelowweredeterminedusing(1) actualsalariesasreportedintheSummaryCompensationTable;(2) targetpayoutopportunitiesundertheannualcashincentiveawards;and(3) targetlong-termincentiveprogram(LTIP)values.



AnnualCashIncentive.AsdescribedlaterinthisCD&A,in2015,theannualcashincentiveawardpayoutswerefundedoutofpre-taxoperatingearningsuptoamaximumof$300millionofearnings.ActualpayoutstoindividualexecutiveswerebasedprimarilyontheachievementofcertainlevelsofoperatingrevenueandcomparableEPS.Asshownbelow,theoperatingrevenueandcomparableEPStargetsrequiredtoachieveatargetpayoutfor2015weremeasurablyhigherthanactualresultsfor2014,requiringexecutivesandtheCompanytodrivesignificantlybetterperformanceinordertoearnatargetpayout.Specifically,for2015,thetargetoperatingrevenuewas$5.67billion,a8.0%increasefrom2014actualoperatingrevenue.Similarly,thetargetcomparableearningspersharefor2015was$6.40,a14.7%increasefromtheresultsachievedin2014.ThisdemonstrateshowchallengingourtargetsareaswellasthealignmentbetweenourexecutivepayandCompanyperformancewhenperformanceisbelowourtargets.

2014 and 2015 Performance Grids



Long-TermIncentive.Totalshareholderreturn(TSR)andadjustedreturnoncapital(ROC)weretheperformancemetricsusedtodeterminethepayoutsoftheperformance-basedrestrictedstockrights(PBRSRs)andperformance-basedcashawards(PBCAs)grantedaspartofourLTIP.

Belowisasummaryoftheperformancestatusthrough2015forallPBRSRsandPBCAsgrantedunderourLTIPsince2013.

Grant YearPerformance

Cycle Performance Measure Performance Status Award StatusPercentage

Earned

2013

1of3 2013

TSRv.CustomPeerGroup(50%)

Ryder'sTSRranked13thof28companiesinCustomPeerGroup

AwardEarned 106.25%

ROCtargetsetannually(50%)

Ryder'sROCwas5.75%versustargetof5.80%

AwardPartiallyEarned

96.77%

2of3

2013-2014


Ryder'sTSRranked8thof27companiesinCustom

PeerGroup

AwardEarned 125.00%

2014 ROCtargetsetannually(50%)


AwardEarned 115.00%

3of3

2013-2015




70.00%

2015 ROCtargetsetannually

(50%)Ryder'sROCwas5.82%versustargetof6.00%


88.75%

TotalPayoutforthe2013Grant

(3of3PerformanceCycles)

=

TSRPerformanceMeasure 100.42%

ROCPerformanceMeasure 100.17%

2014

1of3 2014



AwardEarned 120.00%



AwardEarned 115.00%

2of3

2014-2015




40.00%

2015 ROCtargetsetannually

(50%)Ryder'sROCwas5.82%versustargetof6.00%


88.75%

2015

1of3 2015 TSRv.CustomPeerGroup(50%)



60.00%




88.75%



Shareholder Outreach - Say on Pay Feedback

Atour2015AnnualMeeting,96%ofshareholdersapprovedourSayonPayproposal.Wearepleasedthatourshareholdersapproveandsupportoureffortstoofferacompetitiveexecutivecompensationprogramthatdeliversshareholdervalueoverboththeshort-andlong-term.TheCommitteeandtheothermembersofourBoardbelievethatthisvotereflectedourshareholders'supportofourexecutivecompensationprogramsandthedecisionsmadebytheCommittee.Evenwiththesehighlevelsofsupport,theCompanystronglybelievesintheimportanceofobtainingshareholderfeedbackandwehavecontinuedourongoingshareholderoutreachprogram.IntheSummerandFallof2015,wereachedouttoourlargestshareholders(constitutingover50%ofouroutstandingshares)torequestfeedbackonbothourgovernanceandcompensationstructureandprofile.Overall,wereceivedpositivefeedbackregardingourcompensationprogramsandamounts.

GiventhestrongSayonPayvotingresultsandpositivefeedbackfromourshareholders,wedidnotseektomakeanysignificantchangestoouroverallexecutivecompensationprogramin2015.SomechangesweremadeasapartoftheCommittee'songoingassessmentofwhetherourcompensationprogramsareoptimallydesigned,takingintoaccounthowtobestensurealignment,respondtochangingmarketpracticesandretaineffectiveleaderswhohaveasignificantunderstandingofourbusiness,particularlyduringavolatileeconomicenvironment.Forexample,althoughnotspecificallyraisedbyourshareholders,inFebruary2016,theBoardamendedthe2012EquityandIncentiveCompensationPlantomakecertainchangestothe2012Planincludingmovingfrom"single-trigger"to"double-trigger"vestingintheeventofachangeincontrolandisseekingshareholderapprovalfortheAmendedPlanatthe2016AnnualMeetingassetforthinProposal4.ThesechangesalignwiththepoliciesofourlargestshareholdersandwithwhatourCompensationCommitteebelievesisbestpracticeinthisarea.

2015 Key Compensation Actions and Decisions

In2015,theCommitteecontinuedtoevaluateourexecutivecompensationlevelsincludinghowtheycomparetothemedianofpeercompanies,andmadeanynecessaryadjustmentstoensurethedesign,structureandpayoutsofourexecutivecompensationprogramsareconsistentwithandsupportourcompensationphilosophyandobjectives.HighlightedbelowarethekeyactionstakenbytheCommitteein2015relatingtoexecutivecompensationallofwhichreflecttheCompany'scommitmenttoaligningpayandperformance:

• Moved from "single-trigger" to "double-trigger" vesting provisions in our equity and incentive compensation plan. TheBoardamendedthe2012EquityandIncentiveCompensationPlantoprovidefordouble-triggervestingofallfutureincentivegrantsuponachangeincontrol,amongotherchanges,andisproposingtheAmendedPlantoshareholdersforapprovalatthe2016AnnualMeeting.

• Change to annual cash incentive awards. In2015,theCommitteeadjustedtheslopeofthefinancialperformance-basedgridforthe2015annualcashincentiveawardstorequirehighergrowthlevelstoachievesimilarpayouts.

• Changes to TSR payout grid. BasedonareviewofthestructureoftheTSRpayoutgridforthePBRSRsandPBCAs,theCommitteedeterminedtoflattentheslopeofthegridsothatasinglechangeinrankingdidnotresultinasignificantchangetothepayout.AflatterslopeservestomoderatepayoutchangesiftheCompany'srelativeTSRimprovementismodest.Basedonthenewgrid,thepayoutwouldbeadjustedby10%foreverypositionchangeratherthan18.75%.Themaximumpayoutwouldremainat125%forRyder'sexecutivesalthougha200%maximumisacommonpracticeatmanyothercompanies.

• Adopted a new two-year anti-dilutive share repurchase program. In2015,theBoardofDirectorsauthorizedanewsharerepurchaseprogramtomitigatethedilutiveimpactofsharesissuedundertheCompany'svariousemployeestock,stockoptionandemployeestockpurchaseplans.Weexpecttoresumeanti-dilutivesharerepurchasesinthesecondhalfof2016.



Summary of Executive Compensation Governance Practices

Ourexecutivecompensationpracticessupporttheneedsofourbusiness,driveperformance,andensurealignmentwiththelong-terminterestsofourshareholders.Belowisasummaryofwhatwedoanddon'tdointhatregard.

What We Do

üü Pay for performance -Ourexecutivecompensationprogramemphasizesvariablepayoverfixedpay,with87%ofCEOtargetcompensation(and74%inthecaseofourotherNEOs)linkedtoourfinancialresultsormarketperformance.

üü Mitigate undue risk in compensation plans - Weundergoarobustriskassessmentofallexecutivecompensationprogramsannually.Wealsolimitthemaximumpayoutofourannualcashincentiveawardsandourperformance-basedrestrictedstockrightsandperformance-basedcashawardstolimitthepotentialforexcessiverisktaking.

üü Offer limited perquisites -Perquisitesgenerallytrackthebenefitsofferedbroadlytoothersalariedemployees.üü Use double-trigger change in control provisions -Ourannualcashincentiveawards(bonus)andcashseveranceunderour

severanceagreementsincludedouble-triggervestingprovisions.Additionally,theBoardrecentlyamendedthe2012EquityandIncentiveCompensationPlantoprovidefordouble-triggervestingofallfutureequityandincentivegrantsuponachangeincontrol,amongotherchanges,andisproposingtheAmendedPlantoshareholdersforapprovalatthe2016AnnualMeeting.

üü Negative discretion on annual cash incentive awards - Abilitytoreducepayoutsbasedonindividualperformance.üü Engage an independent compensation consultant -Ourcompensationconsultantdoesnotprovideanyotherservicestothe

Company.üü Maintain robust stock ownership requirements -FourtimestheannualbasesalaryforCEO;andtwotimestheannualbasesalary

forotherNEOs;allNEOsmustsatisfytherequirementswithin5yearsofappointmentorelection.üü Clawback policy -Performance-basedincentiveawardsmaybe"clawedback"ifaNEO'swillfulmisconductcausestheCompanyto

restateitsfinancialresults,orifheorsheisterminatedforcauseorviolatescertainnonsolicitation/noncompeteprovisions.üü Compliance with 162(m) -Ourannualcashincentiveawardsandallcompensationgrantedunderour2015LTIParedesignedto

meetthe"performancebased"exceptionfordeductibility.

What We Don't Doûû Provide employment agreementsûû Gross up excise taxes upon change in controlûû Gross up taxes on perquisites or benefitsûû Reprice underwater stock options without shareholder approvalûû Allow equity grants below 100% fair market valueûû Pay dividends on unvested performance-based restricted stock rights or time-based restricted stock rightsûû Permit hedging or monetization transactions such as zero-cost collars or forward sale contractsûû Permit pledging activity or use of margin accounts



Compensation Philosophy and Objectives

Ourprimarygoalistodesigncompensationprogramsthatwillattract,retainandmotivatehigh-qualityexecutiveswhopossessdiverseskillsandtalents.Webelievethesecompensationprograms,togetherwithaworkplaceculturethatencouragescareerdevelopmentandloyalty,establishRyderasapremieremployerandultimatelyincreasethevalueofourshareholders' investmentintheCompany.Weseektoofferanexecutivecompensationprogramthatallowsustoimplementandadjustcompensationelementsinordertodelivermarketcompetitivecompensation,alignourbusinessstrategyanddriveandrewardperformance.Inadditiontomaintaininganattractiveandcompetitivecompensationprogram,ourcompensationprogramhasfourkeygoals:

• AligntheinterestsofCompanyexecutiveswithourshareholdersbytyingasignificantportionofexecutivecompensationtostrongoverallCompanyperformancethroughtheuseofcomplementarypayelements.

• Balancetheshort-andlong-terminterestsofourshareholderssothatourexecutivesareappropriatelyencouragedandrewardedtotakeactionsthatareinthebestinterestsofourshareholderswhencarryingouttheirdutiesasexecutivesofRyder.

• Provideincentivestoexecutivesthatwillpromotelong-term,sustainable,profitablegrowthandencourageappropriaterisktaking.• Rewardeachnamedexecutiveofficer' sindividualperformance,contributionandvaluetoRyder.

Compensation Setting Process

TheCompensationCommitteeisresponsibleformakingdeterminationsaboutourexecutivecompensationprograms,practicesandlevels.TheCompensationCommittee'sindependentcompensationconsultantandmanagementassisttheCommitteeinmakingthesedeterminations.Belowisanexplanationof(1)thekeyrolesandresponsibilitiesofeachgroupinsettingexecutivecompensation,(2)theexecutiveevaluationprocessand(3)howcompetitivemarketdataisintegratedintothedecision-makingprocess.

Role of the Compensation Committee

TheCompensationCommitteeisresponsibleforreviewingandapproving,orrecommendingthattheBoardapprove,allcomponentsofourexecutivecompensationprogramaswellasthecompensationprogramforourBoard.NewexecutivecompensationplansandprogramsmustbeapprovedbythefullBoardbasedonrecommendationsmadebytheCompensationCommittee.TheCompensationCommittee,withinputfromtheCEO,isresponsibleforsettingthecompensationofallotherNEOs.Ourindependentdirectors,actingasagroup,areresponsibleforsettingCEOcompensationbasedonrecommendationsfromtheCompensationCommittee.OurindependentdirectorsmeetaftereachCompensationCommitteemeetingtoreviewanddiscussmanagement'srecommendations.

Role of the Independent Compensation Consultant

TheCompensationCommitteehasretainedFredericW.Cook&Co.,Inc.(Cook)asitsindependentconsultant.CookreportsdirectlytotheCompensationCommitteeandperformsnootherworkfortheCompany.TheCompensationCommitteehasanalyzedwhethertheworkofCookasacompensationconsultanthasraisedanyconflictofinterest,takingintoconsiderationthefollowingfactors:(1)theprovisionofotherservicestotheCompanybyCook;(2)theamountoffeesfromtheCompanypaidtoCookasapercentageofCook'stotalrevenue;(3)Cook'spoliciesandproceduresthataredesignedtopreventconflictsofinterest;(4)anybusinessorpersonalrelationshipoftheindividualcompensationadvisorsontheRyderconsultingteamwithanymemberoftheCompensationCommittee;(5)anystockoftheCompanyownedbyCookortheindividualcompensationadvisorsontheRyderconsultingteam;and(6)anybusinessorpersonalrelationshipofCookortheindividualcompensationadvisorsontheRyderconsultingteamwithanexecutiveofficeroftheCompany.Inperformingitsanalysisofthesefactors,theCompensationCommitteeundertakesanannualreviewofconflictsofinterestandindependence,whichincludesareviewofaconflictsofinterestandindependenceletterprovidedbyCookandeachdirector'sresponsestoquestionnairesaskingaboutanyrelationshipswithCook.TheCompensationCommitteehasdetermined,basedonitsanalysisoftheabovefactors,thattheworkofCookandtheindividualcompensationadvisorsemployedbyCookascompensationconsultantstotheCompanyhasnotcreatedanyconflictofinterestandthatCookisindependent.



During2015,theCompensationCommitteeretainedCookto:

• provideindependentadvicetotheCompensationCommitteeoncurrenttrendsandbestpracticesincompensationdesignandprogramalternatives;

• advisetheCompensationCommitteeonanyplansorpracticesthatmayimproveeffectiveness;• providepeergroupandsurveydataforcompetitivecomparisons;and,basedonthisinformation,offerindependentrecommendationson

CEO,NEOandBoardcompensation;• reviewtheCompensationDiscussionandAnalysis,compensationtables,andothercompensation-relateddisclosuresinourproxy

statement;• offerrecommendations,insightsandperspectivesoncompensation-relatedmatters;• evaluate,andadvisetheCompensationCommitteeregardingenterpriseandrelatedriskassociatedwithexecutivecompensation

components,plansandstructures;and• supporttheCompensationCommitteetoensureexecutivecompensationprogramsandpracticesarecompetitiveandaligntheinterestsof

ourexecutiveswiththoseofourshareholders.

In2015,CookattendedamajorityoftheCompensationCommitteemeetingsinpersonorbytelephone,includingoutsidedirectorsessionsasrequested,andconsulted,asnecessary,withtheCompensationCommitteeChairbetweenmeetings.

Role of Management

OurCEO,ChiefAdministrativeOfficer,VicePresidentofCompensationandBenefits,ChiefLegalOfficer,andVicePresidentandDeputyGeneralCounseldevelopwrittenbackgroundandsupportingmaterialsforreviewatCompensationCommitteemeetings,attendCompensationCommitteemeetingsattheCompensationCommittee'srequest,andprovideinformationregarding,andmakerecommendationsabout,designsforand,ifwarranted,changestoourexecutivecompensationprograms.OurCEOprovidesanassessmentofeachexecutiveofficer'sperformanceandrecommendscompensationactionsforexecutiveofficersotherthanhimself.

Evaluating Performance

Annually,ourCEOprovidestheCompensationCommitteewithaperformanceassessmentandcompensationrecommendationforeachnamedexecutiveofficerotherthanhimself.Theperformanceassessmentincludesstrengths,areasfordevelopmentandsuccessionpotentialandisbasedonindividualperformanceevaluationsconductedbytheCEO.OurCEOalsoreviewseachexecutive' scompensationhistoryandcurrentmarketcompensationdata.AttheBoard' sannualsuccessionplanningmeetinginOctober,theperformanceofeachNEOisalsodiscussedbythefullBoardaspartofRyder' ssuccessionplanningprocess.

Attheendofeachyear,theindependentdirectorsbegintoconductaperformancereviewoftheCEO.Forthereview,theCEOandeachindependentdirectorcompleteacomprehensiveCEOevaluationquestionnairerelatingtotheCEO' sperformance.ThisquestionnaireispreparedbytheGovernanceCommittee,whichisresponsiblefordevelopingandoverseeingtheprocessbywhichtheCEOwillbeevaluated.Thequestionnairefocuseson(1) CEOperformancerelativetohisindividualgoalsandobjectives,(2)theCompany'shistoricalandforecastedperformance,(3) CEOeffectivenessinleadingtheorganization,theBoardandexternalconstituencies,(4) CEOeffectivenessatteambuildingandsuccessionplanninganddevelopmentand(5) CEOeffectivenessindevelopingandleadingimplementationofstrategicinitiatives.AttheFebruaryCommitteemeeting,theCompensationCommitteediscussestheresultsoftheCEO’sperformancereviewinoutsidedirectorssessionandformulatesitsrecommendationsregardingCEOcompensation.AttheFebruaryBoardmeeting,inoutsidedirectorssessionwithouttheCEOpresent,theindependentdirectorsevaluateanddiscusstheCEO’sperformanceanddeterminehiscompensationbasedontheresultsofhisperformanceevaluationandtherecommendationsoftheCompensationCommittee.FeedbackisthenprovidedtotheCEOonhisperformancebytheLeadIndependentDirectorandChairoftheCompensationCommittee.



Benchmarking

IndustryPeerGroup-Inevaluatingeachelementofourexecutivecompensationprogram,theCompensationCommitteetraditionallyconsiderstheexecutivecompensationprogramandpractices,aswellasthefinancialperformance,ofacomparativegroupofcompanies.TheCompensationCommitteeusesbenchmarkcomparisonstopeergroupsorpublishedsurveys,asapplicable,toensurethatitisactingonaninformedbasisandtoestablishpointsofreferencetodeterminewhetherandtowhatextentitisestablishingcompetitivelevelsofcompensationforourexecutives.TheCompensationCommitteedoesnotdesignourexecutivecompensationprogramstofitwithinaspecificpercentileoftheexecutivecompensationprogramsofothercompaniescomprisinganyparticularpeergrouporsurvey.TheCommitteedoesconsiderthemediancompensationofsimilarexecutivesatthepeercompaniesbothforeachcompensationcomponentandthetotalcompensationpackageasareferencepointinmakingcompensationdecisions,particularlywherethereissignificantmarketcompetitionforaparticularposition.

Inassemblingcomparatorpeergroups,theCompensationCommitteeismindfulthatalthoughthereareotherpubliccompaniesthatprovidetransportationorsupplychainservices,therearenopubliccompaniesthatprovidesimilarfleetmanagementservices(whichrepresentapproximately63%ofourconsolidatedrevenuefor2015)orthatprovidethesamemixofservices,andpubliclydisclosefinancialperformanceandcompensationdatarelatingtothatbusiness.Consequently,comparablecompensationdataislimitedandlessrelevantforRyderthanitisforothercompaniesinindustrieswheretherearemoredirectlyrelevantandcomparablepeergroups.

Inconnectionwithitsreviewofcompetitivemarketdata,Cookutilizedonepeergroup(IndustryPeerGroup)againstwhichitanalyzedeachNEO' scompensation.In2015,RyderremovedPHHCorporationfromtheIndustryPeerGroupbecauseithaddisposedofitsvehicleleasingunit.TheIndustryPeerGroupiscomprisedoffifteencompaniesthatareinarelatedindustryandthatallhaveoneormoreservicesoroperatingcomponentssimilartoRyder' sserviceofferings.AlthoughRyderisoftenincludedinthebroadtransportationindustrygroup,wedonotincludetransportationcompaniesthathavesignificantlydifferentvaluepropositions,operatingmodelsandeconomicprofiles,suchasairlines.TheIndustryPeerGroupiscomprisedof:

1. AvisBudgetGroup,Inc. 9. HertzGlobalHoldings,Inc.2. C.H.RobinsonWorldwide,Inc. 10. HubGroup,Inc.3. CeladonGroup,Inc. 11. J.B.HuntTransportServicesInc.4. Con-wayInc. 12. LandstarSystem,Inc.5. CSXCorporation 13. OldDominionFreightLine,Inc.6. ExpeditorsInternationalofWashington,Inc. 14. TrinityIndustries,Inc.7. FEDEXCorporation 15. UnitedParcelService,Inc.8. GATXCorporation

During2015,Con-wayInc.wasacquiredbyXPOLogistics,Inc.and,asaresult,Con-waywasnolongeraseparatepubliclytradedcompanyattheendoftheyearandwillnotbeincludedinourIndustryPeerGroupinthefuture.

ManagementandtheCompensationCommitteebelievethatutilizingdatafromthisIndustryPeerGroupprovidesausefulbasisofcomparisonforNEOcompensation,aswecompetewithmanyofthesecompaniesforexecutivetalent.SimilartoRyder,manyofthesecompaniesareasset-basedprovidersoftransportationortransportation-relatedservicesorotherwiseprovideleasingorrentalservices.Furthermore,manyareimpactedbysimilareconomicfactorsaffectingRyderincludingfreightdemandandfuelprices.

GeneralIndustrySurveyData-TheCompensationCommitteealsoreviewsgeneralindustrysurveydata,particularlywhenappropriatepeergroupdataisunavailable.Thisensuresthatweareactingresponsiblyinestablishingcompetitivelevelsofcompensationforourexecutives,asthisperspectiverecognizesthelimitationsofpeergroupdataandrecognizesthatRyderalsocompetesforexecutivetalentoutsideofthetransportationindustry.



2015 Executive Compensation Program

Components of Compensation

Ourexecutiveofficersdonothaveemploymentagreementswhich,webelieve,givestheCompensationCommitteeflexibilitytochangethecomponentsofourexecutivecompensationprograminordertoremainmarketcompetitive,addresseconomicconditionsandensureproperalignment.

Wedonothaveaformalpolicyrelatingtotheallocationoftotalcompensationamongthevariouscomponents.However,bothmanagementandtheCompensationCommitteebelievethatthemoreseniorthepositionanexecutiveholds,themoreinfluenceheorshehasoverouroperating,financialandstrategicperformance.Assuch,agreateramountofNEOcompensationshouldbeat-riskbasedonRyder' sperformance.Accordingly,themajorityoftargetcompensationthatourNEOsareeligibletoreceiveisdependentupontheachievementofshort-andlong-termperformanceobjectivesand/orappreciationinthevalueofRyderstock.Inadditiontotheseincentiveopportunities,ourcompensationprogramprovidesallexecutiveofficers,includingourNEOs,aproportionatelylesseramountoffixedelements,suchasbasesalaryandbenefits.Wealsoprovidecompetitiveseveranceandchangeofcontrolarrangementstomitigateanynegativeimpactoforganizationalchangesandothercorporateactions.TheactualcompensationmixandvalueforeachNEOmayvarybasedonjobresponsibilities,marketcompetitionfortheposition,anindividual'sexperience,pastperformanceandcontributions,compensationhistory,tenure,long-termpotential,successionplanningandstrategicneeds.

ThechartbelowillustratestheprincipalelementsanddesignofRyder'sexecutivecompensationprogram:

DetaileddescriptionsofthecomponentsofcompensationandhowtheCompensationCommitteedeterminedcompensationlevelsfor2015beginonthefollowingpage.



2015 Compensation Decisions

Base SalaryIndeterminingthebasesalariesofourNEOs,theCompensationCommitteedeterminesourcompetitivemarketpositionfrommarketsurveysandcomparativedataprovidedbyoutsidecompensationconsultants.Annually,abenchmarkingreviewisconductedbytheCommittee'sindependentcompensationconsultant.TheCompensationCommitteedoesnottargetbasepayatanyparticularlevelversusapeergroup,althoughitusesmedianpayasareferencepoint.Instead,theCompensationCommitteebasessalaryadjustmentsongeneralsurveydataanditsoverallassessmentofthefollowingfactors(withoutassigninganyspecificweightingtoanyindividualfactor):

•-----annualmeritincreasepaidtoallotherRyderemployees(whichisbasedontheCompany'sannualplanningbudget);

•-----demandinthelabormarketfortheparticularexecutiveposition;•-----successionplanningimplications;and•-----theindividual'sperformance.

2015Salary InOctober2015,Mr.SanchezandtheotherNEOsreceiveda2%increaseinbasesalaryconsistentwiththetargetmeritincreaseforotherincentive-eligibleemployees.

2016Salary Basedonthe2015benchmarkingreview,theCommitteeincreasedthebasesalaryofMr.Garciaby7.3%effectiveFebruary1,2016.

2015 Annual CashIncentive Awards

Structure-OurexecutiveannualcashincentiveawardsaredesignedtogivetheCompensationCommitteetheabilitytodetermineeachexecutive'sincentivepayoutbased,inpart,ontheexecutive'sindividualperformanceandcontributionstotheCompany'sfinancialresultsandstrategicprogress.PayoutsareinitiallybasedonCompanyperformanceagainsttheperformancemetricsusedfortheannualincentiveawardsgrantedtoallotherincentive-eligibleemployees.TheCompensationCommitteethendeterminestheactualpayoutbasedontheseresultsandtheexecutive'sperformance.Thepayoutiscappedatapercentageofpre-taxearningsfromcontinuingoperations(EBT)uptoEBTof$300million.Forthispurpose,EBTisthecomparableEBTasdisclosedintheCompany'sannualreportonForm10-KfortheyearendedDecember31,2015.Followingarethefundingpercentagesforeachexecutive.

NEO Funding Percentage (of EBT) RobertE.Sanchez 1.00% ArtA.Garcia 0.30% DennisC.Cooke 0.50% GregoryF.Greene 0.25% RobertD.Fatovic 0.25%

Opportunity-TargetpayoutopportunitiesunderourannualcashincentiveawardsaredesignedtomotivateourexecutiveofficerstoactinawaythatwillresultinRyderachievingimprovedyear-over-yearfinancialperformancewithouttakingexcessiverisk.ThesetargetsformthebasisoftheCompensationCommittee'sdeterminationsregardingtheactualpayoutundertheannualcashincentiveawards,uptothemaximumpayoutamountcalculatedusingthefundingpercentageformula.Mr.Sanchez'stargetpayoutopportunityis150%ofbasesalary.ThetargetpayoutopportunityforMr.Cookeis100%ofbasesalary,andforMr.Garcia,Mr.GreeneandMr.Fatovicis80%ofbasesalary.Mr.Sanchez'stargetpayoutopportunityissetatahigherlevelthanourotherexecutiveofficerstoreflecttheincreasedresponsibilitythataccompaniestheroleofCEO.



PerformanceMetrics-Theperformancemetricsusedfortheannualcashincentiveawardsgrantedtoallotherincentive-eligibleemployeesareusedbytheCompensationCommitteeasafoundationtodeterminetheactualpayouttoexecutives.GiventheCompany'scontinuedfocusonearningsandrevenuegrowth,theCompensationCommitteemaintainedcomparableearningspersharefromcontinuingoperationsandoperatingrevenueasthefinancialperformancemetricsusedindeterminingthepayoutundertheannualcashincentiveawards.

Comparableearningspersharefromcontinuingoperations(comparableEPS)(60%weighting)-isdefinedasearningspersharefromcontinuingoperationsexcludingnon-operatingpensioncostsandotheritems.ComparableEPSisakeyfinancialmeasureemphasizedbyRyder'sshareholdersbecauseitisdirectlyalignedwithshareholdervalue.WebelievecomparableEPS(anon-GAAPfinancialmeasure)providesusefulinformationtoinvestorsbecauseitexcludesnon-operatingpensioncosts,whichweconsidertobeimpactedbyfinancialmarketperformance,andotheritemswhich,likepensioncosts,donotreflecttheoperationalperformanceofthebusiness.

Operatingrevenue(40%weighting)-isdefinedastotalrevenueless(1)allfueland(2)subcontractedtransportationrevenueinourSCSandDTSbusinesssegments.Webelieveoperatingrevenue(anon-GAAPfinancialmeasure)isabettermeasureofouroperatingperformanceandsalesactivitythangrossrevenuebecausebothfuelandsubcontractedtransportationarelargelypass-throughstocustomersandthereforehaveminimalimpactonourprofitability.In2015,werevisedtheoperatingrevenuemetricwepublishexternallytoexclude,inadditiontoFMSfuelservicesrevenueandsubcontractedtransportation,fuelcostswebilltocustomersinourSCSandDTSbusinesssegments.

Webelievethatthesetwoperformancemetrics,takentogether,areusefulinmeasuringoursuccessinmeetingourstrategicobjectiveofgrowingourrevenueinawaythatcreatessolidearningsleverage.

WithrespecttomeasuringEBT(thefundingmetric),comparableEPSandoperatingrevenueagainsttheperformancetargets,theCompensationCommitteeretainsthediscretiontoadjustreportedresultsinordertoensurethatactualpayoutsproperlyreflecttheperformanceofourcorebusinessandarenotimpactedpositivelyornegativelybycertainitems,includingnon-recurringornon-operationalitems.TheCompensationCommitteedidnotadjustanyofthe2015metrics.Forreference,inadditiontonon-operatingpensioncostsof$0.21pershare,comparableEPSexcludesthefollowingitemsfromGAAPEPSfromcontinuingoperations:

•achargeof$0.19pershare,relatedtorestructuringandothercharges(recoveries),net;•achargeof$0.04pershare,relatedtoconsultingfees;•abenefitof$0.04pershare,relatingtoataxlawchange;and•abenefitof$0.01pershare,relatingtopensionsettlement.

Amountsexcludedmaynotbeadditiveduetorounding.TheexcludeditemsarediscussedintheManagement'sDiscussionandAnalysissectionofourannualreportonForm10-KfortheyearendedDecember31,2015.

IncrementalPerformanceLevels-Basedonourinternalbusinessplan,theCompensationCommitteesetthreeperformancetargetsonwhichtobaseCompanyperformance:

•athresholdlevel,atwhich25%oftargetpayoutopportunitycanbeearned;•atargetlevel,atwhich100%oftargetpayoutopportunitycanbeearned;and•amaximumlevel,atwhich200%oftargetpayoutopportunitycanbeearned.



2015Awards

TheCommitteeadjustedtheslopeofthepayoutgridforthe2015annualcashincentiveawardstorequirehighergrowthlevelstoachievesimilarpayoutsunderthe2015awards.Forexample,underthe2015grid,payoutwouldbeat62%forthesameresultachievedin2014.

Thefollowingchartsetsforththethreshold,targetandmaximumperformancetargetsforeachoftheperformancemetrics,andthepotentialpayoutbasedontheseresults:

Performance MetricThreshold

(25% Payout)

Target(100%

Payout) *

Maximum(200%

Payout)2015

Results

Payout as aPercent of

TargetOpportunity

ComparableEarningsPerShare(60%) $3.84to$4.80 $6.40 $7.10 $6.13 87.3%

OperatingRevenue(40%)(inmillions) $4,820to$4,934 $5,672 $5,956 $5,561 88.7%

Total(weighted) 87.9%

*Financialtargetsdisclosedinthissectionaredonesointhelimitedcontextofourannualcashincentiveawardsandarenotstatementsofmanagement'sexpectationsorestimatesofresultsorotherguidance.Wespecificallycautioninvestorsnottoapplythesestatementstoothercontexts.

In2015,comparableEPSincreased10%andoperatingrevenueincreased6%ascomparedto2014.

Whiletheinitialcalculationofthepayoutundertheannualcashincentiveawardsisdeterminedusingtheformuladescribedabove,theactualpayoutamountsawardedbytheCompensationCommitteemaybeincreasedordecreasedtoreflectindividualperformance.Beginningwiththeamountdeterminedasdescribedabove,theCompensationCommitteethendeterminesthefinalamountofeachexecutive’sannualincentivepayoutbasedontheCompensationCommittee’sconsiderationofhisorherindividualperformanceandcontributionsduringtheyear.Cashincentiveawardamountsareadjusteddownwardaswellasupwardbasedontheseperformancereviews.TheCommitteebelievesthatitisimportanttoretaintheabilitytorecognizeoutstandingindividualperformanceinawardingannualbonuses,aswellastoacknowledgecircumstanceswhereindividualperformanceimprovementsaresuggested.

PerformancecriteriaforallNEOsincludeperformancerelativetofurtheringtheCompany'sstrategicinitiatives,internalleadership,businessdevelopmentandotherbusinessgoals,riskmanagement,talentdevelopment,financialmanagement,andregulatoryandcomplianceresults.

TheamountspaidtotheCEOandotherNEOsunderthe2015annualcashincentiveawardsaresetforthinfootnote3totheSummaryCompensationTableonpage48ofthisproxystatement.

Long-Term IncentiveProgram (LTIP)

In2015,theCompensationCommitteeretainedtheoveralldesignofthe2014LTIP.

ŸTargetandMix.Indetermininglong-termincentive(LTI)values,theCommitteeusesatargetLTIvalue(350%ofthemidpointofthesalaryrangefortheCEOand175%ofthemidpointoftherelevantsalaryrangefortheotherNEOs'managementlevel)asareferencepointbutdoesnotbaseawardvaluessolelyonthisformulaiccalculation.TheCommitteeconsidersavarietyoffactorsincludingtheexecutive'soverallcompensationrelativetopeersandmarketbenchmarks,theexecutive'srole,responsibilitiesandperformance,his/herlong-termpotential,retentionriskandthevalueoftheexecutive'soutstandingequityawards.TheLTIcontinuestoconsistofstockoptions(40%),PBRSRs(40%)andPBCAs(20%)asfollows:



ŸStockOptions.Stockoptionsvestinthreeequalannualinstallmentsandexpiretenyearsfromthegrantdate.

ŸPerformanceMetricsforPBRSRsandPBCAs.TheCompanyusestwoperformancemetricsapplicabletoPBRSRsandPBCAs:50%isbasedonRyder'sTSRrelativetotheTSRofacustompeergroupdiscussedbelowand50%isbasedonRyder'sannualROCmeasuredagainstaROCtargetsetannuallyforeachyearofthethree-yearperformanceperiod.TheCommitteebelievesmeasuringperformancewithmultiplemetricsprovidesamorecompletepictureofCompanyperformanceandensuresmanagementisfocusedonoverallCompanyperformanceandnotjustperformanceinonearea.

ŸTSRPerformanceMetric:

•-----MeasurementofTSR.For2015,2014and2013,theTSRforRyderandeachpeercompanyintheCustomPeerGroupwascalculatedbasedontheaveragepercentagechangeintherelevantstockpricefromthelasttentradingdayspriortothebeginningoftherelevantperformanceperiodtothelasttentradingdayspriortotheendoftherelevantperformanceperiod,assumingreinvestmentofdividendsontheex-dividenddate.TheCompensationCommitteebelievesthattheuseofthisten-dayaveragingmethodologyatthebeginningandtheendofeachrespectiveperformanceperiodmitigatestheeffectofanytradingaberrationsthatmaynotbereflectiveoftheoverallperformanceofeitherRyderoranyofthepeercompanies.

•-----UseofCustomPeerGroup.TheCustomPeerGroupselectedbyRyderandusedforTSRcomparisoninthe2015awardsconsistsofthefifteencompaniesinRyder'sIndustryPeerGroupaswellasthefollowingthirteenadditionalcompaniesthatdonotcompetedirectlywithRyderbutaresubjecttosimilarmarketconditionsandeconomicrecoverycycles.During2015,inordertoreducethenumberoftruckingcompanies,weremovedthecompanywiththesmallestrevenue,HeartlandExpress,fromtheCustomPeerGroupasitsrevenueswerethemostsignificantlybelowRyder'srevenues.RyderalsoaddedthefollowingfourcompaniestodiversifytheCustomPeerGroup:NavistarInternationalCorp.,RushEnterprises,Inc.,PACCARInternationalandU-Haul.

1-15.ThecompaniesinRyder'sIndustryPeerGroup(seepage36)16.ArkansasBestCorporation17.ForwardAirCorporation18.KnightTransportation,Inc.19.Saia,Inc.20.SwiftTransportationCompany21.TALInternationalGroup,Inc.22.UniversalTruckloadServices,Inc.23.UTiWorldwideInc.24.WernerEnterprises,Inc.25.NavistarInternationalCorp.26.RushEnterprises,Inc.27.PACCARInternational28.U-Haul

During2015,Con-way,Inc.(acompanyinRyder'sIndustryPeerGroup)wasacquiredbyXPOLogistics,Inc.and,asaresult,wasnotaseparatepubliclytradedcompanyonthelasttentradingdaysof2015.



Priorto2013,PBRSRsandPBCAsweremeasuredbasedonRyder'sperformanceversustheentireS&P500CompositeIndex.TheCompensationCommitteebelievesthatmeasuringTSRagainstthisCustomPeerGroupasopposedtocompaniesintheS&P500CompositeIndexavoidscomparisonsofRyder'sperformanceagainstcompaniesthatmaynotbesubjecttothesamemarketconditionsandeconomicrecoverycyclesapplicabletoRyder.UseofaCustomPeerGroup,asopposedsolelytoRyder'sprimaryIndustryPeerGroupallowsforabettercomparisonofRyder'sperformanceinthemarketsinwhichwecompete,includingagainstadditionalcompaniesviewedaspeersbyourinvestors.Further,theCompensationCommitteebelievesthathavingalargersamplesizehelpsminimizeyear-over-yearvolatilityrelativetoourprimaryIndustryPeerGroup.

•-----TSRPerformancePeriods.Forthe50%portionofPBRSRsandPBCAsbasedonTSR,thethree-yearperformanceperiodremainssegmentedintothreeperformancecyclesofone,twoandthreeyears.Performanceawardsareearnedbasedonperformanceineachrespectivecycleasfollows:

•----1/3ofthePBRSRsandPBCAsareearnedbasedonperformanceresultsforYear1(January2015throughDecember2015)

•----1/3ofthePBRSRsandPBCAsareearnedbasedonperformanceresultsforYears1and2(January2015throughDecember2016)

•----1/3ofthePBRSRsandPBCAsareearnedbasedonperformanceresultsforYears1,2and3(January2015throughDecember2017)

ŸROCPerformanceMetric:

•-----UseofROC.ROCisdefinedasourtaxadjustedcomparableearningsfromcontinuingoperationsexcludinginterest,asapercentageofthesumofRyder'saverage(1)debt,(2)off-balancesheetdebtand(3)shareholdersequity.TheCompensationCommitteebelievesthatbasing50%ofperformanceonRyder'sROCensuresthatappropriatefocusismaintainedoncapitalefficiencyacrossalloftheCompany'sbusinesssegmentsthroughouttheperformanceperiod.Further,theCompensationCommitteebelievesthatsettingtheROCtargetonanannualbasisaddressestheinherentdifficultlyinsettingrealisticlong-termgoalsinavolatilebusinessenvironmentandhelpsensurethattheawardscontinuetoserveasameaningfulincentivethroughoutthefullthree-yearperformanceperiod.

•-----ROCPerformancePeriods.Forthe50%portionofPBRSRsandPBCAsbasedonROC,thethree-yearperformanceperiodissegmentedintothreeone-yearperformancecycles.Performanceawardsareearnedbasedonperformanceineachrespectivecycleasfollows:


•----1/3ofthePBRSRsandPBCAsareearnedbasedonperformanceresultsforYear2(January2016throughDecember2016)---




ŸIncrementalPerformanceforallPBRSRsandPBCAs.Forthe2015performancecycle,thefollowingthreeperformancelevelsapply:•-----athresholdlevel,atwhich30%oftheawardforeachoftheTSRandROCperformancemetricswillbe

earned,respectively,ifRyder'sTSRrankstwenty-secondamongtheCustomPeerGrouportheapplicableROCthresholdperformanceismet;

•-----atargetlevel,atwhich100%oftheawardforeachoftheTSRandROCperformancemetricswillbeearned,respectively,ifRyder'sTSRranksfifteenthamongtheCustomPeerGrouportheapplicableROCtargetperformanceismet;and

•-----amaximumlevel,atwhich125%oftheawardforeachoftheTSRandROCperformancemetricswillbeearned,respectively,ifRyder'sTSRranksinthetoptenamongtheCustomPeerGrouportheapplicableROCmaximumperformanceismet.

Pursuanttothetermsoftheawards,asaresultoftheacquisitionofCon-way,Inc.byXPOLogistics,Inc.,for2015,theCommitteeadjustedtheTSRaccrualpercentageaccordinglyfortherelevantperformancecycles.

ŸAwardsEarnedProportionatelyBetweenIncrementalPerformanceLevels.PBRSRsandPBCAswillcontinuetobeearnedproportionatelyfromthethresholdperformanceleveltothetargetperformancelevelandfromthetargetperformanceleveltothemaximumperformancelevel.TheCompensationCommitteebelievesthatallowingexecutivestoearnLTIawardsonanincrementalbasisismoreconsistentwithcurrentmarketpractice,reducesvolatilityinyear-over-yearawardopportunities,andmoreeffectivelymatchesperformance,fundingandawardpayments.Further,theCompensationCommitteebelievesthatallowingexecutivestoearnupto125%oftheirrespectiveawardopportunitiesfurtherencouragesperformanceinlinewithshareholderinterests.

ŸVestingofPBRSRsandPBCAs.ForboththeTSRandROCperformancemetrics,allawardsthathavebeenearnedattheendofeachperformancecyclewillvestandbepaidonlyattheendoftheentirethree-yearperiod,subjecttoCompensationCommitteeapproval.TheCompensationCommitteebelievesthatthisfeaturefurtherencouragesretentionsinceexecutivesmustremainemployedbytheCompanyattheconclusionofthethree-yearperformanceperiodtoreceiveawardsearnedinpriorperformancecycles.Further,thisapproachincorporatesandrewardsshort-,mid-andlong-termperformanceofRyder'sTSRrelativetothecustompeergroup.

ŸNoDividendEquivalentsonUnvestedPBRSRShares.DividendequivalentswillaccrueandbepaidonlywithrespecttoPBRSRsthatactuallyvestattheendofthethree-yearperformanceperiod.

2015LTIPAwardsThevalueoftheLTIPawardsgrantedtoMr.SanchezandtheotherNEOsin2015andtheamountofstockoptions,PBRSRsandPBCAsintowhichsuchawardswereconvertedareasfollows:

NEO LTI Value ($) Stock Options (#)* PBRSRs (#) PBCAs ($)RobertE.Sanchez $3,850,000 83,425 16,470 769,931ArtA.Garcia $900,000 19,500 3,850 180,032DennisC.Cooke $1,000,000 21,670 4,280 199,766GregoryF.Greene $800,000 17,335 3,420 160,206RobertD.Fatovic $800,000 17,335 3,420 160,206

*StockoptionswereissuedattheclosingpriceofourcommonstockasreportedbytheNYSEonFebruary12,2015.

PerformanceofOutstandingLTIPAwards

Seethe"Long-TermIncentive"sectionandchartonpage31ofthisCompensationDiscussionandAnalysisforasummaryofLTIPawardperformancethrough2015.



Retirement and WelfareBenefits andPerquisites

RetirementBenefits-TheCompanymaintainsaqualifiedpensionplanandapensionbenefitrestorationplan(pensionrestorationplan)pursuanttowhichanyNEOthathadjoinedtheCompanypriortoJanuary1,2007wasabletoparticipate.TheseplanswerefrozenforallparticipantsasofDecember31,2007.AllNEOsarealsoeligibletoparticipateinthefollowingCompany-wideretirementplans:401(k)savingsplananddeferredcompensationplan.Theretirementanddeferredcompensationplansaredescribedundertheheadings“PensionBenefits”and“2015NonqualifiedDeferredCompensation”beginningonpage51ofthisproxystatement.

HealthandWelfareBenefits-During2015,ourNEOswereeligibletoparticipateinthefollowingstandardwelfarebenefitplans:medical,dentalandprescriptioncoverage,company-paidshort-andlong-termdisabilityinsurance,andpaidvacationandholidays.Inaddition,theNEOsreceivedthefollowingadditionalwelfarebenefitswhicharenotavailabletoallsalariedemployees:executivetermlifeinsurancecoverageequaltothreetimestheexecutive'scurrentbasesalary(limitedtoanaggregateof$3millioninlifeinsurancecoverageunderthepolicy)inlieuofthestandardcompany-paidtermlifeinsuranceandindividualsupplementallong-termdisabilityinsurancewhichprovidesuptoapproximately$20,000permonth(subjecttoage,earnings,healthandstateofresidencelimitations)inadditionalcoverageoverthe$8,000permonthmaximumprovidedunderourgrouplong-termdisabilityplan.Webelievethattheseadditionalbenefitsarereasonableandinlinewithenhancedbenefitsprovidedtoothersimilarly-situatedexecutives.

Perquisites- WeprovidealimitednumberofperquisitestoourNEOsthatwebelievearerelatedtotheperformanceoftheirresponsibilities.Annually,theCompensationCommitteereviewsthetypesandaggregatevaluesofRyder' sperquisiteprogram.Specifically,in2015,eachNEOreceivedthefollowingperquisites:

Ÿ$9,600peryearasanannualcarallowance;Ÿ$6,800peryear($11,800forourCEO)topayforcommunity,businessorsocialactivitiesthatmayberelated

totheperformanceoftheexecutive' sduties,butwhicharenototherwiseeligibleforreimbursementasdirectbusinessexpenses;however,thereisnorequirementthattheexecutiveusetheperquisiteforthesepurposes;

Ÿupto$15,000peryearforfinancialplanningandtaxpreparationservices;andŸupto$5,000peryearfortheinstallationofaneworupgradedsecuritysystemintheexecutive' shomeand

anyrelatedmonthlymonitoringfees.

AllperquisitesarefullytaxabletotheNEOsandarenotsubjecttoanytaxgross-ups.



Severance and Change of Control Agreements

AllofourNEOsarecurrentlyeligibleforcertainseverancebenefitsunderindividualseveranceagreements.Thesearrangementsaredescribedinmoredetailundertheheading“ PotentialPaymentsUponTerminationorChangeofControl” onpage54ofthisproxystatement.Severancearrangementsareintendedtoeasetheconsequencesofanunexpectedterminationofemployment.ThesearrangementsarealsodesignedtopreventourNEOsfromseekingemploymentwithourcompetitorsafterterminationorsolicitingouremployeesorcustomersduringtherestrictedperiod.Thechangeofcontrolarrangementsaredesignedtopreserveproductivity,avoiddisruptionandpreventattritionduringaperiodwhenweare,orarerumoredtobe,involvedinachangeofcontroltransaction.Thechangeofcontrolseverancearrangementsalsomotivateexecutivestopursuetransactionsthatareinourshareholders' bestinterestsdespitethepotentialnegativeimpactofthetransactionontheirfutureemployment.

Equity Granting Practices

TheCompensationCommitteehasawrittenPolicyonEquityGrantingPractices,whichprovidesthatgrantsofequityawardsmustbeapprovedbytheCompensationCommittee(orinthecaseoftheCEO,theindependentdirectorsactingasagroup)ataBoardorCompensationCommitteemeetingandnotbywrittenconsent.Inthecaseofoff-cyclegrantstonewhiresandexistingemployees(otherthanexecutiveofficersandotherdirectreportstoourCEO),equitygrantsmaybeapprovedbytheChairoftheCompensationCommittee.ThegrantdateofanyequityawardshallgenerallybeonorafterthedateoftheBoardorCompensationCommitteemeetingatwhichtheawardwasapproved,providedthatthegrantdateforanewhirewillbethelaterof(1) thedatetheawardwasapprovedbytheBoard,CompensationCommitteeorCompensationCommitteeChair,asapplicableor(2) thedateonwhichthenewhirecommencesemployment.

Wedonottimeourequityawardgrantsrelativetothereleaseofmaterialnon-publicinformation.ThePolicyallowstheCompensationCommitteetodesignateagrantdatefortime-basedrestrictedstockrightsthatisaftertheCompensationCommitteeapprovaldateinordertopreventtherightsfromvestingatatimewhentheexecutiveispreventedfromtradingstockunderRyder' sInsiderTradingPolicy,therebyavoidingpotentialnegativetaximplicationstotheexecutive.

Tax Implications

DeductibilityofExecutiveCompensation

Section 162(m)oftheInternalRevenueCodeof1986,asamended,precludespubliccompaniesfromtakingafederalincometaxdeductionforcompensationinexcessof$1millionpaidtoindividualNEOsunlesscertainspecificanddetailedcriteriaaremet,includingtherequirementthatcompensationover$1millionbe“ performancebased” andunderaplanapprovedbyourshareholders.

Aspartofitsreviewofourexecutivecompensationarrangements,theCompensationCommitteeiscognizantofthetaximplicationsofSection 162(m).Performanceawardsgrantedunderourcompensationprogramareintendedtoconstitute"performancebased"compensationunderSection162(m).However,theCompensationCommitteebelievesthatpreservingitsflexibilityinawardingcompensationisintheCompany' sbestinterestsandthatofourshareholdersandmaydetermine,inlightofallapplicablecircumstances,toawardcompensationinamannerthatwillnotpreservethedeductibilityofsuchcompensationunderSection 162(m).

TheCompanybelievesthatallannualcashincentiveawards,stockoptions,PBRSRsandPBCAsgrantedin2015meetthe“ performancebased”exceptionfordeductibilityunderSection 162(m).

NonqualifiedDeferredCompensation

UnderSection 409AoftheInternalRevenueCode,amountsdeferredbyaNEOunderanonqualifieddeferredcompensationplan(includingcertainseveranceplans)maybeincludedingrossincomewhenearnedandsubjecttoa20%additionalfederaltax,unlesstheplancomplieswithcertainrequirementsrelatedtothetimingofdeferralelectionanddistributiondecisions.WeadministerourplansconsistentwithSection 409ArequirementsandhaveamendedplandocumentstocomplywithSection 409Arequirements.


•

•

•••

Compensation Discussion and Analysis |

Compensation Committee Report on Executive Compensation

Compensation Risks

CookwasengagedbytheCompensationCommitteetoassistwiththeassessmentofriskarisingfromtheCompany’scompensationprogramsandpolicies.Theassessmentcoveredeachmaterialelementofexecutiveandnon-executiveemployeecompensation.BasedonCook'sassessment,theCompanyconcludedthatthesepoliciesandpracticesdonotcreateriskthatisreasonablylikelytohaveamaterialadverseeffectonRyder.Morespecifically,thisconclusionwasbasedonthefollowingconsiderations:

Risk Mitigating Policies/PracticesPayMix Compensationmixofbasesalary,short-termandlong-termincentivesprovidescompensation

opportunitiesmeasuredbyavarietyoftimehorizonstobalanceournear-termandlong-termstrategicgoals.

PerformanceMetrics Avarietyofdistinctperformancemetricsareusedinboththeshort-termandlong-termincentiveplans.This“portfolio”approachtoperformancemetricsencouragesfocusonsustainedandholisticoverallcompanyperformance.

PerformanceGoals Goalsareapprovedbyourindependentdirectorsandtakeintoaccountourhistoricalperformance,currentstrategicinitiativesandtheexpectedmacroeconomicenvironment.Inaddition,short-termandlong-termincentivecompensationprogramsaredesignedwithpayoutopportunitiesandleveragethatsupportourpayforperformancephilosophy.

EquityIncentives Equityincentiveprogramsandstockownershipguidelinesaredesignedtoalignmanagementandshareholderinterestsbyprovidingvehiclesforexecutiveofficerstoaccumulateandmaintainownershippositionsinthecompany.

RiskMitigationPolicies Weincorporateseveralriskmitigationpoliciesintoourofficercompensationprogram,including:

TheCompensationCommittee’sabilitytouse“negativediscretion”todetermineappropriatepayouts;

Caponthemaximumpayoutsunderourannualcashincentiveawards,PBRSRsandPBCAstolimitthepotentialforexcessiverisktaking;

Anti-hedgingandanti-pledgingpolicies;Writtenclawbackpolicyforfinancialrestatementsresultingfromexecutivemisconduct;andWrittenpolicyonequitygranttimingpractices.

COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION

ThefollowingreportoftheCompensationCommitteeshallnotbedeemedtobe“solicitingmaterial”ortobe“filed”withtheSECnorshallthisinformationbeincorporatedbyreferenceintoanyfuturefilingundertheSecuritiesActof1933ortheSecuritiesExchangeActof1934,eachasamended,excepttotheextentthatRyderspecificallyincorporatesitbyreferenceintoafiling.

OurCommitteehasreviewedanddiscussedtheCompensationDiscussionandAnalysiscontainedinthisproxystatementwithmanagement.Basedonourreviewanddiscussions,wehaverecommendedtotheBoardthattheCompensationDiscussionandAnalysisbeincludedinthisproxystatement.

SubmittedbytheCompensationCommitteeoftheBoard.

L.PatrickHassey(Chair) MichaelF.HiltonJohnM.Berra E.FollinSmithRobertJ.Eck


Executive Compensation

EXECUTIVE COMPENSATION

Thefollowingtablesetsforththe2015,2014and2013compensationfor:

• ourChiefExecutiveOfficerduring2015;• ourChiefFinancialOfficerduring2015;and• thethreeothermosthighlycompensatedexecutiveofficersservingasexecutiveofficersattheendof2015(basedontotalcompensation

(asreflectedinthetablebelow)excludingtheamountsinthe“ChangeinPensionValueandNonqualifiedDeferredCompensationEarnings”column).

WerefertotheexecutiveofficersincludedintheSummaryCompensationTableasournamedexecutiveofficers.AdetaileddescriptionoftheplansandprogramsunderwhichourNEOsreceivedthefollowingcompensationcanbefoundintheCompensationDiscussionandAnalysisbeginningonpage28ofthisproxystatement.

Summary Compensation Table

Name and Principal Position Year Salary($)

StockAwards

($) 1 OptionAwards

($) 2

Non-EquityIncentive PlanCompensation

($) 3

Change inPension

Value andNonqualified

DeferredCompensation

Earnings($) 4

All OtherCompensation

($) 5 Total($)

RobertE.Sanchez

ChairandChiefExecutiveOfficer

2015 768,825 1,628,493 1,539,956 1,520,137 0 183,526 5,640,937

2014 753,750 1,095,921 1,399,963 2,126,392 159,118 119,108 5,654,252

2013 732,917 780,871 1,249,969 1,512,709 0 86,121 4,362,587

ArtA.Garcia

ExecutiveVicePresidentandChiefFinancialOfficer

2015 440,800 372,679 359,954 424,426 0 80,825 1,678,684

2014 432,150 250,984 330,003 632,287 104,008 73,162 1,822,594

2013 422,500 162,356 259,999 455,687 0 70,854 1,371,396

DennisC.Cooke

President,GlobalFleetManagementSolutions

2015 533,050 424,134 400,010 600,559 0 95,801 2,053,554

2014 522,600 1,198,532 384,029 901,333 0 82,678 3,089,172

2013 505,000 194,899 311,985 659,794 0 64,080 1,735,758

GregoryF.Greene

ExecutiveVicePresident,ChiefAdministrativeOfficer

2015

384,425

318,593

319,990

365,855

0

453,637

1,840,036

RobertD.Fatovic

ExecutiveVicePresident,ChiefLegalOfficerandCorporateSecretary

2015 384,425 318,593 319,990 365,855 0 88,097 1,474,496

2014 375,000 192,279 243,980 541,902 136,381 78,763 1,568,305

2013 353,250 139,993 223,966 382,697 0 77,065 1,176,971

1 For2015,2014,and2013,theamountincludesperformance-basedrestrictedstockrights(PBRSRs)grantedpursuanttoourlong-termincentiveprogram(LTIP)asdescribedonpages40-43ofthisproxystatementintheCompensationDiscussionandAnalysissection.Theawardsarebased50%onTotalShareholderReturn(TSR)and50%onadjustedreturnoncapital(ROC).ThetargetsforROCaresetannually;thereforeonlythePBRSRsbasedonROCfortheone-year2015performancecycle(foralloutstandingperformanceperiods)areprobableandincludedinthetablefor2015,onlythePBRSRsbasedonROCfortheone-year2014performancecycleareprobableandincludedinthetablefor2014,andonlythePBRSRsbasedonROCfortheone-year2013performancecycleareprobableandincludedinthetablefor2013.ThevalueforthePBRSRsbasedonROCfortheone-year2016and2017performancecycleswillbeincludedinthetablewhentherelevanttargetshavebeenset.ForMr.Cooke,the2014amountincludesPBRSRsgrantedaspartoftheLTIPaswellasthefairmarketvalueof10,000time-basedrestrictedstockrights(TBRSRs)grantedtoMr.Cooke(withagrantdatefairmarketvalueof$904,500).

Thegrantdatefairvalueofstockawardsisdeterminedpursuanttotheaccountingguidanceforstockcompensationandrepresentsthetotalamountthatwewillexpenseinourfinancialstatementsovertherelevantvestingperiod.Consequently,theamountsinthiscolumnmaynotreflecttheactualvaluethatwillberecognizedbytheNEO.Forinformationregardingtheassumptionsmadeincalculatingtheamountsreflectedinthiscolumnandthemaximumpayoutfortheaward,seenote22toourauditedconsolidatedfinancialstatements,includedinourannualreportonForm10-KfortheyearendedDecember31,2015.DividendequivalentswillaccrueonallgrantsofPBRSRsandTBRSRsandwillbepaidonlyonthosethatvest.

2 OptionawardsconsistofstockoptionsgrantedpursuanttoourLTIPasdescribedonpages40-43ofthisproxystatementunderCompensationDiscussionandAnalysis.Thegrantdatefairvalueofoptionawardsisdeterminedpursuanttotheaccountingguidanceforstockcompensationandrepresentsthetotalamountthatwewillexpenseinourfinancialstatementsovertherelevantvestingperiod.Consequently,theamountsinthiscolumnmaynotreflecttheactualvaluethatwillberecognizedbytheNEO.Forinformationregardingtheassumptionsmadeincalculatingtheamountsreflectedinthiscolumn,seenote22toourauditedconsolidatedfinancialstatements,includedinourannualreportonForm10-KfortheyearendedDecember31,2015.



3 For2015,theamountsinthiscolumnrepresent(1)amountsearnedunderthe2015annualcashincentiveawards(ACIAs)and(2)theamountoftheperformance-basedcashawards(PBCAs)earnedin2015foralloutstandingperformancecycleswhetherornotvestedandpaid.TheACIAsearnedwerepaidFebruary2016andthePBCAsearnedwillvestandbepaidaftertheendoftherespectivethree-yearperformanceperiodiftheexecutivecontinuestobeemployedbytheCompany.Followingisabreakdownoftheamountsearnedfor2015:

Name Year ACIAs($) PBCAs($)

RobertE.Sanchez 2015 1,013,691 506,446

ArtA.Garcia 2015 309,969 114,457

DennisC.Cooke 2015 468,549 132,010

GregoryF.Greene 2015 270,326 95,529

RobertD.Fatovic 2015 270,326 95,529

4 Theamountsinthiscolumnincludeanestimateofthechangeintheactuarialpresentvalueoftheaccruedpensionbenefits(underbothourpensionandpensionrestorationplans)fortheNEOfortherespectiveyear.Assumptionsusedtocalculatetheseamountsaredescribedunder“PensionBenefits”beginningonpage51.NoNEOrealizedabove-marketorpreferentialearningsondeferredcompensation.

5 AllOtherCompensationfor2015includesthefollowingpaymentsoraccrualsforeachNEO:

Year

EmployerContributions

to the401(k) Plan($) (a)


to theDeferred

CompensationPlan($) (a)

Premiums PaidUnder the

SupplementalLong-TermDisability

Insurance Plan($)

Premiums Paid for

Executive LifeInsurance($)

Charitable Awards

Programs ($) (b) Perquisites($) (c) Retention Award($) (d)

RobertE.Sanchez 2015 14,575 132,525 9,883 2,813 0 23,730 ArtA.Garcia 2015 14,575 35,983 11,254 1,613 1,000 16,400 DennisC.Cooke 2015 14,575 54,654 6,191 1,950 0 18,431 GregoryF.Greene 2015 14,575 30,019 7,066 1,406 0 25,571 375,000RobertD.Fatovic 2015 14,575 30,965 8,949 1,406 0 32,202

(a) Asdescribedunder“PensionBenefits”,Messrs.Sanchez,Garcia,Cooke,GreeneandFatovicarenotaccruingbenefitsunderourpensionplanandinsteadreceiveemployercontributionsintotheir401(k)anddeferredcompensationaccounts.

(b) Mr.GarciaiseligibletoparticipateinourMatchingGiftstoEducationProgramavailabletoallemployees,whichislimitedtoamaximumbenefitof$1,000peryear.

(c) Includesacarallowance,afinancialplanningandtaxpreparationallowance,anannualperquisiteallowanceandamountspaidinconnectionwiththeexecutive’shomesecuritysystem.Thevalueinthiscolumnreflectstheaggregateincrementalcosttousofprovidingeachperquisitetotheexecutive.

(d) InthecaseofMr.Greene,adeferredcashawardwasgrantedinFebruary2012,whichvestedinFebruary2015.

2015 Grants of Plan-Based Awards

Thefollowingtablereflectsthefourtypesofplan-basedawardsgrantedtoourNEOsin2015.Thefirstrowrepresentstherangeofpayoutsunderthe2015annualcashincentiveawardsgrantedunderthe2012EquityandIncentiveCompensationPlan.ThesecondrowrepresentstherangeofsharesofcommonstocktobeissueduponvestingofthePBRSRsgrantedaspartofourLTIPin2015underthe2012Plan.ThethirdrowrepresentstherangeofpayoutsunderthePBCAsgrantedaspartofourLTIPin2015underthe2012Plan.ThefourthrowrepresentsstockoptionsgrantedaspartofourLTIPduring2015underthe2012Plan.



NameGrantType

GrantDate

Estimated Future PayoutsUnder Non-Equity

Incentive Plan Awards 1

Estimated Future PayoutsUnder Equity

Incentive Plan Awards 2All Other

StockAwards:

Number ofShares of

Stock or Units(#)

All OtherOption

Awards:Number ofSecuritiesUnderlying

Options(#) 3

Exercise orBase Priceof OptionAwards($/Sh) 4

Grant DateFair Valueof Stock

andOptionAwards

($) 5Threshold

($)Target

($)Maximum

($)Threshold

#Target

#Maximum

#RobertE.Sanchez ACIA 2/12/15 288,321 1,153,285 3,000,000

PBRSR 2/12/15 4,456 17,826 22,282 1,628,493

PBCA 2/12/15 192,483 769,931 962,414

Options 2/12/15 83,425 93.51 1,539,956ArtA.Garcia

ACIA 2/12/15 88,164 352,654 900,000

PBRSR 2/12/15 1,020 4,081 5,101 372,679

PBCA 2/12/15 45,008 180,032 225,040

Options 2/12/15 19,500 93.51 359,954DennisC.Cooke

ACIA 2/12/15 133,268 533,072 1,500,000

PBRSR 2/12/15 1,161 4,643 5,803 424,134

PBCA 2/12/15 49,942 199,766 249,708

Options 2/12/15 21,670 93.51 400,010GregoryF.Greene

ACIA 2/12/15 76,888 307,553 750,000

PBRSR 2/12/15 873 3,491 4,364 318,593

PBCA 2/12/15 40,052 160,206 200,258

Options 2/12/15 17,335 93.51 319,990RobertD.Fatovic

ACIA 2/12/15 76,888 307,553 750,000

PBRSR 2/12/15 873 3,491 4,364 318,593

PBCA 2/12/15 40,052 160,206 200,258

Options 2/12/15 17,335 93.51 319,990

1 FortheACIAs,theamountsreflecttherangeofpotentialpayoutsatthreshold,targetormaximumpayoutlevelsbasedonCompanyperformance.TheCommitteehasdiscretiontoadjustamountsbasedonindividualperformancebutinnoeventtoexceedthemaximumpayoutamount.The2015ACIAsarediscussedinfurtherdetailundertheheading“2015AnnualCashIncentiveAwards”intheCompensationDiscussionandAnalysis.ForthePBCAs,theamountsrepresenttherangeofpotentialpayoutsunderPBCAsgrantedin2015underourLTIP.ThePBCAsbasedonTSRaresegmentedintothreeperformancecyclesofone,twoandthreeyears,andthePBCAsbasedonROCaresegmentedintothreeone-yearperformancecycles.PBCAswillbeearnedbasedonperformanceineachrespectiveannualperformancecycle.Allawardsthathavebeenearnedattheendofeachperformancecyclewillvestattheendofthethree-yearperformanceperiod,subjecttoCompensationCommitteeapproval.Seefurtherdiscussionundertheheading“Long-TermIncentiveProgram”intheCompensationDiscussionandAnalysis.

2 ThesecolumnsreflecttherangeofpotentialPBRSRsthatcanbeearnedunderour2015LTIP.ThePBRSRsbasedonTSRaresegmentedintothreeperformancecyclesofone,twoandthreeyears,andthePBRSRsbasedonROCaresegmentedintothreeone-yearperformancecycles.PBRSRswillbeearnedbasedonperformanceineachrespectiveannualperformancecycle.Allawardsthathavebeenearnedattheendofeachperformancecyclewillvestattheendofthethree-yearperformanceperiod,subjecttoCompensationCommitteeapproval.Seefurtherdiscussionundertheheading“Long-TermIncentiveProgram”intheCompensationDiscussionandAnalysis.

3 Representsstockoptionsgrantedunderour2015LTIP.ThestockoptionsforalloftheNEOsvestinthreeequalannualinstallmentsbeginningonFebruary12,2016.Foramoredetaileddescriptionofourstockoptionsandstockoptiongrantingpolicies,seethesectionsentitled“Long-TermIncentiveProgram”and“EquityGrantingPractices”intheCompensationDiscussionandAnalysis.

4 Theexercisepriceofthestockoptionsgrantedin2015wassetastheclosingpriceofourcommonstockonthegrantdate,asreportedbytheNYSE,asrequiredunderthe2012EquityandIncentiveCompensationPlan.

5 Thegrantdatefairvalueofthestockandoptionawardsisdeterminedpursuanttotheaccountingguidanceforstockcompensationandrepresentsthetotalamountthatwewillexpenseinourfinancialstatementsovertherelevantvestingperiod.Forinformationregardingtheassumptionsmadeincalculatingtheamountsreflectedinthiscolumn,seenote22toourauditedconsolidatedfinancialstatements,includedinourannualreportonForm10-KfortheyearendedDecember31,2015.



Outstanding Equity Awards as of December 31, 2015

Options Awards Stock Awards

Name

Number ofSecuritiesUnderlying

UnexercisedOptions

(#)

Number ofSecuritiesUnderlying

UnexercisedOptions

(#)

OptionExercise

Price($)

OptionExpiration

Date

Number ofShares orUnits of

Stock ThatHave NotVested

(#)

Market Value ofShares orUnits of

Stock ThatHave NotVested (1)

($)

Equity IncentivePlan Awards:

Number ofUnearned

Shares, Unitsor Other

Rights ThatHave NotVested

(#)

Equity IncentivePlan Awards:

Market orPayout Valueof UnearnedShares, Units

or OtherRights That

Have NotVested (1)

($)

Exercisable Unexercisable RobertE.Sanchez

37,550 0 32.99 02/10/2017

26,275 0 49.39 02/11/2018

27,830 0 53.63 02/10/2019

59,550 29,775(2) 58.21 02/07/2023

31,139 62,276(3) 71.43 02/06/2024

0 83,425(4) 93.51 02/11/2025 21,535(5) 1,223,834 0 0 11,881(6) 675,197 6,534(8) 371,327 4,083(7) 232,037 10,980(9) 623,993

ArtA.Garcia

6,825 0 53.63 02/10/2019

12,387 6,193(2) 58.21 02/07/2023

7,340 14,680(3) 71.43 02/06/2024

0 19,500(4) 93.51 02/11/2025 4,475(5) 254,314 0 0 2,800(6) 159,124 1,540(8) 87,518 954(7) 54,216 2,566(9) 145,826

DennisC.Cooke

7,465 0 53.63 02/10/2019

7,431 7,432(2) 58.21 02/07/2023

8,542 17,083(3) 71.43 02/06/2024

0 21,670(4) 93.51 02/11/2025 5,372(5) 305,291 0 0 3,257(6) 185,095 1,792(8) 101,839 10,000(10) 568,300 1,059(7) 60,183 2,854(9) 162,193

GregoryF.Greene

0 5,335(2) 58.21 02/07/2023

0 10,853(3) 71.43 02/06/2024

0 17,335(4) 93.51 02/11/2025 3,859(5) 219,307 0 0 2,067(6) 117,468 1,139(8) 64,729 847(7) 48,135 2,280(9) 129,572

RobertD.Fatovic

15,000 0 49.39 02/11/2018

17,755 0 53.63 02/10/2019

10,670 5,335(2) 58.21 02/07/2023

5,427 10,853(3) 71.43 02/06/2024

0 17,335(4) 93.51 02/11/2025 3,859(5) 219,307 0 0 2,067(6) 117,468 1,139(8) 64,729 847(7) 48,135 2,280(9) 129,572

(1) Basedonastockpriceof$56.83,whichwastheclosingmarketpriceofourcommonstockonDecember31,2015.

(2) ThesestockoptionsvestonFebruary8,2016.

(3) ThesestockoptionsvestintwoequalannualinstallmentsonFebruary7,2016andFebruary7,2017.


(4) ThesestockoptionsvestinthreeequalannualinstallmentsonFebruary12,2016,February12,2017andFebruary12,2018.

(5) RepresentsPBRSRsthatweregrantedinFebruary2013andhavebeenearnedfortheone-yearperiodendingDecember31,2013,thetwo-yearperiodendingDecember31,2014,andthethree-yearperiodendingDecember31,2015.ThesePBRSRsvestedinFebruary2016uponCompensationCommitteeapproval.

(6) RepresentsPBRSRsthatweregrantedinFebruary2014.ThesePBRSRshavebeenearnedfortheone-yearperiodendingDecember31,2014andthetwo-yearperiodendingDecember31,2015,andwillvestandbepaidiftheexecutiveremainsemployedattheconclusionofthethree-yearperformancecycle(January1,2014throughDecember31,2016),subjecttoCompensationCommitteeapproval.

(7) RepresentsPBRSRsthatweregrantedinFebruary2015.ThesePBRSRshavebeenearnedfortheone-yearperiodendingDecember31,2015,andwillvestandbepaidiftheexecutiveremainsemployedattheconclusionofthethree-yearperformancecycle(January1,2015throughDecember31,2017),subjecttoCompensationCommitteeapproval.

(8) RepresentsPBRSRsthatweregrantedinFebruary2014andwillvestiftheapplicableTSRorROCthresholdismetforthethree-yearperiodendingDecember31,2016,inaccordancewiththetermsofthelong-termincentiveprogram.

(9) RepresentsPBRSRsthatweregrantedinFebruary2015andwillvestiftheapplicableTSRorROCthresholdismetforthethree-yearperiodendingDecember31,2017,inaccordancewiththetermsofthelong-termincentiveprogram.

(10) TheseTBRSRsvestonJuly22,2017.

2015 Option Exercises and Stock Vested

Option Awards Stock Awards 1

Number of Shares

Acquired on Exercise Value Realized

on Exercise Number of Shares

Acquired on Vesting Value Realized

on Vesting

Name (#) ($) 2 (#) 3 ($) 4

(A) (B) (C)RobertE.Sanchez 2015 17,550 1,126,710 2,972 277,912ArtA.Garcia 2015 6,825 274,979 2,184 204,226DennisC.Cooke 2015 0 0 2,391 223,582GregoryF.Greene 2015 16,680 609,030 11,893 1,083,314RobertD.Fatovic 2015 0 0 11,893 1,083,314

1 ThesecolumnsreflectTBRSRsandPBRSRspreviouslyawardedtotheNEOsthatvestedduring2015.

2 CalculatedbasedonthedifferencebetweentheclosingmarketpriceofRydercommonstockonthedateofexerciseandtheexercisepriceoftheoption.

3 Oftheseamounts,shareswerewithheldbyRydertocovertaxwithholdingobligationsasfollows:Mr.Sanchez,103shares;Mr.Garcia,99shares;Mr.Cooke,101shares;Mr.Greene,3,621shares,andMr.Fatovic,3,063shares.

4 CalculatedbasedontheclosingmarketpriceofRydercommonstockonthevestingdate.

Pension Benefits

WemaintainalegacyRetirementPlan(pensionplan)andBenefitRestorationPlan(pensionrestorationplan)forregularfull-timeemployeesotherthanthoseemployeeswhoarecoveredbyplansadministeredbylaborunionsandcertainothernon-exemptemployees.EffectiveDecember31,2007,thepensionandpensionrestorationplanswerefrozenforallplanparticipantsotherthanthosewhowereeligibletocontinuetoparticipateandelectedtodoso.Asaresult,forthoseemployeeswhowerenoteligibletocontinuetoparticipate,benefitsceasedaccruingunderthedefinedbenefitplansafterDecember31,2007.AllretirementbenefitsearnedasofDecember31,2007arefullypreserved,continuetobesubjecttotheapplicablevestingschedule,andwillbepaidinaccordancewiththeplansandapplicablelegalrequirements.NoemployeeshiredorrehiredafterJanuary1,2007areeligibletoparticipateinthepensionorpensionrestorationplans.

EffectiveJanuary1,2008,employeeswhowerenolongereligibletocontinuetoearnbenefitsinthepensionplanwereautomaticallytransitionedtoanenhanced401(k)planandanon-electivedeferredcompensationplan(ifeligible)fortheirretirementbenefits.Ourexisting401(k)planwasenhancedforthoseemployeeswhoarenolongereligibletoearnpensionbenefitstoprovidefor(1)aCompanycontributionequalto3%ofeligiblepay,subjecttoavestingschedule,evenifemployeesdonotmakecontributionstotheplanand(2)a50%Companymatchofemployeecontributionsofupto5%ofeligiblepay,subjectineachcasetoIRSlimits.EffectiveonJanuary1,2016,



the401(k)Planwasamendedtoprovidethatnewhireswillreceivea50%Companymatchofemployeecontributionsofupto6%ofeligiblepaybutwillnolongerreceivethe3%fixedCompanycontributions(thatwereprovidedeveniftheydonotmakecontributions).Inaddition,the3%fixedCompanycontributionsforeligibleemployeeswillnowbefundedattheendofeachcalendaryear.EffectiveDecember31,2007,ourdeferredcompensationplanwasamendedtoprovideforCompanycontributionsinexcessoftheapplicableIRSlimitationsunderthe401(k)plan.EmployeeseligibleforRydercontributionenhancementsinthe401(k)planarealsoeligiblefortheenhancementsinthedeferredcompensationplanprovidedtheymeettheeligibilityrequirementsunderthedeferredcompensationplan.EligibleemployeesmustelecttoparticipateinthedeferredcompensationplantobeeligibleforanyexcessCompanymatch.

BasedontheirageandtenurewithRyder,Mr.Sanchez,Mr.Garcia,Mr.GreeneandMr.Fatovicdidnotmeettheeligibilityrequirementstocontinueaccruingbenefitsunderthepensionandpensionrestorationplans,and,assuch,theirpensionbenefitswerefrozenandeachisnowentitledtotheenhancedbenefitsunderthe401(k)plananddeferredcompensationplans.Mr.CookewashiredafterJanuary1,2007and,therefore,wasnoteligibletoparticipateinthepensionorpensionrestorationplans.Mr.Cookeisentitledtotheenhancedbenefitsunderthe401(k)plananddeferredcompensationplans.

Benefitspayableunderthepensionplanarebasedonanemployee’scareerearningswithusandoursubsidiaries.Atthenormalretirementageof65,aparticipantisentitledtoamonthlypensionbenefitpayableforlife.Theannualpensionbenefit,whenpaidintheformofalifeannuitywithnosurvivor’sbenefits,isgenerallyequaltothesumof1.45%ofthefirst$15,600oftotalcompensationreceivedduringeachcalendaryearthattheemployeeiseligibletoparticipateintheplan,plus1.85%oftheexcessover$15,600.Theonlyelementsofcompensationconsideredinapplyingthepaymentandbenefitsformulaare,totheextentapplicable:eligiblesalary,bonus,overtime,vacationandcommission.

Pensionplanbenefitsvestattheearlierofthecompletionoffiveyearsofcreditedserviceoruponreachingage65.Ifaparticipantisoverage55andhasmorethantenyearsofcontinuouscreditedservice,heorsheiseligibletoretirewithanunreducedbenefitatage62.Intheeventofachangeofcontrol,allparticipantswillbefullyvestedandtheterm“accruedbenefit”willincludethevalueofearlyretirementbenefitsforanyparticipantage45orolderorwithtenormoreyearsofservice.ThesebenefitsarenotsubjecttoanyreductionforSocialSecuritybenefitsorotheroffsetamounts.Anemployee’spensionbenefitsmaybepaidincertainalternativeformshavingactuariallyequivalentvalues.

Themaximumannualbenefitunderaqualifieddefinedbenefitpensionplaniscurrently$210,000beginningattheSocialSecurityretirementage.ThepensionrestorationplancoversthosepensionplanparticipantswhosebenefitsarereducedbytheInternalRevenueCodeorotherUnitedStateslawsandareeligibletoparticipateinthepensionrestorationplan.Aparticipantinthepensionrestorationplanisentitledtoabenefitequalingthedifferencebetweentheamountofbenefitstheparticipantisentitledtoreceivewithoutthereductionsandtheamountofbenefitstheparticipantisentitledtoreceiveafterthereductions.

ThefollowingtablesetsforththepresentvalueoftheaccumulatedbenefitsfortheNEOsassumingtheyretireattheunreducedearlyretirementageof62,andhavetenyearsofcontinuousservice,andusinginterestrateandmortalityrateassumptionsconsistentwiththoseusedinourfinancialstatements.Forinformationregardinginterestrateandmortalityrateassumptions,seethesectionentitled“EmployeeBenefitPlans”innote23toourauditedconsolidatedfinancialstatements,includedinourannualreportonForm10-KfortheyearendedDecember31,2015.



Name Plan NameNumber of Years

Credited Service (#)Present Value of

Accumulated Benefit ($)RobertE.Sanchez RetirementPlan(Frozen) 23 328,065 BenefitRestorationPlan(Frozen) 23 305,474ArtA.Garcia RetirementPlan(Frozen) 18 300,824 BenefitRestorationPlan(Frozen) 18 173,258DennisC.Cooke RetirementPlan(Noteligible) 0 0 BenefitRestorationPlan(Noteligible) 0 0GregoryF.Greene RetirementPlan(Frozen) 22 356,073 BenefitRestorationPlan(Frozen) 22 338,765RobertD.Fatovic RetirementPlan(Frozen) 21 289,753 BenefitRestorationPlan(Frozen) 21 259,810

2015 Nonqualified Deferred Compensation

Wemaintainadeferredcompensationplanforcertainemployees,includingourNEOs,pursuanttowhichparticipantsmayelecttodeferreceiptoftheircashcompensation(basesalary,commissionsandannualbonusonly).Anydeferredamountsarepartofourgeneralassetsandarecreditedwithhypotheticalearningsbasedonseveralhypotheticalinvestmentoptionsselectedbytheemployee.Thecompensationmaybedeferreduntiltheearliertooccurofafixeddateorseparationofemploymentduetoretirement,disabilityorremoval,andispayableinalumpsumorininstallmentsforaperiodrangingfromtwotofifteenyearsaselectedinadvancebytheexecutive.Uponachangeofcontrol,alldeferredamountswillbepaidimmediatelyinalumpsum.Ourcurrentdeferredcompensationplandoesnotprovideforabove-marketorpreferentialearnings.Asdescribedaboveunder“PensionBenefits”,in2015,Mr.Garcia,Mr.Greene,Mr.SanchezandMr.FatovicwerenoteligibletocontinueaccruingbenefitsandMr.Cookewasnevereligibletoaccruebenefitsunderourpensionplan.Instead,eachreceivedemployercontributionsintohisdeferredcompensationaccount.Adescriptionofthesebenefitsisincludedunder“PensionBenefits”above.

ExecutiveContributions

in Last Fiscal Year


in Last Fiscal Year Aggregate Earnings in Last Fiscal Year

Aggregate Balance at Last Fiscal Year End

Name ($) 1 ($) 1 ($) 2 ($)RobertE.Sanchez 923,034 132,525 (86,342) 1,821,475ArtA.Garcia 54,571 35,983 (14,703) 518,731DennisC.Cooke 177,858 54,654 (2,717) 524,484GregoryF.Greene 63,928 30,019 (5,885) 274,677RobertD.Fatovic 140,597 30,965 1,486 1,637,431

1 TheamountsreflectedinthiscolumnwerereportedascompensationtotheNEOsinourSummaryCompensationTablefor2015.

2 AggregateearningsondeferredcompensationincludedinthiscolumnwerenotreportedascompensationtotheNEOsinourSummaryCompensationTablefor2015.



Potential Payments Upon Termination or Change of Control

TheseverancebenefitsforthecurrentNEOs,includingMr.Sanchez,areprovidedunderindividualseveranceagreements.TheseverancebenefitsforallotherofficersareprovidedunderRyder’sExecutiveSeverancePlan,asamended,acopyofwhichwasfiledwiththeSEConFebruary14,2013.NoseverancewaspaidtoanyNEOduring2015.

VoluntaryTerminationandTerminationforCause

IntheeventaNEOvoluntarilyterminateshisemploymentwithus,otherthanasaresultofdeath,disabilityorretirement,oristerminatedforcause,theexecutiveofficerwillnotbeentitledtoreceiveanyseverancepaymentsunderthetermsofhisNEOseveranceagreement.Theexecutiveofficerwillretainanyaccruedcompensationandbenefitstotheextentvested.Intheeventofvoluntarytermination,allunvestedequityawardswillbecanceledandtheexecutiveofficerwillhavethreemonthsfromthedateofterminationtoexerciseanyvestedstockoptions.Intheeventofterminationforcause,allequity,vestedandunvested,willbecanceled.

TerminationforDeath,DisabilityorRetirement

Cash.Intheeventanexecutiveofficerretires,hewillbeentitledtoreceiveanyaccruedcompensationandbenefitstotheextentsuchbenefitshavevested,includingunderourpensionandpensionrestorationplans,asdescribedinmoredetailundertheheading“PensionBenefits”.Intheeventofdeath,theexecutiveofficer’sbeneficiarieswouldreceivebenefitsundertheexecutivelifeinsurancepolicieswemaintainonhisbehalf,whichbenefitsareequaltothreetimestheexecutive’scurrentbasesalaryuptoanaggregateof$3.0million.Inaddition,welfarebenefits(health,dentalandprescription)areextendedfor60daysforcoveredbeneficiaries,thetotalcostofwhichwouldrangefromapproximately$1,960to$3,302,dependingontheexecutive’scoverageandnumberofcoveredfamilymembers.Intheeventofdisability,theexecutiveofficerwouldbeentitledtoanyamountspaidunderourdisabilityinsurancepolicies,includingthesupplementallong-termdisabilitywemaintainforexecutiveofficers(asdescribedunder“RetirementandWelfareBenefitsandPerquisites”intheCompensationDiscussionandAnalysis).Upondeathordisability,theexecutiveofficer(orhisbeneficiary)wouldalsobeentitledtoapro-ratapaymentunderourannualcashincentiveawardprogram.

Equity.Upondeathorretirement,allunvestedstockoptionswillbecanceledandallvestedstockoptionswillremainexercisablefortheremainderofthetermoftheoption.Upondisability,unvestedstockoptionswillcontinuetovestforaperiodofthreeyearsfollowingdisability.TheintrinsicvalueasofDecember31,2015ofthestockoptionsthatwillcontinuetovestupondisability(calculatedbasedonthedifferencebetweentheexercisepriceoftheoptionsandtheclosingmarketpriceofourstockonDecember31,2015)was$0forallNEOs.Upondisability,allvestedstockoptionswillremainexercisablefortheremainderofthetermoftheoption.

Upondeath,disabilityorretirement,apro-rataportionofanyTBRSRswillvestandtheunderlyingcommonstockwillbedistributedtotheexecutive;and,iftheperformanceconditionforanyPBRSRsorPBCAsismet,apro-rataportionofthePBRSRsandPBCAswillvestandtheunderlyingcommonstockandcashwillbedistributedtotheexecutivewhendistributiontoallotherparticipantsoccurs.Thefairmarketvalueofthepro-ratanumberofrestrictedstockrightsplusthevalueofthePBCAsthattheexecutiveswouldhavebeenprovidedhadthedeath,disabilityorretirementoccurredonDecember31,2015andassuming,withrespecttothePBRSRsandPBCAs,thattheperformanceconditionismet,isasfollows:RobertE.Sanchez,$3,097,746;ArtA.Garcia,$679,989;DennisC.Cooke,$1,158,974;GregoryF.Greene,$561,214;andRobertD.Fatovic,$561,214.

InvoluntaryTerminationwithoutCauseandTerminationFollowingaChangeofControl

NEOSeveranceAgreements.FollowingisadescriptionoftheseverancebenefitsprovidedundertheNEOseveranceagreementsupontheexecutive’sinvoluntaryterminationwithoutCause.TheCompensationCommitteemayuseitsdiscretiontomakepost-terminationpaymentstoexecutiveofficersthatarenotrequiredpursuanttothetermsoftheNEOseveranceagreementsifsuchpaymentsaredeterminedtobeinthebestinterestsofRyder.

KeyDefinedTerms.FollowingarekeytermsdefinedintheNEOseveranceagreements:

• “Cause”meansanact(s)offraud,misappropriation,orembezzlement;convictionofanyfelony;convictionofamisdemeanorinvolvingmoralturpitude;willfulfailuretoreporttoworkformorethan30days;willfulfailuretoperformduties;materialviolationofRyder’sPrinciplesofBusinessConduct;andanyotheractivity



thatwouldconstitutecause.ThelasttwotriggersarenotincludedinthedefinitionofCauseforpurposesofprovidingseveranceuponaChangeofControl.

• “ChangeofControl”meanstheacquisitionof30%ormoreofthecombinedvotingpowerofourcommonstock;amajoritychangeinthecompositionofourBoard;anyreorganization,mergerorconsolidationthatresultsinmorethana50%changeintheshareownershipofourcommonstock,theacquisitionof30%ormoreofthevotingpowerofourcommonstockbyonepersonoramajoritychangeinthecompositionoftheBoard;ourliquidationordissolution;orasaleofsubstantiallyallofourassets.

• “GoodReason”meansamaterialreductionincompensation;transferringtheexecutivemorethan50miles;failuretoobtainasuccessor’sagreementtohonortheNEOseveranceagreement;failuretopaycertainChangeofControlseverancebenefitsintoatrust;terminationofemploymentnotdoneinaccordancewiththeNEOseveranceagreement;andanymaterialchangeindutiesoranyothermaterialadversechangeinthetermsandconditionsoftheexecutiveofficer’semployment(butspecificallydoesnotincludeachangeintitleorreportingrelationship).

Eligibility.ANEOisentitledtoseverancebenefitsifweterminatehisemploymentforanyreasonotherthandeath,disabilityorCause.ANEOisentitledtoChangeofControlseverancebenefitsifweterminatehisemployment,ortheexecutiveterminateshisemploymentforGoodReason,ineachcasewithintwoyears(referredtoastheprotectionperiod)afteraChangeofControl,andcertainotherrequirementsaremet.

SeveranceBenefits.IfaNEOmeetstheeligibilityrequirementsdescribedabove,hewillbeentitledtothefollowingseverancebenefits,subjecttoanylimitationsunderSection409AoftheInternalRevenueCode:

Severance Benefits Change of Control Severance Benefits

Cash Severance Theexecutivewillreceivecashseveranceasfollows:

•salarycontinuationfortheapplicableseveranceperiod(18monthsforallexecutiveofficersand30monthsfortheCEO)

•pro-ratacashpaymentundertheapplicableannualcashincentiveawardsbasedonactualperformanceintheyearoftermination

•severancepaymentequalto1.5xforallexecutiveofficersand2.5xfortheCEOoftheaverageamountsactuallypaidtotheexecutiveundertheannualcashincentiveawardforthethree-yearperiodprecedingtheyearoftermination

Theexecutivewillreceivecashseveranceasfollows:

•lumpsumpaymentequaltotheexecutive'seligiblebasesalaryonthedateofterminationtimestheapplicablesalarymultiple(2xforallexecutiveofficersand3xfortheCEO)

•pro-ratacashpaymentundertheapplicableannualcashincentiveawardsbasedonactualperformanceintheyearoftermination

•bonusequaltothetargetannualbonusamount(basedontheexecutive'sbasesalaryonthedateoftermination)fortherelevantperiodtimestheapplicablebonusmultiple(2xforallexecutiveofficersand3xfortheCEO)

Benefits Theexecutivewillbeentitledtobenefitsasfollows:

•continuationofallmedical,dental,prescriptionandvisioninsuranceplansandprogramsuntiltheearlieroftheendoftheapplicableseveranceperiod,thedateCOBRAcontinuationcoverageiscanceledorthedatetheexecutiveofficeriseligibletoreceivebenefitsfromanotheremployer

•continuationofexecutivelifeandsupplementaldisabilityinsuranceuntiltheendoftherelevantseveranceperiod

•outplacementservicesunderaCompany-sponsoredprogram



OtherProvisions.TheNEOseveranceagreementscontainstandardconfidentiality,non-competition,non-solicitationandreleaseprovisions.OurCEOandotherNEOshaveseveranceagreementsthatprovidethatRyderwouldreduce(butnotbelowzero)theaggregatepresentvalueofthepaymentsundertheagreementtoanamountthatwouldnotcauseanypaymenttobesubjecttotheexcisetaxunderSection4999oftheInternalRevenueCode,ifreducingthepaymentsundertheagreementwouldprovidetheexecutivewithagreaternetafter-taxamountthanwouldbethecaseifnoreductionwasmade.

EquityandOtherCompensation.Ourexecutiveofficers(includingallofourNEOs)arealsoentitledtocertainseverancebenefitsuponaninvoluntaryterminationwithoutCauseandcertainChangeofControlseverancebenefitsuponaChangeofControlunderthetermsofourequityandincentiveplan,deferredcompensationplan,pensionplanandpensionrestorationplan,subjectinallcasestothelimitationsunderSection409AoftheInternalRevenueCode.

Specifically,uponinvoluntaryterminationwithoutCause,anexecutive’svestedstockoptionswouldbeexercisableuntilthreemonthsaftertheendoftherelevantseveranceperiod,anduponaChangeofControl,(1)ourcurrentequityandincentiveplanprovidesforacceleratedvestingofoutstandingequityawardsandperformance-basedcashawards,(2)alldeferredcompensationamountsareimmediatelyvestedandpaidtotheexecutive,(3)theexecutiveisentitledtoadditionalbenefitsunderourpensionplanaspreviouslydescribedunder“PensionBenefits”and(4)accruedbenefitsunderourpensionrestorationplanareimmediatelypaid.In2016,theBoardamendedthe2012EquityandIncentiveCompensationPlantoprovidefor,amongotherthings,double-triggervestingofallfutureincentivegrantsuponachangeincontrolandisproposingtheAmendedPlanforshareholderapprovalatthe2016AnnualMeeting.

EstimatedSeveranceandChangeofControlSeveranceBenefitsasofDecember31,2015

TheestimatedpaymentsandbenefitsthatwouldbeprovidedtoeachNEOasaresultoftheinvoluntaryterminationwithoutCauseortheoccurrenceofaChangeofControlunderourNEOseveranceagreementsaresetforthinthetablebelow.Calculationsforthistablearebasedon:(1)thetriggeringeventtakingplaceonDecember31,2015and(2)acommonstockpriceof$56.83,theclosingpriceonDecember31,2015.



Triggering Event

NameCompensationComponents

InvoluntaryTermination without

Cause Change of Control

without Termination Change of Controlwith Termination

RobertE.Sanchez CashSeverance1 $ 5,787,607 $ 0 $ 6,865,851 IntrinsicValueofEquity2 $ 0 $ 4,608,508 $ 4,608,508 RetirementBenefits3 $ 0 $ 0 $ 0 WelfareBenefits4 $ 48,991 $ 0 $ 58,789 Outplacement5 $ 15,000 $ 0 $ 15,000 Total Benefit to Employee $ 5,851,598 $ 4,608,508 $ 11,548,148ArtA.Garcia CashSeverance1 $ 1,542,211 $ 0 $ 1,920,609 IntrinsicValueofEquity2 $ 0 $ 1,032,542 $ 1,032,542 RetirementBenefits3 $ 0 $ 2,217 $ 2,217 WelfareBenefits4 $ 17,644 $ 0 $ 23,525 Outplacement5 $ 15,000 $ 0 $ 15,000 Total Benefit to Employee $ 1,574,855 $ 1,034,759 $ 2,993,893DennisC.Cooke CashSeverance1 $ 2,103,754 $ 0 $ 2,632,549 IntrinsicValueofEquity2 $ 0 $ 1,768,118 $ 1,768,118 RetirementBenefits $ 0 $ 0 $ 0 WelfareBenefits4 $ 26,629 $ 0 $ 35,505 Outplacement5 $ 15,000 $ 0 $ 15,000 Total Benefit to Employee $ 2,145,383 $ 1,768,118 $ 4,451,172GregoryF.Greene CashSeverance1 $ 1,330,775 $ 0 $ 1,675,047 IntrinsicValueofEquity2 $ 0 $ 854,920 $ 907,257 RetirementBenefits3 $ 0 $ 6,000 $ 6,000 WelfareBenefits4 $ 26,308 $ 0 $ 35,077 Outplacement5 $ 15,000 $ 0 $ 15,000 Total Benefit to Employee $ 1,372,083 $ 913,257 $ 2,638,381RobertD.Fatovic CashSeverance1 $ 1,333,432 $ 0 $ 1,675,047 IntrinsicValueofEquity2 $ 0 $ 854,920 $ 854,920 RetirementBenefits3 $ 0 $ 0 $ 0 WelfareBenefits4 $ 26,629 $ 0 $ 35,505 Outplacement5 $ 15,000 $ 0 $ 15,000 Total Benefit to Employee $ 1,375,061 $ 854,920 $ 2,580,472

1 Cashseveranceincludes:(1)basesalary,(2)pro-ratacashpaymentundertheannualcashincentiveawards,(3)inthecaseofInvoluntaryTerminationwithoutCause,aseverancepaymentequaltoamultipleoftheaveragepayoutamountsundertheannualcashincentiveawardsforthepreviousthreeyears,and(4)inthecaseofChangeofControlwithTermination,targetannualbonus,allasdescribedabove.IntheeventofInvoluntaryTerminationwithoutCause,basesalaryispaidovertimeinaccordancewithusualpayrollpracticesandthebonusispaidinalumpsumshortlyaftertermination.IntheeventofterminationinconnectionwithaChangeofControl,allpaymentsaremadeinalumpsumshortlyaftertermination.TimingandpaymentofcashseveranceissubjectinallrespectstoSection409AoftheInternalRevenueCode.

2 UnderaChangeofControl,theintrinsicvalueofequityreflectstheintrinsicvalueoftheacceleratedequity.Ineachcase,theamountsarecalculatedusingtheclosingpriceofourcommonstockonDecember31,2015($56.83),andincludesstockoptions,TBRSRs,PBRSRs,andPBCAs.

3 ThisamountreflectstheincrementalincreaseinvalueresultingfromtheaccelerationofthevestingofthepensionrestorationplanintheeventofaChangeofControl(whetherornotthereisaterminationofemployment),plus,intheeventofaterminationinconnectionwithaChangeofControl,thevalueoftheearlyretirementsubsidyinourpensionplan.Assumedretirementageisthelaterofage55ortheexecutive'sageonDecember31,2015.

4 Amountsarebasedonthecurrentcosttousofreimbursingthenamedexecutiveforthepremiumspaidfortheircurrenthealth,dentalandprescriptioninsurancecoverageduringtheseveranceperiodasdescribedabove.Thereimbursementisincludedintheearningsoftheexecutiveandsubjecttoallapplicabletaxes.

5 AmountsreflectthecostofoutplacementservicesprovidedunderaCompany-sponsoredprogram.


Executive Compensation |

Director Compensation

Subsequent Events

Mr.GreenehasinformedtheCompanythathewillretireonMay31,2016.Inconnectionwithhisretirement,hewillreceive(a)acashpaymentrepresentingapro-ratedportionofhis2016long-termincentiveopportunity($67,000)and(b)acashpaymentequaltohis2016annualincentivetargetawardproratedtoreflectthefivemonthsworkedin2016target($130,000)anddeterminedbasedonactualCompanyperformance,inbothcasesanticipatedtobepaidinFebruary2017.Inconsiderationforthesepayments,Mr.Greenehasagreedtobeavailabletoassistmanagementinthetransitionofhisjobresponsibilitiesforanine-monthperiodfollowinghisretirement.

DIRECTOR COMPENSATION

Description of Director Compensation Program

ThekeyobjectiveofthecompensationprogramforourBoardistoaligntheinterestsoftheBoardwiththeinterestsofourshareholders.Inaddition,ourBoardcompensationprogramisdesignedtoattractdirectorsthathavethenecessaryskills,experienceandcharactertofulfilltheirresponsibilitiesandtoenhancelong-termvalueforourshareholdersandensurethecontinuityandvitalityofourCompany.OurCompensationCommitteeconductsacomprehensivereviewandevaluationofourcompensationpackagefornon-employeedirectorseverytwoyears.DirectorswhoareemployeesreceivenocompensationorbenefitsforserviceontheBoardotherthantherighttoparticipateinourMatchingGiftstoEducationProgramattheBoardlevel.

Ournon-employeedirectorsreceivedthefollowingcompensationduring2015:

• anannualBoardretainerof$65,000,payableinJanuaryofeachyear;• anannualCommitteeretainerof$35,000,payableinMayofeachyear;• aBoardorCommitteemeetingattendancefeeof$1,000foreachadditionalBoardorCommitteemeetingattendedinexcessofeightBoard

meetingsoreightCommitteemeetings,payableinDecemberofeachyear;• aCommitteeChairretainerof$10,000,payableinMayofeachyear,totheChairsoftheFinanceandGovernanceCommittees;• aCommitteeChairretainerof$15,000,payableinMayofeachyear,totheChairsoftheAuditandCompensationCommittees;• aLeadIndependentDirectorretainerof$25,000,payableinMayofeachyear,totheBoard’sLeadIndependentDirector;and• anannualgrantof$110,000inrestrictedstockunits(RSUs),madeonthedateofourAnnualMeetingofShareholders.

ThenumberofRSUsgrantedisbasedontheclosingsalespriceofRydercommonstockonthedateofgrant.TheRSUsvestupongrant,followingadirector’sinitialyearofserviceontheBoard,andaredelivered(eitherasalumpsumorinannualinstallmentsaselectedinadvancebythedirector)uponterminationofadirector’sserviceontheBoard.Theunitsreceivedividends,whicharereinvestedthroughourDividendReinvestmentProgram.Upontheoccurrenceofachangeincontrol,asdefinedintherelevantplandocuments,alloutstandingRSUswillbedeliveredtothedirectorinalumpsum.

DirectorsaregiventheoptiontoreceivealloranyportionoftheirannualretainerinRydercommonstock,whichcannotbesolduntilsixmonthsfollowingthedatesuchpersonceasestobeadirector.Aspartofourdeferredcompensationplan,directorshavetheoptionofdeferringreceiptoftheirannualBoardandCommitteeretainersaswellasexcessmeetingfees.Wedonotpayabove-marketorpreferentialearningsoncompensationdeferredbythedirectors.Directorsarenoteligibletoparticipateinourpensionplanor401(k)plan.

WemaintainalegacyDirectors’CharitableAwardsProgrampursuanttowhicheachdirectorelectedpriortoJanuary1,2005maydesignateuptotwocharitableorganizationstowhichwewillcontributeanaggregateof$500,000intenannualinstallmentsinthedirector’snamefollowingthedirector’sdeath.Theprogramiscurrentlyfundedwiththeproceedsofinsurancepoliciesandthedirectorsobtainnofinancialbenefitsfromtheprogram.ThreeofourdirectorswereelectedpriortoJanuary1,2005andcurrentlyparticipateintheprogram.Directorsmay


Director Compensation

alsoparticipateinourMatchingGiftstoEducationProgramavailabletoallemployees,underwhichwematchadirector’scontributionstoeligibleeducationalinstitutionsuptoamaximumof$10,000peryear.Employeesarelimitedtoamaximumof$1,000peryear.

OurCompensationCommitteeconductsacomprehensivereviewandevaluationofourcompensationpackagefornon-employeedirectorseverytwoyears.ThroughacompetitivepayanalysisconductedbyCookduring2015,theCompensationCommitteerecommended,andtheBoardapproved,anincreasefor2016intheequityvalueofRSUsgrantedannuallyfrom$110,000to$125,000tobringdirectorcompensationinlinewiththatofourpeergroup.

2015 Director Compensation

Thetablebelowsetsforththetotalcompensationreceivedbyournon-employeeBoardmembersin2015.Theamountsinthe“StockAwards”columnbelowrepresenttheaggregategrantdatefairvalue,computedinaccordancewiththeaccountingguidanceforstockcompensation,of(1)RSUsgrantedtothedirectorsin2015and(2)dividendsontheRSUsgrantedtodirectorsin2015.

Name

Fees Earnedor Paid in Cash

($) 1, 2, 3

StockAwards($) 4,5

All OtherCompensation

($) 6Total

($)JohnM.Berra 101,000 137,309 10,000 248,309RobertJ.Eck 101,000 118,975 10,000 229,975RobertA.Hagemann 107,750 111,607 — 219,357L.PatrickHassey 115,000 132,842 — 247,842MichaelF.Hilton 100,000 116,712 — 216,712TamaraL.Lundgren 101,000 115,726 — 216,726LuisP.Nieto,Jr. 114,000 130,637 5,000 249,637AbbieJ.Smith 119,000 137,309 — 256,309E.FollinSmith 114,000 134,118 10,000 258,118HanselE.Tookes,II 122,000 138,122 — 260,122

1 IncludesanannualCommitteeretainerof$35,000plusanannualBoardretainerof$65,000.

2 IncludesCommitteeChairfeesasfollows:Mr.Hagemann,$3,750;Mr.Hassey,$15,000;Mr.Nieto,$10,000;Ms.A.Smith,$15,000;Ms.E.Smith,$4,000;andMr.Tookes,$6,000;andLeadIndependentDirectorfeesasfollows:Ms.E.Smith,$10,000;andMr.Tookes,$15,000.

3 ThiscolumnincludesadditionalmeetingfeespaidtomembersoftheBoardasfollows:Mr.Berra,$1,000;Mr.Eck,$1,000;Mr.Hagemann,$4,000;Ms.Lundgren,$1,000;Mr.Nieto,$4,000;Ms.A.Smith,$4,000;andMr.Tookes,$1,000.

4 IncludestheaggregategrantdatefairvalueofawardscomputedinaccordancewiththeaccountingguidanceforstockcompensationfordividendsontheRSUsgrantedtodirectorsin2015inthefollowingamounts:Mr.Berra,$27,327;Mr.Eck,$8,993;Mr.Hagemann,$1,625;Mr.Hassey,$22,860;Mr.Hilton,$6,730;Ms.Lundgren,$5,744;Mr.Nieto,$20,655;Ms.A.Smith,$27,327;Ms.E.Smith,$24,136;andMr.Tookes,$28,140.


Director Compensation |

Advisory Vote on Executive Compensation (Proposal 3)

5 Thefollowingtablesetsfortheachdirector'soutstandingstockasofDecember31,2015:

Name Outstanding Stock AwardsJohnM.Berra 25,420RobertJ.Eck 8,126RobertA.Hagemann 2,401L.PatrickHassey 20,021MichaelF.Hilton 6,048TamaraL.Lundgren 5,199LuisP.Nieto,Jr. 18,195AbbieJ.Smith 25,852E.FollinSmith 21,763HanselE.Tookes,II 25,774

6 ReflectsbenefitsundertheCompany'sMatchingGiftstoEducationprogram.

Stock Ownership Requirements

Tofurtheraligntheinterestsofourdirectorsandshareholders,weimposestockownershiprequirementsonourdirectors,whoareexpectedtoownRydercommonstockorcommonstockequivalents(includinganyvestedorunvestedRSUs)equaltofivetimessuchdirector'stotalannualcashretainer,basedonathree-yearrollingaveragestockprice.Theownershiprequirementsmustbeproportionatelysatisfiedwithinfiveyearsofthedirector’selectiontotheBoard.AsofDecember31,2015,alldirectorswereincompliancewiththeirstockownershiprequirements.

ADVISORY VOTE ON EXECUTIVE COMPENSATION

(Proposal 3)

Weareprovidingshareholderswithanadvisoryvoteonexecutivecompensation,orSayonPay,asrequiredpursuanttotheDodd-FrankAct.

TheSayonPayvoteisanon-bindingvoteonthecompensationofourNEOs,asdescribedintheCompensationDiscussionandAnalysissection,thetabulardisclosureregardingsuchcompensationandtheaccompanyingnarrativedisclosuresetforthinthisproxystatement.TheDodd-FrankActrequiresustoholdtheSayonPayvoteatleastonceeverythreeyears.Followingtherecommendationofourshareholdersatour2011AnnualMeetingofShareholders,ourBoardhaschosentoholdtheSayonPayvoteeveryyear.Atlastyear’sAnnualMeeting,weheldaSayonPayvoteand96%ofshareholdervotescastsupportedourexecutivecompensation.

WeencourageshareholderstoreviewtheCompensationDiscussionandAnalysis,thecompensationtablesandtherelatednarrativedisclosureonpages28to46ofthisproxystatement.AsdiscussedintheCompensationDiscussionandAnalysis,thefundamentaldriversoftheCompany' sexecutivecompensationprogramand2015keycompensationactionsaretheCommittee' scompensationphilosophyandobjectives,itscommitmenttopayforperformanceandtheviewsandopinionsofourshareholders.WebelievethatthesuccessofourCompanyisattributabletoourtalentedandcommittedexecutives.Therefore,compensationofourNEOsisdesignedtoenableustorecruit,retainandmotivatehigh-qualityexecutiveswhocanhelpusachieveourshort-andlong-termcorporategoalsandstrategies.Webelievethatourexecutivecompensationprogramstrikestheappropriatebalancebetweenutilizingresponsible,measuredpaypracticesandeffectivelyincentivizingourexecutivestodedicatethemselvesfullytovaluecreationforourshareholders.Thisbalanceisevidencedbythefollowing:

• Weprovideasignificantpartofexecutivecompensationinperformance-basedincentives,includinganannualcashincentiveawardthatisbasedprimarilyontheachievementofcorporateperformancemetricsandalong-termincentiveprogram(LTIP)thatisbasedonourrelativetotalshareholderreturn(TSR)overathree-yearperiodandtheachievementofcorporatereturnoncapital(ROC)targets.

◦ For2015,consistentwithprioryears,approximately87%oftargetedcompensationforourCEOandover74%oftargetedcompensationfortheotherNEOswasat-riskbasedonCompanyperformanceorchangesinRyder'sstockprice.


Advisory Vote on Executive Compensation (Proposal 3)

◦ TheoperatingrevenueandcomparableEPStargetsrequiredtoachieveatargetpayoutunderthe2015annualcashincentiveawardsweremeasurablyhigherthanactualresultsfor2014,requiringexecutivestodrivesignificantlybetterperformanceinordertoearnatargetpayout.Specifically,for2015,thetargetoperatingrevenuewas$5.67billion,whichwasan8.0%increasefrom2014actualoperatingrevenue.Similarly,thetargetcomparableearningspersharefor2015was$6.40,a14.7%increasefromthe2014actualresult.

◦ Despitesolidrevenueandearningsgrowthin2015,TSRwas-38%for2015versus-29%forourpeergroup.Asaresult,ourperformance-basedawardsforthethirdperformanceperiodinthe2013-2015performancecycle,thesecondperformanceperiodinthe2014-2016performancecycleandthefirstperiodinthe2015-2017performancecyclewereonlypartiallyearnedat70%,40%and60%,respectively.ThisdemonstrateshowchallengingourtargetsareaswellasthealignmentbetweenourexecutivepayandCompanyperformancewhenperformanceisbelowourtargets.

Inaddition,wemaintainstrongcorporategovernancepracticesregardingexecutivecompensation.Forexample,

• TheCompensationCommitteeretainsanindependentcompensationconsultant.

• Ourexecutiveofficersareallsubjectto,andincompliancewith,ourstockownershiprequirements,whichrequirealevelofstockownershipthatwebelieveappropriatelyalignstheirinterestswiththoseofourshareholders.WerequiretheCEOtoownfourtimesannualbasesalaryandallotherNEOstoowntwotimesannualbasesalaryinCompanystock.

• AnnualcashincentiveawardstoeachexecutiveofficeraregenerallycappedatapercentageofEBTandtheperformance-basedrestrictedstockrightsandperformance-basedcashawardsgrantedunderourLTIParecappedat125%oftheapplicabletargetopportunity.Webelievethesecapsarereasonableandlimittheincentiveforexcessiverisk-takingbyourexecutives.

• ExecutivesarenotpermittedtoenterintotransactionsthatcouldbeusedtohedgetheriskofCompanystockownershipandareprohibitedfrompledgingCompanystock.

• Wemaintainaclawbackpolicyforrecoupmentofincentivecompensationforfinancialrestatementscausedbyanexecutive'swillfulmisconduct.

• In2016,theBoardamendedtheCompany's2012EquityandIncentiveCompensationPlantoprovidefordouble-triggervestingofallfutureincentivegrantsuponachangeincontrol,amongotherchanges,andisproposingtheAmendedPlantoshareholdersforapprovalatthe2016AnnualMeeting.

Shareholdersareaskedtovoteonthefollowingresolution:

RESOLVED,thattheshareholdersofRyderapprove,onanadvisorybasis,thecompensationofRyder’sNEOs,asdescribedintheCompensationDiscussionandAnalysissection,thetabulardisclosureregardingsuchcompensationandtheaccompanyingnarrativedisclosuresetforthinRyder’s2016AnnualMeetingproxystatement.

AlthoughthisSayonPayvoteonexecutivecompensationisnon-binding,theBoardandtheCompensationCommitteewillreviewtheresultsofthevoteand,consistentwithourrecordofshareholderengagement,taketheoutcomeofthevoteintoaccountwhendeterminingfutureexecutivecompensationarrangements.

The Board recommends a vote FOR adoption of the resolution approving the compensation of our NEOs, as described in theCompensation Discussion and Analysis section and the related tabular and narrative disclosure set forth in this proxy statement.


Approval of Amended and Restated 2012 Equity and Incentive Compensation Plan(Proposal 4)

APPROVAL OF AMENDED AND RESTATED 2012 EQUITY AND INCENTIVE COMPENSATION PLAN

(Proposal 4)

Background

TheCompanycurrentlymaintainstheRyderSystem,Inc.2012EquityandIncentiveCompensationPlan(2012Plan),whichwasoriginallyeffectiveasofMay4,2012.InFebruary2016,ourBoardofDirectorsadopted,subjecttoshareholderapproval,theAmendedandRestatedRyderSystem,Inc.2012EquityandIncentiveCompensationPlan(AmendedPlan),whichisanamendmentandrestatementofthe2012Plan.

Principal Changes

ShareholderapprovaloftheAmendedPlanisbeingsoughtinorderto(i)authorizeadditionalshares,(ii)extendthetermoftheAmendedPlanuntilMay5,2026,(iii)meetNYSElistingrequirements,(iv)permit(butnotrequire)certainawardsundertheAmendedPlantoqualifyforanexemptionfromthe$1milliondeductionlimitunderSection162(m)oftheInternalRevenueCodeand(v)makeotherappropriatechanges.

TheprincipalchangesmadebytheAmendedPlanareto:

• Increasethenumberofsharesofcommonstockreservedforissuancebyanadditional3,200,000shares.ThenumberofsharesreservedforissuanceundertheAmendedPlanonorafterMay6,2016willbeequaltothesumof(i)3,200,000shares,plus(ii)thenumberofsharessubjecttooutstandingawardsunderthe2012PlanasofFebruary12,2016(2,022,048shares),plus(iii)267,265shares,whichisthenumberofsharesavailableforgrantofawardsunderthe2012PlanasofFebruary12,2016subjecttoadjustmentsasdescribedintheAmendedPlan.Thisincreaserepresentsanadditional3,200,000sharesoverthecurrentshareauthorizationofthe2012PlanthatwillbeavailableforawardsundertheAmendedPlan.

• Providethattheaggregatemaximumgrantdatevaluethatmaybesubjecttoawardsgrantedtoanynon-employeedirectorundertheAmendedPlanduringanycalendaryear,includinganycashfeespayabletosuchnon-employeedirectorduringthecalendaryear,willnotexceed$500,000intotalvalue.

• Imposeaoneyearminimumvestingrequirementforallstock-basedawards;providedthatupto5%ofthesharesinitiallyreservedforissuanceundertheAmendedPlan(subjecttoadjustmentsasdescribedintheAmendedPlan)maybegrantedunderstock-basedawardsthatarenotsubjecttosuchminimumvestingrequirement.

• Providefordouble-triggervestingintheeventofachangeofcontrol,asdescribedbelow.

• Providethatfordividendsanddividendequivalentrightsthatareintendedtosatisfytherequirementsof“qualifiedperformance-basedcompensation”underSection162(m)oftheInternalRevenueCode,noparticipantmayaccrueinanycalendaryearwithrespecttoperformanceawardsgrantedtoanyindividualemployeedividendsanddividend-equivalentrightsthatexceed$500,000intotalvalue.

• PermittheCommittee(definedbelowunder"DescriptionoftheAmendedPlan-Administration")toacceleratevestingofawardsafterthedateofgrantinconnectionwithaparticipant’sdeath,disability,retirement,intheeventofachangeofcontrolorcertainothercorporatetransactionsorevents,orinothercircumstancesastheCommitteedeemsappropriate.

• ExtendthetermoftheAmendedPlanuntilMay5,2026.

• ModifytheplanamendmentprovisionssothatshareholdersmustapproveanyamendmenttotheAmendedPlanthatrequiresshareholderapprovalunderapplicablelaw,regulationorstockexchangerule.

• Makeotheradministrativechangesandchangestocomplywithcurrentlawandbestpractices.



TheAmendedPlanwillenabletheCompanytocontinueitscompensationprogramthatisintendedtoattract,motivateandretainexperienced,highly-qualifieddirectors,officersandotheremployeesoftheCompanyanditssubsidiarieswhowillcontributetotheCompany’sfinancialsuccess,andwillaligntheinterestsofthedirectors,officersandotheremployeesoftheCompanyanditssubsidiarieswiththoseofitsshareholdersthroughtheabilitytograntavarietyofstock-basedandcash-basedawards.TheAmendedPlanwillserveastheumbrellaplanforallofourstock-basedandcash-basedincentivecompensationprogramsfordirectors,officersandotheremployeesoftheCompanyanditssubsidiaries.IftheshareholdersapprovetheAmendedPlan,awardsgrantedundertheAmendedPlanwillbegovernedbythetermsoftheAmendedPlan.Awardspreviouslygrantedunderthe2012Planwillcontinuetobegovernedbythetermsofthe2012Planandtheapplicableawardagreements,andtheCommitteeshalladministersuchawardsinaccordancewiththe2012Plan,withoutgivingeffecttotheamendmentsmadepursuanttotheAmendedPlan.

TheapprovaloftheAmendedPlanwillnotaffecttheCompany’sabilitytomakestock-basedorcash-basedawardsoutsideoftheAmendedPlantotheextentconsistentwithapplicablelawandstockexchangerules.ItalsodoesnotgoverntheCompany’sstockaccumulationprogramsmadeavailablethroughtheCompany’sStockPurchasePlanforEmployees,401(k)SavingsPlan,andDirectorsStockPlan(pursuanttowhichnon-employeedirectorscanelecttoreceiveCompanystockatfairmarketvalueinlieuofalloraportionoftheirannualcashretainer).IftheAmendedPlanisnotapprovedbyourshareholdersattheAnnualMeeting,only267,265shareswillbeavailableforgrantofawardsunderthe2012Plan,subjecttoadjustmentasdescribedintheAmendedPlan.

Determination of Shares to be Available for IssuanceBasedonthenumberofsharessubjecttooutstandinggrantsunderthe2012PlanasofFebruary12,2016,267,265sharesremain

availableforgrantunderthe2012Plan.TheBoardofDirectorsanditsCompensationCommitteebelievethatattractingandretainingdirectors,officersandotheremployeesofhighqualityhasbeenandwillcontinuetobeessentialtotheCompany’sgrowthandsuccess.Consistentwiththisview,theBoardofDirectorsanditsCompensationCommitteebelievethatthenumberofsharesavailableforissuanceunderthe2012Planisnotsufficientforfuturegrantsinlightofourcompensationstructureandstrategy.

IfthisProposal4isapprovedbytheCompany’sshareholdersattheAnnualMeeting,themaximumaggregatenumberofsharesthatmaybeissuedonorafterMay6,2016undertheAmendedPlanwillbeequaltothesumof(i)3,200,000shares,plus(ii)thenumberofsharessubjecttooutstandingawardsunderthe2012PlanasofFebruary12,2016(2,022,048shares),plus(iii)267,265shares,whichisthenumberofsharesavailableforgrantofawardsunderthePlanasofFebruary12,2016,subjecttoadjustmentsasdescribedintheAmendedPlan.

Asisthecaseunderthe2012Plan,thenumberofsharesofCompanycommonstockreservedforissuanceundertheAmendedPlanwillbereducedonaone-for-onebasisforeachshareofstockissuedundertheAmendedPlanpursuanttoastockoptionorstockappreciationrightandwillbereducedbyafixedratiooftwosharesforeachshareofstockissuedundertheAmendedPlanpursuanttoastockawardorstockunit.Forexample,ifsharesareissuedpursuanttoanawardof1,000stockunits,thesharereserveundertheAmendedPlanwillbereducedby2,000shares.

WhendecidingonthenumberofsharestobeavailableforawardsundertheAmendedPlan,theBoardofDirectorsconsideredanumberoffactors,includingthenumberofsharescurrentlyavailableunderthe2012Plan,theCompany’spastshareusage(“burnrate”),thenumberofsharesneededforfutureawards,adilutionanalysis,competitivedatafromrelevantpeercompanies,thecurrentandfutureaccountingexpensesassociatedwiththeCompany’sequityawardpractices,andinputfromtheCompany’sshareholdersandshareholderadvisoryfirms.

Dilution Analysis

AsofFebruary12,2016,theCompany’scapitalstructureconsistedof53,679,316sharesofcommonstockoutstanding.Asdescribedabove,267,265sharesremainavailableforgrantofawardsunderthe2012PlanasofFebruary12,2016.Theproposedshareauthorizationisarequestfor3,200,000additionalsharestobeavailableforawardsundertheAmendedPlan.Thetablebelowshowsourpotentialdilution(referredtoas“overhang”)levelsbasedonourfullydilutedsharesofcommonstockandourrequestfor3,200,000additionalsharestobeavailableforawardsundertheAmendedPlan.Theadditional3,200,000sharesrepresent5.37%offullydilutedsharesofCompanycommonstock,includingallsharesthatwillbeauthorizedundertheAmendedPlan,asdescribedinthetablebelow.TheBoardofDirectorsbelievesthattheincreaseinsharesofcommonstockundertheAmendedPlanrepresentsareasonableamountofpotentialequitydilution,whichwillallowtheCompanytocontinueawarding



equityawards,andthatequityawardsareanimportantcomponentoftheCompany’sequitycompensationprogram.

Potential Overhang with 3,200,000 Additional Shares

StockOptionsOutstandingasofFebruary12,2016(1) 1,768,891WeightedAverageExercisePriceofStockOptionsOutstandingasofFebruary12,2016 $64.55WeightedAverageRemainingTermofStockOptionsOutstandingasofFebruary12,2016 7.5yearsOutstandingFullValueAwardsasofFebruary12,2016(1)(2) 693,552TotalEquityAwardsOutstandingasofFebruary12,2016(1) 2,462,443SharesAvailableforGrantunderthe2012PlanasofFebruary12,2016 267,265AdditionalSharesRequested 3,200,000

TotalPotentialOverhangundertheAmendedPlan(andallpredecessoremployeeandnon-employeedirectorequitycompensationplans) 5,929,708SharesofCommonStockOutstandingasofFebruary12,2016 53,679,316FullyDilutedSharesofCommonStock 59,609,024PotentialDilutionof3,200,000sharesasaPercentageofFullyDilutedSharesofCommonStock 5.37%

1RepresentsthenumberofoutstandingawardsunderallequityplansotherthantheStockPurchasePlanforEmployees.

2The693,552FullValueAwardswerecomprisedof:(a)336,159TBRSRsgrantedtoemployees,(b)194,943PBRSRsgrantedtoemployees,(c)156,805RSUsgrantedtonon-employeedirectorsand(d)5,645sharesweregrantedtonon-employeedirectorsinlieuofacashretainer.

TheFullyDilutedSharesofCommonStockintheforegoingtableconsistoftheSharesofCommonStockOutstandingasofFebruary12,2016plustheTotalPotentialOverhangundertheAmendedPlan(andallpredecessoremployeeandnon-employeedirectorequitycompensationplans).TheOutstandingFullValueAwardsintheforegoingtablearemeasuredattargetfortheoutstandingperformance-basedawards.Certainperformance-basedstockawardscanbepaidat0%to125%oftarget.Alldividendequivalentrightsarepaidincash.

Basedonourcurrentequityawardpractices,theBoardofDirectorsestimatesthattheauthorizedsharesundertheAmendedPlanmaybesufficienttoprovideuswithanopportunitytograntequityawardsforapproximatelyfouryears,inamountsdeterminedappropriatebytheCommittee,whichwilladministertheAmendedPlan(asdiscussedbelow).Thisisonlyanestimate,andcircumstancescouldcausethesharereservetobeusedmorequicklyormoreslowly.Thesecircumstancesinclude,butarenotlimitedto,thefuturepriceofourcommonstock,themixofcash,optionsandfullvalueawardsprovidedaslong-termincentivecompensation,grantamountsprovidedbyourcompetitors,payoutofperformance-basedawardsinexcessoftargetintheeventofsuperiorperformance,hiringactivity,andpromotionsduringthenextfewyears.

Burn Rate

Thetablebelowsetsforththefollowinginformationregardingtheawardsgrantedunderthe2012Planandallpredecessoremployeeandnon-employeedirectorequitycompensationplansoftheCompany:(i)theburnrateforeachofthelastthreecalendaryearsand(ii)theaverageburnrateoverthelastthreecalendaryears.Theburnrateforayearhasbeencalculatedasfollows:

(i)thesumof(x)allstockoptionsgrantedintheapplicableyear,(y)alltime-basedstockunitsandstockawardsgrantedintheapplicableyear,multipliedby2.5(whichrepresentsapremiumonfullvalueshareawardsbasedonourannualstockpricevolatility),and(z)thenumberofallperformance-basedstockunitsandstockawardsearnedintheapplicableyear,multipliedby2.5,

dividedby



(ii)theweightedaveragenumberofsharesofcommonstockoutstandingfortheapplicableyear.

Dividendequivalentsarenotincludedintheburnratecalculation,becausedividendequivalentsundertheoutstandingawardsarepaidonlyincashandarenotpaidinsharesofcommonstock.

Burn Rate

Element 2015 2014 2013

Three-YearAverage52,322,421

Time-BasedStockUnitsandStockAwardsGranted 90,282 186,233 156,382Performance-BasedStockUnitsandStockAwardsEarned 59,985 45,726 0

TotalFullValueAwardsx2.5 375,668 579,898 390,955StockOptionsGranted 362,420 406,430 391,190

TotalFullValueAwardsx2.5andStockOptionsGranted 738,088 986,328 782,145WeightedAverageSharesofCommonStockOutstandingasofDecember31 52,814,248 52,536,311 51,616,705

BurnRate 1.40% 1.88% 1.52% 1.60%

Theburnratemeansthatweusedanannualaverageof1.60%oftheweightedaveragesharesoutstandingforawardsgranted(orinthecaseofperformance-basedawards,earned)overthepastthreeyearsunderthe2012Plan(andallpredecessoremployeeandnon-employeedirectorequitycompensationplans).

Thefollowingtableshowsthenumberofstockunitsandstockawardsgrantedinayear,aswellasthenumberofperformance-basedstockunitsandstock-awardsearnedinayear.Theperformance-basedstockunitsandstockawardsearnedandeligibletobeearnedarebasedonthenumberofsharesearnedandeligibletobeearnedforthethree-yearperformanceperiodendingintheapplicableyear.Thenumberofperformance-basedstockunitsandstockawardsearnedandeligibletobeearnedin2013and2014includeawardsgrantedunderthe2005EquityCompensationPlan.

Element 2015 2014 2013Time-BasedStockUnitsandStockAwardsGrantedintheApplicableYear 90,282 186,233 156,382Performance-BasedStockUnitsandStockAwardsGrantedintheApplicableYear 54,950 64,210 70,100TotalGrantsofStockUnitsandStockAwards 145,232 250,443 226,482Performance-BasedStockUnitsandStockAwardsthatwereeligibletobeEarnedintheApplicableYear(atmaximumperformance) 87,625 116,300 143,940Performance-BasedStockUnitsandStockAwardsEarnedintheApplicableYear 59,985 45,726 0

TheBoardofDirectorsbelievesthattheCompany’sexecutivecompensationprogram,andparticularlythegrantingofequityawards,allowsustoaligntheinterestsofdirectors,officersandotheremployeesoftheCompanyanditssubsidiarieswhoareselectedtoreceiveawardswiththoseofourshareholders.TheAmendedPlanisdesignedtoenableustoformulateandimplementacompensationprogramthatwillattract,motivateandretaindirectors,officersandotheremployeeswhoweexpectwillcontributetoourfinancialsuccess.TheBoardof



DirectorsbelievesthatawardsgrantedpursuanttotheAmendedPlanareavitalcomponentofourcompensationprogramand,accordingly,thatitisimportantthatanappropriatenumberofsharesofstockbeauthorizedforissuanceundertheAmendedPlan.

Description of the Amended Plan

ThefollowingisabriefdescriptionofthematerialfeaturesoftheAmendedPlan.ThisdescriptionisqualifiedinitsentiretybyreferencetothefulltextoftheAmendedPlan,acopyofwhichisattachedtothisproxystatementasAppendixA.

Administration .TheCompensationCommittee(oranothercommitteeappointedbytheCompany’sBoardofDirectorsandgenerallyconsistingofpersonswhoare“non-employeedirectors,”asdefinedunderRule16b-3undertheExchangeAct,“outsidedirectors,”withinthemeaningofSection162(m)oftheInternalRevenueCodeand“independentdirectors”undertheapplicablestockexchangerules)(ineithercase,the“Committee”)willadministertheAmendedPlan.TheCommitteewillhavetheauthoritytoselectawardrecipients,determinethetype,sizeandothertermsandconditionsofawards,andmakeallotherdecisionsanddeterminationsasmayberequiredunderthetermsoftheAmendedPlanorastheCommitteemaydeemnecessaryoradvisablefortheadministrationoftheAmendedPlan.TheCommitteewillbepermittedtodelegatetooneormoreseniorexecutivesoftheCompanytheauthoritytomakegrantsofawardstoofficers(otherthanexecutiveofficers)andemployeesoftheCompanyandsuchotheradministrativeresponsibilitiesastheCommitteemaydeemnecessaryoradvisable,totheextentsuchdelegationisconsistentwithapplicablelawandtheapplicableNYSErules.TheCommittee’sdeterminationsundertheAmendedPlanandtheawardagreementsdonotneedtobeuniformandanysuchdeterminationsmaybemadebytheCommitteeselectivelyamongparticipants.

Eligibility .Officers,employeesandnon-employeedirectorsoftheCompanyanditssubsidiariesandotherindividualswhoprovideservicesfortheCompanyoranysubsidiaryareeligibletobeselectedasawardrecipients.TheCompanyhasapproximately2,144employees(includingalltheCompany’sofficers)and10non-employeedirectorswhoarecurrentlyeligibletoreceiveawardsundertheAmendedPlan.Oftheeligibleemployees,approximately2,144areeligibleforcash-basedawardsand,ofthose2,144employees,approximately460employeesarealsoeligibleforstock-basedawardsundertheAmendedPlan.

Type of Awards .TheCommitteeisauthorizedtograntawardspayableineitheroursharesorcash,includingoptionstopurchaseshares,restrictedshares,bonusshares,stockappreciationrights,restrictedstockunits,performanceunitsanddividendequivalents.AwardsmaybegrantedaloneorincombinationwithanyotherawardgrantedundertheAmendedPlanoranyotherplan.

Terms and Conditions of Awards .TheCommitteewilldeterminethesizeofeachawardtobegranted(including,whereapplicable,thenumberofsharestowhichanawardwillrelate),andallothertermsandconditionsofeachaward(includinganyexerciseprice,grantprice,orpurchaseprice,anyrestrictionsorconditionsrelatingtotransferability,forfeiture,exercisability,orsettlementofanaward,andanyscheduleorperformanceconditionsforthelapseofsuchrestrictionsorconditions,andaccelerationsormodificationsofsuchrestrictionsorconditions);providedthat(i)noawardwillexpiremorethantenyears(or,inthecaseofincentivestockoptions(discussedbelow)grantedtoanyholderofatleast10%ofthetotalcombinedvotingpowerofallclassesofstockoftheCompanyoranysubsidiaryorparentoftheCompany,fiveyears)fromthedateofgrant;(ii)exceptwithrespecttoSubstituteAwardsdiscussedbelow,awardsgrantedasstockoptionsorstockappreciationrightsmaynothaveanexercisepricethatislessthan100%(or,inthecaseofincentivestockoptions(discussedbelow)grantedtoanyholderofatleast10%ofthetotalcombinedvotingpowerofallclassesofstockoftheCompanyoranysubsidiaryorparentoftheCompany,110%)ofthefairmarketvalueofthesharesonthedateofgrant;(iii)dividendequivalentswillnotbepaidwithrespecttoanyotherunvestedperformancesharesorunits(providedthatdividendequivalentsmayaccrueonsuchunvestedawards,andbepaidtotheextentthesharesvest);(iv)nodividendequivalentsmaybegrantedwithrespecttostockoptionsorstockappreciationrights;(v)stock-basedawardsgrantedundertheAmendedPlanwillvestoveraperiodthatisnotlessthanoneyearfromthedateofgrant;providedthatupto5%ofthesharesreservedforissuanceundertheAmendedPlan(subjecttoadjustmentasdescribedbelow)maybegrantedunderawardsthatarenotsubjecttotheminimumvestingperiod;(vii)theCommitteehastheauthoritytoacceleratevestinginconnectionwithaparticipant’sdeath,disability,retirement,intheeventofachangeofcontrolorcertainothercorporatetransactionsoreventspursuanttowhichawardsmaybeadjustedundertheadjustment



provisions;oftheAmendedPlan(asdescribedbelow),orinothercircumstancesastheCommitteedeemsappropriateand(viii)anyawardsgrantedtonon-employeedirectorswillbegrantedonanon-discretionarybasisbasedonaformulaapprovedbytheCommittee.

ThetypesofawardsthatmaybegrantedundertheAmendedPlanincludethefollowing:

StockOptionsandStockAppreciationRights.AstockoptionisarighttopurchaseaspecifiednumberofsharesofRydercommonstockatanexercisepriceestablishedatthedateofgrant.Stockoptionsmaybeeithernon-qualifiedstockoptionsorincentivestockoptions(whichareintendedtoqualifyas“incentivestockoptions”withinSection422oftheInternalRevenueCode).TheexercisepriceofanystockoptionmaynotbelessthanthefairmarketvalueoftheRydercommonstockonthedateofgrant.Astockappreciationright(SARs)entitlestherecipienttoreceive,uponsurrenderoftheSAR,anamountofcashornumberofsharesofRydercommonstockhavingafairmarketvalueequaltothepositivedifference,ifany,betweenthefairmarketvalueofoneshareofcommonstockonthedateofexerciseandtheexercisepriceoftheSAR(whichexercisepriceshallnotbelessthanthefairmarketvalueoftheRydercommonstockonthedateofgrant).TheCommitteewillspecifyatthetimeanoptionorSARisgranted,when,andinwhatproportions,anoptionorSARbecomesvestedandexercisable.

RestrictedStockandRestrictedStockUnits.AnawardofrestrictedstockisanissuanceofsharesofRydercommonstockthatissubjecttocertainrestrictionsestablishedbytheCommitteeandtoforfeituretotheCompanyiftheholderdoesnotsatisfycertainrequirements(including,forexample,continuedemploymentwiththeCompanyforaspecifiedperiodoftime).Recipientsofrestrictedstockhavelimitedrightstothestockuntiltherestrictionsaresatisfiedbutmaybeentitledtovotetherestrictedstockandtoexerciseothershareholderrights.Thus,upongrant,thesharesmaybeincludedintheCompany’stotalnumberofsharesoutstandingandaccrueandpaydividends.Anawardofrestrictedstockunits(RSUs)entitlestherecipienttoreceivesharesofRydercommonstockatalaterdateoncetheholderhassatisfiedcertainrequirements.Atthattime,theshareswillbedeliveredandtherecipientwillbeentitledtoallshareholderrights.Thus,upongrant,thesharesofcommonstockcoveredbytheRSUsarenotconsideredissuedandarenotincludedintheCompany’stotalnumberofsharesoutstandinguntilallconditionshavebeensatisfied.Dividendequivalentsmayaccrue,orbepaid,onRSUsatthediscretionoftheCommittee.

Performance-BasedAwards.TheCommitteemaygrantperformanceawards,whichmaybecash-orstock-based.TheCommitteemaygrantperformanceawardsthatareintendedtosatisfytherequirementsof“qualifiedperformance-basedcompensation”toavoidthelimitationsontaxdeductibilityunderSection162(m)oftheInternalRevenueCode,buttheCommitteeisnotrequiredtograntperformanceawardsintendedtosatisfytherequirementsof“qualifiedperformance-basedcompensation”underSection162(m)oftheInternalRevenueCode.Generally,performanceawardsrequiresatisfactionofpre-establishedperformancegoals,consistingofoneormorebusinesscriteriaandatargetedperformancelevelwithrespecttosuchcriteriaasaconditionofawardsbeinggranted,becomingexercisableorsettleable,orasaconditiontoacceleratingthetimingofsuchevents.TheCommitteewillsettheperformancegoalsusedtodeterminetheamountpayablepursuanttoaperformanceaward.Iftheawardsareintendedtosatisfytherequirementsof“qualifiedperformance-basedcompensation”inordertoavoidthelimitationsontaxdeductibilityunderSection162(m)oftheInternalRevenueCode,thebusinesscriteriausedbytheCommitteeinestablishingperformancegoalsapplicabletoperformanceawardstothecoveredemployeesmustbeselectedfromamongthefollowing:earningspershare;revenues;cashflow;cashflowreturnoninvestment;returnonnetassets,returnonassets,returnoninvestment,returnoncapital,returnonequity;profitability;economicvalueadded;operatingmarginsorprofitmargins;incomeorearningsbeforeoraftertaxes;pretaxearnings;pretaxearningsbeforeinterest,depreciationandamortization;operatingearnings;pretaxoperatingearnings,beforeorafterinterestexpenseandbeforeorafterincentives,andunusualorinfrequentlyoccurringorspecialitems;netincome;totalstockholderreturnorstockprice;bookvaluepershare;expensemanagement;improvementsincapitalstructure;workingcapital;andcosts.PerformancegoalsmaybesetbasedonconsolidatedCompanyperformanceand/orforspecifiedsubsidiaries,divisions,orotherbusinessunits,andmaybewithfixed,quantitativetargets;targetsrelativetopastperformance;ortargetscomparedtotheperformanceofothercompanies,suchasapublishedorspecialindexoragroupofcompaniesselectedbytheCommitteeforcomparison.



Aggregate Limitation on Stock-Based Awards .TheaggregatenumberofsharesthatmaybeissuedundertheAmendedPlanafterMay6,2016willbeequaltothesumof(i)3,200,000shares,plus(ii)thenumberofsharessubjecttooutstandingawardsunderthe2012PlanasofFebruary12,2016(2,022,048shares)plus(iii)267,265shares,whichisthenumberofsharesavailableforgrantofawardsunderthePlanasofFebruary12,2016,subjecttoadjustmentsasdescribedintheAmendedPlan.Alloftheauthorizedsharesmaybegrantedasincentivestockoptions.

TheAmendedPlanhasthefollowingrulesforcountingsharesagainsttheAmendedPlan’ssharereserve:

• Foreachsharethatisdeliveredpursuanttoafullvalueaward(thatis,astock-basedawardotherthanastockoptionorSAR),theaggregatesharelimitundertheAmendedPlanwillbereducedbytwoshares.

• ForeachsharethatisdeliveredpursuanttoastockoptionorSAR,theaggregatesharelimitundertheAmendedPlanwillbereducedbyoneshare.

• IfandtotheextentthatstockoptionsorSARsgrantedundertheAmendedPlanterminate,expire,orarecanceled,forfeited,exchangedorsurrenderedwithouthavingbeenexercised,andifandtotheextentthatanyfullvalueawardsareforfeitedorterminated,orotherwisearenotpaidinfull,thesharesreservedforsuchawardswillagainbeavailableforgrantsundertheAmendedPlan.

• IfSARsaregranted,thefullnumberofsharessubjecttotheSARswillbeconsideredissuedundertheAmendedPlanandwillreducetheaggregatesharelimitona1:1ratio,withoutregardtothenumberofsharesactuallydelivereduponexerciseoftheSARs.

• Shareswithheldforpaymentoftheexercisepriceofastockoption,andshareswithheldforpaymentoftaxeswithrespecttostockoptionsandSARs,willnotbeavailableforre-issuanceundertheAmendedPlanandwillreducetheaggregatesharelimitona1:1ratio.

• Incontrast,shareswithheldortenderedtotheCompanybyaparticipantforpaymentoftaxeswithrespecttofullvalueawardswillnotreducetheaggregatesharelimitandwillbeavailableforre-issuanceundertheAmendedPlan.

• Totheextentthatanystock-basedawardsarepaidincash,andnotinshares,suchawardswillnotreducetheaggregatesharelimit.

SharesdeliveredunderthePlanmaybenewlyissuedshares,reacquiredshares,includingsharesacquiredonthemarket,ortreasuryshares.Intheeventofouracquisitionofanycompany,outstandingequitygrantswithrespecttostockoftheacquiredcompanymaybeassumedorreplacedwithawardsundertheAmendedPlan.OutstandingawardsthatareassumedorreplacedbyawardsundertheAmendedPlaninconnectionwithanacquisition,referredtoasSubstituteAwards,willnotreducetheAmendedPlan’saggregatesharelimit.ThetermsofanysuchSubstituteAwardwillbedeterminedbytheCommitteeandmayincludeexercisepricesorbasepricesthataredifferentfromthoseotherwisedescribedintheAmendedPlan.IftheCompanyassumesashareholderapprovedequityplanfromanacquiredcompany,anysharesofcommonstockavailableundertheassumedplan(afterappropriateadjustments,asrequiredtoreflectthetransaction)maybeissuedpursuanttoawardsundertheAmendedPlanandwillnotreducetheAmendedPlan’saggregatesharelimit.

Per Participant Limitations .ThefollowinglimitationsaresetforthintheAmendedPlan:

• Inanycalendaryear,noparticipantmaybegrantedstock-basedawards(including,fortheavoidanceofdoubt,stockoptionsandstockappreciationrights)thatrelatetomorethan500,000shares,subjecttoadjustmentsasdescribedintheAmendedPlan.

• Inanycalendaryear,noparticipantmaybegrantedcash-basedawards(excludingdividend-equivalentrights)thatcanbesettledformorethan$5,000,000intheaggregate.



• Fordividendsanddividendequivalentrightsthatareintendedtosatisfytherequirementsof“qualifiedperformance-basedcompensation”underSection162(m)oftheInternalRevenueCode,noparticipantmayaccrueinanycalendaryearwithrespecttoperformanceawardsgrantedtoanyindividualemployeedividendsanddividend-equivalentrightsthatexceed$500,000intotalvalue.

• Themaximumgrantdatevalueofsharessubjecttoawardsgrantedtoanynon-employeedirectorduringanyonecalendaryear,takentogetherwithanycashfeespayabletosuchnon-employeedirectorforservicesrenderedduringthecalendaryear,willnotexceed$500,000intotalvalue.

Adjustments .Intheeventofalarge,specialornon-recurringdividendordistribution,recapitalization,stockdividend,spin-off,combinationorexchangeofshares,repurchaseliquidation,dissolution,reorganization,businesscombination,orothersimilarcorporatetransactionoreventaffectingtheCompany’scommonstock(includingachangeofcontrol),theCommitteeshalladjustthenumberandkindofsharessubjecttotheaggregateandindividualsharelimitationsdescribedabove.TheCommitteemayalsoadjustoutstandingawardsuponoccurrenceoftheseeventsinordertopreservetheawardwithoutenhancingthevalueoftheaward.Theseadjustmentsmayincludechangestothenumberofsharessubjecttoanaward,theexercisepriceorsharepricereferencedintheawardterms,andothertermsoftheaward.TheCommitteewillmakesuchsubstitutionsoradjustments,includingasdescribedabove,asitdeemsfairandequitableasaresultofanysharedividendorsplitdeclaredbytheCompany.TheCommitteeisalsoauthorizedtoadjustperformanceconditionsandothertermsofawardsinresponsetothesekindsofeventsortochangesinapplicablelaws,regulations,oraccountingprinciples.

Effect of Change of Control .TheAmendedPlanprovidesfor“double-triggervesting”afterachangeofcontrol.

Unlessotherwiseprovidedintheapplicableawardagreement,ifachangeofcontroloccursinwhichtheCompanyisnotthesurvivingcorporation(ortheCompanysurvivesonlyasasubsidiaryofanothercorporation),(i)alloutstandingawardsthatarenotexercisedorpaidatthetimeofthechangeofcontrolwillbeassumedby,orreplacedwithawardsthathavecomparabletermsandvalueby,thesurvivingcorporation(oraparentorsubsidiaryofthesurvivingcorporation),and(ii)anyperformance-basedawardswillbedeemedearnedatthegreateroftargetlevelandtheactualperformancelevelasofthedateofthechangeofcontrolwithrespecttoallopenperformanceperiods,andwillcontinuetobesubjecttotime-basedvestingfollowingthechangeofcontrol.

UnlesstheCommitteedeterminesotherwiseorasprovidedintheapplicableawardagreement,ifaparticipant’semploymentisterminatedbyuswithoutcauseorbytheparticipantforgoodreason,ineithercase,uponorwithin24monthsfollowingthechangeofcontrol,theparticipant’soutstandingawardswillbecomefullyvestedasofthedateoftermination.

Inaddition,theCommittee,initsdiscretion,maytakeanyofthefollowingactionswithrespecttoanyoralloutstandingawards,withouttheconsentofanyparticipant:(i)determinethatparticipantswillreceiveapaymentinsettlementofoutstandingstockunits,cashawardsordividendequivalentsinsuchamountandformasmaybedeterminedbytheCommittee;(ii)requirethatparticipantssurrendertheiroutstandingstockoptionsandSARsinexchangeforapayment,incashorstockasdeterminedbytheCommittee,equaltotheamount(ifany)bywhichthefairmarketvalueofthesharesofcommonstocksubjecttotheunexercisedstockoptionandSARexceedthestockoptionexercisepriceorbaseprice;and(iii)modifythetermsofawardstoaddevents,conditionsorcircumstancesuponwhichvestingofsuchawardsorlapseofrestrictionsthereonwillaccelerate.Anysuchsurrender,terminationorpaymentwilltakeplaceasofthedateofthechangeofcontrolorsuchotherdateastheCommitteemayspecify.Ifthepersharefairmarketvalueofourstockdoesnotexceedthepershareexercisepriceorbaseprice,asapplicable,wewillnotberequiredtomakeanypaymenttotheparticipantuponsurrenderofthestockoptionorSAR.

UndertheAmendedPlan,“changeofcontrol”means:

• Anyindividual,entityorgroup,otherthantheCompanyoranemployeebenefitplansponsoredbytheCompanyoritssubsidiaries,becomesthebeneficialownerofmorethan30%ofourvotingstock;



• Individualswho,asofMay4,2012,constitutedourBoardofDirectors(referredtoastheincumbentboard)ceasetoconstituteatleastamajorityofourBoardofDirectors.Anyindividualwhobecomesadirectoraftersuchdateandwhoseelectionornominationwasapprovedbyavoteorbyapprovaloftheproxystatementinwhichsuchpersonisnamedasanomineefordirector,withoutwrittenobjectiontosuchnomination,ofatleastamajorityofthedirectorsthencomprisingtheincumbentboardwillbeconsideredamemberoftheincumbentboard.However,noindividualwhowasinitiallyelectedasamemberofourBoardofDirectorsinconnectionwithanactualorthreatenedelectioncontestorsettlementofanactualorthreatenedelectioncontestwillbeconsideredtobeamemberoftheincumbentboard;

• Consummationofareorganization,mergerorconsolidationoftheCompany,unless,followingsuchtransaction,(i)ourshareholdersimmediatelybeforethetransactionownmorethan50%ofthevotingstockofthesurvivingentityinsubstantiallythesameproportionsastheirownershipimmediatelybeforethetransaction,(ii)anyindividualorentity(excludingthecorporationresultingfromthetransactionoranyemployeebenefitplanorplansoftheCompanyorsuchcorporation)beneficiallyowns30%ormoreofthevotingstockofthecorporationresultingfromthetransactionand(iii)atleastamajorityoftheBoardofDirectorsofthecorporationresultingfromthetransactionweremembersoftheincumbentboardatthetimeoftheexecutionoftheinitialagreementoractionoftheBoardofDirectorprovidingforsuchtransaction;

• ConsummationofasaleofallorsubstantiallyalloftheCompany’sassets;or

• ShareholderapprovalofaliquidationordissolutionoftheCompany.

TheCommitteemayprovideadifferentdefinitionofchangeofcontrolinanawardagreementifitdeterminesadifferentdefinitionisnecessaryorappropriate,includingtocomplywithSection409AoftheInternalRevenueCode.

Restrictions on Repricing .Wemaynot,withoutobtainingshareholderapproval,(i)amendthetermsofoutstandingstockoptionsorSARstoreducetheexercisepriceofsuchoutstandingstockoptionsorbasepriceofsuchSARs,(ii)canceloutstandingstockoptionsorSARsinexchangeforstockoptionsorSARswithanexercisepriceorbaseprice,asapplicable,thatislessthantheexercisepriceorbasepriceoftheoriginalstockoptionsorSARsor(iii)canceloutstandingstockoptionsorSARswithanexercisepriceorbaseprice,asapplicable,abovethecurrentstockpriceinexchangeforcashorothersecurities,exceptinconnectionwithacorporatetransactioninvolvingtheCompany(includingachangeofcontrol).Nostockoptionsorstockappreciationrightswillbegrantedwithautomaticreloadfeatures.

Clawback Policy .AllawardsmadeundertheAmendedPlanshallbesubjecttotheapplicableprovisionsoftheCompany’sclawbackorrecoupmentpolicies,sharetradingpolicies,shareholdingandotherpoliciesthatmaybeimplementedandapprovedbytheBoardofDirectors,assuchpolicymaybeineffectfromtimetotime.

Amendment, Termination .TheBoardmayamend,suspend,discontinue,orterminatetheAmendedPlanortheCommittee’sauthoritytograntawardsundertheAmendedPlanwithoutshareholderapproval,providedthatshareholderapprovalwillberequiredforanyamendmentthatwillrequireshareholderapprovalasamatteroflaworregulationorundertheNYSErules.Unlessearlierterminated,theAmendedPlanwillterminatetenyearsafteritsapprovalbyshareholders.

U.S. Federal Income Tax Implications of the Amended Plan

TheU.S.federalincometaxconsequencesarisingwithrespecttoawardsgrantedundertheAmendedPlanwilldependonthetypeofaward.Fromtherecipients’standpoint,asageneralrule,ordinaryincomewillberecognizedatthetimeofpaymentofcash,ordeliveryofactualshares.Futureappreciationonsharesheldbeyondtheordinaryincomerecognitioneventwillbetaxableatcapitalgainsrateswhenthesharesaresold.TheCompany,asageneralrule,willbeentitledtoataxdeductionthatcorrespondsintimeandamounttotheordinaryincomerecognizedbytherecipient,andtheCompanywillnotbeentitledtoanytaxdeductioninrespectofcapitalgainincomerecognizedbytherecipient.



Exceptionstothesegeneralrulesmayariseunderthefollowingcircumstances:(i)ifshares,whendelivered,aresubjecttoasubstantialriskofforfeiturebyreasonoffailuretosatisfyanyemploymentorperformance-relatedcondition,ordinaryincometaxationandtheCompany’staxdeductionwillbedelayeduntiltheriskofforfeiturelapses(unlesstherecipientmakesaspecialelectiontoignoretheriskofforfeiture);(ii)ifanemployeeisgrantedastockoptionthatqualifiesas“incentivestockoption,”noordinaryincomewillberecognized,andtheCompanywillnotbeentitledtoanytaxdeduction,ifsharesacquireduponexerciseofsuchoptionareheldmorethanthelongerofoneyearfromthedateofexerciseandtwoyearsfromthedateofgrant;(iii)theCompanywillnotbeentitledtoataxdeductionforcompensationattributabletoawardsgrantedtooneofitscoveredemployees,ifandtotheextentsuchcompensationdoesnotqualifyas“performance-based”compensationunderSection162(m)oftheInternalRevenueCode,andsuchcompensation,alongwithanyothernon-performance-basedcompensationpaidinthesamecalendaryear,exceeds$1million;and(iv)anawardmaybetaxableat20percentagepointsaboveordinaryincometaxratesatthetimeitbecomesvested,evenifthatispriortothedeliveryofthecashorstockinsettlementoftheaward,iftheawardconstitutes“deferredcompensation”underSection409AoftheInternalRevenueCode,andtherequirementsofSection409AoftheInternalRevenueCodearenotsatisfied.TheforegoingprovidesonlyageneraldescriptionoftheapplicationofU.S.federalincometaxlawstocertainawardsgrantedtoU.S.taxpayersundertheAmendedPlan.

ThisdiscussionisintendedfortheinformationofshareholdersconsideringhowtovoteattheAnnualMeetingandnotastaxguidancetoparticipantsintheAmendedPlan,asthetaxconsequencesmayvarywiththetypesofawardsmade,theidentityoftherecipientsandthemethodofpaymentorsettlement.Thissummarydoesnotaddresstheeffectsofotherfederaltaxes(includingpossible“goldenparachute”excisetaxes)ortaxesimposedunderstate,local,orforeigntaxlaws.



New Plan Benefits under the Amended Plan

FuturebenefitsundertheAmendedPlangenerallywillbegrantedatthediscretionoftheCommitteeandarethereforenotcurrentlydeterminable.ThelastreportedsalepriceofashareofourcommonstockonMarch7,2016was$62.82pershare.

Thetablebelowshows,astoeachoftheCompany’sexecutiveofficersnamedintheSummaryCompensationTableofthisproxystatementandthevariousindicatedindividualsandgroups,theawardsgrantedbetweenJanuary1,2015andDecember31,2015.

Name Title

DollarValueofCash

Awards($)(1) StockAwards(2) OptionAwards(3)

RobertE.Sanchez

ChairandChiefExecutiveOfficer

ACIA:1,153,285PBCA:769,931

16,470 83,425

ArtA.Garcia

ExecutiveVicePresidentandChiefFinancialOfficer

ACIA:352,654PBCA:180,032

3,850 19,500

DennisC.Cooke

President,GlobalFleetManagementSolutions

ACIA:533,072PBCA:199,766

4,280 21,670

GregoryF.Greene

ExecutiveVicePresidentandChiefAdministrativeOfficer

ACIA:307,553PBCA:160,206

3,420 17,335

RobertD.Fatovic

ExecutiveVicePresident,ChiefLegalOfficerandCorporateSecretary

ACIA:307,553PBCA:160,206

3,420 17,335

Allcurrentexecutiveofficersasagroup(10persons)

ACIA:4,103,663PBCA:1,896,616

40,565 205,490

Allcurrentdirectorswhoarenotexecutiveofficersasagroup(10persons)

0

11,370 0

Allemployees,includingcurrentofficerswhoarenotexecutiveofficers,asagrouppersons(2,144persons)

ACIA:$44,264,229PBCA:$6,034,146

PBRSR:15,525TBRSR:74,109

156,930

1 RepresentsthedollaramountsofACIAsandPBCAsgrantedin2015assumingtheyareearnedattarget.Seethe2015GrantofPlanBasedAwardsTableabovefordetailsofthesecash-basedawardsgrantedtothenamedexecutiveofficers.Seefootnote3totheSummaryCompensationTableforactualamountsearnedundertheACIAsandPBCAsin2015forthenamedexecutiveofficers.Theactualamountpaidtoallcurrentexecutiveofficersasagroupunderthe2015ACIAswas$4,103,663andtheactualamountpaidtoallemployeesincludingcurrentofficerswhoarenotexecutiveofficersasagroupunderthe2015ACIAswas$44,264,229.In2015,2,144employees,includingourexecutiveofficers,receivedACIAsand460employees,includingourexecutiveofficers,receivedPBCAs.

2RepresentsthenumberofsharespayableifthePBRSRsgrantedtoexecutiveofficersareearnedattarget,thenumberofsharessubjecttoTBRSRsgrantedtoemployeeswhoarenotexecutiveofficersandthenumberofRSUsgrantedtonon-employeedirectors,asapplicable.Seethe2015DirectorCompensationTablefordetailsregardingtheRSUsgrantedtothenon-employeedirectors.In2015,450employeesreceivedTBRSRsand65employees,includingourexecutiveofficers,receivedPBRSRs.In2015,noneofourexecutiveofficersreceivedTBRSRs.

3Representsthenumberofsharesunderlyingoptionsgrantedin2015.Seethe2015GrantofPlanBasedAwardsTablefordetailsoftheoptionsgrantedtothenamedexecutiveofficers.

The Board of Directors recommends a vote FOR approval of the Amended and Restated 2012 Equity and Incentive Compensation Plan.


Approval of Amended and Restated Stock Purchase Plan for Employees(Proposal 5)

APPROVAL OF AMENDED AND RESTATED STOCK PURCHASE PLAN FOR EMPLOYEES

(Proposal 5)

Background

TheBoardofDirectorsanditsCompensationCommitteebelievethatprovidingemployeeswithanopportunitytoacquireanownershipinterestintheCompanythroughthepurchaseoftheCompany’scommonstockatadiscounttofairmarketvalueisbeneficialtotheCompanyanditsshareholders.Subjecttothetermsoftheplan,thisplanisopentoU.S.andCanadianemployeesotherthananyofourexecutivesdeemedtobean"officer"oftheCompany,asthattermisdefinedbytherulesadoptedbytheSecuritiesandExchangeCommissionpursuanttoSection16oftheExchangeAct(Section16Officers).Consistentwiththisview,attheAnnualMeeting,shareholderswillbeaskedtoapproveanamendmentandrestatementoftheRyderSystem,Inc.StockPurchasePlanforEmployees(PurchasePlan)thatwillincreasethemaximumnumberofsharesofRydercommonstockauthorizedforissuanceunderthePurchasePlanby1,000,000shares.OnFebruary10,2016,theBoardofDirectorsapprovedtheamendedandrestatedplanto(i)increasethemaximumnumberofsharesofRydercommonstockauthorizedforissuanceunderthePurchasePlanby1,000,000shares,subjecttoshareholderapprovaland(ii)makecertainotherupdatingchanges.Iftheamendmentandrestatementisapprovedbyshareholders,theaggregatenumberofsharesavailableforissuanceunderthePurchasePlanafterFebruary9,2016wouldbe1,134,730shares.

TheCompanyisseekingshareholderapprovaloftheamendmentandrestatementofthePurchasePlanincreasingthenumberofsharesavailableforissuanceunderthePurchasePlan,sothatthePurchasePlanwillcontinuetoqualifyunderSection423oftheInternalRevenueCode.ThePurchasePlanisnotatax-qualified,deferredcompensationplanunderSection401(a)oftheInternalRevenueCode,norisitsubjecttotheprovisionsoftheEmployeeRetirementIncomeSecurityActof1974(ERISA).

Description of the Purchase Plan

ThefollowingisabriefdescriptionofthematerialfeaturesofthePurchasePlan.ThisdescriptionisqualifiedinitsentiretybyreferencetothefulltextofthePurchasePlan,acopyofwhichisattachedtothisproxystatementasAppendixB.

Administration.ThePurchasePlanisadministeredbytheCompensationCommitteeoftheBoardofDirectorsconsistingofatleasttwodisinteresteddirectorswhich,subjecttotheexpressprovisionsofthePurchasePlan,hasfullpowerto(i)interpretthePurchasePlan,(ii)makerulesandregulationsrelatingtotheadministrationofthePurchasePlan,and(iii)makeallotherdeterminationsrelatingtothePurchasePlan.

Sharereserve.ThemaximumnumberofsharesofcommonstockthatmaybeissuedunderthePurchasePlanafterFebruary9,2016is1,134,730shares,whichincludesthe1,000,000-shareincreasethatshareholdersarebeingaskedtoapproveinthisProposal5.

IfthetotalnumberofsharesofcommonstocktobepurchasedpursuanttooutstandingpurchaserightsonanyparticulardateexceedthenumberofsharesthenavailableforissuanceunderthePurchasePlanorthemaximumnumberofsharespurchasableintotalbyallparticipantsinthePurchasePlanonanyonepurchasedate,thentheCompanywillmakeapro-rataallocationoftheavailablesharesonauniformandequitablebasis,andthepayrolldeductionsofeachparticipant,totheextentinexcessoftheaggregatepurchasepricepayableforthecommonstockpro-ratedtosuchindividual,willberefunded,withoutinterest.

EligibilityandParticipation.AllemployeesoftheCompanyoritssubsidiariesintheUnitedStatesandCanada,aswellasanysuchothersubsidiariesoftheCompanyasauthorizedbytheCommittee,areeligibletoparticipateduringanofferingperiodunderthePurchasePlanexcept:(i)anyemployeewho,wereheorshetoparticipateduringsuchofferingperiod,would(togetherwithanyotherpersonwhosestockwouldbeattributedtosuchemployeepursuanttoSection424(d)oftheInternalRevenueCode)own5%ormoreoftheCompany’scommonstock;(ii)anyemployeewhoisordinarilyemployedbytheCompanyforlessthan20hoursperweek;or(iii)anyemployeewhoqualifiesasa“highlycompensatedemployee”withinthemeaningofSection414(q)ofthe



InternalRevenueCodeandwhoissubjecttotheinsiderreportingrequirementsofSection16oftheExchangeAct.Aparticipant’senrollmentandchosenlevelofparticipationinthePurchasePlancontinuestobeeffectiveforeachconsecutiveofferingperioduntiltheparticipantwithdrawsfromthePurchasePlanorceasestobeeligibletoparticipateinthePurchasePlan.

AsofMarch7,2016,thenumberofemployeeswhowereeligibletoparticipateinthePurchasePlanwasapproximately26,000.Non-employeedirectorsarenoteligibletoparticipate.Theactualbenefits,ifany,toparticipantsinthePurchasePlanarenotdeterminablepriortothepurchaseofsharesthereunderasthevalue,ifany,ofsuchsharestotheirholdersisrepresentedbythedifferencebetweenthemarketpriceofashareoftheCompany’scommonstockonthedateofthepurchaseandthepurchasepriceoftheshares,asdescribedbelow.

OfferingPeriods;PurchasePrice;HoldingPeriod.UnlessotherwisechangedbytheCommitteepriortothefirstdayofanofferingperiod(theofferingdate),underthePurchasePlantherewillbeaseriesofthree-monthofferingperiodsbeginningeachJanuary,April,JulyandOctober.Employeesmaysubscribeandpayforsharesthroughpayrolldeductionsbaseduponeither(i)apercentageoftheemployee’seligiblebasepay(upto15%)or(ii)aspecificdollaramountoftheemployee’seligiblebasepay.Inanycalendaryear,aparticipatingemployeeisnotpermittedtopurchaseshareswithanaggregatefairmarketvalue(asofeachofferingdate)inexcessof$25,000.

ThepurchasepriceofthesharesofcommonstockofferedunderthePurchasePlanwillbedeterminedbytheCommittee,butinnoeventwillitbelessthan85%ofthefairmarketvalueofthecommonstockasofthelastdayoftheofferingperiod(thepurchasedate).Currently,thepurchasepriceisequalto85%ofthefairmarketvalueofcommonstockonthepurchasedate.Thepurchasesaremadeforparticipantsonthepurchasedatebyapplyingpayrolldeductionsaccumulatedovertheprecedingthreemonthstowardssuchpurchases.Themaximumnumberofsharesthatmaybepurchasedbyaparticipantonanyonepurchasedatemaynotexceed2,500shares,subjecttoperiodicadjustmentsintheeventofcertainchangesintheCompany’scapitalization.Inaddition,themaximumnumberofsharesthatmaybepurchasedintotalbyallparticipantsonanyonepurchasedatemaynotexceed500,000shares,subjecttoperiodicadjustmentsintheeventofcertainchangesintheCompany’scapitalization.TheCompensationCommitteehasthediscretionaryauthority,priortothestartofanyofferingperiod,toincreaseordecreasethelimitationstobeineffectforthenumberofsharesthatmaybepurchasedperparticipantandintotalbyallparticipantsoneachpurchasedate.

ParticipatingemployeesmaywithdrawfromthePurchasePlanduringanofferingperiod,andreceivebacktheiraccumulatedpayroll

deductions,withoutinterest,upontermsandconditionsestablishedbytheCommittee.Ifaparticipatingemployeewithdrawsfromanofferingperiod,heorshewillbepermittedtoparticipateinasubsequentofferingperiodprovidedheorshetimelyenrollsinsuchofferingperiod.

InordertoencouragecontinuedinvestmentintheCompany'sstock,thePurchasePlanprovidesthatparticipatingemployeesmaynotsellsharesacquiredthroughthePurchasePlanuntiloneyear(forCompanyofficers)orthreemonths(forallotheremployees)aftertheshareswerepurchasedbytheemployee.

TerminationofEmploymentorLossofEligibility.Terminationofaparticipant’semploymentforanyreason,includingretirementordeath,orthefailureoftheparticipanttoremaininthecontinuousemployoftheCompanyforatleast20hoursperweekduringanofferingperiod,causestheemployeetobecomeineligibletoparticipateinthePurchasePlan.Insucheventandexceptasnotedbelow,payrolldeductionscreditedtotheparticipant’saccountwillbereturnedtohimorheror,inthecaseofdeath,tothepersonorpersonsentitledtheretoasprovidedinthePurchasePlan,withoutinterest.

Intheeventaparticipantgoesonanapprovedunpaidleaveofabsence,theparticipantmaychoosetoeitherwithdrawfromtheofferingperiodorhavehisorherpayrolldeductionsheldforpurchaseonhisorherbehalfonthenextscheduledpurchasedate;however,noadditionalpayrolldeductionswillbecollectedduringtheparticipant’sleave.Upontheparticipant’sreturntoactiveservicewithin(i)threemonthsfollowingthestartofhisorherleaveor(ii)suchlongerperiodforwhichsuchparticipantisprovidedwithreemploymentrightsbystatuteorcontract,hisorherpayrolldeductionswillautomaticallyresumeattherateineffectatthetimetheleavebeganunlesstheparticipantwithdrawsfromthePurchasePlanpriortohisorherreturn.Intheeventtheparticipantreturnstoactiveservicefollowingaleaveofabsencewhichexceedsindurationtheapplicable(i)or(ii)timeperiod,heorshewillbetreatedasanewemployeeandmustre-enrollinthePurchasePlan.



CapitalChanges.IntheeventanychangeismadeintheCompany’scapitalizationduringanofferingperiod,suchasastocksplitorstockdividend,thatresultsinanincreaseordecreaseinthenumberofsharesofcommonstockoutstandingwithoutreceiptofconsiderationbytheCompany,equitableadjustmentsshallbemadetothepurchasepricepershare,themaximumnumberofsharesauthorizedforissuanceunderthePurchasePlan,themaximumnumberofsharesthatmaybepurchasedbyanyoneparticipantonagivenpurchasedateandthemaximumnumberofsharesthatmaybepurchasedintotalbyallparticipantsonagivenpurchasedate.

ChangeofControl.IntheeventtheCompanyundergoesa“changeofcontrol,”theCompensationCommitteemaytakeanyactionitdeemsnecessaryordesirablewithrespecttoanypurchaseofsharesunderthePurchasePlanasofthedateoftheconsummationofthechangeofcontrol.ForpurposesofthePurchasePlan,a“changeofcontrol”willbedeemedtohaveoccurreduponasaleofsecuritiesrepresentingmorethan30%ofthetotalcombinedvotingpoweroftheoutstandingsecurities,achangeinthecompositionoftheBoardofDirectorsasaresultofwhichfewerthanthemajorityofthedirectorsareincumbentdirectors,areorganization,amerger,aconsolidation,asaleofallorsubstantiallyallofitsassetsorashareholder-approvedliquidationordissolution.

RightsNotTransferable.RightsgrantedunderthePurchasePlanarenottransferableotherthanbywillorthelawsofdescentanddistribution,andareexercisableonlybytheparticipants.

NoEmploymentRights. ThePurchasePlandoesnotimposeanyobligationontheCompanyoranyparticipatingsubsidiarytocontinuetheemploymentofaparticipantanddoesnotlessenoraffecttheCompany’sorparticipatingsubsidiary’srighttoterminatetheemploymentofsuchparticipant.

AmendmentandTermination.TheCompensationCommitteemayterminateoramendthePurchasePlanatanytime,exceptthatnoamendmentwillbeeffectiveunlessitisapprovedbytheshareholdersoftheCompanyifsuchapprovalisrequiredunderSection423oftheInternalRevenueCode,oranyotherapplicablelaw,regulationorstockexchangerule.TheterminationormodificationofthePurchasePlanmaynotaffectrightstopurchasestockpreviouslygranted.

NewPlanBenefits.Thetablebelowshows,astoeachoftheCompany’sexecutiveofficersnamedintheSummaryCompensationTableofthisproxystatementandthevariousindicatedindividualsandgroups,thenumberofsharesofcommonstockpurchasedunderthePurchasePlanbetweenJanuary1,2015andDecember31,2015,themostrecentpurchasedate.ThelastreportedsalepriceofashareofourcommonstockonMarch7,2016was$62.82pershare.

Stock Purchase Plan for Employees

Name TitleNumberof

PurchasedShares

WeightedAveragePurchasePricePer

ShareRobertE.Sanchez(1) ChairandChiefExecutiveOfficer 0 0ArtA.Garcia(1) ExecutiveVicePresidentandChiefFinancial

Officer0 0

DennisC.Cooke(1) President,GlobalFleetManagementSolutions 0 0GregoryF.Greene(1) ExecutiveVicePresident,ChiefAdministrative

Officer0 0

RobertD.Fatovic(1) ExecutiveVicePresident,ChiefLegalOfficerandCorporateSecretary

0 0

Allcurrentexecutiveofficersasagroup(10persons)(1)(2) 336 $67.10Allcurrentdirectorswhoarenotexecutiveofficersasagroup(10persons)(1)

0 0

Allemployees,includingcurrentofficerswhoarenotexecutiveofficers,asagroup(4,063persons)

177,368 $63.93

(1)ExecutiveofficersanddirectorsoftheCompanyarenoteligibletoparticipateinthePurchasePlan.

(2)Shareswerepurchasedbytwoexecutiveofficerspriortobeingappointedasexecutiveofficers.



U.S. Federal

Tax Consequences

ThePurchasePlan,andtherightofparticipantstomakepurchasesthereunder,isintendedtoqualifyundertheprovisionsofSections421and423oftheInternalRevenueCode.Undertheseprovisions,noincomewillbetaxabletoaparticipantuntilthesharespurchasedunderthePurchasePlanaresoldorotherwisedisposedof.Ifaparticipantdisposesofhisorhersharesofcommonstockwithinthelateroftwoyearsfromtheofferingdatethatappliestothesharesorwithinoneyearfromthepurchasedateoftheshares,atransactionreferredtoasa“disqualifyingdisposition”occursandtheparticipantwillrealizeordinaryincomeintheyearofsuchdispositionequaltotheamountbywhichthefairmarketvalueofthestockonthepurchasedateexceededthepurchaseprice.Insuchinstances,theamountofsuchordinaryincomewillbeaddedtotheparticipant’sbasisintheshares,andanyadditionalgainorresultinglossrecognizedonthedispositionofthesharesaftersuchbasisadjustmentwillbeacapitalgainorloss.Acapitalgainorlosswillbelong-termiftheparticipantholdsthesharesofcommonstockformorethanoneyearafterthepurchasedate.

Iftheparticipantdisposesofhisorhersharesofcommonstockmorethantwoyearsaftertherelevantofferingdateofsuchsharesandmorethanoneyearafterthepurchasedateofsuchshares,theparticipantwillrealizeordinaryincomeintheyearofsuchdispositionequaltothelesserof(i)theexcessofthefairmarketvalueofthesharesonthedateofdispositionoverthepurchasepriceor(ii)theexcessofthefairmarketvalueofthesharesontherelevantofferingdateoverthepurchasepriceforsuchshares.Theamountofsuchordinaryincomewillbeaddedtotheparticipant’sbasisintheshares,andanyadditionalgainrecognizedonthedispositionofthesharesaftersuchbasisadjustmentwillbelong-termcapitalgain.Ifthefairmarketvalueofthesharesonthedateofdispositionislessthanthepurchaseprice,therewillbenoordinaryincomeandanylossrecognizedwillbeacapitalloss.TheCompanywillgenerallybeentitledtoadeductionintheyearofadisqualifyingdispositionequaltotheamountofordinaryincomerecognizedbytheparticipantasaresultofsuchdisposition.Inallothercases,nodeductionisallowedtheCompany.

TheforegoingprovidesonlyageneraldescriptionoftheapplicationofU.S.federalincometaxlawsupontheU.S.participantsandtheCompanywithrespecttoparticipationinthePurchasePlan.ThisdiscussionisintendedfortheinformationofshareholdersconsideringhowtovoteattheAnnualMeetingandnotastaxguidancetoparticipantsinthePurchasePlan.Thissummarydoesnotaddresstheeffectsofotherfederaltaxesortaxesimposedunderstate,localorforeigntaxlaws.

Accounting Consequences

Pursuanttotheaccountingprincipleswhichareapplicabletoemployeestockpurchaseplans,thefairvalueofeachoptiongrantedunderthePurchasePlanischargedasadirectcompensationexpensetoourreportedearningsovertheofferingperiodtowhichthatoptionpertains.Thefairvalueofeachsuchoptionwillbedeterminedasofitsgrantdate.

Shareholder Vote

Shouldshareholderapprovalnotbeobtained,theproposedincreasetothePurchasePlan’ssharereservewillnotbeimplemented,andthePurchasePlanineffectpriortotheproposedamendmentwhichisthesubjectofthisProposalwillcontinuetoremainineffect.StockpurchaseswillcontinuetobemadepursuanttotheprovisionsofthePurchasePlanuntiltheavailablereserveofcommonstockunderthePurchasePlanisdepletedoruntiltheplanterminatesinaccordancewithitsterms.

Equity Compensation Plan Information

ThefollowingtableincludesinformationasofDecember31,2015aboutcertainplanswhichprovidefortheissuanceofcommonstockinconnectionwiththeexerciseofstockoptionsandotherstock-basedawards.



Plans

NumberofSecuritiestobeissueduponExerciseofOutstandingOptions,WarrantsandRights

Weighted-AverageExercisePriceofOutstandingOptions,Warrantsand

Rights

NumberofSecuritiesRemainingAvailableforFutureIssuanceUnder

EquityCompensationPlansExcludingSecurities

ReflectedinColumn(a)

(a) (b) (c)Equitycompensationplansapprovedbysecurityholders: Broadbasedemployeestockplans 1,755,129 (1) $68.13 (3) 1,194,719Employeestockpurchaseplan — — 134,730Non-employeedirectors'stockplans 162,450 (2) — 39,098

Equitycompensationplansnotapprovedbysecurityholders: — — —Total 1,917,579 $68.13 1,368,547_______________(1) Includes548,493time-vestedandperformance-basedrestrictedstockawardsasiftheywereearnedattarget.(2) Includes62,421restrictedstockunitsandtime-vestedrestrictedstockawards,ofwhich5,645time-vestedrestrictedstockawardsvestedinpreviousyearsandarenotpaiduntilsixmonthsafterthedirector's

retirement.(3) Weighted-averageexercisepriceofoutstandingoptionsexcludesrestrictedstockawardsandrestrictedstockunits.

ThenumbersinthetableaboveareasofDecember31,2015,whereasthenumbersinthePotentialOverhangchartunder“DeterminationofSharestobeAvailableforIssuance-DilutionAnalysis”reflectnumbersasofFebruary12,2016.ThedifferencesinthenumbersasofDecember31,2015andFebruary12,2016areprimarilybecauseofawardsthatvestedandwerepaidafterDecember31,2015andnewawardsthatweregrantedunderthe2012PlanafterDecember31,2015.

The Board of Directors recommends a vote FOR the approval of the Amended and Restated Stock Purchase Plan for Employees


Other Matters

OTHER MATTERS

Who can vote? HoldersofRydercommonstockatthecloseofbusinessonMarch4,2016,therecorddate,areentitledtovotetheirsharesattheAnnualMeeting.AsofMarch4,2016,therewere53,687,473sharesofcommonstockissued,outstandingandentitledtovote.Eachshareofcommonstockissuedandoutstandingisentitledtoonevote.

What is a quorum? Aquorumistheminimumnumberofsharesrequiredtoholdameeting.UnderourBy-Laws,theholdersofamajorityofthetotalnumberofsharesissuedandoutstandingandentitledtovoteatthemeetingmustbepresentinpersonorrepresentedbyproxyforaquorum.Ifyousignandreturnyourproxymarked“abstain”,yourshareswillbecountedforpurposesofdeterminingwhetheraquorumispresent.

What is the differencebetween a shareholder ofrecord and a beneficialshareholder?

Youareashareholderofrecordifyouareregisteredasashareholderwithourtransferagent,WellsFargoBank,NationalAssociation(WellsFargo).Youareabeneficialshareholderifabrokeragefirm,bank,trusteeorotheragent(nominee)holdsyourshares.Thisisoftencalledownershipin“streetname”,sinceyournamedoesnotappearanywhereinourrecords.

How do I vote? Ifyouareashareholderofrecord,youmayvote:

ŸviaInternet;Ÿbytelephone;Ÿbymail,ifyoureceivedapapercopyoftheseproxymaterials;orŸinpersonatthemeeting.

DetailedinstructionsforInternetandtelephonevotingaresetforthonthenoticeofInternetavailability(Notice),whichcontainsinstructionsonhowtoaccessourproxystatement,annualreportandshareholderletteronline,andtheprintedproxycard.

Ifyoursharesareheldinour401(k)plan,yourproxywillserveasavotinginstructionforthetrusteeofour401(k)planwhowillvoteyoursharesasyouinstruct.Toallowsufficienttimeforthetrusteetovote,yourvotinginstructionsmustbereceivedbyMay3,2016(thecut-offdate).Ifthetrusteedoesnotreceiveyourinstructionsbythecut-offdate,thetrusteewillvotethesharesyouholdthroughour401(k)planinthesameproportionasthosesharesinour401(k)planforwhichvotinginstructionswerereceived.

Ifyouareabeneficialshareholder,youmustfollowthevotingproceduresofyournominee.

What if I am a beneficialshareholder and I do notgive the nominee votinginstructions?

BrokeragefirmshavetheauthorityunderNYSErulestovotesharesforwhichtheircustomersdonotprovidevotinginstructionsoncertain“routine”matters.Abrokernon-voteoccurswhenanomineewhoholdssharesforanotherdoesnotvoteonaparticularitembecausethenomineedoesnothavediscretionaryvotingauthorityforthatitemandhasnotreceivedinstructionsfromtheowneroftheshares.Brokernon-votesareincludedinthecalculationofthenumberofvotesconsideredtobepresentatthemeetingforpurposesofdeterminingthepresenceofaquorumbutarenotcountedassharespresentandentitledtobevotedwithrespecttoamatteronwhichthenomineehasexpresslynotvoted.

What shares are coveredby my proxy card?

YourproxyreflectsallsharesownedbyyouatthecloseofbusinessonMarch4,2016.Forparticipantsinour401(k)plan,sharesheldinyouraccountasofthatdateareincludedinyourproxy.

What does it mean if Ireceive more than oneNotice or proxy card?

Itmeansthatyouholdsharesinmorethanoneaccount.Toensureallofyoursharesarevoted,ifyouvotebytelephoneorontheInternet,youwillneedtovoteonceforeachNotice,proxycardorvotinginstructioncardyoureceive.Alternatively,ifyouvotebyproxycard,youwillneedtosignandreturneachproxycardbymail.


Other Matters

How many votes areneeded for the proposalsto pass?

Thetablebelowsetsforththeproportionofvotesneededforeachproposalontheballottopass.Thetablealsosetsforthwhetheranomineecanexercisediscretionandvoteyoursharesabsentyourinstructionsandifnot,theimpactofsuchbrokernon-voteontheapprovaloftheproposal,andtheimpactofabstentions.

Proposal

How Many Votesare Needed for a

Proposal to Pass?

Can BrokersVote AbsentInstructions?

Impact ofBroker

Non-Vote Impact of

Abstentions

1.ElectionofDirectors MajorityofVotesCast No None None

2.RatificationofPricewaterhouseCoopers MajorityofVotesCast Yes

NotApplicable None

3.SayonPay MajorityofVotesCast No None None

4.ApprovalofAmendedandRestated2012EquityandIncentiveCompensationPlan

MajorityofVotesCast No None SameasaVote"Against"

5.ApprovalofAmendedandRestatedEmployeeStockPurchasePlan

MajorityofVotesCast No None SameasaVote"Against"

Proposal 3 is a non-binding advisory vote.What is the effect if itpasses?

AlthoughtheadvisoryvoteonProposal3(SayonPay)isnon-binding,ourBoardandtheCompensationCommitteewillreviewtheresultsand,consistentwithourrecordofshareholderengagement,takethemintoaccountinmakingfutureexecutivecompensationdecisions.

How do I change my vote? AshareholderofrecordmayrevokeaproxybygivingwrittennoticeofrevocationtoourCorporateSecretarybeforethemeetingbydeliveringalater-datedproxy(eitherinwriting,bytelephoneorovertheInternet),orbyvotinginpersonattheAnnualMeeting.

Ifyouareabeneficialshareholder,youmaychangeyourvotebyfollowingyournominee’sproceduresforrevokingorchangingyourproxy.

Who can attend theAnnual Meeting?

OnlyshareholdersandourinvitedguestsarepermittedtoattendtheAnnualMeeting.Ifyouareashareholderofrecord,youmustbringaformofpersonalidentificationtotheAnnualMeeting,whereyournamewillbeverifiedagainstourshareholderlist.Ifyouareabeneficialshareholderandyouplantoattendthemeeting,youshouldbringproofofownership,suchasabrokeragestatement,showingyourownershipofthesharesasoftherecorddateandaformofpersonalidentification.Ifyouareabeneficialshareholderandwishtovoteyoursharesatthemeeting,youmustobtainaproxyfromyournomineeandbringyourproxytotheAnnualMeeting.

If I plan to attend theAnnual Meeting, should Istill vote by proxy?

Yes.CastingyourvoteinadvancedoesnotaffectyourrighttoattendtheAnnualMeeting.Ifyouvotebytelephone,ontheInternetorsendinyourproxycardandalsoattendthemeeting,youdonotneedtovoteagainatthemeetingunlessyouwanttochangeyourvote.Writtenballotswillbeavailableatthemeetingforshareholdersofrecord.

BeneficialshareholderswhowishtovoteinpersonmustrequestalegalproxyfromtheirnomineeandbringthatlegalproxytotheAnnualMeeting.


Other Matters

Proxy Solicitation Costs

Wepaythecostofsolicitingyourproxyandreimbursebrokeragefirmsandothersforforwardingproxymaterialstoyou.Inadditiontosolicitationbymail,solicitationsmayalsobemadebypersonalinterview,letter,faxandtelephone.Certainofourofficers,directorsandemployeesmayparticipateinthesolicitationofproxieswithoutadditionalconsideration.

Vote Tabulation

OurBoardhasappointedBroadridgeFinancialSolutions,Inc.astheindependentInspectorofElectionoftheAnnualMeeting.RepresentativesofBroadridgewillcountthevotes.

Confidential Voting

ThevotinginstructionsofshareholdersofrecordwillonlybeavailabletotheInspectorofElection.Votinginstructionsforemployeebenefitplanswillonlybeavailabletotheplan’strusteeandtheInspectorofElection.Thevotinginstructionsofbeneficialshareholderswillonlybeavailabletotheshareholder’snominee.Yourvotingrecordswillnotbedisclosedtousunlessrequiredbyalegalorder,requestedbyyouorcastinacontestedelection.

Shareholder Proposals

ShareholderProposals.TobeconsideredforinclusioninRyder’s2017proxystatement,shareholderproposalsmustbedeliveredinwritingtousat11690N.W.105thStreet,Miami,Florida33178,Attention:CorporateSecretary,nolaterthanNovember21,2016.Additionally,wemustreceivepropernoticeofanyothershareholderproposaltobesubmittedatthe2017AnnualMeetingofShareholders(butnotincludedinourproxystatement)noearlierthanJanuary6,2017andnolaterthanFebruary5,2017.

NominationofDirectors.IfashareholderwouldliketousetheCompany'sproxyaccessprocedurestonominateoneormoredirectorsforelectionatthe2017AnnualMeeting(forinclusioninRyder'sproxymaterials),heorshemustgiveadvancewrittennoticeatleast120,butnomorethan150,daysbeforetheone-yearanniversaryofthedateRyderissueditsdefinitiveproxystatementforthe2016AnnualMeeting,asrequiredinourBy-Laws(noearlierthanOctober22,2016andnolaterthanNovember21,2016).Ifashareholderwouldliketonominateoneormoredirectorsforelectionatthe2017AnnualMeetingoutsideoftheproxyaccessprocess(andwithoutusingRyder'sproxymaterials),heorshemustgiveadvancewrittennoticetousatleast90,butnomorethan120,daysbeforetheone-yearanniversaryofthe2016AnnualMeeting(noearlierthanJanuary6,2017andnolaterthanFebruary5,2017),asrequiredbyourBy-Laws.Ineithercase,thenoticemustincludeinformationregardingboththeproposingshareholderandthedirectornominee.Foradiscussionofthetypesofinformationthatmustbeprovided,pleaserefertothediscussionunder“ProcessforNominatingDirectors”beginningonpage19ofthisproxystatement.Inaddition,thedirectornomineemustsubmitacompletedandsignedquestionnaire.ThisquestionnairewillbeprovidedbytheCorporateSecretaryuponrequestandissimilartotheannualquestionnairecompletedbyallofourdirectorsrelatingtotheirbackground,experienceandindependence.

AlloftherequirementsrelatingtothesubmissionofshareholderproposalsordirectornominationsareincludedinourBy-Laws.AcopyofourBy-LawscanbeobtainedfromourCorporateSecretary.TheBy-LawsarealsoincludedinourfilingswiththeSECwhichareavailableontheSEC’swebsiteatwww.sec.gov.

Electronic Delivery

Thisyear,wehaveagainelectedtotakeadvantageoftheSEC’srulethatallowsustofurnishproxymaterialstoyouonline.Webelieveelectronicdeliveryexpeditesshareholders’receiptofmaterials,whileloweringcostsandreducingtheenvironmentalimpactofourAnnualMeetingbyreducingprintingandmailingoffullsetsofmaterials.OnMarch21,2016,wemailedtoourshareholderstheNoticeregardingInternetavailabilityofproxymaterialscontaininginstructionsonhowtoaccessourproxystatement,annualreportandshareholderletteronline.IfyoureceivedtheNoticebymail,youwillnotreceiveaprintedcopyoftheproxymaterials,unlessyouspecificallyrequestone.TheNoticecontainsinstructionsonhowtorequestapapercopyofthematerials.

Mostshareholderswillreceivetheproxystatementonline.Ifyoureceivedapapercopy,youcanalsoviewthesedocumentsontheInternetbyaccessingtheInvestorRelationspageofourwebsiteatwww.ryder.com.


Other Matters

Ifyouareashareholderofrecordyoumay,ifyouwish,receivefutureproxystatements,annualreportsandanyotheraccompanyingmaterialselectronically.IfyouvoteviatheInternetasdescribedonyourproxycard,youmaysignupforelectronicdeliveryatthesametime.YoumayalsoregisterforelectronicdeliveryoffutureproxymaterialsontheInvestorRelationspageofourwebsiteatwww.ryder.com.

Ifyouelectthisfeature,youwillreceiveane-mailmessagenotifyingyouwhenthematerialsareavailablealongwithawebaddressforviewingthematerialsandinstructionsforvotingbytelephoneorontheInternet.

Weencourageyoutosignupforelectronicdeliveryoffutureproxymaterialsasthiswillallowyoutoreceivethematerialsmorequicklyandwillreduceprintingandmailingcosts.

Householding

WeareonlysendingonesetofNoticesregardingtheInternetavailabilityofproxymaterialsorsetof2016AnnualMeetingmaterialstoshareholderswhosharethesamelastnameandaddress,unlesstheyhavenotifiedusthattheywanttocontinuereceivingmultiplepackages.Thispractice,knownas“householding,”isintendedtoeliminateduplicatemailings,conservenaturalresourcesandhelpreduceprintingandmailingcosts.

Ifyouarearecordshareholderandyouwanttorequestaseparatecopyofthisproxystatementoraccompanying2015annualreportonForm10-KasfiledwiththeSEC(suchreportisavailablefreeofchargeandincludesthefinancialstatementsandschedulesthereto,butnottheexhibits)andshareholderletter,youmaycontactourInvestorRelationsDepartmentbycalling(305)500-4053,inwritingtoRyderSystem,Inc.,InvestorRelationsDepartment,11690N.W.105thStreet,Miami,[email protected],andacopywillbepromptlysenttoyou.Ifyouwishtoreceiveseparatedocumentsinfuturemailings,pleasecontactBroadridgebycalling(866)540-7095orinwritingatBroadridge,HouseholdingDepartment,51MercedesWay,Edgewood,NY11717.Our2015annualreport,theshareholderletterandthisproxystatementarealsoavailablethroughourwebsiteatwww.ryder.com.Acopyofanyexhibittothe2015annualreportonForm10-KwillbeforwardedfollowingreceiptofawrittenrequestforsuchmaterialsaddressedtoourInvestorRelationsDepartment.

Twoormoreshareholderssharinganaddresscanrequestdeliveryofasinglecopyofthe2016AnnualMeetingmaterialsiftheyarereceivingmultiplecopiesbycontactingBroadridgeinthemannersetforthabove.

Ifanomineeholdsyourshares,pleasecontactsuchholderdirectlytoinquireaboutthepossibilityofhouseholding.


Appendix AAmended and Restated 2012 Equity and Incentive Compensation Plan

AMENDED AND RESTATED RYDER SYSTEM, INC.

2012 EQUITY AND INCENTIVE COMPENSATION PLAN

1. PurposeofthePlan

ThepurposeofthisAmendedandRestated2012EquityandIncentiveCompensationPlan(the“Plan”)istoadvancetheinterestsoftheCompanyanditsshareholdersbyprovidingameans(a)toattract,retain,andrewarddirectors,officersandotheremployeesoftheCompanyanditsSubsidiaries,(b)tolinkcompensationtomeasuresoftheCompany’sperformanceinordertoprovideadditionalincentives,includingstock-basedincentivesandcash-basedincentives,tosuchpersonsforthecreationofshareholdervalue,and(c)toenablesuchpersonstoacquireorincreaseaproprietaryinterestintheCompanyinordertopromoteacloseridentityofinterestsbetweensuchpersonsandtheCompany’sshareholders.

ThePlanwasoriginallyeffectiveasofMay4,2012(the“EffectiveDate”).ThisamendedandrestatedPlanwillbeeffectiveasofMay6,2016,subjecttoapprovalbytheCompany’sshareholders(the“AmendmentEffectiveDate”).ChangesmadepursuanttothisamendmentandrestatementshallonlyapplytoAwardsgrantedonoraftertheAmendmentEffectiveDate.AwardsgrantedpriortotheAmendmentEffectiveDateshallcontinuetobegovernedbytheapplicableAwardAgreementsandthetermsofthePlanwithoutgivingeffecttochangesmadepursuanttothisamendmentandrestatement,andtheCommitteeshalladministersuchAwardsinaccordancewiththePlanwithoutgivingeffecttochangesmadepursuanttothisamendmentandrestatement.

2.Definitions

CapitalizedtermsusedinthePlanandnotdefinedelsewhereinthePlanshallhavethemeaningsetforthinthisSection.

2.1“Award”meansaCash-BasedAwardoraShare-BasedAward.

2.2“AwardAgreement”meansawrittendocumentprescribedbytheCommitteeandprovidedtoaParticipantevidencingthegrantofanAwardunderthePlan.

2.3“Beneficiary”meanstheperson(s)ortrust(s)entitledbywillorthelawsofdescentanddistributiontoreceiveanyrightswithrespecttoanAwardthatsurvivesuchParticipant’sdeath,providedthatifatthetimeofaParticipant’sdeath,theParticipanthadonfilewiththeCommitteeawrittendesignationofaperson(s)ortrust(s)toreceivesuchrights,thensuchperson(s)(ifstilllivingatthetimeoftheParticipant’sdeath)ortrust(s)shallbethe“Beneficiary”forpurposesofthePlan.

2.4“Board”meanstheBoardofDirectorsoftheCompany.

2.5“Cash-BasedAward”meansacompensatoryawardmadepursuanttothePlanpursuanttowhichaParticipantreceives,orhastheopportunitytoreceive,cash,otherthananawardpursuanttowhichtheamountofcashisdeterminedbyreferencetothevalueofaspecificnumberofShares.Fortheavoidanceofdoubt,Dividend-EquivalentRightsconstituteCash-BasedAwards.

2.6“Cause”means,unlesstheAwardAgreementprovidesotherwise,(i)fraud,misappropriation,orembezzlementagainsttheCompanyoranyofitsSubsidiariesthatresultsinmaterialorpotentiallymaterialfinancialorreputationalharmtotheCompanyoranyofitsSubsidiaries,(ii)convictionof,orpleaofguiltyornolocontendereto,amisdemeanorinvolvingmoralturpitudeordishonestyorafelony,(iii)materialbreachofanynon-competition,non-solicitation,orconfidentialityagreementwiththeCompanyoranySubsidiary,(iv)willfulandcontinuedfailuretosubstantiallyperformtheParticipant’skeyjobdutiesorresponsibilities(otherthansuchfailureresultingfromtheParticipant’sDisability)thatisnotcuredwithinthirty(30)daysaftertheParticipantisprovidednoticeofsuchfailure,

Table of Contents RyderSystem,Inc.| 2016ProxyStatement A-1


or(v)willfulandmaterialviolationoftheCompany’sPrinciplesofBusinessConductoranyanalogouscodeofethicsorsimilarpolicy.Forpurposesofdetermining“Cause”,noactoromissionbytheParticipantshallbeconsidered“willful”unlesstheBoarddeterminesthatitisdoneoromittedinbadfaithorwithoutreasonablebeliefthattheParticipant’sactionoromissionwasinthebestinterestsoftheCompany.CauseshallbedeterminedinthesolediscretionoftheBoardandtheBoard’sallegationssupportingsuchdeterminationshallbesetforthinawrittennoticetotheParticipant.TheParticipantshallhaveanopportunitywithinten(10)businessdaysafterreceivingsuchnoticetomeetwiththeBoardtodiscusstheBoard’sallegationsofCause.AnygoodfaithdeterminationbytheBoardthattheParticipant’sactionoromissionconstitutes“Cause”shallbeconclusiveontheParticipant.

2.7“ChangeofControl”occurswhen:

(a)anyindividual,entityorgroup(withinthemeaningofSection13(d)(3)or14(d)(2)oftheExchangeAct)(a“Person”)becomesthebeneficialowner,directlyorindirectly,of30%ormoreofthecombinedvotingpoweroftheCompany’soutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectorsoftheCompany;provided,however,thatforpurposesofthissubparagraph(a),thefollowingacquisitionsshallnotconstituteaChangeofControl:(i)anyacquisitionbytheCompanyoranyemployeebenefitplanorplans(orrelatedtrust)oftheCompanyanditssubsidiariesandaffiliatesor(ii)anyacquisitionbyanycorporationpursuanttoatransactionwhichcomplieswithclauses(i),(ii)and(iii)ofsubparagraph(c)below;or

(b)theindividualswho,asoftheEffectiveDate,constitutedtheBoardofDirectorsoftheCompany(the“Board”generallyandasoftheEffectiveDatethe“IncumbentBoard”)ceaseforanyreasontoconstituteatleastamajorityoftheBoard,providedthatanypersonbecomingadirectorsubsequenttotheEffectiveDatewhoseelection,ornominationforelection,wasapprovedbyavoteorbyapprovaloftheproxystatementinwhichsuchpersonisnamedasanomineefordirector,withoutwrittenobjectiontosuchnominationofthepersonscomprisingatleastamajorityoftheIncumbentBoard(otherthananelectionornominationofanindividualwhoseinitialassumptionofofficeisinconnectionwithanactualorthreatenedelectioncontest,assuchtermsareusedinRule14a-11ofRegulation14ApromulgatedundertheExchangeAct)(asineffectonJanuary23,2000))shallbe,forpurposesofthisPlan,consideredasthoughsuchpersonwereamemberoftheIncumbentBoard;or

(c)consummationofareorganization,mergerorconsolidationoftheCompany(a“BusinessCombination”),ineachcase,unless,followingsuchBusinessCombination,(i)allorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheCompany’soutstandingSharesandoutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectorsoftheCompanyimmediatelypriortosuchBusinessCombinationbeneficiallyown,directlyorindirectly,morethan50%of,respectively,thethenoutstandingsharesofcommonstockandthecombinedvotingpowerofthethenoutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectors,asthecasemaybe,ofthecorporationresultingfromsuchBusinessCombination(including,withoutlimitation,acorporationwhichasaresultofsuchtransactionownstheCompanyorallorsubstantiallyalloftheCompany’sassetseitherdirectlyorthroughoneormoresubsidiaries)insubstantiallythesameproportionsastheirownership,immediatelypriortosuchBusinessCombination,oftheCompany’soutstandingSharesandoutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectorsoftheCompany,asthecasemaybe,(ii)noPerson(excludinganycorporationresultingfromsuchBusinessCombinationoranyemployeebenefitplanorplans(orrelatedtrust)oftheCompanyorsuchcorporationresultingfromsuchBusinessCombinationandtheirsubsidiariesandaffiliates)beneficiallyowns,directlyorindirectly,30%ormoreofthecombinedvotingpowerofthethenoutstandingvotingsecuritiesofthecorporationresultingfromsuchBusinessCombinationand(iii)atleastamajorityofthemembersoftheboardofdirectorsofthecorporationresultingfromsuchBusinessCombinationweremembersoftheIncumbentBoardatthetimeoftheexecutionoftheinitialagreement,oroftheactionoftheBoard,providingforsuchBusinessCombination;or

(d)shareholderapprovalofaliquidationordissolutionoftheCompanyor



(e)consummationofasaleofallorsubstantiallyalloftheassetsoftheCompany.

Notwithstandinganythingtothecontraryherein,solelyforthepurposeofdeterminingthetimingofpaymentortimingofdistributionofanycompensationorbenefitthatconstitutes“non-qualifieddeferredcompensation”withinthemeaningofCodeSection409A,aChangeofControlshallnotbedeemedtooccurunderthisPlanunlesstheeventsthathaveoccurredwouldalsoconstitutea“ChangeintheOwnershiporEffectiveControlofaCorporationorintheOwnershipofaSubstantialPortionoftheAssetsofaCorporation”underTreasuryRegulationSection1.409A-3(i)(5),oranysuccessorprovision,andintheeventsuchChangeofControldoesnotconstitute“ChangeintheOwnershiporEffectiveControlofaCorporationorintheOwnershipofaSubstantialPortionoftheAssetsofaCorporation”underTreasuryRegulationSection1.409A-3(i)(5),thetimingofpaymentortimingofdistributionofanycompensationorbenefitthatconstitutes“non-qualifieddeferredcompensation”withinthemeaningofCodeSection409AwilloccurpursuanttothetermsoftheapplicableAwardAgreementwithoutregardtotheChangeofControl.Fortheavoidanceofdoubt,theimmediatelyprecedingsentencewillnotapplyforthepurposeofdeterminingthevestingofanyAwarduponaChangeofControl.

2.8“Code”meanstheInternalRevenueCodeof1986,asamended,includingregulationsthereunderandsuccessorprovisionsandregulationsthereto.

2.9“Committee”meanstheCompensationCommitteeoftheBoard,oranothercommitteeappointedbytheBoardtoadministerthePlanoranypartthereof,ortheBoard,wheretheBoardisactingastheCommitteeorperformingthefunctionsoftheCommittee,assetforthinSection3.

2.10“CommonStock”meanscommonstock,parvalue$0.50pershare,oftheCompany.

2.11“Company”meansRyderSystem,Inc.,acompanyorganizedunderthelawsofthestateofFlorida.

2.12“Disability”meansadeterminationofdisabilityunderthelong-termdisabilityplanoftheCompanyoraSubsidiarythatisapplicabletotheParticipant.

2.13“Dividend-EquivalentRight”meanstherighttoreceiveanamount,calculatedwithrespecttoaShare-BasedAward,whichisdeterminedbymultiplyingthenumberofSharessubjecttotheapplicableAwardbytheper-Sharecashdividend,ortheper-ShareFairMarketValue(asdeterminedbytheCommittee)ofanydividendinconsiderationotherthancash,paidbytheCompanyonShares.

2.14“ExchangeAct”meanstheSecuritiesExchangeActof1934,asamended.

2.15“FairMarketValue”meansthelastreportedsalepriceofaShareduringregulartradinghoursontherelevantdateor(iftherewerenotradesonthatdate)thelatestprecedingdateuponwhichasalewasreportedbythecompositetransactionreportingsystemforsecuritieslistedontheNewYorkStockExchange.

2.16“Full-ValueAward”meansanyShare-BasedAwardgrantedunderthePlanotherthan(a)astockoptionthatrequirestheParticipanttopay(incash,foregonecashcompensation,orotherconsideration,otherthantheperformanceofservices,designatedasacceptablebytheCommittee)atleasttheFairMarketValueoftheSharessubjecttheretoasdeterminedonthedateofgrantofanAwardor(b)astockappreciationrightthatisbasedsolelyontheappreciationoftheSharesunderlyingtheAwardfromtheFairMarketValueoftheSharesasdeterminedonthedateofgrantoftheAward.

2.17“GoodReason”means,unlesstheAwardAgreementprovidesotherwise,theoccurrenceofanyoneofthefollowing,withouttheParticipant’spriorwrittenconsent,(i)theCompanyrequiringtheParticipanttobebasedortoperformservicesatanysiteorlocationmorethanfifty(50)milesfromthethencurrentsiteorlocationatwhichtheParticipantisbased,exceptfortravelreasonablyrequiredintheperformanceoftheParticipant’s



responsibilities(whichdoesnotmateriallyexceedtheleveloftravelrequiredoftheParticipantinthesix-monthperiodimmediatelyprecedingtherequiredrelocation),(ii)amaterialreductionintheParticipant’sbasesalary,annualbonustargetopportunityorlong-termincentivetargetopportunity,(iii)amaterialdiminutionintheParticipant’sduties,responsibilitiesandauthority(otherthanonaccountoftheParticipant’sDisability),or(iv)theCompany’smaterialbreachofanyemploymentagreementorseveranceagreementwiththeParticipant.Fortheavoidanceofdoubt,achangeinreportingrelationshiportitlealoneshallnotconstitute“GoodReason.”AParticipant’sterminationofemploymentshallonlyconstituteaterminationforGoodReasoniftheParticipantprovideswrittennoticetotheCompanyoftheexistenceofGoodReasonwithinninety(90)daysfollowingthedateoftheParticipant’sknowledgeoftheGoodReasoncondition,theCompanydoesnotremedytheconditionwithinthirty(30)daysofreceiptofsuchwrittennotice,andtheParticipantterminatesemploymentwithinninety(90)daysfollowingtheendofthethirty(30)daycureperiod.

2.18“IncentiveStockOption”meansastockoptiontopurchaseSharesthatisintendedtobean“incentivestockoption”withinthemeaningofSections421and422oftheCode,asnowconstitutedorsubsequentlyamended,orpursuanttoasuccessorprovisionoftheCode,andwhichisdesignatedasanIncentiveStockOptionintheapplicableAwardAgreement.

2.19“Non-EmployeeDirector”meansamemberoftheBoardwhoisnototherwiseemployedbytheCompanyoranySubsidiary.

2.20“Participant”meansanyemployee,directororotherindividualwhohasbeengrantedanAwardunderthePlan.

2.21“QualifiedMember”meansamemberoftheCommitteewhoisa“non-employeedirector”oftheCompanyasdefinedinRule16b-3(b)(3)undertheExchangeAct,an“outsidedirector”withinthemeaningofRegulation§1.162-27underCodeSection162(m)andan“independentdirector”withinthemeaningoftheapplicablestockexchangerules.

2.22“Share-BasedAward”meansacompensatoryawardmadepursuanttothePlanpursuanttowhichaParticipantreceives,orhastheopportunitytoreceive,Shares,orreceives,orhastheopportunitytoreceive,cash,wheretheamountofcashisdeterminedbyreferencetothevalueofaspecificnumberofShares.Share-BasedAwardsshallinclude,withoutlimitation,stockoptions,stockappreciationrights,restrictedstock,restrictedstockunits,stockunits,andbonusshares.

2.23“Shares”meanssharesofCommonStockandsuchothersecuritiesasmaybesubstitutedorresubstitutedforSharespursuanttoSection7.

2.24“Subsidiary”meansanentitythatis,eitherdirectlyorthroughoneormoreintermediaries,controlledbytheCompany.

2.25“TenPercentStockholder”meansapersonowningstockpossessingmorethan10%ofthetotalcombinedvotingpowerofallclassesofstockoftheCompanyandanySubsidiaryorparentcorporationoftheCompany.

3.Administration

3.1Committee.TheCompensationCommitteeoftheBoardshalladministerthePlan,unlesstheBoardshallappointadifferentcommittee.AtanytimethatamemberoftheCommitteeisnotaQualifiedMember,(a)anyactionoftheCommitteerelatingtoanAwardintendedbytheCommitteetoqualifyas“performance-basedcompensation”withinthemeaningofCodeSection162(m)andregulationsthereundermaybetakenbyasubcommittee,designatedbytheCommitteeortheBoard,composedsolelyoftwoormoreQualifiedMembers,and



(b)anyactionrelatingtoanAwardgrantedortobegrantedtoaParticipantwhoisthensubjecttoSection16oftheExchangeActinrespectoftheCompanymaybetakeneitherbytheBoard,asubcommitteeoftheCommitteeconsistingoftwoormoreQualifiedMembersorbytheCommitteebutwitheachsuchmemberwhoisnotaQualifiedMemberabstainingorrecusinghimselforherselffromsuchaction,providedthat,uponsuchabstentionorrecusal,theCommitteeremainscomposedoftwoormoreQualifiedMembers.Suchaction,authorizedbysuchasubcommitteeorbytheCommitteeupontheabstentionorrecusalofsuchnon-QualifiedMember(s),shallbetheactionoftheCommitteeforpurposesofthePlan.OtherprovisionsofthePlannotwithstanding,theBoardmayperformanyfunctionoftheCommitteeunderthePlan,andthatauthorityspecificallyreservedtotheBoardunderthetermsofthePlan,theCompany’sArticlesofIncorporation,By-Laws,orapplicablelawshallbeexercisedbytheBoardandnotbytheCommittee.TheBoardshallserveastheCommitteeinrespectofanyAwardsmadetoanyNon-EmployeeDirector.

3.2PowersandDutiesofCommittee.InadditiontothepowersanddutiesspecifiedelsewhereinthePlan,theCommitteeshallhavefullauthorityanddiscretionto:

(a)adopt,amend,suspend,andrescindsuchrulesandregulationsandappointsuchagentsastheCommitteemaydeemnecessaryoradvisabletoadministerthePlan,includingrulesandregulationsrelatingtosub-plansestablishedforthepurposeofsatisfyingapplicableforeignlaws;

(b)correctanydefectorsupplyanyomissionorreconcileanyinconsistencyinthePlanandtoconstrueandinterpretthePlanandanyAward,rulesandregulations,AwardAgreement,orotherinstrumenthereunder;

(c)makedeterminationsrelatingtoeligibilityforandentitlementsinrespectofAwards,andtomakeallfactualfindingsrelatedthereto;and

(d)makeallotherdecisionsanddeterminationsasmayberequiredunderthetermsofthePlanorastheCommitteemaydeemnecessaryoradvisablefortheadministrationofthePlan.

AlldeterminationsanddecisionsoftheCommitteeshallbefinalandbindinguponaParticipantoranypersonclaiminganyrightsunderthePlanfromorthroughanyParticipant,andtheParticipantorsuchotherpersonmaynotfurtherpursuehisorherclaiminanycourtoflaworequityorotherarbitralproceeding.

3.3DelegationbyCommittee.Excepttotheextentprohibitedbyapplicablelawortheapplicablerulesofastockexchange,orasprovidedinSection5.2,theCommitteemaydelegate,onsuchtermsandconditionsasitdeterminesinitssoleandabsolutediscretion,tooneormoreseniorexecutivesoftheCompany(i)theauthoritytomakegrantsofAwardstoofficers(otherthanexecutiveofficers)andemployeesoftheCompanyandanySubsidiaryorotherindividuals(otherthanNon-EmployeeDirectors)whoprovideservicestotheCompanyoranySubsidiaryand(ii)otheradministrativeresponsibilities.AnysuchallocationordelegationmayberevokedbytheCommitteeatanytime.

3.4LimitationofLiability.EachmemberoftheCommitteeshallbeentitledto,ingoodfaith,relyoractuponanyreportorotherinformationfurnishedtohimorherbyanyofficerorotheremployeeoftheCompanyoranySubsidiary,theCompany’sindependentcertifiedpublicaccountants,oranyexecutivecompensationconsultant,legalcounsel,orotherprofessionalretainedbytheCompanytoassistintheadministrationofthePlan.NomemberoftheCommittee,noranyofficeroremployeeoftheCompanyactingonbehalfoftheCommittee,shallbepersonallyliableforanyaction,determination,orinterpretationtakenormadeingoodfaithwithrespecttothePlan,andallmembersoftheCommitteeandanyofficeroremployeeoftheCompanyactingonbehalfoftheCommitteeormembersthereofshall,totheextentpermittedbylaw,befullyindemnifiedandprotectedbytheCompanywithrespecttoanysuchaction,determination,orinterpretation.



4.Awards

4.1Eligibility.TheCommitteeshallhavethediscretiontoselectAwardrecipientsfromamongthefollowingcategoriesofeligiblerecipients:(a)individualswhoareemployees(includingofficers)oftheCompanyoranySubsidiary,(b)Non-EmployeeDirectors,and(c)otherindividualswhoprovideservicestotheCompanyoranySubsidiary.

4.2TypeofAwards.TheCommitteeshallhavethediscretiontodeterminethetypeofAwardtobegrantedtoaParticipant.TheCommitteeisauthorizedtograntAwardsasabonus,ortograntAwardsinlieuofobligationsoftheCompanyoranySubsidiarytopaycashorgrantotherawardsunderotherplansorcompensatoryarrangements,totheextentpermittedbysuchotherplansorarrangements.SharesissuedpursuanttoanAwardinthenatureofapurchaseright(e.g.,stockoptions)shallbepurchasedforsuchconsideration,paidforatsuchtimes,bysuchmethods,andinsuchforms,includingcash,Shares,otherAwards,orotherconsideration,astheCommitteeshalldetermine.

4.3TermsandConditionsofAwards.

(a)TheCommitteeshalldeterminethesizeofeachAwardtobegranted(including,whereapplicable,thenumberofSharestowhichanAwardwillrelate),andallothertermsandconditionsofeachsuchAward(including,butnotlimitedto,anyexerciseprice,grantprice,orpurchaseprice,anyrestrictionsorconditionsrelatingtotransferability,forfeiture,exercisability,orsettlementofanAward,andanyscheduleorperformanceconditionsforthelapseofsuchrestrictionsorconditions,andaccelerationsormodificationsthereof,basedineachcaseonsuchconsiderationsastheCommitteeshalldetermine).TheCommitteemaydeterminewhether,towhatextent,andunderwhatcircumstancesanAwardmaybesettled,ortheexercisepriceofanAwardmaybepaid,incash,Shares,otherAwards,orotherconsideration,oranAwardmaybecanceled,forfeited,orsurrendered.TherightofaParticipanttoexerciseorreceiveagrantorsettlementofanyAward,andthetimingthereof,maybesubjecttosuchperformanceconditionsasmaybespecifiedbytheCommittee.TheCommitteemayusesuchbusinesscriteriaandmeasuresofperformanceasitmaydeemappropriateinestablishingperformanceconditions,andmayexerciseitsdiscretiontoreduceorincreasetheamountspayableunderanyAwardsubjecttoperformanceconditions,exceptaslimitedunderSection5.1inthecaseofaPerformanceAwardintendedtoqualifyunderCodeSection162(m).

(b)Notwithstandingtheforegoing,thefollowingconditionsshallapplytoAwardsunderthePlan:

(i)ExceptwithrespecttoSubstituteAwards,thepriceperShareatwhichSharesmaybepurchasedupontheexerciseofastockoptionshallnotbelessthanonehundredpercent(100%)oftheFairMarketValue(or,inthecaseofanIncentiveStockOptiongrantedtoaTenPercentStockholder,110%oftheFairMarketValue)onthedateofgrantofsuchstockoption;

(ii)ExceptwithrespecttoSubstituteAwards,withrespecttostockappreciationrights,thepriceperSharefromwhichstockappreciationismeasuredshallnotbelessthanonehundredpercent(100%)oftheFairMarketValueofsuchShareonthedateofgrantofthestockappreciationright;

(iii)TheperiodduringwhichanAwardmayremainoutstandingshallnotexceedten(10)years(or,inthecaseofanIncentiveStockOptiongrantedtoaTenPercentStockholder,five(5)years)fromthedatetheAwardisgranted;

(iv)Dividend-EquivalentRightsshallnotbegrantedwithrespecttostockoptionsorstockappreciationrights;



(v)Dividend-EquivalentRightsshallnotbepaidwithrespecttounvestedperformancesharesandperformanceunits(providedthatDividend-EquivalentRightsmayaccrueonsuchunvestedAwardsandbepaidtotheextenttheAwardsvest);

(vi)Share-BasedAwardsgrantedunderthePlanshallvestoveraperiodthatisnotlessthanone(1)yearfromthedateofgrant.Inaddition,subjecttoanyadjustmentsmadeinaccordancewithSection7below,upto5%oftheAggregateShareLimitsetforthinSection6asoftheAmendmentEffectiveDatemaybegrantedwithoutregardtotheminimumvestingrequirement;

(vii)TheCommitteeshallhavetheauthoritytoacceleratevestinginconnectionwithaParticipant’sdeath,retirement,Disability,intheeventofaChangeofControloracorporatetransactionoreventdescribedinSection7,orinothercircumstancesastheCommitteedeemsappropriate;

(viii)NoIncentiveStockOption(otherthananIncentiveStockOptionthatmaybeassumedorissuedbytheCompanyinconnectionwithatransactiontowhichSection424(a)oftheCodeapplies)maybegrantedtoapersonwhoisnoteligibletoreceiveanIncentiveStockOptionundertheCode;and

(ix)AnyAwardsgrantedtoNon-EmployeeDirectorsshallbegrantedonanon-discretionarybasisbasedonaformulaapprovedbytheCommittee.

4.4NoRepricingofStockOptionsorStockAppreciationRightsNoReloads.ExceptasotherwisepermittedbySection7,theCompanymaynot,withoutobtainingshareholderapproval,(a)amendthetermsofoutstandingstockoptionsorstockappreciationrightstoreducetheexercisepriceofsuchoutstandingstockoptionsorbasepriceofsuchstockappreciationrights,(b)canceloutstandingstockoptionsorstockappreciationrightsinexchangeforstockoptionsorstockappreciationrightswithanexercisepriceorbaseprice,asapplicable,thatislessthantheexercisepriceorbasepriceoftheoriginalstockoptionsorstockappreciationrightsor(c)canceloutstandingstockoptionsorstockappreciationrightswithanexercisepriceorbaseprice,asapplicable,abovethecurrentstockpriceinexchangeforcashorothersecurities,exceptinconnectionwithacorporatetransactioninvolvingtheCompany(includingaChangeofControl).TheCompanywillnotgrantanystockoptionsorstockappreciationrightswithautomaticreloadfeatures.

4.5Stand-Alone,Additional,Tandem,andSubstituteAwards.SubjecttoSection4.4,AwardsgrantedunderthePlanmay,inthediscretionoftheCommittee,begrantedeitheraloneorinadditionto,intandemwith,orinsubstitutionorexchangefor,anyotherAwardoranyawardgrantedunderanotherplanoftheCompany,anySubsidiary,oranybusinessentitytobeacquiredbytheCompanyoraSubsidiary,oranyotherrightofaParticipanttoreceivepaymentfromtheCompanyoranySubsidiary.

5.PerformanceAwards

5.1PerformanceAwardsGrantedtoDesignatedCoveredEmployees.IftheCommitteedeterminesthatanAwardtobegrantedtoaneligiblepersonwhoisdesignatedbytheCommitteeaslikelytobeaCoveredEmployee(asdefinedbelowinSection5.3)shouldqualifyas“performance-basedcompensation”forpurposesofCodeSection162(m),thegrant,exercise,and/orsettlementofsuchAward(a“PerformanceAward”)shallbecontingentuponachievementofpreestablishedperformancegoalsandothertermssetforthinthisSection5.1.ThisSection5.1shallnotapplytoAwardsthatotherwisequalifyas“performance-basedcompensation”byreasonofRegulation§1.162-27(e)(2)(vi)(relatingtocertainstockoptionsandstockappreciationrights).

(a)PerformanceGoalsGenerally.TheperformancegoalsforsuchPerformanceAwardsshallconsistofoneormorebusinesscriteriaandatargetedlevelorlevelsofperformancewithrespecttoeachsuchcriteria,asspecifiedbytheCommitteeconsistentwiththisSection5.1.PerformancegoalsshallbeobjectiveandshallotherwisemeettherequirementsofCodeSection162(m)andregulationsthereunder(including



Regulation§1.162-27andsuccessorregulationsthereto),includingtherequirementthatthelevelorlevelsofperformancetargetedbytheCommitteeresultintheachievementofperformancegoalsbeing“substantiallyuncertain.”TheCommitteemaydeterminethatsuchPerformanceAwardsshallbegranted,exercised,and/orsettleduponachievementofanyoneperformancegoalorthattwoormoreoftheperformancegoalsmustbeachievedasaconditiontogrant,exercise,and/orsettlementofsuchPerformanceAwards.PerformancegoalsmaydifferforPerformanceAwardsgrantedtoanyoneParticipantortodifferentParticipants.

(b)BusinessCriteria.OneormoreofthefollowingbusinesscriteriafortheCompany,onaconsolidatedbasis,and/orforspecifiedSubsidiaries,divisions,orotherbusinessunitsoftheCompany(wherethecriteriaareapplicable),shallbeusedbytheCommitteeinestablishingperformancegoalsforsuchPerformanceAwards:(i)earningspershare;(ii)revenues;(iii)cashflow;(iv)cashflowreturnoninvestment;(v)returnonnetassets,returnonassets,returnoninvestment,returnoncapital,returnonequity;profitability;(vi)economicvalueadded(“EVA”);(vii)operatingmarginsorprofitmargins;(viii)incomeorearningsbeforeoraftertaxes;pretaxearnings;pretaxearningsbeforeinterest,depreciationandamortization;operatingearnings;pretaxoperatingearnings,beforeorafterinterestexpenseandbeforeorafterincentives,andextraordinaryorspecialitems;netincome;(ix)totalstockholderreturnorstockprice;(x)bookvaluepershare;(xi)expensemanagement;improvementsincapitalstructure;workingcapital;costs;and(xii)anyoftheabovegoalsascomparedtotheperformanceofapublishedorspecialindexdeemedapplicablebytheCommitteeincluding,butnotlimitedto,theStandard&Poor’s500StockIndexoragroupofcomparatorcompanies.EVAmeanstheamountbywhichabusinessunit’searningsexceedthecostoftheequityanddebtcapitalusedbythebusinessunitduringtheperformanceperiod,asdeterminedbytheCommittee.Incomeofabusinessunitmaybebeforepaymentofbonuses,capitalcharges,unusualorinfrequentlyoccurringincomeorexpense,andgeneralandadministrativeexpensesfortheperformanceperiod,ifsospecifiedbytheCommittee.

(c)PerformancePeriod;TimingforEstablishingPerformanceAwardTerms.AchievementofperformancegoalsinrespectofsuchPerformanceAwardsshallbemeasuredoveraperformanceperiodasspecifiedbytheCommittee.Performancegoals,amountspayableuponachievementofsuchgoals,andothermaterialtermsofPerformanceAwardsshallbeestablishedbytheCommittee(i)whiletheperformanceoutcomeforthatperformanceperiodissubstantiallyuncertainand(ii)nomorethanninety(90)daysafterthecommencementoftheperformanceperiodtowhichtheperformancegoalrelatesor,ifless,thenumberofdayswhichisequalto25%oftherelevantperformanceperiod.

(d)PerformanceAwardPool.TheCommitteemayestablishaPerformanceAwardpool,whichshallbeanunfundedpool,forpurposesofmeasuringperformanceoftheCompanyinconnectionwithPerformanceAwards.TheamountofsuchPerformanceAwardpoolshallbebasedupontheachievementofaperformancegoalorgoalsbasedononeormoreofthebusinesscriteriasetforthinSection5.1(b)hereofduringthegivenperformanceperiod,asspecifiedbytheCommitteeinaccordancewithSection5.1(c)hereof.TheCommitteemayspecifytheamountofthePerformanceAwardpoolasapercentageofanyofsuchbusinesscriteria,apercentagethereofinexcessofathresholdamount,orasanotheramountwhichneednotbearastrictlymathematicalrelationshiptosuchbusinesscriteria.Insuchcase,PerformanceAwardsmaybegrantedasrightstopaymentofaspecifiedportionoftheAwardpool,andsuchgrantsshallbesubjecttotherequirementsofSection5.1(c).

(e)SettlementofPerformanceAwards;OtherTerms.SettlementofsuchPerformanceAwardsshallbeincash,Shares,orotherAwards,inthediscretionoftheCommittee.TheCommitteemay,initsdiscretion,reducetheamountofasettlementotherwisetobemadeinconnectionwithsuchPerformanceAwards,butmaynotexercisediscretiontoincreaseanysuchamountpayabletoaCoveredEmployeeinrespectofaPerformanceAwardsubjecttothisSection5.1.TheCommitteeshallspecifythecircumstancesinwhichsuchPerformanceAwardsshallbepaidorforfeitedintheeventofterminationofemploymentbytheParticipantpriortotheendofaperformanceperiodorsettlementofPerformanceAwards.



(f)ImpactofUnusualorInfrequentlyOccurringItemsorChangesinAccounting.Totheextentapplicable,thedeterminationofachievementofperformancegoalsforPerformanceAwardsshallbemadeinaccordancewithU.S.generallyacceptedaccountingprinciples(“GAAP”)andamannerconsistentwiththemethodsusedintheCompany’sauditedfinancialstatements,and,unlesstheCommitteedecidesotherwisewithintheperioddescribedinSection5.1(c),withoutregardto(i)unusualorinfrequentlyoccurringitemsasdeterminedbytheCompany’sindependentpublicaccountantsinaccordancewithGAAP,(ii)changesinaccountingmethods,or(iii)non-recurringacquisitionexpensesandrestructuringcharges.Notwithstandingtheforegoing,incalculatingoperatingearningsoroperatingincome(includingonapersharebasis),theCommitteemay,withintheperioddescribedinSection5.1(c),providethatsuchcalculationshallbemadeonthesamebasisasreflectedinareleaseoftheCompany’searningsforapreviouslycompletedperiodasspecifiedbytheCommittee.

5.2WrittenDeterminations.DeterminationsbytheCommitteeastotheestablishmentofperformancegoals,theamountpotentiallypayableinrespectofPerformanceAwards,theachievementofperformancegoalsrelatingtoPerformanceAwards,andtheamountofanyfinalPerformanceAwardshallberecordedinwriting.Specifically,theCommitteeshallcertifyinwriting,inamannerconformingtoapplicableregulationsunderCodeSection162(m),priortosettlementofeachPerformanceAward,thattheperformancegoalsandothermaterialtermsofthePerformanceAwarduponwhichsettlementofthePerformanceAwardwasconditionedhavebeensatisfied.ExceptassetforthinSection3.1(a)above,theCommitteemaynotdelegateanyresponsibilityrelatingtosuchPerformanceAwards,andallsuchresponsibilityrelatingtoPerformanceAwardsshallbecarriedoutbytheCommitteeorbyasubcommitteedesignatedbytheCommitteeortheBoard,composedsolelyoftwoormoreQualifiedMembers.

5.3StatusofSection5.1AwardsunderCodeSection162(m).ItistheintentoftheCompanythatPerformanceAwardsunderSection5.1constitute“performance-basedcompensation”withinthemeaningofCodeSection162(m)andregulationsthereunder.Accordingly,thetermsofSections5.1,5.2and5.3,includingthedefinitionsofCoveredEmployeeandothertermsusedtherein,shallbeinterpretedinamannerconsistentwithCodeSection162(m)andregulationsthereunder.Theforegoingnotwithstanding,becausetheCommitteecannotdeterminewithcertaintywhetheragivenParticipantwillbeaCoveredEmployeewithrespecttoafiscalyearthathasnotyetbeencompleted,theterm“CoveredEmployee”asusedhereinshallmeanonlyapersondesignatedbytheCommittee,atthetimeofgrantofaPerformanceAward,aslikelytobeaCoveredEmployeewithrespecttoaspecifiedfiscalyear.IfanyprovisionofthePlanasineffectonthedateofadoptionofanyagreementsrelatingtoPerformanceAwardsdoesnotcomplyorisinconsistentwiththerequirementsofCodeSection162(m)orregulationsthereunder,suchprovisionshallbeconstruedordeemedamendedtotheextentnecessarytoconformtosuchrequirements.

6.LimitationsonAwards

6.1AggregateNumberofSharesAvailableforAwards.TheaggregatenumberofSharesthatmaybedeliveredtoParticipantsortheirBeneficiariesaftertheAmendmentEffectiveDatepursuanttoallAwardsgrantedunderthePlanshallnotexceedthesumofthefollowing(a)3,200,000Shares,plus(b)thenumberofSharessubjecttooutstandingAwardsunderthePlanasofFebruary12,2016(2,022,048Shares),plus(c)267,265Shares,whichisthenumberavailableforgrantofAwardsunderthePlanasofFebruary12,2016subjecttoadjustmentsmadeinaccordancewithSection7below(the“AggregateShareLimit”).AlloftheauthorizedSharesmaybegrantedasIncentiveStockOptions.Notwithstandingtheforegoingsentence,theaggregateFairMarketValue(determinedasofthetimetheoptionisgranted)oftheShareswithrespecttowhichIncentiveStockOptionsareexercisableforthefirsttimebyaneligibleemployeeduringanyfiscalyear(underallsuchplansoftheCompanyandofanySubsidiaryorparentcorporationoftheCompany)maynotexceed$100,000.



6.2SourceofShares.SharesofCommonStockissuedunderthePlanmaybeauthorizedbutunissuedsharesofCommonStockorreacquiredsharesofCommonStock,includingsharespurchasedbytheCompanyontheopenmarketforpurposesofthePlan.

6.3ShareCounting.

(a)TheAggregateShareLimitshallbereducedasfollows:(i)foreachSharethatisdeliveredpursuanttoaFull-ValueAward,theAggregateShareLimitshallbereducedbytwoShares(i.e.,ona1:2ratio),and(ii)foreachSharethatisdeliveredpursuanttoastockoptionorstockappreciationright,theAggregateShareLimitshallbereducedbyoneShare(i.e.,ona1:1ratio).

(b)IfandtotheextentstockoptionsorstockappreciationrightsgrantedunderthePlanterminate,expire,orarecanceled,forfeited,exchangedorsurrenderedwithouthavingbeenexercised,andifandtotheextentthatanyFull-ValueAwardsareforfeitedorterminated,orotherwisearenotpaidinfull,theSharesreservedforsuchShare-BasedAwardsshallagainbeavailableforpurposesofthePlan.Shareswithheldinpaymentoftheexercisepriceofastockoption,andShareswithheldforpaymentoftaxeswithrespecttostockoptionsandstockappreciationrights,shallnotbeavailableforre-issuanceunderthePlanandshallreducetheAggregateShareLimitona1:1ratio.ShareswithheldortenderedtotheCompanybytheParticipantforpaymentoftaxeswithrespecttoFull-ValueAwardsshallnotreducetheAggregateShareLimitandshallbeavailableforre-issuanceunderthePlan.Ifstockappreciationrightsaregranted,thefullnumberofSharessubjecttothestockappreciationrightsshallbeconsideredissuedunderthePlanandshallreducetheAggregateShareLimitona1:1ratio,withoutregardtothenumberofSharesdelivereduponexerciseofthestockappreciationrights.TotheextentthatanyShare-BasedAwardsarepaidincash,andnotinShares,suchAwardsshallnotreducetheAggregateShareLimit.

(c)TheprovisionsofthisSection6.3shallapplyonlyforpurposesofdeterminingtheaggregatenumberofSharesthatmaybeissuedunderthePlan,butshallnotapplyforpurposesofdeterminingthemaximumnumberofShareswithrespecttowhichShare-BasedAwardsmaybegrantedtoanyindividualParticipantunderthePlan.IfSharesarerepurchasedontheopenmarketwiththeproceedsoftheexercisepriceofstockoptions,suchSharesmaynotagainbemadeavailableforissuanceunderthePlan.

6.4PerParticipantLimitationonShare-BasedAwards.Inanycalendaryear,noParticipantmaybegrantedanyShare-BasedAwards(including,fortheavoidanceofdoubt,stockoptions(includingIncentiveStockOptions)orstockappreciationrights)thatrelatetomorethan500,000Shares,subjecttoadjustmentsmadeinaccordancewithSection7below.IfthenumberofSharesultimatelypayableinrespectofanAwardisafunctionoffutureachievementofperformancetargets,thenforpurposesofthislimitation,thenumberofSharestowhichsuchAwardrelatesshallequalthenumberofSharesthatwouldbepayableassumingmaximumperformancewasachieved.

6.5PerParticipantLimitationonCash-BasedAwardsotherthanDividend-EquivalentRights.Inanycalendaryear,noParticipantmaybegrantedCash-BasedAwards(excludingDividend-EquivalentRights)thatcanbesettledformorethan$5,000,000intheaggregate.

6.6PerParticipantLimitationonDividendsandDividend-EquivalentRights.FordividendsandDividend-EquivalentRightsthatareintendedtoqualifyas“performance-basedcompensation”forpurposesofCodeSection162(m),themaximumamountofdividendsandDividend-EquivalentRightsthataParticipantmayaccrueinanycalendaryearwithrespecttoPerformanceAwardsgrantedtoanyindividualemployeeunderthePlanmaynotexceed$500,000.

6.7PerNon-EmployeeDirectorLimitation.ThemaximumgrantdatevalueofSharessubjecttoAwardsgrantedtoanyNon-EmployeeDirectorduringanyonecalendaryear,takentogetherwithanycashfees



payabletosuchNon-EmployeeDirectorforservicesrenderedduringthecalendaryear,shallnotexceed$500,000intotalvalue.Forpurposesofthislimit,thevalueofsuchAwardsshallbecalculatedbasedonthegrantdatefairvalueofsuchAwardsforfinancialreportingpurposes.

6.8Acquisitions.InconnectionwiththeacquisitionofanybusinessbytheCompanyoranyofitsSubsidiaries,anyoutstandingequitygrantswithrespecttostockoftheacquiredcompanymaybeassumedorreplacedbyAwardsunderthePlanuponsuchtermsandconditionsastheCommitteedeterminesinitssolediscretion.SharessubjecttoanysuchoutstandinggrantsthatareassumedorreplacedbyAwardsunderthePlaninconnectionwithanacquisition(“SubstituteAwards”)shallnotreducetheAggregateShareLimit,consistentwithapplicablestockexchangerequirements.NotwithstandinganyprovisionofthePlantothecontrary,SubstituteAwardsshallhavesuchtermsastheCommitteedeemsappropriate,includingwithoutlimitationexercisepricesorbasepricesondifferenttermsthanthosedescribedherein.IntheeventthattheCompanyassumesashareholder-approvedequityplanofanacquiredcompany,availableSharesundersuchassumedplan(afterappropriateadjustmentstoreflectthetransaction)maybeissuedpursuanttoAwardsunderthisPlanandshallnotreducetheAggregateShareLimit,subjecttoapplicablestockexchangerequirements.

7.Adjustments

IntheeventofanychangeintheoutstandingSharesbyreasonofanyreorganization,recapitalization,merger,amalgamation,consolidation,spin-off,combinationorexchangeofShares,repurchase,liquidation,dissolutionorothercorporateexchange,anylarge,specialandnon-recurringdividendordistributiontoshareholders,orothersimilarcorporatetransaction(includingaChangeofControl),theCommitteeshallmakesuchsubstitutionoradjustment,ifany,asitdeemstobeequitableandinordertopreserve,withoutenlarging,therightsofParticipants,asto(a)thenumberandkindofShareswhichmaybedeliveredpursuanttoSections6.1,6.4and6.7,(b)theratiosdescribedinSection6.3(a),(c)thenumberandkindofSharessubjecttoordeliverableinrespectofoutstandingAwards,and(d)theexerciseprice,grantpriceorpurchasepricerelatingtoanyAward.TheCommitteewillalsomakesuchsubstitutionsoradjustments,includingasdescribedin(a),(b),(c)or(d)above,asitdeemsfairandequitabletotheParticipantsasaresultofanySharedividendorsplitdeclaredbytheCompany.Inaddition,theCommitteeisauthorizedtomakeadjustmentsinthetermsandconditionsof,andthecriteriaincludedin,Awards(includingcancellationofAwardsinexchangefortheintrinsic(i.e.,in-the-money)value,ifany,ofthevestedportionthereof,substitutionofAwardsusingsecuritiesorotherobligationsofasuccessororotherentity,accelerationoftheexpirationdateforAwards,oradjustmenttoperformancegoalsinrespectofAwards)inrecognitionofunusualornonrecurringevents(including,withoutlimitation,aChangeofControl,eventsdescribedintheprecedingsentences,andacquisitionsanddispositionsofbusinessesandassets)affectingtheCompany,anySubsidiaryoranybusinessunit,orthefinancialstatementsoftheCompanyoranySubsidiary,orinresponsetochangesinapplicablelaws,regulations,oraccountingprinciples.Notwithstandingtheforegoing,ifanysucheventwillresultintheacquisitionofallorsubstantiallyalloftheCompany’soutstandingShares,thenifthedocumentgoverningsuchacquisition(e.g.,mergeragreement)specifiesthetreatmentofoutstandingAwards,suchtreatmentshallgovernwithouttheneedforanyactionbytheCommittee.

8.ChangeofControl

8.1AssumptionofOutstandingAwards.UponaChangeofControlwheretheCompanyisnotthesurvivingcorporation(orsurvivesonlyasasubsidiaryofanothercorporation),unlessprovidedotherwiseintheapplicableAwardAgreement,(a)alloutstandingAwardsthatarenotexercisedorpaidatthetimeoftheChangeofControlshallbeassumedby,orreplacedwithAwardsthathavecomparabletermsandvalueby,thesurvivingcorporation(oraparentorsubsidiaryofthesurvivingcorporation)and(b)anyoutstandingperformance-basedawardswillbedeemedearnedatthegreaterofthetargetlevelandtheactualperformancelevelatthedateoftheChangeofControlwithrespecttoallopenperformanceperiods,andwillcontinuetobesubjecttotime-based



vestingfollowingtheChangeofControlinaccordancewiththeoriginalperformanceperiod.AfteraChangeofControl,referencestothe“Company”astheyrelatetoemploymentmattersshallincludethesuccessoremployer.

8.2VestingUponCertainTerminationsofEmploymentUponorFollowingaChangeofControl.UnlesstheCommitteedeterminesotherwiseorasprovidedintheapplicableAwardAgreement,ifaParticipant’semploymentorserviceisterminatedbytheCompanywithoutCause,ortheParticipantterminatesemploymentforGoodReason,ineithercaseuponorwithintwenty-four(24)monthsfollowingaChangeofControl,theParticipant’soutstandingAwardsshallbecomefullyvestedasofthedateofsuchtermination.

8.3OtherAlternatives.Notwithstandingtheforegoing,intheeventofaChangeofControl,theCommittee,init'sdiscretion,maytakeanyofthefollowingactionswithrespecttoanyoralloutstandingAwards,withouttheconsentofanyParticipant:(a)theCommitteemaydeterminethatParticipantsshallreceiveapaymentinsettlementofoutstandingrestrictedstockunits,stockunitsorCash-BasedAwards,insuchamountandformasmaybedeterminedbytheCommittee;(b)theCommitteemayrequirethatParticipantssurrendertheiroutstandingstockoptionsandstockappreciationrightsinexchangeforapaymentbytheCompany,incashorCommonStockasdeterminedbytheCommittee,inanamountequaltotheamount,ifany,bywhichthethenFairMarketValueofthesharesofCommonStocksubjecttotheParticipant’sunexercisedstockoptionsandstockappreciationrightsexceedsthestockoptionexercisepriceorstockappreciationrightbaseprice,and(c)theCommitteemaymodifythetermsofAwardstoaddevents,conditionsorcircumstancesuponwhichthevestingofsuchAwardsorlapseofrestrictionsthereonwillaccelerate.Anysuchsurrender,terminationorpaymentshalltakeplaceasofthedateoftheChangeofControlorsuchotherdateastheCommitteemayspecify.Withoutlimitingtheforegoing,ifthepershareFairMarketValueoftheCommonStockdoesnotexceedthepersharestockoptionexercisepriceorstockappreciationrightbaseprice,asapplicable,theCompanyshallnotberequiredtomakeanypaymenttotheParticipantuponsurrenderofthestockoptionorstockappreciationright.SimilaractionstothosespecifiedinthisSection8.3maybetakenintheeventofamergerorothercorporatereorganizationthatdoesnotconstituteaChangeofControl.

9.GeneralProvisions

9.1CompliancewithLawsandObligations.TheCompanyshallnotbeobligatedtoissueordeliverSharesinconnectionwithanyAwardortakeanyotheractionunderthePlaninatransactionsubjecttotheregistrationrequirementsofanyapplicablesecuritieslaw,anyrequirementunderanylistingagreementbetweentheCompanyandanysecuritiesexchangeorautomatedquotationsystem,oranyotherlaw,regulation,orcontractualobligationoftheCompany,untiltheCompanyissatisfiedthatsuchlaws,regulations,andotherobligationsoftheCompanyhavebeencompliedwithinfull.CertificatesrepresentingSharesissuedunderthePlanwillbesubjecttosuchstop-transferordersandotherrestrictionsasmaybeapplicableundersuchlaws,regulations,andotherobligationsoftheCompany,includinganyrequirementthatalegendorlegendsbeplacedthereon.

9.2LimitationsonTransferability.AwardsandotherrightsunderthePlanwillnotbetransferablebyaParticipantexcepttoaBeneficiaryintheeventoftheParticipant’sdeath(totheextentanysuchAward,byitsterms,survivestheParticipant’sdeath),and,ifexercisable,shallbeexercisableduringthelifetimeofaParticipantonlybysuchParticipantorhisguardianorlegalrepresentative;provided,however,that,ifandonlytotheextentpermittedbytheCommittee,AwardsandotherrightshereundermaybetransferredduringthelifetimeoftheParticipant,tofamilymembers(andtrustsorotherentitiesforthebenefitofParticipantsandfamilymembers)forpurposesoftheParticipant’sestateplanning,ortocharitiesforcharitablepurposes(ineachcaseasdeterminedbytheCommittee),andmaybeexercisedbysuchtransfereesinaccordancewiththetermsofsuchAward.AwardsandotherrightsunderthePlanmaynotbepledged,mortgaged,hypothecated,orotherwiseencumbered,andshallnotbesubjecttotheclaimsofcreditors.ABeneficiary,transferee,orotherpersonclaiminganyrightsunderthePlanfromorthroughanyParticipantshallbesubjecttoalltermsandconditionsofthePlanandanyAwardAgreementapplicable



tosuchParticipant,exceptasotherwisedeterminedbytheCommittee,andtoanyadditionaltermsandconditionsdeemednecessaryorappropriatebytheCommittee.

9.3NoRighttoContinuedEmployment;LeavesofAbsence.NeitherthePlan,thegrantofanyAward,noranyotheractiontakenhereundershallbeconstruedasgivinganyemployee,consultant,director,orotherpersontherighttoberetainedintheemployorserviceoftheCompanyoranyofitsSubsidiaries(forthevestingperiodoranyotherperiodoftime),norshallitinterfereinanywaywiththerightoftheCompanyoranyofitsSubsidiariestoterminateanyperson’semploymentorserviceatanytime.UnlessotherwisespecifiedintheapplicableAwardAgreementandtotheextentconsistentwithCodeSection409A,(a)anapprovedleaveofabsenceshallnotbeconsideredaterminationofemploymentorserviceforpurposesofanAwardunderthePlan,and(b)anyParticipantwhoisemployedbyorperformsservicesforaSubsidiaryshallbeconsideredtohaveterminatedemploymentorserviceforpurposesofanAwardunderthePlanifsuchSubsidiaryissoldornolongerqualifiesasaSubsidiaryoftheCompany,unlesssuchParticipantremainsemployedbytheCompanyoranotherSubsidiary.

9.4Taxes.TheCompanyandanySubsidiaryisauthorizedtowithholdfromanydeliveryofSharesinconnectionwithanAward,anyotherpaymentrelatingtoanAward,oranypayrollorotherpaymenttoaParticipant,amountsofwithholdingandothertaxesdueorpotentiallypayableinconnectionwithanytransactioninvolvinganAward,andtotakesuchotheractionastheCommitteemaydeemadvisabletoenabletheCompany,itsSubsidiariesandParticipantstosatisfyobligationsforthepaymentofwithholdingtaxesandothertaxobligationsrelatingtoanyAward.ThisauthorityshallincludeauthoritytowithholdorreceiveSharesorotherconsiderationandtorequireParticipantstomakecashpaymentsinrespectthereofinsatisfactionofwithholdingtaxobligations.

9.5ChangestothePlanandAwards.TheBoardmayamend,suspend,discontinue,orterminatethePlanortheCommittee’sauthoritytograntAwardsunderthePlanwithouttheconsentofshareholdersorParticipants,exceptthatanyamendmentshallbesubjecttotheapprovaloftheCompany’sshareholdersatorbeforethenextannualmeetingofshareholdersforwhichtherecorddateisafterthedateofsuchBoardactionifsuchshareholderapprovalisrequiredbyanyapplicablelaw,regulationorstockexchangerule.TheBoardmayotherwise,initsdiscretion,determinetosubmitothersuchamendmentstoshareholdersforapproval;provided,however,that,withouttheconsentofanaffectedParticipant,nosuchactionmaymateriallyimpairtherightsofsuchParticipantunderanyAwardtheretoforegranted.TheCommitteemayamend,suspend,discontinue,orterminateanyAwardtheretoforegrantedandanyAwardAgreementrelatingthereto;provided,however,that,withouttheconsentofanaffectedParticipant,nosuchactionmaymateriallyimpairtherightsofsuchParticipantundersuchAward.AnyactiontakenbytheCommitteepursuanttoSection7shallnotbetreatedasanactiondescribedinthisSection9.5.NotwithstandinganythinginthePlantothecontrary,theBoardmayamendthePlanandAwardsinsuchmannerasitdeemsappropriateintheeventofachangeofapplicablelaworregulations.

9.6NoRighttoAwards;NoShareholderRights.NoParticipantorotherpersonshallhaveanyclaimtobegrantedanyAwardunderthePlan,andthereisnoobligationforuniformityoftreatmentofParticipants,employees,consultants,ordirectors.NoAwardshallconferonanyParticipantanyoftherightsofashareholderoftheCompanyunlessanduntilSharesaredulyissuedortransferredanddeliveredtotheParticipantinaccordancewiththetermsoftheAward.

9.7UnfundedStatusofAwards;CreationofTrusts.ThePlanisintendedtoconstitutean“unfunded”planforincentivecompensation.WithrespecttoanypaymentsnotyetmadetoaParticipantpursuanttoanAward,nothingcontainedinthePlanoranyAwardshallgiveanysuchParticipantanyrightsthataregreaterthanthoseofageneralcreditoroftheCompany;provided,however,thattheCommitteemayauthorizethecreationoftrustsormakeotherarrangementstomeettheCompany’sobligationsunderthePlantodelivercash,Shares,otherAwards,orotherconsiderationpursuanttoanyAward,whichtrustsorotherarrangementsshallbeconsistentwiththe“unfunded”statusofthePlanunlesstheCommitteeotherwisedetermines.



9.8NonexclusivityofthePlan.NeithertheadoptionofthePlanbytheBoardnorthesubmissionofthePlanorofanyamendmenttoshareholdersforapprovalshallbeconstruedascreatinganylimitationsonthepoweroftheBoardtoadoptsuchothercompensatoryarrangementsasitmaydeemdesirable,includingthegrantingofawardsotherwisethanunderthePlan,andsucharrangementsmaybeeitherapplicablegenerallyoronlyinspecificcases.

9.9OtherPaymentsorAwards.NothingcontainedinthePlanwillbedeemedinanywaytolimitorrestricttheCompanyfrommakinganyawardorpaymenttoanypersonunderanyotherplan,arrangementorunderstanding,whethernowexistingorhereafterineffect.

9.10Non-UniformDeterminations.TheCommittee’sdeterminationsunderthePlanandAwardAgreementsneednotbeuniformandanysuchdeterminationsmaybemadebyitselectivelyamongpersonswhoreceive,orareeligibletoreceive,AwardsunderthePlan(whetherornotsuchpersonsaresimilarlysituated).Withoutlimitingthegeneralityoftheforegoing,theCommitteewillbeentitled,amongotherthings,tomakenon-uniformandselectivedeterminationsunderAwardAgreements,andtoenterintonon-uniformandselectiveAwardsAgreements,asto(a)thepersonstoreceiveAwards,(b)thetermsandprovisionsofAwardsand(c)whetheraParticipant’semploymenthasbeenterminatedforpurposesofthePlan.

9.11NoFractionalShares.NofractionalSharesshallbeissuedordeliveredpursuanttothePlanoranyAward.TheCommitteeshalldeterminewhethercash,orAward,orotherpropertyshallbeissuedorpaidinlieuoffractionalsharesorwhethersuchfractionalsharesoranyrightstheretoshallbeforfeitedorotherwiseeliminated.

9.12ClawbackandOtherCompanyPolicies.AllAwardsgrantedunderthePlanshallbesubjecttoanyapplicableclawbackorrecoupmentpolicies,sharetradingpolicies,shareholdingandotherpoliciesthatmaybeimplementedbytheBoardfromtimetotime.

9.13SuccessorsandAssigns.ThePlanandAwardAgreementsmaybeassignedbytheCompanytoanysuccessortotheCompany’sbusiness.ThePlanandanyapplicableAwardAgreementshallbebindingonallsuccessorsandassignsoftheCompanyandaParticipant,includinganypermittedtransfereeofaParticipant,theBeneficiaryorestateofsuchParticipantandtheexecutor,administratorortrusteeofsuchestate,oranyreceiverortrusteeinbankruptcyorrepresentativeoftheParticipant’screditors.

9.14GoverningLaw.ThePlanandallAwardAgreementsshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofFlorida,withoutgivingeffecttoanychoiceoflaworconflictoflawprovisionorrule(whetheroftheStateofFloridaoranyotherjurisdiction)thatwouldcausetheapplicationofthelawsofanyjurisdictionotherthantheStateofFlorida.

9.15SeverabilityofProvisions.IfanyprovisionofthePlanshallbeheldinvalidorunenforceable,suchinvalidityorunenforceabilityshallnotaffectanyotherprovisionshereof,andthePlanshallbeconstruedandenforcedasifsuchprovisionshadnotbeenincluded.

9.16PlanTermination.UnlessearlierterminatedbytheBoard,thePlanshallterminateonthedaybeforethetenthanniversaryofthelateroftheAmendmentEffectiveDateorthedateofanysubsequentshareholderapprovalofthePlan.UponanysuchterminationofthePlan,nonewauthorizationsofgrantsofAwardsmaybemade,butthen-outstandingAwardsshallremainoutstandinginaccordancewiththeirterms,andtheCommitteeotherwiseshallretainitsfullpowersunderthePlanwithrespecttosuchAwards.

9.17Section409A.Notwithstandingtheotherprovisionshereof,thePlanandtheAwardsareintendedtocomplywiththerequirementsofCodeSection409A,totheextentapplicable.Accordingly,allprovisionshereinandwithrespecttoanyAwardsshallbeconstruedandinterpretedsuchthattheAwardeither(a)qualifiesforanexemptionfromtherequirementsofCodeSection409Aor(b)satisfiestherequirementsofCodeSection409Ato



themaximumextentpossible;provided,however,thatinnoeventshalltheCompanybeobligatedtoreimburseaParticipantorBeneficiaryforanyadditionaltax(orrelatedpenaltiesandinterest)incurredbyreasonofapplicationofCodeSection409A,andtheCompanymakesnorepresentationsthatAwardsareexemptfromorcomplywithCodeSection409AandmakesnoundertakingstoensureorprecludethatCodeSection409AwillapplytoanyAwards.IfanAwardissubjecttoCodeSection409A,(i)distributionsshallonlybemadeinamanneranduponaneventpermittedunderCodeSection409A,(ii)paymentstobemadeuponaterminationofemploymentshallonlybemadeupona“separationfromservice”underCodeSection409A,(iii)unlesstheAwardAgreementspecifiesotherwise,eachinstallmentpaymentshallbetreatedasaseparatepaymentforpurposesofCodeSection409A,and(iv)innoeventshallaParticipant,directlyorindirectly,designatethecalendaryearinwhichadistributionismadeexceptinaccordancewithCodeSection409A.Notwithstandinganythinghereintothecontrary,intheeventthatanyAwardsconstitutenonqualifieddeferredcompensationunderCodeSection409A,if(x)theParticipantisa“specifiedemployee”oftheCompanyasofthespecifiedemployeeidentificationdateforpurposesofCodeSection409A(asdeterminedinaccordancewiththepoliciesandproceduresadoptedbytheCompany)and(y)thedeliveryofanycashorSharespayablepursuanttoanAwardisrequiredtobedelayedforaperiodofsixmonthsafterseparationfromservicepursuanttoCodeSection409A,suchcashorSharesshallbepaidwithin15daysaftertheendofthesix-monthperiod.IftheParticipantdiesduringsuchsix-monthperiod,theamountswithheldonaccountofCodeSection409AshallbepaidtotheParticipant’sBeneficiarywithin30daysoftheParticipant’sdeath.TheCommitteeshallhavethediscretiontoprovideforthepaymentofanamountequivalenttointerest,atsuchrateorratesfixedbytheCommittee,onanydelayedpayment.Thedeterminationofkeyemployees,includingthenumberandidentityofpersonsconsideredkeyemployeesandtheidentificationdate,shallbemadebytheCommitteeoritsdelegateeachyearinaccordancewithCodeSection416(i)andthe“specifiedemployee”requirementsofCodeSection409A.


Appendix BAmended and Restated Stock Purchase Plan for Employees

AMENDED AND RESTATED RYDER SYSTEM, INC.

STOCK PURCHASE PLAN FOR EMPLOYEES

(Effective as of May 6, 2016)

1. Purpose of the Plan .

TheRyderSystem,Inc.StockPurchasePlanforEmployees,alsoknownas“RyderShares”(the“Plan”)isintendedtoprovideanopportunityforEligibleEmployeesoftheCompanyanditsParticipatingSubsidiariestoacquireownershipintheCompanythroughthepurchaseofShares.TheCompanyexpectstobenefitfromtheaddedinterestwhichEligibleEmployeeswillhaveinthewelfareoftheCompanyasaresultoftheirownershipintheCompany.

2. Definitions .

ThefollowingcapitalizedtermsusedinthePlanhavetherespectivemeaningssetforthinthisSection:

(a) BeneficialOwner:AssuchtermisdefinedinRule13(d)(3)underthe1934Act(oranysuccessorRulethereto).

(b) Beneficiary:ThepersonorpersonsdesignatedbyaParticipant,uponsuchformsasshallbeprovidedbytheCommittee,toreceivetheamountscreditedtotheParticipant’sPayrollDeductionAccountandtheSharesheldintheParticipant'sBrokerageAccountaftertheParticipant'sdeath.IftheParticipantshallfailtodesignateaBeneficiary,orifforanyreasonsuchdesignationshallbeineffective,orifsuchBeneficiaryshallpredeceasetheParticipantordiesimultaneouslywithhimorher,thentheBeneficiaryshallbe,inthefollowingorderofpreference:(i)theParticipant'ssurvivingspouse,or(ii)theParticipant'sestate.

(c) Board:TheBoardofDirectorsoftheCompany.

(d) BrokerageAccount:AnaccountestablishedinaParticipant’snamewiththePlanBroker.

(e) ChangeofControl:ForpurposesofthePlan,a"ChangeofControl"shallbedeemedtohaveoccurredif:

(i) anyindividual,entityorgroup(withinthemeaningofSection13(d)(3)or14(d)(2)ofthe1934Act)(a“Person”)becomesthebeneficialowner,directlyorindirectly,ofthirtypercent(30%)ormoreofthecombinedvotingpoweroftheCompany’soutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectorsoftheCompany;provided,however,thatforpurposesofthissubparagraph(i),thefollowingacquisitionsshallnotconstituteaChangeofControl:(A)anyacquisitionbytheCompanyoranyemployeebenefitplanorplans(orrelatedtrust)oftheCompanyanditssubsidiariesandaffiliatesor(B)anyacquisitionbyanycorporationpursuanttoatransactionwhichcomplieswithclauses(A),(B)and(C)ofsubparagraph(iii)below;or

(ii) theindividualswho,asofMay4,2012,constitutedtheBoardofDirectorsoftheCompany(the“Board”generallyandasofMay4,2012the“IncumbentBoard”)ceaseforanyreasontoconstituteatleastamajorityoftheBoard,providedthatanypersonbecomingadirectorsubsequenttoMay4,2012whoseelection,ornominationforelection,wasapprovedbyavoteorbyapprovaloftheproxystatementinwhichsuchpersonisnamedasanomineefordirector,withoutwrittenobjectiontosuchnominationofthepersonscomprisingatleastamajorityoftheIncumbentBoard(otherthananelectionornominationofanindividualwhoseinitialassumptionofofficeisinconnectionwithanactualorthreatenedelectioncontest,assuchtermsareusedinRule14a-11ofRegulation14Apromulgatedunderthe1934Act(asineffectonJanuary23,2000))shallbe,forpurposesofthisPlan,consideredasthoughsuchpersonwereamemberoftheIncumbentBoard;or

Table of ContentsRyderSystem,Inc.| 2016ProxyStatement B-1


(iii) consummationofareorganization,mergerorconsolidationoftheCompany(a“BusinessCombination”),ineachcase,unless,followingsuchBusinessCombination,(A)allorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheCompany’soutstandingSharesandoutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectorsoftheCompanyimmediatelypriortosuchBusinessCombinationbeneficiallyown,directlyorindirectly,morethanfiftypercent(50%)of,respectively,thethenoutstandingsharesofcommonstockandthecombinedvotingpowerofthethenoutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectors,asthecasemaybe,ofthecorporationresultingfromsuchBusinessCombination(including,withoutlimitation,acorporationwhichasaresultofsuchtransactionownstheCompanyorallorsubstantiallyalloftheCompany’sassetseitherdirectlyorthroughoneormoresubsidiaries)insubstantiallythesameproportionsastheirownership,immediatelypriortosuchBusinessCombination,oftheCompany’soutstandingSharesandoutstandingvotingsecuritiesordinarilyhavingtherighttovotefortheelectionofdirectorsoftheCompany,asthecasemaybe,(B)noPerson(excludinganycorporationresultingfromsuchBusinessCombinationoranyemployeebenefitplanorplans(orrelatedtrust)oftheCompanyorsuchcorporationresultingfromsuchBusinessCombinationandtheirsubsidiariesandaffiliates)beneficiallyowns,directlyorindirectly,30%ormoreofthecombinedvotingpowerofthethenoutstandingvotingsecuritiesofthecorporationresultingfromsuchBusinessCombinationand(C)atleastamajorityofthemembersoftheboardofdirectorsofthecorporationresultingfromsuchBusinessCombinationweremembersoftheincumbentBoardatthetimeoftheexecutionoftheinitialagreement,oroftheactionoftheBoard,providingforsuchBusinessCombination;or

(iv) shareholderapprovalofaliquidationordissolutionoftheCompany;or

(v) consummationofasaleofallorsubstantiallyalloftheassetsoftheCompany.

(f) Code:TheInternalRevenueCodeof1986,asamended,oranysuccessorthereto.

(g) Committee:TheCompensationCommitteeoftheBoard.

(h) Company:RyderSystem,Inc.,aFloridacorporation.

(i) Compensation:TheregularbasesalarypaidtoaParticipantbytheCompanyoroneormoreParticipatingSubsidiariesduringsuchindividual’speriodofparticipationinoneormoreOfferingPeriodsunderthePlanbeforedeductionofanyincometaxoremploymenttaxwithholdingsorcontributionstoany401(k)orCodeSection125PlannoworhereafterestablishedbytheCompanyoranyParticipatingSubsidiary.TheCommitteemaymakemodificationstothedefinitionofCompensationforoneormoreofferingsasdeemedappropriate.

(j) DisqualifyingDisposition:AssuchtermisdefinedinSection10(f)ofthePlan.

(k) EligibleEmployee:AnyEmployeeoftheCompanyorofaParticipatingSubsidiarywhoiseligibletoparticipateinthePlanpursuanttoSection6ofthePlan.

(l) Employee:AnyemployeeoftheCompanyorofaParticipatingSubsidiary.

(m) EnrollmentPeriod:Theperiodcommencingonthe15thdayofthemonthpriortothemonthimmediatelyprecedingtheOfferingCommencementDateandendingontheOfferingCommencementDateforwhichparticipationissoughtbyanEligibleEmployee.

(n) FairMarketValue:TheclosingpriceoftheSharesonagivendayasreportedbythecompositetransactionreportingsystemforsecuritieslistedontheNewYorkStockExchange,or,ifnosalesoftheSharesweremadeonthatday,onthemostrecentlyprecedingdateonwhichtherewassuchasale.

(o) 1933Act:TheSecuritiesActof1933,asamended,oranysuccessorthereto.



(p) 1934Act:TheSecuritiesExchangeActof1934,asamended,oranysuccessorthereto.

(q) OfferingCommencementDate:ThefirstdayofanOfferingPeriod.

(r) OfferingPeriod:PeriodoftimeduringwhichParticipantswillmakecontributionsandpayfortheirSharespursuanttoSection5ofthePlan.

(s) Participant:AnyEligibleEmployeewhoparticipatesinthePlan.

(t) ParticipatingSubsidiary:AnyU.S.orCanadianSubsidiaryoftheCompanyorsuchotherSubsidiariesasauthorizedbytheCommittee.

(u) PayrollDeductionAccount:AbookaccounttowhichpayrolldeductionsofParticipantsarecreditedpursuanttoSection10(c)ofthePlan.

(v) Plan:TheRyderSystem,Inc.StockPurchasePlanforEmployees,alsoknownas“RyderShares”.

(w) PlanBroker:AstockbrokerageorotherfinancialservicesfirmdesignatedbytheCommitteeinitssolediscretiontoprovideadministrativeservicestothePlan.

(x) PurchaseDate:ThelasttradingdayofanOfferingPeriod.

(y) PurchasePrice:ThepurchasepriceperShareasdeterminedpursuanttoSection9ofthePlan.

(z) Shares:Sharesofcommonstock,parvalue$0.50perShare,oftheCompany.

(aa)Subsidiary:Asubsidiarycorporation,asdefinedinSection424(f)oftheCode(oranysuccessorSectionthereto).

3. Shares Subject to the Plan .

(a) SharesAuthorized:SubjecttoSection15,afterFebruary9,2016,1,134,730SharesareauthorizedforissuanceunderthePlan,whichincludesthe1,000,000Shareincreasesubjecttoshareholderapprovalatthe2016AnnualMeeting.TheShareswillbemadeavailabletotheParticipantsinaseriesofquarterlyOfferingPeriodswhichshallcontinueuntilallSharesreservedunderthePlanhavebeenissuedtotheParticipantsorearlierterminationofthePlan.TheissuanceoftheSharespursuanttothePlanshallreducethetotalnumberofSharesavailableunderthePlan.AnySharesnotissuedonagivenPurchaseDateshallbeavailableforissuanceinsubsequentOfferingPeriods.

(b) MaximumShares:IfthetotalnumberofSharespurchasedbyalltheParticipantsonagivenPurchaseDateexceedsthemaximumnumberofSharesavailableunderthePlan,theCompany(i)shallmakeaprorataallocationoftheSharesavailablefordeliveryanddistributioninasnearlyauniformmannerasshallbepracticableandastheCommitteeshalldeterminetobeequitable,and(ii)allfundsnotusedtopurchaseSharesonthePurchaseDateshallbereturned,withoutinterest,totheParticipantsaspromptlyasreasonablypossible.

(c) IssuanceofShares:SharestobedeliveredtoaParticipantpursuanttothePlanwillbeissuedinthenameoftheParticipant.

4. Administration of the Plan .

ThePlanshallbeadministeredbytheCommittee.TheCommitteeisauthorizedtointerpretthePlan,toestablish,amendandrescindanyrulesandregulationsrelatingtothePlan,andtomakeanyotherdeterminationsthatitdeemsnecessaryordesirablefortheadministrationofthePlan.TheCommitteemaycorrectanydefectorsupplyanyomissionorreconcileanyinconsistencyinthePlaninthemannerandtotheextenttheCommitteedeemsnecessaryordesirable.AnydecisionoftheCommitteeinthe



interpretationandadministrationofthePlan,asdescribedherein,shallliewithinitssoleandabsolutediscretionandshallbefinal,conclusiveandbindingonallpartiesconcerned(including,butnotlimitedto,Participantsandtheirbeneficiariesorsuccessorsandjointowners).SubjecttoSection16ofthe1934Actorotherapplicablelaw,theCommitteemaydelegateitsdutiesandpowersunderthePlantosuchindividualsasitdesignatesinitssolediscretion.

5. Offering Periods .

ThePlanmaybeimplementedthroughaseriesofoneormoreOfferingPeriods,duringwhichParticipantswillmakecontributionsandpayfortheirSharesunderthePlan.TheOfferingPeriodshallbethethree(3)monthperiodstartingeachJanuary,April,July,andOctober.Notwithstandingtheforegoing,theCommitteemaychangethedurationofanyOfferingPeriodinitssolediscretionpriortothestartofsuchOfferingPeriod.

ThetermsandconditionsofeachOfferingPeriodmayvary,andtwoormoreOfferingPeriodsmayrunconcurrentlyunderthePlan,eachwiththeirowntermsandconditions.Inaddition,specialOfferingPeriodsmaybeestablishedwithrespecttoentitiesthatareacquiredbytheCompany(oranySubsidiaryoftheCompany)orundersuchothercircumstancesastheCommitteedeemsappropriate.Innoevent,however,shallthetermsandconditionsofanyOfferingPeriodcontravenetheexpresslimitationsandrestrictionsofthePlan,andtheParticipantsineachseparateOfferingPeriodshallhaveequalrightsandprivilegesunderthatofferinginaccordancewiththerequirementsofSection423(b)(5)oftheCodeandtheapplicableTreasuryRegulationsthereunder.

6. Eligibility .

AnyindividualwhohasbeenanEmployeeforninety(90)dayspriortothestartofanOfferingPeriod,andisanEmployeeontheOfferingCommencementDateforthatOfferingPeriodiseligibletoparticipateinsuchOfferingPeriod,exceptforthefollowingEmployees:

(a) AnyEmployeewhosecustomaryemploymentistwenty(20)hoursorlessperweekwithinthemeaningofSection423(b)(4)(B)oftheCode;

(b) AnyEmployeewho,weresuchEmployeetoparticipateinsuchOfferingPeriodwould(togetherwithanyotherpersonwhosestockwouldbeattributedtosuchEmployeepursuanttoCodeSection424(d))immediatelythereafterownsharespossessingfivepercent(5%)ormoreofthetotalcombinedvotingpowerorvalueofallclassesofsharesoftheCompanywithinthemeaningofSection423(b)(3)oftheCode;or

(c) AnyEmployeewhoqualifiesasa“highlycompensatedemployee”withinthemeaningofCodeSection414(q)andwhoissubjecttotheinsiderreportingrequirementsofSection16ofthe1934Act.

7. Participation in the Plan .

TheCommitteeshallsetforthprocedurespursuanttowhichParticipantsmayelecttoparticipateinagivenOfferingPeriodunderthePlan.

8. Enrollment and Restrictions on Participation .

TheEnrollmentPeriodistheperiodoftimeduringwhichParticipantsmayelecttoparticipateinanoffering.AnEligibleEmployeemayenrollandbecomeaParticipantbycompletingtheapplicableenrollmentprocessrequiredbythePlanBrokerduringtheEnrollmentPeriodfortheapplicableOfferingPeriodforwhichparticipationissought.AParticipant’senrollmentandchosenrateofpayrolldeductionsshallremainineffectforsuccessiveOfferingPeriodsunlessotherwisemodifiedinaccordancewithSection10orterminatedinaccordancewithSection12.NoParticipantshallbepermittedtoaccruerightstopurchaseSharesunderthePlan(orunderanyother“employeestockpurchaseplan”withinthemeaningofSection423(b)oftheCode,oftheCompanyoranyParticipatingSubsidiary)withanaggregateFairMarketValue(asdeterminedasofeachOfferingCommencementDate)inexcessof$25,000.00foranyonecalendaryearinwhichsuchrightisoutstandingwithinthemeaningofSection423(b)(8)oftheCode.



9. Purchase Price .

ThePurchasePriceperShareineffectforanyOfferingPeriodshallbedeterminedbytheCommitteeinitssolediscretion,butinnoeventshallbelessthaneighty-fivepercent(85%)oftheFairMarketValueofaShareonthePurchaseDate.

ThePurchasePriceperShareasdeterminedbytheCommitteeforanOfferingPeriodshallremainineffectforeachsubsequentOfferingPeriodunlessmodifiedbytheCommitteeatleastthirty(30)dayspriortotheapplicableOfferingCommencementDate.

10. Payroll Deductions .

(a) PayrolldeductionsshallbemadeoneachdaythatParticipantsarepaidduringanOfferingPeriodwithrespecttoallParticipantswhoelecttoparticipateinsuchOfferingPeriod.ThedeductionsshallbemadeasapercentageoftheParticipant’sCompensationinonepercent(1%)increments,fromonepercent(1%)tofifteenpercent(15%)ofsuchparticipant’sCompensation,oraspecificdollaramountoftheParticipant’sCompensationwithaminimumoffivedollars($5.00),aselectedbytheParticipant.

(b) SubjecttoSection11,aParticipantmaychoosetochangetherateofpayrolldeductionsduringthelastcalendarmonthofanOfferingPeriodtobecomeeffectiveonthenextOfferingCommencementDate.Toeffectachangeintherateofpayrolldeductions,theParticipantmustcompletetheapplicableenrollmentprocessrequiredbythePlanBroker.

(c) AllpayrolldeductionsmadewithrespecttoaParticipantshallbecreditedtohis/herPayrollDeductionAccountunderthePlanandshallbedepositedwiththegeneralfundsoftheCompany,andnointerestshallaccrueontheamountscreditedtosuchPayrollDeductionAccounts.AllpayrolldeductionsreceivedorheldbytheCompanymaybeusedbytheCompanyforanycorporatepurpose,andtheCompanyshallnotbeobligatedtosegregatesuchpayrolldeductions.AParticipantmaynotmakeanyseparatecashpaymentintohis/herPayrollDeductionAccountandpaymentforSharespurchasedunderthePlanmaynotbemadeinanyformotherthanbypayrolldeductions.

(d) OneachPurchaseDatetheCompanyshallapplyallfundstheninaParticipant’sPayrollDeductionAccounttopurchaseShares(inwholeand/orfractionalShares,asthecasemaybe);provided,however,thatthemaximumnumberofSharespurchasableperParticipantonanyPurchaseDateshallnotexceed2,500Shares,subjecttoperiodicadjustmentsintheeventofcertainchangesintheCompany’scapitalizationasprovidedinSection15(a).Inaddition,themaximumnumberofSharespurchasableintotalbyallParticipantsonanyonePurchaseDateshallnotexceed500,000Shares,subjecttoperiodicadjustmentsintheeventofcertainchangesintheCompany’scapitalizationasprovidedinSection15(a).TheCommitteeshallhavethediscretionaryauthority,priortothestartofanyOfferingPeriodunderthePlan,toincreaseordecreasethelimitationstobeineffectforthenumberofSharespurchasableperParticipantandintotalbyallParticipantsoneachPurchaseDate.

(e) AssoonaspracticablefollowingthePurchaseDate,thenumberofSharespurchasedbyeachParticipantshallbedepositedintotheBrokerageAccountintheParticipant’sname.DividendsthataredeclaredontheSharesheldinsuchaccountshallbereinvestedinwholeSharesatthecurrentFairMarketValueintheopenmarket.TheCompanyshallpaythebrokeragefeesforthesepurchases.SubjecttoSection10(f)ofthePlan,dividendsonSharesthataParticipantholdsinacertificateformwillbesentdirectlytotheParticipantbythedividendpayingagent.TheParticipantmayoptoutofthisdividendreinvestmentprogram.

(f) OncetheShareshavebeenpurchased,theParticipantmay(i)transferhis/herSharestoanotherbrokerageaccountofParticipant’schoosingor(ii)requestinwritingthatastockcertificatebeissuedtohim/herwithrespecttothewholeSharesinhis/herPlanBrokeraccountandthatanyfractionalSharesremaininginsuchaccountbepaidincashtohim/her,exceptthat,(1)ParticipantsinManagementLevelsMS14-16maynot



sell,transferorrequestacertificateforoneyearfromthedateofpurchaseand(2)ParticipantsbelowManagementLevel14maynotsell,transferorrequestacertificateforthree(3)monthsfromthedateofpurchase.TheCommitteemayrequire,initssolediscretion,thattheParticipantbearthecostoftransferringsuchSharesorissuingcertificatesforsuchShares.AnyParticipantwhoengagesina“DisqualifyingDisposition”ofhis/herShareswithinthemeaningofSection421(b)oftheCodeshallnotifytheCompanyofsuchDisqualifyingDispositioninaccordancewithSection22ofthePlan.

(g) ParticipantsshallhavenointerestorvotingrightsintheSharesuntilsuchShareshavebeenpurchasedontheapplicablePurchaseDate.

(h) AllotherpayrolldeductionswillbemadebeforedeductionsunderthePlan.IfaftermakingtheseotherdeductionstheEmployee’sremainingcompensationislessthanthedeductionunderthePlan,nodeductionwithrespecttoparticipationinthePlanwillbemadeforthatpayperiod.

11. Withdrawal .

EachParticipantmaywithdrawfromanOfferingPeriodundersuchtermsandconditionsasareestablishedbytheCommitteeinitssolediscretion.UponaParticipant’swithdrawalfromanOfferingPeriod,allaccumulatedpayrolldeductionsinthePayrollDeductionAccountshallbereturned,withoutinterest,tosuchParticipant,assoonaspracticable,andhe/sheshallnotbeentitledtoanySharesonthePurchaseDatethereafterwithrespecttotheOfferingPeriodineffectatthetimeofsuchwithdrawal.SuchParticipantshallbepermittedtoparticipateinasubsequentOfferingPeriodifheorshetimelyenrollsinsuchOfferingPeriod.

12. Termination of Employment .

AParticipantshallceasetoparticipateinthePlanuponhis/herceasingtoremainanEligibleEmployeeforanyreason.Insuchevent,allpayrolldeductionscreditedtotheParticipant’sPayrollDeductionAccountshallbereturned,withoutinterest,tosuchParticipantortohis/herdesignatedBeneficiary,asthecasemaybe,assoonaspracticable,andsuchParticipantorBeneficiaryshallhavenofuturerightstoparticipateinanyfutureOfferingPeriods.

13. Leave of Absence .

IfaParticipantgoesonanapprovedunpaidleaveofabsence,suchParticipantshallhavetheright,exercisableupuntilthelastbusinessdayoftheOfferingPeriodinwhichsuchleavecommences,to(a)withdrawfromanOfferingPeriodpursuanttoSection11,or(b)havehisorherpayrolldeductionsheldforthepurchaseofSharesonhisorherbehalfonthenextscheduledPurchaseDate.Innoevent,however,shallanyfurtherpayrolldeductionsbecollectedontheParticipant’sbehalfduringsuchleave.UpontheParticipant’sreturntoactiveservice(x)withinthree(3)monthsfollowingthecommencementofsuchleaveor(y)priortotheexpirationofanylongerperiodforwhichsuchParticipantisprovidedwithreemploymentrightsbystatuteorcontract,hisorherpayrolldeductionsunderthePlanshallautomaticallyresumeattherateineffectatthetimetheleavebegan,unlesstheParticipantwithdrawsfromthePlanpriortohisorherreturn.Anindividualwhoreturnstoactiveservicefollowingaleaveofabsencewhichexceedsindurationtheapplicable(x)or(y)timeperiodshallbetreatedasanewEmployeeforpurposesofsubsequentparticipationinthePlanandmustaccordinglyre-enrollinthePlaninaccordancewithSection8.

14. Termination and Amendment of the Plan .

ThePlanshallterminate(a)onthedatethatalloftheSharesforsaleunderthePlanhavebeenpurchased,or(b)atanytime,atthediscretionoftheCommittee;provided,however,thatnoterminationshallaffectoutstandingsubscriptions.

TheCommitteemayatanytimeamendthePlan.NoamendmentshallbeeffectiveunlessapprovedbytheshareholdersoftheCompanyifshareholderapprovalofsuchamendmentisrequiredtocomplywithCodeSection423ortocomplywithanyotherapplicablelaw,regulation,orstockexchangerule.



15. Adjustments Upon Certain Events .

NotwithstandinganyotherprovisionsinthePlantothecontrary,thefollowingprovisionsshallapply:

(a) IntheeventofanychangeintheoutstandingSharesunderthePlanbyreasonofanySharedividendorsplit,reorganization,re-capitalization,merger,consolidation,spin-off,combinationorexchangeofSharesorothercorporateexchange,oranydistributiontoshareholdersofSharesotherthanregularcashdividends,theCommitteeinitssolediscretionandwithoutliabilitytoanyPersonshallmakesuchsubstitutionoradjustment,ifany,asitdeemstobeequitable,asto(i)thenumberorkindofSharesorothersecuritiesissuedorreservedforissuancepursuanttothePlan,(ii)thePurchasePriceperShare,(iii)themaximumnumberofSharespurchasableperParticipantonanyPurchaseDate,(iv)themaximumnumberofSharespurchasableintotalbyallParticipantsunderthePlanonanyonePurchaseDateand/or(v)anyotheraffectedprovisionsunderthePlan.

(b) IntheeventofaChangeinControl,theCommitteeinitssolediscretionandwithoutliabilitytoanyperson,maytakesuchactions,ifany,asitdeemsnecessaryordesirablewithrespecttoanypurchaseofSharesunderthePlanasofthedateoftheconsummationoftheChangeinControl.

16. Transferability .

NeitherpayrolldeductionscreditedtoaParticipant’sPayrollDeductionAccountnoranyrightstoreceiveSharesunderthePlanmaybeassigned,transferred,pledged,orotherwisedisposedofinanywaybytheParticipantotherthanbywillorthelawsofdescentanddistribution.Anysuchattemptedassignment,transfer,pledgeorotherdispositionshallbewithouteffect,exceptthattheCompanymaytreatsuchactasanelectiontowithdrawfundsinaccordancewithSection11ofthePlan.

17. No Right to Employment .

ThepurchaseofSharesunderthePlanshallimposenoobligationontheCompanyoranyParticipatingSubsidiarytocontinuetheemploymentofaParticipantandshallnotlessenoraffecttheCompany’sorParticipatingSubsidiary’srighttoterminatetheemploymentofsuchParticipant.

18. Application of Funds .

AllfundsreceivedorheldbytheCompanyunderthePlanmaybeusedforanycorporatepurpose.

19. Section 423 of the Code .

ThePlanisintendedtoqualifyasan“employeestockpurchaseplan”withinthemeaningofSection423oftheCode(oranysuccessorSectionthereto).Accordingly,allParticipantsshallhavethesamerightsandprivilegesunderthePlan,subjecttoanyexceptionsthatarepermittedunderSection423(b)(5)oftheCode.AnyprovisionofthePlanthatisinconsistentwithSection423oftheCode(oranysuccessorprovision)shall,withoutfurtheractoramendment,bereformedtocomplywiththerequirementsofSection423oftheCode.ThisSection19ofthePlanshalltakeprecedenceoverallotherprovisionsofthePlan.

20. Securities Laws Restrictions .

(a) ShareIssuance:NotwithstandinganyotherprovisionofthePlanoranyagreementsenteredintopursuanthereto,theCompanyshallnotberequiredtoissueordeliveranycertificateforSharesunderthePlan,andSharesshallnotbeconsideredtohavebeenpurchasednotwithstandingthetenderbytheParticipantofanyconsiderationtherefor,unlessanduntileachofthefollowingconditionshasbeenfulfilled:

(b)

(i) ThereshallbeineffectwithrespecttosuchSharesaregistrationstatementunderthe1933ActandanyapplicablestatesecuritieslawsiftheCommittee,initssolediscretion,shallhavedeterminedtofile,causetobecomeeffectiveandmaintaintheeffectivenessofsuchregistrationstatement;orifthe



CommitteehasdeterminednottosoregistertheSharestobeissuedunderthePlan,(a)exemptionsfromregistrationunderthe1933Actandapplicablestatesecuritieslawsshallbeavailableforsuchissuance(asdeterminedbycounseltotheCompany)and(b)thereshallhavebeenreceivedfromtheParticipant(or,intheeventofdeathordisability),theParticipant’sheir(s)orlegalrepresentative(s)anyrepresentationsoragreementsrequestedbytheCompanyinordertopermitsuchissuancetobemadepursuanttosuchexemptions;and

(ii) Thereshallhavebeenobtainedanyotherconsent,approvalorpermitfromanystate,federal,localorothergovernmentalagencywhichtheCommitteeshall,initssolediscretionupontheadviceofcounsel,deemnecessaryoradvisable.

(c) ShareTransfers:SharesissuedpursuanttothePlanmaynotbesold,assigned,transferred,pledged,encumberedorotherwisedisposedof,whethervoluntarilyorinvoluntarily,directlyorindirectly,byoperationoflaworotherwise,exceptpursuanttoregistrationunderthe1933Actandapplicablefederal,state,localorotherapplicablesecuritieslawsorpursuanttoexemptionsfromsuchregistrations.TheCompanymayconditionthesale,assignment,transfer,pledge,encumbranceorotherdispositionofsuchSharesnotissuedpursuanttoaneffectiveandcurrentregistrationstatementunderthe1933Actandallapplicablefederal,state,localorotherapplicablesecuritieslawsonthereceiptfromthepartytowhomtheSharesaretobesotransferredofanyrepresentationsoragreementrequestedbytheCompanyinordertopermitsuchtransfertobemadepursuanttoexemptionsfromregistrationunderthe1933Actandapplicablefederal,state,localorotherapplicablesecuritieslaws.

21. Tax Withholding .

TheCompanyand/ortheParticipant’semployershallhavetherighttowithholdfromsuchParticipantsuchwithholdingtaxesasmayberequiredbyfederal,state,localorotherlaw,ortootherwiserequiretheParticipanttopaysuchwithholdingtaxes.AParticipantmayelecttopayaportionorallofsuchwithholdingtaxesby(i)deliveryofSharesor(ii)havingShareswithheldbytheCompanyfromtheSharesotherwisetobereceived.TheSharessodeliveredorwithheldshallhaveanaggregateFairMarketValueequaltotheamountofsuchwithholdingtaxes.

22. Notices .

Allnoticesandothercommunicationshereundershallbeinwritingandhanddeliveredormailedbyregisteredorcertifiedmail(returnreceiptrequested)orsentbyanymeansofelectronicmessagetransmissionwithdeliveryconfirmed(byvoiceorotherwise)andwillbedeemedgivenonthedateonwhichsuchnoticeisreceived:RyderSystem,Inc.,PayrollDepartment,Attn:DirectorofPayroll,11690NW105Street,Miami,Florida33178;Facsimile(305)500-4599.

23. Choice of Law .

ThePlanshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofFloridaapplicabletocontractsmadeandtobeperformedintheStateofFlorida.


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