2018 Guide to Effective Proxies

2.9 Board diversity graphics | 145 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES EDWARDS LIFESCIENCES CORPORATION FIRSTENERGY CORP FORTIVE CORPORATION FTI CONSULTING, INC. PROPOSAL1—ELECTIONOFDIRECTORS Inlightoftherobustprocessdescribedabove,ourBoardbelievesournominees’skills,expertise,andexperienceandtheir mix of qualifications and attributes strengthen our Board’s independent leadership and effective oversight of management. Independent Non-independent 12.5% 88% Independent 87.5% Women Men 25% 25% Women 75% 61-69years 70+years 60years <− 50% 25% 25% Average Age: 65years <5years 5-10years >10years 12.5% 25% 62.5% AverageBoard Tenure: 6years DiverseRangeofQualificationsandSkillsRepresentedbyOurNominees MedicalTechnology IndustryExperience ExecutiveInternational Experience CorporateGovernance Regulatoryand Compliance SeniorLeadership OperationsManagement Innovation/Technology RiskManagement RiskOversight FinanceandFinancial Industry HumanResources FinancialReporting Our Board strives to maintain a highly independent, balanced, and diverse set of directors that collectively possess the expertise to ensure proper oversight. 6 EdwardsLifesciencesCorporation | 2018ProxyStatement Proxy Statement Summary KeyFactsAboutYourBoard Weseektomaintainawell-roundedanddiverseBoardrepresentingawidebreadthofexperienceandperspectives thatbalancestheinstitutionalknowledgeoflonger-tenureddirectorswiththefreshperspectivesbroughtbynewer directors.Belowarehighlightsregardingour 12 directornomineesstandingforelectiontoyourBoardandourBoard meetingsheldin 201 7. 58% ofNominees joined yourBoard since the beginning of 2013 33% Diverse Nominees 25% FemaleNominees <5 6-10 >10 BoardTenure 7 3 2 years Nominee average tenure 5.1 years 1 63 Average age of Nominees 13 ExecutiveSessions of independent Directors led by BoardChairman 25 AdditionalExecutive Sessions of independent Directors ledby CommitteeChairs 33 Committee Meetings 1 ServicewithyourCompanydoesnotincludeservicebyMs.JohnsonandMr.PappasasdirectorsofAlleghenyEnergy,which mergedwithyourCompanyin 2011 . CorporateGovernanceHighlights YourCompanyiscommittedtostrongcorporategovernance,whichwebelieveisimportanttothesuccessofour businessandinadvancingshareholderinterests.Highlightsinclude: ✓ StrongGovernancePractices ✓ IndependentOversight ✓ ShareholderRights • DirectorResignationPolicyrequiringanydirector nomineeinanuncontesteddirectorelectionwho receivesamajorityofwithheldvotestotender hisorherresignation • ConsiderationofyourBoard’sdiversity,age, experienceandskillsandotherattributeswhen evaluatingnomineesforyourBoard • Athree-partannualevaluationprocess:full Boardevaluation;Boardcommitteeevaluations; andindividualdirectorevaluations • Mandatorydirectorretirementageof7 2 pursuant toourCorporateGovernancePolicies • CorporateGovernanceCommitteeandBoard engageinrigorousdirectorsuccessionplanning • Robuststockownershipguidelines • Comprehensivedirectororientationand continuingeducation • Directinvestorrelationsandgovernance engagementandoutreachtoshareholders • Anti-HedgingandAnti-PledgingPolicies • SeparateBoardChairmanandChief ExecutiveOfficer(our“CEO”) • IndependentBoardChairman • Alldirectorsareindependent,other thantheCEO • Boardcommitteesarecomprised entirelyofindependentdirectors • Independentdirectorsregularlymeet withoutmanagementpresentatBoard andcommitteemeetings • RiskoversightbyfullBoardandits committees • Annualelectionofalldirectors • Shareholdersof 2 5percentormoreof oursharesoutstandingandentitledto votehavetherighttocallaspecial meeting • Advisoryvoteonnamedexecutive officercompensationisheldonan annualbasis,consistentwiththe shareholderadvisoryvoteon frequency • Clear,effectiveprocessfor shareholderstoraiseconcernstothe Board • Nopoisonpill Ourcorporategovernancepracticesaredescribedingreaterdetailinthe“CorporateGovernanceandBoardof DirectorsInformation”sectionbeginningonpage 12 . BoardTenureyears<56- 10 > 10 Nomineeaveragetenure[5. 1 ]years 1 [5 8 ]%ofNomineesjoinedyourBoardsincethebeginningof 201 3[33]%DiverseNominees[ 2 5]%FemaleNominees[63]AverageageofNominees[33]CommitteeMeetings[ 1 3]ExecutiveSessionsofIndependentDirectorsLedbyBoardChairman[ 2 5]AdditionalExecutiveSessionsofIndependentDirectorsLedbyCommitteeChairs iii KEYELEMENTSOFCEOCOMPENSATIONPROGRAMSFOR2017AND2018 Ourcompensationprogramsarecomprisedofthreeprimaryelements:annualbasesalary,AIPandLTIP.Eachelementisstructured tocomplementoneanotherandestablishabalancedpay-for-performancestructure.Thebelowdiagrampreviewstheyear-over- yearchangestoourexecutivecompensationprogram,specifictoourCEO: Award 2017 2018 Form PerformanceMetric Form PerformanceMetric Base Salary • FixedCash N/A • FixedCash N/A AIP • Performance- BasedCash andRSA Paid75%incash, 25%inRSAwith one-yearvesting term Target:200%ofbasesalarybased on: • One-third-AdjustedEBITDA • One-third-AdjustedEPS • One-third-Individual Performance • Performance- BasedCash Target: Reducedto150% ofbase salarybasedon: • 37.5%-AdjustedEBITDA • 37.5%-AdjustedEPS (1) • 25.0%-Individual Performance NewWeightings LTIP • 50%- Performance RSUs RelativeTSRcomparedtotheS&P 500: • Threshold :25 th Percentile • Target :50 th Percentile • Maximum :75 th Percentile • 66.67%- Performance RSUs Increased RelativeTSRcomparedtotheS&P 500: • Threshold :25 th Percentile • Target :55 th Percentile • Maximum :80 th Percentile IncreasedTargetandMaximum Performance-PayoutCurve • 25%-RSA N/A • 33.33%-RSA Increased N/A • 25%-Stock Options Exercisepricepershareequals 100%ofgrantdatefairmarket value EliminatedStockOptions (1) For2018AIP,thedefinitionof“AdjustedEPS”hasbeenrevisedasdescribedinAppendixC. BOARDCOMPOSITIONANDCHARACTERISTICS OurdirectornomineesareadiversegroupofexperiencedbusinessleaderswhoprovideuniqueperspectivestotheCompany’s businessdiscussionsandstrategicplans,whichwebelieveiscriticaltoensuringthatwemaintainahigh-functioningBoard. Collectively,thetenureofourdirectornomineesbalancesdeepexperienceattheCompanywithfreshperspectives.Ourdirector nomineesalsohavediverseexpertiseandskillsthatenablethemtoeffectivelycarryouttheirdutiesandresponsibilities.Since 2014,wehaveaddedthreenewdirectors,improvingtheBoard’sgenderdiversityandenhancingtheBoard’scollectiveexpertise— notablyinfinanceandaccounting,globalbusinessandotherpubliccompanyboardexperience. DirectorGenderDiversity DirectorsbyTenure DirectorsbyAge DirectorGeographicDiversity Male 6 Female 2 3 1 67-70 Years 4 60-66 Years 3 55-59 Years 1 U.S.- Based 6 Int'l- Based 2 CEO Avg.Tenure: ~6years Avg.Age: ~64years > 8Years 5-8Years 1-4Years 2 2 Detailedinformationoneachofoureightnomineescanbefoundin“InformationabouttheBoardofDirectorsandCommittees” beginningonpage6. iv Total of 02 pages in section Proposal 1. Election of Directors BoardCompositionOverview OurBoardiscomprisedofdirectorswithdiverseskills,background,andexperience,whichtheBoardbelievescontributes totheeffectiveoversightofourCompany.Additionaldetailsonboardmembershipcriteriaaresetforthonpage25under “CorporateGovernance–DirectorNominationProcess.” 56 Average Age Age 2 2 3 40’s 50’s 60’s 43% Diversity Diversity 3 Diversity 4 None 4 4 6 5 3 7 7 6 7 4 Independence TechnologyExperience,IncludingSoftwareandCybersecurity Diversity GlobalExperienceand InternationalExposure MergersandAcquisitionExperience CompetitiveStrategyandMarketingExperience Leadership,IncludingOperatingExperienceasCEOorCOO FinancialLiteracyorPublicAccountingExperience CapitalMarketsandCorporateFinanceExperience PublicCompanyBoardExperience Skills and Attributes Outof7 Board Members 2018ProxyStatement 13