2018 Guide to Effective Proxies

2.9 Board diversity graphics | 149 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES LOWE’S COMPANIES MARRIOTT INTERNATIONAL, INC. MASTERCARD, INC. METLIFE, INC. Proposal1:ElectionofDirectors IDENTIFYINGANDEVALUATINGDIRECTORNOMINEES TENUREOF INDEPENDENTDIRECTORS DIVERSITY BOARDSKILLS 6 2 10+ 6-9 1-5 5 YEARS AVERAGE 9 CURRENT ORFORMER CEOS CULTURALDIVERSITY LEADERSHIP 1 HISPANIC 2 AFRICAN- AMERICAN 3 WOMEN 2 FINANCIALEXPERTISE WEUSEABROADSETOFFINANCIALMETRICSTO MEASUREOURPERFORMANCE,ANDACCURATE FINANCIALREPORTINGANDROBUSTAUDITINGARE CRITICALTOOURSUCCESS.WESEEKTOHAVEA NUMBEROFDIRECTORSWHOQUALIFYASAUDIT COMMITTEEFINANCIALEXPERTS,ANDWEEXPECT ALLOFOURDIRECTORSTOHAVEANUNDERSTANDING OFFINANCEANDFINANCIALREPORTINGPROCESSES. 10 BUSINESSDEVELOPMENT/M&A WESEEKDIRECTORSWITHBUSINESSDEVELOPMENTAND ACQUISITIONEXPERTISEASWECONTINUETOGROWOUR BUSINESS INTHEEVOLVINGOMNI-CHANNELRETAIL ENVIRONMENT. 11 RETAIL ASANOMNI-CHANNELRETAILER,WESEEKDIRECTORS WHOPOSSESSANUNDERSTANDINGOFFINANCIAL, OPERATIONALANDSTRATEGIC ISSUESFACINGLARGE RETAILCOMPANIES. 7 BRANDMARKETING DIRECTORSWITHRELEVANTEXPERIENCE IN CONSUMERMARKETINGORBRANDMANAGEMENT PROVIDE IMPORTANT INSIGHTSTOOURBOARD. 7 GLOBALBUSINESS DIRECTORSWITHBROAD INTERNATIONALEXPOSURE PROVIDEUSEFULBUSINESSANDCULTURAL PERSPECTIVESTOOURBOARD. 6 IDENTIFYING AND EVALUATING DIRECTOR NOMINEES BoardNominationProcess TheNominatingandGovernanceCommittee,inconsultationwiththe ChairmanoftheBoardandChiefExecutiveOfficer,reviewseachdirector’s continuationontheBoardpriortohisorherrenominationtoserveonthe Board.TheNominatingandGovernanceCommitteeevaluateswhetheror notthedirector,baseduponhisorherskills,background,expertiseand contributiontotheBoard,iscapableofsupportingLowe’spresentand futureneeds.Aftertheevaluationofadirector,theChairpersonofthe NominatingandGovernanceCommitteeandtheChairmanoftheBoard informeachdirectorunderconsiderationoftheCommittee’sdecision. Additionally,withtheassistanceofanindependentsearchfirm,the NominatingandGovernanceCommitteeconductstargetedsearchesto identifywell-qualifiedcandidateswhomayhavedifferentskillsor backgroundsneededfortheCompanytoexecuteitsstrategicvision.Ifan independentsearchfirmisused,theNominatingandGovernance Committeeretainsthesearchfirmandapprovespaymentofitsfees. TheNominatingandGovernanceCommitteewillconsidernominees recommendedbyshareholders,anditsprocessfordoingsoisnodifferent thanitsprocessforscreeningandevaluatingcandidatessuggestedby directors,managementoftheCompanyorthirdparties.See“Shareholder Proposalsforthe2018AnnualMeeting”elsewhereinthisProxyStatement forthetimeframeforshareholderstoprovidenoticeofanynominationsof personsforelectiontotheBoardofDirectors. BoardCommitment TheBoardunderstandsthesignificanttimecommitmentinvolvedwith servingontheBoardanditscommittees,andittakesstepstoassessthatall directorsanddirectornomineeshavethetimenecessarytofulfilltheir duties.OurNominatingandGovernanceCommitteeandBoardonly nominatecandidateswhotheybelievearecapableofdevotingthenecessary timetosuccessfullymeettheirduties,takingintoaccountprincipal occupations,membershipsonotherboardsandotherresponsibilities. DirectorsmustadviseourChairmanoftheBoardandLeadDirectorpriorto joiningtheboardofanotherpubliccompany,oranyassignmenttotheaudit orcompensationcommitteeoftheboardofdirectorsofanypubliccompany ofwhichsuchdirectorisamember.Inaddition,directorsmustofferto resignfromtheBoardasaresultofchangestotheirprincipaloccupation, subjecttofurtherconsiderationbytheNominatingandGovernance Committee.TheNominatingandGovernanceCommitteeassessesdirectors’ timecommitmenttotheBoardthroughouttheyear,includingthroughthe annualself-evaluationprocess,anditdeterminedthatallofthedirector nomineesclearlydemonstratedthenecessarytimecommitmentinvolvedin servingonourBoardanditscommittees. Further,theNominatingandGovernanceCommitteeregularlyassesses andcloselymonitorsshareholders’viewsontheappropriatenumberof publiccompanyboardsonwhichdirectorsmayserve.Inconnectionwithits reviewin2016,theNominatingandGovernanceCommitteeconsidered: inputfromourshareholdersduringourengagementdiscussion;voting policiesofthemajorproxyadvisoryfirms;corporategovernanceguidelines adoptedbyotherpubliccompanies;boardtrendsatpeercompanies;and advicefromoutsideadvisors. NOTICEOFANNUALMEETINGANDPROXYSTATEMENT2017 7 Total of 02 pages in section CorporateGovernance Committeemakesarecommendation tothefullBoardastoanypersonsitbelievesshouldbenominated bytheBoard, andtheBoarddeterminesthenomineesafterconsideringtherecommendation andreportoftheCommittee.The proceduresforconsideringcandidates recommendedbyastockholderforBoardmembershipareconsistentwiththe proceduresforcandidates recommendedbymembersoftheNominatingandCorporateGovernance Committee,other membersoftheBoardormanagement. Thegraphicsbelowprovideasnapshot ofourBoardcomposition,tenure,independence, andskills: GlobalBusiness 50% (7 out of14 members of the Board) Financial 64% (9 out of14 members of the Board) 64% (9 out of14 members of the Board) Business Knowledge / Strategy Investment /Legal 36% (5 out of14 members of the Board) Leadership 100% (14 out of14 members of the Board) Corporate 57% (8 out of14 members of the Board) 43% (6 out of14 members of the Board arewomen orminorities) GenderandRace BoardDiversity 12 yrs average tenure Tenure 5-10 years 11+ years 1-5 years Director Independence 79% (11 out of14 members of theBoard) BoardSkills 18 MarriottInternational,Inc. ProxySummary DirectorNominees’Experience,Tenure,IndependenceandDiversity TheCompanyhasnominatedhighly-qualified,independentleaderstocontinuetoserveonitsBoardofDirectors. 91%Independent 10 1 Independent Non-Independent CEO Accountable • AllDirectorselectedannually • RobustindependentLeadDirectorrole • Majorityvotingstandard GenderDiversity • 27%women Diversity of Skills and Experiences 7 7 3 8 6 5 8 6 9 9 10 Executive Leadership For amore detailed descriptionof the above skills and experiences, see“BoardComposition and Refreshment” on page 12 of this Proxy Statement. CorporateGovernance / PublicCompany Board Financial Services Global Literacy Regulated Industry /Government Investments Financial Expertise,CFO andAudit RiskManagement Consumer Insight /Analytics Technology CorporateAffairs OngoingBoardRefreshment RetirementAge+AnnualBoardEvaluation+ CommitmenttoOngoingRefreshment SixnewDirectorssince2013 Averagetenure6.6years DiversityofTenure 2 4 2 3 0-2Years 3-5Years 6-10Years 11-15Years 2018ProxyStatement 8 ProxySummary |2018MastercardProxy 2 Our Director Nominees’ Experience, Tenure, Independence and Diversity Corporate Governance Highlights Total of 03 pages in section