2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 162 CHIPOTLE MEXICAN GRILL, INC. CIENA CORPORATION CME GROUP INC. CSG SYSTEMS INTERNATIONAL, INC. Proposal 1 (continued) Thegraphicbelowdepictsanumberofthekeyskills,experiencesandattributesourBoardbelievestobeimportanttohave representedontheBoard,andidentifiesthenumberofcontinuingdirectorshavingthoseskills,experiencesandattributes. SKILLS,EXPERIENCEANDATTRIBUTES LEADERSHIP 7/9DIRECTORS (CEO;LEADERSHIPOFLARGEORGANIZATIONS;PUBLIC COMPANYBOARDSERVICE) RESTAURANTINDUSTRY 6/9DIRECTORS (SOURCING&SUPPLY;FOODSAFETY;QUALITYASSURANCE) HR/PEOPLE MANAGEMENT 3/9DIRECTORS (RECRUITING;TALENTDEVELOPMENT&MOTIVATION; COMPLIANCE) FINANCE/ACCOUNTING 6/9DIRECTORS (ACCOUNTINGSYSTEMS;PUBLICREPORTING;INTERNAL CONTROLS) RISK MANAGEMENT 3/9DIRECTORS (OVERSIGHT&EVALUATION) BRANDING/MARKETING 5/9DIRECTORS (CUSTOMERRELATIONS;BRANDINNOVATION) TECHNOLOGY 1/9DIRECTORS (BUSINESSEFFICIENCY;REVENUEOPPORTUNITIES; CYBERSECURITY) REAL ESTATE 4/9DIRECTORS (SITESELECTION;PROPERTYADMINISTRATION) INTERNATIONAL 5/9DIRECTORS (FOREIGNJURISDICTIONS;ORGANIZATIONAL&TAX STRUCTURE) SUSTAINABILITY 2/9DIRECTORS (ENVIRONMENTAL,SOCIAL&GOVERNANCEISSUES) GOVERNMENT RELATIONS 3/9DIRECTORS (REGULATION,INVESTIGATIONS&COMPLIANCE) INVESTOR RELATIONS 6/9DIRECTORS (ENGAGEMENTREGARDINGSTRATEGY,COMPENSATION,AND CORPORATEGOVERNANCE) DIVERSITY 1/9DIRECTORS (GENDER;ETHNIC/NATIONALORIGIN) TheBoardofDirectorsheldsevenmeetingsin2017.Each directorattendedatleast75percentofthemeetingsofthe Boardandofcommitteesofwhichtheyweremembers duringthetimeinwhichtheyservedasamemberofthe Boardin2017.TheBoardhasrequestedthateachofits membersattendourannualshareholdermeetingsabsent extenuatingcircumstances,andalldirectorsservingonthe Boardfollowingthedateofthe2017annualmeeting attendedthemeeting. A Majority of our Board Members Are Independent OurBoardofDirectors,underdirectionoftheNominating andCorporateGovernanceCommittee,reviewsthe independenceofourdirectorstodeterminewhetherany relationships,transactionsorarrangementsinvolvingany directororanyfamilymemberoraffiliateofadirectormay bedeemedtocompromisethedirector’sindependence fromus,includingundertheindependencestandards containedintherulesoftheNYSE.Basedonthatreview,in March2018theBoarddeterminedthatnoneofour NOTICEOFANNUALMEETINGOFSHAREHOLDERSAND 2018PROXYSTATEMENT 11 DIRECTORINDEPENDENCEANDGENDERDIVERSITY DirectorIndependence 80% Independent 2 8 DirectorGenderDiversity 20% Female 2 8 DIRECTOREXPERIENCEANDQUALIFICATIONS Experience/ Qualification Cash Claflin Fathers Fitt Gallagher Nettles Nevens O’Brien Rowny Smith Senior Leadership Experience ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Accounting andFinancial Expertise ✓ ✓ ✓ ✓ ✓ Industry Experience ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Mergersand Acquisitions Experience ✓ ✓ ✓ ✓ ✓ ✓ ✓ OtherPublic Company Board Experience ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ International Business Experience ✓ ✓ ✓ ✓ ✓ ✓ Strategic Planning Experience ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Eachofthenomineeshasconsentedtoserveifelected.However,ifanyofthepersonsnominatedbytheBoardofDirectors failstostandforelection,ordeclinestoacceptelection,orisotherwiseunavailableforelectionpriortoourAnnualMeeting, proxiessolicitedbyourBoardofDirectorswillbevotedbytheproxyholdersfortheelectionofanyotherpersonorpersonsasthe BoardofDirectorsmayrecommend,orourBoardofDirectors,atitsoption,mayreducethenumberofdirectorsthatconstitute theentireBoardofDirectors. 2018ProxyStatement 5 2018Proxy Statement | 11 PROPOSAL 1 – ELECTION OF DIRECTORS TheBoard isdivided into three classespresently consisting of threeClass IDirectors, threeClass IIDirectors, and three Class IIIDirectors. Class I consistsofRonaldH.Cooper, Janice I.Obuchowski, andDonaldB.Reed,whose terms will expire at the 2019 annualmeetingof stockholders. Class II consistsofDavidG.Barnes,MarwanH. Fawaz, and DonaldV. Smith,whose termswill expire at the 2020 annualmeetingof stockholders.Class III consistsofBretC. Griess, FrankV. Sica, and JamesA.Unruh,whose termswill expire at theAnnualMeeting. TheBoard,upon recommendationby theNominatingand CorporateGovernanceCommittee,hasnominatedMr. Griess,Mr.Sica,andMr.Unruh tobeelectedasClass III Directorsat theAnnualMeeting.Unless theproxy ismarked otherwise, thepersonactingunder theaccompanyingproxy will vote toelectMr.Griess,Mr.Sica,andMr.Unruhas the Class IIIDirectors to serveuntil the2021annualmeetingof stockholders.Theproxymaynotbe voted formore than threedirectors. Ifanominee isunable to serve, then the personactingunder theproxymay vote theproxy for the electionofa substitutenominee.TheCompanypresently expects thatall threenomineeswillbeable to serve,and eachof thedirectornomineeshas consented to serveas directorson theBoard. The following chartoutlines the areasof expertise that eachdirector servingon theBoardpossesses. In addition, wehaveprovided abrief summaryof those skillswith each director’sbiographical informationbelow. DirectorSkills and Experience David Barnes Ronald Cooper Marwan Fawaz Bret Griess Janice Obuchowski Donald Reed Frank Sica Donald Smith James Unruh Accounting / Finance ● ● ● ● ● ● ● CapitalMarkets /Debt Financing ● ● ● ● CorporateGovernance ● ● ● ● ● ● ● ● ● Executive Leadership ● ● ● ● ● ● ● ● ● Government /PublicPolicy ● ● ● ● Information Security /Privacy ● ● International ● ● ● ● ● ● ● ● ● Marketing / Sales ● ● ● ● ● ● Mergers /Acquisitions ● ● ● ● ● ● ● TheBoardRecommends aVote FOR the Electionof Eachof theThreeNominees forClass IIIDirector. The following information relates to theBoard’snominees for election at theAnnualMeeting and to theotherdirectorsof theCompanywhose termsofofficewill continue after theAnnualMeeting: Nominees for Class III Directors – Term to Expire in 2021: BRETC.GRIESS President andCEO Age: 49 DirectorSince: January 2016 Mr.Griess currently servesasourPresidentandCEO.He joined theCompany in1996andhelda varietyofpositions inOperationsand InformationTechnology,untilbeing appointed ExecutiveVicePresidentofOperations in February2009,ChiefOperationsOfficer inMarch2011,and President in June2015. In January2016,Mr.Griesswas appointedPresidentandCEOandamemberofourBoard. Mr.GriessholdsanM.A.degree inManagementandaB.S. degree inManagement fromBellevueUniversity in Nebraska,andanA.A.S.degree from theCommunity Collegeof theAir Force. ITEM1—ElectionofEquityDirectors (Continued) DennisA.Suskind Age: 75 Directorsince: 2008 PublicDirectorships: BridgehamptonNationalBank (ViceChairman) Navistar,Inc. PreviousDirectorship: LiquidHoldingsGroup,Inc. Mr.SuskindisaretiredGeneralPartnerofGoldmanSachs&Co.Duringhistenureintrading,Mr.SuskindservedasVice ChairmanofNYMEX,ViceChairmanofCOMEX,amemberoftheboardoftheFuturesIndustryAssociation,amemberofthe boardofInternationalPreciousMetalsInstitute,amemberoftheboardsoftheGoldandSilverInstitutesinWashington,DCand wasaninauguralmemberoftheFutureIndustryAssociation’sHallofFame.HeisthePresidentoftheboardoftheHampton ClassicHorseShowandoftheboardoftheSteinEriksenLodgeHotel.HepreviouslyservedasthePresidentoftheArthurAshe InstituteforUrbanHealthforfifteenyears.HealsoservedontheboardofNYMEXHoldings,Inc.untilourmergerin2008. DIRECTORATTRIBUTES Webelieveallourboardmembershaveaninquisitiveandobjectiveperspective,practicalwisdomandmaturejudgment.In addition,thefollowinghighlightsthekeycharacteristicstheboardbelievesqualifiesitsEquitydirectornomineesandcurrent ClassBdirectorstoservetheinterestsofourshareholders.Thissummary,however,isnotmeanttobeacompletedescriptionof alltheskillsandattributesofourboardmembers.Additionaldetailsonourindividualdirectorsanddirectornomineesareset forthintheirindividualbiographies.TheClassBnomineesarenominatedbyaseparatenominatingcommittee.Therefore,the boardhasnotassessedtheattributesoftheClassBnomineeswhoarenotcurrentlymembersoftheboard. ATTRIBUTE DIRECTORANDDIRECTORNOMINEESWITHATTRIBUTES IndustryExperience Possessesanunderstandingofourmarketsasaresultoftradingour products,servingasanofficerofafirmwhichtradesourproductsor workinginthefinancialservicesindustry. TerrenceA.Duffy JeffreyM.Bernacchi TimothyS.Bitsberger CharlesP.Carey ElizabethA.Cook MartinJ.Gepsman GedonHertshten RonaldA.Pankau AlexJ.Pollock TerryL.Savage WilliamR.Shepard HowardJ.Siegel DennisA.Suskind DavidJ.Wescott GovernmentRelations/Regulatory/PublicPolicy Experienceinteractingwithourregulatorsandmembersofgovernmentor priorserviceingovernment. TerrenceA.Duffy TimothyS.Bitsberger CharlesP.Carey DanielR.Glickman DeborahJ.Lucas RonaldA.Pankau AlexJ.Pollock DennisA.Suskind ManagementExperience Experienceasachiefexecutiveofficer,presidentorseniorvicepresident ofacompanyorasignificantsubsidiary,operatingdivisionorbusiness unit. TerrenceA.Duffy TimothyS.Bitsberger DennisH.Chookaszian AnaDutra LarryG.Gerdes DanielR.Glickman GedonHertshten RonaldA.Pankau AlexJ.Pollock DennisA.Suskind FinancialExpertise Experienceasachieffinancialofficerorsimilarfinancialoversight experienceandmeetsthedefinitionofafinancialcommitteeexpert. DennisH.Chookaszian LarryG.Gerdes ProfessionalAccreditations Possessesanadvanceddegree. JeffreyM.Bernacchi DennisH.Chookaszian AnaDutra LarryG.Gerdes DanielR.Glickman DeborahJ.Lucas AlexJ.Pollock RiskManagementExperience Experienceinoverseeingriskmanagementprocessesandprocedures. CharlesP.Carey DennisH.Chookaszian GedonHertshten WilliamR.Shepard DennisA.Suskind DavidJ.Wescott OtherPublicCompanyDirectorship Experienceservingasadirectorofanotherpubliclytradedcompany. CharlesP.Carey DennisH.Chookaszian LarryG.Gerdes DanielR.Glickman GedonHertshten DeborahJ.Lucas AlexJ.Pollock TerryL.Savage DennisA.Suskind 8 NoticeofAnnualMeetingofShareholders and2018ProxyStatement