2018 Guide to Effective Proxies
2.10 Board skills matrix | 163 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES DANAHER CORPORATION DTE ENERGY COMPANY EXXON MOBIL CORPORATION FIRSTENERGY CORP Proposal1—ElectionofDirectorsofDanaher Board Selection and Refreshment DirectorSelection. TheBoardanditsNominatingandGovernanceCommitteebelievethatitisimportantthatourdirectorsdemonstrate: • personalandprofessionalintegrityandcharacter; • prominenceandreputationinhisorherprofession; • skills,knowledgeandexpertise(includingbusinessorotherrelevantexperience)thatinaggregateareusefulandappropriatein overseeingandprovidingstrategicdirectionwithrespecttoDanaher’sbusinessandservingthelong-terminterestsofDanaher’s shareholders; • thecapacityanddesiretorepresenttheinterestsoftheshareholdersasawhole;and • availabilitytodevotesufficienttimetotheaffairsofDanaher. TheNominatingandGovernanceCommitteeisresponsibleforrecommendingtotheBoardaslateofnomineesforelectionateach annualmeetingofshareholders.Nomineesmaybesuggestedbydirectors,membersofmanagement,shareholdersor,insomecases, byathird-partysearchfirm.TheCommitteeconsidersawiderangeoffactorswhenassessingpotentialdirectornominees.This includesconsiderationofthecurrentcompositionoftheBoard,anyperceivedneedforoneormoreparticularareasofexpertise,the balanceofmanagementandindependentdirectors,theneedforcommittee-specificexpertise,theevaluationsofotherprospective nomineesandthequalificationsofeachpotentialnomineerelativetotheattributes,skillsandexperiencedescribedabove.TheBoard doesnothaveaformalorinformalpolicywithrespecttodiversitybutbelievesthattheBoard,takenasawhole,shouldembodya diversesetofskills,knowledge,experiencesandbackgroundsappropriateinlightoftheCompany’sneeds,andinthisregardalso subjectivelytakesintoconsiderationthediversity(withrespecttorace,genderandnationalorigin)oftheBoardwhenconsidering directornominees.TheBoarddoesnotmakeanyparticularweightingofdiversityoranyothercharacteristicinevaluatingnominees anddirectors. AshareholderwhowishestorecommendaprospectivenomineefortheBoardshouldnotifytheNominatingandGovernance Committeeinwritingusingtheproceduresdescribedbelowunder“OtherInformation–CommunicationswiththeBoardofDirectors” withwhateversupportingmaterialtheshareholderconsidersappropriate.Ifaprospectivenomineehasbeenidentifiedotherthanin connectionwithadirectorsearchprocessinitiatedbytheCommittee,theCommitteemakesaninitialdeterminationastowhetherto conductafullevaluationofthecandidate.TheCommittee’sdeterminationofwhethertoconductafullevaluationisbasedprimarilyon theCommittee’sviewastowhetheraneworadditionalBoardmemberisnecessaryorappropriateatsuchtime,thelikelihoodthat theprospectivenomineecansatisfytheevaluationfactorsdescribedaboveandanyotherfactorsastheCommitteemaydeem appropriate.TheCommitteetakesintoaccountwhateverinformationisprovidedtotheCommitteewiththerecommendationofthe prospectivecandidateandanyadditionalinquiriestheCommitteemayinitsdiscretionconductorhaveconductedwithrespecttosuch prospectivenominee. Thegraphbelowillustratesthediversesetofskills,knowledge,experiencesandbackgroundsrepresentedonourBoard: ACCOUNTING/FINANCE 2 BRANDINGANDMARKETING 2 GOVERNMENT 1 INTERNATIONAL 4 LEGAL 1 LIFESCIENCES/HEALTHTECHNOLOGY 3 M&A/CORPORATEFINANCE 8 PUBLICCOMPANYCEOAND/ORPRESIDENT 5 TECHNOLOGY/INNOVATIONSTRATEGY 6 BoardRefreshment OurBoardactivelyconsidersBoardrefreshment.UsingourBoardskillsmatrixasaguideaswellastheresultsofourannualBoardand committeeself-assessmentprocess,theNominatingandGovernanceCommitteeevaluatesBoardcompositionatleastannuallyand DANAHER 2018PROXYSTATEMENT 5 DTEENERGY 2018PROXYSTATEMENT 5 Proposal No. 1 — Election of Directors TheBoardofDirectorshas nominated twelvedirectors for election at the2018 annual shareholdermeeting. Directors areelected to serveannual termswhich expirewhen their successors are electedat the next year’s annual shareholdermeeting.Allof the nomineesare currently directors of theCompany.CharlesW.Pryor, Jr.,who has served as adirector since 1999,announced inNovember 2017 that he intended to retire from theBoard effectiveMay3, 2018.Mr.Pryor is notnominated forelectionand therefore not included in the information below. Proxies cannotbe voted formore than twelve persons at thismeeting. Ifany nominee becomesunableor unwilling to serveat the time of themeeting, the persons named in the enclosedproxy cardhavediscretionaryauthority to vote fora substitutenominee or nominees. It isanticipated that all nomineeswill beavailable for election. Thebiographies of each of thenomineesbelow contain information regarding theperson’s service as a director, business experienceand director positionsheld currently oratany time during at least the last five years.Theage provided foreachdirector isasofMarch 8, 2018. Inaddition to the information presented below regardingeach person’sexperience, qualifications, attributes and skills that causedourCorporateGovernanceCommittee and Board todetermine that theperson should serve as a director, theBoard believes that all of theCompany’s directors havea reputation for integrity,honesty and adherence to highethical standards.Theyeach have demonstratedbusinessacumen, strategic insight,anability toexercise sound judgment anda commitment to service and community involvement.Finally,we value their significantexperienceon other public companyboards of directors and board committeesand the diversity that theybring toourBoard.The following graphs display information about the skillsandexperience ourBoardmembers bring to their service: 1 Information about theMeeting 2 CorporateGovernance &BoardofDirectors 4 Executive Compensation 5 SecurityOwnership&Other Important Information 3 Items toBeVotedOn Review of Director Nominees TheCorporateGovernanceCommittee,comprisedentirelyofindependentdirectors,recommendsBoard candidatesbyidentifyingqualifiedindividualsinamannerthatisconsistentwithcriteriaapprovedbyyour Board.InconsultationwiththeCEO,theChairmanoftheBoardandthefullBoard,theCorporate GovernanceCommitteesearchesfor,recruits,screens,interviewsandrecommendsprospectivedirectorsto provideanappropriatebalanceofknowledge,experienceandcapabilityonyourBoard.Suggestionsfor potentialBoardcandidatescometotheCorporateGovernanceCommitteefromanumberofsources, includingincumbentdirectors,officers,executivesearchfirmsandothers.TheCorporateGovernance Committeehassoleauthoritytoretainandengageathird-partysearchfirmtoidentifyacandidateor candidates.YourBoarddidnotuseathird-partytoassistwiththeidentificationandevaluationofthe directornominees. Qualifications,Attributes,SkillsandExperienceofyourBoard InrecruitingandselectingBoardcandidates,theCorporateGovernanceCommitteetakesintoaccountthe sizeoftheBoardandconsidersa“skillsmatrix”todeterminewhetherthoseskillsand/orotherattributes qualifycandidatesforserviceonyourBoard.Thequalifications,experiences,andskillsconsideredin accordancewithCorporateGovernancePoliciesandtheCorporateGovernanceCommitteecharterforeach directornomineeledyourBoardtoconcludethatthenomineeisqualifiedtoserveonyourBoard. Thehigh-leveloverviewbelowdepictssomeofthequalifications,attributes,skillsandexperienceofour directornominees.Itisnotintendedtobeanexhaustivelistofeachdirectornominee’sskillsorcontributions totheBoard.Pleasealsorefertothe“ProxyStatementSummary”sectionaboveforhighlightsregardingthe compositionofourdirectornominees,includingdiversity.Also,additionalbiographicalinformationand qualificationsforeachnomineeisprovidedinthe“BiographicalInformationandQualificationsofNominees forElectionasDirectors”sectionbelowandcontainsinformationregardingtheperson’sserviceasa director,principaloccupation,businessexperiencealongwithkeyattributes,experienceandskills. 100% 58% 50% 67% 75% 58% 75% 58% 92% Environmental, Social or Governance (ESG) CEO experience or senior leadership Current public company directorships Electric utility/nuclear power industry Accounting or financial Risk oversight or risk management Engineering, innovation or technology Independent Regulatory environment familiarity Attributes, Skills & Experience TheCorporateGovernanceCommitteebelievesthatwell-assembledboardsconsistofadiversegroupof individualswhopossessavarietyofcomplementaryskillsandexperiences.Itconsidersthisvarietyof complementaryskillsinthebroadercontextofyourBoard’soverallcompositionwithaviewtoward constitutingaBoardthat,asabody,possessestheappropriateskills,experience,attributes,andqualities requiredtosuccessfullyoverseeyourCompany’soperations. TheCorporateGovernanceCommitteeregularlyassessesthesizeandcompositionofyourBoardinlightof theoperatingrequirementsofyourCompanyandthecurrentmakeupofyourBoardinthecontextofthe needsofyourBoardataparticularpointintime.Eachofthenomineesbringsastrongandunique backgroundandskillsettoyourBoard,givingyourBoard,asawhole,competenceandexperienceina widevarietyofareasnecessarytooverseetheoperationsofyourCompany. 2 9 | FirstEnergyCorp. 2018ProxyStatement TheBoardiscomprisedofaneffectivemixofbackgrounds,knowledge,andskills.Thegraphbelowprovidesa summaryofthecollectivecompetenciesanddiversityoftheBoardnominees: RiskManagement DirectorAttributes (PercentofDirectorNomineeswithNotedAttribute) Financial Large/ComplexOrganizations GlobalBusiness Scientific/Environmental/Technical Operations Cyclical/CommodityBusiness Current/FormerCEO PublicCompanyBoard/Governance GenderDiversity EthnicDiversity Independent 100% 100% 100% 90% 90% 20% 30% 20% 90% 80% 60% 70% BoardSuccession Asnotedinthecommitteeinformationonpages11and12,theBoardAffairsCommitteeisresponsibleforidentifying directorcandidates.TheCommitteeseeksnewcandidatesinseveralways: ‰ Recommendationsmadebythenon-employeedirectors.Theserecommendationsaredevelopedbasedonthe directors’ownknowledgeandexperienceinavarietyoffieldsandontheresearchconductedbyExxonMobil staffattheCommittee’sdirection. ‰ Engagementofanexecutivesearchfirm.Thefirmbringsforwardpotentialdirectorcandidatesforthe CommitteetoconsiderandhelpsresearchcandidatesidentifiedbytheCommittee. ‰ Recommendationsmadebyemployeedirectors,shareholders,andothers. Allrecommendations,regardlessofthesource,areevaluatedonthesamebasisagainstthecriteriacontainedinthe SelectionGuidelines.TheCommitteehasalsoinstructeditsexecutivesearchfirmtoincludediversityaspartofthe candidatesearchcriteria. ShareholdersmaysendrecommendationsfordirectorcandidatestotheSecretaryattheaddressgivenunderContact Informationonpage4.Asubmissionrecommendingacandidateshouldinclude: ‰ SufficientbiographicalinformationtoallowtheCommitteetoevaluatethecandidateinlightoftheSelection Guidelines; ‰ Informationconcerninganyrelationshipbetweenthecandidateandtheshareholderrecommendingthe candidate;and ‰ Materialindicatingthewillingnessofthecandidatetoserveifnominatedandelected. Theproceduresbywhichshareholdersmayrecommendnomineeshavenotchangedmateriallysincelastyear’sproxy statement. TheCompanyseekstohaveadiverseBoardrepresentingarangeofbackgrounds,knowledge,andskillsrelevantto theCompany’sbusinessandtheneedsoftheBoard,andaspartofthesearchprocess,considershighlyqualified candidates,includingwomenandminorities.TheCommitteedoesnotusequotasbutconsidersdiversityalongwith theotherrequirementsoftheSelectionGuidelineswhenevaluatingpotentialnewdirectors. Directorattributes(percentofexistingdirectornomineeswithnotesattribute)RiskmanagementFinanciallarge/complexorganizationsGlobalbusinessScientificenvironmental/technicalOperationsCyclical/commoditybusinessCurrent/formerceoPubliccompanyboardgovernanceGenderdiversityEthnicdiversityIndependent 2018ProxyStatement 7 Total of 02 pages in section
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