2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 164 FTI CONSULTING, INC. GATX CORPORATION GENERAL DYNAMICS CORPORATION GENERAL MOTORS • OtherPublicCompanyBoardExperience. Experienceservingontheboardsandboardcommitteesofotherpublic companiesprovidesanunderstandingofcorporategovernancepracticesandtrendsandinsightsintoboardmanagement andtherelationshipsamongtheboard,thechiefexecutiveofficerandothermembersofseniormanagement • GlobalExperience. ExperiencemanagingorgrowingcompaniesoutsidetheU.S.orwithglobalcompaniestobroadenour knowledge,helpdirectourglobalexpansionandhelpnavigatethehurdlesofdoingbusinessoutsidetheU.S. Inaddition,theNominatingandCorporateGovernanceCommitteeandtheBoardconsiderotherfactors,asitdeterminestobe appropriate,including: • IntegrityandCredibility. Highethicalstandardsandstrengthofcharacterinthecandidate’spersonalandprofessional dealings,andawillingnesstobeheldaccountable • BusinessJudgment. Matureandpracticaljudgment,andahistoryofmakinggoodbusinessdecisionsingoodfaithandin amannerthatwillbeinthebestinterestsoftheCompanyanditsstakeholders • CollaborativeWorkEthic. Abilitytoworktogetherwithotherdirectorsandmanagementtocarryouthisorherdutiesin thebestinterestsoftheCompanyanditsstakeholders • NeedforExpertise. Theextenttowhichthecandidatehassomequalityorexperiencethatwouldfillapresentneedon theBoard • SufficientTime. ThecandidateiswillingtodevotesufficienttimeandefforttotheaffairsoftheCompany,aswellas otherfactorsrelatedtotheabilityandwillingnessofthecandidatetoserveontheBoard QualificationsoftheIncumbentDirectors OurdirectornomineesareadiversegroupofexperiencedbusinessleaderswhoprovideuniqueperspectivestotheCompany’s businessdiscussionsandstrategicplanswhichwebelieveiscriticaltoensuringthatwemaintainahigh-functioningBoard. Collectively,thetenureofourdirectornomineesbalancedeepexperienceattheCompanywithfreshperspectives.Ourdirector nomineesalsohavediverseexpertiseandskillsthatenablethemtoeffectivelycarryouttheirdutiesandresponsibilities: Director Leadership Financeand Accounting Servicesor Industry Government OtherPublic Company Board Experience Global Independence BrendaJ.Bacon ✓ ✓ ✓ ✓ ✓ MarkS.Bartlett ✓ ✓ ✓ ✓ ✓ ✓ ClaudioCostamagna ✓ ✓ ✓ ✓ ✓ ✓ VernonEllis ✓ ✓ ✓ ✓ ✓ ✓ NicholasC.Fanandakis ✓ ✓ ✓ ✓ ✓ ✓ StevenH.Gunby ✓ ✓ ✓ ✓ GerardE.Holthaus ✓ ✓ ✓ ✓ ✓ ✓ LaureenE.Seeger ✓ ✓ ✓ ✓ ✓ 7 ELECTIONOFDIRECTORS Director Experience, Qualifications, and Skills The Governance Committee is responsible for recommending to the full Board a slate of director nominees who collectively have the complementary experience, qualifications, skills, and attributes to guide the Company and function effectively as a Board. We believe that each of the nominees satisfies the criteria for membership set forth above and has key skills and attributesthatare important to an effective board. Each of the nominees, other than Mr. Kenney, is also independent of the Company and management. See Board Independence onpage 5. Listed below are certain key experiences, qualifications, and skills of our director nominees that the Governance Committee believes are relevant and important in light of GATX’s businessand structure. Snapshot of 2017 Director Nominees 6.1 years AverageAge of independent directors AverageTenure of independent directors 64.1 years years years years <1 - 3 4 -6 7 - 10 years 10+ 2 Directors 2 Directors 1 Director 4 Directors OurDirectors’CoreSkills: Business /Operations 4 5 9 Operations OtherTransportation RailTransportation 3 RawMaterials 9 HumanResources andRecruiting 10 CustomerPerspectives 7 CFOExperience 10 BoardExperience Finance /Transactions Legal /Accounting /OtherRisk-RelatedExperience Management /Board 8 10 9 9 10 6 4 9 8 9 International andEmergingMarkets Finance andCapitalMarkets Mergers andAcquisitions RiskManagement Accounting andFinancialAudit Technology andDataSecurity Law and Litigation Regulatory /PublicAffairs CEOExperience CEOSuccessionPlanning GATXCORPORATION - 2017ProxyStatement 15 ITEMNO.1 –ELECTIONOFDIRECTORS DiversityofSkills,Qualifications,andExperience YourBoardnomineesofferadiverserangeofskillsandexperienceinrelevantareas. SKILL/ QUALIFICATION BARRA SOLSO GOODEN JIMENEZ MENDILLO MULLEN MULVA RUSSO SCHOEWE STEPHENSON WENIG Senior Leadership Š Š Š Š Š Š Š Š Š Š Š Industry Š Š Manufacturing Š Š Š Š Š Š Š Technology Š Š Š Š Š Š Š Š RiskManagement Š Š Š Š Š Š Š Š Š Š Š Global Š Š Š Š Š Š Š Š Š Š Š Finance Š Š Š Š Š Š Š Š Š Š Government Š Š Š Š Marketing Š Š Š Š Š Diversity Š Š Š Š Š Š Board Membership Criteria, Refreshment, and Succession Planning TheselectionofqualifieddirectorsisfundamentaltotheBoard’ssuccessfuloversightofGM’sstrategyandenterpriserisks.Asaresult, ensuring your Board is composed of directors who bring diverse viewpoints and perspectives, exhibit a variety of skills, professional experiences, and backgrounds, and effectively represent the long-term interests of shareholders is critical to your Board and the GovernanceCommittee.TheprioritiesforrecruitingnewdirectorsarecontinuallyevolvingbasedontheCompany’sstrategicneedsand theskillscompositionofyourBoardatanyparticulartime.ThesedynamicprioritiesensuretheBoardremainsastrategicassetcapableof addressingtherisks,trends,andopportunitiesthatGMwillfaceinthefuture.Inevaluatingpotentialdirectorcandidates,theGovernance Committeeconsiders,amongotherfactors,thecriteriashownaboveintheskillsandqualificationsmatrixforyourcurrentdirectorsand anyadditionalcharacteristicsthatitbelievesoneormoredirectorsshouldpossessbasedonanassessmentoftheneedsoftheBoardat thattime.Ineverycase,directorcandidatesmustbeabletocontributesignificantlytoyourBoard’sdiscussionanddecision-makingon thebroadarrayofcomplexissuesfacingGM.TheGovernanceCommitteealsoengagesareputable,qualifiedsearchfirmthatusesour skillsmatrixtoinformthesearchandhelpidentifyandevaluatepotentialcandidates. BoardDiversity TheGovernanceCommitteeconsidersindividualswithabroadrangeofbusinessexperienceandvariedbackgrounds.AlthoughGMdoes not have a formal policy governing diversity among directors, your Board strives to identify candidates with diverse backgrounds. We recognize the value of overall diversity and consider members’ and candidates’ opinions, perspectives, personal and professional experiences, and backgrounds, including gender, race, ethnicity, and country of origin. We believe that the judgment and perspectives offeredbyadiverseboardofdirectorsimprovesthequalityofdecisionmakingandenhancestheCompany’sbusinessperformance.We alsobelievesuchdiversitycanhelptheBoardrespondmoreeffectivelytotheneedsofcustomers,shareholders,employees,suppliers,and otherstakeholders. G E N E R A L M O T O R S 2018 PROXYSTATEMENT 9 E LECTION OF THE B OARD OF D IRECTORS OF THE C OMPANY (P ROPOSAL 1) Director Nominations. General Dynamics’ directors are elected at each annual meeting of shareholders and hold office for one-year terms or until successors are elected and qualified. The Nominating and Corporate Governance Committee considers director nominees from various sources and chooses nominees with the primary goal of ensuring the Board collectively serves the interestsofshareholders. Diversity and Inclusion. In order to sustain a global business, we must bring together a group of people with a vision for the futureanddiversityofthought.Wemusthaveleadership,atboththeexecutiveandBoardlevels,todevelopandexecuteourbusiness objectivesbetterthanourcompetition.Attheheartofourcompanyarediverseexecutives,managersandemployeesworldwidewho relyontheirintimateknowledgeofcustomerrequirementsandauniqueblendofskillsandinnovationtodevelopanddeliverthebest possibleproductsandservices. The nominees for election to the Board come from a variety of backgrounds and bring a diverse set of skills and experiences to the boardroom.Thisensuresthatourdirectorsbringabroadperspectivetothecompanyonarangeofimportantissues. Balanced Board with Unique Perspectives 7 Current or FormerPublic Company Directors 5 CurrentorPast CEOsof Complex,Global and/orPublic Companies 4 Directorswith PriorTop LeadershipPosts in theMilitary or U.S.Department ofDefense 5 Directors are Womenor Minorities 4 Directorswith Experience in LeadingComplex Operating and Manufacturing Firms 8 Directorswith Significant Financial Backgroundsor Expertise 6 GeneralDynamics2018ProxyStatement Total of 02 pages in section