2018 Guide to Effective Proxies

2.10 Board skills matrix | 171 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES SPX CORPORATION SVB FINANCIAL GROUP TERADATA UNISYS CORPORATION PROPOSAL NO. 1: ELECTION OF DIRECTORS Director and Nominee Skills and Experience UndertheleadershipofourNominatingandGovernanceCommittee,ourBoarddevelopedandmaintainsadirectorskills matrixthatidentifiesexpertiseandexperiencethattheBoardbelievescontributetoaneffectiveandwell-functioningboard andthattheBoardasawholeshouldpossess. TheNominatingandGovernanceCommitteeandtheBoardusethismatrixtoidentifyareasfordirectortrainingandasatool tomaintainabalancedandwell-roundedboard.Inaddition,theNominatingandGovernanceCommitteeconsiderstheseand othercriteriawhenevaluatingpotentialcandidatesfortheBoard.Together,thisvarietyofskillsets,experiences,andpersonal backgroundsallowsourdirectorstoprovidethediversityofthoughtthatiscriticaltotheBoard’sdecision-makingand oversightprocess.ForabetterunderstandingofourBoardqualificationsanddiversity,weencourageyoutoread“Director Nominees,Qualifications, andDiversity”beginningonpage2. Lowe O'Leary Puckett Roberts Shaw Toth Utley EmployeeEngagement,Safety,andTalent Examples include culture, safety results, andworkforceplanning StrategicPortfolioManagement Examples includeexperiencewith acquisitions, divestitures, integration,and strategic planning Operations andContinuous Improvement Examples includeexperience in operations, projectmanagement, and supply chainmanagement Innovation andTechnologyDevelopment Examples include research&development,newproduct introductions,andbusiness transformation GrowthandValueCreation Examples include sales,distribution, and channelmanagement FinancialPlanningandReview Examples include financial andaccounting experience CEOExperience CorporateGovernance ExecutiveCompensation RiskManagement Ethics andCompliance TechnologyandCybersecurity IndustryExpertise (multi-industrialmanufacturing) TechnicalExpertise (e.g., direct hands-on experience and subject-matterexpertduring his/her career) ManagerialKnowledge (e.g.,experience derived through generalmanagerial experience) WorkingKnowledge (e.g.,exposure asaBoard committeemember atSPX or another company) NoKnowledge (e.g.,exposure comes fromBoardCommittee report-outs only) RATINGSCALE OTHERKEYEXPERIENCE ENTERPRISEPRIORITIES \EmployeeEngagement,Safety,andTalentExamplesincludeculture,safetyresults,andworkforceplanningStrategicPortfolioManagementExamplesincludeexperiencewithacquisitions,divestitures,integration,andstrategicplanningOperationsandContinuousImprovementExamplesincludeexperienceinoperations,projectmanagement,andsupplychainmanagementInnovationandTechnologyDevelopmentExamplesincluderesearch&development,newproductintroductions,andbusinesstransformationGrowthandValueCreationExamplesincludesales,distribution,andchannelmanagementFinancialPlanningandReviewExamplesincludefinancialandaccountingexperienceCEOExperienceCorporateGovernanceExecutiveCompensationRiskManagementEthicsandComplianceTechnologyandCybersecurityIndustryExpertise(multi-industrialmanufacturing)LoweO’LearyPuckettRobertsShawTothUtleyENTERPRISEPRIORITIESOTHERKEYEXPERIENCETechnicalExpertise(e.g.,directhands-onexperienceandsubject-matterexpertduringhis/hercareer)ManagerialKnowledge(e.g.,experiencederivedthroughgeneralmanagerialexperience)WorkingKnowledge(e.g.,exposureasaBoardcommitteememberatSPXor anothercompany)NoKnowldge(e.g.,xposurecomesfromBoadCommitteereport-outsonly) 14 2018PROXYSTATEMENT BoardandCorporateGovernanceHighlights (BasedoncurrentBoardprofileandpractices) B OARD C OMPOSITION • Total of 12 current directors—all independent directors,exceptforCEOdirector • SeparateBoardChairpersonandCEOroles • IndependentBoardChairperson • Independent chairpersons and members of all Board committees • Seasoned Board with diverse experience, including innovationeconomyindustries,banking/financialservices, global, finance/accounting, risk oversight/management andGovernment/Regulatory • No director serves on more than one public company board,otherthantheCompany • Policy requiring directors to submit their resignation uponreachingtheageof75 B OARD A CCOUNTABILITY • Annualelectionofdirectors • Effective majority voting standard in uncontested directorelections(throughdirectorresignationpolicy) • AnnualBoardandcommitteeevaluations • Regularly-held executive sessions of non-management directors • Robust executive and director equity ownership guidelines • IndependentBoardevaluationofCEOperformance • IndependentBoardapprovalofCEOcompensation • Ongoing director nominee identification and selection process • Limitondirectorcompensationunderequityplan BoardTenure 2 5 5 5yearsor less 16.6% 6 to9years 10+years 0 1 NumberofDirectors 2 3 4 5 41.7% 41.7% AgeDiversity 5 60yearsandunder 0 1 2 3 4 5 41.7% GenderDiversity Women 0 1 2 3 4 5 25% 3 D IRECTOR Q UALIFICATIONS Ourdirectorsreflectaneffectiveanddiversemixofskillsandexperience: Finance/Accoun�ng RiskOversight/Management Government/Regulatory 2 2 5 Client Industry Banking/FinancialServices Global 8 8 4 Leadership 10 S TOCKHOLDER I NTERESTS • Allindependentdirectors,exceptforCEOdirector • SeparateBoardChairpersonandCEOroles • Activestockholderengagementpractices • AnnualSayonPayvote • Stockholdersmayactbywrittenconsent • Onesinglevotingclass—commonstockclass • Nopoisonpill R ISK M ANAGEMENT • Boardandindividualcommitteeoversightofrisk • Separate Board Risk Committee focused on enterprise-wideriskmanagementframework • Risk Committee comprised of the chairpersons of the BoardandallsixBoardcommittees • Risk management guided by Risk Appetite Statement (reviewedonanannualbasisbythefullBoard) iv SUMMARYINFORMATION BACKGROUND AND EXPERIENCE 9 out of 9 Senior Leadership 7outof 9 Public Company Board 4outof 9 CEO 4outof 9 Financial Expertise 8outof9 Technology 7outof9 Industry Sectors 6outof9 International Key Senior Leadership Experience serving in a senior leadership role of a complex organization Public Company Board Experience as a board member of another publicly-traded company CEO Experience serving as a Chief Executive Officer of a publicly-traded company Financial Expertise Experience or expertise in finance, accounting, financial management or financial reporting Technology Experience or expertise in the information technology industry Industry Sectors Knowledge of or experience in one or more of the client industry sectors or growth segments that the Company serves International Experience with global business operations or with doing business internationally 5 ELECTION OF DIRECTORS (Item 1 on Proxy Card) TheBoardofDirectorsiscurrentlydividedintothreeclasses.Directorsareelectedbystockholdersfortermsofthree yearsandholdofficeuntiltheirsuccessorsareelectedandqualified.Oneofthethreeclassesiselectedeachyearto succeedthedirectorswhosetermsareexpiring.Asofthe2018annualmeeting,thetermsforthedirectorsinClasses I,IIandIIIoftheBoardofDirectorsexpirein2020,2018and2019,respectively. Ms.BacusandMessrs.Chou,RinglerandSchwarzcurrentlyareClassIIdirectorswhosetermsareexpiringatthe2018 annualmeeting.Forthereasonsdescribedbelow,eachoftheClassIIdirectorshasbeennominatedbytheboardfor re-electionthroughthe2021annualmeetingofstockholdersanduntilhisorhersuccessoriselectedandqualified. Proxiessolicitedbytheboardwillbevotedfortheelectionofthenominees,unlessyouinstructotherwiseonyour proxy.Eachofthenomineesiswillingtoserveifelected.Theboardhasnoreasontobelievethatthesenomineeswill beunabletoserve.However,ifoneofthemshouldbecomeunavailable,theboardmayfurtherreducethesizeofthe boardordesignateasubstitutenominee.Iftheboarddesignatesasubstitute,sharesrepresentedbyproxieswillbe votedforthesubstitutenominee. The Board of Directors recommends that you vote FOR the election of each of the Class II nominees as a director. Electionofeachnomineerequirestheaffirmativevoteofamajorityofthevotingpowerpresent(inpersonorby proxy)atthemeetingandentitledtovoteonsuchelection.Ifanomineedoesnotreceiveamajorityvote,heorshe isrequiredtotenderhisorherresignationforconsiderationbythedisinterestedmembersoftheBoardofDirectors inaccordancewithourCorporateGovernanceGuidelinesasdescribedonpage12ofthisproxystatement.Proxies solicitedbytheBoardofDirectorswillbevotedFOReachnominee,unlessyouspecifyotherwiseinyourproxy. Abstentionswillhavethesameeffectasvotesagainstthematterandsharesthatarethesubjectofabroker “non-vote”willbedeemedabsentandwillhavenoeffectontheoutcomeofthevote. Director Qualifications OurBoardofDirectorscurrentlyconsistsoftenmemberswhowebelieveareextremelywell-qualifiedtoserveonthe boardandrepresentourstockholders’bestinterests.Asdescribedonpage15ofthisproxystatementunderthe caption“SelectionofNomineesforDirectors,”theboardanditsCommitteeonDirectorsandGovernance(the “GovernanceCommittee”)selectnomineeswithaviewtoestablishingaBoardofDirectorsthatiscomprisedof memberswho: • haveextensivebusinessleadershipexperience, • bringdiverseperspectivestotheboard, • areindependentandcollegial, • havehighethicalstandardsaswellassoundbusinessjudgmentandacumen,and • understandandarewillingtomakethetimecommitmentnecessaryfortheboardtoeffectivelyfulfillits responsibilities. Key Qualifications and Attributes ExecutiveLeadership Software andTechnology IndustryExperience Gender/EthnicDiversity FinancialExpertise InternationalExperience GovernanceExpertise 4 2018PROXYSTATEMENT