2018 Guide to Effective Proxies

2.11 Board committee grids | 177 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES DEVON ENERGY CORPORATION EXELIXIS, INC. EXXON MOBIL CORPORATION GATX CORPORATION CORPORATE GOVERNANCE (cont’d) Committees The Board of Directors has four standing Committees: Audit, Compensation, Governance and Reserves. The Charters for these Committees are available on the Company’s website, www.devonenergy.com. The following table shows each Committee’s current membership, function and the number of meetings each Committee held in 2017: Members Functions ofCommittee Number of Meetings in 2017 AuditCommittee Mary P. Ricciardello 1,2 BarbaraM. Baumann RobertH.Henry MichaelM. Kanovsky 8 Members Functions ofCommittee Number of Meetings in 2017 CompensationCommittee Duane C. Radtke 1 John E. Bethancourt Robert A.Mosbacher, Jr. 7 Monitors the integrity of the Company’s financial statements and reporting system; Oversees the Company’s compliance with legal and regulatory requirements; Appoints the independent auditors and monitors their qualifications and independence; Monitors the performance of the Company’s internal auditors and independent auditors; Reviews the Company’s financial risk exposure and the steps management has taken to monitor and control such exposure; and Monitors thebusinesspracticesandethical standardsof theCompany. Reviews and approves the Company’s compensation philosophy and strategy; Directs management to administer the annual compensation process in accordance with the stated compensation strategy of the Company and any requirements of the appropriate regulatory bodies; Reviews and approves the Company’s employee benefit and incentive programs; Annually reviews and determines total compensation for eachmanagementDirector; Reviews and approves total compensation for the Company’s executive officers in consultation with the President and CEO; Reviews with the President and CEO and advises the Board with regard to executive officer succession planning; and Assessesand considers the independenceofanyadvisor that provides advice to theCommittee. 20 Commitment Runs Deep MembersFunctionsofCommitteeNumberofMeetingsin2016AuditCommitteeMaryP.Ricciardello 1,2 BarbaraM.BaumannRobertH.HenryMichaelM.KanovskyMonitorstheintegrityoftheCompany’sfinancialstatementsandreportingsystem;8OverseestheCompany’scompliancewithlegalandregulatoryrequirements;Appointstheindependentauditorsandmonitorstheirqualificationsandindependence;MonitorstheperformanceoftheCompany’sinternalauditorsandindependentauditors;ReviewstheCompany’sfinancialriskexposureandthestepsmanagementhastakentomonitorandcontrolsuchexposure;andMonitorsthebusinesspracticesandethicalstandardsoftheCompany.MembersFunctionsofCommitteeNumberofMeetingsin2016CompensationCommitteeDuaneC.Radtke 1 JohnE.BethancourtRobertA.Mosbacher,Jr.ReviewsandapprovestheCompany’scompensationphilosophyandstrategy;6Directsmanagementtoadministertheannualcompensationprocess inaccordancewiththestatedcompensationstrategyoftheCompanyandanyrequirementsoftheappropriateregulatorybodies;ReviewsandapprovestheCompany’semployeebenefitandincentiveprograms;AnnuallyreviewsanddeterminestotalcompensationforeachmanagementDirector;ReviewsandapprovestotalcompensationfortheCompany’sexecutiveofficersinconsultationwiththePresidentandCEO;ReviewswiththePresidentandCEOandadvisestheBoardwithregardtoexecutiveofficersuccessionplanning;andAssessesandconsiderstheindependenceofanyadvisorthatprovidesadvicetotheCommittee. Total of 02 pages in section Proposal1 | CorporateGovernance corporategovernance.Forournon-employeedirectors,ourStockOwnershipGuidelinesprovideanownershiptargetequal tothelesserof3,000sharesoravalueequivalenttothreetimestheannualcashBoardretainer.Undertheguidelines,we expectnon-employeedirectorstoachievetheirstockownershiptargetswithinfiveyearsofbecomingsubjecttothese guidelines.Thepolicyincludesproceduresforgrantingexemptionsinthecaseofseverefinancialhardship.Ownership targetsforourNamedExecutiveOfficers(includingthoseservingonourBoard)aredescribedbelowunder Compensation DiscussionandAnalysis—OtherCompensationInformation—StockOwnershipGuidelines. Indeterminingownershiplevelsforeachnon-employeedirectorunderourStockOwnershipGuidelines,creditisprovidedfor sharesheldoutright(includingsharesownedthroughtrusts,theAmendedandRestatedExelixis,Inc.401(k)Plan,orthe 401(k)Plan,orbyaspouse),aswellas50%ofthenumberofvested,butunexercised,stockoptions.Nocreditisprovidedfor restrictedstockunitsuntiltheyvest.Thevaluesforallsharesdeterminedtobeheldbyournon-employeedirectorsand NamedExecutiveOfficersarebasedonthe200-dayaveragestockpriceasofthemeasurementdate.AsofFebruary15, 2018,thedatetheBoardadoptedtheStockOwnershipGuidelines,allofournon-employeedirectorsservingontheBoardas ofsuchdatehadmettherequiredownershiptargets. Board Committees and Meetings TheBoardheldfivemeetingsduring2017andallofourdirectorsattendedatleast75%ofthetotalmeetingsoftheBoard andofthecommitteesonwhichtheyserved.Theindependentdirectorsmetfourtimesinregularlyscheduledexecutive sessions. During2017,theBoardhadfourstandingcommittees:anAuditCommittee,CompensationCommittee,Nominatingand CorporateGovernanceCommitteeandResearch&DevelopmentCommittee.Committeemembershipin2017wasas follows: BoardMember Audit Committee Compensation Committee Nominating andCorporate Governance Committee Research& Development Committee CharlesCohen,Ph.D. Member Chair Member CarlB.Feldbaum,Esq. Member Member MariaC.Freire,Ph.D.* AlanM.Garber,M.D.,Ph.D. Chair Member VincentT.Marchesi,M.D.,Ph.D. Member Member SteliosPapadopoulos,Ph.D. Member Member GeorgePoste,D.V.M.,Ph.D.,FRS Member Chair GeorgeA.Scangos,Ph.D. Member** Member JulieA.Smith Member Member LanceWillsey,M.D. Member Member JackL.Wyszomierski Chair*** Member NumberofMeetingsHeldinFiscal2017 4 12 3 2 * Dr.FreirebecameadirectoronApril5,2018anddidnotserveonanycommitteeoftheBoardduring2017.Dr.Freirewasalsoappointedtothe NominatingandCorporateGovernanceCommitteeandtheResearch&DevelopmentCommitteeonApril5,2018. ** OnMay9,2017,Dr.ScangosresignedfromtheAuditCommittee. *** DesignatedbytheBoardasan“auditcommitteefinancialexpert.” AuditCommittee TheAuditCommitteeoftheBoardoverseesourcorporateaccountingandfinancialreportingprocess,ensurestheintegrity ofourfinancialstatementsandhasbeendesignatedastheQualifiedLegalComplianceCommitteewithinthemeaningof Rule205.2(k)ofTitle17,ChapterIIoftheCodeofFederalRegulations.TheAuditCommitteeperformsseveralfunctions,such asevaluatingtheperformanceof,andassessingthequalificationsof,theindependentregisteredpublicaccountingfirm; determiningwhethertoretainorterminatetheexistingindependentregisteredpublicaccountingfirmortoappointand 2018ProxyStatement 15 CORPORATEGOVERNANCE In selecting the Chairman of the Board, the Board believes it is important to select the most qualified and appropriate director to serve as Chairman, whether that individual is an outside director or a member of executive management. Currently, Brian A. Kenney, our Chief Executive Officer, serves as Chairman. The Board believes that Mr. Kenney is the most appropriate individual to serve as Chairman because of his extensive knowledge of our business and strategy, as well as his demonstrated skill and commitment to performing effectively as Chairman of the Board. Having the Chief Executive Officer serve as Chairman provides the Board with a clear understanding of issues facing GATX, which, in turn, promotes effective Board decision-making, alignment on corporate strategy, and accountability of management. Our Board is structured to promote independence whether or not its Chairman is a member of executive management. The entire Board, with the exception of Mr. Kenney, consists of independent directors, and the Audit, Compensation, and Governance Committees also are composed entirely of independent directors. The independent directors on the Board meet after each Board meeting in executive sessions that are not attended by Mr. Kenney or other members of management. In addition, under our Corporate Governance Guidelines, the independent directors serving on the Board annually designate an independent Lead Director to provide leadership to the non-management members of the Board and to work with the Chairman and Chief Executive Officer and the other Board members to provide effective and independent oversight of our management and affairs. Currently, David S. Sutherland serves as Lead Director. The Board’s independent directors have adopted the Lead Director Guidelines, which establish the powers and duties of the Lead Director,includingthefollowing: • presiding at meetings of the Board if the Chairman and ChiefExecutiveOfficerisnotpresent • regularly convening and serving as chair of executive sessionsoftheindependentdirectors • serving as principal liaison between the Chairman and ChiefExecutiveOfficerandtheindependentdirectors • advising the Chairman and Chief Executive Officer as to the quality, quantity, and timeliness of the flow of information from the Company’s management that is necessary for the independent directors to effectively andresponsiblyperformtheirduties • in consultation with the Chairman and Chief Executive Officer, establishing the meeting schedules and agendas for each Board meeting to ensure that the Board has adequate time for discussion and considerationofmatters • interviewing, along with the Chair of the Governance Committee, all director candidates and making recommendationstotheGovernanceCommittee. Board Committees Director* Boardof Directors Audit Committee Compensation Committee Governance Committee DianeM.Aigotti Š Š AnneL.Arvia Š C Š ErnstA.Häberli Š Š Š BrianA.Kenney C JamesB.Ream Š Š C RobertJ.Ritchie Š Š Š DavidS.Sutherland* L CaseyJ.Sylla Š Š Š StephenR.Wilson Š Š Š PaulG.Yovovich Š Š C Numberof2016meetings 6 6 5 5 * Inthetableabove,“C”meansChairand“L”meansLeadDirector. 6 GATXCORPORATION - 2017ProxyStatement TheBoardAffairsCommitteewillinitiallyreviewanysuspectedviolationoftheCodeinvolvinganexecutiveofficeror directorandwillreportitsfindingstotheBoard.TheBoarddoesnotenvisionthatanywaiveroftheCodewillbe granted.Shouldsuchawaiveroccur,itwillbepromptlydisclosedonourwebsite. BoardMeetingsandAnnualMeetingAttendance TheBoardmet11timesin2017.ExxonMobil’sincumbentdirectors,onaverage,attendedapproximately98percent ofBoardandcommitteemeetingsduring2017.Nodirectorattendedlessthan75percentofsuchmeetings. ExxonMobil’snon-employeedirectorsheldsixexecutivesessionsin2017. AsspecifiedinourCorporateGovernanceGuidelines,itisExxonMobil’spolicythatdirectorsshouldmakeeveryeffort toattendtheannualmeetingofshareholders.Allincumbentdirectorsattendedlastyear’smeetingexcept Mr.Kandarian,whowasfirstelectedtotheBoardeffectiveFebruary1,2018. BoardCommittees TheBoardappointscommitteestohelpcarryoutitsduties.Boardcommitteesworkonkeyissuesingreaterdetail thanwouldbepossibleatfullBoardmeetings.Onlynon-employeedirectorsmayserveontheAudit,Compensation, BoardAffairs,andPublicIssuesandContributionsCommittees.Eachcommitteehasawrittencharter.Thecharters arepostedontheCorporateGovernancesectionofourwebsiteat exxonmobil.com/governance . ThetablebelowshowsthecurrentmembershipofeachBoardcommitteeandthenumberofmeetingseach committeeheldin2017. Director Audit Compensation Board Affairs Finance PublicIssues andContributions Executive (1) S.K.Avery ✓ ✓ M.J.Boskin ✓ C ✓ A.F.Braly ✓ ✓ U.M.Burns C ✓ K.C.Frazier ✓ C ✓ S.A.Kandarian ✓ ✓ D.R.Oberhelman ✓ ✓ S.J.Palmisano C ✓ ✓ S.SReinemund ✓ ✓ ✓ W.C.Weldon ✓ ✓ D.W.Woods C C 2017Meetings 11 7 7 2 4 0 C =Chair ✓ =Member (1)Otherdirectorsserveasalternatemembersonarotationalbasis BelowisadditionalinformationabouteachBoardcommittee. BoardAffairsCommittee TheBoardAffairsCommitteeservesasExxonMobil’snominatingandcorporategovernancecommittee.Its responsibilitiesinclude: ‰ Recommendationofdirectorcandidates; ‰ Reviewofnon-employeedirectorcompensation; ‰ Reviewofothercorporategovernancepractices,includingtheCorporateGovernanceGuidelines; 2018ProxyStatement 11