2018 Guide to Effective Proxies

2.11 Board committee grids | 181 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES PRUDENTIAL FINANCIAL, INC. PSEG REPUBLIC SERVICES RR DONNELLEY CorporateGovernance Committees of the Board of Directors TheBoardhasestablishedvariouscommitteestoassistindischargingitsduties,including:Audit,Compensation,Corporate GovernanceandBusinessEthics,Executive,Finance,InvestmentandRisk.Theprimaryresponsibilitiesofeachofthe committeesaresetforthbelow,togetherwiththeircurrentmembershipandthenumberofmeetingsheldin2017.Committee charterscanbefoundonourwebsiteatwww.prudential.com/governance.EachmemberoftheAudit,Compensation,and CorporateGovernanceandBusinessEthicsCommitteeshasbeendeterminedbytheBoardtobeindependentforpurposesof theNYSECorporateGovernancelistingstandards.Inaddition,directorswhoserveontheAuditCommitteeandthe CompensationCommitteemeetadditional,heightenedindependenceandqualificationcriteriaapplicabletodirectorsservingon thesecommitteesundertheNYSElistingstandards. Committees Membersin2017 Description Audit Committee Meetingsin2017:10 DouglasScovanner(Chair) Martina-HundMejean GeorgePaz TheAuditCommitteeprovidesoversightoftheCompany’saccountingand financialreportinganddisclosureprocesses,theadequacyofthesystemsof disclosureandinternalcontrolestablishedbymanagement,andtheauditofthe Company’sfinancialstatements.TheAuditCommitteeoverseesinsurancerisk andoperationalrisks,risksrelatedtofinancialcontrols,andlegal,regulatoryand compliancematters,andoverseestheoverallriskmanagementgovernance structureandriskmanagementfunction. Amongotherthings,theAuditCommittee: (1)appointstheindependentauditorandevaluatesitsindependenceand performance; (2)reviewstheauditplansforandresultsoftheindependentauditandinternal audits;and (3)reviewsreportsrelatedtoprocessesestablishedbymanagementtoprovide compliancewithlegalandregulatoryrequirements. TheBoardhasdeterminedthatallofourAuditCommitteemembersare financiallyliterateandareauditcommitteefinancialexpertsasdefinedbythe SEC. Compensation Committee Meetingsin2017:7 KarlJ.Krapek(Chair) ThomasJ.Baltimore MichaelA.Todman TheCompensationCommitteeoverseestheCompany’scompensationand benefitspoliciesandprograms.Formoreinformationontheresponsibilitiesand activitiesoftheCompensationCommittee,includingtheCommittee’sprocesses fordeterminingexecutivecompensation,seetheCD&A. Corporate Governance & Business Ethics Committee Meetingsin2017:7 GilbertF.Casellas(Chair) PeterR.Lighte SandraPianalto TheCorporateGovernanceandBusinessEthicsCommitteeoverseestheBoard’s corporategovernanceproceduresandpractices,includingtherecommendations ofindividualsfortheBoard,makingrecommendationstotheBoardregarding directorcompensationandoverseeingtheCompany’sethicsandconflictof interestpolicies,itspoliticalcontributionsandlobbyingexpensespolicy,andits strategyandreputationregardingenvironmentalstewardshipandsustainability responsibilitythroughouttheCompany’sglobalbusinesses. Executive Committee Meetingsin2017:0 ThomasJ.Baltimore(Chair) GilbertF.Casellas KarlJ.Krapek ChristineA.Poon DouglasA.Scovanner JohnR.Strangfeld TheExecutiveCommitteeisauthorizedtoexercisethecorporatepowersofthe CompanybetweenmeetingsoftheBoard,exceptforthosepowersreservedtothe BoardbyourBy-lawsorotherwise. Finance Committee Meetingsin2017:6 ChristineA.Poon(Chair) SandraPianalto MichaelA.Todman TheFinanceCommitteeoversees,takesactions,andapprovespolicieswith respecttocapital,liquidity,borrowinglevels,reserves,marketriskandmajor capitalexpenditures. Investment Committee Meetingsin2017:4 ThomasJ.Baltimore(Chair) PeterR.Lighte ChristineA.Poon TheInvestmentCommitteeoverseesandtakesactionswithrespecttothe acquisition,managementanddispositionofinvestedassets;reviewsthe investmentperformanceofthepensionplanandfundedemployeebenefitplans; andreviewsinvestmentrisksandexposures,aswellastheinvestment performanceofproductsandaccountsmanagedonbehalfofthirdparties. Risk Committee Meetingsin2017:6 ThomasJ.Baltimore(Chair) GilbertF.Casellas MarkB.Grier KarlJ.Krapek ChristineA.Poon DouglasA.Scovanner TheRiskCommitteeoverseesthegovernanceofsignificantrisksthroughoutthe enterprise,includingbycoordinatingtheriskoversightfunctionsofeachBoard committeeandseeingthatmattersareappropriatelyelevatedtotheBoard. InadditiontotheaboveCommitteemeetings,theBoardheldninemeetingsin2017. 24 | NoticeofAnnualMeetingofShareholdersand2018ProxyStatement CorporateGovernance 14 PSEG2018ProxyStatement 2017 Meetingsand ExecutiveSessions Board/Committee Meetings ExecutiveSessions PSEGBoard 8 (1) 7 PSE&GBoard 8 (2) 7 Audit 8 6 CorporateGovernance 7 (3) 5 Executive 0 0 Finance 4 0 FossilGenerationOperationsOversight 4 (4) 4 NuclearGenerationOperationsOversight 4 (5) 4 Organization andCompensation 6 (6) 6 (1) Includes oneall-dayBusinessStrategySessionandone specialmeeting (2) Includes two specialmeetings (3) Incudes three specialmeetings (4) Onemeeting heldata generating station (5) Onemeeting heldat the siteofnucleargenerating stationswe operate (6) Includes one specialmeeting Attendance Under ourPrinciples, each director is expected to attend allBoardmeetings and allmeetings of committees ofwhich such director is amember, aswell as theAnnualMeeting ofStockholders.Meetingmaterials are provided toBoard andCommittee members in advance of eachmeeting, andmembers are expected to review suchmaterials prior to eachmeeting.During 2017, each director attended at least 75%of the aggregate number ofmeetings of theBoard and the committees onwhich he or she served.All of the directors attended the 2017AnnualMeeting ofStockholders, exceptMessrs.Gamper,Hickey andRenyi. Committee Membership Current committee assignments are presented in the following table.From time to time,Committee assignments and chairs are changed to best utilize the talents of our directors.We believe that rotating committeememberships strengthen our directors’ understanding of the challengeswe facewhile bringing greater diversity of perspective and experience to thework of each committee.The last such changes occurred inApril 2017.Ongoing committee assignments for all directors are expected to be made at the organizationalmeeting of theBoard following the 2018AnnualMeeting ofStockholders. Audit Corporate Governance Executive Finance Fossil Generation Operations Oversight Nuclear Generation Operations Oversight Organization& Compensation WillieA.Deese ݱ ݱ ݱ AlbertR.Gamper, Jr. ݱ ݱ ݱ ݱ WilliamV.Hickey ݱ ݱ ݱ ݱ Ralph Izzo Chair ShirleyAnn Jackson Chair ݱ ݱ ݱ ݱ DavidLilley ݱ ݱ Chair BarryH.Ostrowsky ݱ ݱ ThomasA.Renyi LeadDirector ݱ ݱ ݱ HakCheol (H.C.)Shin ݱ ݱ Chair Chair Richard J.Swift ݱ ݱ ݱ ݱ ݱ SusanTomasky Chair ݱ AlfredW.Zollar Chair ݱ ݱ Company Information THE BOARD’S COMMITTEES AND THEIR FUNCTIONS TheBoardhasthreestandingcommittees.Themembersofthosecommitteesandthecommittees’responsibilitiesaredescribedbelow. EachcommitteeoperatesunderawrittencharterthatisreviewedannuallyandispostedontheCompany’swebsiteatthefollowing address:www.rrd.com.Aprintcopyofeachcharterisavailableuponrequest. Thetablebelowreflectsthemembershipofthecommitteesandtheirprimaryresponsibilities. AUDITCOMMITTEE NumberofMeetings in2017:9 Members PrimaryResponsibilities Independence TimothyR.McLevish(Chair) IreneM.Esteves JeffreyG.Katz JohnC.Pope ‰ AssiststheBoardinitsoversightof: (1)theintegrityoftheCompany’sfinancial statementsandtheCompany’s accountingandfinancialreporting processes,internalcontrolsandfinancial statementaudits, (2)theCompany’scompliancewithlegaland regulatoryrequirements, (3)thequalificationsandindependenceof theCompany’sindependentregistered publicaccountingfirm,and (4)theperformanceoftheCompany’s internalauditdepartmentandthe independentregisteredpublicaccounting firm. ‰ Thecommitteeselects,determinesfeesfor, evaluatesand,whenappropriate,replaces theCompany’sindependentregistered publicaccountingfirm.Pursuanttoits charter,theAuditCommitteeisauthorized toobtainadviceandassistancefrominternal orexternallegal,accountingorother advisorsandtoretainthird-party consultants,andhastheauthoritytoengage independentauditorsforspecialaudits, reviewsandotherprocedures. Asrequiredbyitscharter,eachmemberofthe AuditCommitteeisindependentoftheCompany, assuchtermisdefinedforpurposesoftheNYSE listingrulesandthefederalsecuritieslaws.The BoardhasdeterminedthateachofMs.Esteves andMessrs.Katz,McLevishandPopeisan“audit committeefinancialexpert”assuchtermis definedunderthefederalsecuritieslawsandthe NYSElistingrules. CompanyInformationAUDITCOMMITTEENumberofMeetingsin2016:15MembersPrimaryResponsibilitiesIndependence 10 RRD 2018NoticeofMeetingandProxyStatement Total of 02 pages in section Board Meetings and Committees Meeting Participation. TheBoardheldfive meetings andtook two actionsby unanimouswritten consent during2017. Eachdirector attended at least 75% of the total number of Boardmeetings andthe total number of meetings of allBoardcommittees on whichhe or she served andheldduringhisor her term of service. The non-employeedirectors met regularlyinexecutivesessionsduring2017. Committee Composition. TheBoardhas four standingcommittees: the AuditCommittee, the Management DevelopmentandCompensationCommittee, the NominatingandCorporate Governance Committee andthe SustainabilityandCorporate ResponsibilityCommittee. Eachcommittee operates under a written charter adoptedby the Boardandreviewsits charter at least annually.Messrs. KadreandSlagerare not members of any of our standingcommittees. Additionalinformation regardingeachof the current standingcommittees and their compositionas of the mailingdate of this proxy statement appearsinthe tablebelow. Audit Committee Compensation Committee Governance Committee Sustainability andCorporate Responsibility Committee TomagoCollins ✓ Chair WilliamJ. Flynn ✓ ✓ Thomas W. Handley Chair ✓ Jennifer M. Kirk ✓ ✓ MichaelLarson ✓ Chair Kim S. Pegula ✓ ✓ RamonA. Rodriguez Chair ✓ JohnM. Trani ✓ ✓ SandraM. Volpe ✓ ✓ AuditCommittee FinancialExpert KeyResponsibilities Assists theBoard inmonitoring: The integrityof our financial statements; Our compliancewith legal and regulatory requirements; and The independence and performance of our internal and external auditors on an annual basis. Has the ultimate authority and responsibility to select, evaluate, terminate and replace our independent registeredpublic accounting firm; and AuditCommitteeFinancialExpert. OurBoardhasdetermined thatMr.Rodriguez qualifies as an “audit committee financialexpert”within themeaning of Item 407 ofRegulationS-K under theSecuritiesAct, and that othermembersof theAuditCommittee also satisfy the definition of “audit committee financial expert”. TheCommittee held fourmeetings, took one action by unanimouswritten consent, andmet regularly in executive sessions during 2017 AuditCommittee Members RamonA.Rodriguez*,Chair TomagoCollins William J.Flynn JenniferM.Kirk *AuditCommittee FinancialExpert Approves theAuditCommittee report on page 34. AuditCommitteeMembersRamonA.Rodriguez*,ChairTomagoCollinsWilliamJ.FlynnJenniferM.Kirk*AuditCommitteeFinancialExpertKeyResponsibilitiesAssiststheBoardinmonitoring:Theintegrityofourfinancialstatements;Ourcompliancewithlegalandregulatoryrequirements;andTheindependenceandperformanceofourinternalandexternalauditorsonanannualbasis.Hastheultimateauthorityandresponsibilitytoselect,evaluate,terminateandreplaceourindependentregisteredpublicaccountingfirm;andApprovestheAudit Committeereportonpage.AuditCommitteeFinancialExpert.OurBoardhasdeterminedthatMr.Rodriguezqualifiesasan“auditcommitteefinancialexpert”withinthemeaningofItem407ofRegulationS-KundertheSecuritiesAct,andthatothermembersoftheAuditCommitteealsosatisfythedefinitionof“auditcommitteefinancialexpert”TheCommitteeheldfourmeetings,tookoneactionbyunanimouswrittenconsent,andmetregularlyinexecutivesessionsduring2017 RepublicServices,Inc.2018ProxyStatement 29