2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 190 ENTERGY CORPORATION ETSY FIRST AMERICAN FINANCIAL CORPORATION FIRSTENERGY CORP CORPORATEGOVERNANCEATENTERGY ➢ legislativeandregulatory developments, ➢ cyber risk governanceandoversight, ➢ cyber incidentresponseplansandstrategies, ➢ cybersecurity drillsandexercises, ➢ assessments by third party experts, ➢ key cyber risk metrics andactivities, and ➢ major projects andinitiatives. The Audit Committee receives these reports four times a year inmeetings to whichalldirectors are invited. In addition, the Board has received briefings from outside experts on cybersecurity risks and cyber risk oversight. We have also established a governance structure under our Chief Security Officer that oversees investments in tools, resources, and processes that allows for the continued maturity of our cyber security posture. Succession Planning for the Chief Executive Officer The Personnel Committee, the Chief Executive Officer, and the Senior Vice President, Human Resources maintain an ongoing focus on executive development and succession planning to prepare the Company for future success. In addition to preparing for Chief Executive Officer succession, the succession planning process includes all other senior management positions. A comprehensive review of executive talent, including, from time to time, assessments by an independent consulting firm, determines readiness to take on additional leadership roles and identifies developmental and coaching opportunities needed to prepare our executives for greater responsibilities. The Chief Executive Officer makes a formal successionplanningpresentationto the Boardannually. Our succession planning also includes appropriate contingencies for the unexpected retirement or incapacity of the Chief Executive Officer. In 2016, our Board adopted a detailed plan to address emergency Chief Executive Officer and senior management succession in extraordinary circumstances. Our emergency CEO succession plan is intended to enable our Board and our Company to respond quickly and effectively to an unplanned and unexpected vacancy in the position of Chief Executive Officer, regardless of cause and regardless of the surrounding circumstances, so as to assure continuityof leadershipandminimizeany disruptionto our businessandoperations. Sustainability Achieving our mission of creating sustainable value for all of our stakeholders is possible only through a balancedreview of opportunitiesandrisks to our businessstrategy. On an ongoingbasis, we analyze material economic, environmental and social issues that impact our ability to create value for our stakeholders. Entergy assesses the range of potentially relevant topics for our business and the relevanceto our key stakeholders: owners, customers, employeesandcommunities. We also use stakeholders’ input to help identify the most material issues and guide our strategic imperatives. We engage in a variety of informal and formal communications with our key stakeholders and other important groups, including regulators, suppliers, nongovernmental and nonprofit organizations, and professionals in industry, government, labor and education. Feedback is obtained through engagement at many levels. We then use this stakeholder input from dialogue, surveys and other means to help prioritize the most material issues and ensure that our sustainability focus is on these most important areas. Our 2017 Integrated Report provides a single integrated source of information for all stakeholders. Integrated reporting better reflects how we measure and manage our overall performance with a combination of financial, environmental, community and employee measures. Most importantly, it reflects our central belief that the interests of all of our stakeholders are inextricably 2018ProxyStatement Š 25 Total of 06 pages in section Grossmerchandisesales 2015 2016 2017 $2.39B Up14.5% in2017vs.2016 $2.84B $3.25B 70% 70% 67% 30% 30% 33% InternationalGMS DomesticGMS Revenue 2015 $273M 2016 2017 $365M $441M Up20.9% in2017vs.2016 Our Impact Strategy Etsy’simpactstrategyfocusesonleveragingEtsy’scorebusinesstogeneratevalueforour communityandstakeholdersthroughpositiveeconomic,social,andenvironmentalefforts.We believethataligningourimpactstrategywithourcorebusinesswillleadtopositiveoutcomes.We aimtocreatemoreeconomicopportunityforsellers,greaterdiversityinourworkforceandbuild long-termresiliencebyreducingourcarbonfootprint.Webelievethatconsumersaredemanding moreofthebusinessestheysupportandthatthecompaniesbestpositionedtosucceedwillbuild win-winsolutionsthataregoodforpeople,theplanet,andprofit.Thealignmentofourmission, values,andimpactstrategyalongsideourbusinessstrategyiscriticaltogrowingsustainablyand positioningusforcontinuedsuccess. For2018,wehavesetkeyperformanceindicators(“KPIs”)inordertomeasureourimpactprogress. v Total of 02 pages in section ESG Overview Environmental, Social & Governance (“ESG”) Overview Meeting Our Environmental Commitments • OurWestAkronCampus,AkronControlCenterandWestVirginiaOperationsHeadquartersinFairmont haveearnedLeadershipinEnergyandEnvironmentalDesign(LEED)certificationfromtheU.S.Green BuildingCouncil • ThroughourpartnershipwiththeElectricPowerResearchInstitute(EPRI),we’rehelpingfuelthenextgenerationof electricvehicleswhileminimizingcostandtheimpactonelectricsystemreliability • Wearehelpingcustomersbettermanagetheirenergyuseandsavemoneythroughenergyefficiencyprograms offeredbyour 10 utilities • WehaveestablishedagoaltoreduceCO 2 emissionscompanywidebyatleast9 0 percentbelow 200 5levelsby 20 45 • WeparticipateintheCDP(formerlytheCarbonDisclosureProject),whichenablescompanies,cities,statesand regionstomeasureandmanagetheenvironmentalimpactoftheiroperations;westrivetodemonstratecontinuous improvementinourCDPscoringindisclosureprogramsforClimateChangeandWater Bringing Good Energy to Our Customers and Communities • Throughourmultibillion-dollarEnergizingtheFuturetransmissionprogram,wecontinuetoupgradeand modernizeourtransmissionsystem.From 201 4through 201 7,weinvested$4.4billioninthisprogramon gridimprovementprojects,andweplantoinvestanadditional$4. 0 billionto$4. 8 billionfrom 2018 through 2021 • Wehaveinstallednearly 1 .5millionsmartmetersacrossourfourutilityoperatingcompaniesinPennsylvaniasince 201 4,andplantodeploysmartmeterstonearlyallour 2 millionPennsylvaniacustomersbymid- 201 9 • Emergencyresponseeffortsin 201 7wererecognizedbytheEdisonElectricInstitute,markingthe 21 sttimewe’ve beenhonoredforoureffortsrestoringservicetoourcustomersorassistingotherutilitieswithservicerestoration duringemergencyevents • PennPower,Met-EdandOhioEdisonelectricutilitiesrankedamongthehighestamongutilitiesoftheirsizeand respectiveregionsinJ.D.Power’s 201 7ElectricUtilityResidentialCustomerSatisfactionSurvey • TheresourcesofFirstEnergyandtheFirstEnergyFoundation–combinedwiththeenergyandenthusiasmofour employees–benefithundredsoforganizationsandthousandsofpeopleeachyear;in 201 7,theFirstEnergy Foundationawardedsome 1 , 200 grantstotalingmorethan$6. 1 milliontocommunity-basedorganizationswherewe liveandwork • FirstEnergyemployeesprovided$ 1 . 8 milliontolocalUnitedWaychaptersandnonprofitorganizations,whilethe FirstEnergyFoundationprovidedmorethan$ 2 milliontoUnitedWaylastyear Ensuring Strong Corporate Governance Practices and Policies • Since 201 3,wehaveelectedsevennewdirectorsandcontinuedtoincreasethediversityofyourBoard • WehaveseparatedthepositionsofChairmanoftheBoardandChiefExecutiveOfficer • TheChairmanoftheBoardisindependent,asareallBoarddirectorsotherthantheCEO • IndependentdirectorsregularlyconveneatBoardandcommitteemeetingswithoutcompanymanagementpresent • RiskoversightisconductedbythefullBoardanditscommittees • Alldirectorsareelectedannually • Anadvisoryvoteisheldannuallyonnamedexecutiveofficercompensation 10 Programs Wearehelpingcustomers bettermanagetheirenergy useandsavemoneythrough energyefficiencyprograms offeredbyour 10 utilities $4. 0 B+ Plantoinvest$4. 0 billionto $4. 8 billioninourtransmission systemfrom 2018 through 2021 1 .5M Installednearly 1 .5million smartmetersacrossourfour utilitiesinPennsylvaniaand plantodeploysmartmetersto nearlyallour 2 million customersinPennsylvaniaby mid- 201 9 7 Directors Since 201 3,wehaveelected sevennewdirectorsand continuedtoincreasethe diversityofourBoard v III. Corporate Responsibility and Sustainability FirstAmericanFinancialCorporation 2018ProxyStatement|59 Werecognizeourresponsibilitytowardstheenvironmentandtothecommunitiesinwhichweoperate.Our commitmenttosociallyresponsibleandsustainablepracticesisanintegralpartofhowwedobusiness.We believethatthisisnotonlytherightwaytodobusiness,butalsothatitwillbenefitouremployees,clients, vendors,stockholders,communitiesandenvironment.Wefulfillthisresponsibilityinmanyways,afewof whicharehighlightedbelow. Environmental—TheCompanymeasures greenhousegasemissions,waterandenergy consumptionandsolidwastegenerationinan ongoingcommitmenttoreduceour environmentalimpactwhilemakingour operationsmoreefficient. Afewhighlights include: Some of Our Recent Success Stories Ourdatacenter reduced electricity consumption by 23% , reduced natural gas usageby 34% and reduced water usageby 48% Smartirrigationcontrol system, SAVES 1.2milliongallons ofwater and $50,000 inwater costsannually o A“GreenTeam”thatoverseesanddirects improvementsinenergyefficiency,water reduction,wasteeliminationandcarbon management.Sinceitsstart,theGreen Teamhasimplementedimprovement projectssuchasgreencleaning,lighting retrofits,anenergydemandresponse program,restroomfixtureupgradesanda recyclingprogram.TheGreenTeam directstheactivitiesoftheCompany’s PlanetFirstcouncil,whichworksto reduceourcarbonfootprintandimprove communicationsaboutoursustainability initiativesandcorporatestewardship. New energy-saving equipment inour corporatecampus cafeteria saves enough energy to power 13 homes a year 47 U.S.facilities reduced their combined greenhouse gas emissions o Environmentalimpactauditsconducted bythirdpartiesweengageforthat purposeprovidefeedbackaboutthe areasinwhichweexcelandthe opportunitiesforimprovement. o Renewableenergy,electricvehiclechargingstations,rideshare,recycling,on-sitecomposting, locally-sourcedfoodprogramsandwaterreductionfixturesandtechnologieshelpusto collectivelyreduceourenvironmentalimpact. Social—TheCompanystrivestobesociallyresponsiblebysupportingtheprofessionaldevelopment andwell-beingofouremployeesandcontributingto thecommunitiesinwhichweoperate. Weare proudtosupportouremployeesastheygivebacktothecommunitiesinwhichtheyliveandwork. Ouremployeescontributetheirpassion,timeandmoneytodozensoffoodbanks,charitywalks, children'scauses,veteranssupportandmoreeveryyear. Ouremployeesmakeadifferenceinour corecausesthroughavarietyofactivitiesnationallyandlocally,including: o Women’sAdvocacy—Wesupportorganizationsandinitiativesthataddresswomen’shealth, familyandwelfareissues. Ouremployeesacrossthecountryhaveparticipatedformanyyearsinbreastcancer walks—raisingmoneyandawareness.Wehavesupportedtheseeffortswithdonationsto eachteam,alongwitht-shirtsandbanners. Total of 02 pages in section