2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 220 EXXON MOBIL CORPORATION RiskOversight RiskoversightistheresponsibilityofthefullBoardofDirectors.TheBoardthroughouttheyearparticipatesinreviews withmanagementontheCompany’sbusiness,includingidentifiedriskfactors.Asawhole,theBoardreviewsinclude litigationandotherlegalmatters;politicalcontributions,budget,andpolicy;lobbyingcosts;developmentsinclimate scienceandpolicy;the EnergyOutlook ,whichprojectsworldsupplyanddemandto2040;stewardshipofbusiness performance;andlong-termstrategicplans. TheBoardand/orthePublicIssuesandContributionsCommitteevisitanExxonMobiloperationeachyear.These visitsallowthedirectorstobetterunderstandlocalissuesandtodiscusssafety,environmentalperformance, technology,products,industryandcorporatestandards,andcommunityinvolvementassociatedwiththeCompany’s business. Inaddition,existingcommitteeshelptheBoardcarryoutitsresponsibilityforriskoversightbyfocusingonspecifickey areasofrisk: ‰ TheAuditCommitteeoverseesrisksassociatedwithfinancialandaccountingmatters,includingcompliancewith legalandregulatoryrequirements,andtheCompany’sfinancialreportingandinternalcontrolsystems; ‰ TheBoardAffairsCommitteeoverseesrisksassociatedwithcorporategovernance,includingboardstructure andsuccessionplanning; ‰ TheCompensationCommitteehelpsensurethattheCompany’scompensationpoliciesandpracticesencourage long-termfocus,supporttheretentionanddevelopmentofexecutivetalent,anddiscourageexcessiverisk taking; ‰ ThePublicIssuesandContributionsCommitteeoverseesoperationalriskssuchasthoserelatingtoemployee andcommunitysafety,health,environmental,andsecuritymatters;and ‰ TheFinanceCommitteeoverseesriskassociatedwithfinancialinstruments,financialpoliciesandstrategies,and capitalstructure. TheBoardreceivesregularupdatesfromthecommittees,andbelievesthisstructureisbestforoverseeingrisk. BoardLeadershipStructure TheBoardbelievesthatthedecisionastowhoshouldserveasChairmanand/orCEOistheproperresponsibilityof theBoard.TheBoardretainsauthoritytoamendthebylawstoseparatethepositionsofChairmanandCEOatany timeandwillcarefullyconsidertheprosandconsofsuchseparationorcombination. Atthepresenttime,theBoard believestheinterestsofallshareholdersarebestservedthroughaleadershipmodelwithacombinedChairman/ CEOpositionandanindependentPresidingDirector. ThecurrentCEOpossessesanin-depthknowledgeoftheCompany;itsintegrated,multinationaloperations;the evolvingenergyindustrysupplyanddemand;andthearrayofchallengestobefaced.Thisknowledgewasgained throughmorethan25yearsofsuccessfulexperienceinprogressivelymoreseniorpositions,includingdomesticand internationalresponsibilities. TheBoardbelievesthattheseexperiencesandotherinsightsputtheCEOinthebestpositiontoprovidebroad leadershipfortheBoardasitconsidersstrategyandasitexercisesitsfiduciaryresponsibilitiestoshareholders. Further,theBoardhasdemonstrateditscommitmentandabilitytoprovideindependentoversightofmanagement. TheBoardiscomprisedentirelyofindependentdirectorsexcepttheCEO,and100percentoftheAudit, Compensation,BoardAffairs,andPublicIssuesandContributionsCommitteemembersareindependent.Each independentdirectorhasaccesstotheCEOandotherCompanyexecutivesonrequest,maycallmeetingsofthe independentdirectors,andmayrequestagendatopicstobeaddedordealtwithinmoredetailatmeetingsofthefull BoardoranappropriateBoardcommittee. 2018ProxyStatement 5 FORTIVE CORPORATION CorporateGovernance RiskOversight TheBoard’sroleinriskoversightattheCompanyisconsistentwiththeCompany’sleadershipstructure,withmanagement havingday-to-dayresponsibilityforassessingandmanagingtheCompany’sriskexposureandtheBoardandits committeesoverseeingthoseefforts,withparticularemphasisonthemostsignificantrisksfacingtheCompany. IndeterminingtoseparatethepositionoftheCEOandtheChairman,andindeterminingtheappointmentoftheChairman oftheBoardandtheChairsofthecommitteesoftheBoard,theBoardandtheNominatingandGovernanceCommittee consideredtheimplementationofagovernancestructureandappointmentofchairpersonswithappropriateandrelevant riskmanagementexperiencethatwouldenableFortivetoefficientlyandeffectivelyassessandoverseeitsrisks. RiskOversightbytheBoardofDirectors TheBoardoverseestheCompany’sriskmanagementprocessesdirectlyandthroughitscommittees.Ingeneral,theBoard overseesthemanagementofrisksinherentintheoperationoftheCompany’sbusinesses,theimplementationofits strategicplan,itsacquisitionandcapitalallocationprogram,itscapitalstructureandliquidityanditsorganizational structure,andalsooverseestheCompany’sriskassessmentandriskmanagementpolicies. RiskOversightbytheCommittees AUDITCOMMITTEE COMPENSATION COMMITTEE NOMINATINGAND GOVERNANCE COMMITTEE FINANCE COMMITTEE TheAuditCommittee overseesrisksrelatedto financialcontrols,legaland compliancerisksandmajor financial,privacy,security andbusinesscontinuity risks.TheAuditCommittee alsoassiststheBoardin overseeingtheCompany’s riskassessmentandrisk managementpolicies. Finally,theAuditCommittee overseesourcybersecurity riskmanagementandrisk controls. TheCompensation Committeeoverseesrisks associatedwiththe Company’scompensation policiesandpractices. TheNominatingand GovernanceCommittee overseesrisksassociated withcorporate governanceandboard management. TheFinanceCommittee overseesrisksassociated withtheexecutionofthe Company’sacquisition, investmentand divestiturestrategies. EachcommitteereportstothefullBoardonaregularbasis,includingasappropriatewithrespecttothecommittee’srisk oversightactivities.Inaddition,sinceriskissuesoftenoverlap,committeesfromtimetotimerequestthatthefullBoard discussparticularrisks. Cybersecurity TheBoardhasdelegatedtotheAuditCommitteetheresponsibilityofexercisingoversightwithrespecttotheCompany’s cybersecurityriskmanagementandriskcontrols.Consistentwithsuchdelegation,ourChiefInformationOfficerprovidesa reporttotheAuditCommitteeonquarterlybasis,andtotheBoardonanannualbasis,regardingtheCompany’s cybersecurityprogram,includingtheCompany’smonitoring,auditing,implementationandcommunicationprocesses, controls,andprocedures. 20 2018ProxyStatement FORTIVECORPORATION FREEPORT-MCMORAN, INC. Independent 86% Non-Independent 14% Independence 6of7 Independent 35-50 14% 51-65 29% Over65 57% Age AverageAge:63.7 AverageBoardTenure:8.5Yrs Tenure 3 3 LessThan6Years 6-12Years 1 MoreThan12 Years Board Leadership Structure Theboardbelievesthatthedecisiontocombineorseparatethepositionsofchairmanandchiefexecutiveofficeris highlydependentonthestrengthsandpersonalitiesoftheindividualsinvolved.Inaddition,thedecisionmusttake intoaccountcurrentbusinessconditionsandtheenvironmentinwhichthecompanyoperates.Whileourby-laws andcorporategovernanceguidelinesdonotrequireourchairmanandchiefexecutiveofficerpositionstobe separate,thesepositionshavebeenseparateatourcompanysince2003,andtheboardbelievesthathaving separatepositionscontinuestobetheappropriateleadershipstructureforthecompanyatthistime.Mr.Adkerson hasservedasChiefExecutiveOfficersinceDecember2003andasPresidentsinceJanuary2008.InJanuary2016, theboardappointedourformerleadindependentdirector,GeraldJ.Ford,asnon-executivechairmanoftheboard, withresponsibilitiesthatinclude: • presidingatmeetingsoftheboard,includingallexecutivesessionsoftheindependentdirectors; • overseeingthemanagement,developmentandfunctioningoftheboard;and • inconsultationwiththechiefexecutiveofficer,planningandorganizingthescheduleandestablishingthe agendasforboardmeetings. Theboardbelievesthisstructureprovidesaneffectivebalancebetweenstrongcompanyleadershipand appropriatesafeguardsandoversightbyindependentdirectors. Board’s Role in Oversight of Risk Management Theboardtakesanactiveroleinriskoversight.Theboardasawholeisresponsibleforriskoversightatthe company,withreviewsofcertainareasbeingconductedbytherelevantboardcommitteesthatregularlyreportto thefullboard.Initsriskoversightrole,theboardreviews,evaluatesanddiscusseswithappropriatemembersof managementwhethertheriskmanagementprocessesdesignedandimplementedbymanagementareadequatein identifying,assessing,managingandmitigatingmaterialrisksfacingthecompany,includingfinancial,international, operational,andenvironmentalrisks. Theboardbelievesthatfullandopencommunicationbetweenseniormanagementandtheboardisessentialto effectiveriskoversight.Ournon-executivechairmanregularlymeetsanddiscusseswithourchiefexecutiveofficera varietyofmatters,includingbusinessstrategies,opportunities,keychallengesandrisksfacingthecompany,aswell asmanagement’sriskmitigationstrategies.Seniormanagementattendsallregularly-scheduledboardmeetings wheretheyconductpresentationsonvariousstrategicmattersinvolvingouroperationsandareavailableto addressanyquestionsorconcernsraisedbytheboardonriskmanagement-relatedoranyothermatters.The boardoverseesthestrategicdirectionofthecompany,andindoingsoconsidersthepotentialrewardsandrisksof ourbusinessopportunitiesandchallenges,andmonitorsthedevelopmentandmanagementofrisksthatimpact ourstrategicgoals. Incarryingoutitsriskoversightresponsibilities,theboardhastakenamoreactiveroleoverthepasttwoyearsin overseeingthecompany’sactionstoenhanceourfinancialpositionandrefocusthebusinessstrategyonour leadingpositionintheglobalcopperindustry.Toensureinformedandeffectiveoversightduringaperiodofweak marketconditions,theboardinstitutedfrequentconferencecallswithseniormanagementtoreceiveupdates Freeport-McMoRan ⎪ 2018ProxyStatement 9 Total of 02 pages in section GANNETT CO., INC. PROPOSAL 1—ELECTION OF DIRECTORS BoardMeetings Board Meetings TheBoardheldsixmeetingsin2017.Eachdirectorattendedatleast75%ofthetotalnumberofmeetingsoftheBoardanditscommitteeson whichheorsheservedin2017.ItistheCompany’spolicythatalldirectorsattendtheAnnualMeeting,andeachdirectordidsoin2017 exceptforMr.Prophet,whowasunabletoattendduetoapersonalmatter.ConsistentwithNYSErules,theCompany’sPrinciplesof CorporateGovernancecallfortheCompany’snon-managementdirectorstomeetinregularlyscheduledexecutivesessionswithout managementastheydeemappropriate.TheCompany’snon-managementdirectorsheldfiveexecutivesessionsin2017,andwillmeetin executivesessionsasappropriatethroughout2018. Board Leadership Structure OurBoardhasdeterminedthathavinganindependentdirectorserveastheChairmanoftheBoardiscurrentlythebestleadershipstructure fortheCompany.SeparatingthepositionsofChairmanandCEOallowstheCEOtofocusonexecutingtheCompany’sstrategicplanand managingtheCompany’soperationsandperformanceandpermitsimprovedcommunicationsandrelationsbetweentheBoard,theCEO andotherseniorleadersoftheCompany.OurBoardregularlyreviewstheCompany’sBoardleadershipstructure,howthestructureis functioningandwhetherthestructurecontinuestobeinthebestinterestofourstockholders. ThedutiesoftheChairmanoftheBoardinclude: • presidingoverallmeetingsoftheBoardandallexecutivesessionsofnon-managementdirectors; • servingasliaisononBoard-wideissuesbetweentheCEOandthenon-managementdirectors,althoughCompanypolicyalsoprovides thatalldirectorsshallhavedirectandcompleteaccesstotheCEOandmanagementatanytimeastheydeemnecessaryor appropriate,andviceversa; • inconsultationwiththeCEO,reviewingandapprovingBoardmeetingagendasandmaterials; • inconsultationwiththeCEO,reviewingandapprovingmeetingschedulestoassurethereissufficienttimefordiscussionofallagenda items; • callingmeetingsofthenon-managementdirectors,ifdesired;and • beingavailablewhenappropriateforconsultationanddirectcommunicationifrequestedbystockholders. The Board’s Role in Risk Oversight TheBoardbelievesthatevaluatinghowseniorleadershipidentifies,assesses,managesandmonitorsthevariousrisksconfrontingthe Companyisoneofitsmostimportantareasofoversight.Incarryingoutthiscriticalresponsibility,theBoardoverseestheCompany’srisk managementfunctionthroughregulardiscussionswithseniorleadership.Inaddition,theCompanyhasanenterpriseriskmanagement programtoenhancetheBoard’sandmanagement’sabilitytoidentify,assess,manageandrespondtostrategic,market,operationaland compliancerisksfacingtheCompany. WhiletheBoardhasprimaryresponsibilityforoverseeingtheCompany’sriskmanagementfunction,eachcommitteeoftheBoardalso considersriskwithinitsareaofresponsibility: • theAuditCommitteeisprimarilyresponsibleforreviewingrisksrelatingtoaccountingandfinancialcontrols,aswellaslegal complianceandcybersecurity; • theExecutiveCompensationCommitteereviewsrisksrelatingtocompensationmatters; • theNominatingandPublicResponsibilityCommitteereviewsrisksassociatedwiththeCompany’shumanresourcepoliciesand practices;and • theTransformationCommitteereviewsrisksrelatedtotheCompany’sstrategicinitiatives. AtregularmeetingsofthefullBoard,thecommitteechairsreportonsignificantrisksrelatingtotheabovemattersandmanagement’sresponse tothoserisks.WhiletheBoardanditscommitteesoverseetheCompany’sriskmanagementfunction,managementisresponsiblefor implementingday-to-dayriskmanagementprocessesandreportingtotheBoardanditscommitteesonsuchmatters. Withrespecttorisksrelatedtocompensationmatters,theExecutiveCompensationCommitteehasreviewedtheCompany’sexecutive compensationprogramandhasconcludedthattheprogramdoesnotcreaterisksthatarereasonablylikelytohaveamaterialadverseeffect ontheCompany.TheExecutiveCompensationCommitteebelievesthatthedesignoftheCompany’sannualandlong-termincentives providesaneffectiveandappropriatemixofincentivestohelpensuretheCompany’sperformanceisfocusedonlong-termprofitabilityand stockholdervaluecreationanddoesnotencourageunnecessaryorexcessiverisktakingattheexpenseoflong-termresults. 14 2018ProxyStatement GANNETTCO.,INC.