2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 222 GOODYEAR TIRE & RUBBER COMPANY CORPORATEGOVERNANCEPRINCIPLESANDBOARDMATTERS Board Leadership Structure AdditionaldutiesofourindependentLeadDirectoraresetforthinAnnexIItoourCorporateGovernanceGuidelines. Inadditiontotheclearly-delineatedandcomprehensiveoversightresponsibilitiesofourLeadDirector,theindependent directorshaveampleopportunityto,andregularlydo,assesstheperformanceoftheCEOandprovidemeaningfuldirectionto him.TheBoardhasstrong,independentoversightofmanagement: • 85%oftheCompany’sdirectorsareindependent; • AllmembersoftheAudit,CompensationandGovernanceCommitteesareindependentdirectors; • CommitteeChairs,allofwhomareindependent,approveagendasfortheircommitteemeetings; • BoardandCommitteeagendasarepreparedbasedondiscussionswithalldirectorsandrecommendationsfrom management,andalldirectorsareencouragedtorequestagendaitems,additionalinformationand/ormodificationsto schedulesastheydeemappropriate;and • TheBoardholdsexecutivesessionsoftheindependentdirectorsateachBoardmeetingthatareledbytheLeadDirector. TheBoard’spolicyisthat,especiallyinourchangingandchallengingenvironment,itmustretaintheflexibilitytodeterminethe mosteffectiveBoardleadershipstructureatanyparticularpointintime.Asaresult,theBoardhastheresponsibilityto establishourleadershipstructure,includinginconnectionwithanyCEOsuccession.SomeofthefactorsthattheBoardhas considered,andmayconsiderinthefuture,incombiningorseparatingtheChairmanandCEOroles,include: • TherespectiveresponsibilitiesoftheLeadDirector,theChairmanoftheBoardandtheCEO; • TheeffectivenessofthecurrentBoardleadershipstructure,includingtheBoard’sassessmentoftheperformanceofthe ChairmanandCEOandtheLeadDirectorandwhethertheBoardismaintainingstrong,independentoversightof management; • ShareholderviewsonourBoardleadershipstructure; • TheCompany’soperatingandfinancialperformance,includingthepotentialimpactofparticularleadershipstructuresonthe Company’sperformance; • Theabilitytoattractorretainwell-qualifiedcandidatesforthepositionsofCEO,ChairmanoftheBoardandLeadDirector; • PracticesatothersimilarlysituatedU.S.publiccompanies;and • Legislativeandregulatorydevelopments. Board’s Role in Risk Oversight ManagementcontinuallymonitorsthematerialrisksfacingtheCompany,includingcompetitive,financial(accounting, liquidityandtax),legal,regulatory,operationalandstrategicrisks.TheBoardasawholehasresponsibilityforoversightof management’sidentificationandmanagementof,andplanningfor,thoserisks.Reviewsofcertainareasareconductedby relevantBoardCommitteesthatreporttheirdeliberationstotheBoard. 3 Total of 02 pages in section HARSCO CORPORATION Finally,theBoardhasestablishedthreestandingcommitteestoassistwithitsoversightresponsibilities:(1)theAudit Committee;(2)theManagementDevelopmentandCompensationCommittee(the“MD&CCommittee”);and(3)the NominatingandCorporateGovernanceCommittee(the“NominatingCommittee”).EachoftheAuditCommittee,MD&C CommitteeandNominatingCommitteeiscomprisedentirelyofindependentDirectors. Board Role in Risk Oversight Managementisresponsibleforidentifying,evaluating,managingandmitigatingtheCompany’sexposuretorisk.Itis theBoard’sresponsibilitytooverseetheCompany’sriskmanagementprocessandtoensurethatmanagementistaking appropriateactiontoidentify,manageandmitigatekeyrisks.TheBoardadministersitsriskoversightresponsibilitiesboth throughactivereviewanddiscussionofkeyrisksfacingtheCompanyandbydelegatingcertainriskoversight responsibilitiestocommitteesforfurtherconsiderationandevaluation.ThefollowingtablesummarizestheroleoftheBoard andeachofitscommitteesinoverseeingrisk: GoverningBody RoleinRiskOversight Board • RegularlyreviewsthestrategicplansoftheCompanyandeachofitsbusiness divisions,includingrisksassociatedtherewith • Reviewsenterprise-levelandotherkeyrisksidentifiedthroughtheCompany’s enterpriseriskmanagement(“ERM”)processaswellasmanagement’splans tomitigatethoserisks • ConductsannualsuccessionplanreviewstoensuretheCompanymaintains appropriatesuccessionplansforitsseniorofficers AuditCommittee • Overseescompliancewithlegalandregulatoryrequirementsandthe Company’sCodeofConductandDefalcations • Overseesfinancialrisks,includingrisksrelatingtokeyaccountingpolicies • OverseestheCompany’sERMframeworkandtheprocessforidentifying, assessingandmonitoringkeybusinessrisks • ReviewsinternalcontrolswiththePrincipalFinancialOfficer,Principal AccountingOfficerandinternalauditors • Meetsregularlywithrepresentativesoftheindependentauditors MD&CCommittee • OverseesrisksrelatingtotheCompany’scompensationprograms* • OverseesrisksrelatingtotheCompany’sequityprograms* • Overseestheprocessforconductingannualriskassessmentsofthe Company’scompensationpoliciesandpractices* • Employsanindependentcompensationconsultanttoassistinreviewing compensationprograms,includingthepotentialriskscreatedbytheprograms* • OverseestheCompany’sexecutivemanagementsuccessionplanningprogram NominatingCommittee • OverseesrisksrelatingtotheCompany’sgovernancestructureandother corporategovernancemattersandprocesses • Evaluatesrelatedpersontransactions • Overseescompliancewithkeycorporategovernancedocuments,includingthe CorporateGovernancePrinciplesandtheInsiderTradingPolicy • OverseesthedelegationofrisksidentifiedintheERMframeworktotheBoard anditscommittees *FurtherdetailregardingtheMD&CCommittee’sreviewofcompensation-relatedriskscanbefoundunderthe heading“CompensationPoliciesandPracticesasTheyRelatetoRiskManagement”ofthisProxyStatement. 10 INTEL CORPORATION THEBOARD’SROLEINRISKOVERSIGHTATINTEL OneoftheBoard’simportantfunctionsisoversightofriskmanagementatIntel.Riskisinherentinbusiness,andtheBoard’s oversight,assessment,anddecisionsregardingrisksoccurinthecontextofandinconjunctionwiththeotheractivitiesofthe Boardanditscommittees. DefiningRisk. TheBoardandmanagementconsider“risk”tobethepossibilitythatanundesiredeventcouldoccurthatmight adverselyaffecttheachievementofourobjectives.Risksvaryinmanyways,includingtheabilityofthecompanytoanticipate andunderstandtherisk,thetypesofadverseimpactsthatcouldresultiftheundesiredeventoccurs,thelikelihoodthatan undesiredeventandaparticularadverseimpactwouldoccur,andtheabilityofthecompanytocontroltheriskandthepotential adverseimpacts.ExamplesofthetypesofrisksfacedbyIntelinclude: • macro-economicrisks,suchasinflation,deflation,reductionsineconomicgrowth,orrecession; • politicalrisks,suchasrestrictionsonaccesstomarkets,confiscatorytaxation,orexpropriationofassets; • eventrisks,suchasnaturaldisastersorcybersecurityincidents;and • business-specificrisksrelatedtostrategyandcompetition,productdemand,globaloperations,manufacturing,cybersecurity andprivacy,intellectualproperty,litigationandregulatorycompliance,corporateresponsibilityandsustainability,and corporategovernancerisks. Notallriskscanbedealtwithinthesameway.Somerisksmaybereadilyperceivedandcontrollable,whileotherrisksare unknown;someriskscanbeavoidedormitigatedbyparticularbehavior,andsomerisksareunavoidableasapracticalmatter.In somecases,adecisionmaybemadethatahigherdegreeofriskmaybeacceptablebecauseofagreaterperceivedpotentialfor reward.Intelseekstoalignitsvoluntaryrisk-takingwithcompanystrategy,andIntelunderstandsthatitsprojectsandprocesses mayenhancethecompany’sbusinessinterestsbyencouraginginnovationandappropriatelevelsofrisk-taking. RISKASSESSMENTRESPONSIBILITIESANDPROCESSES THEBOARD The fullBoardhasprimary responsibility for riskoversight. TheBoardexecutes itsoversightduties through: • • managementon: Assigning specificoversightduties to theBoard committees Periodicbriefingand informational sessionsby • The typesof risks the company faces • mitigation,and control Enterprise riskmanagement: risk identification, Formostenterprise riskmanagement issues, suchas cybersecurity risks, theBoard receives timely reports from managementor theappropriateBoardcommittee regarding its reviewof issues. In somecases, suchas risks regarding new technologyandproductacceptance, riskoversight is addressedaspartof the fullBoard’s regularoversightof strategicplanning. MANAGEMENT Management isprimarily responsible for: • Identifying riskand risk controls related to significantbusinessactivities • Mapping the risks to company strategy • Developingprogramsand recommendations to determine the sufficiencyof risk identification, the balanceofpotential risk topotential reward,and the appropriatemanner inwhich tomanage risk • Reviewingallsignificantcompensationprograms, focusingonprogramswithvariablepayouts • Assessing the company’sexecutive andbroad-based compensation andbenefitsprograms todetermine whether theprograms’provisions andoperation createundesiredorunintentionalmaterial risk. The risk assessmentprocess: • Includesa reviewof compensationprogram policiesandpractices, risk identificationand controlprocedures, thebalanceof risk reward, and the significanceand risksposedby compensationprogramson the company’s overall strategy • Takes intoaccount compensation termsand practices thataid in controlling risk, including the compensationmix,paymentperiods, claw-back provisions,and stockownershipguidelines COMMITTEES AUDIT Oversees issues related to internal control over financial reporting and majoroperational risk issues Oversees issues related to the company’s risk tolerance in cash-management investments Oversees issues related to risk in the company’s compensation programs, including our conclusion that our compensation policies and practicesdonot create risks that are reasonably likely tohave a material adverse effecton the company FINANCE COMPENSATION With respect to the risk assessmentof the company’s compensationprograms,management isprimarily responsible for: THEBOARDThefullBoardhasprimaryresponsibilityforriskoversight.TheBoardexecutesitsoversightdutiesthrough:AssigningspecificoversightdutiestotheBoardcommitteesPeriodicbriefingandinformationalsessionsbymanagementon:ThetypesofrisksthecompanyfacesEnterpriseriskmanagement:riskidentification,mitigation,andcontrolFormostenterpriseriskmanagementissues,suchascybersecurityrisks,theBoardreceivestimelyreportsfrommanagementortheappropriateBoardcommitteeregardingitsreviewofissues.Insomecases,suchasrisksregardingnewtechnologyandproductacceptance,riskoversightisaddressedaspartofthefullBoard’sregularoversightofstrategicplanning.COMMITTEESAUDITOverseesissuesrelatedtointernalcontroloverfinancialreportingandmajoroperationalriskissuesFINANCOverseesissuesrelatedtothecompany’srisktoleranceincash-managementinvestmentsCOMPENSATIONOverseesissuesrelatedtoriskinthecompany’scompensationprograms,includingourconclusionthatourcompensationpoliciesandpracticesdonotcreaterisksthatarereasonablylikelytohavea materialadverseeffectontecompnyMANAGEMENManagementisprimarilyesponsiblefor:IdentifyingriskandriskcontrolsrelatdtosignifcantbusinessactivitiesMappingtheriskstocompanystrategyDevelopingprogramsdrcommedationstodeterminethesufficienyofriskidentification,thbalanceofpoentialrisktopoetilreward,andtheappropiatemanneriwhichtomanageriskWithrpectotheriskassessmntofthecompany’scompenstionprograms,mnagementispimarilyresponsiblefor:Reviwingallignificantcompenationprograms,focusingonprogramswithvariablepyoutsAssssngthcompany’sexecutiveandbroad-basedcompnsationandbenefitsproramstodeterminewhethertheprogams’proviionsandperationreateundsiredorunintenionlmaterialriskTheriskassesmentprocess:Includearviwofcompnsationprogrampoliciesadpractices,riskidentificaionandcontrolprocedures,thbalanceofriskreward,andthesignificaneandrisksposedbycompensationprogramtecmpany’soverallstrategyTkesintoaccountcompensationtermsandpracticesthataidin controllingrisk,includingtecomensationmix,pamentperiod,claw-backpovisions,andstockownershipguieline 22 CorporateGovernance 2018PROXYSTATEMENT JOHNSON & JOHNSON RISK OVERSIGHT Board Oversight ofRisk Management TheBoardbelievesthatoverseeingmanagement’sprocessesforassessingandmanagingthevariousriskswefaceisone ofitsmostimportantresponsibilitiestoourstakeholders.Ourenterpriseriskmanagementframeworkreflectsacollaborative process,wherebyourBoardofDirectors,managementandotherpersonnelapplyaconsistent,rigorousriskmanagement approachtoourstrategic,planningandoperationaldecisionsacrosstheenterprisethatisdesignedtoidentifypotential eventsthatmaypresentarisktothecompany.WithoversightfromtheBoardofDirectors,businessleaderscollaboratewith leadersfromapplicableriskmanagementfunctionstoanalyzetheserisksanddevelopanappropriateapproachtoresolve ormitigatetheimpactofsuchriskfactors.Someriskfactors,suchasproductqualityandhealthcarecompliance,areboth topbusinessprioritiesandcoreCredovalues,andwehavedesignedstronginternalcomplianceprogramsandrigorous, independentqualityandsafetyreviewprocessestoensurecompliantbusinesspracticesandhighqualityproducts. TheBoardbelievesthatoversightofriskmanagementisavitalelementofitsresponsibilityandmeetsatregularintervals withbusinessleadersandleadersofriskmanagementfunctionstodiscusstheriskfactorsrelatedtoourcompany,which cangenerallybegroupedintothefollowingcategoriesandriskareas: TheBoardalsoreceivesregularreportsoncertainelementsofourriskmanagementfromseniorrepresentativesofour independentauditor.Inaddition,theAuditCommitteemeetsinprivatesessionswiththeChiefFinancialOfficer,General Counsel,VicePresidentofInternalAudit,andrepresentativesofourindependentauditortodiscussriskmanagementissues attheconclusionofeveryregularly-scheduledmeeting.TheRegulatory ,Compliance&Government AffairsCommitteealso meetsinprivatesessionswiththeGeneralCounsel,ChiefComplianceOfficer,ChiefQualityOfficer,andVicePresidentof InternalAudit,whereriskmanagementisdiscussed. 2018ProxyStatement-25 • Legislative/RegulatoryEnvironment • ProductSafety/ScientificIssues • ForeignCorruptPracticesAct • Environment,Health&Safety • Law/LegalProceedings • HealthCareCompliance • Privacy • Quality Compliance • Cybersecurity • SupplyChain • BusinessContinuity Planning • Manufacturing • ResearchandDevelopment • Security(includingSecurityof Products,Sites,Personneland Information) Operations • BusinessVitality • StrategicPlanning • TalentManagement • Reputation • Sustainability • Diversity • FinancialResults • Finance/Accounting • InternalAudit • IndependentAudit • Tax • Treasury Strategy Reporting