2018 Guide to Effective Proxies

2.16 Risk oversight | 223 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES JPMORGAN CHASE & CO. Boardoversightof the key risksarising from thebusinessesandactivitiesof theFirmare coordinatedamongBoard committeesgenerallyas follows: BOARD OF DIRECTORS Audit CMDC DRPC PublicResponsibility Governance Oversees: Oversees: Oversees: Oversees: Oversees: ▪ Internal control framework ▪ Reviewandapproval of compensation philosophyand practices ▪ Global risk management framework ▪ Community investing and fair lending practices ▪ Governance risk includingboard compositionand governancepractices ▪ Integrityof financial statements ▪ Compensation programs ▪ Approvalofprimary riskpoliciesand risk appetite statement ▪ Politicalengagement, including lobbying expensesand political contributions ▪ Legal risk ▪ OperatingCommittee performance assessmentsand compensation ▪ Market risk ▪ Sustainability ▪ Global compliance program ▪ Cultureand conduct framework ▪ Credit risk ▪ Consumerpractices, including consumer experience, consumer complaint resolution,and consumer issues related to disclosures, feesor the introductionof majornewproducts ▪ Technologyand cybersecurity risk ▪ Country risk ▪ Investmentportfolio risk ▪ Liquidity risk ▪ Estimationsand Model risk ▪ Framework for operational risk, reputation risk,and compliance risk including fiduciary and conduct risk Formore informationabout committee responsibilities, see “Committeesof theBoard”onpages23-26. Formore informationabout theFirm’s riskmanagement, see the “Enterprise-wide riskmanagement” sectionof the Firm’sAnnualReportonForm10-K for the yearendedDecember31,2017. TableofContents 30 JPMORGANCHASE&CO. • 2018PROXYSTATEMENT CORPORATEGOVERNANCE KEYCORP TheBoardofDirectorsandItsCommittees Board Oversight of Risk OurBoardleadershipandcommitteestructuresupportstheBoard’sriskoversightfunction.Generally,eachBoard committeeoverseesthefollowingrisks: • TheRiskCommitteehasprimaryoversightresponsibilityforenterprise-wideriskatKeyCorp,includingcreditrisk,market risk,liquidityrisk,compliancerisk,operationalrisk(includingcybersecurity),aswellasreputationalandstrategicrisks, andoversightoftheactionstakentomitigatetheserisks. • TheAuditCommitteehasprimaryoversightresponsibilityforinternalaudit,financialreporting,legalmatters,andfraud risk. • TheCompensationCommitteehasprimaryoversightresponsibilityforrisksrelatedtoKeyCorp’scompensationpolicies andpractices. • TheNominatingandCorporateGovernanceCommitteehasprimaryoversightresponsibilityforsignificantissuesof corporatesocialresponsibility. TheAuditandRiskCommitteesjointlyoverseeandreviewtheallowanceforloanandleaselossesmethodologyandmonitor operationalrisk. Thecommitteesreceive,review,andevaluatemanagementreportsonriskfortheirareasofriskoversight.AteachBoard meeting,theChairofeachBoardcommitteereportstothefullBoardonriskoversightissues. OurBoardstructureenablestheBoardtoexercisevigorousoversightofkeyissuesrelatingtomanagementdevelopment, successionandcompensation,complianceandintegrity,corporategovernance,cybersecurity,andcompanystrategyand risk.Withrespecttorisk,theBoardoverseesthatKey’srisksaremanagedinamannerthatiseffectiveandbalancedand addsvalueforKey’sshareholders.TheBoardunderstandsKey’sriskphilosophy,approvesKey’sriskappetite,inquires aboutriskpractices,reviewstheportfolioofrisks,comparestheactualriskstotheriskappetite,andisapprisedofsignificant risks,bothcurrentandemerging,anddetermineswhethermanagementisrespondingappropriately.Withrespecttoriskand otherareasthatitoversees,theBoardchallengesmanagementandpromotesaccountability. KeyCorphasformedaseniorlevelmanagementcommittee,theEnterpriseRiskManagementCommittee(“ERMCommittee”), consistingofMs.MooneyandotherseniorofficersatKeyCorp,includingKeyCorp’sChiefRiskOfficer.TheERMCommittee meetsweeklyandiscentraltoseeingthatthecorporateriskprofileismanagedinamannerconsistentwithKeyCorp’srisk appetite.TheERMCommitteealsoisresponsibleforimplementationofKeyCorp’sEnterpriseRiskManagementPolicythat encompassesKeyCorp’sriskphilosophy,policyframework,andgovernancestructureforthemanagementofrisksacross theentirecompany.TheRiskCommitteeoftheBoardoverseesKeyCorp’sriskmanagementprogram,includingtheERM Committee.TheBoardofDirectorsapprovestheEnterpriseRiskManagementPolicyandsetstheoveralllevelofrisk KeyCorpiswillingtoacceptandmanageinpursuitofitsstrategicobjectives. Oversight of Compensation-Related Risks KeyCorp’scompensationprogramisdesignedtooffercompetitivepayforperformance,alignedwithKeyCorp’sshort-and long-termbusinessstrategies,approvedriskappetiteanddefinedrisktolerances,andshareholders’interests.Reviewsof KeyCorp’scompensationplansbytheCompensationCommitteeandKeyCorpmanagementdidnotidentifyanyplanthat wasreasonablylikelytohaveamaterialadverseimpactonKeyCorporthatwouldincentivizeexcessiverisk-taking.The CompensationCommitteealsoreviewedKeyCorp’scompensationplanstomonitorcompliancewithKeyCorp’srisk managementtolerancesandsafetyandsoundnessrequirements. KeyCorphasawell-developedgovernancestructureforitsincentivecompensationprograms,includingrolesfortheBoard ofDirectors,seniormanagement,linesofbusinessandcontrolfunctions.TheBoardoverseesKeyCorp’sincentive compensationprograms,primarilythroughtheCompensationCommittee,withadditionalinputandguidancefromits NominatingandCorporateGovernance,Risk,andAuditCommittees.Inadditiontodirectlyapprovingcompensation decisionsforseniorexecutives,theCompensationCommitteealsoapprovesKeyCorp’soverallIncentiveCompensation PolicyandProgramsothatKeyCorp’sincentivecompensationpracticesremaininalignmentwithKeyCorp’srisk managementpractices.KeyCorp’sIncentiveCompensationPolicyandProgramareintendedtoenhanceKeyCorp’srisk managementpracticesbyrewardingappropriaterisk-basedperformance. Wemaintainadetailedandeffectivestrategyforimplementingandexecutingincentivecompensationarrangementsthat providebalancedrisk-takingincentives.KeyCorp’sincentivecompensationarrangementsaredesigned,monitored, administered,andtestedbyamultidisciplinaryteamdrawnfromvariousareasofKeyCorp,includingRiskManagement.This 15 MANPOWERGROUP 1.ElectionofDirectors leaddirectorservingcontinuoustermsprovidesgreatercontinuitytotherole,enhancesboardleadershipand performanceandfacilitateseffectiveoversightoftheperformanceofseniormanagement.Ourcurrentleaddirector, Mr. Downe,hasservedasleaddirectorsinceMay2017andatthemeetinginFebruary2018,theboardof directorsre-appointedMr. Downetoserveasleaddirectorforanotheryear. Theleaddirector’sdutiesasspecifiedintheCompany’scorporategovernanceguidelinesareasfollows: • Presideatexecutivesessionsofthenon-employeedirectorsandallothermeetingsofdirectorswherethe chairmanoftheboardisnotpresent; • Serveasliaisonbetweenthechairmanoftheboardandthenon-employeedirectors; • Approvewhatinformationissenttotheboard; • Approvethemeetingagendasfortheboard; • Approvemeetingschedulestoassurethatthereissufficienttimefordiscussiononallagendaitems; • Havetheauthoritytocallmeetingsofthenon-employeedirectors;and • Ifrequestedbymajorshareholders,ensurethatheorsheisavailableforconsultationanddirect communication. Board Oversight of Risk Theboardofdirectorsisresponsibleforoverseeingmanagementintheexecutionofmanagement’sCompany- wideriskmanagementresponsibilities.Theboardofdirectorsfulfillsthisresponsibilitybothdirectlyandthroughits standingcommittees(asdiscussedfurtherbelow),eachofwhichassiststheboardofdirectorsinoverseeingapart oftheCompany’soverallriskmanagement. ThecommitteesoftheboardoverseespecificareasoftheCompany’sriskmanagementasdescribedbelow: AuditCommittee Theauditcommitteeisresponsibleforassistingtheboardofdirectorswithitsoversightoftheperformanceofthe Company’sriskmanagementfunctionsincluding: • PeriodicallyreviewinganddiscussingwithmanagementtheCompany’sriskmanagementframework,including policies,practicesandproceduresregardingriskassessmentandmanagement; • Periodicallyreceiving,reviewinganddiscussingwithmanagementreportsonselectedrisktopicsasthe committeeormanagementdeemsappropriatefromtimetotime;and • Periodicallyreportingtotheboardofdirectorsonitsactivitiesinthisoversightrole. ExecutiveCompensationandHumanResourcesCommittee Theexecutivecompensationandhumanresourcescommitteereviewsanddiscusseswithmanagementthe Company’scompensationpoliciesandpracticesandmanagement’sassessmentofwhetheranyrisksarisingfrom suchpoliciesandpracticesarereasonablylikelytohaveamaterialadverseeffectontheCompany. NominatingandGovernanceCommittee Thenominatingandgovernancecommitteeevaluatestheoveralleffectivenessoftheboardofdirectors,including itsfocusonthemostcriticalissuesandrisks. Aspartofthisoversight,thecommitteesengageinreviewsanddiscussionswithmanagement(andothersif consideredappropriate)asnecessarytobereasonablyassuredthattheCompany’sriskmanagementprocesses (1)areadequatetoidentifythematerialrisksthatwefaceinatimelymanner,(2)includestrategiesforthe managementofriskthatareresponsivetoourriskprofileandspecificmaterialriskexposure,(3)servetointegrate riskmanagementconsiderationsintobusinessdecision-makingthroughouttheCompany,and(4)includepolicies andproceduresthatarereasonablyeffectiveinfacilitatingthetransmissionofinformationwithrespecttomaterial riskstotheseniorexecutivesoftheCompanyandeachcommittee. 2018ProxyStatement | 18 MARATHON PETROLEUM CORPORATION TheBoardofDirectors U nderour B yla w sandthela w so f thestateo f Dela w are, MPC ’ sstateo f in c orporation,the b usinessanda ff airso f MPC aremanagedunderthedire c tiono f our B oardo f Dire c tors. Our B oardisdi v idedintothree c lasses, w hi c hmust b eas nearlye q ualinsi z easpra c ti c a b le.Currently,Class Ic onsists o f threedire c tors, w hileea c ho f Classes II and IIIc onsisto f f ourdire c tors.Dire c torsareele c ted b yshareholders f orterms o f threeyearsandholdo ff i c euntiltheirsu cc essorsare ele c tedand q uali f y.Oneo f thethree c lassesisele c tedea c h yeartosu cc eedthedire c tors w hosetermsaree x piring.Aso f theAnnualMeeting,theterms f orthedire c torsinClasses I , II and III o f the B oardo f Dire c torse x pirein2018,2019and 2020respe c ti v ely. OnSeptem b er29,201 6 ,A b dula z i z F.Al k hayyal w asele c ted toour B oardtoser v easaClass II dire c tor,e ff e c ti v e O c to b er2 6 ,201 6 .Tomaintainthethree c lasseso f our B oard asnearlye q ualinsi z easpra c ti c a b le,Mr.Al k hayyalhas b een nominated f orele c tionattheAnnualMeetingtoser v easa Class I dire c tor. R e c lassi f yingMr.Al k hayyalasaClass I dire c tornominee w illresultinhisstanding f orele c tionone yearearlierthan w ould b ethe c asei f heremainedaClass II dire c tor.Thisre c lassi f i c ationisne c essaryasoneo f our c urrentClass I dire c tors,Mr.Da b er k o,isnot b eingnominated f orre - ele c tionandisretiringuponthee x pirationo f histermat the c on c lusiono f theAnnualMeetingina cc ordan c e w iththe retirementpro v isionso f our B yla w s. OnFe b ruary28,2018,our B oarddeterminedthatuponthe retiremento f Mr.Da b er k oatthe c on c lusiono f theAnnual Meeting,thesi z eo f theMPC B oardo f Dire c tors w ill b e f i x ed at10dire c tors.Assumingtheele c tiono f thethreeClass I dire c tornominees,atthe c on c lusiono f theAnnualMeeting, our B oard w ill c onsisto f three c lasses w iththreedire c torsin Class I ,threedire c torsinClass II and f ourdire c torsin Class III . Our B oardmetninetimesin201 7 .Theattendan c eo f the mem b erso f our B oarda v eragedappro x imately99per c ent f or theaggregateo f thetotalnum b ero fB oardand c ommittee meetingsheldin201 7 .Ea c ho f ourdire c torsattendedatleast 7 5per c ento f themeetingso f the B oardand c ommitteeson w hi c hheorsheser v ed.PursuanttoourCorporate G o v ernan c ePrin c iples,mem b erso f our B oardaree x pe c ted toattendtheAnnualMeeting.Alle xc eptonemem b ero f our B oardattendedtheAnnualMeetingo f Shareholderson April2 6 ,201 7 . OurChairmanandCEOpresidesatallmeetingso f shareholdersando f the B oard. If thenon - employeedire c tors meet w ithouttheChairmanandCEOorin c ir c umstan c esin w hi c htheChairmanandCEOisuna v aila b le,the L eadDire c tor ser v esasthepresidingdire c toratsu c hmeeting.TheChairman andCEOalsoattends B oard c ommitteemeetings,otherthan thee x e c uti v esessionso f thenon - managementdire c tors. PursuanttoourCorporate G o v ernan c ePrin c iples, non - employeedire c torso f the B oardholde x e c uti v esessions. Ano ff ero f ane x e c uti v esessionise x tendedtonon - employee dire c torsatea c h B oardmeeting.The L eadDire c torpresides atthesee x e c uti v esessions. I n201 7 ,non - employeedire c tors o f the B oardhelde x e c uti v esessionsateight B oardmeetings. Our B oardhasthreeprin c ipal c ommittees,allo f themem b ers o fw hi c hareindependent,non - employeedire c tors.Theta b le b elo w re f le c tsthe c urrent c ommitteemem b ershipso f ea c h independentdire c torandthenum b ero f meetingsea c h c ommitteeheldin201 7 . B oard Committee Mem b erships Director Audit Committee Compensation Committee Corporate Governance and Nominating Committee A b dula z i z F.Al k hayyal ✓ ✓ E v an B ayh ✓ ✓ CharlesE. B un c h ✓ ✓ Da v idA.Da b er k o(retiring) ✓ Ste v enA.Da v is ✓ ✓ DonnaA. J ames ✓ ✓ J amesE. R ohr ✓ Chair J .Mi c haelSti c e ✓ ✓ J ohnP.Surma Chair Chair Numberof meetingsin2017 5 6 4 I n201 7 ,the B oard f ormedaspe c ial c ommittee c omprised entirelyo f independentdire c torstoe v aluatestrategi c and f inan c ialalternati v es f ortheCompany ’ sretailtransportation f uelsand c on v enien c estore b usiness( w hi c h w ere f ertoas Speed w ay).Thespe c ial c ommitteemet11timesin201 7 . TheBoard’sRoleinRiskOversight R esponsi b ility f orris k o v ersightrests w ithour B oardo f Dire c torsandthe c ommitteeso f the B oard.Our B oardand e x e c uti v eleadershipteammeet f re q uentlytodis c uss enterpriseris k management(orE R M).Our B oardmem b ers ha v esigni f i c ante x pertiseande x perien c eintheenergy se c tor, f inan c e,e c onomi c s,operationsandpu b li c poli c y. K ey ris k sasso c iated w iththestrategi c plano f theCompany, in c ludingemergingris k s,arere v ie w edannuallyata designatedstrategymeetingo f the B oardandonanongoing b asisperiodi c allythroughouttheyear.The B oardre c ei v es regularupdates f romits c ommitteesregardingtheira c ti v ities relati v etoris k o v ersightandre v ie w sris k so f amorestrategi c natureatthe f ull B oardle v el. OurAuditCommitteeassistsour B oardin f ul f illingitso v ersight responsi b ilities b yregularlyre v ie w ingris k sasso c iated w ith f inan c ialanda cc ountingmatters,as w ellasthoserelatedto f inan c ialreporting. I nthisregard,ourAuditCommitteemonitors c omplian c e w ithregulatoryre q uirementsandinternal c ontrol systems.OurAuditCommitteealsore v ie w sthepro c ess b y w hi c hE R Misunderta k en b ytheCompany. MarathonPetroleumCorporationPro x yStatement / page13 Total of 02 pages in section