2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 224 MASTERCARD, INC. CorporateGovernance |2018MastercardProxy 24 Board and CommitteeEvaluation Eachyear,theBoardanditscommitteesundergoanevaluationtoexaminemembership,composition, committeeandcommitteechairrotation,andoverallboardrefreshment. Ourevaluationprocessis designedtoidentifywaysinwhichtoenhancetheperformanceoftheBoardandensurethatwehavethe rightskillsetsstackedagainstourstrategyforrefreshment. TheNCGoverseestheevaluationprocess, determiningitsformatandframework,includingwhethertouseathird-partyfacilitator. TheNCGmost recentlyusedathird-partyfacilitatorin2016. Whenwedonotuseathird-partyfacilitator,weutilizeadirectorquestionnairetofacilitatetheannual evaluationoftopicssuchasboardandcommitteeeffectiveness,directorcontributionsandthelike. Our independentChairmanoftheBoardandNCGChairmanreviewtheresultsandsharethemwitheach committeechairman. OurChairmanmeetsindividuallywithvariousBoardmembersandorganizesand summarizestheresponsesandrecommendationsfordiscussionwiththeBoard. Eachcommitteereviews itsownassessmentaswell. Board RiskOversight OurBoardisresponsibleforestablishingMastercard’sriskappetiteandoverseeingitsriskmanagement framework,aswellasitsriskassessmentandmanagementprocesses. TheBoardrecognizesthe importanceofeffectiveriskoversighttothesuccessofourbusinessstrategyandtothefulfillmentofits fiduciarydutiestothecompanyandourstockholders. TheBoardbelievestakingthoughtfulrisksisa criticalcomponentofinnovationandeffectiveleadership. Italsorecognizesthatimprudentlyaccepting riskorfailingtoappropriatelyidentifyandmitigateriskscouldnegativelyimpactourbusinessand stockholdervalue. TheBoardthereforeseekstofosterarisk-awareculturewhileencouragingthoughtful risktakinginpursuitofthecompany’sobjectives. TheBoardexercisesthisoversightbothdirectlyandindirectlythroughitsthreestandingcommittees,each ofwhichisdelegatedresponsibilityforspecificrisksandkeepstheBoardinformedofitsoversightefforts throughregularreportsbyeachcommitteechairman. Managementisaccountableforday-to-dayrisk managementefforts,includingthecreationofappropriateriskmanagementprogramsandpolicies. TheBoardandcommittees’riskoversightandmanagement’sownershipofriskarefoundational componentsofourEnterpriseRiskManagementprogram,whichisdesignedtoprovidecomprehensive, integratedoversightandbalancedmanagementofrisk,aswellastofacilitatetransparentidentification andreportingofkeybusinessissuestoseniormanagement,appropriateBoardcommitteesandtheBoard asawhole. Total of 02 pages in section MONSANTO COMPANY CorporateGovernanceandEthics OurBoardofDirectors PeopleandCompensationCommittee Members: Messrs.McMillan(Chair), Barns,BoyceandMs.Fields Allmembersofthepeopleandcompensationcommittee weredeterminedtomeettheenhancedindependence listingstandardsoftheNYSE. Establishesandreviewsourexecutivecompensationprogramandpoliciesandseeksto ensurethatourseniormanagementiscompensatedinamannerconsistentwiththe programandpolicies. Establishes,reviewsandmonitorsouroverallcompensationprogramforallour employees,otherthanseniormanagement,andmonitorsourperformanceasitaffects ouremployees. Considerstheimpactofourcompensationpoliciesandpracticesinrelationtoourrisk managementobjectives. Monitorsimplementationofourmanagementsuccessionstrategiesandplansforour CEOandothermembersofseniormanagement. Performsordelegates,reviewsandmonitorsMonsanto’sresponsibilitiesforourretirement andwelfarebenefitplans. Reviewsourcompensationprogramfornon-employeedirectorsandrecommends appropriatechangestoourboardofdirectors. ScienceandTechnologyCommittee Members: Dr.Poste(Chair), Mr.Lutz,Drs.ChicoineandVerduin andMs.Ipsen Reviewsandmonitorsourtechnologyportfolioandinformationtechnologyplatforms, includingasrelatedtothebudget,researchanddevelopmentinfrastructure,intellectual propertyandregulatorymatters. Providesunderstanding,clarificationandvalidationofthetechnicalmattersofour businesstoenabletheboardtomakeinformedstrategicbusinessdecisionsandensure thatworldclassscienceispracticedatourcompany. Identifiesandinvestigatessignificantemergingscienceandtechnologyissues. Overseesthemanagementofrisksrelatedtoourtechnologyportfolioandinformation technologyplatforms. SustainabilityandCorporate ResponsibilityCommittee Members: Ms.Fields(Chair), Messrs.BarnsandLutz, Drs.Chicoine,PosteandVerduin, andMs.Ipsen Reviewsandmonitorsourperformanceasitaffectsmattersrelatingtosustainability,the environment,communities,customersandotherkeystakeholders,includingrelatedrisks andrisksrelatedtoreputation. Reviewsissuesaffectingcompanyproductsinthemarketplace,includingissuesof agriculturalbiotechnology,andidentifiesandreviewssignificantemergingissues. Receivesperiodicreportsonthecompany’sbusinessconductprogram,progressrelated tothecompany’sHumanRightsPolicy,andthecompany’scharitableandpolitical contributionsandlobbyingexpenses,includingauthorizingfundingforcontributionsand appointingseniormanagementtomanagepoliticalcontributions. Reportstothefullboardastothestatusofourcompany’sprogramsandinitiativeson sustainability,environmentalmattersandsocialresponsibility. Board Role in Risk Oversight and Assessment Asatechnologycompany,takingriskisimportanttopursuingfuturegrowthforMonsanto.Wemustalsomanageourassetsforthebenefitof ourcompanyandourshareowners.Buthowdoweensurethatwetaketherightrisks? Ourboardoverseesmanagementasitbalancesriskandrewardopportunities,andisresponsibleformotivatingandchallengingmanagement toproperlyassess,mitigateandtakerisks.Infulfillingitsoversightresponsibilities,ourboardreceivesperiodicin-depthreportson management’senterpriseriskassessmentprocessandfrequentupdatesonmanagement’sassessmentofcurrentandfuturerisks.When requestingapprovalforaproject,managementisresponsibleforfullydescribingtherelevantrisksandmitigatingfactorstotheboard.The boardisthenabletofullyassesstheprojectwithinourrisk-rewardparameters. Ourboardoverseesmanyrisksattheboardlevel,butallocatescertainriskstoitscommitteesforadeeperreview.Theboardalsoassigns someriskstomultiplecommittees.Thisincreasestheeffectivenessofourboard’soversightbytakingintoaccountthedifferentperspectives ofthevariousboardcommittees,includingtheirinteractionswithmanagement.Eachcommitteereportsonitsactivitiestothefullboard. 26 MONSANTOCOMPANY2017PROXYSTATEMENT Total of 02 pages in section NASDAQ, INC. Notice of 2018 AnnualMeeting of Stockholders and Proxy Statement 26 Additionally, theBoard annually discusses and approves the company’s budget and capital requests,which are linked toNasdaq’s long-term strategic plans and priorities. Through these processes, theBoard brings its collective, independent judgment to bear on themost critical long-term strategic issues facingNasdaq. BOARD REFRESHMENT TheNominating&Governance Committee regularly oversees and plans for director succession and refreshment of theBoard to ensure amix of skills, experience, tenure and diversity that promotes and supports the company’s long-term strategy. In doing so, the Nominating&Governance Committee takes into consideration the corporate strategy and the overall needs, composition and size of theBoard, aswell as the criteria adopted by theBoard regarding director qualifications. Since January2017, three new directors have joined theBoard:MelissaM.Arnoldi,Adena T. Friedman and JohnD.Rainey. The average age of these new directors is47 years old, and all three are senior executives at public companies.All three also arefirst-time directors of a public company. In addition, theBoard has nominated JacobWallenberg,who is the Chairman of the Board of InvestorAB andwho has significant experience as a director of publicly traded companies, for election to theBoard at the2018AnnualMeeting. SUCCESSION PLANNING FOR NASDAQ LEADERSHIP TheBoard is committed to positioningNasdaq for further growth through ongoing talent management, succession planning and the deepening of our leadership bench. In this regard, formally on an annual basis and informally throughout the year in Executive Session, theNominating&Governance Committee, theManagement Compensation Committee, theBoard and thePresident and CEO review the succession planning and leadership development program, including a short-term and long-term succession plan for development, retention and replacement of senior officers. TheBoard has a formal process for reviewing internal succession candidates through regular interaction during Boardmeetings and strategy presentations, individualmeetings between directors and potential internal candidates and internal and external feedback from a variety of sources, includingmeetingwith stockholders. In addition, thePresident and CEO prepares, and the Board reviews, a short-term succession plan that delineates a temporary delegation of authority to certain officers of the company, if all or a portion of the senior officers should unexpectedly become unable to perform their duties. In conjunctionwith the annual report of the succession plan, thePresident and CEO also reports onNasdaq’s program for seniormanagement leadership development. RISK OVERSIGHT TheBoard's role in risk oversight is consistentwith the company’s leadership structure, withmanagement having day-to-day responsibility for assessing andmanaging the company’s risk exposure and theBoard having ultimate responsibility for overseeing risk managementwith a focus on themost significant risks facing the company. TheBoard is assisted inmeeting this responsibility by severalBoard Committees as described below under “Board Committees.” Furthermore, directorsmeet on a regular basis, both TheNominating&Governance Committee regularly oversees and plans for director succession and refreshment of theBoard to ensure amix of skills, experience, tenure and diversity that promotes and supports the company’s long- term strategy. 1 ISS Governance QuickScore Best PossibleScore on a scale of 1 to 10 Total of 02 pages in section NIELSEN HOLDINGS PLC THEBOARDOFDIRECTORSANDCERTAINGOVERNANCEMATTERS Managementisaccountableforday-to-dayriskmanagementefforts.TheBoardandcommittees’riskoversightand management’sownershipofriskarefoundationalcomponentsofourEnterpriseRiskManagementprogram.This programisdesignedtoprovidecomprehensive,integratedoversightandmanagementofriskandtofacilitate transparentidentificationandreportingofkeybusinessissuestoseniormanagementandtheBoardandits committees.ThefollowingarethekeyriskoversightandmanagementresponsibilitiesofourBoard,committeesand management: BoardofDirectors OverseesMajorRisks Management KeyRiskResponsibilities • Businessunits identifyand managebusiness risks AuditCommittee PrimaryRiskOversight • Financial statement integrity and reporting • Information security, technologyandprivacy &dataprotection • Legal, regulatoryand compliance • Internal controls CompensationCommittee PrimaryRiskOversight • Executive compensation policiesandpractices • Non-executivedirector compensationpolicies andpractices • Talentmanagment Nominationand CorporateGovernance Committee PrimaryRiskOversight • Governance structure andprocesses • Legalandpolicymatters • Shareholder concerns, includingESGmatters • Boardand seniormanagment successionplanning • Strategicand competitive • Financial • Brandand reputational • Legaland regulatory • Operational • Cybersecurity • CEOSuccessionPlanning • Central functionsdesign risk framework, including setting boundariesandmonitoring riskappetite • Internalauditprovides independentassuranceon designandeffectivenessof internal controlsand governanceprocesses 2018PROXYSTATEMENT 19