2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 228 STARBUCKS CORPORATION CORPORATEGOVERNANCE UpontherecommendationofourNominatingandCorporate GovernanceCommittee(the“Nominating/GovernanceCommittee”) andmanagement’srecommendationsbasedonvariousfactors includingtheresultsoftheshareholderoutreachsummarizedabove, ourboardamendedourBylawsinSeptemberof2016toimplement proxyaccess.Asamended,ourBylawspermitashareholder,ora groupofupto20shareholders,owningthreepercentormoreofour outstandingcommonstockcontinuouslyforatleastthreeyearsto nominateandincludeinourproxymaterialsdirectornominees constitutinguptotwoindividualsor20%oftheboard,whicheveris greater,providedthattheshareholder(s)andthenominee(s)satisfy therequirementsspecifiedinourBylaws. BoardLeadership Theboardofdirectorsisresponsibleforoverseeingtheexerciseof corporatepowerandseeingthatStarbucksbusinessandaffairsare managedtomeettheCompany’sstatedgoalsandobjectivesandthat thelong-terminterestsoftheshareholdersareserved. HowardSchultz,executivechairmanofStarbucks,currentlyservesas thechairmanoftheboard.MyronE.Ullman,III,anon-employee independentdirector,waselectedtheleadindependentdirector pursuanttoourCorporateGovernancePrinciplesandPractices, effectiveMarch23,2016.Mr.Ullman’stermasleadindependent directorexpiresattheboardmeetingimmediatelyfollowingthe2018 AnnualMeetingofShareholders.Directorsarelimitedtoservingtwo consecutivetwo-yeartermsinthatrole. Ourboardleadershipstructuresupportstheindependenceofour non-managementdirectors.Theindependentdirectorsmeetinan executivesessionateachboardmeeting,andeachofthestanding boardcommittees(discussedbelow)iscomprisedsolelyofandledby independentdirectors.Theleadindependentdirectorpresidesatthe scheduledexecutivesessionsofindependentdirectorsaswellasall meetingsoftheboardatwhichthechairmanisnotpresent.Thelead independentdirectorandthechairmaneachhastheauthoritytocall meetingsoftheindependentdirectorsandoftheentireboard. PursuanttoourCorporateGovernancePrinciplesandPractices,the dutiesoftheleadindependentdirectoralsoinclude: • servingasaliaisonbetweentheindependentdirectorsandthe chairmanoftheboard; • approvingtheschedulingofboardmeetings,aswellastheagenda andmaterialsforeachboardmeetingandexecutivesessionofthe independentdirectors; • approvingandcoordinatingtheretentionofadvisorsandconsultants totheboard;and • suchotherresponsibilitiesastheindependentdirectorsmay designatefromtimetotime. Theboardofdirectorsbelievesthatitshouldmaintainflexibilityto selectStarbuckschairmanandboardleadershipstructuresfromtime totime,andourpoliciesdonotprecludethechiefexecutiveofficer fromalsoservingaschairmanoftheboard.Mr.Schultzservedinboth positionspriortoApril3,2017.Onthatdate,therolesofchairmanand ceowereseparatedasMr.Schultzbecameexecutivechairmanofthe CompanyandMr.Johnsonassumedtheroleofpresidentandceo. Mr.Schultzcontinuestoserveaschairmanoftheboard. TheboardofdirectorsbelievesthatMr.Schultzcontinuingtoserveas chairmanoftheboard,whileMr.Ullmanmaintainshisroleasthelead independentdirector,allowstheboardtocontinuetobenefitfrom Mr.Schultz’sin-depthknowledgeofStarbucksbusinessandindustry aswellashisleadershipinformulatingandimplementingstrategic initiativesthatwillfocusoninnovation,designanddevelopmentof StarbucksReserve ® Roasteriesaroundtheworld,expansionofthe StarbucksReserve ® retailstoreformatandtheCompany’ssocial impactinitiatives,whiletherolegiventoourleadindependentdirector willmaintainastrong,independentandactiveboard. RiskOversight Theboardofdirectorshasoverallresponsibilityforriskoversight, including,aspartofregularboardandcommitteemeetings,general oversightofexecutives’managementofrisksrelevanttotheCompany. Afundamentalpartofriskoversightisnotonlyunderstandingthe materialrisksacompanyfacesandthestepsmanagementistakingto managethoserisks,butalsounderstandingwhatlevelofriskis appropriateforthecompany.Theinvolvementoftheboardofdirectors inreviewingStarbucksbusinessstrategyisanintegralaspectofthe board’sassessmentofmanagement’stoleranceforriskandalsoits determinationofwhatconstitutesanappropriatelevelofriskforthe Company. Whilethefullboardhasoverallresponsibilityforriskoversight,the boardhasdelegatedoversightresponsibilityrelatedtocertainrisksto theAuditandComplianceCommittee(the“AuditCommittee”)andthe CompensationCommittee.TheAuditCommitteeisresponsiblefor reviewinganddiscussingwithmanagementtheCompany’smajorand emergingriskexposures,includingfinancial,operational,technology, privacy,dataandphysicalsecurity,disasterrecoveryandethicsand compliance,foodsafety,legalandregulatoryrisks;thestepsthe Companyhastakentomonitorandcontrolsuchexposures;andthe Company’sriskassessmentandriskmanagementpolicies.Thechair oftheAuditCommitteeregularlyreportstotheboardthesubstanceof suchreviewsanddiscussions.Further,in2016,theCompany establishedtheRiskManagementCommitteewhichisco-managedby Starbuckschieffinancialofficerandgeneralcounsel.TheRisk ManagementCommitteeisfocusedonrisksfacingtheCompany, includingstrategicrisks,marketrisks,internalcontrolrisksand operationalrisksandprovidesinformationtotheAuditCommitteeatits regularlyscheduledmeetings. TheAuditCommitteealsoreceivesregularreportsfrommanagement includingourchiefethicsandcomplianceofficer,vicepresidentand controllerandvicepresidentofInternalAuditonrisksfacingthe Companyatitsregularlyscheduledmeetingsandotherreportsas requestedbytheAuditCommitteefromtimetotime.The CompensationCommitteeisresponsibleforreviewingandoverseeing themanagementofanypotentialmaterialrisksrelatedtoStarbucks compensationpoliciesandpractices.TheCompensationCommittee reviewsasummaryandassessmentofsuchrisksannuallyandin connectionwithdiscussionsofvariouscompensationelementsand benefitsthroughouttheyear. Theboard’sroleinriskoversighthasnotresultedinanyadditional changestotheboard’sleadershipstructure. STARBUCKSCORPORATION 2018PROXYSTATEMENT / 13 SYNOPSYS INC. Risk Oversight OurBoardisresponsiblefortheoversightofourcompany-wideriskmanagementefforts anddelegates theassessmentandimplementationofourday-to-dayriskmanagementpoliciestoourmanagement. OurBoardisdirectlyinvolvedinoverseeingriskmanagementissuesrelatedtosignificantmatters such asouroverallbusinessstrategy,majorstrategictransactions,andexecutiveofficersuccessionthrough itsregularcommunicationswithmanagement. Additionally,eachofourstandingBoardcommitteeshasindividualoversightresponsibilities: Committee PrimaryAreasofRiskOversight Audit • Risksrelatedtofinancialreportingandcontrols. • Supervisionoftheworkperformedbyourindependentregisteredpublic accountingfirmandourinternalauditfunction. • Supervisionofouranonymousandconfidentialethicsreportingsystem,which encouragesandallowsanyemployeetosubmitconcernsdirectlytosenior managementandtheAuditCommittee. • Risksrelatingtoourinvestments,financingactivities,taxes,andworld-wide insuranceprograms. • Risksrelatedtoinformationtechnologysecurityanddatasecurity. • Reviewandapprovalofrelatedpersontransactions. Compensation • Risksrelatedtoourcashandequitycompensationprogramsandpractices. • ForadditionalinformationregardingtheCompensationCommittee’s assessmentofourcompensation-relatedrisk,pleaseseethesubsectiontitled “CompensationRiskAssessment”inthe“CompensationDiscussionand Analysis”sectionbelow. Governance • Risksrelatedtoouroverallcorporategovernance,includingourgovernance policiesandprinciples. • RisksrelatedtothecompositionandstructureofourBoardofDirectorsandits committees,whichincludesannualevaluationofourBoardandBoard committeesandperiodicreviewofBoardmemberandexecutiveofficer successionplans. • ThecommitteechairpersonmayinvestigateconcernsapplicabletoourBoard anditscommitteesraisedthroughourconfidentialethicsreportingsystem. Share Ownership Guidelines InordertobetteraligntheinterestsofourBoardmembersandmanagementwiththeinterestsofour stockholders,ourBoardofDirectorsfirstadoptedshareownershipguidelinesinfiscal2003.Underthe currentguidelines,non-employeedirectorsareexpectedtoachieveashareownershiplevelwitha valueequaltothreetimestheamountofeachnon-employeedirector’sannualcashretainer(excluding compensationforcommitteeservice)or15,000shares,withinthreeyearsofinitialelectionasa director,andmaintainsuchownershiplevel,asmeasuredeachyearonthedateoftheannualmeeting ofstockholders,solongastheyserveinthepositionofdirector. Theseguidelinesalsorecommendthatcoveredmembersofmanagementachieveshareownership levelswithinfouryearsofappointmentandmaintainsuchownershiplevelsolongastheyservein suchpositionsasfollows:co-ChiefExecutiveOfficer—50,000shares;ChiefFinancialOfficer—10,000 shares;ChiefTechnologyOfficer—10,000shares;GeneralCounsel—10,000shares;allother membersofour“CorporateStaff”—10,000shares;andChiefAccountingOfficer—2,500shares. SynopsysInc.|13|2018ProxyStatement T-MOBILE US, INC. CORPORATEGOVERNANCEATT-MOBILE BOARD RISK OVERSIGHT ManagementoftheCompany,includingtheChiefExecutiveOfficerand otherexecutiveofficers,isprimarilyresponsibleformanagingtherisks associatedwiththebusiness,operations,andfinancialanddisclosure controls.Managementconductsaquarterlyenterprise-widerisk assessmentandconsidersfinancial,strategic,IT,technology,operational, compliance,legal/regulatory,andreputationalriskstotheCompany.The resultsoftheseassessmentsareconsideredinconnectionwiththe operational,financial,andbusinessactivitiesoftheCompany. Management Has Established an Enterprise Risk and Compliance Committee and an Information Security and Privacy Council TheEnterpriseRiskandComplianceCommitteeoverseesactivitiesinthe areasofriskmanagementandcomplianceasameansofbringingrisk issuestotheattentionofseniormanagement.Responsibilitiesforrisk managementandcompliancearedistributedthroughoutvariousfunctional areasofthebusiness,andtheEnterpriseRiskandComplianceCommittee regularlyreviewstheCompany’sactivitiesintheseareas. TheInformationSecurityandPrivacyCouncil,withsupportfromtheSenior VicePresident,DigitalSecurity,whoservesastheChiefInformation SecurityOfficer,andtheVicePresident,ChiefPrivacyOfficer,overseesthe strategicgovernanceandprioritizationoftheCompany’sinformation securityandprivacyinitiatives. Selective Delegation of Risk Oversight to Committees WhilethefullBoardhasoverallresponsibilityforriskoversight,theBoard hasdelegatedriskoversightresponsibilityforcertainriskstocommittees oftheBoard.Onaregularbasis,reportsofallcommitteemeetingsare presentedtotheBoardandtheBoardperiodicallyconductsdeepdiveson keyenterpriserisks. AuditCommittee TheAuditCommitteehasprimaryresponsibilityforoverseeingthe Company’svariousriskassessmentandriskmanagementpolicies.The AuditCommitteeconsidersanddiscussespolicieswithrespecttorisk assessmentandriskmanagement,includingtheCompany’smajor financialriskexposuresandthestepsmanagementhastakentomonitor andcontrolsuchexposures. ToassisttheAuditCommitteewithitsriskassessmentfunction,theSenior VicePresident,InternalAudit&RiskManagement,whoservesastheChief AuditExecutive,andtheVicePresident,ChiefComplianceOfficerhave directreportingchannelstotheAuditCommittee,andhaveregular meetingswiththeAuditCommitteeand/oritsmembers.Theyprovidea quarterlyenterprise-wideriskassessmentandannualfraudand complianceriskassessmentstotheAuditCommitteeandupdatetheAudit CommitteeonsignificantissuesraisedbytheEnterpriseRiskand ComplianceCommittee. TheAuditCommitteereviewsallriskassessments,providesfeedbackto executivemanagementandsharestheriskassessmentswiththeBoard. TheAuditCommitteealsohasotherresponsibilitieswithrespecttothe Company’sinternalauditandSOXComplianceprogram,aswellasother complianceandethicsprograms,asmorefullysetoutinitscharter. CompensationCommittee TheCompensationCommitteehascertainresponsibilitieswithrespectto theassessmentofriskinconnectionwithourcompensationprograms. TheCompensationCommitteeperiodicallyreviewswithmanagementan assessmentofwhetherrisksarisingfromtheCompany’scompensation policiesandpracticesforallemployeesarereasonablylikelytohavea materialadverseeffectontheCompany,aswellasthemeansbywhich anypotentialrisksmaybemitigated,suchasthroughgovernanceand oversightpolicies.TheCompanydesignsthecompensationprogramsto encourageappropriaterisktakingwhilediscouragingbehaviorthatmay resultinunnecessaryorexcessiverisk.Inthisregard,thefollowing elementshavebeenincorporatedinourcompensationprogramsfor executiveofficers: Useofmultiplemetricsintheannualincentiveplananduseoftwo long-termincentivevehicles(time-basedandperformance-based)for executiveofficers Annualincentiveawardpayoutscappedat200%oftarget Performance-basedlong-termincentiveawardscappedat200%of target Emphasisonlong-termandperformance-basedcompensation CompensationCommitteehasdiscretiontoreduceincentiveawards,as appropriate Alignmentofinterestsofourexecutiveofficerswiththelong-term interestsofourstockholdersthroughstockownershipguidelinesthat callforsignificantshareownershipbyourexecutiveofficers Formalclawbackpolicyapplicabletobothcashandequity compensation Generally,long-termincentiveawardsvestratablyoverthreeyearsorat theendofathree-yearperformanceperiod Noexcessiveperquisitesforexecutiveofficers Basedonanassessmentconductedbymanagementconsultant WillisTowersWatson,whichwaspresentedtoanddiscussedwith theCompensationCommittee,managementconcludedthatour compensationpoliciesandpracticesforallemployeesdonotcreate risksthatarereasonablylikelytohaveamaterialadverseeffecton theCompany. ExecutiveCommittee TheExecutiveCommitteereviewsandprovidesguidancetosenior managementregardingtheCompany’sstrategy,operatingplansand operatingperformance.TheExecutiveCommitteealsoplaysakeyrolein helpingtheBoardperformitsriskoversightfunctionbyconsidering strategicoperatinggoals,opportunitiesandrisks. NominatingandCorporateGovernanceCommittee TheNominatingandCorporateGovernanceCommitteeoverseesBoard processandcorporategovernance-relatedrisks. 10 T-Mobile2018ProxyStatement TAYLOR MORRISON CORPORATEGOVERNANCE Board’sRoleinRiskOversight Our board of directors exercises oversight of risk management consistent with its duties to the Company and its subsidiaries. The audit committee is responsible for discussing with management our major financial, credit, liquidity and other risk exposures, as well as our risk assessment and risk management policies. The audit committee works directly with members of senior management and our internal audit staff to review and assess our risk management initiatives, including our compliance programs and cybersecurity initiatives, and reports as appropriate to the board. In addition, the audit committee meets as appropriate (1) as a committee to discuss our risk management guidelines, policies and exposuresand(2)withourindependentauditorstoreviewourinternalcontrolenvironmentandotherriskexposures. The compensation committee oversees the management of risks relating to our executive compensation programs and employee benefit plans. In the fulfillment of its duties, the compensation committee reviews at least annually our executive compensation programs, meets regularly with management to understand the financial, human resources andstockholderimplicationsofcompensationdecisionsandreportsasappropriatetotheboard. Theboardofdirectorsasawholealsoengagesintheoversightofriskinvariousways. • During the course of each year, the board of directors reviews the structure and operation of various departments and functions of our company, including its risk management and internal audit functions. In these reviews, the board of directors discusses with management the risks affecting those departments and functions and management’sapproachestomitigatingthoserisks. • The board of directors reviews and approves each year’s management operating plan. These reviews cover risks thatcouldaffectthemanagementoperatingplanandmeasurestocopewiththoserisks. • In its review and approval of annual reports on Form 10-K, the board of directors reviews our business and related risks, including as described in the “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the document. The audit committee updates this review quarterlyinconnectionwiththepreparationofourquarterlyreportsonForm10-Q • Management must obtain the approval of the board of directors, acting through an investment committee of the board of directors, before proceeding with any land acquisition above a pre-established threshold. When the board of directors reviews particular transactions and initiatives that require board approval, or that otherwise merit the board of directors’ involvement, the board of directors generally includes related risk analysis and mitigation plans amongthemattersaddressedwithmanagement. In addition to the foregoing, the Company’s has an enterprise risk management (“ERM”) committee. The ERM committee consists of members of our management team who work with other key members of management to identify, monitor and evaluate the Company’s risks and develop an approach to address and mitigate each identified risk. Each quarter, and more frequently if necessary, the ERM committee reports its findings and recommendations to theauditcommittee,andtheauditcommitteethenreportstotheboardofdirectors. As part of its risk oversight regarding cybersecurity, the ERM committee works with the Company’s Chief Information Officer and the Company’s Cyber-Risk Management Subcommittee (composed of the heads of the Company’s information technology internal audit and risk management groups) to review on a quarterly basis, or more frequently as necessary, any cyber incidents and the results from the Company’s security self audits. This cybersecurity evaluation forms a part of the ERM committee’s quarterly reports to the audit committee and the audit committee’s quarterly reports to the board of directors. Our board of directors also receives on an annual basis, or more frequently as necessary, a report from the Company’s Chief Information Officer and/or the Vice President of Information Technology,regardingcyberriskmattersaffectingtheCompany. The day-to-day identification and management of risk is the responsibility of our management. As market conditions, industry practices, regulatory requirements and the demands of our business evolve, management and the board of directorsintendstorespondwithappropriateadaptationstoriskmanagementandoversight. MeetingsofourBoardofDirectors Our board of directors and its committees meet periodically during the year, hold special meetings as needed and act bywrittenconsentfromtimetotimeasdeemedappropriate.During2017,ourboardofdirectorsmetsixtimes. 12 | TaylorMorrisonHomeCorporationNoticeof2018AnnualMeetingofStockholdersandProxyStatement