2018 Guide to Effective Proxies

2.16 Risk oversight | 229 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES TECH DATA CORPORATION BOARD LEADERSHIP STRUCTURE AND ROLE IN RISK OVERSIGHT The Company’s Chairman of the Board (“Chairman”) presides at all meetings of the Board and of the shareholders. The Chairman also manages the relationships between the Board and the Company’s management and shareholders. Currently, the Company’s Chairman is Robert M. Dutkowsky, the Company’s CEO. It is anticipated that Richard T. Hume will become a director in connection with the announced transition of Mr. Hume to the role of CEO following the Annual Meeting and that Mr. Dutkowsky will remain on the Board as Executive Chairman. As Executive Chairman, Mr. Dutkowsky’s duties will include those of Chairman plus the following additional duties as an employee: (i) provide advice and counsel to the CEO on a regular basis; (ii) at the request and direction of the CEO, engage in critical vendor and customer relationships and community involvement; and (iii) at the request and direction of the CEO or the Board, be involved in specified special projects. In addition to a Chairman, the Board has a lead independent director designated by the Governance and Nominating Committee, which is comprised solely of independent directors. Charles E. Adair was the lead independent director for fiscal 2018. The lead independent director chairs the meetings of the independent directors and is responsible for consolidating and expressing the views of the independent directors to the Board. The lead director’s other functions include: (i) serves as a liaison between the Chairman and the independent directors, (ii) discusses and agrees upon the nature and type of information to be sent to the Board, (iii) approves meeting schedules to assure that there is sufficient time for discussion of all agenda items, (iv) has the authority to call meetings of the independent directors, and (v) if requested by major shareholders, ensures that he or she is available for consultation and direct communication. The Board’s leadership structure allows the Board to benefit from the leadership and direct participation of the Company’s current CEO and, after the planned transition, its long-standing former CEO as well. At the same time, the leadership structure provides for a strong lead independent director with defined duties and responsibilities to facilitate the ability of the independent directors to provide independent and cohesive oversight and guidance. The Board as a whole is responsible for Company risk oversight. Some of this oversight is exercised through the Board’s Audit, Compensation, Governance and Nominating, and CyberTech Committees, which report on their deliberations to the Board. The Board and its Committees solicit and receive reports from management on current and potential risks that are identified by either management or the Board. Areas of focus include competitive, economic, operational, financial, accounting, legal, regulatory, and compliance risks. The areas of risk overseen by the Board and its committees are summarized below. Each Committee meets with key management personnel and outside advisors. Board/Committee PrimaryAreasofRiskOversight Board Strategic, financial and execution risks and exposures, major litigation and regulatory and compliance exposures, risks and exposures associated with significant acquisitions, CEO succession planning, and other matters that may present material risks to the Company. Audit Committee Risks and exposures associated with financial matters, particularly financial reporting, tax, accounting, and disclosure and internal controls. Also risks and exposures associated with ethics and compliance, and the information technology environment. 14 TechDataCorporation TEGNA, INC. PROPOSAL1—ELECTIONOFDIRECTORS YourBoardofDirectors letterofresignationtotheBoard’sNominatingandPublicResponsibilityCommittee,whichwouldrecommendtotheBoardtheactionto betakenwithrespecttotheletterofresignation.TheBoardisrequiredtoactontheCommittee’srecommendationandpubliclydisclose itsdecisionanditsrationalewithin90daysaftertheelectionresultsarecertified. TheCompany’sBoardofDirectorsunanimouslyrecommendsthatyouvote“FOR”theelectionofeachofthenomineesto serveasdirectorsoftheCompanyuntiltheCompany’s2019AnnualMeetinganduntiltheirsuccessorsareelectedand qualified. BOARD LEADERSHIP STRUCTURE OurBoardhasdeterminedthathavinganindependentdirectorserveastheChairmanoftheBoardiscurrentlythebestleadership structurefortheCompany.SeparatingthepositionsofChairmanandCEOallowstheCEOtofocusonexecutingtheCompany’s strategicplanandmanagingtheCompany’soperationsandperformanceandpermitsimprovedcommunicationsbetweentheBoard, theCEOandotherseniorleadersoftheCompany.OurBoardregularlyreviewstheCompany’sBoardleadershipstructure,howthe structureisfunctioningandwhetherthestructurecontinuestobeinthebestinterestofourshareholders. ThedutiesoftheChairmanoftheBoardinclude: • presidingoverallmeetingsoftheBoardandallexecutivesessionsofnon-managementdirectors; • servingasliaisononBoard-wideissuesbetweentheCEOandthenon-managementdirectors,althoughCompanypolicyalso providesthatalldirectorsshallhavedirectandcompleteaccesstotheCEOatanytimeastheydeemnecessaryorappropriate, andviceversa; • inconsultationwiththeCEO,reviewingandapprovingBoardmeetingagendasandmaterials; • inconsultationwiththeCEO,reviewingandapprovingmeetingschedulestoassurethereissufficienttimefordiscussionofall agendaitems; • callingmeetingsofthenon-managementdirectors,ifdesired;and • beingavailablewhenappropriateforconsultationanddirectcommunicationifrequestedbyshareholders. THE BOARD’S ROLE IN RISK OVERSIGHT Evaluatinghowseniorleadershipidentifies,assesses,managesandmonitorsthevariousrisksconfrontingtheCompanyisoneofthe mostimportantareasoftheBoard’soversight.Incarryingoutthiscriticalresponsibility,theBoardoverseestheCompany’srisk managementfunctionthroughregulardiscussionswithseniorleadership,consideringtheCompany’srisksinthecontextofthe Company’sstrategicplanandoperations.Indoingso,theBoardactivelyandregularlyreviews,guidesandoverseesthe implementationoftheCompany’slong-termstrategicplan.Inaddition,theCompanyhasanenterpriseriskmanagementprogramto enhancetheBoard’sandmanagement’sabilitytoidentify,assess,manageandrespondtostrategic,market,operationaland compliancerisksfacingtheCompany. WhiletheBoardhasprimaryresponsibilityforoverseeingtheCompany’sriskmanagementfunction,eachcommitteeoftheBoardalso considersriskwithinitsareaofresponsibility.Forexample,theExecutiveCompensationCommitteereviewsrisksrelatingto compensationmatters.TheBoardisapprisedbythecommitteechairsofsignificantrisksandmanagement’sresponsetothoserisks viaperiodicreports.WhiletheBoardanditscommitteesoverseetheCompany’sriskmanagementfunction,managementisresponsible forimplementingday-to-dayriskmanagementprocessesandreportingtotheBoardanditscommitteesonsuchmatters. TheAuditCommitteeisprimarilyresponsibleforreviewingrisksrelatingtoaccountingandfinancialcontrols.Inaddition,theBoardhas designatedtheAuditCommitteewithprimaryresponsibilityforoverseeingtheCompany’senterpriseriskmanagementprogram.In accordancewiththisresponsibility,theAuditCommitteemonitorstheCompany’ssignificantbusinessrisks,includingfinancial, operational,privacy,cybersecurity,businesscontinuity,legalandregulatory,andreputationalexposures,andreviewsthesteps managementhastakentomonitorandcontroltheseexposures.Withrespecttocybersecurity,theBoardreceivesregularreportsfrom Companymanagement,includingupdatesontheinternalandexternalcybersecuritythreatlandscape,incidentresponse,assessment andtrainingactivities,andrelevantlegislative,regulatory,andtechnicaldevelopments. Withrespecttorisksrelatingtocompensationmatters,theExecutiveCompensationCommitteewiththeassistanceofitsindependent compensationconsultanthasreviewedtheCompany’sexecutivecompensationprogramandhasconcludedthattheprogramdoesnot 2 2018PROXYSTATEMENT Total of 02 pages in section TENET HEALTHCARE CORPORATION CORPORATE GOVERNANCE AND BOARD PRACTICES Role of Board and its Committees in Risk Oversight Theprimaryresponsibilityfortheidentification,assessmentandmanagementofthevariousrisksthatwefacebelongswithmanagement.The Board’soversightoftheserisksoccursasanintegralandcontinuouspartoftheBoard’soversightofourbusiness.TheBoardreceives regularreportsfromtheheadsofourprincipalbusinessandcorporatefunctionsthatincludediscussionsoftherisksinvolvedintheir respectiveareasofresponsibility.TheBoardisroutinelyinformedofdevelopmentsthatcouldaffectourriskprofileorotheraspectsofour business.Amongotherthings,theBoardhasrequestedthattheCompany’smanagementanditsinternalandexternallegalcounseladviseit promptlyofanymaterialdevelopmentsrelatingtolitigation,regulatoryproceedingsandinvestigationsandcomplianceissues.TheBoard considerstheoversightofregulatoryandlitigationrisktobeoneofitshighestpriorities.Inaddition,theBoardhasidentifiedtheoversightof cybersecurityriskstobeoneitsprioritiesandreceivesregularreportsfromtheCompany’smanagementonthesecurityoftheCompany’s informationtechnologysystems. TheBoardiskeptinformedofitscommittees’riskoversightandotheractivitiesprimarilythroughreportsofthecommitteeChairstothefull Board.ThesereportsarepresentedateveryregularBoardmeeting.Asrisk-relatedissuessometimesoverlap,committeesholdjointmeetings whereappropriatewhileaddressingcertainissuesatthefullBoardlevel.Inaddition,aspartofitsannualself-evaluationprocess,theBoard discussesandevaluatesitsongoingroleinenterpriseriskoversight. Role of Audit Committee in Risk Oversight OurAuditCommitteeisprimarilyresponsibleforoverseeingriskmanagementprocessesrelatingtoouraccountingpractices,financial reporting,corporatefinanceandgeneralbusinessoperations.Amongotherresponsibilities,theAuditCommittee: • Receivesquarterlyreportsfrommanagementonbusinessandoperationalrisks,internalauditreportsrelatingtotheintegrityofour internalfinancialreportingcontrolsandprocedures,potentiallosscontingenciesresultingfrompendingorthreatenedlitigationor regulatoryproceedings,andinvestigationsandreportsmadetotheCompanyfromourEthicsActionLineoranyothersources relatingtoallegationsoffinancialfraudorotherinfractions,asdescribedbelow. • MeetsregularlywithourChiefExecutiveOfficer,ChiefFinancialOfficer,Controller,GeneralCounselandChiefComplianceOfficer,as wellasourexternalandinternalauditors,todiscusspotentialrisksandothercontingenciesrelatingtoourbusiness. • Meetsonaquarterlybasistoreviewthesetopicswithselectedchiefexecutiveofficersand/orotherseniorofficersofourmajor operatingunitsandregions. • ReviewsmaterialriskissuesinconnectionwithitsreviewofourquarterlyandannualfilingswiththeSEC. • ReviewstheCompany’scybersecurityprogramatleastannuallyandreceivesfrequentupdatesoncybersecuritymatters. • ReportsanddiscussestheoutcomeofitsmeetingstothefullBoard,includinganyothermaterialrisksidentifiedbytheAudit CommitteeinthecourseofitsdeliberationsthatrequirediscussionoractionbythefullBoard. Role of Quality, Compliance & Ethics Committee in Risk Oversight OurQCECommitteeisprimarilyresponsibleforoverseeingourassessmentandmanagementofregulatoryandcomplianceriskandalso reportsregularlytothefullBoard.Inparticular,theQCECommittee: • Overseesourinformation,proceduresandreportingsystemstoprovidereasonableassurancethat:(1)ouroperationscomplywith applicablelawsandregulations,particularlythoserelatedtohealthcareproviders;(2)we,includingourdirectorsandemployees,act inaccordancewithappropriateethicalstandards;and(3)oursubsidiaries’hospitalsandotherfacilitiesdeliverqualitymedicalcareto theirpatients. • OverseesourComplianceProgram,whichisgovernedbyourQuality,Compliance&EthicsProgramCharter.OurCompliance Programisintendedtofostercompliancewithfederalandstatelawsandregulationsapplicabletohealthcareproviders,andreceives periodicreportsfromourChiefComplianceOfficer(whoreportsdirectlytotheQCECommittee),ourEthicsandCompliance Department,andourinternalandexternallegal,regulatoryandotherofficersandadvisors. • OverseestheCompany’scompliancewithitsnon-prosecutionagreement,includingtheCompany’songoingworkwiththe independentco-monitorsappointedpursuanttothetermsoftheagreement. • Beginningin2017,meetsonaquarterlybasistoreviewthesetopicswithselectedchiefexecutiveofficersofourmajoroperating unitsandregions. TENETHEALTHCARE Š 2018PROXYSTATEMENT 17 TERADATA Additional Information Concerning the Board of Directors Board Oversight of Risk ManagementisresponsiblefortheCompany’sday-to-dayriskmanagementactivities,andourboard’sroleisto engageininformedriskoversight.Infulfillingthisoversightrole,ourBoardofDirectorsfocusesonunderstandingthe natureofourenterpriserisks,includingouroperationsandstrategicdirection,aswellastheadequacyofourrisk managementprocessandoverallriskmanagementsystem.Theboard’scommitteestructureandthecollective knowledgeandexperienceofitsmemberspromotesabroadperspective,opendialogueandusefulinsights regardingrisk,therebyincreasingtheeffectivenessoftheboard’sroleinriskoversight.Thereareanumberofways ourboardperformsthisfunction,includingthefollowing: • atitsregularlyscheduledmeetings,theboardreceivesmanagementupdatesonourbusinessoperations, financialresults,andstrategyanddiscussesrisksrelatedtothebusiness; • theAuditCommitteeassiststheboardinitsoversightofriskmanagementbyoverseeingtheCompany’s enterpriseriskmanagementprocessanddiscussingwithmanagement–particularly,theChiefFinancialOfficer, VicePresident,InformationSystems,VicePresident,EnterpriseRiskandAssuranceServices,andChiefEthics, Compliance&PrivacyOfficer–theCompany’sguidelinesandpoliciesregardingfinancialandenterpriserisk managementandriskappetite,including:(i)majorriskexposuressuchas,forexample,financial,cybersecurity, dataprivacy,businesscontinuity,andlegalandregulatoryrisks,andthestepsmanagementhastakentomonitor andcontrolsuchexposures;and(ii)internalauditandethicsandcomplianceupdates,aswellaswhistleblower updates,ifany;and • throughmanagementupdatesandcommitteereports,theboardmonitorsourriskmanagementactivities, includingtheenterpriseriskmanagementprocess,risksrelatingtoourcompensationprograms,andfinancialand operationalrisksbeingmanagedbytheCompany. Compensation Risk Assessment BasedonananalysisconductedbymanagementandreviewedbytheBoardofDirectors,wedonotbelievethatour compensationprogramsforemployeesarereasonablylikelytohaveamaterialadverseeffectontheCompany. Director Education TheCompanyencouragesdirectorstoparticipateincontinuingeducationprogramsfocusedontheCompany’s businessandindustry,committeerolesandresponsibilitiesandlegalandethicalresponsibilitiesofdirectors,andthe Companyreimbursesdirectorsfortheirexpensesassociatedwiththisparticipation.Wealsoencourageourdirectors toattendTeradataeventssuchasourannualusers’conference(Partners)andourinvestordayevents.Continuing directoreducationisalsoprovidedduringboardmeetingsandotherboarddiscussionsaspartoftheformal meetingsandmayincludeinternallydevelopedmaterialsandpresentationsaswellasprogramspresentedbythird parties. Executive Management Succession Planning InconsultationwithitsCompensationandHumanResourceCommitteeandCEO,theBoardofDirectorsregularly reviewsshort-andlong-termsuccessionplansforallseniormanagementpositionsand,inparticular,ourCEO.The criteriausedwhenassessingthequalificationsofpotentialCEOsuccessorsinclude,amongothers,strategicvision andleadership,operationalexcellenceandexecution,financialmanagement,executiveofficerleadershipskills,ability tomotivateemployeesparticularlyinadynamicandchangingworkenvironment,aswellasanabilitytodevelopan effectiveworkingrelationshipwiththeboardandengendertheconfidenceofourstockholders.OurcurrentCEO, managementteamandBoardofDirectorsarecommittedtooverseeingarobustsuccessionplanfortheCompany. Tothatend,weareidentifyinganddevelopingateamofcapable,willingandenthusiasticinternalCEOandsenior managementcandidatesthroughincreasedresponsibilities,additionalopportunitiestoengagewithinvestorsandour board,outsidedevelopmenteducation,andothersimilarleadershipenhancementactivities. Code of Ethics WehaveaCodeofConductthatsetsthestandardforethicsandcomplianceforallofouremployees,includingour officers,directors,chiefaccountingofficer,andcorporatecontroller.OurCodeofConductisavailableonour corporategovernancewebsiteathttp://www.teradata.com/code-of-conduct. 14 2018PROXYSTATEMENT