2018 Guide to Effective Proxies

2.17.1 CD&A table of contents | 249 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES LINCOLN NATIONAL CORPORATION 2018 PROXY STATEMENT 30 COMPENSATION DISCUSSION & ANALYSIS This Compensation Discussion & Analysis (“CD& A”) contains information about: • our fundamental pay-for-performance compensation philosophy • the structure of our compensation programs and the reasoning behind this structure • how compensation decisions are made and how our compensation programs are administered • the compensation we paid under our performance-based incentive programs for performance periods ending in 2017, and how it related to our short and long-term performance results The CD&A also details the compensation of our NEOs (also referred to as “executives” or “executive officers”) included in the compensation tables beginning on page 58.These NEOs are: DENNIS R. GLASS – President and CEO RANDAL J. FREITAG – Executive Vice President, CFO and Head of Individual Life RAJ B. CHAKRABORTY – Executive Vice President and Chief Digital Officer ELLEN G. COOPER – Executive Vice President and Chief Investment Officer WILFORD H. FULLER – President, Annuity Solutions, LFD and LFN We encourage you to read the CD&A in conjunction with the compensation tables on pages 58 to 75. To ensure the continued effectiveness of our pay-for-performance culture, the Compensation Committee each year reviews and approves the elements, measures, targets and payouts of our executive compensation programs. In setting the programs’ performance measures and goals, the Compensation Committee chooses metrics that drive our overall corporate strategy and are linked to our long-term financial plan. Our executives’ compensation is tied closely to the achievement of short- and long-term goals that (a) support our long-term business strategy and (b) measure the creation of sustainable long-term shareholder value. At our 2017 Annual Meeting, shareholders expressed strong support for our executive compensation programs, with 91% of votes cast in favor of the advisory resolution on executive compensation. COMPENSATION DISCUSSION & ANALYSIS LINCOLN NATIONAL CORPORATION