2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 274 SPX CORPORATION Total of 02 pages in section EXECUTIVE COMPENSATION Compensation Discussion and Analysis INTRODUCTION ThisCompensationDiscussionandAnalysis(“CD&A”)providesinformationaboutourexecutivecompensationprogramand thefactorsconsideredinmakingcompensationdecisionsforournamedexecutiveofficers(“NEOs”). OurNEOsfor2017arelistedinthetablebelow: Named Executive Officer Title EugeneJ.Lowe,III PresidentandChiefExecutiveOfficer ScottW.Sproule VicePresident,ChiefFinancialOfficerandTreasurer J.RandallData President,SouthAfricaandGlobalOperations JohnW.Nurkin VicePresident,GeneralCounselandSecretary JohnW.Swann,III President,Weil-McLain,MarleyEngineeredProductsandRadiodetection EXECUTIVE SUMMARY ThepasttwoandahalfyearshavebeentransformativeforSPX.In2015,wecompletedthespin-offoftheFlowbusiness(the “Spin-Off”)intoanindependent,publicly-ownedcompanycalledSPXFLOW,Inc.(“FLOW”).TheSpin-Offbecameeffective onSeptember26,2015,atwhichtimeourexecutiveofficersanddirectorsassumedtheirnewroles.Asaresult,webelieve thatafocusonoperationsasthe“new”SPX,isparticularlyrelevantforevaluatingourbusinessperformanceandexecutive compensation. Whenassessingourpay-for-performanceoutcomes,itisnecessarytoseparatethepre-Spin-Offresultsfrompost-Spin-Off results.TheCompany’sbusinessmodel,strategy,managedassets,executiveofficerteam,andmembershipofthe CompensationCommittee(the“Committee”)ofourBoardweremateriallydifferentcomparedwithperiodspriortothe Spin-Off. Summary of Key Business Accomplishments Overthepastyear,ouroverallsolidexecutionhasplacedusinourstrongestfinancialconditionsincetheSpin-Off.We achievedseveralkeymilestonesonourvaluecreationroadmap,positioningourCompanyforfurthersuccessand investmentsinorganicandinorganicgrowth,whichincludedthefollowingaccomplishments: • Ourfull-yearresultswereattheupperendofour2017guidancerange,includingCoreoperatingincome*growthof approximately24%; † • OurCorefreecashflow*exceededourexpectationsandtargets,achieving118% † conversionofadjustednetincomefrom continuingoperations;* • WeincreasedsegmentincomeinourDetectionandMeasurementandEngineeredSolutions(Core)*segmentsby approximately40%each; • WedeliveredsignificantprogressonourstrategytorepositionourProcessCoolingbusiness,withintheEngineeredSolutions segment,towardshighermargincomponentsandaftermarketsales;andwhilethisstrategycamewithanexpectedlower revenueprofile,marginresultsexceededexpectationsdrivinga230basispointincreasein2017over2016; • WecontinuedtomanageourobligationsontheprojectsinSouthAfrica,ouranticipatedtimelineforsubstantialcompletion istheendofnextyear(2019),andwereducedourestimateoffuturecashusageassociatedwiththeSouthAfrican projects;and • Weappreciablyincreasedearningspershare(“EPS”): 2016 2017 GAAPEPS $0.30 $1.91 AdjustedEPS* $1.47 $1.78 18 2018PROXYSTATEMENT STARBUCKS CORPORATION Executive Compensation CompensationDiscussionandAnalysis ThisCompensationDiscussionandAnalysisprovidesinformationonourexecutivecompensationprogramandtheamountsshownintheexecutive compensationtablesthatfollow.Inthisproxystatement,theterm“NEOs”means“NamedExecutiveOfficers.”Thesesevenexecutiveofficersare namedinthecompensationtablesofthisproxystatement. “ CompensationCommittee” or “Committee” referstotheCompensationandManagementDevelopmentCommitteeoftheboardofdirectors. Werefertoallofouremployeesas “partners,” duetothesignificantrolethattheyallplayinthesuccessoftheCompanyandbecauseall employeesareeligibleforequitybasedawards. NamedExecutiveOfficers(NEOs) • HowardSchultz ,executivechairman • KevinJohnson ,presidentandceo • ScottMaw ,evpandcfo • CliffordBurrows ,grouppresidentSirenRetail • JohnCulver ,grouppresidentInternationalandChannels (formerlygrouppresidentStarbucksGlobalRetail) • PaulMutty ,svpandinterimgeneralcounsel • LucyLeeHelm ,evpandchiefpartnerofficer(formerlyevpand generalcounsel) ExecutiveSummary FinancialHighlights TheCompanydeliveredstrongresultsinits52-weekfiscalyear2017,increasingglobalcomparablestoresalesby3%drivenbya3%increasein ticket.Consolidatednetrevenuegrew7%whenexcluding$412.4millionfortheextraweekinfiscal2016;consolidatedNon-GAAP*operating incomegrewby7.8%to$4.4billionyearoveryear;andNon-GAAP*earningspershare(“EPS”)grew11.4%to$2.06pershare.Starbucks3-year cumulativetotalshareholderreturn(“TSR”)was49%.Duringtheyear,Starbucksalsomadesignificantinvestmentstosupportthegrowthofour businessandadded2,200netnewstores,toendthe2017fiscalyearwithmorethan27,000storesglobally. Starbucksreportedanotheryearofstrongperformance,witheachofourbusinessunits aroundtheworldcontributingtorecordresults.Starbucksdeliveredsolidtopand bottomlinegrowth,despiteadifficultoperatingenvironmentduringtheyear. +7% ** +7.8% * 49% Revenues Non-GAAP Operating Income 3-Yr Cumulative TSR * AnnexAincludesareconciliationofNon-GAAPoperatingincomeandNon-GAAPEPStooperatingincomeanddilutednetearningspershare,respectively,the mostdirectlycomparablemeasuresreportedunderaccountingprinciplesgenerallyacceptedintheUnitedStates. ** Excludingtheextraweekinfiscal2016. FinancialResultsUnderIncentivePlans Thechartsbelowcomparefiscal2017,2016and2015results (1) underfinancialperformancemetricsthatareusedindetermining(i)payoutsunder ourEMBP,and(ii)thenumberofPRSUsearned.NotethatthesefinancialmeasuresmaydifferfromthecomparableGAAPandNon-GAAP measuresreportedaboveandinourfinancialstatements,asthemeasuresbelowareadjustedtoexcludetheimpactofcertainnon-routineandother items,asdescribedinthefootnotestothechartsbelowinaccordancewiththetermsofourEMBPandour2005Long-TermEquityIncentivePlan. Dollaramountsbelow,exceptpersharedata,areinmillions. ConsolidatedAdjustedNetRevenue (2) $18,321 2015 2016 2017 $20,878 $22,611 2015 2016 2017 $3,516 $4,045 $4,394 ConsolidatedAdjustedOperating Income (3) usingtheInternetat www.proxyvote.com callingtoll-freefromtheUnitedStates,U.S.territoriesandCanada-1-800-690-6903mailingyoursignedproxyorvotingscanningthisQRcodetovote 24 / 2018PROXYSTATEMENT SVB FINANCIAL GROUP Compensation Discussion and Analysis This Compensation Discussion and Analysis (“ CD&A ”) discusses our 2017 executive compensation program, primarily as it relatestoour“namedexecutiveofficers”(“ NEOs ”). CD&A E XECUTIVE S UMMARY M ESSAGEFROMTHE C OMPENSATION C OMMITTEE We, as the Compensation Committee of the Board of Directors (“ Compensation Committee ”), have the delegated responsibility of primary oversight over the design and execution of the Company’s executive compensation program. We did not make any material changes tothe design ofourexecutive compensation program for2017,and remained consistentwithourcorecompensationstrategyandphilosophy,takingintoaccountthefollowingkeyconsiderationsin determiningexecutivepay: • Performance -Settingchallengingperformancemetricsalignedwithourstrategicbusinessandgrowthobjectives, aswellasstockholderinterests; • Risk -Establishingacompensationframeworkthatincentsconsistentandsustainablelong-termperformance,but withoutencouragingunduerisk-taking;and • Talent -Settingappropriatecompensationtoattractandretaintheexecutivetalentneededforourbusiness. We also considered the Company’s pace of growth and increasing business and regulatory complexities. Overall, we were pleased to see another year of strong performance delivered by the Company. Our pay decisions reflected that performance, as well as our continuing emphasis on our core banking business, operational infrastructure, risk management and financial performance. In 2018, we remain committed to setting the appropriate compensation frameworktodriveourlong-term,sustainableglobalgrowthandotherstrategicobjectives. KateMitchell, Chair JeffMaggioncalda JohnRobinson GarenStaglin E XECUTIVE C OMPENSATION E LEMENTS A T -A-G LANCE C ASH C OMPENSATION E QUITY C OMPENSATION BaseSalary IncentiveCompensation Plan(ICP) Performance-BasedRestricted StockUnits(PRSUs) StockOptions RestrictedStockUnits (RSUs) ----------------- Short-TermEmphasis ----------------- -------------------------------------------Long-TermEmphasis------------------------------------------- Ongoing 1-Year PerformancePeriod 3-Year PerformancePeriod 4-Year VestingPeriod Fixed Performance-Based Fixed ^ -----------------------------------------------------------------------------ApplicablePerformanceMetrics----------------------------------------------------------------------------- Compensation Committee judgment ReturnonEquity Formulaicpoolfunding,plus CompensationCommittee judgment TotalStockholderReturn ReturnonEquity SelectedFeeIncome Formulaicallydetermined,plus CompensationCommittee judgment StockPriceAppreciation ^ Anyincrementalvaluerealizedabovethegrantvalueoftime-basedRSUs,aswellasearnedPRSUs,isbasedonstockpriceappreciation . 2017NamedExecutiveOfficers G REG B ECKER ,PresidentandChiefExecutiveOfficer J OHN C HINA ,HeadofTechnologyBanking D AN B ECK ,ChiefFinancialOfficer M ICHAEL D REYER ,ChiefOperationsOfficer M ICHAEL D ESCHENEAUX ,President,SiliconValleyBank(formerCFO) L AURA I ZURIETA ,ChiefRiskOfficer 29 EXECUTIVEOFFICERS&COMPENSATION CompensationDiscussion&Analysis