2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 338 COMPENSATION DISCUSSION AND ANALYSIS Target Compensation Mix Other than the CEO, all of our NEOs are in salary grades 25 and 26. Our CEO is the only employee in salary grade 28, and no employee is in salary grade 27. The target compensation mix for 2017 and for 2018 is shown in the following chart: Grade 26 Grade 28 11% 22% 67% 20% 25% 55% Grade 25 27% 27% 46% Base Salary Annual Incentive Compensation Equity Awards In February 2018, the Committee granted PSUs for the 2018-2020 performance cycle and RSUs. It also established performance targets for the 2018 annual incentive compensation awards that are payable in February 2019. Award targets as a percentage of base salary for our CEO and our named executive officers are as follows: 2018 Cash Incentive Target as % of Base Salary (1) 2018-20 PSUs Target as % of Base Salary (60% of total Equity Award) (2) 2018 RSUs Target as % of Base Salary (40% of total Equity Award) (3) André Calantzopoulos (CEO) 200% 360% 240% Marc S. Firestone 125% 165% 110% Martin G. King 100% 105% 70% Jacek Olczak 125% 165% 110% Miroslaw Zielinski 125% 165% 110% (1) Possible award range is between 0% and 225% of target. (2) Possible award grant range is between 0% and 150% of target; between 0% and 200% of PSUs granted may vest, depending on performance versus criteria established at the time of grant. (3) Possible award grant range is between 0% and 150% of target. PMI 2018 Proxy Statement • 31 PHILIP MORRIS INTERNATIONAL, INC.