2018 Guide to Effective Proxies

2.2 Board/CEO Letter | 37 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES INTEL CORPORATION INVESCO LTD J. C. PENNEY COMPANY, INC. JACOBS ENGINEERING GROUP, INC. LETTERFROMYOURCHAIRMAN Intelhasbeenundergoingasignificantbusinesstransformation.AsI reportedinmylettersinthepasttwoyears,weareevolvingfroma PC-centrictoadata-centriccompany,deliveringproductsthatplay criticalrolesinprocessing,storing,analyzing,andsharingdata.These productsenablenewexperiencesandcreatenewvalue.Intelisbuilding thefoundationfortechnology’sdata-drivenfuture. Weareproudtobeaworldleaderinthedesignandmanufacturingof essentialtechnologiesthatpowerthecloudandanincreasinglysmart, connectedworld.Ourtechnologyenablesmorepeopletoharnessthe powerofdatatohelpaddresssociety’smostcomplexissues—from climatechangetoenergyefficiency.Corporategovernanceand corporateresponsibilityareintegraltothecompany’sleadershipand fundamentaltoitssuccess.WiththeBoard’soversight,wehave embeddedcorporateresponsibilityandsustainabilityintoour corporatestrategy,compensation,andlong-termgoals.Intel’sBoardofDirectorsprovidesindependentguidanceoncorporate strategyandinitiativestobuildasolidfoundationforsustainablestockholdervalue.WesetambitiousgoalsforIntelandmake strategicinvestmentstoadvanceprogressintheareasofenvironmentalsustainability,supplychainresponsibility,diversityand inclusion,andsocialimpact. CORPORATEGOVERNANCEPRACTICES OurBoardstrivestobealeaderincorporategovernance,continuingtoraisethebareachyearinconsultationwithour stockholders.In2009,severalyearsbeforeitwasrequiredbylaw,weprovidedourstockholdersanadvisoryvoteonour executivecompensationprograms.Andinearly2016,weadopted“proxyaccess,”providingstockholderswhohaveheldatleast 3%ofourstockforatleastthreeyearstheabilitytoincludedirectornomineesinourproxystatement.Wealsohaveworkedto makesurethatthedirectorsservingontheBoardcollectivelyhavetheappropriateskillsandbackgroundstobestrongstewards inadynamicindustry.Tothatend,sincethebeginningof2016,Intelhasaddedfiveexceptionalnewindependentdirectorswho bringfreshperspectivesandarichmixanddepthofexperienceinareassuchasbusinessstrategy,technology,innovation, globalmarkets,compliance,andoversight.WerecognizethatourcorporatevaluesmustbereflectedinourBoard,andweare committedtoactivelyseekingadditionalwomenandminoritydirectorcandidates. ANACTIVEANDENGAGEDBOARD OurBoardengagesinactivediscussionsandoversightofIntel’sstrategytocapturebusinessopportunitiesandleadwith innovation,whilealsobalancingpossibleriskswithreturnsforstockholders.ManyoftheBoard’sstrategicconversationsin2017 focusedonhowbesttoallocateresourcesforlong-termstockholdervalue.Wearebuildingonthecompany’scorestrengths andincreasinginvestmentsingrowingbusinessesandemergingtechnologies.WhileourPC-centricbusinessesexceededour expectationandcontinuetobeasourceofprofit,cashflow,scale,andintellectualproperty,Intel’sgrowthin2017wasprimarily drivenbyourdata-centricbusinesses.Webelievethestrategicinvestmentswehavemadeinnewandgrowingbusinessessuch ascloudcomputing,memory,andautonomousdrivingarecreatingvalueandwillbecomeanincreasinglylargerportionofour business. STOCKHOLDERDIALOGUE OurrelationshipwithourstockholdersisanimportantpartofourBoard’scorporategovernancecommitment.Wehavealong traditionofdialogue,transparency,andresponsivenesstostockholderperspectives.Ourintegratedoutreachteammeetswitha broadbaseofinvestorsthroughouttheyeartodiscusscorporategovernance,executivecompensation,corporateresponsibility practices,andothermattersofimportance.WereporttotheBoardoninvestorfeedbackandemerginggovernanceissues throughouttheyear,allowingtheBoardtobetterunderstandourstockholders’prioritiesandperspectives.Thisyear-round engagementprocessprovidesmanagementandtheBoardwithusefulinputconcerningourcorporatestrategyandour compensationandcorporategovernancepractices,andenablesustoconsiderdevelopmentsproactivelyandtoactresponsibly. Tothatend,yourBoard’seffortshaveincludedoverseeingthesmoothtransitionsinourseniormanagement,buildinguponour leadershipincorporategovernanceandcorporateresponsibility,andcontinuingourcommitmenttopay-for-performance. Total of 02 pages in section April9, 2018 Dear Stockholders: On behalfof your Boardof Directors, I want to take this opportunity to inviteyou to attend our 2018 AnnualMeeting of Stockholders.Themeeting willbe heldon Friday, May 25, 2018, at 10:00 A.M., localtime, at the JCPenneyHome Office, locatedat 6501LegacyDrive, Plano,Texas75024.We will be askingyou to vote on andto support severalproposalsfor our Companyandit is important that your shares be represented. We urge you to vote your shares viathe toll-free telephonenumber, over the Internet, or by mail, as providedinthe enclosedmaterials. Our strategic framework continuesto be focused on private brands, omnichannelandincreasing revenueper customer. We continueto believethat these three pillarsprovidethe foundationfor future growth at JCPenney.Underthat framework, wehaveseveralkey initiativesthat giveus confidencein our abilityto achieveour 2018financialobjectives.First is beauty, whichis oneof the key components of our strategy, particularlywithour best-in-class partnership withSephora.We currently operate Sephorashopsinnearly75% of our stores andexpect to openapproximately30 locationsin2018, bringingour total to approximately670Sephorashops. Another key component of our beauty strategy is our salonbusiness.Followinga great year of positivesalesgrowth inour salons,weare continuingour rebrandingefforts to Salonby InStyle. In 2018, weplanto rebrand andremodel another 100salonsto Salonby InStyle. Finejewelryis alsoa key component of our beauty strategy. Our jewelrybusinessis bringingina newerandyounger customer andwebelieveJCPenneyis the onlyretailer that can offer our customers a total beauty solutioncombiningSephora,salonandfine jewelryunder the same roof. Thisuniquebeauty experiencecannot be replicatedonlineandmagnifiesthe importance andrelevanceof our physical stores. Our home refresh initiativesalsocontinueto providestrong results. We believewehavean unprecedentedgrowth opportunity inthis area becauseover 70% of our customers are home owners andhavedevelopeda merchandisingassortment includingappliances,mattresses, furniture and simplehome installsthat willhelpus to compete more effectively inthis category. We alsocontinueto enhanceandstrategicallyadjustour apparelofferings to better alignwith customer preferences. A strategic priority in2018willbe our continuedfocus on improvingour women’sapparelbusiness,particularlyactive wear, dresses, contemporary, andcasualsportswear. Thesecategoriesoffer JCPenneythe greatest opportunity for growth inwomen’s.Across allapparel categories, specialsizesremain a key focus as weleverageour bigandtallandplussizebusinesses to continueto deliveran improved assortment. We are committed to becominga world-classomnichannelretailer. Thetransition from a company focused primarily on the brick andmortar businessto a true omnichannelretailer is evidencedby the increaseinour onlineSKUcount by 50% in2017, withplansto addadditionalSKUsin2018. It is also evidencedby the transformation of our mobileappfrom a 1.5 star rated appwithminimalreviewsto an over 4.5 star rated appwithover 150,000reviews. Approximately80% of our stores’ existinginventory is eligiblefor free same-day pickupand100% of our brick andmortar store network is nowbeing utilizedto fulfillonlineorders. Total of 02 pages in section Q&A with Chairperson of Our Board How does theBoard approach director recruitment? Shareholders are rightly interested in the composition and effectiveness of the Board. TheBoard remains committed to ensuring that it is composed of a highly capable group of directorswho arewell-equipped to oversee the challenges the companywill encounter and effectively represent the interests of shareholders. Providing ourBoardwith the appropriate balance of expertise, experience, continuity, aswell as new perspectives is an important component to awell- functioning board.Nomination criteria are adjusted as needed to ensure that our Board as awhole continues to reflect the appropriatemix of skills and experience. We encourage you to review the qualifications, skills and experience thatwe have identified as important attributes for directors of our company and how theymatch up to our directors. How does theBoard evaluate its effectiveness? It has always been the aim of theBoard to operate in themost effective and efficientmanner possible. Therefore, each year theBoard,with the assistance of an external advisor specializing in corporate governance, conducts an evaluation of the performance of ourBoard and each of its committees.Directors participate in one- on-one interviewswith the advisor and receive in-person feedback from the advisor based on these confidential and private interviews. The directors then determine if theBoard needs tomodify its activities to further enhance the operations of the Board and its committees. In addition to the interviews of each director, interviews are also conductedwith thosemembers of executivemanagementwhoworkwith and observe the operation of theBoard on a regular basis. Canyou discuss theBoard's role in shareholder engagement? Aswe conduct the activities of theBoard, a key priority is ensuring robust outreach and engagementwith you, the owners of the company.Partnering withmanagement,we receive feedback from shareholders throughout the year on a variety of topics, including environmental, social and governance (“ESG”) topics and executive compensation.We listen and carefully consider your perspectives in our decision-making process andmake enhancements to our governance and executive compensation programs, from time-to-time, based on your input. How does the company's executive compensation program alignwith its shareholders' interest? To support ourmulti-year strategic objectives, theBoard’s compensation committee has structured our compensation programs for our executives, investment professionals and other employees to align individual rewardswith client and shareholder success. Engagementwith shareholders in the fall andwinter of2017 reaffirmed our belief that our compensation programs are sound and appropriately alignedwith the long-term interests of our clients and shareholders. Furthermore, our shareholders positively acknowledged our recent enhancements to our compensation programs thatmore effectively link the programswith the company’s progress against its strategic objectives, annual operating plan and long- term shareholder value creation. How do I communicatewith theBoard? TheBoard is committed to continuing to engagewith shareholders and encourages an open dialogue.Please continue to share your thoughtswith us aswe value your input, investment and support.Communicationswith theBoard can be addressed to theBoard ofDirectors in care of theOffice of theCompanySecretary, Invesco Ltd., 1555PeachtreeStreetNE,Atlanta,Georgia30309 or by e-mail to company.secretary@invesco.com. Where andwhen is the annualmeeting thisyear? You are cordially invited to attend the2018AnnualGeneralMeeting of Shareholders of Invesco Ltd.,whichwill be held on Thursday,May10,2018, at1:00 p.m., eastern time, at Invesco’sGlobalHeadquarters,1555Peachtree StreetN.E.,Atlanta,Georgia30309. Ben Johnson has served asChairperson since2014 and as a non-executive director of our company since2009. PROXY-BRO-1 03-18.indd 3 3/20/18 4:13PM LETTER TO SHAREHOLDERS FROM OUR CHAIRMAN & CEO DearFellowShareholder, TherehasneverbeenamoreexcitingtimetobeatJacobs.TheCompany’sperformanceremainssolid, withafoundationbuiltuponourpeople’sdedication,talent,innovation,commitment tosafetyandourcultureof caring,alongwithawillingnesstocreateabridgetoastronger, biggerandbetter Jacobs. GovernanceandCompensationPractices Asyourelectedfiduciaries,westronglybelievethatcomprehensivecorporategovernanceoversight, combinedwithhighlytalentedpeopleexecutingacompellingstrategy, isfundamentaltobuildinglong-term shareholdervalue.Furthermore, ourBoardembraceshighlevelsofintegrityandcorporategovernance processes,withacontinuousreviewandrefinementofourpractices. BoardStructure –TheBoardiscomprisedof10members whomtogetherbringrichindustryexperienceand diversebackgrounds.Our Boardmembers areelectedonanannualbasisunderamajorityvotingstandard.The averagetenureofourBoardmembers is8years,with4newlyappointeddirectorswithinthelast5years.We plantoaddanadditionalBoardmember inconnectionwithourplannedacquisitionofCH2MHILLCompanies, Ltd.(“CH2M”). Oversight –TheBoardishighlyengagedandmeetswithmanagementonaregularbasistoprovidestrategic guidance,includingthoroughdiligenceonacquisitionanddivestitureopportunities.Aspartofourfocuson oversight,weappointedaleadindependentdirectortoensureindependentleadershipintheboardroom. ExecutiveCompensation –Webelieveinpayfor performanceexecutivecompensationthatincentivizescreating andsustaininglong-termshareholdervalue.Themajorityofthecompensationfor ournamedexecutiveofficersis performance-based.Thiscompensationisdependentontheachievementofacombinationofbothnear-term and long-termfinancialtargets.Wealsoholdshareholderadvisoryvoteson“say-on-pay”onanannualbasis. ValueCreationStrategy Webeganfiscal2017withan“investorday”outliningourthree-year strategy andshowcasingourbusiness andculturaltransformation initiatives.Our strategy isbasedonthreekeypriorities: BuildaHighPerformanceCulture –Reinforceacultureofaccountability,inspirationalleadershipandinnovation thatwilldrivelong-termoutperformance. Transform theCore –Fundamentallychangethewayweoperatetoimproveprojectdelivery,saleseffectiveness andbusinessexcellence. GrowProfitably –Executeabalancedstrategy focusedonorganicgrowth,acquisitionsandactivemanagement ofportfolioofbusinessestodriveprofitablegrowthinthemost attractive sectorsandgeographies. Throughouttheorganization,ourcultureisthefoundationonwhichwebuildourreputationofexcellencein themarkets weserve.Thisstrongfoundationisbasedonourlongstandingcommitment tosafetyandintegrity, supportedbyfourcorevalues:(1)peoplearetheheartofourbusiness,(2) clientsareourvaluedpartners, (3) performanceexcellenceisourcommitment, and(4) profitablegrowthisanimperative. Aspartofoureffort totransform thecoreofourbusiness,wecompletedarestructuring programthatwe expectwillresultinannualcostsavingsofover$289million.Duringfiscal2017,wealsoinvestedapproximately $30millionintechnologymodernizationandprocessimprovementstoenhanceourbusinesscapabilitiesand improveclientservice. 2018ProxyStatement | Total of 02 pages in section