2018 Guide to Effective Proxies

2.2 Board/CEO letter | 39 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES MCKESSON CORPORATION METLIFE, INC. MGM RESORTS INTERNATIONAL MICROSOFT CORPORATION A LETTER FROM OUR LEAD INDEPENDENT DIRECTOR DearFellowShareholders, WebelievethatMcKessonhasbeensuccessfuloverthelongtermbecausewelistencarefullytoourcustomers,partnersand shareholders, which informs our corporate governance practices and enables us to anticipate market developments and customerneeds. Our directors work together to continually assess how we can operate responsibly and effectively protect and increase the value of your investment. As we approach the 2018 Annual Meeting, I would like to highlight some of the ways the Board of Directorshasbeenworkingonyourbehalf. OverseeingStrategytoDriveLong-TermGrowthandValueCreation TheBoardhasseveralstewardshipfunctions ,whichinclude:providingcriticaloversight,advisingonMcKesson’sstrategic plans and setting the “tone at the top.” The Board actively oversees McKesson’s long-term strategy as we seek to build long- termshareholdervalueandassurethevitalityoftheCompanyforitscustomers,employeesandshareholders.We: • Leverage our directors’ diverse experiences to help the Company navigate the rapidly evolving healthcare environment; • Assess strategy throughout the year , including discussions at regular Board meetings, and at least one multi-day meeting to focus on long-term strategic planning as well as risks that could challenge the successful execution of our plan;and • Review our capital allocation strategy , which is designed to focus on creating shareholder value through internal investment and M&A followed by distribution through buybacks and dividends. In line with this portfolio approach to capitaldeployment,inFY2018,theCompanymadeseveralstrategicacquisitions,suchasCoverMyMeds,intraFUSION and RxCrossroads; divested Enterprise Information Solutions; and returned $2.0 billion to shareholders through dividendsandsharerepurchases. RefreshingtheBoardandCommitteeswithNewPerspectives WeinvigorateBoarddiscussionthroughtheappointmentofnewdirectorsandtherotationofdirectorsthroughdifferentBoard roles. Thoughtful and ongoing attention to Board composition is an important part of our role as we seek to ensure an appropriate mix of tenure and expertise that provides a balance of fresh perspectives and significant institutional knowledge . The Governance Committee has invested a substantial amountoftimeconsideringBoardcompositionaspartof the annual self-evaluation process, and revisits the topic during the year if the Board sees changes in the Company’s governanceneeds. This year we appointed Bradley E. Lerman to the Board. Mr. Lerman’s deep understanding of the healthcare industry and experience linking compliance and legal considerations with corporate strategy will bring valuable insights to our Board. We also approvedanumberofchangestothecompositionandleadershipofourCompensationCommittee ;changesthat will be effective July 23, 2018. As part of this refreshment, N. Anthony Coles, M.D. will assume the role of Compensation CommitteeChair,SusanR.SalkaandMr.Lermanwilljointhecommitteeasnewmembers,andM.ChristineJacobswillleave the committee. Our current Compensation Committee Chair Andy D. Bryant will not stand for reelection at the 2018 Annual Meeting. In addition, our newest Board member, Mr. Lerman, will assume the role of Governance Committee Chair and DonaldR.KnausswillassumetheroleofFinanceCommitteeChair. RefiningOurCompensationProgramtoAlignwithOurStrategy Ensuring that the Company has an executive compensation program that appropriately attracts, retains and incentivizes our management team is one of the Board’s most critical responsibilities. Following low support for our executive pay program at the 2017 Annual Meeting, our Compensation Committee undertook a robust process to review the Company’s executive compensation structure , taking into account feedback from our shareholders gathered during an extensive outreacheffort. Total of 03 pages in section MetLife,Inc. 200ParkAvenue,NewYork,NY10166 April26,2018 FellowShareholders: IamwritingtoyouforthefirsttimeinmyroleasMetLife’sLeadDirectortosharetheBoard’sperspectiveonMetLife’s performancein2017andhowtheCompanyisprogressingwithitsongoingtransformation. AsDirectors,weareresponsibleforensuringtheCompany’sbusinessstrategyissoundandmanagementisexecutingit effectively.WeplanfortheCompany’sfuturebyevaluatingmanagementtalentagainstanticipatedneedsandweplay theuniqueroleofactingasadvocatesforshareholderstoensureyourinterestsarerepresentedinallmajordecisions affectingMetLife. ThefeedbacktheBoardreceivedfromshareholdersduring2017hasproveninvaluableaswecontinuetofocuson creatingvalueforshareholders.MetLifemadeimportantprogresslastyearinseveralareas.TheBrighthouseFinancial separationopenedanewchapterinMetLife’shistory.AstheCompanyfocusesonlesscapital-intensivebusinesseswith greatercash-generatingpotential,ithastheopportunitytochangehowitisviewedandvaluedbyinvestors. MetLifeachievedaratioofCoreFreeCashFlowtoCoreAdjustedEarningsof75percentlastyear,hittingthetopendof theCompany’sprojectedrange.Thismadeitpossibletoreturnarecord$4.6billiontoshareholdersthroughshare repurchasesanddividends.InJanuary,MetLifewonitslong-runninglegalbattletoremovetheCompany’sSystemically ImportantFinancialInstitution(SIFI)designationwhenthefederalgovernmentdroppeditsappealofthecourtrulingin ourfavor.TheBoardfullysupportedthiseffortbecausewebelieveditwasnecessarytopreserveMetLife’sabilityto competeonalevelplayingfieldagainstotherinsurers. WebelieveMetLife’smanagementteamhasalsocontinuedtomakesignificantprogressintransformingtheCompany intoabusinessthatcanperformwellanddeliversignificantvaluetoshareholdersinawiderangeofeconomic environments.Partofthattransformationwillbecompletingtheexpenseinitiativenowunderwaytodeliver$800million ofpre-taxrunrateannualsavings,netofstrandedoverhead,tothebottomlineby2020. Whilethesewerepositiveeventsandtrends,weweredisappointedwithtwoinstanceswheretheCompanyfailedtolive uptoitsownhighstandards.Theseinvolvedthetrackingofcertaingroupannuitybeneficiaries,andthereleaseof reinsurancereservesforJapanesevariableannuitiesinourMetLifeHoldingssegment.WhiletheCompanydiscoveredand proactivelyreportedtheseerrorsonitsown,theyshouldnothaveoccurred.Inresponse,theCompanyhasmadeita prioritytostrengthenitsfinancialcontrolsandenhanceitspracticesandproceduresforcommunicatingwith policyholders. MetLifebenefitsfromadiverseandindependentBoard,tenofwhoseelevenmemberswhoarenominatedforelection comefromoutsidetheCompany.TheDirectorsbringadepthoffinancialandmanagementexpertisetotheCompany, alongwithexperiencethatspansfinancialandnonfinancialindustries,governmentandthenonprofitsector.Weremain focusedonensuringtheBoardhastherightmixofskillsandexperiencestooverseeMetLife’sbusinessstrategyand operatingenvironment.LastyearweenhancedamatrixoftherelevantqualificationstoguideusinBoardsuccession planningandrefreshment.ThisisdiscussedinmoredetailinthisProxyStatement.Wewillcontinuetoevaluatethis matrixasMetLife’stransformationandbusinessneedsevolve. WecontinuetorecruitnewDirectorswhowilldelivergreatvaluetotheCompany.WewerepleasedtohaveGeraldL. Hassell,theformerChairmanandCEOofTheBankofNewYorkMellonCorporation,joinourranksinFebruary.AlfredF. Total of 02 pages in section Letter from our Independent Chairman and our CEO October16,2017 Dear Shareholder, WeinviteyoutoattendtheAnnualShareholdersMeetingof MicrosoftCorporation(“AnnualMeeting”),whichwillbeheld atMeydenbauerCenter,11100NE6thStreet,Bellevue, Washington98004,onNovember29,2017at8:00a.m.Pacific Time.Doorsopenat7:00a.m.MicrosoftStoreassociateswill beonhandtohelpyouexperienceMicrosoft’slatestconsumer productsliketheSurfaceStudio,SurfaceLaptop,andSurface Procomputers,andtheXboxconsole.Drivingdirectionsto MeydenbauerCenterareonpage93.Parkingwillbevalidated onlyfortheMeydenbauerCentergarage.Parkingislimited,so planaheadifyouaredrivingtothemeeting. TheNoticeof2017AnnualShareholdersMeetingandthis ProxyStatementcontaindetailsofthebusinesstobe conductedattheAnnualMeeting. WhetherornotyouattendtheAnnualMeeting,itisimportantthatyoursharesberepresentedandvotedatthe meeting.WeurgeyoutopromptlyvoteandsubmityourproxyviatheInternet,byphone,orbysigning,dating,and returningtheenclosedproxycardintheenclosedenvelope.IfyouattendtheAnnualMeeting,youcanvotein personevenifyoupreviouslysubmittedyourproxy. Thisyear’sshareholderquestionandanswersessionwillincludebothlivequestionsandquestionssubmittedin advance.Youmaysubmitaquestioninadvanceofthemeetingatwww.proxyvote.comafterlogginginwiththe controlnumberfoundnexttothelabel“ControlNumber”forpostalmailrecipientsornexttothefieldlabeled “ControlNumber”withinthebodyofyouremail.Wewillrespondtoyoubyemailifyouronlinequestionisn’t answeredduringthemeeting. Forthosewhocan’tattendinperson,weagainareofferingavirtualshareholdermeetinginwhichyoucanviewthe meeting,submitquestions,andvoteonlineatwww.microsoft.onlineshareholdermeeting.com.Wewillalsoprovidea livewebcastoftheAnnualMeetingfromtheMicrosoftInvestorRelationswebsiteatwww.microsoft.com/investor.A transcriptwithvideoandaudiooftheentireAnnualMeetingwillbeavailableontheInvestorRelationswebsiteafter themeeting.WehopethiswillallowthosewhocannotattendthemeetinginpersontohearMicrosoftexecutives discussthepastyear’sresultsandourfutureopportunities.Inaddition,wemakeavailableatourInvestorRelations websiteavarietyofinformationforinvestors.OurgoalistomaintaintheInvestorRelationswebsiteasaportal throughwhichinvestorscaneasilyfindpertinentinformationaboutus. OnbehalfoftheBoardofDirectors,thankyouforyourcontinuedinvestmentinMicrosoft.Welookforwardto greetingasmanyofyouaspossible. Sincerely, JohnW.Thompson IndependentChairman SatyaNadella ChiefExecutiveOfficer Total of 02 pages in section LETTER FROM OUR CHAIRMAN Dear Fellow MGM Resorts International Stockholders: 2017wasanincredibleyearofevolutionforyourCompany,onethatcontinuedourfocusonourlong-termgrowthstrategyand furthersolidifiedourpositionasaleadingglobalentertainmentbrand.MGMResortsInternationalreportedconsolidatedNet Revenuesofapproximately$10.8billion,NetIncomeattributabletoMGMResortsInternationalofapproximately$2.0billion, andAdjustedPropertyEBITDA*ofapproximately$3.2billion.OurDomesticResortsachievedNetRevenuesofapproximately $8.3billionandAdjustedPropertyEBITDAofapproximately$2.5billion.InMacau,MGMChinacontinuedtoperformwellwith NetRevenuesofapproximately$2.0billionandAdjustedPropertyEBITDAofapproximately$525million. MGMResortscontinuestotargetandprudentlyinvestinnewopportunitiestogrowourcompetitiveadvantages.Weare expandingonourpositionasthelargestconventionoperatorinLasVegas,withoverthreemillionsquarefeetofconventionand meetingspaceacrossourLasVegasStripproperties,toaddressgrowingdemandandtofurtherincreaseourcustomerbase. Additionally,thetransformationoftheMonteCarloResortandCasinointotheParkMGMandNoMadhotelinLasVegasis expectedtobecompletedbytheendof2018.AndMGMCOTAI,whichopenedinFebruary2018,isthelatestadditiontothe MGMResortsportfolioinChinaandhighlightsourcontinuedconfidenceinthefutureoftheMacaumarketplace. Ourhomecity,LasVegas,alsocementeditselfasanexcitingnewsportsdestinationandMGMResortsisproudtohave playedaroleinhelpingtobringprofessionalsportstothecity.LasVegasisnowhometotheNHL’sGoldenKnights,and ourownWNBAteam,the“LasVegasAces,”willmakeitsdebutin2018attheMandalayBayEventsCenter.Welook forwardtothecontinuedevolutionofthecityinsports,includingtherelocationoftheNFL’sRaidersfranchiseintotheirnew homejustwestofMandalayBay. Thecollectivestrengthofourorganization,thepowerofourbrand,andourfocusonexecutingourstrategicplancontinues todeliverresultsforourshareholders.InOctober,MGMResortsInternationalsoldtherealestateassetsofMGMNational Harbortoitsaffiliatedrealestateinvestmenttrust,MGMGrowthProperties,fornearly$1.2billion.Also,in2017,we achievedtwocriticallong-termmilestones:theimplementationofaquarterlydividendof$0.11pershare,whichwas recentlyincreasedto$0.12pershare,andthelaunchofa$1billionsharebuy-backprogram.Ourabilitytoachievethese goalsisadirectreflectionofourongoingcommitmenttototalshareholderreturnwhiledemonstratingconfidenceinour abilitytogrowourbusinessandmaintainastrongbalancesheet. Oursuccesseshaven’tgoneunnoticedasMGMResortsInternationalwasaddedtotheS&P500IndexinJuly2017.This significantmilestonerepresentstheeffortsoftheapproximately78,000menandwomendedicatedtodeliveringthefinest entertainmentexperiencesatMGMResortsandourcommitmenttomaximizeshareholdervalue.Iwishtothankourcommitted shareholdersandourpassionateemployees,whosededicationisattheheartofourenduringstrengthandsuccess. Regards, JamesJ.Murren ChairmanoftheBoard andChiefExecutiveOfficer March21,2018 *See“ReconciliationsandNon-GAAPFinancialMeasures”foranexplanationofthecomputationofAdjustedPropertyEBITDA. Statementsinthisletterthatarenothistoricalfactsare“forward-looking”statementsand“safeharborstatements”withinthemeaningofthe PrivateSecuritiesLitigationReformActof1995andotherrelatedlawsthatinvolverisksand/oruncertainties,includingrisksand/or uncertaintiesdescribedintheCompany’spublicfilingswiththeSecuritiesandExchangeCommission.TheCompanyhasbasedthese forward-lookingstatementsonmanagement’scurrentexpectationsandassumptionsandnotonhistoricalfacts.Examplesofthese statementsinclude,butarenotlimitedto,statementsregardingtheCompany’sexpectationsregardingfutureresultsandtheCompany’s financialoutlook,thepaymentofanyfuturecashdividendsontheCompany’scommonstock,itsabilitytogeneratefuturecashflowgrowth andtoexecuteonfuturedevelopmentandotherprojectsandtheCompany’sabilitytoexecuteitsstrategicplanandimproveitsfinancial flexibility.Amongtheimportantfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseindicatedinsuchforward-looking statementsincludeeffectsofeconomicconditionsandmarketconditionsinthemarketsinwhichtheCompanyoperatesandcompetition withotherdestinationtravellocationsthroughouttheUnitedStatesandtheworld,thedesign,timingandcostsofexpansionprojects,risks relatingtointernationaloperations,permits,licenses,financings,approvalsandothercontingenciesinconnectionwithgrowthinnewor existingjurisdictionsandadditionalrisksanduncertaintiesdescribedintheCompany’sForm10-K,Form10-QandForm8-Kreports (includingallamendmentstothosereports).Inprovidingforward-lookingstatements,theCompanyisnotundertakinganydutyorobligation toupdatethesestatementspubliclyasaresultofnewinformation,futureeventsorotherwiseexceptasrequiredbylaw.