2018 Guide to Effective Proxies

2.17.8 Pay for performance alignment | 421 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES DOMINION ENERGY Compensation Highlights Over the past five years, CEO pay continues to approximate Dominion Energy’s cumulative TSR trends: CEO Compensation (Millions) CEO Compensation vs. Cumulative TSR 0% 20% 10% 40% 30% 50% 80% 60% 100% 90% 70% $- 2013 2014 2015 2016 2017 $5 $10 $20 $15 CEO Compensation minus Change in Pension Value (1) Dominion Energy Cumulative TSR (2) Compensation Peer Group Median Cumulative TSR (2) Cumulative TSR (1) As reported in the Summary Compensation Table (2) Cumulative TSR represents the change in value (including reinvested dividends) of an investment in common stock over the period beginning December 31, 2012 and ending on the last day of the year specified. Other 2017 Compensation Highlights • CEO pay was consistent with TSR results and excellent operations. • 2017 Annual Incentive Plan (AIP) funded at 125%. • 2016 performance grant paid at 94.0% of target based on TSR and return on invested capital over a two-year period. • Transitioned long-term performance period from two to three years for performance grants. • Continued sound governance and compensation practices, including strong share ownership guidelines, clawback policies, anti-hedging rules and substantial at-risk pay. Dominion Energy 2018 Proxy Statement 5