2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 462 COMPENSATION DISCUSSION AND ANALYSIS Executive Compensation Program Peer Grouping For assessing executive pay programs and levels, the Compensation Committee selected a group of companies that are similar to Dover in terms of end markets, complexity, revenues, and market capitalization. In 2017, with the help of its independent consultant, the Compensation Committee approved changes to that peer group, to arrive at the peer group below. FMC Technologies was removed following its merger with Technip SA. SPX Corporation was also removed after the completion of several divestitures significantly reduced its revenue. IN USD MILLIONS FINANCIAL CONSIDERATIONS QUALITATIVE CONSIDERATIONS COMPANY 2017 REVENUE 2017 MARKET CAP(1) INDUSTRY >20% GLOBAL REVENUES DOVER-LIKE STRUCTURE SAME ANALYST COVERAGE(2) 3M COMPANY $31,657 $140,188 Industrial Conglomerates ✗ ✗ ✗ COLFAX CORPORATION $ 3,300 $ 4,878 Industrial Machinery ✗ ✗ ✗ CARLISLE COMPANIES $ 4,090 $ 7,045 Industrial Conglomerates ✗ ✗ EATON CORPORATION $20,404 $ 34,812 Electrical Equipment ✗ ✗ ✗ EMERSON ELECTRIC CO. $15,264 $ 44,507 Electrical Equipment ✗ ✗ ✗ FLOWSERVE CORPORATION $ 3,661 $ 5,504 Machinery ✗ ✗ FORTIVE CORPORATION $ 6,656 $ 25,146 Industrial Machinery ✗ ✗ ✗ ILLINOIS TOOL WORKS INC. $14,314 $ 57,163 Machinery ✗ ✗ ✗ INGERSOLL-RAND PLC $14,198 $ 22,286 Machinery ✗ ✗ ✗ PARKER-HANNIFIN CORPORATION $12,029 $ 26,589 Machinery ✗ ✗ PENTAIR LIMITED $ 4,937 $ 12,824 Machinery ✗ ✗ ROCKWELL AUTOMATION INC. $ 6,311 $ 25,210 Electrical Equipment ✗ ✗ ROPER INDUSTRIES INC. $ 4,607 $ 26,512 Industrial Conglomerates ✗ ✗ ✗ TEXTRON INC. $14,198 $ 14,907 Aerospace & Defense ✗ ✗ XYLEM, INC. $ 4,707 $ 12,249 Industrial Machinery ✗ WEATHERFORD INTERNATIONAL LIMITED $ 5,699 $ 4,139 Energy Equipment & Services ✗ 75TH PERCENTILE $14,227 $ 28,645 MEDIAN $ 6,484 $ 23,716 25TH PERCENTILE $ 4,682 $ 10,948 DOVER $ 7,830 $ 15,733 (1) As of 12/31/2017. (2) “Same analyst coverage” means company is covered by at least 5 of the analysts that cover Dover. DOVER CORPORATION – 2018 Proxy Statement 41 DOVER CORPORATION