2018 Guide to Effective Proxies

2.17.10 Peer groups | 469 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES Executive Compensation | 2018 Mastercard Proxy 56 Peer Group The HRCC, with assistance from the independent compensation consultant and input from management, establishes Mastercard’s peer group that is used for market comparisons and benchmarking. The selection process begins with a list of potential peer companies, which is filtered using various criteria to determine the final list of peer companies. The following outlines the process that is undertaken by the HRCC to select the peer group, as well as the resulting list of peer companies, used for market comparisons, benchmarking and setting executive compensation for 2017: Peer Group • Accenture plc • Adobe Systems Incorporated • Alliance Data Systems Corporation • American Express Company • Automatic Data Processing Inc. • CA, Inc. • Capital One Financial Corporation • Colgate-Palmolive Company • Discover Financial Services • Fiserv, Inc. • Intuit Inc. • PayPal • Qualcomm Incorporated • salesforce.com • SAP SE • S&P Global Inc. • Visa Inc. 1 Consider initial list of companies Initial List: • Companies in similar industries • Competitors for executive talent • Companies that consider Mastercard a peer, are peers of our direct competitors or are considered to be our peers by third parties (i.e., analysts and proxy advisors) 2 Utilize an objective set of screens to create the list of potential peer companies Size Screens: • Revenue, market cap and market cap to revenue ratio Performance Screens: • Revenue growth, operating margin Business Screens: • Industry relevance, global presence 3 Apply secondary list of screens to select the final peer group that in aggregate satisfies the desired objectives Secondary Screens: • Company strategy, technology-focused companies, international and global brands, consulting services companies The compensation consultant used the peer group to develop the market data materials that were provided to the HRCC to assist in the 2017 and 2018 executive compensation decision-making process. As shown below, Mastercard’s relative size rank within the peer group has remained consistent with the rankings at the time of the peer group inception in 2014: 1 2 3 Net Revenue Market Capitalization December 31, 2016 Peer Group Percentile Upon Peer Group Inception 0 % 25 % 50 % 75 % 100 % MASTERCARD, INC.