2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 496 Compensation Discussion and Analysis AREAOF FOCUS WHATWEHEARD WHATWEDID Program Design Investorsbelievethattheprimary elementsandcoredesignfeaturesof ourexecutivecompensationprogram aresolid,andtheystronglysupport heavyweightingofperformance-based awardsinourlong-termincentive program. Continuedourfirmcommitmenttopayfor performancebyallocating 70%ofthelong-term incentiveopportunitytoperformance-basedshare unitawards . Roundedoutourlong-termincentiveprogramwitha time-basedrestrictedshareunitawardopportunity, providingaretentionincentivefor theexecutive talentweneedtocompletetheexecutionofour businesstransformation. Performance Metrics Investorsfavoranexecutive compensationprogramthat demonstratesaclearlinkagebetween theCompany’sstrategyandthe program’sfinancialperformancegoals andgenerallysupportmovingaway fromatotalshareholderreturn performancemetric. Grantedperformance-basedshareunitawardssubject totwokey financialmetricsthatarestronglylinked toourlong-termbusinessstrategy :ARRgrowthand subscription-basedbookings. IncludeddetailedCD&Adisclosuresregardinghow thedesignofourexecutivecompensationprogram alignswiththeCompany’songoingbusiness transformationgoals. Discontinueduseofnon-financialstrategicgoalsto measureperformanceundertheannualbonus programandoperationalgoalsunderthelong-term incentiveprogram. Performance Periods Severalinvestorsexpressedageneral preferencefor3-yearperformance periodsratherthan1-yearperformance periodsforlong-termincentiveawards. Grantedperformance-basedshareunitawardsthat willbeearnedbasedonachievementofcumulative financial performancemetricsmeasuredovera 3-yearperiod . PeerGroup Someinvestorssoughtconfirmation thattheCompany’sexecutive compensationpeergroupisreviewed regularlyandincludespeersthat reasonablyreflectcompaniesofsimilar sizeandstrategicdirectionasTeradata. ContinuedtoconducttheCommittee’sannualreview ofourpeergroupwithinputfrommanagementand itsindependentcompensationconsultant. Refreshedthecriteriaandcompositionofourpeer group tobetterreflectoursizeandstrategic direction. Disclosure Investorsappreciatethestrong narrativepresentedinourexecutive compensationdisclosures,but encouragedustoconsiderusingmore graphicelementstoillustratethe progressofourbusinesstransformation andthechangestoourexecutive compensationprogram. Redesignedtheentireproxystatement toimprove readabilitybyincludinginfographicsandmoretables, amongotherthings. Expandedtheexecutivesummarysectionofthis CD&A. 32 2018PROXYSTATEMENT Total of 02 pages in section SUPERIOR ENERGY SERVICES, INC. TERADATA STOCKHOLDER OUTREACH To sustain and improve dialogue with our stockholders, our annual engagement cycle consists of a primary stockholderoutreacheffortinthefourthquarterofeachyear.Uponreceivingfeedback,weconsiderchanges,take actionandcommunicatetheeffortsmadeinourannualproxystatement.Ouroutreachisdoneprimarilybyholding conference calls with stockholders, but we also provide questionnaires, allowing our stockholders to provide writtenresponsesregardinganyconcerns.In2017,weinvitedourtop-50stockholders,owningapproximately 97 % ofouroutstandingsharesofcommonstock,todiscussourcompensationphilosophy,executivecompensationand any governance concerns during the annual engagement. The following illustrates our 2017 stockholder outreach efforts: EngageStockholders InQ4’2017: • We contacted stockholdersowning 97% ofouroutstanding shares • Stockholdersowning 40% ofour outstanding shares respondedandwe receivedposi�ve feedbackon execu�ve compensa�on ConsiderChange WeConsidered: • ABoardSkillsMatrix • DisclosingmoreESG informa�on as rooted inourCodeofConduct ReceiveFeedback In2017,we received the following requests: • Discloseaddi�onal informa�onon board skillsandexperience • Providemoreenvironmental, social andgovernance (ESG) informa�on TakeAc�on • IncludedaBoardSkillsMatrix in Proxy • Providedaddi�onalESG informa�onunderCorporate Responsibility sec�onofproxy 2017 2018 2017 2017 Engage Stockholders Receive Feedback TakeAc�on Consider Change Stockholder Outreach During the engagement, stockholders owning 40% of our outstanding shares of common stock responded to our outreach efforts. Specifically, no stockholder expressed concerns regarding our executive compensationprogram. From the feedback we received, we felt our stockholders were pleased with our proactive approach to addressing executivecompensationduringthedownturnandthedecisiontomaintainthe15%basesalaryreductionforNEOs during2017,whichwaspreviouslyimplementedin2016.Inaddition,ourstockholdersprovidedfeedbackidentified aboveandwetookactiontoaddresstherequests. The feedback we receive from our stockholders is important to us. Stockholders and other interested parties may send communications to stockholderengagement@superiorenergy.com . Through our outreach effort, we are able tohearconcernsfromourstockholders,respondeffectivelyandcommunicatewithourstockholders.Weexpectto continue a strong level of engagement to ensure that we understand and remain able to address stockholder concerns. EngageStockholdersInQ4’2017:Wecontactedstockholdersowning97%ofouroutstandingsharesStockholdersowning40%ofouroutstandingsharesrespondedwithpositivefeedbackonexecutivecompensationEngageStockholdersReceiveFeedbackReceiveFeedbackIn2017,wereceivedthefollowingrequests:DiscloseadditionalinformationonboardskillsandexperienceProvidemoreenvironmental,socialandgovernance(ESG)informationConsiderChangeWeConsidered:ABoardSkillsMatrixDisclosingmoreESGinformationasrootedinourCodeofConductConsiderChangeTakeActionTakeActionIncludedaBoardSkillsMatrixinProxyProvidedadditionalESGinformationunderCorporateResponsibilitysectionofproxy x 2 0 1 8 S P N P r o x y S t a t e m e n t Compensation Discussion and Analysis Stockholder Engagement and Compensation Program Enhancements Teradatareceivedstrongsupportfromourstockholdersforourexecutivecompensationprogram,witha 97%FAVORABLE“SAY-ON-PAY”VOTE atour2017annualmeeting.TheCommitteeviewsthisexemplaryresultas confirmationthatourcompensationprogramisappropriatelystructuredtosupportourongoingbusiness transformation. Wegreatlyvaluetheinputreceivedfromourstockholdersandengagewiththemonavarietyofmatters–including strategyexecution,executivecompensationandcorporategovernance–aspartofayear-roundengagementprocess describedbelow: SUMMER/FALL WINTER SPRING Wereachouttolargest investorstoengagein discussionsregardingissuesthat areimportanttothemandto seektheirinputonexecutive compensationandcorporate governancematters.Our outreachteamincludesInvestor Relations,Executive CompensationandCorporate Governancerepresentatives fromTeradata’smanagement team,includingtheChiefHuman ResourcesOfficerand,if requested,theindependent ChairoftheCommittee. Aswepreparefortheproxy season,weconsiderinvestor feedbackandperspectivesin evaluatingandstructuringour executivecompensation programandpreparingproxy statementdisclosures. Afterproxymaterialsarefiled, weinviteourlargestinvestorsto discussproposalstobe consideredatthenextannual meetingofstockholders.As outlinedonpage20ofthis proxystatement,therearealso anumberofestablished channelsthatanyinvestormay usetocommunicatewiththe Company. Aspartoftheproxysolicitationprocessandfollowingour2017annualmeeting,wecontinuedourpracticeof solicitinginputfromourlargest25institutionalinvestors,representingover82%ofouroutstandingshares,and answeringtheirquestionsregardingavarietyoftopicsofinteresttothem,suchasthedesignofourexecutive compensationprogram,boarddiversityandcorporategovernancebestpractices,andtheexecutionofourbusiness transformationstrategy. Thefeedbackwereceivedfrominvestorsthroughthisengagementprocesswasgenerallyquitepositive.During thesediscussions,somecommonthemesemergedwithrespecttoourexecutivecompensationprogramand disclosures,allofwhichwereconsistentwithwhatwasunderconsiderationbythecommitteebasedon management’srecommendations.Importantly,asdescribedinthechartbelow,wecontinuedtomakekey enhancementstoourexecutivecompensationprogramthatstrengthenthelinktoourbusinessstrategyandthe long-terminterestsofourstockholders. 31