2018 Guide to Effective Proxies

2.3 Table of contents | 51 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES ATLAS AIR WORLDWIDE HOLDINGS, INC. BANK OF AMERICA CORPORATION BAXTER INTERNATIONAL INC. BELDEN INC. TABLEOFCONTENTS TABLE OF CONTENTS Page General Information 1 About the Annual Meeting 3 RecordDateandVotingSecurities 3 Quorum,VoteRequired 3 Proposal No. 1 – Election of Directors 5 DirectorCoreCompetencies 6 NomineesforDirector 8 Corporate Governance, Board and Committee Matters 14 BoardLeadershipStructure 14 BoardEffectiveness,AnnualAssessmentandRefreshment 14 BoardOversightofRisk-MitigationProcess 16 DirectorIndependence 16 ActiveandEngagedBoard 17 ExecutiveSessions 18 CommunicationswiththeBoard 18 CodeofEthicsandEmployeeHandbook 19 Environmental,SocialandGovernanceIssues 19 CompensationofNonemployeeDirectors 21 BoardandCommitteeInformation 23 NominatingandGovernanceCommittee 23 AuditCommittee 24 CompensationCommittee 26 Compensation Discussion and Analysis 29 Overview 30 DiscussionofOurCompensationProgram 37 CompensationCommitteeReport 51 CompensationTablesandExplanatoryNotes 52 Pay Ratio 63 Proposal No. 2 – Ratification of PricewaterhouseCoopers LLP as the Company’s Independent Registered Public Accounting Firm for 2018 64 Proposal No. 3 – Advisory Vote to Approve the Compensation of Our Named Executive Officers 65 Proposal No. 4 – Approval our 2018 Incentive Plan 67 AtlasAirWorldwideHoldings,Inc. 2018Notice&ProxyStatement | Total of 02 pages in section TableofContents Table of Contents Proposal1:ElectingDirectors 2 IdentifyingandEvaluatingDirectorCandidates 3 OurDirectorNominees 5 CorporateGovernance 14 OurBoardofDirectors 14 DirectorIndependence 14 IndependentBoardLeadership 15 BoardEvaluation 17 DirectorEducation 19 DirectorCommitment 19 BoardMeetings,CommitteeMembership, andAttendance 19 StockholderEngagement 21 CommunicatingwithourBoard 22 SustainableResponsibleGrowth 23 BeingaGreatPlacetoWork 24 CEOandSeniorManagementSuccession Planning 26 BoardOversightofRisk 27 CompensationGovernanceandRisk Management 28 AdditionalInformation 30 RelatedPersonandCertainOtherTransactions 31 StockOwnershipofDirectors,ExecutiveOfficers, andCertainBeneficialOwners 32 Section16(a)BeneficialOwnershipReporting Compliance 33 DirectorCompensation 34 Proposal2:ApprovingOurExecutive Compensation(anAdvisory,Non-binding “SayonPay”Resolution) 37 CompensationDiscussionandAnalysis 37 ExecutiveSummary 38 2017Company&SegmentPerformance 39 ExecutiveCompensationProgramFeatures 41 CompensationDecisionsandRationale 44 OtherCompensationTopics 49 CompensationandBenefitsCommitteeReport 50 ExecutiveCompensation 51 SummaryCompensationTable 51 GrantsofPlan-BasedAwardsTable 54 Year-EndEquityValuesandEquityExercised orVestedTable 57 PensionBenefitsTable 59 NonqualifiedDeferredCompensationTable 60 PotentialPaymentsuponTerminationor ChangeinControl 61 CEOPayRatio 63 Proposal3:RatifyingtheAppointmentof OurIndependentRegisteredPublicAccounting Firmfor2018 64 AuditCommitteePre-ApprovalPoliciesand Procedures 65 AuditCommitteeReport 65 Proposal4:StockholderProposal 66 VotingandOtherInformation 69 AppendixA:ReconciliationofGAAPand Non-GAAPFinancialMeasures A-1 Internet Availability of Proxy Materials WemailedoremailedtomostofourstockholdersaNoticeofInternetAvailabilityofourproxymaterialswithinstructionson howtoaccessourproxymaterialsonlineandhowtovote.Ifyouarearegisteredholderandwouldliketochangethemethodof deliveryofyourproxymaterials,pleasecontactourtransferagent,Computershare,P.O.Box505005,Louisville,KY40233; Tollfree:800-642-9855;orat www.computershare.com/bac .Youmaydothesameasabeneficialownerbycontactingthe bank,broker,orothernomineewhereyoursharesareheld. Proxy Statement Availability Weareprovidingormakingavailablethisproxystatementtosolicityourproxytovoteonthematterspresentedatourannual meeting.WecommencedprovidingandmakingavailablethisproxystatementonMarch12,2018.OurBoardrequeststhatyou submityourproxybytheInternet,telephone,ormailsothatyourshareswillberepresentedandvotedatourannualmeeting. BankofAmericaCorporation2018ProxyStatement 1 PROXYSTATEMENTFORTHE 2018ANNUALMEETINGOFSTOCKHOLDERSOF BELDENINC. TobeheldonThursday,May24,2018 TABLEOFCONTENTS GENERALINFORMATION 1 INTERNETAVAILABILITYOFPROXYMATERIALS 1 CONTACTINFORMATIONFORQUESTIONS 1 CORPORATEGOVERNANCE 2 BiographiesofDirectorsSeekingReappointment 3 AuditCommittee 8 CompensationCommittee 8 FinanceCommittee 8 NominatingandCorporateGovernanceCommittee 8 CorporateGovernanceDocuments 9 RelatedPartyTransactionsandCompensation CommitteeInterlocks 9 CommunicationswithDirectors 9 BoardLeadershipStructureandRoleinRiskOversight 10 Non-EmployeeDirectorStockOwnershipPolicy 10 DIRECTORCOMPENSATION 11 ITEMI–ELECTIONOFTENDIRECTORS 12 PUBLICACCOUNTINGFIRMINFORMATION 13 ITEMII–RATIFICATIONOFTHEAPPOINTMENTOFERNST& YOUNGASTHECOMPANY’SINDEPENDENTREGISTERED PUBLICACCOUNTINGFIRMFOR2018 13 FeestoIndependentRegisteredPublicAccountantsfor 2017and2016 13 AuditCommittee’sPre-approvalPoliciesandProcedures 13 ReportoftheAuditCommittee 14 EXECUTIVECOMPENSATION 16 CompensationDiscussionandAnalysis 16 ANotefromtheBeldenCompensationCommittee 16 I. Introduction 17 II. ExecutiveSummary 17 III. 2017Say-on-PayReview 18 IV. CompensationObjectivesandElements 18 A. Objectives 18 B. Elements 19 C. PayforPerformancePhilosophy 19 D. CompensationDesign 20 V. 2017CompensationAnalysis 21 A. BaseSalaryAdjustments 21 B. AnnualCashIncentivePlanAwards 22 C. Performance-BasedEquityAwards 26 VI. CompensationPoliciesandOtherConsiderations 29 ReportoftheCompensationCommittee 31 CompensationandRisk 31 PayRatioDisclosure 31 PayforPerformanceinAction 33 CompensationTables 34 SummaryCompensationTable 34 GrantsofPlan-BasedAwards 36 OutstandingEquityAwardsatFiscalYear-End 37 OptionExercisesandStockVested 39 PensionBenefits 40 NonqualifiedDeferredCompensation 40 Employment,SeveranceandChange-In-Control Arrangements 41 PotentialPaymentsUponTerminationorChange-In- Control 42 ITEMIII–ADVISORYVOTEONEXECUTIVECOMPENSATION 45 OWNERSHIPINFORMATION 46 EQUITYCOMPENSATIONPLANINFORMATIONON DECEMBER31,2017 46 SECTION16(A)BENEFICIALOWNERSHIPREPORTING COMPLIANCE 46 STOCKOWNERSHIPOFCERTAINBENEFICIALOWNERSAND MANAGEMENT 47 BeneficialOwnershipTableofDirectors,Nominees andExecutiveOfficers 47 BeneficialOwnershipTableofStockholdersOwning MoreThanFivePercent 49 OTHERMATTERS 50 FREQUENTLYASKEDQUESTIONS 50 STOCKHOLDERPROPOSALSFORTHE2018ANNUAL MEETING 54 APPENDIXI–ANNUALCASHINCENTIVEPLAN PERFORMANCEFACTORS I-1 BeldenInc.2018ProxyStatement Pagei TableofContents i Table of Contents TableofContents i Noticeof2018AnnualMeeting ofStockholdersandProxyStatement 1 ProxyStatementHighlights 2 CorporateGovernanceat BaxterInternationalInc. 10 Proposal1 ElectionofDirectors 10 NomineesforElectionasDirectors 11 BoardofDirectors 17 OtherCorporateGovernanceInformation 20 BoardResponsibilities 20 BoardStructureandProcesses 21 CommitteesoftheBoard 22 DirectorCompensation 24 CorporateResponsibility 26 ExecutiveCompensation 28 Proposal2 AdvisoryVotetoApprove NamedExecutiveOfficerCompensation 28 CompensationCommitteeReport 29 CompensationDiscussionandAnalysis 29 Summary 29 CompensationPhilosophy 33 ComponentsofExecutiveCompensation 34 StructureofCompensationProgram 35 ElementsofExecutiveCompensation 41 ExecutiveCompensationTables 46 SummaryCompensationTable 46 2017GrantsofPlan-BasedAwards 48 DescriptionofCertainAwardsGrantedin2017 49 CertainEmploymentArrangements 50 OutstandingEquityAwardsat2017FiscalYear-End 51 OptionExercisesandStockVested 52 PensionBenefits 53 NonqualifiedDeferredCompensation 54 PotentialPaymentsUponTerminationorFollowinga ChangeinControl 55 CEOPayRatio 56 AuditMatters 57 Proposal3 RatificationofAppointmentof IndependentRegisteredPublicAccountingFirm 57 AuditCommitteeReport 59 AuditandNon-AuditFees 60 Pre-ApprovalofAuditandPermissibleNon-AuditFees 60 OwnershipofOurStock 61 SecurityOwnershipbyDirectorsandExecutiveOfficers 61 SecurityOwnershipbyCertainBeneficialOwners 62 Section16(a)BeneficialOwnership ReportingCompliance 62 StockholderProposals 63 Proposal4 IndependentBoardChairman 63 Proposal5 RighttoActbyWrittenConsent 66 GeneralInformation 69 QuestionsandAnswersabouttheAnnualMeeting 69 OtherInformation 71 investor.baxter.com