2018 Guide to Effective Proxies

2.3 Table of contents | 53 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES CAPSTEAD MORTGAGE CORPORATION CENTERPOINT ENERGY, INC. CHENIERE ENERGY, INC. CHURCH & DWIGHT CO. TABLEOFCONTENTS TABLE OF CONTENTS Introduction ....................................................................................... 1 WhatWePayandWhy........................................................... 17 Forward-LookingStatements............................................................. 1 OurPhilosophy.................................................................. 17 GeneralInformationAboutVoting..................................................... 2 SolicitationofProxies................................................................... 2 TheRoleoftheCommittee,ItsConsultant,theCEOand ManagementinMakingCompensationDecisions....... 18 VotingSecurities.......................................................................... 2 OurUseandtheRoleofPeerCompanies........................ 18 Voting........................................................................................... 2 ObjectivesofOurProgram................................................ 19 CountingofVotes......................................................................... 2 Reviewof2017TotalDirectCompensation...................... 20 RighttoRevokeProxy.................................................................. 3 BaseSalary ................................................................. 20 NoticeofElectronicAvailabilityofProxyMaterials....................... 3 Short-TermIncentives.................................................. 20 MultipleStockholderSharingtheSameAddress......................... 3 Long-TermIncentives.................................................. 23 VotingResults.............................................................................. 3 Other2017CompensationElements................................ 24 ProposalOne—ElectionofDirectors............................................... 4 DecisionsAffectingCompensationfor2018...................... 24 BoardofDirectorsandCommitteeInformation................................. 7 OtherCompensationPoliciesandPractices........................... 25 AttendanceatAnnualMeeting..................................................... 7 CompensationCommitteeReport........................................... 26 BoardMemberIndependence...................................................... 7 SummaryCompensationTable.................................................... 27 CharitableContributions............................................................... 7 GrantsofPlan-BasedAwards...................................................... 29 BoardMemberCompensation..................................................... 8 OutstandingEquityAwardsatFiscalYear-End........................... 31 LeadershipStructure.................................................................... 9 OptionExercisesandStockVested............................................. 32 OurBoard’sRoleinRiskOversight.............................................. 9 NonqualifiedDeferredCompensation.......................................... 32 StockOwnershipGuidelinesandPledgingProhibition................ 9 PotentialPaymentsUponTerminationorChange-in-Control...... 33 DerivativesTradingandHedgingPolicy...................................... 9 EquityCompensationPlans............................................................... 35 BoardCommitteesandMeetings.................................................10 AuditCommittee................................................................................ 36 CompensationCommitteeInterlocksandInsiderParticipation....11 AuditCommitteeReport.................................................................... 36 MeetingsofNon-ManagementDirectors......................................11 SecurityOwnershipofManagementandCertainBeneficialOwners.. 37 OurCorporateGovernancePrinciples...............................................12 SecurityOwnershipofManagement............................................ 37 ConsiderationsforNomination.....................................................12 SecurityOwnershipofCertainBeneficialOwners........................ 38 ServiceonOtherBoards..............................................................12 Section16(a)BeneficialOwnershipReportingCompliance......... 38 MajorityVoteStandard.................................................................13 MandatoryResignation................................................................13 ProposalTwo—Advisory(Non-Binding)VoteonExecutive Compensation.............................................................................. 39 StockholderProceduresforDirectorCandidate Recommendations..................................................................14 InterestedPartyandStockholderCommunicationwithourBoard.14 ProposalThree—RatificationoftheAppointmentofErnst& YoungLLPasourIndependentRegisteredPublicAccounting Firm.............................................................................................. 40 DirectorOrientationandContinuingEducation............................14 RelatedPersonTransactions............................................................ 41 StockholderProposals....................................................................... 41 AnnualBoardEvaluationandIndividualDirectorSelf- Evaluations.............................................................................14 OtherMatters..................................................................................... 41 ExecutiveOfficers .............................................................................15 AdditionalInformation........................................................................ 42 ExecutiveCompensation ..................................................................16 CompensationDiscussionandAnalysis......................................16 ExecutiveSummary................................................................16 PreviousSay-on-PayVotes....................................................17 2018ProxyStatement Table of Contents NoticeofAnnualMeetingofShareholders PROXYSTATEMENT FrequentlyAskedQuestionsAboutVoting 1 ElectionofDirectors(Item1) 4 NomineesforDirectors 4 AnnualBoardSelf-Assessment 9 DirectorIndependence 10 CodeofEthicsandEthicsandComplianceCode 11 ConflictsofInterestandRelated-PartyTransactions 11 MajorityVotinginDirectorElections 12 BoardLeadership 12 TheBoard’sRoleinRiskOversight 12 ExecutiveSuccessionPlanningandLeadershipDevelopment 13 DirectorAttendance 13 BoardOrganizationandCommittees 14 ShareholderEngagementandCommunicationswithDirectors 16 WebsiteAvailabilityofDocuments 16 CompensationofDirectors 16 DirectorCompensationTable 18 StockOwnership 19 CompensationDiscussionandAnalysis 21 ExecutiveSummary 21 ObjectiveandDesignofExecutiveCompensationProgram 29 RoleoftheCompensationCommittee 29 RoleofExecutiveOfficers 31 ElementsofCompensation 32 2017ExecutiveCompensationProgram 37 2018ExecutiveCompensationProgram 37 EquityAwardPractices 39 RecoupmentofAwards 39 ExecutiveStockOwnershipGuidelines 39 ReviewofTallySheets 40 ChangeinControlPlan 40 Benefits 40 TaxConsiderations 41 ExecutiveCompensationTables 42 SummaryCompensationTableforFiscalYear2017 42 GrantsofPlan-BasedAwardsforFiscalYear2017 44 AlwaysThere ® Total of 02 pages in section TABLEOFCONTENTS TABLEOFCONTENTS PROXYSTATEMENTSUMMARY 1 2018ANNUALMEETINGOFSTOCKHOLDERS ....................................................... 1 VOTINGMATTERSANDBOARDOFDIRECTORRECOMMENDATIONS ................................. 1 CORPORATEGOVERNANCE ...................................................................... 2 PROXYSTATEMENT 3 INFORMATIONABOUTTHEANNUALMEETINGANDVOTING 3 PROPOSAL1:ELECTIONOFDIRECTORS 7 CORPORATEGOVERNANCEANDOTHERBOARDMATTERS 15 BOARDCOMPOSITION ........................................................................... 15 CORPORATEGOVERNANCEGUIDELINESANDOTHERCORPORATEGOVERNANCEDOCUMENTS ......... 15 BOARDOFDIRECTORSINDEPENDENCE........................................................... 15 COMPENSATIONCOMMITTEEINTERLOCKSANDINSIDERPARTICIPATION ............................ 16 EXECUTIVESESSIONSOFINDEPENDENTDIRECTORS .............................................. 16 BOARDOFDIRECTORSRISKOVERSIGHT.......................................................... 16 BOARDOFDIRECTORSLEADERSHIPSTRUCTURE ................................................. 17 COMMUNICATIONWITHTHEBOARDOFDIRECTORS................................................ 18 BOARDOFDIRECTORSMEETINGSANDCOMMITTEES .............................................. 19 SUCCESSIONPLANNING ......................................................................... 21 CODEOFCONDUCT ............................................................................. 22 SUSTAINABILITY ................................................................................ 23 COMPENSATIONOFDIRECTORS.................................................................. 23 2017DIRECTORCOMPENSATIONTABLE ........................................................... 25 STOCKOWNERSHIPGUIDELINESFORDIRECTORS ................................................. 26 OUREXECUTIVEOFFICERS ...................................................................... 27 SECURITIESOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENT 29 CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS 31 REVIEWANDAPPROVALOFRELATEDPERSONTRANSACTIONS ..................................... 31 RELATEDPERSONTRANSACTIONS ............................................................... 31 AUDITCOMMITTEEREPORT 32 FEESPAIDTOINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM 33 PRE-APPROVALOFAUDITANDPERMISSIBLENON-AUDITSERVICES 34 COMPENSATIONDISCUSSIONANDANALYSIS 35 INTRODUCTION 35 2017COMPENSATION 35 COMPENSATIONOBJECTIVES .................................................................... 35 DETERMINATIONOFCOMPETITIVECOMPENSATION................................................ 36 MIXOFPAY ..................................................................................... 37 SALARIES ...................................................................................... 38 ANNUALINCENTIVEPLAN ........................................................................ 38 LONG-TERMINCENTIVES—STOCKOPTIONS ....................................................... 41 RESTRICTEDSTOCK............................................................................. 42 PERQUISITESANDCHARITABLECONTRIBUTIONS .................................................. 42 2018COMPENSATIONDECISIONS ................................................................. 42 Church&DwightCo. | 2018ProxyStatement Total of 02 pages in section Table of Contents PROXYSUMMARY (i) PROXYSTATEMENT 1 GeneralInformation ....................................................................................................................................................... 1 CorporateGovernanceataGlance................................................................................................................................ 5 ShareholderOutreach—Governance............................................................................................................................. 5 PROPOSAL1—ELECTIONOFDIRECTORS 7 DirectorsandNominees................................................................................................................................................. 7 DirectorNominationsandQualifications ....................................................................................................................... 9 DirectorBiographies....................................................................................................................................................... 10 GOVERNANCEINFORMATION 14 BoardCommitteeMembershipandAttendance........................................................................................................... 14 DirectorIndependence.................................................................................................................................................. 14 BoardLeadershipStructureandRoleinRiskOversight.................................................................................................. 15 CorporateSocialResponsibilityandPoliticalAdvocacyandOversight.......................................................................... 16 MeetingsandCommitteesoftheBoard ........................................................................................................................ 17 AuditCommittee............................................................................................................................................................ 18 GovernanceandNominatingCommittee...................................................................................................................... 18 CompensationCommittee............................................................................................................................................. 19 ReviewofCompensationRisk ........................................................................................................................................ 20 CodeofConductandEthicsandCorporateGovernanceGuidelines............................................................................ 20 CompensationCommitteeInterlocksandInsiderParticipation..................................................................................... 20 DirectorCompensation.................................................................................................................................................. 21 MANAGEMENT 23 ExecutiveOfficers........................................................................................................................................................... 23 IndemnificationofOfficersandDirectors....................................................................................................................... 24 EQUITYCOMPENSATIONPLANINFORMATION 25 SECURITYOWNERSHIP 26 DirectorsandExecutiveOfficers..................................................................................................................................... 26 OwnersofMorethanFivePercentofOutstandingStock.............................................................................................. 27 COMPENSATIONDISCUSSIONANDANALYSIS 29 ExecutiveSummary........................................................................................................................................................ 29 ExecutiveCompensationPhilosophy&Objectives........................................................................................................ 36 ComponentsofOurExecutiveCompensationProgram................................................................................................ 36 ExecutiveCompensationProcess .................................................................................................................................. 45 OtherConsiderations ..................................................................................................................................................... 47 COMPENSATIONCOMMITTEEREPORT 49 Total of 02 pages in section