2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 54 CITRIX SYSTEMS, INC. COMPASS MINERALS INTERNATIONAL CSG SYSTEMS INTERNATIONAL, INC. DONNELLEY FINANCIAL SOLUTIONS Table of Contents ProxyHighlights 3 Part1CorporateGovernance 11 CorporateGovernanceCycle 11 IndependenceofMembersofOurBoard 11 BoardLeadershipStructure 11 ExecutiveSessionsofIndependentDirectors 12 ExecutiveSuccession 12 ConsiderationsGoverningDirectorNominations 12 PolicyGoverningDirectorAttendanceatAnnualMeetingsofShareholders 14 CodeofEthics 15 RiskOversight 15 Compensation-RelatedRiskAssessment 16 CorporateResponsibility 17 PolicyGoverningShareholderCommunicationswithourBoard 19 Part2BoardofDirectors 20 OurDirectors 20 MeetingsandMeetingAttendance 25 OurBoardCommittees 25 DirectorCompensation 29 Part3ExecutiveManagement 32 OurLeadershipTeam 32 Part4ExecutiveCompensation 35 CompensationDiscussionandAnalysis 35 PurposeofCompensationDiscussionandAnalysis 35 2017Highlights 35 ShareholderEngagement 39 ObjectivesandElementsofOurExecutiveCompensationPrograms 40 HowExecutivePayDecisionsAreMade 43 ComponentsofCompensation 47 IndividualExecutiveCompensationDecisions 57 ExecutiveChairmanandPresidentandChiefExecutiveOfficerCompensation 57 OtherNamedExecutiveOfficersCashCompensation–BaseSalaryandVariableCashCompensation 60 OtherNamedExecutiveOfficersEquity–Long-termIncentiveCompensation 61 OtherCompensationPoliciesandInformation 62 SummaryofExecutiveCompensation 64 GrantsofPlan-BasedAwards 66 OutstandingEquityAwards 68 StockVested 70 NonqualifiedDeferredCompensation 71 PotentialPaymentsuponTerminationorChangeinControl 72 ReportoftheCompensationCommitteeoftheBoardofDirectors 78 CompensationCommitteeInterlocksandInsiderParticipation 79 PayRatioDisclosure 79 RelatedPartyTransactionsPoliciesandProceduresandTransactionswithRelatedPersons 80 SecurityOwnershipofCertainBeneficialOwnersandManagement 81 CooperationAgreementwithElliott 82 Section16(a)BeneficialOwnershipReportingCompliance 83 TaxDeductibilityofExecutiveCompensation 83 SecuritiesAuthorizedforIssuanceunderEquityCompensationPlans 84 EquityCompensationPlans 84 Part5AuditCommitteeMatters 85 ReportoftheAuditCommittee 85 FeesPaidtoErnst&Young 86 AuditPartnerRotation 86 PolicyonAuditCommitteePre-ApprovalofAuditandPermissibleNon-AuditServicesofIndependentAuditor 86 Part6ProposalstobeVotedonattheMeeting 87 Proposal1:ElectionofDirectorNominees 87 Proposal2:RatificationofAppointmentofIndependentRegisteredPublicAccountingFirm 88 Proposal3:AdvisoryVotetoApprovetheCompensationofOurNamedExecutiveOfficers 89 Part7AdditionalInformation 90 OtherMatters 90 ShareholderProposals 90 ExpensesandSolicitation 90 DeliveryofDocumentstoShareholdersSharinganAddress 91 NoteRegardingForward-LookingStatements 91 CITRIXSYSTEMS,INC. | 2018PROXYSTATEMENT TABLE OF CONTENTS NoticeofAnnualMeetingofStockholders ProxyStatementSummary i QuestionsandAnswersabouttheAnnualMeeting 2 GOVERNANCE 6 Proposal1—ElectionofDirectors 6 2018NomineesforDirectorandContinuingDirectors 7 BoardofDirectorsandBoardCommittees 11 CorporateGovernance 15 2017Non-EmployeeDirectorCompensation 18 STOCKOWNERSHIP 21 StockOwnershipofCertainBeneficialOwnersandManagement 21 Section16(a)BeneficialOwnershipReportingCompliance 22 COMPENSATION 23 Proposal2—AdvisoryApprovalofExecutiveCompensation 23 CompensationDiscussionandAnalysis 24 2017NamedExecutiveOfficers 24 ExecutiveSummary 24 ExecutiveCompensationFrameworkandGovernance 26 ExecutiveCompensationDecisionsfor2017 31 2017TotalDirectCompensationComparedtoMarketCompensation 38 ExecutiveCompensationDecisionsfor2018 38 OtherCompensationPoliciesandPractices 38 CompensationCommitteeReport 41 ExecutiveCompensationTables 42 2017SummaryCompensationTable 42 2017GrantsofPlan-BasedAwards 44 OutstandingEquityAwardsat2017Year-End 46 OptionExercisesandStockVestedDuring2017 47 Non-QualifiedDeferredCompensationfor2017 48 TerminationofEmploymentandChangeinControlBenefits 49 2017PotentialPaymentsUponChangeinControlandOtherEvents 52 CEOPayRatio 53 AUDITMATTERS 54 Proposal3—RatificationofAppointmentofIndependentRegisteredAccountingFirm 54 ReportofourAuditCommitteeoftheBoardofDirectors 55 OtherMatters 56 AdditionalFilingsandInformation 56 Table of Contents Proposals 1 Proposal1:ElectionofDirectors 1 Proposal2:AdvisoryVotetoApproveExecutiveCompensation 3 Proposal3:RatificationofIndependentRegisteredPublicAccountingFirm 4 Questions and Answers About How to Vote Your Proxy 5 VotingInstructionsandRules 5 Company Information 8 AbouttheContinuingDirectors 8 TheBoard’sCommitteesandTheirFunctions 9 PolicyonAttendanceatStockholderMeetings 11 CorporateGovernance 11 Stock Ownership 15 BeneficialStockOwnershipofDirectors,ExecutivesandLargeStockholders 15 Compensation Discussion & Analysis 16 ExecutiveSummary 16 2017BusinessHighlights 16 Key2017CompensationActions 17 OurExecutiveCompensationProgram 17 ExecutiveCompensationGovernanceBestPractices 19 2017Say-On-PayVote 19 HowWeDetermineExecutiveCompensation 19 OurExecutiveCompensationPhilosophyandObjectives 19 OversightResponsibilitiesforExecutiveCompensation 20 PeerGroupSelectionandMarketData 20 2017NamedExecutiveOfficerCompensation 21 BaseSalary 21 AnnualIncentivePlan(AIP) 21 FinancialGoals 22 IndividualPerformance 22 Determinationof2017AnnualCashIncentiveAwards 22 Long-TermIncentiveProgram 23 2017Long-TermIncentiveAwards 24 PerformanceRestrictedStockAwards 24 Total of 02 pages in section TABLE OF CONTENTS Page Page Proxy Summary .......................................................................... i RoleofBenchmarking inDeterminingCompensation and PeerGroup................................................................................................ 25 QuestionsandAnswersAbout the2018Annual MeetingandVoting ................................................................ 1 RoleofBenchmarking inDeterminingCompensation............... 25 CorporateGovernanceandBoardofDirectors ................ 4 PeerGroupUsed forBenchmarking............................................... 25 Overview........................................................................................................... 4 2017Compensation..................................................................................... 26 Directors........................................................................................................... 4 2017AnnualBase Salaries.................................................................. 26 Director Independence............................................................................... 4 2017Results for IncentiveCompensationPrograms............... 26 CorporateGovernancePractices andDocuments........................... 4 2017AnnualPerformanceBonuses................................................ 26 MajorityVoting.............................................................................................. 4 2017DiscretionaryBonusAwards................................................... 28 Communicationswith theBoard............................................................. 5 2017 Long-Term IncentiveAwards................................................. 28 DirectorAttendance atBoardMeetings.............................................. 5 OtherConsiderations................................................................................... 30 AnnualMeetingAttendance..................................................................... 5 OtherBenefits and EmploymentAgreements............................ 30 BoardCommittees........................................................................................ 5 TaxDeductibilityof ExecutiveCompensation............................. 30 AuditCommittee.................................................................................... 6 Reportof theCompensationCommittee ........................ 31 CompensationCommittee................................................................. 6 ExecutiveCompensation Tables .......................................... 32 2017 SummaryCompensation Table.................................................... 32 DeterminingExecutiveOfficerCompensationandUseof IndependentCompensationConsultant............................. 6 2017GrantsofPlan-BasedAwards........................................................ 33 DeterminingNon-EmployeeDirector EquityAwards....... 6 Outstanding EquityAwards atDecember 31, 2017......................... 34 2017 StockVested........................................................................................ 37 RisksRelated toCompensationPolicies andPractices forAll Employees...................................................................... 7 2017Non-QualifiedDeferredCompensation.................................... 38 EmploymentAgreements.......................................................................... 39 CompensationCommittee Interlocks and Insider Participation................................................................................ 7 Nominating andCorporateGovernanceCommittee............... 7 EmploymentAgreementswithMr.Griess,Mr.Wiese, Mr.Kennedy, andMr. Shepherd................................................ 39 WhatWe Look for inDirectorNominees.............................. 7 PotentialPaymentsUpon Terminationof Employment................ 41 StockholderRecommendedDirectorCandidates.............. 8 Termination forDeath,Disability,orVoluntaryResignation.... 41 AnnualBoardMember EvaluationProcess......................................... 8 Termination forCause.......................................................................... 41 Risk andComplianceOversight............................................................... 8 TerminationWithoutCausePrior to aChangeofControl..... 41 Board Leadership Structure....................................................................... 9 TerminationWithoutCauseAfteraChangeofControl.................. 42 Codeof Ethics andBusinessConduct................................................... 9 CEOPayRatio ............................................................................. 43 OtherBoard Information............................................................................ 9 CompensationofDirectors ................................................... 10 Proposal2 –AdvisoryVote toApprove the CompensationofOurNamed ExecutiveOfficers ...... 44 2017DirectorCompensation................................................................... 10 Proposal 1 – ElectionofDirectors ....................................... 11 Nominees forClass IIIDirectors – Term to Expire in 2021............ 11 Proposal3–Approvalof theAmendmentand Restatementof theCSGSystems International, Inc. AmendedandRestated2005Stock IncentivePlan .... 45 Class IDirectors – Term to Expire in 2019........................................... 13 Class IIDirectors – Term to Expire in 2020.......................................... 15 BeneficialOwnershipofCommon Stock .......................... 17 Proposal 4 –Ratificationof theAppointmentof KPMG LLPAsOur IndependentRegisteredPublic Accounting Firm for Fiscal 2018 ..................................... 52 Principal Stockholders................................................................................. 17 Pre-approvalPolicies andProcedures.................................................. 52 Directors and ExecutiveOfficers.............................................................. 18 Reportof theAuditCommittee ........................................... 53 ShareOwnershipGuidelines..................................................................... 19 RelatedParty Transactions ..................................................... 54 Hedging andPledgingPolicy................................................................... 19 StockholderProposals ............................................................. 54 Section 16(a)BeneficialOwnershipReportingCompliance......... 19 Householding .............................................................................. 54 AnnualReporton Form10-KandOtherSEC Filings ..... 55 ExecutiveCompensation –Compensation Discussion andAnalysis ..................................................... 20 OtherMatters .............................................................................. 55 Executive Summary...................................................................................... 20 CompanyOverview andBusiness Strategy.................................. 20 AppendixA:Use andReconciliationsofNon-GAAP FinancialMeasures .............................................................. 56 OurOverall 2017Performance......................................................... 20 2017 ExecutiveCompensationHighlights.................................... 21 AppendixB:CSGSystems International, Inc.Amended andRestated2005Stock IncentivePlan ........................... 58 Pay-for-PerformanceCompensationProgram........................... 21 2017 Say-on-PayResults..................................................................... 21 SolidGovernance andCompensationPractices............................... 22 KeyCompensationGovernance Factors ...................................... 22 Determining ExecutiveCompensation.......................................... 23 Roleof the IndependentCompensationConsultant and Management..................................................................................... 23 CompensationMix................................................................................. 24