2018 Guide to Effective Proxies

2.3 Table of contents | 57 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES GOODYEAR TIRE & RUBBER COMPANY HERBALIFE LTD HOST HOTELS & RESORTS, INC. INTEL CORPORATION TABLE OF CONTENTS NoticeOf2018AnnualMeetingof ShareholdersandProxyStatement 01 CorporateGovernancePrinciplesand BoardMatters 02 BoardLeadershipStructure 03 Board’sRoleinRiskOversight 05 ConsiderationofDirectorNominees 05 DirectorSelectionGuidelines 05 IdentifyingandEvaluatingNomineesforDirector 06 BoardStructureandCommitteeComposition 07 AuditCommittee 07 CompensationCommittee 08 CommitteeonCorporateResponsibilityandCompliance 09 FinanceCommittee 09 GovernanceCommittee 09 ExecutiveCommittee 10 CorporateResponsibility 11 CommunicationswiththeBoard 11 BoardIndependence 12 Proposal1–ElectionofDirectors 19 Proposal2–AdvisoryVotetoApprovethe CompensationofOurNamedExecutive Officers 20 CompensationDiscussionandAnalysis 20 Introduction 20 CD&ATableofContents 21 ExecutiveSummary 27 CompensationPhilosophy 27 ComponentsofExecutiveCompensation 29 CompensationDecision-Making 31 RoleofCompensationConsultant 31 PeerGroupBenchmarkingofPrimaryCompensation 32 TargetSetting 34 AnnualCompensation 37 Long-TermCompensation 43 RetirementandOtherBenefits 46 CompensationPoliciesandPractices 48 CompensationCommitteeReport 49 ExecutiveCompensation 49 SummaryCompensationTable 51 SummaryofRealizedPayEarnedbyOurChiefExecutive Officerfor2015,2016and2017 52 GrantsofPlan-BasedAwards 54 OutstandingEquityAwardsatFiscalYear-End 56 OptionExercisesandStockVested 56 DefinedContributionPlanBenefits 56 PensionBenefits 60 NonqualifiedDeferredCompensation 61 PotentialPaymentsUponTerminationorChange-in-Control 67 DirectorCompensationTable 69 RisksRelatedtoCompensationPoliciesandPractices 69 PayRatio 70 BeneficialOwnershipofCommonStock 72 Section16(a)BeneficialOwnership ReportingCompliance 72 RelatedPersonTransactions 73 PrincipalAccountantFeesandServices 74 ReportoftheAuditCommittee 75 Proposal3–RatificationofAppointmentof IndependentRegisteredPublicAccounting Firm 76 GeneralInformation 76 SharesVoting 76 VoteRequired 77 AdjournedMeeting 77 VotingSharesHeldinStreetName Proxy Statement table of contents Part 1. Our annual general meeting of shareholders Informationconcerningsolicitationandvoting .... 1 Part 2. The board of directors Directorindependence ........................... 3 Boardmeetingsandattendance .................. 3 Boardleadership ................................ 4 Theboard’sroleinriskoversight ................. 4 2017Directorcompensation ..................... 5 Stockownershipguidelines ...................... 7 Shareholdercommunicationswiththeboardof directors ...................................... 8 Committeesoftheboard ........................ 8 Compensationcommitteeinterlocksandinsider participation .................................. 10 Part 3. Proposals to be voted on at the meeting Proposal1:Theelectionofdirectors .............. 11 Proposal2:Approve,onanadvisorybasis,the Company’sexecutivecompensation ............ 22 Proposal3:Approvethenamechangeofthe Companyfrom“HerbalifeLtd.”to“Herbalife NutritionLtd.” ................................. 24 Proposal4:Approvetheamendmentand restatement oftheCompany’sAmendedand Restated MemorandumandArticlesof AssociationintheformattachedasAnnexA .... 25 Proposal5:Effectatwo-for-onestocksplitofthe Company’sCommonShares.................... 26 Proposal6:Ratificationoftheappointmentofthe independentregistered publicaccountants...... 28 Auditcommitteereport ........................ 28 Feestoindependentregistered public accountantsforfiscal2017and2016 ......... 29 Pre-approval policy ............................ 29 Part 4. Executive compensation Compensationdiscussionandanalysis ............ 30 Executivesummaryofourcompensation program .................................... 30 Financialperformanceforpurposesofour annualincentiveprogram .................... 30 Strategicaccomplishments ..................... 31 Compensationprogramthatalignspayand performance ................................ 31 Sayonpay .................................... 33 Thingswedo.................................. 34 Thingswedon’tdo ............................ 34 2018compensationchanges ................... 35 Executivecompensationprogramobjectives ....... 35 Purposeofcompensationelements ............... 38 EstablishingCEOcompensation .................. 38 Roleofexecutiveofficersinexecutive compensationdecisions ....................... 38 Basesalaries .................................... 39 Annualincentiveawards&longterm incentiveprogram ............................. 39 Annualincentiveawards ....................... 39 Pre-transitionannualincentiveopportunities— January1,2017throughMay31,2017 ........ 39 Post-transitionannualincentiveopportunities— June1,2017throughDecember31,2017 ..... 40 Targetsandawarddetermination ............... 40 2017Annualincentiveplanperformance targets ..................................... 41 2017Annualincentiveopportunitiesbyexecutive andtarget .................................. 42 2017Annualincentiveawardcalculation ........ 43 Long-termincentiveawards .................... 44 Equityawardgrantpolicy ........................ 46 Hedging ........................................ 46 Pledging ........................................ 46 ClawbackPolicy ................................. 46 Benefitsandperquisites .......................... 46 Employmentandseveranceagreements .......... 47 Compensationadvisor ........................... 47 PeerGroup ...................................... 48 Taximplications ................................. 49 Compensationcommitteereport ................. 49 Tableofcontents iii TABLEOFCONTENTS 7 2018PROXYSTATEMENTHIGHLIGHTS 12 PROPOSAL1:ELECTIONOFDIRECTORS 18 DirectorSkills,Experience,andBackground 20 DirectorTenure 21 CORPORATEGOVERNANCE 21 BoardLeadershipandStructure 22 TheBoard’sRoleinRiskOversightatIntel 23 DirectorIndependenceandTransactions ConsideredinIndependenceDeterminations 25 CorporateGovernanceGuidelines 25 DirectorAttendance 25 BoardResponsibilitiesandCommittees 29 CORPORATERESPONSIBILITYANDINVESTOR ENGAGEMENT 30 CommunicationsfromStockholderstoDirectors 31 DIRECTORCOMPENSATION 32 DirectorCompensationforFiscalYear2017 34 OutstandingEquityAwardsforDirectors 35 CERTAINRELATIONSHIPSANDRELATED TRANSACTIONS 36 CODEOFCONDUCT 37 SECURITYOWNERSHIPOFCERTAINBENEFICIAL OWNERSANDMANAGEMENT 39 PROPOSAL2:RATIFICATIONOFSELECTIONOF INDEPENDENTREGISTEREDPUBLIC ACCOUNTINGFIRM 40 Ernst&YoungLLP’sFeesfor2017and2016 41 REPORTOFTHEAUDITCOMMITTEE 43 PROPOSAL3:ADVISORYVOTETOAPPROVE EXECUTIVECOMPENSATION 44 COMPENSATIONDISCUSSIONANDANALYSIS 44 ExecutiveSummary 44 ListedOfficerPay 45 BusinessPerformanceandPay 46 InvestorEngagementandthe2017“Say-on-Pay” Vote 46 2017CompensationofOurListedOfficers 46 PerformanceandIncentivePayfor2017 49 AlignmentofPerformanceandCompensation 50 Intel’sCompensationBestPractices 50 2017CashCompensation 54 2017AnnualEquityAwards 56 OtherAspectsofOurExecutiveCompensation Programs 56 Intel’sCompensationFramework 57 ExternalCompetitiveConsiderationsfor2017 58 Post-EmploymentCompensationArrangements 58 PersonalBenefits 59 OtherAgreements 59 CorporateOfficerStockOwnershipGuidelines 59 IntelPoliciesRegardingDerivativesor“ShortSales” 60 IntelPoliciesRegardingClaw-Backs 60 TaxDeductibility 61 REPORTOFTHECOMPENSATIONCOMMITTEE 62 EXECUTIVECOMPENSATION 62 2017SummaryCompensationTable 65 GrantsofPlan-BasedAwardsinFiscalYear2017 66 2017OperationalGoalsforIncentiveCash Programs 67 StockOptionExercisesandStockVestedin FiscalYear2017 68 OutstandingEquityAwardsatFiscalYear-End2017 69 PensionBenefitsforFiscalYear2017 70 Non-QualifiedDeferredCompensationforFiscal Year2017 71 EmploymentContractsandChangeinControl Arrangements 71 OtherPotentialPost-EmploymentPayments 71 VoluntaryTermination/Retirement 72 DeathorDisability 74 CEOPAYRATIO 75 EQUITYCOMPENSATIONPLANINFORMATION 76 STOCKHOLDERPROPOSALS 76 Proposal4:StockholderProposalonwhetherto allowStockholderstoActbyWrittenConsent 78 Proposal5:StockholderProposalonwhetherthe ChairmanoftheBoardshouldbeanIndependent Director 81 Proposal6:StockholderProposalRequestinga PoliticalContributionsCost-BenefitAnalysis Report 84 ADDITIONALMEETINGINFORMATION 86 OTHERMATTERS 88 STOCKHOLDERSSHARINGTHESAMELAST NAMEANDADDRESS A-1 APPENDIXA-NON-GAAPFINANCIALMEASURES 2018PROXYSTATEMENT TABLEOFCONTENTS TABLEOFCONTENTS PROXY STATEMENT TABLE OF CONTENTS Page PROXYSUMMARY ......................................................................... 1 ATTENDANCEANDVOTINGMATTERS ....................................................... 6 CORPORATEGOVERNANCEANDBOARDMATTERS .......................................... 10 CorporateGovernanceandCodeofBusinessConductandEthics ............................... 10 CommunicationswithDirectors ............................................................ 10 StockholderOutreachandEngagement ..................................................... 10 BoardLeadership........................................................................ 11 IndependenceofDirectors ................................................................ 12 TheBoard’sRoleinRiskOversight ......................................................... 12 PoliticalContributionPolicyandTradeAssociationMemberships ................................ 13 MeetingsandCommitteesoftheBoard ...................................................... 14 RoleoftheCompensationConsultant ....................................................... 16 Compensation-RelatedRisks .............................................................. 17 CompensationPolicyCommitteeInterlocksandInsiderParticipation .............................. 17 ProcessforSelectingDirectors ............................................................ 18 StockholderNominationsandRecommendationofDirectorCandidates ........................... 18 PROPOSALSREQUIRINGYOURVOTE ........................................................ 19 ProposalOne—ElectionofDirectors ........................................................ 19 VotingStandard ........................................................................ 19 BoardSkills,Qualifications,DiversityandTenure ............................................. 19 DirectorNominees ...................................................................... 20 Summaryof2018DirectorQualificationsandExperience ....................................... 27 ProposalTwo—AdvisoryResolutiontoApproveExecutiveCompensation ......................... 28 ProposalThree—StockholderProposalonAnnualSustainabilityReport ........................... 29 COMPENSATIONDISCUSSIONANDANALYSIS ................................................ 32 2017CompanyPerformanceHighlights...................................................... 32 Resultsof2017AdvisoryVote ............................................................. 33 OurCompensationProgram ............................................................... 33 2017CompensationResults ............................................................... 40 RiskConsiderations ...................................................................... 49 AdditionalPoliciesandBenefits ............................................................ 50 i Total of 02 pages in section