2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 58 JOHNSON & JOHNSON KEYCORP MANPOWERGROUP MCKESSON CORPORATION Table of Contents AMESSAGEFROMOURLEADDIRECTOR ...................................................................................... 5 2018PROXYSTATEMENT–SUMMARY ............................................................................................ 8 VotingOverview ................................................................................................................................ 8 BOARDOFDIRECTORS Item1:ElectionofDirectors ............................................................................................................... 11 Nominees .......................................................................................................................................... 11 DirectorNominationProcessandBoardComposition ...................................................................... 17 BoardLeadershipStructure .............................................................................................................. 19 DirectorIndependence ...................................................................................................................... 21 ShareholderEngagement ................................................................................................................. 23 RiskOversight ................................................................................................................................... 25 AdditionalGovernanceFeatures ....................................................................................................... 27 BoardCommittees ............................................................................................................................ 29 BoardMeetingsandProcesses ........................................................................................................ 32 RelatedPersonTransactions ............................................................................................................ 33 StockOwnershipandSection16Compliance .................................................................................. 35 DirectorCompensation ..................................................................................................................... 37 COMPENSATIONOFEXECUTIVES Item2: AdvisoryVotetoApproveNamedExecutiveOfficerCompensation ................................. 40 CompensationCommitteeReport ......................................................................................................... 41 CompensationDiscussionandAnalysis ................................................................................................ 42 2017PerformanceandCompensation ............................................................................................. 43 ExecutiveCompensationPhilosophy ................................................................................................ 56 ComponentsofExecutiveCompensation ......................................................................................... 57 PeerGroupsforPayandPerformance ............................................................................................. 61 CompensationDecisionProcess ...................................................................................................... 63 GovernanceofExecutiveCompensation .......................................................................................... 64 AdditionalInformationConcerningExecutiveCompensation ........................................................... 66 ExecutiveCompensationTables ........................................................................................................... 68 SummaryCompensationTable ......................................................................................................... 68 GrantsofPlan-BasedAwards ........................................................................................................... 73 OutstandingEquityAwardsatFiscalYear-End ................................................................................. 76 OptionExercisesandStockVested .................................................................................................. 79 PensionBenefits ............................................................................................................................... 80 Non-QualifiedDeferredCompensation ............................................................................................. 81 PotentialPaymentsUponTermination .............................................................................................. 83 RatiooftheAnnualTotalCompensationoftheMedian-PaidEmployeetotheCEO ........................ 85 2018ProxyStatement-6 Total of 02 pages in section Table of Contents PROPOSALONE: ElectionofDirectors 1 DirectorRecruitmentandQualifications ............. 1 ElectionProcess ................................ 3 2018NomineesforDirector ....................... 3 TheBoardofDirectorsandItsCommittees 11 BoardLeadershipStructure ....................... 11 BoardandCommitteeResponsibilities .............. 12 BoardOversightofRisk .......................... 15 OversightofCompensation-RelatedRisks........... 15 DirectorIndependence ........................... 16 RelatedPartyTransactions ....................... 16 ShareholderEngagement ........................ 17 DirectorEducation .............................. 18 CommunicationwiththeBoard .................... 18 CorporateGovernanceDocuments 19 CorporateGovernanceGuidelines ................. 19 CodeofEthics.................................. 19 StatementofPoliticalActivity...................... 19 OwnershipofKeyCorpEquitySecurities 20 ExecutiveOfficerandDirectorEquity OwnershipGuidelines ........................... 22 PledgingandSpeculativeTradingof KeyCorpSecurities.............................. 22 Section16(a)BeneficialOwnership ReportingCompliance ........................... 22 EquityCompensationPlanInformation.............. 22 CompensationDiscussionandAnalysis 24 TableofContents ............................... 24 Overviewof2017Performance .................... 24 ObjectivesofOurCompensationProgram ........... 25 ElementsofOurPayProgram..................... 27 TotalPayofOurNamedExecutiveOfficers ......... 31 AlignmentofPayandPerformance ................ 33 OtherElementsofCompensation .................. 35 HowWeMakePayDecisions ..................... 36 TaxandAccountingTreatmentofExecutive Compensation.................................. 38 CompensationandOrganizationCommitteeReport 39 CompensationofExecutiveOfficersandDirectors 40 2017SummaryCompensationTable ............... 40 2017GrantsofPlan-BasedAwardsTable ........... 42 2017OutstandingEquityAwardsatFiscal Year-EndTable................................. 43 2017OptionExercisesandStockVestedTable ...... 46 2017PensionBenefitsTable...................... 47 2017NonqualifiedDeferredCompensationTable ..... 48 PotentialPaymentsUponTerminationor ChangeofControl .............................. 49 2017Post-TerminationTables .................... 50 PayRatio...................................... 52 Directors’Compensation ......................... 53 2017DirectorCompensationTable ................ 54 AuditMatters 56 Ernst&Young’sFees............................ 56 Pre-ApprovalPoliciesandProcedures .............. 56 AuditCommitteeReport 57 PROPOSALTWO: RatificationofIndependentAuditor 58 PROPOSALTHREE: AdvisoryApprovalof KeyCorp’sExecutiveCompensation 59 PROPOSALFOUR: ShareholderProposalSeekingto ReducetheOwnershipThresholdtoCallaSpecial ShareholderMeeting 60 BoardofDirectorsRecommendationandStatement .. 61 GeneralInformationabouttheAnnualMeeting 62 MatterstoBePresented ......................... 62 HowVotesWillBeCounted....................... 62 RevokingaProxy ............................... 62 CostofProxySolicitation ......................... 62 AttendingtheAnnualMeeting ..................... 62 AdditionalInformation 64 ProxyStatementProposalsforthe2019Annual MeetingofShareholders ......................... 64 OtherProposalsandDirectorNominationsforthe 2019AnnualMeetingofShareholders .............. 64 EliminatingDuplicativeProxyMaterials ............. 64 AnnualReport .................................. 64 v TABLE OF CONTENTS ProxySummary 1 Item1. ElectionofDirectors 8 Nominees 8 TheBoard,CommitteesandMeetings 12 DirectorCompensation 16 CorporateGovernance 19 Item2. RatificationofAppointmentofDeloitte&ToucheLLPastheCompany’s IndependentRegisteredPublicAccountingFirmforFiscalYear2019 26 AuditCommitteeReport 27 PrincipalShareholders 28 SecurityOwnershipofCertainBeneficialOwners 28 SecurityOwnershipofDirectorsandExecutiveOfficers 29 ExecutiveCompensation 30 CompensationDiscussionandAnalysis 31 CompensationCommitteeReportonExecutiveCompensation 53 CompensationCommitteeInterlocksandInsiderParticipation 53 2018SummaryCompensationTable 54 2018GrantsofPlan-BasedAwardsTable 56 2018OutstandingEquityAwardsTable 58 2018OptionExercisesandStockVestedTable 59 2018PensionBenefitsTable 60 2018NonqualifiedDeferredCompensationTable 62 ExecutiveEmploymentAgreements 64 PotentialPaymentsuponTerminationorChangeinControl 69 Item3. AdvisoryVoteonExecutiveCompensation 76 Item4. ShareholderProposalonDisclosureofLobbyingActivitiesandExpenditures 77 Item5. ShareholderProposalonAcceleratedVestingofEquityAwards 79 Item6. ShareholderProposalonPolicytoUseGAAPFinancialMetricsforPurposesofDetermining ExecutiveCompensation 81 Item7. ShareholderProposalontheOwnershipThresholdforCallingSpecialMeetingsofShareholders 84 AdditionalMatters 86 ProxiesandVotingattheAnnualMeeting 86 OtherMatters 89 AppendixA SupplementalInformation:GAAPtoNon-GAAPReconciliation A-1 TableofContents Table of Contents CORPORATEGOVERNANCEDOCUMENTS 2 SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERS 3 PROPOSAL1.ELECTIONOFDIRECTORS 4 DirectorNomineeBiographies 5 BoardIndependenceandRelatedPartyTransactions 12 MeetingsandCommitteesoftheBoard 13 BoardCompositionandQualificationsofBoardMembers 16 BoardDiversityandTenure 17 OtherInformation 17 BoardLeadershipStructure 17 BoardOversightofRisk 18 CompensationConsultant 19 BENEFICIALOWNERSHIPOFDIRECTORSANDEXECUTIVEOFFICERS 21 COMPENSATIONDISCUSSIONANDANALYSIS 23 REPORTOFTHEEXECUTIVECOMPENSATIONANDHUMANRESOURCESCOMMITTEEOFTHEBOARDOF DIRECTORS 51 EXECUTIVECOMPENSATIONANDHUMANRESOURCESCOMMITTEEINTERLOCKSANDINSIDER PARTICIPATION 51 COMPENSATIONPOLICIESANDPRACTICESASTHEYRELATETORISKMANAGEMENT 52 COMPENSATIONTABLES 53 SummaryCompensationTable 53 AllOtherCompensationin2017 54 GrantsofPlan-BasedAwardsin2017 55 CompensationAgreementsandArrangements 55 2017AnnualIncentiveAwards 56 GrantsUnderthe2011EquityIncentivePlan 58 OutstandingEquityAwardsatDecember31,2017 59 OptionExercisesandStockVestedin2017 61 NonqualifiedDeferredCompensationin2017 62 TerminationofEmploymentandChangeofControlArrangements 64 Post-TerminationandChangeofControlBenefits 67 DirectorCompensationfor2017 72 Non-EmployeeDirectorStockOwnershipGuidelines 75 CEOPAYRATIO 76 AUDITCOMMITTEEREPORT 77 PROPOSAL2.RATIFICATIONOFINDEPENDENTAUDITORS 80 PROPOSAL3.ADVISORYVOTEONAPPROVALOFTHECOMPENSATIONOFNAMEDEXECUTIVEOFFICERS 81 SUBMISSIONOFSHAREHOLDERPROPOSALS 83 SECTION16(a)BENEFICIALOWNERSHIPREPORTINGCOMPLIANCE 83 OTHERVOTINGINFORMATION 83 OTHERMATTERS 83 APPENDIXA-1 A-1