2018 Guide to Effective Proxies

2.3 Table of contents | 61 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES S&P GLOBAL, INC. SALESFORCE.COM, INC. SBA COMMUNICATIONS CORPORATION SCHNITZER STEEL INDUSTRIES, INC. TABLE OF CONTENTS GeneralInformation 1 BoardofDirectorsandCorporateGovernance 7 EnhancedCorporateGovernanceEnvironment ..................................................... 8 CorporateGovernanceMaterials................................................................. 10 DirectorIndependence ........................................................................ 10 AdditionalInformationRegardingDirectorIndependence ............................................. 10 AnnualMeetingAttendance .................................................................... 11 LeadershipStructureoftheBoardofDirectors...................................................... 11 RoleofBoardofDirectorsinRiskOversight ........................................................ 12 SuccessionPlanning ........................................................................... 13 ProcessforIdentifyingandEvaluatingDirectorsandNominees......................................... 14 SpecificExperience,Qualifications,AttributesandSkillsofDirectors .................................... 15 DirectorNominees ............................................................................ 16 CommitteesoftheBoardofDirectors ............................................................. 28 NominatingandCorporateGovernanceCommittee.................................................. 28 AuditCommittee ............................................................................. 29 CompensationandLeadershipDevelopmentCommittee ............................................. 29 ExecutiveCommittee .......................................................................... 31 FinancialPolicyCommittee ..................................................................... 31 MembershipandMeetingsoftheBoardandItsCommittees .......................................... 32 CompensationCommitteeInterlocksandInsiderParticipation ......................................... 32 DirectorandOfficerIndemnificationandInsurance .................................................. 32 TransactionswithRelatedPersons ............................................................... 33 BoardandCommitteeSelf-Evaluations ............................................................ 34 ExecutiveSessions ............................................................................ 34 ExecutiveCompensationMatters 35 CompensationDiscussionandAnalysis .................................................. 35 CompensationCommitteeReport ............................................................... 67 ExecutiveCompensationTables ........................................................ 68 2017SummaryCompensationTable .............................................................. 68 2017GrantsofPlan-BasedAwardsTable .......................................................... 71 OutstandingEquityAwardsat2017FiscalYear-EndTable ............................................. 72 OptionExercisesandStockVestedin2017Table .................................................... 73 2017PensionBenefitsTable .................................................................... 74 2017Non-QualifiedDeferredCompensationTable .................................................. 76 RatioofChiefExecutiveOfficerPaytoEmployeeMedianPay .......................................... 77 PotentialPaymentsuponTerminationorChange-in-Control ........................................... 78 DirectorCompensation 84 2017DirectorCompensationTable ............................................................... 84 DirectorCompensationandGovernance .......................................................... 86 OwnershipofCompanyStock 88 CompanyStockOwnershipofManagement ....................................................... 88 CompanyStockOwnershipofCertainBeneficialOwners ............................................. 89 Section16(a)BeneficialOwnershipReportingCompliance 90 IndependentRegisteredPublicAccountingFirm’sFeesandServices 90 AuditCommitteeReport ....................................................................... 91 2018ProxyStatement i Total of 02 pages in section PROXY STATEMENT FOR 2018 ANNUAL MEETING OF STOCKHOLDERS TABLE OF CONTENTS AbouttheAnnualMeeting................................................................................ 1 Whoissolicitingmyvote? ............................................................................. 1 WhenandwherewilltheAnnualMeetingtakeplace? ........................................................ 1 WherecanIaccesstheproxymaterials? .................................................................. 1 HowmanyvotesdoIhave? ............................................................................ 1 WhatwillIbevotingon? ............................................................................... 1 WhataretheBoard’svotingrecommendations? ............................................................ 2 HowdoIvoteinadvanceoftheAnnualMeeting? ........................................................... 2 WhatdoIneedtobringtoattendandvoteattheAnnualMeeting? .............................................. 2 DirectorsandCorporateGovernance ...................................................................... 3 BoardandCorporateGovernanceHighlights ............................................................... 3 BoardMembers ..................................................................................... 4 BoardIndependence ................................................................................. 11 BoardLeadershipStructure ............................................................................ 11 BoardMeetingsandDirectorCommunications ............................................................. 11 CorporateGovernanceandBoardCommittees ............................................................. 12 CompensationofDirectors ............................................................................. 14 DirectorStockOwnershipRequirement ................................................................... 15 Sustainability,Equality,andPhilanthropyatSalesforce ....................................................... 16 ProtectingOurPlanet ................................................................................. 16 FosteringEmployeeSuccess ........................................................................... 16 GivingBack ........................................................................................ 16 SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters ................ 17 EquityCompensationPlanInformation ..................................................................... 19 MaterialFeaturesofthe2014InducementEquityIncentivePlan ................................................ 19 ALetterfromOurCompensationCommittee ................................................................ 20 CompensationDiscussionandAnalysis .................................................................... 21 NamedExecutiveOfficers.............................................................................. 21 ExecutiveSummary .................................................................................. 21 StockholderOutreach,BoardResponsiveness,ProgramEvolution .............................................. 23 CompensationPhilosophyandPractices .................................................................. 23 CompensationElementsandCompensationforNamedExecutiveOfficers........................................ 24 Compensation-SettingProcess ......................................................................... 29 SummaryInformationRegardingFiscal2019CompensationDecisions ........................................... 30 OtherCompensationPolicies ........................................................................... 30 Post-EmploymentCompensation ........................................................................ 31 TaxandAccountingConsiderations ...................................................................... 32 CompensationRiskAssessment .......................................................................... 33 CEOPayRatio ......................................................................................... 34 SummaryCompensationTable ........................................................................... 35 GrantsofPlan-BasedAwardsTable ....................................................................... 36 OptionExercisesandStockVestedTable .................................................................. 37 2018ProxyStatement i Total of 03 pages in section Contents PROXY MATERIALS Page 5 ProxySummary 13 ProxyStatement 13 QuestionsandAnswersabouttheseProxyMaterials andVoting 17 VotingSecuritiesandPrincipalShareholders 18 Section16(a)BeneficialOwnershipReporting Compliance 18 CertainTransactions COMPENSATION DISCUSSION AND ANALYSIS Page 31 Overview 31 ShareholderOutreach 32 LinkagetoCompanyPerformance 33 SummaryofExecutiveCompensationProgram 36 ExecutiveCompensationProcess 40 ElementsofCompensation PROXY VOTING MATTERS Page 19 Proposal1–ElectionofDirectors 62 Proposal2–AdvisoryResolutiononExecutive Compensation 64 Proposal3–AdvisoryVoteonFrequencyof ExecutiveCompensationAdvisoryVote 65 Proposal4–RatificationofSelectionof IndependentRegisteredPublicAccountingFirm CEO Letters to Shareholders .................. 1 Corporate Governance ....................... 23 Board Committees and Responsibilities .......... 24 Director Compensation ...................... 29 Compensation Committee Report ............... 52 Compensation of Executive Officers ............. 53 Audit Committee Report ...................... 67 Shareholder Proposals for 2019 Annual Meeting ................................ 69 4 | NoticeofAnnualMeetingofShareholdersand2017ProxyStatement TABLE OF CONTENTS Page PROXYSUMMARY............................................................... 1 QuestionsandAnswersAboutVotingattheAnnualMeetingandRelatedMatters ........ 3 PROPOSAL1–ELECTIONOFDIRECTORS ......................................... 8 NomineesForDirector......................................................... 9 DirectorsContinuinginOffice ................................................... 11 CORPORATEGOVERNANCE ..................................................... 13 BoardLeadershipStructure .................................................... 13 LeadIndependentDirector ..................................................... 13 CorporateGovernanceGuidelines ............................................... 13 BoardIndependence .......................................................... 14 Meetings .................................................................... 15 BoardCommittees ............................................................ 15 ExecutiveCompensationRecoupmentor“Clawback”Policy .......................... 18 CodeofEthics/RelatedPartyTransactionPolicy ................................... 19 RiskManagement ............................................................ 19 DirectorCompensation ........................................................ 20 EXECUTIVEOFFICERS........................................................... 23 COMPENSATIONDISCUSSIONANDANALYSIS ..................................... 25 ExecutiveSummary ........................................................... 25 CompensationPhilosophyandObjectives ......................................... 29 CompensationSettingProcess .................................................. 30 EvaluatingCompensationProgramDesignandRelativeCompetitivePosition ........... 30 ExecutiveCompensationComponentsand2017CompensationDecisions .............. 34 COMPENSATIONCOMMITTEEREPORT ............................................ 43 EXECUTIVECOMPENSATION ..................................................... 44 SummaryCompensationTable ................................................. 44 GrantsofPlan-BasedAwards ................................................... 45 NarrativeDisclosuretoSummaryCompensationTableandGrantsofPlan-BasedAwards Table ..................................................................... 46 OutstandingEquityAwardsatFiscalYear-End ..................................... 47 OptionExercisesandStockVested .............................................. 48 PotentialPaymentsUponTerminationorChange-in-Control .......................... 49 PROPOSAL2–RATIFICATIONOFINDEPENDENTREGISTEREDPUBLIC ACCOUNTANTS ............................................................... 55 PROPOSAL3–ADVISORYVOTEONEXECUTIVECOMPENSATION ................... 59 PROPOSAL4–APPROVALOFTHE2018EMPLOYEESTOCKPURCHASEPLAN......... 61 EquityCompensationPlanInformation ........................................... 65 SECURITYOWNERSHIP .......................................................... 66 OTHERMATTERS ............................................................... 69 Section16(a)BeneficialOwnershipReportingCompliance ........................... 69 ShareholderProposalsandDirectorNominationsfor2019AnnualMeeting ............. 69 ListofShareholdersEntitledtoVoteattheAnnualMeeting........................... 69 ExpensesRelatingtothisProxySolicitation ....................................... 70 CommunicationwithSBA’sBoardofDirectors ..................................... 70 AvailableInformation .......................................................... 70 ElectronicDelivery ............................................................ 71 Householding ................................................................ 71 APPENDIXA:GAAPTONON-GAAPRECONCILIATIONS .............................. A-1 APPENDIXB:2018EMPLOYEESTOCKPURCHASEPLAN ............................ B-1 SBACommunicationsCorporation | 2018ProxyStatement i