2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 66 WEYERHAEUSER COMPANY WILLIAMS COMPANIES, INC. XCEL ENERGY YUM! BRANDS, INC. TABLE OF CONTENTS Notice of the Annual Meeting of Shareholders 1 Proxy Summary 2 Corporate Governance at Weyerhaeuser 7 Independent Board of Directors 7 Board Operation and Leadership 7 Risk Oversight 7 Succession Planning 8 Shareholder Engagement 8 Sustainability and Corporate Citizenship 8 Code of Ethics 9 Executive and Director Share Ownership Requirements 9 Clawback Policy 9 Anti-Hedging and Trading Policy 9 Shareholder Rights 9 Related Party Transactions Review and Approval Policy 10 Board Composition and Consideration of Director Nominees 10 Communication with Our Board 12 Item1—Election of Directors 13 Directors’ Core Competencies 13 Nominees for Election 14 Committees of the Board 17 Board and Committee Meetings in 2017 19 Directors’ Compensation 19 Annual Meeting Attendance 20 Item2—ProposaltoApprove,onanAdvisoryBasis, theCompensationoftheNamedExecutiveOfficers 21 Executive Compensation 22 Compensation Discussion and Analysis (CD&A) 22 Executive Summary 23 Compensation Philosophy and Principles 24 Total Compensation 25 Compensation Mix 26 Performance Management 26 Forms of Long-Term Incentive Compensation 27 Market Positioning 27 Peer Group 28 Compensation Components – Determination of Compensation 29 Other Factors Affecting Compensation 36 Management’s Role in the Executive Compensation Process 37 Independent Compensation Consultant 37 Limitation on Deductibility of Executive Compensation 37 Compensation Tables 38 Summary Compensation Table 38 All Other Compensation 39 Grants of Plan-Based Awards for 2017 40 Outstanding Equity Awards at 2017 Fiscal Year End 41 Option Exercises and Stock Vested in 2017 42 Pension Benefits 43 Non-Qualified Deferred Compensation 45 Potential Termination Payments 45 Termination Payments Tables 47 Compensation Committee Report 48 Compensation Committee Interlocks and Insider Participation 49 Risk Analysis of our Compensation Programs 49 CEO Pay Ratio 49 Item3—Ratification of Selection of Independent Registered Public Accounting Firm 50 Audit Committee Report 51 Stock Information 52 Beneficial Ownership of Common Shares 52 Section 16(A) Beneficial Ownership Compliance 53 Information About Securities Authorized for Issuance Under Our Equity Compensation Plans 53 Future Shareholder Proposals and Director Nominations 54 Information About the Meeting 55 Attending the Annual Meeting 55 Voting Matters 55 Other Matters 56 Appendix A Reconciliation of Non-GAAP performance measures to GAAP A-1 Table of Contents QUESTIONSANDANSWERSABOUTTHEANNUALMEETINGANDVOTING 1 CORPORATEGOVERNANCEANDBOARDMATTERS 5 CorporateGovernance .............................................................. 5 BoardandCommitteeStructureandMeetings .......................................... 10 PROPOSAL1:ELECTIONOFDIRECTORS 15 SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENT 27 SECTION16(a)BENEFICIALOWNERSHIPREPORTINGCOMPLIANCE 29 COMPENSATIONDISCUSSIONANDANALYSIS 30 OurCommitmenttoPayforPerformance .............................................. 30 2017BusinessOverview ............................................................. 33 2017ProjectsandMilestones ........................................................ 34 CompensationSummary ............................................................ 35 ObjectiveofOurCompensationPrograms .............................................. 35 OurPayPhilosophy ................................................................. 36 OurCommitmenttoPayforPerformance .............................................. 37 2017ComparatorGroup ............................................................. 37 OurPaySettingProcess ............................................................. 39 HowWeDeterminetheAmountforEachTypeofPay ..................................... 40 BasePay.......................................................................... 40 AnnualCashIncentives.............................................................. 40 Long-TermIncentives ............................................................... 45 Benefits .......................................................................... 47 AdditionalComponentsofOurExecutiveCompensationProgram .......................... 48 MitigatingRisk ..................................................................... 49 COMPENSATIONANDMANAGEMENTDEVELOPMENTCOMMITTEEREPORTONEXECUTIVE COMPENSATION 52 COMPENSATIONANDMANAGEMENTDEVELOPMENTCOMMITTEEINTERLOCKSANDINSIDER PARTICIPATION 52 TheWilliamsCompanies,Inc.–2018ProxyStatement i Total of 02 pages in section Table of Contents PROXY STATEMENT 1 QUESTIONS AND ANSWERS ABOUT THE MEETING AND VOTING 1 GOVERNANCE OF THE COMPANY 6 Director Biographies .......................................................................... 10 Director Compensation ....................................................................... 15 MATTERS REQUIRING SHAREHOLDER ACTION 26 ITEM1 Election of Directors (Item 1 onthe Proxy Card) ........................................... 26 ITEM2 Ratificationof IndependentAuditors(Item 2 onthe Proxy Card) .............................. 27 ITEM3 Advisory Vote onExecutive Compensation (Item 3 onthe Proxy Card) ......................... 28 STOCK OWNERSHIP INFORMATION 30 SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE 32 EXECUTIVE COMPENSATION 32 Compensation Discussionand Analysis .......................................................... 32 Summary Compensation Table ................................................................ 53 All OtherCompensation Table ................................................................. 54 Grantsof Plan-Based Awards ................................................................. 55 OutstandingEquity Awards at Year-End ......................................................... 57 OptionExercises and Stock Vested ............................................................. 59 PensionBenefits ............................................................................ 60 Nonqualified Deferred Compensation ........................................................... 62 PotentialPayments Upon Terminationor Change in Control ......................................... 65 CEO Pay Ratio ............................................................................. 67 EQUITY COMPENSATION PLAN INFORMATION 69 AUDIT COMMITTEE REPORT 71 ADDITIONAL INFORMATION 74 APPENDIX A: Reconciliation of Adjusted Operating Profit Growth A-1 ProxyStatement Table of Contents Noticeof2018AnnualShareholders’Meeting ProxySummary 1 CorporateGovernance 7 LeadershipStructureandRoles 9 RiskOversight 10 BoardCommittees 11 Practices 13 BoardPlanningandComposition 15 BoardStatistics 16 GoverningDocuments 17 ProposalNo.1ElectionofDirectors 18 Nominees 19 BeneficialOwnershipofCertainShareholders 25 ShareOwnershipofDirectorsandOfficers 25 LargestOwnersofXcelEnergy’sShares 26 ProposalNo.2AdvisoryVoteonExecutive Compensation 27 RecommendationandBackground 27 CompensationDiscussionandAnalysis 28 Highlights 29 2017Performance 29 2017Compensation 29 CompensationPhilosophy 29 ExecutiveCompensationPractices 30 Impactof2017SayonPayVote 30 WhatWePayandWhy 31 EstablishingTargetCompensation 31 PeerGroup 31 ExecutiveCompensationElements 32 MixofTotalCompensation 33 OverviewofTargetTotalCompensationfor2017 33 BaseSalary 33 AnnualIncentive 34 Long-termIncentives 35 RetirementandDeferredCompensationBenefits 37 AdditionalCompensationProgramFeaturesandPolicies 37 SeverancePolicy 37 EmploymentContracts 37 StockOwnershipRequirements 37 EquityGrantPractices 38 HedgingandPledging 38 Recoupment 38 RiskAssessment 39 DeductibilityofExecutiveCompensationunderIRC Section162(m) 39 ReportoftheCompensationCommittee 40 ExecutiveCompensationTables 41 CEOPayRatio 54 DirectorCompensation 55 AnnualEquityGrant 55 DirectorCompensationTable 55 DirectorStockOwnershipGuidelines 56 StockEquivalentProgram 56 ProposalNo.3RatificationoftheAppointmentof Deloitte&ToucheLLPasXcelEnergyInc.’s IndependentRegisteredPublicAccountingFirm for2018 57 ReportoftheAuditCommittee 58 IndependentRegisteredPublicAccountingFirm 59 AuditandNon-AuditFees 59 AuditCommitteePre-ApprovalPolicies 59 AdditionalInformation 60 RelatedPersonTransactions 60 Section16(a)BeneficialOwnershipReportingCompliance 60 QuestionsandAnswersabouttheProxyMaterials andtheAnnualMeeting 61 ExhibitA A-1 DrivingDirections InsideBackCover AnnualMeetingGuidelines BackCover