2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 72 ARAMARK PROXYSTATEMENTSUMMARY CURRENTBOARDOFDIRECTORS DIRECTOR AGE OCCUPATION COMMITTEE MEMBERSHIPS EricJ.Foss 59 Chairman,PresidentandChief ExecutiveOfficer,Aramark Pierre-Olivier Beckers-Vieujant 57 HonoraryPresidentandChief ExecutiveOfficer,DelhaizeGroup AuditandCorporatePractices NominatingandCorporateGovernance LisaG.Bisaccia 61 ExecutiveVicePresidentandChief HumanResourcesOfficer,CVSHealth Corporation CompensationandHumanResources NominatingandCorporateGovernance RichardW.Dreiling 64 FormerChairmanandChiefExecutive Officer,DollarGeneralCorporation CompensationandHumanResources Finance IreneM.Esteves 58 FormerChiefFinancialOfficer,Time WarnerCableInc. AuditandCorporatePractices Finance(Chair) DanielJ.Heinrich 61 FormerChiefFinancialOfficer,The CloroxCompany AuditandCorporatePractices(Chair) Finance SanjeevK.Mehra LeadDirector 58 FormerAdvisoryDirectorandVice Chairman,GlobalPrivateEquity, MerchantBankingDivision,Goldman, Sachs&Co. CompensationandHumanResources NominatingandCorporateGovernance (Chair) PatriciaB.Morrison 58 ExecutiveVicePresident,Customer SupportServices&ChiefInformation Officer,CardinalHealth,Inc. AuditandCorporatePractices Finance JohnA.Quelch 66 DeanandViceProvost,Universityof MiamiSchoolofBusiness Administration AuditandCorporatePractices NominatingandCorporateGovernance StephenI.Sadove 66 FormerChairmanandChiefExecutive Officer,SaksIncorporated CompensationandHumanResources (Chair) NominatingandCorporateGovernance CORPORATEGOVERNANCE Wearecommittedtostrongcorporategovernancepractices,whichpromotethelong-terminterestsofshareholders, strengthenfinancialintegrity,andfosterattractiveCompanyperformanceasdemonstratedbythefollowing: KeyGovernancePractices • 11DirectorNominees,ofWhich10AreIndependent • DiversityofSkills,ExperienceandBackgroundsofDirectorsandRobustDirectorNomineeSelectionProcess • AnnualElectionofAllDirectors • IndependentAudit,Compensation,NominatingandCorporateGovernanceandFinanceCommittees • AlignmentofDirectorandShareholderIntereststhroughDirectorEquityGrants,which,in2018,comprise62%of baseannualcompensation • IndependentLeadDirector • AnnualBoardSelf-AssessmentandBoardSkillsandExperienceAssessment • ExecutiveSessionsofIndependentDirectorsHeldatEachRegularlyScheduledBoardMeeting • AdoptionofProxyAccess 4 Total of 06 pages in section PROXYSTATEMENTSUMMARY 2017 BUSINESS PERFORMANCE HIGHLIGHTS Asweevaluateourcompensationapproachfortheyear,wenotethatAramarkreportedanotherrecordyearin2017. Wedelivereda14%increaseinconstantcurrencyadjustedearningspershare(“EPS”)(28%increaseinGAAPEPS), thefourthconsecutiveyearofdouble-digitadjustedEPSgrowth.Wealsoachievedimprovementsinnumerousother financialmetrics*,a30basispointimprovementinourleverageratioto3.5xanda36%increaseinourfreecashflow generation.Wecontinuedtoexecuteagainstafocusedstrategytoaccelerategrowth,activateproductivity,attract thebesttalentandachieveportfoliooptimization,andourstrongresultsthisyearreflectthesuccessofthisstrategy. *SeeAnnexAofthisproxystatementforareconciliationofnon-GAAPfinancialmeasurestoourresultsasreported underGAAP. TotalShareholderReturnof110%sinceourIPOvs.41%fortheS&P500.Ourcostandproductivityinitativeshave improvedadjustedoperatingincomeandmargins… TotalShareholderReturn—ARMK vs.S&P500 1 120% 100% 80% 60% 40% 20% 0% 3-Year SinceAramark’s IPO ARMK S&P500 AOIMargin 5.7% 6.2% 6.5% 6.6% 5.9% AdjustedOperating Income$M 2 1100 1000 900 800 700 600 2013 2014 2015 2016 2017 $781 ConstantCurrencyCAGR5% $852 $881 $952 $962 110% 41% 58% 28% …whichhaveacceleratedadjustedearningspersharegrowth,allowingustoincreasethefinancialflexibilityof theCompanyforthelongrun. 3.3 3.8 4.3 4.8 5.3 2013 2014 2015 2016 2017 AdjustedEarningsPerShare 2 NetDebt toCovenantAdjustedEBITDA 4 2013 2014 3 2015 2016 2017 1.00 1.25 1.50 1.75 2.25 2.00 ConstantCurrencyCAGR 12% $1.24 $1.45 $1.57 $1.74 $1.95 4.8x 4.3x 4.1x 3.8x 3.5x 1 Asoftheendoffiscal2017 2 Constantcurrencyasreportedineachrespectiveyear 3 The53 rd weekisestimatedtohaveincreasedFiscal2014adjustedEPSby$0.02 4 Asoftheendoftherelevantfiscalyear 3 AdjustedEarningsPerShare2NetDebttoCovenantAdjustedEBITDA PROXYSTATEMENTSUMMARY Proxy Statement Summary Thissummaryhighlightsinformationcontainedelsewhereinthisproxystatement,whichisfirstbeingsentormade availabletoshareholdersonoraboutDecember21,2017.Youshouldreadtheentireproxystatementcarefullybefore voting.FormoreinformationregardingtheCompany’s2017performance,pleasereviewAramark’sAnnualReport. MISSION & STRATEGY Aramark’smissionisto “Deliverexperiencesthatenrichandnourishlives.” Thismissionisanchoredinourcore valueswhichguideourexecutioninthemarketplace: • SellandServewithPassion. Placingclientsandconsumersatthecenterofallthatwedobylisteningand respondingtotheirneedswithservicefocusedonqualityandinnovation. • SetGoals.Act.Win! Maintainingacultureofaccountabilitywhereperformancemattersandexhibitingl adership thatachievesandexceedsexpectationsthroughourexecution. • Front-LineFirst. Providingourfront-lineemployeeswithtoolsandtrainingthatempowerthemtodeliver excellenceatthepointofservicetothousandsofconsumersandclientseveryday. • IntegrityandRespectAlways .ThehighestethicalstandardsarethecornerstoneoftheAramarkbrandandhelpus earnthetrustofourkeyconstituents. Westrivetoaccomplishthismissionthrougharepeatablebusinessmodelfoundedonfiveprinciplesofexcellence— selling,service,execution,marketingandoperations.Weoperateourbusinesswithsocialresponsibility,focusingon initiativesthatsupportourdiverseworkforce,advanceconsumerhealthandwellness,protectourenvironment,and strengthenourcommunities.AramarkisrecognizedasoneoftheWorld’sMostAdmiredCompaniesbyFORTUNE,as wellasanemployerofchoicebytheHumanRightsCampaignandDiversityInc. 2 TotalShareholderReturn-ARMKvs.S&P500 1 AdjustedOperatingIncome$M 2 AT&T, INC. ProxyStatementSummary Executive Compensation Highlights Over the last few years, we have made several key enhancements to our compensation programs to continue to improve the link between compensation and the Company’s business and talent strategies as well as the long- term interests of our stockholders: Replaced the three peer groups used to assessmarket-based compensation and benefits practiceswith a single peer group of 20 companies. Eliminated our historical practice of targeting ExecutiveOfficer pay at the 62nd percentile of themarket. Changed the long-term incentive pay mix from 50% performance shares and 50% restricted stock units to 75% performance shares and 25% restricted stock units. Changed long-term incentive performance measures from 75%Return on Invested Capital ( ROIC ) and 25%Relative Total StockholderReturn ( TSR ) to 100%ROIC with aRelative TSR payoutmodifier. Changed to formula-based short-term awards,with the ability to adjust final award payouts to align with performance. Started reportingROIC performance attainment for long-term awards for recently completed performance periods. PayandPerformanceataGlance* 2017ShortTermAward Metric Metric Weight Attainment Payout% 2017 Earnings per Share ( EPS ) 70% 94% 84% 2017 Free Cash Flow ( FCF ) 30% 103% 106% Weighted Average Payout 90% * See performance adjustments beginning on page 61 LongTermAward–PerformanceShareComponent 2015-2017 PerformancePeriod Metric Metric Weight Attainment Payout% 3-Year Return on Invested Capital ( ROIC ) 75% 7.75% 104% 3-Year Relative Total Stockholder Return ( TSR ) 25% Level 3 100% Weighted Average Payout 103% WhatWeDo ✔ MultiplePerformanceMetricsandTimeHorizons: Use multiple performance metrics and multi-year vesting timeframestodiscourageunnecessaryshort-termrisktaking. ✔ Stock Ownership and Holding Period Requirements: NEOs must comply with stock ownership guidelines and hold 25%ofpost-2015stockdistributionsuntilretirement. ✔ Dividend Equivalents: Paid at the end of performance periodonearnedperformancesharesonly. ✔ Annual Compensation-Related RiskReview: Performed annually to confirm that our programs do not encourage excessive risk taking and are not reasonably likely to have a materialadverseeffectontheCompany. ✔ Clawback Policy: The Company has a policy on the recovery of previously paid executive compensation for any fraudulentorillegalconduct. ✔ Severance Policy: Limits payments to 2.99 times salary andtargetbonus. WhatWeDon’tDo ✘ No “Single Trigger” Change in Control Provisions: No acceleratedvestingofequityawardsuponchangeincontrol. ✘ NoTaxGross-Ups: Noexcisetaxgross-uppaymentsexcept inextenuatingcircumstances. ✘ No Credit for Unvested Shares when determining stock ownershipguidelinecompliance. ✘ NoRepricingorBuy-Out ofunderwaterstockoptions. ✘ No Hedging or Short Sales of AT&T stock by executive officers. ✘ No Supplemental Executive Retirement Benefits for officerspromoted/hiredafter2008. ✘ No Guaranteed Bonuses: The Company does not guaranteebonuspayments. ✘ No Excessive Dilution: Our annual equity grants represent 1% of the total outstanding Common Stock each year. As of July 31, 2017, our total dilution was 1.0% of outstanding CommonStock. | 4 | www.att.com Total of 03 pages in section ProxyStatementSummary Director Nominees* Snapshot of 2018 Director Nominees Our Director nominees exhibit an effective mix of skills,experience, diversity, and perspectives Women 30% 54% 1-5 years 6-10 years 11-15 years >15 years 5 years or less People of color 23% Name Age Director Since PrincipalOccupation Randall L. Stephenson 57 2005 Chairman, CEO, and President, AT&T Inc. Samuel A. Di Piazza,Jr. 67 2015 Retired Global CEO, PricewaterhouseCoopers International Limited Richard W. Fisher 68 2015 Former President and CEO, Federal Reserve Bank of Dallas Scott T. Ford 55 2012 Member and CEO, Westrock Group, LLC Glenn H. Hutchins 62 2014 Co-Founder, North Island and Co-Founder, Silver Lake WilliamE. Kennard 61 2014 Former United States Ambassador to the European Union and former Chairman of the Federal Communications Commission Michael B. McCallister 65 2013 Retired Chairman and CEO, Humana Inc. Beth E. Mooney 63 2013 Chairman and CEO, KeyCorp Joyce M. Roché 70 1998 Retired President and CEO, Girls Inc. Matthew K. Rose 58 2010 Chairman and CEO, Burlington Northern Santa Fe, LLC Cynthia B. Taylor 56 2013 President and CEO, Oil States International, Inc. Laura D’Andrea Tyson 70 1999 Distinguished Professor of the Graduate School, Haas School of Business, and Chair of the Blum Center for Developing Economies Board of Trustees at the University of California at Berkley Geoffrey Y. Yang 59 2016 Founding Partner and Managing Director, Redpoint Ven ur s * All Director nominees are independent, except for Mr. Stephenson senior leadership/CEO experience industry/technology investment/private equity global business/affairs finance/public accounting government/regulatory 8 4 13 8 7 9 AT&T 2018 Proxy Statement | 3 | ProxyStatementSummary Proxy Statement Summary This summary highlights information contained elsewhere in this Proxy Statement. Please read the entire Proxy Statement carefully before voting. Attending the Annual Meeting of Stockholders If you plan to attend the meeting in person, please bring the admission ticket (attached to the proxy card or the Annual Meeting Notice) to the Annual Meeting. If you do not have an admission ticket or if you hold your shares in the name of a bank, broker, or other institution, you may obtain admission to the meeting by presenting proof of your ownership of AT&T stock as of February 27, 2018 (the record date). Agenda and Voting Recommendations Item Description BoardRecommendation Page 1 Election of Directors FOR each nominee 8 2 Ratification of Ernst & Young LLP as auditors for 2018 FOR 18 3 Advisory Approval of Executive Compensation FOR 19 4 Approve Stock Purchase and Deferral Plan FOR 20 5 Approve 2018 Incentive Plan FOR 23 6 Stockholder Proposal: Prepare Lobbying Report AGAINST 25 7 Stockholder Proposal: Modify Proxy Access Requirements AGAINST 27 8 Stockholder Proposal: Independent Chair AGAINST 29 9 Stockholder Proposal: Reduce Vote Required for Written Consent AGAINST 30 Corporate Governance Highlights We are committed to good corporate governance, which promotes the long-term interests of stockholders, strengthens Board and management accountability, and helps build public trust in the Comp ny. The Corp rate Governance section beginning on page 32 describes our governance framework, which includes the following high- lights: Independent Lead Director Adopted proxy access Stockholder right to call special meetings 12 independent Director nominees Independent Audit, Human Resources, and Corporate Governance and Nominating Committees Directors required to hold shares until they leave the Board Demonstrated Board refreshment and diversity Robust Board, Committee, and Director evaluation process Clawback policy in place Annual election of Directors by majority vote Long-standing commitment to sustainability Regular sessions of non-management Directors | 2 | www.att.com