2018 Guide to Effective Proxies

2.4 Proxy summary | 73 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES ATLAS AIR WORLDWIDE HOLDINGS, INC. PROXYSUMMARY • Focusedonmaintainingahealthycashposition—$305.5million 2 atyear-end2017 • Maintainedauthoritytorepurchasesharesupto$25million In May 2017, we issued $289.0 million aggregate principal amount of convertible senior notes that mature on June1,2024.Thenetproceedsoftheofferingwereusedtorepayhigher-costrevolvingcreditfacilityborrowings; enhance business and financial flexibility; support long-term growth; fund the cost of convertible note hedge transactions (after such cost was partially offset by proceeds to the Company from the sale of warrants); and for generalcorporatepurposes. Shareholder Outreach, Engagement and Say-on-Pay Responsiveness We have engaged in extensive ongoing shareholder outreach over the past seven years to better understand shareholderperspectivesandconsiderideasforimprovementsto,amongotherthings,ourcorporategovernance, sustainability and executive compensation practices, as well as our business strategy and performance, capital allocation strategy and public disclosures. This year, we again engaged in a particularly robust shareholder outreach program, reaching out to shareholders representing approximately 75% of our outstanding shares and engaging in discussions with those representing about one-half of our outstanding shares. We have made significantrecentchangestoourgovernanceandexecutivecompensationpracticesinresponsetoinsightsgained duringthesediscussions. In response to our 2017 Say-on-Pay result, the Board and its Compensation Committee undertook a particularly robust and multifaceted outreach program during the balance of 2017. These extra efforts includedparticipationbyamemberofourCompensationCommitteeinmultiplein-personandtelephonic meetings with shareholders and resulted in specific shareholder feedback prompting tangible compensation and governance enhancements. All committee members also convened in a number of extra, non-regularly-scheduled meetings and discussions and considered and provided analysis focused onSay-on-Payresponsiveness. During all shareholder outreach meetings, AAWW sought input on proactively developed changes to our pay program, as well as emerging topics of expressed shareholder interest, such as environmental, social and governance issues (“ESG”). We received many supportive and positive comments on the Company’s direction (both from a business growth and governance perspective), the proposed pay program changes and our board rotation/refreshment and outlook, even from several shareholders who voted against Say-on-Pay or individual directorsin2017. As a result of specific feedback from shareholders, we implemented a number of key changes to our compensationprogramandpracticestospecificallyaddressourrecentSay-on-Payoutcomes,andmade changes to our governance practices in response to topics of importance raised by shareholders. Examplesoffeedbackreceivedarealsoincludedbelow. 2 Includescash,cashequivalents,short-terminvestmentsandrestrictedcash. iii Total of 08 pages in section PROXYSUMMARY • Also in 2017, we completed agreements to operate 747 freighters for several new customers, including AsianaCargo,CathayPacificCargo,DHLGlobalForwarding,andNipponCargoAirlines. Growth/Results Our financial and operating performance in 2017 reflected the leadership and strength of our ACMI and Charter businesses, the growth and annuity-like contribution of our Dry Leasing operations, ongoing efficiency and productivityinitiatives,andadisciplinedbalancesheetfocus. In addition to our focus on express, e-commerce and growing global markets, our results in 2017 benefited from thefirstfullyearofcontributionfromSouthernAirandourserviceforAmazon,whichwasaccretiveforthefullyear andwhichweexpecttobecomemeaningfullymoreaccretivetoourearningsandcashflowsovertime. Weseetremendousopportunityforcontinuedgrowthinthesemarketsfueledbyanexpandingglobalmiddleclass withhigherlevelsofdisposableincome.Furtherglobalizationwillrequireexpansiveandtime-definiteairnetworks tofacilitatetheinternationalflowofgoods. Along with expanding our operating platforms and our fleet from 90 to 103 aircraft during 2017, we continued to maintainasafe,compliantoperationwhileretainingthesameleanmanagementstructure. Wecontinuetoexecuteonstrategicinitiativestostrengthenanddiversifyourbusinessmix,expandourcustomer base,generatecostsavingsthroughoperatingefficiencies,andenhanceourportfolioofassetsandservices.Our actionshavepositionedustocapitalizeonmarketopportunities. Strong Performance in 2017 Integrationof SouthernAir (Five777andFive737 Freighters) Initial AmazonAccretion (12of20767-300Fs) KeyNewCustomer Agreements (Multiple747Placements) Reported/AdjustedEPS 1 $8.68/$4.93 ExpandedOperating PlatformsandResults Business,Earnings andCashFlow Growth FocusedonFast- GrowingGlobal Markets GrowthInitiatives, Express/E-commerce Alignment DisciplinedandBalancedCapitalAllocationStrategy We are committed to creating, enhancing and delivering value to our shareholders. Our commitment reflects a disciplined and balanced capital allocation strategy that has focused on maintaining a strong balance sheet, investinginmodern,efficientassetsandreturningcapitaltoshareholders. 2017CapitalAllocationActions: • Expandedfleetfrom90to103aircraft • Issued$289millionofconvertibleseniornotes • Secured$286millionoffinancingforthirteen767-300aircraft(includingonespare)forAmazondryleaseand CMIagreements • Paid$207millionofdebtprincipal 1 AdjustedDilutedEPSfromcontinuingoperations,netoftaxesisanon-GAAPmeasure.Areconciliationtothemostdirectly comparableGAAPmeasureiscontainedinExhibitAattachedhereto. ii PROXYSUMMARY PROXY SUMMARY 2017 Performance Highlights Overview of Business (Airline) 100% Ownership (Airline) 51% Ownership (Airline) 100% Ownership (Leasing) 100% Ownership We are a leading global provider of outsourced aircraft and aviation services. We operate the world’s largest fleet of747freightersandprovidecustomersabroadarrayof747,777,767,757and737aircraftfordomestic,regional andinternationalcargoandpassengeroperations.Ourfleettotaled103aircraftatyear-end2017,including13we addedpursuanttogrowthinitiativesin2017. We provide unique value to our customers by giving them access to a wide range of modern, efficient aircraft, combined with outsourced aircraft operating services that we believe lead the industry in terms of quality and global scale. We operated 48,983 flights serving 422 destinations in 103 countries in 2017, reflecting our far-reachingglobalscaleandscope. Our customers include express delivery providers, e-commerce retailers, airlines, freight forwarders, the U.S. military, and charter brokers. We provide global services with operations in Africa, Asia, Australia, Europe, the MiddleEast,NorthAmerica,andSouthAmerica. 2017PerformanceHighlights andKeyAccomplishments Wedeliveredrecordvolumes,recordrevenue,androbustearningsgrowthin2017,reflectingourgrowthinitiatives andourfocusonexpress,e-commerceandfast-growingglobalmarkets. Strategic Initiatives • We achieved significant progress during 2017 toward our integrationof SouthernAir,ahighlycomplementary 2016 business combination that has expanded our platform into 777 and 737 operations; provided our customers with access to a broader array of aircraft and operating services; and generated new avenues of businessgrowth. • We recorded significant progress on our initiative to provide air transport services for leading e-commerce retailer Amazon. We placed and began operating 11 new 767-300 freighters for Amazon during 2017, raising thenumberto12atyear-end.Thatwasinlinewithourexpectationswhenwecommencedthisnewservicein 2016andwithourexpectationforatotalof20aircraftbytheendof2018. i BANK OF AMERICA CORPORATION ProxyStatementSummary Governance Objectives OurBoardofDirectorsoverseesthedevelopmentandexecutionofourstrategy.TheBoardhasadoptedrobustgovernance practicesandproceduresfocusedonourResponsibleGrowth.Tomaintainandenhanceindependentoversight,ourBoardhas implementedanumberofmeasurestofurtherenrichBoardcomposition,oversight,andeffectiveness.Thesemeasuresalign ourcorporategovernancestructurewithachievingourstrategicobjectives,andenableourBoardtoeffectivelycommunicate andoverseeourcultureofcomplianceandrigorousriskmanagement. EnhancedDirectorRecruitment OurBoard is committed to regular renewal and refreshment in alignmentwith our long-term strategy. ThoughtfulSelf-Evaluations Thoughtful, InterconnectedGovernancePractices OurBoard utilizes a deliberate process to assess candidates and nominees, including reviewing their independence, skills, and experience including service on other boards, other time commitments, and any potential conflicts of interest. OurBoard’s rigorous on-boarding and director education processes complement this enhanced recruitment process.See page19. OurBoard has continuously enhanced the director recruitment and selection process, giving us an experienced and diverse group of nominees.See page 3. OurBoard and committees conduct intensive and thoughtful annual self-evaluations.Our directors provide feedback onBoard effectiveness,with particular emphasis on areas such asBoard composition, focus, culture, and process.See page 17. ‰ Active IndependentOversight Our independent directorsmeet privately in executive session at each regularly scheduledBoardmeeting and held16 such sessions in2017.See page19. OurBoard reviewsCEO and seniormanagement succession and development plans at least annually, and assesses candidates duringBoard and committeemeetings and in less formal settings.See page26. Our independent directors conduct theCEO’s annual performance review and set his compensation. See page28. Our Lead IndependentDirector’s robustandwell-defineddutiesare set forth inourCorporateGovernanceGuidelines; theyextendbeyond thoseofa traditional leaddirector.Seepage15. ‰ ‰ ‰ ‰ ‰ The self-evaluations also confirm the appropriatemix of Board skills to oversee execution of our strategies and driveResponsibleGrowth. ‰ OurBoard receives stockholder feedback on its governance practices through extensive, year-round outreach.See page 21. OurBoard regularly assesses its optimal leadership structure.See page15. ‰ ‰ ‰ ‰ ‰ KeyStatisticsaboutOurDirectorNominees 6.1 yearsaveragetenure, belowthe8.7-year S&P500average (1) 14 of 15 are independent 33% are women 47% are diverse 60% haveCEO experience 33% haveseniorexecutive experienceat financialinstitutions (1) Ourdirectornominees’averagetenureiscalculatedbyfullyearsofcompletedservicebasedondateofinitialelectionasofourannualmeetingdate;source forS&P500average: 2017SpencerStuartBoardIndex . ActiveIndependentOversightOurLeadIndependentDirector’srobustandwell-defineddutiesaresetforthinourCorporateGovernanceGuidelines;theyextendbeyondthoseofatraditionalleaddirector.Seepage[ Š ].OurindependentdirectorsmeetprivatelyinexecutivesessionateachregularlyscheduledBoardmeetingandheld16suchsessionsin2017.Seepage[ Š ].OurBoardreviewsCEOandseniormanagementsuccessionanddevelopmentplansatleastannually,andassessescandidatesduringBoardandcommitteemeetingsandinlessformalsettings.Seepage[ Š ].OurindependentdirectorsconducttheCEO’sannualperformancereviewandsethiscompensation.Seepage[ Š ].EnhancedDirectorRecruitmentOurBoardiscommittedtoregularrenewalandrefreshment;ourBoardhascontinuouslyenhancedthedirectorrecruitmentandselectionprocess,givingusanexperiencedanddiversegroupofnominees.Seepage[ Š ].1OurBoard’srigorouson-boardinganddirectoreducationprocessescomplementthisenhancedrecruitmentprocess.Seepage[ Š ].ThoughtfulSelf-EvaluationsOurBoardandcommitteesconduct intensiveandthoughtfulannualself-assessments.OurdirectorsprovidefeedbackonBoardeffectiveness,withparticularemphasisonareassuchasBoardcomposition,focus,culture,andprocess.Seepage[ Š ].OurLeadIndependentDirectorregularlymeetswitheachdirectortogatherinputonBoardmatters.Seepage[ Š ].OurBoardregularlyassessesitsoptimalleadershipstructure.Seepage[ Š ].OurBoardisinformedbyinputfromstockholders.Seepage[ Š ]. BankofAmericaCorporation2018ProxyStatement iii Total of 06 pages in section ProxyStatementSummary Strategic Objectives ResponsibleGrowth • Wemust grow andwin in themarket— no excuses • Wemust growwith our customer-focused strategy • Wemust growwithin our Risk Framework • Wemust grow in a sustainablemanner Eight lines of busi ess needs of people, c mpani s and institutional investors through eight lines of business Serving the core financial Our values • Deliver together • Act responsibly • Realize the power of our people • Trust the team Our purpose better, through the power of To helpmake financial lives every connection ConsumerBanking GWIM GlobalBanking GlobalMarkets Our Eight Lines of Business People Companies Institutions Retail Preferred& SmallBusiness U.S. Trust MerrillLynch Business Banking Global Commercial Banking GlobalMarkets GlobalCorporate & Investment Banking At Bank of America, we live our values, deliver our purpose and driveResponsibleGrowth through our eight lines of business. 2017CompanyPerformance/ResponsibleGrowth ($inbillions,unlessotherwiseindicated) Growandwininthemarket–noexcuses 2017 2016 NetIncome (1) $18.2 $17.8 Netincome,excludingimpactofTaxCutsandJobsAct (2) $21.1 — Netincomeinsegmentsrepresentingeightlinesof business: ConsumerBanking $8.2 $7.2 GlobalWealth&InvestmentManagement(GWIM) $3.1 $2.8 GlobalBanking $7.0 $5.7 GlobalMarkets $3.3 $3.8 Growwithourcustomer-focusedstrategy 2017 2016 Averagetotalloansandleases (3) $918.7 $900.4 Averagedeposits $1,269.8 $1,222.6 Totalclientbalances $2,751.9 $2,508.6 Businessreferrals 6.4million 5.5million GrowwithinourRiskFramework 2017 2016 Netcharge-offratio 0.44% 0.43% Netcharge-offs $4.0 $3.8 Risk-weightedassets $1,449 $1,530 AveragemarketriskVaRfortrading (4) $45million $48million Growinasustainablemanner 2017 2016 Fullyphased-inG-SIBcapitalbuffer 2.5% 2.5% Totalnetsharerepurchasesandcommondividends (5) $15.9 $6.6 Commonequitytier1regulatorycapital $171.1 $168.9 Resolutionplanenhancementstoresolvability TotalStockholderReturn (TSR) (6) Bank of America Primary Competitor Group average USG-SIB average AllG-SIB average S&P 500 Index 168.1% 137.2% 138.9% 74.9% 108.1% 5-Year 72.2% 45.4% 46.4% 23.9% 38.3% 1-Year 3-Year 35.7% 20.3% 22.6% 17.5% 21.8% (1) Netincomeincludesnetincomeforthesegmentslisted,plusanetlossfor“All Other”,whichwas$(3.3)billionin2017and$(1.7)billionin2016.Netincomefor 2016hasbeenrestatedtoreflectthechangeinthecompany’saccountingmethod forcertainstock-basedcompensationawards. (2) Excludesthe$2.9billionchargerelatedtotheTaxCutsandJobsActincurredin thefourthquarterof2017,andrepresentsanon-GAAPfinancialmeasure.See AppendixAforareconciliationofGAAPandnon-GAAPfinancialmeasures.The initialimpactoftheTaxCutsandJobsActwasrecordedinAllOther. (3) Includesassetsofthecompany’snon-U.S.consumercreditcardbusiness,which areincludedinassetsofbusinessheldforsaleonthecompany’sConsolidated BalanceSheetatDecember31,2016.ThesalewascompletedonJune1,2017. (4) VaRmodeluseshistoricalsimulationapproachbasedonthreeyearsofhistorical dataandanexpectedshortfallmethodologyequivalenttoa99%confidencel vel. (5) Representscommonstockdividendsandcommonstockrepurchasestotaling $16.8billionand$7.7billionin2017and2016,lesscommonstockissuedunder employeeplansof$932millionand$1.1billioninthesameperiods. (6) AsofDecember31,2017.Seepage49foralistofthecompaniesinourprimary competitorgroup.“G-SIBs”areglobalsystemicallyimportantbanksdesignatedby theFinancialStabilityBoardasofNovember21,2017. ii BankofAmericaCorporation2018ProxyStatement ProxyStatementSummary Proxy Statement Summary How to Vote Your Shares YoumayvoteifyouwereastockholderasofthecloseofbusinessonMarch2,2018. Online www.proxyvote.com By Mail Complete,sign,date,andreturnyour proxycardintheenvelopeprovided By Phone Callthephonenumberlocatedonthe topofyourproxycard In Person Attendourannualmeetingandvote by ballot Your Vote is Important BankofAmericawillmakea$1charitabledonationtoHabitatforHumanityonbehalfofevery stockholderaccountthatvotes. HabitatforHumanityisoneoftheworld’slargesthousing-focusednonprofits,withnearly1,400local affiliatesin70countriesaroundtheworld.BankofAmericahaspartneredwithHabitatformorethan 30years,helpingtoprovideaffordablehousingbyinvestingmorethan$85millioninfundingand thousandsofvolunteerhoursincommunitiesaroundtheworld. In2017,ouremployeesloggedmorethan45,000hoursinvolunteertimetoHabitatinmorethan100communitiesacross elevencountries.TheysupportHabitataffiliatesthroughboardservice,leadinghomebuildinitiatives,andpr vidingfinancial literacytrainingforfuturehomeowners.Thisisinadditiontotheover650homesBankofAmericahasdonatedtoHabitat between2012and2015. Byvoting,youcanjoinoureffortsinsupportofHabitatforHumanity. ProposalsforYourVote BoardVotingRecommendation Page 1. ElectingDirectors FOR eachnominee 2 2. ApprovingOurExecutiveCompensation (anAdvisory,Non-binding“SayonPay”Resolution) FOR 37 3. RatifyingtheAppointmentofOur IndependentRegisteredPublicAccountingFirmfor2018 FOR 64 4. StockholderProposal AGAINST 66 See“VotingandOtherInformation”onpage69formoreinformationonvotingyourshares. Toreviewour2018ProxyStatementand2017AnnualReportonline,goto www.bankofamerica.com/annualmeeting . Annual Meeting Admission Annualmeetingadmissionislimitedtoourregisteredholdersandbeneficialownersasoftherecorddateandpersonsholding validproxiesfromthesestockholders.Admissiontoourannualmeetingrequiresproofofyourstockownershipasoftherecord dateandvalid,government-issuedphotoidentification.Securitymeasuresmayincludebag,metaldetector,andhand-wand searches.Theuseofcameras,recordingdevices,phones,andotherelectronicdevicesisstrictlyprohibited.See“Attendingour AnnualMeeting”onpage72. BankofAmericaCorporation2018ProxyStatement i