2018 Guide to Effective Proxies

2.4 Proxy summary | 81 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES FORTIVE CORPORATION ProxyStatementSummary ExecutiveCompensationPhilosophy Ourcompensationphilosophyisalignedwithbuildinglong-termshareholdervalue,withourexecutivecompensation programdesignedto: ATTRACT, RECRUIT&RETAIN Recruit,retain,andmotivatetalented,curiouspeoplewithapassionforcreativity, innovation,continuousimprovement,andcustomerexperience COMPETITIVE Deliveratotalpayopportunitythatiscompetitiveinthemarketforourexecutivetalent ALIGNMENTWITH BUSINESS STRATEGY Focusourincentivecompensationprogramsonperformancethatleadstosustained shareholdervaluecreation,consistentwithourbusinessstrategy PAYFOR PERFORMANCE Withacultureofhighexpectations,set,achieve,andrewardforboththeshort-termand long-termperformance ALIGNMENTWITH SHAREHOLDERS Supportalignmentwithshareholderswithanemphasisonlong-term,equity-based compensation 2017SummaryCompensation 30.6% Stock Options 34.7% PSUs/RSUs CEOPay Performance Based 87.5% Long-Term Compensation 65.3% 3.4% AllOther 9.1% Salary 22.2% Annual Incentive Compensation AllOtherNEOPay 23.8% Stock Options 25.9% RSUs 20.4% Salary Long-Term Compensation 49.7% Performance Based 75.6% 4.0% AllOther 25.9% Annual Incentive Compensation 2017CompensationEnhancements TheCompensationCommitteemadethefollowingenhancementstoour2017executivecompensationprogramconsistent withourcompensationphilosophy: AddedFreeCashFlowandROICtosupplementAdjustedEPSasfinancialperformancemeasuresforthe2017 annualincentiveawardstobetteraligncompensationperformancemeasureswithouroverallstrategyandinternal corevaluedrivers Increasedminimumstockownershiprequirementsforeachofthenon-CEOexecutiveofficerstoamultipleof threetimesbasesalarywhilemaintainingtherequirementforMr.Licotoamultipleoffivetimesbasesalary 4 2018ProxyStatement FORTIVECORPORATION Total of 05 pages in section ProxyStatementSummary Revisedthevestingschedulefortheequityawardsthatwegrantedtotheexecutiveofficers(otherthanourCEO) sothatone-thirdofsuchawardsvestoneachofthe3rd,4thand5thanniversariesofthegrantdateratherthan havingthemvestin5equalinstallmentsbeginningonthefirstanniversaryofthegrantdate,whiletheequity awardsforourCEOwillcontinuetovest50%peryearonthe4thand5thanniversariesofthegrantdate Adoptedachangeincontrolplanthatprovidesfora“doubletrigger”(anexecutiveisentitledtobenefitsonlyif thereisbothachangeincontrolandaterminationofemployment),includesalimiteddefinitionof“changein control,”andprohibitsataxgrossup,toensurethatourexecutiveofficersremainfocusedonourbusinesses duringperiodsofuncertaintyandpursuetransactionsinthebestinterestoftheshareholders CompensationGovernanceHighlights WHATWEDO WHATWEDON’TDO CoreExecutiveCompensationPrinciplesDesigned toPromoteShareholderValue PerformanceMeasuresAlignedwithBusiness Objectives PayforPerformance MaintainStockOwnershipRequirements(Including MultipleofFiveTimesBaseSalaryforthePresident andCEO) MaintainaCompensationRecoupmentPolicy MaintainLongVestingforEquityAwards RequireMinimumVestingScheduleunderour EquityPlan MonitorforRisk-TakingIncentives EngageanIndependentCompensationConsultant NoExciseTaxGross-Ups No“Single-Trigger”Change-of-ControlSeverance Benefits No“Single-Trigger”Change-of-ControlEquity Vesting NoPledgingofourCommonStockbyExecutive Officers NoHedgingTransactions NoEvergreenProvisioninStockIncentivePlan NoRepricingofStockOptions NoLiberalShareRecyclingunderStockIncentive Plan NoLiberalDefinitionofChange-of-Control NoDefinedBenefitPlansforExecutiveOfficers NoDeliveryofPaymentofDividendsonUnvested EquityAwards NoExcessivePerquisites 2018ProxyStatement 5 ProxyStatementSummary CorporateGovernanceHighlights OurBoardofDirectorsrecognizesthatenhancingandprotectinglong-termvalueforourshareholdersrequiresarobust frameworkofcorporategovernancethatservesthebestinterestsofallourshareholders. InconnectionwithourBoard’sdedicationtostrongcorporategovernance,ourBoardhasapprovedthefollowing corporategovernancemattersfollowingtheseparationofFortivefromDanaherCorporation(the“Separation”): RecentGovernanceActions Adopted proxyaccess topermitashareholder,oragroupofupto20shareholders,owningatleast3%ofthe outstandingsharescontinuouslyforatleast3yearstonominateandincludeinourproxymaterialsdirector nomineesconstitutingupto20%oftheboardofdirectors,asfurtherdetailedinourBylaws Commencedthe declassificationoftheBoard toprovidefortheannualelectionofdirectorsafterasunsetperiod Documentedour commitmenttoBoarddiversity inourCorporateGovernanceGuidelinesandtheNominatingand GovernanceCommitteeCharter Adoptedandlaunchedaformal annualshareholderengagement process,withthefirstshareholderoutreach conductedinthefourthquarterof2017 FormalizedanddocumentedintheAuditCommitteeCharter oversightofourcybersecurity bytheAudit Committee,withquarterlyreviewbytheAuditCommitteeofourcybersecurityplanning,monitoring,risk management,remediation,andcontrols Adopted,launchedandconductedan annualself-assessmentprocess toassessindetailtheeffectivenessof he Boardandeachofitscommittees Increasedthestockownershiprequirements fornon-CEOexecutiveofficerstoamultipleofthreetimesbase salaryandmaintainedthestockownershiprequirementsforCEOanddirectorsasamultipleoffivetimesbase salaryandannualcashretainer,respectively Additionalhighlightsofourcorporategovernanceframework Our ChairmanandCEOpositionsareseparate ,withanindependentChairman Wemaintaina majorityvoterequirement forthe electionofdirectors inuncontestedelections Wehave noshareholderrightsplan Wehavean anti-overboardingpolicy thatlimitsthenumberofboardsofotherpubliccompaniesonwhichour directorsmayservetofour AllmembersoftheAuditCommitteeare auditcommitteefinancialexperts Wemaintaina relatedpersontransactionpolicy withoversightbytheNominatingandGovernanceCommittee AllmembersofourAudit,Compensation,andNominatingandGovernanceCommitteesare independent asdefined bytheNewYorkStockExchangelistingstandardsandapplicableSecuritiesandExchangeCommissionrules 2018ProxyStatement 3 GANNETT CO., INC. SUMMARY CorporateGovernanceHighlights Corporate Governance Highlights ImportantcorporategovernancepracticesoftheCompanyincludethefollowing: • annualelectionofdirectors; • nostockholderrightsplan(poisonpill)inplace; • nineofelevendirectorsareindependent; • robuststockholderengagementprogram; • separatepositionsofChairmanandCEO,andindependent,non-executiveChairmanoftheBoard; • majorityvotestandardfordirectorelectionsinuncontestedelectionsandadirectorresignationpolicy; • singleclasssharecapitalstructurewithallstockholdersentitledtovotefordirectornominees; • specialmeetingsofstockholdersmaybecalledbyholdersof20%oftheoutstandingshares,subjecttocertainrequirementssetforthin theCompany’sorganizationaldocuments; • directorsandseniorexecutivesaresubjecttostockownershipguidelines;and • mergersandotherbusinesscombinationsinvolvingtheCompanygenerallymaybeapprovedbyasimplemajorityvote. Executive Compensation Highlights CORE ELEMENTS OF THE 2017 PROGRAM • BaseSalaries :Establishedatcompetitivelevelsappropriatetoretainseniorexecutivesandrewardthemfortheirservicebasedonthe natureandresponsibilityoftheposition,comparativemarketdataandindividualandCompanyperformance. • AnnualCashIncentives :DesignedtorewardeachexecutivefortheCompany’sachievementoffinancialperformancegoals,aswellas theexecutive’sachievementofindividualstrategicandculturegoals.GoalsaretailoredtoadvancetheCompany’sstrategicplan,and payouttargetsareestablishedbasedoncomparativemarketdata,eachexecutive’sresponsibilities,andthenatureoftheexecutive’s role. • PerformanceShares :Long-termequityincentivesdesignedtoretainseniorexecutivesandaligntheirinterestswiththoseofstockholders throughanopportunitytoearnsharesoftheCompany’scommonstockbaseduponhowtheCompany’sTotalShareholderReturn (“TSR”)overathree-yearperformanceperiodcomparestotheTSRsofcompaniesinadesignatedTSRPeerGroupoverthesame period. • RestrictedStockUnits(“RSUs”) :Long-termequityincentivesintendedtoretainseniorexecutivesinarapidlyevolvingbusinessenvironment throughthedeliveryofsharesoftheCompany’scommonstockuponcontinuedemploymentduringafour-yearvestingperiodandto aligntheirinterestswiththoseofstockholdersbyincreasingexecutivestockownershiplevels. • Post-terminationPayPrograms :IntendedtoassisttheCompanyinrecruitingandretainingemployees,providingleadershipfocusand stabilityandobtaininglong-termcommitmentfromexecutives.Suchprogramsinclude: • atax-qualifieddefinedcontribution401(k)plan; • anon-qualifieddeferredcompensationplan; • certainexecutiveseverance,change-in-controlseveranceandpost-retirementwelfarebenefitplans; • legacytax-qualifieddefinedbenefitretirementandnon-qualifiedsupplementalexecutiveretirementplans,whicharefrozen,exceptfor certainexecutiveswhohavebeen“grandfathered”andcontinuetoaccruebenefitsinthenon-qualifiedsupplementalexecutive retirementplan;and • legacypost-terminationbenefitsplans,suchaskeyexecutivelifeinsuranceandretirementmedicalcoverage,intowhichcertain executiveshavebeen“grandfathered.” GANNETTCO.,INC. 2018ProxyStatement 3 Total of 04 pages in section SUMMARY CompanyHighlights Company Highlights • Separation .OnJune29,2015,theCompanycompleteditslegalandstructuralseparationfromitsformerparent,nowknownas TEGNAInc.(“TEGNA”),andbecameanindependentpubliccompany(the“separation”). • StrategicPlan .Ourvisionistobecomeessentialtoconsumersandmarketersseekingmeaningfulconnectionswiththeircommunities acrossprint,digital,andotherchannels.TheCompanyiscommittedtoabusinessstrategythatdrivesaudiencegrowthand engagementbydeliveringdeepercontentexperiencestoouraudiencewhileofferingtheproductsandmarketingexpertiseour advertisersdesire.WebelievetheexecutionofthisstrategyshouldallowtheCompanytocontinueitsevolutionfromam retraditional printmediabusinesstoadigitallyfocusedmediaandmarketingservicesbusiness. Highlightedbelowarethekeyelementsofthisstrategy,aswellasthewaysinwhichtheCompanyadvanceditsstrategicplanin 2017. Leveragenationwidescaleandlocalpresence .Throughout2017,theCompanycontinuedtostrengthenandleveragetheUSA TODAYNETWORK(with109localpropertiesplusUSATODAY)todeepenourrelationshipswithbothconsumersandmarketersat nationalandlocallevel.TheUSATODAYNETWORK’sachievementsin2017included,amongothers: • finishingthirdinthecomScoremulti-platformNewsandInformationcategoryforuniquevisitors,aheadofpeerssuchasNBC NewsDigital,CBSNews,NewYorkTimesDigital,andFoxNewsDigitalNetwork; • powerfulinvestigativejournalism—suchasUSATODAY’sinvestigationintoclaimsofbotchedmedicalproceduresattheVeterans AffairsDepartment,theIndianapolisStar’sinvestigationintosexualabuseallegationsagainstUSAGymnasticsteamdoctorLarry Nasser,andtheNETWORK’sexaminationofthelackofregulationoftheshort-haultruckingindustry—eachofwhichprompted swiftactionfrompolicy-makers; • innovationintheuseofdigitalmediainstorytelling,exemplifiedbytheBorderWallProject,amultimediaexperienceaboutthe 2,000-mileborderbetweentheU.S.andMexico,whichwasproducedbymorethan30journalistsacrosstheNETWORKand includedarticles,aerialand360-degreevideo,virtualreality,aninteractivemap,podcastsandchatbots; • expansionintonewverticals,includingthroughouracquisitionofGratefulVentures,LLC,astartupdigitalcontentnetworkthat operatesinthe“lifestyle”category,aswellasnewmediumssuchaspodcasts;and • thecreationofanewadplatformandproductsuitecalledParamountandadataenginecalledGrandstandthatusemachine learningtomeasureelementsofaddesignandhowtheydrivedigitaladvertisingcampaignperformance. Accelerateexpansionofourdigitalbusinesses .Onthecontentside,wecontinueddevelopmentofnewconsumerexperiencesthrough newstorytellingmediumslikevirtualrealityanddrones,aswellasimprovementstoourdigitalproducts.Additionally,weinvestedin marketingstrategiesthatdrovea50%year-over-yearincreaseindigital-onlysubscriptions.Wecontinuedtoexpandourdigital marketingsolutionsbusinessbyintegratingReachLocalasourdigitalmarketingservicesproviderinourlocalmarketsandtheUnited Kingdom. Pursueopportunisticacquisitions .In2017,weshiftedthefocusofouracquisitionstrategyfromacquiringtraditionalprintbusinessesto digitalacquisitionsthateitherexpandourdigitalmarketingservicesportfolioorbroadenourcontentofferings.Forexample,we acquiredSweetIQAnalyticsCorp.,alocationandcustomerengagementsoftwareprovider,whichexpandstheproductportfolioof ReachLocal,andwemadeamajorityinvestmentinGratefulVentures,LLC,whichextendstheUSATODAYNETWORKintothe “lifestyle”contentvertical. Maximizethevalueofourlegacyprintbusinessandrationalizeourcostbase .Wecontinuedtodrivetheprofitabilityofourtraditional printoperationsbyrationalizingourcostinfrastructureandmaximizingourrevenuebase.Onasame-storebasis,operatingexpenses for2017weredown$296millionyear-over-yearduetotheCompany’saggressivecostcontainmentefforts.Ontherevenueside,we haveimplementedanewprintadvertisingpricingprogramthatencouragesmorefrequentadvertisinginourprintedproduct,which shoulddelivertheadvertiserimprovedreturnoninvestmentandreducetheadvertiserchurnweareexperiencing.Additionally,we launchedmoreaggressivehomedeliverysubscriptionrateincreaseslatein2017basedontestingandresearchconductedinthe earlierpartof2017. Maintainaflexiblebalancesheet .Throughaggressivecostmanagementanddisciplinedfinancialpolicies,wehavebeenableto maintainastrongbalancesheetwithrelativelylowdebtlevelscomparedtoourpeers.Ourstrongbalancesheethasenabledusto keepaflexiblecapitalallocationpolicywithanemphasisonreturningcashtoshareholders.In2017,wemaintainedourquarterly dividendof$0.16pershare.InJuly2015,ourBoardofDirectorsauthorizedathree-year,$150millionsharerepurchaseprogram. AsofDecember31,2017,5.75millionshareshavebeenrepurchasedundertheprogramatanaveragecostof$8.70. 2 2018ProxyStatement GANNETTCO.,INC. SUMMARY PROXY STATEMENT Toassist youinreviewing theproposalstobeconsidered andvoteduponatourAnnualMeeting, wehavesummarizedinformation containedelsewhereinthisProxyStatementorinourAnnualReportonForm10-Kforthefiscal yearended December31,2017.This summarydoesnotcontainalloftheinformationyoushouldconsideraboutGannettCo.,Inc.(the“Company”)andthepr posalsbeing submitted tostockholdersattheAnnualMeeting. WeencourageyoutoreadtheentireProxyStatementandAnnualReportcarefullybefore voting. 2018 Annual Meeting of Stockholders DATEANDTIME LOCATION RECORDDATE May 8,2018,10:00a.m.localtime 7950JonesBranchDrive,McLean, Virginia March9,2018 Meeting Agenda and Voting Matters ITEM PROPOSAL BOARDVOTE RECOMMENDATION PAGEREFERENCE (FORMOREINFORMATION) 1 Election oftheEleven DirectorNominees Named inthisProxyStatement FOReachnominee 5 2 Ratification oftheAppointmentofErnst&YoungLLP FOR 17 3 ApprovalofanAmendmenttothe2015Omnibus Incentive CompensationPlan FOR 18 4 AdvisoryVotetoApproveExecutiveCompensation FOR 56 Board Nominees NAME AGE RECENTPROFESSIONALEXPERIENCE COMMITTEES JohnJeffryLouis* 55 ChairmanoftheBoardofGannettCo.,Inc.; Co-FounderandformerChairmanofParson CapitalCorporation AC,ECC MatthewW.Barzun* 47 FormerU.S.ambassadortotheUnitedKingdom ECC,TC JohnE.Cody* 71 FormerExecutiveVicePresidentandChief OperatingOfficerofBroadcastMusic,Inc. AC(Chair),ECC StephenW.Coll* 59 DeanoftheGraduateSchoolofJournalismfor ColumbiaUniversityinNewYork NPRC,TC RobertJ.Dickey 60 PresidentandCEOofGannettCo.,Inc. TC DonaldE.Felsinger* 70 FormerExecutiveChairmanofSempraEnergy AC,ECC(Chair) LilaIbrahim* 48 FormerChiefOperationsOfficerofCoursera,Inc. ECC,TC(Chair) LawrenceS.Kramer 67 ChairmanofTheStreet,Inc.;formerPresidentand PublisherofUSATODAY TC TonyA.Prophet* 59 ChiefEqualityOfficerofsalesforce.com,inc. AC,NPRC DebraA.Sandler* 58 FounderofLaGrenadeGroup,LLC;formerChief HealthandWellbeingOfficerofMars,Inc. AC,NPRC(Chair) ChloeR.Sladden* 43 Co-Founderandprincipalof#Angels; formerVicePresident,MediaofTwitter,Inc. NPRC,TC * AC ECC NPRC TC —IndependentDirector —AuditCommittee —ExecutiveCompensationCommittee —NominatingandPublicResponsibility Committee —TransformationCommittee GANNETTCO.,INC. 2018ProxyStatement 1