2018 Guide to Effective Proxies

2.4 Proxy summary | 83 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES GOODYEAR TIRE & RUBBER COMPANY PROXYSUMMARY Thepayoutsunderourincentivecompensationplansthisyearwerestronglyalignedwithourfinancialandstockprice performance–demonstratingourcommitmenttostructureanexecutivecompensationprogramthatpaysforperformance– asthepayoutsunderthoseplansweresignificantlylowerthaninprioryears. OurCEO’sactualpayoutsunderourannualincentiveplanoverthepastthreeyearsarealignedwithourEBITandFreeCashFlowfrom Operationsperformanceoverthoseperiods,asshowninthegraphicbelow.For2017,thepayoutforoverallcompanyperformance underourannualincentiveplanswascalculatedtobe26%oftarget.However,inlightoftheCompany’sfinancialperformance, Mr.Kramerrecommendedthatheandtheotherofficersnotreceiveanypayoutundertheannualincentiveplan.TheCompensation Committeeagreedwithhisrecommendationandreducedtheannualincentiveplanpayoutsforalloftheofficerstozero.In2017,our relativetotalshareholderreturn,orTSR,modifierreducedthepayoutsforour2015-2017performancecycleby10%aswell. CEOannualincentivepayout (inmillions, exceptActual Payout) EBIT FreeCash Flow fromOperations ActualPayout as a percent of Target 2017 2015 $966 2016 $1,853 $739 $1,839 $522 $1,453 0 100 200% 192% 75% 0% For2017,ourfinancialmetricswere: IncentiveProgram FinancialMetrics Weighting ANNUAL INCENTIVES AnnualPerformancePlan EBIT 40% FreeCashFlowfromOperations 40% OperatingDrivers 20% LONG-TERM AWARDS Performance-BasedAwards (PaidoutinEquityandCash) NetIncome 50% Relative + / – 20% CashFlowReturnonCapital 50% StockOptions Total of 05 pages in section PROXYSUMMARY Inordertodrivethisfuturegrowthandaddressthechallengingindustryenvironment,weremainfocusedon: • Developinginnovativeproductsandservicesthatanticipateandrespondtotheneedsofconsumers; • Buildingthevalueofourbrand,helpingourcustomerswinintheirmarkets,andbecomingconsumers’preferr d choice;and • Improvingourmanufacturingefficiencyandcreatinganadvantagedsupplychainfocusedonreducingourtotal deliveredcosts,optimizingworkingcapitallevelsanddeliveringbestinindustrycustomerservice. Ourstrategyisdesignedtotakeadvantageofthelong-termtrendsshapingourindustry,particularlyinthelargerrimsize segmentofthemarket. InFebruary2018,weprovidedinvestorswithourfinancialtargetsfor2018andbeyond.Wealsoannouncedour2018-2020 capitalallocationplanthatprovidesforgrowthcapitalexpendituresof$700millionto$900million,restructuringpaymentsof approximately$400million,debtrepaymentsof$400millionto$600millionand,subjecttoourperformance,commonstock dividendsandsharerepurchasesof$1.5billionto$2.0billion.Wealsoincreasedthequarterlycashdividendonourcommon stockby40%,from$0.10pershareto$0.14pershare,beginningwiththeDecember1,2017paymentdate. Shareholder Engagement Webelievethatitisimportantforustocommunicateregularlywithshareholdersregardingareasofinterestorconcern.Over thelastseveralyears,inadditiontoourday-to-dayinteractionsregardingourfinancialperformance,wehaveenhancedour shareholderengagementprogramtoincludeanannualoutreachthatisfocusedonourlong-termbusinessstrategy,executive compensation,corporategovernance,corporateresponsibilityandothertopicssuggestedbyourshareholders.Thisannual outreachhelpstoensurethatourshareholdersareheardandabletocommunicatedirectlywithusontheseimportantmatters. Aspartofour2017annualoutreach,werequestedtheopportunitytomeetwithapproximately60%ofourshareholdersand weultimatelyengagedwithshareholdersrepresentingover50%ofouroutstandingCommonStockasofSeptember30,2017. In2017,ourLeadDirectorandourChairmanmetwithseveralofourlargestshareholderstoprovideadirectlineof communicationbetweenourshareholdersandtheBoardofDirectors.Specifically,ouroutreachmeetingsthisyeargaveusthe chancetohighlightthestrongoperatingperformancedeliveredbytheCompanyoverthepastseveralyears,thechallenging industrydynamicswefacedin2017,howourstrategywillenableustodrivefuturegrowthinourbusiness,andtheBoard’s roleinoverseeingthatstrategy.WealsodiscussedthecompositionandevaluationprocessoftheBoard,ourcommitmentto aligningpaywithperformance,andoursoundexecutivecompensation,corporategovernanceandcorporateresponsibility practices. Executive Compensation Highlights Ourexecutivecompensationprogramisdesignedtosupportachievementofourbusinessobjectivesandtoservethelong- terminterestsofourshareholders.Ourexecutivecompensationisstronglyalignedtocompanyperformanceandmeasurable financialmetrics,therebyaligningmanagement’sinterestswithourshareholders’interestsanddrivingincreasedshareholder value. PROXY STATEMENT SUMMARY Thissummaryisanoverviewofinformationthatyouwillfindelsewhereinthisproxystatement.Thissummarydoesnotcontain alloftheinformationthatyoushouldconsider,andyoushouldreadtheentireproxystatementcarefullybeforevoting. Proposals and Board Recommendations Proposal Board’sVotingRecommendation PageReference 1. ElectionofDirectors FOReachNominee 12 2. AdvisoryVoteonExecutiveCompensation FOR 19 3. RatificationofAppointmentofIndependent RegisteredPublicAccountingFirm FOR 75 2017 Business Performance Highlights *As defined for purposes of our compensation plans in2017 TOTALSHAREHOLDER RETURN* 37th %ILEOFS&P 500 EBIT* $1,453 MILLION NET INCOME* $800 MILLION FREECASH FLOW FROMOPERATIONS* $522 MILLION SHAREHOLDER RETURN PROGRAM $510 MILLION Weexperiencedchallengingglobalindustryconditions,andourperformancefellshortofourgoals,in2017duetohigherraw materialcostsandincreasedpricecompetition.Wealsosawweakdemandinmanyofourkeymarkets,despitefavorable trendsinmilesdriven,gasolinepricesandunemployment.Weendedtheyearwithastrongrecoveryinunitvolumesinthe fourthquarterof2017.In2017,wealsosuccessfullylaunchedmanynewproducts,therebykeepingourproductportfolio refreshed,andsuccessfullyexecutedonourcostsavingsinitiatives. Weremaincommittedtoourstrategywhichisaimedatcapturingprofitablegrowthinattractivemarketsegments,particularly in17-inchandaboverimsizetires,masteringincreasingcomplexityandturningthatintoacompetitiveadvantage,and connectingwithconsumersthroughouraligneddistributionnetworkofdistributorsanddealers. HILTON WORLDWIDE HOLDINGS HILTON WORLDWIDE HOLDINGS INC. 7930JonesBranchDrive Suite1100 McLean,Virginia22102 Telephone:(703)883-1000 PROXY STATEMENT Annual Meeting of Stockholders May 10, 2018 2017 HIGHLIGHTS Adj.EBITDA (1) +11% Year-over-Year (“YOY”) Pipeline +11% YOY & Largestin Industry Numberofroomsunder constructionglobally Successful Spin-Offs ofourrealestate andtimeshare businesses NetUnit Growth +6.5% YOY Opened >1Hotel perday (onaverage) $1.1B TotalCapital Returnedto Stockholders & Approximately 45% (2XS&PIndex) Total Stockholder Return(“TSR”) GREAT PLACE TO WORK ® Ranked #9 Best Multinational Workplaces GOVERNANCE HIGHLIGHTS Ourcommitmenttostronggovernancepracticesisillustratedbythefollowing: Š Annualelectionofdirectors Š Majorityvotingstandardfordirectorsinuncontestedelections Š Proxyaccessby-law Š 40%ofourBoardmembersarewomen Š Nostockholderrightsplan;andifourBoardwereevertoadoptastockholderrightsplaninthefuturewithoutpriorstockholder approval,wewouldeithersubmittheplantostockholdersforratificationorcausetherightsplantoexpirewithinoneyear Š Namedoneofthe“World’sMostEthicalCompanies”byTheEthisphereInstitute VOTING ROADMAP Our Board’sRecommendation ProposalNo. 1: Election of All Director Nominees FOR OurBoardofDirectorsunanimouslybelievesthatallofthedirectornomineeslistedinthisProxyStatementhavetherequisite qualificationstoprovideeffectiveoversightoftheCompany’sbusinessandmanagement. Pg. 2 ProposalNo. 2: Ratification of the Appointment of Ernst & YoungLLPas independentregistered public accountingfirm FOR OurAuditCommitteeandBoardofDirectorsbelievethattheretentionofErnst&YoungastheCompany’sindependent registeredpublicaccountingfirmfor2018isinthebestinterestoftheCompanyanditsstockholders. Pg. 15 ProposalNo. 3: AdvisoryVote on ExecutiveCompensation FOR Weareseekinganon-binding,advisoryvotetoapprove,andourBoardofDirectorsrecommendstheapprovalof,the2017 compensationpaidtoournamedexecutiveofficers,whichisdescribedinthesectionofthisProxyStatemententitled“Executive Compensation.” Pg. 16 (1) PleaseseeAnnexAforadditionalinformationandareconciliationofAdjustedEBITDAtofinancialmeasuresderivedinaccordancewithUnitedStatesgenerally acceptedaccountingprinciples(“GAAP”). Hilton PROXYSTATEMENT 1