2018 Guide to Effective Proxies

2.4 Proxy summary | 85 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES JPMORGAN CHASE & CO. Wedemonstrated strong financialperformance in2017 In2017, theFirmdeliverednet incomeof$24.4billionand recordearningsper share (“EPS”)of$6.31with return on tangible commonequity (“ROTCE”) 1 of12%.Excluding the impactof tax reformanda legalbenefit, theFirm deliveredadjustednet incomeof$26.5billionandadjustedEPSof$6.87withadjustedROTCEof13%.We returned$22.3billionof capital to shareholders (including commondividendsandnet share repurchases).Wealso gainedmarket share innearlyallofourbusinesses,demonstrated strongexpensediscipline, continued toachieve high customer satisfaction scores,andmaintaineda fortressbalance sheet. Net incomeof $24.4 BILLION EPSof $6.31 ROTCE 1 of 12% Tangiblebook valueper share (“TBVPS”) 1 of $53.56 -up4% from2016 Distributed $22.3BILLION to shareholders Excluding the impactof tax reformanda legalbenefit: Adjustednet income 2 of $26.5 BILLION AdjustedEPS 2 of $6.87 AdjustedROTCE 1,2 of 13% TheFirmhasdemonstrated sustained, strong financialperformance Wehavegenerated strongROTCEover thepast10 years,whilemore thandoublingaverage tangible common equity (“TCE”) from$80billion to$185billion, reflectinga compoundannualgrowth rateof10%over theperiod. Wehavedelivered sustainedgrowth inbothTBVPSandEPSover thepast10 years, reflecting compoundannual growth ratesof10%and19%, respectively,over theperiod. 1 ROTCEandTBVPSareeachnon-GAAP financialmeasures; fora reconciliationand furtherexplanation, seepage115.Ona comparableU.S. GAAPbasis, for2008 through2017 respectively, returnonequity (“ROE”)was4%,6%,10%,11%,11%,9%,10%,11%,10%and10%, andbook valueper share (“BVPS”)was$36.15,$39.88,$42.98,$46.52,$51.19,$53.17,$56.98,$60.46,$64.06and$67.04. 2 Excludes the impactof theenactmentof theTaxCutsand JobsActof$2.4billion (after-tax)andofa legalbenefitof$406million (after-tax). Adjustednet incomeandadjustedEPSareeachnon-GAAP financialmeasures; for furtherexplanation, seepage115. TableofContents JPMORGANCHASE&CO. • 2018PROXYSTATEMENT 3 ROTCE 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 StrongROTCE on increasing capital base 6% 10% 15% 15% 15% 13% 13% 13% 12% 13% 1,2 excluding tax reform & legalbenefit 11% $185 $80 AverageTCE ($B) $22.52 $27.09 $30.12 $33.62 $38.68 $40.72 $44.60 $48.13 $51.44 $53.56 $1.35 $2.26 $3.96 $4.48 $5.19 $4.34 $5.29 $6.00 $6.19 $6.31 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 EPS TBVPS excluding tax reform& legalbenefit $6.87 2 2018PROXYSUMMARY Total of 07 pages in section Notable changes since2017AnnualMeeting Long-TermU.S. Investment inEmployees,Branch ExpansionandLocalEconomicGrowth BoardRefreshment ▪ Announceda$20billion, five-year comprehensive investment tohelpemployees,and support joband local economicgrowth in theUnitedStates: – Investing inemployeeswith further increases towages andbenefits – Expanding thebranchnetwork – Increasing community-basedphilanthropic investments – Increasing smallbusiness lending – Acceleratingaffordablehousing lending ▪ MellodyHobsonelected inMarch2018,oneof two independentdirectorswho joined theBoard in the last thr e years ▪ CrandallBowles,adirector since2006,will retire inMay2018 ExecutiveCompensationProgram ManagementSuccession –OperatingCommitteeChanges ▪ Calibrated theabsoluteROTCEgoal for the2017PSU awardgranted in January2018 to17%,basedon current forecastof futureperformance ▪ Introduceda risk-based capitalhurdle to thePSU program referencing theFirm’sFullyPhased-inCommon EquityTier1 capital ratio ▪ Updated the stockownershipguideline forOperating Committeemembers ▪ DanielPintoandGordonSmithappointedCo-Presidentsand Co-ChiefOperatingOfficers ▪ MaryErdoes,MarianneLake,andDougPetnoeachexpanded their responsibilities ▪ Threeexecutives joined theOperatingCommittee: – LoriBeer,GlobalChief InformationOfficer – RobinLeopold,HeadofHumanResources – PeterScher,GlobalHeadofCorporateResponsibility ▪ 50%ofOperatingCommitteemembers reportingup to Jamie Dimonarewomen Total shareholder return (“TSR”) TheFirmdeliveredaTSR 1 of27% in2017, followingaTSRof35% in2016and8% in2015, fora combined three-yearTSRof 85%.Thegraphbelow showsourTSRexpressedas cumulative return to shareholdersover thepastdecade.As illustratedbelow, a$100 investment in JPMorganChaseonDecember31,2007wouldbe valuedat$311asofDecember31,2017, significantly outperforming the financial services industryover theperiod,asmeasuredby theKBWBank Indexand theS&PFinancials Index. 1 TSRassumes reinvestmentofdividends TableofContents 2 JPMORGANCHASE&CO. • 2018PROXYSTATEMENT $144 $150 $311 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $0 $50 $100 $150 $200 $250 $300 $350 JPMOutperformance IndicesPerformance TotalReturn IndexValues JPMorganChase 211% KBWBank Index 50% S&PFinancials 44% 1-Year 27% 19% 22% 3-Year 85% 53% 48% 5-Year 178% 131% 130% $100 invested in JPM at the end of 2007 wouldhaveyielded$311 at the end of 2017 2018PROXYSUMMARY 2018 Proxy summary Thissummaryhighlights informationcontainedelsewhere in thisproxystatement.Thissummarydoesnotcontainall the informationyoushouldconsider,andyoushould read theentireproxystatementcarefullybeforevoting. Your vote is important.Formore informationon votingandattending theannualmeeting, see “Informationabout theannual shareholdermeeting”onpage107of thisproxy statement.Thisproxy statementhasbeenpreparedby ourmanagementandapprovedby theBoard,and isbeing sentormadeavailable toour shareholdersonorabout April5,2018. Annualmeetingoverview: Matters tobevotedon ü MANAGEMENTPROPOSALS TheBoardofDirectors recommendsyouvote FOR eachdirectornomineeand FOR the followingproposals (formore information seepage referenced): 1. Electionofdirectors 10 2. Ratificationof specialmeetingprovisions in theFirm’sBy-Laws 39 3. Advisory resolution toapproveexecutive compensation 44 4. ApprovalofAmendedandRestatedLong-Term IncentivePlaneffectiveMay15,2018 82 5. Ratificationof independent registeredpublicaccounting firm 92 û SHAREHOLDERPROPOSALS (if theyareproperly introducedat themeeting) TheBoardofDirectors recommendsyouvote AGAINST eachof the following shareholderproposals (formore information seepage referenced): 6. IndependentBoard chairman 97 7. Vesting forgovernment service 100 8. Proposal to reporton investments tied togenocide 102 9. Cumulative voting 105 TableofContents JPMORGANCHASE&CO. • 2018PROXYSTATEMENT 1 2018PROXYSUMMARY LOWE’S COMPANIES FISCAL 2016 FINANCIAL AND OPERATIONAL HIGHLIGHTS $4.6 Billion 47 Million Shares $1.1 Billion $5.6 Billion INCAPITALRETURNED TOSHAREHOLDERS REPURCHASEDUNDER THESHAREREPURCHASEPROGRAM DIVIDENDSPAID CASHFLOWFROMOPERATIONS Wemademeaningfulprogressthisyearexpandingour customerreachandadvancingouromni-channelcapabilities, asevidencedbytherolloutofourinteriorprojectspecialists acrossallUSstores,oursuccessfulredesignofLowes.com, strengtheningourmarketpositioninCanadawiththe acquisitionofRONAanddeepeningandbroadeningour relationshipwiththeProcustomer. Weremainresoluteinourfocusongeneratinglong-term profitablegrowthandsubstantialreturnsforshareholders, takingabalancedapproachtocapitalallocationwithafocuson makingstrategicinvestmentstogrowourbusinesseswhile returningexcesscashtoshareholdersintheformofdividends andsharerepurchases. $65BILLIONINSALES +10.1%SALESYOY +2.5%COMPAVERAGETICKETYOY +1.6%COMPTRANSACTIONSYOY $1.33DIVIDENDS/ SHARE +24%DIVIDENDSYOY $3.47DILUTEDEPS +27.1%DILUTEDEPS YOY *YOY=YearoverYearComparison 2017PROPOSALS Board Recommends Proposal1: ElectionofDirectors Proposal2: AdvisoryVotetoApproveNamedExecutiveOfficerCompensation Proposal3: AdvisoryVoteontheFrequencyofFutureAdvisoryVotestoApproveNamedExecutiveOfficer Compensation 1YEAR Proposal4: RatificationoftheAppointmentofIndependentRegisteredPublicAccountingFirm Proposal5: ShareholderProposalRegardingtheFeasibilityofSettingRenewableEnergySourcingTargets 2017DIRECTORNOMINEESUMMARY CULTURALDIVERSITY LEADERSHIP 1 HISPANIC 2 AFRICAN- AMERICAN 3 WOMEN TENUREOF INDEPENDENTDIRECTORS 5 YEARS 10+ 6-9 1-5 6 2 2 AVERAGE 9 CURRENT ORFORMER CEOS NOTICEOFANNUALMEETINGANDPROXYSTATEMENT2017 ii PROXY SUMMARY Wehavedemonstratedastrongcommitmenttoreturningcapitaltoourshareholdersandhavehadcontinued dividendgrowthsince1961. $19.3 Billion 24% $4.3 Billion SHARESREPURCHASEDUNDEROURSHARE REPURCHASEPROGRAMINTHELASTFIVEYEARS 2016INCREASEIN ANNUALDIVIDEND DIVIDENDSPAIDINTHE LASTFIVEYEARS FOCUSING on the customer INVESTING to meet the needs of evolving customers GROWING customer reach and our profits FOCUS INVEST GROW Thissummaryincludescertainfinancialand operational,governanceandexecutivecompensation highlights.Thissummarydoesnotcontainallofthe informationthatyoushouldconsider,andyoushould readtheentireProxyStatementcarefully beforevoting. ExecutiveCompensationHighlights Ourexecutivecompensationprogramisdesignedtolinkpayto theexecutives’advancementofLowe’sperformanceand businessstrategiesandtheirperformanceforour shareholders.Tothatend,theprimaryobjectivesofour executivecompensationprogramareto: • Attractandretainexecutiveswhohavetherequisite leadershipskillstosupporttheCompany’scultureand strategicgrowthpriorities; • Maximizelong-termshareholdervaluethroughalignmentof executiveandshareholderinterests; • AlignexecutivecompensationwiththeCompany’sbusiness strategies,includingexpandinghomeimprovementreach, developingcapabilitiestoanticipateandsupportcustomer needsandgeneratingprofitablegrowthandsubstantial returns;and • Targetexecutivetotalcompensationatthemarketmedian withanopportunitytoearnabovemarketpaywhenthe Companydeliversresultsthatexceedperformancetargets. GovernanceHighlights OurBoardofDirectorsiscommittedtosoundandeffective corporategovernancepractices.Thefolowingarehighlghts ofourcorporategovernancepractices: • DeclassifiedBoard • IndependentLeadDirector • 10of11DirectorNomineesareIndependent • MajorityVotingforDirectors • AdoptionofProxyAccess • Audit,Compensation,NominatingandGovernanceand PublicPolicyCommitteesarecomprisedonlyofIndependent Directors • CommitmenttoSustainabilityandPublicPolicyMatters • RegularExecutiveSessionsofIndependentDirectors • StockOwnershipGuidelinesforExecutiveOfficersandNon- EmployeeDirectors • AnnualBoard,CommitteeandCEOEvaluations • ActiveBoardOversightofEnterpriseRiskManagement • ActiveBoardEngagementinSuccessionPlanningof ExecutiveOfficers • CommitmenttoBoardRefreshment • EnhancedShareholderEngagementProgram i NOTICEOFANNUALMEETINGANDPROXYSTATEMENT2017