2018 Guide to Effective Proxies

2.4 Proxy summary | 91 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES RED HAT, INC. PROXYSUMMARY PERFORMANCE FAST FACTS 25 th Anniversary CELEBRATEDONMARCH26,2018 64 CONSECUTIVE QUARTERS OF REVENUE GROWTH AS OF THE END OFFISCAL2018 $3.4 BILLION OFTOTALBACKLOG ATENDOFFISCAL2018 21% YEAR-OVER-YEAR TOTAL REVENUE GROWTHINFISCAL2018 Red Hat Performance and Executive Compensation FINANCIALPERFORMANCE (U.S.DOLLARSINMILLIONS,EXCEPTSTOCKPRICE) InFiscal2018,RedHatachievedover$2.9billionintotalrevenueanddeliveredgrowthinrevenue,operatingincome, operatingmargin,operatingcashflowandstockpriceatfiscalyearend. FISCAL2017 - FISCAL2016 - TOTAL REVENUE OPERATING INCOME OPERATING CASHFLOW* STOCKPRICE AtFiscalYear-End OPERATING MARGIN FISCAL2018 - $2,052.2 $288.0 $736.3 $65.35 14.0% $2,411.8 $332.2 $783.7 $82.81 13.8% $2,920.5 $472.4 $923.1 $147.40 16.2% * InMarch2016,RedHatelectedtoadoptAccountingStandardsUpdate2016-09onaretrospectivebasiswhichincreasedoperatingcash flowby$20.2millionforFiscal2016. PAYANDPERFORMANCEATAGLANCE RedHat’sFiscal2018financialandstockpriceperformancedroveover80%ofthecompensationearnedbyourexecutives duringFiscal2018,reflectingthelinkagebetweenpayandperformancebuiltintoourexecutivecompensationprogram design.PayoutsforFiscal2018performancereflect: • strongfinancialresultsthatoutperformedthemajorityofourcompensationpeercompaniesovertheapplicable performanceperiodsunderouroperatingperformanceshareunits,andyieldedabovetargetpayoutsearnedunderour annualcashbonusplan;and • stockpricegrowthoverathree-yearperiodthatoutperformedthemajorityofourcompensationpeercompaniesunder ourtotalstockholderreturn(“TSR”)performanceshareunits. COMPONENT PERFORMANCEAGAINSTINCENTIVEMETRICS PAYOUT% AnnualCash BonusPlan Companyfinancialperformanceontotalrevenue,non-GAAPoperatingincomeandnon-GAAP operatingcashflow: 167% oftarget 167% oftarget (averageforall NamedOfficers) Individualperformanceobjectives(averageofallNamedOfficers): 166% oftarget Operating Performance ShareUnits Revenueandoperatingincomegrowthrelativetocompensationpeercompaniesforoperating performanceshareunitsgrantedinFiscal2016(overthreeyears)andFiscal2017(overtwoyears) 200% oftarget (average) TSR Performance ShareUnits TSRgrowthrelativetocompensationpeercompaniesoverthreeyears(Fiscal2016–Fiscal2018) 200% oftarget 5 Total of 04 pages in section PROXYSUMMARY OURBOARD FAST FACTS ANNUALDIRECTOR ELECTIONS MAJORITY VOTINGSTANDARD INDEPENDENT BOARDCHAIRANDCOMMITTEEMEMBERS DIRECTORNOMINEES NAME AGE PRIMARY OCCUPATION COMMITTEE MEMBERSHIP EXPERIENCE& EXPERTISE INDEPENDENT SohaibAbbasi 61 Chairman,Chief ExecutiveOfficer andPresident(Retired), InformaticaCorporation Compensation (Chair),Audit W.SteveAlbrecht 71 ProfessorofAccounting (Retired),BrighamYoung University,MarriottSchoolof Management Audit(Chair), Nominatingand CorporateGovernance CharleneT.Begley 51 SeniorVicePresidentand ChiefInformationOfficer (Retired),GeneralElectric Company Audit,Nominatingand CorporateGovernance NarendraK.Gupta (BoardChair) 69 ManagingDirector, NexusVenturePartners Compensation KimberlyL.Hammonds 51 FormerGroupChiefOperating Officer,DeutscheBankAG Compensation, Nominatingand CorporateGovernance WilliamS.Kaiser 62 Partner,GreylockPartners Nominatingand CorporateGovernance (Chair) JamesM.Whitehurst 50 PresidentandCEO, RedHat,Inc. AlfredW.Zollar 64 ExecutivePartner, SirisCapitalGroup,LLC IT Industry Public Company Board Senior Leadership Financial Global Technology & Innovation 3 PROXY SUMMARY ThisProxySummaryprovidesgeneralinformationaboutRedHat,Inc.,referredtoas“RedHat,”“theCompany,” “we,”“us,”and“our”inthisProxyStatement,andhighlightscertaininformationcontainedelsewhereinthisProxy Statement.Asitisonlyasummary,pleaserefertotheentireProxyStatementandthe2018AnnualReportto Stockholdersbeforeyouvote.OurfiscalyearendsonthelastdayofFebruary,andweidentifyourfiscalyearsby thecalendaryearsinwhichtheyend.Forexample,werefertothefiscalyearendedFebruary28,2018as“Fiscal 2018.”“GAAP”meansU.S.generallyacceptedaccountingprinciples. 2018ANNUALMEETINGOFSTOCKHOLDERS WHERE? RedHat’sCorporateHQ: 100EastDavieStreet Raleigh,NorthCarolina27601 WHEN? Thursday August9,2018 8:30a.m.Eastern WHOMAYATTEND&VOTE? Stockholdersofrecordat thecloseofbusinesson June15,2018 AGENDAITEMSANDBOARDRECOMMENDATIONS ITEM RECOMMENDATION 1. ElectSohaibAbbasi,W.SteveAlbrecht,CharleneT.Begley,NarendraK.Gupta, KimberlyL.Hammonds,WilliamS.Kaiser,JamesM.WhitehurstandAlfredW.Zollartothe BoardofDirectors,eachtoserveforaone-yearterm FOR 2. Approve,onanadvisorybasis,aresolutionrelatingtoRedHat’sexecutivecompensation FOR 3. RatifytheselectionofPricewaterhouseCoopersLLPasRedHat’sindependentregistered publicaccountingfirmforthefiscalyearendingFebruary28,2019 FOR ELECTRONICVERSIONS ThisProxyStatementandRedHat’s2018AnnualReporttostockholdersareavailableat: www.edocumentview.com/RHT . MAILINGOFNOTICE ANoticeofInternetAvailabilityofProxyMaterials(orthisProxyStatementandthe accompanyingmaterials)arebeingmailedonoraboutJune28,2018tostockholdersof recordasofthecloseofbusinessonJune15,2018. 2 REDHAT,INC. 2018PROXYSTATEMENT SBA COMMUNICATIONS CORPORATION PROXYSUMMARY (1) For2016,AdjustedEBITDA,AFFOandAFFOPerSharearepresentednetoftheOi Reserve.SeeExhibitAformoreinformation. (2) SeereconciliationofGAAPtoNon-GAAPfinancialmeasuresinExhibitAtothisproxystatement. Thisperformancehascontributedtoourabilitytocreatesignificantshareholdervalueaswedelivered 130%TotalShareholderReturn(“TSR”)forthefiveyearsendedDecember31,2017.Asthechart belowdemonstrates,ourTSRoverthatperiodexceedstheTSRoftheS&P500Index(approximately 108%),ourlargepublictowercompanypeergroup(approximately92%)andtheFTSENAREITAll EquityREITsIndex.(approximately60%). $0 $50 $100 $150 $200 $250 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 InDollars TotalShareholderReturns SBACommunicationsCorporation FTSENAREITAllEquityREITs Index S&P500 Index LargePublicTowerCompanyPeers FormoreinformationrelatingtoSBA’sfinancialperformance,pleasereviewourAnnualReporton Form10-KforthefiscalyearendedDecember31,2017,filedwiththeSEConMarch1,2018. GOVERNANCEANDEXECUTIVECOMPENSATIONHIGHLIGHTS Ourstrongcorporategovernancepracticesandexecutivecompensationstandardsinclude: Š Meaningfulproxyaccessrightforshareholders . (Page18) Š Adoptionofdoubletriggerforaccelerationofalloutstandingandfutureequityawards heldbyourCEOandallequityawardsissuedtootherofficersafter2017. (Page27) Š Robustexecutivecompensationrecoupmentor“clawback”policy . (Page18) Š Leadindependentdirectortoensureindependentoversight . (Page13) Š Directorsandofficersaresubjecttorigorousstockownershipguidelines .(Page41) Š 90%ofourCEO’stargettotalcompensationandanaverageof84%ofourothernamed executiveofficers’targettotalcompensationisat-riskorperformance-based .(Page27) Š Majorityvotingstandardanddirectorresignationpolicyinuncontestedelections . (Page8) Š Executivesprohibitedfrompledgingsharesthataresubjecttothestockownership requirementsandstrictlyprohibitedfromhedginganyshares . (Page41) Š Boardconductsannualself-evaluationtodetermineeffectivefunctioning . (Page14) 2 SBACommunicationsCorporation | 2018ProxyStatement TotalShareholderReturns PROXY SUMMARY Thisproxy summary highlightsinformation containedelsewhereinthis proxy statement anddoesnot containallinformation that you shouldreviewandconsider. Pleaseread the entire proxy statement withcare before voting. 2018ANNUALMEETING Date andTime: Thursday, May 17, 2018, at 10:00 a.m. localtime Place: 8051CongressAvenue,BocaRaton, Florida33487 RecordDate: March 16, 2018 Voting: Eachshare of SBAClassA common stock outstandingat the closeof business on March 16, 2018has onevote on eachmatter that is properly submitted for a vote at the annualmeeting. PROPOSALSANDBOARDRECOMMENDATION PROPOSAL BoardRecommendation PageReference (for more details) Electionof Directors FOR eachdirector nominee 8 Ratificationof EYas Auditors FOR 55 Advisoryvote on executivecompensation FOR 59 Approvalof the 2018EmployeeStock PurchasePlan FOR 61 2017FINANCIALHIGHLIGHTS In 2017, SBAcontinuedto deliversteady financialandoperationalresults, andweonceagainledthe tower industry inTowerCashFlowMargin, AdjustedEBITDAMargin andAFFO Per Share. Highlights include: (dollarsinmillions) 2015 2016 2017 Totalrevenue $ 1,638 $ 1,633 $ 1,728 Net Income (loss) $ (176) $ 76 $ 104 AFFO (1)(2) $ 734 $ 761 $ 841 TowerCount 25,465 26,197 27,909 $1,095 $1,123 $1,204 2015 2016 2017 AdjustedEBITDA (1)(2) (inmillions) $5.69 $6.08 $6.95 2015 2016 2017 AFFOPerShare (1)(2) (indollars) $1,141 $1,199 $1,278 2015 2016 2017 TowerCashFlow (2) (inmillions) SBACommunicationsCorporation | 2018ProxyStatement 1 AdjustedEBITDA(1)(2)(inmillions)AFFOPerShare(1)(2)(indollars)TowerCashFlow(2)(inmillions)