8/6/2019 08. CEO Compensation - Quick Guide Series

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8/6/2019 08. CEO Compensation - Quick Guide Series

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F]FCV^@XF CLJYFOSG^@LO

^mf cljpfosgt`lo prldrgj sfrvfs tmrff jg`o purplsfs.

7. @t just gttrgct fxfcut`vfs w`tm tmf sa`bbs, fxpfr`focfs, gon efmgv`lrgbprlh`bf ofcfssgry tl succffn `o tmf pls`t`lo.

5. @t just ef suhh c`fot tl rftg`o tmfsf `on`v`nugbs, sl tmfy nl olt bfgvf hlrgbtfrogt`vf fjpblyjfot.

3. @t just jlt`vgtf tmfj tl pfrhlrj `o g jgoofr clos`stfot w`tm tmf strgtfdygon r`sa-prlh`bf lh tmf lrdgo`zgt`lo gon n`sclurgdf sfbh-`otfrfstfn

efmgv`lr.

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FBFJFO^S LH CLJYFOSG^@LO

^mf cljpfosgt`lo pgcagdf `ocbunfs sljf lr gbb lh tmf hlbblw`od;

Goougb sgbgry

H`xfn cgsm pgyjfot jgnf fvfoby lvfr tmf yfgr. ^mf @US b`j`ts tmf tgx nfnuct`e`b`tylh cljpfosgt`lo drfgtfr tmgo $7 j`bb`lo, uobfss `t `s pfrhlrjgocf nr`vfo.

Goougb elous

Gnn`t`logb pgyjfot (usugbby cgsm) gwgrnfn h pfrhlrjgocf fxcffns prfnftfrj`ofntgrdfts. Dfofrgbby fxprfssfn gs g pfrcfotgdf lh sgbgry gon `ocbunfs g dugrgotffnj`o`juj gon g spfc`h`fn jgx`juj. grdfts grf egsfn lo qugot`tgt`vf gon/lr

qugb`tgt`vf hgctlrs.

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FBFJFO^S LH CLJYFOSG^@LO

Stlca lpt`los

U`dmt tl euy smgrfs `o tmf huturf gt g h`xfn fxfrc`sf pr`cf, dfofrgbby fqugb tl stlcapr`cf lo tmf drgot ngtf. ^yp`cgbby vfst fvfoby (f.d., goougbby lvfr hlur yfgrs) gonfxp`rf gt tmf fon lh tmf tfrj (dfofrgbby tfo yfgrs).

Ufstr`ctfn stlca

Lutr`dmt drgot lh smgrfs tmgt grf rfstr`ctfn `o trgoshfrge`b`ty gon grf suekfct tlvfst`od. Locf vfstfn, tmfy grf fclolj`cgbby fqu`vgbfot tl lutr`dmt lwofrsm`p lhstlca.

Yfrhlrjgocf uo`ts (smgrfs)Cgsm (lr stlca) drgotfn `h spfc`h`fn tgrdfts grf jft lvfr g tmrff- tl h`vf-yfgr pfr`ln.S`zf lh tmf gwgrn `s dfofrgbby fxprfssfn gs g pfrcfotgdf lh egsf sgbgry.Yfrhlrjgocf uo`ts grf s`j`bgr tl g blodfr-tfrj vfrs`lo lh tmf goougb elous.

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FBFJFO^S LH CLJYFOSG^@LO

Yfrqu`s`tfs

Ltmfr gjfo`t`fs purcmgsfn lr prlv`nfn ey tmf cljpgoy (sucm gs pfrslogb usf lhcljpgoy g`rpbgof).

Clotrgctugb gdrffjfots

Ltmfr cgsm lr stlca pgyjfots st`pubgtfn `o tmf fjpblyjfot gdrffjfot, sucm gssfvfrgocf, plst-rft`rfjfot closubt`od, gon cmgodf-`o-clotrlb pgyjfots (dlbnfopgrgcmutfs).

Efofh`ts

Ltmfr efofh`ts sucm gs mfgbtm osurgocf, plst-rft`rfjfot mfgbtm `osurgocf, >97(a),suppbfjfotgb fxfcut`vf rft`rfjfot pbgos (SFUYs), b`hf `osurgocf, pgyjfot hlr usf lhh`ogoc`gb pbgoofr, gon cfrtg`o tgx rf`jeursfjfots.

Nl cljpfosgt`lo prldrgjs offn tl ef tm`s cljpb`cgtfn

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UFS^U@C^@LOS LO CLJYFOSG^@LO

Cljpfosgt`lo prldrgjs j`dmt gbsl ef suekfct tl rfstr`ct`los;

Stlca lwofrsm`p du`nfb`ofs

Fxfcut`vf `s rfqu`rfn tl lwo g j`o`juj gjluot lh cljpgoy stlca, dfofrgbbyfxprfssfn gs g jubt`pbf lh egsf sgbgry (f.d., h`vf t`jfs).

Ybfnd`od rfstr`ct`los

Fxfcut`vf `s rfstr`ctfn hrlj us`od smgrfs gs clbbgtfrgb hlr pfrslogb lr jgrd`o blgo.

Cbgwegcas

Cljpgoy cgo rfcbg`j cljpfosgt`lo `o tmf huturf `h `t nftfrj`ofs tmgt `t smlubn oltmgvf effo gwgrnfn. Cbgwegca plb`c`fs grf rfqu`rfn uonfr tmf Nlnn-Hrgoa Gct.

^mf jlst cljjlo tr`ddfrs lh g cbgwegca grf g h`ogoc`gb rfstgtfjfot, ftm`cgb j`sclonuct, lr

v`lbgt`lo lh g olocljpftf cbgusf. Cbgwegcas tfon tl `jprlvf h`ogoc`gb rfplrt`od qugb`ty.

Fqu`bgr (5973)1 Cmgo, Cmfo, Cmfo, gon Pu (5975)

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NFS@DO@OD ^MF CLJYFOSG^@LO YULDUGJ

^mf cljpfosgt`lo cljj`ttff rfcljjfons cljpfosgt`lo lh tmf CFL gonltmfr fxfcut`vf lhh`cfrs.

Ygcagdfs grf gpprlvfn ey `onfpfonfot n`rfctlrs lh tmf hubb elgrn.Smgrfmlbnfrs gpprlvf fqu`ty-egsfn cljpfosgt`lo.

Nftg`bs grf n`scblsfn `o tmf goougb prlxy;

CLJYFOSG^@LO YM@BLSLYMP YGP FWV@^P, CFL vs. L^MFU F]FCS

FBFJFO^S LH CLJYFOSG^@LO YGP FWV@^P, CFL vs. GXFUGDF FJYBLPFF

^L^GB CLJYFOSG^@LO GTGUNFN S^LCA LTOFUSM@Y DV@NFB@OFS

^L^GB CLJYFOSG^@LO UFGB@[FN CBGTEGCA YLB@C@FS

YFFU DULVY, CLJYFOSG^@LO NFS@DO SFXFUGOCF GDUFFJFO^S

YFFU DULVY, YFUHLUJGOCF DLBNFO YGUGCMV^FS

CU@^FU@G HLU GTGUN@OD XGU@GEBF YGP YLS -UF^@UFJFO^ CLJYFOSG^@LO

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NF^FUJ@O@OD ^MF BFXFB LH CLJYFOSG^@LO

Jlst elgrns efocmjgra CFL pgy gdg`ost g pffr drlup lh cljpgo`fscljpgrgebf `o s`zf, `onustry, gon/lr dfldrgpmy.

Cljjlo prgct`cf tgrdfts cgsm cljpfosgt`lo (sgbgry + elous) gt 69tmpfrcfot`bf gon blod-tfrj pgy gt tmf 46tm pfrcfot`bf.

^mfrf grf pltfot`gb nrgwegcas tl efocmjgra`od;

J`dmt bfgn tl rgtcmft`od.

@s egsfn lo s`zf rgtmfr tmgo vgbuf crfgt`lo.

@s m`dmby nfpfonfot lo cljpgo`fs `ocbunfn `o pffr drlup.

Cljpgo`fs `ocbunf uorfbgtfn h`rjs `o pffr drlup,gon tmf `ocbus`lo lh tmfsf h`rjs tfons tl `ocrfgsf pgy.

Hgubafonfr gon Pgod (5979)

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CLJYFOSG^@LO CLOSVB GO^S

Jlst cljpgo`fs usf g tm`rn-pgrty closubtgot tl gnv`sf lo cljpfosgt`lobfvfbs gon prldrgj nfs`do.

Cljpfosgt`lo closubtgots j`dmt ef suekfct tl clohb`cts lh otfrfst h tmfyprlv`nf ltmfr sfrv`cfs tl tmf cljpgoy, sucm gs efofh`ts closubt`od lr

pfos`lo gssft jgogdfjfot

CFL pgy `s m`dmfr gjlod cljpgo`fs tmgt usf g

closubtgot. Fv`nfocf suddfsts tm`s `s nuf tl

dlvfrogocf qugb`ty, olt tmf usf lh tmf closubtgot.

Cloylo, Yfca, gon Sgnbfr (5990)1 Grjstrlod, @ttofr, gon Bgrcafr (5975)

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CLJYFOSG^@LO BFXFBS

CLJYFOSG^@LO YG@N ^L V.S. CFLs

H@UJ S@[F^L^GB F]YFC^FNCLJYFOSG^@LO

JGUAF^ XGBVF($ MLVSGONS)

^lp 799 $73,473,999 $79>,>73,999

797 tl 699 $79,868,999 $57,479,999

697 tl 7,999 $8,>6=,999 $8,9=8,999

7,997 tl 5,999 $3,0=7,999 $5,978,999

5,997 tl 3,999 $5,905,999 $85>,999

3,997 tl >,999 $099,999 $7>>,999

7 tl >,999 $5,=80,999 $7,7>3,999Jfn`go vgbufs. Egsfn lo Fqu`bgr cljpfosgt`lo ngtg, h`scgb yfgrs fon`od Kuof 5973 tl Jgy 597>.

8/6/2019 08. CEO Compensation - Quick Guide Series

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CLJYFOSG^@LO BFXFBS

Grf CFLs lvfrpg`n t`jfs Jfgo; 78.8 t`jfs 09tm pfrcfot`bf; 35.= t`jfs M`dmfst lesfrvgt`lo; =57 t`jfs

Crgwhlrn, Ofbslo, Uluotrff (597>)

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CLJYFOSG^@LO J@]

^mf elgrn gbsl nftfrj`ofs tmf structurf lh CFL pgy.

^mf j`x lh cljpfosgt`lo smlubn ef gpprlpr`gtf tl gttrgct, rftg`o, gonjlt`vgtf fxfcut`vfs o tmf smlrt gon blod tfrjs.

CLJYFOSG^@LO YG@N ^L V.S. CFLs

H@UJ S@[F SGBGUP ELOVSS^LCA

LY^@LOS

UFS^U@C^FNS^LCA & BLOD-^FUJ GTGUNS

L^MFU

^lp 799 7=.0% 53.>% =.8% 3=.=% 79.3%

797 tl 699 7>.3% 59.6% 7>.=% >3.3% 4.5%

697 tl 7,999 78.7% 57.7% 7>.7% >5.7% 8.8%

7,997 tl 5,999 57.7% 55.9% 73.5% 3=.>% 6.3%

5,997 tl 3,999 39.>% 70.4% 76.8% 50.6% >.=%

3,997 tl >,999 >8.0% 76.0% 7>.6% 78.9% 8.=%

7 tl >,999 5=.6% 70.8% 7>.3% 37.6% 8.9%

Egsfn lo Fqu`bgr cljpfosgt`lo ngtg, h`scgb yfgrs fon`od Kuof 5973 tl Jgy 597>.

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SMLU -^FUJ @OCFO^@XFS

Smlrt-tfrj ocfot`vfs lhhfr go goougb pgyjfot (usugbby cgsm) hlr gcm`fv`odprfnftfrj`ofn pfrhlrjgocf lekfct`vfs.

^mf s`zf lh tmf elous `s fxprfssfn `o tfrjs lh g tgrdft, w`tm g j`o`juj gonjgx`juj bfvfb.

^mf elgrn smlubn clos`nfr tmf hlbblw`od;

Mlw n`hh`cubt grf tmf pfrhlrjgocf tgrdfts