Notice of 2021 Annual Meeting of Stockholders & Proxy

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Notice of 2021 Annual Meeting of Stockholders & Proxy NOTICE OF 2021 ANNUAL MEETING OF STOCKHOLDERS & PROXY STATEMENT Letter to our Stockholders April 30, 2021 Dear Stockholders, You are cordially invited to attend the 2021 annual meeting of stockholders at 10:00 a.m. on Thursday, June 10, 2021. Due to the ongoing coronavirus (COVID-19) public health crisis, the 2021 annual meeting of stockholders will be conducted online via live audio webcast at www.virtualshareholdermeeting.com/DISCA2021. Holding the 2021 annual meeting of stockholders in person could pose a risk to the health and safety of our stockholders, employees and directors, and as a result, we have decided to hold the 2021 annual meeting virtually. You will be able to participate, submit questions and vote your shares electronically. If you hold shares of Series A or Series B common stock or Series A-1 convertible preferred stock, you will be asked to vote on important matters, which are listed in the Notice of Annual Meeting of Stockholders, which appears on the following page. The Board of Directors recommends a vote FOR Proposals One and Two. Your vote is very important, regardless of the number of shares you own. Whether or not you plan to attend the 2021 annual meeting online, please vote as soon as possible to make sure that your shares are represented. Thank you for your continued support and interest in our company, and I look forward to the 2021 annual meeting. Sincerely, Robert J. Miron Board Chair Discovery, Inc. 2021 Proxy Statement 3 Notice of Annual Meeting of Stockholders Date and time: Virtual web conference: Record date: Thursday, June 10, 2021 www.virtualshareholdermeeting.com/DISCA2021 April 12, 2021 at 10:00 a.m., Eastern Time To Discovery Stockholders: You are cordially invited to attend, and notice is hereby given of, the 2021 Annual Meeting of Stockholders, or 2021 Annual Meeting, of Discovery, Inc. to be held via the Internet at a virtual web conference at www.virtualshareholdermeeting.com/DISCA2021 on Thursday, June 10, 2021 at 10:00 a.m., Eastern Time. In light of the ongoing COVID-19 pandemic, for the health and well-being of our stockholders, employees and directors, we have determined that the annual meeting will be held in a virtual meeting format only, with no physical in- person meeting. The 2021 Annual Meeting will be held for the following purposes: 1 To elect six directors, three Class I Common Stock directors to be voted on by the holders of our Series A common stock and Series B common stock, voting together as a single class, and three Series A-1 Preferred Stock directors to be voted on by the holders of our Series A-1 convertible preferred stock, voting separately as a class. 2 To ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021. The stockholders will also act on any other business that may properly come before the 2021 Annual Meeting or adjournments thereof. The close of business on April 12, 2021 was the record date for determining the holders of shares of our Series A and Series B common stock and Series A-1 convertible preferred stock entitled to notice of and to vote at the 2021 Annual Meeting and any postponement or adjournment thereof. A complete list of stockholders entitled to vote at the 2021 Annual Meeting will be available for inspection by stockholders during the entirety of the 2021 Annual Meeting at www.virtualshareholdermeeting.com/DISCA2021. Further information about how to attend the 2021 Annual Meeting online, vote your shares online during the 2021 Annual Meeting and submit questions online during the 2021 Annual Meeting is included in the accompanying proxy statement. By Order of the Board of Directors, Tara L. Smith Senior Vice President, Securities & Executive Compensation and Corporate Secretary April 30, 2021 This proxy statement, our proxy card and our Annual Report on Form 10-K for the year ended December 31, 2020 were first made available to stockholders on or about April 30, 2021. 4 Discovery Table of Contents PROXY STATEMENT SUMMARY 6 AUDIT MATTERS 30 Proposals to be Voted on 6 Proposal 2: Ratification of Appointment of Independent Registered Our Board of Directors 7 Public Accounting Firm 30 ESG 8 Audit Firm Fees and Services 30 Executive Compensation 11 Audit Committee Pre-Approval Policy 31 Proposal 1: Election of Directors 13 Audit Committee Report 31 Nominees for Election 13 EXECUTIVE COMPENSATION 32 Directors with Terms Extending Compensation Committee Report 32 Beyond the 2021 Annual Meeting 17 Compensation Discussion and Analysis 32 CORPORATE GOVERNANCE 20 Executive Compensation Tables 56 Corporate Governance Guidelines 20 SECURITIES AUTHORIZED FOR ISSUANCE UNDER Board Leadership Structure 20 EQUITY COMPENSATION PLANS 72 Director Independence 20 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL Director Nomination Process 21 OWNERS AND MANAGEMENT 73 Evaluations of Board Performance 22 Security Ownership of Certain Beneficial Owners 73 Transactions with Related Persons 22 Security Ownership of Management 74 Board Role in Risk Oversight 22 2021 ANNUAL MEETING INFORMATION – FREQUENTLY ASKED QUESTIONS 77 ESG 23 ADDITIONAL INFORMATION 81 Board Role in Human Capital Management 23 Director Orientation and Continuing Education 23 Availability of Annual Report 81 Code of Ethics 23 Submission of Stockholder Proposals for 2022 Annual Meeting 81 Stockholder Communication with Directors 23 Importance Notice of Internet Availability of Board Meetings and Committees 24 Proxy Materials 81 Director Compensation 28 Other Business 82 2021 Proxy Statement 5 Proxy Statement Summary The Board of Directors (the “Board”) of Discovery, Inc. (the “Company,” “we,” “us,” “our” or “Discovery”) is furnishing this proxy statement and soliciting proxies in connection with the proposals to be voted on at the Discovery 2021 Annual Meeting of Stockholders, or our 2021 Annual Meeting, and any postponements or adjournments thereof. This summary highlights certain information contained in this proxy statement but does not contain all of the information you should consider when voting your shares. Please read the entire proxy statement carefully before voting. 2021 Annual Meeting Information Meeting Agenda Date June 10, 2021 Proposals Time 10:00 a.m. Eastern Time • Election of six Board-recommended director nominees Location Live webcast at: • Ratification of the appointment of PricewaterhouseCoopers LLP www.virtualshareholdermeeting.com/DISCA2021 as our independent registered public accounting firm for the Record Date April 12, 2021 fiscal year ending December 31, 2021 Admission To attend the live webcast of the 2021 Annual • Transaction of other business that may properly come before Meeting, you will need to log in to the meeting www.virtualshareholdermeeting.com/DISCA2021 using the control number shown on your Notice of Internet Availability of Proxy Materials, proxy card or voting instruction form. Stock DISCA, DISCB, DISCK Symbol(s) Stock Nasdaq Global Select Market (“Nasdaq”) Exchange Corporate corporate.discovery.com Website Proposals to be Voted on The following proposals will be voted on at the 2021 Annual Meeting. Proposal One Election of Directors Six director nominees will be voted on at the meeting. Three Class I Common Stock director nominees will be voted upon and elected by the holders of shares of our Series A common stock and Series B common stock, voting together as a class. Three Series A-1 Preferred Stock director nominees will be voted upon and elected by the holders of shares of our Series A-1 convertible preferred stock voting separately as a class. The Board of Directors recommends a vote “FOR” the election of each of the nominated directors. See page 13 Proposal Two Ratification of Appointment of Independent Registered Public Accounting Firm The Audit Committee has evaluated the performance of PricewaterhouseCoopers LLP (“PwC”) and has re-appointed them as our independent registered public accounting firm for the fiscal year ending December 31, 2021. You are requested to ratify the Audit Committee’s appointment of PwC. The Board of Directors recommends a vote “FOR” this proposal. See page 30 6 Discovery Our Board of Directors The following provides summary information about each director nominee and each director whose term will extend beyond the 2021 Annual Meeting. Committee Membership Name Director Since Independent AC CC NCGC FC EC Proxy Statement Summary Proxy Class I Common Stock Director Nominees Robert R. Beck 2008 M Independent Financial Consultant Robert L. Johnson 2021 Founder and Chairman, The RLJ Companies, LLC J. David Wargo 2008 C M M President, Wargo & Company, Inc. Series A-1 Preferred Stock Director Nominees Robert J. Miron 2008 C C Independent Board Chair, Discovery, Inc. Steven A. Miron 2008 M M CEO, Advance/Newhouse Partnership Susan M. Swain 2016 M M Co-CEO and President, C-SPAN Class II Common Stock Directors with Terms Expiring in 2022 Paul A. Gould 2008 M C Managing Director and Executive President, Allen & Company, LLC Kenneth W. Lowe Former Chairman, President and CEO, Scripps Networks 2018 M M Interactive, Inc. Daniel E. Sanchez 2017 M Retired Attorney, Private Practice Class III Common Stock Directors with Terms Expiring in 2023 Robert R. Bennett 2008 C M Managing Director, Hilltop Investments, LLC John C. Malone Chairman, Liberty Media Corporation, Liberty Global, plc and 2008 M Liberty Broadband Corp. David M. Zaslav 2008 M President and Chief Executive Officer, Discovery, Inc. AC - Audit Committee C - Chair CC - Compensation Committee M - Member NCGC - Nominating and Corporate Governance Committee FC - Finance Committee EC - Executive Committee 2021 Proxy Statement 7 Proxy Statement Summary Proxy ESG Discovery has a long history of being purposeful and doing the right thing, and over the years we have undertaken a number of initiatives to promote sustainability within and outside the walls of the Company. Since 2018, we’ve launched a Global Sustainability Committee, identified a CEO direct report with responsibility for overseeing our sustainability efforts, and, in 2020, we launched a website to tell our story and document our current and future efforts.
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