2019 PROXY STATEMENT Table of Contents LETTER FROM OUR CHAIRMAN, PRESIDENT AND CEO AND INDEPENDENT LEAD DIRECTOR 4 Proxy Summary ..........................................................................................................................................................................................................................................................................................................................8 PROXY STATEMENT 12 CORPORATE GOVERNANCE 12 Board Leadership Structure ..................................................................................................................................................................................................................................................................................13 Board Refreshment ...........................................................................................................................................................................................................................................................................................................13 Stockholder Engagement .........................................................................................................................................................................................................................................................................................14 Board Meetings and Committees .................................................................................................................................................................................................................................................................14 Annual Board Self-Evaluation ..............................................................................................................................................................................................................................................................................16 Director Independence .................................................................................................................................................................................................................................................................................................16 Certain Relationships and Related Person Transactions ..............................................................................................................................................................................................17 Risk Oversight ...........................................................................................................................................................................................................................................................................................................................18 Code of Conduct ..................................................................................................................................................................................................................................................................................................................19 Compensation Consultants ...................................................................................................................................................................................................................................................................................20 BOARD OF DIRECTORS MATTERS 20 Election of Directors at 2019 Annual Meeting (Item 1) .....................................................................................................................................................................................................20 Board Composition ...........................................................................................................................................................................................................................................................................................................25 DIRECTOR COMPENSATION 32 Overview of Non-Employee Director Compensation ..........................................................................................................................................................................................................32 Directors Deferred Compensation Plan.................................................................................................................................................................................................................................................32 Equity-Based Awards to Non-Employee Directors ...............................................................................................................................................................................................................32 EXECUTIVE OFFICERS 35 Management Development and Succession Planning ....................................................................................................................................................................................................37 STOCK OWNERSHIP 38 Security Ownership of Officers and Directors ...............................................................................................................................................................................................................................38 Security Ownership of Certain Beneficial Owners ..................................................................................................................................................................................................................39 Stock Ownership Guidelines ................................................................................................................................................................................................................................................................................39 Stock Trading Restrictions .......................................................................................................................................................................................................................................................................................40 Employee, Officer and Director Hedging .............................................................................................................................................................................................................................................40 DELINQUENT SECTION 16(a) REPORTS 40 EQUITY COMPENSATION PLAN INFORMATION 40 COMPENSATION DISCUSSION AND ANALYSIS 41 Executive Summary ..........................................................................................................................................................................................................................................................................................................41 Philosophy of Executive Compensation Program ..................................................................................................................................................................................................................44 How Executive Pay is Established ................................................................................................................................................................................................................................................................46 What We Paid and Why – Compensation for NEOs ...........................................................................................................................................................................................................49 Executive Compensation Governance and Other Information .............................................................................................................................................................................59 REPORT OF THE COMPENSATION AND LEADERSHIP DEVELOPMENT COMMITTEE 60 EXECUTIVE COMPENSATION 61 Summary Compensation Table ........................................................................................................................................................................................................................................................................61 Grants of Plan-Based Awards ............................................................................................................................................................................................................................................................................63 Outstanding Equity Awards at Year-End ..............................................................................................................................................................................................................................................64 Option Exercises and Stock Vested ...........................................................................................................................................................................................................................................................66 Fiscal 2019 Nonqualified Deferred Compensation ................................................................................................................................................................................................................67