2019 PROXY PAPER™ GUIDELINES AN OVERVIEW OF THE GLASS LEWIS APPROACH TO PROXY ADVICE SHAREHOLDER INITIATIVES Table of Contents GUIDELINES INTRODUCTION ........................................................................................................................ 1 Summary of Changes for the 2019 Shareholder Initiatives Policy Guidelines ............................................................. 2 GOVERNANCE ..................................................................................................................................................... 4 Board and Committee Composition .............................................................................................................................................4 CEO Succession Planning .................................................................................................................................................................4 Conflicting and Excluded Proposals .............................................................................................................................................4 Counting Shareholder Votes ............................................................................................................................................................6 Cumulative Vote for the Election of Directors ..........................................................................................................................6 Declassification of the Board ..........................................................................................................................................................6 Dual-Class Share Structures ............................................................................................................................................................ 7 Exclusive Forum Provisions .............................................................................................................................................................. 7 Facilitating Nonbinding Shareholder Proposals (Australia) ................................................................................................8 Independent Chair ...............................................................................................................................................................................8 Majority Vote for the Election of Directors ................................................................................................................................8 Mutual Fund Shareholder Proposals .............................................................................................................................................9 Poison Pills (“Shareholder Rights Plans”) ...................................................................................................................................9 Proxy Access ..........................................................................................................................................................................................9 Reimbursement of Solicitation Expenses ................................................................................................................................. 10 Requiring Two or More Nominees per Board Seat ............................................................................................................... 10 Right of Shareholders to Act by Written Consent ................................................................................................................ 10 Right of Shareholders to Call a Special Meeting ................................................................................................................... 10 Supermajority Vote Requirements ................................................................................................................................................11 COMPENSATION ................................................................................................................................................12 Accelerated Vesting of Shares in the Event of a Change in Control ..............................................................................12 Advisory Votes on Compensation ................................................................................................................................................12 Compensation Consultants .............................................................................................................................................................13 Disclosure of Compensation ...........................................................................................................................................................13 Equity Holding Requirements ........................................................................................................................................................13 Golden Coffins ..................................................................................................................................................................................... 14 Hedging of Stock ............................................................................................................................................................................... 14 Linking Executive Pay to Environmental and Social Criteria ............................................................................................ 14 I Linking Executive Pay with Performance ................................................................................................................................. 14 Pledging of Shares ..............................................................................................................................................................................15 Adopt or Amend Recoupment Provisions (“Clawbacks”) ..................................................................................................16 Retirement Benefits and Severance.............................................................................................................................................16 Tax Gross-Ups .......................................................................................................................................................................................17 ENVIRONMENTAL AND SOCIAL ISSUES .................................................................................................18 Overall Approach ................................................................................................................................................................................18 Animal Welfare .....................................................................................................................................................................................19 Climate Change Reporting ..............................................................................................................................................................19 Diversity Reporting .......................................................................................................................................................................... 20 Energy-Related Proposals ............................................................................................................................................................. 20 Environmental and Social Risk Oversight................................................................................................................................ 20 Equal Employment Opportunity Principles ..............................................................................................................................21 MacBride Principles ............................................................................................................................................................................................... 21 Holy Land Principles .............................................................................................................................................................................................. 21 Foreign Government Business Policies ......................................................................................................................................21 Gender Pay Equity .............................................................................................................................................................................22 Genetically Modified Organisms ..................................................................................................................................................22 Human Rights ......................................................................................................................................................................................22 Internet Censorship ...........................................................................................................................................................................22 Military and Government Business Policies .............................................................................................................................23 Nondiscrimination Policies .............................................................................................................................................................23 Nuclear