SCHN 2018 Proxy Statement

Contents PROXY MATERIALS Page 3 Proxy Summary 13 Proxy Statement 13 Questions and Answers about these Proxy Materials and Voting 17 Voting Securities and Principal Shareholders 18 Section 16(a) Beneficial Ownership Reporting Compliance COMPENSATION DISCUSSION AND ANALYSIS Page 31 Overview 31 Shareholder Outreach 33 Linkage to Company Performance 34 Summary of Executive Compensation Program 37 Executive Compensation Process 40 Elements of Compensation Page 18 Certain Transactions 19 Proposal 1 – Election of Directors 63 Proposal 2 – Advisory Resolution on Executive Compensation 64 Proposal 3 – Ratification of Selection of Independent Registered Public Accounting Firm Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . 23 Board Committees and Responsibilities . . . . . . . . . . 24 Non-Employee Director Compensation . . . . . . . . . . . 29 Compensation Committee Report . . . . . . . . . . . . . . . 52 Compensation of Executive Officers . . . . . . . . . . . . . 53 Audit Committee Report . . . . . . . . . . . . . . . . . . . . . . 65 Shareholder Proposals for 2020 Annual Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 2 | Notice of Annual Meeting of Shareholders and 2018 Proxy Statement