2018 Guide to Effective Proxies

2.4 Proxy summary | 99 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES WELLS FARGO Proxy Summary INVESTOR ENGAGEMENT AND RESPONSIVENESS Since2010wehavehadaninvestoroutreachprogramwithindependentdirectorparticipationtohelpusbetterunderstandthe viewsofourinvestorsonkeycorporategovernancetopics.Inadditiontoengagementwithourlargestinstitutionalinvestors,we haveenhancedourengagementeffortswithadditionalinvestorsandstakeholderstoheartheirperspectivesandhelpidentify focusandprioritiesforthecomingyear.Theconstructiveandcandidfeedbackwereceivefromourinvestorsandother stakeholdersduringthesemeetingsisimportantandhelpsusinformourpriorities,assessourprogress,andenhanceour corporategovernancepracticesanddisclosureseachyear. Board-Led EngagementProgram YearRound EngagementProcess Reporting and Evaluation of Investor Feedback Independent director participation since 2010 • Our Chair leads our external Stakeholder Advisory Council formed in 2017 to provide our Board and seniormanagement with feedback on current and emerging issues from a stakeholder perspective • • • Our engagement occurs year round • Active outreach to institutional investors during the spring and fall/winteraswellasengagement meetingswith investors and other stakeholders upon their request • Continual review of our governance practices in light of best practices, recent developments, and regulatory expectations • Coordinated engagement efforts with our new Stakeholder Relations group,which includes Investor Relations and Government Relations • Our Chair, Elizabeth A.(“Betsy”) Duke, held in-personmeetings and callswith institutional investors representingmore than35%ofouroutstanding shares since our 2017 annual meeting Feedback is summarized, sharedwith and considered by: the full Board Human Resources Committee Corporate Responsibility Committee seniormanagement • Our Board conducts a comprehensive self-evaluation and reviews our governance practices at least annually, and uses investor and other stakeholder feedback to identify areas for potential enhancements to our policies, practices, and disclosures Governance and Nominating Committee CORPORATE GOVERNANCE HIGHLIGHTS Enhancements to Corporate Governance Practices and Shareholder Rights Informed by Investor Feedback and Board Self-Evaluation • Shareholdersowningatleast20%(thresholdloweredinMarch2018from25%)ofourcommonstockmay callspecialmeetings (since2011ourBy-Lawshaveprovidedourshareholderswithameaningfulrighttocallspecial meetingsofshareholders) • Adoptedproxyaccessin2015witha3%/3yearsownershipthreshold • EngagedathirdpartytofacilitatetheBoard’scomprehensive2017self-evaluation ;Since2014theBoard’sself- evaluationprocesshasincludedanassessmentofthecontributionsofindividualdirectorstotheworkoftheBoardandits committees • AmendedCorporateGovernanceGuidelinesin2018tomorefullyreflecttheroleoftheBoardandworkitis doingtoenhancegovernanceandoversightpractices ,includingaspartofourplanstosatisfytherequirementsof theconsentorderthattheCompanyenteredintowiththeBoardofGovernorsoftheFederalReserveSystemon February2,2018 • DisclosedadditionalinformationonourCompany’sgenderandracial/ethnicpaygapsintheU.S. onour websiteinFebruary2018 • Adoptedoverboardingpolicyin2017limitingthenumberofboardsonwhichourdirectorsmayserve (3total boardsforpubliccompanyCEOs;4totalpubliccompanyboardsforotherdirectors,unlesstheGNCdeterminessuch otherboardservicewouldnotimpairthedirector’sservicetoourCompany);Nodirectorservesonmorethan3total publiccompanyboardsandourCEOdoesnotserveonanotherpubliccompanyboardotherthanWellsFargo • SeparatedtherolesofChairandCEOandamendedourBy-LawstorequiretheChairtobeindependent in 2016 Board-LedEngagementProgramIndependentdirectorparticipationsince2010YearRoundEngagementProcessOurChair,BetsyDuke,heldin-personmeetingsandcalls,inmanycasesmultipletimes,withover35institutionalinvestorsowningmorethan35%ofouroutstandingsharessince2017annualmeetingReportingandEvaluationofInvestorFeedbackFeedbackissummarized,sharedwithandconsideredby:Investorfeedbackhelpsandinformourprioritiesandidentifyareasforpotentialenhancementstoourpolicies,practices,anddisclosures WellsFargo&Company 2018ProxyStatement iii Total of 09 pages in section Proxy Summary STRENGTHENING AND MONITORING OUR CULTURE Ourjourneytostrengthenourcultureisanongoingprocessthatstartswithmakingsurethatallofourteammembershavea consistentunderstandingofourVision,Values,andGoals. Building a strong, deliberate culture will take time. It is a journey. • We aremeasuring andmonitoring keypeople, conduct, risk, and auditmetrics to bettermonitor culture-related elements across our Company. • We also analyze teammember feedback andmonitor ethics-related allegations anddisciplinary actions, including terminations, to identify strengths aswell as issues that need to be evaluated, investigated, and ddr ssed. • OurBoard, including itsHumanResourcesCommittee, isoverseeingour culture efforts and receives reporting frommanagementonourprogress. • WehaveenhancedourEthicsLineprocesses tomake itsafer for teammembers to raiseconcerns. • We expanded our “Raise YourHand” initiative to encourage teammembers to speak upwhen they see unethical behavior or have concerns. • We strengthenedournon-retaliationpolicies,practices, and training. Enhancing Ways to Raise Ethical Concerns • To support a consistent and compelling culture for all teammembers, we are looking at what their feedback tells us and using a number ofways to establish clear understanding and expectations for all teammembers. • We are investing in our teammembers and ourmanagers, including providing additional resources and tools that support our Vision and Values and setting clearer expectations forwhat itmeans to be a peoplemanager atWells Fargo. Establishing Consistent Understanding and Expectations • In2017,we recommitted toourVision andValues. • Our Board reviewed and approved our Vision, Values, andGoals. • Recommit toourVision andValues • We learned thatour leadership, systems, tools,processes, andpolicies, includingour incentive compensation andperformancemanagementprograms, allhave to alignwith and support the kindof culturewewant tobuild. • We strengthened our incentive compensation riskmanagement programwhich supports our compensation principles and our Vision and Values andmade changes in performancemanagement Aligning Incentive and Performance Management Programs • As ademonstrationof change inour culture,we continue to look forways to listen to t am members, industry experts, andothers aswework to transform our Company and deliver on our Vision, Values, andGoals through a consistent and compelling culture and teammember experience. We have candid and frequent dialoguewith our teammembers using a variety of channels to obtain their feedback,which is a valuable part of our transformation and the changeswe aremaking. Listening and Introspection • Wehave engaged anumberofoutside experts to review our teammember feedback on our culturemeasurementmethodologies, processes, and procedures. • We conducted an enterprise-wide culture assessment survey in2017 to assess both the positive attributes and potentialweaknesses in the Company’s culture. • The assessment focusedon: Ethics,Customer Focus,Diversity and Inclusion, and Commitment to theOrganization. Inviting Independent Third-Party Reviews and Input Our Vision and Values and six newGoals are reflected in a simpler,more focused b oklet tomake it easier for all of our teammembers and our stakeholders to understandwhatwe value themost as a company. which is a key aspect of our culture and reflects the Valueswe reinforce. RecommittoourVisionandValues•In2017,werecommittedtoourVisionandValues.•OurBoardreviewedandapprovedourVision,Values,andGoals.•OurVisionandValuesandsixnewGoalsarereflectedinasimpler,morefocusedbooklettomakeiteasierforallofourteammembersandourstakeholderstounderstandwhatwevaluethemostasacompany.ListeningandIntrospection•Asademonstrationofchangeinourculture,wecontinuetolookforwaystolistentoteammembers,industryexperts,andothersasweworktotransformourCompanyanddeliveronourVision,Values,andGoalsthroughaconsistentandcompellingcultureandteammemberexperience.Wehavecandidandfrequentdialoguewithourteammembersusingavarietyofchannelstoobtaintheirfeedback,whichisavaluablepartofourtransformationandthechangeswearemaking.InvitingIndependentThird-PartyReviewsandInput•Wehaveengagedanumberofoutsideexpertstoreviewourteammemberfeedbackonourculturemeasurementmethodologies, processes,andprocedures.•Weconductedanenterprise-widecultureassessmentsurveyin2017toassessboththepositiveattributesandpotentialweaknessesintheCompany’sculture.•Theassessmentfocusedon:Ethics,CustomerFocus,Diversityandinclusion,andCommitmenttotheorganization.EstablishingConsistentUnderstandingandExpectations•Tosupportaconsistentandcompellingcultureforallteammemberswearelookingatwhattheirfeedbacktellsusandusinganumberofwaystoestablishconsistentunderstandingandexpectationsforallteammembers.•Weareinvestinginourteammembersandourmanagers,includingbyprovidingadditionalresourcesandtoolsthatsupportourVisionandValuesandsettingclearerexpectationsforwhatitmeanstobeapeoplemanageratWellsFargo.ImprovingWaystoRaiseEthicalConcerns•WehaveenhancedourEthicsLineprocessestomakeitsaferforteammemberstoraiseconcerns.•Weexpandedour“RaiseYourHand”initiativetoencourageteammemberstospeakupwhentheysee unethicalbehaviororhaveconcerns.•Westrengthenedournon-retaliationpolicies,practices,andtraining.AligningofIncentiveandPerformanceManagementPrograms•Welearnedthatourleadership,systems,tools,processes,andpolicies,includingourincentivecompensationandperformancemanagement,allhavetoalignwithandsupportthekindofculturewewanttobuild.•WestrengthenedourincentivecompensationriskmanagementprogramwhichsupportsourcompensationprinciplesandourVisionandValuesandmadechangesinperformancemanagementwhichisakeyaspectofourcultureandreflectstheValueswereinforce.Buildingastrong,deliberateculturewilltaketime.Itisajourney.•Wearemeasuringandmonitoringkeypeople,conduct,risk,andauditmetricstobettermonitorculture-relatedelementsacrossourCompany.•Wealsoanalyzeteammemberfeedbackandmonitorethics-relatedallegationsanddisciplinaryactions,includingterminations,toidentifystrengthsaswellasissuesthatneedtobeevaluated,investigated,and addressed.•WearereportingonourcultureeffortsandourprogresstotheBoardandourHumanResourcesCommittee. ii WellsFargo&Company 2018ProxyStatement Proxy Summary This summary highlights certaininformationcontainedin thisproxy statement.Youshouldreadtheentireproxy statement carefullybeforevoting. BUSINESS OVERVIEW AND STRENGTHS WellsFargo is a diversified,community-based financialservicescompany. Weprovide banking, investments,mortgage, and consumerand commercialfinancethroughmorethan8,300 locations,13,000 ATMs,digital (online,mobile, and social),and contactcenters(phone,email, and correspondence),and we haveofficesin 42 countriesand territoriesto supportcustomers who conductbusinessin theglobal economy.With approximately 263,000 active,full-time equivalentteam members,we serve onein threehouseholdsin theUnited States. Weunderstandtheimportanceand responsibility of ourroleasa systemically important financialinstitution,asa major employer, asa provider of financialserviceswithin ourcommunities,and asa responsiblecorporatecitizen.Werecognizethat recentissues,including thesalespracticesmatter,havehad an impact on WellsFargo and its reputation,including ourtea members,customers,investors,and otherstakeholders.Asdiscussedthroughoutthisproxy statement,we continueto focuson servingourcustomers,rebuilding trust,and building a stronger,betterWellsFargo. Wehaveconfidencein thestrengthof ourdiversified businessmodel and otherstrongaspectsof ourbusinessand operations highlighted below. Diversified business model that enables performance through economic cycles Long-term focus Leading U.S. distribution model Conservative risk discipline/strong credit quality Strong capital position Focus on technology and innovation OUR VISION, VALUES, AND GOALS WeuseourVision,Values,and Goalsto guide ustoward growth and success. • Our Vision istosatisfy our customers’financial needsandhelpthemsucceedfinancially. • Our Valuesare:What’sright for customers, peopleasacompetitiveadvantage, ethics, diversity andinclusion, andleadership Weaspireto createdeep and enduringrelationshipswith ourcustomersby providing them with an exceptionalexperienceand by understandingtheirneedsand delivering themost relevantproducts,services,advice, and guidance.Inearly 2017, ourCEO Timothy J. Sloanalsoestablishedsix newaspirationalgoals forourCompany. • Our Goals:Wewant tobecomethefinancial servicesleader inthesesixareas – Customerserviceandadvice Teammemberengagement Innovation Riskmanagement Corporate citizenship Shareholder value DiversifiedbusinessmodelthatenablesperformancethrougheconomiccyclesConservativeriskdiscipline/strongcreditqualityLong-termfocusStrongcapitalpositionLeadingU.S.distributionmodelFocusontechnologyandinnovation WellsFargo&Company 2018ProxyStatement i WEYERHAEUSER COMPANY CORPORATE GOVERNANCE HIGHLIGHTS (page 7) Ourcorporategovernancepoliciesandpracticespromotethelong-terminterestsofourshareholders,strengthenthe accountabilityofourboardofdirectorsandmanagement,andhelpbuildpublictrustinthecompany.Belowisa summaryofsomeofthehighlightsofourcorporategovernanceframework. BOARD PRACTICES 9of11directornomineesareindependent Annualelectionofalldirectors SeparationofboardchairandCEO Leadindependentdirector Regularexecutivesessionsofindependentdirectors Comprehensiveandstrategicriskoversight Mandatoryretirementagefordirectors Annualboardandcommitteeevaluations SHAREHOLDER MATTERS Robustshareholderengagement Annualsay-on-payvoting Shareholderrighttocallspecialmeetings Majorityvotingfordirectorelections OTHER GOVERNANCE PRACTICES Executiveanddirectorstockownershipguidelines Clawbackpolicy Prohibitiononhedgingorpledgingcompanystock BUSINESS PERFORMANCE HIGHLIGHTS Ourlong-andshort-termbusinessandfinancialperformanceprovidesimportantcontextforthemattersdiscussedin thisproxystatement,particularlyourexecutivecompensationprograms.Followingisabriefsnapshotofourfinancial performanceoverthethree-yearandone-yearperiodscompletedthrough2017,aswellasasummaryofoursignificant businessachievementsin2017. Three-Year Performance Highlights Wehavegeneratedpositiveresultsforourshareholdersoverasignificantlytransformationalperiodinourcompany’s history,duringwhichwemergedwithPlumCreekTimberCompanyandcompletedstrategicdispositionsofourcellulose fibersbusinessandourUruguayoperations. REVENUE INCREASED BY 37% $5.246B 2015 $6.365B 2016 $7.196B 2017 WE INCREASED FULL YEAR ADJUSTED EBITDABYOVER 100% TONEARLY $2.1 BILLION * $1.025B $1.583B 2016 2015 $2.078B 2017 RETURNED NEARLY $2.5 BILLION INDIVIDENDS TOOURCOMMON SHAREHOLDERS $1.25 $1.24 $1.20 2017 2016 2015 Annual Per-Share CommonDividend *Representsameasureofperformancethatiscalculatedandpresentedotherthaninaccordancewithgenerallyacceptedaccountingprinciples(“GAAP”).SeeAppendix Aforanexplanationofthesenon-GAAPmeasures,afullreconciliationofthesenon-GAAPresultstoourGAAPNetEarningsresults,andabriefdiscussionofwhyweuse thesenon-GAAPperformancemeasures. 4 WEYERHAEUSERCOMPANY REVENUEINCREASEDBY37%WEINCREASEDFULLYEARADJUSTEDEBITDABYOVER100%TONEARLY$2.1BILLION*RETURNEDNEARLY$2.5BILLIONINDIVIDENDSTOOURCOMMONSHAREHOLDERSREVENUEINCREASEDBY11.6%INTHELASTYEAR2016$6.365B2017$7.196BWEINCREASEDFULLYEARADJUSTEDEBITDABYAPPROXIMATELY$500MILLION*(over30%increase)2016$1.583B2017$2.081BWERETURNEDOVER$941MILLIONINDIVIDENDSTOOURCOMMONSHAREHOLDERSINTHELASTYEAR$5.246B2015$6.365B2016$7.196B2017$1.025B2015$1.583B2016$2.078B2017$1.202015$1.242016$1.252017AnnualPer-sharecommondividend Total of 06 pages in section DIRECTOR NOMINEES (page 14) We have included summary information about each director nominee in the table below. Each director is elected annually by a majority of votes. See “Nominees for Election” beginning on page 14 for more information regarding our director nominees. COMMITTEES NameandPrimaryOccupation Age Director Since Independent EC AC CC GCRC MarkA.Emmert President,NationalCollegiateAthleticAssociation 65 2008 ‹ ‹ RickR.Holley FormerChiefExecutiveOfficer,PlumCreekTimberCompany, Inc. 66 2016 ‹ SaraGrootwassinkLewis ChiefExecutiveOfficerofLewisCorporateAdvisors 50 2016 ‹ Chair JohnF.MorganSr. PrivateTimberInvestor 71 2016 ‹ ‹ NicoleW.Piasecki FormerVicePresidentandGeneralManager,Propulsion Division,BoeingCommercialAirplanes 55 2003 ‹ ‹ Chair MarcF.Racicot FormerPresidentandCEO,AmericanInsuranceAssociation andFormerGovernor,StateofMontana 69 2016 ‹ ‹ ‹ LawrenceA.Selzer PresidentandChiefExecutiveOfficer,TheConservationFund 58 2016 ‹ ‹ ‹ DoyleR.Simons PresidentandChiefExecutiveOfficer, WeyerhaeuserCompany 54 2012 ‹ D.MichaelSteuert FormerCFO,FluorCorporation 69 2004 ‹ ‹ KimWilliams FormerPartnerandSVP,WellingtonManagementCompany, LLP 62 2006 ‹ ‹ ‹ CharlesR.Williamson FormerEVP,ChevronCorporationandCEO, UnocalCorporation 69 2004 ‹ Chair Chair EC =ExecutiveCommittee AC =AuditCommittee CC =CompensationCommittee GCRC =GovernanceandCorporateResponsibilityCommittee BOARD COMPOSITION Gender Diversity Women Men 3 8 Tenure Average: 7 years 5 <5 yrs. 5–10 yrs. 11+ yrs. 2 4 Independence Independent Directors Non-Independent Directors 2 9 2018ANNUALMEETING&PROXYSTATEMENT 3 GenderDiversityWomenMenTenureAverage:7yearsIndependenceIndependentDirectorsNon-IndependentDirectors<5yrs.5–10yrs.11+yrs.3,8,5,2,4,2,9 PROXY SUMMARY This summary highlights information contained elsewhere in this proxy statement. This summary does not contain all of the information you should consider before casting your vote. Please read this entire proxy statement carefully before voting. 2018 ANNUAL MEETING INFORMATION For additional information about our Annual Meeting, see “Information about the Meeting” on page 55. 18 9 00 Meeting Date: May 18, 2018 Meeting Place: Embassy Suites— Pioneer Square 255 South King Street Seattle, WA 98104 Meeting Time: 9:00 a.m. (Pacific) Record Date: March 23, 2018 MEETING AGENDA AND VOTING RECOMMENDATIONS The Weyerhaeuser Company board of directors is asking shareholders to vote on these matters: Items of Business Board Recommendation Page Number 1. Election of the 11 directors named as nominees in the proxy statement FOR 13 2. Approval, on an advisory basis, of the compensation of our named executive officers FOR 21 3. Ratification of selection of independent registered public accounting firm FOR 50 In addition to the above matters, we will transact any other business that is properly brought before the shareholders at the annual meeting. ADVANCE VOTING METHODS (page 56) Even if you plan to attend the 2018 annual meeting of shareholders in person and you are a shareholder of record, we urge you to vote in advance of the meeting using one of these advance voting methods. Via the Internet: www.envisionreports.com/WY Call Toll-Free: 1-800-652-VOTE (8683) Mail Signed Proxy Card: Follow the instructions on your proxy card or voting instruction form If you are a beneficial owner of shares held through a broker, bank or other holder of record, you must follow the voting instructions you receive from the holder of record to vote your shares. 2 WEYERHAEUSERCOMPANY