2018 Guide to Effective Proxies

2.5 Checklists | 101 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES AMEREN CORPORATION AMERICAN AIRLINES GROUP • In2017,attheirrequest,allofourexecutiveofficers whowerepartytochangeincontrolandseverance benefitagreementsvoluntarilyterminatedtheir agreements.Asaresult,noneofourexecutive officersisnowcontractuallyentitledtocash severanceorcontinuedhealthbenefitsuponany termination,norarewecontractuallyobligatedto provideagross-uptocoveranyexcisetaxes incurredbyanynamedexecutiveofficerunder Section4999oftheInternalRevenueCode. Ourexecutives’compensationisheavilyweighted towardsvariablecashandlong-termequity incentives,linkingourexecutives’payopportunityto theexecutionofCompanystrategiesandenhancing theinterestsofourstockholders. • Ourannualcashincentiveprogramisbasedon pre-establishedpre-taxincometargets(excluding specialitems).Apre-taxincomemeasuremaintains afocusonprofitabilityandoperatingefficiencyand isaneffectivemeasureoffinancialperformancein ourindustry.In2017,weachievedanadjusted pre-taxincomeofapproximately$4.2billion,which correspondedtoachievementat79.1%ofthetarget levelunderthe2017cashincentiveprogram.Based onthefundinglevel,eachparticipatingexecutive officerreceivedabonusat79.1%oftarget. • Our2017equityincentiveprogramforournamed executiveofficersincorporatesbothperformance- andtime-vestingcomponents,withthe performance-vestingcomponentweightedatleast 50%byvalue.Theperformance-vestingcomponent consistsofrestrictedstockunitsthatwillbeearned notearlierthanthethirdanniversaryofthegrant datebasedonourrelativethree-yearpre-tax incomemarginexcludingspecialitemsascompared tothatofapre-definedgroupofairlinesandour three-yearrelativeTSR. • TheCompensationCommitteeadoptedthethree- yearrelativeTSRmodifierfortheperformance- vestingcomponentoftherestrictedstockunitsasa newmeasureunderourequityincentiveprogramin 2017.Adjustingperformanceachievementpositively ornegativelybasedonrelativeTSRdemonstrates ourcommitmenttogeneratingreturnsforour stockholdersandfurtheralignsmanagementwith stockholderinterests. WhatWeDo WhatWeDoNOTDo ✓ StockOwnershipGuidelines thatalignour executiveofficers’long-terminterestswiththoseof ourstockholders. ✓ IndependentCompensationConsultant thatis directlyengagedbytheCompensationCommitteeto adviseonexecutiveanddirectorcompensation matters. ✓ AnnualCompensationRiskAssessment to identifyanyelementsofourcompensationprogram designoroversightprocessesthatcarryelevated levelsofadverserisk. ✓ EquityAwardGrantPolicy thatestablishes objective,standardizedcriteriaforthetimingof equityawardsgrantedtoourteammembers. ✓ TallySheetReview .Weconductacomprehensive overviewoftotalcompensationtargetsandpotential payouts. ✓ ClawbackPolicy forallcashandequityincentive compensationpaidtoourexecutiveofficers. ✓ At-WillEmployment .Noneofourexecutiveofficers hasanemploymentagreement. ✕ NoSeveranceorChangeinControl Agreements .Noneofourexecutiveofficershasa severanceorchangeincontrolagreement. ✕ NoExcessivePerquisites. Perquisitesandother personalbenefitsarenotasignificantportionofany executiveofficer’scompensation.Wedonotprovide companycars,personalclubmemberships,home securityprotection,privatejettravelforpersonal useorprotectiononhomesalelossinarelocation. ✕ NoGuaranteedBonuses .Ourexecutiveofficers’ bonusesare100%performance-basedandatrisk. ✕ NoPayoutsofDividends accruedonunvested awardsunlessanduntiltheaward’svesting conditionsaresatisfied. ✕ NoActiveExecutiveRetirementPlans .Wedonot maintainanyactiveexecutive-onlyorsupplemental retirementplans. ✕ NoHedgingofourStockorPledging ourstock ascollateralforloans. ✕ NoExciseTaxGross-Ups tocoverexcisetaxesin connectionwithachangeincontrol. iv 2018ProxyStatement | EXECUTIVECOMPENSATION • 162.5 percent of the target three-year long-term incentive awards made in 2015 was earned based on our total shareholder return relative to the defined utility peer group over the three-year measurement period (2015-2017) plus accrued dividends of approximately 11 percent. Ameren ranked fifth out of the 17-member peer group. The January 1, 2015 PSU awards increased in value from $46.13 per share on the grant date to $58.99 per share as of December 31, 2017. This strong performance was attributable to the successful execution of the Company’s strategy that is delivering superior value to customers and shareholders. Guiding Objectives Our objective for compensation of the NEOs is to provide a competitive total compensation program that is based on the size-adjusted median of the compensation opportunities provided by similar utility companies, adjusted for our short- and long-term performance and the individual’s performance. The adjustment for our performance aligns the long-term interests of the NEOs with that of our shareholders to maximize shareholder value. Our compensation philosophy and related governance features are executed by several specific policies and practices that are designed to align our executive compensation with long-term shareholder interests, including: Whatwedo: Whatwedon’tdo: ✓ Wedeveloppayopportunitiesatthe size-adjustedmedianofthoseprovidedbysimilar utilitycompanies,withactualpayoutsdependent onourcorporateshort-andlong-term performanceandtheindividual’sperformance. ✓ Ourshort-termincentivesprogramisentirely performance-based withtheprimaryfocusonour EPSandadditionalfocusonsafetyandcustomer metricsandindividualperformance. ✓ Wedesignourlong-termincentivesprogramwith theprimaryfocusonourtotalshareholderreturn versusthatofautilitypeergroup. ✓ Weincludeinourshort-termandlong-term incentiveawards“clawback”provisionsthatare triggerediftheCompanymakescertainfinancial restatements,oriftheawardholderengagesin conductoractivitythatisdetrimentaltothe Companyorviolatestheconfidentialityor customeroremployeenon-solicitation provisions. ✓ Wemaintainstockownershiprequirementsfor ourSeniorLeadershipTeamand non-management directors. ✓ Weprovideonlylimitedperquisites,suchas financialandtaxplanning. ✓ Ourchangeofcontrolcashseveranceandequity vestingarebothfully“double-trigger.” ✓ Anindependent compensationconsultantis engagedbyandreportsdirectlytothe Committee. ✘ Wedonothaveemploymentagreements. ✘ Wedonotallowemployees,officersordirectors tohedgeAmerensecurities. ✘ Wedonotallowexecutiveofficersordirectors topledgeAmerensecurities. ✘ Wedonotprovidetax“gross-up”paymentson perquisites. ✘ Wedonotpaydividendsordividend equivalentsonunearnedincentiveawards. ✘ Wehaveneverrepricedorbackdatedequity- basedcompensationawards. ✘ Wedonotincludethevalueoflong-term incentiveawardsinourpensioncalculations. ✘ Wedonotofferexcisetax“gross-up”payments exceptforofficerswhobecameparticipantsin theChangeofControlSeverancePlanpriorto October1,2009. 52 AmerenCorporation 2018ProxyStatement 2.5 Checklists Each year, more companies are highlighting their progressive or shareholder-friendly corporate governance initiatives, shareholder rights, and compensation policies and practices, often in juxtaposition to perceived negative practices that are not employed. These checklists make it easy for investors/voters – as well as analysts at proxy advisor firms – to locate governance practices at a glance, rather than searching for them among pages of dense text. Viewed alternatively, a checklist makes it as difficult as possible for even a casual reader to miss the company’s position on key issues. These checklists may take the form of “things we do” versus “things we do not do” tables. As for location, checklists often appear in the proxy summary or body of the proxy (especially if highlighting corporate governance practices), and/or the CD&A Executive Summary or the body of the CD&A (if highlighting compensation practices).

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