2018 Guide to Effective Proxies

2.9 Board diversity graphics | 155 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES UNITED RENTALS, INC. UNUM GROUP VALERO ENERGY CORPORATION VERIZON COMMUNICATIONS INC. Nineof the nomineesfor electionat the 2018annualmeeting are currently servingon the Board. Each person nominatedhas agreedto continueto serve if elected. If any nomineebecomes unavailablefor any reason to serve as a director at the time of the annualmeeting, then the shares represented by eachproxy may be voted for such other person as may be determined by the holdersof such proxy. TheBoardunanimouslyrecommendsa vote FOR the election of eachof Drs. Britell and Papastavrou,Mses. Kelly andMartore andMessrs. Alvarez, Bruno, Griffin, Kneeland,Passerini, Roof andSinghto hold office until the 2019annualmeeting of stockholders(designated as Proposal1) anduntil suchdirector’s successoris elected andqualified. Information ConcerningDirectors andBoardConsiderationof Director Experienceand Qualifications In additionto the independencematters describedunder “Corporate Governance Matters – Director Independence”,the Boardandthe N&CGCommittee consideredthe specificexperience, qualifications,attributes andskillsof the director nomineesnamed hereinandconcludedthat basedon the aforementionedfactors, andincludingeachdirector’s demonstrated businessacumen, abilityto exercisesoundjudgment, integrity andcollegiality,such directors shouldserve as directors of the Company. Thefollowingis a summary of our director nominees’aggregateprioritizedcompetencies. Thelist of prioritizedcompetenciesis reviewedat least annuallyby the N&CGCommittee andthe Boardandupdated, whennecessary, to reflect any changesinthe Company’sstrategy. Number of directors possessing each competency PublicCompanyCEO: current or recently retiredCEO of a public company of scale 2 P&LOwner: president orexecutivewithP&L ownership in a company of scalewith experience and a strong ability to think strategically and critically assess and act on opportunities and threats 8 InternationalExpertise: experience leading (as aP&L owner) a global business and understanding the challenges of entering newmarkets and navigating localand regional geopolitical sensitivities 7 FinancialAcumen: current or retiredCFO, banker or public company qualified financial expert or recently retired audit partner from a big four accounting firmwith experience in accounting, reporting, capital allocation, financialmarkets,M&A andpost-merger integration 6 Digital: executivewith amillennial/next generation “futurist”mindsetaswell as an understanding of socialmedia, e-commerce and leveraging technology platforms for business innovationand transformation 3 Sales&Marketing: chiefmarketingofficer or other senior executivewith experience leading andexecuting sales&marketing strategies in a business-to-business environmentwith an industrial business,with preference for those that have developed digital strategies 4 Rental Industry: current or retired executive from the equipment rental industry (ormajor customer,original equipmentmanufacturer, or related industry)with a strong understanding of its operations and ideally deep insight into the non-residential constructionbusiness 2 Capital Intensive Industry: experience as an executive (preference for aP&L owner) working in a capital intensive industrywhere utilization of capital equipment isa key business driver 7 Overall Diversity Diverse* NotDiverse 6 5 Ethnic Diversity NotEth.Diverse Eth.Diverse 3 Gender Diversity Male Female 8 3 Tenure 0-6 years 7-10 years > 10 years 5 4 2 Average Age 59 years 8 Independence Independent Non-Independent 1 10 * Diverserepresentsourfemaledirectorsandethnicallydiversedirectors. 14 Board Tenure Directorswithvariedtenurecontributetoarangeofperspectivesandensurewetransitionknowledgeand experiencefromlonger-servingmemberstothosenewertoourBoard.Wehaveagoodmixofnewandlong- standingdirectors,withour11directornomineesaveraging5.5yearsofserviceonourBoardasofthe2018 AnnualMeeting. Board Diversity Ourdirectorsrepresentarangeofbackgroundsandoverallexperience.Morethanone-thirdarewomenor representadiversegroup,whichplacesUnum'sBoardamongthetopofourindustryingenderandracial/ ethnicdiversity.Inrecentyears,ourGovernanceCommitteehasfocusedonensuringcontinueddiversityonthe Boardduringrefreshmentactivitiesbyrequiringthatcandidatepoolsincludediverseindividualsmeetingthe recruitmentcriteria.Ourdirectornomineesrangefrom49to71yearsofage,withtheaverageagebeing60.4 years,asofthe2018AnnualMeeting. CORPORATEGOVERNANCE 2018PROXYSTATEMENT 15 Total of 03 pages in section Item1:ElectionofDirectors | Directorcriteria,qualificationsandexperience OurBoard’scommitmenttorefreshmentandsuccessionplanningisatthecoreofitsabilitytomaintainindependenceof thoughtandaction.KeyfactorstheCommitteeconsiderswhenselectingDirectorsandrefreshingtheBoardinclude: • Diversity –TheCommitteerecognizesthatadiverse setofviewpointsandpracticalexperiences enhancestheeffectivenessofourBoard.In evaluatingcandidates,theCommitteeconsidershow acandidate’sparticularbackground,experience, qualifications,attributesandskillsmaycomplement, supplementorduplicatethoseofotherprospective candidates. • Experience –TheCommitteestrivestomaintaina Boardwithawiderangeofleadershipexperience andskillsrelevanttoVerizon’sstrategicvision. • Ageandtenure –UndertheCorporateGovernance Guidelines,DirectorsmustretirefromtheBoardthe daybeforetheannualmeetingofshareholdersthat followstheir72ndbirthday.TheCommitteealso considersthetenureofeachincumbentDirectorand theaveragetenureoftheBoardinanefforttomaintain aBoardthatbalancesthefreshperspectiveandideas ofnewerDirectorswiththedeepinsightintothe CompanythatlongertenuredDirectorshave developed. • Boardsize –TheCommitteeperiodicallyevaluates whethertochangethesizeoftheBoard,basedonthe Board’sneedsandtheavailabilityofqualified candidates. • Boarddynamics –TheCommitteeconsiderseach Directorcandidate’sindividualcontributionorpotential contributiontotheBoardasawholeandstrivesto maintainonehundredpercentactiveandcollaborative participation. Current/FormerCEO 9 PublicBoardService 12 Accounting/Finance 5 RiskManagement 1 7 Global 12 Operational 11 Technology/Internet 2 Consumer/CustomerService 6 Women 4 Hispanic/AfricanAmerican 5 Boarddiversityandexperience Ofour 12currentboardmembers: 0 >10 Median tenure: 5years,9months Average tenure: 7years,4months Averageage: 62years Boardtenure (as ofMarch 19, 2018) Verizon 2018ProxyStatement | 5 PROPOSAL NO. 1 —ELECTION OF DIRECTORS (ITEM 1 ON THE PROXY CARD) Wedonothaveaclassifiedboard.Eachofourdirectorsstandsforelectioneveryyearat theannualmeetingofstockholders.Ifelectedatthe2018AnnualMeeting,allofthe nomineeslistedbelowwillserveasdirectorforaone-yeartermexpiringatthe2019 annualmeetingofstockholders.Thepersonsnamedontheproxycardintendtovotefor theelectionofeachofthesenomineesunlessyoudirectotherwiseonyourproxycard. TheBoardrecommendsa vote“FOR”allnominees. MajorityVoting .Underourbylaws,eachdirectortobeelectedunderthisproposalwillbeelectedbythevoteofthemajorityofthe votescastattheAnnualMeeting,ifaquorumispresent.Forthispurpose,a“majorityofthevotescast”meansthatthenumberof sharesvoted“for”adirector’selectionexceeds50percentofthenumberofvotescastwithrespecttothatdirector’selection.Votes “cast”excludeabstentions.IfanynomineeisunavailableasacandidateatthetimeoftheAnnualMeeting,eitherthenumberof directorsconstitutingthefullBoardwillbereducedtoeliminatetheresultingvacancy,orthepersonsnamedasproxieswillusetheir bestjudgmentinvotingforanyavailablenominee. Information Concerning Nominees and Directors EachofthefollowingisanomineeforelectionasadirectorattheAnnualMeeting.Thereisnofamilyrelationshipamonganyofthe executiveofficersornomineesfordirector.Thereisnoarrangementorunderstandingbetweenanydirectororanyotherperson pursuanttowhichthedirectorwasoristobeselectedadirectorornominee.SusanKaufmanPurcell,whocurrentlyservesasdirector, willretirefromtheBoardonthedateoftheAnnualMeeting. Directors Director Since Age asof 12/31/2017 JosephW.Gorder, ChairmanoftheBoard, President,andChiefExecutiveOfficer 2014 60 H.PaulettEberhart 2016 64 KimberlyS.Greene 2016 51 DeborahP.Majoras 2012 54 DonaldL.Nickles 2005 69 PhilipJ.Pfeiffer 2012 70 RobertA.Profusek 2005 67 StephenM.Waters 2008 71 RandallJ.Weisenburger 2011 59 RayfordWilkins,Jr. 2011 66 BOARDFEATURES DIRECTORS AREWOMEN 3/10 Age Tenure Gender 50s 70s 63 YEARSAVG AGE 3 2 5 60s 10-13 yrs 5-9 yrs 7 YEARSAVG TENURE 3 3 4 <5 yrs 3 2018PROXYSTATEMENT 9