2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 156 VOYA FINANCIAL, INC. WELLS FARGO WEYERHAEUSER COMPANY XCEL ENERGY Part I: Corporate Governance Agenda Item 1: Election of Directors Ourboardconsistsofninedirectors,who,pursuanttoourAmendedandRestatedCertificateof Incorporation,areelectedannuallybyourstockholdersforone-yearterms.Currently,ourboardconsistsofeight independentdirectorsandourCEO(whoalsoservesaschairmanoftheboard).DavidZwiener,oneoftheeight independentdirectors,iscurrentlyourLeadDirector. AtourAnnualMeeting,ourstockholderswillbeaskedtoelecttheninemembersofourboardof directors. BoardRecommendation: Ourboardofdirectorsunanimouslyrecommendsthatourstockholderselect eachofourDirectorNomineesdescribedbelowunder“—OurDirectorNominees”. OURDIRECTORNOMINEES DirectorNomineeFacts Webelieveourdirectornomineesbringawell-roundedvarietyofdiversity,skills,qualificationsand experiences,andrepresentaneffectivemixofdeepcompanyknowledgeandfreshperspectives.OurBoard believesournominees’breadthofexperienceandtheirmixofattributesstrengthenourBoard’sindependent leadershipandeffectiveoversightofmanagement,inthecontextofourcompany’sbusinesses,ourindustry’s operatingenvironment,andourcompany’slong-termstrategy. Ournominees: • areseasonedleaderswhohaveheldadiverserangeofleadershippositionsincomplexbusinesses (includingfinancialservicesorganizations); -2- Total of 02 pages in section Proxy Summary BOARD REFRESHMENT AND COMPOSITION TheBoard’srefreshmentprocessandchangestoitscomposition,oversight,andgovernancepracticeshavebeen informedbyrobustself-evaluationandfeedbackprovidedbyourinvestorsfollowingour2017annualmeeting. • Comprehensivethird-partyfacilitatedBoardself-evaluationconductedfollowingthe2017annualmeeting andinadvanceofitstypicalyear-endtiming • FocusareasoftheevaluationincludedBoardcomposition;performanceandmaterials;structureand effectiveness;Boardresponsibilities;toneatthetopandculture;andgovernancepractices Prior to our 2017 Annual Meeting 3 2 6 0-1 years 2-4 years 5-10 years 2.7 YEAR AVG. TENUREOF INDEPENDENT DIRECTOR NOMINEES* 5 6 5of11 Independent DirectorNominees have Financial Services Experience FINANCIALSERVICES EXPERIENCE 45% FINANCAL SERVICES 57% RISK 4 3 4of7 Members of Risk Committee have large financial insitution risk management experience FINANCIALSERVICES RISK EXPERIENCE ONRISKCOMMITTEE OVERALLGENDER AND ETHNIC DIVERSITYOFBOARD 6of12 DirectorNominees areWomen and/or EthnicallyDiverse 50% DIVERSE 6 6 * Basedoncompletedyearsofservicefromdate firstelectedtotheBoard OurBoardtookanumberofactionsinresponsetotheretailbankingsales practicesmatter,includingtorefreshBoardcompositionandtoenhance independentoversight,including: • SeparatedtherolesofChairoftheBoardandCEO • AmendedtheBy-LawstorequirethattheChairbeindependent • Elected2newdirectors(KarenPeetzandRonSargent)whoenhanced thefinancialservices,regulatory,consumerretail,andhumancapital managementexperienceonourBoard • Tooksignificantexecutiveaccountabilityactions,includingforfeitures andclawbackstotalingmorethan$180million Since our 2017 Annual Meeting Atour2017annualmeeting,WellsFargoshareholderssenttheentire Boardaclearmessage.TheBoardheardthatmessageandsincethattime tookanumberofadditionalactionsinresponse,including: • ElectedBetsyDukeasindependentChair,effectiveJanuary1,2018 • EngagedinathoughtfulBoardrefreshmentprocesswhilemaintaining anappropriatebalanceofnewperspectivesandexperienceonthe Board • Elected4newindependentdirectors(JuanPujadas,CelesteClark, TedCraver,andMariaMorris)whofurtherenhancedfinancial services,riskmanagement,technology,humancapitalmanagement, financeandaccounting,corporateresponsibility,andregulatory experienceonourBoard; intotal,theBoardelected6new directorsin2017whobringrelevantexperienceconsistent withtheCompany’sstrategyandriskprofile • ChangedtheleadershipandcompositionofkeyBoardcommittees, includingtheRiskCommitteeandGovernanceandNominating Committee • ReconstitutedtheRiskCommitteeto,amongotherthings,include4 memberswithexperienceidentifying,assessing,andmanagingrisk exposuresoflarge,financialfirmsasprovidedintheFederal Reserve’sEnhancedPrudentialStandardsforlargeU.S.bankholding companies • ContinueditsfocusontheimportanceofmaintainingBoard diversity(bothgenderandethnic) ;3ofthe6newdirectors electedbyourBoardin2017arewomenand2ofthosenewdirectors electedareethnicallydiverse iv WellsFargo&Company 2018ProxyStatement Total of 05 pages in section CorporateGovernance Director Tenure TheBoardbelievesthatdiversityintenurecreatesagoodmixofperspectiveswithlonger-tenureddirectorsbringingadeepunderstandingof theCompanywhileothersbringafreshperspectiveandexpertisehelpfultokeepingabreastofachangingindustry.TheGCNconsiders emergingbusinessneedsanddesiredskillswhenevaluatingpotentialcandidates.Overthepastfiveyears,theBoardhasaddedthreenew directors.Asofthedateofthisproxystatement,theBoardconsistsof12directors,whosetenureisshownbelow. 3 5 3 1 9 years AverageDirector Tenure Less than 5years 5 to 10 years More than 15 years 11 to15 years New Director Nominee TheBoarddeterminedtoexpandthesizeoftheBoardin2017byoneadditionaldirectorandcurrentlyhasatotalof12members.The GCNreviewedtheskillsandexpertiseoftheBoardanddeterminedtheBoardwouldbenefitfromanadditionalmemberwithexpertise ineconomicandprojectdevelopment,complexstakeholderrelationships,andcapitalandinvestmentmanagement.TheGCNsought recommendationsofthedirectorsandduringaconversationamongtheChairman,theLeadIndependentDirectorandtheChairofthe GCN,theyidentifiedMr.Owens(whohadpreviouslypresentedtotheBoard)asapotentialcandidate.AfterreviewingMr.Owens’ qualificationsandinterviewinghim,theGCNrecommendedhimforelectiontotheBoard,whichtheBoardapprovedinAugust2017. Mr.Owens’extensiveexperienceintheelectricindustryandworkingwiththediversestakeholdersthatimpactourbusinessbrings valuableexperienceandstrategicinsighttotheBoard. WebelieveourslateofdirectornomineesprovidesawellroundedandwellqualifiedBoardthatcollectivelyprovideseffectiveoversight andgovernanceoftheCompany. Governing Documents Thefollowingmaterialsrelatingtoourcorporategovernancecanbefoundonourwebsiteat www.xcelenergy.com, under“Company— InvestorRelations—GovernanceDocuments”andarealsoavailablefreeofchargetoshareholderswhorequestthem. • GuidelinesonCorporateGovernance • Governance,CompensationandNominatingCommitteeCharter • AmendedandRestatedArticlesofIncorporation • Operations,Nuclear,EnvironmentalandSafetyCommitteeCharter • Bylaws • FinanceCommitteeCharter • AuditCommitteeCharter Shareholdersmayrequestourgoverningdocumentsbywritingourofficesat:CorporateSecretary,XcelEnergyInc.,414NicolletMall, Minneapolis,Minnesota55401.WepublishanyamendmentstotheCodeofConductandwaiversoftheCodeofConductforour executiveofficersordirectorsonourwebsite. Shareholder Recommendation of Directors AnyshareholdermayrecommendpotentialnomineestotheGCNforconsiderationformembershipontheBoard.Recommendations canbemadebysendingawrittenstatementofthequalificationsoftherecommendedindividualtotheCorporateSecretary,Xcel EnergyInc.,414NicolletMall,Minneapolis,Minnesota55401.SuchrecommendationsshouldbereceivedbyOctober1,2018tobe consideredforthe2019annualmeeting.TheGCNwillevaluatecandidatesrecommendedbyshareholdersonthesamebasisasit evaluatesothercandidates. Proxy Access InFebruary2016,weamendedourbylawstopermitanyshareholder(orgroupofnomorethan20shareholders)owningthreepercent ormoreofourcommonstockcontinuouslyforatleastthreeyearstonominateuptoanaggregatedlimitoftwocandidatesor 20percentofourBoard(whicheverisgreater)forinclusioninourproxystatement.Noticeofsuchnomineesforthe2019annual meetingmustbereceivednoearlierthanNovember4,2018andnolaterthancloseofbusinessonDecember4,2018.Noticeshould beaddressedtotheCorporateSecretary,XcelEnergyInc.,414NicolletMall,Minneapolis,Minnesota55401.Requirementsforsuch nominationsandnomineesaredetailedinourbylaws,whichareavailableonourwebsiteat www.xcelenergy.com, under“Company— InvestorRelations—GovernanceDocuments”. 2018 XcelEnergyProxyStatement | 17 9yearsaveragedirectortenure 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