2018 Guide to Effective Proxies

2.10 Board skills matrix | 159 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES APACHE CORPORATION ARAMARK ARTHUR J. GALLAGHER & CO. AT&T, INC. Key Qualifications ThefollowingaresomeofthekeyqualificationsandskillsofourBoard. CEO/ SENIOR OFFICER EXPERIENCE FINANCIAL REPORTING EXPERIENCE INDUSTRY EXPERIENCE GLOBAL EXPERIENCE ENVIRONMENTAL/ REGULATORY EXPERIENCE Annell R. Bay John J. Christmann IV Chansoo Joung George D. Lawrence Rene R. Joyce John E. Lowe William C.Montgomery Amy H. Nelson Rodman D. Patton DanielW. Rabun Peter A. Ragauss Thelackofamarkforaparticularitemdoesnotmeanthatthedirectordoesnotpossessthatqualification,characteristic, skill, or experience. We look to each director to be knowledgeable in these areas; however, the mark indicates that the itemisaparticularlyprominentqualification,characteristic,skill,orexperiencethatthedirectorbringstotheBoard. 64 % 82 % 100 % 82 % 64 % CEO/ Senior Officer Experience Financial Reporting Experience Industry Experience Global Experience Environmental/ Regulatory Experience OurBoardreflectsApache’sdesirethatdirectorshavethebroadexpertiseandperspectiveneededtogovernourbusiness andstrengthenandsupportseniormanagement. How We Pay Ourexecutivecompensationprogramconsistsofthefollowingelements: Basesalary; Annualcashincentivebonus; Long-termcompensation(performanceshares,restrictedstockunits,andstockoptions);and Benefits. CEO/FINANCIALENVIRONMENTAL/SENIOROFFICERREPORTINGINDUSTRYGLOBALREGULATORYEXPERIENCEEXPERIENCEEXPERIENCEEXPERIENCEEXPERIENCE AnnellR.BayJohnJ.ChristmannIVChansooJoungReneR.JoyceGeorgeD.LawrenceJohnE.LoweWilliamC.MontgomeryAmyH.NelsonRodmanD.PattonDanielW.RabunPeterA.Ragauss 64%82%100%82%64%CEO/FinancialIndustryGlobalEnvironmental/SeniorReportingExperienceExperienceRegulatoryOfficerExperienceExperienceExperience 8 APACHECORPORATION -2018ProxyStatement Thefollowingisasummaryofsomeoftheskills,experience,andbackgroundthatourdirectornomineesbringtothe Board: SKILLS,EXPERIENCEANDBACKGROUND 100% 64% 91% 73% 45% 55% 91% 36% 45% 82% STRATEGICLEADERSHIP CORPORATE FINANCE&M&A EXPERIENCE SENIOR MANAGEMENT LEADERSHIP INTERNATIONAL EXPERIENCE TECHNOLOGY BACKGROUND OREXPERTISE FINANCIALACUMEN&EXPERTISE PUBLICCOMPANY BOARDSERVICE INDUSTRY BACKGROUND CEO LEADERSHIP OPERATIONS MANAGEMENT EXPERTISE 11 Board Directors 10 SKILLS,EXPERIENCEANDBACKGROUNDSTRATEGICLEADERSHIPCORPORATEFINANCE&M&AEXPERIENCESENIORMANAGEMENTLEADERSHIPINTERNATIONALEXPERIENCETECHNOLOGYBACKGROUNDOREXPERTISEFINANCIALACUMEN&EXPERTISEPUBLICCOMPANYBOARDSERVICEINDUSTRYBACKGROUNDCEOLEADERSHIPOPERATIONSMANAGEMENTEXPERTISE ProxyStatementSummary Director Nominees* Snapshot of 2018 Director Nominees Our Director nominees exhibit an effective mix of skills, experience, diversity, and perspectives Women 30% 54% 1-5 years 6-10 years 11-15 years >15 years 5 years or less People of color 23% Name Age Director Since PrincipalOccupation Randall L. Stephenson 57 2005 Chairman, CEO, and President, AT&T Inc. Samuel A. Di Piazza, Jr. 67 2015 Retired Global CEO, PricewaterhouseCoopers International Limited Richard W. Fisher 68 2015 Former President and CEO, Federal Reserve Bank of Dallas Scott T. Ford 55 2012 Member and CEO, Westrock Group, LLC Glenn H. Hutchins 62 2014 Co-Founder, North Island and Co-Founder, Silver Lake William E. Kennard 61 2014 Former United States Ambassador to the European Union and former Chairman of the Federal Communications Commission Michael B. McCallister 65 2013 Retired Chairman and CEO, Humana Inc. Beth E. Mooney 63 2013 Chairman and CEO, KeyCorp Joyce M. Roché 70 1998 Retired President and CEO, Girls Inc. Matthew K. Rose 58 2010 Chairman and CEO, Burlington Northern Santa Fe, LLC Cynthia B. Taylor 56 2013 President and CEO, Oil States International, Inc. Laura D’Andrea Tyson 70 1999 Distinguished Professor of the Graduate School, Haas School of Business, and Chair of the Blum Center for Developing Economies Board of Trustees at the University of California at Berkley Geoffrey Y. Yang 59 2016 Founding Partner and Managing Director, Redpoint Ventures * All Director nominees are independent, except for Mr. Stephenson senior leadership/CEO experience industry/technology investment/private equity global business/affairs finance/public accounting government/regulatory 8 4 13 8 7 9 AT&T 2018 Proxy Statement | 3 | Corporate Governance Item 1 – Election of Directors EvaluationProcessforDirectorCandidates TheNominating/GovernanceCommitteeconsidersdirectorcandidatessuggestedbystockholders,managementorothermembersof theBoardandmayhireconsultantsorsearchfirmstohelpidentifyandevaluatepotentialdirectorcandidates.Formoreinformation regardinghowstockholderscansubmitadirectorcandidateforconsiderationbytheNominating/GovernanceCommittee,seepage39. TheNominating/GovernanceCommitteeevaluatesdirectorcandidatesbyconsideringtheirjudgment,skills,integrity,diversity,business orotherexperience,andotherfactorsitdeemsappropriate.TheCommitteelooksforcandidateswhoareleadersintheorganizations withwhichtheyareaffiliatedandhaveexperienceinpositionswithahighdegreeofresponsibility.TheCommitteeseekscandidatesfree fromrelationshipsorconflictsofinterestthatcouldinterferewiththedirector’sdutiestoGallagherorourstockholders.TheCommittee alsoevaluatescandidates’independenceunderapplicableSecuritiesandExchangeCommission(SEC)rulesandNewYorkStock Exchange(NYSE)listingstandards. BoardDiversity TheNominating/GovernanceCommitteeseeksBoardmembersfromdiverseprofessionalbackgroundswhocombineabroadspectrum ofexperienceandexpertisewithareputationforintegrity.TheCommitteeimplementsthispolicythroughdiscussionsamongitsmem- bersandassessesitseffectivenessannuallyaspartoftheCommittee’sandtheBoard’sself-evaluationprocess.TheCommitteehas alsousedasearchfirmonoccasiontohelpitidentifyhighlyqualifiedanddiversecandidates. BoardNomineesandVoteRequired UpontherecommendationoftheNominating/GovernanceCommittee,theBoardhasnominatedourChairmanandCEOandeachofthe nineindividualslistedbelowtoholdofficeuntilthenextannualmeetingandtheelectionandqualificationoftheirsuccessorsor,ifearlier, untiltheirresignation,deathorremoval.EachofthenomineescurrentlyservesontheBoardandhasconsentedtoserveforanewterm ifelected.However,ifanynomineeshouldbecomeunableorunwillingtoserve,theBoardmaynominateanotherpersontostandfor electionorreducethenumberofdirectors. Eachdirectornomineewhoreceivesmore“FOR”votesthan“AGAINST”votesattheAnnualMeetingwillbeelected.Anyincumbent directornomineeswhoreceiveagreaternumberofvotes“AGAINST”electionthanvotes“FOR”electionarerequiredtotendertheiroffer ofresignationforconsiderationbytheNominating/GovernanceCommitteeinaccordancewithourGovernanceGuidelines. IndependentDirectorQualifications ThetablebelowsummarizesthekeyqualificationsandareasofexperiencethatledourBoardtoconcludethateachindependentdirec- tornomineeisqualifiedtoserveonourBoard,butisnotintendedtobeanexhaustivelistoftheirqualificationsorcontributionstothe Board. Insurance/Financial ServicesIndustry RiskManagement/ Governance Salesand Marketing Finance/Capital Markets International SherryS.Barrat X X X WilliamL.Bax X X D.JohnColdman X X FrankE.English,Jr. X X X ElbertO.Hand X X DavidS.Johnson X X X KayW.McCurdy X X RalphJ.Nicoletti X X X X NormanL.Rosenthal X X X 2 2018PROXYSTATEMENT