2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 188 BANK OF AMERICA CORPORATION BAXTER INTERNATIONAL INC. THE BOEING COMPANY CARNIVAL CORPORATION & PLC CorporateGovernance Sustainable Responsible Growth ResponsibleGrowthmeanswemustgrow,noexcuses.Wehavetodoitbyfocusingondeliveringforclientswithinourrisk parameters.Anditmustbesustainable.Tobesustainable,wewanttobethebestplacetoworkforourteam,wefocuson sharingsuccess,andwedriveoperationalexcellence. —Brian Moynihan Chairman and CEO AmongthewaysweshareoursuccessisthroughourEnvironmental,Social,andGovernance(ESG)priorities.ESGisintegrated acrossoureightlinesofbusiness.Itinformshowwemanageourcompany,theresponsibleproductsandservicesweofferour customers,andtheimpactwemakearoundtheworldinhelpinglocaleconomiesthrive.ESGisfirmlyrootedinhowwedeliver sustainablegrowthandreflectsourvalues,presentstremendousbusinessopportunity,andallowsustocreatesharedsuccess withourclientsandcommunities. ESGfacilitatesbusinessgrowthbycapitalizingoncustomerandclientinterestinimpactinvestingandcapitalmarkets opportunitiesthathelpaddresstoday’schallengeswhilealsopresentingagoodbusinessopportunity.Thiscanbeseeninthe morethan$15billioninassetsundermanagementwithaclearlydefinedESGapproach. ESGinformsourcustomer-focusedstrategy, sowehavetherightsetofresponsibleproductsandservicestoservethefull rangeofclientneeds—withaparticularfocusonlow-andmoderate-incomecommunities. ESGunderscoreshowwegrowwithinourriskframework,engagingexternalstakeholdersandprovidingstrongoversightof environmentalandsocialrisksthatpresentthemselvesthroughourbusinessactivities. Environmental Sustainability Weareinauniquepositiontohelpcommunitiestransitiontoalow-carbon,sustainableeconomy.Wedothisbyproviding financingforprojectsthatreduceenergyconsumption,greenhousegasemissions,anddemandsonnaturalresourceslike waterandland,whilelesseningtheimpactofourownoperations. ‰ Since2013,wehavedeliverednearly $66billion towardsourgoalofproviding $125billionby2025 forlow-carbonand sustainablebusinessthroughlending,investing,capitalraising,advisoryservices,anddevelopingfinancingsolutionsfor clientsaroundtheworld ‰ Wehave quantifiedtheeconomicimpactofourU.S.environmentalfinance effortsbetween2013–2016inpartnershipwith anindependentconsultingfirmandestimatethatduringthisperiod,ourcurrentenvironmentalbusinessinitiativesupported anapproximateannualaverageof40,000jobs,realizedanapproximatecumulative$30billionineconomicoutput,and contributedacumulative$14.8billiontotheGDPoftheUnitedStates ‰ Wehavebeen theleadingglobalunderwriterofgreenbonds intheindustrysince2007andthe leadingprovideroftax- equityinvestment insolarandwindpowersince2015 Advancing Economic and Social Progress Wehelpadvanceeconomicandsocialprogressbyresponsiblyextendingcapitaltoindividualsandcompaniestocreatemore opportunityandaddressimportantsocialissues.Forexample,in2017we: ‰ Providedover $4billioninloans,taxcreditequityinvestments,andotherrealestatedevelopmentsolutions tocreate housingforindividuals,families,veterans,seniors,andpreviouslyhomelessindividualsacrosstheUnitedStates ‰ Investedmorethan $1.5billioninover260communitydevelopmentfinancialinstitutions tofinanceaffordablehousing, smallbusinesses,andeconomicdevelopment ‰ Announcedan additional$20millioninfunding availablethroughtheToryBurchFoundationCapitalProgramtoconnect womenentrepreneurstoaffordableloans.SincelaunchinginJanuary2014,morethan1,700womenentrepreneurshave receivedcapitaltogrowtheirbusinesses ‰ Continuedtobeoneofthenation’stopsmallbusinesslenders,with $34billioninsmallbusinessloanbalances (commercialloansunder$1million),accordingtotheFederalDepositInsuranceCorporation ‰ Delivered nearly$200millioninphilanthropicinvestments ,including$44milliontoconnectindividualstojobsandskills thatwillbuildlong-termfinancialsecurity ‰ ContinuedinvestmentinourBetterMoneyHabits ® financialeducationresource,includingbeginningtoroll-out BetterMoney HabitscontentinSpanish tobetterserveHispanicandLatinocommunities BankofAmericaCorporation2018ProxyStatement 23 Total of 02 pages in section 26 CorporateResponsibility Corporate Responsibility CorporateresponsibilityisfundamentaltoBaxter’sstrategicaspirationsandsupportsitsmissiontosaveandsustainlives.The companyisfocusedonachievingtopquartileresultsrelativetoitsindustrypeersandothercomparatorsacrossfourdimensions: qualityandpatientsafety,bestplacetowork,growththroughinnovationandindustryleadingperformance.Baxter’scorporate responsibilitystrategyfocusesontheissuesthatmattermosttothecompany(inaccordancewithitsmissionandstrategicgoals)and itsstakeholders.ThisstrategyalsoreflectsBaxter’sassessmentofwhereitmaybeabletohavethegreatestpositiveimpact,andis reflectedinBaxter’sCorporateResponsibilityPrioritiesandGoals(whicharesetforthinBaxter’sannualCorporateResponsibility Reportandbrieflyhighlightedbelow). Management and Board Oversight Baxter’sCorporateResponsibilityCouncil,composedofexecutivesandsubjectmatterexpertsfromacrossthecompany,helps overseeBaxter’scorporateresponsibilitystrategiesandleadsthecompany’seffortstointegratecorporateresponsibilityintothe company’sbusiness.Beginningin2018,thefullBoardwillbeupdatedoncorporateresponsibilitymatters(includingadiscussionof relatedgoalsandindustrytrends)atleastannually.Previously,theseupdateshadbeenprovidedtotheQuality,Complianceand TechnologyCommittee.Additionally,during2017andearly2018,aspartofBaxter’senhancedstockholderengagementprogram, Baxtermanagementhasengagedincorporateresponsibilitydiscussionswithcertaininvestors.Managementcontinuestosolicit feedbackfromstockholdersonthesesubjectsandprovidesasummaryofresponsestotheBoard.See“ExecutiveCompensation— CompensationDiscussionandAnalysis—Summary—StockholderEngagement”foradditionalinformation. Priorities and Goals Baxterhasalong-standingcommitmenttoresponsibleoperationsandcorporateresponsibilityreporting.Baxteriseverconsciousof itsglobalimpact,includingwithrespecttoitsemployees,thecommunitiesitoperatesinandthepeoplewhouseitsproducts.The companybelievesthatithasanobligationtoensurethatthesecommitmentsarereflectedinitsglobalimpact.Baxter’scorporate responsibilityprioritiesandgoalsfor2017coverthebeloweightcategories: EMPLOYEE HEALTHAND SAFETY Pursuea zero- harmworkplace and improve employee well-being Support communities worldwide in enduringways Improve sustainability andperformance ofproducts and services Promote inclusion, diversity and employee engagement Improveaccess tohealthcare for theunderserved Implementworld- class sustainability practiceswith keypartners Drive aculture of integrityand thehighest ethicalbehavior Reduce environmental footprint through increased efficiency and resource conservation WORKPLACE CULTURE RESPONSIBLE PROCUREMENT ANDLOGISTICS OPERATIONS ETHICSAND COMPLIANCE INNOVATION THATEXPANDS ACCESSTO CARE PRODUCT INNOVATION SERVINGOUR COMMUNITIES |2018AnnualMeetingofStockholdersandProxyStatement Total of 02 pages in section ANNEXA CorporateGovernanceandDirectors’ Remuneration A report on corporate governance and compliance with the UK Corporate Governance Code is contained in the Carnival plc Corporate Governance Report attached as Annex C to the Proxy Statement. Part I of the Carnival plc Directors’ Remuneration Report is includedin the Proxy Statement and Part II of the Carnival plc Directors’ Remuneration Report is attached as Annex B to the Proxy Statement. CorporateandSocial Responsibility Health,environmental,safety, security The Boards of Directors of Carnival Corporation & plc established Board-level Health, Environmental, Safety & Security (“HESS”) Committees comprised of four independent Directors. The principal function of the HESSCommittees is to: • assist the Boards in fulfilling their responsibility to supervise and monitor Carnival Corporation & plc’s health, environmental, safety, security and sustainability-related policies, programs, initiatives at sea andashore; and • comply with related legal and regulatory requirements relating to health, environmental, safety, security andsustainability. The HESS Committees and our management team review all significant risks or exposures and associated mitigating actions. Each of the Chief Executive Officers of our brands attends the meetings of the HESSCommittees. Carnival Corporation & plc recognizes their responsibility to provide industry leadership and to conduct our business as a responsible global citizen. Our corporate leadership is manifested in our Code of Business Conduct and Ethics, which requires that every employee and member of the Boards use sound judgment, maintain high ethical standards and demonstrate honesty in all business dealings. As a responsible global citizen, Carnival Corporation & plc is committed to achieving and maintaining the higheststandards of professionalandethicalconduct. In addition,CarnivalCorporation& plc’sHESSPolicydescribesour commitments to: • protecting the health, safety and security of our passengers, guests, employees and all others working on our behalf, thereby promoting an organization that strives to be free of injuries, illness andloss; • protecting the environment, including the marine environment in which our vessels sail and the communities in which we operate, striving to prevent adverse environmental consequences and usingresources efficientlyandsustainably; • complying with or exceeding all legal and statutory requirements related to health, environment, safety, security andsustainabilitythroughout our businessactivities; and • assigning health, environment, safety, security and sustainability matters the same priority as other criticalbusinessmatters. The HESS Policy is published on the Carnival Corporation & plc website at www.carnivalcorp.com or www.carnivalplc.com. The Boards recognize that Carnival Corporation & plc needs to ensure that there is a consistent standard of operation throughout their fleet in keeping with their leading position in the cruise industry. In this regard, the Carnival Corporation & plc Maritime Policy & Analysis Department is headed by a Chief Maritime Officer, with a full-time professional and administrative staff, and is responsible for providing a common, integrated approach to management of HESS matters and for reporting to the HESS Committees on such matters. The Chief Maritime Officer reports to the Chief Executive Officer andto the Chairof the HESSCommittees. CarnivalplcDirectors’Report A-5 Total of 02 pages in section CORPORATE GOVERNANCE Board Self-Evaluation TheBoardanditsstandingcommitteesperformthoroughself-evaluationseachyear.Theseself-evaluationsare overseenbytheGONCommitteeandaredesignedtoensurethattheBoardfunctionseffectivelyandidentifiesareas ofpotentialimprovement.In2017,theseself-evaluationsincludedthedistributionofquestionnairestoeachdirector, wide-rangingBoardandcommitteediscussionsinexecutivesessionledbytheindependentLeadDirectororrelevant committeechair,andopportunitiesfordiscussionsbetweenindividualdirectorsandtheCorporateSecretary,the independentLeadDirector,and/oranyrelevantcommitteechair.Topicscoveredbytheseself-evaluationsincluded: • whetherthestructureoftheBoardanditscommitteesisappropriateinlightoftheCompany’sstrategicobjectives; • theBoard’seffectivenessinoverseeingandmonitoringBoeing’slong-termstrategy,includingitslong-rangebusinessplan; • theeffectivenessoftheBoard’soversightofkeystrategic,operational,andcompliancerisks; • theadequacyofthewrittenmaterialsandpresentationspreparedbymanagementfortheBoard; • thequalityoftheBoard’sdeliberations,aswellaswhetherthereareadequateopenlinesofcommunication betweendirectorsandmembersofmanagement; • whetherexecutivesessionsareheldwiththeappropriatefrequencyandcoveranappropriaterangeoftopics; • theextenttowhichthemixofskills,attributes,andqualificationsoftheindividualdirectorsenabletheBoardto performeffectively;and • whetherindividualdirectorsarepreparedforeachmeetingandcontributesubstantivelytothedeliberationsofthe Boardandanyrelevantcommittee. Followingtheseself-evaluations,theindependentLeadDirectorand/orGONCommitteechairdiscussesareasforpotential improvementwiththeBoardand/orrelevantcommitteesand,ifnecessary,identifiesstepsrequiredtoimplementthese improvements.TheBoardhasmadeseveralchangestohowitoperatesbasedontheresultsofrecentself-evaluations, includingadditionalopportunitiesforone-on-onedirectorinteractionwithseniormanagementsuccessioncandidates, enhanceddirectororientationprocedures,andincreasedfrequencyofreviewsofkeyriskssuchascybersecurity. Environmental Stewardship and Global Engagement Environmental Stewardship Boeing’scommitmenttoinnovationmeansmorethanjustgame-changingaerospaceproductsandservices.We extendthatcommitmenttohowwetakecareoftheenvironmentandengagewiththecommunitiesinwhichwe operateaswellastheprocessesthatgovernourenvironmentalstrategyandpolicy.Boeingispursuinginnovationand leadershipthatwillbuildabrighter,moresustainablefutureforouremployees,customers,industry,andcommunities. Ourstrategyandactionsreflectgoalsandprioritiesthataddressthemostcriticalenvironmentalchallengesfacingour company,customers,andindustry.Foralinktoour2017EnvironmentReportandadditionalinformationonthegreat progresswehavemadeatimprovingtheenvironmentalperformanceofourproductsandservices,aswellasour operations,visitwww.boeing.com/principles/environment. Boeing Global Engagement More than $50M in charitablegrants tomore than 500nonprofitorganizations across 50countries Includesa three-year commitmentofmore than $25M to VETERANS PROGRAMS More than $1BILLION ($1.3B tobeexact) inBoeingcommunity investmentsover the last 10 years. $193M in employee contributions since 2013 i l y tri ti s since 2013 targeting increased STEMdiversity, proficiency,and interest amongK–12 students 188 GRANTS Boeing, its employees, andTheBoeing CharitableTrusthave donatedacombined totalofmore than $3.3M to assistwith 2017DISASTERRELIEF Throughpurposefulcommunityinvestments,employeeengagement,andthoughtfuladvocacyefforts,Boeingandits employeessupportinnovativepartnershipsandprogramsthatalignwithourstrategicobjectives,createvalue,andhelp buildbettercommunities.Ourholisticapproachtocharitablegivingincludesnotonlymonetaryresources,butalso investmentsoftimeandtalenttosupportourmilitaryandveterancommunities,improveaccesstogloballycompetitive learningandskillsdevelopment,andcreateandsustaindynamiccommunities.Foradditionalinformation,includingalinkto our2017GlobalEngagementPortfolio,visitwww.boeing.com/principles/global-engagement-summary.page. Meeting Attendance During2017,theBoardheldsevenmeetings.Eachdirectornomineeattendedatleast90%ofthemeetingsofthe Boardandthecommitteesonwhichheorsheservedduring2017,andaverageattendanceatthesemeetings exceeded97%.Absentextenuatingcircumstances,directorsarerequiredtoattendourannualmeetingsof shareholders,andallthen-servingdirectorsattendedour2017AnnualMeeting. 2018Proxy Statement 17