2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 206 JOHNSON & JOHNSON NASDAQ, INC. NIELSEN HOLDINGS PLC PROLOGIS BOARD MEETINGS AND PROCESSES DirectorMeetingsandAttendance During2017,theBoardofDirectorsheldeightregularmeetingsandonespecialmeeting.EachDirectorattendedatleast 75%ofthetotalofregularly-scheduledandspecialmeetingsoftheBoardofDirectorsandtheCommitteesonwhichheor sheserved(duringtheperiodthatheorsheserved). IthasbeenourlongstandingpracticeforallDirectorstoattendtheAnnualMeetingofShareholders.All10ofourDirectors whowereelectedtotheBoardatthe2017AnnualMeetingattendedthemeeting. ExecutiveSessions During2017,eachofthe Audit,Compensation&Benefits,Nominating&CorporateGovernance,Regulatory,Compliance& GovernmentAffairs,andScience,T echnology&SustainabilityCommitteesmetinexecutivesessionswithoutmembersof managementpresent.TheindependentDirectorsmetinexecutivesessionateveryregularBoardmeetingduring2017and heldaspecialexecutivesessiontoperformtheannualevaluationoftheCEO/Chairman.TheLeadDirectoractedasChair atalloftheseexecutivesessions. BoardandCommitteeEvaluations OurPrinciplesofCorporateGovernancerequirethattheBoardandeachCommitteeconductanannualself-evaluation. Theseself-evaluationsareintendedtofacilitateacandidassessmentanddiscussionbytheBoardandeachCommitteeof itseffectivenessasagroupinfulfillingitsresponsibilities,itsperformanceasmeasuredagainstthePrinciplesofCorporate Governance,andareasforimprovement. BoardEvaluations :Attheendof2016,theLeadDirector,andcertainmembersofmanagement,metwitheachDirector individuallytocollectfeedbackontheBoard’sresponsibilities,structure,procedures,atmosphereandengagement.In2017, theNominating&CorporateGovernanceCommitteeinitiatedtwoprocesschangesforgatheringBoardfeedback.First, writtenquestionswereusedwithtechnologytoensurecandidanonymousfeedbackfromeachDirector.Second,atthe requestoftheLeadDirector,eachofthenon-employeeDirectorscompletedananonymouswrittenevaluationoftheLead Director.Inallcases,inputfromtheevaluationswassynthesizedanddiscussedwiththefullBoardwithcertainminorand administrativeactionitemsemergingfromthediscussion. CommitteeEvaluations :Committeemembersareprovidedwithaquestionnairetofacilitatediscussionduringanexecutive sessionoftheCommittee,anduponcompletionoftheself-evaluation,theChairmanoftheCommitteereportstothefull Boardonthediscussionandanynecessaryfollow-upactions. 2018ProxyStatement-32 Total of 02 pages in section Notice of 2018 AnnualMeeting of Stockholders and Proxy Statement 30 BOARD AND COMMITTEE EVALUATIONS / INDIVIDUAL DIRECTOR ASSESSMENT The Board Assessment Process Ongoing TheBoard andCommittees regularlymonitor progress of any agreed-upon actions. Questionnaire Written questionnaire for the Board and eachCommittee solicits director feedback about the effectiveness of theBoard and its Committees on an unattributed basis. Discussion and Evaluation TheBoard andCommittees discuss the feedback in Chairman’s or ExecutiveSession. Feedback A summary of the results of both the questionnaire and the one-on-one discussions is provided to theBoard and the Committees. Director Self-Assessment Candid, one-on-one discussions between theBoardChairman and each independent director elicits input and feedback. Action Plan TheBoard andCommittees consider and agree on an action plan to implement changes, policies and procedures, as appropriate. BOARDOFDIRECTORSANDCORPORATEGOVERNANCE Board Evaluations and Process for Selecting Directors InourannualBoardevaluationprocess,theGovernanceCommittee evaluatesourdirectorsinlightofcurrentneedsoftheBoardandthe company. OurannualBoardevaluationprocessinvolvesassessmentsattheBoard, Boardcommitteeandindividualdirectorlevels.Throughthisprocess,the Boarddetermineswhoshouldbenominatedtostandforelectionbasedon currentcompanyandBoardneeds. Inthisprocess,directorscompleteaBoardsurveytoidentifykeyskillsand characteristicscurrentlyneededfortheBoard,aswellastoprovide informationrelatingtoBoardcompositionandplanning. Directorinterviewquestionsarepreparedbasedoncurrentareasoffocusas wellasfeedbackfromourstockholderoutreachefforts. Annualone-on-onedirectorinterviewsareconductedbyourlead independentdirectorandchairoftheGovernanceCommitteeor,atleast everytwoyears,byanindependentthirdparty. Theresultsofthedirectorinterviewsareaggregatedbyourlead independentdirector,GovernanceCommitteechair,orifapplicable,the independentthirdparty,andreportedtotheGovernanceCommitteeand thentoourfullBoard.OurBoardwillfollowuponitemsidentifiedinthe evaluationprocess. OurGovernanceCommitteediscussesBoardsuccessionandreviews potentialcandidates.Thisprocesstakesplacethroughoutthecourseofthe year.Althoughthecommitteemayretainthirdpartiestoassistinidentifying potentialnominees,itprefersinternalreferencesbydirectorswho understandtheneedsanddynamicsoftheBoardwithaparticularfocuson inclusionanddiversityofideasandbackground. Feedbackreceivedinour2018Boardevaluationsnotedthehighfunctioning natureoftheBoardandtheneedfornewdirectorswithtechnology, innovation,financeand/oraccountingbackgrounds.Ournominationof CristinaBitaaddressestheseneeds. Board Evaluation and Refreshment Process 1. BoardPlanning Survey 2. DirectorInterview QuestionsBasedon StockholderFeedback andKeyAreasof Focus 3. One-on-OneDirector Interviews 4. ReporttoGovernance Committee 5. BoardDiscussionsand FollowUp 6. Identificationof CurrentBoardNeeds 7. Identificationof PotentialCandidates andBoardInterviews/ Discussion Three New Director Nominees in the Past Three Years I 9 THEBOARDOFDIRECTORSANDCERTAINGOVERNANCEMATTERS BOARD AND COMMITTEE EVALUATIONS OurBoardrecognizesthatathorough,constructiveevaluationprocessenhancesourBoard’seffectivenessandisan essentialelementofgoodcorporategovernance.Accordingly,everyyear,ourNominationandCorporateGovernance CommitteeoverseestheevaluationprocesstoensurethatthefullBoardandeachcommitteeconductsan assessmentofitsperformanceandfunctioningandsolicitsfeedbackforenhancementandimprovement. Boardand committee composition, including skills,background,diversityandexperience Reviewofkeyareasof focus for theBoardandeffectiveness inoverseeing these responsibilities Satisfactionwithdirectorperformance, including thatofBoardand committee chairpersons Boardand committee informationneedsandqualityofmaterialspresented Areaswhere theBoardand committees should increase their focus Satisfactionwith theBoard schedule,agendas, timeallocated for topicsandencouragementofopen communicationanddiscussion Our Board evaluations cover the following topics: • • • • • • Satisfactionwith committee structureand considerationas towhetheranynew committees should beestablished • Access tomanagement,expertsand internalandexternal resources • Corporate Governance Review During2017,ourBoardChairpersonand the ChairpersonofourNominationandCorporate GovernanceCommittee re-examinedour evaluationprocess toensure that the processallowsdirectors theopportunity to provideactionable feedbackon the functioningof theBoardasawholeaswell as theperformanceof individualdirectors. Summary of the Written Evaluations Nielsen’sCompanySecretaryaggregates and summarizesourdirectors’ responses to thequestionnaires,highlighting comments and yearover year trends.Responsesare notattributed to specificBoardor committee members topromote candor.Summaries of thewrittenevaluationsare sharedwith Boardand committeemembers to inform their reviewanddiscussion. Board and Committee Review Using thequestionnaireand summariesof writtenevaluationsasguides,ourChairperson reviews the resultsof theBoardevaluation, andeach committee chairperson reviews the resultsofeach committeeevaluation. Theevaluationsand summariesare shared anddiscussedwith the fullBoardandeach committeeduringexecutive sessions. Annual Board and Committee Evaluations TheBoardandeach committee conduct annualevaluations through theuseofa writtenquestionnaire that covers the topics discussedabove. 1 2 3 4 5 Actions Asanoutcomeofthesediscussions,theBoardChairpersonandeachcommitteechairpersonsuggestchanges forareasofimprovement.Examplesofchangesmadeinresponsetotheevaluationprocessinclude: • Boardrefreshment,includingaddingadirectorwithCEOandtechnologyexperience; • ExtendingthelengthofBoardandcommitteemeetingstoallowadditionaltimeforexecutivesessions;and • ExpandingtheremitoftheCompensationCommitteetoincludeoversightofleadershipdevelopmentof employeesaswellasmattersrelatedtoemployeeexperience,recruitment,advancementandretention. 2018PROXYSTATEMENT 13