2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 208 TWITTER, INC UNUM GROUP VERIZON COMMUNICATIONS W. R. BERKLEY BOARD OF DIRECTORS AND CORPORATE GOVERNANCE ConsiderationsinEvaluatingDirectorNominees cyberriskexpertise,riskmanagement,talentdevelopmentandothercommitments),interestandavailabilityforboardservice. Ourannualdirectornominationprocessisillustratedbelow. ElectionatAnnual Meeting of Stockholders Board andCommittee Evaluation Nominating andCorporate GovernanceCommittee Recommendations and DirectorNominations InitialReview of DirectorNominees Review ofBoard and CommitteeComposition EstablishmentofSearch Priorities, ifNeeded Ongoing: Board andCommittee SkillsAssessment EvergreenCandidate List StockholderNominations andRecommendations Nomineesmustalsohavetheabilitytoofferadviceand guidancetoourmanagementbasedonpastexperiencein positionswithahighdegreeofresponsibilityandbeleaders inthecompaniesorinstitutionswithwhichtheyareaffiliated. Directorcandidatesmustunderstandthefiduciary responsibilitiesthatarerequiredofdirectorsandhave sufficienttimeavailableinthejudgmentofournominating andcorporategovernancecommitteetoperformallboardof directorandapplicablecommitteeresponsibilities.Members ofourboardofdirectorsareexpectedtopreparefor,attend, andparticipateinallboardofdirectorandapplicable committeemeetings.Otherthantheforegoing,thereareno statedminimumcriteriafordirectornominees,althoughour nominatingandcorporategovernancecommitteemayalso considersuchotherfactorsasitmaydeem,fromtimeto time,areinourandourstockholders’bestinterests. Alldirectorswhojoinourboardofdirectorsarerequiredto participateina“bootcamp”eventfollowingtheir appointment,typicallybeforetheirfirstboardofdirectors meeting,whichisarobustprogramdesignedtoprovide directorswithaccesstoavarietyofinformationand resourcesonkeyissuesaffectingourbusiness.Newly appointeddirectorsmeetwithmembersofsenior managementandselectmembersoftheboardofdirectorsin ordertounderstandthebusinessandoperationsofthe company,andaregivenanoverviewof,amongotherthings, ourkeyprioritiesandstrategies,products,teams,financials, andkeycorporategovernanceandlegalmatters.Our bootcampeventisdesignedtobringournewlyappointed directorsuptospeedquicklyonimportantdevelopments andissuesinthecontextofourbusinessandhelpthem remaincurrentwiththeirboardofdirectorandcommittee dutiesandresponsibilities. Ourboardofdirectorsbelievesthatourboardofdirectors shouldbeadiversebody.OurCorporateGovernance Guidelinesrequireournominatingandcorporategovernance committeetoconsiderabroadrangeofbackgrounds, experiencesanddiversity(inallaspectsofthatword).After completingitsreviewandevaluationofdirectorcandidates, ournominatingandcorporategovernancecommittee recommendstoourfullboardofdirectorsthedirector nomineesforselection. Theexperiences,qualificationsandskillsofeachofthe membersofourboardofdirectorswithtermsexpiringatthe AnnualMeeting(whoarealsonomineesforelectionasa directorattheAnnualMeeting)andforeachofthe continuingmembersofourboardofdirectorsthattheboard 12 TWITTER,INC./2018ProxyStatement ReviewofboardandcommitteecompositionEstablishmentofsearchpriorities,ifneededBoardandcommitteeevaluationInitialreviewofdirectornomineesNominatingandcorporategovernancecommitteerecommendationsanddirectornominationsElectionatannualmeetingofstockholdersOngoing:BoardandcommitteeskillsassessmentEvergreencandidatelistStockholdernominationsandrecommendations Total of 02 pages in section Board Evaluation Process AhealthyandvigorousBoardevaluationprocessisanessentialpartofgoodcorporategovernance.AtUnum, thisprocessincludesannualevaluationsoftheBoard,eachcommittee,andindividualdirectors. TheGovernanceCommitteeestablishesandoverseestheevaluationprocess,whichfocusesonidentifying areaswhereBoard,committeeanddirectorperformanceismosteffective,aswellasopportunitiesforfurther developmentorimprovement.Eachyear,theGovernanceCommitteereviewstheformatandeffectivenessof theevaluationprocessinidentifyingactionablefeedbackfordirectorstoconsider,recommendingchangesin processasappropriate.Determiningwhethertoengageathird-partyfacilitatorisalsopartofthereview. Thispastyear,theevaluationprocesswasconductedintwophases.Thefirstphasefocusedontheevaluation oftheperformanceofeachcommitteeandtheBoardasawhole.Thesecondphasefocusedontheevaluation ofeachdirector’sperformance,andwasledbytheChairmanoftheBoardinadvanceandinanticipationofthe directornominationprocess.Thistwo-phasedapproachgeneratesrobustdiscussionsatalllevelsoftheBoard, andhasresultedinchangesthathaveimprovedBoardefficiencyandeffectiveness. BOARDAND COMMITTEE EVALUATIONS EvaluationForms ð Board/CommitteeMeetings ð FeedbackIncorporated Eachdirectorevaluatesvarious measuresofperformancefor theBoardandeachcommittee onwhichthedirectorserves. Topicsincludecomposition, structureandengagement. ThefullBoardandeach committeeconductseparate closedself-assessment sessions,whereresultsfrom evaluationsandadditional feedbackarediscussed. Basedonevaluationresults, changesareconsideredand implemented,asappropriate. DIRECTOR PERFORMANCE EVALUATIONS PeerEvaluationGuide ð IndividualInterviews ð ReviewMeetings Aguideprovidedtoeach directorinadvanceof individualdiscussions withtheChairman. TheChairmanconducts individualinterviewsto solicitfeedbackfrom directorsontheirpeers. FullBoardfeedbackisprovided toeachdirectorbythe Chairman,includingdiscussion aroundperformancestrengths andopportunitiesforgrowth. CORPORATEGOVERNANCE 16 2018PROXYSTATEMENT CORPORATEGOVERNANCEANDBOARDMATTERS SinceOctober31,2015,Mr.RobBerkley,previouslyourPresidentandChiefOperatingOfficer,hasbeen ourPresidentandChiefExecutiveOfficer,andMr.Wm.Berkley,previouslyourChairmanandChief ExecutiveOfficer,hasbeenExecutiveChairman,therebyseparatingthechairmanandchiefexecutive officerpositions.ThisseparationofrolesallowstheChiefExecutiveOfficertofocusonexecutingthe Company’sstrategicplan,managingtheCompany’soperationsandperformanceandtheguidanceand oversightofseniormanagement. Mr.Wm.BerkleyfoundedtheCompanyin1967andhasbeenitsChairmanoftheBoardsincethattime,a periodofoverfiftyyears,andalsoservedastheCompany’sChiefExecutiveOfficerfrom1967toOctober 2015.UnderMr.Wm.Berkley’sstrategicleadership,theCompanyhasgrownandprosperedsignificantly, withMr.Wm.Berkleybeingrecognizedforhisextensiveexperienceinandleadershipoftheinsuranceand reinsuranceindustries.Riskoversightisanespeciallycomplexissueforpropertycasualtyinsurance companies,andtheBoardofDirectorsbelievesthattheCompany’sstructureunderMr.Wm.Berkley’s leadershipasExecutiveChairmanservesthisfunctionwell. TheBoardbelievesthatitscurrentleadershipstructureiseffectiveandservestheCompanyandits stockholderswell.Mr.Wm.Berkley,theExecutiveChairmanoftheBoardandlargeststockholderwith approximately20%ofourcommonstock,foundedtheCompanyin1967andhasleditforover50years. TheBoardconsidersthatheismostfamiliarwiththeCompany’sbusinessandindustryandhasaunique perspectiveontheCompany’scultureandvalues.Asaresult,heisbestpositionedtounderstandthe issues,opportunitiesandchallengestheCompanyfacesandtoleadtheBoardindiscussionsandexecution ofstrategywithouttheneedforanindependentleaddirector. InhisroleasExecutiveChairman,Mr.Wm.BerkleyhelpstheBoardidentifystrategicprioritiesand investments,leadstheBoardinoversightresponsibilitiesandfacilitatesandpresidesoverBoardmeetings. Sevenoftheninecurrentdirectors(oreightoften,includingthedirectornominee)areindependent, includingallofthemembersoftheAudit,CompensationandNominatingandCorporateGovernance Committees.Theindependentdirectorshaveextensiveleadershipexperience,provideoversightandmeet regularlyinexecutivesessionswithoutanymembersofmanagementpresent.Thepresidingdirectorof theseexecutivesessionsrotates. TheBoardbelievesthatitsstructureandprocessprovideeachdirectorwithanequalstakeintheBoard’s actionsandoversightrole,andmakethemequallyaccountabletostockholders. ExecutiveSessions. InaccordancewithapplicableNYSErules,theindependentdirectorsmeetregularlyin executivesession,whichservestopromoteopendiscussionamongthesedirectors.Thepresidingdirector attheseexecutivesessionsrotates.TheBoardofDirectorsbelievesthatthisrotationprovidesdifferent directorstheopportunitytoguidetheBoard’sagendaandfacilitatescollegialityamongBoardmembers. BoardSelf-Assessment. OurBoardrecognizesthatathorough,constructiveevaluationprocessenhances itseffectivenessandisanessentialelementofgoodcorporategovernance.Accordingly,theBoardof Directorsconductsanannualself-assessmenttodeterminewhetheritandeachofitscommitteeshasthe rightskills,experienceandperspectives.Eachyear,eachdirectorcompletesanevaluationcovering: ➣ Boardandcommitteecomposition,includingappropriatenessanddiversityofskills,backgroundand experience; 2018ProxyStatement 43 Total of 03 pages in section BoardandCommittees | Boardmeetingsandexecutivesessions Beyondtheboardroom EngagementoutsideofBoardmeetingsprovidesourDirectorswithadditional insight intoourbusinessandour industry, andgives them valuableperspectiveon theperformanceofourCompany, theBoard,ourCEOandothermembersof seniormanagement,andon theCompany’sstrategicdirection. Our individualDirectorshavediscussionswith eachotherandwithourCEO,andhave informal individualandsmallgroupmeetingswithhigh potentialmembersofourseniormanagement team inorder togain insight into theCompany’s managementdevelopmentprogramand successionpipeline. OurcommitteechairsandLeadDirectormeet andspeak regularlywitheachotherandwith membersofourmanagement inconnectionwith planning formeetings. OurDirectors regularlyattend “deepdives”on current topicsof interestand technology training aspartof theirongoingDirectoreducation program. OurDirectors receiveweeklyupdateson recent developments,presscoverageandcurrent events that relate toourbusiness. AnnualBoardandcommitteeevaluations OurBoardconductsanannualself-assessmentaimedatenhancingitseffectiveness.Aspartoftheassessment,each DirectorcompletesawrittenquestionnairethatisdesignedtogathersuggestionsforimprovingBoardeffectivenessandto solicitfeedbackonarangeofissues,includingBoardoperations,Boardandcommitteestructureanddynamics,theflowof informationfrommanagement,andagendatopics.Inaddition,theLeadDirectorconductsindividualinterviewswitheachof theindependentDirectorstodiscussthesetopics.Thefeedbackreceivedfromthequestionnairesandinterviewsis discussedduringanevaluationsession. Eachofthefourstandingcommitteesalsoconductsitsownannualself-assessment,whichincludesawrittenquestionnaire andevaluationsession.Evaluationsessionsareledbythecommitteechairsandgenerallyincludeareviewofthecommittee charter,theannualagenda,andthecommittee’soveralleffectiveness. Inadditiontotheseannualself-assessments,theBoardevaluatesandmodifiesitsoversightofVerizon’soperationsonan ongoingbasis.Duringtheirexecutivesessions,theindependentDirectorsconsideragendatopicsthattheybelievedeserve additionalfocusandraisenewtopicstobeaddressedinfuturemeetings. TheCorporateGovernanceandPolicyCommitteeannuallyappraisestheframeworkforourBoardandcommittee evaluationprocesses. 14 | Verizon 2018ProxyStatement Beyondtheboardroom EngagementoutsideofBoardmeetingsprovidesourDirectorswithadditionalinsightintoourbusinessandourindustry,andgivesthemvaluableperspectiveontheperformanceofourCompany,theBoard,ourCEOandothermembersofseniormanagement,andontheCompany’sstrategicdirection . OurindividualDirectorshavediscussionswitheachotherandwithourCEO,andhaveinformalindividualandsmallgroupmeetingswithhighpotentialmembersofourseniormanagementteaminordertogaininsightintotheCompany’smanagementdevelopmentprogramandsuccessionpipeline. OurDirectorsregularlyattend“deepdives”oncurrenttopicsofinterestandtechnologytrainingaspartoftheirongoingDirectoreducationprogram . OurcommitteechairsandLeadDirectormeetandspeakregularlywitheachotherandwithmembersofourmanagementinconnectionwithplanningformeetings. OurDirectorsreceiveweeklyupdatesonrecentdevelopments,presscoverageandcurrenteventsthatrelatetoourbusiness. Total of 02 pages in section