2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 212 NIELSEN HOLDINGS PLC REPUBLIC SERVICES SPROUTS FARMERS MARKET STARBUCKS CORPORATION ELECTIONOFDIRECTORS DIRECTOR NOMINATION PROCESS OurNominationandCorporateGovernanceCommitteeusesthefollowingprocesstoidentifyandaddnew directorstotheBoard: 1 Collect Candidate Pool • Independent Directors • Shareholders • Independent Search Firms 4 Outcome Fivenew independent directorsadded since 2013, including: 2women 2 In-Depth Review • Candidatesmeetwith membersof the Nominationand CorporateGovernance Committeeand itsChairperson. • TheNominationand CorporateGovernance Committee takes intoaccount the qualificationsdiscussed in theSummaryof Proxy Information sectionunder “Board ExpertiseandSkills”as wellasallother factors it considersappropriate tobuildaBoard to effectivelyoversee Nielsen’s strategyand evolvingbusiness priorities. • Duediligence is conducted. TheChairpersonof the Nominationand CorporateGovernance Committee solicits feedback fromother directorsaswell as thirdpartieson potential candidates. 3 Recommendation to the Board • • 2ethnicallydiverse • Formerand current CEOs • Mediaexpertise • Tech,digital,mobile expertise • Globalandemerging marketsbusiness expertise • Fastmoving consumer goodsexpertise • TheNominationand CorporateGovernance Committeepresents qualified candidates to theBoard. OurNominationandCorporateGovernanceCommitteeisauthorizedtouseanindependentsearchfirmtohelp identify,evaluateandconductduediligenceonpotentialdirectorcandidates.Mr.DeLucawasidentifiedthrough theuseofanindependentsearchfirm.UsinganindependentsearchfirmhelpstheNominationandCorporate GovernanceCommitteeensurethatitisconductingabroadsearchandhelpsittoconsideradiverseslateof candidateswiththequalificationsandexpertisethatareneededtoprovideeffectiveoversightofmanagementand assistinlong-termvaluecreation. Diversity Policy ThecharterofourNominationandCorporateGovernanceCommitteerequirestheNominationandCorporate GovernanceCommitteetoconsiderallfactorsitdeemsappropriate,whichmayincludeage,gender,nationalityand ethnicandracialbackgroundinnominatingdirectorsandtoreviewandmakerecommendations,astheNomination andCorporateGovernanceCommitteedeemsappropriate,regardingthecompositionandsizeoftheBoardto ensuretheBoardhastherequisiteexpertiseanditsmembershipconsistsofpersonswithsufficientlydiverseand 2018PROXYSTATEMENT 2 Boardof Directors andCorporate Governance Matters feedbackis alsoconsideredby the Governance Committee whensearchingfor andevaluatingpotentialfuture Boardnomineesto helpensure weare addingnewdirectors withthe proper mix of subjectmatter expertise andperspectiveconsistent withthe needsof our growingcompany. Director SuccessionPlanning. TheBoardhas inplacean ongoingsuccessionplanningprocess. The Board, through the Governance Committee, engagesinformal Boardsuccessionplanning/ forward planning discussionsduringthe year inwhichit considersandevaluatesdirector tenure andskill-setscurrently represented. Thisdiscussionis supported by the formal evaluationprocess that identifiesareas for improvement, includingthe needto addnewmembers withuniqueexpertise andexperiencethat it believes willbenefit our Company, andsets refreshment targets accordingly.Thesediscussiontopics are includedas a quarterly Governance Committee agendaitem. TheBoardhas alsoestablisheda mandatory director retirement ageof 73 to promote continualrefreshment andthe additionof diverseperspectives; however, the Boardretains the discretionto request a member to remain on the Boardif circumstances warrant. For the upcomingyear, the Boardhas askedJohnM. Tranito remain on the Boardbecauseit believesthat Mr. Trani’schief executiveandfinancialexperience,inadditionto hisknowledgeof our business,willensure that optimalexpertise is represented on the Boardwhilethe Boardcontinuesto seek andintegrate new members. TheGovernance Committee utilizesan executivesearch firm to identifypotentialdirector candidatesandconducts interviewson an ongoingbasis. Our board evaluationandsuccessionplanningprocesses are both waysinwhichthe Boardexecutes on its commitment to refreshment. Thefollowinggraphicillustrateshowthese processes support our commitment to helpensure wehavethe right members on our Board: • Annual self-assessments • Results sharedwith fullBoard • Identifyareas for improvement (includingadditionofnew directors) • QuarterlyGovernance Committeeagenda item • Consider findings fromBoard evaluationprocess • Determineneed toadd directorswith specialexpertise • Changes reflectongoingBoard evaluationand succession planningprocesses • Emphasizekey criteria,diversity • Ongoing candidate interviews BoardEvaluationProcess SuccessionPlanningProcess BoardRefreshment Management SuccessionPlanning. TheBoard, through the Governance Committee, alsoregularlyreviews the Company’sexecutivemanagement successionplanto helpensure businesscontinuityinthe event a key executivedeparts from the Company. Thisevaluationincludesa thorough discussionon the Company’s seniorleadershipstructure andfocuses on key positionsheldby our executives. TheBoard’scommittees also frequently discussthe talent pipeline,andindividualsidentifiedas potentialfuture leadersare givenexposure to Boardmembers through formal presentationsandinformal meetings or events. More broadly, the Board, through the CompensationCommittee, is regularlyupdatedon key talent indicatorsfor the overallworkforce, anddiversity, recruiting anddevelopmentprograms. Republicis alsocognizantof the impact our overall compensationprogram has on our successionplanningprocess andhas designedour program accordingly. BoardEvaluationProcessAnnualself-assessmentsResultssharedwithfullBoardidentifyareasforImprovement(includingadditionornewdirectors)SuccessionPlanningProcessQuarterlyGovernanceCommitteeagendaItemConsiderfindingsfromBoardevaluationprocessDetermineneedtoadddirectorswithspecialexpertiseBoardRefreshmentChangesreflectongoingBoardevaluationandsuccessionplanningprocessesEmphasizekeycriteria,diversityOngoingcandidateinterviews 20 RepublicServices,Inc.2018ProxyStatement CORPORATEGOVERNANCE NominatingandCorporateGovernanceCommittee CommitteeMembers ‰ CraigE.Weatherup(Chair) ‰ WilliamW.Bradley ‰ RosalindG.Brewer* ‰ MaryN.Dillon ‰ RobertM.Gates ‰ JørgenVigKnudstorp ‰ JoshuaCooperRamo ‰ JamesG.Shennan,Jr.** ‰ ClaraShih Numberofmeetingsinfiscal 2017:6 TheNominating/GovernanceCommitteeannuallyreviewsandreassessestheadequacyofitscharter.As describedmorefullyinitscharter,theNominating/GovernanceCommitteeisresponsibleforproviding leadershipwithrespecttothecorporategovernanceofStarbucksandadvisingandmaking recommendationstotheboardofdirectorsregardingcandidatesforelectionasdirectorsoftheCompany. Amongitsspecificduties,theNominating/GovernanceCommittee: • makesrecommendationstotheboardaboutourcorporategovernanceprocesses; • assistsinidentifyingandscreeningboardcandidates; • administerstheDirectorNominationsPolicy; • considersshareholdernominationstotheboard; • makesrecommendationstotheboardregardingmembershipandchairsoftheboard’scommittees; • overseestheannualevaluationoftheeffectivenessoftheboardandeachofitscommittees; • bienniallyrecommendstheboard’sleadindependentdirector; • bienniallyreviewsthetypeandamountofboardcompensationforindependentdirectors; • annuallyreviewstheCompany’scorporatepoliticalcontributionsandexpenditurestoconfirmalignment withCompanypoliciesandvalues;and • annuallyreviewsandassessestheeffectivenessoftheCompany’senvironmentalandsocial responsibilitypolicies,goalsandprogramsthroughtheannualGlobalResponsibilityReport,andmakes recommendationsasdeemedappropriatebasedonsuchreviewandassessment. * Ms.Brewerceasedmembershipon theCommitteepriortoher appointmentasanexecutiveofficer oftheCompany **Mr.Shennanretiredfromtheboard onMarch22,2017 TheNominating/GovernanceCommitteealsoannuallyassiststheboardofdirectorswithitsaffirmative independenceandexpertisedeterminations.Afterconsultingwiththeindependentdirectorsoftheboard, thechairoftheNominating/GovernanceCommitteeandthechairoftheCompensationCommittee annuallyreviewtheperformanceoftheexecutivechairmanandthepresidentandchiefexecutiveofficer andmeetwiththemtosharethefindingsofthereview. Messrs.Bradley,Gates,Knudstorp,Ramo,ShennanandWeatherupandMs.Brewer,Ms.Dillonand Ms.ShihservedontheNominating/GovernanceCommitteeduringfiscal2017.Mr.Shennanceased membershipontheNominating/GovernanceCommitteeuponhisretirementfromtheboardinMarch 2017.Ms.BrewerceasedmembershipontheCommitteepriortoherappointmentasgrouppresident, AmericasandchiefoperatingofficeroftheCompany. OurDirectorNominationsProcess OurPolicyonDirectorNominationsisavailableat www.starbucks.com/ about-us/company-information/corporate-governance .Thepurposeof thenominationspolicyistodescribetheprocessbywhichcandidates areidentifiedandassessedforpossibleinclusioninourrecommended slateofdirectornominees(the“candidates”).Thenominationspolicy wasapprovedbythefullboardofdirectorsandisadministeredbythe Nominating/GovernanceCommittee. MinimumCriteriaforBoardMembers Eachcandidatemustpossessatleastthefollowingspecificminimum qualifications: • eachcandidateshallbepreparedtorepresentthebestinterestsof allshareholdersandnotjustoneparticularconstituency; • eachcandidateshallbeanindividualwhohasdemonstrated integrityandethicsinhisorherpersonalandprofessionallifeand hasestablishedarecordofprofessionalaccomplishmentinhisor herchosenfield; • nocandidate,orfamilymember(asdefinedinNASDAQrules)or affiliateorassociate(asdefinedinfederalsecuritieslaws)ofa candidate,shallhaveanymaterialpersonal,financialorprofessional interestinanypresentorpotentialcompetitorofStarbucks; • eachcandidateshallbepreparedtoparticipatefullyinboard activities,includingactivemembershiponatleastoneboard committeeandattendanceat,andactiveparticipationin,meetingsof theboardandthecommittee(s)ofwhichheorsheisamember,and nothaveotherpersonalorprofessionalcommitmentsthatwould,in theNominating/GovernanceCommittee’ssolejudgment,interfere withorlimithisorherabilitytodoso;and • eachcandidateshallbewillingtomake,andfinanciallycapableof making,therequiredinvestmentinourstockintheamountand withinthetimeframespecifiedinthedirectorstockownership guidelinesdescribedinthisproxystatement. DesirableQualitiesandSkills Inaddition,theNominating/GovernanceCommitteealsoconsidersit desirablethatcandidatespossessthefollowingqualitiesorskills: • eachcandidateshouldcontributetotheboardofdirectors’overall diversity-diversitybeingbroadlyconstruedtomeanavarietyof opinions,perspectives,personalandprofessionalexperiencesand backgrounds,suchasgender,raceandethnicitydifferences,aswell asotherdifferentiatingcharacteristics; • eachcandidateshouldcontributepositivelytotheexistingchemistry andcollaborativecultureamongboardmembers;and • eachcandidateshouldpossessprofessionalandpersonal experiencesandexpertiserelevanttoourgoalofbeingoneofthe world’sleadingconsumerbrands.Atthisstageofourdevelopment, relevantexperiencesmightinclude,amongotherthings,sittingCEO ofalargeglobalcompany,large-companyCEOexperience, internationalCEOexperience,senior-levelinternationalexperience, senior-levelmulti-unitsmallboxretailorrestaurantexperienceand relevantsenior-levelexpertiseinoneormoreofthefollowingareas: finance,accounting,salesandmarketing,organizational development,informationtechnology,socialmediaandpublic relations. 18 / 2018PROXYSTATEMENT CorporateGovernance The nominating and corporate governance committee has the following responsibilities, among other things, as set forth in the nominating and corporate governance committee’s charter: • reviewing periodically and evaluating director performance on our board of directors and its applicable committees, and recommending to our board of directors and management areas for improvement; • establishing criteria and qualifications for membership on the board of directors and its committees; • interviewing, evaluating, nominating, and recommending individuals for membership on our board of directors; • reviewing and recommending to our board of directors any amendments to our corporate governance policies; and • reviewing and assessing, at least annually, the performance of the nominating and corporate governance committee and the adequacy of its charter. Our nominating and corporate governance committee formally met two times during fiscal 2017. Board Evaluations Our board believes that a robust annual evaluation process is a critical part of its governance practices. Accordingly, the nominating and corporate governance committee oversees an annual evaluation of the performance of the board of directors. The committee approves written evaluation questionnaires that are distributed to each director. The results of each written evaluation are provided to, and compiled by, an outside law firm. The chair of the nominating and corporate governance committee discusses the results of the performance evaluations with the full board. Our board utilizes the results of these evaluations in making decisions on director nominees, board agendas, board structure, composition and effectiveness and committee assignments. As a result of past board evaluations, we have made changes to board meeting agenda and the form and scope of materials provided to directors. Identifying and Evaluating Director Candidates Director candidates are evaluated in light of the then-existing composition of the board, and the background and areas of expertise of existing directors and potential nominees, The nominating and corporate governance committee also considers the specific needs of the various board committees. In the case of Mr. O’Leary, the most recent addition to our board, the committee considered, among other factors, his merchandising and supply chain and logistics experience with other successful growth-oriented retailers. Our nominating and corporate governance committee will consider persons recommended by stockholders for inclusion as nominees for election to our board of directors. Stockholders wishing to recommend director candidates for consideration by the committee may do so by writing to our Corporate Secretary at our principal executive offices set forth in this proxy statement, and giving the recommended nominee’s name, biographical data and qualifications, accompanied by the written consent of the recommended nominee. Theevaluationprocessfordirectornomineeswhoarerecommendedbyourstockholdersisthesameas foranyothernomineeandisbasedonnumerousfactorsthatournominatingandcorporategovernance committeeconsidersappropriate,someofwhichmayincludestrengthofcharacter,maturejudgment,career specialization,relevanttechnicalskills,diversityreflectingethnicbackground,gender,andprofessional experience,andtheextenttowhichthenomineewouldfillapresentneedonourboardofdirectors.Wetypically engagesearchfirmstoengageinnationalsearchesforprospectiveboardcandidates,andweinstructthese searchfirmswithwhichweworktoidentifypotentialboardcandidatesthatwould,inadditiontobringing particularskillsandexperiencetotheboard,alsoaddtothegenderand/orethnicdiversityontheboard. 16 2018 Proxy Statement Sprouts Farmers Market