2018 Guide to Effective Proxies

2.15 Director recruitment & succession | 213 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES TWITTER, INC. UNITIL CORPORATION VERIZON COMMUNICATIONS INC. WELLS FARGO BOARD OF DIRECTORS AND CORPORATE GOVERNANCE ConsiderationsinEvaluatingDirectorNominees 7 independent directors 2 employee directors 3 women 5 35-50 2 51-60 2 61-75 AGE 6 men GENDERDIVERSITY DIRECTOR INDEPENDENCE 4 <3years 3 6-11 years 2 3-5years TENURE Board of Directors Experience ✔ FinanceandAccounting ✔ TechnologyIndustry ✔ DigitalandSocialMedia ✔ OperationofGlobalOrganizations ✔ MergersandAcquisitions ✔ RiskManagement ✔ ComputerScience ✔ Cybersecurity/CyberRisk ✔ Regulatory ✔ DataPrivacy ✔ InformationQuality ✔ MachineLearning ✔ StrategicTransformation ✔ InternationalTax ✔ IntellectualProperty ✔ ExecutiveLeadershipandTalentDevelopment ✔ CustomerPerspective ✔ CompanySeniorLeadership ✔ PublicCompanyBoardMembership ✔ PublicPolicy ✔ BrandMarketing Considerations in Evaluating Director Nominees Ourboardofdirectorsfollowanannualdirectornominationprocessthatpromotesthoughtfulandin-depthreviewofourboard andcommitteecompositionaswellaseachindividualdirectorthroughouttheyear.Eachyear,atthebeginningoftheprocess, thenominatingandcorporategovernancecommitteereviewscurrentboardandcommitteecompositionincontextwiththe company’sstrategytoconfirmthatthetraits,attributesandqualificationsarealignedwithourlong-termstrategyandcontinue topromoteeffectiveboardandcommitteeperformance.Theoutcomeoftheannualevaluationsisusedtoinformdirector searchprioritiesasapplicable.Eachyear,thenominatingandcorporategovernancecommitteereviewsincumbentdirector nominees,evaluatesanychangesincircumstancesthatmayimpacttheircandidacy,andconsidersinformationfromtheboard evaluationprocess.Uponarecommendationfromthenominatingandcorporategovernancecommittee,theboardofdirectors approvesthenominationofdirectornomineesforelectionattheannualmeetingofstockholders.Thenominatingand corporategovernancecommitteealsoidentifiespotentialnewdirectornominees,insomecases,usingasearchfirmthatispaid afeeforitsservices,togetherwithreferralsandsuggestionsfromboardmembersandstockholders.Thenominatingand corporategovernancecommitteeinterviewspotentialdirectornomineestoexploretheirqualifications,asapplicable(including, withoutlimitation,issuesofcharacter,ethics,integrity,judgment,professionalexperience,independence,areaofexpertise, strategicvision,lengthofservice,potentialconflictsofinterest,management,accountingandfinanceexpertise,cybersecurity/ TWITTER,INC./2018ProxyStatement 11 AGEGENDERDIVERSITYDIRECTORINDEPENDENCETENUREWomenmenemployeedirectorsindependentdirectors Total of 02 pages in section EXECUTIVE SESSIONS Non-employeemembers oftheBoardhavetheopportunitytomeetinexecutivesession,withoutmembers ofmanagementpresent,eitherpriortothestartorfollowingtheadjournmentofeachBoardand committeemeeting.During2017,theBoardmetinexecutivesessiononfouroccasionsandthelead Director,Mr.Elfner,presidedatthesemeetings. COMMUNICATION WITH THE BOARD ShareholdersandotherinterestedpartieswhodesiretocommunicatewiththeBoard,acommitteeofthe Board,thenon-managementorindependentDirectorsasagroup,oranindividualmember oftheBoard maydosoinwritingbysendingaletterc/oCorporateSecretary, UnitilCorporation,6LibertyLaneWest, Hampton,NewHampshire 03842-1720 orviaemailto whitney@unitil.com .TheCompanywillscreen such correspondence forsecuritypurposes.TheCorporateSecretary willdetermine whetherthecommunication relatestobusinessmattersthatarerelevanttotheCompanyand,ifso,promptlyforwardthe communicationtotheappropriateDirector(s). NOMINATIONS TheNominatingandGovernanceCommitteeisresponsibleforrecommendingtotheBoardtheslateofDirector nomineesforelectionbyshareholders.TheBoardreviewsand,asappropriate,approvesallDirectornominees priortoannualproxymaterialpreparation.AsprovidedinArticleIIIoftheCompany’sBylaws,anyvacancy occurringintheBoard,whetherduetothedeath,resignationorotherinabilitytoserveofanyDirector previouslyelectedmaybefilledbytheaffirmativevoteofamajorityoftheremainingDirectors.ADirector electedtofillavacancyshallbeelectedfortheunexpiredtermofhisorherpredecessorinoffice. TheCommitteedetermines therequiredselectioncriteriaandqualificationsofDirectornomineesbased upontheneedsoftheCompanyatthetimenomineesareconsidered.Seealsothesectionentitled CorporateGovernance—CorporateGovernancePoliciesoftheBoard—BoardDiversity below.Director candidateswillbeselected basedoninputfromDirectors,ExecutiveOfficers,andiftheCommitteedeems appropriate,athird-partysearchfirm.MinimumcriteriaforDirectornomineesaresetforthbelow,aswell asintheCorporateGovernanceGuidelines.Acandidatemustpossesstheabilitytoapplygoodbusiness judgmentandmustbeinapositiontoproperlyexercise hisorherdutiesofloyaltyandcare.Candidates withpotentialconflictsofinterestorwhodonotmeetindependence criteriawillbeidentifiedand disqualified,asappropriate.Inadditiontoindependence criteria,theCommitteewillconsidercriteria includingintegrity,judgment,provenleadershipcapabilities,businessexperience, areasofexpertise, availabilityforservice,factorsrelatingtothecompositionoftheBoard,suchassizeandstructure,andalso theCompany’spoliciesandprinciplesconcerningdiversity.TheBoardseekstoincludediversityof backgrounds,perspectives, experience andskillsamongitsmembers.TheCommitteewillconsiderthese criteriafornomineesidentifiedbytheCommittee,byotherDirectors,byshareholders,orthroughanother source.WhencurrentBoardmembers areconsideredfornominationforreelection,theCommitteealso takesintoconsiderationtheirpriorBoardcontributions,performanceandmeetingattendancerecords. 15 Total of 02 pages in section Corporate Governance • WhetherthereareanyapparentconflictsofinterestintheindividualservingonourBoard;and • WhethertheindividualwouldbeconsideredindependentunderourDirectorIndependenceStandards,whicharedescribed under DirectorIndependence . Inaddition,asdiscussedunder ComprehensiveAnnualEvaluationofBoardEffectiveness ,theGNCconsiderstheresultsofthe Board’sannualself-evaluation,includingtheindividualcontributionsofdirectorstotheworkoftheBoardanditscommittees, inconnectionwithitsdeterminationtonominateexistingdirectorsforelectionateachannualmeetingofshareholders. TheGNCdetermines,initssolediscretionafterconsideringallfactorsitconsidersappropriate,whetherapotentialnewdirector nomineemeetstheBoard’sminimumqualificationsandalsoconsidersthecompositionoftheentireBoardtakingintoaccount theparticularqualifications,skills,experience,andattributesthatourBoardbelievesareimportanttoourCompanysuchas thosedescribedunder BoardQualificationsandExperience . Ifacandidatepassesthisinitialreview,theGNCarrangesintroductorymeetingswiththecandidateandourChair,theGNC Chair,andtheCEOtodiscussthecandidate’sbackgroundanddeterminethecandidate’sinterestinservingonourBoard.If determinedappropriatebytheChairandGNCChairandifthecandidateisinterestedinservingonourBoard,theGNCarranges additionalmeetingswithmembersoftheGNCandothermembersofourBoard.ThecandidatealsomaymeetwithCompany executives,includingaspartofthecandidate’sconsiderationofpotentiallyjoiningourBoard.IfourBoardandthecandidateare bothstillinterestedinproceeding,thecandidateprovidesusadditionalinformationforuseindeterminingwhetherthecandidate satisfiestheapplicablerequirementsofourCorporateGovernanceGuidelines,CodeofEthicsandBusinessConduct,andany otherrules,regulations,orpoliciesapplicabletomembersofourBoardanditscommitteesandformakinganyrequired disclosuresinourproxystatement.Assumingasatisfactoryconclusiontotheprocessoutlinedabove,theGNCthenpresentsthe candidate’snameforapprovalbyourBoardorfornominationforapprovalbytheshareholdersatthenextshareholders’ meeting,asapplicable. Board Nomination Process Evaluation ofBoard Composition Identification of DiversePool of Candidates Assessment of and Meetingswith PotentialCandidates Recommendationof PotentialDirector forApproval 1 2 3 4 TheGNC and the Board evaluate Board composition annually and identify skills, experience, and capabilities desirable for new directors in light of the Company’s business and strategy • Identification of a diverse pool of potential director candidates using multiple sources, including a third party search firm and input from stakeholders • Evaluation and assessment of candidate interest, minimum qualifications, conflicts, independence, background and other information • • Members of theGNC and other Board membersmeetwith qualified candidates GNC recommends potential directors to the Board for approval • • Shareholders vote on nominees at our annual meeting Process for Shareholders to Recommend Individuals for Consideration by the GNC TheGNCwillconsideranindividualrecommendedbyoneofourshareholdersfornominationasanewdirector.InorderfortheGNC toconsiderashareholder-recommendednomineeforelectionasadirector,theshareholdermustsubmitthenameoftheproposed nominee,inwriting,toourCorporateSecretaryat:WellsFargo&Company,MAC#D1053-300,301SouthCollegeStreet,30 th Floor,Charlotte,NorthCarolina28202.Allsubmissionsmustincludethefollowinginformation: • Theshareholder’snameandaddressandproofofthenumberofsharesofourcommonstockheorshebeneficiallyowns; • Thenameoftheproposednomineeandthenumberofsharesofourcommonstockheorshebeneficiallyowns; • Sufficientinformationaboutthenominee’sexperienceandqualificationsfortheGNCtomakeadeterminationwhetherthe individualwouldmeettheminimumqualificationsfordirectors;and • Suchindividual’swrittenconsenttoserveasadirectorofourCompany,ifelected. OurCorporateSecretarywillpresentallshareholder-recommendednomineestotheGNCforitsconsideration.TheGNChasthe righttorequest,andtheshareholderwillberequiredtoprovide,anyadditionalinformationwithrespecttotheshareholder- recommendednomineeastheGNCmaydeemappropriateordesirabletoevaluatetheproposednomineeinaccordancewith thenominationprocessdescribedabove. EvaluationofBoardCompositionTheGNCandtheBoardevaluateBoardcompositionannuallyandidentifyskills,experience,andcapabilitiesdesirablefornewdirectorsIdentificationofDiversePoolofCandidatesIdentificationofadiversepoolofpotentialdirectorcandidatesusingmultiplesources,includingathirdpartysearchfirmandinputfromstakeholdersAssessmentofandMeetingswithPotentialCandidatesEvaluationandassessmentofcandidateinterest,minimumqualifications,conflicts,independence,backgroundandotherinformation;MembersoftheGNCandotherBoardmembersmeetwithqualifiedcandidatesRecommendationforApprovalGNCrecommendspotentialdirectorstotheBoardforapproval 34 WellsFargo&Company 2018ProxyStatement Total of 03 pages in section Item 1:ElectionofDirectors Electionprocess Verizon’sDirectorsareelectedannuallyforatermofoneyear.Webelieveannualelectionsareconsistentwithgood corporategovernancebecausetheyfosterdirectoraccountabilityandincreaseshareholderconfidence.Verizon’sbylaws requireDirectorstobeelectedbyamajorityofthevotescastinanuncontestedelection. Directornominations TheCorporateGovernanceandPolicyCommitteeconsidersandrecommendscandidatesforourBoard.TheCommittee reviewsallnominationssubmittedtoVerizon,includingindividualsrecommendedbyshareholders,Directorsormembersof management.TheCommitteealsoretainsexecutivesearchfirmsfromtimetotimetohelpidentifyandevaluatepotential candidates. AnyshareholderwhowishestorecommendaDirectorcandidatetotheCommitteeforitsconsiderationshouldwritetothe AssistantCorporateSecretaryattheaddressgivenunder“ContactingVerizon.”ArecommendationforaDirectorcandidate shouldincludethecandidate’sname,biographicaldataandadescriptionofthecandidate’squalificationsinlightofthe requirementsdescribedbelow.IfwemakeanymaterialchangestotheCommittee’sprocedureforconsideringand nominatingcandidates,wewillfileareportwiththeSECandposttheinformationontheCorporateGovernancesectionof ourwebsiteat www.verizon.com/about/investors . TheCommitteespecificallyreviewsthequalificationsofeachcandidateforelectionorre-election.ForincumbentDirectors, thisreviewincludestheDirector’sunderstandingofVerizon’sbusinessesandtheenvironmentwithinwhichVerizon operates,attendanceandparticipationatmeetings,andindependence.AftertheCommitteeevaluatesallcandidatesfor Director,itpresentsitsrecommendationtotheBoard.TheCommitteealsodiscusseswiththeBoardanycandidateswho wereconsideredbytheCommitteebutnotrecommendedforelectionorre-election. Beforetheyarenominated,eachcandidateforelectionandeachincumbentDirectorstandingforre-electionmustconsent tostandforelectionorre-electionandprovidecertainrepresentationsrequiredunderVerizon’sbylaws.Eachcandidate whoisstandingforelectionmustalsosubmitanirrevocableresignation,whichwillonlybecomeeffectiveif(i)ourBoardor anyCommitteedeterminesthatanyoftherequiredrepresentationswereuntrueinanyrespector(ii)thecandidatedoes notreceiveamajorityofthevotescastattheannualmeetingofshareholdersandtheindependentmembersofourBoard decidetoaccepttheresignation.AnydecisionaboutaresignationfollowinganincumbentDirector’sfailuretoobtaina majorityofthevotescastwillbedisclosedwithin90daysaftertheelectionresultsarecertified. ShareholderswishingtonominateaDirectorshouldfollowtheproceduressetforthinVerizon’sbylawsanddescribedon page75. Directorcriteria,qualificationsandexperience Tobeeligibleforconsideration,anyproposedcandidatemust: Beethical Haveprovenjudgmentandcompetence Haveprofessionalskillsandexperienceindealingwith alarge,multi-facetedorganizationorindealingwith complexproblemsthatcomplementthebackground andexperiencealreadyrepresentedonourBoardand thatmeetVerizon’sneeds Havedemonstratedtheabilitytoactindependentlyand bewillingtorepresenttheinterestsofallshareholders andnotjustthoseofaparticularphilosophyor constituency Bewillingandabletodevotesufficienttimetofulfill responsibilitiestoVerizonandourshareholders 4 | Verizon 2018ProxyStatement