2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 412 AMN HEALTHCARE AVISTA BOSTON PROPERTIES, INC. CALIFORNIA RESOURCES CORPORATION COMPENSATIONDISCUSSIONANDANALYSIS RESULTS OF OUR 2015 PRSU AWARDS 2015TSRPRSUAwardTSRMeasurement On January 5, 2018, the Compensation Committee performed the TSR Measurement for the 2015 TSR PRSU awards. Our Relative TSR was at the 95th percentile of the Russell 2000 Index during the measurement period from January 1, 2015 through December 31, 2017. We also yielded a positive Absolute TSR during such measurementperiod. Accordingly, each named executive officer received the maximum of his or her target amount of 2015 TSR PRSUs. Specifically, Ms. Salka, Mr. Scott, Mr. Henderson and Ms. Jackson earned 31,224, 11,151, 11,151 and 8,475 PRSUs under their 2015 TSR PRSU awards, respectively. Shortly after the TSR Measurement, we issued a corresponding amount of CommonStocktoeachnamedexecutiveofficer. 2015AEBITDAPRSUAwardMeasurement On February 15, 2018, the Compensation Committee determined thatour 2016AEBITDA margin equaled 12.9%. Accordingly, each named executive officer received the maximum of his or her target amount of 2015 AEBITDA PRSUs. Specifically, Ms. Salka, Mr. Scott, Mr. Henderson and Ms. Jackson earned 44,076, 15,741, 15,741 and 11,963 PRSUs under their 2015 AEBITDA PRSU awards, respectively. ACTUAL CEO PAY The difference between actual pay and the grant date valuation of our long-term incentive vehicles can be significant. Given the substantial portion of our CEO’s compensation that is performance based, we believe it is critical to consider actual pay together with the performance of our Company’s Common Stock price. We recognize that companies and proxy advisory firms have used various methodologies to calculate actual and realizable compensation. We also are awareoftheSEC’sproposedpayversusperformancedisclosurerulereleasedinApril2015(the“ ActualPayProposed Rule ”),which,amongotherthings,contemplatesdisclosureofaCEO’sactualpay. To provide more easily comparable information on these calculations, we have set forth below a table that summarizes the following for our CEO for each of the last three years: (1) her target total direct pay as determined by the Compensation Committee, (2) her total pay as set forth in the Summary Compensation Table and (3) her “actual pay” basedontheActualPayProposedRule. (1) UndertheSEC’sActual PayProposedRule,asapplicableto ourCEO’scomponentsofcompensationfortheyearssetforthinthetable, actual pay equals the total compensation set forth in the Summary Compensation Table for the covered year adjusted as follows: (A) we deductthevalueofstockawardsandoptionsawardssetforthintheSummaryCompensationTableforthecoveredyearand(B)weaddthe fair value on the vesting date of all stock awards and option awards for which all applicable vesting conditions were satisfied during the coveredfiscalyear.Forawardsthatvestedonacertaindate,butdidnotactuallysettleuntilitwasestablishedwhethertheconditionsfor accelerationhadbeenmetortheapplicableperformancetesthadbeencertified(the“ DeterminationDate ”),thetablereflectsthevalueof such shares during the year of vesting but utilizes the fair market value on the Determination Date, which usually is in February and AMNHEALTHCARESERVICES, INC. ⎪ 2018 Proxy Statement 45 CHIEFEXECUTIVEOFFICERPAYCHART12 COMPENSATIONDISCUSSIONANDANALYSIS(“CD&A”) Chief Executive Officer: 2017 Target Compensation vs. Realized Compensation Thechartbelowillustratestherelationshipbetweenour2017performanceandourCEO’s2017compensation. $820,000 $816,923 $820,000 $744,053 $501,453 $721,899 $1,485,023 $2,745,473 $3,626,476 $5,028,348 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 Target Realized BaseSalary 2017Annual Incentive RSUs* PSUs* 2017 actualpay realizedby theCEO was139% of target * ThetargetamountshownforourCEO’sRSUsrepresentthegrantdatefairvalueoftheportionofthe2015,2016and 2017awardsthatcouldhavevestedifthe2017ROEperformanceconditionwasmet.ThetargetamountfortheCEO’s performancesharesrepresenttheaggregategrantdatefairvalueofthe2015awardsthatcouldhavevestediftheTSRand thethree-yearcumulativeEPSperformanceconditionsweremetforthe2015-2017performanceperiod.Theamount shownastheactualcompensationrealizedbyourCEOfor2017includeshisbasesalary,theactualannualcashincentive planamountpaidinearly2018for2017performance,thevalue,asofthevestingdate,oftheRSUsthatvestedinearly 2018for2017performance,andtheactualvalue,asofthevestingdate,oftheperformancesharesthatwererealizedfor the2015-2017performanceperiod.Ineachcase,thevalueofvestedRSUsandperformanceshareunits(“PSUs”) includesdividends. Avista 29 2018 PROXY STATEMENT CompensationDiscussionandAnalysis 36 CALIFORNIA RESOURCES CORPORATION The pay mix at target grant date values for our chief executive officer and other named executive officers for 2017 was primarily long-term and performance-based. Realizable Pay Analysis The chart below illustrates the degree to which our CEO’s realizable pay has been impacted by the decline in the stock price since the Spin-off, illustrating the significant alignment of CRC’s compensation program with shareholder returns. PAYMIX OF CEO 87% AtRisk 13% 14% 36.5% 36.5% AVERAGE PAY MIX OF NEOs (Other than the CEO) 78% AtRisk 22% 19% 29.5% 29.5% salary annual incentive performance-based long-term incentive t ime-vested long-term incentive at risk TargetRealizable TargetRealizable TargetRealizable 2014 2015 2016 $3.9 $6.7 $5.2 $6.0 $6.4 $2.5 TargetRealizable $6.5 $6.9 2017 TargetRealizable Pre Spin-off Converted Awards $1.1 $4.3 Annual Incentive Base Salary Long-Term Incentives millions 39% of Target 26% of Target 106% of Target 26% 23% 46% 103% 58% of Target 115% of Target StockPrice 12/31/2017 vs. GrantDate RealizablePay 126% COMPENSATIONDISCUSSIONANDANALYSIS IV. PERFORMANCE-BASEDEQUITYAWARDS;THREE-YEARTSRDRIVESACTUALEARNEDPAY Reportedvs.Realized Pay TheCommitteeiscognizantthatadirectcorrelationdoes notexistbetween thesuccessfulexecutionof ourlong-termstrategy, asdemonstrated year after year throughtheachievementofgoalsset for management,andourTSR,particularlyonarelative basis.Thisisparticularlytrue whenTSRis compared over alimitedperiod oftime.For example, for themostrecent 2015 MYLTIP program, Mr.Thomasearned $950,039, or22% ofthetarget valuefor thoseawards, andallNEOs asagroup earned $2,634,349,or22% ofthetarget valuefor thoseawards. Thefollowinggraph showsfor ourCEO (1)thereported valueoftheMYLTIP awards asoftherespective grant dates, (2)themaximumpayout opportunity thatcouldhave been earned under eachplanbased primarilyonrelative TSRperformance, and(3)theactualrealizedpay for the2013-2015 MYLTIP awards for whichthemeasurement periods have ended, aswellasinterimvaluationsasofDecember 31,2017 for the2016 and2017 MYLTIP awards: $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2013MYLTIP 2014MYLTIP 2015MYLTIP Total (2013-2015 MYLTIPs) 2016MYLTIP (1) 2017MYLTIP (1) CEO Reported vs. Realized Pay for MYLTIP Awards ReportedPay MaximumPayoutOpportunity RealizedPay 2013MYLTIP 2014MYLTIP 2015MYLTIP Total (2013-2015) MYLTIP 2016MYLTIP 2017MYLTIP ReportedPay $1,125,000 $2,826,563 $ 4,145,625 $ 8,097,188 $ 5,000,000 $ 5,150,000 TargetValue $2,045,454 $2,884,247 $ 4,318,359 $ 9,248,060 $ 5,681,818 $ 6,204,819 MaximumPayoutOpportunity $6,136,362 $8,652,742 $10,795,898 $25,585,003 $14,204,545 $12,409,639 RealizedPay $2,239,772 $ 798,257 $ 950,039 $ 3,988,068 $ 2,443,182 (1) $ 2,854,217 (1) Payoutas%ofTarget 109% 28% 22% 43% 43% (1) 46% (1) (1) AmountsandpercentagesshownareestimatedvaluesforourCEOasofDecember31,2017,basedon interimvaluationsperformedbyourvaluationexpert(whichcouldchangeupordownoverthebalanceof therespectivemeasurementperiods). 48 BOSTONPROPERTIES,INC. ❘ 2018ProxyStatement