2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 498 Corporate Governance OUR INVESTOR ENGAGEMENT PROGRAM Aspartofourcommitmenttoeffectivecorporategovernancepractices,since2010wehavehadaninvestoroutreachprogram withindependentdirectorparticipationtohelpusbetterunderstandtheviewsofourinvestorsonkeycorporategovernance topics.Inadditiontoengagementwithourlargestinstitutionalinvestors,wehaveenhancedourengagementeffortswith additionalinvestorsandstakeholderstoheartheirperspectivesandhelpidentifyfocusareasandprioritiesforthecomingyear. Theconstructiveandcandidfeedbackwereceivefromourinvestorsandotherstakeholdersduringthesemeetingsisimportant andhelpsusinformourpriorities,assessourprogress,andenhanceourcorporategovernancepracticesanddisclosureseach year. Followingour2017annualmeeting,wecontactedourlargestinstitutionalinvestorsandengagedwithinstitutional investorsrepresentingmorethan35%ofourCompany’scommonstock. Wealsometwithnumerousotherstakeholders todiscussourCompany’sprogressaswellascorporategovernanceandESGpractices,policies,anddisclosures. Board-led Engagement Program • Independentdirectorparticipationsince2010 • Followingthe2017annualmeeting,ourChairand membersofmanagementconsideredthe2017annual meetingvotingresultsandengagedwithinstitutional investorstounderstandtheirconcernsandperspectives • OurindependentChair,BetsyDuke,held in-personengagementmeetingsandcallswith institutionalinvestorsrepresentingmorethan 35%ofouroutstandingshares • Wealsoheldengagementmeetingsandcallswithother investorsandstakeholders,includingupontheir request • OurindependentChairleadsourexternalStakeholder AdvisoryCouncilwhichwasformedtoprovideour Boardandseniormanagementwithfeedbackon currentandemergingissuesfromastakeholder perspective Year-Round Engagement Process • Ourengagementoccursyearround • Activeoutreachtoinstitutionalinvestorsduringthe springandthefall/winteraswellasengagement meetingswithinvestorsandotherstakeholdersattheir requesttounderstandtheirprioritiesandconcernsin theareasofcorporategovernance,executive compensation,environmentalsustainability,social responsibility,andothermatters • Continualreviewofourgovernancepracticesand frameworkinlightofbestpractices,recent developments,andregulatoryexpectations • Provideinstitutionalinvestorswithcourtesycopiesof periodicupdates,includingnewsofsignificant corporategovernanceandBoardchanges,aspartof ourongoingengagementprocess • Coordinatedengagementeffortswithournewexternal StakeholderRelationsgroup,whichincludesInvestor RelationsandGovernmentRelations Reporting and Evaluation of Investor Feedback • Feedbackfrominvestorandotherstakeholder engagementissummarizedandsharedwith: O thefullBoard O theBoard’sGovernanceandNominatingCommittee O theBoard’sHumanResourcesCommittee O theBoard’sCorporateResponsibilityCommittee O seniormanagement • OurBoardconductsacomprehensiveannualself- evaluation,whichincludesconsiderationofinvestorand otherstakeholderfeedbackonvariousmatterssuchas ourannualsay-on-payvote,otherannualmeeting votingresults,andinvestorandstakeholdersentiment onvariousothermatters • OurBoardreviewsourgovernancepracticesannually, andmorefrequentlywhenappropriate,anduses investorandotherstakeholderfeedbacktoidentify areasforpotentialenhancementstoourpolicies, practices,anddisclosures Topics Discussed Since 2017 Annual Meeting • Boardrefreshment, includingBoardandcommittee compositionandthelevelandpaceofrefreshment • Experienceandqualificationsofnewdirectors, includinganyadditionalexperiencetheBoardhas identifiedforfuturerefreshmentefforts • Companyperformanceandprogress, including revenueandearningsgrowthandexpensereduction plans;culturechanges;teammemberengagementand turnover;andhowtheCompanyismeasuringits progress • Managementreportingandinformationflowto theBoard, includinghowtheBoardmakessurethatit isgettingtherightinformation • StatusoftheCompany’songoingreviewsof businessesandcontrols • Companytransparencyanddisclosures, including recommendationsforenhancements • Executivecompensation, includingstructureand metrics,andCommunityBankincentiveplanchanges • Regulatoryrelations, includingcompliancewithour February2,2018FederalReserveconsentorder WellsFargo&Company 2018ProxyStatement 15 Total of 02 pages in section WELLS FARGO Proxy Summary INVESTOR ENGAGEMENT AND RESPONSIVENESS Since2010wehavehadaninvestoroutreachprogramwithindependentdirectorparticipationtohelpusbetterunderstandthe viewsofourinvestorsonkeycorporategovernancetopics.Inadditiontoengagementwithourlargestin titutionalinvestors,we haveenhancedourengagementeffortswithadditionalinvestorsandstakeholderstoheartheirperspectivesandhelpidentify focusandprioritiesforthecomingyear.Theconstructiveandcandidfeedbackwereceivefromourinvestorsandother stakeholdersduringthesemeetingsisimportantandhelpsusinformourpriorities,assessourprogress,ande ha c our corporategovernancepracticesanddisclosureseachyear. Board-Led EngagementProgram YearRound EngagementProcess Reporting and Eval ation of Investor Feedback Independent director participation since 2010 • Our Chair leads our external Stakeholder Advisory Council formed in 2017 to provide our Board and seniormanagement with feedback on current and emerging issues from a stakeholder perspective • • • Our engagement occurs year round • Active outreach to institutional investors during the spring and fall/winteraswellasengagement meetingswith investors and other stakeholders upon their request • Continual review of our governance practices in light of best practices, recent developments, and regulatory expectations • Coordinated engagement efforts with our new Stakeholder Relations group,which includes Investor Relations and Government Relations • Our Chair, Elizabeth A.(“Betsy”) Duke, held in-personmeetings and callswith institutional investors representingmore than35%ofouroutstanding shares since our 2017 annual meeting Feedback is s mmarized, sharedwith and considered by: the full Board Human Resourc s Committee Corporate Responsibility Committee seniormanagement • Our Board conducts a comprehensive self-evaluation and reviews our governance practices at least annually, and uses investor and other stakeholder feedback to identify areas for potential enhancements to our policies, practices, an disclosures Governance and Nominating C mmi te CORPORATE GOVERNANCE HIGHLIGHTS Enhancements to Corporate Governance Practices and Shareholder Rights Informed by Investor Feedback and Board Self-Evaluation • Shareholdersowningatleast20%(thresholdloweredinMarch2018from25%)ofourcommonstockmay callspecialmeetings (since2011ourBy-Lawshaveprovidedourshareholderswithameaningfulrighttocallspecial meetingsofshareholders) • Adoptedproxyaccessin2015witha3%/3yearsownershipthreshold • EngagedathirdpartytofacilitatetheBoard’scomprehensive2017self-evaluation ;Since2014theBoard’sself- evaluationprocesshasincludedanassessmentofthecontributionsofindividualdirectorstotheworkoftheBoardandits committees • AmendedCorporateGovernanceGuidelinesin2018tomorefullyreflecttheroleoftheBoardandworkitis doingtoenhancegovernanceandoversightpractices ,includingaspartofourplanstosatisfytherequirementsof theconsentorderthattheCompanyenteredintowiththeBoardofGovernorsoftheFederalReserveSystemon February2,2018 • DisclosedadditionalinformationonourCompany’sgenderandracial/ethnicpaygapsintheU.S. onour websiteinFebruary2018 • Adoptedoverboardingpolicyin2017limitingthenumberofboardsonwhichourdirectorsmayserve (3total boardsforpubliccompanyCEOs;4totalpubliccompanyboardsforotherdirectors,unlesstheGNCdeterminessuch otherboardservicewouldnotimpairthedirector’sservicetoourCompany);Nodirectorservesonmorethan3total publiccompanyboardsandourCEOdoesnotserveonanotherpubliccompanyboardotherthanWellsFargo • SeparatedtherolesofChairandCEOandamendedourBy-LawstorequiretheChairtobeindependent in 2016 Board-LedEngagementProgramIndependentdirectorparticipationsince2010YearRoundEngagementProcessOurChair,BetsyDuke,heldin-personmeetingsandcalls,inmanycasesmultipletimes,withover35institutionalinvestorsowningmorethan35%ofouroutstandingsharessince2017annualmeetingReportingandEvaluationofInvestorFeedbackFeedbackissummarized,sharedwithandconsideredby:Investorfeedbackhelpsandinformourprioritiesandidentifyareasforpotentialenhancementstoourpolicies,practices,anddisclosures WellsFargo&Company 2018ProxyStatement iii