04. Board of Directors: Selection, Compensation, and Removal - Quick Guide Series

8/6/2019 04. Board of Directors: Selection, Compensation, and Removal - Quick Guide Series

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Mivnm F. Jirklbr igm Crnig ]iyig

Kdrpdritb Odvbrgigkb Sbsbirke Ngntnitnvb[tigfdrm Orimuitb [keddj df Cusngbss

CDISM DF MNSBK]DS[[BJBK]NDG, KDAPBG[I]NDG, IGM SBADVIJ


2/17

AISLB] FDS MNSBK]DS[

Iadgo pucjnk kdrpdritndgs ng teb R.[.8

]dtij guacbr df mnrbktdrs8 =0,000+

Ivbriob tbgurb dg cdirm8 ? ybirs

Ivbriob aigmitdry rbtnrbabgt iob8 ?3

Mnrbktdrs tbgm td rbtnrb vdjugtirnjy.

Dgjy 3 pbrkbgt df mnrbktdrs wed stbp mdwg irb mnsanssbm dr gdt rbbjbktbm.


3/17


Mnrbktdrs eivb i anx df aigiobrnij, fugktndgij, igm spbknijnzbm ciklordugms.

[pbgkbr [tuirt (309;)

CIKLOSDRGM[ DF GB_J^ BJBK]BM NGMBPBGMBG] MNSBK]DS[


4/17


]eb adst napdrtigt quijnfnkitndg ns rbjbvigt ngmustry bxpbrnbgkb.

Mnrbktdrs ijsd prbfbr cdirm kigmnmitbs wnte sbgndr-jbvbj bxbkutnvbbxpbrnbgkb.

Kenbf bxbkutnvb dffnkbrs (iktnvb dr fdrabr)

Kenbf fngigknij dffnkbrs

Kenbf dpbritngo dffnkbrs

Dtebr ciklordugm prbfbrbgkbs8

[pbgkbr [tuirt (309;)< GIKM (300>)

B]EGNK ANGDSN]NB[ 26% ]BKEGDJDO^ 33%_DABG 2=% AISLB]NGO 33%

FNGIGKNIJ =?% SBORJI]DS^ 30%

NG]BSGI]NDGIJ ==% MNON]IJ DS [DKNIJ ABMNI 93%

SN[L 32%


5/17

MNSBK]DS[8 IK]NVB KBD[

Irb mnrbktdrs wnte KBD-jbvbj bxpbrnbgkb cbttbr mnrbktdrs4

(+) Aigiobrnij, ngmustry, igm fugktndgij lgdwjbmob.

(+) Kdgtrncutb td imvnsdry fugktndgs8 stritboy, sukkbssndg, seirbedjmbr/stilbedjmbrrbjitndgs.

(+) Kdgtrncutb td dvbrsnoet8 rnsl aigiobabgt, pbrfdraigkb abisurbabgt.

(-) Iktnvb KBDs irb cusy< ugivinjicjb dg sedrt gdtnkb< anss dr irb jitb fdr abbtngos.

(-) Kig cb cdssy, pddr kdjjicdritdrs, pddr jnstbgbrs.

Ng rbkbgt ybirs, tebrb eis cbbg i mbkrbisb ng iktnvb KBDs sbrvngo dgdutsnmb cdirms is kdapignbs jnant tebnr mnrbktdrsenps.

[tdkl airlbt rbikts fivdricjy td teb ippdngtabgt df ig iktnvb-KBD mnrbktdr.

Edwbvbr, tebrb ns gd bvnmbgkb teit teby kdgtrncutb td futurb pbrfdraigkb.

Fnke (3002)< Fiejbgcrike, Jdw, igm [tujz (3090)


6/17

MNSBK]DS[8 NG]BSGI]NDGIJ BUPBSNBGKB

Ngtbrgitndgij bxpbrnbgkb ns napdrtigt is kdapignbs bgtbr gbw airlbts.

Mnrbktdrs wnte tens lgdwjbmob ebjp teb cdirm ugmbrstigm stritboy,dpbritndgs, fngigkb, rnsl, igm rboujitndgs.

Mnrbktdrs aiy eivb kdgtikts wnte odvbrgabgt dffnknijs, suppjnbrs,aigufikturbrs, mnstrncutdrs, igm kustdabrs.

Sbprbsbgtitndg df mnrbktdrs wnte ngtbrgitndgij bxpbrnbgkb ns jdw cut eiscbbg ngkrbisngo.

Fdrbnog ngmbpbgmbgt mnrbktdrs irb issdknitbm wnte cbttbr krdss-cdrmbr ikqunsntndgs

webg teb tirobt kdapigy ns frda teb mnrbktdrs edab kdugtry.

Aisujns, _igo, igm Unb (3093)


7/17

MNSBK]DS[8 [PBKNIJ BUPBS]N[B

Kdapignbs gbbm mnrbktdrs td imvnsb dg spbknijnzbm irbis

Sbsbirke, mbvbjdpabgt, igm prdmuktndg

]urgirdugms igm rbstrukturngo

Sboujitndgs igm jiw

Abrobrs, ikqunsntndgs igm mnvbstnturbs

Ng sdab kisbs, cdirm imvnsbrs dr cdirm dcsbrvbrs irb ngvntbm td ittbgmcdirm abbtngos fdr tens purpdsb.

_ebg mdbs teb kdapigy gbbm pbraigbgt rbprbsbgtitndg wnte spbknfnklgdwjbmob4 _ebg sedujm tens cb mdgb dg i tbapdriry dr imvnsdry cisns4

Ngmustry bxpbrtnsb it teb cdirm jbvbj ns pdsntnvbjy issdknitbm wnte nggdvitndg igm

fnra vijub, ng ngmustrnbs webrb nggdvitndg ns napdrtigt.

Fijbyb, Edntise, igm Edntise (309;)


8/17

MNSBK]DS[8 PSDFB[[NDGIJ MNSBK]DS[

Prdfbssndgij mnrbktdrs sbrvb dg cdirms is tebnr prnairy kirbbr.

(+) Kdgsnmbricjb bxpbrnbgkb< eivb wntgbssbm aujtnpjb sukkbssbs igm finjurbs.

(+) Adrb tnab td mbmnkitb td cdirmrdda rbspdgsncnjntnbs.

(+) Bxtbgsnvb pbrsdgij igm prdfbssndgij gbtwdrls.

(-) Anoet cb tdd cusy nf teby sbrvb dg aigy cdirms kdgkurrbgtjy.

(-) Anoet gdt cb bffbktnvb adgntdrs nf teby vnbw mnrbktdrsenp is i fdra df iktnvbrbtnrbabgt.

Mnrbktdrs wnte aujtnpjb mnrbktdrsenps mnstrncutbtebnr bffdrt ugbquijjy, mbmnkitngo adrb tnab td

prbstnondus kdrpdritndgs.

Aisujns igm Adccs (309=)


9/17

MNSBK]DS SBKSRN]ABG] PSDKB[[

Mnrbktdr rbkruntabgt ns i rbspdgsncnjnty df teb gdangitngo/ odvbrgigkbkdaanttbb.

9. Nmbgtnfy gbbms df kdapigy.

3. Nmbgtnfy oips ng mnrbktdr kipicnjntnbs.

;. Nmbgtnfy pdtbgtnij kigmnmitbs, bntebr terduoe mnrbktdr gbtwdrls dr wnteprdfbssndgij rbkruntbr.

=. Sigl kigmnmitbs ng drmbr df prbfbrbgkb.

2. Abbt wnte bike kigmnmitb sukkbssnvbjy igm dffbr hdc.

6. Put cbfdrb seirbedjmbrs fdr i vdtb.

Mnrbktdr rbkruntabgt mnffbrs frda KBD rbkruntabgt ng teit kigmnmitbs irbriglbm ng drmbr cbfdrb ngtbrvnbws tilb pjikb.


10/17

MNSBK]DS KDAPBG[I]NDG

(ABMNIG)JISOB

([&P 200)

ABMNRA

([&P =00)

[AIJJ

([&P 600)

IVBSIOB

([&P 9200)IGGRIJ SB]INGBS $330,000 $960,000 $99>,350 $965,3?0

% KI[E ;5% ;5% ;>% ;5%

% BYRN]^ 63% 6;% 6;% 6;%

Kdapbgsitndg aust cb suffnknbgt td ittrikt, rbting, igm adtnvitb quijnfnbmmnrbktdrs.

Kdapbgsitndg kdvbrs tnab mnrbktjy spbgt dg cdirm aittbrs, kdst td lbbpngoskebmujb fjbxncjb td immrbss urobgt nssubs, igm fngigknij igm rbputitndgij

rnsl frda kdrpdritb skigmij dr jiwsunt.

Kdapbgsitndg jbvbj virnbs cy kdapigy snzb< anx mdbs gdt.

Bqunjir (309;)


11/17

MNSBK]DS KDAPBG[I]NDG

Kdapignbs ijsd piy fbbs fdr sbrvngo dg kdaanttbbs.

Fbbs irb ngtbgmbm td kdapbgsitb fdr tnab, bxpbrtnsb, igm pdtbgtnij rnsl dfcbngo giabm ng seirbedjmbr jntnoitndg.

(ABMNIG)

JISOB

([&P 200)

ABMNRA

([&P =00)

[AIJJ

([&P 600)

IVBSIOB

([&P 9200)

IRMN] KDAAN]]BB

- SB]INGBS $90,000 $90,000 $>,000 $90,000

- ABB]NGO FBB $9,200 $9,200 $9,200 $9,200

- SB]INGBS (KEINS) $92,000 $92,000 $99,000 $92,000

KDAP KDAAN]]BB

- SB]INGBS $90,000 $?,200 $6,320 $?,200

- ABB]NGO FBB $9,200 $9,200 $9,=32 $9,200- SB]INGBS (KEINS) $92,000 $90,000 $?,200 $90,000

GDA/ODV KDAAN]]BB

- SB]INGBS $?,200 $6,000 $2,000 $6,000

- ABB]NGO FBB $9,200 $9,200 $9,=32 $9,200

- SB]INGBS (KEINS) $90,000 $?,200 $2,000 $90,000

Bqunjir (309;)


12/17

MNSBK]DS D_GBS[ENP ORNMBJNGB[

Aigy kdapignbs rbqunrb mnrbktdrs td aingting angnaua dwgbrsenp jbvbjsdf kdapigy bqunty.

Bqunty dwgbrsenp cy mnrbktdrs ns ngtbgmbm td naprdvb teb ijnogabgtcbtwbbg tebnr ngtbrbsts igm tedsb df seirbedjmbrs.

Bqunty dwgbrsenp ounmbjngbs aiy cb stitbm is i spbknfnbm guacbr dfseirbs, mdjjir vijub, dr i aujtnpjb df teb igguij kise rbtingbr.

Fdrtugb 900 Kdapignbs

?5% eivb bqunty dwgbrsenp ounmbjngbs. Df tebsb8 6=% stitbm is i aujtnpjb df igguij rbtingbr.

30% is fnxbm guacbr df seirbs.

99% is fnxbm mdjjir vijub df seirbs.

Dg ivbriob, kdapignbs onvb mnrbktdrs fnvb ybirs td abbt ounmbjngbs.

Bqunjir (3093)


13/17

MNSBK]DS D_GBS[ENP ORNMBJNGB[

]ebrb irb pdtbgtnij mriwcikls td bqunty dwgbrsenp ounmbjngbs.

Mnrbktdrs irb gdt aigiobrs.

Mnrbktdrs anoet cbkdab rnsl ivbrsb (b.o., finj td ipprdvb jdgo-tbra prdhbkts nfgbir-tbra bxpbgmnturbs rbmukb stdkl prnkb).

Mnrbktdrs aiy ailb mbknsndgs frda stigmpdngt df pbrsdgij cbgbfnt ritebr teigprdfbssndgij humoabgt.

Dwgbrsenp ounmbjngbs irb gdt kijncritbm td pbrsdgij wbijte, igm sd aiy eivbviryngo napikt dg mnrbktdrs.

]eb rbsbirke bvnmbgkb ns anxbm dg webtebr bqunty dwgbrsenp cygdgbxbkutnvb mnrbktdrs naprdvbs fnra pbrfdraigkb.


14/17

CDISM BVIJRI]NDG[

]eb bgtnrb cdirm, kdaanttbbs, igm/dr ngmnvnmuij mnrbktdrs irb bvijuitbm fdrbffbktnvbgbss ng kirryngo dut rbspdgsncnjntnbs.

Gbw ^drl [tdkl Bxkeigob rujbs rbqunrb cdirm bvijuitndgs< bvijuitndgs dfngmnvnmuij mnrbktdrs irb gdt rbqunrbm.

Bvijuitndgs aiy rbvnbw teb kdapdsntndg igm slnjjs df teb cdirm, abbtngostrukturb igm prdkbss, bffbktnvbgbss ng sbttngo stritboy, bffbktnvbgbss ngadgntdrngo pbrfdraigkb, igm mnrbktdr rbjitndgs wnte bike dtebr,aigiobabgt, igm seirbedjmbrs.

Dgjy ;5% df kdapignbs bvijuitb teb pbrfdraigkb df ngmnvnmuij mnrbktdrs.

Jirob kdapignbs irb adrb jnlbjy td md sd (=?%) teig saijj kdapignbs (;0%).

GIKM (309=)


15/17

SBADVIJ DF MNSBK]DS[

I kdapigy aiy rbpjikb i mnrbktdr fdr i virnbty df rbisdgs.

(+) Sbqunrbs gbw slnjjs igm kipicnjntnbs dg teb cdirm.

(+) Kdapigy wigts td rbfrbse teb cdirm.

(+) Mnrbktdr wnsebs td rbtnrb.

(+) Mnrbktdr rbikebs aigmitdry rbtnrbabgt iob.

() Mnrbktdr ns gbojnobgt dr pbrfdrango cbjdw bxpbktitndgs.

() Mnrbktdr eis nrrbsdjvicjb mnsiorbbabgt wnte dtebr mnrbktdrs dr aigiobabgt.

[eirbedjmbrs dftbg md gdt lgdw teb rbij rbisdg i mnrbktdr jbivbs teb cdirm.


16/17

SBADVIJ DF MNSBK]DS[

]eb prdkbss fdr rbadvngo i mnrbktdr ns kdapjnkitbm.

]eb cdirm mdbs gdt eivb teb pdwbr td rbadvb i fbjjdw cdirm abacbr.Nt aust bntebr8

_int td rbpjikb teb mnrbktdr it teb igguij abbtngo.

Bgkduriob ena/ebr td rbsnog.

[eirbedjmbrs, tdd, eivb jnantbm rnoets td rbadvb mnrbktdrs.

Piss spbknij rbsdjutndg, nf teby kig mbadgstritb kiusb.

Vdtb fdr rbadvij, nf bjbktndg ns cy aihdrnty vdtngo.

Mdbs tens rbmukb ikkdugticnjnty4

Dgjy 906 mnrbktdrs wbrb mnsanssbm ng 300>, ikrdss ijj pucjnk kdapignbs ng teb R.[.

Iumnt Igijytnks (300>)


17/17

CNCJNDOSIPE^

[pbgkbr [tuirt. [pbgkbr [tuirt R.[. Cdirm Ngmbx. 309;.

GIKM. Pucjnk Kdapigy Odvbrgigkb [urvby. 300>.

Bjnbzbr A. Fnke. Irb [dab Dutsnmb Mnrbktdrs Cbttbr teig Dtebrs4 Bvnmbgkb frda Mnrbktdr Ippdngtabgts cy Fdrtugb 9000 Fnras.

Hdurgij df Cusngbss. 3002.

Smnobr Fiejbgcrike, Igonb Jdw, igm Sbg A. [tujz. _ey Md Fnras Ippdngt KBDs is Dutsnmb Mnrbktdrs4 3090 Hdurgij df Fngigknij

Bkdgdanks. 3090.

Sdgijm _. Aisujns, Kdgo _igo, igm Fbn Unb. Ojdcijnzngo teb Cdirmrdda8 ]eb Bffbkts df Fdrbnog Mnrbktdrs dg Kdrpdritb Odvbrgigkb

igm Fnra Pbrfdraigkb. Hdurgij df Ikkdugtngo igm Bkdgdanks. 3093.

Djucugan Fijbyb, Sign Edntise, igm Rmn Edntise. Ngmustry Bxpbrtnsb dg Kdrpdritb Cdirms. Gdrtebistbrg Rgnvbrsnty MIadrb-AkLna

[keddj df Cusngbss _drlngo Pipbr. 309;.

Sdgijm _. Aisujns igm [eiwg Adccs. Ngmbpbgmbgt Mnrbktdr Ngkbgtnvbs8 _ebrb Md ]ijbgtbm Mnrbktdrs [pbgm ]ebnr Jnantbm ]nab igm

Bgbroy4 Hdurgij df Fngigknij Bkdgdanks. 309=.

Bqunjir. [&P 9200 Cdirm Prdfnjb Kdaanttbb Fbbs8 Pirts 9 igm 3. 309;.

Bqunjir. Mnrbktdr [tdkl Dwgbrsenp Ounmbjngbs Sbpdrt. 3093.

GIKM. Pucjnk Kdapigy Odvbrgigkb [urvby. 309=.

Iumnt Igijytnks. Mnrbktdr Mbpirturbs8 I Fnvb bir Dvbrvnbw. 300>.

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04. Board of Directors: Selection, Compensation, and Removal - Quick Guide Series