2017 Aggregate Share-Based Compensation

We are pleased to present our fifth report of aggregate share-based compensation, which covers the three-year period from 2014 to 2016 and includes the following:

• Company-wide annual grant rates, measured based on annual share usage and fair value transfer (“FVT”).
  • Annual share usage is the number of shares granted during a given year as a percentage of weighted average basic
    common shares outstanding.
  • Fair value transfer is the aggregate grant date fair value of all long-term incentive awards granted during a given
    year as a percentage of company market capitalization value at grant and as a percent of revenue.
• Overhang, measured based on potential share dilution as well as the fair value of outstanding grants.
• Frequency and prevalence of long-term incentive plan share requests.
• Allocation of long-term incentive pools to the CEO and other proxy officers (“Top 5”).
• Prevalence of employee stock purchase plans (“ESPPs”).

The key findings of our research, focused on 300 companies spread across five broad industry groups, are included in the report.