<SEC-DOCUMENT>0001193125-22-169323.txt : 20220607
<SEC-HEADER>0001193125-22-169323.hdr.sgml : 20220607
<ACCEPTANCE-DATETIME>20220607163753
ACCESSION NUMBER:		0001193125-22-169323
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20220607
DATE AS OF CHANGE:		20220607

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BIOGEN INC.
		CENTRAL INDEX KEY:			0000875045
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				330112644
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19311
		FILM NUMBER:		221001622

	BUSINESS ADDRESS:	
		STREET 1:		225 BINNEY STREET
		CITY:			CAMBRIDGE
		STATE:			MA
		ZIP:			02142
		BUSINESS PHONE:		7814642000

	MAIL ADDRESS:	
		STREET 1:		225 BINNEY STREET
		CITY:			CAMBRIDGE
		STATE:			MA
		ZIP:			02142

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BIOGEN IDEC INC.
		DATE OF NAME CHANGE:	20070427

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BIOGEN IDEC INC
		DATE OF NAME CHANGE:	20031112

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	IDEC PHARMACEUTICALS CORP / DE
		DATE OF NAME CHANGE:	19970530
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>d331160ddefa14a.htm
<DESCRIPTION>DEFA14A
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<TITLE>DEFA14A</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>WASHINGTON, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SCHEDULE 14A
</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PROXY STATEMENT PURSUANT TO SECTION&nbsp;14(A) OF THE </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES EXCHANGE ACT OF 1934 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Filed by the
Registrant&nbsp;&nbsp;&#9746; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Filed by a Party other than the Registrant&nbsp;&nbsp;&#9744; </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Preliminary Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B></B>&#9744;<B></B><B></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Confidential, for Use of the Commission Only (as permitted by Rule
<FONT STYLE="white-space:nowrap">14a-6(e)(2))</FONT> </B></P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Definitive Proxy Statement </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9746;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Definitive Additional Materials </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Soliciting Material under <FONT STYLE="white-space:nowrap">&#167;240.14a-12</FONT> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>BIOGEN INC. </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Name of
Registrant as Specified In Its Charter) </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Payment of Filing Fee (Check all boxes that apply): </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">No fee required. </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Fee paid previously with preliminary materials </P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#9744;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules
<FONT STYLE="white-space:nowrap">14a-6(i)(1)</FONT> and <FONT STYLE="white-space:nowrap">0-11.</FONT> </P></TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On June&nbsp;7, 2022, Biogen made available to stockholders the following communication in connection with
its upcoming annual meeting of stockholders to be held on June&nbsp;15, 2022. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Stockholder, </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This letter responds to a report issued by the proxy advisory firm Institutional Shareholder Services (ISS) in May 2022, regarding the annual meeting of
stockholders of Biogen scheduled for June&nbsp;15, 2022. In its report, ISS recommends that Biogen stockholders vote against the <FONT STYLE="white-space:nowrap">non-binding</FONT> advisory vote on executive compensation (Proposal 3 in Biogen&#146;s
Definitive Proxy Statement filed on April&nbsp;29, 2022, 2022 Proxy Statement). We disagree with ISS&#146; recommendation for the reasons outlined below and recommend you vote FOR the <FONT STYLE="white-space:nowrap">non-binding</FONT> advisory vote
on executive compensation. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Negative Vote Recommendation by ISS </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In making its negative say on pay recommendation, ISS noted positively our shareholder engagement and revised long-term incentive program. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Although ISS concluded that Biogen&#146;s compensation for pay and performance were reasonably aligned, ISS recommended that stockholders vote against say on
pay because it determined that the Compensation and Management Development Committee of the Board of Directors (C&amp;MD Committee) &#147;<I>&#133;</I><I>did not disclose a robust commitment not to repeat an action that investors found
concerning.</I>&#148; The action in question was the 2020 payment by Biogen of cash severance outside of normal severance arrangements by Biogen to a former executive officer. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Biogen&#146;s Response </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Independent members of our Board
of Directors and members of our management team, led by our C&amp;MD chair met with certain stockholders to understand their concerns with our pay practices and specifically discussed their concerns with the Board&#146;s use of discretion with
respect to the severance payment. Based on these discussions, the C&amp;MD Committee acknowledges that some stockholders expressed concern with this payment and notes that it was <FONT STYLE="white-space:nowrap">one-time</FONT> in nature based on
the specific facts and circumstances of the transitioning executive and was not meant to constitute a change to our existing severance practices. The C&amp;MD Committee believes that the use of discretion in executive compensation decisions,
including severance arrangements, is an important part of the duties of the Board and the C&amp;MD Committee and that it would be inappropriate to make an unconditional commitment that would limit its ability to effectively and appropriately manage
Biogen&#146;s business in the best interests of Biogen stockholders in the event of unanticipated and extraordinary circumstances. These robust commitments are uncommon among our peer filings, and in keeping with prevalent market practice the
C&amp;MD Committee believes that it would be inappropriate to include such language. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>The Board and the C&amp;MD Committee has shown its commitment to
aligning compensation with the interests of the stockholders by using its discretion to decrease compensation when required to ensure that compensation reflects the company&#146;s pay for performance philosophy. This has been evidenced in each of
the past two years where the C&amp;MD Committee reduced annual bonus compensation for our named executive officers in 2021 and all annual bonus plan participants (including our named executive officers) in 2022 (see page 46 of Biogen&#146;s
Definitive Proxy Statement filed on April&nbsp;23, 2021 and page 33 of the 2022 Proxy Statement). </B></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">A recap of the steps we took to review our compensation and severance arrangements in response to
stockholder feedback to ensure alignment with stockholder interests was disclosed on page 33 of the 2022 Proxy Statement and is provided below. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; margin-right:4%; font-size:9pt; font-family:Times New Roman">Prior to the 2021 Annual Meeting and additionally in response to the lower level of support for our 2021 <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">say-on-pay</FONT></FONT> vote, with approximately 51% of the votes cast for approval, and pursuant to our ongoing commitment to engage with our stockholders, independent members of our
Board and members of our management team, led by our C&amp;MD Committee chair Brian Posner, performed stockholder outreach to better understand the concerns and perspectives of our stockholders, including those who did not support our <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">say-on-pay</FONT></FONT> vote in 2021. As part of this outreach, our C&amp;MD Committee chair, independent members of our Board and members of management had meetings with shareholders
holding approximately 42% of our outstanding shares, to listen to and receive feedback on our executive compensation programs and other matters. Meetings with stockholders were attended by our C&amp;MD Committee chair, members of our Board and
management team, together with representatives from our legal and investor relations departments. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="5"> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#ffffff"><B><FONT
 COLOR="#ffffff">Extensive Shareholder Outreach and Engagement</FONT></B></FONT></P> <P STYLE="font-size:6pt; margin-top:0pt; margin-bottom:1pt" align="left">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:16pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1.00pt solid #0075c9"> <P STYLE="font-size:4pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><FONT
 COLOR="#0075c9"><B>42%</B></FONT></P> <P STYLE="font-size:4pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#0075c9">of shares outstanding</FONT></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:9pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#0075c9">engaged</FONT></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1.00pt solid #0075c9">&nbsp;&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1.00pt solid #0075c9"> <P STYLE="font-size:4pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><FONT
 COLOR="#0075c9">including</FONT></P> <P STYLE="font-size:4pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:16pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#0075c9"><B>7</B></FONT></P> <P STYLE="font-size:4pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#0075c9">of our top 10 stockholders</FONT></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-BOTTOM:1.00pt solid #0075c9">&nbsp;&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1.00pt solid #0075c9"> <P STYLE="font-size:4pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:14pt; font-family:Times New Roman" ALIGN="center"><FONT
 COLOR="#0075c9"><B>32%</B></FONT></P> <P STYLE="font-size:4pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#0075c9">of shares outstanding</FONT></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#0075c9">engaged&nbsp;with&nbsp;the&nbsp;Chair&nbsp;of&nbsp;our</FONT></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><FONT COLOR="#0075c9">C&amp;MD Committee</FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:4pt; margin-bottom:0pt; margin-left:4%; margin-right:4%; font-size:9pt; font-family:Times New Roman">Stockholders were generally supportive of our executive compensation programs and their focus
on alignment of pay and performance, but did voice their perspectives on incentive plan design. Some stockholders did express concern about a cash severance payment made outside of our normal severance arrangements in 2020 to a former executive
officer. To respond to this concern and to help ensure that our program continues to be aligned with stockholder interests and best practices, we worked closely with our independent compensation consultant to conduct a competitive review of our
severance arrangements. We validated that our normal severance practices are competitive with organizations with whom we compete for executive talent. We discussed with our stockholders that the 2020 severance payment was <FONT
STYLE="white-space:nowrap">one-time</FONT> in nature based on the specific facts and circumstances of the transitioning executive and we do not intend to make a change to our existing practices. In addition, and based in part on the feedback we
received and our market analysis, our C&amp;MD Committee took the following actions: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="bottom" COLSPAN="3" ALIGN="center" BGCOLOR="#0075c9"><FONT COLOR="#FFFFFF">Stockholder Feedback and Responsiveness</FONT></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD HEIGHT="1" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #ffffff" BGCOLOR="#0075c9">&nbsp;</TD></TR>

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<TD VALIGN="bottom" ALIGN="center" BGCOLOR="#0075c9"><FONT COLOR="#FFFFFF">What We Heard from Stockholders</FONT></TD>
<TD VALIGN="bottom" BGCOLOR="#0075c9" STYLE=" BORDER-LEFT:1px solid #ffffff; BORDER-BOTTOM:1px solid #ffffff">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #ffffff" BGCOLOR="#0075c9"><FONT COLOR="#FFFFFF">Action We Took in Response</FONT></TD></TR>
<TR STYLE="font-size:1pt" BGCOLOR="#e5f1f9">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #ffffff">&nbsp;</TD></TR>
<TR BGCOLOR="#e5f1f9" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:9pt">
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; text-indent:-1.33em; font-size:9pt; font-family:Times New Roman">&#149;&#8194;&#8201;&#8201;Preference for longer performance periods
in long-term incentive plans</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #ffffff">&nbsp;</TD>
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman">Starting with 2022 long-term incentives:</P> <P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:2.00em; text-indent:-2.00em; font-size:9pt; font-family:Times New Roman">&#10003;&#8195;&#8201;Removed <FONT STYLE="white-space:nowrap">one-year</FONT> performance periods from long-term
incentive plans</P> <P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:2.00em; text-indent:-2.00em; font-size:9pt; font-family:Times New Roman">&#10003;&#8195;&#8201;Implemented <FONT STYLE="white-space:nowrap">3-year</FONT> performance periods for all
performance stock units (PSUs)</P></TD></TR>
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<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #ffffff">&nbsp;</TD></TR>
<TR BGCOLOR="#b2d5ee" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:9pt">
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; text-indent:-1.33em; font-size:9pt; font-family:Times New Roman">&#149;&#8194;&#8201;&#8201;Increased alignment of executive
compensation with long-term stockholder experience</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #ffffff">&nbsp;</TD>
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman">Starting with 2022 long-term incentives:</P> <P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:2.00em; text-indent:-2.00em; font-size:9pt; font-family:Times New Roman">&#10003;&#8195;&#8201;Relative Total Shareholder Return (rTSR) introduced as a metric in the long-term incentive
plan</P></TD></TR>
<TR STYLE="font-size:1pt" BGCOLOR="#e5f1f9">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #ffffff">&nbsp;</TD></TR>
<TR BGCOLOR="#e5f1f9" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:9pt">
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; text-indent:-1.33em; font-size:9pt; font-family:Times New Roman">&#149;&#8194;&#8201;&#8201;Stronger pay for performance
alignment</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #ffffff">&nbsp;</TD>
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:9pt; font-family:Times New Roman">For 2021 Annual Bonus Plan Funding and Payouts:</P>
<P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:2.00em; text-indent:-2.00em; font-size:9pt; font-family:Times New Roman">&#10003;&#8195;&#8201;Applied negative discretion
to reduce overall Annual Bonus Plan funding for all participants and further reduced payouts for the Executive Committee, which includes all our NEOs (see 2021 Annual Bonus Plan Company Performance Targets and Results Table)</P></TD></TR>
<TR STYLE="font-size:1pt" BGCOLOR="#b2d5ee">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #ffffff">&nbsp;</TD></TR>
<TR BGCOLOR="#b2d5ee" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:9pt">
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; text-indent:-1.33em; font-size:9pt; font-family:Times New Roman">&#149;&#8194;&#8201;&#8201;Reinforce focus on Environmental, Social,
Governance (ESG) metrics</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #ffffff">&nbsp;</TD>
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; text-indent:-2.00em; font-size:9pt; font-family:Times New Roman">&#10003;&#8195;&#8201;Continued the inclusion of ESG metrics in Annual
Bonus Plan to drive initiatives surrounding the Company&#146;s environmental sustainability, DE&amp;I and broader employee engagement goals</P></TD></TR>
<TR STYLE="font-size:1pt" BGCOLOR="#e5f1f9">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2" STYLE="BORDER-LEFT:1px solid #ffffff">&nbsp;</TD></TR>
<TR BGCOLOR="#e5f1f9" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:9pt">
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:2.00em; text-indent:-1.33em; font-size:9pt; font-family:Times New Roman">&#149;&#8194;&#8201;&#8201;Simplify incentive program
structures</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #ffffff">&nbsp;</TD>
<TD VALIGN="top" STYLE="padding-bottom:4pt ;"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:2.00em; text-indent:-2.00em; font-size:9pt; font-family:Times New Roman">&#10003;&#8195;&#8201;Revised the 2022 Annual Bonus Plan scorecard to
include fewer metrics and place heavier weightings on quantitative financial metrics</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; margin-left:2.00em; text-indent:-2.00em; font-size:9pt; font-family:Times New Roman">&#10003;&#8195;&#8201;Streamlined long-term incentive plan (see below)</P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Board of Directors values stockholder feedback and will continue to proactively engage with our stockholders on these and
other issues as well as periodically reviewing our compensation and severance practices to ensure they are aligned with stockholder interest and are competitive with companies in the markets in which we compete. We believe the C&amp;MD Committee
adequately addressed stockholders&#146; concern regarding the 2020 severance payment and reiterate the <FONT STYLE="white-space:nowrap">one-time</FONT> nature of the payment and our intention that such payment does not constitute a change in our
severance practices and otherwise took action to address stockholder feedback on our executive compensation program. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>FOR ALL THESE
REASONS, WE ASK OUR STOCKHOLDERS </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TO VOTE &#147;FOR&#148; THE
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">SAY-ON-PAY</FONT></FONT> PROPOSAL </B></P>
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