Our corporate governance principles focus our business activities on sustainable value creation and prescribe a management culture conforming to recognized standards of good corporate governance and a policy of transparent communication. Our board of directors provides oversight of the company’s affairs and has adopted comprehensive corporate standards and policies that govern our operations and provide a framework for our actions. Our code of business conduct sets the expectations we have for our directors, management, and associates in operating a responsible company, and guides the decisions we make and the way we conduct business. Our corporate governance guidelines outline a set of procedures and standards to ensure the board fulfills its responsibilities. The board has adopted a number of other governance policies, including board communication, compensation clawback, related party transactions, fair disclosure, and trading in company security policies. For additional information about our corporate governance policies, please review our latest proxy statement and the Corporate Governance section of the Investor Relations portion of our website.
The Nominating and Corporate Governance Committee is responsible for assisting our board in oversight of corporate governance at HD Supply. The Nominating and Corporate Governance Committee regularly reviews board composition and our governance policies to ensure compliance with applicable law and best practices to help shape the ongoing governance of our company. The committee is also responsible for leading the recruitment of qualified board members to bring fresh perspectives and new ideas into our boardroom and recommending annual director nominations to the board.
|Board Independence||Eight of our nine directors are independent; all directors other than Mr. DeAngelo are independent.
All committees of the board are comprised exclusively of independent directors.
Our independent directors regular meeting in private executive sessions without management.
|Independent Lead Director||We have an independent lead director, who serves as the presiding director at the executive sessions of the independent directors.|
|Board Oversight||The board regularly devotes substantial time to Company’s strategic priorities, focusing on assessing our progress to date, as well as on strategic initiatives and risks over the short and long term. The board believes that although short-term performance is important, it should be assessed in the context of Company’s long-term goals.|
|Risk Oversight||The board has overall responsibility for oversight of risk management and reviews our major financial, operational, compliance, reputational and strategic risks, including steps to monitor, manage and mitigate such risks.
Each board committee is responsible for oversight of risk management practices for categories of risks relevant to its functions.
|Annual Board Assessments||The board and each board committee conducts an annual assessment of their effectiveness as a group.|
|Board Refreshment and Diversity||The board continues to recruit new directors to bring fresh perspectives and new ideas into our boardroom. During 2019, a new independent director was added who has
extensive expertise in accounting and auditing, is a financial expert and serves on our audit committee. We have two female directors. Additional qualifications, experience,
and other information about our directors is provided on pages 16-20.
|Stockholder Outreach||Management has in the past engaged in wide-ranging dialogue with our major institutional investors. Both the company and the board benefit greatly from the insights, experiences and ideas exchanged during these engagements. We are committed to continuing this dialogue with our stockholders in the future.|
|Annual Election of Directors||We provide for the annual election of our directors.|
|Stock Ownership Guidelines and Holding Period Requirements||Our independent directors must own at least five times their annual cash board retainer in our common stock within five years of joining the board. All directors, other than
Mr. Ostfeld who joined the board during 2017 and Mr. Konenkamp who joined the board in 2019, satisfy the guidelines.
Our CEO must own at least five times, our CFO and each of our executive officers who is in charge of a principal business unit must own three times, and each other executive
Our directors and executives must hold 50% of their vested awards until the ownership guidelines are satisfied and, once satisfied, must hold sufficient shares to satisfy the
|Compensation Clawback||In the event of a significant restatement of financial results, the board may recoup cash incentive bonuses and equity awards granted to our executive officers.|
|No Hedging, Pledging or Short Sells||We do not allow our directors, executive officers or associates to engage in hedging, pledging, or short sales of our securities.|
|Director Orientation and Continuing Education||We provide orientation for new directors and provide our directors with materials or briefing sessions on subjects that we believe will assist them in discharging their duties. We also engage third parties to provide either in-boardroom or dinner meeting education to our directors. To supplement the education we provide, we encourage our directors to attend external programs and reimburse up to $5,000 annually for the costs of attending such programs.|
|Confidential Voting Policy||We have a confidential voting policy for our individual stockholders (does not apply to corporate and institutional stockholders).|
|100% Meeting Attendance||Each of our directors attended the 2018 annual stockholders meeting, all board meetings, and all meetings of the committees of which he or she was a member, during fiscal 2018.|