2015 Proxy Statement

Transcription

EŽƟĐĞŽĨϮϬϭϱ
ŶŶƵĂůDĞĞƟŶŐŽĨ
^ƚŽĐŬŚŽůĚĞƌƐĂŶĚ
WƌŽǆǇ^ƚĂƚĞŵĞŶƚ
Wednesday, May 6, 2015
At 9:00 a.m. (EDT)
Nasdaq MarketSite | New York, New York
2015PROXYSTATEMENT
MARCH27,2015
DearFellowNasdaqStockholders:
Wearepleasedtoencloseourlatestproxystatementandinviteyoutoattendthe2015annualmeetingofstockholders
onMay6.YoumayelecttoattendthemeetinginNewYorkorvirtuallyviawebcastathttp://ir.nasdaq.com/events.cfm.
Whilethestockholdermeetingallowsustodiscusskeyissuesandinitiativesatgreaterlength,wewanttoprovideyou
withabriefsummaryofrecentbusinesshighlightsthatillustratethedepthandbreadthofthisfranchiseandourprogress.
BUSINESSANDFINANCIALHIGHLIGHTS
Ourcommitmenttoourclients,innovationandexecutionyieldedanotheryearofrecordfinancialperformancefor
Nasdaqin2014.Recordnetrevenues,nonͲGAAPnetincomeandnonͲGAAPEPSweredrivenbyorganicgrowthand
contributionsfromourrecentacquisitions.
OrganicrevenuegrowthintheListingServices,InformationServicesandTechnologySolutionssegmentswas4%in2014,
consistentwithourmediumͲtermoutlookofmidͲsingledigitrevenuegrowthandwasaccompaniedbyanorganicdecline
inexpensesfortheyear.Ofparticularnote,continuedstrongIPOactivityandincreasedmarketsharecontributedtoour
bestyearintheU.S.IPOmarketinoveradecadeandthebestyearforNordicIPOssince2000.
Ourcontinuedfocusonourclients’tradingneedsandimprovingmarketconditionsledtogoodgainsacrossourdiverse
andcompetitiveofferingsintheMarketServicessegment,leadingtoareturnoforganicgrowthafterseveralyearsof
postͲfinancialcrisisindustryvolumeheadwinds.
Investorsrecognizedthestrengthofourresultsandthestabilityofourbusinessandcashflowthroughstrongstockprice
performanceandrelativevaluationgainscomparedtoourpeersandthebroadermarket,enjoyingaboveͲaveragetotal
stockholderreturns.
GROWINGFROMWITHIN
WeknowthatorganicgrowthisfundamentaltocreatinglongͲtermstockholdervalue.Toensurewecontinuetodeliver
stronggrowth,weagaincommittedsignificantresourcestoResearchandDevelopment(R&D).Whileourtrackrecordin
thisareasuggestsweareontherightcoursewithmanyofourinitiatives,weknowthatwemustbevigilantinour
assessmentsofwhatisworkingandwhatisnot,basedondataandclientfeedback.
OneareawherewebelieveweareontherightpathistheNasdaqPrivateMarket.Launchedin2014,ithasestablisheda
newrangeofliquidityandcapitalmanagementsolutionsforprivatecompaniesandsupportsmorethan60clients,
rangingfrompromisingstartͲupstowellͲestablishedprivatecompanieslikeMotleyFool.Asfurthersupportforinnovative
youngcompanies,wearecelebrating25yearsinSiliconValleyin2015andextendingourpresenceinthishomeofso
manyNasdaqͲlistedcompaniesbylaunchingtheNasdaqEntrepreneurialCenterinSanFrancisco.
Nasdaqpridesitselfonbeingapreferredpartnertoourclientsandworkingtobringmorecompetitionandefficiencyto
themarkets.ThelaunchofNasdaqFutures(NFX),anewenergyfuturesmarketwiththesupportofleadingcommodities
participants,willoffercompetitivepricing,aninnovativeclearingsolutionandhighͲperformancetechnologyforfutures
andoptionsbasedonkeyenergybenchmarks.ItwilllaunchinmidͲ2015,pendingregulatoryapproval.
AnotherareawhereweremainoptimisticabouttheopportunityforNasdaqandourcustomersistheNLXinitiative,
launchedin2013.NLXisaLondonͲbasedmultilateraltradingvenueofferingacompletesuiteofEuropeaninterestrate
benchmarkfutures,ahorizontalclearingmodelbringinguniquecapitalefficienciesandcompetitivefeestructures.We
continuedtoinvestinNLXin2014,reducingshortͲtermearnings,andrecognizethatwemustdemonstrateprogressand
successwiththisinitiativeinthenearterm.Wecontinuetolookfornewwaystobetterserveourclientsbyleveraging
ourleadingtechnologyandefficiencies.
INTEGRATINGACQUISITIONS
Again,ourstrongresultsin2014overallweredrivenbybothbroadͲbasedorganicgrowthandsolidprofitcontributions
fromrecentacquisitions.Oursuccesswasdrivenbyourabilitytosuccessfullyincorporatenewacquisitionsintoour
organization.Letmeprovideyouwithafewexamples.
2015PROXYSTATEMENT
OureSpeedtradingplatformprovidesrealͲtimetradingofbenchmarkU.S.Treasurysecurities,oneofthelargestand
mostliquidfixedͲincomecashmarketsintheworld.Lastyear,wemadesignificantinfrastructureinvestments,technology
improvementsandnewproductenhancementstotheplatform.Asaresult,wehaveamorecompetitiveofferingandare
particularlypleasedwithsuccessfulnewproductlauncheslikeTreasuryBillstrading,wheretheplatformreachedalmost
$5billioninnotionaldailyvolumeduringthefourthquarterof2014.However,thebusinesshasyettoperform
adequately.Wehavemoreworktodoonmarketshareandrevenuetomakesurethisbusinessreachesitsfullpotential
andmeetsourexpectations.Weremainconfidentinourabilitytodeliveronbothfronts.
OurCorporateSolutionssuitenowincludesthefullproductofferingandscaleofThomsonReuters’InvestorRelations
(IR),PublicRelations(PR),andMultimediaSolutionsbusinesses,enhancingtheperformanceandefficiencyofthis
businessthatsupportsover10,000corporateclientsfromprivateownership,throughtheIPO,tolongͲtermdevelopment
asapubliccompany.In2014,weworkedtointegratebothacquiredandlegacyCorporateSolutionsplatformsandexpect
tocompletethisworkin2015.Webelievethiswillallowustoincreaseresourcesdedicatedtogrowingrevenueand
complementthesuccesswehavehadinreducingcosts.InitialclientfeedbackonourNextGenerationplatformsforIR,PR
andDirectorsDeskhasbeenveryencouragingandapositivesignthatoureffortsareontherighttrack.
EFFECTIVEUSEOFCAPITALANDRESOURCES
Capitaldisciplineremainscentraltoourstrategyandcriticalinassuringinvestorsthatdiverse,strongandgrowingcash
flowfromourbusinessisdeployedaseffectivelyaspossible.Allinternalandexternalusesofcapitalareevaluatedand
prioritizedforexpectedriskͲadjustedreturnsandmonitoredforperformancetosupportongoingcapitalinvestment.In
addition,ourpeoplearefundamentaltooursuccessandwealwaysstrivetomakesurethatourtalentevolveswiththe
needsofthebusiness.Assuch,NasdaqalsomodifieditsmanagementstructurebycreatingnewPresidentrolesforHansͲ
OleJochumsenandAdenaFriedman.Undertheirleadership,thecompanyisbetterpreparedtoserveourclients,
stockholdersandemployeesaroundtheglobe.Wealsorevitalizedthecorporateidentity,brand,andlaunchedanew
tagline—“IgniteYourAmbition”—thatreinforcesourclientͲcenteredphilosophy.
GROWINGSTOCKHOLDERVALUE
FirstandforemostatNasdaq,westrivetogrowstockholdervalue.Avitalcomponentofthiseffortisourdisciplined
approachtocapitalallocation,asmentionedearlier.Ourbusinessgeneratessubstantialcashflow,allowingustoboth
returncapitaltoourstockholdersandinvestinourbusiness.During2014,wereturnedatotalof$276milliontoour
stockholders,evenasthecompanycompletedamaterialdeleveragingobjectiveandcontinuedtosignificantlyinvestin
newgrowthinitiatives.
TheBoardofDirectorsisalsoactivelyengagedincomprehensiveoversightofenterpriserisk.Whetheritinvolvesbusiness
strategy,governanceissues,legalchallenges,economictrends,regulatoryactionsorsustainabilityandresource
managementconcerns,thisBoardisfocusedontheseissuesandotheremergingissuesthatcontributetooursuccess.
WedoeverythinginourpowertomakesurethatNasdaqtechnologyisstrong,secure,innovativeandresilient.TheBoard
isregularlybriefedbytechnologyexpertsfrombothwithinandwithoutthecompany,stayingabreastofindustrytrends
andbestpractices.TheSECͲmandatedRegulationSCI,forexample,compelsustoadministerrobusttechnologycontrols
andtakecorrectiveactionswhenevernecessary.Boardmembersleveragetheirexperiencebyplanningforthefuture
throughsmoothandeffectivestrategiestotransitionpeople,programsandpolicies.
Finally,webelieveinproactiveandproductiveengagementwithyou,thestockholders.ThisBoardwelcomesstockholder
perspectives,andwecarefullyconsidertheinvestorfeedbackwereceive.Youareavaluableresourceforusaswe
continuetogrowanddevelopthisfranchise.
Thankyou.
TheBoardofDirectorsofTheNASDAQOMXGroup,Inc.
2015PROXYSTATEMENT
NOTICEOFANNUALMEETINGOFSTOCKHOLDERS
MEETINGINFORMATION
TotheStockholdersofTheNASDAQOMXGroup,Inc.:
DATE: Wednesday,May6,2015
Theannualmeetingwillbeheldforthefollowing
purposes:
TIME: 9:00a.m.(EDT)
PLACE: NasdaqMarketSite
1.
Toelect11directorsforaoneͲyearterm;
FourTimesSquare
2.
Toapprovethecompany’sexecutivecompensation
onanadvisorybasis;
NewYork,NewYork10036
3.
ToratifytheappointmentofErnst&YoungLLPas
ourindependentregisteredpublicaccountingfirm
forthefiscalyearendingDecember31,2015;
Watchalivewebcastofthemeetingonour
InvestorRelationswebsite:
http://ir.nasdaq.com/events.cfm
4.
ToapprovetheNasdaqECIP,asamendedand
restated;
HOWTOVOTE
5.
Toconsiderastockholderproposaldescribedinthe
accompanyingproxystatement,ifproperly
presentedatthemeeting;and
Yourvoteisimportant.Youareeligibletovoteifyou
wereastockholderofrecordatthecloseofbusiness
onMarch10,2015.
6.
Totransactsuchotherbusinessasmayproperly
comebeforetheannualmeetingorany
adjournmentorpostponementofthemeeting.
Pleasereadtheproxystatementwithcareandvote
rightawayusinganyofthefollowingmethodsand
yourcontrolnumber.
Weurgeyoutoreadtheattachedproxystatementfor
additionalinformationconcerningthematterstobe
consideredatthismeeting.
IfyouplantoattendthemeetinginNewYork,youwill
needtorequestanadmissionticketinadvanceand
presentavalidformofphotoidentificationandproofof
ownershipofourcommonstockasoftherecorddateas
detailedonpage65oftheproxystatement.
BYINTERNETUSINGYOURTABLET
ORSMARTPHONE
ScanthisQRcode24/7tovotewith
yourmobiledevice
BYPHONE
Call+18006906903intheU.S.or
Canadatovoteyourshares
Ifyouareunabletoattendinperson,pleaseviewthe
livewebcastfromourInvestorRelationswebsite.
ByOrderoftheBoardofDirectors,
BYINTERNETUSINGYOUR
COMPUTER
Visit24/7
www.proxyvote.com
BYMAIL
Castyourballot,signyourproxy
card,returnbyfreepost
RobertGreifeld
ChiefExecutiveOfficer
NewYork,NewYork
March27,2015
ATTENDTHEANNUALMEETING
Voteinperson
[THIS PAGE INTENTIONALLY LEFT BLANK]
2015PROXYSTATEMENT
TABLEOFCONTENTS
PROXYSUMMARY
1
ACRONYMNSANDCERTAINDEFINEDTERMS
PROPOSALI:ELECTIONOFDIRECTORS
4
401(k)Plan
DIRECTORCOMPENSATION
12
ASC
CORPORATEGOVERNANCE
15
COBRA
CORPORATERESPONSIBILITY
19
PROPOSALII:APPROVALOFTHECOMPANY’S
EXECUTIVECOMPENSATIONONANADVISORYBASIS
20
COMPENSATIONDISCUSSIONANDANALYSIS
21
MANAGEMENTCOMPENSATIONCOMMITTEEREPORT
37
TaxͲqualifiedSection401(k)
savingsplan
AccountingStandardsCodification
ConsolidatedOmnibusBudget
ReconciliationAct
Code
InternalRevenueCodeof1986,as
amended
ECIP
ExecutiveCorporateIncentivePlan
EPS
EarningsPerShare
EquityPlan
Nasdaq’sEquityIncentivePlan
ERC
EmployerRetirementContribution
ERM
EnterpriseRiskManagement
ESPP
EmployeeStockPurchasePlan
MANAGEMENTCOMPENSATIONCOMMITTEE
INTERLOCKSANDINSIDERPARTICIPATION
37
EXECUTIVECOMPENSATIONTABLES
38
Exchange
Act
SECTION16(a)BENEFICIALOWNERSHIPREPORTING
COMPLIANCE
49
FASB
SECURITYOWNERSHIPOFCERTAINBENEFICIAL
OWNERSANDMANAGEMENT
49
FASBASC
Topic718
PROPOSALIII:RATIFICATIONOFTHEAPPOINTMENTOF
INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM
52
AUDITCOMMITTEEREPORT
53
PROPOSALIV:APPROVALOFTHENASDAQECIP,AS
AMENDEDANDRESTATED
54
PROPOSALV:STOCKHOLDERPROPOSAL–RIGHTTOACT
BYWRITTENCONSENT
58
OTHERBUSINESS
SecuritiesExchangeActof1934,as
amended
FinancialAccountingStandards
Board
FASBASCTopic718,“Stock
Compensation”
FINRA
FinancialIndustryRegulatory
Authority
GAAP
GenerallyAcceptedAccounting
Principles
H.E.
HisExcellency
IPO
InitialPublicOffering
Nasdaq
TheNASDAQOMXGroup,Inc.
PSUs
PerformanceShareUnits
ROIC
ReturnonInvestedCapital
RSUs
RestrictedStockUnits
60
SEB
SkandinaviskaEnskildaBankenAB
EXECUTIVEOFFICERS
60
SEC
U.S.SecuritiesandExchange
Commission
CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS
62
SERP
SupplementalExecutive
RetirementPlan
HELPFULINFORMATION&ONLINERESOURCES
65
S&P
Standard&Poor’s
ANNEXA:RECONCILIATIONOFU.S.GAAPFINANCIAL
MEASURESTONONͲGAAP
71
TSR
TotalStockholderReturn
ANNEXB:PROPOSEDAMENDEDANDRESTATED
NASDAQECIP
73
[THIS PAGE INTENTIONALLY LEFT BLANK]
2015PROXYSTATEMENT
PROXYSUMMARY
Thissummaryhighlightsinformationcontainedelsewhereinthisproxystatement.Itdoesnotcontainallofthe
informationthatyoushouldconsiderinvotingyourshares.Youshouldreadtheentireproxystatement,aswellasour
annualreportonForm10ͲK,carefullybeforevoting.
VOTINGMATTERSANDBOARDRECOMMENDATIONS
BOARDVOTING
RECOMMENDATION
PAGE
REFERENCE
FOREACHNOMINEE
4
II. Advisoryvotetoapprovethecompany’sexecutivecompensationon
anadvisorybasis
FOR
20
III. RatificationoftheappointmentofErnst&YoungLLPasour
independentregisteredpublicaccountingfirmforthefiscalyear
endingDecember31,2015
FOR
52
IV. ToapprovetheNasdaqECIP,asamendedandrestated
FOR
54
V. Stockholderproposal–Righttoactbywrittenconsent
AGAINST
58
PROPOSAL
I. Electionof11directors
PERFORMANCEHIGHLIGHTS
Nasdaqcontinuedtodeliverexcellentresultsforstockholdersin2014.Wecontinuedtotakestepstoimproveour
strategicpositioning,successfullymeetingtheevolvingdemandsofourdiverseclientbase,andmaintainingthe
organization'srelentlessfocusonefficiency.
NASDAQOUTPERFORMEDTHES&P500 AND NASDAQCOMPOSITEINDEX
ONTOTALSTOCKHOLDERRETURNOVERTHEPAST5YEARS
NETREVENUES
NONͲGAAPNETINCOME(1)
RETURNEDTOSTOCKHOLDERS
TOTALSTOCKHOLDERRETURN
$2.1
$499
$276 105%
BILLION
MILLION
MILLION
Inrepurchasedstockand
dividends
3year,including
reinvestmentofdividends
9.1%increaseyearͲoverͲ
year
12.1%increaseyearͲoverͲ
year
(1)SeeAnnexAforareconciliationofnonͲGAAPfinancialmeasurestoourresultsasreportedunderU.S.GAAP.
THENASDAQOMXGROUP,INC.
/1
2015PROXYSTATEMENT
CORPORATEGOVERNANCEHIGHLIGHTS
Nasdaq’scommitmenttogoodcorporategovernanceisintegraltoourbusiness.
+ Annualelectionof
+ Regularexecutive
directors
+ Directorselectedby
sessionsofBoardand
BoardCommittees
+ 10ofour11director
+ SeparationofBoard
nomineesare
independent
+ ComprehensiveCodeof
+ Strongriskmanagement
majorityvotein
uncontestedelections
+ Annualindependent
+ Globalethicsand
ChairmanandCEO
Boardandmember
evaluations
+ Boardparticipationin
+ Stockholderabilityto
ConductandCorporate
GovernanceGuidelines
executivesuccession
planning
program
corporatecompliance
program
+ Replacementof
callaspecialmeeting
supermajorityvoting
requirements
DIRECTORNOMINEES
Informationabouteachdirector’sexperience,qualifications,attributesandskillscanbefoundbeginningonpage6.
COMMITTEEMEMBERSHIPS
NAME
AGE
CharleneT.Begley
NonͲIndustry;Public
48
2014
RetiredSVP&CIO,GeneralElectric
Company
X
StevenD.Black
62
2011
CoͲCEO,BregalInvestments
X
BörjeE.Ekholm
NonͲIndustry
52
2011
CEO&President,InvestorAB
X
RobertGreifeld
Staff
57
2003
CEO,TheNASDAQOMXGroup,Inc.
GlennH.Hutchins
Industry
59
2005
CoͲFounder,SilverLake
X
EssaKazim
NonͲIndustry
56
2008
Governor,DubaiInternational
FinancialCenter;Chairman,Borse
DubaiandDubaiFinancialMarket
X
ThomasA.Kloet
56
2015
RetiredCEO&ExecutiveDirector,
TMXGroupLimited
X
JohnD.Markese
69
1996
ViceChairman,AmericanAssociation
ofIndividualInvestors
EllynA.McColgan
61
2012
MichaelR.Splinter
NonͲIndustry;Issuer
64
LarsR.Wedenborn
NonͲIndustry
56
INDEͲ
PENDENT
AC
X
NGC
X
X
None
X
Chair
2
X
X
Chair
X
X
Chair
X
RetiredExecutiveAdvisor,Aquiline
CapitalPartners,LLC
X
X
2008
ExecutiveChairman,Applied
Materials,Inc.
X
2008
CEO,FAMAB
X
NumberofMeetingsin2014
EC
MCC
ExecutiveCommittee
MCC
ManagementCompensation
Committee
X
10
NGC
OTHERPUBLIC
CO.BOARDS
EC
AC AuditCommittee
PRINCIPAL
OCCUPATION
DIRECTOR
SINCE
X
2
None
1
None
None
X
None
X
None
X
Chair
0
6
7
1
None
Nominating&Governance
Committee
/2
2015PROXYSTATEMENT
STOCKHOLDERENGAGEMENT
Wevalueourstockholders’perspectiveonourbusinessesandeachyearinteractwithstockholdersthroughavarietyof
engagementactivities.In2014,ourkeystockholderengagementactivitiesincludedinvestorroadshowsinninemajor
NorthAmericanandEuropeanmetropolitanregions,investorconferencesinsixcitiesintheU.S.andU.K.,andour2014
annualmeetingofstockholders,heldinStockholmwithelectronicallyͲlinkedparticipationavailableinNewYorkCity.We
welcomeinvestorinput,andinparticular,weinvitestockholderfeedbackonthestockholderproposalsetforthin
ProposalVofthisproxystatementrelatingtotherighttoactbywrittenconsent.
EXECUTIVECOMPENSATIONHIGHLIGHTS
Compensationdecisionsmadefor2014werealignedwithNasdaq’sstrongoperationalperformanceandreflectcontinued
emphasisonvariable,atͲriskcompensationpaidoutoverthelongͲterm.Compensationdecisionsareintendedto
reinforceourfocusonperformanceandsustained,profitablegrowththattranslatesintostockpriceappreciation.
2014annualincentivesreflectedourachievementoftargetedcorporaterevenue($2.1billion)andabovetargetcorporate
operatingincome(runrate)results($873.6million)inadditiontoaccomplishmentofstrategicobjectivesandbusiness
unitfinancialresults.Theresultingannualincentivepayoutstonamedexecutiveofficersrangedfrom120%Ͳ169%of
targetedamounts.
OurlongͲtermincentiveplanrewardsnamedexecutiveofficersforlongͲtermTSR.In2012,PSUsweregrantedcontingent
uponthreeͲyearrelativeTSRperformanceascomparedtoindustrypeersandS&P500companies.ThethreeͲyear
performancecyclecompletedonDecember31,2014withthefollowingresults:
•
•
•
•
NasdaqcumulativeTSR(perplandesign):82.1%
Industrypeerrank:67thpercentile
S&P500rank:59thpercentile
Payoutat137%oftarget
2014TOTALDIRECTCOMPENSATIONFOREACHNAMEDEXECUTIVEOFFICER
CASHINCENTIVE
AWARD
TARGETGRANTDATE
FACEVALUEOF
EQUITYAWARDS
TOTAL
$1,000,000
$2,550,450
$6,649,200
$10,199,650
LeeShavel
ChiefFinancialOfficerand
ExecutiveVicePresident,
CorporateStrategy
$500,000
$900,375
$1,272,731
$2,673,106
AdenaT.Friedman
President
$396,947
$1,636,250
$8,272,690
$10,305,887
HansͲOleJochumsen
President
$558,409
$1,623,000
$1,636,364
$3,817,773
JohnL.Jacobs
FormerExecutiveVice
President,Global
InformationServices
$475,000
$1,183,700
$1,000,003
$2,658,703
NAMEDEXECUTIVEOFFICER
RobertGreifeld
BASESALARY
Beginningonpage65,youwillfindanswerstofrequentlyaskedquestionsaboutproxymaterials,voting,ourannual
meetingandcompanyfilingsandreports.Wehavealsoincludedalistofresourcesavailableonourwebsite.
/3
2015PROXYSTATEMENT
PROPOSALI:ELECTIONOFDIRECTORS
TheBoardofDirectorsunanimouslyrecommendsavoteFOReachofthe
nomineesforDirector.
ThebusinessandaffairsofNasdaqaremanagedunderthedirectionofourBoardofDirectors.Ourdirectorshavediverse
backgroundsandexperienceandrepresentabroadspectrumofviewpoints.
PursuanttoourAmendedandRestatedCertificateofIncorporationandByͲLawsandbasedonourgovernanceneeds,the
Boardmaydeterminethetotalnumberofdirectors.TheBoardisauthorizedtohave11directorsfollowingour2015
annualmeeting.
Eachofthe11nomineesidentifiedinthisproxystatementhasbeennominatedbyourNominating&Governance
CommitteeandBoardofDirectorsforelectiontoaoneͲyearterm.Allnomineeshaveconsentedtobenamedinthis
proxystatementandtoserveontheNasdaqBoard,ifelected.
Inanuncontestedelection,ourdirectorsareelectedbyamajorityofvotescastatanymeetingfortheelectionof
directorsatwhichaquorumispresent.Thiselectionisanuncontestedelection,andtherefore,eachofthe11nominees
mustreceivetheaffirmativevoteofamajorityofthevotescasttobedulyelectedtotheBoard.Anysharesnotvoted,
includingasaresultofabstentionsorbrokernonͲvotes,willnotimpactthevote.
Ourcorporategovernanceguidelinesrequirethat,inanuncontestedelection,anincumbentdirectormustsubmitan
irrevocableresignationasaconditiontohisorhernominationforelection.Ifanincumbentdirectorfailstoreceivethe
requisitenumberofvotesinanuncontestedelection,theirrevocableresignationbecomeseffectiveandsuchresignation
willbeconsideredbytheNominating&GovernanceCommittee.ThisCommitteewillrecommendtothefullBoard
whetherornottoaccepttheresignation.TheBoardisrequiredtoactontherecommendationandtodisclosepubliclyits
decisionͲmakingprocesswithrespecttotheresignation.Alltheincumbentdirectorshavesubmittedtheirrevocable
resignation.
INFORMATIONWITHRESPECTTODIRECTORNOMINEES
InevaluatingcandidatesfornominationtotheBoard,theNominating&GovernanceCommitteereviewstheskills,
qualifications,characteristicsandexperiencedesiredfortheBoardasawholeandforitsindividualmembers,withthe
objectiveofhavingaBoardthatreflectsdiversebackgroundsandseniorlevelexperienceintheareasofglobalbusiness,
finance,legalandregulatory,technologyandmarketing.Characteristicsofalldirectorsincludeintegrity,highpersonal
andprofessionalethics,soundbusinessjudgment,theabilityandwillingnesstocommitsufficienttimetofulfilltheir
Boardresponsibilities,acommitmenttorepresentingthelongͲterminterestsofourstockholdersandawillingnessto
fulfilltheirresponsibilitiesrelatedtoaffiliatedselfͲregulatoryorganizations.
InevaluatingthesuitabilityofindividualBoardnominees,theNominating&GovernanceCommitteetakesintoaccount
manyfactors,includinggeneralanddiverseunderstandingoftheglobaleconomy,capitalmarkets,financeandother
disciplinesrelevanttothesuccessofalargepubliclyͲtradedfinancialservicescompany;ageneralunderstandingof
Nasdaq’sbusinessandtechnology;theclassificationrequirementsunderourByͲLaws;theindividual’seducationaland
professionalbackgroundandpersonalaccomplishments;andfactorssuchasgeography,gender,ageandethnicdiversity.
TheCommitteeevaluateseachindividualcandidateinthecontextoftheBoardasawhole,withtheobjectiveof
maintainingagroupofdirectorsthatcanfurtherthesuccessofNasdaq’sbusiness,whilerepresentingtheinterestsof
stockholders,employeesandthecommunitiesinwhichthecompanyoperates.Indeterminingwhethertorecommenda
BoardmemberforreͲelection,theNominating&GovernanceCommitteealsoconsidersthedirector’spastattendanceat
meetings,participationinandcontributionstotheactivitiesoftheBoardandthemostrecentBoardselfͲassessment.
/4
2015PROXYSTATEMENT
TheNominating&GovernanceCommitteeconsiderspossiblecandidatessuggestedbyBoardandCommitteemembers,
industrygroups,stockholdersandseniormanagement.InadditiontosubmittingsuggestednomineestotheNominating
&GovernanceCommittee,aNasdaqstockholdermaynominateapersonforelectionasadirectoratNasdaq’sannual
meetingorataspecialmeeting,providedthestockholderfollowstheproceduresspecifiedinNasdaq’sByͲLaws.The
Nominating&GovernanceCommitteereviewsallcandidatesinthesamemanner,regardlessofthesourceofthe
recommendation.
Inaddition,theNominating&GovernanceCommitteemayengageathirdͲpartysearchfirmfromtimeͲtoͲtimetoassistin
identifyingandevaluatingqualifiedcandidates.InconnectionwiththerecruitmentofMr.Kloet,theNominating&
GovernanceCommitteeretainedthesearchfirmofHeidrick&Strugglestohelpidentifydirectorprospects,perform
candidateoutreach,assistinreferenceandbackgroundchecksandprovideotherrelatedservices.
Weareobligatedbythetermsofastockholders’agreementdatedFebruary27,2008betweenNasdaqandBorseDubai,
asamended,tonominateandgenerallyusebesteffortstocausetheelectiontotheNasdaqBoardofoneindividual
designatedbyBorseDubai,subjecttocertainconditions.H.E.KazimistheindividualdesignatedbyBorseDubaiasits
nominee.
Wealsoareobligatedbythetermsofastockholders’agreementdatedDecember16,2010betweenNasdaqandInvestor
ABtonominateandgenerallyusebesteffortstocausetheelectiontotheNasdaqBoardofoneindividualdesignatedby
InvestorAB,subjecttocertainconditions.Mr.EkholmistheindividualdesignatedbyInvestorABasitsnominee.
Finally,Nasdaq’scommonstockiscurrentlylistedonTheNasdaqStockMarketandNasdaqDubai.Inordertoqualifyas
independentunderthelistingrulesofTheNasdaqStockMarket,adirectormustsatisfyatwoͲparttest.First,thedirector
mustnotfallintoanyofseveralcategoriesthatwouldautomaticallydisqualifythedirectorfrombeingdeemed
independent.Second,nodirectorqualifiesasindependentunlesstheBoardaffirmativelydeterminesthatthedirectorhas
nodirectorindirectrelationshipwiththecompanythatwouldinterferewiththeexerciseofindependentjudgmentin
carryingouttheresponsibilitiesofadirector.UndertheNasdaqDubailistingrulesandtheMarketsRulesoftheDubai
FinancialServicesAuthority,adirectorisconsideredindependentiftheBoarddeterminesthedirectortobeindependent
incharacterandjudgmentandtohavenorelationshiporcircumstancesthatarelikelytoaffect,orcouldappeartoaffect,
thedirector’sjudgmentinamannerotherthaninthebestinterestsofthecompany.
Basedupondetailedwrittensubmissionsbyeachindividual,theBoardhasdeterminedthatallofourcurrentdirectors
areindependentundertherulesofeachofTheNasdaqStockMarketandNasdaqDubai,otherthanMr.Greifeld.Mr.
GreifeldisdeemednottobeindependentbecauseheistheCEOofNasdaq.Inaddition,indeterminingtheindependence
ofMr.Kloet,theBoardconsideredthatNasdaqandMr.Kloetwererecentlypartytoaconsultingarrangementunder
whichMr.KloetprovidedhisexpertiseoncertainEuropeanprojects.Thearrangementterminatedafterapproximately
onemonthwhenMr.KloetwasnominatedtoapositionontheBoard.Giventheshortnatureofthearrangement,the
factthatitwasterminatedpriortoMr.Kloet’sjoiningtheBoardandthedeminimisamountoffeesreceived,theBoard
concludedthatMr.Kloetisanindependentdirector.
SUMMARYOFDIRECTORNOMINEES
ThefollowingsummarizesthecharacteristicsofthenomineesfordirectorthatledtheBoardtoconcludethateach
directornomineeisqualifiedtoserveontheBoard.
ALLDIRECTORNOMINEESEXHIBIT
• Highpersonalandprofessionalethics
• Aprovenrecordofsuccess
• AcommitmenttoaffiliatedselfͲregulatory
organizations
• Knowledgeofcorporategovernance
requirementsandpractices
• Leadershipexperience
• Knowledgeoffinancialservicesandtechnology
• AcommitmenttothelongͲterminterestsofour
stockholders
• Anappreciationofmultiplecultures
/5
2015PROXYSTATEMENT
NOMINEES
CHARLENET.BEGLEY
Age:48
Directorsince2014
OtherPublicCompanyBoards:RedHat,Inc.;WPPplc
BoardCommittees:Audit
Ms.BegleyservedinvariouscapacitiesfortheGeneralElectricCompany,adiversifiedinfrastructureandfinancial
servicescompany,from1988Ͳ2013.Mostrecently,Ms.BegleyservedinadualroleasSeniorVicePresidentand
ChiefInformationOfficer,aswellasPresidentandCEOofGE’sHomeandBusinessSolutionsOffice,fromJanuary
2010ͲDecember2013.Previously,Ms.BegleyservedasPresidentandCEOofGE’sEnterpriseSolutionsfrom2007Ͳ
2009.AtGE,Ms.BegleyservedasPresidentandCEOofGEPlasticsandGETransportation.ShealsoledGE’s
CorporateAuditstaffandservedasCFOforGETransportationandGEPlasticsEuropeandIndia.Ms.Begleyisa
memberoftheWPPandRedHatauditandnominatingcommittees.
SkillsandQualifications
•
•
•
•
•
Significanttechnology,cybersecurity,businessprocessimprovementandoperationalexcellenceexperience
Extensiveleadershipexperienceofahighlycomplexglobalindustrialandfinancialservicescompany
Riskmanagement,finance,auditandinternationalbusinessoperationsexperience
Broadsenioroperationalexperiencespanningdiverseproductsandcompanies
Auditcommitteefinancialexpert;servedinanumberoffinanceandauditrolesatGE
STEVEND.BLACK
Age:62
Directorsince2011
OtherPublicCompanyBoards:None
BoardCommittees:ManagementCompensationandNominating&Governance
Mr.BlackhasbeenCoͲCEOofBregalInvestments,aprivateequityfirm,sinceSeptember2012.HewastheVice
ChairmanofJPMorganChase&Co.fromMarch2010ͲFebruary2011andamemberofthefirm’sOperatingand
ExecutiveCommittees.Priortothatposition,Mr.BlackwastheExecutiveChairmanofJPMorganInvestmentBank
fromOctober2009ͲMarch2010.Mr.BlackservedasCoͲCEOofJPMorganInvestmentBankfrom2004Ͳ2009.Mr.
BlackwastheDeputyCoͲCEOofJPMorganInvestmentBanksince2003.HealsoservedasheadofJPMorgan
InvestmentBank’sGlobalEquitiesbusinesssince2000followingacareeratCitigroupanditspredecessorfirms.
•
•
•
•
•
Extensiveleadershipexperienceofahighlycomplexglobalfinancialservicescompany
Depthofknowledgefromover40yearsofexperienceintheglobalfinancialservicesindustry
Experienceleadingaglobalbusinessinaregulatedindustry
Managementdevelopment,compensationandsuccessionplanningexperience
Extensivebackgroundininternationalpubliccompanygovernance
/6
2015PROXYSTATEMENT
BÖRJEE.EKHOLM
Age:52
Directorsince2011
OtherPublicCompanyBoards:InvestorAB(untilMay12,2015),TelefonaktiebolagetLMEricsson
BoardCommittees:Executive,ManagementCompensationandNominating&Governance(Chair)
Mr.EkholmisPresidentandCEOofInvestorAB,anindustrialholdingcompany.FollowingtenyearsasPresidentand
CEOofInvestorAB,Mr.EkholmwillstepdownfromhiscurrentpositioneffectiveMay12,2015toleadanewdivision
ofInvestorAB,PatriciaIndustries.PriortobecomingPresidentandCEOin2005,Mr.Ekholmwasamemberofthe
ManagementGroupofInvestorAB,wherehehadoversightofthenewinvestmentsbusiness.Hepreviouslyservedas
thePresidentofNovareKapitalAB,anearlyͲstageventurecapitalcompany.Healsoservedinvariouspositionsat
McKinsey&Company,Inc.HeisamemberoftheremunerationcommitteeofTelefonaktiebolagetLMEricsson.
•
•
•
•
•
Extensiveleadershipofahighlycomplexglobalfinancialservicescompany
Significantexpertiseininternationalbusinessoperations
Broadknowledgeofinternationalmarketswithexperienceinfinance,accounting,corporatestrategyand
technology
ROBERTGREIFELD
Age:57
Directorsince2003
BoardCommittees:Executive
Mr.GreifeldwasappointedCEOandelectedtotheBoardin2003.PriortojoiningNasdaq,hewasExecutiveVice
PresidentatSunGardDataSystems,Inc.,aglobalproviderofintegratedsoftwareandprocessingsolutionsfor
financialservicesandaproviderofinformationavailabilityservices.Mr.GreifeldjoinedSunGardin1999through
SunGard’sacquisitionofAutomatedSecuritiesClearance,Inc.,wherefrom1991Ͳ1999,Mr.GreifeldwasthePresident
andCOO.
•
•
•
•
•
Extensiveleadershipofahighlycomplexglobalfinancialservicescompanyinaregulatedindustry
Significantexperienceintechnologyleadership,aswellasorganizationalandoperationalmanagement
Transactionalexperiencenegotiatingandstructuringmergersandacquisitions
/7
2015PROXYSTATEMENT
GLENNH.HUTCHINS
Age:59
Directorsince2005
OtherPublicCompanyBoards:AT&T
BoardCommittees:Executive(Chair)andManagementCompensation
Mr.HutchinsisaCoͲFounderofSilverLake,atechnologyinvestmentfirmthatwasestablishedinJanuary1999.He
hasbeenaClassBDirectoroftheFederalReserveBankofNewYorksinceAugust2011.Mr.HutchinsistheChairman
oftheBoardofDirectorsofSunGardCapitalCorp.
•
•
•
•
•
Extensiveleadershipof,andtransactionalexperienceas,aprivateequityinvestor
InͲdepthknowledgeofthetechnologysector
Extensiveexperienceinthepublicpolicysector
ESSAKAZIM
Age:56
Directorsince2008
BoardCommittees:Executive
H.E.KazimhasbeenGovernoroftheDubaiInternationalFinancialCentersinceJanuary2014.Since2006,hehas
servedasChairmanofBorseDubaiandChairmanoftheDubaiFinancialMarket.H.E.Kazimbeganhiscareerasa
SeniorAnalystintheResearchandStatisticsDepartmentoftheUAECentralBankin1988,andthenhemovedtothe
DubaiDepartmentofEconomicDevelopmentasDirectorofPlanningandDevelopmentin1993.Hewasthen
appointedDirectorGeneraloftheDubaiFinancialMarketfrom1999Ͳ2006.H.E.KazimisamemberoftheSupreme
FiscalCommitteeofDubai.
•
•
•
•
•
Extensiveleadershipofacomplexglobalbusinessinaregulatedindustry
Broadknowledgeofinternationalmarketswithexperienceinfinance,accounting,corporatestrategyand
technology
/8
2015PROXYSTATEMENT
THOMASA.KLOET
Age:56
Directorsince2015
BoardCommittees:None
Mr.KloetwasthefirstCEOandExecutiveDirectorofTMXGroupLimited,theholdingcompanyoftheTorontoStock
Exchange,TSXVentureExchange,MontrealExchange,CanadianDepositoryforSecurities,CanadianDerivatives
ClearingCorporationandtheBOXOptionsExchange,from2008Ͳ2014.Previously,heservedasSeniorExecutiveVice
PresidentandCOOofFimatAmerica’sfrom2003Ͳ2008,overseeingalloperatingunitsoftheU.S.brokerͲdealerof
SociétéGénérale.Mr.KloetservedasCEOoftheSingaporeExchangefrom2000Ͳ2002andasseniorvicepresident
andchiefadministrativeofficerofABNAMROfrom1997Ͳ2000.Mr.KloetservedasaBoardmember,treasurerand
clearingchairmanoftheChicagoMercantileExchangefrom1995Ͳ2000.HeservedasCOOofCreditAgricoleFutures,
Inc.from1990Ͳ1997,CFOofIndexFuturesGroupfrom1988Ͳ1990,DirectorofInternalAuditatChicagoMercantile
Exchangefrom1985Ͳ1988andRegulatoryStaffAuditoratChicagoMercantileExchangefrom1981Ͳ1982.Mr.Kloetis
aCertifiedPublicAccountantandamemberoftheAmericanInstituteofCertifiedPublicAccountants.Heisalsoa
memberoftheU.S.CommodityFuturesTradingCommission’sMarketRiskAdvisoryCommitteeandwasinducted
intotheFuturesIndustryAssociationHallofFameinMarch2015.
•
•
•
•
•
Leadershipofacomplexglobalbusinessinfinancialmarketsandregulatedindustries
Broadknowledgeofinternationalmarketswithexperienceinfinance,accountingandcorporatestrategy
Significantexperienceintechnologyleadership,aswellasorganizational,operationalandriskmanagement
JOHND.MARKESE
Age:69
Directorsince1996
BoardCommittees:Audit(Chair),ExecutiveandNominating&Governance
Dr.MarkeseservedonFINRA'sBoardofGovernorsfrom1998Ͳ2002.SincehisretirementinOctober2010,Dr.
MarkesehasbeentheViceChairmanoftheAmericanAssociationofIndividualInvestors,anotͲforͲprofitorganization
providinginvestmenteducationtoindividualinvestorsfoundedin1978.Previously,Dr.MarkesewasthePresident
andCEOoftheAmericanAssociationofIndividualInvestors.
•
•
•
•
•
Auditcommitteefinancialexpert,basedonover40yearsofworkinfinance
ExtensivefinancialexpertiseacquiredthroughadoctoraldegreeinFinanceandteachingbusinessschool
classesintheareasofCorporateFinance,FinancialCaseAnalysis,PortfolioManagementandInvestment
Analysis
Extensiveexperienceinriskmanagement,financialoperations,accounting,financialcontrolsandreporting
Providesimportantinsightsfromtheperspectiveoftheindividualinvestorcommunity
/9
2015PROXYSTATEMENT
ELLYNA.MCCOLGAN
Age:61
Directorsince2012
BoardCommittees:AuditandNominating&Governance
FromSeptember2010ͲSeptember2014,Ms.McColganwasanExecutiveAdvisoratAquilineCapitalPartners,LLC,a
privateequityfirmthatinvestsinthefinancialservicessector.SheworkedasaprivateconsultantfromFebruary
2009ͲSeptember2010.FromApril2008ͲJanuary2009,Ms.McColganwasPresidentandCOOoftheGlobalWealth
ManagementGroupofMorganStanley.Priortothat,sheservedinvariousseniormanagementpositionsatFidelity
Investmentsfrom1990Ͳ2007.Ms.McColganwasadirectorandmemberoftheauditcommitteeatPrimericafrom
2010Ͳ2011.
•
•
•
•
•
Extensiveleadershipexperienceofahighlycomplexglobalfinancialservicescompany
Experiencemanaginginternationalbusinessoperations
Auditcommitteefinancialexpert;significantexperiencemanagingCFOs
Significantmanagementdevelopment,compensationandsuccessionplanningexperience
MICHAELR.SPLINTER
Age:64
Directorsince2008
OtherPublicCompanyBoards:AppliedMaterials,Inc.
BoardCommittees:ExecutiveandManagementCompensation(Chair)
Mr.SplinterhasservedasExecutiveChairmanoftheBoardofDirectorsofAppliedMaterials,Inc.,agloballeaderin
nanomanufacturingtechnology™solutionsfortheelectronicsindustry,sinceSeptember2013.AtAppliedMaterials,
heservedasChairmanoftheBoardofDirectorsfromMarch2009ͲSeptember2013,CEOfromApril2003ͲSeptember
2013andPresidentfromApril2003ͲJune2012.Anengineerandtechnologist,Mr.Splinterisa40Ͳyearveteranofthe
semiconductorindustry.PriortojoiningAppliedMaterials,Mr.SplinterwasanexecutiveatIntelCorporation.
•
•
•
•
•
Leadershipofacomplexglobaltechnologybusiness
ExtensivebackgroundininternationalpubliccompanygovernanceataNasdaqͲlistedcompany
Significantinternationalbusinessoperationsexperience
Technology,cybersecurity,businessprocessimprovementandoperationalexcellenceexperience
/10
2015PROXYSTATEMENT
LARSR.WEDENBORN
Age:56
Directorsince2008
BoardCommittees:Audit
Mr.WedenbornwaselectedChairmanoftheNasdaqOMXNordicLtd.BoardinOctober2009.HeisCEOofFAMAB,
whichiswhollyownedbytheWallenbergFoundations.Hestartedhiscareerasanauditor.During1991Ͳ2000,hewas
DeputyManagingDirectorandCFOatAlfredBerg,aScandinavianinvestmentbank.HeservedwithInvestorAB,a
Swedishindustrialholdingcompany,asExecutiveVicePresidentandCFOfrom2000Ͳ2007.Mr.Wedenbornwasa
memberoftheBoardofOMXABpriortoitsacquisitionbyNasdaq.
•
•
•
•
•
Extensiveleadershipofahighlycomplexfinancialorganization
Auditcommitteefinancialexpert;MasterofEconomics,UniversityofUppsala
/11
2015PROXYSTATEMENT
DIRECTORCOMPENSATION
AnnualnonͲemployeedirectorcompensationisbaseduponacompensationyearbeginningandendinginMay.Staff
directorsdonotreceivecompensationforservingontheBoard.Thefollowingtableshowsthecompensationpolicyfor
nonͲemployeedirectorscurrentlyineffect.
ITEM
AnnualretainerforBoardmembers(otherthantheChairman)
MAY2014–MAY2015(1)
$80,000
AnnualretainerforBoardChairman
$205,000
AnnualequityawardforallBoardmembers(grantdatemarketvalue)
$115,000
AnnualAuditCommitteeChaircompensation
AnnualAuditCommitteemembercompensation
AnnualManagementCompensationCommittee Chaircompensation
AnnualManagementCompensationCommitteemembercompensation
AnnualNominating&GovernanceCommitteeChaircompensation
$25,000
$5,000
$25,000
$5,000
$15,000
Boardmeetingattendancefee(permeeting)
$1,500
Committeemeetingattendancefee(permeeting)
$1,500
(1) Theamountsinthistableremainedunchangedascomparedtothepriorcompensationyear,excepttheannualretainerfortheBoardChairman
increasedto$205,000from$180,000.
EachnonͲemployeedirectormayelecttoreceivetheannualretainerincash(payableinequalsemiͲannual
installments),equityoracombinationofcashandequity.Theannualequityawardandanyequityelectedaspartof
theannualretainerareawardedautomaticallyonthedateoftheannualmeetingofstockholdersimmediately
followingelectionandappointmenttotheBoard.Theseequityawardsvestinfulloneyearfromthedateofgrant.
EachnonͲemployeedirectoralsomayelecttoreceiveCommitteeChair,Committeememberand/ormeetingfeesin
cashorequity.CashpaymentsforCommitteeservicearemadeinalumpsumnearthebeginningofthecompensation
year.IfadirectorelectstoreceiveequityforCommitteeserviceinlieuofcash,theequitywillbeawardedonthedate
oftheannualmeetingofstockholdersandwillvestinfulloneyearfromthedateofgrant.CashpaymentsforBoard
andCommitteemeetingfeesaremadeinarrearsonasemiͲannualbasis.IfadirectorelectstoreceiveequityforBoard
andCommitteemeetingfeesinlieuofcash,theequitywillbeawardedonthedateofthenextannualmeetingof
stockholdersandwillvestinfullimmediately.
AllequitypaidtoBoardmembersconsistsofRSUs.Theamountofequitytobeawardediscalculatedbasedonthe
closingmarketpriceofourcommonstockonthedateoftheannualmeeting.Unvestedequityisforfeitedincertain
circumstancesuponterminationofthedirector’sserviceontheBoard.
DirectorsarereimbursedforbusinessexpensesandreasonabletravelexpensesforattendingBoardandCommittee
meetings.NonͲemployeedirectorsdonotreceiveretirement,healthorlifeinsurancebenefits.Nasdaqprovideseach
nonͲemployeedirectorwithdirectorandofficerliabilityinsurancecoverage,aswellasaccidentaldeathand
dismembermentandtravelinsuranceforandonlywhentravelingonbehalfofNasdaq.
/12
2015PROXYSTATEMENT
STOCKOWNERSHIPGUIDELINES
Underourstockownershipguidelines,nonͲemployeedirectorsmustmaintainaminimumownershiplevelinNasdaq
commonstockoffivetimestheannualcashretainer.Sharesownedoutright,throughsharedownershipandinthe
formofvestedandunvestedrestrictedstock,aretakenintoconsiderationindeterminingcompliancewiththesestock
ownershipguidelines.Exceptionstothispolicymaybenecessaryorappropriateinindividualsituations,andthe
ChairmanoftheBoardmayapprovesuchexceptionsfromtimetotime.Newdirectorshaveuntilfouryearsaftertheir
initialelectiontotheBoardtoobtaintheminimumownershiplevel.Allofthedirectorswhowererequiredtobein
compliancewiththeguidelinesonDecember31,2014wereincompliancewiththeguidelinesasofthatdate.
2014DIRECTORCOMPENSATIONTABLE
CHANGE
INPENSIONVALUE
AND
NONͲEQUITY
NONQUALIFIED
INCENTIVEPLAN
DEFERRED
ALLOTHER
COMPENSATION COMPENSATION COMPENSATION
($)
EARNINGS($)
($)
FEESEARNED
ORPAID
INCASH
($)(2)(3)
STOCK
AWARDS($)
(4)(5)(6)
OPTION
AWARDS
($)
CharleneT.Begley
$74,828
$115,017
–
–
–
–
$189,845
StevenD.Black
$53,500
$225,569
–
–
–
–
$279,069
BörjeE.Ekholm
$199,000
$115,017
–
–
–
–
$314,017
GlennH.Hutchins
$23,000
$202,581
–
–
–
–
$225,581
EssaKazim
$99,500
$115,017
–
–
–
–
$214,517
–
–
–
–
–
–
–
JohnD.Markese(7)
$225,000
$115,017
–
–
–
–
$340,017
EllynA.McColgan
$50,000
$195,053
–
–
–
–
$245,053
ThomasF.O’Neill
$99,500
$115,017
–
–
–
–
$214,517
JamesS.Riepe
$49,000
–
–
–
–
–
$49,000
MichaelR.Splinter
$46,000
$202,581
–
–
–
–
$248,581
LarsR.Wedenborn(8)
$113,764
$195,053
–
–
–
–
$308,817
NAME(1)
ThomasA.Kloet
TOTAL($)
(1) RobertGreifeldisnotincludedinthistableasheisanemployeeofNasdaqandthusreceivesnocompensationforhisserviceasadirector.For
informationonthecompensationreceivedbyMr.Greifeldasanemployeeofthecompany,see“CompensationDiscussionandAnalysis”and
“ExecutiveCompensationTables.”
(2) Thedifferencesinfeesearnedorpaidincashreportedinthiscolumnlargelyreflectdifferencesineachindividualdirector’selectiontoreceive
theannualretainerincash,RSUsoracombinationofcashandRSUs.ThiselectionismadeatthebeginningoftheBoardcompensationyearin
Mayandappliesthroughouttheyear.Inaddition,thedifferenceinfeesearnedorpaidalsoreflectsCommitteeserviceandmeeting
attendance.
(3) Asdiscussedabove,NasdaqallowsdirectorstoreceiveCommitteeChair,Committeememberand/ormeetingfeesinequity,ratherthancash.
Accordingly,Messrs.Black,HutchinsandSplinterhaveelectedtoreceivetheamountsreportedinthiscolumnintheformofequitythatwillbe
awardedinMay2015.
(4) TheamountsreportedinthiscolumnreflectthegrantdatefairvalueofthestockawardscomputedinaccordancewithFASBASCTopic718.
Theassumptionsusedinthecalculationoftheseamountsareincludedinnote12tothecompany’sauditedfinancialstatementsforthefiscal
/13
2015PROXYSTATEMENT
yearendedDecember31,2014includedinourannualreportonForm10ͲK.ThedifferencesintheamountsreportedamongnonͲemployee
directorsprimarilyreflectdifferencesineachindividualdirector’selectiontoreceiveaportionoftheannualretainerincashorRSUs.
(5) Thesestockawards,whichwereawardedonMay7,2014,representtheannualequityawardandanyportionoftheannualretainerthatthe
directorelectedtoreceiveinequity.EachnonͲemployeedirectorreceivedtheannualequityaward,whichconsistedof3,117RSUswithagrant
datefairvalueof$115,017.Messrs.Black,Hutchins,Splinter,WedenbornandMs.McColganelectedtoreceivealloftheirannualretainersin
equity,sotheyeachreceivedanadditional2,169RSUswithagrantdatefairvalueof$80,036foratotalgrantdatefairvalueof$195,053.In
addition,Messrs.Black,HutchinsandSplinterelectedtoreceiveCommitteeChair,Committeememberand/ormeetingfeesinequity,rather
thancash.Accordingly,Mr.Blackreceivedanadditional827RSUswithagrantdatefairvalueof$30,516andMessrs.HutchinsandSplinter
receivedanadditional204RSUswithagrantdatefairvalueof$7,528.
(6) TheaggregatenumberofunvestedandvestedsharesandunitsofrestrictedstockbeneficiallyownedbyeachnonͲemployeedirectorasof
December31,2014issummarizedinthefollowingtable:
NUMBEROFUNVESTEDRESTRICTED
SHARESANDUNITS
NUMBEROFVESTEDRESTRICTED
SHARESANDUNITS
CharleneBegley
3,117
–
StevenD.Black
5,286
10,560
BörjeE.Ekholm
3,117
23,033
GlennH.Hutchins
5,286
23,440
EssaKazim
3,117
21,357
ThomasA.Kloet
–
–
JohnD.Markese
3,117
56,781
EllynA.McColgan
5,286
15,034
ThomasF.O’Neill
3,117
13,831
–
31,777
MichaelR.Splinter
5,286
28,612
LarsR.Wedenborn
5,286
2,599
DIRECTOR
JamesS.Riepe
(7) FeesearnedbyDr.Markeseinclude$75,000forhisserviceasadirectorofourU.S.exchangesubsidiaries.
(8) FeesearnedbyMr.Wedenborninclude$37,264(€28,041)forhisserviceasChairmanoftheBoardofNASDAQOMXNordicLtd.Thisamount
wasconvertedtoU.S.dollarsfromeurosatanexchangerateof$1.3289pereuro,whichwastheaverageexchangeratefor2014.
/14
2015PROXYSTATEMENT
CORPORATEGOVERNANCE
ThefollowingsectionprovidesanoverviewofourcorporategovernancestructureandtheresponsibilitiesoftheBoard
andeachofitsCommittees.
GOVERNANCEDOCUMENTSANDCHARTERS
ThefollowingmaterialsrelatedtocorporategovernanceatNasdaqarereviewedregularlybytheBoard.These
materialsareavailableonourwebsite(see“OnlineResources”onpage69).Thesedocumentsarealsoavailable,
freeofcharge,bywritingtoJoanC.Conley,SeniorVicePresidentandCorporateSecretary,TheNASDAQOMX
Group,Inc.,805KingFarmBoulevard,Rockville,MD20850,orbyemail(corporatesecretary@nasdaq.com).
•
BoardofDirectorsDutiesandObligations
•
NasdaqBoardCommitteeCharters
•
CorporateGovernanceGuidelines
•
•
NasdaqCodeofConductfortheBoardof
Directors
ProceduresforCommunicatingwiththeBoard
ofDirectors
•
NasdaqCodeofEthics
THEBOARD’SPURPOSE
TheNasdaqBoardrepresentsandactsonbehalfofourstockholdersand
iscommittedtostrongcorporategovernancepolicies,practicesand
proceduresdesignedtomaketheBoardmoreeffectiveinexercisingits
oversightrole.WhiletheBoarddoesnothaveresponsibilityfordayͲtoͲ
daymanagementofthecompany,itstaysinformedaboutthecompany’s
businessandprovidesguidancetocompanymanagementthrough
periodicmeetings,sitevisitsandotherinteractions.TheBoardisdeeply
involvedinthecompany’sstrategicplanningprocess,leadership
development,successionplanningandoversightofriskmanagement.The
BoardhascreatedastrongCommitteestructuredesignedtoensure
effectiveandefficientBoardoperations.
ATTENDANCEATBOARDMEETINGS
TheBoardheld14meetingsduringtheyearendedDecember31,2014,andtheBoardmetinexecutivesessionwithout
managementpresentduringallofthosemeetings.Noneofthecurrentdirectorsattendedfewerthan75%ofthe
meetingsoftheBoardandthoseCommitteesonwhichthedirectorservedduringthe2014calendaryear.
ATTENDANCEATMEETINGSOFSTOCKHOLDERS
Nasdaq’spolicyistoencouragealldirectorstoattendannualandspecialmeetingsofourstockholders.Tenofthe
currentmembersoftheBoardattendedtheannualmeetingheldonMay7,2014.
/15
2015PROXYSTATEMENT
BOARD’SLEADERSHIPSTRUCTURE
InaccordancewithourCorporateGovernanceGuidelines,NasdaqseparatestherolesofChairmanoftheBoardand
CEO.NasdaqbelievesthatthisseparationofrolespromotesmoreeffectivecommunicationchannelsfortheBoardto
expressitsviewsonmanagement.Nasdaq’sCEO,RobertGreifeld,whohasovertwentyyears’experienceinthe
securitiesindustry,isresponsibleforthestrategicdirection,dayͲtoͲdayleadershipandperformanceofNasdaq.The
ChairmanofNasdaq’sBoard,BörjeE.Ekholm,whobringstotheBoardtheperspectiveofalargestockholder,provides
guidancetotheCEO,presidesovermeetingsandexecutivesessionsoftheBoardandservesastheprimaryliaison
betweentheCEOandtheotherdirectors.Webelievethatthisseparationofrolesandallocationofdistinct
responsibilitiestoeachrolefacilitatescommunicationbetweenseniormanagementandthefullBoardaboutissues
suchascorporategovernance,managementdevelopment,successionplanning,executivecompensationandcompany
performance.
BOARD’SRISKOVERSIGHTROLE
Nasdaq’smanagementhasdayͲtoͲdayresponsibilityfor:(i)identifyingrisksandassessingtheminrelationtoNasdaq’s
strategiesandobjectives,(ii)implementingsuitableriskmitigationplans,processesandcontrolsand(iii)appropriately
managingrisksinamannerthatservesthebestinterestsofNasdaq,itsstockholdersandotherstakeholders.Nasdaq
hasaGlobalRiskSteeringCommittee,comprisedofemployees,thatregularlyreviewsrisksformaterialityandrefers
significantriskstotheBoardorspecificBoardCommittees.TosupporttheworkoftheGlobalRiskSteeringCommittee,
NasdaqalsohasrecentlycreatedaTechnologyRiskSteeringCommittee,whichisresponsibleformonitoringsystems
risksacrosstheorganization,andaGlobalComplianceCouncil,whichmonitorsregulatoryandcorporatecompliance
risksacrossthecompany.
Nasdaq’sBoardhasultimateresponsibilityforoverseeingriskmanagementwithafocusonthemostsignificantrisks
facingthecompany.TheBoardisassistedinmeetingthisresponsibilitybyseveralBoardCommitteesasdescribed
below.Furthermore,nonͲmanagementdirectorsmeetinexecutivesessiononaregularbasiswithoutthepresenceof
managementtodiscussmatters,includingmatterspertainingtorisk.NasdaqdoesnotbelievethattheBoard’srolein
riskoversighthasaffecteditsleadershipstructure.
CODEOFETHICS:BOARDANDEMPLOYEES
WehaveadoptedtheNasdaqCodeofEthics,whichisapplicabletoallofouremployees,includingtheprincipal
executiveofficer,theprincipalfinancialofficerandthecontrollerandprincipalaccountingofficer,andcontractors.In
addition,wehaveaseparateNasdaqCodeofConductfortheBoard,whichcontainsprovisionsspecificallyapplicableto
directors.WepostamendmentstoorwaiversfromtheNasdaqCodeofEthics(totheextentapplicabletotheprincipal
executiveofficer,theprincipalfinancialofficerorthecontrollerandprincipalaccountingofficer)ortotheNasdaqCode
ofConductfortheBoardonourwebsite(see“OnlineResources”onpage69).Wealsodiscloseamendmentsorwaivers
tothecodesinanymannerotherwiserequiredbythestandardsapplicabletocompanieslistedonTheNasdaqStock
Market.
ANNUALINDEPENDENTBOARDANDMEMBEREVALUATIONS
TheBoardconductsanannualperformanceevaluationthroughanindependentconsultant.Thisprocess,whichis
overseenbytheNominating&GovernanceCommittee,includesbothareviewoftheBoardasawholeandmember
selfͲassessments.Amongotherthings,theevaluationassessestheeffectivenessoftheoperationsoftheBoardand
eachCommittee.
SUCCESSIONPLANNING
Onanannualbasis,theManagementCompensationCommittee,theBoardandtheCEOreviewthesuccessionplanning
andmanagementdevelopmentprogram.TheManagementCompensationCommitteereviewsthelongͲterm
successionplanfordevelopment,retentionandreplacementofseniorofficers.Inaddition,theCEOprepares,andthe
Boardreviews,ashortͲtermsuccessionplanthatdelineatesatemporarydelegationofauthoritytocertainofficersof
thecompany,ifalloraportionoftheseniorofficersshouldunexpectedlybecomeunabletoperformtheirduties.In
/16
2015PROXYSTATEMENT
conjunctionwiththeannualreportofthesuccessionplan,theCEOalsoreportsonNasdaq’sprogramforsenior
managementleadershipdevelopment.
BOARDCOMMITTEESANDRESPONSIBILITIES
ThestandingCommitteesoftheBoardinclude:theAuditCommittee,theExecutiveCommittee,theManagement
CompensationCommitteeandtheNominating&GovernanceCommittee.EachoftheseCommittees,otherthanthe
ExecutiveCommittee,iscomposedexclusivelyofdirectorsdeterminedbytheBoardtobeindependent.TheChairof
eachCommitteereportstotheBoardinChairman’sSessionorExecutiveSessiononactionstakenateachmeeting.
EachCommitteehastheauthoritytoretainindependentadvisers.EachCommitteehasacharterthatisavailableon
Nasdaq’swebsite(see“OnlineResources”onpage69).
AUDITCOMMITTEE
2014Meetings:10
JohnD.Markese(Chair)
CharleneT.Begley
EllynA.McColgan
LarsR.Wedenborn
PrimaryResponsibilities:
• OverseesNasdaq’sfinancialreportingprocessonbehalfoftheBoard.
• Appoints,retains,approvesthecompensationofandoverseestheindependent
registeredpublicaccountingfirm.
• AssiststheBoardbyreviewinganddiscussingthequalityandintegrityof
accounting,auditing,staffingandfinancialreportingpracticesatNasdaq.
• AssiststheBoardbyreviewingtheadequacyandeffectivenessofinternal
controlsoverNasdaq’sriskmanagementandregulatoryprogram.
• Reviewsallrelatedpartytransactions.
• AssiststheBoardinreviewinganddiscussingNasdaq’sglobalethicsand
corporatecomplianceprogramandconfidentialwhistleblowerprocess.
• AssiststheBoardinitsoversightoftheinternalauditfunction.
RiskOversightRole:
• Reviewsthefinancialinformation,thesystemsofinternalcontrols,financial
reportingandthelegalandcomplianceprocess.
• ReviewstheERMstructureandprocess.
Independence:
• EachmemberoftheAuditCommitteeisindependentasdefinedinRule10AͲ3
adoptedpursuanttotheSarbanesͲOxleyActof2002andinthelistingrulesofThe
NasdaqStockMarket.TheBoarddeterminedthatallofthemembersoftheAudit
Committeeare“auditcommitteefinancialexperts”withinthemeaningofSEC
regulations.Eachalsomeetsthe“financialsophistication”standardofThe
NasdaqStockMarket.
EXECUTIVECOMMITTEE
2014Meetings:None
GlennH.Hutchins(Chair)
BörjeE.Ekholm
RobertGreifeld
EssaKazim
JohnD.Markese
MichaelR.Splinter
• SubjecttothelimitationsinourByͲLaws,theExecutiveCommitteehasthe
generalpowerandauthorityoftheBoardtoactinthemanagementofits
businessandaffairs.
/17
2015PROXYSTATEMENT
MANAGEMENT
COMPENSATION
COMMITTEE
• Establishescompensationphilosophy.
• ReviewsallcompensationandbenefitprogramsapplicabletoNasdaq’sexecutive
officersannually.AnymaterialchangesarepresentedtothefullBoardfor
2014Meetings:6
approval.
MichaelR.Splinter(Chair)
• Reviews,andreferstotheBoardforapproval,thebasesalary,incentive
StevenD.Black
compensation,performancegoalsandequityawardsforexecutiveofficers.
BörjeE.Ekholm
• Reviewsandapprovesemploymentagreements,severancearrangementsand
GlennH.Hutchins
changeͲinͲcontrolagreementsforexecutiveofficers.Suchagreementsforthe
CEOalsoarereferredtothefullBoardforapproval.
• ReviewsandapprovesthebasesalaryandincentivecompensationforthosenonͲ
executiveofficerswithtargettotalcashcompensationinexcessof$750,000oran
equityawardvaluedinexcessof$600,000.
RiskOversightRole:
• Monitorstherisksassociatedwithelementsofthecompensationprogram,
includingorganizationalstructure,compensationplansandgoals,succession
planning,organizationaldevelopmentandselectionprocesses.
• EvaluatestheeffectthecompensationstructuremayhaveonriskͲrelated
decisions.
Independence:
• EachmemberoftheManagementCompensationCommitteeisindependentand
meetstheadditionaleligibilityrequirementssetforthinthelistingrulesofThe
NasdaqStockMarket.
NOMINATING&
GOVERNANCE
COMMITTEE
2014Meetings:7
BörjeE.Ekholm(Chair)
StevenD.Black
JohnD.Markese
EllynA.McColgan
• DeterminestheskillsandqualificationsnecessaryfortheNasdaqBoardand
developscriteriaforselectingpotentialdirectors.
• Identifies,reviews,evaluatesandnominatescandidatesforvacanciesonthe
NasdaqBoard.
• PerformsanannualreviewoftheoveralleffectivenessoftheBoard.
• Monitorscompanycompliancewithcorporategovernancerequirements.
• ReviewsandrecommendstheBoardandCommitteeleadershipstructure.
• ReviewsandrecommendstotheBoardcandidatesforelectionasofficerswith
therankofExecutiveVicePresidentorabove.
• TogetherwiththeManagementCompensationCommittee,annuallyreviewsthe
performanceoftheCEO.
RiskOversightRole:
• Overseesrisksrelatedtothecompany’sgovernancestructure,trends,policies
andprocesses.
• MonitorsindependenceoftheBoard.
Independence:
• EachmemberoftheNominating&GovernanceCommitteeisindependent,as
requiredbythelistingrulesofTheNasdaqStockMarket.
/18
2015PROXYSTATEMENT
CORPORATERESPONSIBILITY
Nasdaqexpandeditscommitmenttosmartandsustainablebusinesspracticesin
2014bycreatingarobustCorporateResponsibilityProgram.Thisprogramis
madeupofthreeseparateyetrelatedworkstreams:sustainability,philanthropy,
andvolunteerism.Weregularlyprovideoutreach,educationandassistanceto
dozensofNasdaqͲlistedpubliccompaniesinthesethreeareas—throughthe
creationandlaunchofcorporatesustainabilityprograms,underwritingoriginal
researchandcollaborativeprojectsorsimplyprovidingapublicforumforthe
discussionofcorporateresponsibilitybestpractices.
Nasdaqisalsoincreasinglyactiveinglobalthoughtleadershipwhenitcomesto
theexchangeindustry.WepartneredwiththeUnitedNationstocreatethe
SustainableStockExchangesInitiativeandserveasChairofthesustainability
workinggroupattheWorldFederationofExchanges.Botheffortsinvolvedozens
ofstockexchanges,frommanydifferentnationsandeconomiccircumstances,all
voluntarilyworkingtogethertofindconsensusonthematerialvalueof
responsibleandtransparentbusinesspractices.Weproactivelyengageour
employees,ourcustomers,ourregulatorsandevenotherexchangesinthequest
formoresustainableandinclusivebusinesspractices.
SUSTAINABILITY
CreatinglongͲtermvaluebyfocusingonkeyenvironmental,social,andgovernancepractices
•
Morethan40sustainabilityͲrelatedeventsatMarketSite,oursignaturelocationinNewYork
•
Integrationofanewandmorerobustenvironmentalmetricstrackingtool
•
Participationinvirtuallyallofthemajorsustainabilityreportingprograms
•
Quarterlywebinarsforissuers,focusedonenergymanagement,supplychainandrelatedtopics
•
Researchandanalysisofgreeninvestmenttrends,aswellasourownproductsuite
PHILANTHROPY
Usingtheeconomicpowerandglobalreachofourenterprisetocreatepositivechangeintheworld
•
Launchofanew,dollarͲforͲdollaremployeedonationmatchingprogram
•
GrantsandothercharitablegiftsviatheNasdaqEducationalFoundation(see“OnlineResources”onpage69).
•
CreationofanewNasdaqEntrepreneurialCenterinSanFrancisco(openingFall2015)
VOLUNTEERISM
Buildingstrongerconnectionsbetweenourbusiness,ouremployeesandthecommunitiesthatweserve
•
Paidleavetimeforemployeestovolunteerinlocal,charitableoreducationalinstitutions
•
Moredetailedtrackingandreportingofemployeevolunteeringhoursandcauses
•
MentoringthroughrelationshipswithNasdaqEducationalFoundationpartners
•
CreatedtheWomen’sInitiativeatNasdaqtoengage,educateandempowerfemaleprofessionalsacrossall
divisionsofNasdaqandchampionthefirm’sculturalvalues.Thisorganizationhasmorethan400members
locatedin18countries.
/19
2015PROXYSTATEMENT
PROPOSALII:APPROVALOFTHECOMPANY’SEXECUTIVE
COMPENSATIONONANADVISORYBASIS
TheBoardofDirectorsunanimouslyrecommendsavoteFORtheapprovalofthe
company’sexecutivecompensationonanadvisorybasis.
Weareaskingstockholderstoapprove,onanadvisorybasis,thecompany’sexecutivecompensationasreportedin
thisproxystatement.Thisvoteisnotintendedtoaddressanyspecificitemofcompensation,butrathertheoverall
compensationofournamedexecutiveofficersandtheexecutivecompensationprogramandpracticesdescribedin
thisproxystatement.
WeurgestockholderstoreadtheCompensationDiscussionandAnalysisbeginningonpage21ofthisproxystatement,
aswellastheexecutivecompensationtablesandnarrativebeginningonpage38.TheCompensationDiscussionand
AnalysisdescribesourexecutivecompensationprogramandthedecisionsmadebyourManagementCompensation
Committeein2014inmoredetail.Thecompensationtablesprovidedetailedinformationonthecompensationofour
namedexecutiveofficers.TheBoardandtheManagementCompensationCommitteebelievethatthecompensation
programforournamedexecutiveofficershasbeeneffectiveinmeetingthecoreprinciplesdescribedinthe
CompensationDiscussionandAnalysisinthisproxystatement,andhascontributedtothecompany’slongͲterm
success.
InaccordancewithSection14AoftheExchangeAct,andasamatterofgoodcorporategovernance,weareasking
stockholderstoapprovethefollowingadvisoryresolutionatthe2015annualmeetingofstockholders:
RESOLVED,thatthestockholdersofTheNASDAQOMXGroup,Inc.approve,onanadvisorybasis,the
compensationofNasdaq’snamedexecutiveofficers,asdisclosedintheproxystatementforNasdaq’s2015
annualmeetingofstockholderspursuanttothecompensationdisclosurerulesoftheSEC,includingthe
CompensationDiscussionandAnalysis,theexecutivecompensationtablesandotherrelatedtablesandnarrative
disclosure.
ThisadvisoryvoteisnotbindingontheBoardandtheManagementCompensationCommittee.AlthoughnonͲbinding,
theBoardandtheManagementCompensationCommitteewillreviewandconsidertheoutcomeofthevotewhen
makingfuturedecisionsregardingourexecutivecompensationprogram.
TheBoardhasadoptedapolicyprovidingforannualstockholderadvisoryvotestoapprovethecompany’sexecutive
compensation.Thenextadvisoryvotetoapproveexecutivecompensationwilloccuratthe2016annualmeetingof
stockholders.
/20
2015PROXYSTATEMENT
COMPENSATIONDISCUSSIONANDANALYSIS
ThisCompensationDiscussionandAnalysisprovidesasummaryofourexecutivecompensationphilosophyand
programsanddescribesthecompensationdecisionswehavemadeundertheseprogramsandthefactorsconsidered
inmakingthosedecisions.ThisCompensationandAnalysisfocusesonthecompensationofourCEOandtheother
namedexecutiveofficersfor2014.
Wedesignourexecutivecompensationprogramtorewardfinancialandoperationalperformance,effectivestrategic
leadershipandachievementofbusinessunitgoalsandobjectives,whicharekeyelementsindrivingstockholdervalue
andsustainablegrowth.Ourcompensationprogramisgroundedinbestpracticesandethicalandresponsibleconduct.
OurCompensationDiscussionandAnalysisisorganizedasfollows:
• BusinessPerformance
• CompensationDecisionMaking
• WhatWePayandWhy:ElementsofExecutiveCompensation
• RiskMitigationandOtherPayPractices
BUSINESSPERFORMANCE
Weachievedstrongfinancialandoperationalperformanceacrossmanyofourbusinessunitsin2014.Weachieved
recordresultswhilecontinuingtodiversifyourbusiness,investsignificantlyinfutureinitiatives,andintegrateour
recentacquisitions.Ourperformancein2014includedthefollowinghighlights.
(1)SeeAnnexAforareconciliationofnonͲGAAPfinancialmeasurestoourresultsasreportedunderU.S.GAAP.
KEYBUSINESSACHIEVEMENTS
• WeledallU.S.exchangeswith189IPOs,a50%increasewhencomparedtotheprioryear,andwelcomedatotal
of327newlistings.Wealsowon17listingvenueswitches.
• Duetoimprovedvolumeinthemarketsandourprogressinexpandingfunctionalityandproductofferings,our
netcashequitytradingrevenuesrose17.4%.
• Forthefifthconsecutiveyear,weledallexchangeoperatorsinconsolidatedU.S.equityoptionsmarketshare.
• OurDataProductsbusinessrevenuegrew6.1%yearͲoverͲyear,witha38%increaseinsubscribersforNasdaqBasic.
• Nasdaqindexeswerethebasisfor166exchangetradedproductswithover$99billioninassetsundermanagement.
• 98%ofS&P500and81%ofFTSEcompanieswereclientsofourTechnologySolutionsbusiness.
• OurMarketTechnologybusinesshadarecordyearforneworderintake,announcingnewcontractswithThe
JapanExchangeGroup,theSingaporeExchangeandthePhilippinesStockExchange,amongothers.
/21
2015PROXYSTATEMENT
STOCKHOLDERRETURN
• Returned$276milliontoourinvestorsthroughrepurchasesofourcommonstockandthepaymentofquarterly
cashdividends.
• 22%yearͲoverͲyeargrowthinourstockprice,significantlyoutperformingtheS&P500.
COMPENSATIONDECISIONMAKING
KEYGOVERNANCEFEATURESOFEXECUTIVECOMPENSATIONPROGRAM
Thefollowingtablesummarizesthespecificfeaturesofourexecutivecompensationprogram.Webelieveourexecutive
compensationpracticesdriveperformanceandserveourstockholders’longͲterminterests.
WHATWEDO
+ Wepayforperformance.
WHATWEDON’TDO
– Wedonotguaranteebonuspaymentsforour
namedexecutiveofficers.
+ Wehaverobuststockownershipguidelines.
– WedonotallowhedgingorpledgingofNasdaq
stock.
+ Wehave“clawback”policies.
– Wenolongerawardstockoptions.
+ Weprovidechangeincontrolprotectionthat
– WedonotpaytaxgrossͲupsonseverance
requiresa“doubletrigger.”
+ Weprovideonlylimitedperquisites.
arrangements.
– Wedonotprovideongoingsupplementalexecutive
retirementplans;allbenefitshavebeenfrozen.
+ Weconductacomprehensiveannualrisk
assessmentofourcompensationprogram.
– WedonotpermitreͲpricingofunderwaterstock
options.
COMPENSATIONPHILOSOPHY
WehaveendeavoredtocreateaperformanceͲbasedcompensationprogramthatmeetstheneedsofourglobal
companyanditsstockholders.Onanannualbasis,theManagementCompensationCommitteereviewsNasdaq’s
compensationphilosophy,programsandpractices.ThefollowingcoreprinciplesreflecttheManagement
CompensationCommittee’scurrentcompensationphilosophy:
x
ThecompensationprogramcreateslongͲtermstockholdervaluebyfosteringanownershipculture.We
promoteemployeestockownership,andownerbehavior,bygrantingequitytoallemployeesandproviding
theabilitytobuysharesthroughourESPP.
x
Thecompensationprogramfocusesonkeybusinessobjectives.Ourcompensationprogramstartswith
strategicandfinancialgoalsandobjectives,whichinformallcompensationdecisions.Compensationdecisions
arealsostronglyinfluencedbyclientfocus,regulatorycomplianceandethicalbehavior.
x
ThecompensationprogramsupportsahighͲperformanceenvironmentviaperformanceͲbasedrewards.
VariablepayisemphasizedoverfixedpaythroughparticipationofallemployeesinannualandlongͲterm
incentiveplans.
/22
2015PROXYSTATEMENT
x
Thecompensationprogramreinforcestheimportanceofmeetingand/orexceedingperformancetargets
throughsuperiorawardsforsuperiorperformanceandthroughdifferentiatedawardsbasedon
performanceachieved.However,compensationplansandarrangementsdonotencourageexcessiveriskͲ
takingbymanagement.
x
ThecompensationprogramenablesNasdaqtocompeteeffectivelyfortalent.Theprogramisdesignedto
attract,motivateandretaintalented,highͲperformingindividualswhoarewillingtocommittooursuccess
andtobuildlongͲtermstockholdervalue.
x
Wecommunicatecompensationobjectivesandprogramclearly.Ongoingemployeeeducationalprograms
ensurethatthecompensationobjectivesandprogramarewellunderstoodandserveasaneffective
motivationaltool.
Ourphilosophyisbasedonthefollowingguidingprinciples.Eachindividualcomponentofcompensationisconsidered
independentlyandisnotbasedonaformula.Eachcomponent,however,isintendedtobecomplementarytothe
overallcompensationpackageawardedtotheexecutive.
PAYFORPERFORMANCE
RETENTION
COMPETITIVEMARKETANALYSIS
LongͲtermtimeͲbasedvesting
featuresensurethatanemployee
mustremainwiththecompanyfora
periodoftimetoreceivevaluefrom
thegrant.
Totalcompensationshouldbe
sufficientlycompetitivewithindustry
peerstoattractandretainexecutives
withsimilarlevelsofexperience,skills,
educationandresponsibilities.
Asubstantialportionofcompensation
shouldbevariableor“atrisk”and
directlylinkedtoindividual,company
andbusinessunitperformance.
INTERNALEQUITY
COLLATERALIMPLICATIONS
STOCKHOLDERALIGNMENT
Compensationshouldtakeintoaccount
thedifferentlevelsofresponsibilities
andperformanceamongourexecutives
andbetweenourCEO,whois
responsiblefortheentireorganization,
andourotherexecutives,whoare
responsibleforafunctionalareaora
lineofbusiness.
Ourtotalcompensationmix
encouragesexecutivestotake
appropriateriskstoimproveour
performanceandbuildlongͲterm
stockholdervalue.
Thefinancialinterestsofexecutives
shouldbealignedwiththelongͲterm
interestsofourstockholdersthrough
stockͲbasedcompensationand
performancemetricsthatcorrelate
withlongͲtermstockholdervalue.
SAYONPAYRESULTSANDSTOCKHOLDEROUTREACH
EachyearwecarefullyconsidertheresultsofourSayonPayadvisoryvotefromtheprioryear.Atour2014annual
meetingofstockholders,over98%ofthevotescastwereinfavoroftheadvisoryvotetoapproveexecutive
compensation.Wefeeltheseresultsdemonstratedsignificantstockholdersupportofourcompensationprogram’s
designandgoals,andwetookintoaccounttheresultsofthisadvisoryvotewhenmakingcompensationdecisions
/23
2015PROXYSTATEMENT
throughtheremainderof2014andintoearly2015.InadditiontotheSayonPayresults,wealsoconsidermanyother
factorsinevaluatingourexecutivecompensationprograms,includingourpayforperformancephilosophyanda
competitivemarketanalysisofpeercompanies.ConsistentwithourSayonPayresultsandtheseotherfactors,in2014
weretainedthecoreelementsofourexecutivecompensationprogram,policiesanddecisionsandbelievethatour
programscontinuetoappropriatelyincentivizeourseniormanagement.
InadditiontotheperspectiveprovidedbytheSayonPayresults,wealsocarefullysolicitandconsiderfeedbackfrom
ourstockholdersonexecutivecompensation,corporategovernanceandotherissuesthroughouttheyear.We
welcomeinputfromourstockholdersonourexecutivecompensationprogramthroughthecommunicationprocess
discussedin“StockholderCommunicationwithDirectors.”
COMPENSATIONDETERMINATIONS
Wehaveestablishedaprocessforevaluatingtheperformanceofthecompany,theCEOandothernamedexecutive
officersforcompensationpurposes.Onanannualbasis,theManagementCompensationCommittee,theBoardand
Nominating&GovernanceCommitteereviewourCEO’sperformanceinexecutivesession.Aspartoftheirdeliberative
process,theManagementCompensationCommitteeandBoardevaluateourCEO’sperformanceagainstthepreͲ
establishedcorporategoalsanddetermineappropriateCEOcompensation.ThefactorsconsideredincludeourCEO’s
performanceagainsthisannualperformanceobjectives,theperformanceofthecompany,thequalityand
developmentofthemanagementteamandthemanagementoftheCEOandexecutivesuccessionplan.
Withthesupportofthehumanresourcesdepartment,ourCEOdevelopscompensationrecommendationsforeachof
thePresidentsandExecutiveVicePresidentsforconsiderationbytheManagementCompensationCommitteeandthe
Board.Aspartofthisprocess,ourCEOmeetsindividuallywitheachexecutivetodiscusshisorherperformanceagainst
preͲestablishedobjectivesdeterminedduringthepreviousyear,aswellasperformanceobjectivesanddevelopment
plansforthecomingyear.Thismeetinggiveseachexecutiveanopportunitytopresenthisorherperspectiveofhisor
herperformanceandpotentialobjectivesandchallengesfortheupcomingyear.OurCEOpresentstheresultsofthe
meetingswitheachexecutivetotheManagementCompensationCommitteefortheirreviewandconsiderationaspart
oftheirdeliberationprocess.
COMPETITIVEPOSTITIONING
Toevaluatetheexternalcompetitivenessofourexecutivecompensationprogram,wecomparecertainelementsofthe
programtosimilarelementsusedbypeercompanies.Insetting2014compensationlevels,theManagement
CompensationCommitteeusedacomprehensivepeergroup,consistingof20companies,forcompetitivemarket
analysisofthecompensationprogramforournamedexecutiveofficers.Webelieveusinganddisclosingapeergroup
supportsgoodgovernanceandprovidesvaluableinputintocompensationlevelsanddesign.
Thepeergrouphasremainedthesameforthepastseveralyears.Wheninitiallyformingthepeergroup,weconsidered
potentialpeersamongbothdirectindustrycompetitorsandcompaniesinrelatedindustrieswithsimilartalentneeds.
Afteridentifyingpotentialpeersonthisbasis,weusedthefollowingsevenscreeningcriteriatoselectappropriatepeer
companies:
•
•
•
•
revenuesize;
marketcapitalizationsize;
financialperformance;
directexchangecompetitors;
•
•
•
financialservicescompanies;
technologyͲdependentcompanies;and
companieswithglobalcomplexity.
Eachofthesefactorswasinitiallyweightedequallytodevelopamorerefinedlistofcompaniesforconsideration.We
thenfurtherreviewedeachremainingcompanytodetermineitsappropriatenessforthefinalpeergroupwitha
particularfocusonidentifyingmeaningfultalentpeers.Certaincompanieswereeliminatedbecauseoffactorssuchasa
significantlydifferentmarketcapitalization,limitedcompetitivepositionforexecutivetalentorlimitedglobal
complexityrelativetoNasdaq.
/24
2015PROXYSTATEMENT
WebelievethecurrentpeergroupincludesanaccuraterepresentationofNasdaq’sindustrycompetitorsandsizeͲ
relevant,talentͲfocusedcomparators.Inaddition,webelievethatyearͲoverͲyearconsistencyinpeergroupusageis
desirableforreviewingtrendsinmarketpaymovement.
Thepeergroupconsistsofthefollowingcompanies:
• AutomaticDataProcessing,
Inc.
• BGCPartnersInc.
• CBOEHoldings,Inc.
• CMEGroupInc.
• DeutscheBörse
• DiscoverFinancialServices
• DSTSystems,Inc.
• E*TRADEFinancialCorporation
• FidelityNationalInformation
Services,Inc.
• Fiserv,Inc.
• IntercontinentalExchange,Inc.
• InvescoLtd.
• LeggMason,Inc.
• LondonStockExchangeGroupplc
• MasterCardIncorporated
• NYSEEuronext(removedfor2015
uponacquisition)
• TDAmeritradeHolding
Corporation
• TMXGroupInc.
• TheCharlesSchwabCorporation
• VisaInc.
Inadditiontothepeergroup,wealsotakeintoaccountthatNasdaqfacescompetitionfortalentfromprivatefirms,
suchashighfrequencyandothersmalltradingfirmsandprivateequityfunds,forwhichpubliccompensationdatais
notavailable.
Peergroupdataservesasonlyonereferencepointinevaluatingourexecutivecompensationprogram.Weusethis
datatoseehowvariouselementsofourexecutivecompensationprogramcomparetoothercompanies.However,we
donotsetthecompensationofourexecutivesbasedonthisdataortargetexecutivecompensationtoaspecific
percentileofthecompensationsetbyourcompetitors.Instead,thecomparisonisconductedsolelytodetermineifthe
compensationiscompetitivetothemarket.Eachexecutiveisevaluatedindividuallybasedonskills,knowledge,
performance,developmentpotentialand,intheManagementCompensationCommittee’sbusinessjudgment,the
valueheorshebringstotheorganizationandNasdaq’sretentionrisk.
CEO’SROLEINTHEEXECUTIVECOMPENSATIONPROCESS
Mr.GreifeldregularlyattendsManagementCompensationCommitteemeetingsattheinvitationoftheManagement
CompensationCommittee.Mr.GreifeldprovideshisperspectivetotheManagementCompensationCommittee
regardingexecutivecompensationmattersgenerallyandthespecificperformanceoftheotherexecutiveofficers.
However,inaccordancewiththelistingrulesofTheNasdaqStockMarket,Mr.Greifelddoesnotvoteonexecutive
compensationmattersorattendexecutivesessionsoftheManagementCompensationCommitteeorBoard,and
Mr.Greifeldisnotpresentwhenhisowncompensationisbeingdiscussedorapproved.
ROLEOFCOMPENSATIONCONSULTANTS
In2014,ourHumanResourcesDepartmentengagedMeridianCompensationPartnerstoassiststaffingatheringdata,
reviewingbestpracticesandmakingrecommendationstotheManagementCompensationCommitteeaboutour
executivecompensationprogram.MeridiandoesnotprovideanyotherservicestoNasdaqotherthanexecutive
compensationconsulting.MeridiandoesnotdirectlyadvisetheManagementCompensationCommitteeorattend
meetings.In2014,wepaidMeridian$19,123infeesfordeterminingorrecommendingtheamountorformof
executiveanddirectorcompensationand$154,520infeesforotherservices.
TALLYSHEETS
WhenrecommendingcompensationfortheCEOandothernamedexecutiveofficers,theManagementCompensation
Committeereviewstallysheetsthatdetailthevariouselementsofcompensation,includingequitycompensation,for
eachexecutive.Thesetallysheetsareusedtoevaluatetheappropriatenessofthetotalcompensationpackage,to
compareeachexecutive’stotalcompensationopportunitywithhisorheractualpayoutandtoensurethatthe
compensationappropriatelyreflectsthecompensationprogram’sfocusonpayforperformance.
/25
2015PROXYSTATEMENT
WHATWEPAYANDWHY:ELEMENTSOFEXECUTIVECOMPENSATION
FIXED
ELEMENT
BaseSalaries
DESCRIPTION
• Fixedamountofcompensationfor
serviceduringtheyear
OBJECTIVES
• Rewardscopeofresponsibility,
experienceandindividualperformance
• AtͲriskcompensation,dependentongoal • Promotestrongbusinessresultsby
rewardingvaluedrivers,withoutcreating
achievement
Annual
anincentivetotakeexcessiverisk
• FormulaͲdrivenannualincentivelinkedto
Incentive
• Serveaskeycompensationvehiclefor
corporatefinancialandothergoalsand
Compensation
rewardingresultsanddifferentiating
businessunitstrategicobjectives
individualperformanceeachyear
ATͲRISK
BENEFITS
SEVERANCE
OTHER
• Awardvaluesaregrantedbasedon
• Motivateandrewardexecutivesfor
marketcompetitivenormsandindividual
outperformingpeersoverseveralyears
performance
• Ensurethatexecutiveshaveasignificant
LongͲTerm
• PSUsareearnedandvestedafterathreeͲ
stakeinthelongͲtermfinancialsuccessof
yearperformancecycle
thecompany,alignedwiththe
Incentive
stockholderexperience
Compensation • PSUspaidinsharesofcommonstock
uponvestingbasedonrelativeTSR
• PromotelongerͲtermretention
rankingcomparedtopeersandtothe
broadmarket,overeachcycle
Retirement
andHealth
and
Welfare
• 401(k)Planwithcompanymatch,plus
additionaldiscretionarycontributions
basedonyearsofservice
• Comprehensivewelfarebenefits
• Frozenpensionplan,frozenSERPand
discontinuedSupplementalERCplan
• ProvidemarketͲcompetitivebenefitsto
attractandretaintoptalent
• Frozenplansreflectlegacyarrangements
• Severanceandrelatedbenefitspaidupon • Assistinattractingtoptalent
terminationwithoutcauseorresignation • Preserveexecutiveobjectivitywhen
forgoodreasonfollowingachangein
Limited
consideringtransactionsinthebest
control
interestofstockholders
Severance
Arrangements • Equityvestingprovisionsupon
• Retentionofexecutivesthroughachange
terminationpostͲchangeincontrol
–
incontrol
ChangeIn
• Equityprovisionskeepexecutiveswhole
Control
insituationswheresharesmaynolonger
existorawardscannototherwisebe
replaced
• Limitedamountsunderemployment
Limited
arrangementswithsomeexecutive
Severance
Arrangements officers
• Discretionaryguidelines,forinvoluntary
–
terminationswithoutcause
Other
• Assistinattractingtoptalent
• Providetransitionassistanceif
employmentendsinvoluntarily
• Allowthecompanytoobtainreleaseof
employmentͲrelatedclaims
• Limitedadditionalbenefitsprovidedto
certainexecutives,includingfinancial
counseling,annualhealthexams,
supplementalinsurance(nonͲU.S.),and
caranddrivertotheCEO
• Providenominaladditionalassistance
thatallowsexecutivestofocusontheir
duties
Limited
Perquisites
/26
2015PROXYSTATEMENT
Wehavethreeelementsof
totaldirectcompensation:
basesalary,cashincentive
awardsandlongͲterm
equitycompensation.As
illustratedinthe
accompanyingchart,in
2014,90%ofthenamed
executiveofficers’total
directcompensationwas
performancebasedoratͲ
risk.63%wasintheform
oflongͲtermequity
compensation,while27%
relatedtocashincentive
awardsand10%relatedto
basesalary.
BASESALARY
WenormallyreviewbasesalariesonanannualbasisinDecember.Inaddition,wemaymakeadjustmentstobase
salariesduringtheyearinresponsetosignificantchangesinanexecutive’sresponsibilitiesoreventsthatwouldimpact
thelongͲtermretentionofakeyexecutive.Salariesareestablishedatlevelscommensuratewitheachexecutive’stitle,
positionandexperience,recognizingthateachexecutiveismanagingacomponentofacomplexglobalcompany.
UnderthetermsofMr.Greifeld’semploymentagreement,hisbasesalaryfor2014was$1million,whichhasremained
unchangedsince2006,consistentwiththetermsofhisemploymentagreementandtheprovisionsofSection162(m)of
theCodethatlimittaxdeductibilityfornonͲperformanceͲbasedcompensation.
During2014,Mr.Jochumsen’sbasesalarywasincreasedwhenhewaspromotedtoPresidentandrelocatedtothe
UnitedStates.Asaresultofhischangeinresponsibilities,Mr.Jochumsenenteredintoanewemploymentagreement
thatsethisbasesalaryat$600,000.
Thefollowingtableshowseachnamedexecutiveofficer’sbasesalaryatDecember31,2014and2013.
BASESALARYAT
DECEMBER31,2014
BASESALARYAT
DECEMBER31,2013
$1,000,000
$1,000,000
LeeShavel
$500,000
$500,000
AdenaT.Friedman
$750,000
–
HansͲOleJochumsen(1)
$600,000
$516,096
JohnL.Jacobs
$475,000
$475,000
RobertGreifeld
(1) Mr.Jochumsen’s2013basesalaryof3,360,000SwedishkronaisconvertedintoU.S.dollarsatanexchangerateof$0.1536perkrona,which
wastheaverageexchangeratefor2013.
/27
2015PROXYSTATEMENT
ANNUALINCENTIVECOMPENSATION
AnnualperformanceͲbasedcashincentivesareanintegralpartofourexecutivecompensationprogram.Ournamed
executiveofficersreceivesuchawardsthroughourECIP.
PlanͲBasedTargetAwardOpportunities.Atthebeginningofeachyear,targetannualcashincentiveaward
opportunitiesareestablishedforournamedexecutiveofficers.Consistentwithhisemploymentagreement,
Mr.Greifeld’stargetannualcashincentiveawardopportunityfor2014was210%ofbasesalary.For2014,thetarget
annualcashincentiveawardopportunitiesforeachoftheothernamedexecutiveofficersweresetatamountsranging
from$700,000to$1,250,000,whichrepresents147%to167%ofbasesalary,basedonanassessmentofeachofficer’s
positionandresponsibilities,thecompetitivemarketanalysisandthecompany’sretentionobjectives.
Thefollowingtargetincentiveopportunitieswereadjustedin2014:
•
Mr.Jochumsen’stargetincentivecompensationwasincreasedinconnectionwithhispromotiontoPresident.
•
Mr.Jacobs’targetincentivecompensationwasincreasedtoreflectincreasedresponsibilitiesassociatedwith
his2013promotiontoExecutiveVicePresident,GlobalInformationServices,andtobetteralignwith
competitiveexternalnorms.
Thefollowingtableshowseachnamedexecutiveofficer’stargetannualincentiveopportunityin2014and2013.
2014TARGETANNUALINCENTIVE
OPPORTUNITY
2013TARGETANNUALINCENTIVE
OPPORTUNITY
$2,100,000
$2,100,000
$750,000
$750,000
AdenaT.Friedman
$1,250,000
N/A
$1,000,000
$768,000
$700,000
$600,000
RobertGreifeld
LeeShavel
JohnL.Jacobs
(1)
Mr.Jochumsen’s2013targetannualincentiveopportunityisconvertedfromSwedishkronaintoU.S.dollarsatanexchangerateof$0.1536
perkrona,whichwastheaverageexchangeratefor2013.
PerformanceGoals.Theannualcashincentiveawardpaymentsforourexecutivesarebasedontheachievementof
preͲestablishedperformancegoals.TheCEOselectsandrecommendsgoalsforeachPresidentandExecutiveVice
Presidentbasedontheirareasofresponsibilityandinputfromeachexecutive.TheManagementCompensation
CommitteeandtheBoardreviewandconsiderourCEO’srecommendationsandapprovethegoalsforthecomingyear
afteridentifyingtheobjectivesmostcriticaltoourfuturegrowthandmostlikelytoholdexecutivesaccountableforthe
operationsforwhichtheyareresponsible.
Theannualcashincentiveawardsaretiedtoresultsinthefollowingareas:
•
•
fivecorporateobjectives,including:
o operatingincome(runrate),whichmeasuresbusinessefficiencyandprofitability;
o netrevenue,whichmeasurestheabilitytodriverevenuegrowth;
o enterprisesystemresiliency,whichmeasuresconcentrationrisk,systemstabilityandfailover/disaster
recovery;
o enterprisedevelopment,whichmeasuresleaderdevelopmentandsuccession,andoverallemployee
satisfactionandmotivation;and
o enterpriseemployeeengagement,whichmeasuresoverallemployeesatisfactionandmotivation;and
businessunitstrategicobjectives,whicharedefinedbusinessunitͲspecificgoalsthatcontributetothe
company’sshortandlongͲtermperformance.
/28
2015PROXYSTATEMENT
Operatingincome(runrate)andnetrevenuearethecompany’sprimarymeasuresofshortͲtermbusinesssuccessand
keydriversoflongͲtermstockholdervalue.Operatingincome(runrate)andnetrevenuetargetsaresetatthe
beginningofeachyear,aspartofthecompany’sannualbudgetingprocess,andaresubjecttoadjustmentfor
transactionsandotherextraordinaryevents.Thesystemresiliency,leadershipdevelopmentandemployee
engagementobjectivesareestablishedatthebeginningoftheyearbytheManagementCompensationCommitteeand
Boardtofocustheexecutiveteamoncertainenterpriseinitiatives.
Businessunitstrategicobjectivesalsoareestablishedatthebeginningoftheyear,andaresubjecttoadjustmentfor
transactionsandotherextraordinaryevents.ThebusinessunitstrategicobjectivesconsistoffinancialandnonͲfinancial
strategicobjectivesspecifictothebusinessunit.TheManagementCompensationCommitteeandBoardsetthe
businessunitstrategicobjectivestoreflectthekeyresponsibilitiesofeachexecutiveandincentfocusonparticular
objectivesin2014.
Wesetgoalsatlevelswherethemaximumpayoutwouldbedifficulttoachieveandbeyondbudgetassumptions.The
followingtableshowseachnamedexecutiveofficer’sperformanceobjectivesfor2014andtherelativeweightingof
theseobjectives.
CORPORATE
OPERATING
INCOME
(RUNRATE)
CORPORATE
NETREVENUE
ENTERPRISE
SYSTEM
RESILIENCY
ENTERPRISE
DEVELOPMENT
&ENGAGEMENT
ENTERPRISE
EMPLOYEE
ENGAGEMENT
BUSINESS
UNIT
FINANCIAL
AND
STRATEGIC
OBJECTIVES
RobertGreifeld
55%
20%
15%
10%
0%
0%
LeeShavel
45%
10%
0%
0%
10%
35%
AdenaT.Friedman
10%
10%
0%
0%
5%(1)
75%
HansͲOleJochumsen
10%
10%
0%
0%
10%
70%
JohnL.Jacobs
10%
10%
0%
0%
10%
70%
(1)5%weightingreflectsmidͲyearstartdateandimpactonemployeeengagement.
PotentialPayouts.Payoutsaredeterminedaftertheendoftheyearandarebasedonthesumof(i)actual
performanceundereachcorporateobjectiveand(ii)actualperformanceagainstanexecutive’sbusinessunitstrategic
objectives.Eachgoalapplicabletothenamedexecutiveofficersfor2014hadaminimum,targetandmaximum
performancelevel.
Scoringofeachgoalisbasedonactualgoalachievementcomparedtothetarget.In2014,payoutsoneachgoalcould
varybetween0%and200%ofthetarget.However,thenonͲfinancialgoalsweresubjecttoafundingmodifieraligned
withtheachievementofeithercorporateorbusinessunitfinancialgoals.Thislimitationensuresthatthepayoutof
overachievementagainstnonͲfinancialgoalsisalignedwithfinancialresults.
Payoutsundertheincentivecompensationprogramalsotakeintoaccountethicalandresponsibleconduct,andawards
aresubjecttoadjustmentatthefulldiscretionoftheManagementCompensationCommittee.
/29
2015PROXYSTATEMENT
CorporateObjectivesPerformancevs.Goals.Thetablebelowsummarizesthe2014corporateobjectives.
MINIMUM
(0%PAYOUT)
TARGET
(100%PAYOUT)
MAXIMUM
(200%
PAYOUT)
NASDAQ’S
RESULTSFOR
2014AS
MEASUREDFOR
COMPENSATION
PURPOSES
$792m
$843mͲ$863m
$918m
$873.6m
119%
$1,990m
$2,075mͲ
$2,105m
$2,190m
$2,088.5m
100%
EnterpriseEmployee
Engagement
5%
improvement
10%
improvement
15%
improvement
10%
improvement
100%
EnterpriseLeadership
andEngagement
5%
improvement/
Leadership
Development
Progress
10%
improvement/
Leadership
Development
Progress
15%
improvement/
Leadership
Development
Progress
150%
performance
144%
Allbusiness
unitsmeetfloor
performanceof
resiliencygoals
Allbusiness
unitsmeet
target
performanceof
resiliencygoals
Allbusiness
unitsmeet
ceiling
performanceof
resiliencygoals
197%
performance
144%
CORPORATEOBJECTIVE
OperatingIncome
(RunRate)(1)
NetRevenue(1)
EnterpriseSystem
Resiliency
PAYOUT
PERCENTAGEOF
TARGET
INCENTIVE
AWARD
AMOUNT(2)
(1)
Forcompensationpurposes,operatingincome(runrate)andnetrevenueexcludetheeffectsofforeignexchange.Operatingincome(run
rate)alsoexcludesnonͲrecurringexpenseitemsrelatingtothefollowing:integrationexpensesrelatedtorecentlyacquiredbusinesses,a
chargerelatedtothereversalofareceivableunderataxsharingagreementwithanunrelatedthirdparty,andotherexpenses.Asaresult,
thesecalculationsdifferfromtheU.S.GAAPcalculationsofoperatingincomeandrevenueslesstransactionͲbasedexpensesreportedin
ourannualreportonForm10ͲK.
(2)
Forsomegoals,overachievementfundingamountwascappedbyoperatingincome(runrate)results.
/30
2015PROXYSTATEMENT
2014BusinessUnitFinancialandStrategicObjectivesPerformancevs.Goals.TheManagementCompensation
CommitteeandBoardassessedeachofficer’sachievementofthebusinessunitstrategicobjectivesin2014,as
describedbelow.
NAMED
EXECUTIVE
OFFICER
LeeShavel
GOAL
GOAL
WEIGHTING
SCOREASA
PERCENTOF
TARGET
FUNDEDSCORE
ASAPERCENT
OFTARGET(1)
CorporateStrategy
10%
150%
144%
Price/EarningsGrowth
10%
188%
188%
AcquisitionandShareRepurchaseROICPerformance
10%
50%
50%
RiskManagement(Resiliency)
5%
166%
166%
GlobalTechnologySolutionsMargin
30%
82%
82%
CorporateClientGroupListingMargin
20%
173%
173%
GlobalInformationSolutionsMargin
20%
174%
174%
IPOCrossResiliencyandEnhancements
5%
200%
200%
GlobalTrading&MarketServicesProfitability
40%
200%
200%
GlobalTrading&MarketServicesRevenue
20%
180%
180%
GlobalTrading&MarketServicesSystemsResiliency
10%
200%
144%
GlobalInformationServicesProfitability
35%
200%
200%
GlobalInformationServicesRevenue
30%
200%
200%
GlobalInformationServicesSystemsResiliency
5%
200%
144%
AdenaT.
Friedman
HansͲOle
Jochumsen
JohnL.Jacobs
(1)
Forsomegoals,overachievementfundingiscappedbyoperatingincome(runrate)results.
AwardPayouts.Inearly2014,theManagementCompensationCommitteeandBoarddeterminedthefinallevelsof
achievementforeachofthegoalsandapprovedpayoutamounts.
In2014,theactualannualcashincentiveawardpaymentsforourCEOandCFOwerelowerthanthosein2013.These
resultsreflectthatperformanceunderthe2014corporateoperatingincome(runrate)goal,whichwasestablished
basedonthecompanyfinancialbudget,wasnotasstrongasin2013.Thecashincentivepaymentsfortheothernamed
executiveofficers(otherthanMs.Friedmanwhojoinedthecompanyin2014)increasedgenerallyin2014dueto
promotionsthatresultedinanexpansionofresponsibilitiesandincreasesintargetbonusopportunities.
2014ECIPAWARDPAYOUT
2013ECIPAWARDPAYOUT
$2,550,450
$2,794,050
$900,375
$1,135,500
AdenaT.Friedman
$1,636,250
N/A
HansͲOleJochumsen
$1,623,000
$1,383,168
JohnL.Jacobs
$1,183,700
$1,020,600
RobertGreifeld
LeeShavel
/31
2015PROXYSTATEMENT
LONGͲTERMINCENTIVECOMPENSATION
LongͲtermincentivecompensationconsistsentirelyofequityawards.Since2012,wehavegrantedequityawardsto
seniormanagementunderaperformanceͲbasedlongͲtermincentiveprogramthatfocusesonTSR.Consistentwithour
payforperformancephilosophy,thisprogramrepresents100%ofournamedexecutiveofficer’slongͲtermstockͲbased
compensation.
Undertheprogram,eachnamedexecutiveofficerreceivedagrantofPSUssubjecttoathreeͲyearcumulative
performanceperiodbeginningonJanuary1,2014andendingonDecember31,2016.Performanceisdeterminedby
comparingNasdaq’sTSRtotwogroupsofcompanies,eachweighted50%.OnegroupconsistsofallS&P500
companies,andtheothergroupconsistsofthefollowingexchangecompanies:
•
•
•
•
•
ASXLimited
BGCPartners,Inc.
BM&FBovespa
BolsaMexicanadeValores
BolsasYMercadosEspanoles
•
•
•
•
•
CBOEHoldings,Inc.
CMEGroupInc.
DeutscheBörseAG
HongKongStockExchange
ICAPplc
•
•
•
•
•
IntercontinentalExchange,Inc.
JapanExchange
LondonStockExchangeGroupplc
SingaporeExchange
TMXGroupInc.
TheTSRresultsaremeasuredatthebeginningandendofthethreeͲyearperformanceperiod.Nasdaq’srelative
performancerankingagainsteachofthesegroupswilldeterminethefinalnumberofsharesdeliveredtoeach
individual.Themaximumpayoutwillbe200%ofthetargetnumberofPSUsgrantedifNasdaqranksatthe85th
percentileoraboveofbothgroups.However,ifNasdaq’sTSRisnegativeforthethreeͲyearperformanceperiod,
regardlessofTSRranking,thepayoutcannotexceed100%ofthetargetnumberofPSUsgranted.
Belowisatableshowingtheamountofsharesagranteemayreceivebasedupondifferentlevelsofachievement
againsteachofthegroups.Foreachgroup,theresultingsharesearnedwillbecalculatedbymultiplyingtherelevant
percentagefromthetablebelowbyoneͲhalfofthetargetawardamount.
PERCENTILERANKOFNASDAQ’STHREEͲYEARTSR
VERSUSTHERELEVANTGROUP
TH
>=85 Percentile
TH
67.5 Percentile
RESULTINGSHARESEARNED
200%
150%
TH
100%
TH
50%
TH
15 Percentile
30%
0Percentile
0%
50 Percentile
25 Percentile
Forlevelsofachievementbetweenpoints,theresultingsharesearnedwillbecalculatedbasedonstraightͲline
interpolation.
ThevalueofMr.Greifeld’s2014equityawardtargetwasslightlylowerthanin2013.InsettingMr.Greifeld’s2014
equityawardtarget,theManagementCompensationCommitteefocusedonmotivatinglongtermperformance,with
significantupsideanddownsidebasedonperformancerelativetopeers.Historicalawardsandtheretentionvalueof
Mr.Greifeld’soutstandingequityweretakenintoaccountwhendeterminingthetargetamountofhisaward.Peer
groupdataalsowasconsideredinestablishingamarketͲcompetitiveawardlevel.
Mr.Greifeldrecommendedthespecificequityawardtargetsforeachoftheothernamedexecutiveofficers,which
variedamongexecutivesdependinguponresponsibilitiesandretentionconsiderations.TheManagement
CompensationCommitteeandBoardevaluatedtheserecommendationsanddeterminedthattheamountofeach
/32
2015PROXYSTATEMENT
awardreflectedtheindividual’scontributions,wasalignedwithcompetitivemarketlevelsandwasappropriatefor
retentionpurposes.
ThetargetamountandtargetfacevalueofthePSUsawardedtoeachofthenamedexecutiveofficersunderthis
programissetforthinthetablebelow.The2014awardswereapprovedonMarch26,2014andgrantedonMarch31,
2014,whichwasthedateofNasdaq’sannualemployeeequitygrant.
TARGETPSUS
TARGETGRANTDATEFACEVALUE
RobertGreifeld
180,000
$6,649,200
LeeShavel
34,454
$1,272,731
HansͲOleJochumsen
29,532
$1,090,912
JohnL.Jacobs
27,071
$1,000,003
PromotionGranttoMr.Jochumsen.InApril2014,Mr.JochumsenwaspromotedfromExecutiveVicePresident,
TransactionServicesNordicstoPresident,GlobalTransactionMarketServices.Inconnectionwiththeexpansionofhis
duties,hereceivedanequityawardtargetedat14,899PSUs,valuedat$545,452infacevalue,thatissubjecttothe
sameperformancemeasuresandvestingtermsasthePSUsdescribedabovethatweregrantedtothenamedexecutive
officersin2014.
NewHireGrantforMs.Friedman.Ms.FriedmanwasappointedPresidentonJune16,2014.Pursuanttoher
employmentagreement,thecompanyawardedanequitygranttoMs.Friedmanuponherstartdate.Thegrant
consistedofRSUs,withatargetgrantdatefacevalueof$5,999,975,whichvestinequalinstallmentsonthefirst,
secondandthirdanniversariesofthegrant,andPSUs,withatargetgrantdatefacevalueof$2,272,715,thatare
subjecttothesameperformancemeasuresandvestingtermsasthePSUsdescribedabovethatweregrantedtothe
othernamedexecutiveofficersin2014.TheManagementCompensationCommitteeandBoarddeterminedthevalue
ofthisequitygrantaspartofthetotalcompensationpackagedesignedtorecruitMs.Friedmantojointhecompany.
ThisgrantservedasMs.Friedman’s2014annualequityawardandoffsetaportionoftheequityvalueMs.Friedman
forfeitedwhenleavingherprioremployer.
Settlementof2012PSUGrants.InFebruary2014,theManagementCompensationCommitteeevaluatedand
approvedtheperformanceresultsforthePSUsgrantedtoseniorexecutivesin2012,includingMessrs.Greifeld,
Jochumsen,ShavelandJacobs.ThesePSUsweresubjecttoathreeͲyearcumulativeperformanceperiodbeginningon
January1,2012andendingonDecember31,2014andperformancewasdeterminedbycomparingNasdaq’sTSRto
twogroupsofcompanies,eachweighted50%.OnegroupconsistedofallS&P500companies,andtheothergroup
consistedof13peerexchangecompanies.
Thefollowingtablesetsforththe2012PSUperformancemeasureresults.
EQUITY
AWARD
2012
ThreeͲ
Year
PSU
Award
CUMULATIVETSR
WEIGHTING
50%
82.1%
50%
PERFORMANCE
FACTORS
PERCENTILERANK
PAYOUT
Basedon
RelativeTSR
AgainsttheS&P
500
59th
126%
Basedon
RelativeTSR
AgainstPeers
67th
BLENDED
PAYOUT
137%
147%
/33
2015PROXYSTATEMENT
Basedontheseresults,thenamedexecutiveofficersearnedthenumberofPSUssetforthbelowascomparedtothe
targetamountsgranted.
TARGETPSUS
PSUSEARNED
RobertGreifeld
247,440
338,287
LeeShavel
59,727
81,656
HansͲOleJochumsen
51,195
69,991
JohnL.Jacobs
36,263
49,577
GeneralEquityAwardGrantPractices.TheManagementCompensationCommitteeandtheBoardconsiderwhetherto
makeequityawardsatregularlyscheduledmeetingswhicharescheduledwellinadvancewithoutregardtomaterial
companynewsannouncements.Thereferencepriceforcalculatingthevalueofequityawardsgrantedistheclosing
marketpriceofNasdaq’scommonstockonthedateofgrant.Existingequityownershiplevelsarenotafactorinaward
determinationsaswedonotwanttodiscourageseniorexecutivesfromholdingsignificantamountsofNasdaq’s
commonstock.
Throughouttheperformanceperiodsforequityawards,theManagementCompensationCommitteereceivesupdates
ontheexecutives’progressinachievingapplicableperformancemeasuresandmonitorsthecompensationexpense
thatthecompanyisincurringforoutstandingequityawards.Webelievethatthecurrentandexpectedexpense
amountsarereasonableandjustifiedinlightoftheManagementCompensationCommittee’sgoalsofaligningthelongͲ
terminterestsofofficersandemployeeswiththoseofstockholdersandretainingthecurrentmanagementteam.
BENEFITS
U.S.Benefits.Nasdaqprovidesacomprehensivebenefitsprogramtoourexecutives,includingthenamedexecutive
officers,whichmirrorstheprogramofferedtoourotheremployees.Thesebenefitsinclude,amongothersthings,
401(k)with6%matchandemployerretirementcontributions,healthandwelfarebenefitsandanemployeeshare
purchaseprogram.Undertheseplans,ournamedexecutiveofficersparticipateonthesametermsasotheremployees.
AsofJanuary1,2014,NasdaqdiscontinuedcontributionstotheSupplementalERC,whichwasaplandesignedto
enhanceretirementcontributionsforcertainofficerswhosebasesalariesortotalcontributionstoqualifiedplans
exceededcertainIRSlimitations.Namedexecutiveofficersformerlyparticipatedinthisplan.
NonͲU.S.Benefits.MostemployeesoutsideoftheU.S.arecoveredbylocalretirementplansorbyapplicablesocial
laws.PriortohisrelocationtotheU.S.,Mr.JochumsenparticipatedinanonͲU.S.definedcontributionpensionplan.
Underthistypeofplan,Nasdaqmakesannualcontributionsequaltoapercentageoffixedsalarytoparticipants’
personalaccounts.Eachparticipantisfreetoinvestcontributionsasheorshechooses.Participantsarenottaxedon
thecontributionsuntiltheyarewithdrawnuponretirement.
SEVERANCEARRANGEMENTS
Exceptinthelimitedcircumstancesdescribedinthisproxystatement,wearenotobligatedtopaygeneralseveranceor
otherenhancedbenefitstoanynamedexecutiveofficeruponterminationofhisorheremployment.However,the
ManagementCompensationCommitteehasthediscretiontopayseveranceplanbenefits.Severanceplandecisionsdo
notinfluencetheManagementCompensationCommittee’sotherrecommendationsregardingcompensationasthese
otherdecisionsarefocusedonmotivatingourexecutivestoremainwithNasdaqandcontributetoourfuturesuccess.
Webelievethatthetermsfortriggeringpaymentundereachofthearrangementsdescribedinthisproxystatement
arereasonable.Forexample,thesearrangementsusewhatisknownasa“doubletrigger,”meaningthataseverance
paymentasaresultofachangeincontrolisactivatedonlyupontheoccurrenceofbothachangeincontrolofthe
companyandalossofemployment.BenefitsunderthesearrangementswillbeprovidedonlyifNasdaqisthetarget
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2015PROXYSTATEMENT
organization.Inaddition,achangeincontrolunderthesearrangementsislimitedtosituationswheretheacquirer
obtainsamajorityofNasdaq’svotingsecuritiesorthecurrentmembersofourBoard(ortheirapprovedsuccessors)
ceasetoconstituteamajorityoftheBoard.
ForfurtherinformationonNasdaq’slimitedseverancearrangements,see“ExecutiveCompensationTables–Potential
PaymentsuponTerminationandChangeinControl.”
PERQUISITES
Becauseourexecutivecompensationprogramemphasizespayforperformance,itincludesveryfewperquisitesforour
executives.Inviewofthedemandsofhisposition,weprovideMr.Greifeldwithacompanycaranddriverforusewhen
conductingcompanybusiness.OfficersatthelevelofSeniorVicePresidentandaboveareeligibletoreceivebasic
financialplanningservicesandexecutivehealthexams.Participationineachoftheseprogramsisvoluntary.Wealso
provideextendedsicknessinsurancetocertainnonͲU.S.executives.WedonotprovidetaxgrossͲuppaymentson
perquisites,otherthanunderemploymentorhiringarrangements.
During2014,Mr.JochumsenreceivedaoneͲtimepaymentof$112,856(or$69,363,netoftaxes)forrelocation
expensesincurredforhismovefromSwedentotheU.S.inconnectionwithhispromotiontoPresident.
RISKMITIGATIONANDOTHERPAYPRACTICES
RISKASSESSMENTOFCOMPENSATIONPROGRAM
Wemonitortherisksassociatedwithourcompensationprogramonanongoingbasis.InMarch2015,theManagement
CompensationCommitteeandAuditCommitteewerepresentedwiththeresultsofanannualformalassessmentofour
employeecompensationprograminordertoevaluatetherisksarisingfromourcompensationpoliciesandpractices.
Thisriskassessmentreportreflectedacomprehensivereviewandanalysisofthecomponentsofourcompensation
program,includingtheperformancemeasuresestablishedunderthe2015cashperformanceͲbasedincentiveaward
program.TheManagementCompensationCommitteeandAuditCommitteebothconcluded,basedontherisk
assessmentreport’sfindings,thatanyrisksarisingfromourcompensationprogramarenotreasonablylikelytohavea
materialadverseeffectonthecompany.
TheriskassessmentwasperformedbyaninternalworkinggroupconsistingofemployeesintheHumanResources,Risk
ManagementandInternalAuditDepartments,aswellastheOfficesofGeneralCounselandCorporateSecretary.The
findingswerepresentedtotheGlobalRiskSteeringCommittee,whichconcurredwiththeworkinggroup’sreport.The
riskassessmentincludedthefollowingsteps:
•
•
•
•
collectionandreviewofexistingNasdaqcompensationpoliciesandpaystructures;
developmentofariskassessmentscorecard,analysisapproachandtimeline;
conductofaqualitativeriskassessmentofperformancegoalstodetermineoverallrisklevel;and
reviewandevaluationofcontrolsthatmightmitigaterisktaking(e.g.,equityvestingstructure,incentive
recoupmentpolicyandstockownershipguidelines).
STOCKOWNERSHIPGUIDELINES
Wehavelongrecognizedtheimportanceofstockownershipasanimportantmeansofcloselyaligningtheinterestsof
ourexecutiveswiththeinterestsofourstockholders.InadditiontousingequityawardsasaprimarylongͲterm
incentivecompensationtool,wehaveinplacestockownershipguidelinesforourCEO,Presidents,CFO,ExecutiveVice
PresidentsandSeniorVicePresidents.Underitscharter,theManagementCompensationCommitteeisresponsiblefor
reviewingannuallythestockownershipguidelinesandverifyingcompliance.
Undertheguidelines,thecoveredexecutivesareexpectedtoownspecifieddollaramountsofNasdaqcommonstock
basedonamultipleoftheirbasesalary.Themultipleisdeterminedbyofficerlevel:ourCEOmustholdsharesvaluedat
sixtimesbasesalary,ourPresidentsandCFOmustholdafourtimesmultiple,otherExecutiveVicePresidentsmust
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2015PROXYSTATEMENT
holdathreetimesmultipleandSeniorVicePresidentsmustholdaonetimesmultiple.Individualholdings,shares
jointlyownedwithimmediatefamilymembersorheldintrust,sharesofrestrictedstock(includingvestedand
unvested),sharesunderlyingPSUsaftercompletionoftheperformanceperiodandsharespurchasedorheldthrough
Nasdaq’splans,suchastheNasdaqESPP,counttowardsatisfyingtheguidelines.Newexecutivesandexecutiveswho
incuramaterialchangeintheirresponsibilitiesareexpectedtomeettheapplicablelevelofownershipwithinfour
yearsoftheirstartdateorthedateofthechangeinresponsibilities.
STOCKHOLDINGGUIDELINES
Weencourageourseniorexecutivestoretainequitygrantsuntiltheapplicablestockownershipleveldiscussedabove
isreached.Underthestockownershipguidelines,theseofficersmustholdthespecifieddollaramountsofstock
throughtheendoftheiremploymentwithNasdaq.Wefeelthatourguidelinesprovideproperalignmentofthe
interestsofourmanagementandourstockholders,andtherefore,wedonothaveadditionalstockholding
requirementsbeyondthestockownershipguidelines.
TRADINGCONTROLSANDHEDGINGANDPLEDGINGPOLICIES
Weprohibitdirectorsorexecutiveofficersfromengaginginsecuritiestransactionsthatallowthemeithertoinsulate
themselves,orprofit,fromadeclineinNasdaq’sstockprice(withtheexceptionofsellingsharesoutright).Specifically,
theseindividualsmaynotenterintohedgingtransactionswithrespecttoNasdaq’scommonstock,includingshortsales
andtransactionsinderivativesecurities.Finally,theseindividualsmaynotpledge,hypothecateorotherwiseencumber
theirsharesofNasdaqcommonstock.
Nasdaqpermitsallemployees,includingthenamedexecutiveofficers,toenterintoplansestablishedunderRule10b5Ͳ
1oftheExchangeActtoenablethemtotradeinourstock,includingstockreceivedthroughequitygrants,during
periodsinwhichtheymightnototherwisebeabletotradebecausematerialnonpublicinformationaboutNasdaqhas
notbeenpubliclyreleased.Theseplansincludespecificinstructionstoabrokertotradeonbehalfoftheemployeeif
ourstockpricereachesaspecifiedlevelorifcertainothereventsoccur,andtherefore,theemployeenolonger
controlsthedecisiontotrade.
INCENTIVERECOUPMENTPOLICY
TheBoardandManagementCompensationCommitteehaveadoptedanincentiverecoupmentor“clawback”policy
thatisapplicabletothenamedexecutiveofficersandotherExecutiveVicePresidents.Thepolicyprovidesthatthe
companymayrecoupanycashorequityincentivepaymentspredicatedupontheachievementoffinancialresultsor
operatingmetricsthataresubsequentlydeterminedtobeincorrectonaccountofmaterialerrors,materialomissions,
fraudormisconduct.
GLOBALETHICSANDCORPORATECOMPLIANCEPROGRAM
TheBoardannuallyreviewsthecompany’sglobalethicsandcorporatecomplianceprogram,includingthecodeof
ethicsandsupportingpolicies.Nasdaqwilltakeactiontoremedyanyfraudulentorintentionalmisconductbyan
employee.Disciplinewouldvarydependingonthefactsandcircumstances,andmayincludenegativeadjustmentof
compensationawards,terminationofemploymentorinitiationofanactionforbreachoffiduciarydutyunderthe
company’scodeofethics.Theseremedieswouldbeinadditionto,andnotinlieuof,anyactionsimposedbylaw
enforcementagencies,regulatorsorotherauthorities.
/36
2015PROXYSTATEMENT
TAXANDACCOUNTINGIMPLICATIONSOFEXECUTIVECOMPENSATION
TheManagementCompensationCommitteeconsiderstheincometaxconsequencesofindividualcompensation
elementswhenitisanalyzingtheoveralllevelofcompensationandthemixofcompensationamongindividual
elements.
Section162(m)oftheCodeprovidesalimitof$1millionontheremunerationthatmaybedeductedbyapublic
companyinanyyearinrespectoftheCEOandthethreeothermosthighlycompensatedexecutiveofficers(otherthan
theprincipalfinancialofficer).However,“performanceͲbasedcompensation”isfullydeductibleiftheplanunderwhich
thecompensationispaidhasbeenapprovedbythestockholdersandmeetsotherrequirements.Weattemptto
structureourcompensationarrangementssothatamountspaidaretaxdeductibletotheextentfeasibleand
consistentwithouroverallcompensationobjectives.Dependingupontherelevantcircumstancesatthetime,the
ManagementCompensationCommitteemaydeterminetoawardcompensationthatmaynotbedeductible.Inmaking
thisdetermination,theManagementCompensationCommitteebalancesthepurposesandneedsofourexecutive
compensationprogramagainstthepotentialtaximplications.
Generally,underU.S.GAAP,compensationisexpensedasearned.Equitycompensationisexpensedinaccordancewith
FASBASCTopic718,whichisgenerallyoverthevestingperiod.
MANAGEMENTCOMPENSATIONCOMMITTEEREPORT
TheManagementCompensationCommitteereviewedanddiscussedtheCompensationDiscussionandAnalysiswith
ourmanagement.Aftersuchdiscussions,theManagementCompensationCommitteerecommendedtoNasdaq’s
BoardofDirectorsthattheCompensationDiscussionandAnalysisbeincludedinthisproxystatementandincorporated
byreferenceintoNasdaq’sannualreportonForm10ͲK.
THEMANAGEMENTCOMPENSATIONCOMMITTEE
MichaelR.Splinter,Chair
StevenD.Black
BörjeE.Ekholm
GlennH.Hutchins
MANAGEMENTCOMPENSATIONCOMMITTEEINTERLOCKS
ANDINSIDERPARTICIPATION
NoneofthemembersoftheManagementCompensationCommitteeisanexecutiveofficer,employeeorformer
officerofNasdaq.WiththeexceptionofMr.Greifeld,noneofNasdaq’sexecutiveofficersservesasacurrentmember
oftheNasdaqBoard.NoneofNasdaq’sexecutiveofficersservesasadirectororamemberofthecompensation
committeeofanyentitythathasoneormoreexecutiveofficersservingontheNasdaqBoardorManagement
CompensationCommittee.ForinformationontransactionswithentitiesaffiliatedwithourManagementCompensation
Committeemembers,see“CertainRelationshipsandRelatedTransactions”onpage62.
/37
2015PROXYSTATEMENT
EXECUTIVECOMPENSATIONTABLES
Thefollowingtables,narrativeandfootnotespresentthecompensationofthenamedexecutiveofficersduring2014in
theformatmandatedbytheSEC.
2014SUMMARYCOMPENSATIONTABLE
CHANGEIN
PENSIONVALUE
AND
NONQUALIFIED
DEFERRED
ALLOTHER
COMPENSATION COMPENSATION
EARNINGS($)(4)
($)(5)
BONUS
($)
STOCK
AWARDS
($)(2)
OPTION
AWARDS
($)
NONͲEQUITY
INCENTIVEPLAN
COMPENSATION
($)(3)
2014 $1,000,000
–
$7,763,400
–
$2,550,450
$711,724
$58,355
$12,083,929
2013 $1,000,000
–
$9,944,870
–
$2,794,050
–
$101,104
$13,840,024
2012 $1,000,000
–
$5,567,400
–
$1,350,000
$916,164
$77,742
$8,911,306
2014
$500,000
–
$1,486,001
–
$900,375
–
$17,350
$2,903,726
2013
$500,000
–
$1,678,054
–
$1,135,500
–
$24,550
$3,338,104
2012
$500,000
–
$1,343,857
–
$878,625
–
$22,450
$2,744,932
AdenaT.
Friedman(6)
2014
$396,947
–
$8,449,284
–
$1,636,250
$61,907
$8,678
$10,553,066
President
2014
$558,409
–
$1,916,309
–
$1,623,000
–
$262,963
$4,360,681
2013
$516,096
–
$1,438,326
–
$1,383,168
–
$132,039
$3,469,629
2012
$496,608
–
$1,151,887
–
$889,387
–
$116,638
$2,654,520
2014
$475,000
–
$1,167,572
–
$1,183,700
$446,853
$58,537
$3,331,662
NAMEAND
PRINCIPAL
POSITION
RobertGreifeld
ChiefExecutive
Officer
LeeShavel
ChiefFinancial
Officerand
ExecutiveVice
President,
Corporate
Strategy
HansͲOle
Jochumsen
YEAR
SALARY
($)(1)
TOTAL
($)
President
JohnL.Jacobs
Former
ExecutiveVice
President,
Global
Information
Services
(1) ForMr.Jochumsen,certainamountsreportedinthisproxystatementwerepaidinSwedishkrona.TheseamountsareconvertedtoU.S.dollars
fromkronaatanexchangerateof$0.1462perkrona,whichwastheaverageexchangeratefor2014.
(2) Theamountsreportedinthiscolumnreflectthegrantdatefairvalueofthestockawards,includingPSUsandRSUs,computedinaccordance
withFASBASCTopic718.Theassumptionsusedinthecalculationoftheseamountsareincludedinnote12tothecompany’sauditedfinancial
statementsforthefiscalyearendedDecember31,2014includedinourannualreportonForm10ͲK.Sincethe2014PSUawardpayoutsare
contingentonTSRͲrelatedperformanceͲbasedvestingconditions,thegrantdatefairvaluesweredeterminedbasedonaMonteCarlo
simulationmodel.
TheMonteCarlosimulationmodeltakesintoaccountexpectedpricemovementofNasdaqstockascomparedtopeercompanies.Asaresultof
thecompany’spreͲgrant2014TSRperformancerelativetopeercompanies,theMonteCarlosimulationmodelassignedasignificantlyhigher
/38
2015PROXYSTATEMENT
valuetoeach2014PSUthantheclosingpriceofNasdaq’sstockonthegrantdate.Therefore,thevaluereflectedinthe2014Summary
CompensationTabledoesnotreflectthetargetgrantdatefacevalueshownintheLongͲTermStockͲBasedCompensationsectionofthe
CompensationDiscussionandAnalysisinthisproxystatement,andthereisnoassurancethatthetargetgrantdatefacevaluesorFASBASC
Topic718fairvalueswilleverberealizedbytheCEOortheothernamedexecutiveofficers.Thetablebelowsummarizesthetargetgrantdate
facevalueofPSUgrantsthattheManagementCompensationCommitteeandtheBoardapprovedforthenamedexecutiveofficerscomparedto
theFASBASCTopic718fairvalue.
NAME
YEAR
TARGETPSUS
TARGETGRANTDATEFACEVALUE
FASBASCTOPIC718FAIRVALUE
RobertGreifeld
2014
180,000
$6,649,200
$7,763,400
LeeShavel
2014
34,454
$1,272,731
$1,486,001
AdenaT.Friedman
2014
62,181
$2,272,715
$2,449,309
HansͲOleJochumsen
2014
44,431
$1,636,364
$1,916,309
JohnL.Jacobs
2014
27,071
$1,000,003
$1,167,572
(3) TheamountsreportedinthiscolumnreflectthecashawardsmadetothenamedexecutiveofficersundertheECIPorotherperformanceͲbased
incentivecompensationprograms.
(4) Theamountsreportedinthiscolumnreflecttheactuarialincreaseinthepresentvalueofthenamedexecutiveofficers’benefitsunderall
pensionplansestablishedbyNasdaq.NoamountisreportedinthiscolumnforMr.Greifeldfor2013astheactuarialpresentvalueofhis
benefitsunderthepensionplansdecreasedby$417,127.Assumptionsusedincalculatingtheamountsincludea4.20%discountrateasof
December31,2014,a4.90%discountrateasofDecember31,2013,a4.00%discountrateasofDecember31,2012,a5.00%discountrateasof
December31,2011,retirementatage62(whichistheearliestageatwhichaparticipantmayretireandreceiveunreducedbenefitsunderthe
plans)andotherassumptionsusedforfinancialreportingpurposesunderU.S.GAAPasdescribedinnote11toourauditedfinancialstatements
forthefiscalyearendedDecember31,2014includedinourannualreportonForm10ͲK.Thenamedexecutiveofficersmaynotcurrentlybe
entitledtoreceivebenefitsunderthepensionplansifsuchamountsarenotvested.NoneofthenamedexecutiveofficersreceivedaboveͲmarket
orpreferentialearningsondeferredcompensationin2014,2013or2012.
(5) Thefollowingtablesetsforththe2014amountsreportedinthe“AllOtherCompensation”columnbytype.
NAME
RobertGreifeld(a)
COSTOF
EXECUTIVE
HEALTH
COSTOF CONTRIBUTION
INCREMENTAL EXAMOR FINANCIAL/ TOTHE401(K)
COSTOF
EXTENDED
TAX
PLANOR
TOTAL
PERSONALUSE SICKNESS
PLANNING OTHERDEFINED CONTRIBUTION VACATION RELOCATION
ALLOTHER
OFCOMPANY INSURANCE SERVICES CONTRIBUTION TOTHEBASIC
PAY
EXPENSES COMPENSATION
($)
CAR($)
($)
($)
PLANS($)
ERC($)
($)
($)
$20,605
$4,350
–
$23,000
LeeShavel
–
AdenaT.Friedman
–
HansͲOle
Jochumsen(b)
JohnL.Jacobs
$10,400
$4,350
–
$13,000
–
–
$7,524
$1,154
–
–
$5,407
$45,885
$85,948
$4,662
–
$4,350
$15,187
$18,200
$20,800
–
–
$58,355
–
–
$17,350
–
–
$8,678
$8,205
$112,856
$262,963
–
–
$58,537
(a) Theincrementalcostofpersonaluseofthecompanycar(includingcommutation)iscalculatedbasedonanallocationofthecostofthe
driver,tolls,fuel,maintenanceandotherrelatedexpenses.
(b) ForMr.Jochumsen,thecontributiontothe401(k)planorotherdefinedcontributionplansincludesataxgrossͲuppaymentof$12,043and
therelocationexpensesincludeataxgrossͲuppaymentof$43,493.
(6) Ms.FriedmanbeganemploymentasPresidenteffectiveJune16,2014.
/39
2015PROXYSTATEMENT
2014GRANTSOFPLANͲBASEDAWARDSTABLE
ESTIMATEDFUTUREPAYOUTS ESTIMATEDFUTUREPAYOUTS
ALLOTHER ALLOTHER
UNDERNONͲEQUITYINCENTIVE
UNDEREQUITYINCENTIVE
STOCK
OPTION
GRANT
PLANAWARDS(1)
PLANAWARDS(2)
AWARDS:
AWARDS:
EXERCISE DATEFAIR
NAME
Robert
Greifeld
LeeShavel
AdenaT.
Friedman
HansͲOle
Jochumsen
JohnL.
Jacobs
COMMITTEE
AND/OR
BOARD
APPROVAL
DATE
GRANT
DATE
THRESͲ
HOLD
($)
TARGET
($)
MAXIMUM
($)
THRESͲ
HOLD
(#)
TARGET
(#)
NUMBER
NUMBER
ORBASE VALUEOF
OFSHARES
OF
PRICEOF STOCKAND
OF
SECURITIES OPTION
OPTION
MAXIMUM STOCKOR UNDERLYING AWARDS AWARDS($)
UNITS(#) OPTIONS(#)
($/SH)
(3)
(#)
3/26/2014
3/26/2014 – $2,100,000 $4,200,000
–
–
3/26/2014
3/31/2014 –
–
–
–
180,000
3/26/2014
3/26/2014 –
$750,000 $1,500,000
–
–
3/26/2014
3/31/2014 –
– –
–
34,454
7/29/2014
7/29/2014 – $1,250,000 $2,500,000
–
–
–
–
–
– –
6/16/2014 –
–
–
62,181
124,362
164,158
–
– $8,449,284
3/26/2014
3/26/2014 – $1,000,000 $2,000,000
–
–
–
–
–
– –
3/26/2014
3/31/2014 –
– –
–
29,532
59,064
–
–
– $1,273,715
4/21/2014
4/23/2014 –
– –
–
14,899
29,798
–
–
– $642,594
3/26/2014
3/26/2014 – $700,000 $1,400,000
–
–
–
–
–
– –
3/26/2014
3/31/2014 –
–
27,071
54,142
–
–
– $1,167,572
5/8/2014
–
– –
–
–
– –
–
–
– $7,763,400
–
–
–
– –
68,908
–
–
– $1,486,001
–
360,000
(1) TheamountsreportedinthesecolumnsrepresentthepossiblerangeofpaymentsundertheECIPorotherperformanceͲbasedincentive
compensationprograms.ForinformationabouttheamountsactuallyearnedbyeachnamedexecutiveofficerundertheECIPorother
performanceͲbasedincentivecompensationprograms,see“ExecutiveCompensationTables–2014SummaryCompensationTable.”Amounts
areconsideredearnedinfiscalyear2014althoughtheywerenotpaiduntil2015.
(2) TheamountsreportedinthesecolumnsrepresentthepossiblerangeofPSUsthateachnamedexecutiveofficermayearnundertheEquityPlan,
dependingonhisorherachievementofperformancegoalsestablishedbytheManagementCompensationCommitteeandBoard.
(3) Theamountsreportedinthiscolumnrepresentthegrantdatefairvalueofthetotalequityawardsreportedinthepreviouscolumnscalculated
pursuanttoFASBASCTopic718basedupontheassumptionsdiscussedinnote12tothecompany’sauditedfinancialstatementsforthefiscal
yearendedDecember31,2014includedinourannualreportonForm10ͲK.Forfurtherinformationaboutthecalculationoftheseamounts,see
“ExecutiveCompensationTables–2014SummaryCompensationTable”onpage38.
/40
2015PROXYSTATEMENT
2014OUTSTANDINGEQUITYAWARDSATFISCALYEARͲENDTABLE
NAME
Robert
Greifeld
NUMBEROF
SECURITIES
UNDERLYING
UNEXERCISED
OPTIONS(#)
EXERCISABLE
EQUITY
INCENTIVE
PLANAWARDS:
NUMBEROF
NUMBEROF
SECURITIES
SECURITIES
UNDERLYING UNDERLYING
UNEXERCISED UNEXERCISED
OPTIONS(#)
UNEARNED
UNEXERCISABLE OPTIONS(#)
OPTION
EXERCISE
PRICE($)
EQUITY
INCENTIVE
PLAN
MARKET
AWARDS:
NUMBEROF VALUEOF
NUMBEROF
SHARESOR SHARESOR
UNEARNED
UNITSOF
UNITSOF SHARES,UNITS
STOCK
STOCK
OROTHER
OPTION
THATHAVE THATHAVE RIGHTSTHAT
EXPIRATION NOTVESTED NOTVESTED
HAVENOT
DATE
(#)
($)
VESTED(#)
EQUITY
INCENTIVE
PLANAWARDS:
MARKETOR
PAYOUTVALUE
OFUNEARNED
SHARES,UNITS
OROTHER
RIGHTSTHAT
HAVENOT
VESTED($)
960,000 – –
$35.92
12/13/2016 – – –
–
900,000 – –
$21.31
06/30/2019 – – –
–
– – –
–
– – – 227,000(3) $10,886,920
– – –
–
– – – 180,000(4) $8,632,800
41,257 – –
$24.94
– – –
05/23/2021 – – –
–
–
– 50,120(1) $2,403,755 –
–
– – –
–
– – – 38,303(3) $1,837,012
– – –
–
– – – 34,454(4) $1,652,414
– – –
AdenaT.
Friedman – – –
–
– 164,158(2) $7,873,018 –
–
– – – 62,181(4) $2,982,201
15,771 – –
$41.36
03/24/2018 – – –
–
LeeShavel
–
22,059 – –
$19.75
03/04/2020 – – –
–
HansͲOle
33,995 – –
Jochumsen
$25.28
03/28/2021 – – –
–
– – –
–
–
– – 32,831(3) $1,574,575
– – –
–
–
– – 44,431(4) $2,130,911
32,558 – –
$35.92
12/13/2016 – – –
–
22,564 – –
$45.38
12/12/2017 – – –
–
45,528 – –
$25.07
12/17/2018 – – –
–
22,059 – –
$19.75
03/04/2020 – – –
–
22,663 – –
$25.28
03/28/2021 – – –
–
JohnL.
Jacobs
– – –
–
– – – 27,359(3) $1,312,138
– – –
–
– – – 27,071(4) $1,298,325
(1) TheseRSUswillvestonMay23,2015.
(2) TheseRSUswillvestastooneͲthirdoneachofJune16,2015,June16,2016andJune16,2017.
(3) ThisPSUawardissubjecttoathreeͲyearperformanceperiodendingonDecember31,2015.Theamountreportedisthetargetawardamount,
althoughtheactualnumberofsharesawardedcouldrangefrom0%to200%ofthetargetawardamount,dependingonthelevelof
achievementofcertainspecifiedperformancegoalsestablishedbytheManagementCompensationCommitteeandBoard.
(4) ThisPSUawardissubjecttoathreeͲyearperformanceperiodendingonDecember31,2016.Theamountreportedisthetargetawardamount,
althoughtheactualnumberofsharesawardedcouldrangefrom0%to200%ofthetargetawardamount,dependingonthelevelof
achievementofcertainspecifiedperformancegoalsestablishedbytheManagementCompensationCommitteeandBoard.
/41
2015PROXYSTATEMENT
2014OPTIONEXERCISESANDSTOCKVESTEDTABLE
STOCKAWARDS
NUMBEROFSHARES
ACQUIREDONVESTING(#)
VALUEREALIZEDON
VESTING($)(1)
RobertGreifeld
338,287(2)
$16,887,287
LeeShavel
154,230(3)
$ 6,980,035
AdenaT.Friedman
–
–
HansͲOleJochumsen
88,980(4)
$4,404,663
JohnL.Jacobs
62,236(5)
$3,082,009
NAME
(1) Theamountsreportedinthiscolumnarecalculatedbymultiplyingthenumberofsharesofstockthatvestedbytheclosingmarketpriceofour
commonstockonthevestingdate.
(2) Theamountreportedincludes174,050sharesthatwerewithheldtopaytaxesinconnectionwiththevesting(s).
(3) Theamountreportedinclude79,062sharesthatwerewithheldtopaytaxesinconnectionwiththevesting(s).
2014PENSIONBENEFITSTABLE
NAME(1)
RobertGreifeld
AdenaT.Friedman
JohnL.Jacobs
PLANNAME
NUMBEROFYEARS
CREDITED
SERVICE(#)(2)
PRESENTVALUE
OFACCUMULATED
BENEFIT($)(3)
PAYMENTS
DURINGLASTFISCAL
YEAR($)
PensionPlan
4.00
$149,180
–
SERP
4.00
$4,946,773
–
PensionPlan
13.92
$302,420
–
SERP
13.92
PensionPlan
24.17
$871,158
–
SERP
24.17
$2,143,060
–
–
–
(1) Messrs.JochumsenandShavelarenotparticipantsinthepensionplanorSERP.
(2) SincethepensionplanandSERPwerefrozenin2007,thenumberofyearsofcreditedserviceforeachnamedexecutiveofficerunderthoseplans
differsfromsuchofficer’snumberofyearsofactualservicewithNasdaq.AsofDecember31,2014,Mr.Greifeldhad11.67yearsofactual
servicewithNasdaq,whileMs.Friedmanhad18.42yearsandMr.Jacobshad31.83years.Generally,participantsinthepensionplanbecame
vestedinretirementbenefitsundertheplanafterfiveyearsofservicefromtheparticipant’sdateofhire.ParticipantsintheSERPgenerally
becamevestedinretirementbenefitsundertheSERPafterreachingage55andcompleting10yearsofservice.AsofDecember31,2014,
Messrs.GreifeldandJacobswerevestedinbenefitspayableunderboththepensionplanandtheSERP,andMs.Friedmanwasvestedin
benefitspayableunderthepensionplan.
(3) Theamountsreportedcomprisetheactuarialpresentvalueofthenamedexecutiveofficer’saccumulatedbenefitunderthepensionplanand
SERPasofDecember31,2014.Assumptionsusedincalculatingtheamountsincludea4.20%discountrateasofDecember31,2014,retirement
atage62(whichistheearliestageatwhichaparticipantmayretireandreceiveunreducedbenefitsundertheplans)andotherassumptions
usedforfinancialstatementreportingpurposesunderU.S.GAAPasdescribedinnote11tothecompany’sauditedfinancialstatementsforthe
fiscalyearendedDecember31,2014includedinourannualreportonForm10ͲK.
/42
2015PROXYSTATEMENT
2014NONQUALIFIEDDEFERREDCOMPENSATIONTABLE(1)
EXECUTIVE
CONTRIBUTIONS
INLASTFY($)
REGISTRANT
CONTRIBUTIONS
INLASTFY($)
AGGREGATE
EARNINGS
INLASTFY($)(3)
AGGREGATE
WITHDRAWALS/
DISTRIBUTIONS($)
AGGREGATE
BALANCE
ATLASTFYE($)
RobertGreifeld
–
–
$14,395
–
$ 260,594
LeeShavel
–
–
$642
–
$ 11,989
JohnL.Jacobs
–
–
$8,507
–
$ 153,462
NAME(2)
(1)
AsofJanuary1,2014,NasdaqdiscontinuedcontributionstotheSupplementalERC,whichwasaplandesignedtoenhanceretirement
contributionsforcertainofficerswhosebasesalariesortotalcontributionstoqualifiedplansexceededcertainIRSlimitations.In2014,named
executiveofficerscontinuedtoreceiveinterestonpriorcontributionstotheplan.
(2)
Ms.FriedmanandMr.JochumsenarenotcurrentlyparticipantsintheSupplementalERC.
(3)
Theamountsreportedinthiscolumnrepresentinterestearnedduring2014onaccountbalances.Interestispaidatanannualrateof7%(which
isthe10ͲyearU.S.TreasurysecuritiesrateontheeffectivedateoftheSupplementalERCprogramplusanadditional1%).
EMPLOYMENTAGREEMENTS
Nasdaqcurrentlyhasemploymentagreementswiththreeofitsnamedexecutiveofficers,Mr.Greifeld,Ms.Friedman
andMr.Jochumsen,asdescribedfurtherbelow.Inadditiontotheemploymentagreements,Nasdaqhasentereda
confidentiality,nonͲsolicitationandinventionassignmentagreementwitheachofMr.Greifeld,Ms.FriedmanandMr.
Jochumsen.
Eachemploymentagreementprohibitstherelevantnamedexecutiveofficerfromrenderingservicestoacompeting
entityforaperiodoftwoyearsfollowingthelastdateofemployment.Toreceivecertainterminationpaymentsand
benefits,theofficermustexecuteageneralreleaseofclaimsagainstNasdaq.Inaddition,terminationpaymentsand
benefitsmaybediscontinuediftheofficerbreachestherestrictivecovenantsineithertheemploymentagreementor
theconfidentiality,nonͲsolicitationandinventionassignmentagreement.
Eachemploymentagreementsetsforththepaymentsandbenefitsthattherelevantnamedexecutiveofficerwill
receiveundervariousterminationscenarios.Forfurtherinformationaboutthesepaymentsandbenefits,see
“ExecutiveCompensationTables–PotentialPaymentsuponTerminationandChangeinControl.”
ROBERTGREIFELD
Mr.Greifeld’semploymentisgovernedbyanemploymentagreementdatedFebruary22,2012andamemorandumof
understandingdatedDecember11,2012.
Theemploymentagreementhasatermoffiveyears,withnoautomaticrenewals.Theagreementprovidesfor:
•
•
anannualbasesalaryofnolessthan$1,000,000;and
annualincentivecompensationthatistargetedatnotlessthan200%ofbasesalarybasedontheachievement
ofoneormoreperformancegoalsestablishedbytheManagementCompensationCommittee.
Althoughnoequityawardgrantsareguaranteedundertheagreement,Mr.Greifeldmayreceivegrantsofequity
awards,basedontheManagementCompensationCommittee’sevaluationoftheperformanceofNasdaqand
Mr.Greifeld,peergroupmarketdataandinternalequity,andconsistentwithpastpractices.
ThememorandumofunderstandingbetweenMr.GreifeldandNasdaqclarifiesthemeaningofcertaintermsrelevant
tothecalculationofseverancepaymentsunderhisemploymentagreement.
/43
2015PROXYSTATEMENT
ADENAT.FRIEDMAN
OnMay9,2014,NasdaqenteredintoanemploymentagreementwithMs.Friedman.Thetermoftheagreementis
June12,2014toJune12,2019.
TheagreementprovidesthatMs.FriedmanwillreportdirectlytotheCEOandreceive:
•
anannualbasesalaryofnolessthan$750,000;and
•
annualincentivecompensationthatistargetedatnotlessthan$1,250,000basedontheachievementofoneor
moreperformancegoalsestablishedbytheCEOandtheManagementCompensationCommittee.
Theagreementprovidedforthe2014grantsofRSUsandPSUstoMs.Friedmanthatarediscussedfurtherabove.For
eachofthecalendaryears2015,2016,2017and2018,Ms.Friedmanshallbeeligibleforatargetequitycompensation
awardofnotlessthan$3,000,000invalueinaccordancewiththetermsoftheEquityPlan.
HANSͲOLEJOCHUMSEN
OnAugust5,2014,NasdaqenteredintoanewemploymentagreementwithHansͲOleJochumsen.Thetermofthe
employmentagreementisAugust5,2014toAugust5,2019.
TheagreementprovidesthatMr.JochumsenwillreportdirectlytotheCEOandreceive:
•
anannualbasesalaryofnolessthan$600,000;and
•
annualincentivecompensationthatistargetedatnotlessthan$1,000,000basedontheachievementofoneor
moreperformancegoalsestablishedbytheCEOandtheManagementCompensationCommittee.
Foreachofthecalendaryears2015,2016,2017and2018,Mr.Jochumsenshallbeeligibleforatargetequity
compensationawardofnotlessthan$1,900,000invalueinaccordancewiththetermsoftheEquityPlan.
POTENTIALPAYMENTSUPONTERMINATIONANDCHANGEINCONTROL
OurCEOandPresidentshaveemploymentagreementsthatprovideforlimitedpaymentsandbenefitsintheeventthe
executive’semploymentisterminatedfollowingachangeincontrolofthecompany.Inaddition,wehaveadopteda
changeincontrolseveranceplancoveringourothernamedexecutiveofficersprovidinglimitedpaymentsandbenefits
iftheiremploymentisterminatedinconnectionwithachangeincontrol.Paymentsandbenefitsunderthese
agreementsandtheplanaresubjecttoa“doubletrigger,”meaningthatpaymentsaremadeonlywhenbothachange
incontrolofthecompanyandalossofemploymentoccur.WealsohaveprovisionsinourEquityPlanthatprovidefor
theacceleratedvestingofequityawardsifemploymentisterminatedduetoachangeincontrol.
/44
2015PROXYSTATEMENT
CHANGEINCONTROL
EmploymentAgreements.Undertheemploymentagreements,ifMr.Greifeld,Ms.FriedmanorMr.Jochumsen’s
employmentisterminatedwithintwoyearsafterachangeincontroleitherbythecompanywithoutcauseorthe
executiveforgoodreason,theexecutivewillbeentitledtothefollowingseverancepaymentsandbenefitsfromthe
company:
•
acashpaymentequaltothesumof:(i)twotimestheprioryear’sannualbasesalary,(ii)thetargetbonus
amountfortheyearpriortotheyearterminationoccursand(iii)anyproratatargetbonusfortheyearof
terminationifperformancegoalsaresatisfied;
•
ataxablemonthlycashpaymentequaltotheemployer’sshareoftheCOBRApremiumforthehighestlevelof
coverageavailableunderthecompany’sgrouphealthplans,untiltheearlierof24monthsorthedateheorshe
iseligibleforcoverageunderanotheremployer’shealthcareplan;and
•
continuedlifeinsuranceandaccidentaldeathanddismembermentinsurancebenefitsforthesameperiodas
thecontinuedhealthcoveragepayments.
Undera“bestnetprovision,”ifamountspayableduetoachangeincontrolwouldbesubjecttoanexcisetaxunder
Section4999,paymentsorbenefitstotheexecutivewouldbereducedtoanamountthatwouldnottriggeranexcise
tax.
Eachexecutive’srighttotheamountsdescribedaboveissubjecttohisorhercompliancewithseveralrestrictive
covenantsintheemploymentagreementandaconfidentiality,nonͲsolicitationandinventionassignmentagreement,
includingcovenantsrequiringtheexecutivetomaintaintheconfidentialityofthecompany’sproprietaryinformation
andtorefrainfromdisparagingthecompany.Eachexecutivealsoisprohibitedfromsolicitingthecompany’s
employeesorrenderingservicestoacompetitorfortwoyearsfollowingtermination.Further,toreceivebenefits,each
executivemustexecuteageneralreleaseofclaimsagainstthecompany.Inaddition,thechangeincontrolpayments
andbenefitsmaybediscontinuediftheexecutivebreachestherestrictivecovenants.
ChangeinControlSeverancePlan.Underthecompany’schangeincontrolseveranceplan,ExecutiveVicePresidents,
includingLeeShavel,areentitledtobenefitsintheeventofachangeincontrol.Iftheexecutive’semploymentis
terminatedbythecompanywithoutcausewithintwoyearsfollowingachangeincontrolorbytheexecutiveforgood
reasonwithinoneyearafterachangeincontrol,thenheorshewillbeentitledtothefollowingseverancepayments
andbenefitsfromthecompany:
•
acashpaymentequaltothesumof(i)twotimesannualbasesalary,(ii)thetargetbonusamountasdefinedby
theECIP,(iii)anyproratatargetbonusfortheyearofterminationand(iv)anyunpaidbonuswhichhadbeen
earnedforacompletedplanyear;
•
paymentoftheemployer’sshareofCOBRApremiumsforcontinuedcoverageunderhealthplansuntilthe
earlierof24monthsfollowingtermination,orthedatetheexecutiveiseligibleforcoverageunderanother
employer’shealthcareplan;and
•
outplacementservicesforupto12months,withamaximumvalueof$50,000.
Undera“bestnetprovision,”ifamountspayableduetoachangeincontrolwouldbesubjecttoanexcisetaxunder
Section4999,paymentsorbenefitstotheexecutivewouldbereducedtoanamountthatwouldnottriggeranexcise
tax.
Thechangeincontrolseveranceplancontainsrestrictivecovenants,which,amongotherthings,requiretheexecutive
tomaintaintheconfidentialityofthecompany’sproprietaryinformationandtorefrainfromdisparagingthecompany.
Eachexecutivealsoisprohibitedfromsolicitingthecompany’semployeesorrenderingservicestoacompetitorforone
yearfollowingtermination.Further,toreceivethebenefits,theexecutivemustexecuteageneralreleaseofclaims
againstthecompany.Inaddition,thechangeincontrolpaymentsandbenefitsmaybediscontinuediftheexecutive
breachestherestrictivecovenants.
/45
2015PROXYSTATEMENT
EquityPlan.UndertheEquityPlan,ifoutstandingawardsareassumedorsubstitutedbythesuccessorcompanyandan
employee,includinganamedexecutiveofficer,isinvoluntarilyterminatedbythecompanyotherthanforcausewithin
aoneͲyearperiodafterachangeincontrol,allunvestedequityawardswillvestontheterminationdate.Forawards
notassumedorsubstitutedbythesuccessorcompany,allunvestedawardsshallvestimmediatelypriortotheeffective
timeofthechangeincontrol.
TERMINATION(OTHERTHANFORCAUSEORCHANGEINCONTROL)
EmploymentAgreements.Undertheemploymentagreements,ifMr.Greifeld’s,Ms.Friedman’sorMr.Jochumsen’s
employmentisterminatedbythecompanywithoutcause,orbytheexecutiveforgoodreason,heorshewillbe
entitledtothefollowingseverancepaymentsandbenefitsfromthecompany:
•
acashpaymentequaltothesumof:(i)twotimestheprioryear’sannualbasesalary,(ii)thetargetbonus
amountfortheyearpriortotheyearterminatedand(iii)anyproratatargetbonusfortheyearoftermination
ifperformancegoalsaresatisfied;and
•
ataxablemonthlycashpaymentequaltotheemployer’sshareoftheCOBRApremiumforthehighestlevelof
coverageavailableunderthecompany’sgrouphealthplans,untiltheearlierof24monthsorthedateheorshe
iseligibleforcoverageunderanotheremployer’shealthcareplan.
Additionally,inordertoensureasmoothtransitiontosuccessors,Messrs.GreifeldandJochumsenmayterminatetheir
employmentbyprovidingthecompanywithatleast270dayspriorwrittennotice.Iftheexecutive’semploymentis
terminatedwithpriordeliveryofthisnotice,hewillbeentitledtothefollowingpaymentsandbenefits:
•
acashpaymentequaltoanyproratatargetbonusfortheyearofterminationifperformancegoalsare
satisfied;and
•
continuedvestingofalloutstandingequityawardsbasedonactualperformanceduringtherelevant
performanceperiod.
SeveranceforNamedExecutiveOfficers.Severancepaymentsandbenefitspayabletonamedexecutiveofficersnot
subjecttoanemploymentagreementorotherseverancearrangementwouldbemadeatthesolediscretionofthe
companyandtheManagementCompensationCommittee.Thesepaymentsarebasedonhistoricalpracticesand
predeterminedguidelinesthathavebeenapprovedbytheManagementCompensationCommittee.
IncentivePayments.UndertheECIP,intheeventanamedexecutiveofficer’semploymentisterminatedforanyreason
otherthandeath,disabilityorretirement,theexecutive’srighttoanonͲequityincentiveplancompensationawardfor
theyearofterminationisforfeited.TheManagementCompensationCommittee,initssolediscretion,maypayapro
rataincentivecompensationawardtotheexecutivefortheyearoftermination.
Equity.UnderMr.Greifeld’sstockoptionagreements,hisvestedstockoptionswouldremainexercisablefor36
months.
DEATHORDISABILITY
IncentivePayments.UndertheECIP,anamedexecutiveofficermay,inthediscretionoftheManagement
CompensationCommittee,receiveaprorataportionofhisorherincentivecompensationawardintheeventofdeath
ordisability.UndertheCEOandPresidents’employmentagreements,intheeventofdeathordisability,eachexecutive
isentitledtoaproratatargetbonusfortheyearoftermination.
Equity.UnderMr.Greifeld’semploymentagreement,intheeventofdeathordisability,heisentitledtoaccelerated
vestingofallunvestedstockoptionsthatwereawardedasoftheeffectivedateofhisagreement.UnderMr.
Jochumsen’sandMs.Friedman’semploymentagreements,intheeventofdeathordisability,heorsheisentitledto
acceleratedvestingofallunvestedequitythatwasawardedasoftheeffectivedateofhisorheragreement.
/46
2015PROXYSTATEMENT
Withrespecttotheothernamedexecutiveofficers,undertherelevanttermsandconditionsoftheEquityPlanandthe
individualequityawardagreements,allstockoptionsorRSUsthatwouldhavevestedwithinoneyearfromthedateof
deathordisabilitywillimmediatelyvestandallvestedoptionsmaybeexerciseduntiltheearlierofoneyearfromthe
dateofdeathordisabilityortheirexpirationdate.UnderthePSUawardagreementsforallthenamedexecutive
officers,intheeventofdisability,unvestedPSUawardswillbeforfeited.Intheeventofdeath,unvestedPSUawards
willvestuponthelaterofthedateofdeathorthedatetheperformanceperiodfortheawardsiscompleted.
OTHERARRANGEMENTS
Mr.Jacobs’lastdateofemploymentwiththecompanywasJanuary2,2015.Inconnectionwithhisretirement
announcement,Mr.Jacobsenteredintoatransitionagreementwiththecompany.Underthetermsoftheagreement,
Mr.Jacobsreceivedthebenefitsprovidedduetoretirementandapaymentintheamountof$1,412,500(minus
applicabletaxesandwithholdings),tobepaidin30periodicpaymentsonthecompany’sregularpayschedule.Mr.
JacobsalsoenteredintoaconsultingagreementwiththecompanyeffectiveJanuary2015withaminimumtermofsix
months.Mr.JacobsalsoiseligibleforCOBRAcoverage,atactiveemployeerates,for18monthsvaluedat$30,196and
otherperquisitesvaluedatapproximately$75,000.
Theagreementincludesseveralrestrictivecovenants,includingcovenantsrequiringconfidentialityofthecompany’s
proprietaryinformationandnonͲdisparagement,andageneralreleaseofclaims.Healsoisprohibitedfromrendering
servicesforacompetingentityforoneyearfollowingthedateofdeparture.
ESTIMATEDCHANGEINCONTROLORTERMINATIONPAYMENTSANDBENEFITS
Thetablesbelowreflectthepaymentsandbenefitspayabletoeachnamedexecutiveofficerintheeventofa
terminationoftheexecutive’semploymentunderseveraldifferentcircumstances.Theamountsshownassumethat
terminationwaseffectiveasofDecember31,2014,giventheexecutive’scompensationandservicelevelsasofthat
date,andareestimatesoftheamountsthatwouldbepayabletothenamedexecutiveofficersineachsituation.The
actualamountstobepaidcanonlybedeterminedatthetimeofanexecutive’sactualseparationfromthecompany.
Factorsthatmayaffectthenatureandamountofpaymentsmadeonterminationofemployment,amongothers,
includethetimingoftheevent,compensationlevel,themarketpriceofthecompany’scommonstockandthe
executive’sage.Amountsshownintheeventofaninvoluntaryterminationofemploymentfornamedexecutive
officerswithoutanemploymentagreementarebasedonhistoricalpracticesandpredeterminedguidelines.The
reportedvalueoftheacceleratedvestingofoutstandingequityawardsisbasedontheintrinsicvalueoftheseawards
(thevaluebaseduponthemarketpriceofthecompany’scommonstockonDecember31,2014,reducedinthecaseof
stockoptions,bytheoptionexerciseprice).Theamountsshowninthetabledonotincludepaymentsandbenefits
availablegenerallytosalariedemployees,suchasaccruedvacationpay,pensionbenefitsandanydeath,disabilityor
welfarebenefitsavailableunderbroadͲbasedplans.Forinformationonpensionanddeferredcompensationplans,see
the“PensionBenefitsTable”onpage42.
/47
2015PROXYSTATEMENT
INVOLUNTARYNOT
FORCAUSEOR
VOLUNTARYWITH
GOODREASON
ROBERTGREIFELD
SeveranceandOther
EquityVesting
DEATH/
DISABILITY
$6,200,000
Vestedoptions
exercisablefor
36months
TERMINATIONDUETO
CHANGEINCONTROL
("DOUBLEͲTRIGGER")
$2,100,000
$2,100,000
$6,200,000
$19,519,720
$19,519,720
$10,135,531
Health&WelfareBenefits
$41,044
–
–
$45,880
TOTAL
$6,241,044
$21,619,720
$21,619,720
$16,381,411
LEESHAVEL
Severance
$1,500,000
–
–
$1,750,000
NonͲEquityIncentive
Compensation
$900,375
$900,375
–
$900,375
EquityVesting
–
$5,893,181(1)
–
$4,179,234
$20,845
–
–
$41,690
OutplacementServices
$20,400
–
–
$20,400
TOTAL
$2,441,620
$6,793,556
–
$6,891,699
ADENAT.FRIEDMAN
SeveranceandOther
$4,000,000
$1,250,000
–
$4,000,000
EquityVesting
–
$10,855,219
–
$8,325,137
$41,690
–
–
$46,046
TOTAL
$4,041,690
$12,105,219
–
$12,371,183
HANSͲOLEJOCHUMSEN
(1)
RESIGNATION
THROUGHNONͲ
CONTINUATION
NOTICE
SeveranceandOther
$2,968,000
$1,000,000
$1,000,000
$2,968,000
EquityVesting
$3,705,486
$3,705,486
$3,705,486
$1,759,988
$28,074
–
–
$31,566
TOTAL
$6,701,560
$4,705,486
$4,705,486
$4,759,554
Upondisability,unvestedPSUswithafacevalueof$3,489,426onDecember31,2014wouldhavebeenforfeited.
/48
2015PROXYSTATEMENT
SECTION16(a)BENEFICIALOWNERSHIPREPORTING
COMPLIANCE
Section16(a)oftheExchangeAct,andregulationsoftheSECthereunder,requireourexecutiveofficersanddirectors,
andpersonswhobeneficiallyownmorethan10%ofaregisteredclassofourequitysecurities,tofilereportsofinitial
ownershipandchangesinownershipwiththeSEC.Basedsolelyonourreviewofcopiesofsuchformsreceivedby
Nasdaq,oronwrittenrepresentationsfromreportingpersonsthatnootherreportswererequiredforsuchpersons,
webelievethatduring2014,ourexecutiveofficers,directorsand10%stockholderscompliedwithalloftheSection
16(a)filingrequirements,exceptonFebruary2,2015,EdwardS.KnightfiledalateForm5reportingtwocharitable
gifts,andonFebruary9,2015,RobertGreifeldfiledalateForm5reportingonecharitablegift.
SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERS
ANDMANAGEMENT
Thefollowingtableandaccompanyingfootnotesshowinformationregardingthebeneficialownershipofourcommon
stockasoftherecorddateby:
•
eachpersonwhoisknownbyustoownbeneficiallymorethan5%ofourcommonstock;
•
eachcurrentdirectorandnomineefordirector;
•
eachnamedexecutiveofficer;and
•
alldirectorsandexecutiveofficersasagroup.
Exceptasotherwiseindicated,webelievethatthebeneficialownerslistedbelow,basedoninformationfurnishedby
suchowners,willhavesoleinvestmentandvotingpowerwithrespecttosuchshares,subjecttocommunityproperty
lawswhereapplicable.Sharesofcommonstockunderlyingoptionsthatarecurrentlyexercisableorexercisablewithin
60daysareconsideredoutstandingandbeneficiallyownedbythepersonholdingtheoptionsforthepurposesof
computingthepercentageownershipofthatperson,butarenottreatedasoutstandingforthepurposeofcomputing
thepercentageownershipofanyotherperson.HoldersofRSUsandPSUsgrantedundertheEquityPlanhavetheright
todirectthevotingofthesharesunderlyingthoseRSUsandPSUsonlytotheextentthesharesarevested.
Asoftherecorddate,169,188,070sharesofcommonstockwereoutstanding.Exceptasnotedbelow,eachstockholder
isentitledtothenumberofvotesequaltothenumberofsharesofcommonstockheldbysuchstockholder,subjectto
the5%votinglimitationcontainedinourAmendedandRestatedCertificateofIncorporation.
/49
2015PROXYSTATEMENT
COMMONSTOCK
BENEFICIALLYOWNED
PERCENTOFCLASS(1)
BorseDubaiLimited(2)
Level7,PrecinctBuilding5,GateDistrictDIFC,DubaiUAE
29,780,515
17.6%
InvestorAB(3)
PatriciaHoldingAB,Arsenalsgatan8C,SͲ10332,Stockholm,SwedenV7
19,394,142
11.5%
MassachusettsFinancialServicesCompany(4)
111HuntingtonAvenue,Boston,MA02199
15,208,236
9.0%
BlackRock,Inc.(5)
nd
55East52 Street,NewYork,NY10022
11,499,834
6.8%
TheVanguardGroup,Inc.(6)
100VanguardBlvd.,Malvern,PA19355
8,673,284
5.1%
CharleneT.Begley
–
*
StevenD.Black(7)
10,560
*
BörjeE.Ekholm(8)
33,033
*
GlennH.Hutchins(9)
177,740
*
EssaKazim(10)
21,357
*
ThomasA.Kloet
–
*
JohnD.Markese(11)
58,205
*
EllynA.McColgan(12)
15,034
*
ThomasF.O’Neill(13)
13,831
*
MichaelR.Splinter(14)
28,612
*
LarsR.Wedenborn(15)
42,599
*
2,762,868
1.6%
AdenaT.Friedman(17)
34,451
*
142,401
*
JohnL.Jacobs(19)
281,380
*
LeeShavel(20)
133,016
*
3,852,315
2.2%
NAMEOFBENEFICIALOWNER
RobertGreifeld(16)
AllDirectorsandExecutiveOfficersofNasdaqasaGroup(23Persons)
*
Representslessthan1%.
(1) ManyoftheEuropeancountrieswhereweoperateregulatedentitiesrequirepriorgovernmentalapprovalbeforeaninvestoracquires10%or
greaterofourcommonstock.
(2) Asoftherecorddate,basedsolelyoninformationincludedinanamendmenttoSchedule13D,filedMarch27,2012,BorseDubaihadshared
votinganddispositivepowerover29,780,515shares.BorseDubaiisamajorityͲownedsubsidiaryofInvestmentCorporationofDubai,and
therefore,eachofBorseDubaiandInvestmentCorporationofDubaimaybedeemedtobethebeneficialownerofthe29,780,515sharesheld
byBorseDubai.BorseDubaiandNasdaqhaveenteredintoanagreementthatlimitsBorseDubai’svotingpowerto4.35%ofNasdaq’stotal
outstandingshares.AllofthesharesheldbyBorseDubaiarepledgedassecurityforoutstandingindebtedness.
(3) Asoftherecorddate,basedsolelyoninformationincludedinaForm4,filedMay25,2012,PatriciaHoldingABhadsolevotinganddispositive
powerover19,394,142shares.PatriciaHoldingABis100%ownedandcontrolledbyInvestorAB,andtherefore,eachofPatriciaHoldingABand
InvestorABmaybedeemedtobethebeneficialownerofthe19,394,142sharesheldbyPatriciaHoldingAB.
(4) Asoftherecorddate,basedsolelyoninformationincludedinaSchedule13G,filedFebruary3,2015,MassachusettsFinancialServices
Companyindicatedthatithasbeneficialownershipof,andsoledispositivepowerwithrespectto,15,208,236sharesandsolevotingpower
withrespectto14,112,692shares.
/50
2015PROXYSTATEMENT
(5) Asoftherecorddate,basedsolelyoninformationincludedinaSchedule13G/A,filedFebruary9,2015,BlackRock,Inc.indicatedthatithas
beneficialownershipof,andsoledispositivepowerwithrespectto,11,499,834sharesandsolevotingpowerwithrespectto10,401,346shares
asaresultofbeingaparentcompanyorcontrolpersonofthefollowingsubsidiaries:BlackRock(Luxembourg)S.A.,BlackRock(Netherlands)
B.V.,BlackRockAdvisors(UK)Limited,BlackRockAdvisors,LLC,BlackRockAssetManagementCanadaLimited,BlackRockAssetManagement
IrelandLimited,BlackRockCapitalManagement,BlackRockFinancialManagement,Inc.,BlackRockFundAdvisors,BlackRockInstitutionalTrust
Company,N.A.,BlackRockInternationalLimited,BlackRockInvestmentManagement(Australia)Limited,BlackRockInvestmentManagement
(UK)Ltd,BlackRockInvestmentManagement,LLC,BlackRockJapanCoLtd,andBlackRockLifeLimited.
(6) Asoftherecorddate,basedsolelyoninformationincludedinaSchedule13G,filedFebruary11,2015,TheVanguardGroup,Inc.indicatedthat
ithasbeneficialownershipof8,673,284shares,solevotingpowerwithrespectto198,367shares,soledispositivepowerwithrespectto
8,483,217sharesandshareddispositivepowerwithrespectto190,067shares.TheSchedule13Gincludessharesbeneficiallyownedbythe
followingwhollyownedsubsidiariesofTheVanguardGroup,Inc.:VanguardFiduciaryTrustCompany,asaresultofitsservingasinvestment
managerofcollectivetrustaccounts(157,767shares);andVanguardInvestmentsAustralia,Ltd.,asaresultofitsservingasinvestment
managerofAustralianinvestmentofferings(72,900shares).
(7) Represents10,560vestedsharesofrestrictedstockgrantedundertheEquityPlan.
(8) Represents(i)23,033vestedsharesofrestrictedstockgrantedundertheEquityPlanand(ii)10,000sharesacquiredthroughopenmarket
purchases.ExcludessharesofNasdaqcommonstockownedbyPatriciaHoldingAB.PatriciaHoldingABisawhollyownedsubsidiaryofInvestor
AB,ofwhichMr.EkholmisPresidentandCEO.Mr.Ekholmdisclaimsbeneficialownershipofsuchshares.
(9) Represents23,440vestedsharesofrestrictedstockgrantedundertheEquityPlan.Mr.HutchinsdisclaimsbeneficialownershipofanyNasdaq
securitiesthatmaybeheldbySilverLakeoritsaffiliates,excepttotheextentofanypecuniaryinteresthemayhavetherein.Alsoincludes
154,300sharesheldbytheHutchinsFamilyFoundation,aprivatecharitablefoundation.Mr.HutchinsservesasChairmanoftheHutchins
FamilyFoundationandassuchmaybedeemedtobeneficiallyownsuchshares,whichhedisclaims.
(10) Represents21,357vestedsharesofrestrictedstockgrantedundertheEquityPlan.ExcludessharesofNasdaqcommonstockownedbyBorse
Dubai.H.E.Kazim,whoisChairmanofBorseDubai,disclaimsbeneficialownershipofsuchshares.
(11) Represents(i)1,424sharesofstockacquireduponexerciseofvestedstockoptionsand(ii)56,781vestedsharesofrestrictedstockgranted
undertheEquityPlan.AllofthesesharesareheldbytheJohnD.MarkeseTrustSeptember2,1999,ofwhichDr.Markeseisatrusteeand
beneficiary.
(15) Represents(i)2,599vestedsharesofrestrictedstockgrantedundertheEquityPlan,(ii)30,000sharesheldbyapensioninsurancefundinthe
nameofFAMAB,whichisMr.Wedenborn’semployerand(iii)10,000sharesheldbyapensioninsurancefundinthenameofInvestorAB,
whichisMr.Wedenborn’sformeremployer.
(16) Represents(i)338,052sharesofstockacquireduponexerciseofvestedstockoptions,(ii)1,860,000vestedoptionstopurchasestockgranted
undertheEquityPlan,(iii)209,383vestedsharesofrestrictedstock,(iv)354,795vestedsharesunderlyingPSUsgrantedundertheEquityPlan
and(v)638sharesofstockpurchasedpursuanttotheESPP.
(17) Represents34,451sharesgrantedundertheEquityPlanorpurchasedpursuanttotheESPPwhenMs.Friedmanwaspreviouslyanemployeeof
Nasdaq.
(18) Represents(i)71,825vestedoptionstopurchasestockgrantedundertheEquityPlan,(ii)69,938vestedsharesunderlyingPSUsgrantedunder
theEquityPlanand(iii)638sharesofstockpurchasedpursuanttotheESPP.
(19) Represents(i)145,372vestedoptionstopurchasestockgrantedundertheEquityPlan,(ii)33,934vestedsharesofrestrictedstock,(iii)82,735
vestedsharesunderlyingPSUsgrantedundertheEquityPlanand(iv)19,339sharesofstockpurchasedpursuanttotheESPP.
(20) Represents(i)41,257vestedoptionstopurchasestockgrantedundertheEquityPlan,(ii)35,502vestedsharesofrestrictedstockgrantedunder
theEquityPlanand(iii)56,257vestedsharesunderlyingPSUsgrantedundertheEquityPlan.
/51
2015PROXYSTATEMENT
PROPOSALIII:RATIFICATIONOFTHEAPPOINTMENTOF
INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM
TheBoardofDirectorsunanimouslyrecommendsavoteFORratificationofthe
appointmentofErnst&YoungLLPasNasdaq’sindependentregisteredpublic
accountingfirmfortheyearendedDecember31,2015.
TheAuditCommitteeoftheBoardhasselectedErnst&YoungLLPasourindependentregisteredpublicaccountingfirm
toauditourfinancialstatementsforfiscalyear2015.TheselectionisbasedontheresultsoftheCommittee’sannual
evaluationofthefirm.TheCommitteeandthefullBoardbelievethatthecontinuedretentionofErnst&Youngasthe
independentregisteredauditorisinthebestinterestsofthecompanyanditsstockholders.Weareaskingthe
stockholderstoratifytheAuditCommittee’sselectionofErnst&YoungLLPforfiscalyear2015.Intheeventthe
stockholdersfailtoratifytheselectionofErnst&YoungLLP,theAuditCommitteewillreconsiderthisselection.
Ernst&YoungLLPhasauditedNasdaq’sfinancialstatementssincefiscalyear1986.ThecurrentErnst&YoungLLPlead
engagementpartnerwasdesignatedcommencingwiththe2014audit.RepresentativesofErnst&YoungLLPare
expectedtobepresentattheannualmeetingwiththeopportunitytomakeastatementiftheydesiretodoso,andare
expectedtobeavailabletorespondtoappropriatequestions.
ThetablebelowshowstheamountoffeesNasdaqpaidtoErnst&YoungLLPforfiscalyears2014and2013(including
expenses).DetailsofthefeesarebasedonthecategoriesprovidedbytheSECauditorindependencerulesthatbecame
effectivein2003.
2014
2013
$6,867,280
$6,604,363
Auditfees(1)
AuditͲrelatedfees(2)
AuditandauditͲrelatedfees
Taxfees
Allotherfees(3)
TOTAL(4)
520,000
595,000
7,387,280
7,199,363
28,000
–
400,000
191,395
$7,815,280
$7,390,758
(1) Auditserviceswereprovidedgloballyin2014and2013.FeesrelatedtoauditsofinternationalsubsidiariesaretranslatedintoU.S.dollars.
(2) The2014and2013auditͲrelatedfeesprimarilyincludeduediligenceonstrategicinitiatives,includingmergersandacquisitions,aswellasother
attestationreportsissued.
(3) The2014and2013otherfeesprimarilyrelatetoSwedishFinancialSupervisoryAuthoritylistingrequirementsforcompaniesapplyingfora
listingonNASDAQOMXStockholmAB.Thevalidationofthecompanyisrequiredtobeperformedbyanexternalaccountingfirm.Thefeesare
collectedfromthelistingcompanybyusandpaidtoErnst&YoungLLPonbehalfofthelistingcompany.
(4) FeesexcludeservicesprovidedtoNasdaq’snonͲprofitentitiesandservicesprovidedinrelationtoNasdaq’sroleasadministratorforthe
UnlistedTradingPrivilegesPlan.
AuditfeesprimarilyrepresentfeesfortheauditofNasdaq’sannualfinancialstatementsincludedinourannualreport
onForm10ͲK,thereviewofNasdaq’squarterlyreportsonForm10ͲQ,statutoryauditsofsubsidiariesasrequiredby
statutesandregulations,accountingconsultationsonmattersaddressedduringtheauditorinterimreviews,comfort
lettersandconsents,andinternalcontrolattestationandreportingrequirementsofSection404oftheSarbanesͲOxley
Actof2002.AuditͲrelatedfeesprimarilyrepresentfeesforconsultationsassociatedwithstrategicinitiatives,including
mergersandacquisitions.
UndertheSarbanesͲOxleyAct,theAuditCommitteeisresponsiblefortheappointment,retention,approvalof
compensationandoversightoftheservicesprovidedbyNasdaq’sindependentregisteredpublicaccountingfirm.The
AuditCommitteeisrequiredtopreͲapprovebothauditandnonͲauditservicesperformedbytheindependent
registeredpublicaccountingfirm,andNasdaq’sAuditCommitteepreͲapprovedallsuchservicesin2014and2013.
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2015PROXYSTATEMENT
AUDITCOMMITTEEREPORT
Inaccordancewithitswrittencharter,theAuditCommitteeoftheBoardofDirectorsassiststheBoardinfulfillingits
responsibilityforoversightofthequalityandintegrityofNasdaq’saccounting,auditing,financialreportingpractices
andriskmanagement.TheAuditCommitteealsoassiststheBoardbyreviewinganddiscussingtheeffectivenessof
controlsoverNasdaq’sregulatoryandERMstructureandprocess.TheAuditCommitteealsoassiststheBoardby
reviewinganddiscussingNasdaq’sglobalethicsandcorporatecomplianceprogramandconfidentialwhistleblower
process.TheAuditCommitteechartercomplieswiththeapplicableprovisionsoftheSarbanesͲOxleyActof2002and
relatedrulesoftheSECandTheNasdaqStockMarket.ThecompletetextofthecharterisavailableonNasdaq’s
website(see“OnlineResources”onpage69).
EachoftheAuditCommitteemembersmeetstheindependencecriteriaprescribedbyRule10AͲ3adoptedpursuantto
theSarbanesͲOxleyActof2002andisan“independentdirector”asdefinedinthelistingrulesofTheNasdaqStock
Market.EachoftheAuditCommitteemembersmeetsthefinancialknowledgerequirementsofTheNasdaqStock
MarketandhasbeendesignatedbytheBoardofDirectorsasan“auditcommitteefinancialexpert”underSECrules.
TheAuditCommitteeobtainedfromtheindependentregisteredpublicaccountingfirmaformalwrittenstatement
describingallrelationshipsbetweenthefirmandNasdaqthatmightbearonthefirm’sindependence,consistentwith
theapplicablerequirementsofthePublicCompanyAccountingOversightBoard.TheAuditCommitteediscussedwith
theindependentregisteredpublicaccountingfirmanyrelationshipsthatmayimpactthefirm’sobjectivityand
independenceandsatisfieditselfastothefirm’sindependence.TheAuditCommitteediscussedandreviewedwiththe
independentregisteredpublicaccountingfirmallcommunicationsrequiredbygenerallyacceptedauditingstandards,
includingthosedescribedinAuditingStandardNo.16,“CommunicationswithAuditCommittees”asadoptedbythe
PublicCompanyAccountingOversightBoard,andwithandwithoutmanagementpresent,discussedandreviewedthe
resultsoftheindependentregisteredpublicaccountingfirm’sexaminationofthefinancialstatements.TheAudit
CommitteealsodiscussedtheresultsoftheinternalauditexaminationsandERMprogramresults.TheAudit
CommitteeapprovedallauditandallowablenonͲauditservices.
TheAuditCommitteediscussedwithmanagement,theinternalauditorsandtheindependentregisteredpublic
accountingfirmthequalityandadequacyofNasdaq’sinternalcontrolsandtheinternalauditfunction’sorganization,
responsibilities,budgetandstaffing.TheAuditCommitteereviewedwithboththeindependentregisteredpublic
accountingfirmandtheinternalauditorstheirauditplans,auditscopeandidentificationofauditrisks.Inaddition,the
AuditCommitteereviewedandapprovedallrelatedpartytransactions.
TheAuditCommitteereviewedanddiscussedNasdaq’sauditedfinancialstatementsasofandforthefiscalyearended
December31,2014,withmanagementandtheindependentregisteredpublicaccountingfirm.Managementhasthe
responsibilityforthepreparationofNasdaq’sfinancialstatementsandtheindependentregisteredpublicaccounting
firmhastheresponsibilityfortheexaminationofthosestatements.Also,theAuditCommitteecompleteditsoversight
oftheglobalethicsandcorporatecomplianceprogramandconfidentialwhistleblowerprocess.
BasedontheaboveͲmentionedreviewsanddiscussions,theAuditCommitteerecommendedtotheBoardofDirectors
thattheauditedfinancialstatementsbeincludedinNasdaq’sannualreportonForm10ͲKforthefiscalyearended
December31,2014forfilingwiththeSEC.
THEAUDITCOMMITTEE
JohnD.Markese,Chair
CharleneT.Begley
EllynA.McColgan
LarsR.Wedenborn
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2015PROXYSTATEMENT
PROPOSALIV:APPROVALOFTHENASDAQECIP,AS
AMENDEDANDRESTATED
P
TheBoardofDirectorsunanimouslyrecommendsavoteFORtheapprovaloftheNasdaq
ECIP,asamendedandrestated.
PerformanceͲbasedincentivesareafoundationofourcompensationprogram.Accordingly,weofferannual
performanceͲbasedcashincentiveawardsunderourexecutivecorporateincentiveplantokeyemployeeswith
significantresponsibilityforthesuccessandgrowthofNasdaq.TheNasdaqECIP,asamendedandrestated,isdesigned
to:(1)promoteattainmentofthecompany’ssignificantbusinessobjectives,(2)encourageandrewardmanagement
teamworkacrosstheentirecompanyand(3)assistintheattractionandretentionofemployeesvitaltothecompany’s
longͲtermsuccess.
WeareaskingforyourapprovaloftheECIPinordertomeetthestockholderapprovalrequirementsunderSection
162(m)oftheCode.Generally,Section162(m)oftheCodelimitsthetaxdeductibilityofcompensationpaidtocovered
employeesto$1millionperofficerperyearunlessthecompensationqualifiesas“performanceͲbased.”Compensation
qualifiesasperformanceͲbasedonlyifitispayableonaccountofperformanceandsatisfiesotherrequirements,oneof
whichisthattheplanunderwhichthecompensationispaidbeapprovedbystockholders.Approvalofthisproposal
willconstitutetherequiredapprovalforSection162(m)purposes.
AsummaryoftheECIPissetforthbelow.Thesummaryisqualifiedinitsentiretybyreferencetothefulltextofthe
ECIPattachedasAnnexBonpage73ofthisproxystatement.
QUESTIONSANDANSWERSABOUTTHEECIP
1. WhatarethematerialchangestotheECIP?
TheECIPissubstantiallysimilartothepriorversion,whichwasapprovedbythecompany’sstockholdersatthe2010
annualmeeting,exceptfortwomaterialchanges.First,therevisedECIPenhancesthelistofavailableperformance
measurestobetteralignwithcompanyperformancemeasuresandmatchthelistofperformancecriteriaintheEquity
Plan,whichwasapprovedbystockholdersatlastyear’sannualmeeting.Second,therevisedECIPclarifiesthatawards
undertheECIPmaybesubjecttothecompany’sincentiverecoupmentpolicy.
2. HowistheECIPadministered?
TheECIPisadministeredbytheManagementCompensationCommittee.TheManagementCompensationCommittee
hasfullauthorityanddiscretionto:(i)determineeligibilityforparticipationintheECIP,(ii)makeawardsunderthe
ECIP,(iii)establishthetermsandconditionsofawards(including,withoutlimitation,thelengthoftheperformance
period,theperformancegoalsandtheperformancemeasures)and(iv)determineandcertifywhetherthe
performancegoalshavebeenachieved.
TheManagementCompensationCommitteeisauthorizedtointerprettheECIP,adoptadministrativerules,regulations,
proceduresandguidelinesfortheplan,andcorrectanydefectsandotherinconsistenciesintheplan.
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2015PROXYSTATEMENT
3. WhoiseligibletoparticipateintheECIP?
ParticipationintheECIPislimitedtoactiveemployeesofthecompanyorparticipatingaffiliateswhoareemployedin
anexecutivecapacity.TheCEO,orhisorherdesignee,mayrecommendemployeesforselectionasparticipantsinthe
ECIP,andtheManagementCompensationCommittee,initssolediscretion,hastheauthoritytoselectemployeesto
participate.AsofMarch27,2015,thereare11officersandkeyemployeesofthecompanywhoareeligibleto
participateintheECIP.
4. WhattypesofawardsaremadeundertheECIP?
TheManagementCompensationCommitteemay,initsdiscretion,grantperformanceͲbasedcashawardstoeligible
participantsundertheECIP.Noawardpaidtoaparticipantforaperformanceperiodofoneyearormoremayexceed
thegreaterof3%ofthecompany’sbeforeͲtaxnetincomeor$3,000,000.Aperformanceperiodgenerallyisacalendar
yearbutcanbelongerorshorterifapprovedbytheManagementCompensationCommittee.Foraperformanceperiod
oflessthanoneyear,themaximumawardlimitwillbeproͲrated.
5. Whatperformancemeasuresareused?
CashawardsundertheECIPwillbeconditionedupontheachievementofpreͲestablishedgoalsrelatingtooneormore
ofthefollowingperformancemeasuresasestablishedbytheManagementCompensationCommittee:
x
earningsbeforeinterestandtaxes;
x
earningsbeforeinterest,taxes,depreciationandamortization;
x
earningspershareofNasdaq’scommonstock;
x
operatingincome,netincome,netincomefromoperations,revenues,netrevenuesornetexchangerevenues
(beforeoraftertaxes,andwhichmaytakeintoaccountorexcludetheeffectofnonͲrecurringorextraordinary
chargesand/orexpenses);
x
operatingorprofitmarginornetprofit(beforeoraftertaxes,andwhichmaytakeintoaccountorexcludethe
effectofnonͲrecurringorextraordinarychargesand/orexpenses);
x
revenuegrowth;
x
sharepriceortotalshareholderreturn;
x
marketshare;
x
returnmeasures(includingwithoutlimitationreturnonassetsornetassets,capital,revenue,netrevenue,
incomeornetincome);
x
cashflow(includingwithoutlimitationoperatingcashflowand/orfreecashflow;
x
adherencetobudgetorexpensetargets;
x
planningaccuracy(asmeasuredbycomparingplannedresultstoactualresults);
x
objectivelydeterminableeffectiveness,efficiency,businessretention/expansion,businesssupportorother
operationalorsupportgoals;and
x
businesseffectivenesssurveyresultsorobjectivelydeterminableemployeeengagementordevelopment
goals.
Performancemeasuresmayrelatetothecompanyasawholeortoabusinessunit,division,departmentorfunctionof
thecompanyoranysubsidiary,asspecifiedbytheManagementCompensationCommittee.Performancemaybe
measuredonanabsolutebasisorrelativetoapreͲestablishedtarget,toapreviousyear’sorperiod’sresultsortoa
designatedcomparisongrouporcompanyorstockmarketindex,ineachcaseasspecifiedbytheManagement
CompensationCommittee.
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2015PROXYSTATEMENT
6. Whenaregoalsestablished?
Thegoalsforaperformanceperiod,andthemethodforcomputingtheamountpayableonattainmentofgoals,
generallyareestablishednolaterthanninety(90)daysafterthebeginningofanapplicableperformanceperiod,or
duringashorterperiodifrequiredbySection162(m).
7. Arebonusesrequiredtobepaidifperformancegoalsaremet?
No.TheManagementCompensationCommitteemayreduce(includingtozero)theamountofanyawardifit
concludesthatreductionisnecessaryorappropriateinitsdiscretion,butmaynotincreaseanyawardthatisintended
tobeperformanceͲbasedcompensationunderSection162(m)oftheCode.
TheManagementCompensationCommittee,initsdiscretion,alsomayestablishadditionalrestrictionsorconditions
thatmustbesatisfiedasaconditiontopaymentofalloraportionofanaward.Theserestrictionsandconditionsmay
include,amongothers,thereceiptbyaparticipantofaspecifiedannualperformancerating,avestingrequirement
and/ortheachievementofspecifiedperformancegoalsbythecompany,businessunitorparticipant.
8. Whenareawardspaid?
PaymentofawardswillbemadeaspromptlyaspracticableaftertheManagementCompensationCommitteehas
certifiedinwritingtheachievementofapplicableperformancegoalsandothermaterialterms.Ifanawardissubjectto
avestingrequirementorsatisfactionofotherconditions,paymentwillbemadeassoonaspracticablefollowingthe
participant’ssatisfactionoftheotherapplicablerequirementorcondition.Innoevent,however,mayanawardbepaid
laterthantwoandoneͲhalf(21/2)monthsfollowingtheendofthecalendaryearthatincludestheendofthe
performanceperiodor,iflater,thedatetheotherrequirementorconditionissatisfied.
9. Whathappensintheeventofaparticipant’sterminationofemployment?
Undertheplan,intheeventaparticipant’semploymentisterminatedbyreasonofdeath,disabilityorretirement(as
definedintheECIP),theawardshallbereducedonaproͲratedbasistoreflectpartialparticipationduringthe
performanceperiodthroughthedateofsuchtermination,subjecttotheManagementCompensationCommittee’s
certificationthat,withrespecttoterminationofemploymentduetoretirement,theapplicableperformancegoal(s)for
theperformanceperiodhavebeenmet.
Undertheplan,intheeventaparticipant’semploymentisterminatedforanyreasonotherthandeath,disabilityor
retirement,alloftheparticipant’srightstoanawardfortheperformanceperiodtheninprogressshallbeforfeited.
However,theManagementCompensationCommitteemay,initssolediscretion,payaproͲratedawardfortheportion
oftheperformanceperiod,iftheManagementCompensationCommitteecertifiesthattheapplicableperformance
goalsfortheperformanceperiodhavebeenmet.ProͲratedawardsshallbepaidonthenormalpaymentdateforthe
relevantperformanceperiod.
10.Areawardstransferable?
No.Aparticipant’srightsundertheECIPmaynotbeassigned,pledgedorotherwisetransferredexcept,intheeventof
theparticipant’sdeath,totheparticipant’sdesignatedbeneficiaryor,otherwise,bywillorbythelawsofdescentand
distribution.
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2015PROXYSTATEMENT
11.CantheECIPbeamendedorterminated?
Yes.TheManagementCompensationCommitteemayamend,suspendorterminatetheECIPatanytime.No
amendment,however,maybemadewithouttheconsentofthecompany’sstockholdersiftheeffectofsuch
amendmentwouldbetocauseoutstandingorpendingawardstoceasetoqualifyfortheperformanceͲbased
compensationexceptiontoSection162(m)oftheCode.TheManagementCompensationCommitteemayatanytime
(withouttheconsentofparticipants)modify,amendorterminateanyoralloftheprovisionsoftheECIPtotheextent
necessarytoconformsuchprovisionstoSection409AoftheCode.TheECIPwillremainineffectuntilitisterminated
bytheBoardortheManagementCompensationCommittee.
12.Whatarethefederalincometaxconsequencestoparticipants?
Whenanypartofanawardispaidincashtoaparticipant,theparticipantwillrealizecompensationtaxableasordinary
income,subjecttoapplicableincomeandemploymenttaxwithholding,inanamountequaltothecashpaid.
13.Arethereanylimitationsonthecompany’sdeductions?
Thecompanywillgenerallybeentitledtoadeductioninthesameamountandatthesametimethattheparticipant
recognizesordinaryincome.Withcertainexceptions,Section162(m)oftheCodelimitsthecompany’sdeductionfor
compensationinexcessof$1milliondollarspaidtothecompany’sCEOanditsthreeotherhighestͲpaidexecutive
officers(otherthantheprincipalfinancialofficer).Compensationpaidtocoveredemployeesisnotsubjecttothe
deductionlimitationifitisconsidered“qualifiedperformanceͲbasedcompensation”withinthemeaningofSection
162(m)oftheCode.Ifthecompany’sstockholdersapprovetheECIP,thecompanyintendsthatperformanceawards
(intendedtobetreatedasqualifiedperformanceͲbasedcompensationasdefinedintheCode)grantedtocovered
employeesundertheECIPwillsatisfytherequirementsofqualifiedperformanceͲbasedcompensation,andtherefore,
thecompanywillbeentitledtoadeductionwithrespecttothepaymentofsuchawards.However,withrespectto
awardsthatarenotintendedtobetreatedasqualifiedperformanceͲbasedcompensationasdefinedintheCode,the
deductionthatthecompanymightotherwisereceivemaybedisallowed.
14.WhatbenefitsareexpectedtobeprovidedundertheECIP?
Thecashincentiveawardsfor2014thatwerepaidinFebruary2015tonamedexecutiveofficersunderthe2010ECIP
arelistedinthe“NonͲEquityIncentivePlanCompensation”columnoftheSummaryCompensationTableabove.Since
thecashincentiveawardsfor2015aresubjecttothesatisfactionofperformancegoals,theactualamountstobepaid
undertheECIPforperformanceduring2015havenotbeendetermined.Additionally,sinceawardsundertheECIPin
futureyearsaredeterminedbytheManagementCompensationCommitteeinitssolediscretionandsuchawardsare
basedonfutureachievementofperformancegoals,thebenefitsoramountsthatwillbereceivedorallocatedunder
theECIPinthefuturearenotpresentlydeterminable.
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2015PROXYSTATEMENT
PROPOSALV:STOCKHOLDERPROPOSAL–RIGHTTOACTBY
WRITTENCONSENT
TheBoardofDirectorsunanimouslyrecommendsavoteAGAINSTProposalV.
Mr.KennethSteiner,14StonerAve.,2M,GreatNeck,NY11021,ownerofnolessthan500sharesofNasdaqcommon
stock,hasinformedNasdaqthatheplanstointroducethefollowingproposalattheannualmeeting.Wearenot
responsiblefortheaccuracyorcontentoftheproposalandsupportingstatement,whicharepresentedbelowas
receivedfromtheproponent.
STOCKHOLDERPROPOSALANDSUPPORTINGSTATEMENT
“PROPOSAL5ͲRIGHTTOACTBYWRITTENCONSENT
Resolved,Shareholdersrequestthatourboardofdirectorsundertakesuchstepsasmaybenecessarytopermitwritten
consentbyshareholdersentitledtocasttheminimumnumberofvotesthatwouldbenecessarytoauthorizetheaction
atameetingatwhichallshareholdersentitledtovotethereonwerepresentandvoting.Thiswrittenconsentistobe
consistentwithapplicablelawandconsistentwithgivingshareholdersthefullestpowertoactbywrittenconsent
consistentwithapplicablelaw.Thisincludesshareholderabilitytoinitiateanytopicforwrittenconsentconsistentwith
applicablelaw.
Ashareholderrighttoactbywrittenconsentandtocallaspecialmeetingare2complimentarywaystobringan
importantmattertotheattentionofbothmanagementandshareholdersoutsidetheannualmeetingcycle.
Ashareholderrighttoactbywrittenconsentisonemethodtoequalizeourlimitedprovisionsforshareholderstocalla
specialmeeting.Forinstanceittakes15%ofNASDAQshareholders,withatleastoneͲyearofcontinuouslystock
ownership,tocallaspecialmeeting.Delawarelawallows10%ofshareholderstocallaspecialmeetingwithout
mandatingaholdingperiod.
TheaverageholdingperiodforstockislessthanoneͲyearaccordingto"StockMarketInvestorsHaveBecomeAbsurdly
Impatient."Thuspotentially50%ofNASDAQshareholderscouldnowbedisenfranchisedfromhavinganyvoice
whatsoeverincallingaspecialmeetingaccordingtoourrules.
Ashareholderrighttoactbywrittenconsentalsowonmajorityshareholdersupportat13majorcompaniesinasingle
year.Thisincluded67%ͲsupportatbothAllstateandSprint.Hundredsofmajorcompaniesenableshareholderstoact
bywrittenconsent.WetSeal(WTSLA)shareholderssuccessfullyusedwrittenconsenttoreplacecertain
underperformingdirectorsin2012.
Pleasevotetoprotectshareholdervalue:
RIGHTTOACTBYWRITTENCONSENTͲPROPOSAL5”
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2015PROXYSTATEMENT
BOARDOFDIRECTORS’STATEMENTINOPPOSITION
TheBoardofDirectorshasgivencarefulconsiderationtothestockholderproposalandbelievesthatitisnotinthebest
interestsofNasdaqanditsstockholders.
Onthecontrary,theproposalcouldactuallybeharmfultotheinterestsofstockholdersbecauseitcouldallowactions
tobetakenbyafewstockholdersoutsideoftheopenandtransparentforumofastockholders’meeting.Currently,any
matterthatNasdaqoritsstockholderswishtopresentforastockholdervotemustbenoticedinadvanceand
presentedatameetingofstockholders.Thisprocessallowsallstockholderstoconsider,discussandvoteonpending
stockholderactions.Theproposal,ifimplemented,couldallowasmallgroupofstockholderswithnofiduciarydutiesto
otherstockholderstoactonsignificantmatterswithoutprovidingpriornoticetothecompany,theotherstockholders
orthemarket.Adoptionofthisproposalcouldresultinactionbeingtakenwithoutsomestockholders’knowledgeor
participation,therebydisenfranchisingthosestockholders.Inaddition,actionbywrittenconsentcouldbeusedto
promotethenarrowselfͲinterestsofsomestockholders(includingthosewhoaccumulateashortͲtermvotingposition
throughtheborrowingofshares)thatareinconsistentwiththelongͲtermbestinterestsofthecompanyandits
stockholders.TheBoardbelievesthatallstockholdersshouldhavetheopportunitytoconsider,discussandvoteon
pendingsignificantmattersthroughthedemocraticandtransparentforumofastockholders’meeting,wheretheymay
considerargumentsforandagainstanyaction,includingthecompany’sposition.
Further,actionbywrittenconsenthasthepotentialtocreatesubstantialconfusionforstockholders.Multiple
stockholdergroupscouldsolicitmultiplewrittenconsentssimultaneously,someofwhichmaybeduplicativeor
contradictory.Permittingactionbywrittenconsentoutsideof,andinadditionto,thetraditionalsettingofa
stockholders’meetingisapotentiallycumbersomeandtimeͲconsumingprocessthatcoulddistractmanagementand
theBoardfromtheirfocusonincreasingstockholdervalue,andresultinsignificantadministrativeburdensand
expenses,withlittleornocorrespondingbenefittostockholders.
Giventhecompany’scurrentgovernanceprocedures,theBoardbelievestheadoptionofthisproposalisnotonly
inappropriatebutalsounnecessarybecausestockholdershaveampleopportunitytotakeactionataproperlycalled
stockholders’meeting.Nasdaq’sgovernancedocumentsallowstockholderstonominatepersonsforelectiontothe
BoardorproposeotherbusinesstobeconsideredatanannualorspecialmeetingcalledbytheBoard.Inaddition,in
January2014,ourByͲLawswereamended,followingstockholderandSECapproval,toallowstockholdersholdingat
least15%ofNasdaq’svotingpowertocallaspecialmeetingofstockholders.Actionatameeting,whetherannualor
special,ispreferabletoactionbywrittenconsentbecauseameetingensuresthatallstockholdersreceivenoticeofthe
proposalsunderconsideration,allowstheBoardtomakeaconsideredrecommendationregardingthetopicsforvoting
andgivesallstockholdersanopportunitytoparticipateinthevoting.
Adoptionofthisproposalisalsounnecessarybecausewehaveadoptedanumberofbestpracticesthatenhance
stockholderrightsandparticipationinourgovernance.Suchpracticesincludeourannualelectionsofdirectors,
majorityvotingfordirectorsinuncontestedelectionsandseparationoftheBoardChairmanandCEOroles.Inaddition,
in2013,weimplementedchangestoourcorporategovernancedocumentsthatreplacedeachsupermajorityvoting
requirementwitha“majorityofoutstandingshares”votingrequirement.Finally,thecompanyusesvariousmeansto
seekoutstockholderviewsoutsidetheconfinesofformalstockholders’meetings,considersthatinputandacts
accordingly.Forexample,weparticipateinregularengagementwithourstockholdersonexecutivecompensation,
corporategovernanceandotherissues.Asevidenceofitseffectivegovernanceframework,thecompanyreceivedthe
bestpossibleGovernanceQuickScoreof1onascaleof1to10fromInstitutionalShareholderServicesInc.in2014.
Accordingly,theBoardofDirectorsbelievesthatthestockholderproposaltoallowstockholderactionbywritten
consentisinappropriate,unnecessaryandnotinthebestinterestsofNasdaqanditsstockholders.
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2015PROXYSTATEMENT
OTHERBUSINESS
TheNasdaqBoardknowsofnobusinessotherthanthemattersdescribedinthisproxystatementthatwillbe
presentedattheannualmeeting.Totheextentthatmattersnotknownatthistimemayproperlycomebeforethe
annualmeeting,absentinstructionsthereontothecontrary,theenclosedproxywillconferdiscretionaryauthoritywith
respecttosuchothermatters,anditistheintentionofthepersonsnamedintheproxytovoteinaccordancewiththeir
judgmentonsuchothermatters.
EXECUTIVEOFFICERS
NAME
AGE
POSITION
RobertGreifeld
57
AdenaT.Friedman
45
President
HansͲOleJochumsen
57
President
SalilS.Donde
57
ExecutiveVicePresident,GlobalInformationServices
AnnaM.Ewing
54
ExecutiveVicePresident,GlobalCorporateSolutions
P.C.NelsonGriggs
44
ExecutiveVicePresident,ListingServices
RonaldHassen
63
SeniorVicePresident,ControllerandPrincipalAccountingOfficer
EdwardS.Knight
64
ExecutiveVicePresident,GeneralCounselandChiefRegulatoryOfficer
LarsOttersgård
50
ExecutiveVicePresident,MarketTechnology
BradleyJ.Peterson
55
ExecutiveVicePresidentandChiefInformationOfficer
LeeShavel
47
ChiefFinancialOfficerandExecutiveVicePresident,CorporateStrategy
ThomasA.Wittman
50
ExecutiveVicePresident,GlobalHeadofEquities
RobertGreifeld,amemberofourBoardofDirectors,hasservedasCEOsinceMay2003.PriortojoiningNasdaq,
Mr.GreifeldwasanExecutiveVicePresidentatSunGardDataSystems,Inc.,aglobalproviderofintegratedsoftware
andprocessingsolutionsforfinancialservicesandaproviderofinformationavailabilityservices.Mr.Greifeldjoined
SunGardin1999throughSunGard’sacquisitionofAutomatedSecuritiesClearance,Inc.,wherefrom1991to1999,
Mr.GreifeldwasthePresidentandCOO.
AdenaT.FriedmanhasservedasPresidentsinceJune2014withresponsibilityforthebusinessunitswithinGlobal
CapitalAccess,Technology&Insights.Previously,sheservedasCFOandManagingDirectorofTheCarlyleGroupfrom
March2011throughJune2014.PriortojoiningCarlyle,Ms.FriedmanservedinseveralpositionsatNasdaqovera
tenureof17years,includingasExecutiveVicePresidentofCorporateStrategyfromOctober2003throughMarch2011
andasCFOfromAugust2009throughMarch2011.Ms.FriedmanjoinedNasdaqin1993.
HansͲOleJochumsenhasservedasPresidentsinceMay2014withresponsibilityforthebusinessunitswithinGlobal
TradingandMarketServices.HeservedasExecutiveVicePresidentofGlobalMarketServicesfromMarch2014
throughMay2014andExecutiveVicePresidentofTransactionServicesNordicfromFebruary2008throughMarch
2014.Previously,Mr.JochumsenwasthePresidentofInformationServices&NewMarketsforOMX.Priortothat,he
servedasPresidentandCEOoftheCopenhagenStockExchange(nowcalledNasdaqCopenhagenA/S)andFUTOP
ClearingcentralenLtd.PriortojoiningOMXin1998,Mr.JochumsenservedasPresidentandmemberoftheExecutive
ManagementofBGBankfrom1996to1998andasPresidentandmemberoftheExecutiveManagementofGirobank
from1994to1996.From1990to1994,hewasaPresidentandmemberoftheExecutiveManagementofBRFkredit.
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2015PROXYSTATEMENT
SalilS.DondehasservedasExecutiveVicePresident,GlobalInformationServicessinceFebruary2015.Priortojoining
Nasdaq,Mr.DondeheldleadershiprolesasCEOofLewtanTechnologies,Inc.fromJune2011throughOctober2014
andasCEOofMarshall&Swift/BoeckhfromFebruary2009throughJuly2011,amongotherleadershiproleshehas
heldinthebroaderfinancialservicesindustry.
AnnaM.EwinghasservedasExecutiveVicePresident,GlobalCorporateSolutionssinceOctober2014.Previously,she
wasExecutiveVicePresidentandChiefInformationOfficerfromDecember2005throughJanuary2013andExecutive
VicePresident,GlobalTechnologySolutionsfromJanuary2013throughOctober2014.SheservedasSeniorVice
PresidentofTechnologyServicesinourOperations&TechnologyGroupfromOctober2000throughDecember2005.
BeforejoiningNasdaq,Ms.EwingwasManagingDirector,ElectronicCommerceatCIBCWorldMarketsinNewYork
andToronto,wheresheservedasManagingDirectorofGlobalApplicationsServicesandasafoundingmemberof
CIBC.com.Beforethat,Ms.EwingservedasVicePresidentatMerrillLynch,wheresheheldvariousleadershippositions
withintheCorporateandInstitutionalClientGroupTechnologyDivision,includingGlobalHeadofInstitutionalClient
Technology,GlobalHeadofFinancialFuturesandOptionsTechnology,GlobalHeadofPrimeBrokerageTechnologyand
RegionalHeadofTechnologyatMerrillLynchCanada.
P.C.NelsonGriggshasservedasExecutiveVicePresident,ListingServicessinceOctober2014.Previously,Mr.Griggs
wasSeniorVicePresident,NewListingsfromJuly2012throughOctober2014,SeniorVicePresident,ListingsAsiaSales
fromApril2011throughJune2012andVicePresident,ListingsfromJuly2007throughMarch2011.Mr.Griggsjoined
Nasdaqin2002andhasservedinavarietyofotherroleswithintheListingServicesbusiness.PriortojoiningNasdaq,
Mr.GriggsworkedatFidelityInvestmentsandaSanFranciscoͲbasedstartͲupcompany.
RonaldHassenhasservedasSeniorVicePresidentandControllersinceMarch2002andPrincipalAccountingOfficer
sinceMay2002.Inaddition,Mr.HassenservedasInterimCFOfromMarch2011throughMay2011andTreasurerfrom
November2002throughJanuary2007.PriortojoiningNasdaq,Mr.HassenservedasControllerofDeutscheBank
NorthAmericafromJune1999,afteritsacquisitionofBankersTrustCompany.Mr.HassenjoinedBankersTrustin
1989,servingasPrincipalAccountingOfficerfrom1997untilthecompany’sacquisitionbyDeutscheBank.
EdwardS.KnighthasservedasExecutiveVicePresidentandGeneralCounselsinceOctober2000andChiefRegulatory
OfficersinceJanuary2006.Previously,Mr.KnightservedasExecutiveVicePresidentandChiefLegalOfficerofFINRA
fromJuly1999toOctober2000.PriortojoiningFINRA,Mr.KnightservedasGeneralCounseloftheU.S.Departmentof
theTreasuryfromSeptember1994toJune1999.Mr.KnightalsoservesasadirectorofNasdaqDubai.
LarsOttersgårdhasservedasExecutiveVicePresident,MarketTechnologysinceOctober2014.Previously,Mr.
OttersgårdwasSeniorVicePresident,MarketTechnologyfrom2008toOctober2014.Mr.OttersgårdjoinedOMXin
2006asGlobalHeadofSalesforthecompany'scommercialtechnologybusiness.PriortojoiningOMX,Mr.Ottersgård
heldvariouspositionsatIBMfortwentyyears,wherehecoveredtheNordicandEuropeanmarkets,andwasmost
recentlyaseniorexecutiveforstrategicoutsourcingforthedistributionandcommunicationindustries.
BradleyJ.PetersonhasservedasExecutiveVicePresidentandChiefInformationOfficersinceFebruary2013.
Previously,Mr.PetersonservedasExecutiveVicePresidentandChiefInformationOfficeratCharlesSchwab,Inc.since
May2008.Mr.PetersonwasChiefInformationOfficerateBayfromApril2003throughMay2008.FromJuly2001
throughMarch2003,Mr.PetersonwastheManagingDirectorandCOOatEpochSecuritiesafteritsmergerwith
GoldmanSachsGroup,Inc.HealsohasheldseniorexecutivepositionsatEpochPartners,Inc.,CharlesSchwab&
CompanyandPacificBellWireless(nowpartofAT&T).
LeeShavelhasservedasCFOandExecutiveVicePresident,CorporateStrategysinceMay2011.BeforejoiningNasdaq,
Mr.ShavelwasAmericasHeadofFinancialInstitutionsInvestmentBankingatBankofAmericaMerrill
Lynch.Previously,hewasHeadofFinance,SecuritiesandTechnologyandGlobalCOOfortheFinancialInstitutions
GroupatMerrillLynch.Mr.ShaveljoinedMerrillLynchin1993asanAssociate,comingfromCiticorpwhereheworked
asanAssociateintheFinancialInstitutionsGroup.
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2015PROXYSTATEMENT
ThomasA.WittmanhasservedasExecutiveVicePresident,GlobalHeadofEquitiessinceMay2014.Previously,Mr.
WittmanwasSeniorVicePresident,HeadofU.S.EquitiesandDerivativesfromJune2013throughApril2014.Mr.
WittmanalsoservedasSeniorVicePresidentofU.S.OptionsfromMarch2010throughJune2013.Mr.Wittmanjoined
Nasdaqin2008afterNasdaqacquiredThePhiladelphiaStockExchange,whereMr.Wittmanbeganhisexchangecareer
in1987asasoftwaredeveloper.
CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS
TheAuditCommitteeofourBoardofDirectorshasadoptedawrittenpolicyregardingrelatedpartytransactions.For
purposesofthepolicy,a“relatedparty”generallyincludesdirectors,directornominees,executiveofficers,greater
than5%stockholders,immediatefamilymembersofanyoftheforegoing,entitiesthatareaffiliatedwithanyofthe
foregoingandourindependentauditingfirm.Underthepolicy,alltransactionswithrelatedpartiesaresubjectto
ongoingreviewandapprovalorratificationbytheAuditCommittee.
Indeterminingwhethertoapproveorratifyarelatedpartytransaction,theAuditCommitteeconsiders,amongother
things,thefollowingfactors:
•
whetherthetermsoftherelatedpartytransactionarefairtoNasdaqandwhethersuchtermswouldbeonthe
samebasisifthetransactiondidnotinvolvearelatedparty;
•
whethertherearebusinessreasonsforNasdaqtoenterintotherelatedpartytransaction;
•
whethertherelatedpartytransactionwouldimpairtheindependenceofanoutsidedirector;
•
whethertherelatedpartytransactionwouldpresentaconflictofinterestforanydirectororexecutiveofficerof
Nasdaq,takingintoaccount:
•
o
thesizeofthetransaction;
o
theoverallfinancialpositionofthedirectororexecutiveofficer;
o
thedirectorindirectnatureofthedirector’sorexecutiveofficer’sinterestinthetransaction;
o
theongoingnatureofanyproposedrelationship;and
o
anyotherfactorsdeemedrelevant;
whethertherelatedpartytransactionismaterial,takingintoaccount:
o
theimportanceoftheinteresttotherelatedparty;
o
therelationshipoftherelatedpartytothetransactionandofrelatedpartiestoeachother;
o
thedollaramountinvolved;and
o
thesignificanceofthetransactiontoNasdaqinvestorsinlightofallthecircumstances.
Underthepolicy,relatedpartytransactionsthatareconductedintheordinarycourseofNasdaq’sbusinessandon
substantiallythesametermsasthoseprevailingatthetimeforcomparableservicesprovidedtounrelatedthirdparties
ortoNasdaq’semployeesonabroadbasisareconsideredpreͲapprovedbytheAuditCommittee.
ThefollowingsectiondescribestransactionssincethebeginningofthefiscalyearendedDecember31,2014,inwhich
Nasdaqoranyofitssubsidiarieswasaparty,inwhichtheamountinvolvedexceeded$120,000andinwhichadirector,
adirectornominee,anexecutiveofficer,asecurityholderknowntoownmorethanfivepercentofourcommonstock
oranimmediatefamilymemberofanyoftheforegoinghad,orwillhave,adirectorindirectmaterialinterest.In
accordancewithourpolicyonrelatedpartytransactions,allofthetransactionsdiscussedbelow,otherthanthosethat
receivedpreͲapprovalasdiscussedabove,havebeenapprovedorratifiedbytheAuditCommitteeofourBoardof
Directors.
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2015PROXYSTATEMENT
BORSEDUBAI
Asoftherecorddate,BorseDubaiownedapproximately17.6%ofNasdaq’scommonstock.Nasdaqisobligatedbythe
termsofastockholders’agreementwithBorseDubaitonominateandgenerallyusebesteffortstocausetheelection
totheNasdaqBoardofonedirectordesignatedbyBorseDubai,subjecttocertainconditions.EssaKazim,theChairman
ofBorseDubai,hasbeendesignatedbyBorseDubaiasitsnomineewithrespecttothe2015annualmeeting.During
thefiscalyearendedDecember31,2014,BorseDubaioritsaffiliatespaidNasdaqapproximately$1.2millionfor
technologyservicesintheordinarycourseofbusiness.NasdaqandBorseDubaihaveagreedthat,inconsiderationfora
releasebyBorseDubaiofcertainpotentialcontractualclaims,NasdaqwillissueacredittoBorseDubaiinJanuary2017
forapproximately$5milliontobeappliedtowardcertaintechnologyservicesprovidedbyNasdaqafterthatdate.
INVESTORAB
Asoftherecorddate,InvestorABownedapproximately11.5%ofNasdaq’scommonstock.Nasdaqisobligatedbythe
termsofastockholders’agreementwithInvestorABtonominateandgenerallyusebesteffortstocausetheelectionto
theNasdaqBoardofonedirectordesignatedbyInvestorAB,subjecttocertainconditions.BörjeE.Ekholm,the
PresidentandCEOofInvestorAB,hasbeendesignatedbyInvestorABasitsnomineewithrespecttothe2015annual
meeting.DuringthefiscalyearendedDecember31,2014,InvestorABoritsaffiliatespaidNasdaqapproximately$0.4
millionfordataproducts,issuerservicesandotherfeesintheordinarycourseofbusiness.
InvestorABisanindustrialholdingcompanythatinvestsinothercompaniesintheordinarycourseofbusiness.Oneof
InvestorAB’sportfoliocompaniesisSEB,afinancialservicescompany,whichisalenderunderNasdaq’screditfacilities
andacustomerofNasdaq.DuringthefiscalyearendedDecember31,2014,NasdaqpaidSEBoritsaffiliates
approximately$61.5millioninprincipalpayments,$0.4millionininterestpaymentsand$0.7millioninotherbanking
fees.DuringthefiscalyearendedDecember31,2014,SEBoritsaffiliatespaidNasdaqapproximately$8.7millionfor
transactionservices,dataproductsandotherfeesintheordinarycourseofbusiness.
InvestorAB’sportfoliocompaniesalsoincludecertaincompaniesthatarelistedononeormoreoftheexchangesthat
weoperate.DuringthefiscalyearendedDecember31,2014,theseentitiesortheiraffiliatesmadethefollowing
approximatepaymentstoNasdaqforissuerservices,corporatesolutionsorotherservicesintheordinarycourseof
business:ABBLtd.($0.4million),AstraZeneca($0.7million),AtlasCopcoAB($0.6million),ElectroluxAB($0.4million),
EQTCorporation($0.2million),HusqvarnaAB($0.2million),RaptorPharmaceuticalCorp.($0.1million),SaabAB($0.3
million)andWärtsilä($0.2million).Inaddition,duringthefiscalyearendedDecember31,2014,wepaidProjectplace
InternationalABoritsaffiliatesapproximately$0.2millionfortechnologyservicesintheordinarycourseofbusiness.
OTHERGREATERTHAN5%STOCKHOLDERS
Asoftherecorddate,MassachusettsFinancialServicesCompanyownedapproximately9.0%ofNasdaq’scommon
stock.DuringthefiscalyearendedDecember31,2014,MassachusettsFinancialServicesoritsaffiliatespaidus
approximately$0.3millionfordataproductsintheordinarycourseofbusiness.
Asoftherecorddate,BlackRock,Inc.ownedapproximately6.8%ofNasdaq’scommonstock.Duringthefiscalyear
endedDecember31,2014,BlackRockoritsaffiliatespaidusapproximately$3.0millionfortransactionservicesinthe
ordinarycourseofbusiness.
Asoftherecorddate,TheVanguardGroup,Inc.ownedapproximately5.1%ofNasdaq’scommonstock.Duringthe
fiscalyearendedDecember31,2014,Vanguardoritsaffiliatespaidusapproximately$1.6millionfordataproducts,
corporatesolutionsandotherservices,andwepaidVanguardoritsaffiliates$0.2millioninconnectionwiththe
administrationofour401(k)Plan,allintheordinarycourseofbusiness.
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2015PROXYSTATEMENT
SILVERLAKE
GlennH.Hutchins,oneofourdirectors,isaCoͲFounderofSilverLake.SilverLakeisaprivateinvestmentfirmthat
investsinothercompaniesintheordinarycourseofbusiness.DuringthefiscalyearendedDecember31,2014,we
engagedinthefollowingtransactionswithcertainofSilverLake’sportfoliocompaniesortheiraffiliatesintheordinary
courseofbusiness.
•
Avagopaidusapproximately$0.2millionforcorporatesolutions.
•
WepaidBlackLineSystemsapproximately$0.2millionforfinancialsoftware.
•
Dellpaidusapproximately$0.2millionforissuerservices,andwepaidDell$8.0millionforcomputer
equipmentandrelatedservices.
•
InteractiveDataCorporationpaidusapproximately$13.2millionfordataproducts.
•
IPCSystemspaidusapproximately$0.2millionfortransactionservices.
•
MercuryPaymentSystemspaidusapproximately$0.1millionforissuerservicesandcorporatesolutions.
•
NXPSemiconductorspaidusapproximately$0.2millionforissuerservicesandcorporatesolutions.
•
SunGardpaidusapproximately$8.2millionfortransactionservicesanddataproducts.
•
VirtuFinancialpaidusapproximately$28.8millionfortransactionservicesanddataproducts.
OTHERTRANSACTIONSWITHENTITIESAFFILIATEDWITHOURDIRECTORS
JamesS.Riepe,oneofourformerdirectors,isaSeniorAdvisoratT.RowePriceGroup,Inc.,whichengagesintrading
andothercommercialactivitieswithus.DuringthefiscalyearendedDecember31,2014,T.RowePriceoritsaffiliates
paidusapproximately$0.4millionfortransactionservicesanddataproductsintheordinarycourseofbusiness.
MichaelR.Splinter,oneofourdirectors,istheExecutiveChairmanoftheBoardofDirectorsofAppliedMaterials,
whichengagesincommercialactivitieswithus.DuringthefiscalyearendedDecember31,2014,AppliedMaterialsor
itsaffiliatespaidusapproximately$0.7millionforissuerservices.
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2015PROXYSTATEMENT
QUESTIONSANDANSWERSABOUTOURANNUALMEETING
1. WhydidIreceivethisproxystatement?
TheBoardissolicitingyourproxytovoteattheannualmeetingbecauseyouwereastockholderatthecloseof
businessontherecorddateofMarch10,2015andyouareentitledtovoteatthemeeting.
Theproxystatementsummarizestheinformationyouneedtoknowtovoteattheannualmeeting.Youdonot
needtoattendtheannualmeetingtovoteyourshares.
2. HowdoIvote?
Youcanvotebyanyofthefollowingmethods:
x
ByInternet.ThenoticeofInternetavailabilityofproxymaterialscontainsthewebsiteaddress
(www.proxyvote.com)forInternetproxysubmission.Internetproxysubmissionisavailable24hoursaday
until11:59p.m.(EDT)onMay5,2015.Youmustenteryourcontrolnumber,whichisprintedinthelowerright
handcornerofthenoticeofInternetavailability,andyouwillbegiventheopportunitytoconfirmthatyour
instructionshavebeenproperlyrecorded.
x
ByTelephone.IntheU.S.andCanada,youcanvoteyoursharesbycalling+18006906903.Telephoneproxy
submissionisavailable24hoursadayuntil11:59p.m.(EDT)onMay5,2015.Whenyousubmitaproxyby
telephone,youwillberequiredtoenteryourcontrolnumber.YouwillthenreceiveeasyͲtoͲfollowvoice
promptsallowingyoutoinstructtheproxyholdershowtovoteyoursharesandtoconfirmthatyour
instructionshavebeenproperlyrecorded.IfyouarelocatedoutsidetheU.S.orCanada,youshouldinstruct
theproxyholdershowtovoteyoursharesbyInternetorbymail.
x
ByMail.Ifyouchoosetosubmitaproxybymailafterrequestingandreceivingprintedproxymaterials,simply
complete,signanddateyourproxycardandreturnitinthepostageͲpaidenvelopeprovided.
x
InPersonattheAnnualMeeting.Allstockholdersmayvoteinpersonattheannualmeeting.Ifyouwishto
attendtheannualmeeting,youwillneedtorequestanadmissionticketinadvance.Youcanrequestaticket
byfollowingtheinstructionssetforthbelow.
3. WhatdoIneedtodotoattendtheannualmeeting?
Ifyouwishtoattendtheannualmeeting,youmustbeastockholderontherecorddateandrequestanadmission
ticketinadvancebyvisitingwww.proxyvote.comandfollowingtheinstructionsprovided(youwillneedthe12digit
numberincludedonyourproxycard,voterinstructionformornotice).Ticketswillbeissuedonlytostockholders.
Requestsforadmissionticketswillbeprocessedintheorderinwhichtheyarereceivedandmustberequestedno
laterthan11:59p.m.(EDT)onMay5,2015.Pleasenotethatseatingislimitedandrequestsforticketswillbe
acceptedonafirstͲcome,firstͲservedbasis.
Atthemeeting,eachstockholderwillberequiredtopresentavalidpictureidentificationsuchasadriver’slicense
orpassportwiththeiradmissionticket.IfyouareabeneficialownerofNasdaqsharesheldbyabank,brokeror
othernominee,youalsowillneedproofofownershiptobeadmittedtothemeeting.Arecentbrokerage
statementorletterfromthebank,brokerorothernomineeisanexampleofproofofownership.Ifyouwantto
voteinpersonandyourNasdaqsharesareheldbyabank,brokerorothernominee,youwillhavetoobtaina
proxy,executedinyourfavor,fromtheholderofrecord.
Directionstotheannualmeetingareavailableonourwebsite(see“OnlineResources”onpage69).Cameras
(includingcellphoneswithphotographiccapabilities),recordingdevicesandotherelectronicdeviceswillnotbe
permitted.Youmayberequiredtoenterthroughasecuritycheckpointbeforebeinggrantedaccesstothe
meeting.
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2015PROXYSTATEMENT
Stockholdersmaysubmitquestionsinadvanceofthemeetingbyvisitingourstockholderforumat
www.proxyvote.com.
4. Whatisthedifferencebetweenholdingsharesasastockholderofrecordandasabeneficialowner?
Ifyoursharesareregistereddirectlyinyournamewithourregistrarandtransferagent,Computershare,youare
considereda“stockholderofrecord”withrespecttothoseshares.Ifyoursharesareheldinabankorbrokerage
account,youareconsideredthe“beneficialowner”ofthoseshares.
5.HowdoIcompletetheproxy?
TheproxyprovidesthateachstockholdermayvotehisorherNasdaqshares“For”or“Against”or“Abstain”for
individualnomineesandforeachoftheotherproposals.Whichevermethodyouselecttotransmityour
instructions,theproxyholderswillvoteyoursharesasprovidedbythoseinstructions.IFYOUPROVIDEAPROXY
WITHOUTSPECIFICVOTINGINSTRUCTIONS,YOURNASDAQSHARESWILLBEVOTEDBYTHEPROXYHOLDERS“FOR”
THEELECTIONOFTHEDIRECTORSNAMEDINTHISPROXYSTATEMENT,“FOR”PROPOSALSII,III,ANDIVAND
“AGAINST”PROPOSALV.
IfyourNasdaqsharesareheldbyabroker,bankorothernomineethatdoesnothaveexpressauthoritytovoteon
aparticularmatter,youwillreceiveinstructionsfromyournominee,whichyoumustfollowtohaveyourNasdaq
sharesvoted.Thebroker,bankorothernomineemayvoteonlytheNasdaqsharesthatitholdsforyouasprovided
byyourinstructions,subjecttocertainexceptionsdescribedbelow.
6. CanIchangemyvote?
Youcanchangeyourvotebyrevokingyourproxyatanytimebeforeitisexercisedinoneofthreeways:
•
submitalaterdatedproxy(includingaproxysubmittedthroughtheInternet,bytelephoneorbyproxy
card);
•
notifyNasdaq’sCorporateSecretary,JoanC.Conley,viaemailatcorporatesecretary@nasdaq.com,thatyou
arerevokingyourproxy;or
•
voteinpersonattheannualmeeting.
IfyouareabeneficialownerofNasdaqsharesheldbyabank,brokerorothernominee,youwillneedtocontact
thebank,brokerorothernomineetorevokeyourproxy.
7. HowmanyvotesdoIhave?
Eachshareofcommonstockhasonevote,subjecttothevotinglimitationinourAmendedandRestatedCertificate
ofIncorporationthatgenerallyprohibitsastockholderfromvotinginexcessof5%ofthetotalvotingpowerof
Nasdaq.
8. Ismyvoteconfidential?
Yourindividualvoteisconfidentialandwillnotbedisclosedtothirdparties.Proxies,ballotsandvotingtabulations
arehandledonaconfidentialbasistoprotectyourvotingprivacy.Thisinformationwillnotbedisplayedexceptas
requiredbylaw.
9. Whatconstitutesaquorum?
Thepresenceoftheholdersofamajority(greaterthan50%)ofthevotesentitledtobecastatthemeeting
constitutesaquorum.Presencemaybeinpersonorbyproxy.Youwillbeconsideredpartofthequorumifyou
submitaproxybyInternet,bytelephoneorbyreturningasignedanddatedproxycard(ifproxymaterialsare
requestedinprintedform)orifyouvoteinpersonattheannualmeeting.AbstentionsandbrokernonͲvotesare
countedaspresentandentitledtovoteatthemeetingforpurposesofdeterminingaquorum.
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2015PROXYSTATEMENT
10.Whatvoteisrequiredtoelecteachdirector?
Ourdirectorsareelectedbytheholdersofamajorityofvotescastatanymeetingfortheelectionofdirectorsat
whichaquorumispresentandthereisanuncontestedelection.Eachofthe11nomineesmustreceivethe
affirmativevoteoftheholdersofamajorityofthevotescastfortheelectionofdirectorstobedulyelectedtothe
Boardinanuncontestedelection.Anysharesnotvoted,forexamplebyabstentionor,ifapplicable,brokernonͲ
vote,willnotimpactthevote.
11.Whatvoteisrequiredtoapprovetheotherproposals?
Theremainingproposalsrequireanaffirmativevoteoftheholdersofamajorityofthevotespresentinpersonor
representedbyproxyatthemeetingandentitledtovoteonthematter.Abstentionshavetheeffectofavote
againsttheseproposals.BrokernonͲvotes,ifapplicable,havenoeffectontheseproposals.
Thestockholdervotetoapproveexecutivecompensationisanadvisoryvoteonlyand,therefore,theresultofthat
votewillnotbebindingonourBoardorManagementCompensationCommittee.OurBoardandManagement
CompensationCommitteewill,however,considertheoutcomeofthevotewhenevaluatingourexecutive
compensationprograminthefuture.
Thestockholderproposalisprecatory,meaningthatitrequeststhattheBoardtakeaspecificaction,and
therefore,theresultsofthevoteonthatproposalwillnotbebindingontheBoard.
12.WhatisabrokernonͲvote?
Ifyouareabeneficialownerwhosesharesareheldofrecordbyabroker,youmustinstructthebrokerhowtovote
yourshares.Ifyoudonotprovidevotinginstructions,yourshareswillnotbevotedonanyproposalonwhichthe
brokerdoesnothavediscretionaryauthoritytovote.Thisiscalleda“brokernonͲvote.”Theratificationofthe
appointmentofErnst&YoungLLPasourregisteredindependentpublicaccountingfirmisconsidereda“routine”
matter.Accordingly,brokersmayvotesharesonthisproposalwithoutyourinstructions,andtherewillbeno
brokernonͲvoteswithrespecttothisproposal.Theotherproposalsareconsidered“nonͲroutine,”andbrokers
cannotvotesharesontheseproposalswithoutyourinstructions.
Ifyouholdyoursharesthroughabroker,itisimportantthatyoucastyourvoteifyouwantittocountonallofthe
matterstobeconsideredattheannualmeetingotherthantheratificationoftheappointmentofourindependent
registeredpublicaccountingfirm.Thus,ifyouholdyoursharesinstreetnameandyoudonotinstructyourbroker
howtovoteonthesematters,novoteswillbecastonyourbehalf.
13. Whowillcountthevotes?
BroadridgeFinancialSolutions,Inc.tabulatesthevotesandactsasinspectorofelections.
14. WherecanIfindtheresultsoftheannualmeeting?
Preliminaryresultswillbeannouncedatthemeetingand,thereafter,finalresultswillbereportedinacurrent
reportonForm8ͲK,whichisexpectedtobefiledwiththeSECwithinfourbusinessdaysafterthemeeting.
15. Whoispayingthecostsofthisproxysolicitation?
Wewillpaythecostofsolicitingproxies.Proxiesmaybesolicitedonourbehalfbydirectors,officersoremployees
(whowillnotreceiveanyadditionalcompensationforthesesolicitations),inpersonorbytelephone,electronic
transmissionandfacsimiletransmission.Nasdaqwill,uponrequest,reimbursebrokers,banksandothernominees
fortheirreasonableexpensesinsendingproxymaterialstotheirbeneficialowners/customersandobtainingtheir
proxies.WehavehiredD.F.King&Co.,Inc.toassistinsolicitingproxiesatafeeof$8,500pluscostsandexpenses
fortheseservices.
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2015PROXYSTATEMENT
16. Whatis“householding”andhowdoesitaffectme?
NasdaqhasadoptedapracticeapprovedbytheSECknownas“householding”toreduceprintingandpostagefees
forthemeetingnotice.“Householding”meansthatstockholderswhosharethesamelastnameandaddresswill
receiveonlyonecopyofproxymaterials,unlesswereceiveinstructionstothecontraryfromanystockholderat
thataddress.Ifyouprefertoreceivemultiplecopiesoftheproxymaterialsatthesameaddress,pleasecontactthe
NasdaqInvestorRelationsDepartmentinwriting(Attention:EdwardDitmire,OneLibertyPlaza,49thFloor,New
York,NewYork10006),byemail(investor.relations@nasdaq.com)orbytelephone(+12124018737).
17.Whoelseisentitledtovoteatthemeeting?
Alistofholdersentitledtovoteattheannualmeetingwillbeavailableattheannualmeetingandforatleast10
dayspriortotheannualmeeting,betweenthehoursof9:00a.m.and5:00p.m.(EDT),atourprincipalexecutive
offices,OneLibertyPlaza,50thFloor,NewYork,NewYork10006.Youmayarrangetoreviewthislistbycontacting
Nasdaq’sCorporateSecretary,JoanC.Conley(corporatesecretary@nasdaq.com).
OTHERINFORMATION
STOCKHOLDERCOMMUNICATIONWITHDIRECTORS
Weregularlyengagewithourstockholderstodiscussexecutivecompensation,corporategovernanceandotherissues.
StockholdersandotherpartiesinterestedincommunicatingdirectlywiththeBoard,theChairmanoftheBoard,other
individualdirectorsorparticularNasdaqBoardCommitteesmaydosobyaddressingcorrespondencetotheintended
recipientatthefollowingaddress.
JoanC.Conley
SeniorVicePresidentandCorporateSecretary
805KingFarmBoulevard
Rockville,MD20850
Email:corporatesecretary@nasdaq.com
Nasdaq’sCorporateSecretaryregularlyforwardsallcorrespondencetotheBoard,BoardmembersorCommittees.In
addition,concernsrelatingtoaccounting,internalcontrolsorauditingmattersareimmediatelybroughttothe
attentionofNasdaq’sInternalAuditDepartmentandOfficeofGeneralCounselandhandledinaccordancewith
proceduresestablishedbytheAuditCommitteewithrespecttosuchmatters.
SECFILINGSANDREPORTS
OurannualreportonForm10ͲK,quarterlyreportsonForm10ͲQ,currentreportsonForm8ͲKandanyamendmentsto
thosereportsareavailablefreeofchargeonourwebsite(see“OnlineResources”onpage69).Wewillfurnish,without
charge,acopyoftheannualreportonForm10ͲK,includingthefinancialstatementsandfinancialstatement
schedule,toanystockholderuponrequesttotheNasdaqInvestorRelationsDepartment,Attention:EdwardDitmire,
OneLibertyPlaza,49thFloor,NewYork,NewYork10006,inwritingorbyemail(investor.relations@nasdaq.com).
STOCKHOLDERPROPOSALSANDNOMINATIONSOFDIRECTORS
NasdaqstockholderswhowishtosubmitproposalspursuanttoRule14aͲ8oftheExchangeActforinclusioninthe
proxystatementforNasdaq’s2016annualmeetingmustsubmitthemonorbeforeNovember28,2015tothe
CorporateSecretaryandmustotherwisecomplywiththerequirementsofRule14aͲ8.
Astockholderwhowishestonominateapersonforelectionasdirectoratanannualorspecialmeeting,ortointroduce
anitemofbusinessatanannualmeeting,mustalsocomplywiththeproceduresspecifiedinNasdaq’sByͲLaws.Under
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2015PROXYSTATEMENT
theseprocedures,astockholdermustsubmittheproposednomineeorproposeditemofbusinessbydeliveringa
noticecontainingcertaininformation,assetforthintheByͲLaws,tobereceivedbyNasdaq’sCorporateSecretaryin
accordancewiththefollowingtimeframes.
•
Inthecaseofanominationorproposeditemofbusinessforanannualmeeting,thenoticemustnormallybe
deliverednotmorethan120norlessthan90dayspriortothefirstanniversaryoftheprioryear’smeeting.
Assumingthe2016annualmeetingisheldaccordingtothisyear’sschedule,thenoticemustbedeliveredon
orpriortothecloseofbusinessonFebruary6,2016,butnoearlierthanJanuary7,2016.
•
However,ifNasdaqholdsitsannualmeetingonadatethatismorethan30daysbeforeor70daysaftersuch
anniversarydate,thenoticemustbedeliverednoearlierthan120dayspriortothedateoftheannual
meetingnorlaterthanthelaterof(i)theninetiethdaypriortothedateoftheannualmeetingor(ii)thetenth
dayfollowingthedayonwhichpublicannouncementofthedateofsuchmeetingisfirstmadebyNasdaq.
•
IfNasdaqholdsaspecialmeetingtoelectdirectors,thenoticewithrespecttothenominationofapersonfor
electionasdirectormustbedeliverednoearlierthan120dayspriortothedateofthespecialmeetingnor
laterthanthelaterof(i)theninetiethdaypriortothedateofthespecialmeetingor(ii)thetenthday
followingthedayonwhichpublicannouncementofthedateofsuchmeetingandthenomineesproposedby
theNasdaqBoardisfirstmadebyNasdaq.
Inaddition,NasdaqstockholdersmayrecommendindividualsforconsiderationbytheNominating&Governance
CommitteefornominationtotheNasdaqBoard.Holdersshouldsubmitsuchrecommendationsinwriting,together
withanysupportingdocumentationtheholderdeemsappropriate,toNasdaq’sCorporateSecretarypriorto
December31,2015.
ONLINERESOURCES
AmendedandRestatedCertificateofIncorporation
http://nasdaq.cchwallstreet.com/NASDAQTools/PlatformViewer.asp?select
ednode=chp_1_1_3&manual=%2Fnasdaq%2Fmain%2FnasdaqͲcorporg%2F
AnnualReports
http://ir.nasdaqomx.com/annuals.cfm
AuditCommitteeCharter
http://ir.nasdaqomx.com/documentdisplay.cfm?DocumentID=195
BoardofDirectorsDuties&Obligations
http://files.shareholder.com/downloads/NDAQ/3905710385x0x242364/FC
621CDDͲC330Ͳ45CEͲ87E4Ͳ39DC5A071408/QOMXͲDutiesandObligations.pdf
ByͲLawsofNasdaq
http://nasdaq.cchwallstreet.com/NASDAQTools/PlatformViewer.asp?select
ednode=chp_1_1_3_4&manual=%2Fnasdaq%2Fmain%2FnasdaqͲ
corporg%2F
CorporateGovernanceGuidelines
CorporateSustainability
http://www.nasdaqomx.com/aboutus/sustainability
CorporateWebsite
http://business.nasdaq.com/
ExecutiveCommitteeCharter
InvestorRelations
http://ir.nasdaqomx.com/
ManagementCompensationCommitteeCharter
NasdaqCodeofConductfortheBoardofDirectors
NasdaqCodeofEthics
http://www.nasdaqomx.com/aboutus/sustainability/ethics
NasdaqEducationalFoundation
http://www.nasdaqomx.com/services/initiatives/educationalfoundation
Nominating&GovernanceCommitteeCharter
ProceduresforCommunicatingwiththeBoardof
Directors
SECFilingsandReports
http://ir.nasdaqomx.com/sec.cfm
/69
2015PROXYSTATEMENT
InaccordancewithrulesoftheSEC,insteadofmailingprintedcopiesofourproxymaterialstoeachstockholderof
record,wearefurnishingtheproxymaterialsforthe2015annualmeetingbyprovidingaccesstothesedocuments
ontheInternet.AnoticeofInternetavailabilityofproxymaterialsisbeingmailedtoourstockholders.Wefirst
mailedordeliveredthisnoticeonoraboutMarch27,2015.ThenoticeofInternetavailabilitycontainsinstructions
foraccessingandreviewingourproxymaterialsandsubmittingaproxyovertheInternet.Ourproxymaterialswere
madeavailableatwww.proxyvote.comonthedatethatwefirstmailedordeliveredthenoticeofInternet
availability.ThenoticealsowilltellyouhowtorequestourproxymaterialsinprintedformorbyeͲmail,atno
charge.Thenoticecontainsacontrolnumberthatyouwillneedtosubmitaproxyforyourshares.
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2015PROXYSTATEMENT
ANNEXA:RECONCILIATIONOFU.S.GAAPFINANCIAL
MEASURESTONONͲGAAP
Inthisproxystatement,wehaveprovidednonͲGAAPnetincomeattributabletoNasdaqandnonͲGAAPdiluted
earningspershare.ManagementusesthisnonͲGAAPinformationinternally,alongwithU.S.GAAPinformation,in
evaluatingourperformanceandinmakingfinancialandoperationaldecisions.
Webelieveourpresentationofthesemeasuresprovidesinvestorswithgreatertransparencyandsupplementaldata
relatingtoourfinancialconditionandresultsofoperations.Inaddition,webelievethepresentationofthesemeasures
isusefultoinvestorsforperiodͲtoͲperiodcomparisonofresultsastheitemsdescribedbelowdonotreflectoperating
performance.Thesemeasuresarenotinaccordancewith,oranalternativeto,U.S.GAAP,andmaybedifferentfrom
nonͲGAAPmeasuresusedbyothercompanies.Investorsshouldnotrelyonanysinglefinancialmeasurewhen
evaluatingourbusiness.WerecommendinvestorsreviewtheU.S.GAAPfinancialmeasuresincludedinthecompany’s
auditedfinancialstatementsforthefiscalyearendedDecember31,2014includedinourannualreportonForm10ͲK.
WhenviewedinconjunctionwithourU.S.GAAPresultsandtheaccompanyingreconciliation,webelievethesenonͲ
GAAPmeasuresprovidegreatertransparencyandamorecompleteunderstandingoffactorsaffectingourbusiness
thanU.S.GAAPmeasuresalone.Ourmanagementusesthesemeasurestoevaluateoperatingperformance,and
managementdecisionsduringthereportingperiodaremadebyexcludingcertainitemsthatwebelievehaveless
significanceon,ordonotimpact,thedayͲtoͲdayperformanceofourbusiness.Weunderstandthatanalystsand
investorsregularlyrelyonnonͲGAAPfinancialmeasures,suchasnonͲGAAPnetincomeandnonͲGAAPdilutedearnings
pershare,toassessoperatingperformance.WeusenonͲGAAPnetincomeattributabletoNasdaqandnonͲGAAP
dilutedearningspersharebecausetheymoreclearlyhighlighttrendsinourbusinessthatmaynototherwisebe
apparentwhenrelyingsolelyonU.S.GAAPfinancialmeasures,sincethesemeasureseliminatefromourresultsspecific
financialitemsthathavelessbearingonouroperatingperformance.NonͲGAAPnetincomeattributabletoNasdaqfor
theperiodspresentedbelowiscalculatedbyadjustingnetincomeattributabletoNasdaqforchargesorgainsrelated
toacquisitionanddivestituretransactions,integrationactivitiesrelatedtoacquisitions,othersignificantinfrequent
chargesorgainsandtheirrelatedincometaxeffectsthatarenotrelatedtoourcorebusiness.Wedonotbelievethese
itemsarerepresentativeofourfutureoperatingperformancesincethesechargeswerenotconsistentwithourcore
operatingperformance.
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2015PROXYSTATEMENT
ThefollowingtablerepresentsreconciliationsbetweenU.S.GAAPnetincomeanddilutedearningspershareandnonͲ
GAAPnetincomeanddilutedearningspershare:
YEARENDED
DECEMBER31,2014
NET
INCOME
YEARENDED
DECEMBER31,2012
YEARENDED
DECEMBER31,2013
DILUTED
EARNINGSPER
SHARE
NET
INCOME
DILUTED
EARNINGSPER
SHARE
NET
INCOME
DILUTED
EARNINGSPER
SHARE
(inmillions,exceptshareandpershareamounts)
U.S.GAAPnetincome
attributabletoNasdaqand
dilutedearningspershare
$
414
NonͲGAAPadjustments(1):
Mergerandstrategic
initiatives
81
0.47
Assetimpairmentcharges
49
Subleaselossreserve
Extinguishmentofdebt
$
2.39
$
$
2.25
$
352
$
2.04
22
0.13
4
0.02
0.28
14
0.08
40
0.23
11
0.07
–
–
–
–
11
0.07
–
–
–
–
Speciallegalexpense
2
0.01
3
0.02
7
0.04
Restructuringcharges
–
–
9
0.05
44
0.26
Voluntaryaccommodation
program
–
–
44
0.26
–
–
Gainonsaleofinvestment
security
–
–
(30)
(0.18)
–
–
SECmatter
–
–
10
0.06
–
–
Incomefromopenpositions
relatingtotheoperations
oftheexchange
–
–
–
–
(11)
(0.06)
Lossondivestitureofbusiness –
–
–
–
14
0.08
Other
2
–
(3)
(0.02)
–
–
Adjustmenttotheincometax
provisiontoreflectnonͲ
GAAPadjustments(2)
(72)
(0.42)
(13)
(0.07)
(32)
(0.19)
Significanttaxadjustments,
net
1
0.01
4
0.02
14
0.08
TotalnonͲGAAP
adjustments,netoftax
85
0.49
60
0.35
80
0.46
NonͲGAAPnetincome
attributabletoNasdaqand
dilutedearningspershare
$
499
2.88
$
445
432
$
2.50
WeightedͲaveragecommon
sharesoutstandingfordiluted
earningspershare
$
385
173,018,849 $
2.60
171,266,146
$
172,587,870
(1) PleaserefertoourannualreportonForm10ͲKforexplanationsofthesenonͲGAAPadjustments.
(2) Wedeterminethetaxeffectofeachitembasedonthetaxrulesintherespectivejurisdictionwherethetransactionoccurred.
/72
2015PROXYSTATEMENT
ANNEXB:PROPOSEDAMENDEDANDRESTATEDNASDAQECIP
ExecutiveCorporateIncentivePlan
(EffectiveJanuary1,2015)
Article1.
EstablishmentandPurpose
1.1 EstablishmentoftheECIP.TheNASDAQOMXGroup,Inc.,aDelawarecorporation(the“Company”or
“Nasdaq”),herebyestablishesTheNASDAQOMXGroup,Inc.ExecutiveCorporateIncentivePlan(the“ECIP”orthe
“Plan”).
1.2 Approval.UponapprovalbytheBoardofDirectors,theECIPshallbeeffectiveasofJanuary1,2015
(the“EffectiveDate”)andshallremainineffectuntilterminatedbytheBoard.Notwithstandinganythinghereintothe
contrary,theECIPshallbenullandvoidifitisnotapproved,inaseparateaffirmativevoteoftheholdersofatleasta
majorityofthesharesofthecommonstockoftheCompanycast,inpersonorbyproxy,atthefirststockholders’
meetingtooccurin2015.Oncesuchapprovalisobtained,ifapplicable,theECIPshallbefullyeffectiveasofthe
EffectiveDate.
1.3 Purpose.ThepurposeoftheECIPistoattract,retain,andmotivatekeyexecutivesbyprovidingcash
incentiveawardstodesignatedexecutivesoftheCompany,Subsidiaries,andaffiliates.TheECIPisdesignedtofurther
linkanexecutive’sinterestswiththatofNasdaq’sstockholders.TheECIPisintendedtoprovidecashincentiveawards,
contingentuponcontinuedemploymentandmeetingcertainCompanyandindividualbusinessunitperformancegoals,
tocertainkeyexecutiveswhomakesubstantialcontributionstotheCompany.TheECIPalsoprovidesthatAwards
reflectindividualperformance,subjecttoArticle5.AwardspaidundertheECIPareintendedtoqualifyasperformance
basedcompensationdeductiblebytheCompanyunderthequalifiedperformancebasedexceptiontoSection162(m)
oftheCode.
Article2.
Definitions
AsusedintheECIP,thefollowingtermsshallhavethemeaningssetforthbelow:
2.1 “Award”meanstheactualawardearnedduringaPlanYearbyaParticipant,asdeterminedbythe
CommitteefollowingtheendofthePlanYear.
2.2
“Board”meanstheBoardofDirectorsoftheCompany.
2.3 “Cause”means,unlessotherwisedefinedinanemploymentagreementbetweentheParticipantand
theCompany,(i)theengagingbytheParticipantinwillfulmisconductthatisinjurioustotheCompanyoritsaffiliates,
(ii)theembezzlementormisappropriationoffundsorpropertyoftheCompanyoritsaffiliatesbytheParticipant,or
theconvictionoftheParticipantofafelonyortheentranceofapleaofguiltyornolocontenderebytheParticipantto
afelony,(iii)thewillfulfailureorrefusalbytheParticipanttosubstantiallyperformhisorherdutiesorresponsibilities
thatcontinuesafterbeingbroughttotheattentionoftheParticipant(otherthananysuchfailureresultingfromthe
Participant’sincapacityduetoDisability),or(iv)theviolationbytheParticipantofanyrestrictivecovenantsentered
intobetweentheParticipantandtheCompanyortheCompany’sCodeofConduct.
2.4 “Code”meanstheInternalRevenueCodeof1986,asamended,andanyfinaltreasuryregulations
promulgatedthereunder.
2.5 “Committee”meanstheManagementCompensationCommitteeoftheBoard,whichCommitteehas
beendesignatedbytheBoardto,amongotherthings,administertheECIP.TheCommitteeshallbecomposedofnot
lessthantheminimumnumberofpersonsfromtimetotimerequiredbySection16oftheSecuritiesExchangeActof
1934,asamended,andSection162(m)oftheCode,eachofwhom,totheextentnecessarytocomplywithSection16
andSection162(m)only,isa“NonͲEmployeeDirector”andan“OutsideDirector”withinthemeaningofSection16and
Section162(m),respectively,andtheminimumnumber,ifany,requiredbylistingrulesofTheNasdaqStockMarket.
2.6 “Company”meansTheNASDAQOMXGroup,Inc.,aDelawarecorporation(includinganySubsidiaries
designatedtoparticipateintheECIP),andanysuccessorthereto.
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2015PROXYSTATEMENT
2.7 “Disability”means,unlessotherwisedefinedinanemploymentagreementbetweentheParticipant
andtheCompany,adisabilitythatwouldqualifyassuchundertheCompany’sthencurrentlongͲtermdisabilityplan.
2.8
“IndividualAward”meansthetargetawardestablishedforeachParticipantunderArticle5oftheECIP.
2.9 “Participant”meansanactiveemployeeoftheCompany,oraSubsidiary,whoisemployedinan
executivecapacity,anddesignatedbytheCommitteetoparticipateintheECIPduringaPlanYear.
2.10 “PaymentDate”meansthedateuponwhichanAwardshallbepaidoutinaccordancewithArticle6.
2.11 “PerformanceGoals”meansthegoalsselectedbytheCommitteeforanyPlanYearbasedupononeor
moreofthePerformanceMeasures,assetforthinArticle5oftheECIP.
2.12 “PerformanceMeasures”means,unlessanduntiltheCommitteeorBoardproposesforstockholder
voteandstockholdersapproveachangeinthegeneralPerformanceMeasuressetforthherein,theperformance
criteriauponwhichthePerformanceGoal(s)foraparticularPerformancePeriodarebased;theperformancecriteria
shallbelimitedtoanyoneormoreofthefollowingPerformanceMeasures:
(a) Earningsbeforeinterestandtaxes;
(b) Earningsbeforeinterest,taxes,depreciationandamortization;
(c) EarningsperShare;
(d) Operatingincome,netincome,netincomefromoperations,revenues,netrevenuesornet
exchangerevenues(beforeoraftertaxes,andwhichmaytakeintoaccountorexcludetheeffect
ofnonͲrecurringorextraordinarychargesand/orexpenses);
(e) Operatingorprofitmarginornetprofit(beforeoraftertaxes,andwhichmaytakeintoaccount
orexcludetheeffectofnonͲrecurringorextraordinarychargesand/orexpenses);
(f) Revenuegrowth;
(g) Sharepriceortotalshareholderreturn;
(h) Marketshare;
(i) Returnmeasures(includingwithoutlimitationreturnonassetsornetassets,capital,revenue,
netrevenue,incomeornetincome);
(j) Cashflow(includingwithoutlimitationoperatingcashflowand/orfreecashflow);
(k) Adherencetobudgetorexpensetargets;
(l) Planningaccuracy(asmeasuredbycomparingplannedresultstoactualresults);
(m)Objectivelydeterminableeffectiveness,efficiency,businessretention/expansion,business
supportorotheroperationalorsupportgoals;and
(n) Businesseffectivenesssurveyresultsorobjectivelydeterminableemployeeengagementor
developmentgoals.
AnyPerformanceMeasure(s)maybeusedtomeasuretheperformanceoftheCompanyasawholeorany
businessunit,division,departmentorfunctionoftheCompanyoranySubsidiary,eitherindividually,alternativelyorin
anycombination,andmeasuredoveraperiodoftimeincludinganyportionofayear,annuallyorcumulativelyovera
periodofyears,calculatedbasedonU.S.generallyacceptedaccountingprinciples(GAAP)oronanonͲGAAPbasis,and
onanabsolutebasisorrelativetoapreͲestablishedtarget,toapreviousyear’sorperiod’sresultsortoadesignated
comparisongrouporcompanyorstockmarketindex,ineachcaseasspecifiedbytheCommittee.
2.13 “PerformancePeriod”means,inrelationtoanyAward,thePlanYearorotherperiodforwhicha
Participant’sperformanceisbeingcalculated,witheachsuchperiodconstitutingaseparatePerformancePeriod.
2.14 “PlanYear”meanstheCompany’sfiscalyear,whichcommenceseachJanuary1standconcludeseach
December31st.
2.15 “Retirement”means,unlessotherwisedefinedinanemploymentagreementbetweentheParticipant
andtheCompany,aParticipantwhoiseligibletoretirefromtheCompanyoranAffiliateunderthetermsofanytax
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2015PROXYSTATEMENT
qualifiedCompanyretirementplanor,ifaParticipantisnotcoveredbyanysuchplan,retirementonoraftersuchdate
asofwhichtheParticipanthasbothattainedtheageof55yearsandhas10yearsofemploymentwiththeCompany
andterminateshisemploymentwiththeCompanyotherthanforCauseordeath.
2.16 “Shares”meanssharesofthecommonstock,$0.01parvalue,oftheCompany,orsuchothersecurities
oftheCompanyasmaybedesignatedbytheCommitteefromtimetotime.
2.17 “Subsidiary”hasthemeaningsetforthinSection424(f)oftheCode.
Article3.
3.1
Administration
TheECIPAdministrator.TheCommitteeshalladministertheECIP.
3.2 AdministrationoftheECIP.TheCommittee,initssolediscretion,shalldetermineeligibilityfor
participationintheECIP,establishtheIndividualAwardswhichmaybeearnedbyeachParticipant(whichmaybe
expressedintermsofdollaramount,percentageofsalaryoranyothermeasurement,andwhichmayhave,butarenot
requiredtohave,threshold,targetandmaximumpayouts),establishthetermsandconditionsofeachAward(including
thePerformancePeriodandPerformanceGoal(s)andPerformanceMeasure(s)tobeutilizedforeachParticipant,
whichmaybebasedonindividual,Company,Subsidiaryand/orbusinessunitperformance),calculate,determineand
certifyeachParticipant’slevelofattainmentofsuchPerformanceGoalsorothertermsandconditions,andcalculate
theAwardforeachParticipantbaseduponsuchlevelofattainment.Exceptasotherwisehereinexpresslyprovided,
fullpowerandauthoritytoconstrue,interpret,andadministertheECIPshallbevestedintheCommittee,including
withoutlimitationtocorrectanydefect,supplyanyomissionorreconcileanyinconsistencyorconflictinthePlanor
anyawardunderthePlan.TheCommitteehasthepowertoamendorterminatetheECIPasfurtherdescribedherein.
TheCommitteemayatanytimeadoptsuchrules,regulations,policies,orpractices,as,initssolediscretion,itshall
determinetobenecessaryorappropriatefortheadministrationof,ortheperformanceofitsrespectiveresponsibilities
under,theECIP.TheCommitteemayatanytimeamend,modify,suspend,orterminatesuchrules,regulations,
policies,orpractices.
3.3 DecisionsBinding.AlldeterminationsanddecisionsoftheCommitteeastoanydisputedquestion
arisingundertheECIP,includingquestionsofconstructionandinterpretation,shallbefinal,binding,andconclusive
uponallparties.
3.4 NoLiabilitytoCommitteeMembers.NomemberoftheCommitteeshallbepersonallyliablebyreason
ofanycontractorotherinstrumentrelatedtotheECIPexecutedbysuchmemberoronhisorherbehalfinhisorher
capacityasamemberoftheCommittee,norforanymistakeofjudgmentmadeingoodfaith,andtheCompanyshall
indemnifyandholdharmlesseachemployee,officer,ordirectoroftheCompanytowhomanydutyorpowerrelating
totheadministrationorinterpretationoftheECIPmaybeallocatedordelegated,againstanycostorexpense
(includinglegalfees,disbursementsandotherrelatedcharges)orliability(includinganysumpaidinsettlementofa
claimwiththeapprovaloftheBoard)arisingoutofanyactoromissiontoactinconnectionwiththeECIPunlessarising
outofsuchperson’sownfraudorbadfaith.
3.4.1
Theforegoingrightofindemnificationshallnotbeexclusiveofanyotherrightsof
indemnificationtowhichsuchpersonsmaybeentitledundertheCompany’sAmendedandRestatedCertificateof
IncorporationorByͲLaws,asamatteroflaw,orotherwise,oranypowerthattheCompanymayhavetoindemnify
themorholdthemharmless.
Article4.
EligibilityandParticipation
4.1 Eligibility.OnlyactiveemployeesoftheCompanyanditsparticipatingSubsidiarieswhoareemployed
inanexecutivecapacitymaybeeligibletoparticipateintheECIPandreceiveAwardshereunder.
4.2 Participation.OnlyeligibleindividualswhoarechosenanddesignatedbytheCommitteetoparticipate
intheECIPwithrespecttoanygivenPlanYearorotherPerformancePeriodmayparticipateintheECIPforthatPlan
YearorotherPerformancePeriod.TheChiefExecutiveOfficer(“CEO”)oftheCompany,andsuchotherpersonsasthe
CEOmaydesignate,shallrecommendtotheCommitteeemployees(whomayincludesuchrecommendingperson)for
selectionasParticipants.Suchdesignatedemployeesshallbesonotifiedinwritingorviaelectroniccommunication,as
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2015PROXYSTATEMENT
soonasispracticableafterselection.TheCommitteemayaddtoordeleteindividualsfromthelistofdesignated
Participantsatanytimeandfromtimetotime,atitssolediscretion.
4.3 NoRighttoParticipate.NoParticipantshallatanytimehavearighttobeselectedforparticipationin
theECIPforanyPerformancePeriod,despitehavingpreviouslyparticipatedintheECIP.
Article5.
AwardDetermination
5.1 Targets,InGeneral.AtthebeginningofeachPerformancePeriod,butnotlaterthanthe90thdayofthe
PerformancePeriod,theCommitteeshallestablishIndividualAwardsforeachParticipant,paymentofwhichshallbe
conditioneduponsatisfactionofspecificPerformanceGoalsforthePerformancePeriodestablishedbytheCommittee
inwritinginadvanceofthePerformancePeriod,orwithinsuchperiodasmaybepermittedbyregulationsissuedunder
Section162(m)oftheCode.Notwithstandingtheforegoing,foranyPerformancePeriodoflessthanoneyear,the
Committeeshalltaketheforegoingactionspriortothelapseof25%ofthePerformancePeriod.Thepaymentofan
Award,ifany,shallbebaseduponthedegreeofachievementofthePerformanceGoals;provided,however,thatthe
Committeemay,initssolediscretion,reducesomeoralloftheamountwhichwouldotherwisebepayablewith
respecttoanAward.TheCommitteeshallnotuseitsdiscretionaryauthoritytoincrease,directlyorindirectly,the
amountofapaymenttoanyParticipantabovethemaximumIndividualAwardawardedforsuchPerformancePeriod.
5.1.1
TheCommittee,initssolediscretion,mayalsoestablishsuchotheradditionalrestrictionsor
conditionsthatmustbesatisfiedasaconditionprecedenttothepaymentofalloraportionofanyAward.Such
additionalrestrictionsorconditionsshallbeestablishednolaterthanthedatetheCommitteedeterminesthe
PerformanceGoal(s)foraPerformancePeriod.SuchadditionalrestrictionsorconditionsneednotbeperformanceͲ
basedandmayinclude,amongotherthings,thereceiptbyaParticipantofaspecifiedannualperformancerating,a
vestingrequirementofcontinuedemploymentbytheParticipantuntiladatewhichmaybebeyondtheendofa
PerformancePeriod,and/ortheachievementofspecifiedperformancegoalsbytheCompany,businessunitor
Participant.
5.2 PerformanceGoals.ThePerformanceGoalsestablishedbytheCommitteeforaPerformancePeriod
shallbebasedononeormorePerformanceMeasures.
5.2.1
TheCommitteeisauthorized,initssoleandabsolutediscretion,toadjustormodifythe
calculationofaPerformanceGoalforaPerformancePeriodtoincludeorexcludetheeffectofanyoneormoreofthe
followingoccurrencesthatoccurduringaPerformancePeriod:
(a) assetwriteͲdowns;
(b) significantlitigationorclaimjudgmentsorsettlements;
(c) theeffectofchangesintaxlaws,accountingstandardsorprinciples,orotherlawsorregulatory
rulesaffectingreportedresults;
(d) anyreorganizationandrestructuringprograms,includingwithoutlimitationtheinternal
restructuringofdepartmentsorunitsorfunctionswithintheCompanythatsignificantlyaffect
expenseand/orbudgettargetsuponwhichaPerformanceMeasureisbased;
(e) extraordinarynonrecurringitemsasdescribedinAccountingStandardCodificationTopic225
(formerlyStatementofFinancialAccountingStandards145)(oranysuccessorpronouncement
thereto)and/orinmanagement’sdiscussionandanalysisoffinancialconditionandresultsof
operationsappearingintheCompany’sannualreporttostockholdersfortheapplicableyearor
period;
(f) acquisitions,divestituresorsalesofsignificantassets;
(g) anyotherspecificunusualornonrecurringevents,orobjectivelydeterminablecategorythereof;
(h) foreignexchangegainsandlosses;and
(i) achangeintheCompany’sfiscalyear.
SuchinclusionorexclusionshallbeprescribedinaformthatmeetstherequirementsofCodeSection162(m)for
deductibility.
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2015PROXYSTATEMENT
5.2.2
Intheeventthatapplicabletaxand/orsecuritieslawschangetopermitCommitteediscretion
toalterthegoverningPerformanceMeasureswithoutobtainingstockholderapprovalofsuchchanges,theCommittee
shallhavesolediscretiontomakesuchchangeswithoutobtainingstockholderapproval.
5.3 PaymentofAwards.AtthetimethePerformanceGoalsareestablished,theCommitteeshallprescribe
aformulatodeterminethepercentageoftheIndividualAward,whichmaybepayablebaseduponthedegreeof
attainmentofthePerformanceGoalsduringthePlanYear.IftheminimumPerformanceGoalsestablishedbythe
Committeearenotmet,nopaymentwillbemadetoanyParticipant.Totheextentthattheminimumortarget
PerformanceGoalsaresatisfiedorsurpassed,anduponwrittencertificationbytheCommitteethatthePerformance
Goalshavebeensatisfiedtoaparticularextent,paymentoftheAwardshallbemadeinaccordancewiththeprescribed
formulabaseduponapercentageoftheIndividualAwardunlesstheCommitteedetermines,initssolediscretion,to
reducethepaymenttobemade.
5.4 MaximumAward.ThemaximumIndividualAwardpayabletoanyParticipantforanyPerformance
Periodofoneyearormoreshallnotexceedthegreaterof3%oftheCompany’sbeforetaxnetincomeor$3million.
TheforegoingmaximumannuallimitshallbeproratedwithrespecttoanyindividualAwardpayablewithrespecttoa
PerformancePeriodthatisshorterthanoneyear.
Article6.
PaymentofAwards
6.1 FormandTimingofPayment.EachParticipant’sAwardshallbepaidinone(1)lumpsumcash
payment,nolaterthanMarch15afterthecloseofthePlanYearinwhichthePerformancePeriodwithrespecttothe
Awardends(suchdatebeinghereinafterreferredtoasthe“PaymentDate”).
6.1.1
NotwithstandingSection6.1above,intheeventtheCommitteehad,atthetimetheAward
wasmade,imposedavestingrequirementofcontinuedemploymentuntilaspecifieddateafterthePerformance
PeriodbeforetheAwardcanbepaid,theAwardshallbepaidassoonaspracticableafterthelasttooccurof(i)the
PaymentDatedescribedinSection6.1,or(ii)thevestingdate,butinnoeventlaterthanMarch15followingtheclose
ofthePlanYearinwhichthelaterof(i)or(ii)occurs.
6.2 UnsecuredInterest.NoParticipantoranyotherpartyclaiminganinterestinamountsearnedunder
theECIPshallhaveanyinterestwhatsoeverinanyspecificassetoftheCompany.Totheextentthatanypartyacquires
arighttoreceivepaymentsundertheECIP,suchrightshallbeequivalenttothatofanunsecuredgeneralcreditorof
theCompany.
6.3 ActiveEmployment.ExceptasprovidedinArticle7,noAwardshallbepaidtoanyParticipantwhois
notanactiveemployeeoftheCompanyoroneofitsSubsidiariesonthelastdayoftheapplicablePerformancePeriod
andonthePaymentDateorsuchlaterdateasestablishedinaccordancewithparagraph6.1.1.
Article7.
TerminationofEmployment
7.1 TerminationofEmploymentDuetoDeath,Disability,orRetirement.IntheeventaParticipant’s
employmentisterminatedbyreasonofdeath,Disability,orRetirement,theAwarddeterminedinaccordancewith
Section5.3hereinshallbereducedtoreflectpartialparticipationduringthePerformancePeriodthroughthedateof
suchtermination,providedandsubjecttotheCommittee’scertificationthat,withrespecttoaterminationof
employmentduetoRetirement,theapplicablePerformanceGoal(s)forthePerformancePeriodhavebeenmet.A
reducedAwardshallbedeterminedbymultiplyingsaidAwardbyafraction:thenumeratorofwhichshallbethe
numberofdaysofemploymentinthePerformancePeriodthroughthedateofemploymenttermination,andthe
denominatorofwhichshallbethetotalnumberofdaysinthePerformancePeriod.InthecaseofaParticipant’s
Disability,theemploymentterminationshallbedeemedtohaveoccurredonthedatethattheCommitteedetermines
theParticipanttobeDisabled.ThereducedAwardthusdeterminedshallbepaidonthePaymentDatewithrespectto
thePerformancePeriodastowhichsuchAwardrelatestotheParticipantorhisbeneficiaryinaccordancewithArticle9
hereof.
7.2 TerminationofEmploymentforOtherReasons.IntheeventaParticipant’semploymentisterminated
foranyreasonotherthandeath,Disability,orRetirement,alloftheParticipant’srightstoanAwardforthe
PerformancePeriodtheninprogressshallbeforfeited.However,theCommittee,initssolediscretion,maypaya
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2015PROXYSTATEMENT
proratedAwardfortheportionofthePerformancePeriodthattheParticipantwasemployedbytheCompany,
computedasdeterminedbytheCommittee,providedandsubjecttotheCommittee’scertificationthattheApplicable
PerformanceGoal(s)forthePerformancePeriodhavebeenmet.ThereducedAwardthusdeterminedshallbepaidon
thePaymentDatewithrespecttothePerformancePeriodastowhichsuchAwardrelates.Notwithstandingthe
foregoing,intheeventaParticipantisterminatedforCause,theParticipantshallinalleventsforfeitanyAwardnot
alreadypaid.
Article8.
RightsofParticipants
8.1 Employment.TheCompanyintendsthattheAwardsprovidedundertheECIPbeatermofemployment
andapartofeachParticipant’scompensation.ParticipationintheECIPshallnotconstituteanagreement(a)ofthe
Participanttoremainintheemployofandtorenderhis/herservicestotheCompany,or(b)oftheCompanyto
continuetoemploysuchParticipant,andtheCompanymay,subjecttoanyapplicableemploymentagreement,
terminatetheemploymentofaParticipantatanytimewithorwithoutcause.
8.2 Nontransferability.NorightorinterestofanyParticipantintheECIPshallbeassignableor
transferable,orsubjecttoanylien,directly,byoperationoflaworotherwise,including,butnotlimitedto,execution,
levy,garnishment,attachment,pledge,andbankruptcy.
Article9.
BeneficiaryDesignationandPaymenttoPersonsOtherThantheParticipant
9.1 BeneficiaryDesignation.EachParticipantundertheECIPmay,fromtimetotime,nameanybeneficiary
orbeneficiaries(whomaybenamedcontingentlyorsuccessively)towhomanybenefitundertheECIPistobepaidin
caseofhisdeathbeforehereceivesanyorallofsuchbenefit.Eachdesignationwillrevokeallpriordesignationsbythe
sameParticipant,shallbeinaformprescribedbytheCommittee,andwillbeeffectiveonlywhenfiledbythe
ParticipantinwritingwiththeCommitteeduringhislifetime.Intheabsenceofanysuchdesignation,benefits
remainingunpaidattheParticipant’sdeathshallbepaidtotheParticipant’sestate.
9.2 Incapacity.IftheCommitteeshallfindthatanypersontowhomanyamountispayableundertheECIP
isunabletocareforhisaffairsbecauseofincapacity,illnessoraccident,orisaminor,orhasdied,thenanypayment
duetosuchpersonorhisestate(unlessapriorclaimthereforehasbeenmadebyadulyappointedlegal
representative)may,iftheCommitteesodirects,bepaidtohisspouse,achild,arelative,aninstitutionmaintainingor
havingcustodyofsuchperson,oranyotherpersondeemedbytheCommittee,initssolediscretion,tobeaproper
recipientonbehalfofsuchpersonotherwiseentitledtopayment.Anysuchpaymentshallbeacompletedischargeof
theliabilityoftheCompanytherefor.
Article10.
Amendments
TheCommitteemayamend,suspendorterminatetheECIPatanytime;providedthatnoamendmentmaybe
madewithouttheapprovaloftheCompany’sstockholdersiftheeffectofsuchamendmentwouldbetocause
outstandingorpendingAwardstoceasetoqualifyfortheperformanceͲbasedcompensationexceptiontoSection
162(m)oftheCode.NotwithstandingtheforegoingoranyprovisionoftheECIPtothecontrary,theCommitteemayat
anytime(withouttheconsentoftheParticipant)modify,amendorterminateanyorallprovisionsofthisECIPtothe
extentnecessarytoensurethatpaymentsundertheECIParenot“deferredcompensation”subjecttoSection409Aof
theCode(or,alternatively,conformtotherequirementsofSection409AoftheCode).
Article11.
Miscellaneous
11.1 GoverningLaw.Thevalidity,construction,andeffectoftheECIPandanyrulesandregulationsrelating
totheECIPandanyAwardshallbedeterminedinaccordancewiththelawsoftheStateofDelawarewithoutgiving
effecttotheconflictoflawprinciplesthereof.
11.2 WithholdingTaxes.TheCompanyshalldeductfromallpaymentsundertheECIPanyfederal,state,
localorothertaxesrequiredbylawtobewithheldwithrespecttosuchpayments.
11.3 GenderandNumber.Exceptwhereotherwiseindicatedbythecontext,anymasculinetermused
hereinalsoshallincludethefeminine;thepluralshallincludethesingular,andthesingularshallincludetheplural.
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2015PROXYSTATEMENT
11.4 Severability.IntheeventanyprovisionoftheECIPshallbeheldillegalorinvalidforanyreason,the
illegalityorinvalidityshallnotaffecttheremainingpartsoftheECIP,andtheECIPshallbeconstruedandenforcedasif
theillegalorinvalidprovisionhadnotbeenincluded.
11.5 RightsNotTransferable.AParticipant’srightsundertheECIPmaynotbeassigned,pledgedor
otherwisetransferredexcept,intheeventoftheParticipant’sdeath,totheParticipant’sdesignatedbeneficiaryor,in
theabsenceofsuchadesignation,bywillorbythelawsofdescentanddistribution.
11.6 CostsoftheECIPandUnfundedPlan.AllcostsofimplementingandadministeringtheECIPshallbe
bornebytheCompany.Participantsshallhavenoright,title,orinterestwhatsoeverinortoanyinvestmentswhichthe
CompanymaymaketoaiditinmeetingitsobligationsundertheECIP.NothingcontainedintheECIP,andnoaction
takenpursuanttoitsprovisions,shallcreateorbeconstruedtocreateatrustofanykind,orafiduciaryrelationship
betweentheCompanyandanyParticipant,beneficiary,legalrepresentativeoranyotherperson.Totheextentthat
anypersonacquiresarighttoreceivepaymentsfromtheCompanyundertheECIP,suchrightshallbenogreaterthan
therightofanunsecuredgeneralcreditoroftheCompany.Allpaymentstobemadehereundershallbepaidfromthe
generalfundsoftheCompanyandnospecialorseparatefundshallbeestablishedandnosegregationofassetsshallbe
madetoassurepaymentofsuchamountsexceptasexpresslysetforthintheECIP.
TheECIPisnotintendedtobesubjecttotheEmployeeRetirementIncomeSecurityActof1974,asamended.
11.7 RetirementPlansandWelfareBenefitPlans.Exceptasspecifiedintheemployeebenefitplanin
question,AwardsundertheECIPwillnotbeincludedas“compensation”forpurposesoftheCompany’sretirement
plans(bothqualifiedandnonqualified)orwelfarebenefitplans.
11.8 Nonexclusively.TheadoptionoftheECIPshallnotbeconstruedascreatinganylimitationsonthe
poweroftheBoardorCommitteetoadoptsuchothercompensationarrangements,asitmaydeemdesirableforany
Participant.
11.9 Successors.AllobligationsoftheCompanyundertheECIPwithrespecttoIndividualAwardsand
AwardsgrantedhereundershallbebindinguponanysuccessortotheCompany,whethertheexistenceofsuch
successoristheresultofadirectorindirectpurchase,merger,consolidation,orotherwise,ofallorsubstantiallyallof
thebusinessand/orassetsoftheCompany.
11.10 Interpretation.TheECIP,theIndividualAwards,andAwardsaredesignedand,totheextent
determinedbytheCommittee,initssolediscretion,intendedtocomplywithCodeSection162(m),andallprovisions
hereofshallbeconstruedinamannertosocomply.
11.11 ClawbackPolicy.ParticipantsandAwardsgrantedhereundermaybesubjecttotheCompany’s
incentiverecoupmentpolicy.
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