2022 Proxy Final
2022 Proxy Final
2022 Proxy Final
Proxy Statement
Notice of Annual Meeting of Stockholders
Friday, May 6, 2022
Letter from our Chairman and our Chief Executive Officer
1 All occupancy, ADR and RevPAR statistics are systemwide constant dollar and include hotels that have been temporarily closed due to
COVID-19. RevPAR and ADR comparisons between 2021 and 2019 reflect properties that are defined as comparable as of December 31,
2021, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for comparable in 2019.
Unless otherwise stated, all comparisons to 2019 are comparing the same time period in each year.
Letter from our Chairman and our Chief Executive Officer
which will be made widely available to the entire industry. More than 900,000 managed and franchised associates have
taken training in this area. In September, we pledged to set science-based emissions reduction targets in line with
1.5°C emissions scenarios. These efforts are part of our broader sustainability and social impact platform, called Serve
360: Doing Good in Every Direction, through which we aim to positively address some of the most pressing societal
issues of our time. As we weather the industry’s current challenges, we will continue to draw on our long history of
being a force for good in our communities.
We also know that our success is rooted in good governance. Our Board of Directors is actively engaged in the
company’s strategy, oversees our approach to environmental and social initiatives, and provides independent oversight
and valuable guidance that helps position us for success. The Board has long embraced diversity and board
refreshment – we have welcomed five new directors in the last three years – and we believe the diverse backgrounds,
experiences, skills, and tenure of our directors are fundamental to the effectiveness of our Board.
Embracing Change
It has been just over a year since the Board appointed long-time company veterans Anthony “Tony” Capuano as Chief
Executive Officer and Stephanie Linnartz as President following the tragic death of our beloved CEO and President,
Arne Sorenson. Under Tony’s and Stephanie’s leadership, we have built on Arne’s legacy and advanced our strategies
to grow the business, provide opportunities for our associates, maintain strong relationships with our owners and
franchisees, deliver safe and innovative experiences for our guests, and create long term value for our stockholders.
Tony and Stephanie are joined by a dedicated and experienced senior leadership team, many of whom have taken on
new or expanded responsibilities over the past 18 months.
Our annual meeting in May will mark another extraordinary change for Marriott International. J.W. Marriott, Jr. will retire
after more than 66 years of service with the company, including the last decade as our Executive Chairman.
Mr. Marriott is a visionary leader and industry icon who has stewarded the company in ways large and small since his
first full-time job with the company at the age of 14. The Board has named him Chairman Emeritus, and we are grateful
that he will remain close by as a mentor and a resource. Lawrence W. Kellner, who has served on the Board since
2002 and as our independent Lead Director since 2013, will also retire from the Board at the annual meeting. Larry has
made many significant contributions to the Board and its leadership, and he will be deeply missed.
Talented leaders who know our business and live our core values are poised to step into
these big shoes. The Board has elected David S. Marriott as its next Chairman, effective
after the annual meeting. As the grandson of our founders, the son of J.W. Marriott, Jr.,
and a long-time employee and executive of the company, David has extensive
operational and leadership experience and brings a deep historical perspective to the
Board. He stepped down as an employee of the company in April 2021 in connection
with joining the Board, allowing him to focus on leading the Board in fulfilling its
oversight and governance responsibilities and being a company ambassador as we
continue to grow around the world. In doing so, he will also continue the Marriott family’s
stewardship of the renowned culture and values that have fueled the company for more than 94 years. Joining David in
leading the Board will be Fritz Henderson, whom the independent directors have selected as the next independent
Lead Director. Fritz joined our Board in 2013 and, having served in numerous executive and board leadership roles at
other public companies throughout his career, will continue our Board’s tradition of engaged and truly impactful
independent leadership.
Closing Thought from Bill Marriott
When I look at the black-and-white photos of the small root beer stand that my young parents opened in 1927, and then
think about the company Marriott has become today, I am quite simply amazed. The company’s success is a testament
to the core values that have guided us for more than 94 years and the outstanding associates who live those values
every day in service of our guests. As a new generation of leaders takes the reins of Marriott, I know those values will
continue to guide them. They have my utmost confidence. There is an exciting road ahead for Marriott International.
Thank you for your continued support.
Sincerely,
J.W. Marriott, Jr. guided what was once a family-run root beer stand and restaurant business to a global hospitality
company that is today comprised of 8,000 properties across 30 brands in 139 countries and territories. Mr. Marriott’s
love for the hospitality industry began at an early age. He spent his high school and college years working in a
variety of positions in the family’s Hot Shoppes restaurant chain. After a stint in the U.S. Navy in the mid 1950s, he
became a full-time associate in 1956, and soon afterward began overseeing the first Marriott hotel. He became
President of the Company in 1964 and Chief Executive Officer in 1972, a role he held for 40 years before stepping
down on March 31, 2012. He was elected Chairman of the Board in 1985.
A LOOK BACK
“Know What You’re Good At and Keep Improving”
Calculated risk taking is embedded in Mr. Marriott’s DNA. With no hotel
management experience, he took the reins of the Company’s first hotel –
the Twin Bridges Motor Hotel – in 1957. The second hotel opened two
years later and by 1969, the Company debuted its first international hotel
in Acapulco, Mexico.
In the 1980s and 1990s, Mr. Marriott would continue his philosophy of 1972
“more” through strategic acquisitions – including extended stay Taking the reins as CEO from J. Willard
Residence Inn in 1987, the Renaissance Hotel Group in 1997 and The
Ritz-Carlton Hotel Company in 1998.
Mr. Marriott made another pivotal shift for the Company in the early
1990s when he moved Marriott away from hotel ownership and into hotel
management. The move positioned the Company to grow faster and
expand internationally, while staying asset-light.
The capstone of his career was the acquisition of Starwood Hotels &
Resorts Worldwide in 2016, which made Marriott International the world’s
largest hotel company.
1983
Launching Courtyard by Marriott
TAKE GOOD CARE OF YOUR ASSOCIATES AND THEY’LL TAKE GOOD CARE OF
YOUR CUSTOMERS AND YOUR CUSTOMERS WILL COME BACK AGAIN AND AGAIN
During his tenure, Mr. Marriott relied heavily on the culture established by his parents, J.W. and Alice
Marriott, when they founded the Company in 1927 with five core values: put people first, pursue excellence,
embrace change, act with integrity and serve our world.
Mr. Marriott is well known inside the Company for his hotel visits around the world, where he would inspect
properties and spend time talking with associates at every level of the business. He wanted to hear their
concerns, their ideas and their feedback.
He often said that when associates know that their problems will be taken seriously, that their ideas and
insights matter, they are more comfortable and confident, and in turn, better equipped to deliver their best on
the job. One of Mr. Marriott’s most important legacies will be his stewardship in preserving what he
considered Marriott’s secret to success – a Company culture that puts people first and creates opportunity
for all.
With our hearts full of deep gratitude, the associates of Marriott International
from around the world want to thank Bill Marriott for his incredible dedication
and lifetime of service. He paved the way and prepared us for the next chapter
and we will continue to be inspired by his favorite adage: “Success is Never
Final.”
Corporate Headquarters and Mailing Address ❖ 10400 Fernwood Road ❖ Bethesda, Maryland 20817
To Our Stockholders:
The 2022 annual meeting of stockholders (“Annual Meeting” or “2022 Annual Meeting”) of Marriott International, Inc. (“we,” “us,” “our,”
“Marriott,” or the “Company”) will be a virtual meeting held on May 6, 2022, beginning at 12:00 p.m. Eastern Time. Stockholders of record as of
the record date may join a live audio webcast at www.virtualshareholdermeeting.com/MAR2022. At the Annual Meeting, stockholders will act
on the following items:
1. Election of each of the 12 director nominees named in the proxy statement;
2. Ratification of the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for fiscal year
2022;
3. An advisory vote to approve executive compensation;
4. Approval of the Marriott International, Inc. Employee Stock Purchase Plan;
5. A stockholder resolution requesting that the Board prepare a report on the economic and social costs and risks created by the Company’s
compensation and workforce practices;
6. A stockholder resolution regarding an independent Board chair policy;
7. Any other matters that may properly be presented at the Annual Meeting.
Record Date: Stockholders of record at the close of business on March 9, 2022, are entitled to notice of, to attend, and vote at, the Annual
Meeting.
How to Attend: Stockholders of record as of the record date may join the Annual Meeting at www.virtualshareholdermeeting.com/MAR2022
by entering the 16-digit control number that appears on your proxy card. If your shares are held in street name and your voting instruction form
indicates that you may vote those shares through the http://www.proxyvote.com website, then you may join the Annual Meeting with the
16-digit access code indicated on that voting instruction form. Otherwise, stockholders who hold their shares in street name should contact
their bank, broker or other nominee (preferably at least 5 days before the Annual Meeting) and obtain a “legal proxy” in order to be able to join
the Annual Meeting. Whether or not you plan to attend the Annual Meeting, we encourage you to vote and submit your proxy in advance by
one of the methods described above. You may also vote online during the Annual Meeting by following the instructions provided on the Annual
Meeting website. For more information, see pages 73 - 76.
Distribution Date: This proxy statement is first being made available to our stockholders on March 22, 2022.
Stockholder List: A list of stockholders of record entitled to vote at the Annual Meeting will be available electronically at
www.virtualshareholdermeeting.com/MAR2022 during the Annual Meeting.
For the convenience of our stockholders, proxies may be submitted by telephone, electronically through the Internet, or by completing, signing,
and returning the enclosed proxy card. In addition, stockholders may elect to receive future stockholder communications, including proxy
materials, through the Internet. Instructions for each of these options can be found in the enclosed materials.
TABLE OF CONTENTS
PROXY STATEMENT SUMMARY 1 Board Evaluation Process 34
Voting Matters and the Recommendations of the Risk Oversight 35
Board of Directors 1
Stockholder Communications with the Board 35
Our Director Nominees 2
Code of Ethics and Business Conduct Guide 35
Corporate Governance Highlights 3
AUDIT COMMITTEE REPORT AND
Executive Compensation Matters 4 INDEPENDENT AUDITOR FEES 36
ITEMS TO BE VOTED ON 7 Report of the Audit Committee 36
Item 1 – Election of Directors 7 Pre-Approval of Independent Auditor Fees and
Services Policy 36
Item 2 – Ratification of Appointment of Ernst &
Young LLP as the Company’s Independent Independent Registered Public Accounting Firm
Registered Public Accounting Firm for Fiscal Year Fee Disclosure 37
2022 7
EXECUTIVE AND DIRECTOR COMPENSATION 38
Item 3 – Advisory Vote to Approve Executive
Report of the Human Resources and
Compensation 8
Compensation Committee 38
Item 4 – Approval of Marriott International, Inc.
Compensation Discussion and Analysis 39
Employee Stock Purchase Plan 8
Executive Compensation Tables and Discussion 52
Item 5 – Stockholder Resolution Requesting the
Board Prepare a Report on the Economic and Director Compensation 62
Social Costs and Risks Created by the Company’s
Compensation and Workforce Practices 11 Securities Authorized for Issuance under Equity
Compensation Plans 66
Item 6 – Stockholder Resolution Regarding An
Independent Board Chair Policy 13 STOCK OWNERSHIP 67
Voting Matters and the Recommendations of the Board of Directors (the “Board”)
Board Reasons for See
Item recommends recommendation page
The Board and its Nominating and Corporate
Governance Committee believe the 12 director
1. Election of Directors ✓ nominees each possess the skills, experience, and
7
FOR background to effectively monitor performance,
provide oversight, and advise management on the
Company’s long-term strategy.
Ratification of Based on the Audit Committee’s assessment of
appointment of Ernst & Ernst & Young LLP’s qualifications and performance,
Young LLP as the the Board believes retaining Ernst & Young LLP for
2. Company’s independent ✓ fiscal year 2022 is in the best interests of the 8
registered public FOR
Company and its stockholders.
accounting firm for fiscal
year 2022
The Board believes that the Company’s current
executive compensation program achieves an
appropriate balance of long- and short-term
3.
Advisory vote to approve ✓ performance incentives, reinforces the link between 8
executive compensation FOR executive pay and the Company’s long-term
performance and stock value, and thereby aligns the
interests of our Named Executive Officers (“NEOs”)
with those of our stockholders.
The Board believes that the Company’s interests are
best advanced by aligning stockholder and employee
Approval of the Marriott interests. The ESPP is intended to provide the
4.
International, Inc. ✓ Company’s eligible employees with an opportunity to
9
Employee Stock FOR participate in the Company’s success by allowing
Purchase Plan them to acquire an ownership interest in the
Company through periodic payroll deductions that
will be applied towards the purchase of shares of our
common stock at a discount from the market price.
Stockholder resolution The Board believes that the requested report is not
requesting a report on needed, is not in the best interests of stockholders,
the economic and social and is not an appropriate use of Company resources.
X
5. costs and risks of the The Company is committed to diversity, equity, and 11
AGAINST
Company’s inclusion, and the Board believes the Company’s
compensation and compensation policies and practices are equitable
workforce practices and reflect competitive pay for performance.
The Board believes that its current leadership
structure has contributed to the success of the
Stockholder resolution Company and provides a unique advantage to the
X Board and the Company. The Board has separated
regarding an
6. AGAINST the roles of Chairman and CEO since 2012 and 13
independent Board chair
policy maintained an independent Lead Director since
2013. The Board believes this structure is consistent
with current best practices and continues to be in the
best interests of Marriott’s stockholders.
Committee memberships
Name Director
Occupation Age* since Independent AC HRCC NCGC ISIC TISOC EC
David S. Marriott
Chairman of the Board-Elect, Marriott International, 48 2021 No M C
Inc.
Anthony G. Capuano 56 2021 No M M
Chief Executive Officer, Marriott International, Inc.
Isabella D. Goren C
Former Chief Financial Officer, 62 2022 Yes
American Airlines, Inc. and AMR Corporation F
Deborah Marriott Harrison
Global Cultural Ambassador Emeritus, 65 2014 No M
Marriott International, Inc.
Frederick A. Henderson (Lead Director-Elect)
Former Chairman and Chief Executive Officer, 63 2013 Yes F C M
SunCoke Energy, Inc.
Eric Hippeau 70 2016 Yes M M
Managing Partner, Lerer Hippeau
Debra L. Lee
Former Chairman and Chief Executive Officer, BET 67 2004 Yes M C M
Networks
Aylwin B. Lewis
Former Chairman, Chief Executive Officer and 67 2016 Yes F C M
President, Potbelly Corporation
Margaret M. McCarthy
Former Executive Vice President, CVS Health 68 2019 Yes M C
Corporation
George Muñoz 71 2002 Yes M
Principal, Muñoz Investment Banking Group, LLC
Horacio D. Rozanski
President and Chief Executive Officer, Booz Allen 54 2021 Yes M M
Hamilton Inc.
Susan C. Schwab
Professor Emerita, University of Maryland School of 67 2015 Yes M M
Public Policy
Base Salary
Reviewed annually and set based on market data, internal equity, tenure and
individual performance considerations.
Annual Incentive
Target Total Direct Based on achievement of pre-established financial and business operational
Compensation performance measures.
Equity Compensation
1% 1%
Other Other
10%
Base 16%
Salary Base
Salary
21%
Annual 14%
CEO
Incentive Average of Annual
Incentive
Other NEOs
68%
Equity 69%
Equity
72%
64%
41%
$10 20%
2%
$5 -20%
$0 -60%
2015 - 17 2016 - 18 2017 - 19 2018 - 20 2019 - 21
Average Annual Realizable Pay* 3 Year MAR TSR (60 day)
* Realizable Pay is the sum of salary and bonuses paid, annual incentives earned, and balances of stock awards granted over each 3-year
period (including supplemental stock awards). Stock award balances are valued at the end of the 3-year period and include the
“in-the-money” value of SARs, and the value of PSUs (valued assuming target performance) and RSUs granted during the 3-year period.
Realizable Pay is for Mr. Capuano for 2021 and Mr. Sorenson for 2015-2020. TSR reflects both stock price appreciation and reinvested
dividends. The 3-year TSR rolling percentage is determined using 60-day average opening and closing prices.
• Executive compensation is strongly linked to the Company’s operating and financial performance
and strategic business priorities
• The Human Resources and Compensation Committee reinforces its commitment to long-term
performance through robust stock ownership requirements that discourage excessive risk-taking
to achieve short-term returns. NEOs must retain 50% of the net after-tax shares received under
any equity awards until they satisfy their applicable ownership requirement
• NEOs are subject to compensation clawback requirements that can be triggered by either an
accounting restatement or by improper conduct
• The Human Resources and Compensation Committee follows a rigorous process in determining
NEO pay, including detailed review of multiple short- and long-term performance factors and
✓
market compensation information
• The Company emphasizes long-term pay and performance alignment by having long-term equity
represent the largest component of annual target total direct compensation (approximately
What 65%-75% of total) and by having half of annual equity awards granted to the CEO be three-year
We Do PSUs
• The Human Resources and Compensation Committee considers progress against diversity and
inclusion metrics as part of its determination of executive compensation
• The Human Resources and Compensation Committee oversees and reviews an annual
compensation risk assessment
• The Human Resources and Compensation Committee is composed solely of independent
members of the Board and retains an independent compensation consultant
• We provide stockholders with an annual vote to approve, on a non-binding, advisory basis, the
compensation of the NEOs and are available for engagement with stockholders on the
Company’s compensation process and policies
• We do not have employment contracts with NEOs
• We do not offer defined benefit pension plans or supplemental executive retirement plans for our
NEOs
• We do not provide tax gross-ups
• We do not have executive severance plans for our NEOs
What • We do not reprice options or SARs without stockholder approval, nor do we buy out underwater
options or SARs
We Do Not
Do • We do not allow associates, including NEOs, or directors to engage in hedging or derivative
transactions related to Marriott securities
• We do not allow NEOs to hold Company stock in margin accounts or pledge such stock as
collateral for loans
• We do not pay or accrue dividends or dividend equivalents on unvested or unexercised equity
awards
ITEMS TO BE VOTED ON
Item 1 – Election of Directors
The 12 current directors listed below are standing for election at the 2022 Annual Meeting. If elected, each director will
hold office for a one-year term expiring at the 2023 annual meeting of stockholders and until his or her successor is
elected or appointed and qualified.
David S. Marriott Frederick A. Henderson Margaret M. McCarthy
Anthony G. Capuano Eric Hippeau George Muñoz
Isabella D. Goren Debra L. Lee Horacio D. Rozanski
Deborah M. Harrison Aylwin B. Lewis Susan C. Schwab
You can find information on the director nominees in the “Nominees to our Board of Directors” section of this proxy
statement.
Each of the director nominees has consented to being named in this proxy statement and to serve if elected. However,
if before proxies are voted at the Annual Meeting any of the nominees should become unable to serve or will not serve
as a director, the Board may designate a substitute nominee or reduce the size of the Board. If the Board designates a
substitute nominee, the persons named as proxies will vote “FOR” that substitute nominee.
As previously disclosed and described elsewhere in this proxy statement, J.W. Marriott, Jr. will retire after more than
66 years of service with the Company and is not a nominee for election at the Annual Meeting. As more fully described
in the Board Leadership Structure section of this proxy statement, the Board has designated Mr. Marriott as Chairman
Emeritus.
Lawrence W. Kellner also announced he will retire from the Board, and as a result his term on the Board will end at the
Annual Meeting. Mr. Kellner has served on the Board since 2002 and as our independent Lead Director since 2013. His
contributions to the Board and the Company are enormous, and the Board thanks him for his long and distinguished
service.
Due to Mr. J.W. Marriott’s and Mr. Kellner’s impending departures, the Board has reduced its size from 14 to 12,
effective as of the Annual Meeting.
The Company’s Bylaws prescribe the voting standard for election of directors as a majority of the votes cast in an
uncontested election, such as this one, where the number of nominees does not exceed the number of directors to be
elected. Under this standard, a nominee must receive more “FOR” votes than “AGAINST” votes in order to be elected
as a director.
In a contested election, where the number of nominees exceeds the number of directors to be elected (which is not the
case at the Annual Meeting), the directors will be elected by a plurality of the shares present in person or by proxy and
entitled to vote on the election of directors. Under the Company’s Governance Principles, if a nominee who already
serves as a director is not elected, that nominee shall tender his or her resignation to the Board. The Nominating and
Corporate Governance Committee will then recommend to the Board whether to accept or reject the resignation, or
whether other action should be taken. Within 90 days of the certification of election results, the Board will determine
whether to accept or reject the resignation and will publicly disclose its decision promptly thereafter.
The Board recommends that stockholders vote FOR each of the 12 director nominees.
Item 2 – Ratification of Appointment of Ernst & Young LLP as the Company’s Independent
Registered Public Accounting Firm for Fiscal Year 2022
The Audit Committee of the Board has appointed Ernst & Young LLP as the Company’s independent registered public
accounting firm for fiscal year 2022. Ernst & Young LLP, a registered public accounting firm, has served as the
Company’s independent registered public accounting firm since May 3, 2002. Ernst & Young LLP will examine and
report to stockholders on the consolidated financial statements and the effectiveness of internal control over financial
reporting of the Company and its subsidiaries.
We expect that representatives of Ernst & Young LLP will join the Annual Meeting, have an opportunity to make a
statement if they so desire, and be available to respond to appropriate questions. You can find information on
pre-approval of independent auditor fees and Ernst & Young LLP’s fiscal year 2021 and 2020 fees in the “Audit
Committee Report and Independent Auditor Fees” section of this proxy statement. Although the Audit Committee has
discretionary authority to appoint the independent auditor, the Board is seeking stockholder ratification of the
appointment of the independent auditor as a matter of good corporate governance. If the stockholders do not ratify the
appointment of Ernst & Young LLP, the Audit Committee will take that into consideration when determining whether to
continue the firm’s engagement. Even if stockholders ratify the appointment of Ernst & Young LLP, the Audit Committee
may select another auditor if it determines doing so to be in the best interests of the Company and its stockholders.
The Board recommends that stockholders vote FOR ratification of the appointment of Ernst & Young LLP
as the Company’s independent registered public accounting firm for fiscal year 2022.
The Board recommends that stockholders vote FOR approval of the advisory resolution to approve
executive compensation.
The following description of the ESPP is a summary of its principal provisions and is qualified in its entirety by reference
to the plan document, a copy of which is appended to this proxy statement as Exhibit A. References to “common stock”
below mean the Class A common stock of the Company.
Purchase of Shares. On the last trading day of each offering period, each participant’s payroll deductions are used to
purchase shares. The purchase price for these shares will be 85% of the fair market value of the Company’s common
stock on either the first or last day of the offering period, whichever is lower. Fair market value under the ESPP
generally means the closing price of the Company’s common stock on the Nasdaq Global Select Market for the day in
question. As of March 1, 2022, the fair market value of the Company’s common stock was $164.91 per share. During
any single year, no participant may purchase more than $25,000 of shares under the ESPP (based on the fair market
value of the Company’s common stock on the applicable enrollment date(s)). In no event may a participant purchase
more than 1,000 shares during any single offering period.
Termination of Participation. Participation in the ESPP terminates when a participant terminates employment with the
Company or designated subsidiary for any reason. Upon termination of employment, any remaining accumulated
contributions are refunded to the participant.
New Plan Benefits. The actual number of shares that may be purchased by any individual under the ESPP is not
currently determinable because the number is determined, in part, on future contribution elections of individual
participants and the purchase price of the shares, which is not determined until the last day of the offering period.
The Board recommends that stockholders vote FOR this proposal to approve the Marriott International,
Inc. Employee Stock Purchase Plan.
Item 5 – Stockholder Resolution Requesting the Board Prepare a Report on the Economic and
Social Costs and Risks Created by the Company’s Compensation and Workforce Practices
Myra K. Young (the “proponent”), whose address and stockholdings will be provided by us upon written or oral request,
has advised the Company that she plans to present the following proposal at the Annual Meeting. If the proposal is
properly presented at the Annual Meeting by or on behalf of the proponent, the Board unanimously recommends a vote
“AGAINST” the following stockholder resolution. We have included the proponent’s proposal in this proxy statement
pursuant to SEC rules, and the Board’s response to it follows. The proponent’s proposal contains assertions about the
Company or other statements that we believe are incorrect. We have not attempted to refute all inaccuracies.
Supporting Statement:
PAY IS INADEQUATE, UNEQUAL AND RACIALLY DISPARATE
• The Company’s starting wage for a housekeeper is $12.00 per hour1 and the average wage for the position is
$13.11.2 By comparison, the national wage adequate for a modest one-bedroom accommodation is $20.40.3
• In 2019, the Company CEO received compensation worth $13,435,887—346 times the compensation of the
Company’s median worker.
• While the Company’s U.S. workforce is 67 percent people of color, those groups make up only 21 percent of
Company executives.4
RESEARCH REVEALS THAT INEQUALITY AND RACIAL DISPARITY HARM THE ENTIRE ECONOMY
• Income inequality slows U.S. economic growth by reducing demand by 2 to 4 percent.5
• A 1 percent increase in inequality leads to a 1.1 percent per capita GDP loss.6
• Gender and racial gaps created $2.9 trillion in losses to U.S. GDP in 2019.7
• Eliminating racial disparity would add $5 trillion to the U.S. economy over the next five years.8
The Company has presumably chosen a wage structure that managers believe will increase margins and financial
performance. But any gain in Company profit that comes at the expense of society and the economy is a bad trade
for most Company shareholders, who are diversified and rely on broad economic growth to achieve their financial
objectives. The costs and risks created by inequality and racial disparity will directly reduce long-term diversified
portfolio returns.
This proposal asks the Board to commission a report that analyzes the tradeoffs the Company makes between
financial return and the global economy and cohesion, and how those trade-offs affect diversified shareholders.
Such a report would not require precision: identifying areas where the Company creates inequality and racial
disparity and analyzing how they might manifest as costs or risks to diversified portfolios would help determine
whether and when the Company should prioritize employee equality and welfare over financial returns.
Please vote for: Report on costs of low wages and inequality – Proposal 5
Board Response
The Board will oppose this proposal if it is properly presented at the 2022 Annual Meeting and recommends a
vote AGAINST this proposal for the following reasons:
The Board recommends that stockholders vote “AGAINST” this advisory proposal requesting that the Company create
a report on the external economic and social costs and risk created by its compensation policies. After careful
consideration, the Board believes that the requested report is not needed and is not in the best interests of our
stockholders.
Commissioning a report to extrapolate the impact of our compensation and workforce policies on the global
economy and overall market returns is not an appropriate use of Company resources.
The Board disagrees with the proponent’s views about the Company and global financial markets and with the
proposal’s assertion that the Company’s compensation and workforce practices compound global inequality or threaten
financial markets. Further, the Board believes the requested report is not practical and would require extensive and
expensive experts to make a variety of speculative and unfounded assumptions to implement the request that the
Company quantify the impact of one aspect of its operations on the global economy or on the diversified portfolios of
stockholders worldwide. We also do not believe that that undertaking would meaningfully add to the wealth of
macroeconomic information and expertise available to globally diversified investors.
We are committed to our associates and to global diversity, equity, and inclusion.
Since Marriott’s founding in 1927, our company has relied on the deeply held belief: “Take care of the associates and
they’ll take care of your customer.” This core value of putting people first is the keystone of our Company’s culture and
success. Further, our commitment to diversity, equity, and inclusion is deeply rooted in the belief that embracing
differences is critical to our success as a global company, and we have oversight and accountability measures in place
to support our focus on diversity, equity, and inclusion. The Inclusion and Social Impact Committee of our Board helps
drive accountability across the Company. Established in 2003, the ISI Committee is chaired by a member of our Board
and comprised of certain other members of the Board and Company senior leadership. The ISI Committee assists the
Board in carrying out its commitment and responsibilities relating to Marriott’s people-first culture and the Company’s
efforts to foster associate well-being and inclusion. We actively invest in our associates personally and professionally to
ensure that our workforce is one that reflects the diversity of our customer base and the communities in which we do
business. This commitment is evident through the actions and achievements described in our 2021 Serve 360 Report,
available on our website, including our efforts to increase the presence of women and people of color in the highest
levels of management and other key decision-making positions within the Company. For example, in 2021, we
advanced our objectives to diversify our leadership by (1) accelerating our efforts to achieve global gender parity in
Company leadership by 2023 – two years earlier than our original goal, and (2) establishing a new objective to increase
the representation of people of color in executive positions in the U.S. to 25% by 2025.
Our commitment to empower through opportunity extends beyond our workforce and helps drive economic
empowerment to a variety of other stakeholders around the globe. In 2020, we exceeded our goal to have 1,500
diverse- and women-owned open hotels in our system, and we set a new goal of 3,000 diverse- and women-owned
hotels by 2025. Additionally, in 2019, we achieved our goal of investing $5 million in supporting programs and
partnerships that develop
hospitality skills and opportunity among youth, diverse populations, women, people with disabilities, veterans, and
refugees, and we set a new goal to invest $35 million in such programs and partnerships by 2025. We are also
committed to promoting equity and diversity in our supply chain: since 2010, Marriott has spent more than $6 billion with
diverse suppliers and we continue to invest in the growth and development of businesses owned by people from
historically disadvantaged communities through our partnerships with the National Minority Supplier Development
Council, The National LGBT Chamber of Commerce, the Women’s Business Enterprise National Council and other
business equity organizations.
For these and other efforts, the Company is consistently recognized for its commitment to our associates, and to
diversity, equity and inclusion. We were #1 on DiversityInc’s 2020 top 50 Companies for Diversity list and in 2021 we
were delighted to be the first and only hospitality company inducted into the DiversityInc Hall of Fame for Diversity &
Inclusion. We’ve been recognized by National Association of Female Executives Top 10 and Hall of Fame, Working
Mother Hall of Fame and Quarter Century Club, Leading Disability Employers, National Organization on Disability,
LATINA Style Top 50, WEConnect International Top 10 Global Champions for Supplier Diversity & Inclusion, Black
Enterprise Best Companies for Diversity, Asia Society Best Employer, the Fortune 100 Best Companies to Work For®
list each year since it was launched in 1998, PEOPLE Magazine’s Top 50 Companies that Care® list, World’s Best
Workplaces™ by Great Place to Work, the Bloomberg Gender-Equality Index, the Human Rights Campaign, Disability
Equality Index, and many more.
Our compensation policies and practices are equitable and reflect competitive pay for performance.
Our People First culture drives our efforts to invest in our associates worldwide, including through the compensation
and benefit programs that the Company provides. Our policies and practices are designed to avoid pay inequities
throughout an associate’s career, and we strongly disagree with the proponent’s characterization of our wage structure
as coming “at the expense of society.” We conduct pay equity reviews in the U.S., reviewing compensation based on
race and gender categories, and make pay adjustments where appropriate. For example, to establish a recruitment
process that reflects fair and equitable pay practices, we use a competitive local market wage scale and establish a
starting rate of pay with fixed or defined pay increases based on tenure for the vast majority of our U.S.-based hourly
paid hotel positions. Globally, during the application process, the Company only requests the applicant’s desired rate of
pay and directs HR professionals not to collect or utilize compensation history when establishing starting pay for new
hires. In response to current labor shortages, Marriott has increased base pay where necessary to remain competitive.
In addition, our executive compensation program, which is discussed elsewhere in this proxy statement, is designed to
drive performance through a combination of near-term financial and operational objectives and long-term focus on our
stock price performance. We emphasize long-term pay and performance alignment by having long-term equity
represent the largest component of target total direct compensation. We believe that, based on the elements and mix of
annual and long-term compensation we provide our executive officers, and in light of the external compensation market
data comparing our compensation practices to our peers, our compensation programs overall are aligned with long-
term stockholder value. Indeed, at the Company’s 2020 and 2021 Annual Meetings, stockholders expressed substantial
support for our compensation practices, with approximately 95% and 97% votes cast, respectively, voting for approval
of the “say-on-pay” advisory proposal relating to our NEO compensation.
* * *
We are guided by our core value to Put People First. Whether good times or challenging times, we are committed to
investing in our associates and believe that the Company’s focus and resources are far better spent on furthering this
goal than commissioning the requested report.
For these reasons, the Board opposes this proposal and recommends a vote AGAINST the proposal.
proposal in this proxy statement pursuant to SEC rules, and the Board’s response to it follows. The proponent’s
proposal contains assertions about the Company or other statements that we believe are incorrect. We have not
attempted to refute all inaccuracies.
SUPPORTING STATEMENT:
Marriott’s board chair is not an independent director, but rather serves as Executive Chairman. This structure can
weaken a corporation’s governance, harm shareholder value, and has been increasingly falling out of practice.
According to the Spencer Stuart 2020 Board Index, the trend toward an independent board chair “has been growing
steadily.” Over one-third (34%) of S&P 500 boards now have an independent chair; just ten years ago, that was only
19%.
This shift makes sense, considering that:
1. the role of management is to run the company; and
2. the board’s role is to provide independent oversight of management; therefore
3. conflicts of interest and a lack of checks and balances may arise when the board is chaired by a
non-independent director.
“The chair of the board should ideally be an independent director,” reports proxy advisor Institutional Shareholder
Services (ISS), “to help provide appropriate counterbalance to executive management.”
And as Glass Lewis reports: “Glass Lewis believes that shareholders are better served when the board is led by an
independent chairman who we believe is better able to oversee the executives of the Company and set a
pro-shareholder agenda without the management conflicts that exists when a CEO or other executive also serves
as chairman. This, in turn, leads to a more proactive and effective board of directors.”
Glass Lewis further found that empirical evidence suggests that firms with independent board chairs outperform
companies with non-independent directors, and companies with non-independent directors “tend to follow fewer
positive corporate governance practices.”
“We believe that the presence of an independent chairman fosters the creation of a thoughtful and dynamic board,
not dominated by the views of senior management,” concludes Glass Lewis.
Ensuring the Board Chair position is held by an independent director rather than a company executive would
benefit the company and its shareholders and we encourage shareholders to vote FOR this proposal.
Board Response
The Board recommends a vote AGAINST this proposal for the following reasons:
The Board is committed to maintaining leading corporate governance standards and effective Board oversight. In
keeping with these goals, the Board has separated the roles of Chairman and CEO since 2012 and maintained an
independent Lead Director since 2013. The Board reviews this leadership structure as part of its succession planning
process and believes that it continues to be in the best interests of Marriott’s stockholders and consistent with current
best practices.
as the Chairman of the Board since 1985 and as Executive Chairman since the Board separated the roles of Chairman
and CEO in 2012. Mr. Marriott has a lifetime of experience in the industry and leading the Company and, as Executive
Chairman, was able to provide the Board and our senior executives with unparalleled perspective, guidance, advice
and counsel regarding Marriott’s business, operations and strategy. David S. Marriott, whom the Board has selected to
succeed J.W. Marriott, Jr. as Chairman of the Board when he transitions to the role of Chairman Emeritus after the
Annual Meeting, likewise has extensive prior experience in a variety of operational and senior leadership roles at the
Company and brings a deep historical perspective to the Board. He stepped down as an employee of the Company in
April 2021 in connection with joining the Board, allowing him to focus on leading the Board in fulfilling its oversight and
governance responsibilities. In doing so, he will also continue the Marriott family’s stewardship of the culture and core
values that have fueled the Company for more than 94 years. Since 1927, the Marriott family’s unwavering commitment
to cultivating and advancing those values has empowered associates, taken care of guests, created opportunities for
hotel owners and franchisees, and propelled the Company from a family-run root beer stand and restaurant business to
a global hospitality company comprised of approximately 8,000 properties across 30 leading brands in 139 countries
and territories. Moreover, the Marriott family’s significant ownership stake in our Company has provided and continues
to provide robust alignment with the interests of fellow stockholders.
If the rigid Board leadership mandate urged by the proponent were adopted, neither J.W. Marriott, Jr. nor David S.
Marriott could serve as Chairman. The Board does not believe that this outcome is in the best interests of the Company
or its stockholders.
The Board’s flexible leadership structure and the Company’s corporate governance practices promote effective
and independent Board oversight.
The Board values robust oversight and independent leadership on the Board and believes that its current leadership
structure accomplishes both. Our existing Board leadership structure, consisting of separate roles for the Chairman and
CEO, together with an independent Lead Director, allows the Chairman to focus on leading the Board in its oversight
and governance responsibilities and the CEO to focus on setting and executing the Company’s strategic plans and
initiatives and leading the operations of the Company. Our independent Lead Director and engaged independent
directors also provide strong independent oversight. The Board has maintained the position of independent Lead
Director since 2013. The Lead Director’s robust roles and responsibilities, as provided in our Governance Principles,
are broad and similar to those of an independent Chairman, including presiding at regular executive sessions of the
independent directors as well as meetings of the Board at which the Chairman is not present, coordinating the activities
of the independent directors, having the authority to convene meetings of the independent directors, and serving as a
liaison between the Chairman, the CEO and the independent directors. The Lead Director also reviews and approves
Board meeting agendas, coordinates the evaluation of Board and committee performance, coordinates the assessment
and evaluation of Board candidates, organizes and leads the Board’s annual evaluation of the CEO, makes
recommendations for changes to the Company’s governance practices, and is available for direct engagement with
stockholders. The Board also recently enhanced the Company’s Governance Principles to provide that the independent
directors of the Board will appoint the Lead Director annually.
The Company’s strong governance practices and policies reinforce the Board’s independent oversight and
accountability to stockholders. All of our directors are elected on an annual basis and by majority vote of the
stockholders in uncontested elections, and our Governance Principles require that two-thirds of the directors be
independent. Our Audit, Human Resources and Compensation, Nominating and Corporate Governance, and
Technology and Information Security Oversight committees are each composed solely of independent directors.
Consequently, the independent directors directly oversee such critical items as the Company’s financial statements,
senior executive compensation and succession management, the selection and evaluation of directors, the
development and implementation of our corporate governance programs, and technology, information security and
privacy. These independent committee structures, as well as the robust responsibilities of our independent Lead
Director and the active and engaged role of our other independent directors, contribute to overall strong independent
board leadership.
The Board believes maintaining a flexible leadership structure best serves the interests of the Company and is
consistent with best practices.
Marriott’s governing documents provide the Board flexibility to determine the appropriate leadership structure for the
Company, including whether the roles of Chairman and CEO should be separated or combined. When the Board
evaluates its leadership structure, as it did as part of its recent succession planning process, it considers, among other
factors, the Company’s strategic direction, the Board’s assessment of its leadership needs at the time, and the best
interests of Marriott’s stockholders. The stockholder proposal, on the other hand, mandates a one-size-fits-all form of
Board leadership, that, if implemented, would unnecessarily limit the Board’s options in selecting the leadership
structure most appropriate to ensure alignment with the Company’s evolving business and strategic needs and
selecting the most appropriate individual to lead the Board at any given time.
In reviewing this proposal, the Board took into consideration relevant benchmarking data and concluded that the
Company’s current board leadership structure matches or exceeds the practices at the majority of S&P 500 companies,
while the proponent’s rigid approach to Board leadership does not. The proposal’s supporting statement reports that, as
of 2020, only about one-third of S&P 500 companies had an independent chair. Even that confuses the existence of an
independent board chair with the adoption of a policy mandating, in all circumstances, the separation and
independence of a company’s board chair, which is what the proposal seeks. We believe that the number of S&P 500
companies that have adopted such an inflexible policy mandating the chair be independent, no matter the situation, is
miniscule.
* * *
In light of Marriott’s strong corporate governance practices and policies, and the need to retain the flexibility to maintain
a leadership structure that best serves the interests of the Company and the stockholders at a particular time, the Board
believes that adoption of the stockholder proposal is unnecessary and contrary to the best interests of the Company
and the stockholders and recommends a vote against the proposal.
For these reasons, the Board recommends a vote AGAINST the proposal.
CORPORATE GOVERNANCE
also reviews and approves, in consultation with both the Chairman and CEO, Board meeting agendas and schedules,
coordinates the evaluation of Board and committee performance, coordinates the assessment and evaluation of Board
candidates, organizes and leads the Board’s annual evaluation of the CEO, makes recommendations for changes to
the Company’s governance practices, and is available for direct engagement with major stockholders. The Lead
Director is a standing member of the Board’s Executive Committee. The Board believes that the role of the Lead
Director provides strong Board leadership and appropriate independent oversight. In February 2022, we announced
that Mr. Lawrence W. Kellner, who has served as our independent Lead Director since 2013, will retire from the Board
following the Annual Meeting and he is therefore not a nominee for re-election. The independent directors of the Board
have selected Mr. Frederick A. “Fritz” Henderson to serve as our next independent Lead Director, effective immediately
following the Annual Meeting. Mr. Henderson has served on the Board since 2013 and as our Audit Committee chair
since May 2014 and has extensive experience serving in a variety of other public company board leadership roles. As
described elsewhere in this proxy statement, Mr. Henderson will step down from his role as chair of our Audit
Committee after the Annual Meeting.
Independent Committee Oversight. Our Audit, Human Resources and Compensation, Nominating and Corporate
Governance, and Technology and Information Security Oversight committees are composed solely of independent
directors. Consequently, the independent directors directly oversee such critical items as the Company’s financial
statements, executive compensation, the selection and evaluation of directors, the development and implementation of
our corporate governance programs, and technology, information security and privacy.
Emeritus Designations
Chairman Emeritus. The Board has determined that J.W. Marriott, Jr., our current Executive Chairman and Chairman
of the Board, who is not a nominee for election, shall hold the title of Chairman Emeritus, effective as of the conclusion
of the Annual Meeting. As Chairman Emeritus, Mr. Marriott may attend certain Board meetings or functions, but he is
not considered a member of the Board or a “director” as that term is used in our Amended and Restated Bylaws. He
may not vote on any business coming before the Board, and he is not counted as a member of the Board for the
purpose of determining a quorum or for any other purpose. He does not receive a salary in his capacity as Chairman
Emeritus or compensation for attendance at Board meetings, although he may be reimbursed for reasonable expenses
incurred to attend such meetings or functions or other business expenses incurred in connection with his role as
Chairman Emeritus.
Directors Emeritus. William J. Shaw, a former director and Vice Chairman of the Company, holds the title of Director
Emeritus, but does not vote at or attend Board meetings and is not a nominee for election.
6 5 5
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Tenure/Age/Gender/Independence
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Gender M F F M M F M M F M M F
Independent ● ● ● ● ● ● ● ● ●
*As of the 2022 Annual Meeting.
Likewise, the Board believes that committee leadership and membership should reflect the diversity of the Board, and
when considering and reviewing committee assignments the Nominating and Corporate Governance Committee
discusses the extent to which the regularly-meeting committees include a mix of members that represent a diversity of
backgrounds and experience. Below is a snapshot of the gender and race/ethnicity make-up of the anticipated
committee leadership and composition following the Annual Meeting:
Human Resources
Audit
and Compensation
75% 75%
Committee Leadership
3 of our 4 Audit Committee 3 of our 4 Human Resources
members will be women and Compensation
and/or people of color Committee members will be
women and/or people of color
Inclusion and
Social Impact
80%
60%
75% 67%
Former Chairman, Mr. Lewis served as Chairman, CEO and President of Potbelly Corporation,
Chief Executive Officer a franchisor of quick service restaurants, from June 2008 until his
and President, Potbelly retirement in November 2017. From September 2005 to February 2008,
Corporation Mr. Lewis was President and CEO of Sears Holdings Corporation, a
nationwide retailer. Prior to being named CEO of Sears, Mr. Lewis was
President of Sears Holdings and CEO of KMart and Sears Retail following
Sears’ acquisition of Kmart Holding Corporation in March 2005. Prior to
that, Mr. Lewis had been President and CEO of KMart since October 2004.
Mr. Lewis was Chief Multi-Branding and Operating Officer of YUM! Brands,
Inc., a franchisor and licensor of quick service restaurants including KFC,
Long John Silvers, Pizza Hut, Taco Bell and A&W, from 2003 until October
2004, Chief Operating Officer of YUM! Brands from 2000 until 2003 and
Chief Operating Officer of Pizza Hut from 1996 to 1997. He has served on
the board of directors of Voya Financial, Inc. since 2020, The Chefs’
Warehouse, Inc. since 2021, and Caliber Collison since 2021. He
previously served on the board of directors of Red Robin Gourmet Burgers,
Inc. and The Walt Disney Company. Mr. Lewis previously served on the
Starwood board of directors from 2013 to September 2016.
Former Executive Vice Ms. McCarthy served as Executive Vice President at CVS Health
President, CVS Health Corporation, a pharmacy healthcare provider, from November 2018 to June
Corporation
2019. From November 2010 until its acquisition by CVS Health Corporation
in November 2018, Ms. McCarthy was Executive Vice President,
Operations and Technology at Aetna Inc., a healthcare benefits company.
Ms. McCarthy also served as Chief Information Officer and Vice President
and Head of Business Solutions Delivery at Aetna. Prior to joining Aetna in
2003, Ms. McCarthy was Senior Vice President of Information Technology
at Cigna Corp. and served as Chief Information Officer at Catholic Health
Initiatives and Franciscan Health System. She also worked in technology
consulting at Andersen Consulting (now Accenture) and was a consulting
partner at Ernst & Young. Ms. McCarthy also serves on the board of
directors of Alignment Healthcare, Inc., American Electric Power Company,
Inc., and First American Financial Corporation. She previously served on
the board of Brighthouse Financial, Inc. She has also served on various
advisory boards and councils, including the MIT Center for Information
Systems Research and the Board of Trustees of Providence College.
Principal, Muñoz Mr. Muñoz has been a principal in the Washington, D.C.-based investment
Investment Banking banking firm Muñoz Investment Banking Group, LLC since 2001. He has
Group, LLC
also been a partner in the Chicago-based law firm Tobin, Petkus & Muñoz
LLC (now Tobin & Muñoz) since 2002. He served as President and CEO of
Overseas Private Investment Corporation from 1997 to 2001. Mr. Muñoz
was Chief Financial Officer and Assistant Secretary of the U.S. Treasury
Department from 1993 until 1997. Mr. Muñoz is a certified public
accountant and an attorney. He serves on the board of directors of Altria
Group, Inc. and Laureate Education, Inc., and previously served on the
board of directors of Anixter International Inc. He also serves on the board
of trustees of the National Geographic Society.
President and Chief Mr. Rozanski has served as a director and the President and CEO of Booz
Executive Officer, Allen Hamilton, a global management consulting firm with experts in
Booz Allen Hamilton
analytics, digital solutions, engineering and cyber, since January 2015.
Inc.
Before assuming his current role, Mr. Rozanski served as Booz Allen’s
President and Chief Operating Officer from 2014 to 2015, Chief Operating
Officer from 2010 to 2014, Chief Strategy and Talent Officer in 2010, and
Chief Personnel Officer from 2002 through 2010. Mr. Rozanski joined Booz
Allen in 1992 and became an Executive Vice President in 2009. He serves
as chair of the board of the Children’s National Medical Center, as a
member of the board of directors of CARE USA, and as a member of the
United States Holocaust Memorial Museum’s Committee on Conscience.
Director Attendance
The Board met six times in fiscal year 2021. The Company encourages all directors to attend the annual meeting of
stockholders. All 13 directors then serving attended the Company’s 2021 annual meeting. During fiscal year 2021, no
incumbent director attended fewer than 75 percent of the total number of meetings of the Board and committees on
which such director served (other than Ms. Goren, who joined the Board on March 1, 2022).
Governance Principles
The Board has adopted Governance Principles that provide a framework for our governance processes. The portion of
our Governance Principles addressing director independence appears below, and the full text of the Governance
Principles can be found in the Investor Relations section of the Company’s website (Marriott.com/Investor) by clicking
on “Governance” and then “Documents & Charters.” You also may request a copy from the Company’s Secretary. Our
Governance Principles establish the limit on the number of public company board memberships for the Company’s
directors at two, including the Company’s Board, for directors who are chief executive officers of public companies, and
four for other directors. Additionally, our Governance Principles provide that members of our Audit Committee should
not serve on more than three audit committees of public companies, including the Company’s Audit Committee.
Director Independence
Our Governance Principles include the following standards for director independence:
5. Independence of Directors. At least two-thirds of the directors shall be independent, provided that having fewer
independent directors due to the departure, addition or change in independent status of one or more directors is
permissible temporarily, so long as the two-thirds requirement is again satisfied by the later of the next annual
meeting of stockholders or nine months. To be considered “independent” under the listing standards of The
Nasdaq Stock Market LLC (“Nasdaq”), the board must determine that a director has no relationship that would
interfere with the exercise of independent judgment in carrying out the responsibilities of a director of Marriott. The
board has established the guidelines set forth below to assist it in determining director independence. For the
purpose of this section 5, references to “Marriott” include any of Marriott’s consolidated subsidiaries.
a. A director is not independent if: (i) the director is, or has been within the preceding three years, employed by
Marriott; (ii) the director or a family member is a current partner of Marriott’s independent auditor, or was a
partner or employee of Marriott’s independent auditor and worked on the audit of Marriott at any time during
the preceding three years; (iii) a family member of the director is, or has been within the preceding three years,
employed by Marriott as an executive officer; (iv) the director or a family member is part of an interlocking
directorate in which the director or family member is employed as an executive officer of another company
where at any time during the preceding three years a present executive officer of Marriott at the same time
serves or served on the compensation committee of that other company; (v) the director has accepted, or a
family member has accepted, during any 12-month period within the preceding three years, more than
$120,000 in compensation from Marriott, other than compensation for board or board committee service,
compensation paid to a family member who is an employee (other than an executive officer) of Marriott,
benefits under a tax-qualified retirement plan, or non-discretionary compensation; (vi) the director or a family
member is an executive officer of a charitable organization to which Marriott made discretionary charitable
contributions in the current or any of the last three fiscal years that exceed five percent of that organization’s
consolidated gross revenues for that year, or $200,000, whichever is more; or (vii) the director or a family
member is a partner in, or a controlling stockholder or executive officer of, any organization to which Marriott
made, or from which Marriott received, payments for property or services in the current or any of the last three
fiscal years that exceed five percent of the recipient’s consolidated gross revenues for that year, or $200,000,
whichever is more, other than payments arising solely from investments in Marriott securities or payments
under non-discretionary charitable contribution matching programs.
b. The following commercial or charitable relationships are not relationships that would impair a Marriott
director’s independence: (i) service as an executive officer of another company which is indebted to Marriott,
or to which Marriott is indebted, where the total amount of either company’s indebtedness to the other is less
than two percent of the total consolidated assets of the other company; and (ii) service by a Marriott director or
a family member solely as a non-employee director or trustee of another entity or charitable organization that
does business with, or receives charitable contributions from, Marriott. The board annually reviews each
director’s independence and makes an affirmative determination regarding the independence of each director.
c. For relationships not covered by the guidelines in paragraph (b) above, the determination of whether the
relationship would interfere with the exercise of independent judgment in carrying out the responsibilities of a
director of Marriott, and therefore whether the director would be independent, shall be made by the directors
who satisfy the independence guidelines set forth in this section 5.
The Board undertook its annual review of director independence in February 2022. As provided in the Governance
Principles, the purpose of these reviews is to determine whether any relationships or transactions are inconsistent with
a determination that the director or nominee is independent. During these reviews, the Board recognized the former
employment of Mr. David Marriott, Mrs. Deborah Harrison’s role as Global Cultural Ambassador Emeritus, and the
family relationships of Mr. J.W. Marriott, Jr., Mr. David Marriott, and Mrs. Harrison with other Company executives
discussed elsewhere in this proxy statement.
Based on the standards set forth in the Governance Principles, the Board affirmatively determined that Ms. Goren,
Mr. Henderson, Mr. Hippeau, Mr. Kellner, Ms. Lee, Mr. Lewis, Ms. McCarthy, Mr. Muñoz, Mr. Rozanski and
Ambassador Schwab are each independent of the Company and its management. In making this determination, the
Board found that none of these directors had a relationship that would interfere with the exercise of independent
judgment in carrying out the responsibilities of a director of Marriott.
Mr. J.W. Marriott, Jr., Mr. Anthony Capuano, Mrs. Deborah Harrison, and Mr. David Marriott are considered not
independent as a result of their current or former employment with the Company and/or family relationships.
Audit Committee
Current Members: Frederick A. Henderson (Chair), Isabella D. Goren (since March 1, 2022), Aylwin B. Lewis, and
Margaret M. McCarthy.
• The Board has selected Ms. Goren to succeed Mr. Henderson as Chair of the Audit Committee, effective immediately
following the Annual Meeting when Mr. Henderson assumes the role of independent Lead Director. Mr. Henderson
will remain a member of the committee.
• The members of the Audit Committee are not employees of the Company. The Board has determined that the
members of the Audit Committee are independent as defined under our Governance Principles, the Nasdaq Listing
Standards and applicable SEC rules.
• The Audit Committee met six times in fiscal year 2021.
• There is unrestricted access between the Audit Committee and the independent auditor and internal auditors.
• The Board has determined that all members of the Audit Committee are financially literate, and that Mr. Henderson,
Ms. Goren, and Mr. Lewis are audit committee financial experts as defined in SEC rules.
Responsibilities include:
• Overseeing the accounting, reporting, and financial practices of the Company and its subsidiaries, including the
audits of the Company’s financial statements and the integrity of the Company’s financial statements.
• Overseeing the Company’s internal control environment and compliance with legal and regulatory requirements.
• Appointing, retaining, overseeing, and determining the compensation and services of the Company’s independent
auditor.
• Pre-approving the terms of all audit services, and any permissible non-audit services, to be provided by the
Company’s independent auditor.
• Overseeing the independent auditor’s qualifications and independence, including considering whether any
circumstance, including the performance of any permissible non-audit services, would impair the independence of the
Company’s independent registered public accounting firm.
• Overseeing the performance of the Company’s internal audit function and internal auditor.
• Reviewing the Company’s conflict of interest and related party transactions policies and procedures and reviewing
and considering for approval proposed related party transactions as provided for in those policies.
• Overseeing the Company’s efforts to promote the safety and security of guests and associates.
• Reviewing the Company’s policies governing the use of swaps and other derivative instruments, and reviewing and
approving matters related to financial derivatives, as necessary.
• Overseeing, encouraging, and evaluating efforts undertaken by the Company to communicate and enhance
stakeholder and public understanding of the Company’s commitment, efforts, and successes related to the objectives
outlined above.
Executive Committee
Current Members: J.W. Marriott, Jr. (Chair), Anthony G. Capuano, Lawrence W. Kellner, and Debra L. Lee.
• Mr. David Marriott will become the Chair of the Executive Committee upon becoming the Chairman of the Board and
Mr. Henderson will succeed Mr. Kellner as a member of the committee, effective immediately following the Annual
Meeting.
• The Executive Committee did not meet in fiscal year 2021.
Responsibilities include:
• Exercising the powers of the Board when the Board is not in session, subject to specific restrictions as to powers
retained by the full Board. Powers retained by the full Board include those relating to amendments to the Certificate
and Bylaws, mergers, consolidations, sales, or exchanges involving substantially all of the Company’s assets,
dissolution and, unless specifically delegated by the Board to the Executive Committee, those powers relating to
declarations of dividends and issuances of stock.
Board and its committees and to assess whether changes to the Board’s practices are appropriate.
The Board also reviews the CEO’s performance annually. The independent Lead Director organizes and leads the evaluation
in collaboration with the chair of the Human Resources and Compensation Committee and the Chairman of the Board.
Risk Oversight
The Board is responsible for overseeing the Company’s processes for assessing and managing risk. The Board
considers our risk profile when reviewing our annual business plan and incorporates risk assessment into its decisions
impacting the Company. In performing its oversight responsibilities, the Board receives an annual risk assessment
report from the Chief Financial Officer and Executive Vice President, Business Operations, and discusses the most
significant risks facing the Company.
As part of its risk oversight, the Board reviews the Company’s information security risk profile, including cybersecurity
and data privacy, and is informed on the specifics of the information security program on a regular basis, including
through relevant committee reports. These updates provide the Board with an overview of the Company’s overall
information security strategy along with key cybersecurity and privacy initiatives and incidents, cybersecurity risks and
threats, and changes taken by management to mitigate the Company’s risk profile.
The Board has delegated certain risk oversight functions to the Audit Committee and, with respect to information security
risk, to the Technology and Information Security Oversight Committee. In accordance with its charter, the Audit Committee
periodically reviews and discusses the Company’s business and financial risk management and risk assessment policies
and procedures with senior management, the Company’s independent auditor, and the Chief Audit Executive. The Audit
Committee incorporates its risk oversight function into its regular reports to the Board. In accordance with the Technology
and Information Oversight Committee charter, that committee oversees and reviews with management the Company’s
information security and privacy risk exposures and the steps taken to monitor and mitigate those exposures. Our Chief
Information Security Officer and our Privacy Officer regularly report to the Technology and Information Security Oversight
Committee on topics related to information security and privacy risks and readiness. Cybersecurity and privacy risks are
also discussed with the full Board, including in annual education sessions, as part of regular legal updates, and as part of
the Board’s oversight of enterprise risk management.
In addition, the Human Resources and Compensation Committee reviewed a risk assessment to determine whether the
amount and components of compensation for the Company’s associates and the design of compensation programs
might create incentives for excessive risk-taking by the Company’s associates. As explained in the CD&A below, the
Human Resources and Compensation Committee believes that our compensation programs encourage associates,
including our executives, to remain focused on a balance of the short- and long-term operational and financial goals of
the Company, and thereby reduce the potential for actions that involve an excessive level of risk.
(1) Principally fees for the audit of the Company’s annual financial statements, the audit of the effectiveness of the Company’s internal control
over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, the auditors’ review of the Company’s quarterly
financial statements, and services provided in connection with the Company’s regulatory filings.
(2) Fees for statutory audits of our international subsidiaries.
(3) Principally audits as required under our agreements with our hotel owners.
(4) Principally tax compliance services related to our international entities.
(5) Principally fees for assessment of internal audit activities.
Overview
In 2021, Marriott’s leadership and the Committee navigated unprecedented challenges and changes that defined the
year, including the ongoing effects of the COVID-19 pandemic on our business and industry, the unexpected passing of
our long-time President and CEO, the implementation of the Company’s succession plans, pressures from the migration
of critical talent to industries less impacted by the pandemic, and the consolidation of Marriott’s continent lodging
business structure.
Throughout these challenges and changes, the Committee maintained the Company’s compensation philosophy and
principles, which emphasize the preservation and creation of long-term value for stockholders. Key compensation
decisions for 2021 are highlighted below and discussed in more detail in the sections that follow. In order to provide
transparency for stockholders, decisions made in early 2021 were also disclosed in our 2021 proxy filing in the section
“2021 Incentive Plan Decisions.”
• 2021 Annual Cash Incentive Program: Performance factors were redesigned to include a focus on 2021 Adjusted
EBITDA as the most critical financial metric for the Company’s business recovery (weighted 60%) and a unifying
component (weighted 40%) aligned with Marriott’s “Here to Stay” strategic recovery theme across three critical
Company stakeholders: Associates, Customers and Owners/Franchisees, to be evaluated on a quantitative and
qualitative basis. See “Annual Incentives” for additional details.
• 2021-2023 PSUs: Performance factors were redesigned to focus on 2023 Adjusted EBITDA with a wider target range
in acknowledgement of the difficulty of predicting the COVID-19 pandemic’s impact on how and when our customers
will resume their business and travel needs. For the 2021-2023 PSUs, the Committee also implemented a three-year,
relative TSR modifier of up to +/-20% to further align awards with stockholder value.
• 2021 Target Compensation Opportunity: In keeping with historical best practice, determinations of 2021 NEO
compensation targets were made at the Committee’s February 2021 meeting based on consideration of external
market data, internal equity, tenure and individual performance. The Committee’s determinations took into
consideration the changes to our continent lodging business structure, which was consolidated under two Group
Presidents, William Brown and Craig Smith. Similar to prior years, the external market data for 2021 includes several
broad, revenue-based surveys as well as a custom survey of comparator group companies specifically selected by
the Committee. See “Market Data” for additional details.
• Succession-Related Actions: Mr. Sorenson unexpectedly passed away on February 15, 2021, shortly after the
Committee’s February 2021 meeting, requiring the Board’s implementation of the Company’s succession plans. As a
result, the Committee set the compensation for the new CEO and the new President, giving consideration to external
market data. The Committee also determined to provide a payment to Mr. Sorenson’s estate in lieu of the equity
awards that had been previously approved and communicated to Mr. Sorenson.
• Supplemental Equity Awards: Supplemental equity awards are infrequent by design. The Committee exercises
restraint when determining what warrants a supplemental award and carefully considers the specific circumstances
and rationale before making such awards. In February 2021, in order to recognize the significant effort and
accomplishments during 2020 and to motivate the management team to drive future stockholder value through
achievement of Marriott’s business recovery strategy, the Committee granted a supplemental, Stockholder Value
PSU award to certain executives, including each of our NEOs other than Mr. Sorenson. These awards are 100%
performance-contingent and are only paid, if at all, based on three-year, relative TSR. In August 2021, the Committee
awarded Ms. Oberg a grant of restricted stock units in recognition of her significant value to the Company as well as
the Company’s need to retain critical talent during a transformative and unprecedented year. The RSUs vest in two
equal installments on August 15, 2023 and August 15, 2025, subject to Ms. Oberg’s continued employment through
such dates, and are not eligible for retirement-related vesting.
Leadership Transitions
Following Mr. Sorenson’s passing, the Board elected Anthony Capuano to serve as CEO of the Company and as a
member of the Board. Mr. Capuano had previously served as Group President, Global Development, Design and
Operations Services. The Committee recommended, and the Board approved, Mr. Capuano’s 2021 annual base salary
as CEO at $1.3 million, set his target award under the 2021 Annual Incentive program at 200% of base salary and
approved 2021 annual stock awards with an aggregate grant date value of $9.0 million. At the same time, the Board
also appointed Stephanie Linnartz to serve as President of the Company with responsibility for developing and
executing all aspects of the Company’s global consumer strategy as well as the intersection of technology and
hospitality. She also has responsibility for the global development, global design and operations services
disciplines. Ms. Linnartz had previously served as Group President, Consumer Operations, Technology and Emerging
Businesses. For her service as President, the Committee recommended, and the Board approved, her 2021 annual
base salary at $1.0 million, set her target award under the 2021 Annual Incentive program at 100% of base salary and
approved 2021 annual stock awards with an aggregate grant date value of $6.5 million. For the CEO and the President,
the Committee maintained a mix (based on the target values) of 50% PSUs, 25% SARs and 25% RSUs. In addition,
after considering Mr. Capuano’s and Ms. Linnartz’s strategic impact in driving future stockholder value through
achievement of Marriott’s business recovery strategy, and after evaluating market compensation data, the Committee
recommended, and the Board approved, Stockholder Value PSUs with a grant date value of $3.5 million for
Mr. Capuano and of $2.0 million for Ms. Linnartz. As described below, these Stockholder Value PSUs are intended to
be one-time, performance-contingent awards, and not part of the executives’ annual compensation in future years.
Each of our other NEOs also took on new or expanded responsibilities over the course of 2021. In early 2021, the
Company consolidated the continent lodging business structure under two leaders, William Brown, as Group President,
United States and Canada, and Craig Smith, as Group President, International. In addition, in recognition of Kathleen
Oberg’s critical responsibilities, she was appointed Chair of our Global Operating Committee, which consists of senior
Company leaders who support our business operating platform and plays a central role in assessing competitive trends
and determining the Company’s long-range plan and actions.
Annual Incentives
To promote growth and profitability, the Company’s annual cash incentive program is based on actual performance
measured against pre-established financial and business operational targets. The annual cash incentive design
rewards executives for achieving annual Company performance objectives that support long-term financial and
operational success.
As reflected in the following table, target awards under the annual cash incentive program were 200% of salary for
Mr. Capuano, 100% for Ms. Linnartz and Ms. Oberg, and 75% for Mr. Smith and Mr. Brown. In setting the target
awards, the Committee considered the new roles and expanded responsibilities of each NEO, reviewed market data for
each position and determined that the incentive amounts payable upon achievement of target performance levels would
result in total cash compensation (base salary plus annual incentive) that would be at or near the 50th percentile of a
broad-based and select group of companies described in the discussion of Market Data below.
Target Award as a
Name % of Salary
Anthony G. Capuano 200
Stephanie C. Linnartz 100
Kathleen K. Oberg 100
William P. Brown 75
Craig S. Smith 75
The annual cash incentive program performance factors are intended to establish high standards consistent with the
Company’s quality goals, which are designed to be achievable, but not certain to be met. The Company believes that
these factors are critical to achieving success within the hospitality and service industry.
Awards under the 2021 Annual Incentive Plan are subject to achieving a threshold Adjusted EBITDA level and no
awards are earned unless the Company’s Adjusted EBITDA for the year equals or exceeds $1.1 billion. Once this
threshold is met, each participating NEO’s award is calculated based on the achievement of Company, and in certain
cases, segment-specific, Adjusted EBITDA (weighted 60%) and both a quantitative and qualitative evaluation of
strategic goals aligned with Marriott’s “Here to Stay” strategic theme across three critical Company stakeholders:
Associates, Customers and Owners/Franchisees (weighted 40%). These financial, operational and strategic goals are
described more fully below.
The Adjusted EBITDA target for Mr. Capuano, Ms. Linnartz and Ms. Oberg is based entirely on Company-wide
performance. For Mr. Smith and Mr. Brown, 30% of their Annual Incentive Plan target for this financial component is
based on Company-wide performance, as set forth in the table above, and the remaining 30% is calculated based on
United States and Canada Adjusted EBITDA, defined below (for Mr. Brown), and on International Adjusted EBITDA,
defined below (for Mr. Smith), in each case as compared to preestablished targets. These targets were set at levels that
would require year-over-year growth for these segments to achieve a target payout for this metric and would require
significant effort from each NEO helping to drive the success of these business segments.
“Here to Stay” is Marriott’s unifying strategic theme for business recovery and is intended to measure progress against
key Company-wide quantitative and qualitative business objectives for all participating NEOs. All of the goals in this
component emphasize near-term and long-term actions critical to our continued success. The ongoing pandemic made
it impossible to develop robust, quantitative payout curves for certain heavily impacted goals like guest satisfaction
(which is based on year-over-year improvement) or room growth. In aggregate, since the “Here to Stay” objectives are
critical to the Company’s success, the Committee determined to weight them at 40% of the overall annual incentive
plan.
• associate engagement survey • guest satisfaction survey results • development of renovation brand
results standards considering the impact
• new credit card accounts
of the global pandemic
• diversity and inclusion goals
• growth of active Marriott Bonvoy
• achievement of room growth
• safety and cleanliness protocols members
targets
implemented as a result of the
• rate of direct channel bookings
global pandemic
In determining the “Here to Stay” component payout level following year-end, the Committee took a holistic view of the
Company’s achievement of the business objectives described above, as well as other accomplishments in these key
areas as described in the table below, with no specific weightings applied to any objective or accomplishments.
2021 Accomplishments
• Navigated the uneven impact of the Covid-19 pandemic as new variants emerged during the year
• Associate engagement survey results exceeded the “Best Employer” benchmark
• Met or exceeded diversity and inclusion goals
• Signed approximately 92,000 rooms, of which more than 50,000 were in international markets and more than 40
percent were in the upper upscale and luxury tiers
• Managed complexities impacting our associates and guests introduced by vaccine implementation
• Addressed staffing challenges as the now long-term global pandemic has had a significant impact on the entire
hospitality industry and beyond
• Adjusted to new pandemic-related guest demands and implemented new programs to address these demands
• Exceeded goals for combined hotel revenue and co-brand credit card new accounts and spend
• Exceeded goals for Marriott Bonvoy loyalty member engagement and enrollments
• Improved Marriott Bonvoy elite member appreciation scores
• Achieved certain cyber-security and technology-related goals
The table below outlines the performance achieved and the aggregate actual payout approved by the Committee as a
percentage of target under the 2021 Annual Incentive Plan.
aggregate target award values for the NEOs as a group would result in total direct compensation (base salary plus target
annual incentive plus target equity awards) that would be at or near the 50th percentile of a broad-based and select
group of companies described in the discussion of Market Data below, with variation above or below the 50th percentile
by individual to reflect strategic impact, internal pay equity, tenure, and individual performance. The target values of the
awards granted to the NEOs listed below are set forth in the following table (amounts shown in the Summary
Compensation Table reflect actual grant date fair value as determined in accordance with accounting guidance):
The above listed NEOs’ annual stock awards for 2021 were granted in a mix (based on the target values) of 50% PSUs,
25% SARs and 25% RSUs for each of our CEO and our President and 40% PSUs, 30% SARs and 30% RSUs for the
other NEOs, which is unchanged from the mix for 2020 stock awards for these positions. The Committee determined
that the 2021-2023 PSUs will be earned after three years contingent on achievement of 2023 Adjusted EBITDA
performance targets to drive growth and Company profitability. Zero PSUs will be earned if 2023 Adjusted EBITDA falls
below a specified level, with the potential for target or above target payouts if 2023 Adjusted EBITDA equals or exceeds
the target performance level. To ensure that any above target payout is also well-aligned with results for stockholders,
the 2021-2023 PSUs are subject to a relative TSR modifier. If 2023 Adjusted EBITDA equals or exceeds the target
performance level, then the resulting number of shares ultimately earned will be modified up or down by up to 20%
depending on the Company’s relative three-year TSR performance, measured against a performance peer group
consisting of companies competing in the travel and hospitality industries. See “Market Data” for additional details about
the performance peer group. In selecting these two PSU performance measures, the Committee considered alignment
with the Company’s business strategy, creation of long-term value for stockholders, and ensuring appropriate balance
with 2021 Annual Incentive measures. The Committee considers the 2023 Adjusted EBITDA measure for PSUs to be
different from the 2021 Adjusted EBITDA measure used for the Annual Incentive Plan. These measures cover different
performance time periods, but they also support distinct strategic objectives. The PSU measure aligns with Marriott’s
long-term business recovery as a leader in the hospitality industry, while the Annual Incentive measure focuses on
Marriott’s near-term profitability.
Executives derive value from their SARs based on the appreciation in the value of the underlying shares of Company
stock. For purposes of measuring this appreciation, the Company sets the exercise or base price as the average of the
high and low quoted prices of the Company stock on the date the awards are granted. This average price valuation is
common practice and offers no inherent pricing advantage to the executive or the Company.
Other Compensation
Perquisites
The Company offers very limited perquisites to its executives. The Company offers, consistent with practices within the
hospitality industry, complimentary rooms, food and beverages at Company-owned, operated, or franchised hotels and
the use of hotel-related services such as Marriott-managed golf and spa facilities while on personal travel. The
Company offers these benefits to encourage executive officers to visit and personally evaluate our properties. In
addition, to enhance their efficiency and maximize the time that they can devote to Company business, NEOs are
permitted to use the Company’s aircraft for personal travel in limited circumstances. The value of these benefits is
included in the executives’ wages for tax purposes, and the Company does not provide tax gross-ups to the executives
with respect to these benefits. None of the NEOs used the Company’s aircraft for personal travel during 2021.
Other Benefits
Executives may participate in the same Company-wide benefit programs offered to all eligible U.S. associates. Some
programs are paid for solely by the enrollees (including executives), such as 401(k) plan elective deferrals, vision
coverage, long-term and short-term disability, group life and accidental death and dismemberment insurance, and
health care and dependent care spending accounts. Other benefit programs are paid for or subsidized by the Company
for all enrollees such as the 401(k) Company match, group medical and dental coverage, $50,000 Company-paid life
insurance, business travel accident insurance and tuition reimbursement.
Change in Control
The Company provides limited, “double trigger” change in control benefits under the Stock Plan and the EDC upon an
NEO’s qualifying termination of employment in connection with a change in control of the Company, as described below
in the “Potential Payments Upon Termination or Change in Control” section. The Committee believes that, with these
carefully structured benefits, the NEOs are better able to perform their duties with respect to any potential proposed
corporate transaction without the influence of or distraction by concerns about their employment or financial status. In
addition, the Committee believes that stockholder interests are protected and enhanced by providing greater certainty
regarding executive pay obligations in the context of planning and negotiating any potential corporate transactions.
The Company does not provide tax gross-ups on these benefits and limits the Stock Plan benefits to avoid adverse tax
consequences to the Company. Specifically, the Stock Plan benefits are subject to a cut-back, so that the benefit will
not be provided to the extent it would result in the loss of a tax deduction by the Company or imposition of excise taxes
under the “golden parachute” excess parachute payment provisions of the Internal Revenue Code. The discussion of
Potential Payments Upon Termination or Change in Control below includes a table that reflects the year-end intrinsic
value of unvested stock awards and cash incentive payments that each NEO employed as of year-end would receive if
subject to an involuntary termination of employment in connection with a change in control.
L. Brown
C. Smith
Holdings as of 3/1/2022 as a multiple of the salary grade midpoint using a 3-year trailing average stock price of $129.00.
We have adopted a number of related policies that further reflect alignment with long-term stockholder value.
• NEOs and directors are required to retain 50% of the net after-tax shares received under any equity awards until they
satisfy the required stock ownership levels.
• The Company prohibits all associates, including the NEOs, and directors from engaging in short sale transactions
related to Marriott stock.
• PSUs and RSUs do not provide for accelerated distribution of shares upon retirement to ensure that executives have
a continuing stake in the Company’s performance beyond the end of their employment, thereby strengthening their
interest in the Company’s long-term success.
Hedging Prohibited
The Company prohibits all associates, including the NEOs, and directors from buying, selling, writing or otherwise
entering into any hedging or derivative transaction related to Marriott stock or securities, including options, warrants,
puts, calls, and similar rights that have an exercise or conversion privilege that is related to the price of a Marriott
security, or similar instruments with a value derived from the value of a Marriott security, except that they may hold SARs
or other derivative securities awarded to them as compensation under the Company’s equity compensation plans.
Clawbacks
In addition to the compensation clawback provisions of the Sarbanes-Oxley Act of 2002 that apply to the Chief
Executive Officer and Chief Financial Officer, the Company maintains a separate clawback provision that applies to all
equity awards issued to the NEOs. Under the Stock Plan and the NEOs’ award agreements, the Company has the
authority to limit or eliminate the ability of any executive to exercise options and SARs or to receive a distribution of
Company stock under PSUs, RSUs or other stock awards if the executive’s employment is terminated for serious
misconduct or the executive engages in criminal or tortious conduct or other behavior that is actually or potentially
injurious to the Company or competes with the Company.
The Committee has discretion to require reimbursement of any annual cash incentive payment awarded to an NEO if
the amount of such incentive payment is calculated based upon the achievement of certain financial results that are
required to be restated, provided that such discretion may only be exercised if the NEO has engaged in intentional
misconduct that caused or partially caused the need for the restatement. The amount of the reimbursement would be
the difference in the amount determined before and after the restatement. The Company intends to fully comply with the
requirements of Dodd-Frank Section 954 upon the adoption of final rules implementing this provision.
Market Data
The external market data utilized by the Company for 2021 includes several broad, revenue-based surveys as well as a
custom survey of companies specifically selected by the Committee. The Committee believes, based on the advice of the
Compensation Consultant, that the similarly-sized companies participating in the revenue-based surveys and the companies
selected for the custom survey represent the broad pool of executive talent both within and outside of the lodging industry for
which the Company competes. To avoid over-emphasizing the results of one or more surveys, the Company considers the
results of the revenue-based surveys as well as those of the custom survey, in terms of total pay and each component of pay.
The Committee also considers compensation practices at select lodging companies. This process for identifying relevant
market data is used consistently for all senior executives of the Company, including the NEOs.
Revenue-Based Survey
In general, the revenue-based surveys used as a market reference for NEO pay include companies with annual revenue
similar to that of the Company. For 2021, the surveys were the Executive & Senior Management Total Compensation Survey
(provided by the Compensation Consultant), the Radford Global Database, the WTW CDB Executive Compensation
Database, the Equilar Top 25 Survey, and the Fred Cook Survey of Long-Term Incentives. The Committee did not consider the
individual companies in the revenue-based surveys when making compensation decisions.
Custom Survey
There are no other U.S. publicly-traded lodging companies similar to our size. Therefore, in consultation with the
Compensation Consultant, the Committee selected appropriate comparator group companies from a broad universe of
companies that compete with Marriott for executive talent, are of similar size in annual revenue or have a similar focus
on marketing, e-commerce, consumers and brand image even if they do not compete directly in the lodging business.
The Committee annually reviews the comparator group for potential changes (e.g., due to mergers and acquisition
activity or changes in company size and business mix) but does not generally anticipate making significant changes
every year, to allow for consistency and comparability of market data from year-to-year. The comparator group
companies reviewed for 2021 are shown below along with select financial and non-financial metrics the Committee
considered and Marriott’s percentile ranking on each of these metrics. During 2021, the Committee determined to
remove Macy’s Inc. and Las Vegas Sands Corporation from the peer group and to add Caesars Entertainment Inc. to
the peer group because of its global operations footprint and because it competes in the hospitality industry. The
financial information reflects fiscal year-end data available as of March 1, 2022.
Number of
2021 Revenues(1) Market Capitalization(1) Enterprise Value(1) Employees
Lodging Companies
Hilton Worldwide Holdings Inc. $ 5,788 $ 43,535 $ 51,886 142,000
Hyatt Hotels Corporation 3,028 10,547 13,725 44,000
Wyndham Hotels & Resorts, Inc. 1,565 8,248 10,175 8,000
include associates employed by our hotel owners but whose employment is managed by Marriott (which is common outside the U.S.) or
hotel personnel employed by our franchisees or other management companies hired by our franchisees.
Risk Considerations
The Committee considered risk in determining 2021 NEO compensation and believes that the following aspects of NEO
pay discourage unreasonable or excessive risk-taking by executives:
• Base salary levels are commensurate with the executives’ responsibilities (and the external market) so that the
executives are not motivated to take excessive risks to achieve an appropriate level of financial security.
• Annual cash incentive program includes a diverse mix of Company performance metrics, including metrics based on
diversity, inclusion and other social initiatives.
• Annual cash incentive opportunities are capped so that no payout exceeds a specified percentage of salary, thereby
moderating the impact of short-term incentives.
• The Committee and the Board have discretion to decrease annual cash incentive payouts, for example, if they
believe the operational or financial results giving rise to those payouts are unsustainable or if they believe the payout
would unfairly reward the NEOs for events that are unrelated to their performance.
• The mix of short-term and long-term incentives is balanced so that at least 50% of total pay opportunity is in the form
of long-term equity awards.
• PSUs are subject to performance measures that reflect the strength of our brands and drive long-term financial and
stock performance.
• Annual stock awards are generally granted as a mix of PSUs, RSUs, and SARs that generally vest over or after at
least three years, which together encourage the NEOs to focus on sustained stock price performance.
• The Committee reviews and compares total compensation and each element of compensation to external market
data to confirm that compensation is within an acceptable range relative to the external market, while also taking into
consideration the Company’s relative performance.
• The NEOs are subject to compensation clawback provisions.
• Stock ownership requirements align the long-term interests of NEOs with the interests of stockholders.
• All associates, including the NEOs, and directors are prohibited from engaging in hedging or derivative transactions
related to Marriott stock or securities.
• The NEOs are prohibited from holding Company stock in margin accounts or pledging such stock as collateral for
loans.
Change in
Pension Value
and
Nonqualified
Non-Equity Deferred
Stock SAR Incentive Plan Compensation All Other
Name and Fiscal Salary Bonus Awards Awards Compensation Earnings Compensation Total
Principal Position Year ($)(1) ($) ($)(2)(3) ($)(2) ($)(4) ($)(5) ($)(6) ($)
Anthony G. Capuano 2021 1,234,615 0 10,171,778 2,250,072 4,691,538 13,556 30,323 18,391,882
Chief Executive Officer 2020 597,356 0 2,840,318 810,053 0 19,585 9,150 4,276,462
2019 850,000 0 2,905,435 867,306 1,198,416 6,569 52,113 5,879,839
Stephanie C. Linnartz 2021 980,768 0 6,883,653 1,514,605 1,863,460 7,043 43,175 11,292,704
President 2020 592,308 0 2,127,478 960,007 0 9,505 9,263 3,698,561
2019 850,000 0 2,143,134 1,027,896 774,874 2,616 75,390 4,873,910
Kathleen K. Oberg 2021 888,462 0 9,309,699 1,050,068 1,688,077 25,667 0 12,961,973
Chief Financial Officer and
2020 558,461 0 1,966,863 930,048 0 37,121 24,155 3,516,648
Executive Vice President,
Business Operations 2019 800,000 0 1,993,105 906,186 805,254 11,331 76,470 4,592,346
William P. Brown 2021 748,826 0 3,057,817 675,022 1,067,078 24,996 9,425 5,583,164
Group President,
United States and
Canada
Craig S. Smith 2021 747,732 0 3,057,817 675,022 943,544 25,959 9,425 5,459,499
Group President,
International
Arne M. Sorenson 2021 321,058 0 0 0 387,693 59,975 11,509,425 12,278,151
Former President and 2020 414,615 0 6,101,867 2,250,059 0 133,471 26,344 8,926,356
Chief Executive Officer
2019 1,300,000 0 6,182,815 2,192,342 3,519,765 44,004 196,961 13,435,887
(1) This column reports all amounts earned as salary during the fiscal year, whether paid or deferred under the Company’s qualified 401(k)
plan and the EDC. For Mr. Sorenson, the figure also includes payout of his accrued vacation days, valued at $105,673.
(2) The value reported for Stock Awards and SAR Awards is the aggregate grant date fair value of the awards granted in the fiscal year as
determined in accordance with accounting guidance for share-based payments, and therefore differs from the target award values
approved by the Committee. The assumptions for making the valuation determinations for SAR Awards are set forth in the footnotes to the
Grants of Plan-Based Awards for Fiscal Year 2021 table, below.
(3) Approximately 79% of the 2021 value reported in this column for Mr. Capuano, 76% for Ms. Linnartz, 37% for Ms. Oberg, and 79% for
Messrs. Brown and Smith represent the value of PSUs at the grant date based upon target performance which is the most probable
outcome as of the grant date with respect to performance. Assuming that the highest level of performance conditions is achieved for all
PSUs, the grant date fair values of the PSUs included in the 2021 value for Mr. Capuano, Ms. Linnartz, Ms. Oberg, and Messrs. Brown and
Smith would be $13,373,172, $8,858,868, $5,541,187, $3,886,889 and $3,886,889, respectively. 53% of the 2021 value reported in this
column for Ms. Oberg represents the one-time RSU award described above under the “Supplemental Stock Awards” heading.
(4) This column reports all amounts earned under the Company’s annual cash incentive program during the fiscal year, which were paid in February
of the following fiscal year (except for fiscal year 2020 where there was no annual cash incentive paid) unless deferred under the EDC.
(5) The values reported equal the earnings credited to accounts in the EDC to the extent they were credited at a rate of interest exceeding
120% of the applicable federal long-term rate, as discussed below under “Nonqualified Deferred Compensation for Fiscal Year 2021.”
(6) All Other Compensation for fiscal year 2021 consists of Company contributions to the Company’s qualified 401(k) plan of $9,425 for each
NEO other than Mr. Capuano and Ms. Oberg, and $9,225 for Mr. Capuano and $0 for Ms. Oberg; and perquisites and personal benefits,
including spousal accompaniment while on business travel and complimentary rooms, food and beverages at Company-owned, operated
or franchised hotels and the use of other hotel-related services such as golf and spa facilities while on personal travel. The values in this
column do not include perquisites and personal benefits that were less than $10,000 in aggregate for any NEO for the fiscal year. For
Mr. Sorenson, the figure includes a one-time cash payment in lieu of his 2021 stock award, totaling $11,500,000.
All
Other
Stock Grant
Awards All Other Date
Estimated Possible Estimated Possible (Number SAR Fair
Payouts Under Payouts Under of Awards Value
Non-Equity Incentive Equity Incentive Plan Shares (Number Exercise of
Plan Awards(1) Awards(2) of Stock of or Base Stock/
or Securities Price of SAR
Grant Approval Threshold Target Maximum Threshold Target Maximum Units) Underlying SARs Awards
Name Date Date ($) ($) ($) (#) (#) (#) (#) SARs) (#) ($/sh) ($)(3)
Mr. Capuano
Cash Incentive 390,000 2,600,000 5,200,000 — — — — — — —
PSU 2/22/21 2/20/21 — — — 7,920 31,679 57,022 — — — 4,483,212
SV PSU 2/22/21 2/20/21 — — — 12,320 24,640 36,960 — — — 3,535,594
RSU 2/22/21 2/20/21 — — — — — — 15,840 — — 2,152,973
SAR 2/22/21 2/20/21 — — — — — — — 66,000 142.05 2,250,072
Ms. Linnartz
Cash Incentive 150,000 1,000,000 2,000,000 — — — — — — —
PSU 2/22/21 2/20/21 — — — 5,720 22,880 41,184 — — — 3,237,978
SV PSU 2/22/21 2/20/21 7,040 14,080 21,120 — 2,020,339
RSU 2/22/21 2/20/21 — — — — — — 11,442 — — 1,625,336
SAR 2/22/21 2/20/21 — — — — — — — 44,427 142.05 1,514,605
Ms. Oberg
Cash Incentive 135,000 900,000 1,800,000 — — — — — — —
PSU 2/22/21 2/20/21 — — — 2,464 9,856 17,741 — — — 1,394,821
SV PSU 2/22/21 2/20/21 7,040 14,080 21,120 — 2,020,339
RSU 2/22/21 2/20/21 — — — — — — 7,392 — — 1,004,721
SAR 2/22/21 2/20/21 — — — — — — — 30,801 142.05 1,050,068
RSU 8/31/21 8/31/21 — — — — — — 37,120 — — 4,889,818
Mr. Brown
Cash Incentive 84,375 562,500 1,125,000 — — — — — — —
PSU 2/22/21 2/10/21 — — — 1,584 6,336 11,405 — — — 896,671
SV PSU 2/22/21 2/10/21 5,280 10,560 15,840 — 1,515,254
RSU 2/22/21 2/10/21 — — — — — — 4,752 — — 645,892
SAR 2/22/21 2/10/21 — — — — — — — 19,800 142.05 675,022
Mr. Smith
Cash Incentive 84,375 562,500 1,125,000 — — — — — — —
PSU 2/22/21 2/10/21 — — — 1,584 6,336 11,405 — — — 896,671
SV PSU 2/22/21 2/10/21 5,280 10,560 15,840 — 1,515,254
RSU 2/22/21 2/10/21 — — — — — — 4,752 — — 645,892
SAR 2/22/21 2/10/21 — — — — — — — 19,800 142.05 675,022
Mr. Sorenson
Cash Incentive 420,000 2,800,000 5,600,000 — — — — — — —
(1) The amounts reported in these columns include potential payouts corresponding to achievement of the threshold, target, and maximum
performance objectives under the Company’s annual cash incentive program.
(2) These columns report the number of shares issuable under PSUs granted to the NEOs for the 2021-2023 performance period. Annual
PSUs reported in these columns are conditioned on the achievement of 2023 Adjusted EBITDA, with a potential modification of -20% to
+20% based on Relative TSR Performance over a three-year performance period from 2021-2023, with threshold representing 25% of the
target number of shares and maximum representing 150% of target. “SV PSUs” are the one-time Stockholder Value PSUs discussed
above, which vest based on Relative TSR Performance over a three-year performance period from 2021-2023.
(3) The value reported for Stock Awards and SAR Awards is the aggregate grant date fair value of the awards granted in 2021 as determined
in accordance with accounting standards for share-based payments, although the Company recognizes the value of the awards for
financial reporting purposes over the service period of the awards. We used the following assumptions to determine the fair value of the
SAR Awards granted in 2021: expected volatility =27.34%; dividend yield = 1.16%; risk-free rate = 0.81–1.37%; and expected term = 6–10
years. In making these assumptions, we base expected volatility on the historical movement of the Company’s stock price. We base risk-
free rates on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, which we convert to a continuously
compounded rate. The dividend yield assumption takes into consideration both historical levels and expectations of future dividend payout.
The weighted average expected terms for SAR Awards are an output of our valuation model which utilizes historical data in estimating the
time period that the SARs are expected to remain unexercised. We calculate the expected terms for SARs for separate groups of
retirement eligible and non-retirement eligible employees. Our valuation model also uses historical data to estimate exercise behaviors,
which include determining the likelihood that employees will exercise their SARs before expiration at a certain multiple of stock price to
exercise price. For PSUs, the value reported is based on the grant date stock price of the target number of shares subject to the award.
The Grants of Plan-Based Awards table reports the dollar value of cash-based annual incentive program awards (at
their threshold, target and maximum achievement levels) and the number and grant date fair value of PSUs, RSUs and
SARs granted under the Stock Plan to each NEO (other than Mr. Sorenson) during the 2021 fiscal year. With regard to
cash incentives, this table reports the range of potential amounts that could have been earned by the executive under
the annual cash incentive program for 2021, whereas the Non-Equity Incentive Plan Compensation column in the
Summary Compensation Table reports the actual value approved by the Human Resources and Compensation
Committee for 2021. With regard to equity grants, the value received by executives upon the vesting of PSUs and
RSUs and upon the exercise of SARs may differ from the reported grant date values, including the potential for zero
value for PSUs and SARs, depending on the degree to which pre-established performance goals are met and on the
Company’s future stock performance.
(4) These PSUs are equity incentive plan awards that have not been earned and will vest on February 15, 2023, pending performance results
and continued service.
(5) These PSUs are equity incentive plan awards that have not been earned and will vest on February 15, 2024, pending performance results
and continued service.
(6) These RSUs vested or are scheduled to vest as follows: 9,043 on February 15, 2022; 6,478 on February 15, 2023; 3,814 on February 15,
2024.
(7) These RSUs vested or are scheduled to vest as follows: 7,529 on February 15, 2022; 5,044 on February 15, 2023; 18,560 on August 15,
2023; 2,464 on February 15, 2024; 18,560 on August 15, 2025.
(8) These RSUs vested or are scheduled to vest as follows: 4,369 on February 15, 2022; 3,166 on February 15, 2023; 1,584 on February 15,
2024.
(9) These RSUs vested or are scheduled to vest as follows: 4,689 on February 15, 2022; 3,166 on February 15, 2023; 1,584 on February 15,
2024.
(1) For SARs that were exercised, the number of shares in this column reflects the nominal number of shares that were subject to SARs. The
number of shares actually delivered under the SARs was lower and represented the value realized on exercise divided by the market price
at the time of exercise.
(2) The value realized upon exercise is based on the spread between the market price of the Company’s Class A common stock at the time of
exercise and the exercise price.
(3) The value realized upon vesting is based on the average of the high and low stock price on the vesting date.
The following tables include additional information regarding the value realized by the NEOs (or, in the case of
Mr. Sorenson, his beneficiaries or estate) in 2021 on the exercise or vesting of Marriott stock awards reported in the
table above.
(1) The amounts in this column consist of elective deferrals by the NEOs of salary for the 2021 fiscal year and non-equity incentive plan
compensation for 2020 (otherwise payable in 2021) under the EDC. The following table indicates the portion of each executive’s elective
contributions that was attributable to 2021 salary that is reported in the Summary Compensation Table.
(2) The amounts in this column reflect aggregate notional earnings during 2021 of each NEO’s account in the EDC. Such earnings are
reported in the Summary Compensation Table only to the extent that they were credited at a rate of interest in excess of 120% of the
applicable federal long-term rate. The following table indicates the portion of each executive’s aggregate earnings during 2021 that is
reported in the Summary Compensation Table.
(3) This column includes amounts in each NEO’s total EDC account balance as of the last day of the 2021 fiscal year. The following table
presents the portion of the Aggregate Balance that was reported as compensation in the Summary Compensation Table in the Company’s
prior-year proxy statements.
Under the EDC, the NEOs and other participants are eligible to defer the receipt of up to 80% of their salary, bonus,
and/or non-equity incentive plan compensation. Such amounts are fully vested. In addition, the Company may make a
discretionary matching contribution to participants’ (including the NEOs’) EDC accounts, which is vested when made.
The match is intended to provide the NEOs (and other highly-paid associates) with matching contributions that are
similar to matching contributions that would have been made under the Company’s tax-qualified 401(k) plan but for the
application of certain nondiscrimination testing and annual compensation limitations under the Internal Revenue Code.
There was no match for 2021 due to the impact of the COVID-19 pandemic on our business and industry.
The Company also may make an additional discretionary contribution to participants’ (including the NEOs’) EDC
accounts based on subjective factors such as individual performance, key contributions and retention needs. There
were no additional discretionary contributions for the NEOs for 2021.
The EDC also provides participants the opportunity for long-term capital appreciation by crediting participant accounts
with a rate of return determined by the Company. The rate of return was determined largely by reference to the
Company’s estimated long-term cost of borrowing and was set at 3.3% for 2021. To the extent that this rate exceeds
120% of the applicable federal long-term rate, the excess is reported in the Change in Pension Value and Nonqualified
Deferred Compensation Earnings column of the Summary Compensation Table.
Participants may elect to receive a distribution of their EDC accounts upon separation from service or upon a specified
future date while still employed (an “in-service distribution”). Each year’s deferrals and Company match may have a
separate distribution election. Distributions payable upon separation from service may be elected as (i) a lump sum
cash payment; (ii) a series of annual cash installments payable over a designated term not to exceed 20 years; or
(iii) five annual cash payments beginning on the sixth January following termination of employment. In-service
distributions may be elected by the participant as a single lump sum cash payment or annual cash payments over a
term of two to five years, in either case beginning not earlier than the third calendar year following the calendar year of
the deferral. However, in the case of amounts of $10,000 or less, or when no election regarding the form of distribution
is made, the distribution will be made in a lump sum. When the participant is a “specified employee” for purposes of
Section 409A of the Internal Revenue Code, any distribution payable on account of separation from service will not
occur until after six months following separation from service. Typically, the NEOs are specified employees.
Under the EDC, upon retirement or termination due to permanent disability (as defined in the EDC), an NEO will
immediately vest in any unvested portion of his or her EDC account. Each of the NEOs was fully vested in their EDC
accounts as of December 31, 2021.
Any cash incentive payments under the annual cash incentive program will be forfeited if an executive is not employed
on the last day of the year, except that the annual cash incentive will be paid based on the target performance level,
pro-rated based on the days worked during the year, upon death or disability, in addition to payment upon an NEO’s
termination of employment in connection with or following a change in control as discussed below.
For purposes of Stock Plan awards, retirement means a termination of employment by an executive who has attained
age 55 with 10 years of service with the Company. For the EDC, retirement means a separation of service by an
executive who has attained age 55 with 10 years of service with the Company or has attained 20 years of service with
the Company. However, for Stock Plan awards, retiree status is subject to the Committee’s (or its designee’s) prior
approval, and the Committee (or its designee) has the authority to revoke approved retiree status if an executive’s
employment is subsequently found to have been terminated because of the executive’s serious misconduct, or if the
executive has engaged in competition with the Company or criminal conduct or other behavior that is actually or
potentially harmful to the Company. An NEO who dies as an employee or while an approved retiree immediately vests
in his or her EDC account (to the extent any portion is unvested) and stock awards. These provisions were developed
based on an analysis of external market data. As of December 31, 2021, each of the NEOs other than Ms. Linnartz met
the age and service conditions for retirement eligibility. Ms. Linnartz will meet those conditions if she remains employed
until March 28, 2023.
Under the Stock Plan, in the event of certain transactions involving a capital restructuring, reorganization or liquidation
of the Company or similar event as defined in the Stock Plan, the Company or its successor may in its discretion
provide substitute equity awards under the Stock Plan or, if no similar equity awards are available, an equivalent value
as determined at that time will be credited to each NEO’s account in the EDC, provided that such action does not
enlarge or diminish the value and rights under the awards. If the Company or its successor does not substitute equity
awards or credit the EDC accounts, the Company or its successor will provide for the awards to be exercised,
distributed, canceled, or exchanged for value. The intrinsic values of the vested and unvested SARs and unvested
stock awards as of the last day of the fiscal year are indicated for each NEO in the Outstanding Equity Awards at 2021
Fiscal Year-End table.
In addition, if any NEO’s employment is terminated by the Company other than for the executive’s misconduct or the
executive resigns for good reason (as defined under the Stock Plan) beginning three months before and ending
12 months following a change in control (as defined under the Stock Plan) of the Company, the NEO will become fully
vested in all unvested equity awards under the Stock Plan (including at the target performance level for PSUs). In those
circumstances, all SARs will be exercisable until the earlier of the original expiration date of the awards or 12 months
(or five years for an approved retiree) following the termination of employment, and all other stock awards shall be
immediately distributed following the later of the termination of employment or the change in control event, except that
certain stock awards subject to the requirements of Section 409A of the Internal Revenue Code may not be
distributable for six months following separation from service if the NEO is a “specified employee” under Section 409A,
which is typical. In addition, any cash incentive payments under the annual cash incentive program will be made
immediately based on the target performance level, pro-rated based on the days worked during the year until the NEO’s
termination of employment in connection with or following a change in control, and any unvested EDC balances will
immediately vest.
The table below reflects the intrinsic value of unvested stock awards and cash incentive payments that each NEO other
than Mr. Sorenson would receive upon retirement, disability, death, or involuntary termination of employment in
connection with a change in control as of December 31, 2021, the end of our fiscal year (based on the Company’s
closing stock price of $165.24 on December 31, 2021). Actual payments made to Mr. Sorenson or his estate following
his passing are described below under “Arrangements with Former Executive Officers.”
Change in
Retirement Disability Control and
Name Plan ($)(1) ($) Death ($) Termination ($)
Mr. Capuano Stock Plan 16,921,167 21,865,783 21,865,783 21,865,783
Total Cash Incentive — 2,469,230 2,469,230 2,469,230
Ms. Linnartz Stock Plan — 15,115,529 15,115,529 15,115,529
Total Cash Incentive — 980,768 980,768 980,768
Ms. Oberg Stock Plan 11,114,680 18,003,213 18,003,213 18,003,213
Total Cash Incentive — 888,462 888,462 888,462
Mr. Brown Stock Plan 6,874,475 7,391,658 7,391,658 7,391,658
Total Cash Incentive — 561,619 561,619 561,619
Mr. Smith Stock Plan 7,184,176 7,701,360 7,701,360 7,701,360
Total Cash Incentive — 560,799 560,799 560,799
(1) These Stock Plan amounts will become exercisable or be distributed following retirement over the period described in the awards, subject
to the conditions not to engage in competition or other conduct injurious to the Company as described in more detail above, provided that,
a portion of the stock awards granted on February 22, 2021 will remain outstanding based on the number of days from the grant date
through the retirement date.
The benefits presented in the table above are in addition to benefits available prior to the occurrence of any termination
of employment, including benefits available under then-exercisable SARs and vested EDC balances, and benefits
available generally to salaried associates such as benefits under the Company’s 401(k) plan, group medical and dental
plans, life and accidental death insurance plans, disability programs, health and dependent care spending accounts,
and accrued paid time off. The actual amounts that would be paid upon an NEO’s termination of employment can be
determined only at the time of any such event. Due to the number of factors that affect the nature and amount of any
benefits provided upon the events discussed above, any actual amounts paid or distributed may be higher or lower than
reported above. Factors that could affect these amounts include the timing during the year of any such event, the
Company’s stock price and the executive’s age. In addition, in connection with any actual termination of employment or
change in control transaction, the Company may determine to enter into an agreement or to establish an arrangement
providing additional benefits or amounts, or altering the terms of benefits described above, as the Committee
determines appropriate.
The 2021 annual total compensation of the median compensated employee was $36,505; Mr. Capuano, who was our
CEO on November 1, 2021, had annualized 2021 annual total compensation of $18,457,267 and the ratio of these
amounts was 1-to-506. In calculating Mr. Capuano’s annual total compensation for this purpose, we annualized his
base salary level approved in connection with his appointment to the CEO role. We did not annualize any other
elements of Mr. Capuano’s compensation in light of his full year of employment with the Company and his assumption
of the CEO role in February of 2021.
This pay ratio is a reasonable estimate calculated in a manner consistent with SEC rules based on our payroll and
employment records and the methodology described below. Because the SEC rules for identifying the median
compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow
companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and
assumptions that reflect their compensation practices, the pay ratio reported by other companies may not be
comparable to the pay ratio reported above, as other companies may have different employment and compensation
practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their own pay
ratios.
To identify our 2020 median employee from our employee population on November 1, 2020, our determination date, we
used total gross earnings, which we measured over a 10-month period that included the January 1 to October 31, 2020
payroll cycles. We estimated total gross earnings for full- and part-time permanent employees who did not work for the
entire 10-month period, including those who were furloughed or on unpaid leaves of absence, based on their earnings
for the portion of the period that they worked. At non-U.S. managed hotels, where employment laws and practices may
vary, we included only those individuals who are identified as employees on the records of the business units where
they work.
Director Compensation
Our director compensation program is reviewed annually. The Committee reviews annual director compensation at the
50th percentile of external market data, which includes surveys of similarly-sized, cross-industry companies, as well as a
custom peer group of companies specifically selected by the Committee. This is the same compensation peer group the
Committee reviews when setting NEO compensation. See “Market Data” above. The Committee believes, based on the
advice of the Compensation Consultant, that this represents the appropriate reference against which our director
compensation program should be assessed. To provide additional context, the Committee considers director
compensation practices of select competitors in the lodging industry. The Committee also reviews and considers
historical financial, business and total stockholder return results, as well as the external view of various stakeholders
such as stockholders and proxy advisors.
In May 2021, following a review of the Company’s director compensation program under the above framework, as well
as consultation with the Compensation Consultant, the Committee recommended, and the Board approved, an increase
to the annual retainer fee from $85,000 to $95,000, an increase to the annual deferred share award value from
$165,000 to $175,000, and an increase to the lead independent director fee from $40,000 to $50,000, in each case
effective May 1, 2021, to better align with market compensation levels. As a result of these changes, we paid
non-employee directors compensation in the form of annual cash retainer fees and Non-Employee Director Deferred
Share Awards (“Share Awards”) under the Stock Plan for 2021, as follows:
We typically pay retainer, chair and lead independent director cash fees on a quarterly basis. In accordance with
established Company procedures, a director may make an advance election to defer payment of all or a portion of his
or her director cash fees pursuant to the Stock Plan and/or the EDC. Director cash fees that are deferred pursuant to
the Stock Plan will be credited as stock units to the director’s stock unit account in the plan. As elected by the director,
director cash fees that are credited to the director’s stock unit account as stock units may be distributed as an equal
number of shares in a lump sum or in one to 10 annual installments following termination of service as a Board
member. Additional stock units are credited to the director’s stock unit account to reflect any dividends paid on our
Class A common stock in a number equal to (x) the per-share cash dividend amount multiplied by the number of stock
units in the director’s account divided by (y) the average of the high and low prices of a share of our Class A common
stock on the dividend payment date.
Alternatively, a director may make an advance election to receive payment of all or any part of his or her director fees in
the form of SARs having an equivalent grant date value. We grant director SARs with an exercise price equal to the
grant date fair market value (the average of the high and low quoted prices of the Company stock on the grant date)
and a 10-year term. The SARs become vested and exercisable on the last business day immediately preceding the
next annual meeting of stockholders or, if earlier, upon the director’s termination of service due to death or permanent
disability.
The Company grants Share Awards to directors following the Company’s annual meeting of stockholders. Share
Awards granted in 2021 vest on a pro-rata basis over the course of the year following the grant date and are distributed
in stock in a lump sum following the director’s separation from service, unless the director elects to have the award
distributed on the one-year anniversary of the grant date or in one to 10 annual installments following separation from
service. Directors make their elections in the year prior to grant of the award. Share Awards neither accrue dividend
equivalents nor provide voting rights until the stock is distributed.
The Company reimburses directors for travel expenses, other out-of-pocket costs they incur when attending meetings
and, for one meeting per year, attendance by spouses. To encourage our directors to visit and personally evaluate our
properties, the directors also receive complimentary rooms, food and beverages at Company-owned, operated or
franchised hotels, as well as the use of hotel-related services such as Marriott-managed golf and spa facilities, when on
personal travel. We report the value of these benefits to the directors as taxable compensation and do not provide the
directors any gross-up to cover such taxes.
The Board believes that stock ownership by non-employee directors is essential for aligning their interests with those of
our stockholders. To emphasize this principle, Board stock ownership guidelines require that each non-employee
director own Company stock or vested stock units valued at three times the director’s combined annual cash and stock
retainers, or roughly nine times the annual cash retainer. All non-employee directors who have served as directors of
the Company for five years or more have met this goal.
Change in
Pension Value
and Nonqualified
Deferred
Fees Earned or Compensation All Other
Paid in Cash Stock Awards Earnings Compensation
Name ($)(2) ($)(3)(4) ($)(5) ($)(6) Total ($)
Deborah M. Harrison 91,667 175,032 — 12,904 279,603
Frederick A. Henderson 121,667 175,032 — — 296,699
Eric Hippeau 91,667 175,032 — — 266,699
Lawrence W. Kellner 159,167 175,032 — — 334,199
Debra L. Lee 111,667 175,032 1,806 — 288,505
Aylwin B. Lewis 126,667 175,032 1,836 — 303,535
David S. Marriott(1) 63,333 175,032 — — 238,365
Margaret M. McCarthy 142,581 175,032 — — 317,613
George Muñoz 106,667 175,032 4,905 14,782 301,386
Horacio D. Rozanski 74,301 175,032 — 27,670 277,003
Susan C. Schwab 91,667 175,032 399 — 267,098
(1) Mr. David Marriott stepped down as an employee after joining the Board in March 2021. The table reflects the compensation he received in
2021 for his non-employee director service. The compensation he received in 2021 for his service as an employee of the Company is
disclosed in the “Transactions with Related Persons” section below.
(2) This column includes any fees that the directors elected to defer as stock units to their stock unit accounts in the Stock Plan, and fees that
were deferred pursuant to the EDC, as set forth below. No director elected to receive their fees in the form of SARs.
(3) Each non-employee director was granted a Deferred Share Award on May 10, 2021, covering 1,224 shares, that vests on a pro-rata basis
over the course of the year following the grant date. In accordance with the Company’s equity compensation grant procedures, the awards
were determined by dividing the target value of the Deferred Share Award by the average of the high and low prices of a share of the
Company’s Class A common stock on the date the awards were granted, which was $143.00 per share. The amounts reported in the
“Stock Awards” column reflect the grant date fair value of the award, determined in accordance with accounting guidance for share-based
payments.
(4) The following table indicates the number of outstanding SARs, RSUs, and Deferred Share Awards and other deferred stock units
(collectively, “DS”) held by each director at the end of 2021. This table also includes Marriott Vacations Worldwide (“MVW”) DS awards
settled in shares of MVW stock, resulting from adjustments to the Company DS awards for the Company’s timeshare business spin-off in
2011. A portion of the DS awards held by Mr. Hippeau reflects Starwood awards, which, in connection with the Starwood combination in
2016, converted into awards settled in Marriott stock. This table does not reflect accrued dividend equivalents that are paid in cash upon
settlement of the converted Starwood DS awards.
(1) Includes 4,675,985 shares subject to outstanding PSU, RSU, deferred stock bonus, and Share Awards granted under the Stock Plan,
which are not included in the calculation of the Weighted-Average Exercise Price column. Includes 358,799 shares issuable at target under
outstanding PSUs.
(2) Consists of 8,411,959 securities available for issuance under the Stock Plan and 10,209,734 securities available for issuance under the
Company’s prior Employee Stock Purchase Plan, which was terminated in February 2022 in connection with the Board’s approval of the
Marriott International, Inc. Employee Stock Purchase Plan.
(3) Represents shares subject to outstanding restricted stock, RSU, and deferred stock awards and shares remaining available for future
issuance under the Starwood Hotels & Resorts Worldwide 2013 Long-Term Incentive Compensation Plan.
The Company assumed the Starwood Hotels & Resorts Worldwide 2013 Long-Term Incentive Compensation Plan (the
“Starwood LTIP”) in connection with the acquisition of Starwood. The Starwood LTIP authorizes the award of stock
options, SARs, restricted stock, RSUs, PSUs and other equity-based or equity-related awards to employees and
consultants, except that awards cannot be granted to any person who was an employee of the Company or its
subsidiaries at the time of the acquisition. The Starwood LTIP is administered by the Human Resources and
Compensation Committee of the Company’s Board, which may delegate to one or more executive officers or directors
the authority to grant awards under the plan.
STOCK OWNERSHIP
Stock Ownership of our Directors, Executive Officers and Certain Beneficial Owners
The table below sets forth the beneficial ownership of Class A common stock by our current directors, our named
executive officers, and our current directors and executive officers as a group, as of March 1, 2022 (unless otherwise
noted), as well as additional information about beneficial owners of more than five percent of the Company’s Class A
common stock. Ownership consists of sole voting and sole investment power, except as indicated in the notes below,
and except for shares registered in the name of children sharing the same household or subject to any community
property laws. Unless otherwise noted, the current address for all greater than five percent beneficial owners is Marriott
International, Inc., 10400 Fernwood Road, Bethesda, Maryland 20817.
Note on Various Marriott Family Holdings: SEC rules require reporting of beneficial ownership of certain shares by
multiple parties, resulting in double counting of some shares. After eliminating the double-counting of shares beneficially
owned, J.W. Marriott, Jr., Deborah M. Harrison, and David S. Marriott together have an aggregate beneficial ownership
of 12.03 percent of Marriott’s outstanding shares. The aggregate total beneficial ownership of J.W. Marriott, Jr., Deborah
M. Harrison, David S. Marriott and each of the “Other 5% Beneficial Owners” shown below, except for The Vanguard
Group, is 15.72 percent of outstanding shares after removing the double-counted shares. These individuals each
disclaim beneficial ownership in excess of his or her pecuniary interest over shares owned by other members of the
Marriott family and the entities named below except as specifically disclosed in the footnotes following the table below.
Shares Percent of
Name Beneficially Owned Class(1)
Directors and Director Nominees:
J.W. Marriott, Jr. 36,360,660(2)(3)(4)(5) 11.11%
Anthony G. Capuano 162,918(8) *
Isabella D. Goren 0 *
Deborah M. Harrison 26,886,430(3)(4)(6) 8.21%
Frederick A. Henderson 15,955(7) *
Eric Hippeau 64,558(7) *
Lawrence W. Kellner 28,167(7) *
Debra L. Lee 35,803(7) *
Aylwin B. Lewis 17,508(7) *
David S. Marriott 27,793,539(3)(4)(14) 8.49%
Margaret M. McCarthy 6,661(7) *
George Muñoz 55,151(7)(8) *
Horacio D. Rozanski 1,224(7) *
Susan C. Schwab 12,007(7) *
Other Named Executive Officers:
Stephanie C. Linnartz 38,369(8) *
Kathleen K. Oberg 38,771(8) *
William P. Brown 15,778 *
Craig S. Smith 49,301(8) *
All Current Directors and Executive Officers as a Group:
(21 persons) 39,962,418(9) 12.21%
Other 5% Beneficial Owners:
Richard E. Marriott 20,621,247(2)(11) 6.30%
John W. Marriott III 23,240,093(4)(10) 7.10%
Juliana B. Marriott 22,482,046(4)(12) 6.87%
Jennifer R. Jackson 22,036,784(4)(13) 6.73%
Michelle E. Marriott 22,047,929(4)(15) 6.73%
Juliana B. Marriott Marital Trust 22,464,046(4)(16) 6.86%
JWM Family Enterprises, Inc. 22,027,118(4) 6.73%
JWM Family Enterprises, L.P. 22,027,118(4) 6.73%
(1) Based on the number of shares outstanding, 327,254,156 on March 1, 2022, plus the number of shares acquirable by the specified
person(s) within 60 days of March 1, 2022, as described below. The underlying share amounts for SARs are all based on the $164.91
closing price of Marriott’s Class A Common Stock on March 1, 2022.
(2) Includes the following 9,064,084 shares that both J.W. Marriott, Jr. and his brother Richard E. Marriott report as beneficially owned: (a)
2,485,594 shares held by trusts for the benefit of their children, for which J.W. Marriott, Jr. and Richard E. Marriott serve as co-trustees;
(b) 3,432,787 shares owned by The J. Willard & Alice S. Marriott Foundation, a charitable foundation, for which J.W. Marriott, Jr., Richard
E. Marriott, David S. Marriott, and Deborah M. Harrison serve as co-trustees; and (c) 3,145,703 shares held by a limited liability company
for which J.W. Marriott, Jr. and Richard E. Marriott serve as co-managers.
(3) Includes 240,000 shares owned by six trusts for the benefit of the grandchildren and more remote descendants of J.W. Marriott, Jr., for
which J.W. Marriott, Jr.’s spouse and each of his children serve as co-trustees and that J.W. Marriott, Jr., his daughter Deborah M.
Harrison, and his sons David S. Marriott and John W. Marriott III each report as beneficially owned.
(4) Includes the following 22,027,118 shares that J.W. Marriott, Jr., his children John W. Marriott III, Deborah M. Harrison, and David S.
Marriott, his daughter-in-law Juliana B. Marriott, his granddaughters Michelle E. Marriott and Jennifer R. Jackson, the Juliana B. Marriott
Marital Trust, JWM Family Enterprises, Inc., and JWM Family Enterprises, L.P. each report as beneficially owned: (a) 8,319,999 shares
owned by Thomas Point Ventures, L.P.; (b) 1,640,000 shares owned by Anchorage Partners, L.P.; (c) 360,000 shares owned by Bay
Harbor Limited Holdings, LLC; (d) 360,000 shares owned by Terrapin Limited Holdings, LLC; (e) 250,000 shares owned by Short North
Limited Holdings LLC; (f) 3,000,000 shares owned by Penny Lane Limited Holdings, LLC, all of which are pledged as security; (g)
880,000 shares owned by 43 Degrees North Holdings, LLC, all of which are pledged as security; and (h) 7,217,119 shares owned by
JWM Family Enterprises, L.P. JWM Family Enterprises, Inc., a corporation in which J.W. Marriott, Jr., Deborah M. Harrison, David S.
Marriott, and two of his granddaughters, Michelle E. Marriott and Jennifer R. Jackson, are directors, is the sole general partner of JWM
Family Enterprises, L.P., a limited partnership, which in turn is (i) the sole general partner of Thomas Point Ventures, L.P. and Anchorage
Partners, L.P., which also are limited partnerships, and (ii) the sole member of Terrapin Limited Holdings, LLC, Short North Limited
Holdings LLC, and Penny Lane Limited Holdings, LLC. Anchorage Partners, L.P., is the sole member of Bay Harbor Limited Holdings,
LLC, and Thomas Point Ventures, L.P. is the sole member of 43 Degrees North Holdings, LLC. The address for the corporation, the three
limited partnerships and the five limited liability companies is 540 Gaither Road, Suite 100, Rockville, Maryland 20850.
(5) Includes the following 4,830,874 shares that J.W. Marriott, Jr. reports as beneficially owned, in addition to the shares referred to in
footnotes (2), (3) and (4): (a) 198,584 shares held in a 401(k) account for the benefit of J.W. Marriott, Jr.; (b) 2,637,790 shares held in a
revocable trust for the benefit of J.W. Marriott, Jr., for which he is the sole trustee, all of which are pledged as security; (c) 285,758 shares
held in a revocable trust for the benefit of J.W. Marriott, Jr.’s spouse, for which his spouse is the sole trustee (Mr. Marriott disclaims
beneficial ownership of such shares); and (d) 1,708,742 shares owned by separate trusts for the benefit of J.W. Marriott, Jr.’s children and
grandchildren, for which his spouse serves as a co-trustee.
(6) Includes the following 4,619,312 shares that Deborah M. Harrison reports as beneficially owned in addition to the shares referred to in
footnotes (3) and (4): (a) 26,864 shares directly held and 160,440 shares held in grantor trusts of which Deborah M. Harrison is the sole
trustee; (b) 14,711 shares owned by Deborah M. Harrison’s spouse (Mrs. Harrison disclaims beneficial ownership of such shares);
(c) 9,350 shares held in thirteen trusts for the benefit of Deborah M. Harrison’s grandchildren, for which Deborah M. Harrison’s spouse
serves as trustee; (d) 168,003 shares held in three trusts for the benefit of Deborah M. Harrison’s children, for which Deborah M. Harrison
serves as trustee; (e) 245,210 shares held in a trust for the benefit of Deborah M. Harrison’s descendants, for which Deborah M. Harrison
serves as trustee; (f) 179,166 shares held by three trusts for the benefit of John W. Marriott III’s children, for which John W. Marriott III
and Deborah M. Harrison serve as co-trustees; (g) 251,000 shares held by a life insurance trust for the benefit of J.W. Marriott, Jr., for
which each of his children serve as trustees; (h) 34,920 shares held in a limited liability company of which Deborah M. Harrison is a
manager; (i) 90,561 shares held in a limited liability company of which Deborah M. Harrison’s spouse is a manager; (j) 3,784 shares
subject to PSUs, SARs and RSUs held by Deborah M. Harrison currently exercisable or exercisable within 60 days after March 1, 2022;
(k) 2,516 shares subject to non-employee director deferred share awards, that were beneficially owned as of March 1, 2022; and
(l) 3,432,787 shares owned by The J. Willard & Alice S. Marriott Foundation, a charitable foundation, for which J.W. Marriott, Jr.,
Richard E. Marriott, David S. Marriott, and Deborah M. Harrison serve as co-trustees (referred to in footnote (2)(b)).
(7) Includes the combined numbers of shares (a) subject to non-employee director deferred share awards, and (b) in stock unit accounts of
non-employee directors, and that were beneficially owned as of March 1, 2022, as follows: Mr. Henderson: 15,955 shares; Mr. Hippeau:
38,656 shares; Mr. Kellner: 26,167 shares; Ms. Lee: 33,658 shares; Mr. Lewis: 8,440 shares; Ms. McCarthy: 4,661 shares; Mr. Muñoz:
47,474 shares; Mr. Rozanski: 1,224 shares; and Ms. Schwab: 6,411 shares. Ms. McCarthy’s total also includes 2,000 shares that are
pledged as security.
(8) Includes shares subject to Options, PSUs, SARs and RSUs currently exercisable or exercisable within 60 days after March 1, 2022, as follows:
Mr. Capuano: 54,982 shares; Ms. Linnartz: 7,119 shares; Mr. Muñoz: 5,562 shares; Ms. Oberg: 14,651 shares; and Mr. Smith: 26,402.
(9) The 3,432,787 shares referred to in footnote (2)(b), the 240,000 shares referred to in footnote (3), and the 22,027,118 shares referred to
in footnote (4) are reported as beneficially owned by each of J.W. Marriott, Jr., Deborah M. Harrison, and David S. Marriott, but are
included only once in reporting the number of shares owned by all directors, nominees and executive officers as a group. All current
directors and executive officers as a group held 121,148 PSUs, SARs, and RSUs currently exercisable or exercisable within 60 days after
March 1, 2022. All current directors and executive officers as a group, other than J.W. Marriott, Jr. Deborah M. Harrison, and David S.
Marriott beneficially owned an aggregate of 572,599 shares (including 117,364 PSUs, SARs, and RSUs currently exercisable or
exercisable within 60 days after March 1, 2022), or 0.175 percent of our Class A common stock outstanding as of March 1, 2022
(including shares acquirable within 60 days). All current directors and executive officers as a group held 6,541,787 shares pledged as
security, or 2.00 percent of our Class A common stock outstanding as of March 1, 2022 (including shares acquirable within 60 days).
(10) Includes the following 966,764 shares that John W. Marriott III reports as beneficially owned, in addition to the shares referred to in
footnotes (3) and (4): (a) 409,996 shares directly held; (b) 179,166 shares held by three trusts for the benefit of John W. Marriott III’s
children, for which John W. Marriott III and Deborah M. Harrison serve as co-trustees (referred to in footnote (6)(f)); (c) 75,000 shares
owned by a trust for the benefit of John W. Marriott III’s descendants, for which John W. Marriott III and David S. Marriott serve as
co-trustees; (d) 251,000 shares held by a life insurance trust for the benefit of J.W. Marriott, Jr., for which each of his children serve as
co-trustees (referred to in footnote (6)(g)); (e) 45,390 shares owned by the JWM III Family Foundation, a charitable foundation for which
John W. Marriott III serves as sole director; and (f) 6,212 shares held in a 401(k) account for the benefit of John W. Marriott III.
(11) Includes the following 11,557,163 shares that Richard E. Marriott reports as beneficially owned, in addition to the 9,064,084 shares
referred to in footnote (2): (a) 1,170,855 shares directly held and 5,745,897 shares held in grantor trusts of which Richard E. Marriott is
the sole trustee; (b) 287,222 shares owned by Richard E. Marriott’s spouse (Mr. Marriott disclaims beneficial ownership of these shares);
(c) 1,067,917 shares owned by three trusts for the benefit of Richard E. Marriott’s children, for which his spouse serves as a co-trustee;
(d) 2,251,519 shares owned by First Media, L.P., a limited partnership whose general partner is a corporation in which Richard E. Marriott
is the controlling voting stockholder; (e) 17,000 shares held by a trust established for the benefit of J.W. Marriott, Jr., for which Richard E.
Marriott serves as trustee; (f) 151,390 shares owned by the Richard E. and Nancy P. Marriott Foundation, for which Richard E. Marriott
and his spouse serve as directors and officers; and (g) 865,363 shares held by trusts for which Richard E. Marriott serves as trustee.
Richard E. Marriott is the brother of J.W. Marriott, Jr. and is a former director and officer of the Company. His address is Host Hotels &
Resorts, Inc., 10400 Fernwood Road, Bethesda, Maryland 20817.
(12) Includes the following 454,928 shares that Juliana B. Marriott reports as beneficially owned in addition to the shares referred to in footnote
(4): (a) 18,000 shares directly held; and (b) 436,928 shares owned by a trust for the benefit of Juliana B. Marriott (the “Juliana B. Marriott
Marital Trust”), for which David S. Marriott and Juliana B. Marriott are co-trustees.
(13) Includes 9,666 shares held in four trusts for the benefit of Jennifer R. Jackson’s nieces and nephews, for which her spouse serves as
trustee, that Ms. Jackson reports as beneficially owned in addition to the shares referred to in footnote (4).
(14) Includes the following 5,526,421 shares that David S. Marriott reports as beneficially owned in addition to the shares referred to in
footnotes (3) and (4): (a) 550,741 shares directly held and 24,166 shares held in a grantor trust of which David S. Marriott is the sole
trustee; (b) 11,518 shares held by David S. Marriott’s spouse (Mr. Marriott disclaims beneficial ownership of such shares); (c) 78,220
shares held by four trusts for the benefit of David S. Marriott’s children, for which David S. Marriott serves as trustee; (d) 230,930 shares
owned by a trust for the benefit of David S. Marriott’s descendants, for which David S. Marriott serves as trustee; (e) 75,000 shares
owned by a trust for the benefit of John W. Marriott III’s descendants, for which John W. Marriott III and David S. Marriott serve as
co-trustees (referred to in footnote 10(c)); (f) 221,678 shares owned by three trusts for the benefit of Stephen G. Marriott’s descendants,
for which David S. Marriott serves as trustee; (g) 65,354 shares owned by two trusts for the benefit of Stephen Blake Marriott, for which
David S. Marriott serves as trustee; (h) 436,928 shares owned by a trust for the benefit of Juliana B. Marriott, for which David S. Marriott
and Juliana B. Marriott are co-trustees (referred to in footnote (12)(b)); (i) 123,667 shares owned by four trusts for the benefit of Stephen
G. Marriott’s children, for which David S. Marriott serves as trustee; (j) 251,000 shares held by a life insurance trust for the benefit of J.W.
Marriott, Jr., for which each of his children serve as co-trustees (referred to in footnote (6)(g)); (k) 1,224 shares subject to non-employee
director deferred share awards, that were beneficially owned as of March 1, 2022; and (l) 3,432,787 shares owned by The J. Willard &
Alice S. Marriott Foundation, a charitable foundation, for which David S. Marriott serves as co-trustee with J.W. Marriott, Jr., Richard E.
Marriott and Deborah M. Harrison (referred to in footnote (2)(b)).
(15) Includes 20,811 shares that Michelle E. Marriott reports as beneficially owned in addition to the shares referred to in footnote (4).
(16) Includes 436,928 shares that the Juliana B. Marriott Marital Trust reports as beneficially owned in addition to the shares referred to in
footnote (4).
(17) Based on a review of a Schedule 13G/A report filed with the SEC on February 10, 2022, The Vanguard Group beneficially owned
20,956,076 shares as of December 31, 2021, with sole voting power as to 0 shares, shared voting power as to 450,557 shares, sole
dispositive power as to 19,855,281 shares, and shared dispositive power as to 1,100,795 shares.
Based solely upon a review of SEC filings and written representations that no other reports were required, we believe
that all Reporting Persons complied with these reporting requirements for fiscal year 2021, except for a late Form 5
filing by Deborah M. Harrison to report the receipt of a gift; a late Form 5 filing by David S. Marriott to report the receipt
of a gift and to report a gift by a trust on which he serves as a co-trustee; a late Form 5 filing by the Juliana Marriott
Marital Trust to report a gift; and a late Form 5 filing by Juliana Marriott to report the receipt of a gift and to report a gift
by a trust on which she serves as a co-trustee. The untimely reports were the result of administrative errors.
Employed family members with total compensation for 2021 in excess of $120,000, which includes, to the extent
applicable, base salary, bonus, the value of stock-based awards, and all other compensation, are shown in the table
below. In his role as Executive Chairman and in light of his significant ownership of our stock, Mr. J.W. Marriott, Jr. is
not eligible for annual cash incentives or stock-based awards.
Total
Compensation for 2021
Director / Executive Officer Family Members Family Member Position ($)
J.W. Marriott, Jr., J.W. Marriott, Jr. Executive Chairman and 3,051,227
Deborah M. Harrison, and Chairman of the Board
David S. Marriott
David S. Marriott* Former President, U.S. Full 1,624,852
Service, Managed by
Marriott
Ronald T. Harrison Global Design Officer 1,598,481
* This table reflects David S. Marriott’s 2021 compensation for service as the Company’s President, U.S. Full Service Managed by Marriott.
As described above, he joined the Board in March 2021 and stepped down as an employee of the Company prior to the 2021 annual
meeting. In connection with his transition to serving on the Board, the Human Resources and Compensation Committee provided that the
equity awards granted to him while he was an employee will continue to vest, conditioned on his continued service as a director. Under
SEC rules, the change in vesting conditions is reportable as 2021 compensation based on an accounting valuation of $186,720, which
amount is included in the total compensation column above.
The Company provides J.W. Marriott, Jr. with various non-business-related services and permits him to use the
Company’s aircraft for personal travel when not already committed for Company use. J.W. Marriott, Jr. reimbursed the
Company for the cost of these various non-business-related services provided by Company associates in the amount of
$304,850 for 2021. J.W. Marriott, Jr. and the Company entered into a non-exclusive aircraft time sharing agreement,
dated September 20, 2018, which permits him to compensate the Company for some personal use of the Company’s
aircraft. For flights under the time sharing agreement, J.W. Marriott, Jr. compensates the Company for personal use of
the aircraft based on a cost reimbursement methodology compliant with Federal Aviation Administration regulations.
Since January 1, 2021, these reimbursements were less than $120,000.
• ordinary course residence and similar sales or leases under any general program of sale or lease to third parties, if
the price or rental paid is no lower than the lowest price or rental offered to third parties or to Marriott associates
under Company-wide associate discount programs with respect to such property;
• employment and compensation relationships that are subject to Human Resources and Compensation Committee or
other specified internal management approvals or which, in the case of executive officers, are subject to required
proxy statement disclosure;
• certain transactions with other companies and certain charitable contributions in which the related persons’ interest or
involvement is limited and, with respect to directors who otherwise are independent, is consistent with the
independence criteria under both the Company’s Governance Principles and the Nasdaq corporate governance
listing standards;
• transactions where the related party’s interest arises solely from the ownership of the Company’s common stock and
all holders of the Company’s common stock receive the same benefit on a pro rata basis; and
• non-lodging transactions involving less than $500,000 that are approved by a standing subcommittee of the
Corporate Growth Committee or, if the transactions pose a conflict of interest for all members of the subcommittee,
the CEO.
form indicates that you may vote those shares through the http://www.proxyvote.com website, then you may access
and participate in the Annual Meeting with the 16-digit access code indicated on that voting instruction form. Otherwise,
stockholders who hold their shares in street name should contact their bank, broker or other nominee (preferably at
least 5 days before the Annual Meeting) and obtain a “legal proxy” in order to be able to attend, participate in or vote at
the Annual Meeting. The Annual Meeting will begin promptly at 12:00 p.m. Eastern Time on May 6, 2022. You may
begin to log into the meeting platform approximately thirty minutes before the start.
Who should stockholders contact if they have technical issues accessing the virtual Annual
Meeting?
Online access to the audio webcast will open approximately thirty minutes prior to the start of the Annual Meeting to
allow time for you to log in and test your computer audio system. We encourage stockholders to access the meeting
prior to the start time. If you encounter any difficulties accessing the Annual Meeting during the check-in or meeting
time, please call the technical support number that will be posted on the Annual Meeting website log-in page.
Voting Procedures
Who is entitled to vote?
Only stockholders of record at the close of business on the record date, March 9, 2022, are entitled to receive notice of
and to attend and vote at the Annual Meeting, or any postponement or adjournment of the Annual Meeting. Each
outstanding share of the Company’s Class A common stock entitles its holder to cast ten votes on each matter to be
voted upon.
How do I vote?
Whether you are a stockholder of record or a beneficial owner whose shares are held in street name, you can vote in
any one of four ways:
• Via the Internet in advance of the Annual Meeting. You may vote by submitting your proxy by visiting the website
at www.proxyvote.com and entering the control number found on your proxy card (printed in the box marked by the
arrow) next to the label for postal mail recipients or within the body of the email sending the proxy statement.
• By Telephone. You may vote by submitting your proxy by calling the toll-free number found on the proxy card or in
the voting instruction form.
• By Mail. You may vote by submitting your proxy by mail by filling out the enclosed proxy card (if you are a
stockholder of record) or voting instruction form (if you are a beneficial owner) and sending it back in the postage-paid
envelope provided.
• Online During the Annual Meeting. If you are a stockholder of record and you plan to join the Annual
Meeting, you are encouraged to vote beforehand by Internet, telephone or mail. You also may vote at
www.virtualshareholdermeeting.com/MAR2022 during the Annual Meeting. Have your unique control number
available when you access the Annual Meeting website.
Telephone and Internet voting is available through 11:59 p.m. Eastern Time on Thursday, May 5, 2022. The telephone
and Internet voting procedures are designed to authenticate votes cast by use of a personal identification number. The
procedures, which are designed to comply with Delaware law, allow stockholders to appoint a proxy to vote their shares
and to confirm that their instructions have been properly recorded.
If you hold your shares in “street name” through a broker or other nominee, you may be able to vote by telephone or
electronically through the Internet in accordance with the voting instructions provided by that institution. If you do not
provide voting instructions to your broker or other nominee in advance of the Annual Meeting, your broker will have
discretionary authority to vote on “routine matters.” The ratification of the appointment of the independent registered
public accounting firm in Item 2 is the only item on the agenda for the Annual Meeting that is considered routine. Thus,
if you do not provide voting instructions to your broker or other nominee in advance of the Annual Meeting, your shares
will not be voted on Items 1, 3, 4, 5, 6 and any other matters that may properly be voted on at the Annual Meeting,
resulting in “broker non-votes” in an amount equivalent to your shares with respect to these items.
Can I change my vote or revoke my proxy after I return my proxy card, or after I vote by
telephone or electronically?
Yes. Even after you have submitted your proxy, you may change your vote at any time before the proxy is exercised at
the meeting. Regardless of the way in which you submitted your original proxy, you may change it by:
(1) Returning a later-dated signed proxy card;
(2) Delivering a written notice of revocation to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood,
New York 11717;
(3) Voting by submitting your proxy by telephone or the Internet until 11:59 p.m. Eastern Time on May 5, 2022; or
(4) Attending the Annual Meeting and voting online as indicated above under “How do I vote?”
If your shares are held through a broker or other nominee, you will need to contact that institution if you wish to change
your voting instructions in advance of the Annual Meeting. Alternatively, you may attend the Annual Meeting and vote
online, as indicated above under “How do I vote?”.
Other Matters
When are stockholder proposals and nominations for the 2023 annual meeting of stockholders
due?
Rule 14a-8 Proposals. To be considered for inclusion in our proxy statement for the 2023 annual meeting of
stockholders, stockholder proposals submitted pursuant to Rule 14a-8 under the Exchange Act must be received at our
principal executive office no later than the close of business on November 22, 2022. Proposals must comply with Rule
14a-8 and must be submitted in writing to the Secretary, Marriott International, Inc., Department 52/862, 10400
Fernwood Road, Bethesda, Maryland 20817 (if sent prior to July 25, 2022) or 7750 Wisconsin Avenue, Bethesda,
Maryland 20814 (if sent on or after July 25, 2022).
Advance Notice Proposals and Nominations. In addition, our Bylaws require that, if a stockholder desires to introduce a
stockholder proposal, other than a nomination for the election of directors, at the 2023 annual meeting of stockholders,
notice of such proposal must be delivered in writing to the Company’s Secretary at the above address no earlier than
the close of business on January 6, 2023 and no later than the close of business on February 5, 2023. However, if the
2023 annual meeting of stockholders is more than 30 days before or more than 70 days after the anniversary date of
this year’s annual meeting, the stockholder’s notice must be delivered no earlier than the close of business on the 120th
day prior to such annual meeting and no later than the close of business on the later of the 90th day prior to such
meeting or the 10th day following the date on which public announcement of the meeting date is first made by the
Company. If a stockholder desires to nominate a director at the 2023 annual meeting of stockholders, our Bylaws
require that notice of such nomination be delivered in writing to the Company’s Secretary at the above address no later
than February 6, 2023. However, in the event that the 2023 annual meeting of stockholders is more than 30 days
before or more than 60 days after the anniversary date of this year’s annual meeting, the stockholder’s notice must be
so delivered no later than the close of business on the seventh day following the date on which notice of such meeting
is first given to stockholders. The notice of such written proposal or nomination must comply with our Bylaws. The
chairman of the meeting may refuse to acknowledge or introduce any stockholder proposal or nomination if notice
thereof is not received within the applicable deadlines or does not comply with our Bylaws. In addition, stockholders
who intend to solicit proxies in support of director nominees other than the Company’s nominees must provide notice
that sets forth the information required by Rule 14a-19, the SEC’s universal proxy rule, no later than March 7, 2023.
Proxy Access Nominations. If a stockholder or group of stockholders who meet the requirements set forth in our Bylaws
wish(es) to nominate one or more director candidates to be included in the Company’s proxy statement for the 2023
annual meeting through the Company’s proxy access provision, the Company must receive proper written notice of the
nomination no later than the close of business on the 120th day nor earlier than the 150th day before the first
anniversary date of the date the definitive proxy statement was first released to stockholders in connection with the
preceding year’s annual meeting of stockholders (i.e., between the close of business on October 23, 2022 and the
close of business on November 22, 2022 for the 2023 annual meeting of stockholders), and the nomination must
otherwise comply with our Bylaws. However, in the event that the 2023 annual meeting of stockholders is more than 30
days before or after the anniversary of the prior year’s annual meeting, the stockholder’s notice must be delivered no
earlier than the close of business on the 150th day prior to such meeting and no later than the close of business on the
120th day prior to such meeting or the 10th day following the date on which public announcement of the meeting date is
first made by the Company.
If a stockholder fails to meet these deadlines or satisfy the requirements of Rule 14a-4 under the Exchange Act, the
proxies we solicit allow the named proxyholders, if a vote is taken, to vote on such proposals as they deem appropriate.
You can find a copy of our Bylaws in the Investor Relations section of the Company’s website (Marriott.com/Investor)
by clicking on “Governance” and then “Documents & Charters,” or you may obtain a copy by submitting a request to the
Secretary, Marriott International, Inc., Department 52/862, 10400 Fernwood Road, Bethesda, Maryland 20817 (if sent
prior to July 25, 2022) or 7750 Wisconsin Avenue, Bethesda, Maryland 20814 (if sent on or after July 25, 2022).
How much did this proxy solicitation cost, and who paid that cost?
The Company paid for this proxy solicitation. We hired MacKenzie Partners, Inc. to assist in the distribution of proxy
materials and solicitation of votes for an estimated fee of $18,500, plus reimbursement of certain out-of-pocket
expenses. We also reimburse brokerage houses and other custodians, nominees, and fiduciaries for their reasonable
out-of-pocket expenses for forwarding proxy and solicitation materials to stockholders. Proxies will be solicited by mail,
telephone, or other means of communication. Our directors, officers and regular associates who are not specifically
employed for proxy solicitation purposes and who will not receive any additional compensation for such activities may
also solicit proxies. If any stockholders need assistance voting their shares, please contact MacKenzie Partners, Inc. at
800-322-2885 (Toll Free), 212-929-5500 (Call Collect) or via email at proxy@mackenziepartners.com.
HOUSEHOLDING
The SEC allows us to deliver a single proxy statement and annual report to an address shared by two or more of our
stockholders. This delivery method, referred to as “householding,” can result in significant cost savings for us, as well as
reducing the environmental impact of printing and shipping these materials. In order to take advantage of this
opportunity, the Company and banks and brokerage firms that hold your shares may deliver only one proxy statement
and annual report or one Notice of Internet Availability to multiple stockholders who share an address unless one or
more of the stockholders has provided contrary instructions. The Company will deliver promptly, upon written or oral
request, a separate copy of the proxy statement and annual report to a stockholder at a shared address to which a
single copy of the documents was delivered. A stockholder who wishes to receive a separate copy of the proxy
statement and annual report, now or in the future, may obtain one, without charge, by addressing a request to the
Secretary, Marriott International, Inc., Department 52/862, 10400 Fernwood Road, Bethesda, Maryland 20817 (if sent
prior to July 25, 2022) or 7750 Wisconsin Avenue, Bethesda, Maryland 20814 (if sent on or after July 25, 2022), or by
calling (301) 380-5750. You may also obtain a copy of the proxy statement and annual report from the Company’s
website (Marriott.com/Investor) by clicking on “SEC Filings.” Stockholders of record sharing an address who are
receiving multiple copies of proxy materials and annual reports and wish to receive a single copy of such materials in
the future should submit their request by contacting us in the same manner. If you are the beneficial owner, but not the
record holder, of the Company’s shares and are receiving multiple copies of proxy materials and annual reports and
wish to receive a single copy of such materials in the future, you will need to contact your broker, bank or other
nominee to request that only a single copy of each document be mailed to all stockholders at the shared address in the
future.
OTHER MATTERS
The Company’s management knows of no other matters that may be presented for consideration at the Annual
Meeting. However, if any other matters properly come before the Annual Meeting, the persons named in the proxy
intend to vote such proxy in accordance with their judgment on such matters.
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to Be
Held On May 6, 2022: The proxy statement and annual report to stockholders are available at www.proxyvote.com.
Any stockholder who would like a copy of our 2021 Annual Report on Form 10-K may obtain one, without
charge, by addressing a request to the Secretary, Marriott International, Inc., Department 52/862, 10400
Fernwood Road, Bethesda, Maryland 20817 (if sent prior to July 25, 2022) or 7750 Wisconsin Avenue, Bethesda,
Maryland 20814 (if sent on or after July 25, 2022). The Company’s copying costs will be charged if copies of
exhibits to the Form 10-K are requested. You may also obtain a copy of the Form 10-K, including exhibits, from
the Investor Relations portion of our website (Marriott.com/Investor) by clicking on “SEC Filings.”
Exhibit A
MARRIOTT INTERNATIONAL, INC.
EMPLOYEE STOCK PURCHASE PLAN
1. Purpose
The purpose of this Marriott International, Inc. Employee Stock Purchase Plan (the “Plan”) is to provide eligible
employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock through
accumulated Contributions. The Company’s intention is to have the Plan qualify as an “employee stock purchase plan”
under Section 423 of the Code. The provisions of the Plan, accordingly, will be construed so as to extend and limit Plan
participation in a uniform and nondiscriminatory basis consistent with the requirements of Section 423 of the Code.
2. Definitions.
(a) “Administrator” means the Company’s Global Officer, Compensation and Benefits.
(b) “Applicable Laws” means any applicable laws, rules, or regulations under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any foreign country or jurisdiction where options are, or will be, granted
under the Plan.
(c) “Board’’ means the Board of Directors of the Company.
(d) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rulings and
regulations issued thereunder.
(e) “Common Stock” means the Class A common stock of the Company, $0.01 par value per share.
(f) “Company” means Marriott International, Inc., a Delaware corporation, and any successor corporation.
(g) “Compensation” means, unless otherwise determined by the Administrator, an Eligible Employee’s base
salary or base hourly rate of pay. At the discretion of the Administrator, Compensation may include other items of cash
earnings such as (but not limited to) commissions, overtime, incentive compensation, bonuses, paid tips (other than
cash tips), gratuities, and service charges. Compensation will be determined as of the date of Contribution, or such
other date as determined by the Administrator, in its discretion.
(h) “Contributions” means the payroll deductions and any other additional payments that the Administrator
may permit to be made by a Participant to fund the exercise of options granted pursuant to the Plan.
(i) “Designated Subsidiary” means any Subsidiary that has been designated by the most senior human
resources officer of the Company from time to time in his or her sole discretion as eligible to participate in the Plan. As
of the date of adoption of the Plan, the Designated Subsidiaries consist exclusively of all Subsidiaries with United
States-based employees, excluding the subsidiary known as Marriott Worldwide Payroll, LLC.
(j) “Eligible Employee” means any person, including an officer, who is employed by the Company or a
Designated Subsidiary, except for the following:
(i) any employee whose customary employment is for not more than five months per calendar year (i.e.,
seasonal employment); and
(ii) any employee represented by a collective bargaining unit (unless participation in the Plan is specifically
provided for under the terms of a collective bargaining agreement).
For purposes of the Plan, the employment relationship shall be treated as continuing intact while the
individual is on sick leave or other leave of absence approved by the Company, except as required by law. “Eligible
Employee” shall not include any person who is a citizen or resident of a foreign jurisdiction if granting them an option
under the Plan would violate the law of such jurisdiction, or if compliance with the laws of the jurisdiction would cause
the Plan to violate Section 423 of the Code.
(k) “Employer” means the Company and each Designated Subsidiary.
(l) “Enrollment Date” means the first Trading Day of each Purchase Period.
(m) “Exchange Act” means the Securities Exchange Act of 1934, as amended, including the rules and
regulations promulgated thereunder.
(n) “Exercise Date” means the last Trading Day of each Purchase Period.
(o) “Fair Market Value” means as of any date, the value of the Common Stock determined as follows: (i) if the
Common Stock is listed on any established stock exchange, system or market, its Fair Market Value shall be the
closing price for the Common Stock as quoted on such exchange, system or market (or, if no sale of Common Stock is
reported for such date, on the next preceding date on which any sale shall have been reported); and (ii) in the absence
of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.
(p) “New Exercise Date” means a new Exercise Date if the Administrator shortens any Purchase Period then in
progress.
(q) “Offering” means an offer under the Plan of an option that may be exercised on the applicable Exercise
Date as further described in Section 4. For purposes of the Plan, the Administrator may designate separate Offerings
under the Plan (the terms of which need not be identical) in which Employees of one or more Employers will participate,
even if the dates of the applicable Purchase Periods of each such Offering are identical and the provisions of the Plan
will separately apply to each Offering. To the extent permitted by Treasury Regulation Section 1.423-2(a)(1), the terms
of each Offering need not be identical provided that the terms of the Plan and an Offering together satisfy Treasury
Regulation Sections 1.423-2(a)(2) and (a)(3).
(r) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the
Code.
(s) “Participant” means an Eligible Employee who elects to participate in the Plan.
(t) “Purchase Period” means each period established by the Administrator (not to exceed 27 months) in which
an option granted under the Plan may be exercised and shares of Common Stock may be purchased on a Participant’s
behalf in accordance with the terms of the Plan. The duration and timing of each Purchase Period may be changed
pursuant to Sections 4, 17 and 18. The first Purchase Period shall commence on a date established by the
Administrator in its discretion, and subsequent Purchase Periods will be determined by the Administrator.
(u) “Purchase Price” means an amount equal to 85% of the Fair Market Value of a share of Common Stock on
the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be
determined for subsequent Purchase Periods by the Administrator subject to compliance with Section 423 of the Code
(or any other applicable law, regulation or stock exchange rule) or pursuant to Section 17.
(v) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in
Section 424(f) of the Code.
(w) “Trading Day” means a day on which the national stock exchange upon which the Common Stock is listed
is open for trading or, if the Common Stock is not listed on a national stock exchange, a business day as determined by
the Administrator in good faith.
(x) “Treasury Regulations” means the Treasury regulations promulgated under the Code. Reference to a
specific Treasury Regulation or Section of the Code shall include such Treasury Regulation or Section, any valid
regulation promulgated under such Section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such Section or regulation.
3. Eligibility
(a) Waiting Period. Any Eligible Employee on a given Enrollment Date will be eligible to participate in the Plan if
he or she was employed by the Company for at least 90 days immediately preceding the Enrollment Date, subject to
the requirements of Section 5; provided, however, that an Eligible Employee who commences employment with the
Company or a Designated Subsidiary following such 90-day period will be eligible to participate in the Plan at the
beginning of the next Purchase Period to occur that is at least 90 days following the commencement of his or her
employment with the Company or a Designated Subsidiary. Eligible Employees who do not elect to participate in the
Plan on a given Enrollment Date may elect to participate in the Plan at the beginning of any subsequent Purchase
Period as determined by the Administrator. For purposes of calculating the waiting period, a break in service of less
than 90 days will be disregarded.
(b) Non-U.S. Employees. Employees who are citizens or residents of a non-U.S. jurisdiction (without regard to
whether they also are citizens or residents of the United States or resident aliens (within the meaning of
Section 7701(b)(1)(A) of the Code)) may be excluded from participation in the Plan or an Offering if the participation of
such Employees is prohibited under the laws of the applicable jurisdiction or if complying with the laws of the applicable
jurisdiction would cause the Plan or an Offering to violate Section 423 of the Code. In addition, as provided in
Section 13, the Administrator may establish one or more sub-plans of the Plan (which may, but are not required to,
comply with the requirements of Section 423 of the Code) to provide benefits to employees of Designated Subsidiaries
located outside the United States in a manner that complies with local law. Any such sub-plan will be a component of
the Plan and will not be a separate plan.
(c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no Eligible Employee will be granted
an option under the Plan (i) to the extent that, immediately after the grant, such Eligible Employee (or any other person
whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital
stock of the Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such
stock possessing 5% or more of the total combined voting power or value of all classes of the capital stock of the
Company or of any Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or
Subsidiary of the Company accrues at a rate which exceeds $25,000 worth of stock (determined at the Fair Market
Value of the stock as of the Enrollment Date) for each calendar year in which such option is outstanding at any time, as
determined in accordance with Section 423 of the Code and the regulations thereunder.
4. Purchase Periods
The Plan will be implemented by consecutive Purchase Periods with new Purchase Periods commencing at such times
as determined by the Administrator. The Administrator will have the power to change the duration of Purchase Periods
(including the commencement dates thereof) without stockholder approval.
5. Participation
An Eligible Employee may participate in the Plan by timely enrolling through the electronic or other procedures
determined by the Administrator.
6. Contributions
(a) At the time a Participant enrolls in the Plan pursuant to Section 5, such Participant will elect to have payroll
deductions made for each payroll period, or other Contributions (to the extent permitted by the Administrator) made
during the Purchase Period (or portion thereof), in an amount not exceeding 20% of the Compensation (or such other
percentage of Compensation as determined by the Administrator in its sole discretion), which he or she receives for
each payroll period during the Purchase Period; provided, however, that should a pay day occur on an Exercise Date, a
Participant will have any payroll deductions made on such day applied to his or her notional account under the
subsequent Purchase Period. A Participant’s subscription agreement will remain in effect for successive Purchase
Periods unless the rate of Contributions is reduced to zero under subsection (d) below.
(b) Payroll deductions for a Participant for the applicable Purchase Period generally will commence on the first
payroll period administratively practicable following the Enrollment Date (or such later date on which a Participant
enrolls in the Plan pursuant to Section 5) and will end on the last payroll period prior to the Exercise Date, unless
sooner discontinued by the Participant under subsection (d) below.
(c) All Contributions made for a Participant will be credited to his or her notional account under the Plan and
payroll deductions will be made in whole percentages only. Except to the extent permitted by the Administrator pursuant
to Section 6(a), a Participant may not make any additional payments into such notional account.
(d) A Participant may discontinue his or her participation in the Plan by reducing the rate of Contributions to zero
during a Purchase Period, to the extent permitted by the Administrator in its sole discretion, without refunding
Contributions to date. Participants shall not be permitted to increase or to otherwise decrease their rates of
Contributions during a Purchase Period unless otherwise determined by the Administrator in its sole discretion;
provided, however, Participants shall be permitted to increase or decrease their rates of Contributions effective as of
the beginning of each Purchase Period.
(e) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code, a
Participant’s Contributions may be decreased to 0% at any time during a Purchase Period. Subject to Section 423(b)(8)
of the Code, Contributions will recommence at the rate originally elected by the Participant effective as of the beginning
of the next Purchase Period, unless discontinued by the Participant under subsection (d) above.
(f) Tax Withholding. As of the Exercise Date, or at the time some or all of the Common Stock issued under the Plan is
disposed of (or any other time that a taxable event related to the Plan occurs), the Participant must make adequate
provision for the Company’s or Employer’s federal, state, local or any other tax liability payable to any authority including
taxes imposed by jurisdictions outside of the United States, national insurance, social security or other tax withholding
obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock (or any other time
that a taxable event related to the Plan occurs). At any time, the Company or the Employer may, but will not be obligated to,
withhold from the Participant’s compensation the amount necessary for the Company or the Employer to meet applicable
withholding obligations, including any withholding required to make available to the Company or the Employer any tax
deductions or benefits attributable to sale or early disposition of Common Stock acquired under the Plan by the Eligible
Employee. In addition, the Company or the Employer may, but will not be obligated to, withhold from the proceeds of the
sale of Common Stock acquired under the Plan or any other method of withholding the Company or the Employer deems
appropriate to the extent permitted by Treasury Regulation Section 1.423-2(f).
7. Grant of Option
On the Enrollment Date of each Purchase Period, each Eligible Employee participating in such Purchase Period will be
granted an option to purchase on each Exercise Date during such Purchase Period (at the applicable Purchase Price) up to
a number of shares of Common Stock determined by dividing such Eligible Employee’s Contributions accumulated prior to
such Exercise Date and retained in the Eligible Employee’s notional account as of the Exercise Date by the applicable
Purchase Price; provided, however, that in no event will an Eligible Employee be permitted to purchase during each
Purchase Period more than 1,000 shares of Common Stock (subject to any adjustment pursuant to Section 17); provided,
further, that such purchase will be subject to the limitations set forth in Sections 3(c) and 12. The Eligible Employee may
accept the grant of such option by electing to participate in the Plan in accordance with the requirements of Section 5. The
Administrator may, for future Purchase Periods, increase or decrease, in its absolute discretion, the maximum number of
shares of Common Stock that an Eligible Employee may purchase during each Purchase Period. Exercise of the option will
occur as provided in Section 8. The option will expire on the last day of the Purchase Period.
8. Exercise of Option
(a) A Participant’s option for the purchase of shares of Common Stock will be exercised automatically on the
Exercise Date, and the number of full and partial shares subject to the option will be purchased for such Participant at
the applicable Purchase Price with the accumulated Contributions from his or her notional account. Any funds left over
in a Participant’s notional account after the Exercise Date will be returned to the Participant. During a Participant’s
lifetime, a Participant’s option to purchase shares hereunder is exercisable only by him or her.
(b) If the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with
respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for
sale under the Plan on the Enrollment Date of the applicable Purchase Period, or (ii) the number of shares of Common
Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that
the Company will make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment
Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and as it will determine in its sole
discretion to be equitable among all Participants exercising options to purchase Common Stock on such Exercise Date, and
continue all Purchase Periods then in effect, or (y) provide that the Company will make a pro rata allocation of the shares
available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as will be
practicable and as it will determine in its sole discretion to be equitable among all participants exercising options to purchase
Common Stock on such Exercise Date, and terminate any or all Purchase Periods then in effect pursuant to Section 18.
The Company may make a pro rata allocation of the shares available on the Enrollment Date of any applicable Purchase
Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the
Plan by the Company’s stockholders subsequent to such Enrollment Date.
9. Delivery
As soon as reasonably practicable after each Exercise Date on which a purchase of shares of Common Stock occurs,
the Company will arrange the delivery to each Participant of the shares purchased upon exercise of his or her option in
a form determined by the Administrator (in its sole discretion) and pursuant to rules established by the Administrator.
The Company may permit or require that shares be deposited directly with a broker designated by the Company or to a
designated agent of the Company, and the Company may utilize electronic or automated methods of share transfer.
The Company may require that shares be retained with such broker or agent for a designated period of time and/or may
establish other procedures to permit tracking of disqualifying dispositions of such shares. No Participant will have any
voting, dividend, or other stockholder rights with respect to shares of Common Stock subject to any option granted
under the Plan until such shares have been purchased and delivered to the Participant as provided in this Section 9.
11. Interest
No interest will accrue on the Contributions of a Participant in the Plan, except as may be required by Applicable Law,
as determined by the Company.
12. Stock
(a) Subject to adjustment upon changes in capitalization of the Company as provided in Section 17 hereof, the
maximum number of shares of Common Stock that will be made available for sale under the Plan will be 4,000,000
shares of Common Stock.
(b) Until the shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), a Participant will only have the rights of an unsecured creditor with respect
to his or her Contributions, and no right to vote or receive dividends or any other rights as a stockholder will exist with
respect to shares of Common Stock subject to any option granted under the Plan until such shares have been
purchased and delivered to the Participant as provided in Section 9.
(c) Shares of Common Stock to be delivered to a Participant under the Plan will be registered in the name of the
Participant or in the name of the Participant and his or her spouse.
13. Administration
The Plan shall be administered by the Administrator or by his or her successor. The Human Resources and
Compensation Committee (“HRCC”) of the Board may appoint or remove the individual serving as Administrator. Any
power of the Administrator may also be exercised by the HRCC. The Administrator will have full and exclusive
discretionary authority to construe, interpret and apply the terms of the Plan, to designate separate Offerings under the
Plan, to determine eligibility, to adjudicate all disputed claims filed under the Plan, and to establish such procedures that
it deems necessary for the administration of the Plan (including, without limitation, to adopt such procedures and
sub-plans as are necessary or appropriate to permit the participation in the Plan by employees who are foreign
nationals or employed outside the United States, the terms of which sub-plans may take precedence over other
provisions of this Plan, with the exception of Section 12(a), but unless otherwise superseded by the terms of such
sub-plan, the provisions of this Plan shall govern the operation of such sub-plan). Unless otherwise determined by the
Administrator, the Employees eligible to participate in each sub-plan will participate in a separate Offering. Without
limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures
regarding eligibility to participate, the definition of Compensation, handling of Contributions, making of Contributions to
the Plan (including, without limitation, in forms other than payroll deductions), establishment of bank or trust accounts to
hold Contributions, payment of interest to the extent required by local law, conversion of local currency, obligations to
pay payroll tax, determination of beneficiary designation requirements, withholding procedures and handling of stock
certificates that vary with applicable local requirements. The Administrator also is authorized to determine that, to the
extent permitted by Treasury Regulation Section 1.423-2(f), the terms of an option granted under the Plan or an
Offering to citizens or residents of a non-U.S. jurisdiction will be less favorable than the terms of options granted under
the Plan or the same Offering to employees residing solely in the United States. The Administrator may delegate any
duty described in the Plan to one or more individuals in the Company’s Compensation & Benefits Department, as the
Administrator deems necessary or appropriate, with such delegated duties subject to review by the Administrator. Any
decision made by a delegate of the Administrator is entitled to the same deference as if made by the Administrator.
Every finding, decision and determination made by the Administrator will, to the full extent permitted by Applicable
Laws, be final and binding upon all parties.
15. Transferability
Neither Contributions credited to a Participant‘s notional account nor any rights with regard to the exercise of an option
or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of
in any way (other than by will, the laws of descent and distribution or as provided in Section 14) by the Participant. Any
such attempt at assignment, transfer, pledge or other disposition will be without effect.
prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Administrator.
The New Exercise Date will be before the date of the Company’s proposed dissolution or liquidation. The Administrator
will notify each Participant in writing or electronically, prior to the New Exercise Date, that the Exercise Date for the
Participant’s option has been changed to the New Exercise Date and that the Participant’s option will be exercised
automatically on the New Exercise Date.
(c) Merger or Other Corporate Transaction. In the event of a merger, sale or other similar corporate transaction
involving the disposition of all or substantially all of the Company or its business or assets, each outstanding option will
be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation refuses to assume or substitute for the option, the Purchase
Period with respect to which such option relates will be shortened by setting a New Exercise Date on which such
Purchase Period shall end. The New Exercise Date will occur before the date of the Company’s proposed merger, sale
or other similar corporate transaction. The Administrator will notify each Participant in writing or electronically prior to
the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New Exercise Date
and that the Participant’s option will be exercised automatically on the New Exercise Date.
19. Notices
All notices or other communications by a Participant to the Company under or in connection with the Plan will be
deemed to have been duly given when received in the form and manner specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.
24. Severability
If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or unenforceable for any reason in any
jurisdiction or as to any Participant, such invalidity, illegality or unenforceability shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as to such jurisdiction or Participant as if the invalid, illegal or
unenforceable provision had not been included.
25. Interpretation
Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference and shall
not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.
Words in the masculine gender shall include the feminine gender, and where appropriate, the plural shall include the
singular and the singular shall include the plural. The use herein of the word “including” following any general
statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters
set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as
“without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be
deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such
general statement, term or matter. References herein to any agreement, instrument or other document means such
agreement, instrument or other document as amended, supplemented and modified from time to time to the extent
permitted by the provisions thereof and not prohibited by the Plan.