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The following is an excerpt from a DEF 14A SEC Filing, filed by CENTURYLINK, INC on 4/11/2012.
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CENTURYLINK, INC - DEF 14A - 20120411 - NOTICE_OF_ANNUAL_MEETING

2012 Notice of Annual Meeting

and Proxy Statement

and

Annual Financial Report

 

 

May 23, 2012

10:00 a.m. local time

100 CenturyLink Drive

Monroe, Louisiana


Table of Contents

 

 

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE

ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON MAY 23, 2012

This proxy statement and related materials are

available at www.envisionreports.com/ctl .

All references in this proxy statement or related materials to “we, “us,” “our” or “CenturyLink” refer to CenturyLink, Inc. In addition, each reference to (i) our “executives” or “executive officers” refers to our eight executive officers listed in the tables beginning on page 6 of this proxy statement, (ii) “meeting” refers to the 2012 annual meeting of our shareholders described further herein, (iii) “named officers” or “named executive officers” refers to the five executive officers listed in the Summary Compensation Table appearing on page 48 of this proxy statement, (iv) “Embarq” refers to Embarq Corporation, which we acquired on July 1, 2009, (v) “Qwest” refers to Qwest Communications International Inc., which we acquired on April 1, 2011, (vi) “Savvis” refers to SAVVIS, Inc., which we acquired on July 15, 2011, and (vii) “SEC” refers to the U.S. Securities and Exchange Commission. Unless otherwise provided, all information is presented as of the date of this proxy statement.


Table of Contents

CenturyLink, Inc.

100 CenturyLink Drive

Monroe, Louisiana 71203

 

 

Notice of Annual Meeting of Shareholders

 

 

 

TIME AND DATE    10:00 a.m. local time on May 23, 2012

PLACE

  

Corporate Conference Room

CenturyLink Headquarters

100 CenturyLink Drive

Monroe, Louisiana

ITEMS OF BUSINESS

  

(1)    Approve charter amendments to:

 

(a)    Declassify our board of directors

 

(b)    Increase our authorized shares

 

(2)    Elect as directors the four nominees named in the accompanying proxy statement on the terms and conditions specified therein

 

(3)    Ratify the appointment of KPMG LLP as our independent auditor for 2012

 

(4)    Conduct a non-binding advisory vote regarding our executive compensation

 

(5)    Act upon three separate shareholder proposals if properly presented at the meeting

 

(6)    Transact such other business as may properly come before the meeting and any adjournment.

RECORD DATE

   You can vote if you were a shareholder of record on April 4, 2012.
PROXY VOTING    Shareholders are invited to attend the meeting in
person. Even if you expect to attend, it is important
that you vote by telephone or the Internet, or by
completing and returning a proxy or voting
instruction card.

 

LOGO

Stacey W. Goff

Secretary

April 10, 2012


Table of Contents
     Page  

QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING

     1   

PROPOSED AMENDMENTS TO ARTICLES OF INCORPORATION

     3   

ELECTION OF DIRECTORS

     5   

CORPORATE GOVERNANCE

     12   

Governance Guidelines

     12   

Independence

     13   

Committees of the Board

     14   

Director Nomination Process

     15   

Compensation Setting Process

     17   

Risk Oversight

     17   

Top Leadership Positions and Structure

     17   

Waivers of Governance Requirements

     18   

Access to Information

     18   

RATIFICATION OF THE SELECTION OF THE INDEPENDENT AUDITOR

     19   

AUDIT COMMITTEE REPORT

     20   

ADVISORY VOTE ON EXECUTIVE COMPENSATION

     21   

SHAREHOLDER PROPOSALS

     22   

OWNERSHIP OF OUR SECURITIES

     28   

Principal Shareholders

     28   

Executive Officers and Directors

     29   

COMPENSATION DISCUSSION AND ANALYSIS

     30   

2011 Executive Compensation Highlights

     30   

Our Compensation Philosophy

     31   

Pay for Performance

     31   

Our Compensation Practices

     32   

Use of Market Data

     33   

Elements of Compensation

     33   

Salary

     34   

Annual Incentive Bonuses

     34   

Long-Term Equity Incentive Compensation

     37   

Retention Grants

     39   

Other Benefits

     39   

Our Compensation Decision-Making Process

     43   

Forfeiture of Prior Compensation

     46   

Stock Ownership Guidelines

     46   

Use of Employment Agreements

     47   

Tax Gross-ups

     47   

Anti-Hedging Policy

     47   

Other Compensation Matters

     47   

COMPENSATION COMMITTEE REPORT

     48   

EXECUTIVE COMPENSATION

     48   

Overview

     48   

Incentive Compensation and Other Awards

     50   

Pension Benefits

     53   

Deferred Compensation

     54   

Potential Termination Payments

     55   

DIRECTOR COMPENSATION

     59   

PERFORMANCE GRAPH

     63   

TRANSACTIONS WITH RELATED PARTIES

     64   

Recent Transactions

     64   

Review Procedures

     64   

 

i


Table of Contents
     Page  

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

     64   

ADDITIONAL INFORMATION ABOUT THE MEETING

     64   

Quorum

     64   

Vote Required to Elect Directors

     64   

Vote Required to Adopt Other Proposals at the Meeting

     64   

Effect of Abstentions

     65   

Effect of Non-Voting

     65   

Voting by Participants in Our Benefit Plans

     65   

Cost of Proxy Solicitation

     65   

Other Matters Considered at the Meeting

     66   

Conduct of the Meeting

     66   

Postponement or Adjournment of the Meeting

     66   

OTHER MATTERS

     66   

Shareholder Nominations and Proposals

     66   

Annual Financial Report

     66   

Appendix A — Proposed Amendments to Articles of Incorporation

     A-1   

Appendix B — Annual Financial Report

     B-1   

 

ii


Table of Contents

CenturyLink, Inc.

100 CenturyLink Drive

Monroe, Louisiana 71203

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