UNITED
STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE
14A

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Charter Communications, Inc.

(Name of Registrant as Specified in itsIn Its Charter)

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LOGO


LOGO


LOGOLOGO

Dear Stockholder:

You are invited to attend the annual meeting of stockholders of Charter Communications, Inc. (the “Company” or “Charter”), which will be held by means of a virtual meetingat 6350 S. Fiddler’s Green Circle, 2nd Floor (Conference Room C), Greenwood Village, CO 80111 on Tuesday, April 27, 202125, 2023 at 10:8:30 a.m. (Eastern(Mountain Daylight Time).

Details of the business to be conducted at the annual meeting are provided in the attached Notice of Annual Meeting of Stockholders and Proxy Statement.

Whether or not you attend the annual meeting, it is important that your shares be represented and voted at the meeting. Therefore, Iwe urge you to sign, date, and promptly return the enclosed proxy in the postage-paid envelope that is provided, or you may vote via the Internet pursuant to the instructions on the proxy card. If you decide to attend the annual meeting, you will have the opportunity to vote in person.

On behalf of management and the boardBoard of directors, IDirectors, we would like to express our appreciation for your continued interest in Charter.

Sincerely,

 

LOGO

Thomas M. Rutledge

Chairman and Chief Executive Officer

LOGO
Thomas M. RutledgeChristopher L. Winfrey
Executive ChairmanPresident and Chief Executive Officer

March 18, 202116, 2023


LOGOLOGO          Charter Communications, Inc.

        400 Atlantic StreetWashington Blvd.

        Stamford, CT 0690106902

Notice of Annual Meeting of Stockholders

of Charter Communications, Inc.

 

  Date:   Time:   Place:   
  April 27, 202125, 2023   10:8:30 a.m. (Eastern(Mountain Daylight Time)   www.virtualshareholdermeeting.com/CHTR2021

6350 S. Fiddler’s Green Circle

2nd Floor (Conference Room C)

Greenwood Village, CO 80111

   

 

 How to Vote:   

 

By Mail  

 

LOGO

 

By Phone  

 

LOGO

 

By Internet  

 

LOGO

 

    At VirtualAnnual Meeting     

 

LOGO

 

  

Matters to be voted on:

 

1.  The election of thirteen directors, named in this proxy statement;

 

2.  To hold an advisory vote on executive compensation;

3.  To hold an advisory vote on the frequency of holding an advisory vote on executive compensation;

4.  The ratification of the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2021;2023;

 

3.5.  To vote on fiveone stockholder proposalsproposal described in the proxy statement if properly presented at the meeting; and

 

4.6.  Any other matters properly brought before the stockholders at the meeting.

 

The  proxy statement more fully describes these proposals.

 

All stockholders of record at the close of business on February 26, 202124, 2023 are invited to attend the meeting. The meeting will be held by means of a virtual meeting. You will not be ableFor security reasons, however, to attendgain admission to the meeting in person. Instructions for howyou may be required to attend the meeting are contained in the accompanying proxy statement.present identification containing a photograph and to comply with other security measures.

 

By order of the Board of Directors,

 

LOGO

Richard R. Dykhouse

Corporate Secretary

 

March 18, 202116, 2023


Table of Contents

 

Questions and Answers about Voting and the Annual Meeting  1
Proposal No. 1: Election of Directors  65

Information about the Director Nominees

   65 

Director Nominees

   76 

Board of Directors and Committees of the Board of Directors

   1312 

Nomination and Qualifications of Directors

   1413

Board Diversity Matrix

15 

Governance Impacts of TWC and Bright House TransactionsUnder the Stockholders Agreement

   15 

Board Leadership Structure, Company Strategy and Risk Oversight

   16 

Compensation Risk Assessment

   17 

Shareholder Contact with DirectorsProactive Stockholder Engagement

   17 

2020Stockholder Contact with Directors

19

2022 Director Compensation

   1819 

Executive Officers

   1920 

Executive Officer Positions

19
Compensation Committee Interlocks and Insider Participation  2623
Report of the Compensation and Benefits Committee  2623
Compensation Discussion and Analysis  2724

Fiscal Year 20202022 Named Executive Officers

   2724 

Executive Summary

   2724 

Process for Determining Executive Compensation

   31 

Elements of Compensation

   3332 

Employment Agreements

   3937 

Tax and Accounting

   3938 

Additional Compensation Governance Policies

   4038 

Proactive Stockholder EngagementPay Versus Performance

   4140 

Summary Compensation Table

   4346 

20202022 Grants of Plan Based Awards

   4548 

Outstanding Equity Awards at Fiscal Year End

   4650 

20202022 Options Exercised and Stock Vested

   4852 

Retirement Benefits

   4952 
 


Charter Communications, Inc.

PROXY STATEMENT

Important Notice Regarding the Availability of Proxy Materials for the Stockholders Meeting to Be Held on April 27, 2021.25, 2023. The 20212023 notice and proxy statement and the 20202022 annual report to stockholders are available at www.proxyvote.com.

This proxy statement and the Notice of Internet Availability of Proxy Materials were first mailed to stockholders on or about March 18, 2021.16, 2023.

Questions and Answers about Voting and the Annual Meeting

What matters will be voted on at the annual meeting?

As a holder of Class A common stock, you are being asked to vote on the following:

 

Proposal 1: To elect thirteen directors, nominated by our board of directors and named in this proxy statement;

Proposal 1: To elect thirteen directors, nominated by our Board of Directors and named in this proxy statement;

 

Proposal 2: To ratify the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2021;

Proposal 2: To hold an advisory vote on executive compensation;

 

Proposal 3: To vote on a stockholder proposal regarding lobbying activities;

Proposal 3: To hold an advisory vote on the frequency of holding an advisory vote on executive compensation;

 

Proposal 4: To vote on a stockholder proposal regarding Chairman of the Board and CEO roles;

Proposal 4: To ratify the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2023;

 

Proposal 5: To vote on a stockholder proposal regarding diversity and inclusion efforts;

Proposal 5: To vote on a stockholder proposal regarding lobbying activities; and

 

Proposal 6: To vote on any other matters properly brought before the stockholders at the meeting.

Proposal 6: To vote on a stockholder proposal regarding disclosure of greenhouse gas emissions;

Proposal 7: To vote on a stockholder proposal regarding EEO-1 reports;

Proposal 8: To vote on any other matters properly brought before the stockholders at the meeting.

How does the boardBoard of directorsDirectors recommend that I vote?

The boardBoard of directorsDirectors recommends that you vote:

 

FOR the election of the thirteen directors, nominated by our board of directors and named in this proxy statement;

FOR the election of the thirteen directors, nominated by our Board of Directors and named in this proxy statement;

 

FOR the ratification of the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2021; and

FOR the approval, on an advisory basis, of the compensation of our named executive officers;

 

FOR the approval, on an advisory basis, of a triennial advisory vote on executive compensation;

AGAINST each of the stockholder proposals.

FOR the ratification of the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2023; and

AGAINST the stockholder proposal.

What if other matters come up at the annual meeting?

The items listed on the Notice of Annual Meeting of Stockholders are the only matters that we know will be voted on at the annual meeting. Your proxy gives discretionary authority to the persons named on the proxy card to vote on other matters. On such other business as may properly come before the meeting, your shares will be voted in the discretion and judgment of the proxy holder.

Who has been nominated for election as directors at the annual meeting?

The boardBoard of directorsDirectors has nominated thirteen directors for election, all of whom are currently serving on our boardBoard of directors.Directors. The thirteen directors who have been nominated by the boardBoard of directorsDirectors and agreed to serve as directors are Ms. Goodman and Messrs. Conn, Jacobson, Maffei, Markley, Merritt, Meyer, Miron, Newhouse, Nair, Ramos, Rutledge and Zinterhofer.

How can I participate in the annual meeting?

Due to public health and travel concerns caused by the COVID-19 pandemic, this year’s annual meeting will be accessible in a virtual-only meeting format to support the health and safety of our stockholders and employees. We have worked to offer the

 

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same participation opportunities as if you attended the annual meeting in person. To be admitted to the annual meeting at www.virtualshareholdermeeting.com/CHTR2021, you must enter the control number found on your proxy card, voting instruction form or notice you previously received. If you were a beneficial stockholder of Charter Class A common stock as of the Record Date (i.e., you hold your shares through a broker or other intermediary), you may submit your voting instructions only through your broker or other intermediary. Contact your broker or other intermediary if you no longer have your control number to access the meeting, which will also allow you to vote your shares at the meeting or change a prior vote. Although we encourage you to complete and return the proxy card to ensure that your vote is counted, you may vote during the Annual Meeting by following the instructions available on the meeting website during the meeting. There will not be guest access to the meeting. Accordingly, if you do not have your control number, you will not be able to attend the meeting. Online check-in will begin at 10:00 a.m. Eastern Daylight Time on April 27, 2021. The annual meeting will begin promptly at 10:30 a.m. Eastern Daylight Time on April 27, 2021. If you encounter difficulties accessing the virtual meeting, please call the technical support number that will be posted on the meeting website noted above for the annual meeting.

Stockholders will have an opportunity to submit written questions to management during the meeting. Rules of Conduct for the meeting as well as any specific requirements for questions will be posted on the website noted above for the annual meeting. Submitted questions should follow the Rules of Conduct in order to be addressed during or after the annual meeting. During the annual meeting, a list of stockholders entitled to vote at the annual meeting will also be available for inspection by stockholders for any legally valid purpose relating to the meeting.

Who can vote at the annual meeting?

As of the close of business on February 26, 202124, 2023 (the “Record Date”), a total of 215,273,098169,115,655 shares of Class A common stock, including Charter Communications Holdings, LLC (“Charter Holdings”) common and preferred units on an as-if-converted or exchangedas-if-exchanged basis, are entitled to be voted by our stockholders at the annual meeting. Each holder of Class A common stock is entitled to one vote per share.share, representing 151,146,796 votes. Advance/Newhouse Partnership (“A/N”) holds one share of our Class B common stock, which is entitled to a number of votes equal to the number of shares of Class A common stock into which the Charter Holdings common and preferredunits held by A/N may be convertedexchanged, or exchanged.17,968,859 votes. The enclosed proxy card indicates the number of Class A shares that our records show you are entitled to vote. There are no other classes of common stock outstanding.

What is the difference between being a stockholder of record and a beneficial owner?

You are a stockholder of record if at the close of business on the Record Date your shares were registered in your name with Computershare Shareowner Services, our transfer agent and registrar.

You are a beneficial owner if at the close of business on the Record Date, your shares were held by a brokerage firm or other nominee and not directly in your name, but are held in “street name.” As the beneficial owner of your shares, you have the right to direct your broker or other nominee how to vote your shares, i.e., for or against the proposals to be considered at the annual meeting. If you do not provide your broker or nominee with instructions on how to vote your shares, your broker or nominee will be able to vote your shares with respect to some of the proposals, but not all. See, “What if I do not provide instructions on how to vote my shares?” below.

What do I do if my shares are held in “street name”?

If your shares are held in the name of your broker or other nominee, you should return your proxy in the envelope provided by your broker or nominee or instruct the person responsible for holding your shares to execute a proxy on your behalf. In either case, your shares will be voted according to your instructions.

What if I do not provide instructions on how to vote my shares?

If you are a stockholder of record and you submit a proxy, but do not provide voting instructions, your shares will be voted for“FOR” the election of each of the Company’s director nominees on proposal 1, “FOR” the Company’sproposals 2 and 4, for “3 Years” on proposal as described above3 and “AGAINST” each of the stockholder proposals.proposal.

If you are a beneficial owner and you do not provide the broker or other nominee that holds your shares with voting instructions, the broker or nominee has discretionary authority to vote for certain proposals, but not others pursuant to the rules of NASDAQ and the Securities and Exchange Commission (“SEC”). Brokers and other nominees have the discretion to vote on routine matters such as Proposal 2,proposal 4, but not on non-routine matters such as Proposalsproposals 1, or2, 3 through 7.and 5. Therefore, if

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you do not provide voting instructions to the broker or nominee that holds your shares, the broker or nominee may only vote for Proposal 2proposal 4 and any other routine matters properly presented for a vote at the annual meeting.

What is the quorum required for the meeting?

We will hold the annual meeting if holders of shares having a majority of the voting power of Charter’s capital stock as of the Record Date either sign and return their proxy cards, vote via the Internet or attend the meeting. If you sign and return your proxy card or vote via the Internet, your shares will be counted to determine whether we have a quorum, even if you fail to indicate your vote.

Abstentions and broker “non-votes” will be counted as present for purposes of determining whether a quorum exists at the annual meeting.

How are broker non-votes and abstentions treated?

If an executed proxy is returned by a broker holding shares in street name that indicates that the broker does not have discretionary authority as to certain shares to vote on one or more matters (a broker non-vote), such shares will be considered present at the meeting for purposes of determining a quorum on all matters, but will not be considered to be votes cast with respect to such matters.

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A stockholder may vote to “abstain” on any of the proposals. If you vote to “abstain,”“abstain” on any matter, your shares will be counted as present at the meeting for purposes of determining a quorum on all matters, but will not be considered to be votes cast with respect to such matters.matter. Only “FOR” and “AGAINST” votes are counted for purposes of determining the votes cast in connection with each proposal.proposal other than proposal 3, and only “3 Years,” “2 Years” and “1 Year” votes are counted for purposes of determining the votes cast in connection with proposal 3.

With respect to each of the proposals, broker non-votes and abstentions will have no effect on determining whether the affirmative vote constitutes a majority of the shares present or represented by proxy and voting at the annual meeting. In addition, because they do not count as votes cast, assuming a quorum is present, abstentions from voting, broker non-votes or a stockholder’s other failure to vote will have no effect on the applicable proposal.

In order to minimize the number of broker non-votes, the Company encourages you to vote or to provide voting instructions to the organization that holds your shares by carefully following the instructions provided in the Notice of Internet Availability of Proxy Materials.

What is the vote required for the proposals on the agenda?

The affirmative vote of the holders of a majority of the votes cast is required for approval of the matters in Proposalsproposals 1 through 7.5. With respect to proposal 3, the Board expects to be guided by the voting option that receives the greatest number of votes, even if that alternative does not receive a majority. Abstentions and broker non-votes are not considered votes cast. Accordingly, assuming a quorum is present, abstentions, broker non-votes and a stockholder’s other failure to vote will have no effect on the outcome of the applicable proposal.

What are my choices in the proposalsfor each proposal on the agenda?

On Proposalproposal 1, for each of the director nominees you can vote your shares “FOR” a nominee or “AGAINST” a nominee, or you can abstain from voting. On Proposalsproposals 2, through 74 and 5 you can vote “FOR” a proposal voteor “AGAINST” a proposal, or you can abstain from voting. On proposal 3, you can vote for “3 Years,” “2 Years” or “1 Year,” or you can abstain from voting.

How do I vote by proxy?

Follow the instructions on the enclosed proxy card. Sign and date the proxy card and mail it back to us in the enclosed envelope. If you receive more than one proxy card it may mean that you hold shares in more than one account. Sign and return all proxy cards to ensure that all of your shares are voted. The proxy holder named on the proxy card will vote your shares as you instruct. If you sign and return the proxy card but do not indicate your vote, the proxy holder will vote on your behalf “FOR” each of the director nominees on proposal 1, “FOR” proposals 2 and the Company4, for “3 Years” on proposal as noted above3 and “AGAINST” each of the stockholder proposalsproposal and will also have discretionary authority to vote your shares on any other matter that is properly brought before the annual meeting. Stockholders may also vote their proxy by using the toll free number listed on the proxy card and following the instructions.

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Can I vote via the Internet?

Stockholders with shares registered in their names with Computershare Shareowner Services, our transfer agent, may authorize a proxy via the Internet at the following address: www.proxyvote.com. A number of brokerage firms and banks participate in a program that permits Internet voting. If your shares are held in an account at a brokerage firm or bank that participates in such a program, you may direct the vote of those shares by following the instructions on the voting form enclosed with the proxy from the brokerage firm or bank.

Proxies submitted via the Internet must be received by 11:59 p.m. (EDT) on April 26, 2021.24, 2023. Please refer to your voting instruction form and/or your proxy card for specific voting instructions. If you vote this year’s proxy via the Internet, you may also elect to receive future proxy and other materials electronically by following the instructions when you vote. Making this election will save the Company the cost of producing and mailing these documents.

Can I change my vote after I return my proxy card?

Yes. At any time before the vote at the annual meeting, you can change your vote either by giving our Corporate Secretary a written notice revoking your proxy card, or by signing, dating and submitting a new later-dated proxy card via the Internet, by

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telephone or by mail. We will honor the latest dated proxy card which has been received prior to the closing of the voting. You may also attend the meeting and vote by following the instructions available on the meeting website during the meeting.in person. If you wish to attend the annual meeting and vote your shares in person and you are the beneficial owner of your shares, you must obtain the documents required to vote your shares in person at the annual meeting from your broker or nominee. See, “How can I participate in the annual meeting?”.

Is my vote confidential?

We will maintain the confidentiality of proxy cards and other votes that identify individual stockholders unless disclosure is required by law.

Who will count the votes?

Broadridge Financial Solutions, Inc. has been appointed to receive and tabulate stockholder votes and to act as the inspector of election and certify to the election results.

Who is soliciting my vote?

The boardBoard of directorsDirectors is soliciting your vote. In addition, we retained Innisfree M&A Incorporated, a proxy solicitation firm, to solicit proxies in connection with our 20212023 annual meeting of stockholders at a total cost of approximately $20,000 plus expenses. Charter expects to solicit proxies primarily by mail, but directors, officers and other employees of Charter may also solicit in person or by internet, telephone or mail. Contact information for the proxy solicitor appears below.

Proxy Solicitor

Charter stockholders who need assistance in voting their shares or need a copy of this proxy statement should contact:

Innisfree M&A Incorporated

501 Madison Avenue, 20th20th Floor

New York City, New York 10022

Stockholders may call toll free: (888) 750-5834

Banks and brokers may call collect: (212) 750-5833

Who pays for this proxy solicitation?

The Company pays for the proxy solicitation. We will ask banks, brokers and other nominees and fiduciaries to forward the proxy material to the beneficial owners of the Class A common stock and to obtain the authority of executed proxies. We will reimburse them for their reasonable expenses.

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Where can I find the voting results of the annual meeting?

We will report the voting results on a Current Report on Form 8-K that we will file with the Securities and Exchange CommissionSEC within four business days after the date of the meeting and that we will post on our website promptly after it is filed.

 

 

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Proposal No. 1: Election of Directors

(Item 1 on Proxy Card)

The size of our boardBoard of directorsDirectors is thirteen, and we currently have thirteen members standing as nominees for election. Proxies cannot be voted for a greater number of persons than the number of nominees named. As set forth in more detail below, the Nominating and Corporate Governance Committee of the boardBoard of directors hasDirectors and the Board of Directors have determined that a majoritytwelve of theour thirteen current directors are independent.independent pursuant to NASDAQ rules.

Each of our directors is elected on an annual basis. The boardBoard of directorsDirectors is soliciting your vote for the directors to be elected at the annual meeting of stockholders. Once elected, each of the directors will hold office until his or her successor is elected, or he or she resigns or is otherwise removed.

In connection with Mr. Rutledge’s transition to the role of Executive Chairman of the Company and the Board of Directors (“Executive Chairman”) and Mr. Winfrey’s appointment as President and Chief Executive Officer effective December 1, 2022, Mr. Rutledge agreed to serve as Executive Chairman through November 30, 2023, at which time he will step down from his position as the Executive Chairman of the Company and the Board, and Mr. Winfrey will be appointed to the Board of Directors on or before December 31, 2023.

Under the Second Amended and Restated Stockholders Agreement, dated May 23, 2015, among Charter, Liberty Broadband Corporation (“Liberty Broadband”), A/N and the former Charter Communications, Inc. (the “Stockholders Agreement”), and Charter’s amended and restated certificate of incorporation, the number of Charter’s directors is fixed at thirteen. Pursuant to the Stockholders Agreement, Mr. Rutledge was also offered and accepted the role of Chairman and Chief Executive Officer (“CEO”) of the Company. Under the Stockholders Agreement, Liberty Broadband currently has the right to designate three directors as nominees for Charter’s boardBoard of directorsDirectors and A/N currently has the right to designate two directors as nominees for Charter’s boardBoard of directors.Directors. Of our current directors, Messrs. Maffei, Meyer and Nair were designated by Liberty Broadband and Messrs. Miron and Newhouse were designated by A/N.

 

THE BOARD OF DIRECTORS RECOMMENDS VOTING “FOR” THE DIRECTOR NOMINEES.

Information about the Director Nominees

The following information concerns the thirteen individuals who have been nominated by the boardBoard of directorsDirectors for election by the stockholders. Each of the following individuals currently serves as a director.

 

Directors

  Position(s)

Thomas M. Rutledge

  Chairman and Chief Executive OfficerChairman

Eric L. Zinterhofer

  Lead Independent Director

W. Lance Conn

  Director

Kim C. Goodman

  Director

Craig A. Jacobson

  Director

Gregory B. Maffei

  Director

John D. Markley, Jr.

  Director

David C. Merritt

  Director

James E. Meyer

  Director

Steven A. Miron

  Director

Balan Nair

  Director

Michael A. Newhouse

  Director

Mauricio Ramos

  Director

 

 

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Director Nominees

 

 

Thomas M. Rutledge

Executive Chairman            and Chief Executive Officer            Age:  6769            Director Since:  2012

Committees:  None

 

Biographical Information:

 

Mr. Rutledge has been the Executive Chairman of the boardCompany and the Board of directorsDirectors since December 2022, having previously served as Chairman of Charter sincethe Board from May 2016 through November 2022, and as Chief Executive Officer of the Company sincefrom February 2012.2012 through November 2022. He previously also served as President of the Company from February 2012 to July 2016 and as a director since February 2012. Prior to joining Charter, Mr. Rutledge served as Chief Operating Officer of Cablevision Systems Corporation (currently part of Altice USA, “Cablevision”) from April 2004 until December 2011. A 43-year50-year cable industry veteran, Mr. Rutledge began his career at American Television and Communications (ATC)(“ATC”), a predecessor of Time Warner Cable Inc. (“Time Warner Cable”) where he served in many different capacities, eventually becoming President of Time Warner Cable. Mr. Rutledge is Chairman of CableLabs and previously the NCTA Board – The Internet & Television Association and currently serves on the boards of NCTA, CableLabs, C-SPAN, and the Smithsonian National Cable and Telecommunications Association (“NCTA”), CableLabs and C-SPAN and formerly served as ChairmanMuseum of the NCTA.Natural History. In 2011, he received NCTA’s Vanguard Award for Distinguished Leadership, the cable industry’s highest honor. He is a member of the Cable Hall of Fame and was inducted into the Broadcasting and Cable Hall of Fame in 2011. He received a B.A. in economics from California University in California, Pennsylvania.

 

Skills and Qualifications:

 

Mr. Rutledge’s qualifications to sit on Charter’s boardBoard include his many years of experience as an executive in the telecommunications industry, including as our Chief Executive Officer since 2012.through November 2022. Mr. Rutledge is responsible for setting and executing the goals and strategies related to our business and provides the boardBoard not only with a knowledge of our day-to-day operations, but also with the essential experience, insight and expertise that can be provided only by a person who is intimately involved in running our business.

 

 

Eric L. Zinterhofer

Lead Independent Director                Age:  4951            Director Since:  2009

Committees:  Compensation and Benefits, Nominating and Corporate Governance, Section 162(m), Finance

 

Biographical Information:

 

Mr. Zinterhofer has been the Lead Independent Director of Charter’s boardBoard of directorsDirectors since May 2016. He was elected to the boardBoard of Charter in November 2009 and served as non-executive Chairman of the boardBoard from December 2009 through May 2016. In 2010, Mr. Zinterhofer founded Searchlight Capital Partners, L.P., a private equity firm. Previously, he served as a senior partner at Apollo Management, L.P. and was with Apollo from 1998 until May 2010. Mr. Zinterhofer is a director of Univision Holdings, Inc., Global Eagle Entertainment, Inc., Hemisphere Media Group, and Liberty Latin America Ltd. Mr. Zinterhofer previously served as a director of Global Eagle Entertainment, Inc. until 2021, Roots Corporation until 2020 and TouchTunes Interactive until 2019, Liberty Cablevision of Puerto Rico until 2018, General Communication Inc. until 2018, 160 Over Ninety LLC until 2018, Hunter Boot Limited until 2015, Integra Telecom, Inc. until 2015, and Central European Media Enterprises Ltd. until 2013.2019. Mr. Zinterhofer received B.A. degrees with Honors in Economics and European History from the University of Pennsylvania and received an M.B.A. from Harvard Business School.

 

Skills and Qualifications:

 

Mr. Zinterhofer’s qualifications to sit on Charter’s boardBoard include his extensive background in banking and investment industries and his particular knowledge and experience as a financial advisor and investor in the telecommunications industries. This knowledge and experience contributes to the board’sBoard’s evaluation of financing opportunities and strategies and consideration of our capital structure, budgets and business plans, provide insight into other company board practices and strengthens the board’sBoard’s collective qualifications, skills and attributes.

 

 

 

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W. Lance Conn

Independent Director            Age:  5254            Director Since:  2004

Committees:  Compensation and Benefits (Chair), Section 162(m), Finance

 

Biographical Information:

 

Mr. Conn has served on the board of directors of Charter since September 2004. Mr. Conn is a businessman, investor and conservationist. From July 2004 to May 2009, Mr. Conn served as the President of Vulcan Capital, the investment arm of Vulcan, Inc. Prior to Vulcan, Mr. Conn was employed by America Online, Inc. from March 1996 to May 2003. From September 1994 to February 1996, Mr. Conn was an attorney with Shaw, Pittman, Potts & Trowbridge LLP in Washington, D.C. Mr. Conn was previously a director of Plains All American Pipeline, L.P. and Vulcan Energy Corporation, where he served as chairman. Mr. Conn also previously served as a director of the Seattle Seahawks, the Portland Trailblazers and Oxygen Media, and as an advisor to Makena Capital Management and Global Endowment Management. Mr. Conn holds a J.D. degree from the University of Virginia, a M.A. degree in history from the University of Mississippi and a B.A. degree in history from Princeton University.

 

Skills and Qualifications:

 

Mr. Conn’s qualifications to sit on Charter’s boardBoard include his extensive experience in the media and telecommunications industries, his experience in the investment industry and his knowledge of Charter gained from his long-term service as a director.

 

 

Kim C. Goodman

Independent Director            Age:  5557            Director Since:  2016

Committees:  Audit

 

Biographical Information:

 

Ms. Goodman was electedis Chief Executive Officer of Smarsh, Inc., a global leader in digital communications compliance and intelligence. Prior to the board of directors of Charter in July 2016.joining Smarsh, Ms. Goodman serves aswas President, Payments and Risk Solutions of Fiserv, Inc., a leading global provider of financial services and technology solutions. While at Fiserv, Ms. Goodman joined Fiserv in 2018 as Head of Card Services, and thenalso served as Head of Merchant Joint Ventures and Acquirer Processing before assuming her current role.and Head of Card Services. Prior to Fiserv, Ms. Goodman was Chief Executive Officer of Worldpay US, following seven years at American Express (AMEX), where she served as president of its Global Business Travel and Merchant Services Americas units. Prior to joining AMEX, she held executive leadership roles at Dell Inc. in Software and Peripherals, Marketing and Transactional Sales and Dell Networking. Ms. Goodman began her career in management consulting with Bain & Company, where she ascended to the role of partner. Ms. Goodman previously served as a director of Alcatel-Lucent SA, Brocade Communications Systems, and National Life Insurance Company. A graduate of Stanford University with a Master of Science in Industrial Engineering and Bachelor of Arts in Political Science, Ms. Goodman also earned a Master of Business Administration from Harvard Business School where she was a Baker Scholar.

 

Skills and Qualifications:

 

Ms. Goodman’s qualifications to sit on Charter’s boardBoard include her experience in software, networking, financial services and customer service, her experience serving on other public company boards, as well as her experience in executive leadership roles at Smarsh, Fiserv, Worldpay US and AMEX and previous senior leadership positions in both software and networking at Dell Inc.

 

 

 

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Craig A. Jacobson

Independent Director            Age:  6870            Director Since:  2010

Committees:  Nominating and Corporate Governance

 

Biographical Information:

 

Mr. Jacobson is a founding partner at the law firm of Hansen, Jacobson, Teller, Hoberman, Newman, Warren, Richman, Rush, Kaller, Gellman, Meigs & Gellman,Fox, L.L.P., where he has practiced entertainment law for the past 3235 years. Mr. Jacobson is a member of the board of directors of Expedia, Inc., Oaktree Strategic Income Corporation (OCSIC) and Oaktree Specialty Lending Corporation (OCSLC)(“OCSLC”). Mr. Jacobson was a director of Ticketmaster from August 2008 until its merger with Live Nation Entertainment Company in January 2010 and a director of Tribune Media Company from December 2012 until its sale in 2019. Mr. Jacobson was also a director of Oaktree Strategic Income Corporation (“OCSIC”) from October 2017 until its merger with OCSLC in 2021. Mr. Jacobson received a Bachelor of Arts degree from Brown University, where he was a member of Phi Beta Kappa, and his J.D.Juris Doctor degree with Honors from George Washington University School of Law.

 

Skills and Qualifications:

 

Mr. Jacobson’s qualifications to sit on Charter’s boardBoard include his experience with the creative and business aspects of the cable television industry, his previous public and private company board experience, and his understanding of the media industry, including the motion picture, television and digital businesses. Mr. Jacobson also has extensive legal and business knowledge and experience in corporate governance matters as well as significant financial knowledge gained during his thirty years practicing law and advising media companies.

 

 

Gregory B. Maffei

Independent Director            Age:  6062            Director Since:  2013

Committees:  Compensation and Benefits, Finance

 

Biographical Information:

 

Mr. Maffei has served as the President and Chief Executive Officer and a director of Liberty Media Corporation (including its predecessor, Liberty Media) since May 2007, Liberty Broadband Corporation (Liberty Broadband) since June 2014 and Liberty Media Acquisition Corporation since November 2020. He has served as Chairman of the Board of Liberty TripAdvisor Holdings, Inc. since June 2015 and as a director and the President and Chief Executive Officer since July 2013. He has served as the Chairman of the Board of Qurate Retail, Inc. (formerly named Liberty MediaInteractive Corporation, Qurate Retail) since March 2018 and as a director of Qurate Retail (including its predecessor) since May 2007 and Liberty Broadband Corporation since June 2014 (a stockholder of Charter, since its spinoff from Liberty Media Corporation (“Liberty Media”) in November 2014). He has served as a director, the President and Chief Executive Officer of Liberty TripAdvisor Holdings, Inc. since July 2013 and as its Chairman of the Board since June 2015.2005. Mr. Maffei also served as the President and Chief Executive Officer of Qurate Retail Inc., which was formerly known as Liberty Interactive Corporation (including its predecessor), from February 2006 to March 2018, having served as its CEO-Elect from November 2005 through February 2006, and a director and2006. Mr. Maffei also served as the President and Chief Executive Officer and a director of GCI Liberty, Inc. from March 2018 tountil December 2020. Prior to his service with Liberty Media and its affiliates,thereto, Mr. Maffei served as the President and Chief Financial Officer of Oracle Corporation, Chairman of the Board, President and Chief Executive Officer of 360networks Corporation, and Chief Financial Officer of Microsoft Corporation. Mr. Maffei has served as (i) Chairman of the Board of Qurate Retail, Inc. since March 2018 and a director since November 2005, (ii) the Chairman of the Board of Liberty TripAdvisor Holdings,Tripadvisor, Inc. since June 2015 and a director since JulyFebruary 2013, (iii)(ii) the Chairman of the Board of Live Nation Entertainment, Inc. since March 2013 and as a director since February 2011, (iv) the Chairman of the Board of Tripadvisor, Inc. since February 2013, (v)(iii) the Chairman of the Board of Sirius XM Holdings Inc. since April 2013 and as a director since March 2009;2009 and (vi)(iv) a director of Zillow Group, Inc. since February 2015, having previously served as a director of its predecessor, Zillow, Inc., from May 2005 to February 2015. He previouslyMr. Maffei served as (i) a director of DIRECTV andGCI Liberty from March 2018 until its predecessors from February 2008 to June 2010;December 2020 combination with Liberty Broadband, (ii) a director of Electronic Arts, Inc. from June 2003 to June 2013; (iii) a director of Barnes & Noble, Inc. from September 2011 to April 2014; (iv) Chairman of the Board of Starz from January 2013 until its acquisition by Lions Gate Entertainment Corp. in December 2016;2016, (iii) a director of Barnes & Noble. Inc. from September 2011 to April 2014, (iv) a director of Electronic Arts, Inc. from June 2003 to July 2013, (v) a director of DIRECTV and (v)its predecessors from February 2008 to June 2010 and (vi) the Chairman of the Board of Pandora Media, Inc. from September 2017 to February 2019. Mr. Maffei is a member of the Board of Trustees of Dartmouth College and the Council on Foreign Relations. Mr. Maffei has an M.B.A. from Harvard Business School, where he was a Baker Scholar, and a B.A. from Dartmouth College.

 

Skills and Qualifications:

 

Mr. Maffei’s qualifications to sit on Charter’s boardBoard include his significant financial and operational experience based on his current senior policy making positions at the Liberty companies described above and his previous executive positions at Oracle Corporation, 360networks and Microsoft. In addition, Mr. Maffei has extensive public company board experience. He provides our boardBoard with an executive leadership perspective on the strategic planning for, and operations and management of, large public companies and risk management principles.

 

 

 

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John D. Markley, Jr.

Independent Director            Age:  5557            Director Since:  2009

Committees:  Nominating and Governance (Chair), Audit

 

Biographical Information:

 

Mr. Markley is Managing Director of Bear Creek Capital, an investment firm focused on public and private companies in the communications, media and technology industries. Mr. Markley also is a partner at New Amsterdam Growth Capital. From 1996 to 2009, Mr. Markley was a partner at Columbia Capital, a venture capital firm, where he served on the board of numerous private companies. Mr. Markley is a director of Interdigital, Inc. where he serves as the Chair of its governance committee and member of its auditcompensation committee. Mr. Markley previously served as Chairman of the Board of BroadSoft, Inc. until its acquisition by Cisco Systems, Inc. in February 2018 where he also served on the compensation committee, and as a director of Millennial Media, Inc. from July 2006 to May 2014. MrMr. Markley also is currently a director of numerous private companies in the communications, media and technology industries. Mr. Markley received a B.A. degree from Washington & Lee University and an M.B.A degree from Harvard Business School.

 

Skills and Qualifications:

 

Mr. Markley’s qualifications to sit on Charter’s boardBoard include his private equity and operating experience and his extensive experience with communications, media and technology companies, which allow him to contribute guidance and advice relating to the development and execution of the company’s strategy and analysis of potential business opportunities.

 

 

David C. Merritt

Independent Director            Age:  6668            Director Since:  2003

Committees:  Audit (Chair), Finance

 

Biographical Information:

 

Mr. Merritt is a private investor and consultant. From March 2009 to December 2013, he served as the president of BC Partners, Inc., a financial advisory firm. From October 2007 to March 2009, Mr. Merritt served as Senior Vice President and Chief Financial Officer of iCRETE, LLC. From 1985 to 1999, Mr. Merritt was an audit and consulting partner of KPMG serving in a variety of capacities during his years with the firm, including national partner in charge of the media and entertainment practice. Mr. Merritt sits on the board of directors and Audit Committee of Taylor Morrison Home Corporation. Mr. Merritt previously served as a director and as the Chairman of the Audit Committee of Calpine Corporation until March 2018. He was also a director of Buffet Restaurants Holdings, Inc. until August 2015 and he served as a director of Outdoor Holdings, Inc. until May 2013. Mr. Merritt holds a B.S. degree in Business and Accounting from California State University — Northridge.

 

Skills and Qualifications:

 

Mr. Merritt’s qualifications to sit on Charter’s boardBoard include his many years of experience as an audit and consulting partner with a major accounting firm, as a director and audit committee member, and in the media industry. As a seasoned director and audit committee chair with extensive accounting, financial reporting and audit committee experience, Mr. Merritt brings a strong background in leadership, governance and corporate finance to our board.Board.

 

 

 

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James E. Meyer

Independent Director            Age:  6668            Director Since:  2018

Committees:  Nominating and Corporate Governance

 

Biographical Information:

 

Mr. Meyer served as Chief Executive Officer of Sirius XM Holdings Inc. (“Sirius XM”), an audio entertainment provider, from December 2012 until his retirement on December 31, 2020. Mr. Meyer has been a director of Sirius XM since 2013 and is currently serving as Vice Chairman of the Sirius XM board. Previously, Mr. Meyer was the President, Operations and Sales, of Sirius XM. Prior to joining Sirius XM in May 2004, Mr. Meyer was the President of Aegis Ventures, a general management consulting company. Before Aegis, he held a number of senior management positions in consumer electronics over a 25 year period, including as the Senior Executive Vice President of Digital Media Solutions of Thomson, a worldwide leader in consumer electronics. Prior to joining Thomson, Mr. Meyer held senior management positions at General Electric and RCA. Mr. Meyer served as Chairman of the Board of Directors and a director of TiVo Corporation (and Rovi Corporation prior to its merger with TiVo Corporation) until 2020 and served as a director of Pandora Media, Inc. until 2019. Mr. Meyer holds an M.B.A. and an undergraduate degree in economics, both from St. Bonaventure University.

 

Skills and Qualifications:

 

Mr. Meyer’s qualifications to sit on Charter’s boardBoard include his expertise in media and business and his extensive managerial experience. Mr. Meyer brings to our boardBoard demonstrated management ability at senior levels and critical industry, technology and operational insights.

 

 

Steven A. Miron

Independent Director            Age:  5456            Director Since:  2016

Committees:  Compensation and Benefits

 

Biographical Information:

 

Mr. Miron is the Chief Executive Officer of Advance/Newhouse Partnership, a privately heldprivately-held media company headquartered in Syracuse, New York and a senior executive officer at Advance, a private, family-held business that owns and invests in companies across media, entertainment, technology, communications, education and other promising growth sectors. Advance’s portfolio includes Condé Nast, which produces high quality content in a variety of media formats, including print, digital and video, for global audiences; Advance Local, one ofwhich operates America’s largestleading local digital media groups as well as software and data platforms, and marketing groups operating in 20 cities;agencies; Stage Entertainment, one of the world’s leading producers of musical theatre, operating a network of 1716 premier theatres across continental Europe; The IRONMAN Group, the world’s largest mass participation sports platform; American City Business Journals, the largest publisher of local business news, information and events in the United States, covering 44 cities; Leaders Group, a global business intelligence platform for sports and gaming professionals; Turnitin, a leading provider of educational technology to promote academic integrity, streamline grading and feedback and improve educational outcomes; 1010data, a leading provider of cloud-based data analytics; and POP, a digital marketing agency. Advance holds an approximatelyapproximate 13% interest in Charter and is among the largest shareholders in Warner Bros. Discovery, Inc., which provides cable television channels and programming in 220 countries and territories, and Reddit. Mr. Miron previously served as President of Bright House Networks from July 2002 to May 2008 and as Chief Executive Officer from May 2008 until May 2016, when Bright House Networks was acquired by Charter. Mr. Miron currently serves as a director of Warner Bros. Discovery, Inc. and C-SPAN and was previously a member of the boardBoard of directorsDirectors ofC-SPAN, the National Cable & Telecommunications Association and CableLabs. Mr. Miron also currently serves on the Crouse Health Foundation Board of Trustees and the Board of Directors for the Jewish Community Foundation of Central New York. He previously served for several years on the Board of Directors and executive committee for CTAM and the BoardBoards of Directors for Emma Bowen Foundation, and CTAM Educational Foundation.Foundation, Crouse Health Foundation and the Jewish Community Foundation of Central New York. Mr. Miron is a graduate of American University.

 

Skills and Qualifications:

 

Mr. Miron’s qualifications to sit on Charter’s boardBoard include his extensive experience as a cable television executive and his experience in the media and technology industries. Mr. Miron has developed a deep understanding of our industry and his expertise in the cable television industry makes him a valued presence on our board.Board.

 

 

 

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Balan Nair

Independent Director            Age:  5456            Director Since:  2013

Committees: None

 

Biographical Information:

 

Mr. Nair is President and Chief Executive Officer and a director of Liberty Latin America, Ltd., an integrated telecommunications company focused on the Caribbean Islands and Latin America. Mr. Nair is an experienced and proven business executive with more than 20 years in the telecommunications industry. He has been a part of the Liberty family of companies since 2007, when he joined Liberty Global as its Senior Vice President and Chief Technology Officer. He most recently served as Executive Vice President and Chief Technology and Innovation Officer. In this role, he was responsible for overseeing Liberty Global’s worldwide network, as well as Technology and Innovation operations, including Product Development, IT, Network Operations, Mobile Operations and Global Supply Chain functions. He was also responsible for Corporate Strategy and Venture investments. Mr. Nair was an executive officer of Liberty Global and sat on Liberty Global’s Executive Leadership Team and the Investment Committee. Prior to joining Liberty Global, from December 2006 to June 2007, Mr. Nair served as Chief Technology Officer and Executive Vice President for AOL LLC, a global web services company. Prior to his role at AOL, he spent more than 12 years at Qwest Communications International Inc., most recently as Chief Information Officer and Chief Technology Officer. Mr. Nair sits on the board of directors and compensation committee of Adtran Corporation. Mr. Nair previously served as a director of Telenet Group Holding, N.V., which trades on EN Brussels. He holds a patent in systems development and is a Licensed Professional Engineer in Colorado. Mr. Nair holds an M.B.A. and a B.S. in electrical engineering, both from Iowa State University.

 

Skills and Qualifications:

 

Mr. Nair’s qualifications to sit on Charter’s boardBoard include his significant executive experience in building, integrating and managing technology businesses and his in-depth knowledge of all aspects of technology for delivering telecommunications systems.

 

Michael A. Newhouse

Independent Director            Age:  6163            Director Since:  2016

Committees:  Nominating and Corporate Governance, Finance

 

Biographical Information:

 

Mr. Newhouse is a co-president at Advance, a private, family-held business that owns and invests in companies across media, entertainment, technology, communications, education and other promising growth sectors. Advance’s portfolio includes Condé Nast, which produces high quality content in a variety of media formats, including print, digital and video, for global audiences; Advance Local, one ofwhich operates America’s largestleading local digital media groups as well as software and data platforms, and marketing groups operating in 20 cities;agencies; Stage Entertainment, one of the world’s leading producers of musical theatre, operating a network of 1716 premier theatres across continental Europe; The IRONMAN Group, the world’s largest mass participation sports platform; American City Business Journals, the largest publisher of local business news, information and events in the United States, covering 44 cities; Leaders Group, a global business intelligence platform for sports and gaming professionals; Turnitin, a leading provider of educational technology to promote academic integrity, streamline grading and feedback and improve educational outcomes; 1010data, a leading provider of cloud-basedcloud based data analytics; and POP, a digital marketing agency. Advance holds an approximatelyapproximate 13% interest in Charter and is among the largest shareholders in Warner Bros. Discovery, Inc., which provides cable television channels and programming in 220 countries and territories,Reddit, and Reddit. Mr. Newhouse is a graduate of Tufts University.

 

Skills and Qualifications:

 

Mr. Newhouse’s qualifications to sit on Charter’s boardBoard include his extensive experience in the cable television, media and technology industries. Mr. Newhouse has developed a deep understanding of our industry and his expertise in the cable television industry makes him a valued member of our board.Board.

 

 

 

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Mauricio Ramos

Independent Director            Age:  5254            Director Since:  2016

Committees:  Compensation and Benefits

 

Mr. Ramos has been the Chief Executive Officer of Millicom International Cellular S.A. (“Millicom”), a Luxembourg public liability company traded on the Stockholm and U.S. NASDAQ stock exchange since April 2015 and was elected as an Executive Director in June 2020. Millicom is a leading telecommunications and media company dedicated to emerging markets in Latin America and Africa. Before joining Millicom, he was President of Liberty Global’s Latin American division, a position he held from 2006 until February 2015. During his career at Liberty Global, Mr. Ramos held several leadership roles, including positions as Chairman and CEO of VTR in Chile and President of Liberty Puerto Rico. Throughout this period he has successfully developed both mobile and broadband businesses in Latin America, delivering solid operational improvement and outstanding financial results. In 2021 Mr. Ramos previously servedwas elected as ChairmanChair of the Board of TEPAL, the Latin American Association of Cable Broadband OperatorsU.S. Chamber’s U.S. Colombia Business Council (“USCBC”) and he also previouslyjoined the Broadband Commission for Sustainable Development as a Commissioner and the INCAE business school Presidential Advisory Council. He is also the Chair of the Digital Communications Industry Community of the World Economic Forum. Mr. Ramos sat on the GSMA Board of Directors from 2017-2019. He has also served as memberDirector of the board of directorsBiennal of the GSMA.Americas from 2012 to 2015, Director of Columbus Networks from 2013 to 2014, and Director of the American Chamber of Commerce in Chile from 2007-2011, among various other roles. He is a citizen of the United States and Colombia and received a degree in Economics, a degree in Law, and a postgraduate degree in Financial Law from Universidad de los Andes in Bogota.

 

Skills and Qualifications:

 

Mr. Ramos’ qualifications to sit on Charter’s boardBoard include his significant executive experience in the telecommunications and media industries. His experience in these areas as well as his experience developing both mobile and broadband businesses make him a valued member of our board.Board.

 

Board of Directors and Committees of the Board of Directors

Our boardBoard of directorsDirectors meets regularly throughout the year on an established schedule. The boardBoard also holds special meetings and executive sessions and acts by written consent from time to time as necessary. The Company held an annual stockholders’ meeting in 2020,2022, which all of the directors attended. Members of the boardBoard of directorsDirectors are encouraged to attend the annual meeting each year. In 2020,2022, the full boardBoard of directorsDirectors held thirteensixteen meetings and acted twothree times by unanimous written consent. All directors attended 75% or more of the aggregate meetings of the boardBoard and of the boardBoard committees on which they served during 2020.2022.

The boardBoard of directorsDirectors delegates authority to act with respect to certain matters to boardBoard committees whose members are appointed by the boardBoard of directors.Directors. The current standing committees of the boardBoard of directorsDirectors are the following: Audit Committee, Compensation and Benefits Committee, Nominating and Corporate Governance Committee, Section 162(m) Committee and Finance Committee. The Audit, Compensation and Benefits, Nominating and Governance and Finance Committees each have a charter that is available on the “Investor Relations” section of our website at ir.charter.com.ir.charter.com.

Charter’s Audit Committee is responsible for overseeing the Company’s accounting and financial reporting processes and the audits of the Company’s financial statements, reviewing the work of the independent registered public accounting firm (including resolution of disagreements between management and the public accounting firm regarding financial reporting) for the purpose of preparing or issuing an audit report or performing other audit, review or attest services and reviewing our risk management program. During 2020,2022, the Audit Committee members consisted of Messrs. Merritt and Markley and Ms. Goodman. Mr. Merritt is Chairman of the Audit Committee. Charter’s boardBoard of directorsDirectors has determined that, in its judgment, Mr. Merritt is an audit committee financial expert within the meaning of the applicable federal regulations. All members of the Audit Committee were determined by the boardBoard of directorsDirectors in 20202022 to be independent in accordance with the listing standards of NASDAQ and Rule 10A-3 of the Securities Exchange Act of 1934, as amended.amended (the “Exchange Act”). The Audit Committee met four times in 2020.2022.

The Compensation and Benefits Committee reviews and approves the compensation of the senior management of the Company. During 2020,2022, Messrs. Conn, Maffei, Miron, Ramos and Zinterhofer served on the Compensation and Benefits Committee. Mr. Conn served as the Chairman of the Compensation and Benefits Committee during 2020.2022. All members of the Compensation and Benefits Committee were determined by the boardBoard of directorsDirectors in 20202022 to be independent in accordance with the listing standards of NASDAQ and Rule 10C of the Securities Exchange Act of 1934, as amended.Act. The Compensation and Benefits Committee met sevensix times and acted two times by unanimous written consent during 2020.2022.

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The Nominating and Corporate Governance Committee oversees corporate governance, including recommending boardBoard and committee nominations, overseeing the Corporate Governance Guidelines, reviewing and reporting to the boardBoard as to director

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independence and overseeing environmental, social and governance matters. The Nominating and Corporate Governance Committee considers director candidates proposed by stockholders if adequate information is submitted in a timely manner (see “Nomination and Qualifications of Directors” below). During 2020,2022, Messrs. Markley, Jacobson, Meyer, Jacobson, Newhouse and Zinterhofer served on the Nominating and Corporate Governance Committee. Mr. Markley is the Chairman of the Nominating and Corporate Governance Committee. All members of the Nominating and Corporate Governance Committee were determined by the boardBoard in 20202022 to be independent in accordance with the listing standards of NASDAQ. The Nominating and Corporate Governance Committee considers candidates proposed by stockholders if adequate information is submitted in a timely manner (see “Nomination and Qualifications of Directors” below). The Nominating and Corporate Governance Committee met four times in 2020.

The Section 162(m) Committee reviews the Company’s compensation for purposes of qualifying as performance-related compensation and thus meeting the provisions under Internal Revenue Code Section 162(m) for deductibility. In 2020, the Section 162(m) Committee was comprised of Messrs. Conn and Zinterhofer. In 2020, this committee acted four times by unanimous written consent.2022.

The Finance Committee reviews the Company’s financing activities and approves the terms and conditions of certain financing transactions, in consultation with the Company’s legal and financial advisors. During 2020,2022, Messrs. Conn, Maffei, Merritt, Newhouse and Zinterhofer served on the Finance Committee. The Finance Committee met once and acted eight times by unanimous written consent during 2020.

In addition to the standing committees described above, from time to time, the boardBoard of directorsDirectors may create “ad hoc” committees for specific projects or transactions. Ad hoc committees acted by written consent during 2022 related to the Company’s stock buyback arrangements with each of A/N and Liberty Broadband.

The Company’s Nominating and Corporate Governance Committee of the board of directors and the boardBoard of directorsDirectors have determined that a majority of the thirteen current directors are independent. The Nominating and Corporate Governance Committee and the boardBoard of directorsDirectors have specifically determined that Ms. Goodman and Messrs. Conn, Jacobson, Markley, Merritt, Ramos and Zinterhofer are independent directors under NASDAQ rules. The Nominating and Corporate Governance Committee and the boardBoard of directorsDirectors also determined that Messrs. Maffei, Meyer and Nair are independent under the NASDAQ rules; however, due to their statusdesignation as nominees by, or relationship with, Liberty Broadband, a stockholder of the Company, they wouldmay not be considered independent under SEC rules for Audit Committee membership purposes. Similarly, the Nominating and Corporate Governance Committee and the boardBoard of directorsDirectors determined that Messrs. Miron and Newhouse are independent under the NASDAQ rules; however, due to their statusdesignation as nominees by, or relationship with, A/N, a stockholder of the Company, they wouldmay not be considered independent under SEC rules for Audit Committee membership purposes. The Nominating and Corporate Governance Committee and the boardBoard of directorsDirectors further determined that Messrs. Maffei, Meyer, Miron, Nair and Newhouse’s statusdesignation as nominees by, or relationship with, a stockholder of the Company does not prohibit a finding of independence under SEC rules and NASDAQ Rule 5605(d)(2) for Compensation and Benefits Committee membership purposes. Mr. Rutledge is the Executive Chairman and CEO of the Company and is thus not independent.independent for NASDAQ Rule purposes as an executive officer of the Company.

Nomination and Qualifications of Directors

Candidates for director are nominated by the boardBoard of directors,Directors, based on the recommendation of the Nominating and Corporate Governance Committee and subject to certain requirements under the Stockholders Agreement. Charter’s Corporate Governance Guidelines provide that, among other things, candidates for new boardBoard membership to be considered by Charter’s boardBoard of directorsDirectors should be individuals from diverse business and professional backgrounds with unquestioned high ethical standards and professional achievement, knowledge and experience. The Corporate Governance Guidelines provide that a candidate’s contribution of diversity to the boardBoard of directorsDirectors (based on common factors associated with diversity such as gender, race/ethnicity and other background characteristics that enhance the diversity of the board)Board) will be one of the many elements to be considered in evaluating candidates. Further, the boardBoard of directorsDirectors and the Nominating and Corporate Governance Committee believe that it is important that boardBoard members represent diverse viewpoints. In considering candidates for the boardBoard of directors,Directors, the Nominating and Corporate Governance Committee considers the entirety of each candidate’s credentials in the context of these standards. In addition, director candidates must be individuals with the time and commitment necessary to perform the duties of a boardBoard member and other special skills that complement or supplement the skill sets of current directors.

We believe that the boardBoard of directorsDirectors is comprised of an effective mix of experience, backgrounds, knowledge, and skills, including the following:

 

Nine directors have experience and demonstrated expertise in managing large, complex organizations, such as serving as CEOs or next-level executives of a significant company or organization;

Nine directors have experience and demonstrated expertise in managing large, complex organizations, such as serving as CEOs or next-level executives of a significant company or organization;

Four directors have significant financial, accounting or other risk management expertise;

 

 

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Four directors have significant financial, accounting or other risk management expertise;

Two directors have significant technology and product development experience; and

 

Two directors have significant technology and product development experience; and

Eleven directors have experience on one or more boards of other significant public or nonprofit organizations.

Eleven directors have experience on one or more boards of other significant public or nonprofit organizations.

In addition, we believe that all of our directors have the following attributes that positively contribute to our boardBoard of directors:Directors:

 

Experience with video, internet, telephone, wireless or media businesses;

Experience with video, internet, telephone, wireless or media businesses;

 

Experience with significant transactions, including financings, investments and acquisitions;

Experience with significant transactions, including financings, investments and acquisitions;

 

Judgment, skill, integrity and reputation; and

Judgment, skill, integrity and reputation; and

 

Diversity of life experiences and backgrounds, as well as gender and ethnic diversity.

Diversity of life experiences and backgrounds, as well as gender and ethnic diversity.

In January 2016, Charter entered into a memorandum of understanding (the “MOU”) with leaders of several leading national civic organizations that took effect upon the closing of the Transactions (as defined below). The MOU identifies specific diversity initiatives and establishes a plan of action to guide the collaborative efforts of the Company and a wide array of diverse civic and leadership organizations. As part of the MOU, Charter committed to a number of concrete actions, including appointing at least oneAt this time, our Board includes an African American onewoman, an Asian American/Pacific Islander and onea Latino AmericanAmerican. In 2022, the Nominating and Corporate Governance Committee continued to develop its newly formedpipe-line of potential diverse director candidates in the event an opening occurs on the Board of Directors, with the expectation and plan that the next opening would be filled by a woman candidate with the exception of a Liberty Broadband or A/N nominee or the Company’s Chief Executive Officer.

In recent years, some investors have expressed concerns about the number of outside public company boards that certain highly sought-after directors serve on. The Nominating and Corporate Governance Committee considers all aspects of each director’s contributions, skills and dedication to ensure that each remains an effective director for the Company. The Board realizes that Mr. Maffei, a director on the board and President and Chief Executive Officer of directors within two yearsLiberty Broadband, also sits on the boards of several other companies in which Liberty Broadband has an investment or a management relationship, as well as the closeboards of other companies, as more fully discussed in his biographical information above. The Nominating and Corporate Governance Committee has thoroughly evaluated Mr. Maffei’s role in and contributions to the Transactions. Charter has met this commitment.Board, including the significant time and attention he dedicates to the Company, his outside board commitments (which primarily relate to his role with Liberty Broadband and affiliated companies), the overlaps between his service on outside boards and our Board, and Mr. Maffei’s considerable knowledge and experience in the industry. The Nominating and Corporate Governance Committee concluded that Mr. Maffei’s service on outside boards improves, rather than detracts from, his service on the Company’s Board and firmly believes that he will continue to provide the Company with the necessary time and attention to make him an effective director.

Stockholders may nominate persons to be directors by following the procedures set forth in our Bylaws. These procedures require the stockholder to deliver timely notice to the Corporate Secretary at our principal executive offices. That notice must contain the information required by the Bylaws about the stockholder proposing the nominee and about the nominee. No stockholder nominees have been proposed for this year’s meeting.

Stockholders also are free to suggest persons directly to the boardBoard of directorsDirectors for the Board to consider as nominees. The boardBoard of directorsDirectors will consider those individuals if adequate information is submitted in a timely manner (see “Stockholder Proposals for 20222024 Annual Meeting” below for deadline requirements) in writing to the boardBoard of directorsDirectors at the Company’s principal executive offices, in care of the General Counsel.

In July 2018, Dr. John C. Malone retired from the boardBoard of directors,Directors, but continues to serve as a director emeritus. As a director emeritus, Dr. Malone continues to attend board of directorBoard meetings, but does not have a vote on matters presented. Dr. Malone previously served on the boardBoard of directorsDirectors as a designee of Liberty Broadband under the terms of the Stockholders Agreement.

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Board Diversity Matrix

The table below provides certain information with respect to the composition of Charter’s Board of Directors. Each of the categories listed in the table has the meaning ascribed to it in NASDAQ Listing Rule 5605(f).

Board Diversity Matrix (as of January 24, 2023)

 

Total Number of Directors:

  13   
   Female   Male   Non-Binary   

Did Not  
Disclose  
Gender  
 
 
 
 

Part I: Gender Identity

 

   

Directors

  1   12         
 

Part II: Demographic Background

 

   

African American or Black

  1             
   

Alaskan Native or Native American

                
   

Asian

      1         
   

Hispanic or Latinx

      1         
   

Native Hawaiian or Pacific Islander

                
   

White

      10         
   

Two or More Races or Ethnicities

                
  

LGBTQ

  0   
  

Did Not Disclose Demographic Background

  0   

Governance Impacts of TWC and Bright House TransactionsUnder the Stockholders Agreement

On May 23, 2015, the Company entered into an Agreement and Plan of Mergers (the “Merger Agreement”) with the company formerly known as Charter Communications, Inc. (“Legacy Charter”), Time Warner Cable Inc. (“Legacy TWC”), and certain other subsidiary entities, pursuant to which the parties engaged in a series of transactions that resulted in Legacy Charter and Legacy TWC becoming wholly owned subsidiaries of Charter (the “TWC Transaction”), on the terms and subject to the conditions set forth in the Merger Agreement. After giving effect to the TWC Transaction, Charter became the new public company parent that holds the operations of the combined companies.

On March 31, 2015, the Company entered into a definitive Contribution Agreement (the “Contribution Agreement”), which was amended on May 23, 2015 in connection with the execution of the Merger Agreement, with A/N, A/NPC Holdings LLC, Legacy Charter and Charter Communications Holdings, LLC (“Charter Holdings”), pursuant to which the Company became the owner of the membership interests in Bright House Networks, LLC (“Bright House”) and any other assets (other than certain excluded assets and liabilities and non-operating cash) primarily related to Bright House (the “Bright House Transaction,” and together with the TWC Transaction, the “Transactions”).

In connection with the Transactions, on May 23, 2015, Charter entered into the Amended and Restated Stockholders Agreement with Liberty Broadband Corporation (“Liberty Broadband”), A/N and Legacy Charter and the Charter Holdings Limited Liability Operating Agreement (“LLC Agreement”) with Liberty Broadband and A/N.on May 23, 2015. Under the Stockholders Agreement, Liberty Broadband has designated Messrs. Maffei, Meyer and Nair as director nominees and A/N has designated Messrs. Miron and Newhouse as director nominees.

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Under the terms of the Stockholders Agreement and Charter’s amended and restated certificate of incorporation, the number of Charter’s directors is fixed at thirteen. Pursuant to the Stockholders Agreement, Mr. Rutledge was also offered and accepted the role of Chairman and CEO of the Company. Two designees selected by A/N are members of the boardBoard of directorsDirectors of Charter and three designees selected by Liberty Broadband are members of the boardBoard of directorsDirectors of Charter. The remaining eight directors are not affiliated withdesignated by either A/N or Liberty Broadband. Each of A/N and Liberty Broadband is entitled to designate at least one director to each of the committees of Charter’s boardBoard of directors,Directors, subject to applicable stock exchange listing rules and certain specified voting or equity ownership thresholds for each of A/N and Liberty Broadband, and provided that the Nominating and Corporate Governance Committee and the Compensation and BenefitBenefits Committee each have at least a majority of directors independent from A/N, Liberty Broadband and the Company (referred to as the “unaffiliated directors”).Company. Each of the Nominating and Corporate Governance Committee and the Compensation and Benefits Committee is currently comprised of three unaffiliated directors not

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designated by either A/N or Liberty Broadband and one designee of each of A/N and Liberty Broadband. Neither A/N nor Liberty Broadband has designated a director to serve on the Audit Committee, that meets applicable stock exchange listing rules, but each has designated a director to serve in an observer role on the Audit Committee. A/N and Liberty Broadband also have certain other committee designation and other governance rights. Upon the closing of the Transactions, Mr. Rutledge, the Company’s CEO, became the Chairman of the board of Charter.

Under the Stockholders Agreement, Liberty Broadband and A/N are required to vote (subject to the applicable voting cap) their respective shares of Charter Class A common stock and Charter Class B common stock for the director nominees nominated by the nominatingNominating and corporate governance committeeCorporate Governance Committee of the boardBoard of directors,Directors, including the respective designees of Liberty Broadband and A/N, and against any other nominees, except that, with respect to the unaffiliated directors not designated by either A/N or Liberty Broadband, Liberty Broadband and A/N must instead vote in the same proportion as the voting securities are voted by stockholders other than A/N and Liberty Broadband or any group which includes any of them are voted, if doing so would cause a different outcome with respect to the unaffiliatedany such directors.

Board Leadership Structure, Company Strategy and Risk Oversight

Mr. Rutledge is the Executive Chairman of the board of directors and Mr. Zinterhofer is the Lead Independent Director. AlthoughMr. Winfrey, the Company previously separated the roles of CEO and Chairman of the board, in connection with the negotiation of the Transactions, the Company determined that it was in the best interest of the combined company to combine the roles. The ChairmanPresident and CEO, is responsible for setting the strategic direction for the Company in consultation and with the necessary approvals of the Board of Directors, and is responsible for the day to day leadership and performance of the Company, while theCompany.

The Lead Independent Director consults with the Executive Chairman, and CEO and presides over meetings of the boardBoard of directorsDirectors when the Executive Chairman and CEO is not present as well as providingand executive sessions of independent directors, and provides leadership for the non- A/non-A/N and non- Libertynon-Liberty Broadband directors. The Lead Independent Director serves as a liaison between the independent directors and the Executive Chairman and the President and CEO and has authority to call meetings of the independent directors. The Lead Independent Director leads the Board’s annual evaluation of the Executive Chairman and the President and CEO’s performance. If requested, the Lead Independent Director is available for consultation and direct communication with major stockholders and regulators under appropriate circumstances. The Lead Independent Director also monitors and coordinates with management on corporate governance issues and developments.

Every year, the Nominating and Corporate Governance Committee reviews and makes a recommendation on the appropriate governance framework for boardBoard leadership. The Committee takes into consideration governance best practices and the facts and circumstances of our board.Board. In connection with this process, the Company determined that boardBoard leadership is best provided through the combination of a unifiedan Executive Chairman, and CEO, a clearly defined and significant lead independent directorLead Independent Director role, active and strong committee chairs, and independent-minded, skilled, engaged, diverse and committed directors. The boardBoard believes that its current structure and governance allows it to provide effective challenge and oversight of management.

The Board regularly discusses with management the Company’s competitive positioning, strategic dynamics and business priorities. We are a leading broadband connectivity company and cable operator serving more than 3132 million customers in 41 states through our Spectrum brand. Over an advanced high-capacity, two-way telecommunicationscommunications network, we offer a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice. For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. We also distribute award-winning news coverage sports and high-quality originalsports programming to our customers through Spectrum Networks and Spectrum Originals.Networks.

The Board discusses and advises management with respect to the Company’s strategies to effectively operate within each of our service areas. These discussions support our core strategy, which is to usefocuses on the evolution of our network, to deliverexpansion of our footprint, and the execution of high quality productsoperations, including customer service. It allows us to maintain a state-of-the-art network delivering the most compelling converged connectivity services in a capital and time-efficient manner, and in turn, offer advanced services to consumers at competitivehighly attractive prices, combinedtogether with outstanding customer service. This strategy, combined with simple, easy to understand pricing and packaging, is central to our goal of growing our customer base while selling more of our core connectivity services, which include both fixed and mobile Internet, video and voice services, to each individual customer. We execute this strategy

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by managing our operations in a consumer-friendly, efficient and cost-effective manner. Our operating strategy includes insourcing nearly all of our customer care and field operations workforces, which results in higher quality service delivery. While an insourced operating model can increase the field operations and customer care costs associated with individual service transactions, the higher quality nature of insourced labor service transactions significantly reduces the volume of service transactions per customer, more than offsetting the higher investment made in each insourced service transaction. As we reduce the number of service transactions and recurring costs per customer relationship, we continue to provide our customers with products and prices that we believe provide more value than what our competitors offer. The combination of offeringOffering high quality, competitively priced products and outstanding service allows us to increase both increase the number of customers we serve over our fully deployed network and to increase the number of products we sell to each customer. This combination also reduces the number of service transactions we perform per relationship, yielding higher customer satisfaction and lower customer churn, resultingwhich results in lower costs to acquire and serve customers and greater profitability.

In addition to discussions with management, our non-management directors meet regularly in executive sessions that are chaired by our Lead Independent Director with no membermembers of management present. Non-management directors use these

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executive sessions to discuss matters of concern, as well as evaluations of the CEO and senior management, management and boardBoard successions, matters to be included on boardBoard agendas, and additional information the boardBoard would like management to provide to them.

The chairs and all members of the boardBoard committees are independent directors. These chairs shape the agenda and information presented to their committees. Oversight of critical issues within these committees is owned by the independent directors. All directors have full access to all members of management and all employees on a confidential basis.

The full boardBoard of directorsDirectors oversees the various risks to the Company, delegating to the various committees specific responsibilities. The Audit Committee reviews our Enterprise Risk Management (“ERM”) Program on a regular basis, and the boardBoard of directorsDirectors regularly reviews reports from management and the Audit Committee regarding the ERM Program. The Audit Committee meets regularly with members of management in executive session, as well as separately with each of the General Counsel, the Senior Vice President of Internal Audit Services and representatives of our independent registered public accounting firm. The Compensation and Benefits Committee oversees our succession planning and compensation policies and practices, including reviewing our incentive and equity-based compensation plans and benefits plans. The Nominating and Corporate Governance Committee oversees corporate governance, including recommending boardBoard and committee nominations and the Corporate Governance Guidelines and determining director independence. The full Board of Directors oversees the Company’s lobbying activities, which are managed by our Government Affairs team reporting directly to the Executive Chairman. The Board has delegated authority and responsibility for state and local campaign contributions to the Executive Chairman in consultation with the Chief Executive Officer, subject to the provisions of the Company’s Code of Conduct and any other applicable Company policies. The Board annually receives a report on lobbying activities from the head of Government Affairs during one of its quarterly, in-person meetings, as well as quarterly updates on legislative and regulatory activities.

Compensation Risk Assessment

An independent consultant was engaged to perform a risk assessment of the Company’s compensation programs and did not identify any material risks that might adversely impact the financial health or performance of the Company. After review of the work and conclusion of the independent consultant, the Compensation and Benefits Committee agreed with the conclusion reached by the independent consultant.

Proactive Stockholder Engagement

Charter values and carefully considers the feedback we receive from our stockholders. In 2022, we engaged in constructive dialogue with our leading institutional stockholders. We reached out to and offered to have discussions with our 15 largest stockholders holding approximately 73% of the shares of our outstanding stock. We also engaged with stockholders who contacted us requesting engagement and have engaged with the stockholder who has submitted a proposal for consideration at the 2023 annual stockholders’ meeting. We engaged with each stockholder who accepted our offer, making our Executive Vice President, General Counsel and Corporate Secretary, our Senior Vice President, Investor Relations and our Senior Vice President, Deputy General Counsel and Assistant Corporate Secretary available. We also engaged with proxy advisory firms. Stockholder feedback, including through direct discussions and prior stockholder votes, is reported to our Nominating and Corporate Governance Committee regularly throughout the year. We also review our practices against guidelines published by stockholders and proxy advisory firms, among others.

The engagements covered a variety of topics. The topics most often raised and the Company’s response to these discussions are summarized below.

Board Diversity. Our Corporate Governance Guidelines reflect our commitment to diversity and provide that a candidate’s contribution of diversity to the Board of Directors (based on common factors associated with diversity such as gender, race/ethnicity and other background characteristics that enhance the diversity of the board) will be one of the many elements to be considered in evaluating candidates. At this time, our Board includes an African American woman, an Asian American/Pacific Islander and a Latino American. In 2022, the Nominating and Corporate Governance Committee continued to develop its pipe-line of potential diverse director candidates in the event an opening occurs on the Board of Directors, with the expectation and plan that the next opening would be filled by a woman candidate with the exception of a Liberty Broadband or A/N nominee or the Company’s Chief Executive Officer.

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ESG Reporting / GHG Reduction Target. In response to discussions with stockholders regarding the importance of environmental, social and governance (“ESG”) oversight and reporting to stockholders, the Company issued its first ESG Report in April 2021 describing the Company’s policies, performance and improvement targets related to ESG including the Company’s target to be carbon neutral by 2035. The Company issued its 2021 ESG Report in March 2022. We will continue to engage internal and external stakeholders in ESG discussions, reviewing the initiatives of other companies, reviewing ESG ratings and disclosure guidelines, and reviewing the means and opportunities for further carbon emission reductions in the future.

Lobbying Activities. Our Company makes significant disclosures regarding lobbying and political contributions, and our Board believes that these current disclosures are appropriate and consistent with the objectives of transparency and accountability reflected in the proposal. During our engagement discussions, some stockholders indicated they would appreciate increased disclosure describing the Company’s management and oversight of lobbying activities. In this regard, our Government Affairs team manages the Company’s lobbying activities and reports directly to the Executive Chairman, with oversight from the full Board of Directors. The Board has delegated authority and responsibility for state and local campaign contributions to the Executive Chairman in consultation with the Chief Executive Officer, subject to the provisions of the Company’s Code of Conduct and any other applicable Company policies. The Board annually receives a report on lobbying activities from the head of Government Affairs during one of its quarterly, in-person meetings, as well as quarterly updates on legislative and regulatory activities. The Company maintains a public policy website that sets out the Company’s views as to regulatory and other policy issues around our business. Those are the public policy issues we focus upon through our government affairs efforts.

We have received a stockholder proposal regarding lobbying activities in each of the last two years, similar to the stockholder proposal regarding lobbying activities contained in this proxy statement. The proposal requests that the Company prepare an annual report disclosing the Company’s policies and procedures governing lobbying, payments by the Company for lobbying, membership in organizations that prepare model legislation and a description of management’s decision-making process regarding, and the board’s oversight of, lobbying activities. Our position on the lobbying activities proposal is set forth in greater detail under the description of the proposal in this proxy statement.

Director Overboarding. In recent years, some investors have expressed concerns about the number of outside public company boards that certain highly sought-after directors serve on. In addition, some investors and proxy advisors have instituted “bright-line” proxy voting policies on the number of outside public company boards that a director may serve on. The Board acknowledges the worry that such directors could lack the resources to perform all of their obligations to each board. Accordingly the Nominating and Corporate Governance Committee considers all aspects of each director’s contributions, skills and dedication to ensure that each remains an effective director for the Company. The Board realizes that Mr. Maffei, a director on the board and President and Chief Executive Officer of Liberty Broadband, also sits on the boards of several other companies in which Liberty Broadband has an investment or a management relationship, as well as the boards of other companies, as more fully discussed in his Biographical Information above. The Nominating and Corporate Governance Committee has thoroughly evaluated Mr. Maffei’s role in and contributions to the Board, including the significant time and attention he dedicates to the Company, his outside board commitments (which primarily relate to his role with Liberty Broadband and affiliated companies), the overlaps between his service on outside boards and our Board, and Mr. Maffei’s considerable knowledge and experience in the industry. The Nominating and Corporate Governance Committee concluded that Mr. Maffei’s service on outside boards improves, rather than detracts from, his service on the Company’s Board and firmly believes that he will continue to provide the Company with the necessary time and attention to make him an effective director.

Other topics frequently raised during our stockholder engagements regarded executive compensation and advisory say-on-pay votes, and EEO-1 disclosure and diversity, equity and inclusion reporting. This year, stockholders will be asked to consider two advisory votes relative to executive compensation at the annual meeting. One will address the executive compensation as described in the Compensation Discussion and Analysis and the other will address the frequency of advisory votes on the Company’s executive compensation. The EEO-1 disclosure and diversity, equity and inclusion reporting topics were raised by two stockholder proposals originally submitted for consideration at the 2023 annual stockholders’ meeting. We engaged with the stockholders who submitted those proposals and reached agreement that, subject to regulatory developments, Charter would begin to release, during 2024 or before, its consolidated EEO-1 form, along with the rates of at least two inclusion indicators (hiring, retention or promotion) for its employees, sharing this data by the gender, race and ethnicity categories established by the Equal Employment Opportunity Commission. In exchange, each stockholder proposal proponent agreed to withdraw its proposal. We take seriously the views of our stockholders and took into consideration all the various input we received, and intend to continue our stockholder engagement efforts in 2023.

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Stockholder Contact with Directors

Individuals may communicate directly with members of the boardBoard of directorsDirectors or members of the board’sBoard’s standing committees by writing to the following address:

Charter Communications, Inc.

400 Atlantic StreetWashington Blvd.

Stamford, CT 0690106902

Attn: Corporate Secretary

The Corporate Secretary will summarize all correspondence received, subject to the standards below, and periodically forward summaries to the boardBoard of directors.Directors. Members of the boardBoard may at any time request copies of any such correspondence. Communications may be addressed to the attention of the boardBoard of directors,Directors, a standing committee of the boardBoard of directors,Directors, or any individual member of the boardBoard of directors or a committee.Directors. Communication that is primarily commercial in nature, relates to an improper or irrelevant topic, or requires investigation to verify its content may not be forwarded. Communications including substantive accounting matters will be forwarded to the Chair of the Audit Committee.

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20202022 Director Compensation

The non-employee director compensation package for 20202022 included an annual retainer of $120,000 in cash or equity.equity as elected by each director. The non-employee director compensation package also included an annual award of $180,000$200,000 in restricted stock, except with respect to the Lead Independent Director, who received an annual award of $330,000$350,000 in restricted stock. In addition to these annual retainers, under the non-employee director compensation package, the Audit Committee chair receives $30,000 per year, the Compensation and Benefits Committee chair receives $25,000 per year, and the Nominating and Corporate Governance Committee chair receives $20,000 per year. Each Audit Committee member (including the chair) receives $30,000 per year, each Compensation and Benefits Committee member (including the chair) receives $25,000 per year, each Finance Committee member receives $20,000 per year and each Nominating and Corporate Governance Committee member (including the chair) receives $20,000 per year. Mr. Rutledge, Charter’s Executive Chairman, and CEO, was the only current director who was also an employee during 2020.2022.

The following table sets forth information regarding the compensation paid or issued to those non-employee members of the boardBoard of directorsDirectors listed below for services rendered for the fiscal year ended December 31, 2020.2022.

 

Name

  Fees Earned or Paid in
Cash ($)
(1)
   Stock
Awards ($)
(2)
   Total ($)   Fees Earned or Paid in
Cash ($)
(1)
   Stock
Awards ($)
(2)
   Total ($) 

W. Lance Conn

   190,000    179,613    369,613    190,000    199,865    389,865 

Kim C. Goodman

   30,000    299,186    329,186    30,000    319,586    349,586 

Craig Jacobson

   20,000    299,186    319,186    20,000    319,586    339,586 

Gregory B. Maffei

   45,000    299,186    344,186    45,000    319,586    364,586 

John D. Markley, Jr.

   190,000    179,613    369,613    190,000    199,865    389,865 

David Merritt

   200,000    179,613    379,613    200,000    199,865    399,865 

James E. Meyer

   140,000    179,613    319,613    140,000    199,865    339,865 

Steven A. Miron

   25,000    299,186    324,186    25,000    319,586    344,586 

Balan Nair

       299,186    299,186        319,586    319,586 

Michael Newhouse

   160,000    179,613    339,613 

Michael A. Newhouse

   160,000    199,865    359,865 

Mauricio Ramos

   145,000    179,613    324,613    64,534    319,586    384,120 

Eric Zinterhofer

   65,000    449,536    514,536    65,000    469,485    534,485 

 

(1)

Cash compensation to the directors is paid in advance on a quarterly basis. In addition to the annual retainer, Mr. Conn received payments for his service as the Compensation and Benefits Committee chair, as a member of the Compensation and Benefits Committee and as a member of the Finance Committee. Ms. Goodman elected to receive her annual retainer in equity for 20202022 and she received payments for her service as a member of the Audit Committee. Mr. Jacobson

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elected to receive his annual retainer in equity for 20202022 and he received payments for his service as a member of the Nominating and Corporate Governance Committee. Mr. Maffei elected to receive his annual retainer in equity for 20202022 and he received payments for his service as a member of the Compensation and Benefits Committee and as a member of the Finance Committee. In addition to the annual retainer, Mr. Markley received payments for his service on the Audit Committee, and as chair and as a member of the Nominating and Corporate Governance Committee. In addition to the annual retainer, Mr. Merritt received payments for his service as chair and as a member of the Audit Committee and for his service on the Finance Committee. In addition to the annual retainer, Mr. Meyer received payments for his service as a member of the Nominating and Corporate Governance Committee. Mr. Miron elected to receive his annual retainer in equity for 20202022 and he received payments for his service on the Compensation and Benefits Committee. Mr. Nair elected to receive his annual retainer in equity for 20202022 and did not serve on any committees during 2020.2022. In addition to the annual retainer, Mr. Newhouse received payments for his service as a member of the Nominating and Corporate Governance Committee and as a member of the Finance Committee. In additionMr. Ramos elected to thereceive his annual retainer Mr. Ramosin equity for the period from April 30, 2022 to December 31, 2022 and he received payments for his service on the Compensation and Benefits Committee. Mr. Zinterhofer elected to receive his annual retainer in equity for 20202022 and he received payments for his service as a member of the Compensation and Benefits Committee, the Finance Committee and the Nominating and Corporate Governance Committee and the Finance Committee.

 

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(2)

Represents the grant date fair value of restricted stock grants for directors, which were granted on April 28, 202026, 2022 and vest one year after the date of grant (April 28, 2021).on April 26, 2023. Amounts include the annual equity retainer granted to all directors with a grant date fair value of $179,613$199,865 (and $329,963$349,764 for Mr. Zinterhofer as the Lead Independent Director). For Ms. Goodman and Messrs. Jacobson, Maffei, Miron, Nair, Ramos and Zinterhofer, amounts also include the annual retainer that they elected to receive in the form of equity and which had a grant date fair value of $119,573.$119,721. The grant date fair value amount was calculated in accordance with accounting guidance related to share-based payment transactions. For more information, see “Impact of Tax and Accounting” under Compensation Discussion and Analysis.

Executive Officers

Our executive officers for purposes of Section 16 of the Securities and Exchange Act, and our other Executive Vice Presidents as of the date hereof, listed below, are elected by the boardBoard of directorsDirectors annually, and each serves at the pleasure of the boardBoard of directorsDirectors or until his or her successor is elected and qualified or until his or her earlier resignation or removal.

Executive Officer Positions

 

Executive Officers

  Position

Section 16 Executive Officers:Christopher L. Winfrey

  President and Chief Executive Officer

Thomas M. Rutledge

  Chairman and Chief Executive OfficerChairman

John BickhamRichard J. DiGeronimo

  President, and Chief Operating Officer

Rich DiGeronimo

Chief Product and Technology Officer

Richard R. Dykhouse

  Executive Vice President, General Counsel and Corporate Secretary

David G. Ellen

  Senior Executive Vice President

Jonathan HargisJessica M. Fischer

  Executive Vice President, Chief MarketingFinancial Officer

Kevin D. Howard

  Executive Vice President, Chief Accounting Officer and Controller

Christopher L. Winfrey

Chief Financial Officer

Executive Vice Presidents:

Thomas E. Adams

Executive Vice President, Field Operations

Bill Archer

Executive Vice President, President of Spectrum Enterprise

Michael Bair

Executive Vice President, Spectrum Networks

Catherine C. Bohigian

Executive Vice President, Government Affairs

Jessica Fischer

Executive Vice President, Finance

Charles Fisher

Executive Vice President, Corporate Finance and Development

Cliff Hagan

Executive Vice President, Customer Operations

David Kline

Executive Vice President, President of Spectrum Reach

Paul Marchand

Executive Vice President, Chief Human Resources Officer

Stephanie Mitchko-Beale

Executive Vice President, Chief Technology Officer

Tom Montemagno

Executive Vice President, Programming Acquisition

James Nuzzo

Executive Vice President, Business Planning

Adam Ray

Executive Vice President, Multi-Dwelling Unit Markets

Magesh Srinivasan

Executive Vice President, Network Operations

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Information regarding our executive officers, and our other senior company leaders, other than Mr. Rutledge who also serves as a director, is set forth below. Information regarding our other senior company leaders is available on the “Investor Relations” section of our website at ir.charter.com.

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Christopher L. Winfrey

President and Chief Executive Officer                 Age:  47

Mr. Winfrey was named President and Chief Executive Officer of the Company in December 2022. He most recently served as Chief Operating Officer since 2021, where he oversaw all cable operations, including marketing, sales, field operations and customer operations, as well as Spectrum Enterprise. Mr. Winfrey joined Charter as Chief Financial Officer in 2010 responsible for Charter’s accounting, financial planning and analysis, procurement, real estate, tax and treasury functions, as well as mergers and acquisitions, capital structure activities and investor relations. Charter added oversight of its fiber-based Spectrum Enterprise business to his CFO responsibilities in 2019, and operational leadership of the residential and SMB Sales and Marketing organization, and Spectrum Community Solutions in February of 2021. Prior to joining Charter, Mr. Winfrey served as Chief Financial Officer of Unitymedia GmbH, Germany’s second-largest cable operator, and as Managing Director for Unitymedia’s cable operations, broadcasting and satellite entities. Earlier in his career, Mr. Winfrey served as Senior Vice President, Corporate Finance and Development at Cablecom, GmbH. He was previously a Director of Financial Planning and Analysis and Director of Operations Services of NTL Incorporated’s continental European operations, and a senior associate in the private equity group at Communications Equity Associates. Mr. Winfrey has spent nearly 25 years in the cable industry, and in 2015 received The Internet & Television Association’s (NCTA) Vanguard Award for Young Leadership. He received a B.S. in accounting and an MBA from the University of Florida.

 

Richard J. DiGeronimo

John Bickham

President, and Chief Operating Officer                Age:  71

Mr. Bickham joined Charter as Executive Vice President and COO in 2012. He was named President in July 2016. Mr. Bickham joined Charter from Cablevision, where he served as President of Cable and Communications. Earlier in his career, Mr. Bickham was Executive Vice President for Time Warner Cable with corporate responsibility for several large markets. Mr. Bickham was a founding executive of KBLCOM in 1986, a cable company that partnered with American Television and Communications, a predecessor company of Time Warner Cable. Mr. Bickham serves on the Cable Center Board and was honored with the industry’s Vanguard Award for Cable Operations Management in 2007. He received a B.S. in electrical engineering from Texas A&I, now known as Texas A&M-Kingsville.

Rich DiGeronimo

Chief Product and Technology                Officer                Age:  4345

 

Mr. DiGeronimo is Chiefhas been President, Product and Technology Officer at Charter Communications.of the Company since December 2022. Mr. DiGeronimo oversees Charter’s product, engineering, software development and information technology, digital platforms, network operations, advertising sales, business development and programming acquisition organizations. Mr. DiGeronimo joined Charter in 2008 as Vice President of Product Management and has served in several leadership roles, including Senior Vice President of Product and Strategy, Executive Vice President of Product and Strategy, and Executive Vice President, Chief Product Officer. HeOfficer, and he was appointed to his current positionChief Product and Technology Officer in 2019 and leads Charter’s product, engineering, information technology, and business development organizations. In 2021, oversight of Charter’s advertising sales business, Spectrum Reach, was added to his responsibilities.2019. Mr. DiGeronimo joined Charter from Level 3 Communications, where he served as Vice President and General Manager of the Cable Markets Group. He also held leadership roles in product management and corporate finance over his eight years at Level 3. Mr. DiGeronimo started his career at Bear Stearns where he focused on technology investment banking. Mr. DiGeronimo was named Women in Cable Telecommunications (WICT) Rocky Mountain Mentor of the Year in 2015 and serves on the board of Adaptive Spirit, the primarya significant fundraiser for the United States Paralympics Ski and Snowboard Teams. He received a BBA from the Ross School of Business at the University of Michigan where he graduated with High Distinction.

 

Richard R. Dykhouse

Executive Vice President, General Counsel and Corporate Secretary                Age:  5759

 

Mr. Dykhouse has served as Executive Vice President, General Counsel and Corporate Secretary since 2013 having previously beenand General Counsel since 2011. Mr. Dykhouse joined Charter as Vice President, Associate General Counsel and Assistant Secretary in 2006. Mr. Dykhouse joined Charter from CNH Global, N.V. (now CNH Industrial), where he served as Senior Counsel and Assistant Secretary. Before CNH, he was an attorney for Conseco, Inc. (now CNO Financial Group, Inc.) for nearly 10 years, serving in the corporate law group, with his last position as Senior Vice President, General Counsel since January 2011 and a Vice President of Charter from 2006 to 2011.Legal. Mr. Dykhouse received a bachelor’s degree in finance from Olivet Nazarene University, an M.B.A. from Indiana University and a J.D. degree from Indiana University Robert H. McKinney School of Law.

 

 

David G. Ellen

Senior Executive Vice President                Age:  5658

 

Mr. Ellen joined Charter as Senior Executive Vice President in 2016. Mr. Ellen oversees several business and corporate functions including Programming, Spectrum Networks, Human Resources, Communications, Diversity & Inclusion, Spectrum Community Impact programs, Physical Security, regulatory policy support and compliance, and legal support for several of those areas. Mr. Ellen joined Charter from Cablevision, where he served as Executive Vice President and General Counsel. Before Cablevision, Mr. Ellen served as Deputy General Counsel at IAC, the multi-brand media and internet company. Earlier in his career, Mr. Ellen worked at the Federal Communications Commission and before that was a law clerk for now retired Justice Sandra Day O’Connor at the U.S. Supreme Court. He also clerked for Justices Stephen Breyer and Ruth Bader Ginsburg when they were each on the U.S. Court of Appeals. He received a B.A. from Harvard College, a law degree from Harvard Law School, where he was President of the Harvard Law Review, and a master’s degree from Cambridge University, where he was a Marshall Scholar.

 

 

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Jonathan HargisJessica M. Fischer

Executive Vice President, Chief Marketing Officer                Age:  64

Mr. Hargis joined Charter as Executive Vice President and Chief Marketing Officer in 2012. Mr. Hargis oversees the company’s sales and marketing strategy and decisions. Mr. Hargis joined Charter from Cablevision, where he most recently served as Executive Vice President, Marketing. Earlier in his career, Mr. Hargis served in various leadership roles at AT&T. Mr. Hargis served on the board of the Cable & Telecommunications Association for Marketing Educational Foundation from April 2008 to March 2012 and chaired the board from September 2011 to March 2012. He received a B.A. from Otterbein College and an MBA from Wright State University.

Kevin Howard

Executive Vice President, Chief Accounting Officer and Controller                Age:  51

Mr. Howard was promoted to his current role as Executive Vice President, Chief Accounting Officer and Controller in July 2019. Prior to that he served as Senior Vice President — Finance, Controller and Chief Accounting Officer since December 2009. From August 1, 2010 through October 31, 2010, Mr. Howard served as Interim Chief Financial Officer. From April 2006 to December 2009, Mr. Howard served as Vice President, Controller and Chief Accounting Officer. Mr. Howard is responsible for Charter’s operational and technical accounting, financial reporting, payables, and enterprise resource planning operations. Prior to that, he served as Vice President of Finance from April 2003 until April 2006 and as Director of Financial Reporting since joining Charter in April 2002. Mr. Howard joined Charter from Arthur Andersen LLP, where he served as an auditor in the audit division for nearly a decade. Mr. Howard received a bachelor’s degree in finance and economics from the University of Missouri — Columbia and is a certified public accountant and certified managerial accountant.

Christopher L. Winfrey

Chief Financial Officer                Age:  45

Mr. Winfrey joined Charter as Chief Financial Officer in 2010. Mr. Winfrey is responsible for Charter’s accounting, financial planning and analysis, procurement, real estate, tax and treasury functions, as well as mergers and acquisitions, capital structure activities and investor relations. In addition, Charter added oversight of its fiber-based business services (“Spectrum Enterprise”) to his responsibilities in 2019, and operational leadership of the residential and SMB Sales and Marketing organization, and Spectrum Community Solutions in 2021. Mr. Winfrey joined Charter from Unitymedia GmbH, Germany’s second-largest cable operator, where he served as Chief Financial Officer, and as Managing Director for Unitymedia’s cable operations, broadcasting and satellite entities. Earlier in his career, Mr. Winfrey served as Senior Vice President, Corporate Finance and Development at Cablecom, GmbH. He was previously a Director of Financial Planning and Analysis and Director of Operations Services of NTL Incorporated’s continental European operations, and a senior associate in the private equity group at Communications Equity Associates. Mr. Winfrey has spent more than 20 years in the cable industry, and in 2015 received The Internet & Television Association’s (NCTA) Vanguard Award for Young Leadership. He currently serves on the board of directors for the Greenwich Center for Hope and Renewal. He received a B.S. in accounting and an MBA from the University of Florida.

Thomas E. Adams

Executive Vice President, Field Operations                Age:  65

Mr. Adams joined Charter as Executive Vice President, Field Operations in 2012. Mr. Adams has national oversight of Field Operations for the company. Mr. Adams joined Charter from Time Warner Cable, where he spent 17 years and served as Regional Vice President of Operations for Wisconsin and Regional Vice President of Operations for Eastern Carolina. Earlier in his career, Mr. Adams worked for NewChannels Corporation in various leadership roles including Vice President of New Business. He received an associate degree in applied science, engineering from State University of New York at Delhi, and a B.S. in engineering from Florida International University.

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Bill Archer

Executive Vice President, President of Spectrum Enterprise                Age:  63

Mr. Archer joined Charter Communications in October 2019 as Executive Vice President and President of Spectrum Enterprise. Mr. Archer, an industry veteran with more than 35 years of experience in telecommunications most recently served as Managing Director of Business at eir Group, the principle provider of fixed-line and mobile communications services in Ireland. Prior to joining eir in 2012, Mr. Archer spent more than 30 years at AT&T where he held a range of senior leadership positions across AT&T Business including President of Advanced Solutions, Executive Vice President of Strategy and Transformation, President of EMEA (Europe, Middle East, and Africa), Senior Vice President of Product Management, and Chief Marketing Officer. Mr. Archer earned a Bachelor of Science in Business Administration from Providence College.

Michael Bair

Executive Vice President, Spectrum Networks                Age:  64

Mr. Bair joined Charter as Executive Vice President, Spectrum Networks in 2016. Mr. Bair oversees Spectrum Networks, a series of 24/7 local news, and regional sports networks owned and operated by Charter. Mr. Bair joined Charter from Bleachers Corp., where he served as Chief Executive Officer of the startup streaming media company. Earlier in his career, Mr. Bair served as President of Madison Square Garden’s Media Group where he led the strategic, operational and financial performance of MSG Networks, Fuse Music TV, MSG Interactive, MSG Radio and all sponsorship and ad sales for the parent company. Mr. Bair also previously served as President, Product Management and Marketing for the cable division at Cablevision, where he was responsible for product strategy, programming, marketing and advertising, as well as brand management for the company’s video, voice and internet services. Mr. Bair also oversaw Cablevision/Rainbow’s national and regional sports networks and held executive positions at HBO, Showtime Networks and Ogilvy and Mather Advertising. He received a B.A. in broadcast communications from Penn State University.

Catherine C. Bohigian

Executive Vice President, Government Affairs                Age:  48

Ms. Bohigian joined Charter as Executive Vice President, Government Affairs in 2013. Ms. Bohigian oversees all aspects of Charter’s federal, state and local government affairs activities including local and state franchising. She is responsible for developing the company’s public policy positions and directing its legislative and regulatory strategies in Washington, D.C. and in the 41 states Charter serves. Ms. Bohigian joined Charter from Cablevision, where she opened its Washington office and served as Senior Vice President, Federal Affairs. Earlier in her career, Ms. Bohigian served as Chief of the Office of Strategic Planning and Senior Advisor to the Chairman at the Federal Communications Commission. Before joining the FCC, she represented telecommunications clients as an attorney at Wiley Rein in Washington. She received a B.A. from Duke University and a Juris Doctor from Harvard Law School.

Jessica Fischer

Executive Vice President, Finance                Age:  3537

 

Ms. Fischer is Executive Vice President,was named Chief Financial Officer of Charter in October 2021. Ms. Fischer oversees Accounting, Finance, and oversees Tax and Risk Management, Procurement, Investor Relations, Internal Audit, and Corporate Budgeting and Planning. Additionally, she manages Charter’s equity and capital markets strategy and execution, as well as M&A and investing activity. Ms. Fischer was the Seniormost recently served as Executive Vice President, Finance and joined Charter as Corporate Treasurer and oversaw Charter’s Treasury and cash management activities from 2017 to early 2021. Prior toin 2017. Before joining Charter, Ms. Fischershe was a partner in the National Tax Department at EY where she advised clients on the tax structuring and implementation of partnership transactions primarily in the media and telecommunications space, including advising Charter on its transactions with Time Warner Cable and Bright House Networks in 2016. She is a graduate of Washington University in St. Louis, where she earned a B.S. in business administration in accounting and managerial economics, and a master of science in business administration with a concentration in accounting.

 

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Charles FisherKevin D. Howard

Executive Vice President, Corporate FinanceChief Accounting Officer and DevelopmentController                Age:  5153

 

Mr. FisherHoward is Executive Vice President, Corporate Finance & DevelopmentChief Accounting Officer and Controller at Charter. He has managed Charter’s debt and equity capital markets strategy and execution, mergers and acquisitions, and corporate development including equity investments and joint ventures since he joined Charter in 2013.2002 as Director of Financial Reporting and was promoted to Chief Accounting Officer and Controller in 2006. He also served as Interim Chief Financial Officer from August 1, 2010, through October 31, 2010. Mr. Fisher’s responsibilities expanded in 2019 to include providing more dedicated corporate development leadershipHoward is responsible for Spectrum EnterpriseCharter’s operational and Spectrum Reach,technical accounting, taxes, financial reporting, payables and were expanded again in 2021 to include oversight of all Treasury activities. From 2019 to 2021,enterprise resource planning operations. Mr. Fisher also had responsibility for managing Charter’s investor relations and procurement functions. Mr. FisherHoward joined Charter in 2013 from Guggenheim Partners,Arthur Andersen LLP, where he was a Senior Managing Director for Telecoms & Media. Prior to joining Guggenheim Securities, he was at Nomura Securities where he headed the Media Investment Banking practice for the Americas. Earlier in his career, Mr. Fisher served as a Managing Director and led Lehman Brothers’ and Nomura’s European Cable Investment Banking business in London, and was a Managing Director for Lehman Brothers in both London and New York. He received a B.A. from Queen’s University in Ontario and an MBA from Columbia Business School.

Cliff Hagan

Executive Vice President, Customer Operations                Age:  60

Mr. Hagan serves as Charter’s Executive Vice President, Customer Operations. Mr. Hagan joined Charter in 2015 as Vice President, Business Integration and has served in several leadership roles, including Group Vice President of Technical Operations Support, and Senior Vice President of Shared Services for Customer Operations. He was appointed to his current position in 2019 and leads Charter’s Customer Operations, including customer service, billing operations and credit and collections. Prior to joining Charter, Mr. Hagan served as Senior Vice President, Enterprise IT, for Cablevision. He also held multiple leadership positions at GE Aerospace andauditor in the U.S. Navy.audit division for nearly a decade. He is a certified public accountant and a certified managerial accountant. He received a B.S. in engineeringfinance and economics from the United States Naval Academy.

David Kline

Executive Vice President, President of Spectrum Reach                Age:  63

Mr. Kline serves as Charter’s Executive Vice President, and PresidentUniversity of Spectrum Reach, the advertising sales division of Charter. Mr. Kline joined Charter in 2015 and provides strategic leadership to guide the company in both the traditional and advanced TV advertising space. Spectrum Reach is responsible for selling inventory on all Charter and affiliated cable systems as well as Spectrum news and sports networks. The company offers highly-targeted, integrated advertising solutions across a variety of media platforms including linear television, VOD, IP streaming, curated online display, video and social inventory. Mr. Kline joined Charter from Visible World (now FreeWheel), where he served as President and Chief Operating Officer, directing their household addressable sales and programmatic advertising efforts. Earlier in his career, Mr. Kline served as President and Chief Operating Officer of Cablevision Media Sales (now Altice Media Solutions) for more than 17 years. He oversaw the company’s advertising businesses and spearheaded many firsts for the cable industry including the launches of linear household addressability, successful interactive applications and data-infused media campaigns. Mr. Kline serves on the board of directors for the Video Advertising Bureau, NCC Media, Canoe and 605. He received a B.A. in a personalized study program focusing on marketing, finance, accounting and management from The Ohio State University.

Paul Marchand

Executive Vice President, Chief Human Resources Officer                Age:  51

Mr. Marchand joined Charter as Executive Vice President, Human Resources in 2015. Mr. Marchand is responsible for all human resources strategies, policies and practices for all employees. He oversees all aspects of HR including recruitment, training and development, HR operations including payroll, HR shared services and HR systems, as well as compensation and benefits. Mr. Marchand joined Charter from PepsiCo, most recently serving as Senior Vice President of Human Resources for the North America Beverages division. Earlier in his career he served in human resources roles at Merrill Lynch, JP Morgan and the May Department Stores. He received a B.A. in advertising from Syracuse University and a master’s degree in organizational psychology from Columbia University.Missouri-Columbia.

 

 

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Stephanie Mitchko-Beale

Executive Vice President, Chief Technology Officer                Age:  55

Ms. Mitchko-Beale joined Charter Communications in 2019 as Executive Vice President, Chief Technology Officer. Ms. Mitchko-Beale oversees Charter’s Network, Mobile, Video and Software Engineering teams, as well as Network Architecture, Technology Policy, and Emerging Technology organizations. Ms. Mitchko-Beale joined Charter from Cadent, a provider of data-driven solutions for buying and selling TV advertising, where she served as joint Chief Technology Officer and Chief Operating Officer. Earlier in her career, she was Senior Vice President of Video Infrastructure Software at Cablevision where she was responsible for the software development of new consumer-facing technologies. She received a B.S. in electrical engineering from Polytechnic University in New York. She teaches as a guest lecturer at NYU Stern School of Business and is a member of the NYU Poly Enterprise Learning Board.

Tom Montemagno

Executive Vice President, Programming Acquisition                Age:  54

Mr. Montemagno joined Charter as Executive Vice President, Programming Acquisition in 2016. Mr. Montemagno leads Charter’s negotiations with a full range of content providers from major multichannel media companies and sports networks to local broadcasters. Those negotiations extend to all facets of programming offerings, including On Demand and streaming rights on multiple platforms. Mr. Montemagno joined Charter from Cablevision, where he most recently served as Executive Vice President of Programming. During his 27-year tenure at Cablevision, he held various leadership positions in the programming department including Senior Vice President of Programming Acquisition. He received a B.S. in marketing from St. John’s University.

James Nuzzo

Executive Vice President, Business Planning                Age:  59

Mr. Nuzzo serves as Charter’s Executive Vice President, Business Planning at Charter. Mr. Nuzzo joined the company in 2014 to oversee business planning for Cable Operations, working closely with Field Operations, Customer Service, Marketing, Network Operations, Technology and the Product teams. His areas of oversight expanded in 2019 to include Charter’s Corporate Financial Planning & Analysis and Business Planning, Business Intelligence, Revenue Assurance and Corporate Services Functions. Mr. Nuzzo joined Charter from Cablevision where he served as Senior Executive Vice President, Operations and Business Planning. He spent 27 years at Cablevision in several business planning positions at the executive level. Earlier in his career, Mr. Nuzzo was a finance executive at Rainbow Advertising Sales Corporation, the advertising sales division of Rainbow Media, now AMC Networks. He received a BBA with an emphasis on accounting from Hofstra University.

Adam Ray

Executive Vice President, Spectrum Community Solutions                Age:  45

Mr. Ray serves as Charter’s Executive Vice President, Spectrum Community Solutions. He oversees Charter’s Spectrum Community Solutions business, which provides residential TV, internet and voice services to apartments, condos, and gated single-family community developments. Mr. Ray joined Charter from Comcast in 2005 and has held several leadership positions, most recently serving as Regional Vice President of Field Operations for the Florida Region. Prior to that he served as Group Vice President, Residential Direct Sales, and earlier in his career at Charter he served as Senior Director, Sales Operations in Los Angeles. He received a B.A. from Maryville College, a master’s degree from Austin Peay State University, and an MBA from the University of Tennessee-Knoxville. In addition, he is a graduate of the Cable Executive Management program at Harvard Business School.

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Magesh Srinivasan

Executive Vice President, Network Operations                Age:  50

Mr. Srinivasan serves as Executive Vice President, Network Operations for Charter. In his current role, Mr. Srinivasan is responsible for network operations across Charter’s 41-state footprint. He joined Charter in 2016, and most recently served as Senior Vice President in Network Operations, first in Core and Backbone Operations and most recently in Video Operations. Prior to that, he served in several senior engineering roles at Time Warner Cable, including as Group Vice President of Commercial Engineering and Operations, Vice President of Commercial Engineering for Time Warner Cable’s West Region, and Director in the Texas Region. Mr. Srinivasan began his career at Sprint in a series of engineering roles with increased responsibility. He received a B.S. from Anna University, a master’s degree and doctorate in materials science from Kansas State University, and a master’s degree in business administration from the Graduate School of Business at the University of Kansas.

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Compensation Committee Interlocks

and Insider Participation

During 2020,2022, no member of Charter’s Compensation and Benefits Committee was an officer or employee of Charter or any of its subsidiaries. During 2020,2022, Mr. Zinterhofer served as Lead Independent Director and Mr. Rutledge served as Chairman and CEO.CEO through November 30, 2022 and as Executive Chairman from December 1, 2022 through December 31, 2022.

During 2020:2022: (1) none of Charter’s executive officers served on the compensation committee of any other company that has an executive officer currently serving on Charter’s boardBoard of directorsDirectors or Compensation and Benefits Committee; and (2) none of Charter’s executive officers served as a director of another entity in circumstances where an executive officer of that entity served on the Compensation and Benefits Committee of Charter’s boardBoard of directors.Directors.

Report of the Compensation and Benefits Committee

The following report does not constitute soliciting materials and is not considered filed or incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Securities Exchange Act, of 1934, as amended, unless we specifically state otherwise.

The Compensation and Benefits Committee has reviewed and discussed with management the Compensation Discussion and Analysis set forth below including the accompanying tables and recommended to the board of directors that it be included in this proxy statement.

W. LANCE CONN, Chairman

GREGORY B. MAFFEI

STEVEN A. MIRON

MAURICIO RAMOS

ERIC L. ZINTERHOFER

 

 

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Compensation Discussion and Analysis

This Compensation Discussion and Analysis (“CD&A”) describes important elements of our executive compensation program and compensation decisions for our named executive officers (“NEOs”) in fiscal year 2020.2022. The Compensation and Benefits Committee of our Board of Directors (the “Committee”), working with management and with input from its independent compensation consultant, oversees these programs and determines compensation for our NEOs. This CD&A should be read together with the compensation tables and related disclosures set forth elsewhere in this proxy statement.

Fiscal Year 20202022 Named Executive Officers

 

Thomas M. Rutledge, Chairman and Chief Executive Officer

Thomas M. Rutledge, Executive Chairman (previously served as Chairman and Chief Executive Officer until December 1, 2022)

 

John Bickham, President and Chief Operating Officer

Christopher L. Winfrey, President and Chief Executive Officer (previously served as Chief Operating Officer until December 1, 2022)

 

Rich DiGeronimo, Chief Product & Technology Officer

Richard J. DiGeronimo, President, Product & Technology (previously served as Chief Product & Technology Officer until December 1, 2022)

 

David G. Ellen, Senior Executive Vice President

David G. Ellen, Senior Executive Vice President

 

Jessica M. Fischer, Chief Financial Officer

Christopher L. Winfrey, Chief Financial Officer

Jonathan Hargis, Special Advisor to the COO (previously served as EVP, Chief Marketing Officer until April 1, 2022)

Executive Summary

Fiscal 20202022 Operational and Financial Highlights

Despite the significant challenges posedIn spite of challenging market dynamics with low connect activity driven by the COVID-19 pandemic overhistorically low customer churn, Charter achieved customer relationship growth in 2022 – and its highest growth in mobile lines to-date – and annual increases in both top and bottom-line financial performance. Over the course of 2020,the year, Charter continued to successfully serveexpand and improve services for its customerscustomers: progressing rural build-out initiatives and operatethe beginning of its business asnetwork evolution plans to deliver multi-gig broadband speeds across its entire footprint. Charter also introduced the new Spectrum One bundle in late 2022, which brings together Spectrum Internet®, Advanced Wi-Fi, and Unlimited Spectrum Mobile, to offer consumers fast, reliable and secure on-line connections on their favorite devices at home and on-the-go in a provider of connectivity services. In response to the pandemic, Charter took a number of significant actions during the year:

Offered customers a Remote Education Offer pursuant to which new customers with students or educators in the household were eligible to receive Charter’s Internet service for free for 60 days;

Offered customers the Keep Americans Connected (“KAC”) pledge which paused collection efforts and related disconnects for residential and small and medium business (“SMB”) customers with COVID-19 related payment challenges;

Opened WiFi access points across Charter’s footprint for public use and offered public access to Spectrum News websites to ensure people have access to high-quality local news and information;

Donated significant airtime to run public service announcements to our entire footprint; and

Prioritized requests from government, healthcare and educational institutions for new fiber connections, bandwidth upgrades and new services.

In addition, Charter took a number of steps to support its employees, providing additional paid sick time for COVID-19-related illnesses, a flex time program to address other COVID-19-related issues, and a $1.50 per hour wage increase for hourly field operations and customer service call center employees. This wage increase was also part of Charter’s commitment to raise its minimum starting wage for hourly employees to $20 an hour over the next two years.

While taking these key actions in response to the pandemic, Charter’s operating and investment strategy enabled robust customer relationship growth and strong financial results. These results were driven in particular by continued investments in systems integrations and automation — including the self-installation program — and in Charter’s network, which provided bandwidth to withstand surging use, particularly among residential customers.high-value package. For the fiscal year ended December 31, 2020:2022, Charter achieved the following key operational and financial objectives:

 

Total customer relationships grew by 1,895,000, or 6.5%

Total customer relationships grew by 126,000, or 0.4%

 

Mobile lines grew by 1,293,000, 345,000 more than in the prior year

Mobile lines grew by 1,728,000, Internet customers by 344,000

 

Revenue grew by 5.1% to $48.1 billion

Revenue grew by 4.5% to $54.0 billion

 

Adjusted EBITDA grew by 9.9% to $18.5 billion

Adjusted EBITDA grew by 4.8% to $21.6 billion(1)

 

Free cash flow grew by $2.5 billion or 53.4%

Free cash flow of $6.1 billion(1)

 

Charter also purchased approximately 23.8 million shares of Charter Class A common stock and Charter Holdings common units for approximately $11.7 billion in 2022 at an average price per share of $491.48.

 

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Charter also purchased approximately 21.1 million shares of Charter Class A common stock and Charter Holdings common units for approximately $12.1 billion in 2020 at an average price per share of $574.00.
(1)

See “Non-GAAP Financial Measures” in Appendix A.

The graph below tracks Charter’s 5-year total shareholder return (TSR) against the S&P 500 and peer groupPrimary Peer Group companies. SinceNo changes were made to Charter’s peer group was changedPrimary or Secondary Peer Groups in 2020, both current and prior peer group companies are tracked2022 (the Secondary Peer Group is not included on the graph. The changes to peer group companies are discussed further in this Compensation Discussion & Analysis.graph).

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COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*

Among Charter Communications, Inc., the S&P 500 Index,

2019and a Peer Group and 2020 Peer Group

 

LOGOLOGO

Talent Planning & CEO Transition

The transition of the CEO role from Mr. Rutledge to Mr. Winfrey and the promotion of Mr. DiGeronimo to the role of President, Product & Technology reflects the conclusion of a multi-year succession planning process wherein the Committee and the Board along with the support of advisors and Mr. Rutledge, identified Mr. Winfrey as the appropriate successor to Mr. Rutledge as CEO and expanded Mr. DiGeronimo’s responsibilities to include oversight of Charter’s Programming Acquisition function. As part of the CEO succession process, the Committee considered Mr. Winfrey’s nearly 25 years of cable industry experience, his significant strategic contributions to the Company since joining Charter as CFO in 2010, and his achievements since assuming broader operating responsibilities in 2019 and the role of Chief Operating Officer in 2021.

The Committee works closely with the CEO (which was Mr. Rutledge through November 30, 2022 and Mr. Winfrey thereafter), management and the Committee’s consultants in talent planning and executive transitions for the Company’s executive officers. For 2022, such activity included Mr. Winfrey assuming the role of President and CEO (with Mr. Rutledge transitioning to Executive Chairman) and Mr. DiGeronimo assuming the role of President, Product & Technology. The Committee’s work to promote these individuals included establishing the appropriate expansion and transition of responsibilities, conducting talent planning and development processes, and crafting the proper compensation incentives.

Prior to his assuming the role of Executive Chairman, the Committee also worked closely with Mr. Rutledge in connection with talent planning activities for other non-NEO executives, including the promotion of successors for both Mr. Hargis and the Company’s former Executive Vice President, Field Operations. Mr. Hargis and the former Executive Vice President, Field Operations each transitioned to the role of Special Advisor to the COO effective April 1, 2022 and retired from the Company on December 31, 2022. The Committee believes this process has been effective at progressing Charter’s highly experienced management team and maintaining the focus on delivering on Charter’s strategies for growth and value creation.

Compensation Structure & Pay for Performance Alignment

Charter structures its NEO compensation packages to provide a total opportunity that is competitive against the median of Charter’s compensation programs are designed topeer group, create a strong linkage between the actual compensation earned by our NEOs and Company performance, rewardingand reward both growth-oriented annual operating results as well as sustainable long-term shareholder returns.

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The following table summarizes the performance-focused natureelements of Charter’s incentive designs in 20202022 and the key outcomes demonstrating theresulting alignment between compensation realized by our NEOs and results achieved by the Company.

 

 

20202022 Performance-Oriented Incentive Design Features

Annual Incentive Plan

 

Formulaic plan design with financial metrics that are key indicators of Charter’s success and measures of long-term value creation in a subscription business metrics reward top and bottom-line performance and the achievement of key strategic objectives for the business, weighted as follows: cable revenue (20% weighting), cable Adjusted EBITDA (60% weighting), and Strategic Objectives (20% weighting) with the weighting for our CEO set at 12.5% for revenue, 37.5% for Adjusted EBITDA and 50% for Strategic Objectives.

Formulaic plan design with financial metrics that are key indicators of Charter’s success and measures of long-term value creation in a subscription business metrics reward top and bottom-line performance and the achievement of key strategic objectives for the business. With respect to our NEOs excluding the Executive Chairman, the metrics were total revenue (excluding mobile device related revenue) weighted at 20%, total Adjusted EBITDA (excluding RDOF related expenses and mobile related device sales) weighted at 60%, and Strategic Objectives weighted at 20%. With respect to the Executive Chairman, Mr. Rutledge, the metrics were revenue weighted at 10%, Adjusted EBITDA weighted at 30%, and Strategic Objectives weighted at 60%; the bonus metrics and weightings for Mr. Rutledge were established in consideration of his role as CEO, in which capacity he served until transitioning to Executive Chairman on December 1, 2022.

 

Growth-based performance objectives — threshold, target and maximum performance levels all correspond to positive year-over-year growth in cable revenue and cable Adjusted EBITDA.

Growth-based performance objectives — threshold, target and maximum performance levels all correspond to positive year-over-year growth in revenue and Adjusted EBITDA.

 

Maximum bonus payout level set at 150% of target incentives provides upside potential to incentivize long-term, sustainable performance through Charter’s growth-oriented strategy.

Maximum bonus payout level set at 150% of target incentives provides upside potential to incentivize long-term, sustainable performance through Charter’s growth-oriented strategy.

Long-Term Incentive Plan

Award mix that emphasizes stock price appreciation — grants delivered in a mix of 90% stock options and 10% RSUs, generally. Mr. Rutledge and Mr. Winfrey received awards 100% in stock options to further emphasize the performance-based nature of those awards and in consideration of their key leadership roles within Charter (Mr. Rutledge serving as Chairman and CEO until his transition to Executive Chairman and Mr. Winfrey serving as Chief Operating Officer until his transition to President and CEO).

Multi-year time-based vesting period — awards 100% vest on the third anniversary of the grant date (3-year cliff vesting).

Long-term incentive program aligns pay for performance — since the completion of the Transactions on May 18, 2016, Charter’s philosophy has been to deliver the largest portion of NEO compensation in the form of long-term incentives tied to stock price appreciation, i.e., stock options. Following the Transactions, Charter achieved significant stock price appreciation with the stock price increasing 261% from $227.41 (the closing price of Charter’s Class A common stock on May 18, 2016) to a high of $821.01 on September 2, 2021. Subsequent to this period of substantial growth in the stock price, and within an uncertain, inflationary macroeconomic environment, Charter’s price decreased 59% to $339.10 (the closing stock price as of December 30, 2022) but still represented overall growth of 49% for the period from May 18, 2016 to December 30, 2022. As noted above, Charter’s long-term incentive program design ties the majority of executive pay to appreciation-based equity awards with multi-year vesting periods, which created strong pay for performance alignment over time. In particular, the exercise prices for Charter’s last three annual equity grants – which occurred in mid-January of each year for NEOs and other participants in the equity program – were $512.0575, $625.55, and $588.825 for 2020, 2021 and 2022, respectively. As of December 31, 2022, all of the stock option awards from such grants were unvested and underwater, demonstrating the significant degree of performance accountability within the compensation program, and Charter’s stock price will need to increase by more than 51% in order for our NEOs to realize value from these outstanding stock option awards. Furthermore, as described in the Pay Versus Performance disclosure on page 40 of this proxy, Charter’s long-term incentive program design resulted in strong alignment between NEO compensation and Charter’s total shareholder return (TSR) performance.

 

 

 

 

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2016 Performance-based Program (Messrs. Rutledge, Bickham, Ellen and Winfrey*)

Five-year long-term incentive program (the “2016 Performance-based Program”) — awards to participants were granted in 2016 and designed to provide valueCharter’s compensation structure for the five-year periodNEOs results in an overall mix of pay that is highly performance-based, particularly with respect to the grants.

Award mix that emphasizesproportion of compensation tied to stock price appreciation — grants were delivered in a mix of 90% via stock options and 10% RSUs.

Multi-year time-based vesting period — eligibility for vesting rangeswithout taking into account the performance-based incentives derived from 3previously vested equity awards. The compensation mix delivered to 5 years after grant.

Performance-based vesting criteria tied to significant levels of stock price appreciationthe CEO and other NEOs in addition to time-based criteria,2022, based on the vesting of all awards is further contingent uponvalues disclosed in the attainment of stock price hurdles that represent price appreciation of approximately 30% to 155% from Charter’s stock price at the commencement of the program; vesting of each tranche does not occur until both the applicable time-based and performance-based vesting criteria have been met; vesting may occur up to six years after grant and, if a given price hurdle is not met within that timeframe, the associated tranche of the award is forfeited.

No pay realizable by participants for non-performance — no value would have been received by executives if stock price growth had not exceeded 30% within six years after grant.

Competitive award opportunities — individual grant sizes are calibrated such that, over the program’s duration, a minimum of 70% stock price appreciationSummary Compensation Table, was required for participants to realize value at the median of Charter’s peer group.

2016 Performance-based Program drives shareholder value — Charter adopted the program in 2016 to drive performance in connection with the integration and implementation of Charter’s business strategies following the Transactions.

The day after the completion of the Transactions, Charter’s stock price was $227.41 per share with a total market capitalization of $70.2 billion.

As of December 31, 2020, the closing price of Charter’s Class A common stock was $661.55 with a total market capitalization of $143.1 billion representing a stock price increase of 191% and a total market capitalization increase of 104% or $72.9 billion.

as follows:

 

LOGO

*

Mr. DiGeronimo participates in Charter’s standard annual equity program that provides grants annually in a mix of restricted stock units and stock options, with all awards vesting in full upon the third anniversary of the date of grant. The Committee determined that this program continues to appropriately link Mr. DiGeronimo’s compensation to Charter’s long-term success.

Compensation Actions in 20202022

The Committee’s 2020Committee established 2022 compensation actions for the NEOs were establishedwithin the framework of the Committee’s compensation philosophy and in accordance with the section below regarding the process for determining executive compensation. Compensation decisions are made within the frameworkKey elements of the Committee’s compensation philosophy — benchmarkingprocess include comparing compensation levels against industry and size-appropriate peer group companies, designing pay for performance incentive programs, linking a significant majority of pay to sustained stock price growth, and ensuring that outstanding incentive value appropriately motivates and retains NEOs. Through this approach, the Committee entered into or amended employment agreements, determined any appropriate changes to NEO compensation levels, and established annual and long-term incentive designs for the 20202022 fiscal year.

For all NEOs, The actions undertaken by the Committee approvedfor 2022 included the following:

1.

Entered into an amended and restated employment agreement with Mr. Rutledge in connection with his transition into the role of Executive Chairman.

The Company entered into an amended and restated employment agreement with Mr. Rutledge in connection with his transition to the role of Executive Chairman effective December 1, 2022. Under the agreement, Mr. Rutledge will serve as Executive Chairman of the Company and its Board of Directors through the term of the agreement on November 30, 2023, and he will maintain oversight of the Government Affairs function while providing his guidance and expertise to ensure a formulaicsmooth and successful transition. Mr. Rutledge’s amended and restated employment agreement also provides for the following changes to his compensation that were effective as of December 1, 2022:

Pay Element

PriorNew

Base Salary

$2.5 million$1.25 million

Annual Incentive

300% of base salary300% of base salary (no change)

Long-Term Incentive

$30.0 million$15.0 million

Under the terms of the agreement, Mr. Rutledge’s equity award in 2023 will continue to be entirely in stock options.

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2.

Entered into an amended and restated employment agreement with Mr. Winfrey in connection with his promotion to President and Chief Executive Officer, succeeding Mr. Rutledge.

Mr. Winfrey’s promotion to President and CEO was effective as of December 1, 2022, the date upon which Mr. Rutledge assumed the role of Executive Chairman. Mr. Winfrey’s amended and restated employment agreement has an initial term through December 1, 2025 and provides for the following changes to his compensation that were effective as of the September 20, 2022 execution date of the agreement:

Pay Element

PriorNew

Base Salary

$1.25 million$1.7 million

Annual Incentive

160% of base salary250% of base salary

Long-Term Incentive

$10.0 million$17.0 million

Mr. Winfrey’s agreement also provided for an equity award of $2,000,000, delivered 100% in stock options and granted on September 22, 2022.

3.

Entered into a new employment agreement with Mr. DiGeronimo in connection with his promotion to President, Product & Technology.

Mr. DiGeronimo’s promotion to President, Product & Technology was effective December 1, 2022. Mr. DiGeronimo’s employment agreement has an initial term through December 1, 2025 and provides for the following changes to his compensation that are effective as of the September 20, 2022 execution date of the agreement:

Pay Element

PriorNew

Base Salary

$1.25 million$1.45 million

Annual Incentive

160% of base salary200% of base salary

Long-Term Incentive

$8.0 million$10.0 million

Mr. DiGeronimo’s employment agreement also provided for an equity award of $800,000, delivered in a mix of 90% stock options and 10% RSUs and granted on September 22, 2022 following the execution of the agreement. Under the terms of the agreement, Mr. DiGeronimo’s future equity awards will also be delivered in a mix of 90% stock options and 10% RSUs.

4.

Amended Mr. Ellen’s employment agreement as of October 27, 2022.

Mr. Ellen’s employment agreement, effective July 1, 2021, was amended to extend his term through December 1, 2023 (from the original term date of July 1, 2023).

5.

Amended Mr. Hargis’s employment agreement effective April 1, 2022 in connection with his transition to the role of Special Advisor to the COO on April 1, 2022 and retirement on December 31, 2022.

Mr. Hargis’s current employment agreement, which was initially effective May 18, 2021, was amended effective April 1, 2022 to transition his role from EVP, Chief Marketing Officer to Special Advisor to the COO and to change the term of his agreement to December 31, 2022 from the original term date of May 18, 2023. In his role as Special Advisor, Mr. Hargis reported to the then COO and was responsible for assisting successor executives, managing key projects, and providing advice and counsel through the end of the term. In addition, the amendment to Mr. Hargis’s agreement provided for the following compensation changes as of the April 1, 2022 effective date:

Pay Element

  Prior  New

Base Salary

  $700,000  $350,000

Annual Incentive

  150% of base salary  150% of base salary (no change)

There were no changes to Mr. Hargis’s long-term incentive opportunity in connection with the amendment to his employment agreement as he received no further long-term incentive awards after such time, and upon the conclusion of his agreement term on December 31, 2022, Mr. Hargis retired from the Company.

6.

Granted annual equity awards to Messrs. Rutledge, Winfrey, DiGeronimo, Ellen and Hargis, and Ms. Fischer on January 15, 2022.

All NEOs received grants under Charter’s annual equity program on January 15, 2022 based on their long-term incentive opportunities then in effect. Messrs. Rutledge and Winfrey’s long-term incentive opportunities were as set forth in their

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amended and restated employment agreements dated October 27, 2020 and October 19, 2021, respectively. The individual grant values and equity mixes were as follows:

Executive

LTI Grant
Guideline
Equity Mix

Thomas M. Rutledge

$30.0 million

100% stock options

Christopher L. Winfrey

$10.0 million

100% stock options

Richard J. DiGeronimo

$8.0 million

90% stock options / 10% RSUs

David G. Ellen

$5.5 million

90% stock options / 10% RSUs

Jessica M. Fischer

$3.5 million

90% stock options / 10% RSUs

Jonathan Hargis

$3.5 million

90% stock options / 10% RSUs

7.

Established the 2022 annual incentive plan.

Under Charter’s 2022 annual incentive plan design, for the full 2020 fiscal year, tied to the achievement of cable revenue, cable Adjusted EBITDA, and strategic objectives relating to Capital and Cash Flow Management and Charter’s Spectrum Mobile business. Mr. Rutledge’s annual incentive was also tied to additional strategic objectives relating to talent planning and the management of the Company’s operational and strategic response to the COVID-19 pandemic. The annual incentive plan provides each NEO the opportunityall NEOs were eligible to earn a cash incentive betweenranging from 0% to 150% of their target annual incentive opportunity, which is establishedset as a percentage of their annual base salary, based on actualsalary. Actual performance achievement against the plan’s financial metrics and strategic objectives.objectives determined the actual payouts received under the plan. The metrics, weightings and performance ranges were as follows:

 

Metric

  

    Weighting    

(Executive Chairman)

  

Weighting

    (Other NEOs)    

  

Threshold / Maximum
Performance

(% of Target)

Revenue

   10.0  20.0 97.6% / 101.0%

Adjusted EBITDA

   30.0  60.0 96.1% /  102.0%

Strategic Objectives

   60.0  20.0 N/A

Strategic objectives related to Capital and Free Cash Flow Management and the execution of Rural Digital Opportunity Fund (RDOF) and Subsidized Rural Builds Initiatives for all NEOs, with additional strategic objectives for the Executive Chairman relating to Talent Planning and Diversity and Inclusion efforts.

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For Mr. Rutledge, in advanceApart from the actions described above, there were otherwise no changes to the base salary, annual incentive and long-term incentive compensation for the NEOs. All of the expiration of his current employment agreement on May 17, 2021,2022 equity awards granted to the Company entered into an amended employment agreement with him effective October 27, 2020 and extending his term through December 31, 2024. The agreement provides for a transition negotiation period between August 15, 2022 and February 15, 2023, wherein Mr. Rutledge and the Company may mutually agree upon him transitioning to a new role or remaining in his current position as CEO through the end of the term. The agreement increases Mr. Rutledge’s base salary to $2.5 million as of the effective date, retains his current annual incentive opportunity of 300% of base salary, and provides for a grant of stock options on November 3, 2020 with a grant date fair value of $30 million and additional annual grants of stock options over 2021 through 2024, each also with a grant date fair value of $30 million and generally subject to his continued service as CEO through each date of grant. All stock option grants made under the agreementNEOs fully vest in full on the third anniversary of the respective date of grant and have(i.e., 3-year cliff vesting) with a 10-year term to exercise and thestock options. The number of stock options granted is based onequals the portion of the executive’s grant value allocated to stock options divided by the Black-Scholes value per stock option at grant. The number of RSUs granted equals the portion of the stock options at grant.

For Mr. Bickham, in advanceexecutive’s grant value allocated to RSUs divided by the grant price (the average of the expirationhigh and low prices of his current employment agreement on May 18, 2021, the Company entered into an amended employment agreement with him effective December 23, 2020. The amended agreement extends his term through December 31, 2022, during which he will continue to serve as President and Chief Operating Officer until assuming the role of Vice Chairman at a time between July 1, 2021 and December 31, 2021, with the specific date determined at the request of the CEO. For the period from January 1, 2022 through December 31, 2022 (the “Transition Period”) Mr. Bickham will devote fifty percent of his business time and efforts to the business and affairs of the Company. The agreement provides Mr. Bickham with a base salary of $1,875,000 for the period from January 1, 2021 through December 31, 2021 and a base salary of $937,500 during the Transition Period, retains his current annual incentive opportunity of 200% of base salary through December 31, 2022, and provides for a grant ofCharter common stock options on December 23, 2020 with a grant date fair value of $31.5 million. The stock options vest in full on December 31, 2022 and have a 10-year term to exercise, and the number of stock options granted is based on the Black-Scholes valuedate of the stock options at grant. grant).

See the “Employment Agreements” section below for additional information on the employment agreements for Messrs. Rutledge and Bickham.the NEOs.

For Messrs. Ellen and Winfrey, no changes were made to their base salary, annual incentive or long-term incentive opportunities. As participants in the 2016 Performance-based Program described above, Messrs. Ellen and Winfrey did not receive awards under the 2020 annual equity program in which most other senior executives, including Mr. DiGeronimo, participated. However, at the time the 2020 annual equity program was approved, the Committee also approved equity awards of $7.5 million and $9 million for Messrs. Ellen and Winfrey, respectively. These awards were granted at the same time annual grants occurred on January 15, 2020 and were otherwise structured the same as for other senior executives who participated in the annual equity program, with awards delivered in a mix of 90% stock options and 10% RSUs (with the number of awards granted being based on the Black-Scholes value of stock options at grant and the grant price of RSUs) and vesting in full on the third anniversary of the date of grant with a 10-year term to exercise stock options.

The Committee determined to make these 2020 equity awards for Messrs. Ellen and Winfrey based on several factors. First, the Committee considered the strong performance achievement to-date under the 2016 Performance-based Program in which Messrs. Ellen and Winfrey participated — over the period from May 18, 2016 through December 31, 2019, Charter’s stock price increased 113% yielding incremental market capitalization of $43.9 billion. Second, the Committee assessed the outstanding, unvested equity value that Messrs. Ellen and Winfrey were projected to realize under the 2016 Performance-based Program and the anticipated timing of when such value would vest. If Messrs. Ellen and Winfrey did not receive grants in 2020 with the 3-year cliff vesting schedule used in the annual equity program, they would not have any long-term equity awards eligible for vesting upon the 2022 expiration of the grants made under the 2016 Performance-based Program. In particular, at the time 2020 equity awards were approved for Messrs. Ellen and Winfrey, four of the five price hurdles under the 2016 Performance-based Program ($289.76, $364.97, $455.66, and $496.58) had already been achieved, and in September 2020 the fifth price hurdle ($564.04) was achieved. Based on Charter’s December 31, 2020 closing stock price of $661.55, which remains above the fifth price hurdle, there is the possibility that the remaining unvested awards under the program will be fully vested by mid-2021. The 2020 grants, along with subsequent awards under the annual equity program anticipated to occur in 2021 and 2022, therefore ensure that Messrs. Ellen and Winfrey have an appropriate amount of unvested equity value to motivate performance and provide continued alignment with shareholders as well as retention following the conclusion of the 2016 Performance-based Program.

For Mr. DiGeronimo, no changes were made to his base salary, annual incentive or long-term incentive opportunity, which have been in effect since the Company entered into an amended and restated employment agreement with him effective July 1, 2019 in connection with his promotion to Chief Product & Technology Officer. Since Mr. DiGeronimo participates in the Company’s annual equity program, the Committee approved an equity award of $4 million for him, which was granted on January 15, 2020 at the time annual equity awards were granted to all eligible employees. This award was delivered in a mix of

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90% stock options and 10% RSUs (with the number of awards granted being based on the Black-Scholes value of stock options at grant and the grant price of RSUs) and vests in full on the third anniversary of the date of grant with a 10-year term to exercise the stock options.

Compensation Actions in 20212023

In addition to the above, in December 20202022 the Committee approved a two-year renewal of Ms. Fischer’s employment agreement, increasing her base salary from $700,000 to $800,000 as of the February 5, 2023 effective date of her amended employment agreement and increasing her target long-term incentive opportunity from $3.5 million to $5.5 million as of the January 17, 2023 grant date for the Company’s 2023 annual equity program. At that time, the Committee also approved awards under the 2023 annual equity program for 2021, with awards under this program granted on January 15, 2021 to the NEOs (except Mr. Hargis who retired December 31, 2022) and all other eligible employees and including all NEOs except for Mr. Bickham.employees. Pursuant to the terms of their respective employment agreements, Mr. Rutledge received a grantan award of $30$15.0 million in stock options, Mr. Winfrey received an award of $17.0 million in stock options, and Mr. Bickham did not receiveDiGeronimo received an equity award as his grant for 2021 was includedof $10.0 million in the award made upon the executiona mix of his amended employment agreement on December 23, 2020. Messrs.90% stock options and 10% RSUs. Mr. Ellen and WinfreyMs. Fischer each received grantsan award of $5$5.5 million, and $6 million, respectively, and these representedbased on their first awards under the annual equity program since the commencement of the 2016 Performance-based Program (in which they participatedlong-term incentive opportunities in lieu of participation in the annual equity program for the period from 2016 through 2020). Mr. DiGeronimo received a grant of $4 million, the same value as he received in 2020. With the exception of Mr. Rutledge, whose grant was comprised entirely of stock options, grants to the NEOs under the annual equity program wereeffect and delivered in a mix of 90% stock options and 10% RSUs (with the number ofRSUs. All awards granted being based on the Black-Scholes value of stock options and the grant price of RSUs). All grants to the NEOs vest in full on the third anniversary of the January 17, 2023 grant date of grant with a 10-year term to exercise stock options. The number of stock options granted equals the portion of the executive’s grant value allocated to stock options divided by the Black-Scholes value per stock option at grant. The number of RSUs granted equals the portion of the executive’s grant value allocated to RSUs divided by the grant price (the average of the high and low prices of

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Charter common stock on the date of grant). The Committee has consistently authorized the annual equity awards to be effective in mid-January of each year and has not taken into account any fluctuations in Charter’s stock price with respect to the timing of the annual awards.

As the Company has recently committed to a number of multi-year transformational and industry-leading initiatives, the Committee also approved a new 2023 Performance-Based Equity Program (the “2023 Program”) in February. The 2023 Program is similar to the program the Company adopted in 2016, which was a five-year long-term incentive program designed to deliver value to executives only upon achieving sustained growth in the Company’s stock price corresponding to aggressive price targets.

The 2023 Program provides participants the opportunity to receive 5x their annual grant value, less the already issued January 2023 annual grant, up-front in a single performance award of 90% in stock options and 10% in RSUs that vest based on the achievement of both stock price hurdles as well as time-based vesting criteria ranging from 3 to 5 years following the grant date. All awards under the 2023 Program require the achievement of significant increases to Charter’s stock price by the sixth anniversary of the date of the grant in order to vest. The lowest price hurdle represents 28% stock price appreciation from $396.94, which was the closing stock price as of February 10, 2023, and the highest price hurdle of $1,000 represents 152% stock price appreciation from this level. The achievement of each stock price hurdle is determined based on the 60-trading day average closing stock price, and each tranche of stock options and RSUs will vest upon both the stock price hurdle and the time-based vesting criteria being satisfied.

Participants in the 2023 Program include Messrs. Winfrey and DiGeronimo and Ms. Fischer. Under the 2023 Program, Mr. Winfrey received an award valued at approximately $68.0 million, Mr. DiGeronimo received an award valued at approximately $40.0 million, and Ms. Fischer received an award valued at approximately $22.0 million. These awards were granted on February 22, 2023 with a grant price of $380.53, delivered 90% in the form of stock options and 10% in the form of RSUs, and subject to the following vesting conditions:

   

  Price Hurdle

  Vesting

  Requirement

  Approximate(1) % of Stock Options Vesting  Approximate(1) % of RSUs Vesting 
  Eligible to Vest
on or after 3rd
Anniversary of
the Grant Date
  Eligible to Vest
on or after 4th
Anniversary of
the Grant Date
  Eligible to Vest
on or after 5th
Anniversary of
the Grant Date
  Eligible to Vest
on or after 3rd
Anniversary of
the Grant Date
  Eligible to Vest
on or after 4th
Anniversary of
the Grant Date
  Eligible to Vest
on or after 5th
Anniversary of
the Grant Date
 

$507 / $564(2)

   6.7  6.7  6.7         

$639

   6.7  6.7  6.7         

$798

   6.7  6.7  6.7  11.1  11.1  11.1

$870

   6.7  6.7  6.7  11.1  11.1  11.1

$988

   3.3  3.3  3.3  5.6  5.6  5.6

$1,000

   3.3  3.3  3.3  5.6  5.6  5.6

(1)

Percentages may not sum to 100% due to rounding.

(2)

For Mr. Winfrey who participated in the similar performance-based award program in 2016, the lowest stock price hurdle for awards under the 2023 Program is $564, which is equivalent to the highest stock price hurdle under the 2016 awards.

All stock options granted under the 2023 Program have a 10-year term to exercise, and the number of stock options and RSUs granted to each participant was determined based upon: (i) the target grant value of the award, (ii) the value per each stock option and RSU for each tranche, as calculated by a Monte Carlo model of the value of such awards, and (iii) the number of stock options and RSUs required to deliver the grant value such that 90% of the total combined number of RSUs and options granted was comprised of stock options and 10% of the total combined number of RSUs and options granted was comprised of RSUs.

By combining equity award value that would ordinarily be granted in future years into a single grant and tying such value to the achievement of significant stock price growth objectives, Charter believes that the 2023 Program will create a strong incentive for participants to generate sustained, long-term shareholder value. In particular, the size and length of the program aligns with Charter’s multi-year growth initiatives – including network expansion in both rural and existing markets and network evolution to providing converged gigabit connectivity – the successful execution of which are expected to drive stock price growth. Furthermore, no awards under the 2023 Program are eligible to vest in connection with any termination, except upon death or disability or for an involuntary termination without cause or resignation for good reason following a change in control; in each case, only award tranches for which the price hurdle is satisfied at the time of termination are eligible to vest. The lack of accelerated vesting upon any involuntary termination or voluntary resignation outside of a change in control, death or disability where price hurdles have been achieved is an important shareholder protection mechanism and ensures that

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participants only recognize value from the program in connection with the achievement of price appreciation over a multi-year time horizon.

At the same time that awards under the 2023 Program were approved, the Committee also approved amendments to the employment agreements for Mr. Winfrey and Mr. DiGeronimo, removing references to future annual equity grants to be provided under such agreements.

Process for Determining Executive Compensation

Role of the CEO and Compensation and Benefits Committee

The Compensation and Benefits Committee of our Board of Directors is responsible for overseeing our overall compensation structure, policies and programs and assessing whether our compensation structure results in appropriate compensation levels and incentives for executive management.

PayThe Committee determines the pay levels for our NEOs are determined by the Committeein consideration of a number of factors and within the framework of the Company’s compensation philosophy, as described below, and in consideration of a number of factors, includingbelow. Factors considered include each individual’s rolesrole and responsibilities within Charter, the individual’s experience and expertise, pay levels for comparable peer positions both within Charter and in the competitive marketplace, and performance of the individual and Charter as a whole. In determining thesesetting pay levels for each element of compensation, the Compensation and Benefits Committee considers all forms of compensation and benefits. benefits and the resulting impact on total value delivered to the executive.

Each year, the CEO reviews the performance of each of the other NEOs and recommends both compensation adjustments based on overall competitiveness and effectiveness of the compensation program as well as actual bonus payouts under the annual incentive plan in light of performance against the objectives approved by the Committee. The Committee regularly meets in executive session to consider these matters, and while the Committee considers the CEO’s recommendations along with analysis provided by the Committee’s compensation consultant, it retains full discretion to set all compensation for our NEOs other than the CEO. With respect to the CEO, the Committee recommends the CEO’s compensation to Charter’s full Board of Directors, with non-employee directors voting on the approval of any recommendations, subject to any employment agreements.

Role of the Independent Compensation Consultant

The Committee has retained Semler Brossy Consulting Group, LLC (“Semler Brossy”) to serve as its independent compensation consultant and assist in fulfilling its responsibilities. Semler Brossy is engaged by and reports directly to the Committee, providing recommendations and advice related to all aspects of Charter’s executive compensation program. As necessary, Semler Brossy works with management to obtain information necessary to develop their recommendations.

During the year ended December 31, 2020,2022, Semler Brossy provided no services to Charter other than those provided directly to or for the benefit of the Committee, including: attending meetings; providing information, research and analysis pertaining to executive compensation programs; conducting a comprehensive assessment of our annual executive compensation program relative to our peer groups and broader industry data; updating the Committee on market trends and changing practices; and advising on the design of the executive compensation program and the reasonableness of individual compensation targets and awards.awards; and providing assistance in the appointment of a new CEO and the associated transitions of other executives, including competitive information on pay levels and contract terms. The Committee has determined that there was no conflict of interest between its compensation consultant and the Committee during the year ended December 31, 2020.2022.

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Compensation Philosophy and Competitive Positioning

The Committee applies the following pay philosophy for purposes of setting NEO compensation and designing annual and long-term incentive programs that motivate the performance and retention of our NEOs:

 

 1.

Base salary, and target annual incentive, opportunities areand annualized grant date values for long-term equity incentive generally positioned between the corresponding 50th and 75th percentile levels of the peer groupgroup;

 

 2.

Annual incentive design that rewards the achievement of meaningful year-over-year growth in revenue and Adjusted EBITDA and the execution of key strategic objectives for the businessbusiness; and

 

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 3.

Long-term equity compensationincentive design that createsemphasizes stock options to create a strong linkage between pay and sustained stock price performance, tailored depending onperformance. In order for NEOs to realize their target long-term incentive opportunity under the level and role of the applicable NEO and generally positioned between the corresponding 50th and 75th percentile levels of the peer group:2022 equity program, Charter’s stock price must achieve meaningful price appreciation.

a.

For the Chairman & CEO, President & COO, Sr. Executive Vice President, and Chief Financial Officer roles (Messrs. Rutledge, Bickham, Ellen and Winfrey, respectively) which participate in the 2016 Performance-based Program:

Structured to not deliver any value for performance below 30% stock price growth over a six-year period

Potential value realizable by participants targeted at the median of the compensation peer group when stock price growth reaches approximately 70% over a six-year period

Potential value realizable by participants targeted to reach or exceed the 75th percentile of the compensation peer group when stock price growth is at or above approximately 125% over a six-year period

b.

For the Chief Product & Technology Officer (Mr. DiGeronimo) and for Messrs. Rutledge, Ellen and Winfrey for awards granted since the 2016 Performance-based Program awards:

Long-term incentive grant value targeted at or above the median of the peer group, delivered in a mix of RSUs and stock options (with Mr. Rutledge’s award being 100% stock options), vesting 100% after a three-year period

c.

For Mr. Bickham’s 2020 equity award:

Long-term incentive grant value targeted at or above the median of the peer group, delivered 100% in stock options, vesting 100% on December 31, 2022

Compensation Peer GroupGroups

The Committee maintains a Primary Peer Group and Secondary Peer Group and examines Charter’sthese peer groupgroups on an annual basis. The Committee uses the following criteria to identify peers:members of the Primary Peer Group:

 

North American publicly traded companies, in particular internet providers and organizations in the video programming distribution, wireless communication or advertising spaces

Size: Approximately $13 billion to $204 billion in annual revenue (0.25x to 4.0x Charter’s revenue)

Relevant Industries: Cable & Satellite, Integrated Telecommunication Services and Wireless Telecommunications, Movies & Entertainment and Broadcast

In addition to the Primary Peer Group, the Committee also examines the executive compensation practices of other larger publicly traded, consumer-oriented companies, in particular internet providers and organizations inwhich compose the video programming distribution, wireless communication or advertising spacesSecondary Peer Group.

Size: Approximately $11 billion to $183 billion in annual revenue (0.25x to 4.0x the combined Company’s revenue)

Relevant Industries: Cable & Satellite, Integrated Telecommunication Services and Wireless Telecommunications, Movies & Entertainment and Broadcast

In 2020,2022, the Committee reviewed the composition of the peer groupgroups, including the impact of merger and approved fouracquisition activity on companies within the groups, and determined that no changes to theeither peer group: the removal of 21st Century Fox following its acquisition by The Walt Disney Company, the addition of Fox Corporation, the inclusion of ViacomCBS following the merger of Viacom Inc. and CBS Corporation, and the removal of Sprint following its merger with T-Mobile US, Inc..group were necessary.

 

Primary Peer Group
AT&T Inc.  DISH Network Corp.  Netflix, Inc.  ViacomCBSParamount Global
Cisco Systems, Inc.  Fox Corp.  The Walt Disney Company  
Comcast Corporation  Liberty Global Plc  T-Mobile US, Inc.  
Warner Bros. Discovery, Inc.  Lumen Technologies, Inc. (formerly CenturyLink, Inc.)  Verizon Communications Inc.  

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In addition to the peer group, the Committee also examines the executive compensation practices of other larger publicly traded, consumer-oriented companies, which compose the secondary peer group. Based upon a review of the secondary peer group, which has not been changed since 2016, the Committee approved the removal of FedEx and Macy’s — which have had their ratio of market capitalization to revenue fall below a targeted range for such peers — and the addition of IBM and Raytheon – which met the financial and other qualitative criteria considered for secondary peers.

 

Secondary Peer Group
American Express Co.3M IBM NIKE, Inc.Raytheon Technologies
Bristol-Myers Squibb Co.Johnson & JohnsonOmnicom Group, Inc.The Coca-Cola Co.
Colgate-Palmolive Co.Kimberly-Clark Corp.PepsiCo,Pfizer Inc. The Kraft Heinz Co.
General Mills, Inc.American Express Co. Marriott International, Inc.Pfizer Inc.
Gilead Sciences, Inc.MerckJohnson & Co., Inc.Johnson Philip Morris International, Inc. 
Honeywell International, Inc.Bristol-Myers Squibb Co. Mondelez International,Merck & Co., Inc. Procter & Gamble Co. 
CaterpillarMondelez International, Inc.Qualcomm
Gilead Sciences, Inc.Nike, Inc.Raytheon Technologies
Honeywell International, Inc.PepsiCo, Inc.The Coca-Cola Co.

Elements of Compensation

Base Salary

We setCharter sets base salaries with regard to the level of the individual’s position with Charter and the individual’s current and sustained performance results. The Committee annually reviews base salary levels for the NEOs and determines any necessary changes in those salary levels. Adjustments to base salary levels may be based on factors such as new roles and responsibilities assumed by the executive or the executive’s impact on our then-current goals and business objectives. Salary adjustmentsThe Committee may also be based on changesmake salary adjustments in consideration of competitive market pay levels for comparable positions in the competitive market for executive talent.positions.

Charter does not apply specific weighting to any one factor in setting the level of salary, and the process ultimately relies on the Committee’s judgment. Although we generally target salaries at market median compared to an industry peer group and other compensation survey data for experienced executives, the Committee may also take into account historical compensation, potential as a key contributor, and special recruiting or retention situations when deciding to set salaries for individual executives relative to market median pay levels. Consistent with our pay philosophy and taking into consideration the factors set forth above, salary increases are neither automatic nor the same for each individual.

The Committee reviewed base salaries for our NEOs leading up to and over the course of 2020, approving an increase in2022, providing base salary adjustments for Messrs. Rutledge, Winfrey and DiGeronimo as part of the CEO transition process. Mr. Rutledge’s base salary decreased from $2,000,000$2.5 million to $2,500,000$1.25 million effective December 1, 2022 pursuant to the terms of his amended and restated employment agreement effective as of such date and in connection with his transition to the role of Executive Chairman.

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Mr. Winfrey’s base salary increased from $1.25 million to $1.7 million effective September 20, 2022 pursuant to the terms of his amended and restated employment agreement executed as of such date and in connection with his December 1, 2022 promotion to President and CEO. Mr. DiGeronimo’s base salary increased from $1.25 million to $1.45 million effective September 20, 2022 pursuant to the terms of his employment agreement executed as of such date and in connection with his December 1, 2022 promotion to President, Product & Technology. Mr. Hargis’s base salary decreased from $700,000 to $350,000 effective April 1, 2022 in connection with the amendment ofto his employment agreement and withhis transition to the role of Special Advisor to the COO also effective as of such increase effective October 27, 2020 (the effective date of his amended employment agreement). Mr. Rutledge’sdate. In determining the base salary had been atadjustments for Messrs. Winfrey, Rutledge, DiGeronimo, and Hargis, the $2,000,000 level since he joinedCommittee considered a number of factors, including their excellent performance and contributions to the Company, changes to their responsibilities in 2012. The Committee also approved an increase in Mr. Bickham’s salary from $1,500,000 to $1,875,000, effective January 1, 2021their new or expanded roles, and therefore not reflected in the table below. For both Mr. Rutledge and Mr. Bickham, these salary increases were in consideration of their contributions as key leaders of the Company,market compensation levels observed for comparable rolespositions among peer companies, the exceptional performance delivered over their respective tenures at Charter, and the desire by the Company to extend the terms of their employment.organizations. For our other NEOs, the Committee determined that no base salary adjustments were necessary at this time.

 

Executive Officer

  2020
Base Salary
   Change from Prior Year

Thomas M. Rutledge

  $2,500,000  

25.0% increase

(from $2,000,000)

John Bickham

  $1,500,000**   None

Rich DiGeronimo

  $1,000,000   None

David G. Ellen

  $1,250,000   None

Christopher L. Winfrey

  $1,000,000   None
*

Base salary increase was effective October 27, 2020.

**

Base salary was increased to $1,875,000 effective January 1, 2021.

Executive Officer

  Base Salary as of
December 31, 2022
   Change from Prior Year

Thomas M. Rutledge

  $1,250,000   50.0% decrease from $2,500,000 effective December 1, 2022

Christopher L. Winfrey

  $1,700,000   36.0% increase from $1,250,000 effective September 20, 2022

Richard J. DiGeronimo

  $1,450,000   16.0% increase from $1,250,000 effective September 20, 2022

David G. Ellen

  $1,250,000   None

Jessica M. Fischer

  $700,000   None

Jonathan Hargis

  $350,000   50.0% decrease from $700,000 effective April 1, 2022

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Annual Incentive Plan

Charter has established the Annual Incentive Plan for the NEOs to provide a cash-based incentive whichthat rewards the achievement of strong annual operational and financial results.results and drives annual progress for key strategic objectives. Each year, the actual amount of compensation earned by participants under the plan is dependent upon performance against pre-established objectives which are set and approved by the Committee. TheIn determining the particular performance metrics under the plan, are selected based onthe Committee selects what the Committeeit believes to be the best annual financial and operational metrics that support long-term success and are most closely tiedwith the strongest linkage to the creation of shareholder value.value creation. When establishing the particular threshold, target and maximum performance objectives for each plan metric, the Committee seeks to set goals that represent challenging but attainable year-over-year improvement in Company performance.

For fiscal year 2020,2022, the Annual Incentive Plan for our NEOs was based onutilized both key financial measures of top and bottom-line performance as well as strategic objectives that representrepresented operating priorities important to the success of Charter’s business. The financial metrics under the plan were cabletotal revenue (weighted 12.5%10% for Mr. Rutledge and 20% for the other NEOs) and cabletotal Adjusted EBITDA (weighted 37.5%30% for Mr. Rutledge and 60% for the other NEOs). Mr. Rutledge’sThe strategic objectives relatedthat applied to Talent Planning,all NEOs under the management of the COVID-19 pandemic, the Company’s Mobile product, and Capital and Free Cash Flow Management (collectively weighted 50%). For the other NEOs, the strategic objectives related to the Company’s Mobile product (weighted 10%) andplan were Capital and Free Cash Flow Management (weighted 5% for Mr. Rutledge and 10% for the other NEOs) and the execution of RDOF and Subsidized Rural Builds Initiatives (weighted 5% for Mr. Rutledge and 10% for the other NEOs). The strategic objectives that applied only to Mr. Rutledge’s incentive award related to Talent Planning (weighted 40%) and Charter’s Diversity and Inclusion efforts (weighted 10%). The Committee weighted a substantial proportion of Mr. Rutledge’s annual incentive to these additional strategic objectives, particularly with respect to Talent Planning, given his overall leadership in the successful transition of the CEO role over the course of 2022 and building a strong and diverse talent pipeline.

Payouts under the Annual Incentive Plan were set to range from 60% to 150% of each NEO’s target annual incentive opportunity based on the actual performance achieved against the Committee-approved goals for each metric. The Committee also has the discretion to increase or decrease payouts under the Annual Incentive Plan based on organizational considerations, such as acquisitions or significant transactions and performance considerations, such as changes in products or markets and other unusual, unforeseen or exogenous situations.

Charter’s 2020 cable2022 revenue and cable Adjusted EBITDA results both fell below targeted levels under the Annual Incentive Plan, but still represented strong year-over-year growth especiallywithin the incentive payout ranges. Revenue achievement resulted in lighta payout of the COVID-19 pandemic. The Committee considered the financial impact to the Company from COVID-19 by reviewing the financial impacts disclosed to the Company’s investors since the beginning63.22% of the pandemic. Given the extraordinary efforts of managementtarget and the approximately 15,700 employees receiving bonuses based entirely or in part on the achievement of the performance metrics, the net gains in the number of customers resulting from these efforts, and the strong performance of the Company while facing the pandemic and the multitude of adjustments required in the operations of the Company, the Committee determined to adjust the achievement of the cable revenue and cable Adjusted EBITDA performance metrics for the COVID-19 impacts, with adjustments capped such that adjusted results could not exceed 100%achievement resulted in a payout of target for either metric. Factoring in these adjusted results, cable revenue achievement fell between threshold and target performance levels,62.67% of target.

 

 

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resulting in aIn determining payout of 91.78% of target, and cable Adjusted EBITDA achievement was at target, resulting in a payout of 100% of target. Thelevels for the strategic objectives, the Committee considered the below COVID-19 impacts toevaluated the Company’s cable revenue and cable Adjusted EBITDA:2022 performance achievement for these objectives, considering the following:

$ Millions

  YTD*   

  

Residential

  $(315   Residential – Customer credits related to canceled sporting events, revenue write-offs for KAC and state mandated non disconnect rules and lower PPV/VOD

SMB

   (36   SMB – Lost revenue for incremental customers put on seasonal and hospitality plans and SMB revenue write-off for KAC

Enterprise

   (18   Enterprise – Lost revenue for hospitality customers that were allowed to reduce or suspend service for up to 90 days when combined with contract extension

Advertising Sales

   (288   Advertising Sales – Canceled advertising from local and SMB client mix
  

 

 

   

Cable Revenue Impact

   (657  

Programming

  $163    Programming – Eliminates benefit recognized for estimated rebates from sports networks

Reg., Connect. and Prod. Cont.

   217    Regulatory, Connectivity and Produced Content – Eliminates benefit for Dodgers for canceled portion of MLB season, fewer Lakers games due to canceled 2020 games and deferred start to 2020 – 2021 season, lower franchises fees and other content rebates

Cost to Svc. Cust. – Bad Debt

   163    Cost to Service Customers – Bad Debt – Lower expense from better collections and recoveries and revenue write-offs versus the company’s pre-COVID-19 forecast

Cost to Svc. Cust. – Labor

   (247   Cost to Service Customers – Labor – Includes the impact of wage rate increase and associated benefits for Field Ops, Care and Network Ops, COVID-19 flex time benefit, and incremental contractors

Marketing

   15    Marketing – Eliminates labor benefit (primarily payroll tax credits less COVID-19 flex) and deferred marketing

Other

   89    Other Impacts – Eliminates benefits from lower Ad Sales Cost of Sales fees, lower travel expense and programming savings (from COVID-19 revenue impacts), partially offset by higher COVID-19-related office cleaning and PP&E
  

 

 

   

Expense Impact

  $400   

Cable Adjusted EBITDA Impact

  $(257  

 

*

Cable only financials, used for the bonus calculation, does not include the KAC Mobile revenue write-offConstructed and activated over 120,000 passings as part of $3MCharter’s rural subsidized initiatives which was ahead of plan and increased mobile expense impact of $5M, resulting in additional negative Adjusted EBITDA of $8M in the publicly disclosed COVID-19 impacts.exceeded penetration goals on such passings.

The capping of the cable Adjusted EBITDA payout at 100% of target resulted in a COVID-19 adjustment of $67 million to the cable Adjusted EBITDA metric rather than the full $257 million of COVID-19 impacts. Cable revenue was adjusted for the full amount of the $657 million of COVID-19 impacts.

Achieved important milestones for Charter’s rural construction initiative beyond construction such as the walking out of the build plan.

The Committee also evaluated the Company’s 2020 performance achievement

Effectively navigated supply chain disruptions to achieve supply levels that were at or above target for most equipment types.

Effectively managed free cash flow supporting Charter’s share repurchase strategy while managing a higher interest rate environment.

For Mr. Rutledge, the management of Charter’s talent planning and development efforts, in particular with respect to the transition of the CEO role, and achievements relating to advancing Charter’s diversity and inclusion goals.

With respect to the strategic objectives that applied for all NEOs, the NEOs, considering the following:

Mobile operational objectives were exceeded in spiteCommittee approved payouts of a difficult environment. Key achievements included growing to nearly 2.4 million mobile lines, becoming the fastest growing mobile provider in the United States, completing a new mobile virtual network operator (“MVNO”) amendment, added new or upgraded mobile store openings, and participating in the FCC CBRS spectrum auction.

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The effective management of capital expenditure in light of accelerated growth (492,000 customers above plan) and additional investments necessary in order to support higher network demand and costs from supply chain and environment disruptions.

Free cash flow that was favorable to budget and that was $2.5 billion greater than 2019, representing a 53.4% increase year-over-year.

For Mr. Rutledge, the management of the Company’s talent over the course of the year and achievements associated with managing business operations and implementing strategies in response to the COVID-19 pandemic, including acceleration of the self-installation program, adoption of self-help tools by customers, implementation of remote working strategies, and the successful response to and engagement with various government agencies and officials throughout the pandemic.

For NEOs other than the CEO, a payout of 110.00% was approved with respect to the Mobile product strategic objective and a payout of 115.00% was approved with respect to120% for the Capital and Free Cash Flow Management objective and 150% for the RDOF and Subsidized Rural Builds Initiatives strategic objective. For Mr. Rutledge’sobjective, resulting in an overall strategic objectives which included additional objectives relating to talent planning and the managementpayout of the Company’s response135% for NEOs except Mr. Rutledge. With respect to the COVID-19 pandemic,additional strategic objectives that applied for Mr. Rutledge only, the Committee determined thatapproved a combined payout of 103.00% was appropriate.100% for the Talent Planning and Diversity and Inclusion objectives, resulting in an overall strategic objectives payout of 105.83% when combined with payouts for the strategic objectives that applied for all NEOs. The resulting overall annual incentive payouts were 100.47%88.62% of Mr. Rutledge’s target annual incentive and 100.86%77.24% of the target annual incentive for the other NEOs; withoutNEOs. The tables below detail theCOVID-19 adjustments and assuming the Committee would not have made a different determination on the performance of the strategic objectives, the payouts would have been 96.24% of target and 94.09% of target, respectively. The annual incentive calculations for Mr. Rutledge and the other NEOs are detailed in the tables below.NEOs.

20202022 Annual Incentive Payout – CEOMr. Rutledge

 

Metric

  

    Target    

($ million)

   

    Performance    

($ million)

   

Payout

%

  Weighting  

Weighted
Payout

%

 

Cable Revenue

  $47,625   $47,390    91.78  12.5  11.47

Cable Adjusted EBITDA

  $18,986   $18,986    100.00  37.5  37.50

CEO Objectives

   Discretionary Assessment    103.00  50.0  51.50

Total

      100.0  100.47

Metric

  

    Target    

($ million)

   

    Performance    

($ million)

   

Payout

%

  Weighting  

Weighted
Payout

%

 

Revenue

  $53,808   $52,621    63.22  10.0  6.32

Adjusted EBITDA

  $22,321   $21,509    62.67  30.0  18.80

Strategic Objectives

   Discretionary Assessment    105.83  60.0  63.50

Total

      100.0  88.62

20202022 Annual Incentive Payout – All Other NEOs

 

Metric

  

    Target    

($ million)

   

    Performance    

($ million)

   

Payout

%

 Weighting 

Weighted
Payout

%

   

    Target    

($ million)

   

    Performance    

($ million)

   

Payout

%

 Weighting 

Weighted
Payout

%

 

Cable Revenue

  $47,625   $47,390    91.78 20.0 18.36

Cable Adjusted EBITDA

  $18,986   $18,986    100.00 60.0 60.00

Revenue

  $53,808   $52,621    63.22 20.0 12.64

Adjusted EBITDA

  $22,321   $21,509    62.67 60.0 37.60

Strategic Objectives

   Discretionary Assessment    112.50 20.0 22.50   Discretionary Assessment    135.00 20.0 27.00

Total

     100.0 100.86      100.0  77.24

Note: Cable revenue and Cable Adjusted EBITDA were adjusted as described above for purposes of calculating bonus attainments. Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to non-controlling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, loss on extinguishment of debt, (gain) loss on financial instruments, net, other pension (benefits) costs, net, other (income) expense,income (expenses), net and other operating (income) expenses, net, such as special charges and (gain) loss on sale or retirement of assets. For purposes of calculating bonus attainment, revenue does not include mobile device related or RDOF subsidy revenue, and Adjusted EBITDA does not include such revenue or mobile device and RDOF related expenses. Capital Management is an after-the-fact, objective evaluation of our capital spend by the Committee.

TargetEach NEO has a target annual incentive opportunities areopportunity set as a percentage of eachthe NEO’s base salary. In setting opportunities for our NEOs each year, the Committee reviews current opportunities relative to those among peer group companies and also evaluates criteria with

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respect to each NEO’s particular role, including changes in scope and complexity, impact on Company strategy,

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and degree of enterprise-wide influence. For 2020,During 2022, the Committee increased Mr. Winfrey’s target annual incentive from 160% of base salary to 250% of base salary effective September 20, 2022 in connection with his promotion to President and CEO, and the Committee increased Mr. DiGeronimo’s target annual incentive from 160% of base salary to 200% of base salary effective September 20, 2022 in connection with his promotion to President, Product & Technology; the full year target annual incentive opportunities for Messrs. Winfrey and DiGeronimo were prorated based on the portion of the year for which each respective target annual incentive percentage was in effect. In addition, pursuant to his amended and restated employment agreement, Mr. Rutledge’s 2022 target annual incentive was prorated to reflect the reduction in his base salary from $2,500,000 to $1,250,000 effective December 1, 2022 (with no change to his target annual incentive as a percentage of base salary), and, pursuant to the amendment to his employment agreement, Mr. Hargis’s 2022 target annual incentive was prorated to reflect the reduction in his base salary from $700,000 to $350,000 effective April 1, 2022 (also with no change to his target annual incentive as a percentage of base salary). The Committee otherwise determined that no annual incentive adjustments were necessary for our other NEOs as current opportunities continued to be competitive and appropriate for their roles. TargetThe table below summarizes the 2022 target annual incentive opportunities and actual incentive payouts based on the performance achievement detailed above, are summarized below for each of our NEOs.

 

       Target Annual Incentive Annual Incentive        Target Annual Incentive Annual Incentive 

Executive Officer

  Base Salary   % of Base Salary $ Value % of Target $ Value   Base Salary   % of Base Salary $ Value % of Target $ Value 

Thomas M. Rutledge

  $2,500,000    300 $6,270,492 100.47 $6,299,963   $1,250,000    300 $7,181,507(1)  88.62 $6,364,251 

John Bickham

  $1,500,000    200 $3,000,000  100.86 $3,025,800 

Christopher L. Winfrey

  $1,700,000    250 $2,634,932(2)  77.24 $2,035,221 

Richard J. DiGeronimo

  $1,000,000    160 $1,600,000  100.86 $1,613,760   $1,450,000    200 $2,253,973(3)  77.24 $1,740,968 

David G. Ellen

  $1,250,000    160 $2,000,000  100.86 $2,017,200   $1,250,000    160 $2,000,000  77.24 $1,554,800 

Christopher L. Winfrey

  $1,000,000    160 $1,600,000  100.86 $1,613,760 

Jessica M. Fischer

  $700,000    150 $1,050,000  77.24 $811,020 

Jonathan Hargis

  $350,000    150 $654,452(4)  77.24 $505,499 

 

*(1)

Represents Mr. Rutledge’s target annual incentive amount is prorated withbased on his prior base salary of $2,000,000 and target annual incentive of 300% of base salary in effect from January 1, 2020 through October 26, 2020 and his new base salary of $2,500,000 and target annual incentive of 300% of base salary in effect from January 1, 2022 through November 30, 2022 and his base salary of $1,250,000 and target annual incentive of 300% of base salary in effect as of October 27, 2020.December 1, 2022.

(2)

Represents Mr. Winfrey’s target annual incentive amount prorated based on his base salary of $1,250,000 and target annual incentive of 160% of base salary in effect from January 1, 2022 through September 19, 2022 and his base salary of $1,700,000 and target annual incentive of 250% of base salary in effect as of September 20, 2022.

(3)

Represents Mr. DiGeronimo’s target annual incentive amount prorated based on his base salary of $1,250,000 and target annual incentive of 160% of base salary in effect from January 1, 2022 through September 19, 2022 and his base salary of $1,450,000 and target annual incentive of 200% of base salary in effect as of September 20, 2022.

(4)

Represents Mr. Hargis’s target annual incentive amount prorated based on his base salary of $700,000 and target annual incentive of 150% of base salary in effect from January 1, 2022 through March 31, 2022 and his base salary of $350,000 and target annual incentive of 150% of base salary in effect as of April 1, 2022.

The CEO isCommittee also authorized by the CommitteeMr. Winfrey as CEO to make discretionary bonus awards of up to 5% of the total projected Annual Incentive Plan payout based on actual achievement against the approved performance objectives. DiscretionaryManagement recommends discretionary bonus awards are recommended by management based upon management’s judgment of a participant’s performance and contribution to the Company, and such awards are in addition to payments made under the Annual Incentive Plan. For 2020,2022, none of the NEOs received any portion of this 5% discretionary bonus allocation.

Long-Term Incentives

Charter’s long-term incentive awards are designed to alignprogram aligns the interests of the NEOs with those of our stockholders by linking a significant portion of NEO compensation to sustained growth in the Company’s stock price over multi-year periods. Long-termThe Committee establishes long-term incentive designs and opportunities are established by the Committee in consideration of each NEO’s level within the organization, the nature of their particular role and job responsibilities, the desired mix of short and their long-term incentive compensation, retention and succession planning considerations, the executive’s line-of-sight to our stock price performance.performance, and competitive pay levels observed among peer and general industry organizations. Since 2016,2021, all NEOs have participated in the Company’s annual equity program, which provides awards in a mix of stock options and RSUs (with the particular mix determined by the participant’s level), and awards vest in full on the third anniversary of the grant date.

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For each NEO, the Committee has administered twodetermines their long-term incentive program designsopportunity and approves annual equity grants based on that opportunity. Charter grants annual equity awards to all eligible participants in mid-January (the “annual grant date”). For any changes to long-term incentive opportunities occurring during the year after the annual grant date, the Committee generally also approves additional off-cycle equity awards based on the difference between the NEO’s new and prior opportunities and prorates the award value delivered based on the timing of the change. Prorated award guidelines range from 100% of the value difference for our NEOs, based upon their corresponding level within Charter.

Messrs. Rutledge, Bickham, Ellen and Winfrey participatechanges occurring in the 2016 Performance-based Program.first quarter to 25% for changes occurring in October or November, and in certain circumstances the Committee may provide for a different off-cycle award amount in order to ensure that such award delivers the appropriate amount of retentive value and alignment with long-term performance.

Mr. Rutledge received a grant of $30.0 million in stock options on the January 15, 2022 annual grant date, based on his long-term incentive opportunity set forth in his then current employment agreement. Mr. Rutledge’s amended and restated employment agreement, executed on September 20, 2022, reduced his long-term incentive opportunity to $15.0 million effective December 1, 2022 in connection with his transition to Executive Chairman and which will apply for his 2023 annual equity award. The Committee approveddetails of Mr. Rutledge’s 2022 grant are as follows:

Grant Date Target Award
Value
   Equity Award Mix Grant /
Strike Price
  # of Stock
Options Granted
  # of RSUs
Granted
 
January 15, 2022 $30,000,000   100% Stock Options $588.825   172,067    

Mr. Winfrey first received an equity awards under this programgrant of $10.0 million in 2016,stock options on the January 15, 2022 annual grant date, based on his long-term incentive opportunity set forth in his then current employment agreement. Mr. Winfrey’s amended and restated employment agreement, executed on September 20, 2022, increased his long-term incentive opportunity to $17.0 million effective December 1, 2022 in connection with his promotion to President and CEO and provided for an additional equity grant of $2.0 million in stock options to be granted on September 22, 2022. The details of Mr. Winfrey’s 2022 grants are as follows:

Grant Date Target Award
Value
   Equity Award Mix Grant /
Strike Price
  # of Stock
Options Granted
  # of RSUs
Granted
 
January 15, 2022 $10,000,000   100% Stock Options $588.825   57,356    
September 22, 2022 $2,000,000   100% Stock Options $342.235   17,073    
Total $12,000,000      74,429    

Mr. DiGeronimo first received a grant of $8.0 million, delivered in 90% stock options and 10% RSUs, granted on the January 15, 2022 annual grant date and based on his long-term incentive opportunity in effect at that time. Mr. DiGeronimo’s employment agreement, executed on September 20, 2022, increased his long-term incentive opportunity to $10.0 million, to be delivered in a mix of 90% stock options and 10% restricted stock units. These awards vest subjectRSUs and effective December 1, 2022 in connection with his promotion to the achievementPresident, Product & Technology. The agreement also provided for an additional equity grant of pre-established stock price hurdles with additional time-based vesting applying over a minimum of 3 to 5 years after grant; if a stock price hurdle is not met within 6 years after grant, the associated award tranche is forfeited. As discussed above in the section on compensation actions for 2020, Messrs. Rutledge and Bickham received equity awards in 2020 relating to the amendment of their employment agreements and Messrs. Ellen and Winfrey received equity awards in 2020 in consideration of performance achieved to-date under the 2016 Performance-based Program and the need to create ongoing incentives and retention by ensuring that they had sufficient outstanding unvested equity value as awards under the program vest.

For Mr. DiGeronimo, the Committee determined that he should continue to participate in the Company’s annual equity program for 2020, commensurate with other executives at the same level. This program provides participants an annual long-term incentive award, the value and mix of which is based on the executive’s level,$800,000 (also delivered in a mix of90% stock options and restricted10% RSUs) to be granted on September 22, 2022. The details of Mr. DiGeronimo’s 2022 grants are as follows:

Grant Date Target Award
Value
   Equity Award Mix Grant /
Strike Price
  # of Stock
Options Granted
  # of RSUs
Granted
 
January 15, 2022 $8,000,000   90% Stock Options / 10% RSUs $588.825   41,296   1,359 
September 22, 2022 $800,000   90% Stock Options / 10% RSUs $342.235   6,146   234 
Total $8,800,000      47,442   1,593 

Mr. Ellen received a grant of $5.5 million, delivered in 90% stock unitsoptions and 10% RSUs, granted on the January 15, 2022 annual grant date and based on his long-term incentive opportunity in effect at that time. The details of Mr. Ellen’s 2022 grant are as follows:

Grant Date Target Award
Value
   Equity Award Mix Grant /
Strike Price
  # of Stock
Options Granted
  # of RSUs
Granted
 
January 15, 2021 $5,500,000   90% Stock Options / 10% RSUs $588.825   28,391   934 

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Ms. Fischer received a grant of $3.5 million, delivered in 90% stock options and 10% RSUs, granted on the January 15, 2022 annual grant date and based on her long-term incentive opportunity in effect at that time. The details of Ms. Fischer’s 2022 grant are as follows:

Grant Date Target Award
Value
   Equity Award Mix Grant /
Strike Price
  # of Stock
Options Granted
  # of RSUs
Granted
 
January 15, 2022 $3,500,000   90% Stock Options / 10% RSUs $588.825   18,067   594 

Mr. Hargis received a grant of $3.5 million, delivered in 90% stock options and 10% RSUs, granted on the January 15, 2022 annual grant date and based on his long-term incentive opportunity in effect at that time. The details of Mr. Hargis’s 2022 grant are as follows:

Grant Date Target Award
Value
   Equity Award Mix Grant /
Strike Price
  # of Stock
Options Granted
  # of RSUs
Granted
 
January 15, 2022 $3,500,000   90% Stock Options / 10% RSUs $588.825   18,067   594 

All 2022 equity grants made to the NEOs vest fullyin full on the third anniversary of the date of grant.

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Details regarding 2020 equity awards to the NEOs are provided below.

Executive Officer

  Grant Date  Target Award
Value
   Equity Award Mix  Grant /
Strike Price
   # of Stock
Options Granted
   # of RSUs
Granted
 

Thomas M. Rutledge

  November 3, 2020  $30,000,000   100% Stock Options  $597.16    195,022     

John Bickham

  December 23, 2020  $31,500,000   100% Stock Options  $646.31    188,909     

Rich DiGeronimo

  January 15, 2020  $4,000,000   90% Stock Options / 10% RSUs  $512.06    24,781    781 

David G. Ellen

  January 15, 2020  $7,500,000   90% Stock Options / 10% RSUs  $512.06    46,465    1,465 

Christopher L. Winfrey

  January 15, 2020  $9,000,000   90% Stock Options / 10% RSUs  $512.06    55,758    1,758 

Summary of 2016 Performance-based Program

Targeted grant values under the 2016 Performance-based Program were determined by the Committee using an analysis of potential realizable compensationdate (i.e., actual value realized from awards upon vesting or exercise) from achieving certain levels of stock price appreciation over the duration of the program. The actual number of3-year cliff vesting) and stock options and restricted stock units grantedhave a 10-year term to participants were calculated based on (i) the target realizable compensation for the participant, (ii) stock price hurdles established for the program and (iii) a targeted mix of 90% stock options and 10% restricted stock units. The number of stock options and restricted stock units to be granted were then divided into a number of tranches, each with a combination of time-based and stock price performance vesting criteria. If the stock price vesting criteria are not achieved within six years after grant, the unvested awards will be forfeited, and the determination of whether a stock price hurdle is achieved is based on Charter’s 60-day average closing stock price. The tranche-level vesting schedules for stock options and restricted stock units are provided in the exhibits below.exercise.

Under the 2016-Performance-based Program, price targets (based on the 60-day average closing stock price) at $289.76, $364.97, $455.66, $496.58, and $564.04 have been achieved as of February 26, 2021. As a result, two-thirds of the stock options and RSUs granted under the program have vested. Based on the achievement of these price targets, and assuming that the stock price continues to remain at or above these targets, additional vesting eligibility will occur in April 2021 for the Chairman and CEO and in June 2021 for the other NEOs in the 2016 Performance-based Program. The Committee believes that the 2016 Performance-based Program has created significant value for Charter’s stockholders by further incenting Charter’s management to achieve sustained growth in Charter’s stock price following the Transactions. The day after completion of the Transactions, the closing price of Charter’s Class A common stock was $227.41 per share with a total market capitalization of $70.2 billion. As of February 26, 2021, the closing price of Charter’s Class A common stock was $613.42 with a total market capitalization of $130.8 billion. Over this period, Charter stockholders have seen an increase in Charter’s stock price of 170% and an increase in total market capitalization of 86% or $60.6 billion.

Proportion of Stock Options Vesting by Stock Price Hurdle and Time-Based Vesting Period

Stock Price Growth Hurdle

(Approximate % Increase from Grant Price)

Time-Based Vesting Period

(from 2016 grant date)

Total
3 Years4 Years5 Years

30%

1/151/151/151/5

65%

1/151/151/151/5

105%

1/151/151/151/5

125%

1/151/151/151/5

155%

1/151/151/151/5

Total

1/31/31/3

*

Award has vested.

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Proportion of Restricted Stock Units Vesting by Stock Price Hurdle and Time-Based Vesting Period

Stock Price Growth Hurdle

(Approximate % Increase from Grant Price)

Time-Based Vesting Period

(from 2016 grant date)

Total
3 Years4 Years5 Years

105%

1/91/91/91/3

125%

1/91/91/91/3

155%

1/91/91/91/3

Total

1/31/31/3

*

Award has vested.

2009 Stock Incentive Plan and 2019 Stock Incentive Plan

OurCharter granted long-term incentive awards made prior to April 23, 2019 are granted under the 2009 Stock Incentive Plan (the “2009 Plan”), and granted awards made after this date are granted under the 2019 Stock Incentive Plan (the “2019 Plan” and, collectively, the “Stock Incentive Plans”), each. Each of whichthe Stock Incentive Plans is an omnibus plan, administered at the discretion of the Committee, that provides for a range of compensation programs including the potential grant of non-qualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock as each(each term isas defined in the Stock Incentive Plans and in the discretion of the Committee.Plans). The 2019 Plan was approved by the Board of Directors approved the 2019 Plan in January 2019 and shareholders approved by shareholdersthe 2019 Plan at the annual meeting on April 23, 2019. Under theThe terms of the 2019 Plan, after its approval, nodo not permit additional awards were subsequently permitted under the 2009 Plan, which terminated on November 30, 2019. Unless terminated sooner, the 2019 Plan will terminateterminates on January 29, 2029, andwith no optionfurther options or award can be grantedawards permitted thereafter under that plan.

As of December 31, 2020, 13,840,6162022, 10,478,392 million shares remained available for future grants under the 2019 Plan. As of December 31, 2020,2022, there were 3,7786,235 participants in the 2019 Plan and there remained 2,976432 participants with awards outstanding under the 2009 Plan.

The 2009 Plan authorized the repricing of options. No repricing occurred under the 2009 Plan through its termination. While the 2019 Plan also initially authorized the repricing of options, on January 28, 2020 the Board approved an amendment to the 2019 Plan prohibiting the repricing of stock options without shareholder approval.

Other Elements of Compensation

The NEOs are eligible to participate in all other benefit programs offered to all employees generally.

Employment Agreements

The CompanyOver the course of 2022, Charter entered into amended and restated employment agreements with Messrs. Rutledge and Winfrey, a new employment agreement with Mr. Rutledge, effective October 27, 2020DiGeronimo, and extending his term through December 31, 2024, and Mr. Bickham, effective December 23, 2020 and extending his term through December 31, 2022.amended the existing employment agreements with Messrs. Ellen and Hargis. Messrs. Winfrey continue to be covered by theand DiGeronimo’s employment agreements that theywere effective September 20, 2022 with terms through December 1, 2025. Mr. Rutledge’s agreement was effective December 1, 2022 and has a term through November 30, 2023. Mr. Ellen’s existing employment agreement, originally entered into effective July 1, 2021, was amended on October 27, 2022 to extend the term from July 1, 2023 to December 1, 2023. Mr. Hargis’s existing employment agreement, originally entered into effective June 17, 2021, was amended effective April 1, 2022 to modify the term of the agreement from June 17, 2023 to December 31, 2022, the date of his retirement from the Company. In early 2023, Charter also entered into an amended and restated employment agreement with Ms. Fischer, effective February 5, 2023 and renewing the Companyterm of her employment for an additional two years from such date; Ms. Fischer’s prior employment agreement, which was in 2016, at the time awards were made under the 2016 Performance-based Program.effect as of

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December 31, 2022, was entered into effective February 5, 2021 with a term through February 5, 2023. A more detailed description of employment arrangements with our NEOs is set forth below under the section titled “Employment“NEO Employment Agreements.”

Tax and Accounting

Prior to the Tax Cuts and Jobs Act, Section 162(m) of the Internal Revenue Code placed a $1 million limit on the amount of non-performance-based compensation the Company can deduct in any year for certain NEOs. The Committee had designed the compensation programs with the intention to qualify a majority of compensation as performance-based compensation under Section 162(m). Effective January 1, 2018, performance-based compensation potentially no longer qualifies for exemption from the Section 162(m) limitation. Certain awards under the existing plans may be deductible, but future awards would be analyzed under the new laws and may not create a tax deduction. Once an individual has become an NEO, these

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individuals will remain subject to the limitation under Section 162(m) for all current and future compensation. These tax effects are only one factor considered by the Committee when entering into compensation arrangements, and the Committee maintains flexibility in compensating executive officers in a manner designed to promote varying corporate goals, which may not be deductible under Section 162(m).

We account for stock-based compensation in accordance with United States generally accepted accounting principles (“GAAP”). Restricted stock, restricted stock units, stock options as well as equity awards with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of options is estimated on the date of grant using the Black-Scholes option-pricing model and the fair value of equity awards with market conditions is estimated on the date of grant using Monte Carlo simulations.

Additional Compensation Governance Policies

Stock Ownership Guidelines

The stock ownership guidelines are based onrequire the achievement of a certain specified multiple of the applicable officer’s base salary or outside director’s cash retainer. The guidelines do not apply to officers, directors or affiliates of any stockholder of the Company beneficially holding 10% or greater of the outstanding shares of the Company’s stock.

 

Executive Officer

  Ownership Multiple of Salary (for employees)

or Cash Retainer (for directors)
 

CEO

   5x

President and COO

3x 

Executive Vice President

   2x 

Other Covered Individuals

   1x 

Outside Director

   3x 

In determining whether a covered individual has met the applicable stock ownership level, management evaluates annually stock beneficially owned outright and 25% of the value of time-based restricted stock and restricted stock units that are only subject to time-based vesting (the performance-based restricted stock unit awards do not count toward the ownership guidelines). There is no time requirement to meet the guidelines. However, until the officer or outside director achieves the minimum ownership level, is reached, a covered individual is required to retain a minimum of 25% of the shares received when options to purchase stock are exercised or restricted stock vests (unless an exemption is granted). As of December 31, 20202022 all covered directors and the NEOs met the applicable stock ownership guidelines (except for individuals appointedrecently hired or hired after the closing of the Transactionspromoted individuals who have had limited or no vesting events).

Compensation Recovery Policy

The Compensation Recovery Policy provides that all executive officers, including the NEOs, may be required under certain circumstances be required to repay or forfeit annual incentive or other performance-based compensation, including payments under our Executive Bonus Plan, received in the event of a restatement of Charter’s financial statements filed with the SEC. Under this policy, there is a three-year look back period for compensation recovery and it applies regardless of whether or not the individual was at fault in the circumstances leading to the restatement. However, the Committee has been granted greater authority to recover any outstanding equity based awards, vested and unvested, if it determines that a covered executive was engaged in any fraud or intentional misconduct with regard to the circumstances leading to the restatement.

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Hedging

The Company prohibits Restricted Employees from hedging transactions or similar arrangements with respect to Company securities without the prior approval of the Company’s Legal department. Specific transactions prohibited are sales of Company securities of the same class for at least six months after the purchase, short sales of Company securities, buying or selling puts or calls or other derivative securities on the Company’s securities, and entering into hedging or monetization transactions or similar arrangements with respect to Company securities.

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Restricted Employees include any employee with the title of Vice President or equivalent and above; all persons employed in the Finance, Investor Relations, Legal and Stock Administration departments; members of corporate executive staff; members of the Board of Directors; and any other designated employee identified by senior management as a “Restricted Employee” (e.g., key consultants, executive staff support, compensation personnel, senior Marketing staff).

Stockholder Vote on Say on Pay

At the Company’s 2017 annual stockholders’ meeting, the stockholders considered an advisory proposal on the frequency of holding a vote on executive compensation and, as the Board of Directors recommended, voted to hold an advisory vote on executive compensation every three (3) years with approximately 57% of the votes cast in favor of the triennial frequency proposal. The most recent advisory vote on executive compensation was heldoccurred at the 2020 annual stockholders’ meeting. As the Board of Directors recommended, the stockholders approved the 2020 executive compensation program with approximately 91% of the votes cast voting in favor of the proposal. At the annual stockholder’sstockholders’ meeting in 2023, stockholders will be asked to consider two advisory votes relative to executive compensation. One will address executive compensation as described in the Compensation Discussion and Analysis and the other will address the frequency of advisory votes on the Company’s executive compensationcompensation. See “Proposal No. 2: Approval, on an Advisory Basis, of the Compensation of Named Executive Officers (Item 2 on Proxy Card)” and the other will address“Proposal No. 3: Approval, on an Advisory Basis, of a Triennial Advisory Vote on Executive Compensation (Item 3 on Proxy Card)” below for additional information on these advisory votes.

Charter designs its executive compensation as described in the Compensation Discussion and Analysis.

Charter’s executive compensation program is designed to ensure management’s interests are alignedalign with those of our investors’ interests to support long-term value creation, while also maintaining the consistency over time that is imperative for motivating and retaining employees. After considering the stockholders’ advisory votes, including the level of support received for each proposal, the Committee continues to believe that the Company’s executive compensation structure — including the 2016 Performance-based Program — best achieves the desired alignment. In addition, the Committee views a three-year period between advisory votes on executive compensation as the most effective approach, providing investors sufficient time to evaluate the effectiveness of both short and long-term compensation strategies and corresponding business outcomes of the Company. Although the Committee will continue to monitor the frequency of the vote, the Committee considers a triennial vote on executive pay to be the appropriate frequency to provide time to thoughtfully consider and implement appropriate changes to our executive compensation program.

Proactive Stockholder Engagement

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Pay
Versus Performance
Pay Versus Performance Results & Discussion
An assessment of Charter’s pay versus performance alignment was conducted pursuant to Item 402(v) of Regulation
S-K,
evaluating the alignment of Charter’s executive pay, stock price performance, and carefully considersfinancial performance for the feedback we receive
3-year
period from our stockholders. InJanuary 1, 2020 we engaged in constructive dialogue with our leading institutional stockholders. We reached outthrough December 31, 2022 (referred to and offered to have discussions with stockholders holding approximately 69.6%as the “measurement period” throughout this Pay Versus Performance discussion).
As discussed on page 26 of the sharesCompensation Discussion & Analysis, Charter’s philosophy for NEO compensation is to provide the largest portion of our outstanding stock. We engagedpay in the form of long-term incentives that vest over a multi-year timeframe and are tied to stock price appreciation; it is Charter’s view that this creates the strongest possible alignment between executives and shareholders. When evaluating this philosophy through the lens of pay versus performance, actual compensation realized or earned by NEOs should therefore be primarily dependent upon Charter creating sustained stock price growth, with increases in executive pay from periods of stock price appreciation and decreases in executive pay from periods where the stock price declines. Furthermore, while financial performance achievement drives payouts under Charter’s annual bonus plan, such outcomes should have a lesser impact than stock price performance given that – based on values disclosed in the Summary Compensation Table – 2022 bonus payouts represented 16% of Mr. Rutledge’s total compensation, 13% of Mr. Winfrey’s total compensation, and 16% of total compensation for the other NEOs relative to the value of stock options granted in 2022, which represented 77% of Mr. Rutledge’s total compensation, 77% of Mr. Winfrey’s total compensation, and 64% of total compensation for the other NEOs.
For purposes of evaluating the impact of performance on pay, the required disclosure utilizes two measurements of compensation, referred to as the “Summary Compensation Table Total” and “Compensation Actually Paid”. These measures are formally defined in the “Description of Disclosure Requirements” at the end of this section (which also provides complete information on the methodology for the pay versus performance analysis), but are summarized as follows:
Summary Compensation Table Total
– Total compensation as disclosed in the Summary Compensation Table for each stockholder who accepted our offer, making ouryear, approximating an NEO’s target compensation opportunity with the exception that it reflects actual payouts from the annual bonus plan (versus target opportunities) and includes certain other compensation and benefits items not traditionally included in target compensation, such as matching contributions to the Company’s 401(k) plan.
Compensation Actually Paid
– The Summary Compensation Table Total with certain modifications applied to capture the change in the actual value of such compensation over time. With respect to Charter’s executive pay program, the difference between the Summary Compensation Table Total and Compensation Actually Paid primarily represents the change in fair value of unvested long-term incentive awards, mainly stock options, over the course of the year.
As outlined above, in order to demonstrate alignment between pay and performance for Charter’s executive compensation program, Compensation Actually Paid should be greater than or less than the Summary Compensation Table Total in proportion to respective positive or negative TSR achievement and, to a lesser degree, financial performance. Based on the outcomes observed from the pay versus performance analysis as applied to Charter – detailed below in both the required Tabular Disclosure of Pay Versus Performance as well as the Pay Versus Performance Graph – Charter’s executive pay program demonstrates the anticipated alignment between targeted compensation, actual compensation, stock price performance, and financial performance.
Tabular Disclosure of Pay Versus Performance
(1)
              
Value of Initial Fixed $100
Investment Based On:
    
Year
 
Summary
Compensation
Table Total for
CEO

(Rutledge)
 
Compensation
Actually Paid to
CEO
(Rutledge)
(1,2)
 
Summary
Compensation
Table Total for

CEO
(Winfrey)
(3)
 
Compensation
Actually Paid to
CEO
(Winfrey)
(2)(3)
 
Average

Summary
Compensation
Table Total for
Other NEOs
(3)
 
Average
Compensation
Actually Paid
to Other
NEOs
(2)(3)
 
Charter
Total
Shareholder
Return
 
Primary
Peer Group
Total
Shareholder
Return
 
Net
Income

($M)
 
Adjusted
EBITDA

($M)
2022 $39,213,350 ($65,738,275) $15,626,967 ($20,010,688) $7,482,328 ($9,640,987) $70 $84 $5,849 $21,616
2021 $41,860,263 $9,855,008 n/a n/a $8,196,657 $7,662,612 $134 $114 $5,320 $20,630
2020 $38,846,705 $234,204,667 n/a n/a $16,403,815 $61,038,985 $136 $113 $3,676 $18,518
(1)See the “Description of Disclosure Requirements” section below for additional information on the requirements for this Pay Versus Performance Disclosure and the required Tabular List of Additional Performance Metrics.
(2)Mr. Rutledge served as Chairman and CEO in each of 2020, 2021 and 2022 and is therefore included as the CEO in the table for each year. Mr. Winfrey served as President and CEO from December 1, 2022 and is therefore included as the CEO for 2022 only. The average values for Other NEOs pertain to the following executives and their roles for each year:
2020 – John R. Bickham (President and Chief Operating Officer, Mr. DiGeronimo (Chief Product & Technology Officer), Mr. Ellen (Senior Executive Vice President, General CounselPresident), and Corporate Secretary, our SeniorMr. Winfrey (Chief Financial Officer)
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2021 – Mr. Bickham (Vice Chairman), Mr. DiGeronimo (Chief Product & Technology Officer), Mr. Ellen (Senior Executive Vice President, Investor RelationsPresident), Ms. Fischer (Chief Financial Officer), and our SeniorMr. Winfrey (Chief Operating Officer)
2022 – Mr. DiGeronimo (President, Product & Technology), Mr. Ellen (Senior Executive Vice President, Deputy General CounselPresident), Ms. Fischer (Chief Financial Officer), and Assistant Corporate Secretary available. Stockholder feedback, includingMr. Hargis (Special Advisor to the COO).
(3)The table below provides a reconciliation of the adjustments to Summary Compensation Table Totals to Compensation Actually Paid; refer to the “Determination of Compensation Actually Paid” section below for additional information on the methodology and assumptions for determining the fair value stock and option awards.
   
  
Chief Executive Officer
  
Other Named Executive Officers Average
        
   
2020
(Rutledge)
 
2021
(Rutledge)
 
2022
(Rutledge)
 
2022
(Winfrey)
  
2020
 
2021
 
2022
Summary Compensation Table Total
 
$38,846,705
 
$41,860,263
 
$39,213,350
 
$15,626,967
  
$16,403,815
 
$8,196,657
 
$7,482,328
Less
change in pension value
 ($176,085) ($59,302) $249,614 $0  ($33,655) ($11,136) $0
Plus
additional service cost of pension plan
 $0 $0 $0 $0  $0 $0 $0
Less
grant value of stock and option awards made during the year, as disclosed in the Summary Compensation Table
 ($30,005,695) ($30,004,409) ($30,005,043) ($12,001,909)  ($12,999,065) ($4,000,613) ($5,325,719)
Plus
the change in fair value of unvested stock and option awards made during the year, measured as of
year-end
 $9,020,157 $2,003,335 ($20,089,009) ($6,509,546)  $3,075,241 $92,552 ($3,290,927)
Plus
the change in fair value of unvested stock and option awards granted in prior years, measured as of
year-end
or the vesting date, if earlier
 $216,519,585 ($3,944,879) ($55,107,188) ($17,126,200)  $54,592,650 $3,385,151 ($8,506,669)
Compensation Actually Paid
 
$234,204,667
 
$9,855,008
 
($65,738,275)
 
($20,010,688)
  
$61,038,985
 
$7,662,612
 
($9,640,987)
Charter believes that the pay versus performance statistics above demonstrate the desired linkage between NEO compensation and stock price performance and affirm the effectiveness of Charter’s executive compensation philosophy and the compensation-setting process described in the Compensation Discussion & Analysis. In particular, for each year of the analysis, the ratio of Compensation Actually Paid to the Summary Compensation Table Total aligned with corresponding TSR performance (i.e., higher or lower in proportion to an increase or decrease in TSR). From a financial performance perspective, Charter achieved consistent growth in both Net Income and Adjusted EBITDA across all years of the analysis, although such performance does not directly impact any variance between the Summary Compensation Table Total and Compensation Actually Paid (while financial performance achievement impacts Charter’s actual bonus payouts, such payouts are included in both the Summary Compensation Table Total and Compensation Actually Paid). However, Charter views the financial metrics in its annual bonus plan – specifically Revenue and Adjusted EBITDA – as important drivers of stock price performance over the long-term, and such measures will therefore generally align with Charter’s executive pay outcomes that are driven predominately by stock price performance.
On a relative stock price performance basis, Charter’s TSR was generally comparable to corresponding Primary Peer performance levels each year, and there were no circumstances where NEOs realized higher levels of Compensation Actually Paid in connection with TSR underperformance on a relative basis. Furthermore, the TSR achieved by Charter for the
3-year
measurement period of the pay versus performance analysis followed a multi-year period of significant TSR growth that outperformed Primary Peers. From the close of the Bright House and TWC Transactions on May 18, 2016 through direct discussionsDecember 31, 2019 (the beginning of the measurement period for this pay versus performance disclosure), a $100 investment in Charter appreciated in value to $213.31, which was 51% higher than the $140.92 in value from an equivalent investment in Primary Peer companies. For the full period from May 18, 2016 through December 31, 2022, the returns for Charter and prior stockholder votes, is reportedPrimary Peers were $149.11 and $117.73, respectively, with the value of the Charter investment still 27% higher than that of Primary Peers. Therefore, while TSR performance was comparable between Charter and Primary Peers in each year of the pay versus performance analysis, over an extended timeframe Charter has outperformed peer companies.
The chart and table below provide additional detail regarding what Charter views as the key highlights demonstrating pay versus performance alignment in each year of the analysis. In particular, these outcomes illustrate how the design of Charter’s executive compensation programs create alignment under varied performance scenarios (i.e., periods of positive, flat and negative stock price performance).
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Pay Versus Performance Graph

(1)The ratio of Compensation Actually Paid to Summary Compensation Table Total is calculated based on the corresponding CEO and Other NEO values disclosed in the Tabular Disclosure of Pay Versus Performance.
Pay Versus Performance Annual Highlights
2020 – Strong stock price performance resulted in increased value for NEOs.
   Charter stock price performance outperformed Primary Peers (with a $100 fixed investment on 12/31/2019 increased to $136 for Charter and $113 for Primary Peers, representing returns of 36.4% and 12.8%, respectively) and resulted in Compensation Actually Paid that was 6.0x the Summary Compensation Table Total for the CEO and 3.7x for the other NEOs.
   The significant upside leverage observed in Compensation Actually Paid was driven by Charter’s philosophy to deliver the substantial majority of NEO compensation in the form of stock options, including performance-based equity awards granted in 2016 and vesting based upon the achievement of stock price hurdles, a substantial portion of which were still unvested and outstanding in 2020 and therefore included in this analysis
   Strong financial performance results for this year, with 9.9% Adjusted EBITDA growth and 84.5% growth in Net Income
(1)
, correlated with stock price performance achievement and also aligned with executive pay outcomes.
2021 – Flat stock price performance resulted in reduced value for NEOs.
   Charter’s stock price continued to grow for most of the year before declining to essentially flat performance by year-end (the closing stock price of $661.55 on 12/31/2020 increased to a high of $821.01 on 9/2/2021 and then fell to $651.97 on 12/31/2021), with similar flat stock price performance observed among Primary Peers; the value of an initial $100 investment made in Charter on 12/31/2019 fell 1.5% over 2021 (from $136 to $134) versus a 0.8% increase (from $113 to $114) for such an investment among Primary Peers.
   This period of flat stock price performance resulted in Compensation Actually Paid levels that were flat or down relative to Summary Compensation Table Totals, with ratios of 0.2x for Mr. Rutledge as CEO and 0.9x for the other NEOs. The lower ratio for Mr. Rutledge relative to the other NEOs was driven by a number of factors, including the greater proportion of stock options in the CEO’s pay mix and the timing and grant prices of stock option awards granted in prior years to the CEO relative to other NEOs.
Charter Communications
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2023 Proxy Statement

   Financial performance results were strong for this year – with 11.4% Adjusted EBITDA growth and 44.7% growth in Net Income – and initially correlated with strong stock price performance. However, in the latter half of the year, challenging macroeconomic conditions and an inflationary environment drove stock price declines among Charter, Primary Peers, and the broader market as a whole.
   Given the large portion of Charter’s compensation tied to stock options, Charter’s lower levels of Compensation Actually Paid, particularly relative to 2020, were driven predominately by the flat stock price performance for the year in spite of robust financial performance results.
2022 – Declining stock price performance resulted in a significant contraction of value for NEOs.
   Stock prices for both Charter and Primary Peer companies continued to fall over the course of 2022; the value of an initial $100 investment made in Charter on 12/31/2019 fell 48.0% over 2022 (from $134 to $70) versus a 26.3% decline (from $114 to $84) for such an investment among Primary Peers.
   The decline in stock price had a significant impact on Charter’s levels of Compensation Actually Paid, with all NEOs recognizing overall negative values of Compensation Actually Paid (i.e., net losses driven by declining equity values exceeded their Summary Compensation Table Totals).
   Charter continued to achieve annual growth in both Net Income (increasing 9.9% from the prior year) and Adjusted EBITDA (increasing 4.8% from the prior year), albeit at lower growth rates than in prior years. As such growth in financial performance did not correspond to an increase in stock price, these results had no direct impact on Compensation Actually Paid.
   As a result of Charter’s philosophy to deliver the substantial majority of compensation in the form of stock options, the pay versus performance outcome in 2022 – negative Compensation Actually Paid resulting from a decline in stock price – mirrored that which was observed in 2020 – high levels of Compensation Actually Paid resulting from stock price growth – and demonstrated alignment between shareholder returns and value realized by NEOs under differing performance scenarios.
(1)Based on 2019 Adjusted EBITDA of $16.855 billion and Net Income of $1.992 billion.
Description of Disclosure Requirements
The assessment of Charter’s pay versus performance was conducted pursuant to our NominatingItem 402(v) of Regulation
S-K,
comparing the following elements of pay and Corporate Governance Committee periodically throughoutperformance for the measurement period (the three-year period from January 1, 2020 through December 31, 2022):
Pay
Summary Compensation Table Total
Total compensation disclosed in the Summary Compensation Table. Generally representative of target compensation for NEOs, with the main exception being that amounts in the
non-equity
incentive compensation plan column represent actual payout levels under the annual incentive plan
(1)
.
Compensation Actually Paid
The Summary Compensation Table Total adjusted to reflect: (i) the replacement of the aggregate change in present value of defined benefit plans with the annual service cost for defined benefit plans, including modifications, (ii) the replacement of the amounts disclosed in the Stock Awards and Option Awards columns (which represent the fair value of awards at grant) with the fair value of such awards as of the end of the year, and (iii) the addition of the change in fair value of stock and options awards granted in prior years and either vesting during the year or outstanding at the end of the year.
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2023 Proxy Statement

Performance
Total shareholder return (TSR) for Charter and Primary Peer companies
Equals the change in value of a notional $100 investment in Charter and a $100 investment in Primary Peer organizations
(1)
(with such investment weighted between peers based on market capitalization) from the beginning of the pay versus performance analysis period through the end of each year of the analysis.
Charter’s GAAP net income
Consolidated net income as disclosed in Charter’s annual report on Form
10-K
for each year.
An additional financial performance measure considered to be the most important
non-TSR
related metric in determining compensation (Adjusted EBITDA)
Charter identified Adjusted EBITDA, as disclosed in Charter’s annual report on Form
10-K
for each year, as the appropriate metric based on the higher weighting of Adjusted EBITDA in the annual bonus plan relative to other metrics
(1)
. Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges and (gain) loss on sale or retirement of assets.
Identification of three to seven additional performance metrics most important for assessing pay
Although not included in the analysis of pay and performance, regulations require the identification of additional performance measures tied to compensation, which for Charter applies to five performance metrics in the annual bonus plan
(1)
and listed below
Tabular List of Additional Performance Metrics
Metric
Description
RevenueFinancial metric used in 2020 – 2022 bonus designs for all NEOs
Capital and Free Cash Flow Management
Non-financial
metric used in 2020 – 2022 bonus designs for all NEOs
RDOF and Subsidized Rural Build Initiatives
Non-financial
metric used in 2022 bonus design for all NEOs
Talent Planning
Non-financial
metric used in 2020 – 2022 bonus designs for Mr. Rutledge as CEO
Diversity and Inclusion
Non-financial
metric used in 2021 and 2022 bonus designs for Mr. Rutledge as CEO
(1) Refer to the Compensation Discussion & Analysis for a description of Charter’s Primary Peer group and the annual bonus plan design and performance metrics.
Determination of “Compensation Actually Paid”
Since Charter did not have any additional annual service cost for its frozen defined benefit pension plan and the change in pension value did not exceed 2.5% of the Total from the Summary Compensation Table in any given year, the variation in fair value of Charter stock and option awards over the measurement period exclusively drove any material difference between the Summary Compensation Table Total and Compensation Actually Paid. For awards granted during each year of the measurement period, Compensation Actually Paid replaces the value at grant disclosed in the Stock and Option Awards columns of the Summary Compensation Table with the fair value of such awards calculated as of
year-end
although such awards were unvested. In addition, for awards granted in prior years and unvested at the Nominatingbeginning of the applicable year of the measurement period, the change in value of such awards is included in Compensation Actually Paid and Corporate Governance Committeeis equal to (i) the fair value calculated as of the end of the year or, if the award vested during the year, the vesting date, less (ii) the fair value calculated as of the beginning of the year.
The applicable Charter equity awards included in the pay versus performance analysis – all of which were outstanding for at least
a
portion of the measurement period – and their corresponding valuation methodology were as follows:
Time-vested RSUs
– Included grants made from 2017 – 2022, valued at the average of the high and low prices of Charter common stock on each applicable valuation date.
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2023 Proxy Statement

Time-vested stock options
– Included grants made from 2017 – 2022, valued using the Black-Scholes option-pricing model. For each valuation date, the fair value was provided an overviewdetermined using the average of governance positionsthe high and low prices of institutional investorsCharter common stock on such date, the volatility and risk-free rate assumptions that are more proactive on governance matters. We also review our practices against guidelines published by stockholders and proxy advisory firms, among others.

The engagements covered a variety of topics. The topics most often raisedwere in effect for the given year, and the Company’s response to these discussions are summarized below.

ESG Reporting. Last yearexpected life assumption that was in effect on the Company posted its “2019 Corporate Responsibility Report” on its website at ir.charter.com/corporate-responsibility-report. In addition, in response to further discussion with stockholders regarding the importance of environmental, social and governance (“ESG”) oversight and reporting to stockholders, the Company is in the process of preparing an ESG report describing the Company’s policies, performance and improvement targets related to ESG. As part of this process, the Company’s Chairman and CEO has committed the Company to adopt a performance target related to greenhouse gas emissions, although the specific target continues to be developed. The Company expects to issue the report before theoriginal grant date of the 2021 annual stockholders’ meeting,stock options, less the time that had elapsed since the grant date.

Performance-based stock options
 &
RSUs
– Included portions of performance-based awards granted in 2016 and vesting based upon the report will includeachievement of certain stock price objectives over a period of up to six years, with the greenhouse gas target. We will continue to engage internalfinal tranches of these awards vesting in 2020 and external stakeholders in ESG discussions, reviewing2021. For valuation dates on which such awards were outstanding and unvested (i.e., at the initiativesbeginning of other companies,2020 and reviewing2021), the meansfair value was calculated using a Monte Carlo valuation analysis. For valuation dates on which such awards were vesting, stock options were valued using the Black-Scholes option-pricing model with the same assumptions as noted above for time-vested stock options, and opportunities for further carbon emission reductions inRSUs were valued at the future. The Company also expects to respond to the CDP (formerly the Carbon Disclosure Project) questionnaire for a private score in 2021, the Company’s first year of participation in CDP.

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Board Diversity. Our Governance Guidelines reflect our commitment to diversity and provide that a candidate’s contribution of diversity to the board of directors (based on common factors associated with diversity such as gender, race/ethnicity and other background characteristics that enhance the diversityaverage of the board) will be onehigh and low prices of the many elements to be considered in evaluating candidates. At this time, our Board includes a female African American, an Asian American/Pacific Islander and a Latino American. Also, the Nominating and Corporate Governance Committee has undertaken to begin identifying diverse director candidates so a pipe-line is developed in case an opening occursCharter common stock on the Board of Directors.

We take seriously the views of our stockholders and took into consideration all the various input we received, and intend to continue our stockholder engagement efforts in 2021.

applicable valuation date.

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2023 Proxy Statement


Summary Compensation Table

The following table sets forth compensation information for our named executive officers (“NEOs”) that were identified as such as of December 31, 2020.2022.

 

Name and Principal Position

  Year   Salary ($)(1)   Stock
Awards
($)(2)
   Option
Awards
($)(3)
   Non-Equity
Incentive Plan
Compensation
($)(4)
   Change in
pension value
and
nonqualified
deferred
compensation
earnings
($)(5)
   All Other
Compensation
($)(6)
   Total ($) 

Thomas M. Rutledge

Chairman and

Chief Executive Officer

   2020    2,073,077        30,005,695    6,299,963    176,085    291,885    38,846,705 
   2019    2,000,000            6,082,080    205,079    456,442    8,743,601 
   2018    2,000,000            5,738,112        419,152    8,157,264 

John Bickham

President and

Chief Operating Officer

   2020    1,500,000        31,495,475    3,025,800    134,620    300,052    36,455,947 
   2019    1,500,000            3,041,040    182,720    313,645    5,037,405 
   2018    1,500,000            2,869,056    1,859    358,239    4,729,154 

Rich DiGeronimo

Chief Product &

Technology Officer

   2020    1,000,000    399,917    3,600,060    1,613,760        20,598    6,634,335 
                
                

David G. Ellen

Senior Executive

Vice President

   2020    1,250,000    750,165    6,750,203    2,017,200        20,000    10,787,568 
   2019    1,250,000            2,027,360        22,349    3,299,709 
   2018    1,250,000            1,912,704        78,610    3,241,314 

Christopher L. Winfrey

Chief Financial Officer

   2020    1,000,000    900,198    8,100,243    1,613,760        123,209    11,737,410 
   2019    928,454            1,458,519        85,790    2,472,763 
   2018    850,000            1,219,349        61,919    2,131,268 

Name and Principal Position

 Year  Salary ($)(1)  Bonus ($)(2)  

Stock

Awards

($)(3)

  

Option

Awards

($)(4)

  

Non-Equity

Incentive Plan

Compensation

($)(5)

  

Change in

pension value

and

nonqualified

deferred

compensation

earnings

($)(6)

  

All Other

Compensation

($)(7)

  Total ($) 

Christopher L. Winfrey

President and

Chief Executive Officer

  2022   1,359,038         12,001,909   2,035,221      230,799   15,626,967 
  2021   1,041,346      712,575   7,038,681   2,747,200      145,914   11,685,716 
  2020   1,000,000      900,198   8,100,243   1,613,760      123,209   11,737,410 

Thomas M. Rutledge

Executive Chairman

  2022   2,447,115         30,005,043   6,364,251   (249,614  646,555   39,213,350 
  2021   2,500,000         30,004,409   8,901,000   59,302   395,552   41,860,263 
  2020   2,073,077         30,005,695   6,299,963   176,085   291,885   38,846,705 

Richard J. DiGeronimo

President, Product

and Technology

  2022   1,298,461      880,296   7,921,224   1,740,968      200,572   12,041,521 
  2021   1,041,346      499,824   4,500,594   2,747,200      77,878   8,866,842 
  2020   1,000,000      399,917   3,600,060   1,613,760      20,598   6,634,335 

David G. Ellen

Senior Executive

Vice President

  2022   1,250,000      549,963   4,950,823   1,544,800      74,861   8,370,447 
  2021   1,250,000      525,165   4,725,735   2,747,200      108,188   9,356,288 
  2020   1,250,000      750,165   6,750,203   2,017,200      20,000   10,787,568 

Jessica M. Fischer

Chief Financial Officer

  2022   700,000      349,762   3,150,523   811,020      21,530   5,032,835 
  2021   555,752   250,000   295,982   1,704,509   777,767      19,476   3,603,486 

Jonathan Hargis

Special Advisor

to the COO

  2022   450,962      349,762   3,150,523   505,499      27,762   4,484,508 

 

(1)

Messrs. Winfrey and DiGeronimo’s salary calculations are prorated based on the adjustment to their base salaries effective September 20, 2022. Mr. Rutledge’s salary calculation is prorated based on the adjustment to his base salary effective October 27, 2020.December 1, 2022. Mr. Hargis’s salary calculation is prorated based on the adjustment to his base salary effective April 1, 2022.

 

(2)

Ms. Fischer received a $250,000 lump sum payment made in connection with her relocation in 2021.

(3)

Amounts reported in this column reflect the aggregate grant date fair value of restricted stock unit grants, if any, to each NEO during the applicable fiscal years set forth above. Amounts reported represent the aggregate grant date fair value based on the average of the high and low stock prices on the applicable grant date. For more information on accounting guidance regarding stock compensation, see “Impact of Tax and Accounting” under Compensation Discussion and Analysis.

 

(3)(4)

Amounts reported in this column were calculated in accordance with GAAP and reflect the aggregate grant date fair value of options granted to each NEO during the applicable fiscal years set forth above. For more information on accounting guidance regarding stock compensation, see “Impact of Tax and Accounting” under Compensation Discussion & Analysis.

 

(4)(5)

The amounts reported under this column for 20202022 are executive bonus plan payments made in 20212023 for each NEO under the 20202022 Executive Bonus Plan. Mr. Rutledge’s bonus calculationWinfrey’s target annual incentive amount is prorated based on the adjustment towith his prior base salary effective October 27, 2020.of $1,250,000 and target annual incentive of 160% of base salary in effect from January 1, 2022 through September 19, 2022, and his new base salary of $1,700,000 and target annual incentive of 250% of base salary as of September 20, 2022. Mr. Rutledge’s target annual incentive amount is prorated with his prior base salary of $2,500,000 and target annual incentive of 300% of base salary in effect from January 1, 2022 through November 30, 2022, and his new base salary of $1,250,000 and target annual incentive of 300% of base salary as of December 1, 2022. Mr. DiGeronimo’s target annual incentive amount is prorated with his prior base salary of $1,250,000 and target annual incentive of 160% of base salary

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in effect from January 1, 2022 through September 19, 2022, and his new base salary of $1,450,000 and target annual incentive of 200% of base salary as of September 20, 2022. Mr. Hargis’s target annual incentive amount is prorated with his prior base salary of $700,000 and target annual incentive of 150% of base salary in effect from January 1, 2022 through March 31, 2022, and his new base salary of $350,000 and target annual incentive of 150% of base salary as of April 1, 2022.

 

(5)(6)

Although the plan was frozen in 2016 and no benefits accrued after that date, these amounts representthis amount represents the aggregate change in the actuarial present value of Mr. Rutledge’s and Mr. Bickham’s accumulated pension benefits under the Time Warner Cable Pension Plan, and the Time Warner Cable Excess Benefit Pension Plan. See the Pension Benefits Table and “Legacy TWC Pension Benefits” for additional information regarding these benefits.

 

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(6)(7)

The following table identifiesamounts reported in the “All Other Compensation” column for 2022 include the perquisites and personal benefits received by the NEOs, identified below,each NEO that exceeded $10,000 in the aggregate, 401(k) matching contributions, group term life and executive long-term disability premiums and certain tax gross-upsfor the year ended December 31, 2020:2022, as detailed in the table below:

 

Name

  Personal
Use of
Corporate
Airplane
($)(a)
   401(k)
Matching
Contributions
($)
   

Group
Term

Life
Premiums

($)

   Executive
Long-
Term
Disability
Premiums
($)
   Gross-up
for
Executive
Long
Term
Disability
($)
   Other
($)(b)
   

Personal

Use of

Corporate

Airplane

($)(a)

   

401(k)

Matching

Contributions

($)

   

Group

Term

Life

Premiums

($)

   

Executive

Long-

Term

Disability

Premiums

($)

   

Gross-up

for

Executive

Long

Term

Disability

($)

   

Other

($)(b)

 

Christopher L. Winfrey

   168,027    18,300    1,018    906    1,698    40,850 

Thomas M. Rutledge

   259,209        29,718    1,029    1,929        601,171        27,960    906    1,698    14,820 

John Bickham

   285,970        11,124    1,029    1,929     

Rich DiGeronimo

       17,100    540    1,029    1,929     

David Ellen

       14,692    2,322    1,029    1,929    28 

Christopher L. Winfrey

   102,269    17,100    810    1,029    1,929    72 

Richard J. DiGeronimo

   178,858    18,300    810    906    1,698     

David G. Ellen

   51,635    18,300    2,322    906    1,698     

Jessica M. Fischer

       18,300    576    906    1,698    50 

Jonathan Hargis

       18,300    6,858    906    1,698     

 

 (a)

As set forth in more detail below under the section titled “Employment“NEO Employment Agreements”, Messrs. Winfrey, Rutledge, DiGeronimo and BickhamEllen are allowed to use the Company’s aircraft for a certain amount of hours of discretionary personal use every year in accordance with their respective employment agreements. Mr. RutledgeWinfrey also has the authority to allow other executives to use the Company’s aircraft for personal use. Amounts reported above for Messrs. Winfrey, Rutledge, BickhamDiGeronimo and WinfreyEllen are calculated as the aggregate incremental cost to the Company using a method that takes into account variable costs such as aircraft fuel and oil expenses per hour of flight; crew travel expenses; landing and parking fees; and trip-related inspections, repairs and maintenance. The aggregate incremental costs reported above also take into account costs associated with private aircraft for hire services. Because the Company’s aircraft is used primarily for business travel, this methodology excludes fixed costs that do not change based on usage, such as salaries of pilots and crew or purchase or lease costs of aircraft. For purposes of determining an executive’s taxable income, personal use of our aircraft is valued using a method based on Standard Industry Fare Level (“SIFL”) rates, as published by the Internal Revenue Service. The amount determined using the SIFL rates is typically lower than the amount determined using the incremental cost method.

 

 (b)

Amounts reported for 20202022 for Messrs. Winfrey and Rutledge represent gross-upsthe reimbursement of legal fees and other charges incurred in connection with the drafting, negotiation and implementation of their respective employment agreements entered into on September 20, 2022 and for 2020Ms. Fischer represent a gross-up for a 2022 service awards.award.

 

 

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20202022 Grants of Plan Based Awards

 

Name

  Grant
Date(1)
   

 

Estimated Future Payouts
Under Non-Equity Incentive
Plan Awards(2)

   All
Other
Stock
Awards:
Number
of
Shares
of Stock
or Units
(#)(4)
   All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)(5)
   Exercise
or Base
Price of
Option
Awards
($)(6)
   Grant Date
Fair Value
of Stock
and Option
Awards
($)(7)
  

Grant

Date(1)

  

 

Estimated Future Payouts

Under Non-Equity Incentive

Plan Awards(2)

  

All

Other

Stock

Awards:

Number

of

Shares

of Stock

or Units

(#)(4)

 

All Other

Option

Awards:

Number of

Securities

Underlying

Options

(#)(5)

 

Exercise

or Base

Price of

Option

Awards

($)(6)

 

Grant Date

Fair Value

of Stock

and Option

Awards

($)(7)

 
Threshold –
0% ($)
   Target –
100% ($)(3)
   Maximum –
150% ($)(3)
 

Threshold –

0% ($)

 

Target –

100% ($)(3)

 

Maximum –

150% ($)(3)

 

Christopher L. Winfrey

       2,634,932  3,952,397             
 1/18/2022              57,356  588.825  10,001,739 
 9/22/2022              17,073  342.235  2,000,170 

Thomas M. Rutledge

           6,270,492    9,405,738                        7,181,507  10,772,260             
   11/3/2020                    195,022    597.16    30,005,695  1/18/2022              172,067  588.825  30,005,043 

John Bickham

           3,000,000    4,500,000                 

Richard J. DiGeronimo

       2,253,973  3,380,959             
   12/23/2020                188,909    646.31    31,495,475  1/18/2022           1,359        800,213 

Rich DiGeronimo

           1,600,000    2,400,000                 
 1/18/2022              41,296  588.825  7,201,196 
   1/15/2020                781            399,917  9/22/2022           234        80,083 
   1/15/2020                    24,781    512.06    3,600,060  9/22/2022              6,146  342.235  720,028 

David G. Ellen

           2,000,000    3,000,000                        2,000,000  3,000,000             
   1/15/2020                1,465            750,165  1/18/2022           934        549,963 
   1/15/2020                    46,465    512.06    6,750,203  1/18/2022              28,391  588.825  4,950,823 

Christopher L. Winfrey

           1,600,000    2,400,000                 

Jessica M. Fischer

       1,050,000  1,575,000             
   1/15/2020                1,758            900,198  1/18/2022           594        349,762 
   1/15/2020                    55,758    512.06    8,100,243  1/18/2022              18,067  588.825  3,150,523 

Jonathan Hargis

       654,452  981,678             
 1/18/2022           594        349,762 
 1/18/2022              18,067  588.825  3,150,523 

 

(1)

As described in the section titled “Compensation Actions in 2022” in the Compensation Discussion & Analysis, Messrs. Winfrey, Rutledge, DiGeronimo, Ellen and Hargis and Ms. Fischer received grants on January 18, 2022 under Charter’s annual equity program. Mr. RutledgeWinfrey received a grant on November 3, 2020September 22, 2022 in connection with the execution of his amended and restated employment agreement and promotion to President and Chief Executive Officer. Mr. DiGeronimo received a grant on September 22, 2022 in connection with the execution of his new employment agreement. Mr. Bickham received a grant on December 23, 2020 in connection with the execution of his new employment agreement. Messrs. Ellenagreement and Winfrey received grants on January 15, 2020 as described in the section titled “Compensation Actions in 2020” in the Compensation Discussionpromotion to President, Product & Analysis. Mr. DiGeronimo received grants on January 15, 2020 as part of the Company’s annual equity grant program.Technology.

 

(2)

These columns show the range of payouts under the 20202022 Executive Bonus Plan based on the applicable 20202022 performance criteria. Related payments were made in 20212023 for 20202022 performance based on the metrics described in the section titled “2020“2022 Executive Bonus Plan” in the Compensation Discussion & Analysis. These payments are reflected in the Non-Equity Incentive Plan column in the Summary Compensation Table.

 

(3)

Mr. Rutledge’sWinfrey’s target annual incentive amount and maximum annual incentive amount is prorated with his prior base salary of $2,000,000$1,250,000 and target annual incentive of 300%160% of base salary in effect from January 1, 20202022 through October 26, 2020September 19, 2022, and his new base salary of $1,700,000 and target annual incentive of 250% of base salary as of September 20, 2022. Mr. Rutledge’s target annual incentive amount is prorated with his prior base salary of $2,500,000 and target annual incentive of 300% of base salary in effect from January 1, 2022 through November 30, 2022, and his new base salary of $1,250,000 and target annual incentive of 300% of base salary as of October 27, 2020.December 1, 2022. Mr. DiGeronimo’s target annual incentive amount is prorated with his prior base salary of $1,250,000 and target annual incentive of 160% of base salary in effect from January 1, 2022 through September 19, 2022, and his new base salary of $1,450,000 and target annual incentive of 200% of base salary as of September 20, 2022. Mr. Hargis’s target annual incentive amount is prorated with his prior base salary of $700,000 and target annual incentive of 150% of base salary in effect from January 1, 2022 through March 31, 2022, and his new base salary of $350,000 and target annual incentive of 150% of base salary as of April 1, 2022.

 

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(4)

Awards under this column were granted as restricted stock units under the 2020 LTIP2019 Stock Incentive Plan and are more fully described in the “Outstanding Equity Awards at Fiscal Year-End” table.

 

(5)

These option awards were granted as options under the 2020 LTIP2019 Stock Incentive Plan and are more fully described in the “Outstanding Equity Awards at Fiscal Year-End” table.

 

(6)

The exercise prices of the option awards were determined using the average of high and low stock prices on the date of grant.

 

(7)

Amounts were calculated in accordance with accounting guidance related to share-based payment transactions and represent the aggregate grant date fair value. For more information, see “Impact of Tax and Accounting” under Compensation Discussion & Analysis.

 

 

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Outstanding Equity Awards at Fiscal Year End

The following table provides information concerning unexercised options and unvested restricted stock and restricted stock units for each of our NEOs that remained outstanding as of December 31, 2020.2022. In connection with the closing of the Transactions the merger exchange ratio of .9042 was applied to the exercise price and performance targets (divided by .9042) and the number of restricted stock units and stock options (multiplied by .9042) for all equity awards outstanding on May 18, 2016.

 

  Option Awards       Stock Awards  Option Awards     Stock Awards 

Name

  Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#)
 Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#)
 Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options (#)
 Option
Exercise
Price
($)
   Option
Expiration
Date
      Number of
Shares or
Units of
Stock That
Have Not
Vested (#)
 Market
Value of
Shares or
Units of Stock
That Have
Not Vested
(#)(1)
   Equity
Incentive
Plan Awards:
Number of
Unearned
Shares, Units
or Other
Rights
That Have
Not  Vested
(#)
 Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares,
Units or
Other Rights
That Have
Not Vested
($)(1)
  

Number of

Securities

Underlying

Unexercised

Options

Exercisable

(#)

 

Number of

Securities

Underlying

Unexercised

Options

Unexercisable

(#)

 

Equity

Incentive

Plan

Awards:

Number of

Securities

Underlying

Unexercised

Unearned

Options (#)

 

Option

Exercise

Price

($)

 

Option

Expiration

Date

    

Number of

Shares or

Units of

Stock That

Have Not

Vested (#)

 

Market

Value of

Shares or

Units of Stock

That Have

Not Vested

(#)(1)

 

Equity

Incentive

Plan Awards:

Number of

Unearned

Shares, Units

or Other

Rights

That Have

Not Vested

(#)

 

Equity

Incentive

Plan Awards:

Market or

Payout
Value

of Unearned

Shares,

Units or

Other Rights

That Have

Not Vested

($)(1)

 

Christopher L. Winfrey

 36,976(2)        150.88  1/15/2024              
 34,046(3)        175.76  1/15/2025              
 24,064(4)        183.87  1/15/2026              
 497,309(5)        221.25  6/17/2026              
    55,758(6)     512.06  1/15/2030              
    31,819(7)     625.55  1/15/2031              
    5,176(8)     704.21  7/15/2031              
    3,099(9)     714.99  10/19/2031              
    57,356(10)     588.83  1/18/2032              
    17,073(11)     342.24  9/22/2032              
                 2,877(12)  $975,591       

Thomas M. Rutledge

   147,905(2)        150.88    1/15/2024                 147,905(2)        150.88  1/15/2024              
   136,188(3)        175.76    1/15/2025                 136,188(3)        175.76  1/15/2025              
   602,800(4)     301,400(4)  222.92    4/25/2026                 904,200(5)        222.92  4/25/2026              
   482,240(4)     241,120(4)  232.34    4/26/2026                 723,360(5)        232.34  4/26/2026              
        195,022(5)  597.16    11/3/2030                    195,022(13)     597.16  11/3/2030              
                            60,282(6)  $39,879,557     176,770(7)     625.55  1/15/2031              

John Bickham

   78,364(4)     195,910(4)  221.25    6/17/2026                
    172,067(10)     588.83  1/18/2032              

Richard J. DiGeronimo

 23,620(14)        353.20  1/16/2028              
   18,084(4)     45,210(4)  242.30    7/25/2026                 27,151(15)        292.31  1/15/2029              
     188,909(7)     646.31    12/23/2030                 6,760(16)        378.67  8/15/2029              
                            26,793(6)  $17,724,909     24,781(6)     512.06  1/15/2030              

Rich DiGeronimo

     23,620(8)     353.20    1/16/2028                
    21,212(7)     625.55  1/15/2031              
     27,151(9)     292.31    1/15/2029                    4,462(9)     714.99  10/19/2031              
     6,760(10)     378.67    8/15/2029                    41,296(10)     588.83  1/18/2032              
     24,781(11)     512.06    1/15/2030                    6,146(11)     342.24  9/22/2032              
                     2,542(12)  $1,681,660                         3,153(17)  $1,069,182       

David G. Ellen

   164,370(4)     135,630(4)  221.25    6/17/2026                 200,000(5)        221.25  6/17/2026              
     46,465(11)     512.06    1/15/2030                    46,465(6)     512.06  1/15/2030              
                            15,072(6)  $9,970,882     26,516(7)     625.55  1/15/2031              
                     1,465(13)  $969,171            1,150(8)     704.21  7/15/2031              

Christopher L. Winfrey

   36,976(2)        150.88    1/15/2024                
    28,391(10)     588.83  1/18/2032              
                 3,234(18)  $1,096,649       

Jessica M. Fischer

 5,765(15)        292.31  1/15/2029              
   34,046(3)        175.76    1/15/2025                    3,289(6)     512.06  1/15/2030              
   24,064(14)        183.87    1/15/2026                    2,815(7)     625.55  1/15/2031              
   331,539(4)     165,770(4)  221.25    6/17/2026                    4,610(19)     621.71  2/5/2031              
     55,758(11)     512.06    1/15/2030                    2,231(9)     714.99  10/19/2031              
                            18,420(6)  $12,185,751     18,067(10)   588.83  1/18/2032              
                     1,758(13)  $1,163,005                         1,369(20)  $464,228       

Jonathan Hargis

    27,879(6)     512.06  1/15/2030              
    15,909(7)     625.55  1/15/2031              
    1,725(8)     704.21  7/15/2031              
    18,067(10)     588.83  1/18/2032              
                 2,006(18)  $680,235       

 

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(1)

Based on the closing stock price at December 31, 202030, 2022 of $661.55$339.10 per share.

 

(2)

Amounts shown reflect time-vesting stock options granted on January 15, 2014 under the 2009 Stock Incentive Plan that fully vested and became exercisable on the third anniversary of the grant date.

 

(3)

Amounts shown reflect time-vesting stock options granted on January 15, 2015 under the 2009 Stock Incentive Plan that fully vested and became exercisable on the third anniversary of the grant date.

 

(4)

Amounts shown reflect time-vesting stock options granted on January 15, 2016 under the 2009 Stock Incentive Plan that fully vested and became exercisable on the third anniversary of the grant date.

(5)

Amounts shown reflect grants of performance-vesting stock options that vestvested subject to achievement of certain price per share thresholds measured based on the average of the per share closing price of the Company’s Class A common stock on the NASDAQ Global Select for sixty (60) consecutive trading days. For Mr. Rutledge, represents the awards that were granted on April 25, 2016 and April 26, 2016, respectively. For Mr. Bickham, represents the awards that were granted on June 17, 2016Messrs. Winfrey and July 25, 2016, respectively. For Messrs. Ellen, and Winfrey, represents the awards of stock options that were granted on June 17, 2016.

 

(5)(6)

Amounts shown reflect time-vesting stock options granted on November 3,January 15, 2020 under the 2019 Stock Incentive Plan that fully vested and became exercisable on the third anniversary of the grant date.

(7)

Amounts shown reflect time-vesting stock options granted on January 15, 2021 under the 2019 Stock Incentive Plan that fully vest and become exercisable on the third anniversary of the grant date.

 

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(6)

Amounts shown reflect grants of performance-vesting restricted stock units (RSUs) that vest subject to achievement of certain price per share thresholds measured based on the average of the per share closing price of the Company’s Class A common stock on the NASDAQ Global Select for sixty (60) consecutive trading days. For Mr. Rutledge, represents the award that was granted on April 25, 2016. For Mr. Bickham, represents the awards that were granted on June 17, 2016 and July 25, 2016, respectively, and are shown as a combined amount in the table. For Messrs. Ellen and Winfrey, represents the awards that were granted on June 17, 2016.

(7)

Amounts shown reflect time-vesting stock options granted on December 23, 2020 under the 2019 Stock Incentive Plan that fully vest and become exercisable on December 31, 2022.

(8)

Amounts shown reflect time-vesting stock options granted on January 16, 2018July 15, 2021 under the 20092019 Stock Incentive Plan that fully vest and become exercisable on the third anniversary of the grant date.

 

(9)

Amounts shown reflect time-vesting stock options granted on January 15, 2019October 19, 2021 under the 20092019 Stock Incentive Plan that fully vest and become exercisable on the third anniversary of the grant date.

 

(10)

Amounts shown reflect time-vesting stock options granted on August 15, 2019January 18, 2022 under the 2019 Stock Incentive Plan that fully vest and become exercisable on the third anniversary of the grant date.

 

(11)

Amounts shown reflect time-vesting stock options granted on January 15, 2020September 22, 2022 under the 2019 Stock Incentive Plan that fully vest and become exercisable on the third anniversary of the grant date.

 

(12)

Amounts shown reflect time-vesting RSUs granted on January 16, 2018 and15, 2020, January 15, 2019, under the 2009 Stock Incentive Plan2021 and on AugustJuly 15, 2019 and January 15, 20202021 under the 2019 Stock Incentive Plan that fully vest on the third anniversary of the grant date.

 

(13)

Amounts shown reflect time-vesting RSUsstock options granted on January 15,November 3, 2020 under the 2019 Stock Incentive Plan that fully vest and become exercisable on the third anniversary of the grant date.

 

(14)

Amounts shown reflect time-vesting stock options granted on January 15, 201616, 2018 under the 2009 Stock Incentive Plan that fully vested and became exercisable on the third anniversary of the grant date.

 

(15)

Amounts shown reflect time-vesting stock options granted on January 15, 2019 under the 2009 Stock Incentive Plan that fully vested and became exercisable on the third anniversary of the grant date.

(16)

Amounts shown reflect time-vesting stock options granted on August 15, 2019 under the 2019 Stock Incentive Plan that fully vested and became exercisable on the third anniversary of the grant date.

(17)

Amounts shown reflect time-vesting RSUs granted January 15, 2020, January 15, 2021, October 19, 2021, January 18, 2022 and September 22, 2022 under the 2019 Stock Incentive Plan that fully vest on the third anniversary of the grant date.

(18)

Amounts shown reflect time-vesting RSUs granted on January 15, 2020, January 15, 2021, July 15, 2021 and January 18, 2022 under the 2019 Stock Incentive Plan that fully vest on the third anniversary of the grant date.

(19)

Amounts shown reflect time-vesting stock options granted on February 5, 2021 under the 2019 Stock Incentive Plan that fully vest and become exercisable on the third anniversary of the grant date.

(20)

Amounts shown reflect time-vesting RSUs granted on January 15, 2020, January 15, 2021, February 5, 2021, October 19, 2021 and January 18, 2022 under the 2019 Stock Incentive Plan that fully vest on the third anniversary of the grant date.

 

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20202022 Options Exercised and Stock Vested

The following table provides information on option awards exercised and restricted stock and stock unit awards that vested during 20202022 for each of the Company’s NEOs.

 

Name

  Option Awards       Stock Awards 
  Number of Shares
Acquired on
Exercise (#)
   Value Realized
on Exercise ($)
       Number of Shares
Acquired on Vesting
or Transfer for
Value (#)
   Value Realized on
Vesting ($)(1)
 

Thomas M. Rutledge(2)

   384,285   $224,451,827     100,465   $56,501,114 

John Bickham(3)

   575,967   $204,994,803     44,651   $25,419,508 

Richard J. DiGeronimo(4)

   12,009   $2,744,960     2,921   $1,480,012 

David Ellen(5)

   106,890   $36,495,368     25,115   $14,297,769 

Christopher L. Winfrey(6)

   314,962   $145,798,644     30,698   $17,476,110 

Name

  Option Awards      Stock Awards 
  

Number of Shares

Acquired on

Exercise (#)

   

Value Realized

on Exercise ($)

      

Number of Shares

Acquired on Vesting

or Transfer for

Value (#)

   

Value Realized on

Vesting ($)(1)

 

Christopher L. Winfrey

                 

Thomas M. Rutledge

                 

Richard J. DiGeronimo(2)

            1,053   $615,828 

David G. Ellen

                 

Jessica M. Fischer(3)

            545   $332,450 

Jonathan Hargis(4)

            867   $292,552 

 

(1)

Amount attributed to the average high and low market values of the stock on the day of vesting.

 

(2)

On November 16, 2020, Mr. Rutledge exercised, surrendered underlying shares for the exercise price and tax withholding and held the resulting shares from (i) 203,445 stock options at an exercise price of $59.28 per option at a market value of $643.06; and (ii) 180,840 stock options at an exercise price of $59.28 per option at a market value of $643.69. Mr. RutledgeDiGeronimo had 20,093 performance-vesting855 time vesting RSUs vest on February 21, 2020January 15, 2022 and 9,031394 shares were withheld to cover taxes at a market value of $533.84$610.00 (the average of the high and low trading prices on that day). Mr. Rutledge alsoDiGeronimo had 20,093 performance-vesting198 time vesting RSUs vest on April 24, 2020August 15, 2022 and 9,31291 shares were withheld to cover taxes at a market value of $501.49 (the average of the high and low trading prices on that day). Mr. Rutledge also had 20,093 performance-vesting RSUs vest on June 17, 2020 and 9,312 shares were withheld to cover taxes at a market value of $535.97 (the average of the high and low trading prices on that day). Mr. Rutledge also had 40,186 performance-vesting RSUs vest on September 2, 2020 and 18,623 shares were withheld to cover taxes at a market value of $620.34$476.15 (the average of the high and low trading prices on that day).

 

(3)

On May 6, 2020, Mr. Bickham exercised, surrendered underlying shares for the exercise price and tax withholding and sold the resulting shares from (i) 73,952 stock options at an exercise price of $150.88 per option; (ii) 68,094 stock options at an exercise price of $175.76 per option; and (iii) 48,129 stock options at an exercise price of $183.87 per option, all stock options were exercised at a market value of $516.56. On July 31, 2020, Mr. Bickham also exercised, surrendered underlying shares for the exercise price and tax withholding and sold the resulting shares from (i) 117,546 stock options at an exercise price of $221.25 per option at a market value of $590.00; (ii) 39,182 stock options at an exercise price of $221.25 per option at a market value of $582.35; (iii) 36,168 stock options at an exercise price of $242.30 per option at a market value of $590.00; (iv) 27,126 stock options at an exercise price of $242.30 per option at a market value of $586.80; and (v) 9,042 stock options at an exercise price of $242.30 per option at a market value of $580.37. On July 31, 2020, The Bickham Family 2016 Irrevocable Trust exercised and sold (i) 39,182 stock options at an exercise price of $221.25 per option at a market value of $580.16; (ii) 39,182 stock options at an exercise price of $221.25 per option at a market value of $580.22; (iii) 39,182 stock options at an exercise price of $221.25 per option at a market value of $580.26; and (iv) 39,182 stock options at an exercise price of $221.25 per option at a market value of $580.27. Mr. BickhamMs. Fischer had 8,930 performance-vesting545 time vesting RSUs vest on February 21, 2020January 15, 2022 and 3,858176 shares were withheld to cover taxes at a market value of $533.84 (the average of the high and low trading prices on that day). Mr. Bickham also had 17,860 performance-vesting RSUs vest on June 17, 2020 and 8,277 shares were withheld to cover taxes at a market value of $535.97 (the average of the high and low trading prices on that day). Mr. Bickham also had 17,861 performance-vesting RSUs vest on September 2, 2020 and 8,277 shares were withheld to cover taxes at a market value of $620.34$610.00 (the average of the high and low trading prices on that day).

 

(4)

Mr. DiGeronimo exercised and sold 12,009 stock options at an exercise price of $299.61 per option, on February 4, 2020 at a market value of $528.18. Mr. DiGeronimoHargis had 2,921867 time vesting RSUs vest on January 17, 2020December 31, 2022 and 998430 shares were withheld to cover taxes at a market value of $506.68$337.43 (the average of the high and low trading prices on that day).

(5)

Mr. Ellen exercised, surrendered underlying shares for the exercise price and tax withholding and sold the resulting shares from 60,000 stock options at an exercise price of $221.25 per option, on May 11, 2020 at a market value of $513.33. Mr. Ellen also exercised, surrendered underlying shares for the exercise price and tax withholding and sold the resulting shares from 20,000 stock options at an exercise price of $221.25 per option, on August 7, 2020 at a market value

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of $601.66. Mr. Ellen further exercised, surrendered underlying shares for the exercise price and tax withholding and sold the resulting shares from 26,890 stock options at an exercise price of $221.25 per option, on November 5, 2020 at a market value of $643.79. Mr. Ellen had 5,023 performance-vesting RSUs vest on February 21, 2020 and 2,393 shares were withheld to cover taxes at a market value of $533.84 (the average of the high and low trading prices on that day). Mr. Ellen also had 10,046 performance-vesting RSUs vest on June 17, 2020 and 5,347 shares were withheld to cover taxes at a market value of $535.97 (the average of the high and low trading prices on that day). Mr. Ellen also had 10,046 performance-vesting RSUs vest on September 2, 2020 and 5,347 shares were withheld to cover taxes at a market value of $620.34 (the average of the high and low trading prices on that day).

(6)

On February 4, 2020, Mr. Winfrey (i) exercised, surrendered underlying shares for the exercise price and tax withholding and held the resulting shares from 40,689 stock options at an exercise price of $36.17 per option at a market value of $528.85; and (ii) exercised, surrendered underlying shares for the exercise price and tax withholding and sold the resulting shares from 40,689 stock options at an exercise price of $36.17 per option at a market value of $528.64. On May 5, 2020, Mr. Winfrey further exercised, surrendered underlying shares for the exercise price and tax withholding and held the resulting shares from (i) 117,664 stock options at an exercise price of $60.96 per option at a market value of $516.90; and (ii) 50,428 stock options at an exercise price of $60.96 per option at a market value of $516.93. On May 6, 2020, The Christopher L. Winfrey GRAT II exercised, surrendered underlying shares for the exercise price and tax withholding and held the resulting shares from (i) 19,647 stock options at an exercise price of $60.96 per option at a market value of $504.917; and (ii) 45,845 stock options at an exercise price of $60.96 per option at a market value of $504.85. Mr. Winfrey had 6,139 performance-vesting RSUs vest on February 21, 2020 and 3,007 shares were withheld to cover taxes at a market value of $533.84 (the average of the high and low trading prices on that day). Mr. Winfrey also had 12,280 performance-vesting RSUs vest on June 17, 2020 and 6,014 shares were withheld to cover taxes at a market value of $535.97 (the average of the high and low trading prices on that day). Mr. Winfrey also had 12,279 performance-vesting RSUs vest on September 2, 2020 and 6,014 shares were withheld to cover taxes at a market value of $620.34 (the average of the high and low trading prices on that day).

Retirement Benefits

We sponsor a 401(k) plan, which is a qualified retirement plan offered to all eligible employees, including our NEOs, that permits eligible employees to elect to defer a portion of their compensation on a pre-tax basis.

Legacy TWC Pension Benefits

In connection with Mr. Rutledge’s and Mr. Bickham’s employment by a predecessor and/or affiliate of Legacy TWC, Mr. Rutledge and Mr. Bickham participated in the Time Warner Cable Pension Plan, a tax qualified defined benefit pension plan (the “Cable“Pension Plan”), and the Time Warner Cable Excess Benefit Pension Plan (the “Excess Benefit Plan”), a nonqualified defined benefit pension plan (collectively, the “Pension Plans”) offered by those employers and accrued a benefit as a result. No other NEO is entitled to benefits under the Pension Plans.Plan. As of the closing of the Transactions, Charter is the sponsor of the Pension Plans.Plan. As of December 31, 2020,2022, the present value of Mr. Rutledge’s and Mr. Bickham’s accrued benefit under the Pension PlansPlan was $1,624,327, and $1,481,437, respectively,$1,434,015, reflecting the assumptions that (a) the benefits will be payable at the earliest retirement age at which unreduced benefits are assumed to be payable (which is age 65) under the plans,Pension Plan, valued as if paid as a life annuity, (b) 28.58 and 8.75 years respectively, of benefit service to Legacy TWC during theirhis tenure there, and (c) are consistent with the assumptions used in the calculation of the Company’s benefit obligations as disclosed in Note 2221 to the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.2022.

Federal tax law limits both the amount of compensation that is eligible for the calculation of benefits and the amount of benefits that may be paid to participants under a tax-qualified plan, such as the CablePension Plan. However, as permitted under Federal tax law, Legacy TWC designed the Excess Benefit Plan to provide for supplemental payments by Legacy TWC of an amount that eligible employees would have received under the Cable Plan if eligible compensation were subject to a higher limit and there were no payment restrictions. The amount of the payment under the Excess Benefit Plan is calculated based on the differences between (a) the annual benefit that would have been payable under the Cable Plan if the annual eligible compensation limit imposed by the tax laws was $350,000 (the maximum compensation limit imposed under the Excess Benefit Plan) and (b) the actual benefit payable under the Cable Plan.

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Benefit payments under the Pension PlansPlan are calculated using the highest consecutive five-year average annual compensation (subject to federal law limits and the $350,000 limit referred to above), which is referred to as “average compensation.” Compensation covered by the Pension PlansPlan takes into account salary, bonus, some elective deferrals and other compensation paid, but excludes the payment of deferred or long-term incentive compensation and severance payments. The annual pension payment under the

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terms of the TWC Pension Plans,Plan, if the retired employee is vested, and if paid as a single life annuity, commencing at age 65, is an amount equal to the sum of:

 

1.25% of the portion of average compensation that does not exceed the average of the Social Security taxable wage base ending in the year the employee reaches the Social Security retirement age, referred to as “covered compensation,” multiplied by the number of years of benefit service up to 35 years, plus

1.25% of the portion of average compensation that does not exceed the average of the Social Security taxable wage base ending in the year the employee reaches the Social Security retirement age, referred to as “covered compensation,” multiplied by the number of years of benefit service up to 35 years, plus

 

1.67% of the portion of average compensation that exceeds covered compensation, multiplied by the number of years of benefit service up to 35 years, plus

1.67% of the portion of average compensation that exceeds covered compensation, multiplied by the number of years of benefit service up to 35 years, plus

 

0.5% of average compensation multiplied by the employee’s number of years of benefit service in excess of 35 years, plus

0.5% of average compensation multiplied by the employee’s number of years of benefit service in excess of 35 years, plus

 

a supplemental benefit in the amount of $60 multiplied by the employee’s number of years of benefit service up to 30 years, with a maximum supplemental benefit of $1,800 per year.

a supplemental benefit in the amount of $60 multiplied by the employee’s number of years of benefit service up to 30 years, with a maximum supplemental benefit of $1,800 per year.

Reduced benefits are available in the case of retirement before age 65 and in other optional forms of benefits payouts, as described below.

The benefits under the Pension Plan are payable as (i) a single life annuity, (ii) a 50%, 75% or 100% joint and survivor annuity, (iii) a life annuity that is guaranteed for 10 years, or (iv) as of January 1, 2015, a lump sum. Spousal consent is required in certain cases. The participant may elect the form of benefit payment at the time of retirement or termination of employment (in which case, benefits are payable as (i) a single life annuity, (ii) a 50% or 75% joint and survivor annuity or (iii) a lump sum). In the case of a single life annuity, the amount of the annuity is based on the applicable formulas described above. In the case of a joint and survivor annuity, the amount of the annuity is based on the single life annuity amount but is reduced to take into account the ages of the participant and beneficiary at the time the annuity payments begin and the percentage elected by the participant. In the case of a life annuity that is guaranteed for a period of time, the amount of the annuity is based on the single life annuity amount but is reduced to take into account the guaranteed period. Benefits under the Excess Benefit Plan are payable only as a lump sum, unless the participant elected to receive monthly installments over 10 years by the applicable deadline.

Pension Benefits Table

Set forth in the table below are the years of credited service and the present value of Mr. Rutledge’s and Mr. Bickham’s accumulated benefit under the Pension PlansPlan computed as of December 31, 2020,2022, the pension plan measurement date used for financial statement reporting purposes in the Company’s audited consolidated financial statements for the year ended December 31, 2020.2022.

Pension Benefits for 20202022

 

Name

  Plan Name    Number of Years
Credited Service(1)
     Present Value of
Accumulated
Benefit(2)
   Plan Name  

Number of Years

Credited Service(1)

   

Present Value of

Accumulated

Benefit(2)

 

Thomas M. Rutledge

  Time Warner Cable Pension Plan     28.583     $1,624,327   Time Warner Cable Pension Plan   28.583   $1,434,015 
  Excess Benefit Plan          
          

 

 
  Total        $1,624,327 

John Bickham

  Time Warner Cable Pension Plan     8.75     $857,994 
  Excess Benefit Plan        $623,443 
          

 

 
  Total        $1,481,437 

 

(1)

Consists of the number of years of service credited to the executive officers as of December 31, 20202022 for the purpose of determining benefit service under the Pension Plans.Plan.

 

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(2)

The present valuesvalue of accumulated benefits for the Pension PlansPlan as of December 31, 2020 were2022 was calculated using a discount rate of 2.70% for the Cable Plan and 2.47% for the Excess Plan.5.46%. The mortality assumption is based on the Pri-2012Pri-2020 Sex-Distinct Annuitant Mortality projected forward using generational Scale MP-2020. Lump sums are based on 20212023 417(e) mortalityMortality and September 2020 interest rates.2022 Interest Rates. The calculations are based on the assumptions used in the calculation of the Company’s benefit obligations as disclosed in Note 2221 to the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 20202022 except that retirement is assumed to be at the earliest unreduced age and no pre-retirement mortality.

NEO Employment Agreements

Thomas M. RutledgeChristopher L. Winfrey

On October 27, 2020,September 20, 2022, Charter and Mr. Winfrey entered into an amended and restated employment agreement with Thomas Rutledge (the “Rutledgewhich was amended effective as of February 22, 2023 (collectively, the “Winfrey Agreement”). The RutledgeWinfrey Agreement has a term endingprovides that

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effective December 31, 2024 and provides that1, 2022, Mr. Rutledge will serveWinfrey became employed in an executive capacity as the Chairman of the Charter board of directorsPresident and Chief Executive Officer of Charter and will have duties commensurate with such positions. Under the Rutledge Agreement, Mr. Rutledge is to receiveresponsibilities, duties and authority as are customary for such role, at a current base salary of $2,500,000at least $1,700,000 per year during the term, commencing October 27, 2020, subject to annual review and, in its discretion, increase by the Compensation and Benefits Committee. Mr. RutledgeWinfrey’s base salary increased to $1,700,000 effective September 20, 2022 in connection with his December 1, 2022 promotion to President and Chief Executive Officer. Pursuant to the Winfrey Agreement, Mr. Winfrey is a non-voting Board observer and will be appointed as a member of the Board of Directors on or before December 31, 2023. Under the Winfrey Agreement, he is eligible to participate in the Executive Bonus Plan with a target bonus of not less than 250% of his annual base salary and he received an equity grant of $17,000,000 in stock options on January 17, 2023. Mr. Winfrey’s target bonus increased to 250% effective September 20, 2022 and he also received a grant of $2,000,000 in stock options on such date in connection with his December 1, 2022 promotion to President and Chief Executive Officer. He is also eligible to receive such other employee benefits as are generally made available to other senior executives. In addition, Charter must reimburse Mr. Winfrey for all reasonable and necessary expenses incurred in connection with the performance of his duties, and Mr. Winfrey is entitled to use Company aircraft for such travel and for up to 100 hours of discretionary personal use per calendar year (without carryover). The Winfrey Agreement has an initial term from the effective date through December 1, 2025, provided that the term can be extended by the Company for unlimited one-year periods. The Winfrey Agreement contains a two-year non-compete provision and a two-year non-solicitation clause.

Thomas M. Rutledge

On September 20, 2022, Charter and Mr. Rutledge entered into an amended and restated employment agreement (the “Rutledge Agreement”). The Rutledge Agreement has a term ending November 30, 2023 and provides that through November 30, 2022, Mr. Rutledge served as Chief Executive Officer and effective December 1, 2022, Mr. Rutledge transitioned to the role of Executive Chairman of the Company and the Board of Directors with duties commensurate with such position. Under the Rutledge Agreement, Mr. Rutledge’s base salary was $2,500,000 through November 30, 2022 and is $1,250,000 effective December 1, 2022, in connection with his transition to the role of Executive Chairman. The Rutledge Agreement also provides for continued eligibility to participate in the Executive Bonus Plan with a target bonus equal to 300% of his base salary.salary and a 2023 equity grant of $15,000,000 in stock options. Mr. Rutledge is also eligible to participate in other employee benefit plans, programs and arrangements available to other senior executives. In addition, Charter must reimburse Mr. Rutledge for all reasonable and necessary expenses incurred in connection with the performance of his duties, and Mr. Rutledge is entitled to use Company aircraft for such travel and for commuting and up to 12565 hours of discretionary personal use per calendar year (without carryover). The Rutledge Agreement contains a two-year non-compete provision and a two-year non-solicitation clause. Pursuant to the terms of the Rutledge Agreement, Mr. Rutledge will step down from his position as the Executive Chairman of the Company and the Board of Directors at the end of his employment term.

John BickhamRichard J. DiGeronimo

Effective as of January 1, 2021, Charter entered into an amended and restated employment agreement with John Bickham (the “Bickham Agreement”). The Bickham Agreement provides that Mr. Bickham will continue to serve as the President and Chief Operating Officer until he transitions to Vice Chairman at a time to be determined between July 1, 2021 and December 31, 2021 at the request of the CEO and will have duties commensurate with such positions. The Bickham Agreement further provides that he will devote substantially all of his business time and efforts to the business and affairs of the Company through December 31, 2021 and during the period from January 1,September 20, 2022, through December 31, 2022 (the “Transition Period”), Mr. Bickham will devote fifty percent of his business time and efforts to the business and affairs of the Company. Under the Bickham Agreement, commencing January 1, 2021, Mr. Bickham is to receive an annual base salary of at least $1,875,000 through December 31, 2021 and $937,500 during the Transition Period. Mr. Bickham is eligible to participate in the Executive Bonus Plan with a target bonus equal to 200% of base salary. Mr. Bickham is also eligible to participate in other employee benefit plans, programs and arrangements available to other senior executives. In addition, Charter must reimburse Mr. Bickham for all reasonable and necessary expenses incurred in connection with the performance of his duties, and Mr. Bickham is entitled to use Company aircraft for such travel and for up to 80 hours (40 hours during the Transition Period) of discretionary personal use per calendar year (without carryover). The Bickham Agreement contains a two-year non-compete provision and a two-year non-solicitation clause. Mr. Bickham plans to retire following the end of the term of the Bickham Agreement.

Rich DiGeronimo

Effective as of July 1, 2019, Charter and Mr. DiGeronimo entered into an amended and restated employment agreement (thewhich was amended effective as of February 22, 2023 (collectively, the “DiGeronimo Agreement”). The DiGeronimo Agreement provides that effective December 1, 2022, Mr. DiGeronimo shall bebecame employed in an executive capacity as ChiefPresident, Product and Technology Officer with such responsibilities, duties and authority as are customary for such role, at a base salary of $1,000,000$1,450,000 per year during the term, subject to annual review and, in its discretion, increase by the Compensation and Benefits Committee. Mr. DiGeronimo’s base salary increased to $1,450,000 effective September 20, 2022 in connection with his December 1, 2022 promotion to President, Product & Technology. The DiGeronimo agreementAgreement provides that he is eligible to participate in the Executive Bonus Plan with a target bonus of 160%200% of his annual base salary.salary and he received an equity grant of $10,000,000, delivered in 90% stock options and 10% RSUs, on January 17, 2023. Mr. DiGeronimo’s target bonus increased to 200% effective September 20, 2022 and he also received an equity grant of $800,000, delivered in 90% stock options and 10% RSUs, on such date in connection with his December 1, 2022 promotion to President, Product & Technology. He is also eligible to receive such other employee benefits as are generally made available to other senior executives. In addition, Charter must reimburse Mr. DiGeronimo for all reasonable and necessary expenses incurred in connection with the performance of his duties.duties and Mr. DiGeronimo is entitled to use Company aircraft for such travel and for up to 40 hours of discretionary personal use per calendar year (without carryover). The DiGeronimo Agreement has an initial term from the effective date through JulyDecember 1, 20222025 provided that the term can be extended by the Company for unlimited one-year periods. The DiGeronimo Agreement contains a two-year non-compete provision and a one-year non-solicitation clause.

 

 

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David G. Ellen

Effective as of July 1, 2016,2021, Charter entered into an amended and restated employment agreement with David G.Mr. Ellen, (thewhich was amended effective as of October 27, 2022 (collectively, the “Ellen Agreement”). The Ellen Agreement provides that Mr. Ellen shall be employed in an executive capacity as Senior Executive Vice President with the authorities, duties and responsibilities for overseeing: (i) the followingoverseeing certain business and corporate functions: Programming, Policy (in partnership with Government Affairs), Spectrum Networks (including RSNsfunctions and the local newscertain legal and sports networks), Human Resources (including Diversity and Labor Relations), Communications and Security; and (ii) the legal group (x) supporting the Programming, Policy, Spectrum Networks, Product and Labor Relations functions as well as (y) handling regulatory compliance for a term expiring on July 1, 2021.functions. The Ellen Agreement provides that Mr. Ellen will receive a base salary of $1,250,000 per year during the term, subject to annual review and, in its discretion, increase by the Compensation and Benefits Committee. Mr. Ellen is also eligible to participate in the Executive Bonus Plan with a target bonus of not less than 160% of his annual base salary. Mr. Ellen is also eligible to participate in other employee benefit plans, programs and arrangements available to other senior executives. In addition, Charter must reimburse Mr. Ellen for all reasonable and necessary expenses incurred in connection with the performance of his duties, and Mr. Ellen is entitled to use Company aircraft for such travel and for up to 30 hours of discretionary personal use per calendar year (without carryover). The Ellen Agreement contains a two-year non-compete provision and a one-year non-solicitation clause.

Christopher L. WinfreyJessica M. Fischer

Effective as of May 18, 2016,February 5, 2023, Charter and Mr. WinfreyMs. Fischer entered into an employment agreement (the “Winfrey“Fischer Agreement”). The WinfreyFischer Agreement provides that Mr. WinfreyMs. Fischer shall be employed in an executive capacity as Chief Financial Officer with such responsibilities, duties and authority as are customary for such role, including, but not limited to, overall management responsibility for Charter’s financial and accounting functions, at a base salary of $850,000$800,000 per year during the term, subject to annual review and, in its discretion, increase by the Compensation and Benefits Committee. Under the WinfreyThe Fischer Agreement heprovides that Ms. Fischer is also eligible to participate in the Executive Bonus Plan with a target bonus of not less than 150% of hisher annual base salary. Mr. Winfrey received an annual base salary increase in 2019 to $1,000,000 and an increase in his target bonus to 160% of his annual base salary. HeShe is also eligible to receive such other employee benefits as are generally made available to other senior executives. In addition, Charter must reimburse Ms. Fischer for all reasonable and necessary expenses incurred in connection with the performance of her duties. The Fischer Agreement has an initial term from the effective date through February 5, 2025 provided that the term can be extended by the Company for unlimited one-year periods. The Fischer Agreement contains a two-year non-compete provision and a one-year non-solicitation clause.

Jonathan Hargis

Effective as of May 18, 2021, Charter and Mr. WinfreyHargis entered into an employment agreement, which was amended effective as of April 1, 2022 (collectively, the “Hargis Agreement”). The Hargis Agreement provided a base salary of $700,000 per year during the term, subject to annual review and, in its discretion, increase by the Compensation and Benefits Committee. Mr. Hargis’s base salary decreased from $700,000 to $350,000 effective April 1, 2022 in connection with the amendment to his employment agreement and his transition to the role of Special Advisor to the COO, also effective as of such date. The Hargis Agreement provided that Mr. Hargis was eligible to participate in the Executive Bonus Plan with a target bonus of 150% of his annual base salary. He was also eligible to receive such other employee benefits as are generally made available to other senior executives. In addition, Charter was obligated to reimburse Mr. Hargis for all reasonable and necessary expenses incurred in connection with the performance of his duties. The WinfreyHargis Agreement has an initialhad a term from the effective date through May 18, 2021 provided thatDecember 31, 2022, the term can be extended bydate of Mr. Hargis’s retirement from the Company for unlimited one-year periods.Company. The WinfreyHargis Agreement contains a two-year non-compete provision and a one year one-year non-solicitation clause. clause following expiration of the term.

Separation and Related Arrangements

Named Executive Officers

Unless otherwise noted, the stock price used in the separation tables that follow is based on $661.55$339.10 per share, the closing price of Charter’s Class A common stock on the NASDAQ Global Select Market on December 31, 2020.30, 2022. The paragraphs that follow describe the payments that each NEO would have received assuming the applicable termination event occurred on December 31, 2020.2022. The descriptions that follow cover only information regarding benefits that are not generally available to other employees. Benefits generally available to other employees include:

 

Salary earned through date of termination;

Salary earned through date of termination;

 

Lump sum payment for COBRA coverage for the period of severance, if applicable; and

Lump sum payment for COBRA coverage; and

 

Lump sum payment of accrued and unused vacation.

Lump sum payment of accrued and unused vacation.

As used in the following sections:

 

  

Severance”: NEOs may be eligible for certain payments following the occurrence of certain termination events specified in their employment agreements. If eligible for severance: (1) Mr. RutledgeWinfrey will receive severance equal to two

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and one-half times his applicable annual base salary and target bonus; and (2) Mr. Bickham will receive severance equal to twoMs. Fischer and one-half times his applicable annual base salaryMessrs. DiGeronimo and target bonus and, in certain cases, a cash payment equal to the fair market value of a pro rata portion of his unvested performance-vesting stock option and performance-vesting restricted stock unit awards; and (3) Messrs. Ellen Winfrey and DiGeronimo will each receive severance equal to two times their applicable annual base salary and target bonus. Messrs. Rutledge and Hargis are not eligible for severance payments under any termination event.

 

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Bonus”: As used in the tables below, “Bonus” is the target bonus set forth and defined in each NEO’s employment agreement, payable in accordance with the 2020 Executive Bonus Plan but assumed at 100% performance attainment foragreement. For the purposes of these separation tables. If eligible for a bonus payment on a specific termination event: Mr. Rutledge will receive atables, amounts represent the NEO’s target bonus of 300% of his annual base salary, with such annual base salaryopportunity under the 2022 Executive Bonus Plan, prorated based on any changes to reflect the base salary increase that went into effect on October 27, 2020; Mr. Bickham will receive aNEO’s target bonus of 200% of his annual base salary; Mr. Ellen will receive a target bonus of 160% of his annual base salary; Mr. Winfrey will receive a target bonus of 160% of his annual base salary;opportunity during the year and Mr. DiGeronimo will receive a target bonus of 160% of his annual base salary.with an assumed 100% performance attainment under the Plan. See the “Base Salary and Annual Bonus” section in the Compensation Discussion and Analysis for further details of the plan.plan, including the target bonus opportunities which applied for the NEOs under the 2022 Executive Bonus Plan. See the “Summary Compensation Table” for actual 20202022 Executive Bonus Plan payouts.

 

  

Stock Options” “Restricted Stock” and “Restricted Stock Units”: includes grants made under the Stock Incentive Plans. See “Long-Term Incentives” under the Compensation Discussion & Analysis section for further details on equity incentives offered by the Company.

Termination by Charter for Cause or a Voluntary Termination by the Executive without Good Reason

Under the current employment agreements, equity award agreements and Company policies applicable to our NEOs, we do not provide any severance in the event of a termination by the Company for cause or a voluntary termination by aan NEO without good reason, each NEO would only be entitled to any bonus earned for periods ending on or before the termination date but not yet paid as of such date, including a bonus under the 2022 Executive Bonus Plan for a termination occurring on December 31, 2022. NEOs are otherwise not provided any severance and all bonus awards and unvested equity, except for grants made in or after 2020 to Mr. Rutledge, will be forfeited and cancelled effective as of the date of termination. Under Mr. Rutledge’s amended employment agreement, stock option awards granted in or after 2020 pursuant to the employment agreement and outstanding at least one year at the time of termination will pro rata vest upon a voluntary resignation without good reason and continue to vest should such resignation occur after a transition negotiation period as defined in the employment agreement; in each case, such vested stock options will remain exercisable for the original 10-year term. As of December 31, 2020, Mr. Rutledge had no awards that were eligible for pro rata or continued vesting upon a voluntary resignation without good reason. Under the long-term incentiveequity award agreements with our NEOs, vested stock options generally may be exercised for a period of time not to exceed six months from the effective date offollowing a for cause/voluntary termination, or through the optionoriginal expiration date, if sooner. The performance-vesting options granted to Mr. Bickham in 2016 provide that he may exercise the options for up to three years following a voluntary termination without good reason. “Forearlier.

“For cause” is generally defined under our NEOs’ employment agreements and applicable Company policies to include: willful breaches of material obligations, fiduciary duties, the Company’s code of conduct or other material Company policies;policies (which, in the case of Messrs. Rutledge and Winfrey, causes or should reasonably be expected to cause substantial injury to the business or reputation of the Company); acts of fraud or willful and material misrepresentations or concealments from the Company or boardthe Board of directors;Directors; misappropriation of a material amount of Company property; criminal convictions, guilty or no contest pleas with respect to felonies or any crime expected to havematerially adversely affect the Company; or admission or finding of liability for a material negative impactknowing and deliberate breach of any securities laws (which, in the case of Messrs. Rutledge and Winfrey, materially adversely affects or crimes relatedcould reasonably be expected to materially adversely affect the Company). Under our employment agreements with Ms. Fischer and Messrs. DiGeronimo, Ellen and Hargis, “for cause” also includes criminal convictions, guilty or no contest pleas with respect to fraud, embezzlement, dishonesty, breach of trust or moral turpitude; admissionillegal possession or finding of liability for knowing or deliberate breach of any securities laws; illegal possessionuse of a controlled substance;substance or excessive alcohol use, in each case in connection with executive’s duties, or otherwise on the Company’s premises or duringat a Company function; gross neglect of duty or willful misconduct related to duties; or willful or grossgrossly negligent commission of an act or willful failure to act in connection with executive’s duties which causes or is reasonably expected to cause substantial economic injury to the business reputation of the Company. Under our employment agreements with Messrs. Rutledge and Bickham, “for cause” includes the foregoing factors amended to read that breaches of material obligations and fiduciary duties, material misrepresentations and concealments and failure to adhere to Company policies must be willful and reasonably expected to cause substantial injury to the business or reputation of the Company.

For a definition of “good reason”, see the section below, titled “Termination by the Company without Cause or by the Executive for Good Reason (other than for a Change in Control)”.

    

Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock

and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

       7,181,507            7,181,507 

Christopher L. Winfrey

       2,634,932            2,634,932 

Richard J. DiGeronimo

       2,253,973            2,253,973 

David G. Ellen

       2,000,000            2,000,000 

Jessica M. Fischer

       1,050,000            1,050,000 

Jonathan Hargis

       654,452            654,452 

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(1)

No severance is payable in the event of a termination by Charter for cause or a voluntary termination by the executive without good reason.

(2)

“Bonus” is the bonus payable under the 2022 Executive Bonus Plan, which would be earned but unpaid for all NEOs upon a termination on December 31, 2022; performance attainment for such bonuses is assumed at 100% for the purposes of these separation tables. Upon any termination, all NEOs are entitled to any bonus earned for a performance period ending on or before the termination date but unpaid as of such date, and Mr. Rutledge is also entitled to a pro rata bonus in the year of termination for a voluntary termination by the executive without good reason occurring during the bonus plan year.

(3)

Upon a termination by Charter for cause, all unvested stock option grants made to our NEOs will be forfeited and cancelled. Upon a voluntary resignation without good reason, all unvested stock option grants made to our NEOs will be forfeited and cancelled with the exception of stock options granted to Mr. Rutledge in or after 2020, which will continue to vest through their original vesting date if they have been outstanding at least one year at the time of termination and will otherwise pro rata vest; in each case such stock options will remain exercisable through their original expiration date. All of Mr. Rutledge’s stock options subject to either continued or pro rata vesting were underwater based on the December 30, 2022 closing stock price of $339.10.

(4)

Upon a termination by Charter for cause or a voluntary resignation by the executive without good reason, all unvested time-vesting restricted stock unit grants made to our NEOs will be forfeited and cancelled.

Termination in Connection with Expiration of Term or by Mutual Agreement

Under the employment agreements for Messrs. Rutledge, Winfrey, DiGeronimo and Ellen, Charter may be required to make certain payments to the executive and the executive may be entitled to pro rata or continued vesting of unvested equity awards in connection with the expiration of the term of their agreements and, in the case of Mr. Ellen, upon mutual agreement between him and Charter on or before the expiration of the term of his agreement.

Mr. Rutledge’s employment terminates upon the expiration of the term of his agreement on November 30, 2023, at which time he would be entitled to a pro rata bonus for the year of termination, his stock options granted pursuant to his employment agreement would continue to vest, and such options would remain exercisable through their original expiration date. Unless otherwise renewed or extended, Mr. Winfrey’s employment will terminate immediately upon the expiration of the term of his employment agreement on December 1, 2025 and he would be entitled to a pro rata bonus for the year of termination, his stock options granted on or after September 22, 2022 and pursuant to his employment agreement would continue to vest, and such options would remain exercisable through their original expiration date. Unless otherwise renewed or extended, Mr. DiGeronimo may terminate his employment for any reason within 30 days following the expiration of the term of his employment agreement on December 1, 2025, at which time he would be entitled to a pro rata bonus for the year of termination, his stock options and restricted stock unit awards granted on or after September 22, 2022 and pursuant to his employment agreement would pro rata vest, and such options would remain exercisable until the fifth anniversary of the date of his termination, or the original expiration date, if earlier. Unless otherwise renewed or extended, upon the termination of Mr. Ellen’s employment in connection with the expiration of the term of his employment agreement on December 1, 2023 or upon mutual agreement between Mr. Ellen and the Company prior to such date, Mr. Ellen would be entitled to the same payments, pro rata vesting of unvested equity awards, and time to exercise vested stock options post-termination as set forth below for a termination by the Company without cause or by Mr. Ellen for good reason. The respective terms for Messrs. Rutledge, Winfrey, DiGeronimo and Ellen’s employment agreements all expire in or after 2023, and no payment or benefit amounts would therefore apply as of December 31, 2022, except with respect to Mr. Ellen whose employment could be terminated by mutual agreement between him and Charter prior to the expiration of the term of his employment agreement and resulting in the same payments, pro rata vesting of unvested equity awards, and time to exercise vested stock options post-termination as set forth below for a termination by the Company without cause or by Mr. Ellen for good reason.

Termination due to Death or Disability

Under the current employment agreements, equity award agreements and Company policies, as applicable, for each of our NEOs, we may be required to make certain payments to, or allow full equity vesting for, these executives or their estates or beneficiaries in the event that the executive is terminated as a result of death or “disability.” Under the equity award agreements with our NEOs, vested stock options generally may be exercised for a period of eighteen months following a termination due to death or disability, or through the original expiration date, if earlier. Pursuant to Mr. Rutledge’s employment agreement, his stock options granted in or after 2020 will remain exercisable through their original expiration date.

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An executive is deemed to have a “disability” if, due to illness or injury: the executive is unable to perform his or her duties without accommodation for a certain period of time; or the executive is considered disabled for the purposes of receiving long term disability benefits under a participating plan or policy. In the event there is a period of time during which aan NEO is not being paid annual base salary and not receiving long-term disability insurance payments, the executive will receive interim payments equal to such unpaid disability insurance payments until commencement of disability insurance payments.

 

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Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock
and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

       6,270,492    12,557,467        18,827,958 

John Bickham

   110,971,176    3,000,000    2,879,918        116,851,094 

Rich DiGeronimo

       1,600,000    22,925,196    1,681,660    26,206,856 

David Ellen

       2,000,000    6,946,169    969,171    9,915,340 

Christopher L. Winfrey

       1,600,000    8,335,403    1,163,005    11,098,408 
    

Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock

and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

       7,181,507            7,181,507 

Christopher L. Winfrey

       2,634,932        975,591    3,610,523 

Richard J. DiGeronimo

       2,253,973        1,069,182    3,323,155 

David G. Ellen

       2,000,000        1,096,649    3,096,649 

Jessica M. Fischer

       1,050,000        464,228    1,514,228 

Jonathan Hargis

       654,452        680,235    1,334,687 

 

(1)

No severance is payable in the event of a termination based on death or disability of any NEO other than Mr. Bickham who, pursuant to the terms of his employment agreement, is entitled to a cash payout equal to: (i) a pro rata amount of unvested performance-vesting stock options for which the applicable performance criteria have been achieved as of the termination date, multiplied by (ii) the average of the high and low stock prices on the termination date less the exercise price of the applicable stock options. For the purposes of calculating the amount set forth in the table, the Company assumed a value of $658.82, the average of the high and low stock prices of the Company’s Class A common stock on December 31, 2020. Mr. Bickham is also entitled to a comparable cash payout related to his unvested performance-vesting restricted stock unit awards.NEO.

 

(2)

Each NEO or his or her estate or beneficiaries will be entitled to receive a pro rata bonus for the performance period ending prior to the date of a death or disability termination event. “Bonus”“Bonus” is the target bonus set forth and defined in each NEO’s employment agreement orpayable under the 20202022 Executive Bonus Plan, as ofwhich would be earned but unpaid for all NEOs upon a termination on December 31, 2020 payable in accordance with the 2020 Executive Bonus Plan but2022; performance attainment for such bonuses is assumed at 100% performance attainment for the purposes of these separation tables. Upon any termination, all NEOs are entitled to any bonus earned for a performance period ending on or before the termination date but unpaid as of such date. Messrs. Rutledge, Winfrey and Ellen are also entitled to a pro rata bonus in the year of termination for a termination due to death or disability occurring during the bonus plan year.

 

(3)

All unvested time-vesting option grants made to our NEOs are subject to full vesting of all unvested equity in the event of a termination due to death or disability. AsAll stock options subject to performance-vestingsuch full vesting were underwater based on the December 30, 2022 closing stock option awards granted in 2016, allprice of the unvested awards would be cancelled in the event of such a termination on December 31, 2020.$339.10.

 

(4)

All unvested time-vesting restricted stock unit grants made to our NEOs are subject to full vesting of all unvested equity in the event of a termination due to death or disability. As to performance-vesting restricted stock unit awards granted in 2016, all of the awards would be cancelled in the event of such a termination on December 31, 2020.

Termination due to Retirement by the Executive

In the event that an NEO terminates his or her employment with Charter due to retirement (i) no severance or bonus amounts are payable, (ii) time-vesting stock option grants are subject to pro rata vesting after the first anniversary of the respective award’s grant date, and (iii) time-vesting restricted stock unit grants are subject to pro rata vesting after the first anniversary of the respective award’s grant date. As to performance-vesting option awards and restricted stock unit awards granted in 2016, all of the unvested awards would be cancelled in the event of an executive’s retirement on December 31, 2020.

Charter generally defines “retirement” eligibility in its long-term incentive plan documents as the employee’s age (at least 55) plus years of service equal to 70.70 (with a minimum of 5 years of service required for grants made in or after 2021). Of the NEOs, only Mr.Messrs. Rutledge and Mr. Bickham meetHargis met the “rule of 70” retirement qualification however, neither of them had any time-vesting awards as of December 31, 2020 that would qualify for pro rata vesting. Noneand none of the other NEOs were eligible for retirement at December 31, 2020.2022. Under the current employment agreements, equity award agreements and Company policies applicable to our NEOs, in the event that an NEO terminates his or her employment with Charter due to retirement (i) no severance amounts are payable, (ii) for grants made prior to 2021, unvested time-vesting stock option and restricted stock unit grants are subject to pro rata vesting after the first anniversary of the respective award’s grant date and vested stock options remain exercisable for three years following termination or through the original expiration date, if earlier, and (iii) for grants made in or after 2021, unvested time-vesting stock option and restricted stock unit grants are subject to continued vesting through the original vesting date if retirement occurs at or above age 60 and are otherwise subject to pro rata vesting after the first anniversary of the respective award’s grant date. For a retirement at or above age 60, stock option awards remain exercisable for five years after vesting or through the original expiration date, if earlier, and for a retirement at or above age 55 but below age 60, stock option awards remain exercisable for three years following retirement or through the original expiration date, if earlier. Irrespective of whether they are retirement eligible, all NEOs would be entitled to any bonus earned for periods ending on or before the termination date but not yet paid as of such date, including for a termination occurring as of December 31, 2022. Mr. Hargis was also eligible for a pro rata bonus upon his retirement at any time during the 2022 calendar year.

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Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock

and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

       7,181,507            7,181,507 

Christopher L. Winfrey

       2,634,932            2,634,932 

Richard J. DiGeronimo

       2,253,973            2,253,973 

David G. Ellen

       2,000,000            2,000,000 

Jessica M. Fischer

       1,050,000            1,050,000 

Jonathan Hargis

       654,452        676,155    1,330,607 

(1)

No severance is payable in the event of the retirement of any NEO.

(2)

“Bonus” is the bonus payable under the 2022 Executive Bonus Plan, which would be earned but unpaid for all NEOs upon a termination on December 31, 2022; performance attainment for such bonuses is assumed at 100% for the purposes of these separation tables. All NEOs are entitled to any bonus earned for a performance period ending on or before the termination date but unpaid as of such date, and Mr. Rutledge is also entitled to a pro rata bonus in the year of termination for a voluntary termination by the executive without good reason occurring during the bonus plan year.

(3)

Mr. Rutledge’s employment agreement specifies the treatment of his unvested stock options upon termination and does not provide for any vesting treatment specific to retirement. Instead, were Mr. Rutledge to retire as of December 31, 2022, his stock options granted on November 3, 2020 and January 15, 2021 would continue to vest through their original vesting date and his stock options granted on January 18, 2022 would pro rata vest, as described further in the section above regarding a voluntary termination by the executive without good reason. Upon Mr. Hargis’s retirement on December 31, 2022, his January 15, 2020 stock options pro rata vested and his stock options granted on January 15, 2021, July 15, 2021, and January 18, 2022 remained outstanding and will continue to vest through their original respective vesting dates. All of Messrs. Rutledge and Hargis’s stock options subject to pro rata or continued vesting were underwater based on the December 30, 2022 closing stock price of $339.10.

(4)

Upon Mr. Hargis’s retirement December 31, 2022, his January 15, 2020 RSUs pro rata vested and his RSUs granted on January 15, 2021, July 15, 2021, and January 18, 2022 remained outstanding and will continue to vest through their original respective vesting dates.

Termination by Charter Without Cause or by the Executive for Good Reason (other than for a Change in Control)

In the event that Charter terminates aan NEO’s employment without cause or the executive terminates his or her employment with Charter for good reason other than in connection with a change in control, Charter may be required to make certain payments to the executive and the executive may be entitled to pro rata or continued vesting of unvested equity awards granted to the executive. Under the equity award agreements with our NEOs, vested stock options generally may be exercised for a period of six months following a for cause/voluntary termination, or through the original expiration date, if earlier. Pursuant to Mr. Rutledge’s employment agreement, his stock options granted in or after 2020 will remain exercisable through their original expiration date.

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For a definition of a “for cause,” see the prior section titled “Termination by Charter for Cause or a Voluntary Termination by the Executive without Good Reason.”

AAn NEO may generally only terminate his or her employment for “good reason” following thirty (30) days written notice to the Company of his or her intent to terminate, or, in certain circumstances, advance notice to the Company detailing the “good reason” and giving the Company an opportunity to cure prior to termination. As the term is used in the employment agreements of our NEOs, “good reason” includes: a reduction in base salary or bonus; a material reductionadverse change or diminution in title, authority, duties, or responsibilities of the executive or of the executive’s reporting structure;executive; a material failure by the Company to comply with provisions of the executive’s employment agreement including paying compensation when due anddue; changing the location of the executive’s primary workplace;workplace by more than 50 miles (for Ms. Fischer and Messrs. DiGeronimo, Ellen, Hargis and Winfrey); any change in reporting structure such that the executive no longer reports directly to the CEO (for Mr. Ellen) or the Board (for Messrs.

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Rutledge and Winfrey); any failure by a successor company to assume the executive’s employment agreement following a change in control; or, for Mr. Rutledge, a change in control.

For a definition of “change in control”, see the section immediately following titled “Termination within 30 days before or 1312 months after Change in Control for without Cause or for Good Reason.”

 

    

Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock
and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

   25,000,000    6,270,492    248,251,664    39,879,557    319,401,713 

John Bickham

   122,221,176    3,000,000    2,879,918        128,101,094 

Rich DiGeronimo

   5,200,000    1,600,000    15,791,902    1,056,756    23,648,658 

David Ellen

   6,500,000    2,000,000    2,224,549    310,382    11,034,931 

Christopher L. Winfrey

   5,200,000    1,600,000    2,669,458    372,459    9,841,917 
    

Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock

and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

       7,181,507            7,181,507 

Christopher L. Winfrey

   14,875,000    2,634,932        826,757    18,336,689 

Richard J. DiGeronimo

   8,700,000    2,253,973        574,817    11,528,790 

David G. Ellen

   6,500,000    2,000,000        773,121    9,273,121 

Jessica M. Fischer

   3,500,000    1,050,000        263,611    4,813,611 

Jonathan Hargis

       654,452        676,155    1,330,607 

 

(1)

AllExcept for Messrs. Rutledge and Hargis, all NEOs are entitled to severance in accordance with the terms and conditions of each executive’s respective employment agreement with the Company or the Company’s policies, as applicable. Pursuant to the terms of Mr. Bickham’s employment agreement, he is also entitled to a cash payout equal to: (i) a pro rata amount of unvested performance-vesting stock options for which the applicable performance criteria have been achieved as of the termination date, multiplied by (ii) the average of the high and low stock prices on the termination date less the exercise price of the applicable stock options. For the purposes of calculating the amount set forth in the table, the Company assumed a value of $658.82, the average of the high and low stock prices of the Company’s Class A common stock on December 31, 2020. Mr. Bickham is also entitled to a comparable cash payout related to his unvested performance-vesting restricted stock unit awards.

 

(2)

All“Bonus” is the bonus payable under the 2022 Executive Bonus Plan, which would be earned but unpaid for all NEOs will beupon any termination on December 31, 2022; performance attainment for such bonuses is assumed at 100% for the purposes of these separation tables. Upon any termination, all NEOs are entitled to any bonus earned for a performance period ending on or before the termination date but unpaid as of such date. Messrs. Rutledge, Winfrey and Ellen are also entitled to a pro rata bonus previously earnedin the year of termination for the performance period ending prior to the date ofa without cause/good reason termination. “Bonus” is the target bonus set forth and defined in each NEO’s employment agreement as of December 31, 2020 and payable in accordance with the 2020 Executive Bonus Plan but assumed at 100% performance attainment for the purposes of these separation tables.

 

(3)

Except for Messrs.Mr. Rutledge, and Bickham, all unvested time-vesting stock option grants made to our NEOs are subject to pro rata vesting of all unvested equity in the event of a without cause / cause/good reason termination. Time-vestingUnvested time-vesting stock options granted to Messrs.Mr. Rutledge and Bickhamin or after 2020 are subject to continued vesting in the event of a without cause / cause/good reason termination. As to performance-vesting option awards granted in 2016, all of the awards would be cancelled in the event of a termination on December 31, 2020 except for Mr. Rutledge, who receives continued vesting of these awards for a two-year period following such a termination, provided that performance targets are met during such two-year period. The amount reflected in the table for Mr. Rutledge includes, as of December 31, 2020, the value of performance-vesting option awards that are scheduled to vest within the following two-year period and for which the applicable performance criteria have been achieved.

 

(4)

All unvested time-vesting restricted stock and restricted stock unit grants made to our NEOs are subject to pro rata vesting of all unvested equity in the event of a without cause / cause/good reason termination. As to performance-vesting restricted stock unit awards granted in 2016, all of the awards would be cancelled in the event of a termination on December 31, 2020 except for Mr. Rutledge, who receives continued vesting of these awards for a two-year period following such a termination, provided that performance targets are met during such two-year period. The amount reflected in the table for Mr. Rutledge includes, as of December 31, 2020, the value of performance-vesting restricted stock unit awards that are scheduled to vest within the following two-year period and for which the applicable performance criteria have been achieved.

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Termination within 30 days before or 12 months after Change in Control without Cause or for Good Reason

Under the employment agreements, equity award agreements and Company policies, as applicable, for each of our NEOs, we may be required to make payments to, or allow pro rata or full vesting of unvested equity awards for, these executives in the event that, within 30 days before, or 12 months following, the occurrence of a change in control, Charter or any of its subsidiaries terminateterminates the executive’s employment without cause or he or she terminates his or her employment with Charter and its subsidiaries for good reason.

A “change in control” is defined to include: any person or entity acquires beneficial ownership of 35% or more of our outstanding common stock or combined voting power over our outstanding voting securities; the incumbent directors (as defined in the employment agreements) cease to constitute a majority of the boardBoard of directors;Directors; the completion of certain corporate transactions including a reorganization or merger subject to certain exceptions; the complete liquidation or dissolution of the Company; and the sale or disposition of all or substantially all of the assets of the Company.

 

    

Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock
and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

   25,000,000    6,270,492    248,251,664    39,879,557    319,401,713 

John Bickham

   11,250,000    3,000,000    108,093,760    17,724,909    140,068,669 

Rich DiGeronimo

   5,200,000    1,600,000    22,925,196    1,681,660    31,406,856 

David Ellen

   6,500,000    2,000,000    66,664,397    10,940,052    86,104,449 

Christopher L. Winfrey

   5,200,000    1,600,000    81,324,348    13,348,756    101,473,104 

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Severance

($)(1)

   Bonus ($)(2)   

Stock Options

($)(3)

   

Restricted Stock

and Restricted

Stock Units

($)(4)

   Total ($) 

Thomas M. Rutledge

       7,181,507            7,181,507 

Christopher L. Winfrey

   14,875,000    2,634,932        975,591    18,485,523 

Richard J. DiGeronimo

   8,700,000    2,253,973        1,069,182    12,023,155 

David G. Ellen

   6,500,000    2,000,000        1,096,649    9,596,649 

Jessica M. Fischer

   3,500,000    1,050,000        464,228    5,014,228 

Jonathan Hargis

       654,452        680,235    1,334,687 

 

(1)

AllExcept for Messrs. Rutledge and Hargis, all NEOs are entitled to severance in accordance with the terms and conditions of each executive’s respective employment agreement with the Company or the Company’s policies, as applicable.

 

(2)

All“Bonus” is the bonus payable under the 2022 Executive Bonus Plan, which would be earned but unpaid for all NEOs will beupon any termination on December 31, 2022; performance attainment for such bonuses is assumed at 100% for the purposes of these separation tables. Upon any termination, all NEOs are entitled to any bonus earned for a performance period ending on or before the termination date but unpaid as of such date. Messrs. Rutledge, Winfrey and Ellen are also entitled to a pro rata bonus previously earnedin the year of termination for the performance period ending prior to the date ofa without cause/good reason termination. “Bonus” is the target bonus set forth and defined in each Named Executive Officer’s employment agreement as of December 31, 2020 payable in accordance with the 2020 Executive Bonus Plan but assumed at 100% performance attainment for the purposes of these separation tables.

 

(3)

AllExcept for Mr. Rutledge, all unvested time-vesting stock option grants made to our NEOs are subject to full accelerated vesting of all unvested equity in the event of a change in control termination. AsUnvested time-vesting stock options granted to the performance-vesting stock option awards granted in 2016,Mr. Rutledge are subject to continued vesting in the event of a change in control, all eligible unvested performance-vesting stock options will vest if the performance targets have been achieved based upon the highest price paid per share in the change in control transaction. Unless otherwise determined by the Company’s Compensation and Benefits Committee at the time of such change in control, all non-eligible stock options and all unvested eligible stock options that do not vest in accordance with the award agreement in connection with a change in control shall be cancelled and forfeited.any without cause/good reason termination. For the purposes of calculating the amounts set forth in the table above, the Company has assumed that the highest price paid per share in the change in control transaction was $661.55,$339.10, the closing price of the Company’s Class A common stock on December 31, 2020.30, 2022.

 

(4)

All unvested time-vesting restricted stock unit grants made to our NEOs are subject to full accelerated vesting of all unvested equity in the event of a change in control termination. As to performance-vesting restricted stock units, in the event of a change in control, all eligible unvested performance-vesting restricted stock units will vest based upon the highest price paid per share in the change in control transaction. For the purposes of calculating the amount set forth in the table above, the Company has assumed that the highest price paid per share in the change in control transaction was $661.55,$339.10, the closing price of the Company’s Class A common stock on December 31, 2020.30, 2022.

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Limitation of Directors’ Liability and Indemnification Matters

Our Certificate of Incorporation limits the liability of directors to the maximum extent permitted by Delaware law. The Delaware General Corporation Law provides that a corporation may eliminate or limit the personal liability of a director for monetary damages for breach of fiduciary duty as a director, except for liability for:

 

 (1)

any breach of the director’s duty of loyalty to the corporation and its stockholders;

 

 (2)

acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;

 

 (3)

unlawful payments of dividends or unlawful stock purchases or redemptions; or

 

 (4)

any transaction from which the director derived an improper personal benefit.

Our Bylaws provide that we will indemnify all persons whom we may indemnify pursuant thereto to the maximum extent permitted by law from and against any claims, damages, liabilities, losses, costs or expenses incurred in connection with or arising out of the performance by them of their duties for us or our subsidiaries.

We have also entered into indemnification agreements that require us to indemnify each of our directors and executive officers to the fullest extent permitted by law for any claims made against each of these persons because he or she is, was or may be deemed to be a stockholder, director, officer, employee, controlling person, agent or fiduciary of Charter or any of our subsidiaries. We are obligated to pay the expenses of these persons in connection with any claims that are subject to the agreement.

 

 

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Certain Beneficial Owners of Charter Class A Common Stock

The following table sets forth information as of February 26, 202124, 2023 regarding the beneficial ownership of Charter Class A common stock by:

 

each holder of more than 5% of outstanding shares Charter Class A common stock;

each holder of more than 5% of outstanding shares Charter Class A common stock;

 

each Charter director and named executive officer; and

each Charter director and named executive officer; and

 

all Charter directors and executive officers as a group.

all Charter directors and executive officers as a group.

 

    Shares Beneficially Owned(1) 

Name

  Number   Percent of Class 

5% Stockholders:

    

Liberty Broadband Corporation(2)

    12300 Liberty Boulevard

    Englewood, CO 80112

   59,465,776    27.62

Advance/Newhouse Partnership(3)

    One World Trade Center, 44th Floor

    New York, NY 10007

   27,163,116    12.62

The Vanguard Group, Inc.(4)

    100 Vanguard Blvd.

    Malvern, PA 19355

   10,812,887    5.02

Directors and Executive Officers:

    

W. Lance Conn(5)

   4,908    * 

Kim C. Goodman(6)

   3,313    * 

Craig A. Jacobson(7)

   10,278    * 

Gregory B. Maffei(8)

   4,304    * 

John D. Markley, Jr.(9)

   14,343    * 

David C. Merritt(10)

   9,632    * 

James E. Meyer(11)

   1,333    * 

Steven A. Miron(12)

   5,569    * 

Balan Nair(13)

   4,948    * 

Michael Newhouse(14)

   2,549    * 

Mauricio Ramos(15)

   4,331    * 

Thomas M. Rutledge(16)

   1,668,532    * 

Eric L. Zinterhofer(17)

   18,063    * 

John Bickham(18)

   127,578    * 

David G. Ellen(19)

   169,747    * 

Christopher L. Winfrey(20)

   602,778    * 

Rich DiGeronimo(21)

   28,126    * 

Richard R. Dykhouse(22)

   123,296    * 

Jonathan Hargis

   8,542    * 

Kevin Howard(23)

   23,075    * 

All executive officers and directors as a group (20 persons) (24)

   2,835,245    1
    Shares Beneficially Owned(1) 

Name

  Number   Percent of Class 

5% Stockholders:

    

Liberty Broadband Corporation(2)

    12300 Liberty Boulevard

    Englewood, CO 80112

   47,099,789    27.85

Advance/Newhouse Partnership(3)

    One World Trade Center, 44th Floor

    New York, NY 10007

   21,105,370    12.48

The Vanguard Group(4)

    100 Vanguard Blvd.

    Malvern, PA 19355

   8,595,171    5.08

Dodge & Cox(5)

    555 California Street, 40th Floor

    San Francisco, CA 94104

   8,471,513    5.01

Directors and Executive Officers:

    

W. Lance Conn(6)

   5,587    * 

Kim C. Goodman(7)

   4,417    * 

Craig A. Jacobson(8)

   11,382    * 

Gregory B. Maffei(9)

   5,408    * 

John D. Markley, Jr.(10)

   15,022    * 

David C. Merritt(11)

   9,311    * 

James E. Meyer(12)

   2,012    * 

Steven A. Miron(13)

   9,173    * 

Balan Nair(14)

   6,052    * 

Michael A. Newhouse(15)

   3,228    * 

Mauricio Ramos(16)

   5,252    * 

Thomas M. Rutledge(17)

   2,394,684    1.42

Eric L. Zinterhofer(18)

   46,901    * 

Christopher L. Winfrey(19)

   837,302    * 

Richard J. DiGeronimo(20)

   87,794    * 

David G. Ellen(21)

   259,750    * 

Jessica M. Fischer(22)

   10,008    * 

Jonathan Hargis(23)

   30,920    * 

All executive officers and directors as a group (19 persons) (24)

   3,919,401    2.32

 

*

less than 1%

 

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(1)

Beneficial ownership is determined in accordance with the rules and regulations of the SEC. These rules generally provide that a person is the beneficial owner of securities if such person has or shares the power to vote or direct the voting

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thereof, or to dispose or direct the disposition thereof or has the right to acquire such powers within 60 days. Shares shown in the table above include shares held in the beneficial owner’s name or jointly with others, or in the name of a bank, nominee or trustee for the beneficial owner’s account. Common stock subject to options that are currently exercisable or exercisable within 60 days of February 26, 202124, 2023 are deemed to be outstanding and beneficially owned by the person holding the options. These shares, however, are not deemed outstanding for the purposes of computing the percentage ownership of any other person. Percentage of beneficial ownership is based on 215,273,098169,115,655 shares of Class A common stock outstanding as of February 26, 2021,24, 2023, including Charter Communications Holdings, LLC (“Charter Holdings”) common and preferred units on an as-if-convertedas-if-exchanged basis. Each holder of Class A common stock is entitled to one vote per share. Except as disclosed in the footnotes to this table, we believe that each stockholder identified in the table possesses sole voting and investment power over all shares of common stock shown as beneficially owned by the stockholder. Unless otherwise indicated in the table or footnotes below, the address for each beneficial owner is 400 Atlantic Street,Washington Blvd., Stamford, CT 06901.06902. Each share of Class A common stock is entitled to one vote.

 

(2)

Based on a Schedule 13D/A, dated December 18, 2020February 23, 2021 and filed December 23, 2020February 24, 2021 and Form 4s filed by Liberty Broadband.Broadband on March 16, 2021, April 15, 2021, May 17, 2021, June 15, 2021, July 16, 2021, August 16, 2021, September 16, 2021, October 18, 2021, November 16, 2021, December 15, 2021, January 18, 2022, March 15, 2022, April 15, 2022, May 16, 2022, June 15, 2022, July 18, 2022, August 15, 2022, September 16, 2022, October 18, 2022, November 16, 2022, December 15, 2022 and January 18, 2023. For information on Liberty Broadband’s designees to Charter’s boardBoard of directorsDirectors and the Stockholders Agreement, see “Governance Impacts of TWC and Bright House Transactions”Under the Stockholders Agreement” above and “Certain Relationships and Related Transactions” below. Of the shares reported in the Schedule 13D/A, Liberty Broadband reported that it had sole voting and dispositive power over 59,465,776 shares. The shared voting and dispositive power with Advance/Newhouse Partnership (“A/N”) has been adjusted to zero shares on an as-converted and as-exchanged basis pursuant to the terms of the proxy grantedForm 4s filed by A/N to Liberty Broadband ason (i) March 16, 2021 reported that Liberty Broadband has 25.01% voting interest without any vote coming from the A/N proxy.sold 834,576 shares of Class A Common Stock to Charter on March 15, 2021; (ii) April 15, 2021 reported that Liberty Broadband sold 735,209 shares of Class A Common Stock to Charter on April 15, 2021; (iii) May 17, 2021 reported that Liberty Broadband sold 569,514 shares of Class A Common Stock to Charter on May 17, 2021; (iv) June 15, 2021 reported that Liberty Broadband sold 622,309 shares of Class A Common Stock to Charter on June 15, 2021; (v) July 16, 2021 reported that Liberty Broadband sold 404,158 shares of Class A Common Stock to Charter on July 16, 2021; (vi) August 16, 2021 reported that Liberty Broadband sold 344,239 shares of Class A Common Stock to Charter on August 16, 2021; (vii) September 16, 2021 reported that Liberty Broadband sold 452,150 shares of Class A Common Stock to Charter on September 16, 2021; (viii) October 18, 2021 reported that Liberty Broadband sold 724,555 shares of Class A Common Stock to Charter on October 18, 2021; (ix) November 16, 2021 reported that Liberty Broadband sold 621,437 shares of Class A Common Stock to Charter on November 16, 2021; (x) December 15, 2021 reported that Liberty Broadband sold 769,517 shares of Class A Common Stock to Charter on December 15, 2021; (xi) January 18, 2022 reported that Liberty Broadband sold 535,092 shares of Class A Common Stock to Charter on January 18, 2022; (xii) March 15, 2022 reported that Liberty Broadband sold 435,149 shares of Class A Common Stock to Charter on March 15, 2022; (xiii) April 15, 2022 reported that Liberty Broadband sold 863,719 shares of Class A Common Stock to Charter on April 15, 2022; (xiv) May 16, 2022 reported that Liberty Broadband sold 708,454 shares of Class A Common Stock to Charter on May 16, 2022; (xv) June 15, 2022 reported that Liberty Broadband sold 685,270 shares of Class A Common Stock to Charter on June 15, 2022; (xvi) July 18, 2022 reported that Liberty Broadband sold 783,807 shares of Class A Common Stock to Charter on July 18, 2022; (xvii) August 15, 2022 reported that Liberty Broadband sold 459,381 shares of Class A Common Stock to Charter on August 15, 2022; (xviii) September 16, 2022 reported that Liberty Broadband sold 481,352 shares of Class A Common Stock to Charter on September 16, 2022; (xix) October 18, 2022 reported that Liberty Broadband sold 468,388 shares of Class A Common Stock to Charter on October 18, 2022; (xx) November 16, 2022 reported that Liberty Broadband sold 580,093 shares of Class A Common Stock to Charter on November 16, 2022; (xxi) December 15, 2022 reported that Liberty Broadband sold 167,469 shares of Class A Common Stock to Charter on December 15, 2022; and (xxii) January 18, 2023 reported that Liberty Broadband sold 120,149 shares of Class A Common Stock to Charter on January 18, 2023. John C. Malone, Chairman of the Board of Directors of Liberty Broadband and a director emeritus of Charter, may be deemed to have voting and dispositive control, pursuant to Rule 13d-3(a), over the shares of Charter owned by Liberty Broadband as a result of the positions he holds with Liberty Broadband as well as his control of approximately 49%49.0% of the voting power of Liberty Broadband, among other factors. Mr. Malone, however, disclaims beneficial ownership of any Charter shares owned by Liberty Broadband on the basis that he is not, individually, a party to any agreement, arrangement or understanding relating to the voting or disposition of any such shares. Decisions with respect to the voting or disposition of any Charter shares owned by Liberty Broadband are made by Liberty Broadband’s boardBoard of directors.Directors.

 

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(3)

Based on a Schedule 13D/A, Amendment No. 6,12, dated February 26, 2021March 1, 2022 and filed on March 2, 20213, 2022 and Form 4s filed March 7, 2022, April 7, 2022, May 13, 2022, June 8, 2022, July 8, 2022, August 5, 2022, September 9, 2022, October 5, 2022, November 4, 2022, December 5, 2022, January 6, 2023 and February 3, 2023 by A/N, Newhouse Broadcasting Corporation (“NB”), Advance Publications, Inc. (“AP”), Newhouse Family Holdings, L.P. (“NF”) and Advance Long-Term Management Trust (“ALM”) and a Form 4 filed by A/N on February 8, 2021.. For information on A/N’s designees to Charter’s boardBoard of directorsDirectors and the Stockholders Agreement, see “Governance Impacts of TWC and Bright House Transactions”Under the Stockholders Agreement” above and “Certain Relationships and Related Transactions” below. The 13D/A, Amendment No. 6,12, reports as follows: A/N, NB, AP, NF and ALM reported sole voting and dispositive power over all 27,163,11624,023,719 of the reported shares. The 13D/A, Amendment No. 6,12, reported that the shares reported as beneficially owned represented 27,163,11624,023,719 shares of Class A Common Stock (including Class B Common Units and Convertible Preferred Units on an as-converted, as-exchanged basis). The Form 44s filed by A/N, NB, AP, NF and ALM on (i) March 7, 2022 reported that A/N, NB, AP, NF and ALM sold 224,879196,575 Class B Common Units to Charter on March 3, 2022; (ii) April 7, 2022 reported that A/N, NB, AP, NF and ALM sold 393,995 Class B Common Units to Charter on April 5, 2022; (iii) May 13, 2022 reported that A/N, NB, AP, NF and ALM sold 325,947 Class B Common Units to Charter on May 11, 2022; (iv) June 8, 2022 reported that A/N, NB, AP, NF and ALM sold 343,391 Class B Common Units to Charter on June 6, 2022; (v) July 8, 2022 reported that A/N, NB, AP, NF and ALM sold 373,547 Class B Common Units to Charter on July 6, 2022; (vi) August 5, 2022 reported that A/N, NB, AP, NF and ALM sold 225,537 Class B Common Units to Charter on August 3, 2022; (vii) September 9, 2022 reported that A/N, NB, AP, NF and ALM sold 237,571 Class B Common Units to Charter on September 6, 2022; (viii) October 5, 2022 reported that A/N, NB, AP, NF and ALM sold 264,008 Class B Common Units to Charter on October 5, 2022; (ix) November 4, 2022 reported that A/N, NB, AP, NF and ALM sold 235,892 Class B Common Units to Charter on November 4, 2022; (x) December 5, 2022 reported that A/N, NB, AP, NF and ALM sold 114,525 Class B Common Units to Charter on December 5, 2022; (xi) January 6, 2023 reported that A/N, NB, AP, NF and ALM sold 76,308 Class B Common Units to Charter on January 5, 2023; and (xii) February 3, 2023 reported that A/N, NB, AP, NF and ALM sold 131,053 Class B Common Units to Charter on February 8, 2021.3, 2023.

 

(4)

Based on a Schedule 13G/A filed by The Vanguard Group Inc. on February 10, 2021.9, 2023.

 

(5)

Includes 356 shares of restricted stock that are not yet vested but eligible to be voted.Based on a Schedule 13G filed by Dodge & Cox on February 14, 2023.

 

(6)

Includes 593404 shares of restricted stock that are not yet vested but eligible to be voted.

 

(7)

Includes 593646 shares of restricted stock that are not yet vested but eligible to be voted.

 

(8)

Includes 646 shares of restricted stock that are not yet vested but eligible to be voted.

(9)

Includes 646 shares of restricted stock for Mr. Maffei that are not yet vested but eligible to be voted. Mr. Maffei is the President and Chief Executive Officer of Liberty Broadband. Liberty Broadband beneficially owns 27.62%27.85% of the outstanding shares of Charter Class A common stock. Mr. Maffei expressly disclaims beneficial ownership of any shares owned by Liberty Broadband. Includes 593 shares of restricted stock for Mr. Maffei that are not yet vested but eligible to be voted.

 

(9)(10)

Includes 12,83613,871 shares held jointly with his spouse, 1,151 shares held by the John Markley Family Trust and 356404 shares of restricted stock that are not yet vested but eligible to be voted. Mr. Markley’s shares are pledged as collateral security for a line of credit.

 

(10)(11)

Includes 1,5671,198 shares held by the Merritt Family Trust, 7,709 shares held in the David C. Merritt IRA and 356 shares of restricted stock that are not yet vested but eligible to be voted.

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(11)

Includes 356404 shares of restricted stock that are not yet vested but eligible to be voted.

 

(12)

Includes 4,976 shares held jointly with his spouse and 593404 shares of restricted stock that are not yet vested but eligible to be voted.

 

(13)

Includes 5936,027 shares held jointly with his spouse and 646 shares of restricted stock that are not yet vested but eligible to be voted.

 

(14)

Includes 356646 shares of restricted stock that are not yet vested but eligible to be voted.

 

(15)

Includes 356404 shares of restricted stock that are not yet vested but eligible to be voted.

 

(16)

Includes 1,369,133 options that are vested and exercisable. Also includes (i) 90,167 shares held in 2019 GRAT UA; and (ii) 150,000 shares held in 2020 GRAT.

(17)

Includes 891646 shares of restricted stock that are not yet vested but eligible to be voted.

 

(18)(17)

Includes 96,448(i) 210,958 shares held in Family Foundation, (ii) 1,627,560 options that are vested and exercisable.exercisable and (iii) 284,093 options that are vested and exercisable and held in the 2022 GRAT I. Also includes (a) 17,493 shares held by the GST Exempt Trust FBO TP Rutledge, (b) 17,493 shares held by the GST Exempt Trust FBO A Alonso, (c) 35,971 shares held by the Non-Exempt Trust FBO TP Rutledge and (d) 35,971 shares held by the Non-Exempt Trust FBO A Alonso (the trusts named in (a) through (d), collectively, the “Children’s Trusts”). The Children’s Trusts are irrevocable trusts for the benefit of Mr. Rutledge’s adult children. Mr. Rutledge’s spouse is trustee of the Children’s Trusts. Mr. Rutledge is not a beneficiary of the Children’s Trusts and disclaims beneficial ownership of the shares held by the Children’s Trusts.

 

(19)(18)

Includes 164,370 options949 shares of restricted stock that are not yet vested and exercisable.but eligible to be voted.

 

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(20)(19)

Includes 426,625 options that are vested and exercisable. Also includes (i) 20,674 shares beneficially held by Mr. Winfrey and owned by Atalaya Management, LLC which is 100% owned by The Christopher Lawrence Winfrey Revocable Trust, a revocable trust pursuant to which Mr. Winfrey is the grantor and beneficiary with the power to revoke the trust (the “Winfrey Revocable Trust”); (ii) 37,10750,103 shares held in the Winfrey Revocable Trust; (iii) 82,518 shares held in the Winfrey Dynasty Trust; (iii)(iv) 34,909 shares held in the Yeniley Lorenzo Winfrey Irrevocable Trust; and (iv)(v) 945 shares held in the Yeniley Lorenzo Winfrey Revocable Trust. Also includes 648,153 options that are vested and exercisable. The 20,674 shares owned by Atalaya Management, LLC, the 37,10750,103 shares held by the Winfrey Revocable Trust and the 945 shares held in the Yeniley Lorenzo Revocable Trust are pledged as security for an undrawna margin loan.loan with a balance of $44,000.

(20)

Includes 82,312 options that are vested and exercisable.

 

(21)

Includes 23,620246,465 options that are vested and exercisable.

 

(22)

Includes 116,9139,054 options that are vested and exercisable.

 

(23)

Includes 19,05527,879 options that are vested and exercisable.

 

(24)

Includes options and restricted stock units that are exercisable or eligible to become vested within sixty (60) days of February 26, 2021, and the shares of Charter Class A common stock beneficially owned described in footnotes (5) through (23).24, 2023.

 

 

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Certain Relationships and Related Transactions

We maintain written policies and procedures covering related party transactions. The Audit Committee reviews the material facts of related party transactions.Related Party Transactions (as defined below). Management has various procedures in place, e.g., our Code of Conduct, which requires annual certifications from employees that are designed to identify potential related party transactions. Management brings those to the Audit Committee for review as appropriate. Our Related Party Transaction Policy provides that a “Related Party Transaction” is any transaction, arrangement or relationship or series of similar transactions, arrangements or relationships (including any indebtedness or guarantee of indebtedness) in which: (1) the aggregate amount involved will or may be expected to exceed $120,000 in any calendar year; (2) the Company is a participant; and (3) any Related Party has or will have a direct or indirect interest (other than solely as a result of being a director or a less than 10 percent beneficial owner of another entity). A “Related Party” is any person: (a) who is or was (since the beginning of the last fiscal year for which the Company has filed a Form 10-K and proxy statement, even if they do not presently serve in that role) an executive officer, director or nominee for election as a director; (b) who is a greater than 5 percent beneficial owner of the Company’s common stock; or (c) who is an immediate family member of any of the foregoing. Immediate family member includes a person’s spouse, parents, stepparents, children, stepchildren, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, and brothers- and sisters-in-law and anyone residing in such person’s home (other than a tenant or employee). Open market purchases or privately-negotiated transactions, excluding any distributions by the Company, involving any securities of the Company or its subsidiaries, are not deemed to be a “Related Party Transaction” under our Related Party Transaction Policy.

The following sets forth certain transactions in which we are involved and in which the directors, executive officers and affiliatesother Related Parties of Charter have or may have a material interest. The indentures of our subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp., require delivery of fairness opinions for transactions with affiliates involving more than $100 million. Such fairness opinions have been obtained whenever required. Charter has determined that all of our transactions entered into with affiliatesRelated Parties are in Charter’s best interest. Related Party Transactions are approved by the Audit Committee or another independent body of Charter’s boardBoard of directors.Directors.

On May 23, 2015, Charter entered into a Second Amended and Restatedthe Stockholders Agreement with Liberty Broadband, A/N and the former Charter Communications, Inc. (the “Stockholders Agreement”).Agreement. Under the terms of the Stockholders Agreement, the number of Charter’s directors is fixed at 13, and includes its chief executive officer.13. Two designees selected by A/N are members of the boardBoard of directorsDirectors of Charter and three designees selected by Liberty Broadband are members of the boardBoard of directorsDirectors of Charter. The remaining eight directors are not affiliated with either A/N or Liberty Broadband. Each of A/N and Liberty Broadband is entitled to nominate at least one director to each of the committees of Charter’s boardBoard of directors,Directors, subject to applicable stock exchange listing rules and certain specified voting or equity ownership thresholds for each of A/N and Liberty Broadband, and provided that the Nominating and Corporate Governance Committee and the Compensation and Benefits Committee each have at least a majority of directors independent from A/N, Liberty Broadband and Charter (referred to as the “unaffiliated directors”).Charter. Each of the Nominating and Corporate Governance Committee and the Compensation and Benefits Committee is currently comprised of three unaffiliated directors not designed by either A/N or Liberty Broadband and one designee of each of A/N and Liberty Broadband. A/N and Liberty Broadband also have certain other committee designation and other governance rights. Mr. Rutledge is the Executive Chairman and Mr. Winfrey is a non-voting Board observer. Pursuant to the terms of the Rutledge Agreement, Mr. Rutledge will step down from his position as the Executive Chairman of the boardCompany and the Board of Charter.Directors at the end of his employment term, and the Winfrey Agreement provides that Mr. Winfrey will be appointed as a member of the Board of Directors on or before December 31, 2023.

In connection with the closing of the Transactions, a number of agreements were entered into with Liberty Broadband and/or A/N, including the Charter Communications Holdings LLC operating agreement (the “LLC Agreement”), an exchange agreement, a registration rights agreement, a tax receivables agreement, an amendment agreement (that amended the Stockholders Agreement and the Liberty Broadband investment agreement) and a transition services agreement. These agreements were approved by the boardBoard of directors. Under the LLC agreement, during 2020Directors. In 2022, Charter paid $150 million to A/N as dividends on the 25 million convertible preferred units held by it that are entitled to a 6% annual dividend. Charter also paid approximately $2.3$110 million to A/N as tax distributions under the LLC agreementAgreement and $607,000$0.7 million to A/N under the tax receivables agreement.

In December 2017, Charter and A/N entered into an amendment to the letter agreement dated December 23, 2016 that requires A/N to sell to Charter or to Charter Holdings, on a monthly basis, a number of shares of Charter Class A common stock or Charter Holdings common units that represents a pro rata participation by A/N and its affiliates in any repurchases of shares of Charter Class A common stock from persons other than A/N effected by Charter during the immediately preceding calendar month, at a purchase price equal to the average price paid by Charter for the shares repurchased from persons other than A/N during such immediately preceding calendar month. A/N and Charter both have the right to terminate or suspend the pro rata repurchase arrangement on a prospective basis. Pursuant to the tax receivables agreement between Charter and A/N, Charter must pay to A/N 50% of the tax benefit when realized by Charter from the step-up in tax basis resulting from any future exchange or sale of the preferred and common units.

 

 

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In February 2021, Charter and Liberty Broadband entered into a letter agreement that requires Liberty Broadband to sell to Charter, on a monthly basis, a number of shares of Class A common stock representing an amount sufficient for Liberty Broadband’s ownership of Class A common stock to be reduced such that it does not exceed the ownership cap then applicable to Liberty Broadband under the Stockholders Agreement (the “LBB Cap”), at a purchase price equal to the average price paid by Charter for the shares repurchased from persons other than A/N during such immediately preceding calendar month. The letter agreement with Liberty Broadband terminates upon the earliest of (i) mutual written agreement of the parties, (ii) the termination of the Stockholders Agreement, or (iii) 12:01 a.m. following the first end date of a repurchase period occurring at least ten days after either party, in its sole discretion, delivers a written termination notice to the other party (provided, that, in the case of clause (iii), the rights and obligations of the parties under the letter agreement with Liberty Broadband survive with respect to a repurchase period ending prior to such termination). Upon the termination of the letter agreement with Liberty Broadband, the requirement of Liberty Broadband to sell shares of Class A Common Stock to Charter to the extent necessary so that Liberty Broadband’s ownership of Charter does not exceed the LBB Cap would revert to the terms of the Stockholders Agreement.

Dr. John Malone, a director emeritus of Charter and Chairman of the board of directors of Liberty Broadband and holder of 45.8%49% of voting interest in Liberty Broadband, also serves on the board of directors of Qurate Retail, Inc. (“Qurate”). As reported in Qurate’s SEC filings, Dr. Malone owns approximately 1.230.4 million shares of the Series A common stock and approximately 27.70.9 million shares of the Series A Cumulative Redeemable Preferred Stock of Qurate and has a 6.7% voting interest in Qurate for the election of directors. Mr. Gregory Maffei, a member of Charter’s Board of Directors, serves as the Chairman of the Board of Qurate. As reported in Qurate’s SEC filings, Mr. Maffeii owns approximately 0.4 million shares of the Series A common stock and approximately 9.4 million shares of the Series B common stock of Qurate and has a 40.9%19.8% voting interest in Qurate for the election of directors. Qurate wholly owns HSN, Inc. (“HSN”) and QVC, Inc. (“QVC”). The Company has programming relationships with HSN and QVC. For the year ended December 31, 2020,2022, the Company recorded revenue in aggregate of approximately $50.0$43.5 million from HSN and QVC as part of channel carriage fees and revenue sharing arrangements for home shopping sales made to customers in the Company’s footprint.

Dr. Malone and Mr. Steven Miron, a member of Charter’s board of directors, also serve on the board of directors of Discovery, Inc. (“Discovery”). As reported in Discovery’s SEC filings, Dr. Malone owns 1.2% of the series A common stock, 93.6% of the series B common stock and 3.6% of the series C common stock of Discovery and has a 27.9% voting interest in Discovery for the election of directors. As reported in Discovery’s SEC filings, Advance/Newhouse Programming Partnership (“A/N PP”), an affiliate of A/N and of which Mr. Miron is the CEO, owns 100% of the Series A-1 preferred stock of Discovery and 100% of the Series C-1 preferred stock of Discovery and has a 23.9% voting interest for matters other than the election of directors. A/N PP also has the right to appoint three directors out of a total of twelve directors to Discovery’s board. The Company purchases programming from Discovery. Based on publicly available information, the Company does not believe that Discovery would currently be considered a related party. The amount paid in the aggregate to Discovery represents less than 2% of total operating costs and expenses for the year ended December 31, 2020.

Liberty Broadband and A/N each have a number of subsidiary or affiliated companies with which Charter has customer or vendor relationships, some of which involved amounts in excess of $120,000 for 20202022 or may involve amounts in excess of $120,000 for 2021.2023. The following summarizes each of these relationships with Liberty Broadband and A/N subsidiaries and affiliates:

 

Advance Digital Inc., an A/N company, provides search engine marketing services to Charter. Charter paid approximately $9.5 million for these services in 2020.

Charter purchases advertising services and content licensing from American City Business Journals, an A/N company. Charter paid approximately $0.5 million for these services in 2022.

 

Charter purchases advertising services from American City Business Journals, an A/N company. Charter paid approximately $160,000 for these services in 2020.

Live Nation Entertainment, Inc. (Mr. Maffei is the Chairman of the Board; and Dr. Malone has a 48.4% voting interest in Liberty Media, which owns 30.62% of the Live Nation equity) is a customer of Spectrum Enterprise and Spectrum Reach and purchased approximately $1.0 million of services during 2022.

In August 2015, a purported stockholder of Charter, Matthew Sciabacucchi, filed a lawsuit in the Delaware Court of Chancery, on behalf of a putative class of Charter stockholders, challenging the Transactions. The lawsuit, which named as defendants Charter and certain of its current and former Board of Directors, alleged that the Transactions resulted from breaches of fiduciary duty by Charter’s directors and that Liberty Broadband improperly benefited from the challenged transactions at the expense of other Charter stockholders. On March 3, 2023, Charter, certain of Charter’s current and former directors and Liberty Broadband entered into a Stipulation and Agreement of Settlement, Compromise and Release in connection with the settlement of the Board;Sciabacucchi litigation and Dr. Malone has a 47.9% voting interest in Liberty Media, which owns 32.36%to effectuate the allocation of the Live Nation equity) is a customersettlement amount of Spectrum Enterprise$87.5 million to be paid to Charter (less plaintiffs’ attorneys’ fees), of which $49 million will be covered by Charter’s insurers and Spectrum Reach$38.5 million will be covered by Liberty Broadband. Also on March 3, 2023, Charter, Charter’s directors who are defendants in the suit and purchased approximately $151,000 of services during 2020.

Balan Nair is the President and Chief Executive Officer of Liberty Latin America (“LLA”). In 2020, CharterCharter’s insurers entered into an agreement with LLA under which Charter would sell certain excess equipmentSettlement Funding Agreements and Mutual Releases to effectuate the allocation of a type Charter no longer re-employs to LLA over a three-year period with aggregate proceedsthe insurers’ portion of approximately $1.7 million.the settlement amount among Charter’s insurers.

 

 

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Proposal No. 2: Approval, on an Advisory Basis, of the Compensation of Named Executive Officers

(Item 2 on Proxy Card)

As required by Section 14A of the Exchange Act, we are providing our shareholders with the opportunity to cast a non-binding advisory vote on the compensation of the Company’s Named Executive Officers, as disclosed in the Compensation Discussion and Analysis section above including the accompanying compensation tables.

Charter’s compensation programs are designed to create a strong linkage between the actual compensation earned by our Named Executive Officers and Company performance, and reward both growth-oriented annual operating results as well as sustainable long-term shareholder returns. The compensation structure for Charter’s NEOs results in an overall mix of pay that is highly performance-based, particularly with respect to the proportion of compensation tied to stock price appreciation via stock options and without taking into account the performance-based incentives derived from previously vested equity awards. The compensation mix delivered to the CEO and other NEOs in 2022, based on the values disclosed in the Summary Compensation Table, was as follows:

LOGO

Charter believes that awards represent competitive levels of total compensation that are effectively balanced to align value realized by executives with the achievement of meaningful financial performance and the generation of shareholder returns. Charter believes that NEO total compensation opportunities – including base salary, annual incentives, and long-term equity awards – created strong alignment between executive compensation and performance outcomes in 2022, as more fully described in the Pay Versus Performance section above.

In spite of challenging market dynamics with low connect activity driven by historically low customer churn, Charter achieved meaningful customer relationship growth in 2022 – including the highest year-over-year growth in mobile lines to-date – and annual increases in both top and bottom-line financial performance. Over the course of the year, Charter continued to expand and improve services for its customers: implementing spectrum split upgrades, expanding plant capacity, and progressing rural build-out initiatives. Charter also introduced the new Spectrum One bundle in late 2022, which provides a package of Internet, Advanced Wi-Fi, and Unlimited Mobile services at a low price. For the fiscal year ended December 31, 2022, Charter achieved the following key operational and financial objectives:

Total customer relationships grew by 126,000, or 0.4%

Mobile lines grew by 1,728,000, Internet customers by 344,000

Revenue grew by 4.5% to $54.0 billion

Adjusted EBITDA grew by 4.8% to $21.6 billion(1)

Free cash flow of $6.1 billion(1)

Charter also purchased approximately 23.8 million shares of Charter Class A common stock and Charter Holdings common units for approximately $11.7 billion in 2022 at an average price per share of $491.48.

(1)

See ”Non-GAAP Financial Measures” in Appendix A.

Charter Communications        |    68    |        2023 Proxy Statement


Please review the Compensation Discussion and Analysis included in this proxy statement for a detailed description and discussion of the Company’s compensation process and programs. We believe our compensation program provides the appropriate current compensation and incentivizes value creation for our stockholders.

Your vote is requested. We believe that the information regarding named executive officer compensation as disclosed within the Compensation Discussion and Analysis section of this proxy statement including the accompanying compensation tables and within the Pay Versus Performance discussion demonstrates that the Company’s executive compensation program was designed appropriately and structured to ensure the retention of talented executives and a strong alignment with the long-term interests of the Company’s stockholders. This vote is not intended to address any specific item of compensation, but rather the overall compensation of the Company’s Named Executive Officers, as described in this proxy statement. Accordingly, the Company will ask the Company’s shareholders to vote “FOR” the following resolution:

“RESOLVED, that the compensation paid to the Company’s Named Executive Officers as disclosed under “Compensation Discussion and Analysis” pursuant to Item 402 of Regulation S-K, including the accompanying compensation tables and narrative disclosure contained in this proxy statement, is hereby APPROVED.”

Because the vote is advisory, it will not be binding on the Company, the Board or the Compensation and Benefits Committee, nor will it overrule any prior decision or require the Board or the Compensation and Benefits Committee to take any action. However, the Compensation and Benefits Committee and the Board value the opinions of the Company’s stockholders and to the extent there is any significant vote against the named executive officer compensation as disclosed in this proxy statement, the Compensation and Benefits Committee and the Board will consider stockholders’ concerns and the Compensation and Benefits Committee will evaluate whether any actions are necessary to address those concerns.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE APPROVAL OF THE COMPANY’S EXECUTIVE COMPENSATION.

Charter Communications        |    69    |        2023 Proxy Statement


Proposal No. 3: Approval, on an Advisory Basis, of a Triennial Advisory Vote on Executive Compensation

(Item 3 on Proxy Card)

Pursuant to SEC rules, the Board of Directors is required to submit an advisory, nonbinding resolution to stockholders at least once every six years to determine whether advisory, nonbinding votes on the Company’s executive compensation should be held every one, two or three years. At the Company’s annual meeting of stockholders in 2017, the Company’s stockholders voted, in an advisory (nonbinding) vote, that future say-on-pay votes should be held every three years.

After careful consideration of this proposal, the Board has determined that an advisory vote on executive compensation that occurs once every three years, or a triennial vote, continues to be the most appropriate alternative for the Company at this time, and therefore the Board recommends a triennial advisory vote on executive compensation. We believe that a triennial advisory vote is the best approach for the Company based on a number of considerations, including the following:

As described in the Compensation Discussion and Analysis section above, one of the principles of our executive compensation program is to ensure management’s interests are aligned with our investors’ interests to support long-term value creation. Accordingly, we grant awards with multi-year service periods to encourage our Named Executive Officers to focus on long-term performance, and recommend a triennial vote which would allow our executive compensation programs to be evaluated over a similar time-frame and in relation to our long-term performance;

A three-year vote cycle gives the Board sufficient time to thoughtfully consider the results of the advisory vote and to implement any desired changes to our executive compensation policies and procedures; and

A three-year cycle will provide investors sufficient time to evaluate the effectiveness of our short- and long-term compensation strategies and the related business outcomes of the Company.

We carefully review changes to our program to maintain the consistency and credibility of the program, which is important in motivating and retaining our employees. We therefore believe that a triennial vote is an appropriate frequency to provide sufficient time to thoughtfully consider and implement any appropriate changes to our executive compensation program, in light of the timing that would be required to implement any decisions related to such changes. In the future, we may determine that a more frequent advisory vote is appropriate, either in response to the vote of the Company’s stockholders on this proposal or for other reasons.

Stockholders may cast their vote on the preferred voting frequency by choosing the option of one year, two years, three years or abstain from voting when voting on this proposal. The option of one year, two years or three years that receives the greatest number of votes cast by stockholders will be considered the frequency for the advisory vote on executive compensation that has been recommended by stockholders, even if that alternative does not receive a majority of votes cast. However, because this vote is advisory and not binding on the Board or the Company in any way, the Board may decide that it is in the best interests of the Company and its stockholders to hold an advisory vote on executive compensation more or less frequently than the option approved by the Company’s stockholders.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE OF “THREE YEARS” ON THE PROPOSAL RECOMMENDING THE FREQUENCY OF ADVISORY VOTES ON EXECUTIVE COMPENSATION.

Charter Communications        |    70    |        2023 Proxy Statement


Proposal No. 4: Ratification of the Appointment of Independent Registered Public Accounting Firm

(Item 24 on Proxy Card)

The Audit Committee of the boardBoard of directorsDirectors has appointed KPMG LLP (“KPMG”) as the Company’s independent registered public accounting firm for 2021.2023. Stockholder ratification of the selection of KPMG as the Company’s independent registered public accounting firm is not required by the Company’s Bylaws or other applicable requirement. However, as a matter of corporate responsibility, the Audit Committee decided to solicit stockholder ratification of this appointment. Ratification of the appointment of KPMG as the Company’s independent registered public accounting firm is not required for KPMG’s retention; however, if the appointment is not ratified, the Audit Committee may consider re-evaluating the appointment.

KPMG has been serving as the Company’s independent registered public accounting firm since 2002. The Company has been advised that no member of KPMG had any direct financial interest or material indirect financial interest in the Company or any of its subsidiaries or, during the past three years, has had any connection with the Company or any of its subsidiaries in the capacity of promoter, underwriter, voting trustee, director, officer or employee. The Company has been advised that no other relationship exists between KPMG and the Company that impairs KPMG’s status as the independent registered public accounting firm with respect to the Company within the meaning of the Federal securities laws and the requirements of the Independence Standards Board.

Representatives of KPMG will be in attendance at the annual meeting and will have an opportunity to make a statement if they so desire. The representatives will also be available to respond to appropriate questions.

 

 

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” RATIFICATION OF THE APPOINTMENT OF KPMG LLP AS THE COMPANY’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR 2021.2023.

 

 

Charter Communications        |    6371    |        20212023 Proxy Statement


Accounting Matters

Principal Accounting Firm

KPMG acted as the Company’s independent registered public accounting firm since 2002, and, subject to ratification by stockholders at the annual meeting, KPMG is expected to serve as the Company’s independent registered public accounting firm for 2021.2023.

Services of Independent Registered Public Accounting Firm

The Audit Committee has adopted policies and procedures requiring the pre-approval of non-audit services that may be provided by our independent registered public accounting firm. We have also complied and will continue to comply with the provisions of the Sarbanes-Oxley Act of 2002 and the related SEC rules pertaining to auditor independence and audit committee pre-approval of audit and non-audit services.

Audit Fees

During each of the years ended December 31, 20202022 and 2019,2021, we incurred fees and related expenses for professional services rendered by KPMG for the audits of Charter and its subsidiaries’ financial statements, for the review of Charter and its subsidiaries’ interim financial statements, registration statement filings and offering memoranda filings totaling approximately $9 million and $8 million, respectively.million.

Audit-Related Fees

No audit-related fees to KPMG were incurred during the yearyears ended December 31, 2020 while approximately $0.2 million were incurred during the year ended December 31, 2019. These services were primarily related to diligence services.2022 and 2021.

Tax Fees

Charter incurred tax fees to KPMG of approximately $1 million and $2 million during each of the years ended December 31, 20202022 and 2019, respectively.2021.

All Other Fees

None.

The Audit Committee appoints, retains, compensates and oversees the independent registered public accounting firm (subject, if applicable, to boardBoard of directorDirector and/or stockholder ratification), and approves in advance all fees and terms for the audit engagement and non-audit engagements where non-audit services are not prohibited by Section 10A of the Securities Exchange Act, of 1934, as amended with respect to independent registered public accounting firms. Pre-approvals of non-audit services are sometimes delegated to a single member of the Audit Committee. However, any pre-approvals made by the Audit Committee’s designee are presented at the Audit Committee’s next regularly scheduled meeting. The Audit Committee has an obligation to consult with management on these matters. The Audit Committee approved 100% of the KPMG fees for the years ended December 31, 20202022 and 2019.2021. The Audit Committee considered whether the provision of non-audit services was compatible with KPMG’s independence. Each year, including 2020,2022, with respect to the proposed audit engagement, the Audit Committee reviews the proposed risk assessment process in establishing the scope of examination and the reports to be rendered.

In its capacity as a committee of the board, the Audit Committee oversees the work of the independent registered public accounting firm (including resolution of disagreements between management and the public accounting firm regarding financial reporting) for the purpose of preparing or issuing an audit report or performing other audit, review or attest services. The independent registered public accounting firm reports directly to the Audit Committee. In performing its functions, the Audit Committee undertakes those tasks and responsibilities that, in its judgment, most effectively contribute to and implement the purposes of the Audit Committee charter. For more detail of the Audit Committee’s authority and responsibilities, see the Company’s Audit Committee charter on the “Investor Relations” section of our website at ir.charter.com.ir.charter.com.

 

 

Charter Communications        |    6472    |        20212023 Proxy Statement


Report of the Audit Committee

The following report does not constitute soliciting materials and is not considered filed or incorporated by reference into any other Company filing under the Securities Act of 1933, as amended, or the Securities Exchange Act, of 1934, as amended, unless we state otherwise.

The Audit Committee was established to oversee the Company’s accounting and financial reporting processes and the audits of the Company’s annual financial statements. In 20202022 Ms. Goodman and Messrs. Merritt and Markley served on the Audit Committee for the entire year. All members were determined by the boardBoard to be independent in accordance with the applicable corporate governance listing standards of the NASDAQ Global Select Market. The Company’s boardBoard of directorsDirectors has determined that, in its judgment, Mr. Merritt is an audit committee financial expert within the meaning of the applicable federal regulations.

The Audit Committee’s functions are detailed in a written amended and restated Audit Committee charter adopted by the boardBoard of directors,Directors, a copy of which is available on the “Investor Relations” section of our website at ir.charter.com.ir.charter.com. As more fully described in its charter, the Audit Committee reviews the Company’s financial reporting process on behalf of the boardBoard of directors.Directors. Company management has the primary responsibility for the Company’s financial statements and the reporting process. The Company’s independent registered public accounting firm is responsible for performing an audit of the Company’s consolidated financial statements in accordance with generally accepted auditing standards and expressing an opinion on the conformity of the financial statements to generally accepted accounting principles. The internal auditors are responsible to the Audit Committee and the boardBoard of directorsDirectors for testing the integrity of the financial accounting and reporting control systems and such other matters as the Audit Committee and boardBoard of directorsDirectors determine. The Audit Committee held four meetings in 2020.2022.

The Audit Committee has reviewed and discussed with management and the internal auditors the Company’s audited financial statements and effectiveness of internal controls for the year ended December 31, 2020.2022. The Audit Committee has discussed the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board and the SEC, including those described in Auditing Standard No. 1301, as amended (Communication with Audit Committees), with KPMG, the independent registered public accounting firm for the Company’s audited financial statements for the year ended December 31, 2020.2022.

The Audit Committee has also received the written disclosures and the letter from KPMG required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the Audit Committee concerning independence, and the Audit Committee has discussed the independence of KPMG with that firm and has considered the compatibility of non-audit services with KPMG’s independence.

Based on the Audit Committee’s review and discussions noted above, the Audit Committee recommended to the boardBoard of directorsDirectors that the Company��sCompany’s audited financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 20202022 for filing with the SEC.

The Audit Committee evaluated KPMG’s independence, performance, qualifications, tenure, partnership rotation and relationship management and based on that evaluation approved the appointment of KPMG as the Company’s independent registered public accounting firm for 2021.2023.

DAVID C. MERRITT

KIM C. GOODMAN

JOHN D. MARKLEY, JR.

 

 

Charter Communications        |    6573    |        20212023 Proxy Statement


Proposal No. 3:5: Stockholder Proposal Regarding

Lobbying Activities

(Item 35 on Proxy Card)

This proposal was submitted by theThe Service Employees International Union Pension Plans Master Trust (“SEIU”), the beneficial owner of at least $2,000 worth of shares of our Class A common stock. The proposal from SEIU reads as follows:

WHERAS: WeWhereas, we believe in full disclosure of Charter’s and indirect lobbying activities and expenditures to assess whether Charter’s lobbying is consistent with its expressed goals and in stockholders’ beststockholder interests.

RESOLVED: the Resolved,stockholders of Charter request the preparation of a report, updated annually, disclosing:

 

 1.

Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.

 

 2.

Payments by Charter used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.

 

 3.

Charter’s membership in and payments to any tax-exempt organization that writes and endorses model legislation.

 

 4.

Description of management’s decision-making process and the Board’s oversight for making payments described in sections 2 and 3 above.

For purposes of this proposal, a “grassroots lobbying communication” is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. “Indirect lobbying” is lobbying engaged in by a trade association or other organization of which Charter is a member.

Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels.

The report shall be presented to the Audit Committee or other relevant oversight committees and posted on Charter’s website.

Supporting Statement

Charter spent $58,985,000$80,765,000 from 2010 – 20192021 on federal lobbying. This does not include state lobbying expenditures, where Charter also lobbies but disclosure is uneven or absent. For example, Charter hadlobbied in at least 310 lobbyists in 2831 states in 2019 (followthemoney.org)2021 and spent $1,595,285$2.9 million on lobbying in New YorkCalifornia from 2015 – 2021.

Charter fails to disclose its payments to trade associations and social welfare groups, or the amounts used for 2017lobbying, to stockholders. Companies can give unlimited amounts to third party groups that spend millions on lobbying and 2018.

undisclosed grassroots activity. These groups may be spending “at least double what’s publicly reported.”1Charter serves on the board of NCTA - The Internet & Television Association, which spent $160,250,000$189,720,000 on lobbying from 2010 – 2019,2021, and is a member ofbelonged to Broadband for America, a social welfare group which was behind a campaign that “misappropriated names and personal information as part of a bidspent $4.2 million to submit more than 1.58.5 million statements favorable to their cause”fake comments to the FCC onopposing net neutrality.12 And Charter does not disclose its memberships in, or payments to, trade associations, or the amounts used for lobbying. And Charter does not disclose membership in or contributions to tax-exempt organizations thatgroups which write and endorse model legislation, such as belonging tolike the American Legislative Exchange Council (ALEC).

We are concerned thatbelieve Charter’s lack of lobbying disclosure createspresents reputational risks when its lobbying contradicts company public positions. For example, Charter states that it is committed to an open internet, yet NCTA and Broadband for America lobbied against net neutrality. While Charter is committed to diversity and inclusion, groups have asked Charter to leave ALEC because of its voter restriction efforts.23 And Charter’s ALEC membershipCharter has drawn pressattracted negative scrutiny3 and over 110 companies have publicly left ALEC.

We believe the reputational damage stemming from this misalignment harms long-term value creation by Charter, which has been named to several “America’s Most Hated Companies” lists. for “running a fake consumer group in Maine that’s killing community broadband.”4 Therefore, we

In the last two years, this proposal received majority support of outside stockholders. We urge Charter to expand its lobbying disclosure.

 

1 

https://www.buzzfeednews.com/article/jsvine/net-neutrality-fcc-fake-comments-impersonationtheintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly- reported/.

2 

https://readsludge.com/2018/06/11/today-net-neutrality-officially-dies/www.wired.com/story/isps-funded-85-million-fake-comments-opposing-net-neutrality/.

3 

https://www.prwatch.org/news/2018/11/13428/att-drops-alec-hosting-hate-speechwww.thenation.com/article/politics/alec-corporations-democracy/.

4

https://www.techdirt.com/2022/07/12/charters-running-a-fake-consumer-group-in-maine-thats-killing-community-broadband-with-the-help-of-a-democratic-advisor/.

 

 

Charter Communications        |    6674    |        20212023 Proxy Statement


Statement Against Stockholder Proposal Regarding Lobbying Activities

Our Board believes that our Company’s participation in the political, legislative and regulatory processes at all levels of government enhances stockholder value. Our Company is committed to participating constructively in the political process to increase shareholder value and in full compliance with applicable rules and regulations. Our Company makes significant disclosures regarding lobbying and political contributions, and our Board believes that these current disclosures are appropriate and consistent with the objectives of transparency and accountability reflected in the proposal. Indeed, the proponent includes contribution data from our disclosures, demonstrating that significant information concerning our activities is already publicly available.

Our Company has extensive policies and procedures in place to ensure that all lobbying activities and political contributions conducted by the Company and our employees comply with all applicable laws, including robust internal controls and oversight. Our Government Affairs team manages the Company’s lobbying activities and reports directly to the Executive Chairman, with oversight from the full Board of Directors. The Board has delegated authority and responsibility for state and local campaign contributions to the Chief Executive Officer, subject to the provisions of the Company’s Code of Conduct and any other applicable Company policies. The Board receives an annual report on lobbying activities from the Government Affairs team as well as quarterly updates on regulatory activities. Applicable laws and regulations include the prohibition under federal law barring corporations from making direct or indirect contributions to candidates or political parties at the federal level. Similarly, we make political contributions only in states where such contributions are permitted. Contributions are intended to support political issues and candidates consistent with our policy objectives. We disclose our policy objectives on our website at https://policy.charter.com. Charter publicly discloses all U.S. federal lobbying costs and the issues to which our lobbying efforts relate on a quarterly basis. Charter also makes such disclosures at the state or local level consistent with applicable lobbying laws.

Our Board believes that the information currently made available strikes the appropriate balance between transparency and excessive burden and cost, and that additional disclosures with respect to lobbying activities would not provide useful information to stockholders. The implementation of the proposal’s additional requirements would result in the unproductive consumption of valuable time and corporate resources without materially enhancing existing disclosures.

Additional detailed disclosures regarding our participation or contribution to any tax-exempt industry organization or trade associations may further encourage issue activists, some motivated by special or short-term interests, to pressure us to alter our political participation in a manner that could adversely affect stockholder interests, or require us to disclose proprietary information, putting us at a competitive disadvantage. Our Company maintains membership in trade associations and other tax-exempt entities primarily for strategic, rather than advocacy-related purposes. For these reasons, additional disclosures regarding contributions to such organizations and associations would not provide useful information to stockholders.

Our Board also opposes the proposal because many aspects of it are vague or unworkable and may create confusion. The definition of lobbying, and the expenditures that would be considered lobbying-related, vary across jurisdictions and could include employee salaries, office rent and employee travel expenses. As a result, the disclosures regarding lobbying-related expenditures required by the proposal may be inconsistent and confusing, as a particular expenditure may be considered lobbying-related in one jurisdiction but not in another.

In light of our existing policies and disclosures with respect to lobbying activities, our Board believes that producing a report beyond what has been published on our website and required in our public filings would impose a significant burden on the Company, but provide minimal additional information of value to Charter’s stockholders. As a result, our Board believes that adopting the proposal is unnecessary and is not in the best interests of our Company or our stockholders.

 

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “AGAINST” THIS PROPOSAL.

 

 

 

Charter Communications        |    67    |        2021 Proxy Statement


Proposal No. 4: Stockholder Proposal Regarding

Chairman of the Board and CEO Roles

(Item 4 on Proxy Card)

This proposal was submitted by the New York State Common Retirement Fund, the beneficial owner of at least $2,000 worth of shares of our Class A common stock. The proposal reads as follows:

“RESOLVED: Shareholders of Charter Communications, Inc. (Charter), urge the Board of Directors (Board) to take the steps necessary to adopt a policy to require that the Chairman of the Board shall be an independent member of the Board. This policy would be phased in for the next CEO transition.

If the Board determines that a Chair who was independent when selected is no longer independent, the Board shall select a new Chair who satisfies the requirements of the policy within a reasonable amount of time. Compliance with this policy is waived if no independent director is available and willing to serve as Chair. This policy should be implemented so as not to violate any contractual obligations, with amendments to Charter’s governing documents as needed.

Supporting Statement

Charter’s Board Chairman has served as Chairman and CEO since 2016. Previously, he served as Charter’s President from February 2012 to July 2016, and as a director since February 2012.

A board, led by its chair, is responsible for protecting shareholders’ interests by providing oversight of management in directing the corporation’s affairs. This oversight function can be diminished when the chair is not an independent director, weakening a company’s governance structure. While Charter has appointed a lead independent director, the lead director’s duties are not robust and do not include duties like approval of Board meeting schedules and agendas, or approval of information sent to the Board.

Shareholders have serious concerns regarding the Board’s persistent issues such as:

Several directors serve on an excessive number of boards. When combined with other executive duties, this may preclude certain directors from dedicating the time necessary to fulfill the responsibilities;

The designation of directors via related-party transactions and the subsequent limited voting rights could hinder the interests of outside shareholders;

Over recent years, several directors have received lower-than-usual shareholder support, indicating dissatisfaction with director performance;

Women directors represent only 8% of the board’s directors (1 out of 13);

Shareholders do not have the right to call special meetings and the board has failed to adopt proxy access;

While Charter published its first Corporate Responsibility Report in 2020, it has failed to comprehensively demonstrate that it manages ESG-related risks and performance, including metrics to measure performance;

Concerns with labor management practices, including an unresolved three-year strike with a bargaining unit, can affect the company’s image among its employees, customers, and regulators; and,

Recent public disputes with federal, state, and local regulators may lead to increased regulatory, financial, and reputational risks.

In our view, the chair should be an independent director who has not previously served as an executive of Charter. By separating the roles of chair and CEO, Charter would join a majority of S&P 500 companies that have definitively split the two roles, enhancing oversight and accountability of management to shareholders, and provide independent leadership in addressing governance weaknesses.”

Charter Communications        |    68    |        2021 Proxy Statement


Statement Against Stockholder Proposal Regarding Chairman of the Board and CEO Roles

Our Board of Directors values the flexibility of selecting the structure of leadership best suited to meet the needs of the Company and its stockholders. The Board, which consists of directors with diverse experience, backgrounds, perspectives and extensive knowledge about the Company and our industry is best positioned to evaluate its optimal leadership structure. Given the dynamic and competitive environment in which we operate, the Board believes that the right leadership structure may vary as circumstances warrant. The Board recommends a vote against this proposal because it believes it is in the best interests of our stockholders for the Board to have the flexibility to determine the best person to serve as the Chairman of the Board, whether that person is a non-management director or the CEO.

Every year, the Nominating and Corporate Governance Committee reviews and makes a recommendation on the appropriate governance framework for Board leadership. The Committee takes into consideration governance best practices and the facts and circumstances of our Board. Upon the closing of the Transactions in 2016, the Company determined that Board leadership is best provided through the combination of a unified Chairman and CEO, a clearly defined and significant lead independent director role, active and strong committee chairs, and independent-minded, skilled, engaged, diverse and committed directors. The Board believes that its current structure and governance allows it to provide effective challenge and oversight of management.

We have a Lead Independent Director with significant responsibilities that are described in detail in this proxy statement. Mr. Zinterhofer’s skills, experience, commitment and the time he devotes to serve his role all make him well qualified to serve as our Lead Independent Director. The Chairman and CEO is responsible for setting the strategic direction for the Company and the day to day leadership and performance of the Company, while the Lead Independent Director consults with the Chairman and CEO and presides over meetings of the Board when the Chairman and CEO is not present as well as providing leadership for the non-A/N and non-Liberty Broadband directors.

Furthermore, our non-management directors meet regularly in executive sessions that are chaired by our Lead Independent Director with no member of management present. Non-management directors use these executive sessions to discuss various matters regarding the Company and the Board, as well as evaluations of the CEO and senior management, management and Board successions, matters to be included on Board agendas, and additional information the Board would like management to provide to them.

The Board exercises a strong, independent oversight function, which is further enhanced by the fact that our chairs and all members of the Board committees are independent directors. These chairs shape the agenda and information presented to their committees. Oversight of critical issues within these committees is owned by the independent directors. All directors have full access to all members of management and all employees on a confidential basis.

We believe that our current Board structure is in the best interest of our stockholders and that the Board should maintain the flexibility to select the optimal structure of leadership best suited to meet the needs of Charter and its stockholders at any given time, including after our current Chairman and CEO no longer serves as CEO. In addition, given Charter’s robust governance practices, including our strong Lead Independent Director, the Board believes that adoption of an Independent Chair Policy is unnecessarily rigid and not in the best interest of the Company or its stockholders.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “AGAINST” THIS PROPOSAL.

Charter Communications        |    69    |        2021 Proxy Statement


Proposal No. 5: Stockholder Proposal Regarding

Diversity and Inclusion Efforts

(Item 5 on Proxy Card)

This proposal was submitted by Handlery Hotels Inc, John B & Linda C Mason Comm Prop (S) and Samajak LP, the beneficial owners of at least $2,000 worth of shares of our Class A common stock. The proposal reads as follows:

“RESOLVED: Shareholders request that Charter Communications, Inc. (“Spectrum”), publish annually a report assessing the Company’s diversity and inclusion efforts, at reasonable expense and excluding proprietary information. At a minimum the report should include:

The process that the Board follows for assessing the effectiveness of its diversity, equity and inclusion programs,

The Board’s assessment of program effectiveness, as reflected in any goals, metrics, and trends related to its promotion, recruitment and retention of protected classes of employees.

Supporting Statement

Investors seek quantitative, comparable data to understand the effectiveness of the company’s diversity, equity, and inclusion programs.

Whereas: Numerous studies have pointed to the corporate benefits of a diverse workforce. These include:

Companies with the strongest racial and ethnic diversity are 35 percent more likely to have financial returns above their industry medians.

Companies in the top quartile for gender diversity are 21 percent more likely to outperform on profitability and 27 percent more likely to have superior value creation.1

A 2019 study of the S&P 500 by the Wall Street Journal found that the 20 most diverse companies had an average annual five year stock return that was 5.8 percent higher than the 20 least-diverse companies.2

Despite such benefits, significant barriers exist for diverse employees advancing within their careers. Women enter the workforce in almost equal numbers as men (48 percent). However, they only comprise 22 percent of the executive suite. Similarly, people of color comprise 33 percent of entry level positions, but only 13 percent of the c-suite.3

Spectrum states on its website: “To compete in today’s marketplace, we must attract, recruit, select, develop and retain the best talent from among the broadest range of people, backgrounds, and perspectives. Spectrum continues to build an inclusive workplace and a corporate culture that drafts on the strength of our diversity.”4

However, Spectrum has not released meaningful information that allows investors to determine the effectiveness of its human capital management as it relates to workplace diversity. Stakeholders may become concerned that Spectrum’s statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to “puff up” companies or products and not able to be relied upon by consumers and investors. Investors have reason to be wary, as Spectrum faces allegations of homophobia and ageism as well as sexual and racial discrimination.

Investor desire for information on this issue is significant. As of October, 2020, $1.9 trillion in represented assets released an Investor Statement on the importance of increased corporate transparency on workplace equity data. It stated:

It is essential that investors have access to the most up-to-date and accurate information related to diverse workplace policies, practices, and outcomes.5

1

McKinsey & Company, “Delivering through Diversity”, January 2018 https://www.mckinsey.com/~/media/mckinsey/business%20functions/organization/our%20insights/delivering%20through%20diversity/delivering-through-diversity_full-report.ashx

2

Holger, Dieter, “The business case for more diversity” Wall Street Journal, October 26, 2019 https://www.wsj.com/articles/the0business-case-for-more-diversity-11572091200

3

McKinsey & Company, “Women in the Workplace 2018”, https:/womenintheworkplace.com/

4

https://jobs.spectrum.com/diversity-and-inclusion

5

https://www.asyousow.org/our-work/gender-workplace-equity-disclosure-statement

Charter Communications        |    70    |        2021 Proxy Statement


Statement Against Stockholder Proposal Regarding Diversity and Inclusion Efforts

The Company is committed to diversity and inclusion in every aspect of our business. As we strive to deliver high-quality products and services that exceed our customers’ expectations, we embrace the unique perspectives and experiences of our employees, partners and the communities we serve. The Company’s commitment to diversity and inclusion and our efforts to support this commitment are described in our 2019 Corporate Responsibility Report and on our website at corporate.charter.com/diversity-inclusion. Website content regarding diversity & inclusion is updated periodically throughout each year. With this information, we believe that we have substantially addressed the concerns put forward by the proponent, and oppose the proposal to prepare a separate annual report on our diversity & inclusion initiatives and progress.

Our diversity and inclusion efforts are guided by our Executive Steering Committee for Diversity and Inclusion, External Diversity & Inclusion Council (EDIC) and Diversity & Inclusion team, with strong support from the executive leadership of the Company. Our Chairman and CEO leads our Executive Steering Committee, comprising all of the Company’s most senior leaders. The group regularly reviews progress against our diversity and inclusion strategy to ensure that both diversity and inclusion remain integral across our business. Our EDIC comprises national civic and business leaders who help us understand the critical needs of the diverse communities we serve and how to implement our programs in the most impactful way. Led by Charter’s Chief Diversity Officer, the Diversity & Inclusion team works across the organization to incorporate diversity and inclusion into everything that we do. Our Chairman and CEO also regularly meets with our EDIC.

We are proud of our workforce that reflects the full range of diversity and abilities in the markets we serve, and are actively working to promote diversity at every level of our organization. We foster an inclusive environment where employees feel respected, engaged, and able to reach their full potential. This also helps us meet the unique needs of our customers. We are striving to enhance diversity at every level of our organization, including among our senior leaders. Ultimately, our vision is to leverage the full diversity of our employees and partners as we continue to make a meaningful difference for our customers, company, and communities.

We partner with a number of industry organizations to recruit and develop diverse talent. For example, the Company sponsors employee memberships in Women in Cable Telecommunications (WICT) and National Association for Multi-Ethnicity in Communications (NAMIC) — both provide a range of skill-building and networking opportunities that facilitate career advancement. We also invest in the Emma Bowen Foundation, which facilitates internships for talented students of color at leading media companies like ours, as well as T. Howard Foundation, whose mission is to increase diversity in the media industry. In 2020, the Company also launched a new initiative, Spectrum Scholars, a two-year educational and mentorship program for underrepresented students with financial need. Each student will receive a $20,000 scholarship, a Charter professional mentor and the opportunity to explore an internship with the company.

This commitment to diversity means building and maintaining an inclusive environment where everyone feels valued. Our employees represent a wide range of perspectives and experience, and success on our commitment is measured by how well we integrate each individual’s unique self-understanding into our business, workforce, and relationships with our clients and employees. In 2019, we launched five Business Resource Groups (BRGs) focused on disability, LGBTQ, multicultural, veterans and women. These voluntary groups connect employees with shared characteristics, life experiences, and interests, and enable them to engage in activities that advance our culture of inclusion and contribute to business success. BRGs empower our team members to grow and succeed by providing networking, mentorship and skill-building opportunities. We also launched Charter Inclusion Talks, an internal speaker series built around cultural heritage and identity dates. The Talks, which are held across our footprint, raise awareness of the many identities and heritages that contribute to the Company’s success.

The Company is also in the process of developing a report describing material environmental, social and governance (“ESG”) risks and opportunities. As part of this process, the Company’s Chairman and CEO has committed the Company to adopt performance targets related to ESG matters. Charter’s ESG report will be built around Charter’s ESG framework, which will be described in the report and which includes our focus on our highly-skilled workforce. Within that element of our ESG framework, enabling a diverse and inclusive culture will be reported upon as a key element. The Company expects to issue the report before the date of the 2021 annual meeting.

These efforts evidence that the Company’s commitment to diversity and inclusion is vital to our continued success, our unique culture and our purpose of serving every client with passion and integrity. In light of our existing policies and disclosures with respect to diversity and inclusion, our Board does not believe that preparing a separate report describing the Board’s process for assessing the effectiveness of our diversity and inclusion efforts as well as the Board’s assessment of those efforts is warranted.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “AGAINST” THIS PROPOSAL.

Charter Communications        |    71    |        2021 Proxy Statement


Proposal No. 6: Stockholder Proposal Regarding

Disclosure of Greenhouse Gas Emissions

(Item 6 on Proxy Card)

This proposal was submitted by The Children’s Investment Master Fund, the beneficial owner of at least $2,000 worth of shares of our Class A common stock. The proposal reads as follows:

Proposal

RESOLVED, that shareholders of Charter Communications, Inc. (“Charter” or the “Company”) request that the Board of Directors of Charter disclose at each annual meeting of shareholders, beginning with the next annual meeting of shareholders, a report disclosing the Company’s greenhouse gas emission levels (the “Emissions”) in a manner consistent with the Task Force on Climate-related Financial Disclosure recommendations as well as any strategy that the Company may have adopted or will adopt to reduce the Emissions in the future, including any Emissions’ progress made year over year (the “Reduction Plan”), and provide shareholders with the opportunity, at each such annual meeting, to express non-binding advisory approval or disapproval of the Reduction Plan.”

Supporting Statement

As governments take steps to limit greenhouse gas emissions and mandate reporting in line with the Task Force on Climate-related Financial Disclosure; disclosing reduction targets, detailing strategies for embedding climate change throughout their business models and services and providing progress therein to shareholders, is an important means of assuring shareholders that management is taking seriously the physical and transition risks associated with climate change.

Charter Communications        |    72    |        2021 Proxy Statement


Statement Against Stockholder Proposal Regarding Disclosure of Greenhouse Gas Emissions

The Company strives to operate its business in an efficient manner and reduce its greenhouse gas emissions. The Company takes seriously its role in helping maintain a healthy environment throughout its footprint. We are committed to environmental sustainability, and we strive to reduce our impact on the environment by reducing carbon emissions in our business over time. We do not believe that adoption of the proponent’s proposal is an effective use of time and resources regarding reducing greenhouse gas emissions.

The Company’s efforts to support environmental sustainability include the following:

ESG Reporting and Greenhouse Gas Emissions Goal. The Company is in the process of developing a report describing material environmental, social and governance (“ESG”) risks and opportunities. As part of this process, the Company’s Chairman and CEO has committed the Company to adopt performance targets related to ESG matters. Although the specific greenhouse gas emissions target and the context of the target are still being developed, the Company expects to issue the report before the date of the 2021 annual meeting. The Company also expects to respond to the CDP (formerly the Carbon Disclosure Project) questionnaire for a private score in 2021, the Company’s first year of participation in CDP.

Facilities-based Sustainability Efforts. The Company has built a new headquarters in Stamford, Connecticut. Currently in the final construction phase, the two-building, approximately 800,000-square-foot campus will satisfy the requirements for LEED Silver certification and the site itself will achieve LEED ND Gold status. The Company continues to operate many LEED Certified Buildings, to emphasize energy efficiency of its facilities and the use of efficient energy sources.

Fleet Management-based Sustainability Efforts. With over 30,000 vehicles operated to serve customers and maintain our network, we are focusing on increasing the efficiency of our fleet, while increasing the ease and frequency of servicing our customers at the same time as reducing the need to dispatch vehicles. Although the use of fossil fuels in our vehicles is not material to the Company, we view our efforts to reduce the use of vehicles as having a benefit to the environment and helping create efficiency within our business.

Set-Top Box & Small Network Equipment Voluntary Agreements. The Company is a signee of the Set-Top Box and the Small Network Equipment Voluntary Agreements signed by the cable industry and equipment manufacturers, which include specific commitments and performance obligations for reducing energy consumption, reducing energy costs and CO2 emissions of set top boxes, modems, and routers. In August 2019, The Internet & Television Association announced that consumers had saved $5 billion, and more than 28.6 million metric tons of carbon dioxide (CO2) emissions had been avoided as a result of the voluntary set-top box energy conservation commitments of Pay-TV providers and manufacturers, according to a report issued by independent auditor D+R International.

Product Life Management. We actively manage the process of determining the proper next steps for equipment, including customer premise equipment, IT, batteries, network operations, critical infrastructure, and mobile equipment. The decision is typically made to reuse this equipment within the organization, resell marketable equipment, or to responsibly recycle non-marketable equipment.

The Company and the Board understand both the importance of operating in an environmentally responsible manner, and its positive impact on the Company’s operations, employees and the communities we serve. The Board does not believe that adopting this proposal, including holding an annual stockholder vote regarding the Company’s greenhouse gas emissions, is an effective use of time and resources. The Board believes that the interests of stockholders are better served through the ESG reporting the Company has undertaken and the Company’s current environmental initiatives and approach, with objectives tailored for the Company’s multiple businesses and locations and the Company’s ESG report, which we expect will be published before the stockholder meeting and include a greenhouse gas emissions target. As a result, our Board believes that adopting the proposal is unnecessary and is not in the best interests of our Company or our stockholders.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “AGAINST” THIS PROPOSAL.

Charter Communications        |    73    |        2021 Proxy Statement


Proposal No. 7: Stockholder Proposal Regarding

EEO-1 Reports

(Item 7 on Proxy Card)

This proposal was submitted by Calvert Research and Management, the beneficial owner of at least $2,000 worth of shares of our Class A common stock. The proposal reads as follows:

Proposal

WHEREAS:

Charter Communications is required to furnish an EEO-1 report – a comprehensive breakdown of its workforce by race and gender across 10 employment categories – to the United States Equal Employment Opportunity Council annually.

As intangible assets increasingly drive corporate value creation, investors seek a better understanding of human capital management strategy and performance. A lack of consistent disclosure of human capital practices makes it difficult for investors to evaluate corporate performance.

Detailed workforce diversity data is one critical component of transparency regarding human capital management. Diverse and inclusive teams are associated with greater employee engagement, increased attraction and retention of talent, and a sense of purpose in the workforce.

Disclosure of the EEO-1 report would enable the company to provide a more complete picture of its workforce without additional burdens on the company to collect data. Such disclosure would provide a platform for the company to describe the connection between human capital management and corporate strategy and facilitate informed engagement with investors.

Information about the effectiveness of a company’s diversity investments must be complete, comparable and consistent. Investors need annual disclosure of granular demographic data to know whether investments in diversity have paid off through changes in the numbers of people by race and gender at different levels of the company.

Annual EEO-1 disclosure enables an evaluation of company strengths and opportunities for improvement and performance trends, and facilitates comparison across firms.

Yet, Charter Communications does not provide this fundamental information to shareholders. Charter Communications describes a commitment to diversity and notes internal initiatives. However, the company does not disclose any demographic diversity data and such information is necessary to understand the company’s progress.

RESOLVED: Shareholders request that the Board of Directors adopt a policy requiring Charter Communications to disclose on its website the annual Consolidated EEO-1 Report. The company shall disclose its EEO-1 Report no later than 60 days after the date of its submission to the EEOC.

Supporting Statement

The global coronavirus pandemic and police brutality against African-Americans have heightened public concern about racial equity. Rising expectations of employees and other stakeholders that companies will make a meaningful commitment to racial equity in the workplace have strengthened the longstanding case for prioritizing diversity in the workplace. In particular, companies that signal their commitment to racial diversity through workforce transparency may be better positioned to attract and retain talent.

Underscoring the link between diversity and inclusion and human capital management, research from The Conference Board’s DNA of Engagement initiative argues synergy between employee engagement and inclusion is a key component of overall employee productivity and Deloitte highlights diversity as an important element in building and sustaining a strong sense of corporate purpose.12

A May 2020 report from McKinsey Diversity Wins: How Inclusion Matters found “that companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth quartile.”

1

https://conference-board.org/research/dna-of-engagement/executive-summary-how-organizations-can-alignengagement-inclusion

2

https://corpgov.law.harvard.edu/2020/09/16/the-workforce-takes-center-stage-the-boards-evolving-role/

Charter Communications        |    74    |        2021 Proxy Statement


Statement Against Stockholder Proposal Regarding EEO-1 Reports

The Company is committed to diversity and inclusion in every aspect of our business. Given our focus on diversity and inclusion, the adoption of the proposal to disclose our EEO-1 reports would not provide meaningful additional information of value to our stockholders, and so we oppose the proposal.

As we strive to deliver high-quality products and services that exceed our customers’ expectations, we embrace the unique perspectives and experiences of our employees and partners and the communities we serve. The Company’s commitment to diversity and inclusion and our efforts to support this commitment are described in our 2019 Corporate Responsibility Report and on our website at corporate.charter.com/diversity-inclusion. With this information, we believe that we have substantially addressed the concerns put forward by the proponent.

Our diversity and inclusion efforts are guided by our Executive Steering Committee for Diversity and Inclusion, External Diversity & Inclusion Council (EDIC) and Diversity & Inclusion team, with strong support from the executive leadership of the Company. Our Chairman and CEO leads our Executive Steering Committee, comprising all of the Company’s most senior leaders. The group regularly reviews progress against our diversity and inclusion strategy to ensure that both diversity and inclusion remain integral across our business. Our EDIC comprises national civic and business leaders who help us understand the critical needs of the diverse communities we serve and how to implement our programs in the most impactful way. Led by Charter’s Chief Diversity Officer, the Diversity & Inclusion team works across the organization to incorporate diversity and inclusion into everything that we do. Our Chairman and CEO also regularly meets with our EDIC.

We are proud of our workforce that reflects the full range of diversity and abilities in the markets we serve, and are actively working to promote diversity at every level of our organization. We foster an inclusive environment where employees feel respected, engaged, and able to reach their full potential. This also helps us meet the unique needs of our customers. We are striving to enhance diversity at every level of our organization, including among our senior leaders. Ultimately, our vision is to leverage the full diversity of our employees and partners as we continue to make a meaningful difference for our customers, company, and communities.

We partner with a number of industry organizations to recruit and develop diverse talent. For example, the Company sponsors employee memberships in Women in Cable Telecommunications (WICT) and National Association for Multi-Ethnicity in Communications (NAMIC) — both provide a range of skill-building and networking opportunities that facilitate career advancement. We also invest in the Emma Bowen Foundation, which facilitates internships for talented students of color at leading media companies like ours, as well as T. Howard Foundation, whose mission is to increase diversity in the media industry. In 2020, the Company also launched a new initiative, Spectrum Scholars, a two-year educational and mentorship program for underrepresented students with financial need. Each student will receive a $20,000 scholarship, a Charter professional mentor and the opportunity to explore an internship with the company.

This commitment to diversity means building and maintaining an inclusive environment where everyone feels valued. Our employees represent a wide range of perspectives and experience, and success on our commitment is measured by how well we integrate each individual’s unique self-understanding into our business, workforce, and relationships with our clients and employees. In 2019, we launched five Business Resource Groups (BRGs) focused on disability, LGBTQ, multicultural, veterans and women. These voluntary groups connect employees with shared characteristics, life experiences, and interests, and enable them to engage in activities that advance our culture of inclusion and contribute to business success. BRGs empower our team members to grow and succeed by providing networking, mentorship and skill-building opportunities. We also launched Charter Inclusion Talks, an internal speaker series built around cultural heritage and identity dates. The Talks, which are held across our footprint, raise awareness of the many identities and heritages that contribute to the Company’s success.

EEO-1 data is limited by a government form that categorizes our U.S. workforce into certain generic and EEOC-mandated job categories that fail to account for company or industry-specific roles. It is a backward-looking snapshot of limited categories, has little bearing on our business or the customers that we serve, and is not an accurate measure of progress toward our goal of developing an inclusive environment. The data is captured confidentially and voluntarily, based on each individual’s interpretation of the form’s limited categories. It omits many elements of diversity that are valuable to us and our workplace, including disability, age, sexual orientation, and military status, among others. As a result, the EEO-1 data is not reflective of the Company’s diversity and could be misconstrued in ways that could encumber our efforts to achieve greater diversity and inclusion.

Charter Communications        |    75    |        20212023 Proxy Statement


The Company is also in the process of developing a report describing material environmental, social and governance (“ESG”) risks and opportunities. As part of this process, the Company’s Chairman and CEO has committed the Company to adopt performance targets related to ESG matters. Charter’s ESG report will be built around Charter’s ESG framework, which will be described in the report and which includes our focus on our highly-skilled workforce. Within that element of our ESG framework, enabling a diverse and inclusive culture will be reported upon as a key element. The Company expects to issue the report before the date of the 2021 annual meeting.

These efforts evidence that the Company’s commitment to diversity and inclusion is vital to our continued success, our unique culture and our purpose of serving every client with passion and integrity. In light of our existing policies and disclosures with respect to diversity and inclusion, our Board does not believe that disclosing our EEO-1 reports would not provide meaningful additional information of value to our stockholders. As a result, our Board believes that adopting the proposal is unnecessary and is not in the best interests of our Company or our stockholders.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “AGAINST” THIS PROPOSAL.

Charter Communications        |    76    |        2021 Proxy Statement


CEO Pay Ratio

Charter’s CEO to Median Employee pay ratio for 20202022 was calculated pursuant to Item 402(u) of Regulation S-K, comparing total annual compensation for the CEO to that of the Median Employee. In 2020,2022, Charter identified a new Median Employee was identified for purposes of calculating our CEO Pay Ratio, as the prior analysis from which the Median Employee had been selected was conducted in 2017, and the regulations require that a Median Employee be identified once every three years. The Median Employee for 2020 was identified using the same methodology as in prior years and based on an analysis of the median 2020 2022 W-2 Box 1 income among the 96,100101,700 full and part-time U.S. employees, other than the CEO, who were actively employed by Charter as of December 31, 20202022 (Charter has no employees outside of the U.S.). No adjustments were applied to W-2 Box 1 income for purposes of determining the Median Employee, such as for employees who were employed for only part of the year or on unpaid leave of absence at some point during the year. Our

With respect to the CEO Total Annual Compensation used in calculating the CEO Pay Ratio, the role of CEO transitioned from Mr. Rutledge to Mr. Winfrey effective December 1, 2022, with Mr. Winfrey therefore serving as CEO as of December 31, 2022 when Charter determined the Median Employee. As permitted by Item 402(u), the CEO Pay Ratio was therefore calculated using Mr. Winfrey’s total compensation corresponding to his service as CEO, with such compensation annualized as if it had been in effect for the full year. The table below provides further detail regarding how the various pay elements disclosed in the Summary Compensation Table for Mr. Winfrey were annualized.

    Summary
Compensation
Table Value
   Value Annualized
for Time Period
as CEO
   Notes on Annualized Values
Base Salary   $1,359,038    $1,700,000   Full annual base salary provided as CEO
Option Awards   $12,001,909    $17,000,000   Annual equity opportunity as CEO (first applied in 2023)
Non-Equity Incentive Plan Compensation   $2,035,221    $3,282,700   Actual 2022 bonus paid as if target bonus opportunity as CEO had been in effect for the full year (target bonus of $4,250,000)
All Other Compensation   $230,799    $230,799   Assumes no changes to such compensation in connection with transition to CEO role; refer to the Summary Compensation Table for additional details on All Other Compensation
Total   $15,626,967    $22,213,499   The resulting annualized value for Mr. Winfrey is considered CEO Total Annual Compensation for purposes of calculating the CEO Pay Ratio

Charter’s CEO Pay Ratio is a reasonable estimate calculated in a manner consistent with Item 402(u). OurHowever, due to the flexibility afforded by Item 402(u) in calculating the CEO Pay Ratio, Charter’s CEO Pay Ratio may not be comparable to the CEO pay ratios presented by other companies.

For 2020,2022, the Median Employee had total annual compensation of $56,568,$55,429, calculated using the same methodology as applied for the CEONEOs in the Summary Compensation Table. Full-time Charter employees in the U.S., including the Median Employee, are also eligible to participate in Company-sponsored retirement and health and welfare benefits programs and receive complimentary cable services, which provide significant additional value but are not included in the measure of total annual compensation used to calculate the pay ratio.

The ratio of the CEO’s total annual compensation to that of the Median Employee was as follows:

 

CEO Total Annual Compensation

  $38,846,705   $22,213,499 

Median Employee Total Annual Compensation

  $56,568   $55,429 

Ratio of CEO to Median Employee Total Annual Compensation

   686.7    400.8 

Charter Communications        |    76    |        2023 Proxy Statement


Code of Ethics

We have adopted a Financial Code of Ethics within the meaning of federal securities regulations for our employees, including all executive officers and directors. We also established a hotline and website for reporting alleged violations of the Financial Code of Ethics, established procedures for processing complaints and implemented educational programs to inform our employees regarding the Financial Code of Ethics. A copy of our Financial Code of Ethics is available on the “Investor Relations” section of our website at ir.charter.com.ir.charter.com.

Delinquent Section 16(a) Reports

To the Company’s knowledge, with respect to the fiscal year ended December 31, 2022, all applicable filings were timely made, except that A/N and Michael Newhouse each filed a Form 4 one business day late with respect to a monthly share repurchase transaction. The lateness was due to an administrative error.

Charter Communications        |    77    |        2021 Proxy Statement


Stockholder Proposals for 20222024 Annual Meeting

To be included in the proxy statement for the 20222024 annual meeting, a stockholder proposal must be delivered to the Corporate Secretary at the Company’s executive offices no later than November 18, 2021.16, 2023. The federal proxy rules specify what constitutes timely submission and whether a stockholder proposal is eligible to be included in the proxy statement.

If a stockholder desires to bring business before the meeting that is not the subject of a proposal timely and properly submitted for inclusion in the proxy statement or to make a nomination of a person for election to the boardBoard of directors,Directors, the stockholder must follow procedures outlined in the Company’s Bylaws. One of the procedural requirements in the Bylaws is timely notice in writing of the business the stockholder proposes to bring before the meeting. To be timely with respect to the 20222024 annual meeting, such a notice must be delivered to the Company’s Corporate Secretary at the Company’s executive offices no earlier than January 1, 2022December 27, 2023 and no later than January 26, 2022.2024. However, in the event that the Company elects to hold its next annual meeting more than 30 days before or more than 70 days after the anniversary of this annual meeting, such stockholder proposals would have to be received by the Company not earlier than 120 days prior to the next annual meeting date and not later than the later of (i) 90 days prior to the next annual meeting date.date or (ii) the tenth day following the day on which public announcement of the date of such meeting is first made by the Company.

Such notice must include:include the information required by the Company’s Bylaws, including: (1) for a nomination for director, all information relating to such person that is outlined in the Company’s Bylaws, including all information required to be disclosed in a proxy for election of directors; (2) as to any other business, a description of the proposed business, the text of the proposal, the reasons therefore, and any material interest the stockholder may have in that business; and (3) certain information regarding the stockholder making the proposal. These requirements are separate from the requirements a stockholder must meet to have a proposal included in the Company’s proxy statement. In addition, stockholders who intend to solicit proxies in support of director nominees other than the Company’s nominees must also comply with the additional requirements of Rule 14a-19(b).The foregoing time limits also apply in determining whether notice is timely for purposes of rules adopted by the SEC relating to the exercise of discretionary voting authority.

Any stockholder desiring a copy of the Company’s Bylaws will be furnished one without charge upon written request to the Corporate Secretary. A copy of the amended and restated Bylaws was filed as an exhibit to the Company’s CurrentQuarterly Report on Form 8-K filed on May 19, 2016, together with the amendment filed as an exhibit to the Company’s Current Report on Form 8-K10-Q filed on July 30, 2018,29, 2022 and is available at the SEC Internet site (http:(http://www.sec.gov)www.sec.gov).

Other Matters

At the date of mailing of this proxy statement, we are not aware of any business to be presented at the annual meeting other than the matters discussed above. If other proposals are properly brought before the meeting, any proxies returned to us will be voted as the proxyholder sees fit.

Charter Communications        |    77    |        2023 Proxy Statement


Our Annual Report on Form 10-K for the year ended December 31, 20202022 is available without charge by accessing the “Investor Relations” section of our website at ir.charter.com.ir.charter.com. You also may obtain a copy of the Form 10-K, without exhibits, at no charge by writing to the Company at 400 Atlantic Street,Washington Blvd., Stamford, CT 06901,06902, Attention: Investor Relations.

In addition, certain financial and other related information, which is required to be furnished to our stockholders, is provided to stockholders concurrently with this Proxy Statement in our 20202022 Annual Report. The SEC has enacted a rule that allows the Company to deliver only one copy of our Proxy Statement and 20202022 Annual Report to multiple security holders sharing an address if they so consent. This is known as “householding.” The Householding Election,householding election, which appears on your proxy card, provides you with a means for you to notify us whether you consent to participate in householding. By marking “Yes” in the block provided, you will consent to participate in householding and by marking “no” you will withhold your consent to participate. If you do nothing, you will be deemed to have given your consent to participate in householding. Your consent to householding will be perpetual unless you withhold or revoke it. You may revoke your consent at any time by contacting Broadridge Financial Solutions (“Broadridge”), either by writing to Broadridge, Householding Department, 51 Mercedes Way, Edgewood, New York 11717, or by calling (800) 542-1061. We will remove you from the householding program, following which you will promptly receive an individual copy of our Annual Report and this Proxy Statement. Even if your household receives only one Annual Report and one Proxy Statement, a separate proxy card will be provided for each stockholder. If you vote using the proxy card, please sign and return it in the enclosed postage-paid envelope. If you vote by Internet or telephone, there is no need to mail the proxy card.

All trademarks used in this report remain the property of their respective owners.

 

Charter Communications        |    78    |        20212023 Proxy Statement


Appendix A: Non-GAAP Financial Measures


LOGOThe Company uses certain measures that are not defined by U.S. generally accepted accounting principles (“GAAP”) to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, below.

Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company’s businesses as well as other non-cash or special items, and is unaffected by the Company’s capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.

Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.

Management and Charter’s Board of Directors use Adjusted EBITDA and free cash flow to assess Charter’s performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company’s credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company’s debt covenants refer to these expenses as management fees, which were $1.4 billion and $1.3 billion for the years ended December 31, 2022 and 2021, respectively.

A reconciliation of Adjusted EBITDA and free cash flow to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, is as follows (dollars in millions):

CHARTER COMMUNICATIONS, INC.

400 ATLANTIC STREET

STAMFORD, CT 06901

VOTE BY INTERNET

Before The Meeting - Go to www.proxyvote.com

Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 p.m. Eastern Time on April 26, 2021 for shares held directly and by 11:59 p.m. Eastern Time on April 23, 2021 for shares held in a Plan. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

During The Meeting - Go to www.virtualshareholdermeeting.com/CHTR2021

You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions.

VOTE BY PHONE - 1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. Eastern Time on April 26, 2021 for shares held directly and by 11:59 p.m. Eastern Time on April 23, 2021 for shares held in a Plan. Have your proxy card in hand when you call and then follow the instructions.

VOTE BY MAIL

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

 

       Year Ended December 31,     
       2022           2021     

Net income attributable to Charter shareholders

  $5,055   $4,654 

Plus: Net income attributable to noncontrolling interest

   794    666 

 Interest expense, net

   4,556    4,037 

 Income tax expense

   1,613    1,068 

 Depreciation and amortization

   8,903    9,345 

 Stock compensation expense

   470    430 

 Other expenses, net

   225    430 
  

 

 

 

Adjusted EBITDA

  $21,616   $20,630 
  

 

 

 

Net cash flows from operating activities

  $14,925   $16,239 

Less: Purchases of property, plant and equipment

   (9,376   (7,635

 Change in accrued expenses related to capital expenditures

   553    80 
  

 

 

 

Free cash flow

  $6,102   $8,684 
  

 

 

 

The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.

Charter Communications        |    79    |        2023 Proxy Statement


         LOGO

        CHARTER COMMUNICATIONS, INC.

        400 WASHINGTON BLVD.

        STAMFORD, CT 06902

     LOGO

VOTE BY INTERNET - www.proxyvote.com or scan the QR Barcode above

Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 p.m. Eastern Time on April 24, 2023 for shares held directly and by 11:59 p.m. Eastern Time on April 21, 2023 for shares held in a Plan. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS

If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.

VOTE BY PHONE - 1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. Eastern Time on April 24, 2023 for shares held directly and by 11:59 p.m. Eastern Time on April 21, 2023 for shares held in a Plan. Have your proxy card in hand when you call and then follow the instructions.

VOTE BY MAIL

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:

V00503-P87861-Z84450                 KEEP THIS PORTION FOR YOUR RECORDS

D38634-P50449-Z79225

     KEEP THIS PORTION FOR YOUR RECORDS

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

DETACH AND RETURN THIS PORTION ONLY

THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

DETACH AND RETURN THIS PORTION ONLY

 

    CHARTER COMMUNICATIONS, INC. 

CHARTER COMMUNICATIONS, INC.

 

The Board of Directors recommends you vote FOR the
following:

    1.Election of Directors
Nominees:ForAgainstAbstain
1a.W. Lance Conn
1b.Kim C. Goodman
1c.Craig A. Jacobson
1d.Gregory B. Maffei
1e.John D. Markley, Jr.
1f.David C. Merritt
1g.James E. Meyer
1h.Steven A. Miron
1i.Balan Nair
1j.Michael A. Newhouse
1k.Mauricio Ramos
1l.Thomas M. Rutledge
1m.Eric L. Zinterhofer
    
      
      

1.

Election of Directors

  For Against Abstain

Nominees:

ForAgainstAbstain

1a.  W. Lance Conn

The Board of Directors recommends you vote FOR proposal 2:ForAgainstAbstain
  

1b.  Kim C. Goodman2.  Approval, on an advisory basis, of executive compensation.

The Board of Directors recommends you vote 3 Years on the following proposal:3 Years2 Years1 YearAbstain

3.  An advisory vote on the frequency of holding an advisory vote on executive compensation.

1c.  Craig A. Jacobson

  

For
 

Against
 

Abstain
The Board of Directors recommends you vote FOR proposal 4:  2. 

4.  The ratification of the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2021.2023.

1d.  Gregory B. Maffei


The Board of Directors recommends you vote AGAINST proposals 3, 4, 5, 6 and 7:

1e.  John D. Markley, Jr.

   
The Board of Directors recommends you vote AGAINST proposal 5:  

3.

 

5.  Stockholder proposal regarding lobbying activities.

  ☐

1f.   David C. Merritt

   

4.

Stockholder proposal regarding Chairman of the Board and CEO roles.

  ☐

1g.  James E. Meyer

5.

Stockholder proposal regarding diversity and inclusion efforts.

  ☐

1h.  Steven A. Miron

6.

Stockholder proposal regarding disclosure of greenhouse gas emissions.

1i.   Balan Nair

7.

Stockholder proposal regarding EEO-1 reports.

1j.   Michael A. Newhouse

NOTE: Such other business as may properly come before the meeting or any adjournment thereof in accordance with Charter’s bylaws.

   

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

  

1k.  Mauricio Ramos

1l.   Thomas M. Rutledge

1m.  Eric L. Zinterhofer

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

Signature [PLEASE SIGN WITHIN BOX]

 

Date

 
 
Signature (Joint Owners)Date 

Signature (Joint Owners)

Date


 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:

The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.

 

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

D38635-P50449-Z79225V00504-P87861-Z84450          

 

CHARTER COMMUNICATIONS, INC.

Annual Meeting of Stockholders

April 27, 2021 10:25, 2023 8:30 AM EasternMountain Daylight Time

This proxy is solicited by the Board of Directors

The stockholders hereby appoint Thomas M. Rutledge,Christopher L. Winfrey, Richard R. Dykhouse and Thomas E. Proost or any of them, as proxies, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of Class A common stock of Charter Communications, Inc. that the stockholders are entitled to vote at the Annual Meeting of Stockholders to be held at 10:8:30 AM, EasternMountain Daylight Time on April 27, 2021, via virtual meeting25, 2023, at www.virtualshareholdermeeting.com/CHTR2021,6350 S. Fiddler’s Green Circle, 2nd Floor (Conference Room C), Greenwood Village, CO 80111, and any adjournment or postponement thereof.

This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors’ recommendations.

Continued and to be signed on reverse side


         LOGO

        CHARTER COMMUNICATIONS, INC.

        400 WASHINGTON BLVD.

        STAMFORD, CT 06902

     LOGO

VOTE BY INTERNET - www.proxyvote.com or scan the QR Barcode above

Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 p.m. Eastern Time on April 24, 2023 for shares held directly and by 11:59 p.m. Eastern Time on April 21, 2023 for shares held in a Plan. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS

If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.

VOTE BY PHONE - 1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. Eastern Time on April 24, 2023 for shares held directly and by 11:59 p.m. Eastern Time on April 21, 2023 for shares held in a Plan. Have your proxy card in hand when you call and then follow the instructions.

VOTE BY MAIL

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

 

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:


LOGOV00505-P87861-Z84450                     KEEP THIS PORTION FOR YOUR RECORDS

CHARTER COMMUNICATIONS, INC.

400 ATLANTIC STREET

STAMFORD, CT 06901

VOTE BY INTERNET

Before The Meeting - Go to www.proxyvote.com

Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 p.m. Eastern Time on April 26, 2021 for shares held directly. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

During The Meeting - Go to www.virtualshareholdermeeting.com/CHTR2021

You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions.

VOTE BY PHONE - 1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. Eastern Time on April 26, 2021 for shares held directly. Have your proxy card in hand when you call and then follow the instructions.

VOTE BY MAIL

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:

D38636-P50449-Z79225

     KEEP THIS PORTION FOR YOUR RECORDS

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

DETACH AND RETURN THIS PORTION ONLY

THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

DETACH AND RETURN THIS PORTION ONLY

 

    CHARTER COMMUNICATIONS, INC. 

CHARTER COMMUNICATIONS, INC.

 
 

The Board of Directors recommends you vote FOR the
following:

    1.Election of Directors
Nominees:ForAgainstAbstain
1a.W. Lance Conn
1b.Kim C. Goodman
1c.Craig A. Jacobson
1d.Gregory B. Maffei
1e.John D. Markley, Jr.
1f.David C. Merritt
1g.James E. Meyer
1h.Steven A. Miron
1i.Balan Nair
1j.Michael A. Newhouse
1k.Mauricio Ramos
1l.Thomas M. Rutledge
1m.Eric L. Zinterhofer
    
      
      

1.

Election of Directors

  For Against Abstain

Nominees:

ForAgainstAbstain

1a.  W. Lance Conn

The Board of Directors recommends you vote FOR proposal 2:ForAgainstAbstain
  

1b.  Kim C. Goodman2.  Approval, on an advisory basis, of executive compensation.

The Board of Directors recommends you vote 3 Years on the following proposal:3 Years2 Years1 YearAbstain

3.  An advisory vote on the frequency of holding an advisory vote on executive compensation.

1c.  Craig A. Jacobson

  

For
 

Against
 

Abstain
The Board of Directors recommends you vote FOR proposal 4:  2. 

4.  The ratification of the appointment of KPMG LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2021.

2023.

 

 

 

1d.  Gregory B. Maffei


The Board of Directors recommends you vote AGAINST proposals 3, 4, 5, 6 and 7:

proposal 5:
   

1e.  John D. Markley, Jr.

3.

5.  Stockholder proposal regarding lobbying activities.

 

1f.   David C. Merritt

4.

 

Stockholder proposal regarding Chairman of the Board and CEO roles.

1g.  James E. Meyer

5.

 

Stockholder proposal regarding diversity and inclusion efforts.

1h.  Steven A. Miron

6.

Stockholder proposal regarding disclosure of greenhouse gas emissions.

1i.   Balan Nair

7.

Stockholder proposal regarding EEO-1 reports.

1j.   Michael A. Newhouse

NOTE: Such other business as may properly come before the meeting or any adjournment thereof in accordance with Charter’s bylaws.

   

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

   

1k.  Mauricio Ramos

1l.   Thomas M. Rutledge

1m.  Eric L. Zinterhofer

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

Signature [PLEASE SIGN WITHIN BOX]

 

Date

  
 
Signature (Joint Owners)Date 

Signature (Joint Owners)

Date


 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:

The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.

 

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 

D38637-P50449-Z79225V00506-P87861-Z84450          

 

CHARTER COMMUNICATIONS, INC.

Annual Meeting of Stockholders

April 27, 2021 10:25, 2023 8:30 AM EasternMountain Daylight Time

This proxy is solicited by the Board of Directors

The stockholders hereby appoint Thomas M. Rutledge,Christopher L. Winfrey, Richard R. Dykhouse and Thomas E. Proost or any of them, as proxies, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of Class B common stock of Charter Communications, Inc. that the stockholders are entitled to vote at the Annual Meeting of Stockholders to be held at 10:8:30 AM, EasternMountain Daylight Time on April 27, 2021, via virtual meeting25, 2023, at www.virtualshareholdermeeting.com/CHTR2021,6350 S. Fiddler’s Green Circle, 2nd Floor (Conference Room C), Greenwood Village, CO 80111, and any adjournment or postponement thereof.

This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors’ recommendations.

Continued and to be signed on reverse side