Corporate Governance & Nominating

Purposes

The primary purposes of the Corporate Governance and Nominating Committee (the "Committee") of the Board of Directors (the "Board") of Reynolds American Inc. ("RAI") shall be to:

1. identify individuals qualified to become members of the Board, consistent with criteria approved by the Board;
   
   
2. recommend candidates to fill vacancies and newly created director positions on the Board;
   
   
3. recommend whether incumbent directors should be nominated for re-election to the Board upon expiration of their terms;
   
   
4. recommend candidates to serve as members and the chairs of the committees of the Board;
   
   
5. recommend candidates to serve as Lead Director;
   
   
6. develop and recommend corporate governance guidelines applicable to RAI and its subsidiaries;
   
   
7. oversee the annual evaluation of the Board, the committees of the Board, the Lead Director, and, in conjunction with the Lead Director, individual members of the Board (other than the Chief Executive Officer of the Company, whose evaluation shall be conducted by the Compensation and Leadership Development Committee); and
   
   
8. oversee succession planning for the Chief Executive Officer of the Company.

Composition of the Corporate Governance and Nominating Committee

Number. The Committee shall consist of no fewer than three members, the exact number of which will be determined from time to time by the Board.

Qualifications. Each Committee member shall meet the independence criteria of the rules of the New York Stock Exchange, Inc., as such requirements are interpreted by the Board in its business judgment and as set forth in RAI's Corporate Governance Guidelines.

Appointment and Removal. The Board will appoint the members and the Chair of the Committee based on nominations made by the Committee. Each Committee member shall serve at the pleasure of the Board for such term or terms as the Board may determine or until such Committee member is no longer a member of the Board.

Specific Powers, Duties and Responsibilities of the Corporate Governance and Nominating Committee

The Committee shall have the following specific powers, duties and responsibilities:

1. review the qualifications of candidates for nomination to the Board and committees of the Board (whether by members of the Board, management, shareholders or any other person and whether for nomination, re-election or appointment to fill a vacancy); and review and evaluate any shareholder proposals relating to the nomination by shareholders of any candidates to the Board or the right of any shareholder to do so. In recommending candidates, the Committee shall consider such factors as it deems appropriate, consistent with the factors in RAI's Corporate Governance Guidelines. These factors may include judgment, skill, diversity, integrity, public company board experience, experience with businesses and other organizations of comparable size, the interplay of the candidate's experience with the experience of other Board members and the extent to which the candidate would be a desirable addition to the Board and any committee of the Board;
   
   
2. recommend to the Board nominees for election as directors;
   
   
3. review the appropriateness of continued service on the Board of members whose circumstances, including business or professional affiliations or responsibilities, have changed or who have accepted a directorship on another public company board or an appointment to an audit or compensation committee of another public company board. In reviewing the appropriateness of a member's continued service of the Board after such member's acceptance of a directorship on another public company board or an appointment to an audit or compensation committee of another public company board, the Committee shall consider the time commitment required by such new position, and whether such appointment would cause a compensation committee interlock or participation on more than three public company audit committees;
   
   
4. establish and oversee the orientation process for newly elected members of the Board and assist the Board in its implementation;
   
   
5. regularly assess the adequacy of and need for additional continuing director education programs;
   
   
6. review and evaluate annually and recommend the processes and practices through which the Board shall conduct its business, including (a) the structure, charter, operations (including authority to delegate to subcommittees) and membership of committees of the Board, (b) committee member qualifications, appointment and removal; and (c) the assignment of various oversight responsibilities and activities of the committees of the Board;
   
   
7. periodically review and recommend to the Board the form and amount of director compensation (including perquisites and other benefits), and any additional compensation to be paid for service on committees of the Board or for service as chair of a committee or as Lead Director. In making its recommendations, the Committee shall give due consideration to what is customary compensation for directors of comparable companies and any other factors it deems appropriate that are consistent with the policies and principles set forth in this Charter and RAI's Corporate Governance Guidelines;
   
   
8. administer, interpret, amend or terminate all plans or programs relating to director equity and benefit plans, including but not limited to the Equity Incentive Award Plan for Directors of Reynolds American Inc. and the Deferred Compensation Plan for Directors of Reynolds American Inc., and establish and oversee compliance with director equity ownership guidelines;
   
   
9. initiate and oversee annually an appraisal of the performance of the Board in meeting its corporate governance responsibilities;
   
   
10. review RAI's Corporate Governance Guidelines, consider the adequacy of such Guidelines in response to shareholder concerns and make recommendations to the entire Board with respect to such Guidelines;
    
    
11. regularly review and report to the Board on succession planning for the Chief Executive Officer of the Company;
    
    
12. after consultation with the Chairman of the Board, who shall individually discuss with each Director such Director's preferences for appointment as Lead Director, recommend to the Board candidates for appointment as Lead Director;
    
    
13. initiate and oversee annually the evaluation of the Lead Director with input from all of the members of the Board;
    
    
14. report through its Chair to the Board following the meetings of the Committee; and
    
    
15. perform any other duties or responsibilities delegated to the Committee by the Board from time to time.

Delegation

The Committee may, in its discretion, delegate such of its powers, duties and responsibilities as it deems appropriate to subcommittees it establishes.

Meetings of the Corporate Governance and Nominating Committee

The Committee shall meet in person or telephonically as frequently as necessary to comply with its responsibilities as set forth in this Charter. The Chair of the Committee shall, in consultation with the other members of the Committee and appropriate officers of RAI, be responsible for calling meetings of the Committee, and establishing agendas for, and supervising the conduct of, such meetings. A majority of the number of Committee members will constitute a quorum for conducting business at a meeting of the Committee. The act of a majority of the Committee members present at a Committee meeting at which a quorum is in attendance will be the act of the Committee, unless a greater number is required by law or by RAI's Articles of Incorporation or By-Laws. The Committee also may take any action permitted under this Charter by unanimous written consent in lieu of action taken at a meeting, which consent may be in electronic form and delivered by electronic means.

At the beginning of each year, the Committee shall create a calendar for the work of the Committee for the ensuing year. The Committee shall maintain minutes or other records of meetings and activities of the Committee.

The Committee may request any officer or employee of RAI or its subsidiaries, or RAI's outside legal counsel or other advisors, to attend a meeting of the Committee or to meet with any members of, or consultants to, the Committee.

Resources and Authority of the Corporate Governance and Nominating Committee

The Committee shall have appropriate resources and authority to discharge its responsibilities, including, without limitation, appropriate funding, in such amounts as the Committee deems necessary, to compensate any consultants or any other advisors retained by the Committee. The Committee shall have the sole authority to retain and terminate any search firm to be used to identify director candidates and the sole authority to approve the fees and other retention terms of such search firms. The Committee also shall have the sole authority to retail and terminate compensation consultants, or to use compensation consultants retained by the Compensation and Leadership Development Committee, and the sole authority to approve the fees and other retention terms of such compensation consultants. In addition, the Committee may retain independent legal counsel and other independent advisors to assist it in carrying out its responsibilities.

Annual Review and Amendment of Charter

The Committee shall review and evaluate, at least annually, this Charter and shall recommend to the Board for approval any changes to the Charter as the Committee, in its business judgment, deems necessary or appropriate.

Annual Performance Evaluation

The Committee shall conduct and review with the Board annually an evaluation of the Committee's performance with respect to the requirements of this Charter. The Committee may conduct this performance evaluation in such manner as the Committee, in its business judgment, deems necessary or appropriate.

Adopted: July 28, 2004
Last Revised: May 7, 2010

Download PDF   12.3 KB  

Committee Members

H.G.L. (Hugo) Powell
Martin D. Feinstein
Nana Mensah
Thomas C. Wajnert