Our Business Practices
We adhere to the highest standards of corporate governance and ethical conduct. We believe that accountability, transparency and good decision-making support our business, serve our customers and create value for our shareholders.
Nominating and Governance Committee Charter
The Nominating and Governance Committee (the "Committee") is appointed by the Board of Directors (the "Board") of Discover Financial Services (the "Company") to (1) identify individuals qualified to become Board members, and to recommend to the Board the director nominees for the next annual meeting of shareholders and to fill any vacancies; (2) develop and recommend to the Board corporate governance principles applicable to the Company; (3) oversee the evaluation of the Board, its committees and management; and (4) exercise and perform the authority, duties and responsibilities of the Committee set forth in this charter.
- The Committee shall be comprised of at least three (3) Board members appointed by the Board. Committee members shall serve at the pleasure of the Board and for such term as the Board determines. The Board shall designate one Committee member as the Committee's chair.
- Each Committee member shall have no material relationship with the Company and shall otherwise satisfy the independence requirements of the Company set forth in the Company's Corporate Governance Policies and the New York Stock Exchange.
- The Committee shall hold regular meetings at least twice per year and report to the Board on a regular basis. The Committee may also meet periodically in separate executive sessions, as it deems appropriate.
- The Committee may form and delegate to one or more subcommittees all or any portion of the Committee's authority, duties and responsibilities, and may establish such rules as it determines necessary or appropriate to conduct the Committee's business.
- The Committee shall have direct access to, and complete and open communication with, management and may obtain advice and assistance from internal legal, accounting or other advisors to assist it. The Committee may retain independent legal, accounting or other advisors to assist it, and may determine compensation for such advisors, and the Company shall be responsible for any costs or expenses so incurred.
Authority, Duties and Responsibilities
The Committee shall:
- Actively seek individuals qualified to become Board members for recommendation to the Board. The Committee shall identify individuals qualified to become Board members consistent with the Board membership criteria set forth in the Company's Corporate Governance Policies. The Committee may consider director candidates proposed by shareholders or management. Consistent with the retirement policy set forth in the Corporate Governance Policies of the Company, the Company does not have established term limits or a set retirement age for directors. The Committee and the Board favor evaluation of each director annually, taking into account the results of the Board's most recent self-evaluation, the results of voting by shareholders in director elections, the director's participation in and contributions to the activities of the Board and any other factors deemed appropriate by the Committee and the Board.
- Recommend to the Board the director nominees for the next annual meeting of shareholders. In the case of a vacancy in the office of a director (including a vacancy created by an increase in the size of the Board), the Committee shall recommend to the Board an individual to fill such vacancy (and, if applicable, the class of directors in which the individual should serve).
- Ensure that programming for the orientation of new directors and the continuing education of incumbent directors is available.
- Oversee the evaluation of the Board, its committees and management.
- Annually review and assess the adequacy of the Company's Corporate Governance Policies and, if appropriate, recommend changes to the Corporate Governance Policies to the Board.
- Review effectiveness of director compensation and benefits programs in supporting the Company's ability to attract, retain and motivate qualified directors. If appropriate, recommend changes to the Board.
- Recommend to the Board director nominees for each Board committee, including committee members to fill vacancies as needed. In nominating a director for a committee membership, the Committee shall take into consideration the factors set forth in that committee's charter, if any, and other factors it deems appropriate, including without limitation the interplay of the candidate's experience with the experience of other committee members.
- Recommend to the Board changes that the Committee believes desirable to the size of the Board or any committee thereof, or to the Board's committee structure.
- As it determines appropriate, consider matters of corporate governance and make recommendations to the Board regarding, or take action with respect to, such matters.
- Review and consider approval, or ratify, any related person transactions.
- Review and evaluate annually its performance and report the results to the Board.
- Review and assess annually the adequacy of this charter and, if appropriate, recommend changes to the charter to the Board.
- Retain and terminate, in its sole discretion, any search firm used to identify director candidates and any compensation consultant used to assist in the evaluation of director compensation, and approve the fees and other retention terms for such firms and consultants.
- Have such other authority, duties or responsibilities as may be delegated to the Committee by the Board.
As Amended: February 21, 2019