Stockholder Proposal on Executive Compensation Information

Resolved: stockholders recommend that Applied Materials, Inc. (the Company) improve the method to disclose the Company’s executive compensation information with their actual compensation.

Supporting Statement

The Summary Compensation Table disclosed from our 2017 Proxy Statement shows that our CEO was awarded total compensation $16,425,005 in 2014, $18,092,808 in 2015, and $19,680,422 in 2016, of which the stock awards were $10,818,374 (60%) in 2015, $11,111,985 (56%) in 2016 (p.38).  However, this information is not based on realized pay.  The Stock Awards in the Summary Compensation Table “Amounts shown do not reflect compensation actually received by the executive officer” (note (3)).  According to the Wall Street Journal: "Summary compensation tables massively understate what executives earn and don't tell investors what they need to know." "In 2015—the last year for which full data is available—the average pay of the 500 highest-paid U.S. executives was $17.1 million according to fair-value estimates, but $32.6 million according to realized pay." (Better Ways to Measure Your Boss’s Pay by Stephen Wilmot, July 4, 2017.)

What is the meaning of the corporate governance and social responsibility without the disclosure of the Company executives’ actual compensation?