Table of Contents

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
[Amendment No. ]
FiledbytheRegistrantx
FiledbyaPartyotherthantheRegistrant
Checktheappropriatebox:

PreliminaryProxyStatement

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

DefinitiveProxyStatement

DefinitiveAdditionalMaterials

SolicitingMaterialunder240.14a-12

MOODYS CORPORATION
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)

PaymentofFilingFee(Checktheappropriatebox):
x

Nofeerequired.

FeecomputedontablebelowperExchangeActRules14a-6(i)(1)and0-11.
(1)

Titleofeachclassofsecuritiestowhichtransactionapplies:

(2)

(3)

(4)

(5)

Proposedmaximumaggregatevalueoftransaction:

PerunitpriceorotherunderlyingvalueoftransactioncomputedpursuanttoExchangeActRule0-11(Setforththeamountonwhichthefilingfeeis
calculatedandstatehowitwasdetermined):

Aggregatenumberofsecuritiestowhichtransactionapplies:

Totalfeepaid:

Feepaidpreviouslywithwrittenpreliminarymaterials.

CheckboxifanypartofthefeeisoffsetasprovidedbyExchangeActRule0-11(a)(2)andidentifythefilingforwhichtheoffsettingfeewaspaid
previously.Identifythepreviousfilingbyregistrationstatementnumber,ortheFormorScheduleandthedateofitsfiling.
(1)

AmountPreviouslyPaid:

(2)

(3)

(4)

FilingParty:

FormScheduleorRegistrationStatementNo.:

DateFiled:

Table of Contents

March2,2016

DearStockholder:
Youarecordiallyinvitedtoattendthe2016AnnualMeetingofStockholdersofMoodysCorporationtobeheldonTuesday,April12,2016,at9:30a.m.
EDTattheCompanysofficesat7WorldTradeCenterat250GreenwichStreet,NewYork,NewYork.
TheNoticeofAnnualMeetingandProxyStatementaccompanyingthisletterdescribethebusinesstobeacteduponatthemeeting.TheAnnualReportfor
theyearendedDecember31,2015isalsoenclosed.
OnMarch2,2016,wemailedtomanyofourstockholdersaNoticeofInternetAvailabilityofProxyMaterials(theNotice)containinginstructionsonhow
toaccessour2016ProxyStatementand2015AnnualReportandvoteonline.TheNoticeincludedinstructionsonhowtorequestapaperore-mailcopyofthe
proxymaterials,includingtheNoticeofAnnualMeeting,ProxyStatement,AnnualReport,andproxycardorvotinginstructioncard.Stockholderswhorequested
papercopiesoftheproxymaterialsorpreviouslyelectedtoreceivetheproxymaterialselectronicallydidnotreceiveaNoticeandwillreceivetheproxymaterials
intheformatrequested.
Yourvoteisimportant.Whetherornotyouplantoattendtheannualmeeting,weencourageyoutoreviewtheproxymaterialsandhopeyouwillvoteas
soonaspossible.YoumayvotebyproxyovertheInternetorbytelephonebyusingtheinstructionsprovidedintheNotice.Alternatively,ifyourequestedand
receivedpapercopiesoftheproxymaterialsbymail,youcanalsovotebymailbyfollowingtheinstructionsontheproxycardorvotinginstructioncard.Voting
overtheInternet,bytelephoneorbywrittenproxyorvotinginstructioncardwillensureyourrepresentationattheannualmeetingregardlessofwhetheryouattend
inperson.InstructionsregardingthethreemethodsofvotingarecontainedintheNoticeorproxycardorvotinginstructioncard.

Sincerely,

HenryA.McKinnell,Jr.
Chairman
of
the
Board

RaymondW.McDaniel,Jr.
President
and
Chief
Executive
Officer

Table of Contents

MOODYS CORPORATION
7 World Trade Center
250 Greenwich Street
New York, New York 10007
NOTICE OF 2016 ANNUAL MEETING OF STOCKHOLDERS
ToOurStockholders:
The2016AnnualMeetingofStockholdersofMoodysCorporationwillbeheldonTuesday,April12,2016,at9:30a.m.EDTattheCompanysofficesat7
WorldTradeCenterat250GreenwichStreet,NewYork,NewYork,forthefollowingpurposes,allasmorefullydescribedintheaccompanyingProxyStatement:

1.

ToelecttheninedirectorsnamedintheProxyStatementtoserveaone-yearterm;

2.

ToratifytheappointmentofKPMGLLPastheindependentregisteredpublicaccountingfirmoftheCompanyfortheyear2016;

3.

Tovoteonanadvisoryresolutionapprovingexecutivecompensation;and

4.

Totransactsuchotherbusinessasmayproperlycomebeforethemeeting.

TheBoardofDirectorsoftheCompanyhasfixedthecloseofbusinessonFebruary17,2016astherecorddateforthedeterminationofstockholdersentitled
tonoticeof,andtovoteat,themeeting.

ByOrderoftheBoardofDirectors,

JaneB.Clark
Corporate
Secretary
March2,2016

Table of Contents

IMPORTANT VOTING INFORMATION

Your Participation in Voting the Shares You Own Is Important
Ifyouarethebeneficialownerofyourshares(meaningthatyoursharesareheldinthenameofabank,brokerorothernominee),youmayreceiveaNotice
ofInternetAvailabilityofProxyMaterialsfromthatfirmcontaininginstructionsthatyoumustfollowinorderforyoursharestobevoted.Certaininstitutionsoffer
telephoneandInternetvoting.Ifyoureceivedtheproxymaterialsinpaperform,thematerialsincludeavotinginstructioncardsoyoucaninstructtheholderof
recordonhowtovoteyourshares.Thefirmthatholdsyoursharesisnotpermittedtovoteonthematterstobeconsideredatthe2016AnnualMeetingof
Stockholders,otherthantoratifytheappointmentofKPMGLLP,unlessyouprovidespecificinstructionsbyfollowingtheinstructionsfromyourbrokerabout
votingyoursharesbytelephoneorInternetorcompletingandreturningthevotinginstructioncard.Foryourvotetobecountedintheelectionofdirectorsandon
theadvisoryresolutionapprovingexecutivecompensation,youwillneedtocommunicateyourvotingdecisionstoyourbank,brokerorotherholderofrecord
beforethedateoftheannualmeeting.
VotingyoursharesisimportanttoensurethatyouhaveasayinthegovernanceoftheCompanyandtofulfilltheobjectivesofthemajorityvotingstandard
thatMoodysCorporationappliesintheelectionofdirectors.Pleasereviewtheproxymaterialsandfollowtherelevantinstructionstovoteyourshares.Wehope
youwillexerciseyourrightsandfullyparticipateasastockholderinthefutureofMoodysCorporation.
More Information Is Available
Ifyouhaveanyquestionsaboutthevotingofyoursharesortheproxyvotingprocessingeneral,pleasecontactthebank,brokerorothernomineethrough
whichyouholdyourshares.TheSECalsohasawebsite(http://www.sec.gov/spotlight/proxymatters.shtml)withmoreinformationaboutvotingatannual
meetings.Additionally,youmaycontacttheCompanysInvestorRelationsDepartmentbysendingane-mailtoir@moodys.com
.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS
FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON APRIL 12, 2016
The Proxy Statement and the Companys 2015 Annual Report to Stockholders are available at https://materials.proxyvote.com/615369. Your vote is very
important. Whether or not you plan to attend the annual meeting, we hope you will vote as soon as possible. You may vote your shares via a toll-free
telephone number or over the Internet as instructed in the Notice of Internet Availability of Proxy Materials. Alternatively, if you received a paper copy
of a proxy or voting instruction card by mail, you may submit your proxy or voting instruction card for the annual meeting by completing, signing, dating
and returning your proxy or voting instruction card in the pre-addressed envelope provided. No postage is required if mailed in the United States. If you
attend the meeting, you may vote in person, even if you have previously returned your proxy or voting instruction card or voted by telephone or the
Internet.

Table of Contents

TABLE OF CONTENTS

ANNUAL MEETING OF STOCKHOLDERS

General
AnnualMeetingAdmission
InternetAvailabilityofProxyMaterials
RecordDate
HowtoVote
SpecialVotingProceduresforCertainCurrentandFormerEmployees
QuorumandVotingRequirements
Proxies
DeliveryofDocumentstoStockholdersSharinganAddress

Page

1
1
1
1
1
2
2
2
3
4
4
4
5
5
6
6
8
8
8
9
9
9

CORPORATE GOVERNANCE
BoardMeetingsandCommittees
RecommendationofDirectorCandidates
BoardLeadershipStructure
CodesofBusinessConductandEthics
DirectorIndependence
TheBoardsRoleintheOversightofCompanyRisk
ExecutiveSessions
CommunicationswithDirectors
SuccessionPlanning
Anti-HedgingandAnti-PledgingPolicy
Rule10b5-1TradingPlans

THE AUDIT COMMITTEE

AUDIT COMMITTEE REPORT

11

THE GOVERNANCE AND COMPENSATION COMMITTEE

11

REPORT OF THE GOVERNANCE AND COMPENSATION COMMITTEE

12

RELATIONSHIP OF COMPENSATION PRACTICES TO RISK MANAGEMENT

13

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

13

COMPENSATION OF DIRECTORS
StockOwnershipGuidelinesforNon-ManagementDirectors
1998Non-EmployeeDirectorsStockIncentivePlan

14
15
15

ITEM 1ELECTION OF DIRECTORS

QualificationsandSkillsofDirectors
DirectorNominees

16
16
18

ITEM 2RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS

21

PRINCIPAL ACCOUNTING FEES AND SERVICES

22

ITEM 3ADVISORY RESOLUTION APPROVING EXECUTIVE COMPENSATION

22

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Section16(a)BeneficialOwnershipReportingCompliance

25
26

Table of Contents

Page

SUMMARY COMPENSATION TABLE

48

GRANTS OF PLAN-BASED AWARDS TABLE FOR 2015

51

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END TABLE FOR 2015

52

OPTION EXERCISES AND STOCK VESTED TABLE FOR 2015

53

PENSION BENEFITS TABLE FOR 2015

MoodysCorporationRetirementAccount
MoodysCorporationPensionBenefitEqualizationPlan
MoodysCorporationSupplementalExecutiveBenefitPlan
MoodysUKGroupPersonalPensionPlan

NONQUALIFIED DEFERRED COMPENSATION TABLE

MoodysCorporationDeferredCompensationPlan

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL

MoodysCorporationCareerTransitionPlan
MoodysCorporationChangeinControlSeverancePlan
OtherPotentialPaymentsUponTerminationofEmployment

OTHER BUSINESS

62

STOCKHOLDER PROPOSALS FOR 2017 ANNUAL MEETING

62

COMPENSATION DISCUSSION AND ANALYSIS

ExecutiveSummary
GovernanceHighlights
PhilosophyoftheExecutiveCompensationProgram
ElementsofMoodysCompensationProgram
2015CompensationDecisions
AdditionalExecutiveCompensationPoliciesandPractices

ii

27
27
28
28
29
33
44

54
55
55
56
56

57
57
58
58
60
60

Table of Contents

PROXY STATEMENT
ANNUAL MEETING OF STOCKHOLDERS
OF MOODYS CORPORATION
General
ThisProxyStatementisbeingfurnishedtotheholdersofthecommonstock,parvalue$0.01pershare(theCommonStock),ofMoodysCorporation
(MoodysortheCompany)inconnectionwiththesolicitationofproxiesbytheBoardofDirectorsoftheCompany(theBoardofDirectorsortheBoard)
foruseinvotingattheAnnualMeetingofStockholdersoranyadjournmentorpostponementthereof(theAnnualMeeting).TheAnnualMeetingwillbeheldon
Tuesday,April12,2016,at9:30a.m.EDTattheCompanysprincipalexecutiveofficeslocatedat7WorldTradeCenterat250GreenwichStreet,NewYork,New
York10007.ToobtaindirectionstoattendtheAnnualMeetingandvoteinperson,pleasecontacttheCompanysInvestorRelationsDepartmentbysendinganemailtoir@moodys.com
.ThisProxyStatementandtheaccompanyingproxycardarefirstbeingmadeavailabletostockholdersonoraboutMarch2,2016.The
Companystelephonenumberis(212)553-0300.
Annual Meeting Admission
StockholderswillneedanadmissiontickettoentertheAnnualMeeting.Forstockholdersofrecord,anadmissionticketisavailableovertheInternet,or,if
yourequestedpapercopies,youwillreceiveaprintedproxycardandaprintedadmissionticket.IfyouplantoattendtheAnnualMeetinginperson,pleaseretain
andbringtheadmissionticket.
Ifyouarethebeneficialownerofyourshares(meaningthatyoursharesareheldinthenameofabank,brokerorothernominee)andyouplantoattendthe
AnnualMeetinginperson,youmayobtainanadmissionticketinadvancebysendingawrittenrequest,alongwithproofofshareownershipsuchasabankor
brokerageaccountstatement,totheCorporateSecretaryoftheCompanyat7WorldTradeCenterat250GreenwichStreet,NewYork,NewYork10007.An
admissionticketisalsoavailableovertheInternet.Stockholderswhodonothaveadmissionticketswillbeadmittedfollowingverificationofownershipatthe
door.
Internet Availability of Proxy Materials
UnderU.S.SecuritiesandExchangeCommission(theSEC)rules,wearefurnishingproxymaterialstoourstockholdersprimarilyviatheInternet,instead
ofmailingprintedcopiesofthosematerialstostockholders.OnMarch2,2016,wemailedtoourstockholders(otherthanthosewhopreviouslyrequestede-mailor
paperdelivery)aNoticeofInternetAvailabilityofProxyMaterials(theNotice)containinginstructionsonhowtoaccessandreviewourproxymaterials,
includingthisProxyStatementandtheCompanysAnnualReport.Thesematerialsareavailableat:https://materials.proxyvote.com/615369.TheNoticealso
instructsyouonhowtoaccessyourproxycardtovotethroughtheInternetorbytelephone.
Thisprocessisdesignedtoexpeditestockholdersreceiptofproxymaterials,lowerthecostoftheAnnualMeeting,andhelpconservenaturalresources.If
youreceivedaNoticebymail,youwillnotreceiveaprintedcopyoftheproxymaterialsunlessyourequestone.Ifyouwouldprefertoreceiveprintedproxy
materials,pleasefollowtheinstructionsincludedintheNotice.Ifyouhavepreviouslyelectedtoreceiveourproxymaterialselectronically,youwillcontinueto
receivethesematerialsviae-mailunlessyouelectotherwise.
Record Date
TheBoardofDirectorshasfixedthecloseofbusinessonFebruary17,2016astherecorddate(theRecordDate)forthedeterminationofstockholders
entitledtonoticeof,andtovoteat,theAnnualMeeting.AsofthecloseofbusinessontheRecordDate,therewere194,882,530sharesofCommonStock
outstanding.EachholderofCommonStockentitledtovoteattheAnnualMeetingwillbeentitledtoonevotepershare.

Table of Contents

How to Vote
InadditiontovotinginpersonattheAnnualMeeting,stockholdersofrecordcanvotebyproxybyfollowingtheinstructionsintheNoticeandusingthe
Internetorbycallingthetoll-freetelephonenumberthatisavailableontheInternet.Alternatively,stockholdersofrecordwhorequestedapapercopyoftheproxy
materialscanvotebyproxybymailingtheirsignedproxycards.ThetelephoneandInternetvotingproceduresaredesignedtoauthenticatestockholdersidentities,
toallowstockholderstogivetheirvotinginstructionsandtoconfirmthatstockholdersinstructionshavebeenrecordedproperly.
Ifyoursharesareheldinthenameofabank,brokerorothernominee,youmayreceiveaNoticefromthatfirmcontaininginstructionsthatyoumustfollow
inorderforyoursharestobevoted.CertaininstitutionsoffertelephoneandInternetvoting.Ifyoureceivedtheproxymaterialsinpaperform,thematerialsinclude
avotinginstructioncardsoyoucaninstructtheholderofrecordonhowtovoteyourshares.IfyouwishtovoteinpersonattheAnnualMeeting,youmustobtaina
legalproxyfromthebank,brokerorothernomineethatholdsyourshares.
Special Voting Procedures for Certain Current and Former Employees
ManycurrentandformeremployeesoftheCompanyhavesharebalancesintheMoodysCommonStockFundoftheMoodysCorporationProfit
ParticipationPlan(theProfitParticipationPlan).Thevotingproceduresdescribedabovedonotapplytothesesharebalances.Instead,anyproxygivenbysuch
anemployeeorformeremployeewillserveasavotinginstructionforthetrusteeoftheProfitParticipationPlan,aswellasaproxyforanysharesregisteredinthat
personsownname(includingsharesacquiredundertheMoodysCorporationEmployeeStockPurchasePlanand/orpursuanttorestrictedstockawards).Toallow
sufficienttimeforvotingbythetrustee,ProfitParticipationPlanvotinginstructionsmustbereceivedbyApril8,2015.Ifvotinginstructionshavenotbeen
receivedbythatdate,orproperlycompletedandexecutedvotinginstructionsarenotprovided,thetrusteewillvotethoseProfitParticipationPlansharesinthe
sameproportionastheProfitParticipationPlansharesforwhichithasreceivedinstructions,exceptasotherwiserequiredbylaw.
Quorum and Voting Requirements
TheholdersofamajorityoftheoutstandingsharesofCommonStockentitledtovoteattheAnnualMeeting,whetherpresentinpersonorrepresentedby
proxy,willconstituteaquorumforthetransactionofbusinessattheAnnualMeeting.IfaquorumisnotpresentattheAnnualMeeting,thestockholderspresent
mayadjourntheAnnualMeetingfromtimetotime,withoutnotice,otherthanbyannouncementatthemeeting,untilaquorumispresentorrepresented.Atany
suchadjournedmeetingatwhichaquorumispresentorrepresented,anybusinessmaybetransactedthatmighthavebeentransactedattheoriginalmeeting.
Abstentionsandbrokernon-voteswillbecountedforpurposesofdeterminingwhetheraquorumispresentattheAnnualMeeting.Abrokernon-voteoccurs
whenanominee(suchasabank,brokerorothernominee)holdingsharesforabeneficialownerdoesnotvoteonaparticularproposalbecausethenomineedoes
nothavediscretionaryvotingpowerforthatparticularmatterandhasnotreceivedinstructionsfromthebeneficialowner.
Director
Elections.
PursuanttotheCompanysby-laws,thenomineesfordirectorarerequiredtoreceiveamajorityofthevotescastwithrespecttosuch
nomineesinordertobeelectedattheAnnualMeeting.Amajorityofthevotescastmeansthatthenumberofsharesvotedforadirectormustexceedthenumber
ofvotescastagainstthatdirector.Abstentionshavenoeffectontheelectionofdirectors.Brokersdonothavediscretionaryauthoritytovotesharesinthe
electionofdirectorswithoutinstructionsfromthebeneficialowner.Accordingly,sharesresultinginbrokernon-votes,ifany,arenotvotescastandwillhaveno
effectontheoutcomeofdirectorelections.InaccordancewiththeCompanysDirectorResignationPolicy,eachdirectorsubjecttoelectionattheAnnualMeeting
wasrequiredtosubmitacontingentresignationwhichtheBoardofDirectorswillconsider,followingareviewandrecommendationfromtheGovernanceand
CompensationCommittee,intheeventthatthedirectorfailstoreceiveamajorityofthevotescast.

Table of Contents

Ratification
of
the
Appointment
of
the
Independent
Registered
Public
Accounting
Firm.
Theaffirmativevoteofthemajorityofthesharespresentinperson
orrepresentedbyproxyandentitledtovoteattheAnnualMeetingisrequiredtoratifytheappointmentofKPMGLLPastheindependentregisteredpublic
accountingfirmoftheCompanyfortheyearendingDecember31,2016.Ifastockholderabstainsfromvotingordirectsthestockholdersproxytoabstainfrom
votingonthismatter,theabstentionhasthesameeffectasavoteagainstthematter.Brokershavediscretionaryauthoritytovotesharesonthismatteriftheydonot
receiveinstructionsfromthebeneficialowner.
Advisory
Resolution
Approving
Executive
Compensation.
Theaffirmativevoteofthemajorityofthesharespresentinpersonorrepresentedbyproxyand
entitledtovoteattheAnnualMeetingisrequiredfortheadvisoryresolutionapprovingexecutivecompensation.Ifastockholderabstainsfromvotingordirectsthe
stockholdersproxytoabstainfromvotingonthismatter,theabstentionhasthesameeffectasavoteagainstthematter.Brokersdonothavediscretionary
authoritytovotesharesonthismatterwithoutinstructionsfromthebeneficialowner.Accordingly,sharesresultinginbrokernon-votes,ifany,arenotentitledto
voteonthematterandwillhavenoeffectontheoutcomeofthevote.
Proxies
TheproxyprovidesthatyoumayspecifythatyoursharesofCommonStockbevotedFor,AgainstorAbstainfromvotingwithrespecttothedirector
nomineesandtheotherproposals.TheBoardofDirectorsrecommendsthatyouvoteForthedirectornomineesnamedinthisProxyStatement,Forthe
ratificationoftheselectionoftheindependentregisteredpublicaccountingfirmandFortheadvisoryresolutionapprovingexecutivecompensation.Allsharesof
CommonStockrepresentedbyproperlyexecutedproxiesreceivedpriortoorattheAnnualMeetingandnotrevokedwillbevotedinaccordancewiththe
instructionsindicatedinsuchproxies.Properlyexecutedproxiesthatdonotcontainvotinginstructionswillbevotedinaccordancewiththerecommendationsof
theBoardofDirectors,exceptasnotedabovewithrespecttosharesheldintheProfitParticipationPlan.
ItisnotexpectedthatanymatterotherthanthosereferredtohereinwillbebroughtbeforetheAnnualMeeting.If,however,othermattersareproperly
presented,thepersonsnamedasproxieswillvoteinaccordancewiththeirbestjudgmentwithrespecttosuchmatters.
AnystockholderofrecordwhovotesbytelephoneortheInternetorwhoexecutesandreturnsaproxymayrevokesuchproxyorchangesuchvoteatany
timebeforeitisvotedattheAnnualMeetingby(i)filingwiththeCorporateSecretaryoftheCompanyat7WorldTradeCenterat250GreenwichStreet,New
York,NewYork10007,writtennoticeofsuchrevocation,(ii)castinganewvotebytelephoneortheInternetorbysubmittinganotherproxythatisproperlysigned
andbearsalaterdateor(iii)attendingtheAnnualMeetingandvotinginperson.Astockholderwhosesharesareownedbeneficiallythroughabank,brokeror
othernomineeshouldcontactthatentitytochangeorrevokeapreviouslygivenproxy.
ProxiesarebeingsolicitedherebyonbehalfoftheBoardofDirectors.ThecostoftheproxysolicitationwillbebornebytheCompany,although
stockholderswhovotebytelephoneortheInternetmayincurtelephoneorInternetaccesscharges.Inadditiontosolicitationbymail,directors,officersand
employeesoftheCompanymaysolicitproxiespersonallyorbytelephone,telecopy,e-mailorotherwise.Suchdirectors,officersandemployeeswillnotbe
specificallycompensatedforsuchservices.TheCompanyhasretainedGeorgesonShareholderCommunicationsInc.toassistwiththesolicitationofproxiesfora
feenottoexceedapproximately$15,000,plusreimbursementforout-of-pocketexpenses.Arrangementsmayalsobemadewithcustodians,nomineesand
fiduciariestoforwardproxysolicitationmaterialstothebeneficialownersofsharesofCommonStockheldofrecordbysuchcustodians,nomineesandfiduciaries,
andtheCompanymayreimbursesuchcustodians,nomineesandfiduciariesfortheirreasonableout-of-pocketexpensesincurredinconnectiontherewith.

Table of Contents

Delivery of Documents to Stockholders Sharing an Address

Ifyouarethebeneficialowner,butnottherecordholder,oftheCompanysshares,yourbroker,bankorothernomineemayseektoreduceduplicate
mailingsbydeliveringonlyonecopyoftheCompanysProxyStatementandAnnualReport,orNotice,asapplicable,tomultiplestockholderswhosharean
addressunlessthatnomineehasreceivedcontraryinstructionsfromoneormoreofthestockholders.TheCompanywilldeliverpromptly,uponwrittenororal
request,aseparatecopyoftheProxyStatementandAnnualReport,orNotice,asapplicable,toastockholderatasharedaddresstowhichasinglecopyofthe
documentswasdelivered.AstockholderwhowishestoreceiveaseparatecopyoftheProxyStatementandAnnualReport,orNotice,asapplicable,noworinthe
future,shouldsubmithisrequesttotheCompanybysendingane-mailtoir@moodys.com,
bysubmittingawrittenrequesttotheCompanysInvestorRelations
Department,at7WorldTradeCenterat250GreenwichStreet,NewYork,NewYork10007orcontactingtheCompanysInvestorRelationsDepartmentby
telephone,at(212)553-4857.BeneficialownerssharinganaddresswhoarereceivingmultiplecopiesoftheProxyStatementandAnnualReport,orNotice,as
applicable,andwishtoreceiveasinglecopyofsuchmaterialsinthefutureshouldcontacttheirbroker,bankorothernomineetorequestthatonlyasinglecopyof
eachdocumentbemailedtoallstockholdersatthesharedaddressinthefuture.Pleasenotethatifyouwishtoreceivepaperproxymaterialsforthe2016Annual
Meeting,youshouldfollowtheinstructionscontainedintheNotice.
CORPORATE GOVERNANCE
Inordertoaddressevolvingbestpracticesandnewregulatoryrequirements,theBoardofDirectorsannuallyreviewsitscorporategovernancepracticesand
thechartersforitsstandingcommittees.Asaresultofthisreview,during2015theBoardamendedtheCompanysCorporateGovernancePrinciplesanditsAudit,
GovernanceandCompensationandExecutiveCommitteeCharters.AcopyoftheCorporateGovernancePrinciplesisavailableontheCompanyswebsiteat
www.moodys.comundertheheadingsAboutMoodysInvestorRelationsInvestorRelationsHomeCorporateGovernanceOtherGovernanceDocuments.
CopiesofthechartersoftheGovernanceandCompensationCommittee,theAuditCommittee,andtheExecutiveCommitteeareavailableontheCompanys
websiteatwww.moodys.comundertheheadingsAboutMoodysInvestorRelationsInvestorRelationsHomeCorporateGovernanceCharterDocuments.
PrintcopiesoftheCorporateGovernancePrinciplesandthecommitteechartersmayalsobeobtaineduponrequest,addressedtotheCorporateSecretaryofthe
Companyat7WorldTradeCenterat250GreenwichStreet,NewYork,NewYork10007.TheAuditCommitteeandtheGovernanceandCompensation
CommitteeassisttheBoardinfulfillingitsresponsibilities,asdescribedbelow.TheExecutiveCommitteehastheauthoritytoexercisethepowersoftheBoard
whenitisnotinsession(subjecttoapplicablelaw,rulesandregulations,andtheCompanysRestatedCertificateofIncorporationandBy-Laws),advises
managementandperformsotherdutiesdelegatedtoitbytheBoardfromtimetotime.
Board Meetings and Committees
During2015,theBoardofDirectorsmeteleventimesandhadfourstandingcommittees:anAuditCommittee,aGovernanceandCompensationCommittee,
whichalsoperformsthefunctionsofanominatingcommittee,theExecutiveCommitteeandtheMISCommittee.Allincumbentdirectorsattendedatleast
92percentofthetotalnumberofmeetingsoftheBoardandofallcommitteesoftheBoardonwhichtheyservedin2015(heldduringtheperiodthattheyserved).
TheMISCommitteewasdisbandedin2015anditsfunctionswerereassignedtotheboardofdirectorsofMoodysInvestorsService,Inc.,theCompanys
subsidiaryandanationallyrecognizedstatisticalratingorganization(MIS).TheMISCommitteesprimarypurposewastooverseecertainactivitiesofMIS,
pursuanttoSection15EoftheSecuritiesExchangeActof1934,asamended(theExchangeAct).ThreedirectorsservedasmembersoftheMISCommitteein
2015anditmetfourtimesduring2015.Pleaserefertopage9foradditionalinformationregardingtheAuditCommitteeandtopage11foradditionalinformation
regardingtheGovernanceandCompensationCommittee.TheExecutiveCommitteedidnotmeetin2015.

Table of Contents

DirectorsareencouragedtoattendtheAnnualMeeting.AlloftheindividualsservingasdirectorsatthetimeoftheCompanys2015annualmeeting
attendedthemeeting.
Recommendation of Director Candidates
TheGovernanceandCompensationCommitteeconsidersandmakesrecommendationstotheBoardregardingthesize,structure,compositionand
functioningoftheBoardandisresponsibleforoverseeingtheprocessesfortheselectionandnominationofdirectorcandidates,andfordeveloping,recommending
totheBoardforapproval,andperiodicallyreviewingBoardmembershipcriteria.TheGovernanceandCompensationCommitteewillconsiderdirectorcandidates
recommendedbystockholdersoftheCompany.InconsideringacandidateforBoardmembership,whetherproposedbystockholdersorotherwise,theGovernance
andCompensationCommitteeexaminesthecandidatesbusinessexperience,qualifications,attributesandskillsrelevanttothemanagementandoversightofthe
Companysbusiness,independence,theabilitytorepresentdiversestockholderinterests,judgment,integrity,theabilitytocommitsufficienttimeandattentionto
Boardactivities,andtheabsenceofanypotentialconflictswiththeCompanysbusinessandinterests.TheGovernanceandCompensationCommitteealsoseeks
diverseoccupationalandpersonalbackgroundsfortheBoard.SeeQualificationsandSkillsofDirectorsonpage16foradditionalinformationontheCompanys
directors.TohaveacandidateconsideredbytheGovernanceandCompensationCommittee,astockholdermustsubmittherecommendationinwritingandmust
includethefollowinginformation:

ThenameofthestockholderandevidenceofthestockholdersownershipofCompanystock,includingthenumberofsharesownedandthelengthof
timeofownership;and

Thenameofthecandidate,thecandidatesresumeoralistingofhisqualificationstobeadirectoroftheCompany,andthecandidatesconsenttobe
namedasadirectorifselectedbytheGovernanceandCompensationCommitteeandnominatedbytheBoard.

ThestockholderrecommendationandinformationdescribedabovemustbesenttotheCorporateSecretaryoftheCompanyat7WorldTradeCenterat250
GreenwichStreet,NewYork,NewYork10007,andmustbereceivedbytheCorporateSecretarynotlessthan120dayspriortotheanniversarydateofthe
Companysmostrecentannualmeetingofstockholders.FortheCompanys2017annualmeeting,thisdeadlineisDecember13,2016.
TheGovernanceandCompensationCommitteeidentifiespotentialnomineesbyaskingcurrentdirectorsandexecutiveofficerstonotifytheCommitteeif
theybecomeawareofpersons,meetingthecriteriadescribedabove,whomightbeavailabletoserveontheBoard.Asdescribedabove,theCommitteewillalso
considercandidatesrecommendedbystockholdersonthesamebasisasthoserecommendedbycurrentdirectorsandexecutives.TheGovernanceand
CompensationCommitteealso,fromtimetotime,mayengagefirmsthatspecializeinidentifyingdirectorcandidatesfortheCommitteesconsideration.
OnceapersonhasbeenidentifiedbyorfortheGovernanceandCompensationCommitteeasapotentialcandidate,theCommitteemaycollectandreview
publiclyavailableinformationregardingthepersontoassesswhetherthepersonshouldbeconsideredfurther.IftheGovernanceandCompensationCommittee
determinesthatthecandidatewarrantsfurtherconsideration,thechairmanoranothermemberoftheCommitteecontactstheperson.Generally,iftheperson
expressesawillingnesstobeconsideredandtoserveontheBoard,theGovernanceandCompensationCommitteerequestsinformationfromthecandidate,reviews
thecandidatesaccomplishmentsandqualifications,includinginlightofanyothercandidateswhomtheCommitteemightbeconsidering,andconductsoneor
moreinterviewswiththecandidate.Incertaininstances,Committeemembersmaycontactoneormorereferencesprovidedbythecandidateormaycontactother
membersofthebusinesscommunityorotherpersonsthatmayhavegreaterfirst-handknowledgeofthecandidatesaccomplishments.
Board Leadership Structure
TheCompanysCorporateGovernancePrinciplespermittherolesofChairmanandChiefExecutiveOfficertobefilledbyasinglepersonordifferent
individuals.ThisflexibilityallowstheBoardtoreviewthestructureof

Table of Contents

theBoardperiodicallyanddeterminewhetherornottoseparatethetworolesbasedupontheCompanysneedsandcircumstancesfromtimetotime.
Dr.McKinnellservesasChairmanoftheBoardandMr.McDanielservesasPresidentandChiefExecutiveOfficerofMoodysCorporation.In2011and
2012,theBoarddiscussedwhethertoseparatetheroles,takingintoaccountnumerousconsiderationsthatbearupontheissue,includingstockholderssupportat
theCompanys2011annualmeetingofastockholderproposalrecommendingthat,wheneverpossible,theCompanyschairmanbeindependent.Inlightofthese
considerations,theBoarddeterminedtoappointanindependentChairmanoftheBoard.TheBoardbelievesthatstrong,independentBoardleadershipisacritical
aspectofeffectivecorporategovernance.TheroleandresponsibilitiesoftheChairmanoftheBoardaredetailedintheCompanysCorporateGovernance
Principles.
Codes of Business Conduct and Ethics
TheCompanyhasadoptedacodeofethicsthatappliestoitsChiefExecutiveOfficer,ChiefFinancialOfficerandController,orpersonsperformingsimilar
functions.TheCompanyhasalsoadoptedacodeofbusinessconductandethicsthatappliestotheCompanysdirectors,officersandemployees.Acurrentcopyof
eachofthesecodesisavailableontheCompanyswebsiteatwww.moodys.com
undertheheadingsAboutMoodysInvestorRelationsInvestorRelations
HomeCorporateGovernanceOtherGovernanceDocuments.Acopyofeachisalsoavailableinprinttostockholdersuponrequest,addressedtotheCorporate
SecretaryoftheCompanyat7WorldTradeCenterat250GreenwichStreet,NewYork,NewYork10007.TheCompanyintendstosatisfydisclosurerequirements
regardinganyamendmentsto,orwaiversfrom,thecodesofethicsbypostingsuchinformationontheCompanyswebsiteatwww.moodys.com
undertheheadings
AboutMoodysInvestorRelationsInvestorRelationsHomeCorporateGovernanceOtherGovernanceDocuments.
Director Independence
Toassistitinmakingdeterminationsofadirectorsindependence,theBoardhasadoptedindependencestandardswhicharesetforthbelowandarealso
includedintheCompanysCorporateGovernancePrinciples.TheBoardhasdeterminedthatMr.Anderson,Mr.Bermudez,Dr.Duffie,Ms.Hill,Mr.Kist,
Dr.McKinnell,Ms.Seidman,Mr.VanSaunandMr.Wulff,andthusamajorityofthedirectorsontheBoard,areindependentunderthesestandards.Thestandards
adoptedbytheBoardincorporatethedirectorindependencecriteriaincludedintheNewYorkStockExchange(theNYSE)listingstandards,aswellasadditional
criteriaestablishedbytheBoard.BoththeAuditCommitteeandtheGovernanceandCompensationCommitteearecomposedentirelyofindependentdirectors.In
accordancewithNYSErequirementsandtheindependencestandardsadoptedbytheBoard,allmembersoftheAuditCommitteeandtheGovernanceand
CompensationCommitteemeetadditionalheightenedindependencestandardsapplicabletoauditcommitteeandcompensationcommitteemembers.
AnindependentdirectorisadirectorwhomtheBoardhasdeterminedhasnomaterialrelationshipwiththeCompanyoranyofitsconsolidated
subsidiaries(forpurposesofthissection,collectivelyreferredtoastheCompany),eitherdirectly,orasapartner,stockholderorofficerofanorganizationthat
hasarelationshipwiththeCompany.Forpurposesofthisdefinition,theBoardhasdeterminedthatadirectorisnotindependentif:

1.

thedirectoris,orinthepastthreeyearshasbeen,anemployeeoftheCompany,oranimmediatefamilymemberofthedirectoris,orinthepastthree
yearshasbeen,anexecutiveofficeroftheCompany;

2.

(a)thedirector,oranimmediatefamilymemberofthedirector,isacurrentpartneroftheCompanysoutsideauditor;(b)thedirectorisacurrent
employeeoftheCompanysoutsideauditor;(c)amemberofthedirectorsimmediatefamilyisacurrentemployeeoftheCompanysoutsideauditor
andpersonallyworksontheCompanysaudit;or(d)thedirectororanimmediatefamilymemberofthedirectorwasinthepastthreeyearsapartner
oremployeeoftheCompanysoutsideauditorandpersonallyworkedontheCompanysauditwithinthattime;

Table of Contents

3.

thedirector,oramemberofthedirectorsimmediatefamily,isorinthepastthreeyearshasbeen,anexecutiveofficerofanothercompanywhereany
oftheCompanyspresentexecutiveofficersservesorservedonthecompensationcommitteeatthesametime;

4.

thedirector,oramemberofthedirectorsimmediatefamily,hasreceived,duringany12-monthperiodinthepastthreeyears,anydirect
compensationfromtheCompanyinexcessof$120,000,otherthancompensationforBoardservice,compensationreceivedbythedirectors
immediatefamilymemberforserviceasanemployee(otherthananexecutiveofficer)oftheCompany,andpensionorotherformsofdeferred
compensationforpriorservicewiththeCompany;

5.

thedirectorisacurrentexecutiveofficeroremployee,oramemberofthedirectorsimmediatefamilyisacurrentexecutiveofficerofanother
companythatmakespaymentstoorreceivespaymentsfromtheCompany,orduringanyofthelastthreefiscalyears,hasmadepaymentstoor
receivedpaymentsfromtheCompany,forpropertyorservicesinanamountthat,inanysinglefiscalyear,exceededthegreaterof$1millionor2%of
theothercompanysconsolidatedgrossrevenues;or

6.

thedirector,orthedirectorsspouse,isanexecutiveofficerofanon-profitorganizationtowhichtheCompanyortheCompanyfoundationmakes,or
inthepastthreeyearshasmade,contributionsthat,inanysinglefiscalyear,exceededthegreaterof$1millionor2%ofthenon-profitorganizations
consolidatedgrossrevenues.(AmountsthattheCompanyfoundationcontributesundermatchinggiftsprogramsarenotincludedinthecontributions
calculatedforpurposesofthisstandard.)

Animmediatefamilymemberincludesadirectorsspouse,parents,children,siblings,mother-andfather-in-law,sons-anddaughters-in-law,brothers-and
sisters-in-law,andanyone(otherthanadomesticemployee)whosharesthedirectorshome.
Inaddition,adirectorisnotconsideredindependentforpurposesofservingontheAuditCommittee,andmaynotserveontheAuditCommittee,ifthe
director:(a)accepts,directlyorindirectly,fromMoodysCorporationoranyofitssubsidiaries,anyconsulting,advisory,orothercompensatoryfee,otherthan
Boardandcommitteefeesandfixedamountsofcompensationunderaretirementplan(includingdeferredcompensation)forpriorservicewithMoodys
Corporation;or(b)isanaffiliatedpersonofMoodysCorporationoranyofitssubsidiaries;eachasdeterminedinaccordancewithSECregulations.
Furthermore,indeterminingwhetheradirectorisconsideredindependentforpurposesofservingontheGovernanceandCompensationCommittee,the
BoardmustconsiderallfactorsspecificallyrelevanttodeterminingwhetherthedirectorhasarelationshipwiththeCompanythatismaterialtothatdirectors
abilitytobeindependentfrommanagementinconnectionwiththedutiesofacompensationcommitteemember,including,butnotlimitedto:(a)thesourceofthe
directorscompensation,includinganyconsulting,advisoryorothercompensatoryfeepaidbytheCompanytothedirector;and(b)whetherthedirectoris
affiliatedwithMoodysCorporation,anyofitssubsidiariesoranaffiliateofanysubsidiary;eachasdeterminedinaccordancewithSECregulations.
Inassessingindependence,theBoardtookintoaccountthatMr.Anderson,Mr.Bermudez,Dr.Duffie,Ms.Hill,Mr.Kist,Ms.Seidman,Mr.VanSaunand
Mr.Wulffeachservedduring2015,orcurrentlyserves,asdirectors,employees,facultymembersortrusteesofentitiesthatareratedorhaveissuedsecuritiesrated
byMIS,aslistedintheCompanysDirectorandShareholderAffiliationPolicypostedontheCompanyswebsiteundertheheadingsAboutMoodysInvestor
RelationsCorporateGovernanceOtherGovernanceDocuments,andthatassociatedfeesfromeachsuchentityaccountedforlessthan1%oftheCompanys
2015revenue.Inaddition,theBoardtookintoaccountthattheCompanyfromtimetotimeengagesinbusinesswithentitieswhereoneofourdirectorsortheir
immediatefamilymembersareemployed.In2015,paymentsthattheCompanymadetosuchbusinessesaccountedforlessthan1%oftheannualrevenuesofthe
Companyandeachoftheotherentities.TheBoardfoundnothingintherelationshipstobecontrarytothestandardsfordeterminingindependenceascontainedin
theNYSEsrequirementsandtheCompanysCorporate

Table of Contents

GovernancePrinciples.AcopyofthesestandardsisfoundinAttachmentAtotheCompanysCorporateGovernancePrinciplesontheCompanyswebsiteat
www.moodys.comundertheheadingsAboutMoodysInvestorRelationsInvestorRelationsHomeCorporateGovernanceOtherGovernanceDocuments.
The Boards Role in the Oversight of Company Risk
TheBoardofDirectorsoverseestheCompanysenterprise-wideapproachtothemajorrisksfacingtheCompanyand,withtheassistanceoftheAudit
CommitteeandtheGovernanceandCompensationCommittee,overseestheCompanyspoliciesforassessingandmanagingitsexposuretorisk.TheBoard
periodicallyreviewstheserisksandtheCompanysriskmanagementprocesses,includinginconnectionwithitsreviewoftheCompanysstrategy.TheBoards
responsibilitiesincludereviewingtheCompanyspracticeswithrespecttoriskassessmentandriskmanagementandreviewingcontingentliabilitiesandrisksthat
maybematerialtotheCompany.TheAuditCommitteereviewstheCompanyspolicieswithrespecttoriskassessmentandriskmanagement,financialand
compliancerisks,includingrisksrelatingtointernalcontrolsandcyberrisksandmajorlegislativeandregulatorydevelopmentswhichcouldmateriallyimpactthe
Company.TheGovernanceandCompensationCommitteeoverseesmanagementsassessmentofwhethertheCompanyscompensationstructure,policiesand
programscreaterisksthatarereasonablylikelytohaveamaterialadverseeffectontheCompanyandreviewstheresultsofthisassessment.
UndertheoversightoftheBoardanditscommittees,theChiefExecutiveOfficerhasestablishedanEnterprise-WideRiskCommittee,comprisedofthe
ChiefExecutiveOfficerandhisdirectreports,whichincludetheChiefRiskOfficer.TheEnterpriseRiskCommitteereviewstheworkoftheEnterpriseRisk
FunctionwhichismanagedbytheChiefRiskOfficerwiththeassistanceoftheHeadofCorporatePlanningandTreasuryandtheHeadoftheInternalAudit
Function.TheChiefRiskOfficerchairsasubcommitteeconsistingofseniorexecutivesfromeachoftheCompanysmajorbusinessunitsandsupportfunctions,
whoperiodicallyreportonrisksandtheirmitigationswithintheirareasofresponsibility.Amongotherthings,theEnterpriseRiskFunctionisresponsiblefor
identifyingandmonitoringimportantexistingandemergingriskstotheachievementoftheCompanysstrategicandoperativeobjectives;formulatingappropriate
policesandmonitoringandreportingframeworkstosupporteffectivemanagementofimportantrisks;reviewingandevaluatingtheeffectivenessofmanagement
processesandactionplanstoaddresssuchrisks;advisingonandrecommendingtoexecutivemanagementanysignificantactionsorinitiativesthattheybelieveare
necessarytoeffectivelymanagerisk;andensuringthatactivitiesofdiscreteriskmanagementdisciplineswithintheCompanyareappropriatelycoordinated.The
ChiefRiskOfficerpresentedtheEnterpriseRiskCommitteesanalysistotheBoardattwomeetingsin2015.Additionally,theAuditCommitteeandthe
GovernanceandCompensationCommitteeeachreviewedriskswithintheirareasofresponsibilityatseparatemeetingsin2015.
Significantriskissuesevaluatedbyand/ormajorchangesproposedbytheEnterprise-WideRiskCommitteeandtheChiefRiskOfficerarediscussedat
variousBoardmeetingsthroughouttheyear.
Executive Sessions
TheindependentdirectorsroutinelymeetinexecutivesessionatregularlyscheduledBoardmeetings.Dr.McKinnell,theindependentChairmanofthe
Board,establishestheagendaforandpresidesatthesesessionsandhastheauthoritytocalladditionalsessionsasappropriate.
Communications with Directors
TheBoardofDirectorshasestablishedaprocesstoreceivecommunicationsfromstockholdersandotherinterestedparties.Stockholdersandotherinterested
partiesmaycommunicatewiththeBoardofDirectorsorwithallnon-managementdirectorsasagroup,orwithaspecificdirectorordirectors(includingthe
ChairmanoftheBoard),bywritingtothemc/otheCorporateSecretaryoftheCompanyat7WorldTradeCenterat250GreenwichStreet,NewYork,NewYork
10007.

Table of Contents

AllcommunicationsreceivedassetforthintheprecedingparagraphwillbeopenedbytheCorporateSecretaryintheofficeoftheCompanysGeneral
CounselforthesolepurposeofdeterminingwhetherthecontentsrepresentamessagetotheCompanysdirectors.Anycontentsthatarenotinthenatureof
advertising,promotionsofaproductorservice,orpatentlyoffensivematerialwillbeforwardedpromptlytotheaddressee.
Succession Planning
TheBoardandtheGovernanceandCompensationCommitteereviewsuccessionplanningannuallyinconjunctionwiththeBoardsreviewofstrategic
planning.
Anti-Hedging and Anti-Pledging Policy; Short Sales and Other Speculative Trades
AllexecutiveofficersanddirectorsaresubjecttoasecuritiestradingpolicyunderwhichtheyareprohibitedfromhedgingandpledgingMoodyssecurities,
includinganypubliclytradedsecuritiesofaMoodyssubsidiary.Specifically,thefollowingactivitiesareprohibitedunderthepolicy:

makingshortsalesofMoodyssecurities.Ashortsalehasoccurrediftheseller:(i)doesnotownthesecuritiessold;or(ii)doesownthesecurities
sold,butdoesnotdeliverortransmitthemwithinthecustomarysettlementperiod.

engaginginspeculativetransactionsorenteringintoanytransaction(includingpurchasingforwardcontracts,equityswaps,putsorcalls)thatare
designedtooffsetanydecreaseinthemarketvalueoforareotherwisebasedonthepriceofMoodyssecurities.

holdingMoodyssecuritiesinmarginaccountsorpledgingMoodyssecuritiesascollateralforaloan,providedthatthisdoesnotprohibitbrokerassistedexerciseorsettlementofequityawardsgrantedbyMoodysthatmayinvolveanextensionofcreditonlyuntilthesaleissettled.

Rule 10b5-1 Trading Plans

TheCEO,CFOandcertainotherofficersoftheCompany,enterintoRule10b5-1stocktradingplansfromtimetotime.Theseplansallowexecutivesto
adoptpredeterminedplansfortradingsharesofCompanystockinadvanceoflearninganymaterialnon-publicinformation.Theuseofthesetradingplanspermits
diversification,retirementandtaxplanningactivities.ThetransactionsundertheplanswillbedisclosedpubliclythroughForm4filingswiththeSEC.
THE AUDIT COMMITTEE
TheAuditCommitteerepresentsandassiststheBoardofDirectorsinitsoversightresponsibilitiesrelatingto:theintegrityoftheCompanysfinancial
statementsandthefinancialinformationprovidedtotheCompanysstockholdersandothers;theCompanyscompliancewithlegalandregulatoryrequirements;
theCompanysinternalcontrols;theCompanyspolicieswithrespecttoriskassessmentandriskmanagement,andthereviewofcontingentliabilitiesandrisks
thatmightbematerialtotheCompany; andtheauditprocess,includingthequalificationsandindependenceoftheCompanysprincipalexternalauditors(the
IndependentAuditors),andtheperformanceoftheIndependentAuditorsandtheCompanysinternalauditfunction.
AspartoftheAuditCommitteesoversightoftheauditprocess,theAuditCommitteeanditschairmanaredirectlyinvolvedintheselectionofthelead
engagementpartnerwhenthereisarotationrequiredunderapplicablerules,andtheAuditCommitteereviewsandconcursintheappointmentandcompensationof
theheadoftheCompanysinternalauditfunction.In2015,anewleadengagementpartnerwasdesignatedduetothemandatedrotationofthisposition,andanew
headoftheinternalauditfunctionwasappointed.TheCommitteealsoapprovesthefeesandtermsassociatedwiththeretentionoftheIndependentAuditorsto
performtheannualengagement.

Table of Contents

Infulfillingtheresponsibilitiesunderitscharter,thereareanumberofspecificresponsibilitiesthattheAuditCommitteeperforms:

Discusseswith,andreceivesregularstatusreportsfrom,theIndependentAuditorsandtheheadoftheinternalauditfunctionontheoverallscopeand
plansfortheiraudits,includingtheirscopeandplansforevaluatingtheeffectivenessofinternalcontroloverfinancialreporting.Alsoreceivesregular
updatesontheCompanysinternalcontroloverfinancialreporting,anddiscusseswithmanagementandtheIndependentAuditorstheirevaluations
andconclusionswithrespecttointernalcontroloverfinancialreporting.

MeetswiththeIndependentAuditorsandtheheadoftheinternalauditfunction,withandwithoutmanagementpresent,todiscusstheresultsoftheir
respectiveaudits,inadditiontoholdingmeetingswithmembersofmanagement,includingthegeneralcounsel.

ReviewsanddiscusseswithmanagementandtheIndependentAuditorstheCompanysearningspressreleasesandtheCompanysperiodicfilings
madewiththeSEC.

ReviewstheCompanysfinancialandcompliancerisks,including,butnotlimitedto,risksrelatingtointernalcontrolsandcyberrisksandoversees
informationtechnologyprojectsrelatedtotheCompanysfinancialreportingprocesses.

ReceivesperiodicreportsontheeffectivenessoftheCompanyscomplianceprogramandregularstatusreportsoncomplianceissues,including
reportsrequiredbytheAuditCommitteespolicyforthereceiptandtreatmentofanycomplaintsreceivedbytheCompanyregardingaccounting,
internalcontrol,auditingandfederalsecuritieslawmatters.

Reviewsitscharterannuallyandconductsanannualself-evaluationtoassessitsperformance.

TheAuditCommitteealsohastheauthoritytoengageitsownoutsideadvisors,includingexpertsinparticularareasofaccounting,asitdetermines
appropriate.
TheAuditCommitteeisdirectlyresponsiblefortheappointment,compensation,retentionandoversightoftheIndependentAuditorsand,assuch,the
IndependentAuditorsreportdirectlytotheAuditCommittee.KPMGLLPhasservedastheCompanysindependentauditorsince2008,andwasselectedatthe
conclusionofacompetitiveprocessthattheAuditCommitteeconductedtoreviewtheselectionoftheCompanysindependentregisteredpublicaccountingfirm.
TheAuditCommitteehasestablishedapolicysettingforththerequirementsforthepre-approvalofauditandpermissiblenon-auditservicestobeprovided
bytheindependentregisteredpublicaccountingfirm.Underthepolicy,theAuditCommitteepre-approvestheannualauditengagementtermsandfees,aswellas
anyotherauditservicesandspecifiedcategoriesofnon-auditservices,subjecttocertainpre-approvedfeelevels.Inaddition,pursuanttothepolicy,theAudit
CommitteeauthorizeditsChairmantopre-approveotherauditandpermissiblenon-auditservicesin2015upto$50,000perengagementandamaximumof
$250,000peryear.ThepolicyrequiresthattheAuditCommitteeChairmanreportanypre-approvaldecisionstothefullAuditCommitteeatitsnextscheduled
meeting.FortheyearendedDecember31,2015,theAuditCommitteeortheChairmanpre-approvedalloftheservicesprovidedbytheCompanysindependent
registeredpublicaccountingfirm,whicharedescribedonpage22.TheAuditCommitteealsoisresponsibleforoverseeingtheauditfeenegotiationassociatedwith
theretentionofKPMGtoperformtheannualauditengagement.
ThemembersoftheAuditCommitteeareMr.Anderson(Chairman),Mr.Bermudez,Dr.Duffie,Ms.Hill,Mr.Kist,Dr.McKinnell,Ms.Seidman,Mr.Van
SaunandMr.Wulff,eachofwhomisindependentunderNYSEandSECrulesandundertheCompanysCorporateGovernancePrinciples.TheBoardofDirectors
hasdeterminedthateachofMr.Anderson,Mr.Bermudez,Mr.Kist,Dr.McKinnell,Ms.SeidmanandMr.Wulffisanauditcommitteefinancialexpertunderthe
SECsrules.TheAuditCommitteeheldninemeetingsduring2015.

10

Table of Contents

AUDIT COMMITTEE REPORT

TheAuditCommitteehasreviewedanddiscussedwithmanagementandtheindependentauditorstheauditedfinancialstatementsoftheCompanyforthe
yearendedDecember31,2015(theAuditedFinancialStatements),managementsassessmentoftheeffectivenessoftheCompanysinternalcontrolover
financialreporting,andtheindependentauditorsevaluationoftheCompanyssystemofinternalcontroloverfinancialreporting.Inaddition,theAuditCommittee
hasdiscussedwithKPMGLLP,whichreportsdirectlytotheAuditCommittee,themattersthatindependentregisteredpublicaccountingfirmsmustcommunicate
toauditcommitteesunderapplicablePublicCompanyAccountingOversightBoard(PCAOB)standards.
TheAuditCommitteealsohasdiscussedwithKPMGLLPitsindependencefromtheCompany,includingthematterscontainedinthewrittendisclosures
andletterrequiredbyapplicablerequirementsofthePCAOBregardingindependentregisteredpublicaccountingfirmscommunicationswithauditcommittees
aboutindependence.TheAuditCommitteealsohasdiscussedwithmanagementoftheCompanyandKPMGLLPsuchothermattersandreceivedsuchassurances
fromthemasitdeemedappropriate.TheAuditCommitteealsoconsiderswhethertherenderingofnon-auditservicesbyKPMGLLPtotheCompanyis
compatiblewithmaintainingtheindependenceofKPMGLLPfromtheCompany.TheCompanyhistoricallyhasusedKPMGLLPforonlyalimitednumberof
non-auditserviceseachyear.
Followingtheforegoingreviewanddiscussions,theAuditCommitteerecommendedtotheBoardofDirectorsthattheAuditedFinancialStatementsbe
includedintheCompanysAnnualReportonForm10-KfortheyearendedDecember31,2015forfilingwiththeSEC.
The Audit Committee
BasilL.Anderson,Chairman
JorgeA.Bermudez
DarrellDuffie
KathrynM.Hill
EwaldKist
HenryA.McKinnell,Jr.
LeslieF.Seidman
JohnK.Wulff
THE GOVERNANCE AND COMPENSATION COMMITTEE
TheroleoftheGovernanceandCompensationCommitteeistoidentifyandevaluatepossiblecandidatestoserveontheBoardandtorecommendthe
CompanysdirectornomineesforapprovalbytheBoardandtheCompanysstockholders.TheGovernanceandCompensationCommitteealsoconsidersand
makesrecommendationstotheBoardofDirectorsconcerningthesize,structure,compositionandfunctioningoftheBoardanditscommittees,overseesthe
evaluationoftheBoard,anddevelopsandreviewstheCompanysCorporateGovernancePrinciples.
WithrespecttotheevaluationoftheBoard,theGovernanceandCompensationCommitteeoverseesaprocessforannuallyassessingtheperformanceand
contributionsandtheindependenceofincumbentdirectorsindeterminingwhethertorecommendthemforreelectiontotheBoard.TheBoard,theAudit
Committee,andtheGovernanceandCompensationCommittees,underthatCommitteesoversight,eachconductanannualself-evaluationtoassessits
performance.TheChairmanoftheBoardconductsannualinterviewsduringwhichindividualBoardmemberevaluationsareconducted.
TheGovernanceandCompensationCommitteeoverseestheCompanysoverallcompensationstructure,policiesandprograms,assesseswhetherthe
Companyscompensationstructureestablishesappropriateincentivesformanagementandemployees,andassessestheresultsofthemostrecentvoteonthe
Companys

11

Table of Contents

advisoryresolutionapprovingexecutivecompensation.TheCommitteealsooverseestheevaluationofseniormanagement(includingbyreviewingandapproving
performancegoalsfortheCompanysCEOandotherexecutiveofficers,andbyevaluatingtheirperformanceagainstapprovedgoals,which,withrespecttothe
CEO,theCommitteedoesinconsultationwiththeChairmanoftheBoard)andoverseesandmakesthefinaldecisionsregardingcompensationarrangementsfor
theCEOandforcertainotherexecutiveofficers.TheCEOmakesrecommendationstotheCommitteeregardingtheamountandformofexecutivecompensation
(exceptwithrespecttohiscompensation).Foradescriptionofthisprocess,seetheCompensationDiscussionandAnalysis(theCompensationDiscussionand
AnalysisorCD&A),beginningonpage27.TheCommitteeannuallyreviewsthecompensationofdirectorsforserviceontheBoardanditscommitteesand
recommendschangesincompensationtotheBoard.TheCommitteeadministersandmakesrecommendationstotheBoardwithrespecttotheCompanysincentive
compensationandequity-basedcompensationplansthataresubjecttoBoardapproval,includingtheCompanyskeyemployeesstockincentiveplans.The
Committeehasauthoritytoestablish,amendandterminatetheCompanysemployeebenefitplans,programsandpractices,andmonitorstheinvestment
performanceoftheassetsheldbytheplans,andtheCommitteemaydelegatetomanagementtheresponsibilitiesithaswithrespecttotheCompanysemployee
benefitplans,programsandpracticesastheCommitteedeemsappropriate.TheCommitteemakesthefinaldecisionsregardingnamedexecutiveofficer
compensation.
TheCommitteeisempoweredtoretain,attheCompanysexpense,suchconsultants,counselorotheroutsideadvisorsasitdeterminesappropriatetoassistit
intheperformanceofitsfunctions.In2015,theCommitteeretainedtheservicesofMeridianCompensationPartnersLLC,anindependentcompensation
consultingcompany,toprovideadviceandinformationaboutexecutiveanddirectorcompensation,includingthecompetitivenessofpaylevels,executive
compensationdesignandgovernanceissues,andmarkettrends,aswellastechnicalandcomplianceconsiderations.Meridianreportsdirectlyandsolelytothe
Committee.MeridianexclusivelyprovidesexecutiveanddirectorcompensationconsultingservicesanddoesnotprovideanyotherservicestotheCompany.The
CommitteeregularlyreviewsthecurrentengagementsandtheobjectivityandindependenceoftheadvicethatMeridianprovidestotheCommitteeonexecutive
anddirectorcompensation.TheCommitteeconsideredthesixspecificindependencefactorsadoptedbytheSECandtheNYSEunderDodd-Frankandother
factorsitdeemedrelevant,andtheCommitteefoundnoconflictsofinterestorotherfactorsthatwouldadverselyimpactMeridiansindependence.
During2015,managementcontinuedtoengageAonHewittasmanagementscompensationconsultant.AonHewittworkedwiththeChiefHuman
ResourcesOfficerandherstafftodevelopmarketdataregardingMoodysexecutivecompensationprograms.TheCommitteetakesintoaccountthatAonHewitt
providesexecutivecompensation-relatedservicestomanagementwhenitevaluatestheinformationandanalysesprovidedbyAonHewitt.
ThemembersoftheGovernanceandCompensationCommitteeareMr.Wulff(Chairman),Mr.Anderson,Mr.Bermudez,Dr.Duffie,Ms.Hill,Mr.Kist,
Dr.McKinnell,Ms.SeidmanandMr.VanSaun,eachofwhomisindependentunderNYSErulesandundertheCompanysCorporateGovernancePrinciples.The
GovernanceandCompensationCommitteemetsixtimesduring2015.
REPORT OF THE GOVERNANCE AND COMPENSATION COMMITTEE
TheGovernanceandCompensationCommittee,whichiscomposedsolelyofindependentmembersoftheBoardofDirectors,assiststheBoardinfulfilling
itsoversightresponsibilityrelatingto,amongotherthings,establishingandreviewingcompensationoftheCompanysexecutiveofficers.Inthiscontext,the
GovernanceandCompensationCommitteereviewedanddiscussedwithmanagementtheCompanysCompensationDiscussionandAnalysis,beginningonpage
27.Followingthereviewsanddiscussionsreferredtoabove,the

12

Table of Contents

GovernanceandCompensationCommitteerecommendedtotheBoardthattheCompensationDiscussionandAnalysisbeincludedinthisproxystatement.
The Governance and Compensation Committee
JohnK.Wulff,Chairman
BasilL.Anderson
JorgeA.Bermudez
DarrellDuffie
KathrynM.Hill
EwaldKist
HenryA.McKinnell,Jr.
LeslieF.Seidman
RELATIONSHIP OF COMPENSATION PRACTICES TO RISK MANAGEMENT
WhenstructuringitsoverallcompensationpracticesforemployeesoftheCompanygenerally,considerationisgivenastowhetherthestructurecreates
incentivesforrisk-takingbehaviorandthereforeimpactstheCompanysriskmanagementpractices.Attentionisgiventotheelementsandthemixofpayaswell
asseeingthatemployeesawardsalignwithstockholdersvalue.
InordertoassesswhethertheCompanyscompensationpracticesandprogramscreaterisksthatarereasonablylikelytohaveamaterialadverseeffecton
theCompany,managementestablishedacompensationriskcommitteeledbytheChiefHumanResourcesOfficertoassesstheriskrelatedtotheCompanys
compensationplans,practicesandprograms.Aspartofthisannualreview,thecompensationriskcommitteeassessedthefollowingitems:(i)therelative
proportionofvariabletofixedcomponentsofcompensation,(ii)themixofperformanceperiods(short-term,medium-termandlong-term),(iii)themixofpayment
mechanisms(cash,options,restrictedstock,performanceshares),(iv)theperformancemetricsused,linkingthecreationofvalueandearningsqualityand
sustainability,(v)theprocessofsettinggoals,degreeofdifficulty,spreadsbetweenthresholds,targetsandmaximumpayouts,(vi)themaximumpayoutlevelsand
caps,(vii)theclawbackpolicy,(viii)theretirementprogramdesignand(ix)theequityownershipandequityownershipguidelines.Theseitemswereassessedin
thecontextofthemostsignificantriskscurrentlyfacingtheCompany,todetermineifthecompensationplans,practicesandprogramsincentivizeemployeesto
takeunduerisks.Thecommitteethentookintoaccountcontrolsandproceduresthatoperatetomonitorandmitigateagainstrisk.TheChiefHumanResources
OfficerpresentedthecompensationriskcommitteesconclusionstotheGovernanceandCompensationCommittee.Theseconclusionswerealsoreviewedbyand
theGovernanceandCompensationCommitteesindependentcompensationconsultant,MeridianCompensationPartnersLLC.
TheGovernanceandCompensationCommitteereviewedtheseconclusionsthroughariskassessmentlens.Asaresultofthesereviews,theCompanydoes
notbelievethattheCompanyscompensationpracticesandprogramscreaterisksthatarereasonablylikelytohaveamaterialadverseeffectontheCompany,nor
doesitbelievethatthepracticesandprogramsaredesignedtopromoterisktaking.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
TheAuditCommitteeischargedwithmonitoringandreviewingissuesinvolvingpotentialconflictsofinterest,andreviewingandapprovingallrelated
persontransactions,asdefinedinapplicableSECrules.UnderSECrules,relatedpersonsincludeanydirector,executiveofficer,anynomineefordirector,any
personowning5%ormoreoftheCompanysCommonStock,andanyimmediatefamilymembersofsuchpersons.Inaddition,undertheCompanysCodeof
BusinessConductandCodeofEthics,specialrulesapplytoexecutiveofficersand

13

Table of Contents

directorswhoengageinconductthatcreatesanactual,apparentorpotentialconflictofinterest.Beforeengaginginsuchconduct,suchexecutiveofficersand
directorsmustmakefulldisclosureofallthefactsandcircumstancestotheCompanysGeneralCounselandtheChairmanoftheAuditCommittee,andobtainthe
priorwrittenapprovaloftheAuditCommittee.Allconductisreviewedinamannersoasto(i)maintaintheCompanyscredibilityinthemarket,(ii)maintainthe
independenceoftheCompanysemployeesand(iii)seethatallbusinessdecisionsaremadesolelyonthebasisofthebestinterestsoftheCompanyandnotfor
personalbenefit.
COMPENSATION OF DIRECTORS
Thefollowingtablesetsforth,forthefiscalyearendedDecember31,2015,thetotalcompensationofthenon-managementmembersoftheCompanys
BoardofDirectors.

Name

Year

Fees
Earned
or Paid in
Cash
($)(1)

Stock
Awards
($)(2)

Option
Award
($)

Non-Equity
Incentive Plan
Compensation
($)

Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings ($)

All Other
Compensation
($)(3)

Total
($)

BasilAnderson


$264,954
2015 $110,000 $154,954
JorgeBermudez


244,954
2015 90,000 154,954
DarrellDuffie


264,954
2015 110,000 154,954
KathrynHill


244,954
2015 90,000 154,954
EwaldKist

$
20,000 264,954
2015 90,000 154,954
HenryMcKinnell,Jr.


345,037
2015 140,000 205,037
LeslieSeidman


244,954
2015 90,000 154,954
JohnWulff


264,954
2015 110,000 154,954

(1) In2015,theCompanysnon-managementdirectorsreceivedanannualcashretainerof$90,000,payableinquarterlyinstallments.TheChairmenofthe
AuditCommittee,theGovernanceandCompensationCommitteeandtheMISCommitteereceivedanadditionalannualcashfeeof$20,000,alsopayablein
quarterlyinstallments.TheChairmanoftheBoardreceivedanadditionalannualcashfeeof$50,000.Mr.Kistreceivedaninternationaltravelfeeof$20,000
payableinquarterlyinstallments.Therewerenoseparatemeetingfeespaidin2015.
Anon-managementdirectormayelecttodeferreceiptofalloraportionofhisannualcashretaineruntilafterterminationofserviceontheCompanys
BoardofDirectors.DeferredamountsarecreditedtoanaccountandreceivetherateofreturnearnedbyoneormoreinvestmentoptionsintheMoodys
CorporationProfitParticipationPlanasselectedbythedirector.UponachangeincontroloftheCompany,alumpsumpaymentwillbemadetoeach
directoroftheamountcreditedtothedirectorsdeferredaccountonthedateofthechangeincontrol,andthetotalamountcreditedtoeachdirectors
deferredaccountfromthedateofthechangeincontroluntilthedatesuchdirectorceasestobeadirector,willbepaidinalumpsumatthattime.

(2)

OnFebruary11,2015,thenon-managementdirectors,exceptDr.McKinnell,receivedagrantof$154,954worthofrestrictedstockissuedfromthe1998
MoodysCorporationNon-EmployeeDirectorsStockIncentivePlan(the1998DirectorsPlan)whichwasequalto1,581restrictedsharesofCommon
Stock.AlsoonFebruary11,2015,Dr.McKinnellreceivedagrantof$205,037worthofrestrictedstockissuedfromthe1998DirectorsPlanwhichwas
equalto2,092restrictedsharesofCommonStock.TheGovernanceandCompensationCommitteeauthorizedthegrantofrestrictedstockawardsfor
February11,2015onDecember15,2014,andthegrantwassubsequentlyapprovedbytheBoardonDecember16,2014.Thegrantofrestrictedstock
awardswaseffectiveonFebruary11,2015,thethirdtradingdayfollowingthedateofthepublicdisseminationoftheCompanysfinancialresultsfor2014.
Ineachcase,thenumberofrestrictedsharesofCommonStockbasedontheawardvaluehasbeencomputedinaccordancewithFASBASCTopic718.

14

Table of Contents

TheaggregatenumberofstockawardsoutstandingasofDecember31,2015foreachindividualwhoservedasanon-managementdirectoroftheCompany
during2015wasasfollows:

Name

BasilAnderson
JorgeBermudez
DarrellDuffie
KathrynHill
EwaldKist
HenryMcKinnell,Jr.
LeslieSeidman
JohnWulff

(3)

Number of Shares
Underlying Options

Number of
Shares of Unvested
Restricted Stock

1,581
1,581
1,581
1,581
1,581
2,092
1,581
1,581

Fornon-managementdirectorswhoresideoutsideofNorthAmerica,thereisanadditionalinternationaltravelallowanceof$20,000.Perquisitesandother
personalbenefitsprovidedtoeachindividualwhoservedasanon-managementdirectorin2015were,intheaggregate,lessthan$10,000perdirector.Each
non-managementdirectorisreimbursedfortravel,mealsandhotelexpensesincurredinconnectionwithattendingmeetingsoftheCompanysBoardof
Directorsoritscommittees.ForthemeetingsheldattheCompanysexecutiveoffices,theCompanypaysfortravelforeachnon-managementdirectorand
oneguestofeachdirector,aswellasfortheiraccommodations,meals,Company-arrangedactivitiesandotherincidentalexpenses.

Stock Ownership Guidelines For Non-Management Directors

InJuly2004,Moodysadoptedstockownershipguidelinesforitsexecutives,includingtheNamedExecutiveOfficers(theNEOs),anditsnonmanagementdirectors,encouragingthemtoacquireandmaintainameaningfulstakeintheCompany.TheseguidelineswereupdatedinJuly2012.Moodys
believesthattheseguidelinesencourageitsexecutiveofficersandnon-managementdirectorstoactasowners,therebybetteraligningtheirinterestswiththoseof
theCompanysstockholders.AsofDecember31,2015,eachofthedirectorsservingonthatdatewasincompliancewiththeguidelines.

Theguidelinesareintendedtosatisfyanindividualsneedforportfoliodiversification,whileensuringanownershiplevelsufficienttoassure
stockholdersoftheircommitmenttovaluecreation.

Non-managementdirectorsareexpected,withinfiveyears,toacquireandholdsharesoftheCompanysCommonStockequalinvaluetofivetimes
theannualcashretainer.

RestrictedsharesandsharesownedbyimmediatefamilymembersorthroughtheCompanystax-qualifiedsavingsandretirementplanscounttoward
satisfyingtheguidelines.

Stockoptions,whethervestedorunvested,donotcounttowardsatisfyingtheguidelines.

1998 Non-Employee Directors Stock Incentive Plan

InOctober2015,theBoardapprovedanamendmenttothe1998Non-EmployeeDirectorsStockIncentivePlaninordertochangetheannualgrantlimitfor
anindividualdirector.ThePlannowprovidesthattheannuallimitisnottoexceedthelesserof20,000sharesorshareswithafairmarketvalueof$400,000.As
disclosedintheCompensationofDirectorstable,above,thefairmarketvalueofgrantshavehistoricallybeenbelowthisamount.

15

Table of Contents

ITEM 1ELECTION OF DIRECTORS

Atthe2013annualmeeting,theCompanysstockholdersvotedtophaseouttheclassificationoftheBoardofDirectorsandtoprovideinsteadfortheannual
electionofdirectors,beginningwiththe2014annualmeeting.Directorselectedtothree-yeartermspriortooratthe2013annualmeetingwereentitledtocomplete
theirtermsbeforestandingforre-election.BeginningatthisyearsAnnualMeeting,alldirectorswillstandforelectionannuallyforone-yearterms.
TheBoardofDirectorshasnominatedBasilL.Anderson,JorgeA.Bermudez,DarrellDuffie,KathrynM.Hill,EwaldKist,RaymondW.McDaniel,Jr.,
HenryA.McKinnell,Jr.,Ph.D.,LeslieF.SeidmanandBruceVanSauneachforaone-yeartermexpiringin2017.Ifelected,thenomineeswillholdofficeuntil
eachoftheirtermsexpiresanduntilasuccessoriselectedandqualified.AllnomineesarecurrentlymembersoftheBoardofDirectorsandallbutMr.VanSaun
werepreviouslyelectedbythestockholders.Mr.VanSaunwasidentifiedasapotentialdirectorcandidateforconsiderationbytheGovernanceandCompensation
Committeebyathird-partysearchfirm.TheGovernanceandCompensationCommitteeevaluatesthequalificationsandskillsofotherpotentialcandidatesinlight
oftheBoardscurrentcompositionandconsiderationoftheCompanyscurrentandfuturebusinessandoperations.TheCompanyexpectsthenomineesfor
electionasdirectortobeabletoserveifelected.Ifanomineeisunabletoserve,proxiesmaybevotedfortheelectionofsuchotherpersonfordirectorastheBoard
mayrecommendintheplaceofsuchnomineeorjustfortheremainingnominees,leavingavacancy.Alternatively,theBoardmayreducethesizeoftheBoard.
Qualifications and Skills of Directors
TheBoardbelievesthattheBoard,asawhole,shouldpossessacombinationofskills,professionalexperienceanddiversityofbackgroundsnecessaryto
overseetheCompanysbusiness.Inaddition,theBoardbelievesthattherearecertainattributesthateverydirectorshouldpossess,asreflectedintheBoards
membershipcriteria.Accordingly,theBoardandtheGovernanceandCompensationCommitteeconsiderthequalificationsofdirectorsanddirectorcandidates
individuallyandinthebroadercontextoftheBoardsoverallcompositionandtheCompanyscurrentandfuturebusinessandoperations.
TheGovernanceandCompensationCommitteeisresponsiblefordevelopingandrecommendingBoardmembershipcriteriatotheBoardforapproval.The
criteria,whicharesetforthintheCompanysCorporateGovernancePrinciples,includethecandidates:

businessexperience,

qualifications,attributesandskillsrelevanttothemanagementandoversightoftheCompanysbusiness,

independence,

theabilitytorepresentdiversestockholderinterests,

judgmentandintegrity,

theabilitytocommitsufficienttimeandattentiontoBoardactivities,and

theabsenceofanypotentialconflictswiththeCompanysbusinessandinterests.

Inaddition,theBoardandtheGovernanceandCompensationCommitteeannuallyevaluatethecompositionoftheBoardtoassesstheskillsandexperience
thatarecurrentlyrepresentedontheBoard,aswellastheskillsandexperiencethattheBoardwillfindvaluableinthefuture,giventheCompanyscurrent
situationandstrategicplans.TheBoardandtheGovernanceandCompensationCommitteeseekavarietyofoccupationalandpersonalbackgroundsontheBoard
inordertoobtainarangeofviewpointsandperspectivesandtoenhancethediversityoftheBoard.TheCommitteealsoconsidersthespecialrequirementsof
MoodysInvestorsServiceand

16

Table of Contents

itsroleinthesecuritiesmarkets.Asanexample,theCommitteehasdeterminedthatindividualswhobyprofessionactivelymanagesecuritiesportfolioscould
encounterconflictsofinterestsorgiverisetotheappearanceofconflicts.
ThisannualevaluationoftheBoardscompositionenablestheBoardandtheGovernanceandCompensationCommitteetoupdatetheskillsandexperience
theyseekintheBoardasawhole,andinindividualdirectors,astheCompanysneedsevolveandchangeovertimeandtoassesstheeffectivenessofeffortsat
pursuingdiversity.Inidentifyingdirectorcandidatesfromtimetotime,theBoardandtheGovernanceandCompensationCommitteemayidentifyspecificskills
andexperiencethattheybelievetheCompanyshouldseekinordertoconstituteabalancedandeffectiveboard.
Inconsideringandnominatingincumbentdirectorsforre-electiontotheBoard,theBoardandtheGovernanceandCompensationCommitteehave
consideredavarietyoffactors.Theseincludethenomineesindependence,financialliteracy,personalandprofessionalaccomplishments,experienceinlightofthe
needsoftheCompanyandpastperformanceontheBoard.WithrespecttotheCompanysincumbentdirectorsstandingforre-election,theBoardhasdetermined
thattheyhavethefollowingskillsandqualificationsthatsupporttheirserviceontheBoard:

(i)

Mr.Andersonhasoveradecadeofexperienceasanexecutiveofficer,includingasachieffinancialofficer,ofseveralpubliccompanieswherehe
heldsignificantpolicymakingpositions.HealsohasexperienceasanoperatingexecutiveinchargeofaninternationalbusinessbasedinParis,
France.Inaddition,Mr.AndersonservesasadirectorwithseveralNYSEorNASDAQlistedcompanies.Asaresultofthesepositions,hebrings
totheBoardexpertiseasastrategist,managementandoperationsexperience,andaperspectiveoninternationalbusinessoperationsandcorporate
governanceinthepubliccompanycontext;

(ii)

Mr.Bermudezbringsahistoryofexecutiveexperienceatamajorinternationalfinancialservicescompany.Astheheadofriskforamajorglobal
financialinstitution,hewasinvolvedinthedebtrestructuringofvarioussovereignsaroundtheworld.Healsomanagedaglobalbusinesswitha
presenceinover100countries.Asaresult,Mr.Bermudezbringsadeepunderstandingofcreditriskandyearsoffinancialexpertise,aswellasrisk
managementexperiencetotheBoard;

(iii)

Dr.DuffiehassignificantexpertiseinanumberofareasthataredirectlyrelevanttotheCompanyscorebusinessoperationsandhasexperienceas
aconsultanttofinancialservicesfirms.Heisarecognizedexpertinthebehaviorandperformanceofglobalcreditandsecuritiesmarketsandhis
opinionsregardingfinancialregulatoryreformhavebeensolicitedbyvariousarmsoftheU.S.government,includingtheSenateBanking
Committee,theU.S.TreasuryDepartment,theHouseFinancialServicesCommittee,theBoardofGovernorsoftheFederalReserveSystem,the
U.S.CommodityFuturesTradingCommission,theSEC,thePresidentsNationalEconomicCouncilandtheNewYorkFederalReserveBank.He
alsohasauthoredabookonover-the-countermarkets,twobooksoncreditrisk,andonebookonbankfailuresandhaspublishednumerous
academicresearchpublications,articlesandpapersonassetandcreditvaluationandperformance.ThisworkallowsDr.Duffietoprovideinsight
intovariousaspectsoftheCompanysbusinessoperations,theexpandingnatureoftheworkofMoodysAnalyticsandMISandpolicyissues
relatedtothefinancialservicesindustry;

(iv)

Ms.Hillhassignificantexperienceinbusinessmanagementandleadingengineeringandoperationsorganizations.SheservedasSeniorVice
President,ExecutiveAdvisorofCiscoSystemsInc.fromDecember2011toMarch2013.ShepreviouslyservedasCiscosSeniorVicePresident,
DevelopmentStrategy&Operationsfrom2009toDecember2011,andpriortothat,asSeniorVicePresidentofCiscoSystemsAccess
NetworkingandServicesGroup,wheresheledtheAccessRouting,EthernetSwitching,Security,WirelessandSmallBusinesstechnologygroups.
ShebringsextensiveleadershipexperienceandastrongbackgroundininformationtechnologyandbusinessoperationstotheBoard;

17

Table of Contents

(v)

Mr.KistservedasChairmanoftheExecutiveBoardofamajorforeignfinancialservicescompanyforanumberofyearsandheldvarious
executiveofficerpositions,includingpresidentandvicechairman,atamajorinternationalbank.Accordingly,Mr.KistbringstotheBoard
financialexpertiseandknowledgeoftherangeofissuesfacingalargecompanyoperatinginaregulatedindustryandaperspectiveonrunninga
companywithinternationaloperations;

(vi)

Mr.McDaniel,whoisbothPresidentandChiefExecutiveOfficeroftheCompany,beganhiscareerattheCompanyservingasaratingsanalyst
andhasservedinnumerouscapacitiesattheCompanyoverthepastthreedecades.Asaresult,hebringstotheBoardadeepunderstandingofthe
CompanysbusinessandoperationsaswellasahistoricalperspectiveontheCompanysstrategy.Since2005,hehasalsoservedasadirectorof
JohnWiley&Sons,Inc.,whichdevelops,publishesandsellsproductsinprintandelectronicmediafortheeducational,professional,scientific,
technical,medicalandconsumermarketsworldwide.Thishashelpedtoprovideperspectiveonpubliccompanygovernanceissues;

(vii)

Dr.McKinnellservedforfiveyearsasthechiefexecutiveofficerofapublicpharmaceuticalcompanywithworldwideoperations,andpriortothat
position,servedaspresident,chiefoperatingofficer,chieffinancialofficerandexecutivevicepresident.Asaresultofthesepositions,
Dr.McKinnellbringstotheBoardfinancialexpertise,globalmanagementexperienceandleadershipskills.Inaddition,becausethepharmaceutical
business,liketheCompanys,operatesinahighlyregulatedindustry,Dr.McKinnellbringstotheBoardanappreciationofwhatacomplex
regulatoryenvironmentmeansfortheCompanysoperations.Dr.McKinnellhasalsoservedasadirectorofseveralpubliccompanies,contributing
tohisperspectiveoncorporategovernancematters;

(viii)

Ms.SeidmanbringsregulatoryandfinancialexpertisetotheBoard.ShecurrentlyservesasaPublicGovernoroftheFinancialIndustryRegulatory
Authority(FINRA).SheservedastheChairmanoftheFinancialAccountingStandardsBoardandservedasanexecutiveatamajorbankandasan
auditorforamajoraccountingfirm.Asaresultofthesepositions,Ms.SeidmanbringstotheBoardsignificantknowledgeofglobalaccountingand
financialreportingmattersinadditiontoregulatoryandseniormanagementexperience;and

(ix)

Mr.VanSaunhasservedfortwoyearsasthechiefexecutiveofficerandchairmanofaU.S.bank.Hehasextensiveexecutiveexperiencehaving
formerlyheldseveraladditionalseniormanagementpositionsatbanks.Asaresultofholdingthesepositions,Mr.VanSaunbringsfinancial
expertise,managementexperienceandexperiencemanagingabusinessinahighlyregulatedindustrybothinsidetheU.S.andinEurope.Hehas
alsoservedasadirectorofseveralcompaniescontributingtohisappreciationofcorporategovernancematters.

The Board of Directors recommends a vote FOR the election as directors of each of the nominees listed below.
Theprincipaloccupationandcertainotherinformation(includingageasofthedateofthisProxyStatement)aboutthenomineesaresetforthbelow.
DIRECTOR NOMINEES
BasilL.Anderson
DirectorsinceApril2004
BasilL.Anderson,age70,isChairmanoftheAuditCommitteeandisamemberoftheExecutiveandGovernanceandCompensationCommitteesofthe
BoardofDirectors.Mr.AndersonservedasViceChairmanofStaples,Inc.,anofficeproductscompany,fromSeptember2001untilhisretirementinMarch2006.
PriortojoiningStaples,Mr.AndersonservedasExecutiveVicePresidentandChiefFinancialOfficerofCampbellSoupCompanyfromApril1996toFebruary
2001.PriortojoiningCampbellSoup,Mr.AndersonwaswithScottPaperCompanywhereheservedinavarietyofcapacitiesbeginningin1975,includingVice
PresidentandChief

18

Table of Contents

FinancialOfficerfromDecember1993toDecember1995.Mr.AndersoncurrentlyisadirectorofStaples,Inc.(1997-present),BectonDickinson(2004-present)
andHasbro,Inc.(2002-present).
JorgeA.Bermudez
DirectorsinceApril2011
JorgeA.Bermudez,age64,isamemberoftheAuditandGovernanceandCompensationCommitteesoftheBoardofDirectors.HeservedasChiefRisk
OfficerofCitigroup,Inc.,aglobalfinancialservicescompany,fromNovember2007toMarch2008.BeforeservingasChiefRiskOfficer,Mr.Bermudezwas
ChiefExecutiveOfficerofCitigroupsCommercialBusinessGroupinNorthAmericaandCitibankTexasfrom2005to2007.HeservedasSeniorAdvisor,
CitigroupInternationalfrom2004to2006,asChiefExecutiveOfficerofCitigroupLatinAmericafrom2002to2004,ChiefExecutiveOfficer,eBusiness,Global
CashManagementandTradefrom1998to2002andHeadofCitibankCorporateandInvestmentBank,SouthAmericafrom1996to1998.Mr.Bermudezjoined
Citigroupin1975andheldleadershippositionsinotherdivisions,includingequityinvestments,creditpolicyandcorporatebankingfrom1984to1996.
Mr.BermudezcurrentlyisadirectoroftheElectricReliabilityCouncilofTexas(2010-present),theFederalReserveBankofDallas(2012-present)andamember
oftheTexasA&MFoundationBoardofTrustees(2014-present).HeservedasadirectorofCitibankN.A.from2005to2008,theFederalReserveBankofDallas,
HoustonBranchfrom2009to2011,theAssociationofFormerStudents,TexasA&MUniversityfrom2006to2012,theAmericanInstituteofArchitectsforthe
entiretyof2015andasChairmanoftheCommunityFoundationofBrazosValleyfromJuly2013toJuly2014.
DarrellDuffie,Ph.D.
DirectorsinceOctober2008
DarrellDuffie,Ph.D.,age61,isamemberoftheAudit,GovernanceandCompensationandExecutiveCommitteesoftheBoardofDirectors.HeistheDean
WitterDistinguishedProfessorofFinanceatStanfordUniversityGraduateSchoolofBusinessandhasbeenonthefinancefacultyatStanfordsincereceivinghis
Ph.D.fromStanfordin1984.Hehasauthoredbooksandresearcharticlesontopicsinfinanceandrelatedfields.Dr.DuffieisamemberoftheBoardofThePacific
InstituteofMathematicalSciencesandisaFellowandmemberoftheCounciloftheEconometricSocietyandaFellowoftheAmericanAcademyofArts&
Sciences.HeisChairmanoftheMarketParticipantsGrouponReferenceRateReform.Dr.DuffieservedasatrusteeofiSharesTrustandadirectorofiShares,Inc.
from2008to2011andwasPresidentoftheAmericanFinanceAssociationin2009.
KathrynM.Hill
DirectorsinceOctober2011
KathrynM.Hill,age59,isamemberoftheAuditandGovernanceandCompensationCommitteesoftheBoardofDirectors.Ms.Hillhasover30yearsof
experienceinbusinessmanagementandleadingengineeringandoperationsorganizations.Ms.HillservedinanumberofpositionsatCiscoSystems,Inc.from
1997to2013,including,amongothers,ExecutiveAdvisorfrom2011to2013,SeniorVicePresident,DevelopmentStrategyandOperationsfrom2009to2011,
SeniorVicePresident,AccessNetworkingandServicesGroupfrom2008to2009andSeniorVicePresident,EthernetSystemsandWirelessTechnologyGroup
from2005to2008.Ciscodesigns,manufacturesandsellsInternetProtocol(IP)-basednetworkingandotherproductsrelatedtothecommunicationsand
informationtechnologyindustryandprovidesservicesassociatedwiththeseproducts.PriortoCisco,Ms.Hillhadanumberofengineeringrolesatvarious
technologycompanies.Ms.HillisamemberoftheBoardofTrusteesfortheAnitaBorgInstituteforWomenandTechnology.Ms.Hillcurrentlyservesasa
directorofNetApp,Inc.(2013-present)andCelaneseCorporation(July2015-present).

19

Table of Contents

EwaldKist
DirectorsinceJuly2004
EwaldKist,age72,isamemberoftheAuditandGovernanceandCompensationCommitteesoftheBoardofDirectors.Mr.KistwasChairmanofING
GroepN.V.(INGGroup),afinancialservicescompany,from2000untilhisretirementinJune2004.BeforeservingasChairmanofINGGroup,Mr.Kistwas
ViceChairmanfrom1999to2000andservedasamemberoftheExecutiveBoardfrom1993to1999.PriortothemergerofNationaleNederlandenandNMB
PostbankGrouptoformINGGroupin1992,Mr.KistservedinavarietyofcapacitiesatNationaleNederlandenbeginningin1969,includingChairmanfrom1991
to1992,GeneralManagementtheNetherlandsfrom1989to1991andPresidentNationaleNederlandenU.S.Corporationfrom1986to1989.Mr.Kistcurrently
isadirectorofRoyalDSMN.V.(2004-present),andRoyalPhilipsElectronics(2004-present).HeservedasadirectorofDutchNationalBankfrom2004until
2012.
RaymondW.McDaniel,Jr.
DirectorsinceApril2003
RaymondW.McDaniel,Jr.,age58,hasservedasthePresidentandChiefExecutiveOfficeroftheCompanysinceApril2012,andservedastheChairman
andChiefExecutiveOfficerfromApril2005untilApril2012.HecurrentlyservesontheExecutiveCommitteeoftheBoardofDirectors.Mr.McDanielservedas
theCompanysPresidentfromOctober2004untilApril2005andtheCompanysChiefOperatingOfficerfromJanuary2004untilApril2005.Hehasservedas
ChiefExecutiveOfficerofMoodysInvestorsService,Inc.,asubsidiaryoftheCompany,sinceOctober2007.HeheldtheadditionaltitlesofPresidentfrom
November2001toAugust2007andDecember2008toNovember2010andChairmanfromOctober2007untilJune2015.Mr.McDanielservedastheCompanys
ExecutiveVicePresidentfromApril2003toJanuary2004,andasSeniorVicePresident,GlobalRatingsandResearchfromNovember2000untilApril2003.He
servedasSeniorManagingDirector,GlobalRatingsandResearch,ofMoodysInvestorsServicefromNovember2000untilNovember2001andasManaging
Director,Internationalfrom1996toNovember2000.Mr.McDanielcurrentlyisaDirectorofJohnWiley&Sons,Inc.(2005-present)andamemberoftheBoard
ofTrusteesofMuhlenbergCollege(2015-present).
HenryA.McKinnell,Jr.,Ph.D.
DirectorsinceOctober1997
HenryA.McKinnell,Jr.,age73,isChairmanoftheBoardofDirectorsandChairmanoftheExecutiveCommitteeandservesasamemberoftheAuditand
GovernanceandCompensationCommittees.Dr.McKinnellservedastheChiefExecutiveOfficerofOptimerPharmaceuticals,Inc.fromFebruary2013until
October31,2013.HeservedasChairmanoftheBoardofPfizerInc.,apharmaceuticalcompany,fromMay2001untilhisretirementinDecember2006andChief
ExecutiveOfficerfromJanuary2001toJuly2006.HeservedasPresidentofPfizerInc.fromMay1999toMay2001,andasPresidentofPfizerPharmaceuticals
GroupfromJanuary1997toApril2001.Dr.McKinnellservedasChiefOperatingOfficerofPfizerInc.fromMay1999toDecember2000andasExecutiveVice
Presidentfrom1992to1999.Dr.McKinnellisalsotheChairmanoftheBoardofAccordiaGlobalHealthFoundation(memberoftheboardfromSeptember2003present).HeisChairmanEmeritusoftheConnecticutScienceCenterandisamemberoftheAcademicAllianceforAIDSCareandPreventioninAfrica.
Dr.McKinnelljoinedtheBoardofEmmausLifeSciences,Inc.inMay2010andservedasChairmanfromMay2011untilSeptember2015.HeservedasChairman
ofOptimerPharmaceuticals,Inc.until2013anddirectorofAngiotechPharmaceuticals,Inc.until2011,PfizerInc.andExxonMobilCorporationuntil2007and
JohnWiley&Sonsuntil2005.

20

Table of Contents

LeslieF.Seidman
DirectorsinceDecember2013
LeslieF.Seidman,age53,isamemberoftheAuditandGovernanceandCompensationCommitteesoftheBoardofDirectors.SheisExecutiveDirectorof
theCenterforExcellenceinFinancialReportingatPaceUniversitysLubinSchoolofBusinessandaPublicGovernorfortheFinancialIndustryRegulatory
Authority(FINRA).SheservedastheChairmanoftheFinancialAccountingStandardsBoard(FASB)fromDecember2010toJune30,2013.Ms.Seidmanwas
firstappointedtotheFASBasamemberinJuly2003andwasreappointedtoasecondterminJuly2006.SheservedasActingChairmanfromOctober1,2010to
December2010.From2000to2003,Ms.SeidmanwasthefounderandmanagingmemberofLeslieF.SeidmanConsulting,LLC,afinancialreportingconsulting
firmthatservedglobalfinancialinstitutions,lawfirmsandaccountingfirms.From1994to1999,Ms.SeidmanservedontheFASBstaffinvariouscapacities
includingasAssistantDirectorofResearchandTechnicalActivities.From1987to1996,Ms.SeidmanservedasVicePresident,AccountingPolicyandinother
rolesatJ.P.Morgan&Company,Inc.(nowJPMorganChase&Co.)andfrom1984to1987,Ms.SeidmanservedasanauditorforArthurYoung&Co.(now
Ernst&Young,LLP).Ms.SeidmanisamembertheFinancialExecutivesInternationalandtheInstituteofManagementAccountants.
BruceVanSaun
DirectorsinceMarch2016
BruceVanSaun,age58,isamemberoftheAuditandGovernanceandCompensationCommitteesoftheBoardofDirectors.HehasservedasChairmanof
theBoardandChiefExecutiveOfficerofCitizensFinancialGroup,Inc.,aretailandcommercialbank,sinceOctober2013.FromOctober2009throughSeptember
2013,Mr.VanSaunservedastheRBSGroupFinanceDirectorandamemberoftheboardofdirectorsofTheRoyalBankofScotlandGroupplc(RBS),aglobal
bankingandfinancialservicesgroupandtheformerparentcompanyofCitizensFinancialGroup,Inc.From1997to2008,Mr.VanSaunheldanumberofsenior
positionswithBankofNewYorkandlaterBankofNewYorkMellon,includingViceChairmanandChiefFinancialOfficer.Earlierinhiscareer,heheldsenior
positionswithDeutscheBank,WassersteinPerellaGroupandKidderPeabody&Co.Inaddition,Mr.VanSaunhasservedasadirectoronthefranchiseboardof
LloydsofLondonsinceSeptember2012withatermexpiringonMay31,2016.HehaspreviouslyservedontheboardsofTheRoyalBankofScotlandplcand
NationalWestminsterBank,plc,eachanRBSaffiliate,fromOctober2009toSeptember2013,DirectLineInsuranceGroupplcfromApril2012toOctober2013
andWorldPay(ShipMidcoLimited)fromJuly2011toOctober2013.
ITEM 2RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS
TheAuditCommitteeevaluatestheselectionoftheCompanysindependentauditoreachyear,andhasappointedKPMGLLPastheCompanys
independentregisteredpublicaccountingfirmtoaudittheconsolidatedfinancialstatementsoftheCompanyfortheyearendingDecember31,2016.KPMGLLP
auditedtheconsolidatedfinancialstatementsoftheCompanyfortheyearendedDecember31,2015.IndeterminingwhethertoreappointKPMGasthe
Companysindependentauditor,theAuditCommitteetookintoconsiderationanumberoffactors,including:KPMGsperformanceonprioraudits,andthequality
andefficiencyoftheservicesprovidedbyKPMG;anassessmentofthefirmsprofessionalqualifications,resourcesandexpertise;KPMGsknowledgeofthe
Companysbusinessandindustry;thequalityoftheAuditCommitteesongoingcommunicationswithKPMGandofthefirmsrelationshipwiththeAudit
CommitteeandCompanymanagement;KPMGsindependence;theappropriatenessofKPMGsfees;thelengthoftimethefirmhasservedinthisrole;theimpact
ofchangingauditors;anddataonauditqualityandperformance,includingrecentPCAOBreportsonKPMGLLPandpeerfirms.Consideredtogether,these
factorsenabletheAuditCommitteetoevaluatewhethertheselectionofKPMGLLPastheCompanysindependentauditor,andtheretentionofKPMGLLPto
performotherservices,willcontributetoandenhanceauditquality.Basedonitsevaluation,theAudit

21

Table of Contents

CommitteebelievesthatthecontinuedretentionofKPMGLLPtoserveastheCompanysindependentregisteredpublicaccountingfirmisinthebestinterestof
ourstockholders.
Asamatterofgoodcorporategovernance,theAuditCommitteehasrequestedtheBoardofDirectorstosubmittheselectionofKPMGLLPasthe
Companysindependentregisteredpublicaccountingfirmfor2016tostockholdersforratification.IftheappointmentofKPMGLLPisnotratifiedby
stockholders,theAuditCommitteewillre-evaluateitsselectionandwilldeterminewhethertomaintainKPMGLLPastheCompanysindependentregistered
publicaccountingfirmortoappointanotherindependentregisteredpublicaccountingfirm.ArepresentativeofKPMGLLPisexpectedtobepresentattheAnnual
Meeting.Suchrepresentativewillhavetheopportunitytomakeastatementifhesodesiresandisexpectedtobeavailabletorespondtoappropriatequestions.
The Board of Directors recommends a vote FOR ratification of the appointment of KPMG LLP as the Companys independent registered public
accounting firm for 2016.
PRINCIPAL ACCOUNTING FEES AND SERVICES
Audit Fees
Theaggregatefeesforprofessionalservicesrenderedfor(i)theintegratedauditoftheCompanysannualfinancialstatementsfortheyearsended
December31,2015and2014,(ii)thereviewofthefinancialstatementsincludedintheCompanysReportsonForms10-Qand8-K,and(iii)statutoryauditsof
subsidiaries,wereapproximately$3.0and$3.1millionin2015and2014,respectively.Thesefeesincludedamountsaccruedbutnotbilledof$2.0millionand$2.2
millionintheyearsendedDecember31,2015and2014,respectively.
Audit-Related Fees
Theaggregatefeesbilledforaudit-relatedservicesrenderedtotheCompanywereapproximately$0.1millioninbothoftheyearsendedDecember31,2015
and2014.Suchservicesincludedemployeebenefitplanaudits.
Tax Fees
TheaggregatefeesbilledforprofessionalservicesrenderedfortaxservicesrenderedbytheauditorsfortheyearsendedDecember31,2015and2014were
approximately$0and$0,respectively.
All Other Fees
TheaggregatefeesbilledforallotherservicesrenderedtotheCompanybyKPMGLLPfortheyearsendedDecember31,2015and2014were
approximately$0and$0,respectively.
ITEM 3ADVISORY RESOLUTION APPROVING EXECUTIVE COMPENSATION
WeareaskingstockholderstovoteonanadvisoryresolutionapprovingthecompensationoftheCompanysexecutiveswhoarenamedintheSummary
CompensationTablewhichappearsonpage48(referredtoastheNamedExecutiveOfficersorNEOs)inthisProxyStatement.Asdescribedinthe
CompensationDiscussionandAnalysissectionofthisProxyStatement,thegoaloftheGovernanceandCompensationCommittee(theCommittee)insetting
executivecompensationistoprovideacompetitivetotalcompensationpackagethatassistsintheretentionoftheCompanysexecutivesandmotivatesthemto
performatasuperiorlevelwhileencouragingbehaviorthatisinthelong-termbestinterestsoftheCompanyanditsstockholders.Consistentwith

22

Table of Contents

thisphilosophy,asignificantportionofthetotalcompensationopportunityforeachofMoodysexecutivesisperformance-based,andultimatelydependentupon
theCompanysachievementofspecifiedgoalsthatarebothfinancialandoperating(non-financial)innature,andalignedwithshareholdervaluecreation.
Moodysachievedrevenueandearningspersharegrowthforthesixthconsecutiveyeardespitedifficultmarketconditions.TheCompanysfull-year2015
resultsreflectedpositivefinancialperformanceinMoodysInvestorsService(MIS),withrevenueincreasing3%fromthepriorperiod,andgrowthinMoodys
Analytics(MA)withrevenueup8%fromfull-year2014.Theserevenueresultswereachievedinspiteoftheunfavorableimpactofforeignexchangerates.The
CompanyconfrontedobstaclesasworldwideeconomicandpoliticalconditionsandchangesinmonetaryandfiscalpoliciesimpactedthecreditmarketsandMIS
andothercreditratingagenciescontinuedtobethesubjectofheightenedscrutinyandincreasedregulation.
TheCompanyoperatesundergovernancestandardsthatitbelievesbestserveitsstockholders,whilealsoincorporatingcertainbestpracticesin
governanceandexecutivecompensation,includingthefollowing:

Long-Term Performance-Based Shares Foreachofthepastseveralyears,theCompanyhasgrantedthree-yearperformance-basedshareawards

withperformancethresholdsbasedontheCompanyscumulativeprofitability(measuredinEBITDA),MoodysInvestorsServicesratingsaccuracy
performance,andMoodysAnalyticscumulativesalesovertherelevantthree-yearperiod.Dividendsdonotaccrueonunvestedshares;

Balanced Mix of Performance-Based Equity Awards NEOsaregrantedabalancedmixoflong-termequityawardssplit40%intheformofstock

optionsand60%inperformance-basedshareawards;

Clawback Policy Annualcashincentivepaymentsandperformance-basedshareawardsaresubjecttotheCompanysclawbackpolicyunderwhich

amountscanberecoupedinthecaseofafinancialrestatement,fraudorothermisconduct;

Limited Executive Employment Agreements TheCompanydoesnotmaintainemploymentagreementswithitsexecutives,includingtheNEOs,

exceptforMr.MadelainsstatutorilyrequiredagreementunderUnitedKingdomlaw;

Limited Executive Perquisites TheCompanydoesnotprovideperquisitesorotherpersonalbenefitswithanaggregateannualvalueofmorethan

$10,000toitsNEOs,otherthanMr.Madelain,whoreceivedamodestcarallowance(asisthepracticeintheUnitedKingdomforcorporateofficers);

No Automatic Cash-Based Payments Upon a Change in Control TheCompanydoesnotprovidesingle-triggercashpaymentsthatareprompted

solelybyachangeincontrol;

No New Single-Trigger Equity Awards TheCompanyhasnotprovidedsingle-triggercashpaymentsthatarepromptedsolelybyachange-incontrol.Inaddition,commencingin2013,equityawardsgrantedtotheCompanysexecutiveofficersdonotprovideforacceleratedvestingor

settlementsolelyuponachange-in-controlwhenthesurvivingcompanyassumestheequityawards;

No Tax Gross-Ups on Perquisites and Change-in-Control Payments TheCompanydoesnotprovideanytaxgross-upsonperquisitestoexecutive

officersorchange-in-controlpaymentstoexecutiveofficers;

Stock Ownership Guidelines TheCompanyhasrobuststockownershipguidelinesforitsexecutives(includingtheNEOs)andnon-management

directors,aswellasarequirementthatexecutivesandnon-managementdirectorswhoaresubjecttotheCompanysguidelinesmustretaina
significantpercentage(75%)ofthenetsharesreceivedthroughequityawardsuntilsatisfyingtheirownershipgoals;and

Anti-Hedging and Anti-Pledging Policy TheCompanyprohibitsexecutiveofficersanddirectorsfrom(i)makingshortsalesofMoodys

securities;(ii)engaginginspeculativetransactionsorenteringintoanytransaction(includingpurchasingforwardcontracts,equityswaps,putsor
calls)that

23

Table of Contents

aredesignedtooffsetanydecreaseinthemarketvalueoforareotherwisebasedonthepriceofMoodyssecurities;(iii)holdingMoodyssecuritiesin
marginaccounts;and(iv)pledgingMoodyssecuritiesascollateralforaloan.

WeurgestockholderstoreadtheCD&Abeginningonpage27ofthisProxyStatement,whichdescribesinmoredetailhowourexecutivecompensation
policiesandproceduresoperateandaredesignedtoachieveourcompensationobjectives,aswellastheSummaryCompensationTableandrelatedcompensation
tablesandnarrative,beginningonpage48,whichprovidedetailedinformationonthecompensationofourNamedExecutiveOfficers.TheCommitteeandthe
BoardofDirectorsbelievethatthepoliciesandproceduresarticulatedintheCD&AareeffectiveinachievingourgoalsandthatthecompensationofourNamed
ExecutiveOfficersreportedinthisProxyStatementhassupportedandcontributedtotheCompanyssuccess.
InaccordancewithSection14AoftheExchangeAct,andasamatterofgoodcorporategovernance,theBoardisaskingstockholderstovoteatthe2016
AnnualMeetingofStockholdersonthefollowingadvisoryresolutionapprovingexecutivecompensation:
RESOLVED,thatthestockholdersofMoodysCorporation(theCompany)approve,onanadvisorybasis,thecompensationoftheCompanys
NamedExecutiveOfficersdisclosedintheCompensationDiscussionandAnalysis,theSummaryCompensationTableandtherelatedcompensationtables
andnarrativeintheProxyStatementfortheCompanys2016AnnualMeetingofStockholders.
Thisadvisoryresolution,commonlyreferredtoasasay-on-payresolution,isnon-bindingontheBoard.Althoughnon-binding,theBoardandthe
CommitteewillreviewandconsiderthevotingresultswhenevaluatingtheCompanysexecutivecompensationprogram.
AfterconsiderationofthevoteofstockholdersattheCompanys2011annualmeetingofstockholdersandotherfactors,theBoarddeterminedtoholdavote
onanadvisoryresolutionapprovingexecutivecompensationannually,althoughitmaydeterminetovarythepracticebasedonfactorssuchasdiscussionswith
stockholders.Accordingly,unlesstheBoardmodifiesitspolicyonthefrequencyoffuturesay-on-payadvisoryvotes,thenextvoteonanadvisoryresolution
approvingexecutivecompensationwillbeheldattheCompanys2017annualmeetingofstockholders.
The Board of Directors recommends a vote FOR the advisory resolution approving executive compensation.

24

Table of Contents

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

ThetablebelowsetsforththenumberofsharesofCommonStockbeneficiallyownedasofthedatesindicatedbelowby(i)eachdirectorandnomineefor
directoroftheCompany,(ii)eachnamedexecutiveofficerlistedintheSummaryCompensationTablebelow(theNamedExecutiveOfficersorNEOs),(iii)all
directorsandexecutiveofficersoftheCompanyasagroup,and(iv)eachpersonwhoisknowntotheCompanytobethebeneficialownerofmorethan5%ofthe
outstandingsharesofCommonStock(theCompanys5%Owners).Stockownershipinformationisbasedon(a)thenumberofsharesofCommonStock
beneficiallyownedbydirectorsandexecutiveofficersasofDecember31,2015(basedoninformationsuppliedtotheCompanybythem),calculatedinaccordance
withSECrules,and(b)thenumberofsharesofCommonStockheldbytheCompanys5%Owners,basedoninformationfiledwiththeSECbytheCompanys
5%Owners.Unlessotherwiseindicatedandexceptfortheinterestsofindividualsspouses,thestockholderslistedbelowhavesolevotingandinvestmentpower
withrespecttothesharesindicatedasownedbythem.PercentagesarebaseduponthenumberofsharesofCommonStockoutstandingonDecember31,2015,and,
whereapplicable,thenumberofsharesofCommonStockthattheindicatedbeneficialownerhadarighttoacquirewithin60daysofsuchdate.Thetablealsosets
forthownershipinformationconcerningStockUnits,thevalueofwhichismeasuredbythepriceoftheCommonStock.StockUnitsdonotconfervotingrights
andarenotconsideredbeneficiallyownedsharesunderSECrules.

Name

Aggregate Amount of
Shares Beneficially
Owned(1)

Stock Units(2)

Percentage of
Shares
Outstanding(3)

MarkE.Almeida

391,217

BasilL.Anderson

36,342

11,683

JorgeA.Bermudez

12,594

DarrellDuffie

21,100

JohnJ.Goggins

252,577

KathrynM.Hill

10,531

LindaS.Huber

355,123

EwaldKist

27,683

MichelMadelain

252,838

RaymondW.McDaniel,Jr.

977,871(5)

HenryA.McKinnell,Jr.

117,820

1,778

LeslieF.Seidman

3,469

BruceVanSaun

(6)

JohnK.Wulff

36,342

1,094

Allcurrentdirectorsandexecutiveofficersasagroup(19)persons)

2,895,601

14,555

1.48%

BerkshireHathaway,Inc.

24,669,778(7)(8)

12.58%

WarrenE.Buffett,NationalIndemnityCompany,
GEICOCorporation,GovernmentEmployeesInsurance
Company,3555FarnamStreet,Omaha,Nebraska68131

TheVanguardGroup

14,325,948(9)

7.31%

100VanguardBlvd.,Malvern,Pennsylvania19355

BlackRockInc.

12,136,406(10)

6.19%

55East52ndStreet,NewYork,NewYork10022

*
Representslessthan1%oftheoutstandingCommonStock.
(1) IncludesthemaximumnumberofsharesofCommonStockthatmaybeacquiredwithin60daysofDecember31,2015,upontheexerciseofvestedstock
optionsasfollows:Mr.Almeida258,030;Mr.Goggins206,738;Ms.Huber305,176;Mr.Madelain184,021;Mr.McDaniel754,705;andall
currentdirectorsandexecutiveofficersasagroup1,960,827.Alsoincludesthefollowingsharesofrestrictedstockoverwhichnon-managementdirectors
hadvoting(butnotdispositive)powerasof

25

Table of Contents

December31,2015:Mr.Anderson1,581;Mr.Bermudez1,581;Dr.Duffie1,581;Ms.Hill1,581;Mr.Kist1,581;Dr.McKinnell2,092;
Ms.Seidman1,581;andMr.Wulff1,581;andallcurrentdirectorsandexecutiveofficersasagroup46,126.Pleasenotethatshareswhichveston
March1,2016havebeenincludedinthesefigures.

(2)

Consistsofstockunits(payabletonon-managementdirectorsafterretirement),thevalueofwhichismeasuredbythepriceoftheCommonStock,received
undervariousnon-managementdirectorcompensationarrangementsoftheCompanyanditspredecessor.Theseunitsdonotconfervotingrightsandarenot
consideredbeneficiallyownedsharesofCommonStockunderSECrules.Additionalstockunitsaccrueovertimetoreflectthedeemedreinvestmentof
dividends.

(3)

PercentagesarebaseduponthenumberofsharesoutstandingasofDecember31,2015and,whereapplicable,thenumberofsharesofCommonStockthat
theindividualbeneficialownerhadarighttoacquirewithin60daysofsuchdate.

(4)

Thisamountincludes500sharesheldinacharitableaccountbyMr.Almeida.

(5)

Thisamountincludes2,000sharesofCommonStockownedbyMr.McDanielsspouse.

(6)

JoinedtheBoardofDirectorsinMarch2016.

(7)

AssetforthinAmendmentNo.3totheSchedule13GjointlyfiledwiththeSEConFebruary14,2014byWarrenE.Buffett,BerkshireHathawayInc.,
NationalIndemnityCompany,GEICOCorporationandGovernmentEmployeesInsuranceCompany,(a)eachofMr.Buffett,BerkshireHathawayInc.and
NationalIndemnityCompanyhadsharedvotingpowerandshareddispositivepowerwithrespectto24,669,778sharesreportedinsuchAmendmentNo.3to
theSchedule13Gand(b)eachofGEICOCorporationandGovernmentEmployeesInsuranceCompanyhadsharedvotingpowerandshareddispositive
powerwithrespectto11,973,928ofsuch24,669,778shares.BasedonthenumberofCompanysharesoutstandingasofFebruary17,2016,therecorddate,
thepercentageofCompanysharesbeneficiallyownedis12.66%.

(8)

ThisaddressislistedinAmendmentNo.3totheSchedule13GjointlyfiledwiththeSEConFebruary14,2014astheaddressofeachofMr.Buffettand
BerkshireHathawayInc.TheaddressofNationalIndemnityCompanyislistedas3024HarneyStreet,Omaha,Nebraska68131;andtheaddressofGEICO
CorporationandGovernmentEmployeesInsuranceCompanyislistedas1GEICOPlaza,Washington,D.C.20076.

(9)

AssetforthinAmendmentNo.3totheSchedule13GfiledwiththeSEConFebruary10,2016byTheVanguardGroup.TheVanguardGrouphadsole
votingpowerwithrespectto322,100shares,sharedvotingpowerwithrespectto18,000shares,soledispositivepowerwithrespectto13,979,155sharesand
shareddispositivepowerwithrespectto346,793oftheir14,325,948sharesasofDecember31,2015.

(10) AssetforthinAmendmentNo.2totheSchedule13GfiledwiththeSEConFebruary10,2016byBlackRockInc.BlackRockInc.hadsolevotingpowerof
10,232,375sharesandsoledispositivepowerwithrespectto12,136,406oftheir12,136,406sharesasofDecember31,2015.
Section 16(a) Beneficial Ownership Reporting Compliance
Section16(a)oftheExchangeActrequirestheCompanysdirectors,executiveofficersandpersonswhobeneficiallyownmorethan10%ofaregistered
classoftheCompanysequitysecuritiestofilewiththeSECreportsonForms3,4and5concerningtheirownershipof,andtransactionsin,theCommonStock
andotherequitysecuritiesoftheCompany.Asapracticalmatter,theCompanyassistsitsdirectorsandexecutivesbymonitoringtransactionsandcompletingand
filingreportsontheirbehalf.
BasedsolelyontheCompanysreviewofcopiesofsuchreportsfurnishedtotheCompanyandwrittenrepresentationsthatnootherreportsarerequired,the
Companybelievesthatallofitsexecutiveofficers,directorsandthosegreater-than-10%stockholdersthatfiledanyreportsfortheyearendedDecember31,2015
reportedalltransactionsonatimelybasis.

26

Table of Contents

COMPENSATION DISCUSSION AND ANALYSIS

Moodysexecutivecompensationprogramsaredesignedtofosterandmaintainastrong,capable,experiencedandmotivatedexecutiveteamwiththeability
tomanagethebusinessduringchallengingtimesandtochangeasmarketpracticeswarrantbyaligningcompensationwithbusinessperformanceandshareholders.
ThisdiscussionandanalysisprovidesaguidetoMoodysexecutivecompensationprogramsandexplainsthedecisionsoftheGovernanceandCompensation
Committee(theCommittee)regardingcompensationreportedfor2015forRaymondW.McDaniel,Jr.,theChiefExecutiveOfficer(referredtoastheCEO),
andtheotherexecutiveofficersnamedintheSummaryCompensationTableonpage48(togetherwiththeCEO,referredtoastheNamedExecutiveOfficersor
NEOs).
E XECUTIVE S UMMARY
Strong Business Results Considered
Moodysachievedrevenueandearningspersharegrowthforthesixthconsecutiveyeardespitedifficultmarketconditions.TheCompanysfull-year2015
resultsreflectedpositivefinancialperformanceinMoodysInvestorsService(MIS),withrevenueincreasing3%fromthepriorperiod,andgrowthinMoodys
Analytics(MA)withrevenueup8%fromfull-year2014.Theserevenueresultswereachievedinspiteoftheunfavorableimpactofforeignexchangerates.The
CompanyconfrontedobstaclesasworldwideeconomicandpoliticalconditionsandchangesinmonetaryandfiscalpoliciesimpactedthecreditmarketsandMIS
andothercreditratingagenciescontinuedtobethesubjectofheightenedscrutinyandincreasedregulation.
ThehighlightsoftheCompanys2015performanceinclude:

2015revenueof$3.5billionup5%from2014;up9%onaconstantcurrencybasis.

2015operatingincomeof$1.5billionincreased2%from$1.4billionfor2014.

2015GAAPearningspershareof$4.63versus$4.61in2014;2015non-GAAPearningspershareof$4.60up9%from2014.

achievedapproximately100%oftheCompanysthree-yearprofitabilityperformancetarget.

TheseoperatingandfinancialperformanceachievementsformedthebasisfortheCommitteesawarddeterminations.

FortheNEOs(allofwhomwereNEOsin2014aswell),cashincentiveawardsrangedfromapproximately87.4%oftargetto133.2%oftarget.This
levelofpayoutreflectsMoodysstrongbusinessperformanceandresultsoutlinedabove.

Thegrantdatefairvalueofthelong-termequityincentiveawardgrantedtotheCEOinFebruary2015wasapproximately22%higherthanthe2014
grantdateawardvalue.ThegrantsawardedtotheNEOgroup(excludingtheCEO)inFebruary2015increasedonaveragebyapproximately12%
fromthevalueoftheFebruary2014awards.ThisincreasereflectedtheCompanys2014performance,andtobringlong-termincentivelevelsand
totalcompensationclosertomarket.

TheperformancesharecycleendedDecember31,2015resultedinapayoutof93.4%oftargetforMIS,97.5%oftargetforMAand96.2%oftarget
forMoodysSharedServices(MSS)ofperformancesharesgrantedforthe2013-2015performancecycle.

27

Table of Contents

G OVERNANCE H IGHLIGHTS
TheCompanyoperatesundergovernancestandardsthatitbelievesbestserveitsstockholders,whilealsoincorporatingcertainbestpracticesin
governanceandexecutivecompensation,includingthefollowing:

What We Do

What We Dont Do

Long-Term Performance-Based Shares Foreachofthepastseveral

years,theCompanyhasgrantedthree-yearperformance-basedshare
awardswithperformancethresholdsbasedontheCompanyscumulative
profitabilitymeasuredinEBITDA(includingfutureacquisitions,ifany),
MoodysInvestorsServicesratingsaccuracyperformance,andMoodys
Analyticscumulativesalesovertherelevantthree-yearperiod.Dividends
donotaccrueonunvestedshares;

Limited Executive Employment Agreements TheCompanydoesnot

maintainemploymentagreementswithitsexecutives,includingthe
NEOs,exceptforMr.Madelainsstatutorilyrequiredagreementunder
UnitedKingdomlaw;

No Automatic Cash-Based Payments Upon a Change in Control The

Companydoesnotprovidesingle-triggercashpaymentsthatare
promptedsolelybyachangeincontrol;

Balanced Mix of Performance-Based Equity Awards NEOsare

grantedabalancedmixoflong-termequityawardssplit40%intheformof
stockoptionsand60%inperformance-basedshareawards;

No New Single-Trigger Equity Awards TheCompanyhasnotprovided

single-triggercashpaymentsthatarepromptedsolelybyachange-incontrol.Inaddition,commencingin2013,equityawardsgrantedtothe
Companysexecutiveofficersdonotprovideforacceleratedvestingor
settlementsolelyuponachange-in-controlwhenthesurvivingcompany
assumestheequityawards;

Clawback Policy AnnualcashincentivepaymentsandperformancebasedshareawardsaresubjecttotheCompanysclawbackpolicyunder

whichamountscanberecoupedinthecaseofafinancialrestatement,
fraudorothermisconduct;

Limited Executive Perquisites TheCompanydoesnotprovide

perquisitesorotherpersonalbenefitswithanaggregateannualvalueof
morethan$10,000toitsNEOs,otherthanMr.Madelain,whoreceiveda
modestcarallowance(asisthepracticeintheUnitedKingdomfor
corporateofficers);and

Stock Ownership Guidelines TheCompanyhasrobuststock

ownershipguidelinesforitsexecutives(includingtheNEOs)andnonmanagementdirectors,aswellasarequirementthatexecutivesandnonmanagementdirectorswhoaresubjecttotheCompanysguidelinesmust
retainasignificantpercentage(75%)ofthenetsharesreceivedthrough
equityawardsuntilsatisfyingtheirownershipgoals;and

No Tax Gross-Ups on Perquisites and Change-in-Control Payments

TheCompanydoesnotprovideanytaxgross-upsonperquisitesto
executiveofficersorchange-in-controlpaymentstoexecutiveofficers.

Anti-Hedging and Anti-Pledging Policy TheCompanyprohibits

executiveofficersanddirectorsfrom(i)makingshortsalesofMoodys
securities;(ii)engaginginspeculativetransactionsorenteringintoany
transaction(includingpurchasingforwardcontracts,equityswaps,putsor
calls)thataredesignedtooffsetanydecreaseinthemarketvalueoforare
otherwisebasedonthepriceofMoodyssecurities;(iii)holdingMoodys
securitiesinmarginaccounts;and(iv)pledgingMoodyssecuritiesas
collateralforaloan.

P HILOSOPHY OF THE E XECUTIVE C OMPENSATION P ROGRAM

Moodysexecutivecompensationprogramisdesignedto:

Link asubstantialpartofeachexecutivesrealizedcompensationtotheachievementoftheCompanysfinancialandoperatingobjectivesandtothe
individualsperformance.

28

Table of Contents

Align executivesrewardswithchangesinthevalueofstockholdersinvestments.

Weimplementthislinkage andalignment by:

awardingtheNEOsannualcashincentivecompensationthatisbasedontheCompanysperformanceagainstfinancialobjectives
specifiedatthebeginningoftheperformanceyearandanevaluationofindividual,qualitativeandlargelyoperational(non-financial)
accomplishmentsandperformanceduringthatyear;

usingCompanyperformance(whichfor2015wasbasedontheCompanysoperatingincome,businessunitoperatingincomeandEPS)
todeterminetheoverallfundingoftheannualcashincentivecompensationpoolthatwillbedistributedtotheNEOs;

establishingthetargetedlong-termequityawardmixfortheCEOandallNEOsat40%optionsand60%performanceshares,inorder
totierealizablecompensationdirectlytopre-establishedperformancegoalsandfutureincreasesinshareholdervalue;

providinglong-termequity-basedincentivesintheformofperformancesharesthatwillbeearnedfollowingthecompletionofathreeyearperformanceperiodonlyifcertainperformancegoalsareachievedorexceededandstockoptionsthatwilldelivervaluetothe
executivesonlyifshareholdervalueincreasesfromthedatetheawardsaregranted;and

basingthresholdsfor2015-2017performancesharesontheCompanysEBITDA(includingfutureacquisitions,ifany),MISsratings
accuracyperformanceandMAssalesoverthethree-yearperiod(includingsalesfromentitiesacquiredinfutureacquisitions,ifany).
TheweightsofthesemetricsvarydependingoneachNEOsroleandresponsibilities.

Provideacompetitive totalcompensationpackagethatwillmotivate theCompanysexecutivestoperformatasuperiorlevelandwillassistin

incentivizingandretainingtheexecutives.Whendesigningthetotalcompensationpackage,wecomparedatatothatofagroupofselectpeer
companiesandthebroaderfinancialservicesindustry,asdiscussedfurtherinthePeerandMarketReviewsectionbeginningonpage40.
Additionally,whenmakingNEOcompensationdecisions,weconsidereachNEOsskills,experience,tenureandperformanceduringtheprioryear.

E LEMENTS OF M OODY S C OMPENSATION P ROGRAM

ThefollowingtableliststheelementsofMoodys2015executivecompensationprogramandtheprimarypurposeofeach:

Element

Base
Salary

Form

Cash

Objectives and Basis

Basesalaryisintendedtoprovidealevelofpaythatisappropriategivenprofessional
status,jobcontent,marketvalue,accomplishmentsandinternalequity.

MoodysgenerallytargetsbasesalariesforeachNEOatthemedianofsalariesof
executivesinsimilarpositionswithinthepeergroupand/orthebroaderfinancialservices
market,buthasdiscretiontopayaboveorbelowthetargetedamountbasedonfactorssuch
asexperience,performanceandretention.Moodysbelievesitisimportanttoexercise
discretionandjudgmentindeterminingbasesalarylevelsinordertoattractandretain
superiortalentandtorewardofficerswithagreaterscopeofresponsibilitiesordeeper
experiencethantheirpeerswithinthepeergroupand/orthebroaderfinancialservices
market.

29

Table of Contents
Element

Form

Annual
Cash
Incentives

Objectives and Basis

Cash

Annualcashincentivesareintendedtorewardperformanceandassistinmotivationand
retentionofmanagement.

Individualtargetamountsaresetattheapproximatemedianbaseduponacompetitivereview
againstthepeergroupand/orthebroaderfinancialservicesmarket,aswellasinternalpay
equity.

AwardpayoutsarefinalizedattheCommitteesFebruarymeetingfollowingtheperformance
yearinquestiontoreflectboththeCompanysfinancialperformanceandtheoutcomeofa
reviewofeachNEOsperformanceagainsthisorherannualobjectives;actualpayoutsare
typicallymadeatthebeginningofMarchfollowingtheperformanceyearinquestion.

Awardscustomarilyaremadeunderthe2004MoodysCorporationCoveredEmployeeCash
IncentivePlan,asamended(the2004Plan)(whichstockholdersre-approvedatthe2015
AnnualMeeting),althoughtheCommitteeretainstherighttopaydiscretionarycash
incentivesoutsideofthe2004Planwhencircumstanceswarrant.

Long-Term
Incentive
Compensation

Performance
Sharesand
Stock
Options

TohelpbalancetheneedtomotivatetheNEOstodrivelong-termstockholdervalue,manage
thenumberofsharesusedtodeliverequityawards,andallowtheCompanytomeasureand
rewardabroadersetoflong-termgoals,theCommitteedeliversequityincentive
compensationinpartthroughstockoptionsandinpartthroughperformance-basedshares,in
eachcaseasmeasuredbygrantdatevalue.

Theaggregategrantdatevalueoflong-termequityincentivecompensationawardsgenerally
istargetedattheapproximatemedianofexecutivesinthepeergroupand/orthebroader
financialservicesmarket,althoughtheCommitteeretainsdiscretiontoadjustawardsbased
ontheCompanysperformance,theNEOsroleinthatperformance,theneedforretentionof
thatNEO,andCompanyaffordability.

Stockoptionshaveastrikepriceofnolessthan100%oftheaverageofthehighandthelow
marketpriceofourcommonstockonthedateofgrantandvestbasedoncontinuedservice
overfouryearsinannual25%increments,whichmeansthatexecutives:(i)willrealizevalue
fromtheirawardsonlyifthemarketpriceoftheCompanysstockappreciatesabovethe
optionsexercisepriceaftertheoptionshavevested,and(ii)willbemotivatedtoremainwith
theCompanyduetothemulti-yearvestingschedule.Stockoptionsexpiretenyearsafter
grantdate.

30

Table of Contents
Element

Form

Objectives and Basis

Performanceshareswillbeearnedfollowingthecompletionofathree-yearperformance
periodonlyifpre-establishedperformancegoalsaremetorexceeded.Forthe2015-2017
performanceperiod,theseperformancethresholdsarebasedontheCompanysaggregate
EBITDA(includingfutureacquisitions,ifany),MISsratingsaccuracyperformance,and
MAsaggregatesalesoverthethree-yearperiod(includingsalesfromentitiesacquiredin
futureacquisitions,ifany).TheweightsofthesemetricsvarydependingoneachNEOsrole
andresponsibilities.

In2015,equityawardgrantsweremadethreebusinessdaysafterthereleaseofthe
Companysyear-endearnings.

Thenumberofperformancesharestreatedasvestedandthecorrespondingnumberofshares
actuallyissuedtoanemployeeaspayoutattheendofthethreeyearperformanceperiodmay
belessthanthenumberdeterminedbytheperformancegoalformulaatthediscretionofthe
Committee.

Perquisites

Limited

Broad-based
andnon-tax
qualified
plans

MoodysdoesnotprovideanyNEOperquisitesorotherpersonalbenefitswithan
incrementalcostgreaterthan$10,000,otherthanamodestcarallowanceprovidedto
Mr.Madelain(asisthepracticeintheUKforcorporateofficers).

Retirement
Benefits

Defined Contribution Plans. MoodysoffersitsU.S.employees,includingtheNEOs,the

opportunitytoparticipateinatax-qualifieddefinedcontributionplan,theProfitParticipation
Plan,andoffershighlycompensatedseniormanagement,includingtheNEOswhoresidein
theU.S.,avoluntarydeferredcompensationplan(theMoodysCorporationDeferred
CompensationPlan,orDCP).

TheprimarypurposeoftheDCPistoallowcertainemployeestomakepre-taxdeferralsinto
anonqualifiedplanandtoreceivethemaximumcompanymatchoncompensationwithout
regardtoIRSlimitsthatapplytotheProfitParticipationPlan.TheCompanymatchonly
appliestodeferralsinexcessoftheIRSlimitoncompensationthatcanbetakenintoaccount
underatax-qualifieddefinedcontributionplan.Inaddition,theCompanywillcredittothe
DCPemployercontributionsthatwouldhavebeenmadetotheProfitParticipationPlanbut
fortheapplicationoftheIRStotalcontributionlimit.

AdditionalinformationregardingtheDCPisfoundonpage57.

Mr.MadelainparticipatesinMoodysUKGroupPersonalPensionPlan,whichisadefined
contributionplan,describedonpage56.

31

Table of Contents
Element

Form

Objectives and Basis

Defined Benefit Plans . AlloftheNEOsbasedintheU.S.participateinthetax-qualified

MoodysCorporationRetirementAccount(theRetirementAccount)andthenonqualifiedPensionBenefitEqualizationPlan(PBEP)whichrestoresbenefitsthatcannot
bedeliveredthroughtheRetirementAccountduetoIRSqualifiedplanlimits.Threeofthe
NEOsbasedintheU.S.participateintheSupplementalExecutiveBenefitPlan(SEBP).
SEBPparticipantscanaccrueacombinedbenefitunderallthreepensionplansofupto
60%offinalaveragecompensation.Allthreeofthesepensionplanshavebeenclosedto
newparticipantssince2008.

MoredetailsregardingtheRetirementAccount,thePBEPandtheSEBPareprovidedinthe
narrativefollowingthePensionBenefitsTablefor2015onpage54.

Weighting of ElementsFixed versus At Risk Compensation

For2015,theCompanyrevieweddatafromitspeergroupandthebroaderfinancialservicesmarket,asdiscussedinfurtherdetailinthePeerandMarket
Reviewsectionbeginningonpage40.TheCommittee,basedontherecommendationsoftheCEO(excludingwithrespecttohisownpay)andtheCommittees
independentcompensationconsultant,MeridianCompensationPartnersLLC(Meridian),hasdeterminedthatthelargemajorityofanNEOstotaldirect
compensationpackage(whichincludessalary,performanceshareawards,optionawardsandnon-equityincentiveplancompensation)shouldbeatrisk,meaning
theamountsthatmayultimatelyberealizedbyanexecutivecanvarybasedonperformance.TheatriskelementsofanNEOsdirectcompensationaredelivered
intheformofannualcashincentivesandlong-termequityawardsconsistingofstockoptionsandperformanceshares.TheCommitteeconcludedthat
approximately15%to30%oftheNEOgroupstargettotaldirectcompensationshouldbefixedandapproximately70%to85%shouldbeintheformofatrisk
compensationfor2015.TheCompanydidnothaveatargetweightforeachelementofcompensationin2015.

32

Table of Contents

(1)

Name

% that is Base Salary

13%
22%
21%
23%
27%

RaymondW.McDaniel
LindaS.Huber
MichelMadelain
MarkE.Almeida
JohnJ.Goggins

Total Target Direct Compensation(1)

% that is Target
% that is Target
Annual Incentive
Equity

20%
25%
26%
27%
23%

67%
53%
53%
50%
50%

% that is
At Risk(2)

87%
78%
79%
77%
73%

TotalTargetDirectCompensationisthesumofthebasesalary,targetannualcashincentiveandgrantdatefairvalueofequityawards.

(2)

Includesannualincentivetargetawardamountandtargetequitygrant.

2015 C OMPENSATION D ECISIONS

Base Salary
ThebasesalariespaidtotheNEOsduring2015,below,alsoarereportedintheSummaryCompensationTableonpage48.

Name

2014 Base
Salary

Base Salary
2015 Base
Salary

Percentage
Change

RaymondW.McDaniel
$1,000,000
$1,000,000

0%

LindaS.Huber

591,000

609,000

3.05%

MichelMadelain(1)
488,093
502,839

3.02%

MarkE.Almeida
507,000
522,000

2.96%

JohnJ.Goggins
487,000
502,000

3.08%

(1) Mr.MadelainscompensationfiguresareshowninthetableinU.S.dollars.However,certainelementsofhiscompensationwerepaidinBritish
poundssterling.Anexchangerateof1.4746fromTheFederalReserveBankasofDecember31,2015wasusedtocalculatetheU.S.dollaramount.
Forthepurposeofcomparing2014BaseSalaryto2015BaseSalary,thesameexchangerateasofDecember31,2015hasbeenused.
Annual Cash Incentives

EachNEOhasanannualcashincentivetargetthatcanbeearnedbaseduponperformanceagainstbothfinancialandindividualoperationalobjectives.Cash
incentivesfor2015werepaidoutat87.4%to133.2%oftargetbaseduponfinancialandindividualperformanceandtheresultsofanInstitutionalInvestor
Satisfactionsurvey.
Process for Determining Annual Cash Incentives

Funding
of
Cash
Incentive
Pool
.ThecashincentivepoolisfundedbasedontheCompanysfinancialperformanceagainstitsgoals.For2015,goals
weresetequaltobudget.ThetargetperformancegoalsthattheCommitteesetsareintendedtomotivateperformancebybeingaspirationaland
challenging,butachievable.WhentheCommitteesettheNEOstargets,themembersbelievedthatexceedingthetargetswouldrequireextraordinary
effortsindividuallyandcollectivelybytheNEOs.Therefore,inordertoreceivethemaximumcashincentivepayments,managementwouldhaveto
exceedtargetsbyapproximately20%,reflectingextraordinaryperformance.For2015,fundingofthecashincentivepoolwasbasedonacombination
ofCompanyoperatingincome,MoodysAnalyticsoperatingincome,MoodysInvestorsServiceoperatingincomeandEPSgoalsrelativetotarget;
theweightingofeachmeasurediffereddependingontheindividualsareaofresponsibility.Companyoperatingincome,MIS

33

Table of Contents

andMAoperatingincome,andCompanyEPSgoalsserveasthebasisfortargetsinorderforcashincentivepayoutstoreflectachievementagainst
expectationsforprofitability.Forcompensationfundingdeterminations,theCompanysEPSwasadjustedforforeignexchangerates,acquisitionrelatedcostsandlegacytaxitems(EPS).TheNEOcashincentivepoolfor2015wasfundedat96.3%duetothefactthatCompanyEPSandMA
operatingincomeexceededtargetswhereastheoperatingincomeoftheCompany,MISandCopalAmbamissedtargetsby2.3%,3.5%and22.7%,
respectively.TheperformancegoalsandresultsaredescribedbelowunderCompanyPerformance.

Adjustment
to
Cash
Incentive
Pool
.Afterthecashincentivepoolisfunded,theCommitteecanmakeadjustmentstotheformulaicpayoutpercentage
basedontheresultsofafixed-incomeInstitutionalInvestorSatisfactionSurveyconductedonbehalfoftheCompanybyanindependentthirdparty.
TheresultsofthatsurveyaredescribedbelowunderInstitutionalInvestorSatisfaction.For2015,theNEOcashincentiveformulaicpayout
percentagewasadjustedupwardby10%ofaggregatebonustargetsbasedonimprovedInstitutionalInvestorSatisfactionSurveyresults.Thisresulted
intheNEOcashincentivepoolbeingfundedat106.3%.

Allocation
of
Cash
Incentive
Pool
.TheamountofcashincentivefundingawardedtoeachindividualNEOisdeterminedbaseduponanassessmentof
thatindividualsperformanceagainstqualitative,largelyoperationalobjectivesestablishedfortheyear.ThesearedescribedbelowunderIndividual
Performance.

Peer
Group
ComparisonMaximum
and
Minimum
Funding.
Forthe2015planyear,maximumincentivefundingopportunitywas200%oftarget.
Performancebelowanestablishedthresholdwouldresultinnofunding.

TheCommitteecontinuestoberigorousinitsoversightofincentivemetrics,goalsandtherelationshipbetweenperformanceandpay.

WithassistancefromtheCommitteescompensationconsultant,Meridian,theCommitteeconductedareviewin2015oftheperformance
intervalsandpayoutcurvesthattheCompanyutilizesforitscashincentiveplan.

ThisreviewconfirmedthattherelationshipbetweenCompanyperformanceandcashincentivepayoutsismoredemandingthantypicalmarket
practice.Fortheupsideincentiveopportunityabovetarget,theCompanyspayoutatmaximumperformancelevels(whichinrelationtotarget
opportunityisdirectlyinlinewithmarketpractice)generallyrequireshigherperformanceimprovementthanitspeersandthegeneralindustry
require.

ForthedownsideopportunitybelowtargetattheCompany,therelationshipbetweentargetperformanceandperformanceatthresholdis
generallyalignedwithpeersandgeneralindustrypractices;however,minimumpayoutatthresholdperformancerelativetotargetbonusis
generallylowerthantypicalminimumpayouts.

2015 Annual Cash Incentive Program Performance Results

Company Performance. Companyperformanceforcorporate-levelexecutives(Messrs.McDanielandGoggins)wasmeasured50%basedon

Companyoperatingincomeresultsand50%basedonEPSresults,reflectingthoseexecutivesrolesinboththeoverallfinancialandoperatingresults
oftheCompany.PerformanceforexecutivesprimarilyresponsibleforMoodystwobusinessunits(Messrs.MadelainandAlmeida)wasmeasured
25%basedonCompanyoperatingincomeresults,25%basedonEPSresultsand50%basedonMISorMAoperatingincome,respectively,inorderto
furtherenhancetheconnectionbetweentheirdirectbusinessunitresponsibilitiesandtheirannualincentivecompensation.PerformanceforMs.Huber
wasmeasured40%basedonCompanyoperatingincomeresults,40%basedonEPSresults(reflectingherroleinboththeoverallfinancialand
operatingresults

34

Table of Contents

oftheCompany),and20%basedonCopalAmbasoperatingincome,duetoherresponsibilityinleadingCopalAmbaandthedesiretoconnecther
directbusinessunitresponsibilitieswithherannualincentivecompensation.

Name

RaymondW.McDaniel
LindaS.Huber
MichelMadelain
MarkE.Almeida
JohnJ.Goggins

MCO Operating
Income

MA Operating
Income

MIS Operating
Income

50%
40%
25%
25%
50%

50%

50%

Copal
Amba Operating
Income

EPS

20%

50%
40%
25%
25%
50%

For2015,performancein-linewiththeCompanysbudgetforoperatingincomeandEPSwouldresultin100%fundingofthetargetcashincentive
pool.Forthe2015planyear,maximumincentivefundingopportunitywas200%oftarget.Performancebelowanestablishedthresholdwouldresultin
nofunding.

Forthepurposesofdeterminingincentivecompensationfunding,certainadjustmentsaremadetotheCompanysreportedresults.Suchadjustments
thatimpacted2015fundingwereforeignexchangerates,acquisition-relatedcosts,legacytaxitemsandtheCEOdiscretionarybonuspool.

MoodysoperatingincomeandEPSgoalsfor2015were$1,519.6millionand$4.60(growthof5.6%and9.3%),respectively.Forthepurposesof
determiningincentivecompensationfunding,operatingincomeandEPSwere$1.486.3millionand$4.64,respectively(reflectinggrowthof3.3%and
10.2%,respectively).

TheMIS,MAandCopalAmbaoperatingincomegoalswere$1,296.7million,$191.4millionand$31.5million,respectively.Forthepurposesof
determiningincentivecompensationfunding,operatingincomeresultswere$1,253.3millionforMIS,$209.0millionforMAand$24.0millionfor
CopalAmba.

Performance Metric

Annual Incentive Pool Funding Metrics

MCOOperatingIncome
MISOperatingIncome
MAOperatingIncome
CopalAmbaOperatingIncome
EPS

Threshold Funding

$
$
$
$
$

1,303.7million
1,112.5million
164.7million
26.6million
3.97

Target Funding

$
$
$
$
$

1,519.6million
1,296.7million
191.4million
31.5million
4.60

Maximum Funding

$
$
$
$
$

1,807.4million
1,542.2million
227.1million
38.0million
5.44

Plan Performance

$
$
$
$
$

1,486.3million
1,253.3million
209.0million
24.0million
4.64

Institutional Investor Satisfaction. In2009,theCommitteeaddedaFixedIncomeInstitutionalInvestorSatisfactionSurvey(performedbyan

independentthirdparty)modifiertotheNEOsannualcashincentiveprograminordertotakeintoaccountinputfromusersoftheCompanys
productsinsettingcompensation.Theannualsurveyiscomprisedofapproximately100questionsintotal,fiveofwhichwereusedforcompensation
analysis.RespondentswereaskedfortheirperceptionsofMoodysandMoodyscompetitorsinthemarketwheretherespondentisbased.The
questionsusedasabasisforthecompensationmodifierwereasfollows:(1)Overall,howhasMoodysmetyourbusinessneedsandexpectationsover
thepast12months?(2)DoesMoodysprovidepredictiveratings?(3)IsMoodysanauthoritativesourceonissuesoreventsaffectingthemarket?
(4)DoesMoodysclearlyandconsistentlycommunicateinformationaboutitsratingdecisions,methodologyandmodels?and(5)DoesMoodys
providehighqualityandinsightfulresearch?Thissurveymodifieradjuststhetotal

35

Table of Contents

fundingoftheannualcashincentiveprogrambyupto10%basedonachievementsversustheCompanyscustomervaluegoals.

TheCompanysinstitutionalinvestorgoalsfor2015wereconsistentwith2014.Thetwoprimarygoalsweremanagementsabilityto(i)continueto
enhancepositiveinvestorimpressionsofMoodysproductsandservicesand(ii)reducelessfavorableimpressionsoftheCompanyinthemarketplace.
ThesurveyresultsdonotproduceadirectnumericaladjustmentbytheCommittee.Rather,theCommitteecompletesasubjectiveanalysisof(i)the
degreetowhichpositiveimpressionsincreasedandnegativeimpressionsdecreasedversusthepreviousyear;and(ii)thedegreetowhichthe
impressionsofMoodysweremeaningfullydifferentrelativetotheimpressionsofMoodyscompetitorsincludedinthesurvey.For2015,the
Committeeadjustedthecashincentivepoolupwardby10%,reflectingoverallsurveyresultsthatimprovedversustheCompanysprioryear
performance.

Individual Performance. TheCommitteeretainsthediscretiontosetindividualawardpayoutsunderthe2004Planbaseduponitssubjective

evaluationoftheNEOssatisfactionofhisorherperformanceagainstoperationalobjectives.Forthatreason,andafterconsideringthe
recommendationoftheCEO(exceptwithrespecttohisaward),theCommitteemayadjusttherecommendedawardamount.Thisadjustmentcould
resultinactual2004Planawardsdeviatingfromtheperformanceachievementawardlevel.Inadditiontocorporatefinancialperformance,the
individualperformancegoalsevaluatedwhendeterminingeachNEOsactualannualincentiveawardpayoutsaredescribedbelow.

Mr.
McDaniel
:TheCommitteedetermined,basedonMr.McDaniels(i)contributionstotheCompanysEPSandoperatingincome
performance,(ii)managingregulatoryprocessesandinitiatives,sothatMIScancontinuetooperateindependentlyandsuccessfully,
(iii)coordinatingmanagementofandcommunicationoflitigationriskwithmarketparticipantsandemployees,(iv)supportinggrowthand
diversificationoftheCompanysbusinessbyadvancingMAsstrategicthinkingandtheintegrationofnewlyacquiredentities,(v)continuing
improvementofinvestorsatisfactionresultsand(vi)improvingoveralloperatingeffectivenessbyenhancingworkforcequalityand
productivity,topayMr.McDaniel106.7%ofhistargetannualcashincentive.

Ms.
Huber
:TheCommitteedetermined,basedonMs.Hubers(i)contributionstotheCompanysfinancialperformance,includingthe
CompanysEPSperformancethatforthepurposesofdeterminingincentivecompensationfundingexceededEPSgrowthtargetsby1.0%,but
alsoincludedmissingCompanyoperatingincomeandCopalAmbaoperatingincometargetsby2.3%and22.7%,respectively,
(ii)coordinationofoutreachrelatingtoMoodysratingsandfinancialperformanceandco-managementofcommunicationinitiatives,
(iii)successfulcompletionofapublicdebtofferingof500millionaggregateprincipalamountof1.75%seniorunsecurednotesdue2027and
of$300millionaggregateprincipalamountof5.250%seniorunsecurednotesdue2044,(iv)executionofasuccessfulsharerepurchase
programandmanagementofbudgetandtheCompanyscapitalpositionwhilemaintainingfinancialflexibility,(v)contributionstoproduct
andbusinessdevelopment,(vi)focustoimproveoperationalefficiencyandworkforceeffectiveness,and(vii)riskmanagementwithrespectto
ITassets,dataprotectionandinformationsecurityprogramsaswellasenhancementofITgovernanceframeworks,topayMs.Huber87.4%
ofhertargetannualcashincentive.

Mr.
Almeida
:TheCommitteedetermined,basedonMr.Almeidas(i)contributionstoMAsoperatingincomeandCompanyEPS
performancethatforthepurposesofdeterminingincentivecompensationexceededMAsoperatingincomeandCompanyEPSgrowthtargets
by9.9%and1.0%,respectively,butalsoincludedmissingCompanyoperatingincometargetby2.3%,(ii)continuedworkonenhancingMAs
productportfolio,meetingcustomerdemandforanalyticandinsighttools,businessdevelopmentandpositioningMAforgrowth,
(iii)integrationofWebEquity,(iv)focusonensuringcompliancewithcorporatepoliciesandcompliantinternalauditresults,(v)enhancement
ofproductqualityandservice,(vi)contributionstothepromotional

36

Table of Contents

campaignforMAwithCompanystockholders,inanefforttoeducatetheinvestorpopulationabouttheworkandstrengthsofMA,(vii)focus
oncybersecurity,and(viii)continueddevelopmentoftheMAorganizationalcultureandattentiontoachievingcollaborationacrossMAand
amongindividualbusinessunits,emphasizingvaluescustomerfocus,innovation,commercialeffectivenessandoperationaleffectiveness,and
thedevelopmentofemployees,topayMr.Almeida133.2%ofhistargetannualcashincentive.

Mr.
Madelain
:TheCommitteedeterminedthat,basedonMr.Madelains(i)contributionstotheCompanysEPSperformancethatfor
purposesofdeterminingincentivecompensationfundingexceededEPSgrowthtargetsby1.0%butalsoincludedmissingMISoperating
incomeandCompanyoperatingincometargetsby3.5%and2.3%,respectively,(ii)continuedworktomaintainandenhanceratingsquality,
(iii)implementationofinitiativesrelatingtooperatingeffectiveness,(iv)focusonworkforceeffectiveness,(v)supervisionoftheeffective
implementationoftheglobalregulatoryframeworks,(vi)focusonbusinessdevelopmentandgrowthinitiatives,and(vii)fosteringofrisk
awarenessregardingcyberrisk,topayMr.Madelain99.6%ofhistargetannualcashincentive.

Mr.
Goggins
:TheCommitteedeterminedthat,basedonMr.Goggins(i)managementoftheCompanyslegalriskandallmateriallitigation
mattersandgovernmentalinvestigations,(ii)mitigationofcontingentliabilitiesforproductsandservices,(iii)coordinationwithmarket
participantsaboutregulatoryaffairsandengagementwithregulatorsandlegislatorsglobally,(iv)managementofallkeycomponentsofthe
Companyscompliancefunctionandpreparationforexaminationsbyregulatorybodies,and(v)supportofMISandMAbusinessinitiatives,
topayMr.Goggins106.7%ofhistargetannualcashincentive.

2015 Annual Cash Incentive Program Payouts

ThisyearsCompanyfinancialperformanceresultedinfundingfortheNEOsunderthe2004Plan,withtheresultingannualcashincentiveawardsasshown
inthetablebelow:

Name

2015 Target Cash

Incentive
Under 2004 Plan

2015 Maximum Cash

Incentive
Under 2004 Plan

2015 Actual Cash

Incentive
Paid Under 2004 Plan

RaymondW.McDaniel
$
1,500,000
$
3,000,000
$
1,600,500

LindaS.Huber

708,000

1,416,000

618,500

MichelMadelain(1)

601,637

1,203,274

598,983

MarkE.Almeida

624,000

1,248,000

830,900

JohnJ.Goggins

414,000

828,000

441,700

(1) Mr.MadelainscompensationfiguresareshowninthetableinU.S.dollars.However,certainelementsofhiscompensationwerepaidinBritishpounds
sterling.Anexchangerateof1.4746fromTheFederalReserveBankasofDecember31,2015wasusedtocalculatetheU.S.dollaramount.
Long-Term Equity Incentive Compensation
2015 Long-Term Equity Incentive Mix
For2015,equitygrantsweremadeinFebruarybasedupontheCommitteesevaluationof2014performanceandthelevelofeachNEOsTargetTotalDirect
Compensationincomparisontothepeergroupandthebroaderfinancialservicesindustry.In2015,theaggregatelong-termequitycompensationawardsgranted
fortheNEOgroupinFebruarywerebetweenthe25thand50thpercentileofexecutivesinthepeergroup.Since2010,long-termequitygrantshavebeenawarded
intheformofstockoptionsandthree-yearperformanceshares.For2015,theCommitteedeterminedthat,foralloftheNEOs,60%ofgrantdateequityvalue
wouldcontinuetobegrantedintheformofperformance-basedsharesinordertomaintaintheNEOsfocusonfinancialandnon-financialperformance.The
remaining40%ofthegrantdateequityvaluewouldcontinuetobegrantedinstock

37

Table of Contents

options.TheCommitteedeterminedthecontinuedfocusonsharepriceappreciationalignstheNEOswithMoodysstockholders.Inmakingthesedecisions,the
Committeealsoconsideredtheneedtomanagethenumberofsharesusedtodeliverequityawards,andtoallowtheCompanytomeasureandtobalanceincentives
basedonfinancialandoperationalgoalswithrewardsthataretiedmoredirectlytoshareholdervalue.Furthermore,theCommitteemaintainedthemaximum
payoutforthethree-yearperformanceshareplanat225%ofthetargetnumberofperformancesharesgrantedasitwasdeterminedthatthiswouldincentforstretch
performance.
Stock options. Stockoptionsvestbasedoncontinuedserviceoverfouryearsinannual25%increments,whichmeans(i)executiveswillrealizevaluefrom
theirawardsonlyifthemarketpriceoftheCompanysstockappreciatesabovetheoptionsexercisepriceaftertheoptionshavevestedand(ii)executivesare
motivatedtoremainwiththeCompanyduetothemulti-yearvestingschedule.TheCommitteebelievesthatbecausevalueisrealizedonlyiftheCompanysstock
pricerises,stockoptionsareperformance-basedcompensation.Stockoptionsexpiretenyearsafterthegrantdate.
Performance shares . Theperformanceshareswillbeearnedfollowingthecompletionofathree-yearperformanceperiodifcertaincumulativeperformance
goalsareachievedorexceeded.Thenumberofperformancesharestreatedasvestedandthecorrespondingnumberofsharesactuallyissuedtoanemployeeas
payoutattheendofthethreeyearperformanceperiodmaybelessthanthenumberdeterminedbytheperformancegoalformulaatthediscretionofthe
Committee.Forthe2015-2017performanceperiod,aggregateEBITDA(includingfutureacquisitions,ifany),MISsratingsaccuracyperformanceandaggregate
MAsSalesservedastheperformancethresholds.TheCommitteedecided,basedontherecommendationoftheCEO,tomaintaintheperformancemetricof
CompanyprofitabilitysothatitwouldbemeasuredbyEBITDA(includingfutureacquisitions,ifany).ItwasdeterminedthattheuseofEBITDA,insteadofEPS
whichwasoneofthemeasuresusedpriorto2012,betteralignsmanagementincentiveswiththeCompanysstrategyintheeventacquisitionsaremade.The
CommitteealsodecidedthattheimpactofMAacquisitionswouldcontinuetobeincludedwhenmeasuringMASales,withacquiredsalesreceivingalower
weightingthanorganicsales.In2010and2011,acquisitionswerenotincludedinMASalestargetsandthereforenotincludedinthefinalMASalesmeasurement.
MISratingsaccuracycontinuedtobeusedasaperformancemetric.Thesethreemetricswerechosenbecausetheyincentivizemanagementtoconsiderthelong
andmedium-termimpactofbusinessdecisionsandthemetricsprovideabalanceoffinancialandoperationalfactorsforbusinesssuccess.Theweightsofthese
threeperformancegoalsvarydependingoneachNEOsroleandresponsibilities.Theweightingofeachperformancemeasurediffersbasedonthecorporateentity
inwhicheachNEOoperates,asreflectedinthetablebelow:

Performance Measure

MIS
Michel Madelain

MCOProfitability
MISRatingsPerformance
MASales

50%
50%
0%

MA
Mark E. Almeida

MCO/Shared Services
Raymond W. McDaniel
Linda S. Huber
John J. Goggins

50%
0%
50%

60%
20%
20%

TheCommitteebelievestheseweightstobeappropriatebasedontheindividualsmoredirectinvolvementwithcertaincorporateentities.AllNEOshavean
incentivetocontributetotheoverallCompanysprofitability,whileMr.MadelainsandMr.AlmeidasperformancesharesaremoredirectlytiedtotheMISand
MAentitiesthattheyoperate,respectively.
2015 Long-Term Equity Incentive Grant Levels. IndeterminingthevalueofequitygrantedtotheNEOs,inadditiontotheitemsnotedinthefollowing
paragraph,theCommitteeconsideredtheshareutilizationpracticesoftheCompanyspeergroupandendeavoredtobalancealigningtheinterestsofNEOswith
stockholderswhilealsomotivatingtheNEOstoimprovetheCompanyscurrentmarketposition.Asaresult,theCommitteerecommended(basedona
recommendationfromtheCEO,otherthanwithrespecttohisownpay),andtheBoardapproved,equitygrantscomprisedofstockoptionsandperformanceshares,
withtheaverageindividual

38

Table of Contents

NEOgrantvalueincreasingapproximately14%higherthantheindividualNEOgrantsin2014,inordertobringequityawardvaluesmoreinlinewithmedian
marketlevels.The2015equitygrantlevelforeachNEOwaswithinorsomewhatbelowthe50thpercentilecompetitiverangeofthepeergroupandfinancial
servicesindustrydata.TheNEOsindividualawardsarereportedintheGrantsofPlan-BasedAwardsfor2015tableonpage51.
BecausetheannualgrantsaremadeinFebruary,eachindividualawarddeterminationconsidered(i)theCompanys2014performance,(ii)theNEOsrolein
thatperformance,includingtheachievementofindividualgoalsdescribedaboveinAnnualCashIncentives,and(iii)retentionobjectivesforthatNEO.The
awardsareintendedtoaligntheinterestsofNEOswiththoseoftheCompanysstockholders.Annualawardsaredeterminedbyanexaminationofthepresent
periodaswellasbyconsideringexpectationsofthefuture.
2013-2015 Performance Share Payouts
The2013-2015performanceperiodforperformancesharesgrantedin2013endedonDecember31,2015,withtheNEOsreceivingbetween93.4%and
97.5%oftheirperformancesharetargetamountsbasedontheCompanysresults.Theweightingthatwasassignedtoeachofthethreeperformancegoalsatthe
timetheperformanceshareswereoriginallygrantedvarydependingoneachNEOsroleandresponsibilities.Thethreshold,targetandmaximumperformance
goals,aswellasactualresults,fortheProfitabilityandMASalesperformancecriteriaaresetforthinthetablebelow.MISRatingsPerformanceisevaluatedbased
oninternallydevelopedmetricsthatareproprietaryandcompetitivelysensitive,andthereforearenotdisclosedinthetablebelow.Thethreshold,targetand
maximumMISRatingsPerformancegoalsweresettoreflectadegreeofdifficultythatwascomparabletothestandardappliedinsettingtheperformancegoalsfor
theothercriteria,withtargetperformancelevelsbeingdifficultbutobtainable,basedonhistoricalresultsunderthismetric.
2013-2015 Performance Share Metrics

Threshold

Target

Maximum

Actual Performance

Profitability(EBITDA)
(includingacquisitions)($inmillions)
MASales
(includingacquisitions)($inmillions)

$ 3,835

$4,511

$ 5,301

4,506

$ 2,830

$3,216

$ 3,730

3,302

Asaresultofthelevelofperformancethatwasachieved,thenumberofsharesthatvestinMarch2016(subjecttocontinuedservicethroughthevesting
date)foreachNEOrelativetothetargetnumberofsharesgrantedisreflectedinthetablebelow:

Name

RaymondW.McDaniel
LindaS.Huber
MichelMadelain
MarkE.Almeida
JohnJ.Goggins

2013-2015 Performance
Share Award at Target
(# of shares)

2013-2015 Performance
Share Award to Vest
(# of shares)

48,460
15,559
14,137
13,142
9,214

46,619
14,968
13,204
12,813
8,864

TheNEOsindividualperformanceshareawardsarereportedintheOutstandingEquityAwardsatFiscal-YearEndTableFor2015onpage52.

39

Table of Contents

The Role of the Governance and Compensation Committee, Its Consultant and Management
TheCommittee,whichiscomprisedentirelyofindependentdirectors,hasresponsibilityforoversightoftheCompanyscompensationprogramandhasfinal
authorityforevaluatingandsettingcompensationforNEOs.Toassistinthisprocess,itconsidersrecommendationsmadebytheCEO(exceptwithrespecttohis
owncompensation)andusesmarketdataandanalysesthattheCommitteescompensationconsultantprovidesinordertohelpformulatetargetcompensation
levels.TheCommitteehasengagedMeridianCompensationPartnersLLC,anindependentcompensationconsultingcompany,toadvisetheCommitteeonmatters
relatedtoexecutiveanddirectorcompensation.MeridianisengageddirectlybyandreportstotheCommittee.Meridiandoesnotofferorprovideanyotherservices
totheCompanyandtheCommitteedeterminedthattheretentionofMeridianhasnotraisedanyconflictsofinterest.
TheCommitteesindependentconsultantreviewedananalysisoftheannualcomparisonoftheelementsofMoodysexecutivecompensationstructureand
practicestothoseoftheCompanyspeergroup,assetforthbelow,andthebroaderfinancialservicesindustry.Basedonitsreview,theconsultantconcludedthat
theCompanysexecutivecompensationprogramstructureisconsistentwithindustrypractices.
Determining Compensation Levels
Peer and Market Review
TheindependentcompensationconsultantannuallyreviewsthepeergroupwiththeCommittee.Basedontheconsultantsreview,managementrecommends
andtheCommitteemayapprovechangestothepeergroup.Asaresultofthe2015review,FederatedInvestors,Inc.andMorningstarInc.werebothremovedfrom
thepeergroupwhileFiservInc.andFidelityNationalInformationServiceswerebothaddedtothepeergroup.Thechangestothepeergroupweredeemedtobe
appropriateinregardstothesize,revenueandmarketcapitalizationofMoodysCorporation.For2015,thepeercompanieswere:

CMEGroupInc.
Dun&BradstreetCorp.
EatonVanceCorp.
EquifaxInc.
FactSetResearchSystemsInc.
FidelityNationalInformationServices
FiservInc.

GartnerInc.
IHSInc.
IntercontinentalExchange,Inc.
InvescoLtd.
McGraw-HillFinancialInc.
MSCI

NASDAQOMXGroupInc.
NielsenHoldingsN.V.
Price(T.Rowe)Group
SEIInvestmentsCo.
ThomsonReutersCorp.
VeriskAnalytics,Inc.

Thisgroup,theCommitteebelieves,appropriatelyreflectsthecompanieswithwhichMoodyscompetesforbusinessandexecutivetalent.Thisgroupalso
appropriatelyreflectsthecompaniesagainstwhichMoodysfinancialperformanceismeasured,asitincludesfirmsthat:

Provideanalyticsproductsandservicesinadditiontocreditriskanalysis;

Providecompanyandindustrycreditresearchandbusinessinformationservices;

Hadmedianrevenueof$3.1billion(Moodys2014revenueequaled$3.3billion);and

Hadamedianmarketcapitalizationof$10.6billionasofDecember31,2014(Moodysmarketcapitalizationequaledapproximately$19.5billionas
ofDecember31,2014).

TheCommitteecontinuallyseekstoimprovethecriteriauponwhichthepeergroupisselected.TheCommitteereviewedthepeercompanyselectioncriteria
andaspartofthatreviewestablishedanewrevenuethresholdfornon-financialcompanies.Inadditiontoreviewingcompensationpracticesandpaylevelswithin
theCompanyspeergroup,theCommitteelooksatthebroaderfinancialservicesindustryscompensationdatafurnishedbymanagementscompensation
consultant,AonHewitt,andreviewedbytheCommitteesconsultant.ThisadditionalcompensationdataisbasedonAonHewittssurveydatafromapproximately
twenty-fivecompaniesandisusedonlyforreferencewhenevaluatingpayfortheCompanysNEOs.

40

Table of Contents

MeridianprovidedtheCommitteeandmanagementwithtotaldirectcompensationdatafromthesecomparisongroupsalongwithanalysesofeachelement
ofcompensation.Thecomparisongroupsinformationisreviewedinquartileranges,beginningwiththe25thpercentile.In2015,thetargetedtotaldirect
compensationopportunityinaggregatefortheCEOindividuallywasatthe25thpercentileand,fortheNEOsasagroup,betweenthe25thpercentileandthe50th
percentileascomparedtothepeergroup.TheCommitteeperiodicallybenchmarksbenefitsandperquisitesandbelievesbenefitstobein-linewithmarketpractice
andperquisitestobebelowcurrentmarketpractice.
Compensation Philosophy
TheCompanyscompensationphilosophygenerallyistotargetthe50thpercentileforbasesalary,targetannualincentives,long-termincentivesandtarget
totalcompensation.TheCompanyhasalsofoundthattargetingthe50thpercentilerangehasallowedittoretainkeytalentandremaincompetitiveinthe
marketplace.However,anexecutivespositioningagainstmarketmaybeaboveorbelowourtargetpositioningbasedonanumberoffactorsspecifictothe
individual,includingperformance,marketconditionsandtheuniquenatureofMoodysbusiness.
MarketdataisjustoneofthereferencepointsusedbytheCommitteewhenestablishingtargetedtotaldirectcompensation.TheCommitteealsoreviews
eachNEOs:

skills,

experience,

tenure,and

performanceduringtheprioryear.

Thesefactorscontributetovariationsinactualandtargetcompensationlevels.BasedontheCommitteesanalysisoftheabove,andconsiderationofa
recommendationfromtheCEO(otherthanwithrespecttohisowncompensation),theCommitteeestablishesatargetedtotaldirectcompensationlevelforeach
NEOthatitbelievesiscompetitive.
Chief Executive Officer Compensation
TheCommitteebeginsitsanalysisoftotaldirectcompensationfortheCEObyanalyzingthecompensationofexecutiveofficersatcompaniesincludedinits
peergroup,aswellasinthebroaderfinancialservicesmarket.ItalsoreviewstheCEOspaywithrespecttotheotherNEOs.InlightoftheCEOsbroad
responsibilitiesrequiringoversightoftheentireorganizationandbasedontheachievementsdetailedonpage36underIndividualPerformance,theCommittee
determinedthatahighertotaldirectcompensationpackagewaswarrantedascomparedwiththeotherNEOs.
ThemixofMr.McDanielstotaldirectcompensationpackagehaschangedinrecentyears.From2007through2010,hisbasesalarywassetat$936,000.
Thissalarywasmaintainedataconsistentlevelinordertoreducethefixedportionofhistotaldirectcompensationandincreasetheat-riskpercentageofhistotal
directcompensation.In2011,theCommitteedeterminedthata2%basesalaryincrease,alongwitha2%incentivecompensationtargetincrease,wereappropriate
forMr.McDanielinordertomovehistotaldirectcompensationmoreinlinewiththe50thpercentileofthepeergroupandinrecognitionofthefactthathehad
nothadasalaryincreaseinthreeyears.TheCommitteedeterminedthatbasesalaryincreasesof2.7%,0%and0%wereappropriateforMr.McDanielin2013,
2014and2015,respectively,inordertokeephistotaldirectcompensationinlinewithcompetitivebenchmarks.
Intermsofhisequitygrants,40%ofMr.McDaniels2015equityawardwascomprisedofstockoptionsand60%wascomprisedofperformanceshares.
Mr.McDanielstargetatriskcompensationwasapproximately87%.ThisincreasewasduetotheCommitteesobjectiveofbetteraligningtheCEOs
compensationwithlong-termCompanyperformance.

41

Table of Contents

Alignment with Company Performance. TheCommitteebelievesthiscurrentcompensationmixandstructureservestoincentivizetheCEOandmore

closelytieshisawardswithCompanyandindividualperformance.Forinstance,theincreasestoMr.McDanielsannualincentivepayoutsaswellastheincreaseto
his2015equityawardweredirectlytiedtoimprovedCompanyfinancialresults,astheCompanysoperatingincomeandEPSgoalsservedandcontinuetoserveas
themetricsdeterminingfundingoftheannualcashincentivepoolandprioryearresultsimpactequityawarddecisions.Thefollowingtwographsillustratethis
relationshipfrom2011to2012.However,dueprimarilytothesignificantlysmallerincreasesintheamountsshownintheChangeinPensionValuecolumnof
theSummaryCompensationTablefor2013and2015,theCEOstotalcompensationdecreasedin2013and2015despitethefactthattheCompanysoperating
incomeandEPSbothincreased.

Inaddition,thefollowinggraphscomparethetotaloneandthreeyearcumulativestockholderreturnsoftheCompanytotheperformanceofStandard&Poors
Stock500CompositeIndex.

42

Table of Contents

ThecomparisonsincludedintheMCOStockTotalReturngraphsaboveassumethat$100.00wasinvestedintheCompanyscommonstockandintheS&P
500CompositeIndexonDecember31,2014andDecember31,2012.Thecomparisonalsoassumesthereinvestmentofdividends,ifany.The1-yeartotalreturn
forthecommonstockwas6.13%duringtheperformanceperiodascomparedwithatotalreturnduringthesameperiodof1.38%fortheS&P500Index.The3yeartotalreturnforthecommonstockwas107.59%duringtheperformanceperiodascomparedwithatotalreturnduringthesameperiodof52.51%fortheS&P
500Index.
Ascomparedtoitspeergroup,MoodysTotalShareholderReturn(definedastheannualizedrateofsharepriceappreciationplusthereinvestmentof
dividends)wasinthe38thpercentileamongthepeersfortheone-yearperiodendingDecember31,2015andinthe66thpercentileforthethree-yearperiodending
December31,2015.
Thorough Committee Analysis. TheCommitteeundertookanextensiveanalysisofCEOpayin2015inordertoevaluatewhetherthecompensation
structurecontinuestobeappropriate.

TheCommitteereviewedthealignmentbetweenMr.McDanielspayandCompanyperformanceforthethree-yearperiodrangingfrom2012through
2014.WiththeassistanceoftheCommitteesadvisor,Meridian,theCommitteeassessedtherelationshipbetweenMr.McDanielsrealized/realizable
compensationandtheCompanysperformanceacrossarangeofprofitability,growthandreturnmetricsforthethree-yearperiodrelativetothe
Companyspeergroup.

TheCommitteereviewedthesensitivitybetweenpayoutopportunitiesunderMr.McDanielslong-termincentivecompensationandtheCompanys
performancebymodelingavarietyofscenarioswithawidecombinationofsharepriceperformanceandpayoutoutcomes.Thiswasthencomparedto
thepayoutsensitivityoftheaveragemixoflong-termincentivecompensationfortheCompanyspeers.

TheCommitteeconcludedthattherelativepositioningofMr.McDanielstotalcompensationhasbeenwellalignedwiththeCompanysperformance
andthatthecombinedstructureoftheCompanysincentiveplansisappropriateandinkeepingwiththeCommitteesobjectivesfortheseprograms.

Mr.McDanielstargetedtotaldirectcompensationfor2015wasatthe25thpercentileascomparedtotheCompanyspeergroup.Hisactualtotaldirect
compensationwasbelowthemedianofthebenchmarkactualtotaldirectcompensationlevelsofthecomparativegroup.Inlightoftheindividualachievements
listedonpage36andthedescriptionofCompanyachievementsonpage27,theCommitteebelievesMr.McDanielstotaldirectcompensationpackagetobe
appropriate.

43

Table of Contents

Pension Value. WithrespecttoMr.McDanielsincreaseinpensionvalue,asshownintheSummaryCompensationTableonpage48,thisincreaseisduein

parttochangesintheactuarialassumptions.ThediscountratefortheRetirementAccount,PBEPandSEBPthatisthebasisfortheproxycalculationsincreased
during2015to4.25%,3.70%,and3.40%,respectively.Thechangealsorelatedtoanadditionalyearofserviceandaoneyearincreaseinage.Theremainingthree
participantsintheSEBPareexpectedtoretireinthenextdecadeandmorethan50%oftheSEBPsliabilitywillbepaidduringthatperiodaslumpsum
distributions.
A DDITIONAL E XECUTIVE C OMPENSATION P OLICIES AND P RACTICES
2015 Say-on-Pay Advisory Vote on Executive Compensation
Moodysprovidedstockholdersasay-on-payadvisoryvotetoapproveitsexecutivecompensationin2015inaccordancewithSection14Aofthe
ExchangeAct.AtMoodys2015annualmeeting,stockholdersexpressedsubstantialsupportforthecompensationoftheNEOs,withapproximately95%ofthe
votescastforapprovaloftheNEOsexecutivecompensation.TheCommitteeevaluatedtheresultsofthe2015advisoryvoteandbelievesthestrongshareholder
supportsignalsapprovalofthecurrentpayprogramsinplaceatMoodys.TheCommitteealsoconsidersmanyotherfactorsinevaluatingMoodysexecutive
compensationprogramsasdiscussedinthisCompensationDiscussionandAnalysis,includingtheCommitteesassessmentofthealignmentofourcompensation
programswithourcorporatebusinessobjectives,evaluationsofourprogramsbytheCommitteesexternalconsultant,andreviewofpeergroupdata,eachofwhich
isevaluatedinthecontextoftheCommitteesfiduciarydutytoactasthedirectorsdeterminetobeinstockholdersbestinterests.Whileeachofthesefactorsbore
ontheCommitteesdecisionsregardingtheNEOscompensation,theCommitteedidnotmakeanychangestotheCompanysexecutivecompensationprogram
andpoliciesasaresultofthe2015say-on-payadvisoryvote.
Clawback Policy
TheBoardhastherighttomakeretroactiveadjustmentstoanyannualcashincentiveawardsgrantedafterJuly28,2008orperformancesharesgrantedafter
January1,2010,wherepaymentorsettlementofanysuchawardwaspredicatedupontheachievementofspecifiedfinancialresultsandthoseresultsmustlaterbe
revised.Wheretheresultsarerevisedbyreasonofasignificantormaterialrestatement,recoupmentcanbesoughtagainstexecutiveofficers,asdefinedin
accordancewithSECrules,ofalloranyportionofsuchcompensation;wheretheresultsarerevisedbyreasonofarestatementresultingfromfraudorother
misconduct,recoupmentcanbesoughtagainstthepersonengaginginsuchmisconduct,aswellasagainstanyexecutiveofficer.Thevaluewithrespecttowhich
recoupmentmaybesoughtshallbedeterminedbytheBoard.TheCommitteewillcontinuetoreviewtheCompanysclawbackpolicyasnewSECrulesare
adopted.
Employment Agreements
MoodysdoesnotenterintoemploymentagreementswithitsU.S.executives,includingMessrs.McDaniel,AlmeidaandGogginsandMs.Huber.Allofthe
CompanysU.S.executivesareatwillemployees.MoodysInvestorsServiceLimitedenteredintoastatutorilyrequiredemploymentagreementwith
Mr.MadelainonAugust28,1996.
Severance Policy
MoodysprovidesseverancebenefitstoNEOsundertheMoodysCareerTransitionPlan(theMoodysCareerTransitionPlanorCTP)andtheMoodys
CorporationChangeinControlSeverancePlan(theMoodysCorporationChangeinControlSeverancePlanortheCICP),eachofwhichisdescribedbelow.

44

Table of Contents

Career Transition Plan

AllNEOsintheU.S.participateintheCTP,anERISA-coveredplanthatisavailabletoallfull-timeandregularpart-timeemployeesontheUnitedStates
payroll.TheNEOsarenotentitledtoreceiveanyseverancebenefitsoutsidethoseprovidedundertheCTPandCICP.TheCTPisdesignedtocompensateeligible
employeesinthefollowingsituations:

wheretherehasbeenareductionintheCompanysworkforceoreliminationofspecificjobs;

wheretheindividualsjobperformancehasnotmetexpectations(butdoesnotinvolveabasisforterminatinghisemploymentforcause);or

wheretheCompanyhasagreedwithanindividualthatitisinthemutualbestinterestsofthepartiestosevertheemploymentrelationship.

Whilehavingsuchaplaninplaceisinthebestlong-terminterestofstockholders,theplanisnotdesignedtorewardindividualswhohavenotperformedto
expectationsorwhohaveengagedinconductthatisdetrimentaltotheCompanyanditsstockholders,andtheplancontainsprovisionstosafeguardagainstthisby
providingthatnoseveranceispayablewhenterminationisforcause.
CTPbenefitsarebasedonpositionaswellastenureandaremorefullydescribedonpage58.
Change in Control Arrangements
OnDecember14,2010,theBoardofDirectorsapprovedtheadoptionoftheCICP.ThepurposeoftheCICPistoofferitsparticipants,whichincludethe
CompanysexecutiveofficersandotherkeyemployeesselectedbytheCommittee,protectionintheeventofaterminationofemploymentinconnectionwitha
ChangeinControl(asdefinedintheCICP).TheCICPhasbeenadoptedtoenhancethealignmentoftheinterestsofmanagementandstockholdersbyallowing
executivestoremainobjectivewhenfacingtheprospectofasaleandpotentialjobelimination.UndertheCICP,participantsareentitledtoseverancebenefits
triggeredonlyifaparticipantsemploymentisterminatedwithin90dayspriortoortwoyearsfollowingachangeincontroloftheCompanybytheCompanyorits
successorwithoutCause,orbytheparticipantforGoodReason(bothtermsasdefinedintheCICP)(i.e.,adouble-trigger).FortheCEO,severancebenefits
undertheCICPconsistofalumpsumcashpaymentequaltothreetimesthesumofhisbasesalaryandtargetannualincentivefortheyearoftermination,plus
threeyearsofcontinuedcoverageundertheCompanysmedicalanddentalinsuranceplans.Forotherexecutives,includingtheotherNEOs,theseverancebenefits
consistofalumpsumcashpaymentequaltotwotimesthesumoftheirbasesalariesandtargetannualincentives,plustwoyearsofcontinuedmedicalanddental
coverage.Executiveofficersarenotentitledtoreceive(eitherundertheCICPoranyotherarrangement)agoldenparachuteexcisetaxgross-upwithrespectto
changeincontrolbenefits.
Stock Ownership Guidelines
InJuly2004,Moodysadoptedstockownershipguidelinesforitsexecutives,includingtheNEOs,anditsnon-managementdirectors,encouragingthemto
acquireandmaintainameaningfulstakeintheCompany.TheseguidelineswererevisedinFebruary2008andagaininJuly2012toreflectnewmanagement
structures.Moodysbelievesthattheseguidelinesencourageitsexecutiveofficerstoactasowners,therebybetteraligningtheexecutivesinterestswiththoseof
theCompanysstockholders.

TheguidelinesareintendedtobalanceanofficersneedforportfoliodiversificationwiththeCompanysdesireforofficerstoholdanownershiplevel
sufficienttoassurestockholdersoftheindividualscommitmenttovaluecreation.

Executiveofficersareexpected,withinfiveyearsofappointmenttoofficerlevel,toacquireandholdsharesoftheCompanysCommonStockequal
invaluetoaspecifiedmultipleoftheirbasesalary(whichvariesbasedonposition).Ownershipisexpectedtobeincreasedinlinewithbasesalary
increases.

45

Table of Contents

Thecurrentownershiplevelmultiples,asmostrecentlyadjustedin2012,are:(i)sixtimesbasesalaryfortheCEO,(ii)threetimesbasesalaryforthe
remainingNamedExecutiveOfficers,aswellasalldirectreportsoftheCEO,(iii)onetimesbasesalaryfortheremainingofficerssubjecttothe
guidelines,and(iv)fivetimestheannualcashretainerfornon-managementdirectors.

RestrictedsharesandsharesownedbyimmediatefamilymembersorthroughtheCompanystax-qualifiedsavingsandretirementplanscounttoward
satisfyingtheguidelines.

Stockoptions,whethervestedorunvested,donotcounttowardsatisfyingtheguidelines.

Unearnedperformancesharesdonotcounttowardsatisfyingtheguidelines.

In2012,aholduntilmetrequirementwasaddedforallindividualssubjecttothestockownershipguidelines.Thisrequiresexecutivestohold75%
ofnetsharesthattheyareawardeduntiltheirownershipmultipleismet,includingwhenanexecutivesholdingsnolongersatisfytherequired
ownershipmultipleduetoadeclineinstockprice.

AsofDecember,31,2015,eachoftheNEOswasincompliancewiththeguidelines.Theguidelinesforanindividualexecutiveofficermaybesuspendedatthe
discretionoftheBoardofDirectorsinsituationsthatitdeemsappropriate.
Anti-Hedging and Anti-Pledging Policy; Short Sales and Other Speculative Trades
Allexecutiveofficersanddirectorsaresubjecttoasecuritiestradingpolicyunderwhichtheyareprohibitedfromenteringintothefollowingtransactions
withrespecttoMoodyssecurities,includinganypubliclytradedsecuritiesofaMoodyssubsidiary:

makingshortsalesofMoodyssecurities;

engaginginspeculativetransactionsorenteringintoanytransaction(includingpurchasingforwardcontracts,equityswaps,putsorcalls)thatare
designedtooffsetanydecreaseinthemarketvalueoforareotherwisebasedonthepriceofMoodyssecurities;

pledgingMoodyssecuritiesascollateralforaloan;and

holdingMoodyssecuritiesinmarginaccounts.

Tax Deductibility Policy

Section162(m)oftheTaxCodelimitsincometaxdeductibilityofcompensationinexcessof$1millionthatispaidtoanyemployeewho,asofthecloseof
thetaxableyear,wastheCEOorwhosecompensationisrequiredtobereportedtostockholdersundertheExchangeActbyreasonofsuchemployeebeingamong
thethreehighestcompensatedexecutiveofficersforthetaxableyear(otherthantheCEOandCFO),excepttotheextentthecompensationqualifiesas
performance-basedasdefinedundertheincometaxregulations.StockoptionsawardedundertheCompanysstockholder-approvedstockincentiveplansare
intendedtobeperformance-basedforpurposesofthefederalincometaxlawsandanyamountsrequiredtobeincludedinanexecutivesincomeupontheexercise
ofoptionsarenotexpectedtocounttowardthe$1millionlimitation.TheperformancesharesawardedbytheCompanyarelikewiseintendedtoqualifyas
performance-basedcompensationandthereforebefullytaxdeductible.Similarly,annualbonuspaymentsunderthe2004MoodysCorporationCoveredEmployee
CashIncentivePlanareintendedtoqualifyasperformance-basedcompensationunderSection162(m)oftheTaxCode,astheCommitteecertifiesachievement
ofoneormorepre-established,objectiveumbrellaperformancegoalsunderthatplanasathresholdtodeterminingthecoveredemployeesentitlementtoanycash
bonus.TheCommitteethencanapplynegativeorpositivediscretiontodeterminetheactualbonuspayouts,butinnoeventmaythepayoutexceedthatdetermined
pursuanttotheumbrellaformula,aspermittedunderSection162(m)oftheTaxCodeanddescribedundertheheadingAnnualCashIncentivesabove.

46

Table of Contents

WhileMoodysgenerallyseekstoensurethedeductibilityoftheincentivecompensationpaidtotheCompanysexecutives,theCommitteeintendstoretain
theflexibilitynecessarytoprovidecashandequitycompensationinlinewithcompetitivepractice.Inaddition,thereareambiguitiesinhowtheconditionsto
qualifyingasperformance-basedwillbeinterpretedandadministeredundertheincometaxregulations,sothatamountsthatMoodysintendsorexpectsto
qualifyasfullydeductiblemaynotsoqualify.Accordingly,thereisnocertaintythatelementsofcompensationdiscussedinthisproxystatementwillinfactbe
fullytaxdeductible.

47

Table of Contents

SUMMARY COMPENSATION TABLE

Thefollowingtablesetsforth,fortheyearsendedDecember31,2015,2014and2013,thetotalcompensationoftheCompanysNamedExecutiveOfficers.
TheNamedExecutiveOfficersfor2015,2014and2013includeMoodysPrincipalExecutiveOfficer,itsPrincipalFinancialOfficerandthethreemosthighly
compensatedexecutiveofficersoftheCompany(otherthanthePrincipalExecutiveOfficerandPrincipalFinancialOfficer)whowereservingasexecutiveofficers
attheendofthelastcompletedfiscalyear.

Name and Principal

Position
RaymondW.McDaniel
PresidentandChiefExecutiveOfficer

Bonus
($)(1)

Stock
Awards
($)(2)
$2,999,988
2,460,004
2,249,998

Option
Awards
($)(3)
$1,999,996
1,639,999
1,499,996

Non-Equity
Incentive Plan
Compensation
($)(4)

$
1,600,500

2,250,000

2,250,000

Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings
($)(5)

$
1,425,428

6,741,699

1,341,861

All Other
Compensation
($)(6)

$
44,757

7,800

70,134

Total ($)
$ 9,070,669
14,099,502
8,411,989

Year
2015
2014
2013

Salary
($)

$1,000,000
1,000,000
1,000,000

LindaS.Huber
ExecutiveVicePresident
andChiefFinancialOfficer

2015
2014
2013

609,000
591,000
591,000

883,168
798,602
722,404

588,788
532,401
481,604

618,500
1,040,700
903,800

575,213
1,591,034
471,165

23,150
12,133
36,259

3,297,819
4,565,870
3,206,232

MichelMadelain(7)
PresidentandCOOof
MoodysInvestorsService

2015
2014
2013

502,839
515,632
548,599

752,423
690,017
656,381

501,595
460,006
437,601

598,983
854,142
896,819

57,510
63,185
91,126

2,413,350
2,582,982
2,630,526

MarkE.Almeida
PresidentofMoodysAnalytics

2015
2014
2013

522,000
507,000
507,000

691,167
634,173
610,183

460,811
422,785
406,801

830,900
989,300
715,200

207,432
359,998
60,695

32,844
40,565
30,070

2,745,154
2,953,821
2,329,949

JohnJ.Goggins
ExecutiveVicePresidentandGeneralCounsel

2015
2014
2013

502,000
487,000
487,000

552,580
467,993
427,806

368,389
312,003
285,200

441,700
600,000
602,500

691,676
1,741,722
532,279

18,161
11,699
26,506

2,574,506
3,620,417
2,361,291

(1)

TheamountsreportedintheBonuscolumnrepresentdiscretionarybonusespaidtotheNamedExecutiveOfficers.PaymentsundertheCompanysannual
cashincentiveprogramarereportedintheNon-EquityIncentivePlanCompensationcolumn.

(2)

TheamountsshownintheStockAwardscolumnrepresentthefullgrantdatefairmarketvalueofperformancesharegrants.Thefullgrantdatefairvalueis
basedonthefairmarketvalueofthestock,whichisdefinedasthearithmeticmeanofthehighandlowpricesoftheCommonStock.Allgrantsof
performancesharesweremadeundertheCompanys2001KeyEmployeesStockIncentivePlan(asamendedandrestatedonDecember11,2012,the2001
StockIncentivePlan).
OnFebruary11,2015,thefairmarketvalueoftheCommonStockwas$98.01andthefollowinggrantsofperformancesharesofCommonStockwere
receivedbyMr.McDaniel30,609,Ms.Huber9,011shares,Mr.Madelain7,677shares,Mr.Almeida7,052shares,andMr.Goggins5,638shares.
TheseperformanceshareawardsaresubjecttoperformancemetricsofEBITDA,MAssalesgrowthandMISsratingsqualityduringthethreecalendaryear
periodendingDecember31,2017.Becausetheachievementornon-achievementoftheseperformancemetricsdependsupontheoccurrenceoffutureevents,
theactualfinalpayoutoftheseperformanceshareawardsarenotknownatthistime.Assuch,thetotalgrantdatefairvalueoftheperformancesharesis
calculatedusingthetargetnumberofsharesunderlyingtheseawardsandthepersharegrantdatepriceonthedateofgrantof$98.01.Nocashdividendswill
bepaidwhentheunderlyingsharesvest.
Atmaximumachievement,thegrantdatefairvalueoftheawardswouldhavebeen225%oftheamountreportedforeachexecutive,orforMr.McDaniel
$6,749,973,Ms.Huber$1,987,128,Mr.Madelain$1,692,952,Mr.Almeida$1,555,126,andMr.Goggins$1,243,305.

48

Table of Contents

(3)

TheamountsshownintheOptionAwardscolumnrepresentthefullgrantdatefairvalueofnon-qualifiedoptionsgrantedineachyearindicated.The
February11,2015grantdatefairvalueforstockoptionsisbasedontheBlack-Scholesoptionvaluationmodel,applyingthefollowingassumptions:astock
priceof$98.01;astock-pricevolatilityfactorof39.35%;arisk-freerateofreturnof1.88%;adividendyieldof1.39%;andanexpectedtimeofexerciseof
6.9yearsfromthedateofgrant.TheFebruary12,2014grantdatefairvalueforstockoptionsisbasedontheBlack-Scholesoptionvaluationmodel,
applyingthefollowingassumptions:astockpriceof$79.55;astock-pricevolatilityfactorof41.17%;arisk-freerateofreturnof2.30%;adividendyieldof
1.41%;andanexpectedtimeofexerciseof7.2yearsfromthedateofgrant.TheFebruary13,2013grantdatefairvalueforstockoptionsisbasedonthe
Black-Scholesoptionvaluationmodel,applyingthefollowingassumptions:astockpriceof$46.43;astock-pricevolatilityfactorof42.61%;arisk-freerate
ofreturnof1.53%;adividendyieldof1.72%;andanexpectedtimeofexerciseof7.2yearsfromthedateofgrant.TheBlack-Scholesmodelispremisedon
theimmediateexercisabilityandtransferabilityoftheoptions,neitherofwhichappliestotheoptionssetoutinthetableabove.Theactualamountsrealized,
ifany,willdependontheextenttowhichthestockpriceexceedstheoptionexercisepriceatthetimetheoptionisexercised.

(4)

TheamountsreportedintheNon-EquityIncentivePlanCompensationcolumnrepresenttheamountsearnedbytheNamedExecutiveOfficersfor2015,
2014and2013undertheCompanysannualcashincentiveprogram.Theamountsfor2015,2014and2013wereactuallypaidonMarch4,2016,March4,
2015andMarch5,2014,respectively.Foradescriptionofthisprogram,seeAnnualCashIncentivesintheCD&Aonpage33.

(5)

TheamountsreportedintheChangeinPensionValueandNonqualifiedDeferredCompensationEarningscolumnrepresenttheaggregatechangeduring
2015intheactuarialpresentvalueoftheNamedExecutiveOfficersaccumulatedbenefitsundertheCompanysRetirementAccount,PensionBenefit
EqualizationPlan,andSEBP.Foradescriptionoftheseplans,seethePensionBenefitsTableonpage54.Thechangeintheactuarialpresentvalueyearover
yearislargelydrivenbytheimpactontheSEBPcomponentofthefollowingvariables:oneadditionalyearofserviceandpay;onelessyearofdiscounting
inthepresentvaluecalculation;andannualassumptionchanges(suchasthediscountrateormortalityassumption).TheChangeinPensionValueforeach
oftheNEOsfor2015haveincreasedsincetheyear-end2014proxydisclosures,dueinparttochangesintheactuarialassumptions.Thediscountrateforthe
RetirementAccount,PBEPandSEBPthatisthebasisfortheproxycalculationsincreasedduring2015to4.25%,3.70%and3.40%,respectively.Whilethe
3SEBPparticipantscontinuedtohaveanincreasetotheirfinalaveragepay,thegrowthinfinalaveragepaywassignificantlylessthanatyear-end2014.
Mr.McDanielsfinalaveragepayincreasedbyapproximately$180,000,increasinghisannualtargetSEBPbenefitbyapproximately$100,000.Similar
changesoccurredforMs.HuberandMr.Goggins,butweresmaller.ThePBEPandSEBPplanscomplywithSection409AoftheInternalRevenueCode.
SEBPparticipantselectedeitheranannuityoralumpsumformofpaymentthatwillapplyatretirement,andthePBEPwasamendedsoitwillautomatically
providelumpsumdistributionstoterminatedparticipantsatthelaterofage55orsixmonthsfollowingterminationfromMoodys.TheSEBPwasclosedas
ofJanuary1,2008tonewparticipantsandtheonlyNEOswhoparticipateintheplanareMr.McDaniel,Ms.HuberandMr.Goggins.Theseamountsdonot
includeanynon-qualifieddeferredcompensationearningsastherewerenoabovemarketearningsfortheNEOsinMoodysDeferredCompensationPlan.

49

Table of Contents

(6)

TheamountsreportedintheAllOtherCompensationcolumncomprisethefollowingcompensationitems:

Name

RaymondW.McDaniel
LindaS.Huber
MichelMadelain
MarkE.Almeida
JohnJ.Goggins

Year

Perquisites
and Other
Personal
Benefits
(a)

2015
2015
2015
2015
2015

$ 13,714

Company
Contributions
to
Defined
Contribution
Plans(b)

Dividends or
Other
Earnings
Paid on
Stock
Awards(c)

44,757
23,150
43,796
32,844
18,161

Total

(a)

ForalltheNEOsexceptMichelMadelain,perquisitesandotherpersonalbenefitsprovidedinfiscal2015were,intheaggregate,lessthan$10,000per
individual.ForMichelMadelain,theperquisiteamountsrepresentsacarallowance(asisthepracticeintheUKforexecutiveofficers)paidinBritish
poundssterling.Anexchangerateof1.4746fromtheFederalReserveBankasofDecember31,2015wasusedtocalculatethe2015U.S.dollar
amount.

(b)

TheseamountsrepresenttheaggregateannualCompanycontributionstotheaccountsoftheNamedExecutiveOfficersundertheCompanysProfit
ParticipationPlanandthenon-qualifiedDeferredCompensationPlanintheUnitedStates.TheProfitParticipationPlanandtheDeferred
CompensationPlanaretax-qualifieddefinedcontributionplans.TheamountdescribedwithrespecttoMr.Madelainwascontributedbythe
CompanyssubsidiaryintheUKtotheMoodysGroupPersonalPensionPlan.Anexchangerateof1.4746fromTheFederalReserveBankasof
December31,2015wasusedtocalculatetheU.S.dollaramount.

(c)

Theseamountsrepresentdividendequivalentspaidonrestrictedstockawardsthatvestedduring2015.

(7)

$44,757
23,150
57,510
32,844
18,161

Mr.MadelainscompensationfiguresareshowninthetableinU.S.dollars.However,certainelementsofhiscompensationwaspaidinBritishpounds
sterling.Anexchangerateof1.4746fromTheFederalReserveBankasofDecember31,2015wasusedtocalculatethe2015U.S.dollaramount.

50

Table of Contents

GRANTS OF PLAN-BASED AWARDS TABLE FOR 2015

Thefollowingtablesetsforth,fortheyearendedDecember31,2015,informationconcerningeachgrantofanawardmadetotheCompanysNamed
ExecutiveOfficersin2015underanyplan.

Name
RaymondW.McDaniel

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

Estimated Future
Payouts Under
Equity Incentive Plan
Awards(3)

Grant
Authorization Threshold
Target
Maximum Threshold Target Maximum

Date
Date(1)

($)

($)

($)

(#)
(#)
(#)

2/11/2015 12/16/2014

7,652 30,609
68,870
2/11/2015 12/16/2014

N/A

N/A 1,500,000 3,000,000

All Other
Option
Awards:
Number
of
Securities
Underlying
Options(4)
(#)

55,463

Exercise
or Base
Price of
Option
Awards(5)
($/Sh)

$
98.01

Grant
Date Fair
Value of
Stock and
Option
Awards(6)
$2,999,988
1,999,996

LindaS.Huber

2/11/2015
2/11/2015

N/A

12/16/2014
12/16/2014

N/A 708,000 1,416,000

2,253 9,011

20,275

16,328 $

98.01

883,168
588,788

MichelMadelain

2/11/2015
2/11/2015

N/A

12/16/2014
12/16/2014

N/A 601,637 1,203,274

1,919 7,677

17,273

13,910 $

98.01

752,423
501,595

MarkE.Almeida

2/11/2015
2/11/2015

N/A

12/16/2014
12/16/2014

N/A 624,000 1,248,000

1,763 7,052

15,867

12,779 $

98.01

691,167
460,811

JohnJ.Goggins

2/11/2015
2/11/2015

N/A

12/16/2014
12/16/2014

N/A 414,000

1,410 5,638

12,686

10,216 $

98.01

552,580
368,389

(1)

828,000

TheGovernanceandCompensationCommitteeauthorizedthegrantofstockoptionsandperformancesharesfor2015onDecember15,2014,tobeeffective
onFebruary11,2015,thethirdtradingdayfollowingthedateofthepublicdisseminationoftheCompanysfinancialresultsfor2014.

(2)

Thesecashincentiveawardsweregrantedin2015undertheCompanysannualcashincentiveprogram.TheGovernanceandCompensationCommittee
establishedperformancemetricsforoperatingincomeandEPSgrowththatdeterminetheaggregatefundingoftheprogram.TheGovernanceand
CompensationCommitteeconsidersotherfactorsincludingindividualperformancewhendeterminingthefinalawardamountsforannualincentiveawards.
Foradditionalinformationontheannualcashincentiveprogram,seetheCD&Abeginningonpage27.Theseawardswereearnedduring2015andarepaid
inMarch2016.

(3)

Theseperformanceshareawardsweregrantedin2015undertheCompanys2001StockIncentivePlan.TheGovernanceandCompensationCommittee
determinedthetargetperformanceshareamountsandsetperformancemeasuresoverthethree-yearperformanceperiodendingDecember31,2017.For
Mr.McDaniel,Ms.HuberandMr.Goggins,performanceisbasedonEBITDA,MAssalesgrowthandMISsratingsquality.ForMr.Madelain,
performanceisbasedonEBITDAandMISsratingsquality.ForMr.Almeida,performanceisbasedonEBITDAandMAssalesgrowth.Atmaximum
achievement,thegrantdatefairvalueoftheawardswouldhavebeen225%oftheamountreportedforeachexecutive,orforMr.McDaniel$6,749,973,
Ms.Huber$1,987,128,Mr.Madelain$1,692,952,Mr.Almeida$1,555,126,andMr.Goggins$1,243,305.

(4)

ThesestockoptionawardsweremadeundertheCompanys2001StockIncentivePlan.Theyvestinfourequalannualinstallmentsbeginningonthefirst
anniversaryofthedateofgrant,February11,2015andexpireonFebruary11,2025.

(5)

TheexercisepriceoftheseawardsisequaltothearithmeticmeanofthehighandlowmarketpriceoftheCompanysCommonStockonthegrantdate.

(6)

TheFebruary11,2015grantdatefairvalueforstockoptionsisbasedontheBlack-Scholesoptionvaluationmodel,applyingthefollowingassumptions;an
expectedstock-pricevolatilityfactorof39.35%;arisk-freerateofreturnof1.88%;adividendyieldof1.39%;andanexpectedtimeofexerciseof6.9years
fromthedateofgrant.TheBlack-Scholesmodelispremisedontheimmediateexercisabilityandtransferabilityoftheoptions,neitherofwhichappliesto
theoptionssetoutinthetableabove.Theactualamountsrealized,ifany,willdependontheextenttowhichthestockpriceexceedstheoptionexerciseprice
atthetimetheoptionisexercised.

51

Table of Contents

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END TABLE FOR 2015

Thefollowingtablesetsforthinformationconcerningunexercisedoptions,stockthathasnotvestedandequityincentiveplanawardsforeachofthe
CompanysNamedExecutiveOfficersoutstandingasofDecember31,2015.Themarketvalueofthesharesthathavenotvestedisbasedontheclosingmarket
priceoftheCompanysCommonStockonDecember31,2015ontheNewYorkStockExchange.

Option Awards(1)

Number of
Securities
Underlying
Unexercised
Options (#)

Name
RaymondW.McDaniel

LindaS.Huber

MichelMadelain

MarkE.Almeida

JohnJ.Goggins

Exercisable

185,000

180,863

88,292

110,843

64,356

42,662

13,020

45,000

44,500

85,000

25,133

7,078

35,100

22,713

13,697

4,226

70,012

28,791

28,916

20,138

12,446

3,652

22,750

62,500

65,344

27,236

27,354

19,188

11,570

3,356

24,250

50,000

52,509

21,593

20,784

13,445

8,111

2,477

Number of
Securities
Underlying
Unexercised
Options (#)

Unexercisable

21,453

42,662

39,060

55,463

7,571

13,698

12,681

16,328

6,713

12,446

10,956

13,910

6,396

11,570

10,070

12,779

4,482

8,112

7,431

10,216

Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)

Option
Exercise
Price
($)
38.0700
25.3700
26.7800
30.0100
38.6100
46.4300
79.5500
98.0100
63.0900
72.7150
38.0700
25.3700
26.7800
30.0100
38.6100
46.4300
79.5500
98.0100
38.0700
25.3700
26.7800
30.0100
38.6100
46.4300
79.5500
98.0100
72.7150
38.0700
25.3700
26.7800
30.0100
38.6100
46.4300
79.5500
98.0100
72.7150
38.0700
25.3700
26.7800
30.0100
38.6100
46.4300
79.5500
98.0100

52

Option
Grant
Date
2/12/2008
2/10/2009
2/9/2010
2/8/2011
2/13/2012
2/13/2013
2/12/2014
2/11/2015
2/8/2006
2/12/2007
2/12/2008
2/10/2009
2/9/2010
2/8/2011
2/13/2012
2/13/2013
2/12/2014
2/11/2015
2/12/2008
2/10/2009
2/9/2010
2/8/2011
2/13/2012
2/13/2013
2/12/2014
2/11/2015
2/12/2007
2/12/2008
2/10/2009
2/9/2010
2/8/2011
2/13/2012
2/13/2013
2/12/2014
2/11/2015
2/12/2007
2/12/2008
2/10/2009
2/9/2010
2/8/2011
2/13/2012
2/13/2013
2/12/2014
2/11/2015

Number
of
Shares
or
Units
of
Stock
That
Have
Option
Not
Expiration
Vested
Date
(#)
2/12/2018

2/10/2019

2/9/2020

2/8/2021

2/13/2022

2/13/2023

2/12/2024

2/11/2025

2/8/2016

2/12/2017

2/12/2018

2/10/2019

2/9/2020

2/8/2021

2/13/2022

2/13/2023

2/12/2024

2/11/2025

2/12/2018

2/10/2019

2/9/2020

2/8/2021

2/13/2022

2/13/2023

2/12/2024

2/11/2025

2/12/2017

2/12/2018

2/10/2019

2/9/2020

2/8/2021

2/13/2022

2/13/2023

2/12/2024

2/11/2025

2/12/2017

2/12/2018

2/10/2019

2/9/2020

2/8/2021

2/13/2022

2/13/2023

2/12/2024

2/11/2025

Stock Awards

Market
Value of
Shares
or Units
of Stock
That
Have
Not
Vested
($)(2)

Equity
Incentive
Plan
Awards:
Number
of
Unearned
Shares,
Units or
Other
Rights
That
Have
Not
Vested
(#)(3)
48,460
30,924
30,609

15,559
10,039

9,011

14,137

8,674

7,677

13,142

7,972

7,052

9,214

5,883

5,638

Equity
Incentive
Plan
Awards:
Market
or Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have
Not
Vested
($)(2)
4,862,476
3,102,914
3,071,307

1,561,190
1,007,313
904,164

1,418,507
870,349
770,310

1,318,668
799,910
707,598

924,533
590,300
565,717

Grant
Date
2/13/2013
2/12/2014
2/11/2015

2/13/2013
2/12/2014
2/11/2015

2/13/2013
2/12/2014
2/11/2015

2/13/2013
2/12/2014
2/11/2015

2/13/2013
2/12/2014
2/11/2015

Table of Contents

(1)

Optionawardsareexercisableinfourequal,annualinstallmentsbeginningonthefirstanniversaryofthedateofgrant.Thegrantdateforoptionsistenyears
earlierthantheOptionExpirationDatereportedinthetable.

(2)

ValueiscalculatedbasedontheclosingpriceoftheCommonStockonDecember31,2015,$100.34.

(3)

Representsperformanceshareawardsthatpayoutsubjecttotheattainmentofperformanceobjectivesandvestingrequirementsmeasuredoverathree-year
period.TheperformancesharesgrantedonFebruary13,2013vestinMarch2016fortheperformanceperiodendingDecember31,2015,theperformance
sharesgrantedonFebruary12,2014vestinMarch2017fortheperformanceperiodendingDecember31,2016andtheperformancesharesgrantedon
February11,2015vestinMarch2018fortheperformanceperiodendingDecember31,2017.
OPTION EXERCISES AND STOCK VESTED TABLE FOR 2015

ThefollowingtablesetsforthinformationconcerningthenumberofsharesofCommonStockacquiredandthevaluerealizedupontheexerciseofstock
optionsandthenumberofsharesofCommonStockacquiredandthevaluerealizeduponvestingofrestrictedstockawardsduring2015foreachoftheCompanys
NamedExecutiveOfficersonanaggregatedbasis.Inthecaseofstockoptions,thevaluerealizedisbasedonthemarketpriceoftheCompanysCommonStockon
theNewYorkStockExchangeatthetimeofexerciseandtheoptionexerciseprice;inthecaseofrestrictedstockawards,thevaluerealizedisbasedontheaverage
highandlowmarketpriceoftheCompanysCommonStockontheNewYorkStockExchangeonthevestingdate.

Name

Option Awards

Number of Shares
Acquired on
Value Realized on
Exercise (#)
Exercise ($)

Stock Awards

Number of Shares
Acquired on
Value Realized
Vesting (#)(1)
on Vesting ($)

RaymondW.McDaniel

217,023
$ 7,427,401

76,919
$ 7,439,606

LindaS.Huber

27,146
2,625,561

MichelMadelain

21,857
2,114,009

MarkE.Almeida

25,000

1,200,355

21,894
2,117,588

JohnJ.Goggins

68,050

3,526,526

16,071
1,554,387

(1) Theperformancesharesgrantedforthe2013-2015performanceperiodvestedonMarch1,2016andthereforearenotreflectedintheabovetable.

53

Table of Contents

PENSION BENEFITS TABLE FOR 2015

ThefollowingtablesetsforthinformationwithrespecttoeachdefinedbenefitpensionplanthatprovidesforpaymentsorotherbenefitstotheNamed
ExecutiveOfficersat,following,orinconnectionwithretirement.

Name

RaymondW.McDaniel

Plan Name

Number of
Years Credited
Service (#)(1)

Present Value of
Accumulated
Benefit at 12/31/15
($)

Payments
During Last
Fiscal Year
($)

27.5000
27.5000
28.8333

626,407
4,341,742
31,556,461

9.5833
9.5833
10.6667

217,508
885,857
4,896,552

RetirementAccount
PensionBenefitEqualizationPlan
SupplementalExecutiveBenefitPlan

RetirementAccount
PensionBenefitEqualizationPlan
SupplementalExecutiveBenefitPlan

MichelMadelain(2)

MoodysGroupPersonalPensionPlan

MarkE.Almeida

RetirementAccount
PensionBenefitEqualizationPlan
SupplementalExecutiveBenefitPlan

26.5000
26.5000

569,489
1,331,614

RetirementAccount
PensionBenefitEqualizationPlan
SupplementalExecutiveBenefitPlan

15.8333
15.8333
16.9167

343,303
829,760
6,115,502

LindaS.Huber

JohnJ.Goggins

(1)

ThecreditedservicefortheRetirementAccountandthePBEPisbasedonservicefromthedatetheindividualbecameaparticipantintheplan.Individuals
becomeparticipantsintheplanonthefirstdayofthemonthcoincidentwithornextfollowingthecompletionofoneyearofservice.TheSEBPprovides
creditedservicefromanindividualsdateofhirewithMoodys.ForMessrs.McDanielandAlmeida,thedateofparticipationintheRetirementAccountis
basedonanearlierplanprovisionthatprovidedforindividualstobecomeparticipantsontheJanuary1orJuly1followingthecompletionofoneyearof
service.

(2)

TheCompanyprovidesretirementbenefitstotheNEOsunderthreedefinedbenefitpensionplans,exceptforMichelMadelain,whoisnotaU.S.employee.
Asreflectedinfootnote(6)totheSummaryCompensationTable,anamountwascontributedbytheCompanyssubsidiaryintheUKtotheMoodysGroup
PersonalPensionPlan,whichisadefinedcontributionplan,onMr.Madelainsbehalf.Usinganexchangerateof1.4746fromtheFederalReserveBankas
ofDecember31,2015,theamountcontributedwas$43,796in2015.

TheCompanyprovidesretirementbenefitstotheNamedExecutiveOfficersunderthreedefinedbenefitpensionplans,exceptforMr.Madelain,whoisnota
U.S.employee:theRetirementAccount,thePBEPandtheSEBP.TheRetirementAccountisabroad-basedtax-qualifieddefinedbenefitpensionplan.ThePBEP
isanon-tax-qualifieddefinedbenefitpensionplanthatrestoresbenefitstoparticipantsthatwouldotherwisebelostundertheRetirementAccountdueto
limitationsunderthefederalincometaxlawsontheprovisionofbenefitsundertax-qualifieddefinedbenefitpensionplans.TheRetirementAccount,togetherwith
thePBEP,isacashbalancedesignthatprovidesretirementincomebasedonapercentageofannualcompensationthatiscreditedtoanotionalaccountthatis
thencreditedwithperiodicinterestcredits.TheSEBPisanon-tax-qualifiedsupplementalexecutiveretirementplanthatprovidesadditionalpensionbenefitsfor
designatedseniorexecutiveofficersoftheCompany.AnamountwascontributedbytheCompanyssubsidiaryintheUKtotheMoodysGroupPersonalPension
Plan,whichisadefinedcontributionplandescribedbelow,onMr.Madelainsbehalf.
ThePBEPandSEBPareintendedtocomplywiththerequirementsofSection409AoftheInternalRevenueCode.SEBPparticipantselectedeitheran
annuityoralumpsumformofpaymentthatwillapplyatretirement,

54

Table of Contents

andthePBEPgenerallyprovideslumpsumdistributionstoterminatedparticipantsatthelaterofage55orsixmonthsfollowingterminationfromMoodys.
TheassumptionsmadeincomputingthepresentvalueoftheaccumulatedbenefitsoftheNamedExecutiveOfficers,exceptasdescribedinthefollowing
sentence,areincorporatedhereinbyreferencetothediscussionofthoseassumptionsundertheheadingPensionandOtherPost-RetirementBenefitsinthe
ManagementsDiscussionandAnalysisandNote12tothefinancialstatementsascontainedintheCompanysAnnualReportonForm10-Kfiledwiththe
CommissiononFebruary24,2016.TheassumedretirementageusedincomputingthepresentvalueoftheaccumulatedbenefitsoftheNamedExecutiveOfficers
wasage65inthecaseoftheRetirementAccountandthePBEPandage55inthecaseoftheSEBP.
Thematerialtermsineffectin2014oftheRetirementAccount,thePBEP,theSEBPandMoodysGroupPersonalPensionPlanaredescribedbelow.Future
benefitaccrualsundertheseplansaresubjecttochange.
Moodys Corporation Retirement Account
AllU.S.employeeshiredpriortoJanuary1,2008andwhohavebeencontinuouslyemployedareeligibletoparticipateintheRetirementAccountafter
attainingage21andcompletingoneyearofservicewiththeCompany.Participantsearnonemonthofcreditedserviceforeachmonthorfractionthereoffromthe
datetheybecomeeligibletoparticipateintheplan.TheRetirementAccountisacashbalanceplanprovidingbenefitsthatgrowmonthlyashypotheticalaccount
balances,whicharecreditedwithinterestandpay-basedcredits.Interestcreditsarebasedona30-yearTreasuryinterestrateequivalentwithaminimum
compoundedannualinterestrateof4.5%.Pay-basedcreditsareamountsallocatedtoeachparticipantshypotheticalaccountbaseduponapercentageofmonthly
pensionablecompensation.Thepercentageofcompensationallocatedannuallyrangesfrom3%to12.5%.Eachparticipantspay-basedcreditpercentageisbased
onhisorherattainedageandcreditedservice.Compensationisbasedonactualearnings,whichincludebasesalary,regularbonus(orannualincentiveaward),
overtimeandcommissions.Severancepay,contingentpaymentsandotherformsofspecialremunerationareexcluded.
ParticipantsvestintheirbenefitsaftercompletingthreeyearsofservicewiththeCompany.Uponterminationofemployment,aparticipantmayelectto
receiveanimmediatelumpsumdistributionequalto100%ofhisorhercashbalanceaccountorincertainotherforms.Thenormalretirementageunderthe
RetirementAccountisage65,butparticipantswhohaveattainedage55withatleast10yearsofservicemayelecttoretireearly.Uponretirement,participants
maychooseamongthelumpsumandvariousactuariallyequivalentformsofannuitiesofferedundertheplan.Ms.HuberandMessrs.Almeida,Gogginsand
McDanielarecurrentlyeligibleforearlyretirementundertheRetirementAccount.
Moodys Corporation Pension Benefit Equalization Plan
ThePBEPisanon-tax-qualifieddefinedbenefitpensionplanthatrestoresbenefitstoparticipantswhosepensionablecompensationexceedsthelimitations
underthefederalincometaxlawsontheprovisionofbenefitsundertax-qualifieddefinedbenefitpensionplans.For2015,thislimitationwas$265,000.The
benefit-relatedprovisionsofthePBEParethesameasthoseoftheRetirementAccountexceptfortheformofpaymentwhichmustbeasalumpsum.Upon
attainingage55withatleast10yearsofservice,participantsmayelecttoretire.ThePBEPwasamendedasofJanuary1,2008toprovidethatanyparticipantwho
isanactiveemployeeoftheCompanyoranysubsidiaryafterDecember31,2004shallreceiveallofhisbenefitsunderthePBEPinalumpsumonthesixmonth
anniversaryofhisseparationfromservicewiththeCompanyorasubsidiary.Ms.HuberandMessrs.Almeida,GogginsandMcDanielarecurrentlyeligiblefor
earlyretirementunderthePBEP.

55

Table of Contents

Moodys Corporation Supplemental Executive Benefit Plan

TheSEBPisclosedtonewparticipantsandtheonlyNamedExecutiveOfficersparticipatingintheplanareMr.McDaniel,Ms.HuberandMr.Goggins.The
SEBPisanon-tax-qualifieddefinedbenefitpensionplandesignedtoensurethepaymentofacompetitivelevelofretirementincomeanddisabilitybenefitsto
participants.Historically,akeymanagementemployeeoftheCompanywhowasdeemedtoberesponsibleforthemanagement,growth,orprotectionofthe
Companysbusiness,andwhowasdesignatedinwritingbytheChiefExecutiveOfficerandapprovedbytheGovernanceandCompensationCommitteewas
eligibletoparticipateintheplanontheeffectivedateofhisdesignation.Thetargetretirementbenefitforaparticipantisequalto2%ofaveragefinalcompensation
foreachyearofcreditedserviceupto30yearsofcreditedservice,foramaximumbenefitof60%ofaveragefinalcompensation.Thistargetbenefitisoffsetby
otherpensionbenefitsearnedundertheRetirementAccountandPBEP,aswellasbenefitspayablefromSocialSecurityandotherpensionbenefitspayablebythe
Company.
ParticipantsearnonemonthofcreditedserviceforeachmonthorfractionthereofthattheyareemployedbytheCompany.Eligiblecompensationincludes
basesalary,annualincentiveawards,commissions,lumpsumpaymentsinlieuofforegonemeritincreases,bonusbuyoutsastheresultofjobchangesandany
portionofsuchamountsvoluntarilydeferredorreducedbytheparticipantunderanyCompanyemployeebenefitplan.Averagefinalcompensationisthehighest
consecutive60monthsofeligiblecompensationinthelast120monthsofemployment.
TheSEBPalsoprovidesatemporarydisabilitybenefitintheeventofaparticipantstotalandpermanentdisability.Thisdisabilitybenefitisequalto60%of
the12monthsofcompensationearnedbytheparticipantimmediatelypriortothedateofdisability.Thedisabilitybenefitisoffsetbyanyotherdisabilityincome
and/orpensionincometheparticipantisalreadyreceiving.Paymentofthetemporarydisabilitybenefitcontinuesduringtheparticipantsperiodofdisability,butno
laterthanage65.Duringtheperiodoftotalandpermanentdisability,aparticipantcontinuestoearncreditedserviceforretirementpurposes.
ParticipantsvestintheirbenefitsaftercompletingfiveyearsofservicewiththeCompany.Benefitsarepayableatthelaterofage55orterminationof
employment.Forparticipantswhoterminatetheiremploymentpriortoattainingage55,benefitsmustcommenceatage55andtheirSEBPbenefitwillbereduced
by60%forearlyretirement.IfaparticipantorvestedformerparticipantretiresdirectlyfromtheCompanyafterage55andbeforeage60withouttheCompanys
consent,hisretirementbenefitisreducedby3%foreachyearorfractionthereofthatretirementcommencespriortoreachingage60.Ifaparticipantretiresdirectly
fromtheCompanyonorafterage55withtheCompanysconsent,benefitsarenotreducedforcommencementpriortoage60.
ThenormalformofpaymentundertheSEBPisasingle-lifeannuityfornon-marriedparticipantsorafullysubsidized50%jointandsurvivorannuityfor
marriedparticipants.Participantsmayreceiveupto100%oftheirbenefitintheformofalump-sumdistribution.
Moodys UK Group Personal Pension Plan
TheGroupPersonalPensionPlan(theGPPP)enablesemployeesintheUnitedKingdomtocontributetoadefinedcontributionpensionarrangement.The
GPPPisacollectionofindividualpensionpolicies.EachmemberhashisorownindividualpensionpolicywithintheGPPPand,iftheemployeechanges
employer,theemployeemaybeabletocontinuetocontributetothepolicyifhesowishes.MembershipintheGPPPisautomaticforallemployeesintheUKwho
aredirectlyemployedbyMoodys.MoodysUKmakescontributionsrepresentingapercentageofuncappedsalaryataratedependentupontheemployees
contribution.Theratesareasfollows:

Employee

Employer

3%
4%
5%
6%

6%
8%
10%
12%(maximumemployercontribution;nomaximumforemployee)

56

Table of Contents

MoodysUKwillstoppayingcontributionstotheGPPPwhenanemployeeleavesservice,oronthedateofcontractualretirement,ifearlier.Asacondition
tomembershipintheGPPP,anemployeeisrequiredtomakeregularcontributionsofatleast3%ofsalary.
EmployeecontributionsqualifyforfulltaxreliefviaasalarysacrificearrangementcalledPensionSense.Employeesarenottaxedonthecontributionspaid
intotheGPPPbyMoodysUK.
NONQUALIFIED DEFERRED COMPENSATION TABLE(1)
ThefollowingtablesetsforthinformationconcerningthenonqualifieddeferredcompensationoftheNamedExecutiveOfficersin2015.

Name

Executive
Contributions
in Last Fiscal
Year ($)

Registrant
Contributions
in Last Fiscal
Year ($)

Aggregate
Earnings
in Last
Fiscal
Year ($)

Aggregate
Withdrawals/
Distributions
($)

Aggregate
Balance
at Last
Fiscal
Year End
($)

RaymondW.McDaniel

$ (1,354)

$237,440

LindaS.Huber

(1,132)

104,653

MichelMadelain

N/A

N/A

N/A

N/A

N/A

MarkE.Almeida
$ 78,300
$ 13,050
(30,982)

763,754

JohnJ.Goggins

(14,478)

103,476

(1) NonqualifieddeferredcompensationearningsareincludedintheAggregateEarningsinLastFiscalYearcolumnofthistable.Companycontributionsto
theaccountsoftheNEOsundertheCompanysnonqualifiedDeferredCompensationPlanalsoarereflectedincolumn(b)offootnote(6)totheSummary
CompensationTable.Contributionsof$521,940forMr.Almeidaand$54,818forMr.GogginswerereportedascompensationintheCompanysSummary
CompensationTableforprioryears.
Moodys Corporation Deferred Compensation Plan
EffectiveJanuary1,2008,theCompanyimplementedtheMoodysCorporationDeferredCompensationPlan(theDCP).Eachyear,employeesexpected
toearnannualcompensationinexcessoftheIRScompensationlimitforallowablepre-taxdeferralsintotheMoodysProfitParticipationPlanarenotifiedoftheir
eligibilitytoparticipateintheDCP.
TheprimarypurposeoftheDCPistoallowtheseemployeestocontinuepre-taxdeductionsintoanonqualifiedplanandreceivethemaximumcompany
matchoncompensationwhichexceedstheIRSlimitsforallowablepre-taxdeferralsintotheMoodysProfitParticipationPlan.Alimitedgroupofhighly
compensatedmembersofseniormanagementhavetheoptionofimmediatedeferralofupto50%ofbasesalaryand/orbonus.However,theCompanymatchonly
appliestodeferralsoncompensationinexcessoftheIRSlimitoncompensation($265,000for2015).Inaddition,theCompanywillcredittotheDCPemployer
contributionsthatwouldhavebeenmadetotheProfitParticipationPlanbutfortheapplicationoftheIRStotalcontributionlimit.
EachparticipantmayselectoneormoredeemedinvestmentfundsofferedundertheDCPfortheinvestmentoftheparticipantsaccountandfuture
contributions.ThedeemedinvestmentfundsaresubstantiallythesameasthefundsavailableintheProfitParticipationPlan.TheDCPisunfundedandnocash
amountsarepaidintoorsetasideinatrustorsimilarfundundertheDCP.Allamountsdeductedfromaparticipantsearnings,alongwithanyCompany
contributions,areretainedaspartoftheCompanysgeneralassetsandarecreditedtotheparticipantsbookkeepingaccountundertheDCP.Thevalueofa
participantsaccountincreasesordecreasesinvaluebaseduponthefairmarketvalueofthedeemedinvestmentfundsasoftheendoftheyear.Theformsof
distributionundertheDCPareeitheralumpsumorinstallmentpaymentsaftertermination,aswellasanalternativeforparticipantstoelectin-servicedistribution
atthetimedeferralelectionsaremade.

57

Table of Contents

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL

TheinformationbelowreflectstheamountofcompensationthatwouldbecomepayabletoeachoftheNamedExecutiveOfficersundercertainexisting
plansandarrangementsiftheexecutivesemploymenthadterminatedunderthespecifiedcircumstancesoriftherehadbeenachangeincontrol,ineachcase,on
December31,2015,giventhenamedexecutivescompensationand,ifapplicable,basedontheCompanysclosingstockpriceonthatdate.Thesebenefitsarein
additiontobenefitsthatmaybeavailabletotheexecutivepriortotheoccurrenceofanyterminationofemployment,includingunderexercisablestockoptionsheld
bytheexecutive,andbenefitsavailablegenerallytosalariedemployees,suchasdistributionsundertheCompanystax-qualifieddefinedcontributionplanand
distributionsofaccruedvacationpay.Inaddition,inconnectionwithanyeventincludingorotherthanthosedescribedbelow,theCompanymaydeterminetoenter
intoanagreementortoestablishanarrangementprovidingadditionalbenefitsoramounts,oralteringthetermsofbenefitsdescribedbelow,astheCompany
determinesappropriate.Achangeincontrolisdefinedas:(i)thedateanyoneperson,ormorethanonepersonactingasagroupacquires(orhasacquiredduring
the12-monthperiodendingonthedateofthemostrecentacquisitionbysuchpersonorpersons)ownershipofstockofMoodysCorporationpossessing50percent
ormoreofthetotalvotingpowerofthestockofMoodysCorporation,(ii)thedateamajorityofmembersoftheBoardisreplacedduringany12-monthperiodby
directorswhoseappointmentorelectionisnotendorsedbyamajorityofthemembersoftheBoardbeforethedateoftheappointmentorelection,or(iii)thedate
anyoneperson,ormorethanonepersonactingasagroupacquires(orhasacquiredduringthe12-monthperiodendingonthedateofthemostrecentacquisition
bysuchpersonorpersons)assetsfromtheCompanythathaveatotalgrossfairmarketvalueequaltoormorethan40percentofthetotalgrossfairmarketvalueof
alloftheassetsoftheCompanyimmediatelybeforesuchacquisitionoracquisitions.
TheactualamountsthatwouldbepaiduponaNamedExecutiveOfficersterminationofemploymentcanbedeterminedonlyatthetimeofsuchexecutives
separationfromtheCompany.Duetothenumberoffactorsthataffectthenatureandamountofanybenefitsprovidedupontheeventsdiscussedbelow,anyactual
amountspaidordistributedmaybehigherorlowerthanreportedbelow.Factorsthatcouldaffecttheseamountsincludethetimingduringtheyearofanysuch
event,theCompanysstockpriceandtheexecutivesthencurrentcompensation.
Moodys Corporation Career Transition Plan
EachoftheCompanysNamedExecutiveOfficerscurrentlyparticipatesintheMoodysCorporationCareerTransitionPlan(theCTP).Thisplan
generallyprovidesforthepaymentofbenefitsifaneligibleexecutiveofficersemploymentterminatesforoneofseveralspecifiedevents:areductioninforce,a
jobelimination,unsatisfactoryjobperformance(notconstitutingcause),oramutuallyagreed-uponresignation.
TheCTPprovidespaymentsandbenefitstoindividualsforwhatMoodysbelievestobeareasonableperiodforthemtofindcomparableemployment.It
alsoaffordsbothMoodysandtheindividualthemotivationtoresolveanypotentialclaimsorotherissuesbetweenthepartieswithfinality,whichhelpsminimize
distractionsformanagementandprotecttheinterestsofstockholders.
Theplandoesnotcoveremploymentterminationsresultingfromaunilateralresignation,aterminationofemploymentforcause,asale,merger,spin-off,
reorganization,liquidation,ordissolutionoftheCompany,orwheretheNamedExecutiveOfficertakesacomparablepositionwithanaffiliateoftheCompany.
Causemeanswillfulmalfeasanceormisconduct,acontinuingfailuretoperformhisduties,afailuretoobservethematerialpoliciesoftheCompany,orthe
commissionofafelonyoranymisdemeanorinvolvingmoralturpitude.Intheeventofaneligibleterminationofemployment,aNamedExecutiveOfficermaybe
paid52weeksofsalarycontinuation(26weeksiftheexecutiveofficeristerminatedbytheCompanyforunsatisfactoryperformance),payableatthetimesthe
executiveofficerssalarywouldhavebeenpaidifemploymenthadnotterminated.Forthispurpose,salaryconsistsoftheNamedExecutiveOfficersannualbase
salaryatthetimeofterminationofemployment.Inaddition,theNamedExecutiveOfficermayreceivecontinuedmedical,dentalandlifeinsurancebenefitsduring
theapplicablesalarycontinuationperiodandwillbeentitledtosuchoutplacementservicesduringthesalarycontinuationperiodasarebeinggenerallyprovidedby
theCompanytoitsemployees.

58

Table of Contents

Inaddition,theexecutiveisentitledtoreceiveanybenefitsthatheorsheotherwisewouldhavebeenentitledtoreceiveunderMoodysretirementplans,although
thesebenefitsarenotincreasedoraccelerated.
ExceptinthecaseofaterminationofemploymentbytheCompanyforunsatisfactoryperformance,theNamedExecutiveOfficeralsomayreceive:

aproratedportionoftheactualannualcashincentivefortheyearofterminationofemploymentthatwouldhavebeenpayabletotheexecutiveofficer
undertheannualcashincentiveplaninwhichtheexecutiveofficerwasparticipatingatthetimeoftermination,providedthattheexecutiveofficerwas
employedforatleastsixfullmonthsduringthecalendaryearoftermination;

financialplanningandcounselingservicesduringthesalarycontinuationperiodtothesameextentaffordedimmediatelypriortoterminationof
employment.

TheplangivestheCompanysChairmanandChiefExecutiveOfficerthediscretiontoreduceorincreasethebenefitsotherwisepayableto,orotherwise
modifythetermsandconditionsapplicableto,aNamedExecutiveOfficer(otherthanhimself)undertheplan.Asamatterofpolicy,ifMr.McDanielintendedto
increasethebenefitspayable,anysuchproposalwouldbereviewedbytheCommittee.
ThereceiptofanybenefitsundertheplaniscontingentupontheaffectedNamedExecutiveOfficersigningaseveranceandreleaseagreementthatprohibits
himfromengaginginconductthatisdetrimentaltotheCompany,suchasworkingforcertaincompetitors,solicitingcustomersoremployeesafteremployment
ends,anddisclosingconfidentialinformation,thedisclosureofwhichwouldresultincompetitiveharmtotheCompany.Theseprovisionsextendfortheone-year
periodduringwhichtheNamedExecutiveOfficerwouldbereceivingpaymentspursuanttotheCTP.
TheestimatedpaymentsandbenefitspayabletotheNamedExecutiveOfficersassuminganeventtriggeringpaymentundertheCTPasofthelastdayof
2015arereportedinthediscussionofPotentialPaymentsUponTerminationorChangeinControlbeginningonpage58.
TheestimatedpaymentsandbenefitsthatwouldbeprovidedtoeachNamedExecutiveOfficerstillservinginthatcapacityundereachcircumstancethatis
coveredbytheCareerTransitionPlanarelistedinthetablesbelow.
Potential Payments and Benefits Upon a Termination of Employment
by Reason of a Reduction in Force, Job Elimination,
or a Mutually Agreed Upon Resignation(1)

Name

RaymondW.McDaniel

LindaS.Huber

MichelMadelain

MarkE.Almeida

JohnJ.Goggins

(1) Forpurposesofthisanalysis,thefollowingassumptionswereused:

$1,000,000
609,000
502,839
522,000
502,000

$1,500,000
708,000
601,637
624,000
414,000

$ 16,108

42

9,658
16,108

thedateofterminationofemploymentwasDecember31,2015;

eachNEOsbasesalarywastheamountasofDecember31,2015andiscontinuedforaperiodof52weeks;and

eachNEOsannualcashincentiveisequalto100%ofthetargetamountundertheannualcashincentiveprogram.

Annual Cash
Incentive
($)

Salary
Continuation
($)

Medical,
Dental, and
Life
Insurance
Benefits
($)

59

OutPlacement
Services
($)

$ 40,000
40,000
40,000
40,000
40,000

Total
($)

$2,556,108
1,357,042
1,144,476
1,195,658
972,108

Table of Contents

Potential Payments and Benefits Upon a Termination of Employment

by Reason of Unsatisfactory Job Performance
(Not Constituting Cause)(1)

Name

RaymondW.McDaniel
LindaS.Huber
MichelMadelain
MarkE.Almeida
JohnJ.Goggins

(1) Forpurposesofthisanalysis,thefollowingassumptionswereused:

OutPlacement
Services
($)

$ 40,000
40,000
40,000
40,000
40,000

500,000
304,500
251,420
261,000
251,000

thedateofterminationofemploymentwasDecember31,2015;and

eachNEOsbasesalarywastheamountasofDecember31,2015andiscontinuedforaperiodof26weeks.

Salary
Continuation
($)

Medical,
Dental, and
Life
Insurance
Benefits
($)

8,054
21

4,829
8,054

Total
($)

$548,054
344,521
291,420
305,829
299,054

Moodys Corporation Change in Control Severance Plan

OnDecember14,2010,theBoardofDirectorsapprovedtheadoptionoftheMoodysCorporationChangeinControlSeverancePlan(theCICP).The
purposeoftheCICPistoofferitsparticipants,whichincludetheCompanysexecutiveofficersandotherkeyemployeesselectedbytheCommittee,protectionin
theeventofaChangeinControl(asdefinedintheCICP).TheCICPhasbeenadoptedtoenhancethealignmentoftheinterestsofmanagementandstockholders
byallowingexecutivestoremainobjectivewhenfacingtheprospectofasaleandpotentialjobelimination.TheCICPhasaninitialtwo-yeartermthatwill
automaticallyreneweachyearforanadditionalyear,unlesstheCompanydeterminesnottorenewtheCICPbeyonditsthencurrentterm.UndertheCICP,
participantsareentitledtoseverancebenefitstriggeredonlyifaparticipantsemploymentisterminatedwithin90dayspriortoortwoyearsfollowingachangein
controloftheCompanybytheCompanyoritssuccessorwithoutCause,orbytheparticipantforGoodReason(bothtermsasdefinedintheCICP).Severance
benefitswillnotbepayableifaparticipantisterminatedforCauseorvoluntarilyresignswithoutGoodReason.FortheCEO,severancebenefitsundertheCICP
consistofalumpsumcashpaymentequaltothreetimesthesumofhisbasesalaryandtargetbonusfortheyearoftermination,plusthreeyearsofcontinued
coverageundertheCompanysmedicalanddentalinsuranceplans.Forotherexecutives,includingtheotherNEOs,theseverancebenefitsconsistofalumpsum
cashpaymentequaltotwotimesthesumoftheirbasesalariesandtargetannualincentives,plustwoyearsofcontinuedmedicalanddentalcoverage.Paymentand
retentionofseverancebenefitsundertheCICParecontingentontheparticipantexecutingandnotrevokingageneralreleaseofclaimsagainsttheCompanyand
agreeingnottocompetewiththeCompanyorsolicitCompanycustomersoremployeesforaperiodoftwoyearsfollowingthedateoftheparticipantstermination
ofemployment.Thereisnogross-upofIRSgoldenparachuteexcisetaxesincurredbyanyexecutive.
Other Potential Payments Upon Termination of Employment
TheCompanys2001StockIncentivePlanprovidesforvestingofoutstandingstockoptionsandrestrictedstockawardsundercertaincircumstancesas
follows:

intheeventofthedeathordisabilityofaNamedExecutiveOfficerafterthefirstanniversaryofthedateofgrantofastockoption,theunvested
portionofsuchstockoptionwillimmediatelyvestinfullandsuchportionmaythereafterbeexercisedduringtheshorterof(a)theremainingstated
termofthestockoptionor(b)fiveyearsafterthedateofdeathordisability;

60

Table of Contents

intheeventoftheretirementofaNamedExecutiveOfficerafterthefirstanniversaryofthedateofgrantofastockoption,theunvestedportionof
suchstockoptionwillcontinuetovestduringtheshorterof(a)theremainingstatedtermofthestockoptionor(b)fiveyearsafterthedateof
retirement;

intheeventofaterminationforanyreasonotherthandeath,disabilityorretirement,anunexercisedstockoptionmaythereafterbeexercisedduring
theperiodending30daysafterthedateoftermination,butonlytotheextentsuchstockoptionwasexercisableatthetimeoftermination;

intheeventofthedeath,disability,orretirementofaNamedExecutiveOfficerafterthefirstanniversaryofthedateofgrantofarestrictedstock
award,theawardwillimmediatelyvestinfull;

intheeventofterminationforanyreasonotherthandeath,disabilityorretirement,afterthefirstanniversaryofthedateofgrantofarestrictedstock
award,theunvestedportionoftheawardshallbeforfeited;

intheeventofachangeincontroloftheCompany,theunvestedportionofalloutstandingstockoptionsandrestrictedstockawardsgrantedpriorto
January1,2013vestinfull;

intheeventofachangeincontroloftheCompany,(i)unlessotherwisedeterminedbytheCommittee,iftheacquirerassumesorsubstitutesanaward
ofequivalentvalue,theunvestedportionofalloutstandingstockoptionsandrestrictedstockawardsgrantedonorafterJanuary1,2013vestinfullif
theNamedExecutiveOfficersemploymentisterminatedbyuswithoutcauseorbytheNamedExecutiveOfficerforgoodreasonwithin90days
beforeortwoyearsafterthechangeincontrol,or(ii)iftheacquirerdoesnotassumeorsubstituteawardsofequivalentvalue,theunvestedportionof
theawardsshallvestinfull;

intheeventofthedeath,disabilityorretirementofaNamedExecutiveOfficer,theNEOshallhavesuchrightsinhisorherperformanceshares,if
any,asmaybeprescribedbytheawardagreement;

intheeventofaterminationforanyreasonotherthandeath,disabilityorretirementpriortotheendofanyapplicableperformanceperiod,anNEOs
performancesharesshallbeforfeited,unless,subjecttothe2001Plan,theGovernanceandCompensationCommittee,initssolediscretion,shall
determineotherwise;and

intheeventofachangeincontroloftheCompany,performancesharesshallbecomepayableinsuchmannerasshallbesetforthintheaward
agreement.

Potential Payments and Benefits Upon a Termination of

Employment Following a Change in Control of the Company(1)

Name

Salary
Continuation
($)

Annual
Cash
Incentive
($)

RaymondW.McDaniel
$3,000,000 $4,500,000
LindaS.Huber
1,218,000 1,416,000
MichelMadelain
1,005,678 1,203,274
MarkE.Almeida
1,044,000 1,248,000
JohnJ.Goggins
1,004,000 828,000

(1) Forpurposesofthisanalysis,thefollowingassumptionswereused:

Stock Options
($)(2)

Restricted
Stock
Awards
($)(2)

$ 48,324

84

19,316
32,216

$ 4,565,488
1,507,499
1,345,542
1,257,694
892,285

Performance
Share
Awards
($)

$11,036,697
3,472,667
3,059,166
2,826,176
2,080,550

Total
($)

thedateofterminationofemploymentwasDecember31,2015;

fortheCEO,Mr.McDaniel,thatheexecutedageneralreleaseandtwo-yearnon-competeagreementundertheCICPandreceivedasalarylumpsum
payoutequaltothreetimeshisbasesalaryasofDecember31,2015,anannualcashincentivelump-sumpayoutequaltothreetimeshis2015annual
targetcashincentiveandthreeyearscontinuationofcurrentelectedcoverageunderthemedical,dentalandlifeinsuranceprograms;

61

$23,150,509
7,614,250
6,613,660
6,395,186
4,837,051

Medical,
Dental and
Life
Insurance
Benefits
($)

Table of Contents

foreachNEO,otherthanMr.McDaniel,thatheorsheexecutedageneralreleaseandtwo-yearnon-competeagreementundertheCICPandreceiveda
salarylump-sumpayoutequaltotwotimestheexecutivesbasesalaryasofDecember31,2015,anannualcashincentivelump-sumpayoutequalto
twotimestheexecutives2015annualtargetcashincentive,andtwoyearscontinuationofcurrentelectedcoverageunderthemedical,dentalandlife
insuranceprograms;

themarketpricepershareoftheCompanysCommonStockonDecember31,2015was$100.34pershare,theclosingpriceoftheCommonStockon
thatdate;

unvestedequityawardsvestinfullbecausetheNEOisterminatedwithoutcauseinconnectionwiththechangeincontrol;and

performancesharespaidattarget.

(2)

ValuereflectsbenefitreceiveduponChangeinControlregardlessofwhethertheexecutivesemploymentisterminated.
Potential Payments and Benefits Upon a Termination of
Employment by Reason of Death, Disability or Retirement(1)

Name

RaymondW.McDaniel
LindaS.Huber
MichelMadelain
MarkE.Almeida
JohnJ.Goggins

(1) Forpurposesofthisanalysis,thefollowingassumptionswereused:

$ 4,436,259
1,469,455
1,313,132
1,227,919
868,482

$6,931,085
2,232,732
1,998,740
1,851,941
1,318,066

Total
($)

$11,367,344
3,702,187
3,311,872
3,079,860
2,186,548

thedateofterminationofemploymentwasDecember31,2015;

themarketpricepershareoftheCompanysCommonStockonDecember31,2015was$100.34pershare,theclosingpriceoftheCommonStockon
thatdate;and

performancesharespaidattarget.

Performance
Share
Awards
($)

Stock Options
($)

Restricted Stock
Awards
($)

OTHER BUSINESS
TheBoardofDirectorsknowsofnobusinessotherthanthematterssetforthhereinthatwillbepresentedattheAnnualMeeting.Inasmuchasmattersnot
knownatthistimemaycomebeforetheAnnualMeeting,theenclosedproxyconfersdiscretionaryauthoritywithrespecttosuchmattersasmayproperlycome
beforetheAnnualMeeting,anditistheintentionofthepersonsnamedintheproxytovoteinaccordancewiththeirbestjudgmentonsuchmatters.
STOCKHOLDER PROPOSALS FOR 2017 ANNUAL MEETING
StockholderproposalswhicharebeingsubmittedforinclusionintheCompanysproxystatementandformofproxyforthe2017annualmeetingof
stockholdersmustbereceivedbytheCompanyatitsprincipalexecutiveofficesnolaterthan5:00p.m.ESTonNovember2,2016.Suchproposalswhensubmitted
mustbeinfullcompliancewithapplicablelaws,includingRule14a-8oftheExchangeAct.

62

Table of Contents

UndertheCompanysBy-Laws,noticesofmatterswhicharebeingsubmittedotherthanforinclusionintheCompanysproxystatementandformofproxy
forthe2017annualmeetingofstockholdersmustbereceivedbytheCorporateSecretaryoftheCompanyatitsprincipalexecutiveofficesnoearlierthan
January12,2017andnolaterthanFebruary1,2017.Ifthe2017annualmeetingismorethan20daysbeforeormorethan70daysaftertheanniversarydateofthis
yearsAnnualMeeting,suchnoticesmustbereceivednoearlierthanthe90thdaypriortosuchannualmeetingandnolaterthanthecloseofbusinessonthelater
ofthe70thdaypriortosuchannualmeetingorthe10thdayfollowingthedayofpublicannouncementofthemeetingdate.Suchmatterswhensubmittedmustbe
infullcompliancewithapplicablelawandtheCompanysBy-Laws.Thechairmanofthemeetingmayrefusetoacknowledgeorintroduceanysuchmatterif
noticeofthematterisnotreceivedwithintheapplicabledeadlinesordoesnotcomplywiththeCompanysBy-Laws.Ifastockholderdoesnotmeetthese
deadlines,ordoesnotsatisfytherequirementsofRule14a-4oftheExchangeAct,thepersonsnamedasproxieswillbeallowedtousetheirdiscretionaryvoting
authoritywhenandifthematterisraisedatthemeeting.
March2,2016

63

Table of Contents

ANNUAL MEETING OF STOCKHOLDERS OF

MOODYS CORPORATION
April 12, 2016

GO GREEN
e-Consentmakesiteasytogopaperless.Withe-Consent,youcanquicklyaccessyourproxymaterials,statements
andothereligibledocumentsonline,whilereducingcosts,clutterandpaperwaste.Enrolltodayvia
www.amstock.comtoenjoyonlineaccess.

NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS :

The Notice of Meeting, proxy statement and proxy card
are available at http://www.astproxyportal.com/ast/26180/
Pleasesign,dateandmail
yourproxycardinthe
envelopeprovidedassoon
aspossible.
iPleasedetachalongperforatedlineandmailintheenvelopeprovided.i

THEBOARDOFDIRECTORSRECOMMENDSAVOTEFORTHEELECTIONOFTHEDIRECTORSANDFORPROPOSALS2AND3.
PLEASESIGN,DATEANDRETURNPROMPTLYINTHEENCLOSEDENVELOPE.PLEASEMARKYOURVOTEINBLUEORBLACKINKASSHOWNHEREx

YOU ARE ENCOURAGED TO SPECIFY YOUR

CHOICES BY MARKING THE APPROPRIATE
BOXES. WHERE A CHOICE IS NOT SPECIFIED,
THE PROXIES WILL VOTE YOUR SHARES IN
ACCORDANCE WITH THE BOARD OF
DIRECTORS RECOMMENDATIONS.

1. ELECTIONOFDIRECTORSOFTHECOMPANY:
BASILL.ANDERSON
JORGEA.BERMUDEZ
DARRELLDUFFIE,PH.D.
KATHRYNM.HILL
EWALDKIST
RAYMONDW.MCDANIEL,JR.
HENRYA.MCKINNELL,JR.,PH.D.
LESLIEF.SEIDMAN
BRUCEVANSAUN

2.

RATIFICATIONOFTHEAPPOINTMENTOF
INDEPENDENTREGISTEREDPUBLIC
ACCOUNTINGFIRMOFTHECOMPANYFOR
2016.

ADVISORYRESOLUTIONAPPROVING
EXECUTIVECOMPENSATION.

3.

FOR

AGAINST

ABSTAIN

Intheirdiscretion,theproxiesareauthorizedtovoteuponsuchotherbusinessasmay
properlycomebeforetheAnnualMeeting.Thisproxywhenproperlyexecutedwillbevoted
asdirectedhereinbytheundersignedshareholder.If no direction is made, this proxy will
be voted FOR THE NOMINEES in Proposal 1 and FOR Proposals 2 and 3.

Tochangetheaddressonyouraccount,pleasechecktheboxat
therightandindicateyournewaddressintheaddressspace
above.Pleasenotethatchangestotheregisteredname(s)on
theaccountmaynotbesubmittedviathismethod.

SignatureofStockholder

Date

SignatureofStockholder

Date

Note:

PleasesignexactlyasyournameornamesappearonthisProxy.Whensharesareheldjointly,eachholdershouldsign.Whensigningasexecutor,
administrator,trusteeorguardian,pleasegivefulltitleassuch.Ifthesignerisacorporation,pleasesignfullcorporatenamebydulyauthorizedofficer,
givingfulltitleassuch.Ifsignerisapartnership,pleasesigninpartnershipnamebyauthorizedperson.

Table of Contents

MOODYS CORPORATION
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR
ANNUAL MEETING OF STOCKHOLDERS TO BE HELD TUESDAY, APRIL 12, 2016
As an alternative to completing this form, you may enter your vote instruction by telephone at 1-800-PROXIES, or via the Internet at
WWW.PROXYVOTE.COM and follow the simple instructions. Use the Company Number and Account Number shown on your proxy card.
TheundersignedherebyappointsRaymondW.McDaniel,Jr.,LindaS.HuberandJohnJ.Goggins,andeachofthem,asproxies,eachwithfullpowerof
substitution,torepresenttheundersignedandvoteallthesharesofcommonstockofMoodysCorporationwhichtheundersignedisentitledtovoteattheAnnual
MeetingofStockholderstobeheldonApril12,2016at9:30a.m.,localtime,attheCompanysofficesat7WorldTradeCenterat250GreenwichStreet,New
York,NewYork10007,andanyadjournmentorpostponementthereof.Theundersigneddirectsthenamedproxiestovoteasdirectedonthereversesideofthis
cardonthespecifiedproposalsandintheirdiscretiononanyotherbusinesswhichmayproperlycomebeforethemeetingandanyadjournmentorpostponement
thereof.
ThiscardalsoconstitutesvotinginstructionstotheTrusteeoftheMoodysCorporationProfitParticipationPlantovote,inpersonorbyproxy,the
proportionateinterestoftheundersignedinthesharesofcommonstockofMoodysCorporationheldbytheTrusteeundertheplan,asdescribedintheProxy
Statement.
(Continued and to be marked, signed and dated, on the reverse side.)

Table of Contents

ANNUAL MEETING OF STOCKHOLDERS OF

MOODYS CORPORATION
April 12, 2016

PROXY VOTING INSTRUCTIONS

INTERNET Accesswww.proxyvote.com andfollowtheon-screeninstructionsorscantheQRcodewithyoursmartphone.Have

yourproxycardavailablewhenyouaccessthewebpage.

TELEPHONE Calltoll-free1-800-PROXIES (1-800-776-9437)intheUnitedStatesor1-718-921-8500 fromforeigncountriesfromany

touch-tonetelephoneandfollowtheinstructions.Haveyourproxycardavailablewhenyoucall.

Voteonline/phoneuntil11:59PMEDTthedaybeforethemeeting.

COMPANY NUMBER

ACCOUNT NUMBER

MAIL Sign,dateandmailyourproxycardintheenvelopeprovidedassoonaspossible.

IN PERSON YoumayvoteyoursharesinpersonbyattendingtheAnnualMeeting.

GO GREEN e-Consentmakesiteasytogopaperless.Withe-Consent,youcanquicklyaccessyourproxymaterials,statementsandother
eligibledocumentsonline,whilereducingcosts,clutterandpaperwaste.Enrolltodayviawww.amstock.comtoenjoyonlineaccess.

NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS:

TheNoticeofMeeting,proxystatementandproxycardareavailableat
http://www.astproxyportal.com/ast/26180/

iPleasedetachalongperforatedlineandmailintheenvelopeprovidedIFyouarenotvotingviatelephoneortheInternet.i

THEBOARDOFDIRECTORSRECOMMENDSAVOTEFORTHEELECTIONOFTHEDIRECTORSANDFORPROPOSALS2AND3.
PLEASESIGN,DATEANDRETURNPROMPTLYINTHEENCLOSEDENVELOPE.PLEASEMARKYOURVOTEINBLUEORBLACKINKASSHOWNHEREx

1. ELECTIONOFDIRECTORSOFTHECOMPANY:
BASILL.ANDERSON

JORGEA.BERMUDEZ

DARRELLDUFFIE,PH.D.

KATHRYNM.HILL

EWALDKIST

RAYMONDW.MCDANIEL,JR.

HENRYA.MCKINNELL,JR.,PH.D.

LESLIEF.SEIDMAN

BRUCEVANSAUN

2. RATIFICATIONOFTHEAPPOINTMENTOFINDEPENDENT
REGISTEREDPUBLICACCOUNTINGFIRMOFTHE
COMPANYFOR2016.

3. ADVISORYRESOLUTIONAPPROVINGEXECUTIVE
COMPENSATION.

YOU ARE ENCOURAGED TO SPECIFY YOUR

CHOICES BY MARKING THE APPROPRIATE
BOXES. WHERE A CHOICE IS NOT SPECIFIED,
THE PROXIES WILL VOTE YOUR SHARES IN
ACCORDANCE WITH THE BOARD OF
DIRECTORS RECOMMENDATIONS.

FOR AGAINST ABSTAIN

Tochangetheaddressonyouraccount,pleasecheckthe

boxattherightandindicateyournewaddressinthe
addressspaceabove.Pleasenotethatchangestothe
registeredname(s)ontheaccountmaynotbesubmittedvia
thismethod.

Intheirdiscretion,theproxiesareauthorizedtovoteuponsuchotherbusinessasmayproperly
comebeforetheAnnualMeeting.Thisproxywhenproperlyexecutedwillbevotedasdirected
hereinbytheundersignedshareholder.If no direction is made, this proxy will be voted FOR
THE NOMINEES in Proposal 1 and FOR Proposals 2 and 3.

SignatureofStockholder

Date

SignatureofStockholder

Date

Note:

PleasesignexactlyasyournameornamesappearonthisProxy.Whensharesareheldjointly,eachholdershouldsign.Whensigningasexecutor,
administrator,trusteeorguardian,pleasegivefulltitleassuch.Ifthesignerisacorporation,pleasesignfullcorporatenamebydulyauthorizedofficer,
givingfulltitleassuch.Ifsignerisapartnership,pleasesigninpartnershipnamebyauthorizedperson.

Table of Contents

A DMISSION T ICKET

MOODYS CORPORATION
7 World Trade Center
250 Greenwich Street
New York, New York 10007
Annual Meeting of Stockholders
Tuesday, April 12, 2016
9:30 a.m. EDT

To obtain directions to attend the Annual Meeting and vote in person,

please contact the Companys Investor Relations Department by sending an e-mail to ir@moodys.com.