Baker Hughes 2004 Annual Report Download - page 24

The฀Governance฀Committee฀has฀implemented฀policies฀
regarding฀Board฀membership.฀The฀Governance฀Committee฀
will฀consider฀candidates฀based฀upon฀the฀size฀and฀existing฀
composition฀of฀the฀Board,฀the฀number฀and฀qualifications฀of฀
candidates,฀the฀benefit฀of฀continuity฀on฀the฀Board฀and฀the฀rel-
evance฀of฀the฀candidate’s฀background฀and฀experience฀to฀issues฀
facing฀the฀Company.฀The฀criteria฀used฀for฀selecting฀directors฀
are฀described฀in฀the฀Company’s฀“Guidelines฀for฀Membership฀
on฀the฀Board฀of฀Directors,”฀included฀as฀Exhibit฀A฀to฀the฀Gov-
ernance฀Guidelines,฀which฀are฀attached฀as฀Annex฀C฀to฀this฀
Proxy฀Statement.฀In฀addition,฀the฀Company฀has฀established฀a฀
formal฀process฀for฀the฀selection฀of฀candidates,฀as฀described฀in฀
the฀Company’s฀“Selection฀Process฀for฀New฀Board฀of฀Directors฀
Candidates”฀included฀as฀Exhibit฀B฀to฀the฀Governance฀Guide-
lines฀which฀are฀attached฀as฀Annex฀D฀to฀this฀Proxy฀Statement,฀
and฀candidates฀are฀evaluated฀based฀on฀their฀background,฀
experience฀and฀other฀relevant฀factors฀as฀described฀in฀the฀
Guidelines฀for฀Membership฀on฀the฀Board฀of฀Directors.฀The฀
Board฀or฀the฀Governance฀Committee฀will฀evaluate฀candidates฀
properly฀proposed฀by฀stockholders฀in฀the฀same฀manner฀as฀all฀
other฀candidates.฀
The฀Governance฀Committee฀has฀established,฀in฀accordance฀
with฀the฀Company’s฀Bylaws฀regarding฀stockholder฀nominees,฀
a฀policy฀that฀it฀will฀consider฀director฀candidates฀recommended฀
by฀stockholders.฀Recommendations฀that฀stockholders฀desire฀to฀
make฀should฀be฀submitted฀between฀October฀16,฀2005฀and฀
November฀15,฀2005฀in฀accordance฀with฀the฀Company’s฀Bylaws฀
and฀“Policy฀and฀Submission฀Procedures฀for฀Stockholder฀Rec-
ommended฀Director฀Candidates”฀included฀as฀Exhibit฀D฀to฀the฀
Governance฀Guidelines,฀which฀are฀posted฀under฀the฀“About฀
Baker฀Hughes”฀section฀of฀the฀Company’s฀website฀at฀www.
bakerhughes.com฀and฀are฀also฀available฀upon฀request฀to:฀
Chairman,฀Governance฀Committee฀of฀the฀Board฀of฀Directors,฀
P.O.฀Box฀4740,฀Houston,฀Texas฀77210-4740,฀or฀to฀the฀Corpo-
rate฀Secretary฀c/o฀Baker฀Hughes฀Incorporated,฀3900฀Essex฀
Lane,฀Suite฀1200,฀Houston,฀Texas฀77027-5177฀and฀should฀be฀
accompanied฀by฀substantially฀the฀same฀types฀of฀information฀as฀
are฀required฀under฀the฀Company’s฀Bylaws฀for฀stockholder฀
nominees.
Each฀of฀the฀current฀nominees฀for฀director฀listed฀under฀the฀
caption฀“Election฀of฀Directors”฀is฀an฀existing฀director฀standing฀
for฀re-election.฀The฀Company฀has฀not฀paid฀any฀fee฀to฀a฀third฀
party฀to฀identify฀or฀evaluate฀or฀to฀assist฀in฀identifying฀or฀evalu-
ating฀such฀nominees.฀In฀connection฀with฀the฀2005฀Annual฀
Meeting,฀the฀Governance฀Committee฀did฀not฀receive฀any฀rec-
ommendation฀for฀a฀nominee฀proposed฀from฀any฀stockholder฀
or฀group฀of฀stockholders.฀
Stockholder฀Communications฀฀
with฀the฀Board฀of฀Directors
The฀Company’s฀Annual฀Meeting฀provides฀an฀opportunity฀
each฀year฀for฀stockholders฀to฀ask฀questions฀of฀or฀otherwise฀
communicate฀directly฀with฀members฀of฀the฀Company’s฀
Board฀of฀Directors฀on฀matters฀relevant฀to฀the฀Company.฀In฀
accordance฀with฀the฀Company’s฀“Annual฀Meeting฀Director฀
Attendance฀Policy,”฀which฀has฀been฀incorporated฀into฀the฀
Governance฀Guidelines,฀all฀directors฀and฀nominees฀for฀elec-
tion฀as฀directors฀are฀requested฀and฀encouraged฀to฀personally฀
attend฀the฀Company’s฀Annual฀Meeting.฀Ten฀of฀the฀Company’s฀
directors฀and฀director฀nominees฀attended฀the฀Company’s฀2004฀
Annual฀Meeting.
In฀order฀to฀provide฀the฀Company’s฀stockholders฀and฀other฀
interested฀parties฀with฀a฀direct฀and฀open฀line฀of฀communica-
tion฀to฀the฀Company’s฀Board฀of฀Directors,฀a฀process฀has฀been฀
established฀for฀communications฀with฀any฀member฀of฀the฀Board฀
of฀Directors,฀including฀the฀Company’s฀Lead฀Director,฀any฀of฀the฀
Chairmen฀of฀the฀Company’s฀Governance฀Committee,฀Audit/
Ethics฀Committee,฀Compensation฀Committee,฀Finance฀Com-
mittee฀or฀with฀the฀non-management฀directors฀as฀a฀group.฀The฀
procedures฀for฀“Stockholder฀Communications฀with฀the฀Board฀
of฀Directors”฀are฀included฀as฀Exhibit฀E฀to฀the฀Governance฀
Guidelines฀and฀can฀be฀accessed฀electronically฀under฀the฀
“About฀Baker฀Hughes”฀section฀of฀the฀Company’s฀website฀
at฀www.bakerhughes.com฀and฀are฀also฀available฀upon฀
request฀to฀the฀Company’s฀Corporate฀Secretary.
Business฀Code฀of฀Conduct
The฀Company฀has฀a฀Business฀Code฀of฀Conduct฀that฀
applies฀to฀all฀officers,฀directors฀and฀employees,฀which฀includes฀
the฀code฀of฀ethics฀for฀the฀Company’s฀principal฀executive฀offi-
cer,฀principal฀financial฀officer,฀principal฀accounting฀officer฀or฀
controller฀and฀all฀other฀persons฀performing฀similar฀functions฀
within฀the฀meaning฀of฀the฀securities฀laws฀and฀regulations.฀In฀
addition,฀each฀of฀such฀officers฀has฀certified฀compliance฀with฀
the฀Company’s฀Business฀Code฀of฀Conduct฀as฀well฀as฀with฀the฀
applicable฀NYSE฀and฀SOX฀provisions.฀The฀Company’s฀Business฀
Code฀of฀Conduct฀and฀Code฀of฀Ethical฀Conduct฀Certification฀
are฀posted฀under฀the฀“About฀Baker฀Hughes”฀section฀of฀the฀
Company’s฀website฀at฀www.bakerhughes.com฀and฀are฀also฀
available฀upon฀request฀to฀the฀Company’s฀Corporate฀Secretary.
8฀฀฀฀Baker฀Hughes฀Incorporated