Hasbro Investors

Investors

Finance Committee Charter

The primary purpose of the Finance Committee (the "Committee") of Hasbro, Inc. (the "Company") is to assist the Board of Directors (the "Board") in overseeing the Company's (i) annual and long-term financial plans, (ii) capital structure, (iii) use of funds, (iv) investments, (v) financial and risk management and (vi) proposed significant transactions.

In discharging its oversight role, the Committee is empowered to investigate any matter with full access to all books, records, facilities and personnel of the Company and the power to retain outside counsel, auditors or other experts for this purpose.

The Committee shall review and reassess the adequacy of this Charter on an annual basis.

The Committee shall be comprised of not less than three members of the Board. The Committee's composition will meet any applicable legal or other requirements. In addition, at least a majority of the members of the Committee will be independent as defined under the Company's Standards for Director Independence and the requirements for independence under The NASDAQ Stock Market's corporate governance listing standards. Accordingly, at least a majority of the members of the Committee will be directors:

  1. Who have no relationship to the Company that would interfere with the exercise of their independence from management and the Company; and
  2. Who do not receive, directly or indirectly, any consulting, advisory or other compensatory fees from the Company or any of its affiliates other than board fees and fees related to service on the Committee or on other committees of the Board.

Committee members shall be appointed and removed by the Board, which shall designate the Committee Chair, who shall preside over meetings of the Committee. A majority of the members of the Committee shall constitute a quorum for doing business. All actions of the Committee shall be taken by a majority vote of the members of the Committee present at the meeting, provided a quorum is present.

The Committee shall hold regularly scheduled meetings and such special meetings as circumstances dictate. To the extent the Committee believes it to be appropriate or advisable, it shall meet in executive session, without management present. Action may be taken by the Committee without a meeting if all of the members of the Committee indicate their approval thereof in writing. The Committee shall report regularly to the Board.

The Committee's job is one of oversight and each member of the Committee shall be entitled to rely on (i) the integrity of those persons and organizations within and outside the Company that it receives information from and (ii) the accuracy of the financial and other information provided to the Committee by such persons or organizations absent actual knowledge to the contrary (which shall be promptly reported to the Board). The Committee has the authority to retain legal, accounting or other experts that it determines to be necessary to carry out its duties. It also has authority to determine compensation for such advisors.

The following functions shall be the common recurring activities of the Committee in carrying out its oversight function. These functions are set forth as a guide with the understanding that the Committee may diverge from this guide as appropriate, and as allowed by applicable legal and other requirements, given the circumstances.

Review of Annual and Long-Term Financial Plans

  • The Committee shall review and discuss with management the Company's annual and long-term business and financial plans, including the financial impacts of these plans; and
  • As part of its review of the Company's annual and long-term business and financial plans, the Committee will report to the Board concerning its review of such plans and the financial and business assumptions underlying the Company's financial projections and budgets.

Review of Capital Structure and Use of Funds

  • The Committee shall review and discuss with management the Company's capital structure, including appropriate debt levels for the Company;
  • The Committee shall review and discuss with management the Company's short and long-term financing plans, including all debt and equity financing and the use of securitization facilities;
  • The Committee shall review and discuss with management the Company's use of available funds, including, without limitation, for investment in the business, capital investments, stock repurchases, dividends, or acquisitions; and
  • The Committee shall review and discuss with management the Company's international tax planning and cash repatriation strategies.

Review of Investments

  • The Committee shall review and discuss with management the Company's investment of its cash and cash equivalents and the performance of these investments;
  • The Committee shall periodically review funding levels for the Company's pension, 401(k), deferred compensation and other benefit plans; and
  • The Committee shall review the investments and the investment performance of assets within the Company's benefit plans, including, without limitation, pension, 401(k), deferred compensation and other retirement plans.

Review of Financial and Risk Management

  • The Committee shall, in conjunction with the Company's Audit Committee, review and discuss with management the Company's financial risk management activities and strategies, including with respect to foreign currency, credit risk and interest rate exposure, and use of hedging and other techniques to manage these risks.

Review of Transactions

  • The Committee shall review and make recommendations to the Board concerning any proposed transactions which require Board approval and which the Board deems appropriate for Committee review, including, without limitation, licensing arrangements, capital expenditures and acquisitions or divestitures, to the extent any such arrangements or transactions involve commitments over $25 million.

Reporting to the Board

  • The Committee shall report its actions to the Board on a regular basis and, as part of this reporting, will discuss with the Board those matters reviewed by the Committee, and will make recommendations to the Board on such matters, as the Board and the Committee shall deem appropriate.

The Committee shall also perform any other activities consistent with the Articles of Incorporation and By-laws of the Company, and other governing laws, as the Board or the Committee shall deem appropriate.



Committee Members

Chair Kenneth A. Bronfin
X
Kenneth A. Bronfin
Senior Managing Director

Age: 54

 

Kenneth A. Bronfin is Senior Managing Director of Hearst Ventures (the strategic investment arm of diversified media company Hearst Corporation), serving in this role since 2013. Prior thereto, he was President of Hearst Interactive Media since 2002. Prior thereto, he was Deputy Group Head of Hearst Interactive Media since 1996. From 2002 until 2006, Mr. Bronfin served on the Board of iVillage Inc. Mr. Bronfin has been a director of the Company since 2008.

 

The Board has nominated Mr. Bronfin for election as a director because of his extensive expertise and experience in operational and executive roles in the media and digital services sectors. Mr. Bronfin’s experience includes serving in a number of executive positions where he was in charge of leading interactive media and digital businesses and where he led new business ventures, strategic investments and acquisitions in the digital content and media sectors. Mr. Bronfin also has experience serving on a number of private and public company boards of directors. The Board believes Mr. Bronfin possesses particular knowledge, expertise and experience in the media and digital services businesses, including international media; advertising and marketing, and consumer trends in media and digital technology; as well as expertise in strategic planning and corporate finance.

Committee Member Michael Burns
X
Michael Burns
Vice Chairman
Lionsgate

Age: 56

Michael Burns is Vice Chairman of Lionsgate, serving in this role since 2000. Along with Lionsgate CEO Jon Feltheimer, Mr. Burns has built Lionsgate into a multibillion dollar global content leader with a major presence in motion picture production and distribution, television programming and syndication, home entertainment, channel platforms and digital distribution. During Mr. Burns’ tenure, Lionsgate has evolved from a small independent studio into a diversified global corporation with a market capitalization of nearly $5 billion, and the Company’s revenue has increased 15 times over since 2000. Prior to joining Lionsgate, Mr. Burns served for nine years as managing director and head of Prudential Securities’ Los Angeles investment banking office and specialized in raising equity within the media and entertainment industry. Prior to joining Prudential, he spent nine years at Shearson/American Express (now Morgan Stanley) in New York and Los Angeles.

Committee Member Alan G. Hassenfeld
X
Alan G. Hassenfeld
Retired Chairman and CEO

Age: 65

 

Alan G. Hassenfeld served as Chairman of the Board of Hasbro, Inc. from 1989 to 2008. Prior to May 2003, Mr. Hassenfeld served as Chairman of the Board and Chief Executive Officer of Hasbro since 1999. Prior thereto, he was Chairman of the Board, President and Chief Executive Officer of Hasbro since 1989. Mr. Hassenfeld serves on the Board of salesforce.com, inc. and served on the Board of Global Cornerstone Holdings Ltd. from 2011 until 2013. Mr. Hassenfeld is also co-chairman of the Governing Body of the International Council of Toy Industries CARE Process. Mr. Hassenfeld has been a director of the Company since 1978.

 

The Board has nominated Mr. Hassenfeld for election as a director because of his more than 40 years of experience in the toy, game and family entertainment industry, including his extensive service in senior leadership roles at Hasbro, culminating in his service as the Company’s Chairman of the Board and Chief Executive Officer. Throughout his career at Hasbro, Mr. Hassenfeld held a number of positions of increasing responsibility in marketing and sales for the Company’s domestic and international operations, including responsibilities overseeing global markets. He became Vice President of International Operations in 1972 and later served as Vice President of Marketing and Sales and then as Executive Vice President, prior to being named President of the Company in 1984 and President and Chief Executive Officer in 1989. The Board believes Mr. Hassenfeld possesses particular knowledge, expertise and experience regarding strategic and operational planning and execution in the toy, game and family entertainment industries; expertise in industry trends and challenges, global markets, and international business operations; expertise in issues of corporate social responsibility and sustainability; and experience in the competitive and financial positioning of the Company and its business.

Committee Member Richard S. Stoddart
X
Richard S. Stoddart
Chief Executive Officer

Age: 51

 

Richard S. Stoddart is the Chief Executive Officer of Leo Burnett North America, serving in his role since 2013. Mr. Stoddart served as President of Leo Burnett North America from 2005 to 2013. Prior thereto, he was Manager of Marketing Communications of Ford Motor Company from 2001 to 2005. Mr. Stoddart has been a director of the Company since March 2014.

 

The Board appointed Mr. Stoddart in March 2014 and has nominated Mr. Stoddart for re-election as a director at the Annual Meeting because of his extensive experience in the advertising, marketing and communications industries, including in television, digital and social media and in print. As the Chief Executive Officer of one of the largest advertising agencies in North America, Mr. Stoddart is recognized for his leadership in the development and integration of shopper, digital, social and mobile capabilities as part of a company’s overall marketing and brand strategy. The Board believes Mr. Stoddart possesses particular knowledge, expertise and perspectives regarding branding and brand building, marketing strategy and marketing communications, including in traditional advertising, digital advertising and social media; expertise in media planning, launching branded content and products; and expertise in media trends and strategic planning.