Annual evaluations and succession planning Board evaluations play a critical role in assessing the effectiveness of our Board. During the annual evaluation process, the Board considers where it believes it functions most effectively and may also identify areas in which directors may make better contributions to the company. The following graphic illustrates core elements of this process: Our Governance Committee leads the evaluation of the Board and the performance of the Independent Chair. Our Independent Chair also speaks to directors individually, and that feedback is later reported to the entire Board. Each committee is responsible for evaluating its own performance and determining objectives for the following year. The Governance Committee establishes objectives for the Board, periodically reviews the Board’s evaluation process and makes enhancements based on the company’s evolving business strategies and risks. The Governance Committee has invested a substantial amount of time considering Board composition as part of the annual self-evaluation process, and they revisit the topic throughout the year. For all C-level roles, the Board reviews and provides input on our succession planning to develop our next generation of leaders, CEO and executive officers. Political engagement Our Public Affairs team builds and maintains working relationships with policymakers and regulators at the federal and state levels of government. We seek to educate elected and appointed officials about the solutions we offer to improve patient safety, reduce the cost and variability of care, and improve the quality and efficiency of healthcare delivery. We outline the public policies that we support on our Public Affairs website . In March 2021, the McKesson Employees’ Political Action Committee (PAC) board of directors approved revisions to its political giving guidelines, strengthening the candidate evaluation criteria and approval process. In addition, the McKesson PAC has established a set of “belief statements” that reflect the values of our employee-led political engagement and approach to political discourse among elected During the annual evaluation process, the Board considers where it believes it functions most effectively and may also identify areas in which directors may make better contributions to the company. Board evaluation process Report to full board Establish objectives Committee self- assessments Independent chair conversations Enhancements Periodic review Introduction Stories Employees Access Equity Climate Operations >Table of Contents | 54 FY21 Impact Report