Talent Management Principles

1. Talent Management Principles As part of our People Strategy, the Your Career Team has put together a statement of principles for use by R&D in support of our Talent Model. Contributions on the stated principles and interpretation of them have been solicited and incorporated from a broad group of individuals on both management and technical career tracks. These principles are agreed to by R&D Leadership. Along with the underlying beliefs and resulting approaches, the principles will be used to help us all make consistent choices on key actions of hiring, developing and moving talent within the R&D organization. These same principles will also support each individual as they make choices to progress their career development and direction within R&D.

2. ACQUIRE Principle Approach/Beliefs • We prefer to hire and develop qualified internal candidates, unless we have a specific capability need to go external. • Positions up through grade 27 are always posted and only filled by other means if no one qualified applies. • Positions of grade 28 and above are filled by RDLT decision. • The next generation of 3P (Product, Process, Packaging) DM’s will have experience as TPM’s and GM’s. (Note: DM’s for some centralized functions, (e.g. Analytical) may take a different path). • We strive for diversity of thought while always meeting technical, interpersonal and leadership criteria. • We develop and maintain a hiring process to acquire employees. Our current process relies on a mix of interns, on-campus recruits, and experienced applicants. • We define a hiring manager for each position who has final ‘D’ for hire decisions. • We believe diversity of style and culture can help lead to diversity of thought, so we are focused to improve both of these through the hiring process. • We will hire ahead of need to meet capability and diversity goals. • We have one integrated talent acquisition and development plan across all R&D sites (GA, IL, BA, NC, CA, MI). • “Glocal” –think Globally, act Locally. We do both selected cross-site moves and local recruiting to meet needs. • We seek to give opportunities to internal candidates whenever possible. We hire talented individuals with demonstrated technical excellence and strong interpersonal and leadership skills.

3. DEVELOP Principle (pg 1 of 2) As an R&D organization, we stay competitive by developing our people. It is our expectation every individual will continue to learn and develop their skills throughout their career and we will invest in it. Approach/Beliefs • Development is a shared responsibility between Clorox and the Individual • We make it a priority and ensure people are developed. Everyone will have a development plan that includes relevant on-the-job and extracurricular training activities. • Individual – must keep yourself relevant by acquiring and developing a skill set for now and future • Individual & Manager – must communicate/plan about what will keep you relevant for your career direction • We believe in coaching and mentoring as an important aspect of learning, and everyone is expected to participate. • Company/manager provides opportunities (time/ resources) for you to develop your skills and career. • We consistently use defined Roles & Responsibilities to guide development and promotion. • Both technical and management ladders require high-level leadership skills (communication/interpersonal). • We use the identified technical leadership skills • Leadership skills for managing groups may differ from technical leadership skills to manage ‘pillars’ or technical areas. • Sr. Scientist is a career position, where Sci I/II are developmental positions. • Sci I/II may apply for higher level scientist positions, and they will be considered if they are qualified. • Time in position alone is not the criteria for/against promotion. Progression from Scientist I to Sr. Scientist is largely dependent on demonstrated development and business results. • All Technician levels (Jr., Sr. and Master) can be career positions. • Master Technician is a position where the incumbent has demonstrated a significantly higher skill level in a defined technical area. • Technicians may apply for scientist positions, and they will be considered if they are qualified.

4. DEVELOP Principle – cont. (pg 2 of 2) As an R&D organization, we stay competitive by developing our people. It is our expectation every individual will continue to learn and develop their skills throughout their career and we will invest in it. Approach/Beliefs – Cont. • Every Technician Ladder position above Technician must be clearly connected to a business need in the organization. • Promotion to higher level positions is driven by the combination of individual skill development and business need. • Every Technical Ladder position above Sr. Scientist must be clearly connected to a business need in the organization. • Promotion to higher level positions can be driven by higher level contributions. • Every Management Ladder position above Sr. Scientist must be clearly connected to a business need through the R&D Organization structure. • Promotion to higher level positions is driven by the combination of individual skill development and business need. • We provide a robust onboarding/transition program for all transfers, promotions, and new hires to help them and Clorox succeed. • All employees will have assignments that broaden their perspective and build their capability for innovation.

5. MANAGE & DEPLOY Principles The right people in the right place at the right time. R&D employees create new products to drive Clorox’s growth. We enable this by providing employees with strategy, structure, and opportunity. Approach/Beliefs • We believe in fair and consistent treatment and develop transparent people processes. • We follow Clorox performance management and pay-for-performance practices and principles. • We balance the need for developing technical depth (length of assignment) with business need to be agile & responsive. • RDLT determines the strategy & structure for the organization, the Manager-level LT drives it’s operation. • We mirror the structure of the SBU’s to align execution with the businesses. • We clearly define and reinforce the Delegation of Authority in order to be consistent. • Functional areas (Prd/Proc/Pkg/Analy/PSRC, etc) identify the need for technical positions to deliver necessary capabilities. • Management exists to promote the success of our employees. • Employees create the ideas that are true value of R&D. • RDLT’s role is to create an efficient structure, management’s role is to provide opportunities, resources, and remove barriers. • We value both broad cross-functional experience and deep technical competence equally, and we provide career paths and opportunities for both. • We manage, develop and deploy deeper functional capability through technical Communities of Practices. • We anticipate and plan for the future by linking people’s development plans to long term capability requirements. • Everyone deserves a great manager. • We recognize that different skills are required to be a great manager than to be a technical leader. • It takes a great amount of training, coaching and developing over time to become a great manager. • We look for opportunities to develop “People Manager” skills through coaching before we start to manage people. • People managers collaborate/rely with our technical leaders to provide technical excellence.

6. Q&A Page 1 of 6 Acquire Principles • Why did you say, “We strive for diversity of thought while always meeting technical and leadership criteria. Does this conflict with Clorox’s culture?We had a lot of discussion on this; everyone in R&D will have strong technical and leadership skills. These skills are required to be successful in our organization in every R&D function. Looking forward, we must become more diverse in how we approach and solve problems, so we strive for greater diversity of thought. • Do we acquire differently for the technical ladder than for the management ladder?In principle, we acquire in a similar manner across R&D; our people have a strong mix of both technical and leadership skills. At entry level we are hiring to feed both the technical and management ladders, so short-term our new hires must have the potential to be successful in both independent of which ladder they choose to pursue. • Where do people enter the organization; are there defined entry points?People can enter the organization in all functions and levels. Entry points are matched to the candidate’s skills and potential as well as to the business and organizational needs. • How do we rate external experience versus on-the-job training? This is certainly a challenge, as we consider all relevant experience to be valuable. Internal experience is highly relevant to the work we do today, and we give priority to internal candidates for all jobs. External candidates can help us drive diversity of thought, as well as bring internally underdeveloped and needed skills into Clorox . Further, as we hire experienced candidates, we must match the experience/skills to the immediate entry point. Generally we will take this on a case-by-case basis. • On-campus Interviewers have invited diverse style and thought candidates for on-site interviews with poor success – what tactics are required to shift the organization?We must further educate ourselves and the hiring manager as to the importance of diversity. At times, the hiring manager should over-rule the interviewing group in order to acquire candidates who bring diversity of style to our organization and who can also be successful in our culture. • How does our current recruiting process and focus fit into the principles?Part of our principles is to always have a defined recruiting process. Currently, we have a process in our Process & Packaging Development communities that focuses on certain campuses, degrees and the intern program. We also have a PhD recruiting process, and each Director can hire experienced hires directly. These processes are really tactics, not principles, and will evolve over time. • How do you define a technical specialist vs. a generalist? Entry level generalist have excellent technical capabilities (defined by degree & major) to deliver the three “P’s”. We rely heavily, but not exclusively on BS Chem E, BS Mech E, Pkg Sci, and PhD Chem from identified core schools. Technical specialists may enter at various levels in the organization, and have a background that matches the business requirements of the position and role they are entering. • How do you think about the importance of technical specialists vs. generalists? There is a need for both roles in our organization, and we need the appropriate mix of specialist and generalists to be successful. The mix will change over time as business strategies change and evolve. • How do we ensure we are equitable to those who are trained internally?We must pay the market price for talent acquired externally, however we must also ensure our internal talent is compensated adequately versus those who are recently hired. This is driven by our pay-for-performance principle and the responsibility of our people managers and HR. If you have specific questions please follow up with your manager or HR. • Are talent needs the same across the organization? How can we become more global in our hiring approach?Currently, needs vary by location and recruiting is led locally due to local markets, relocation policies and specific needs by location. For example language skills, type of work, cost of relocation, and cost of local talent are all important factors. • Can the relocation policy be expanded to allow moves without relocation dollars?It feels unfair to pay for relocation of some individuals and not others, however sometimes we don’t have the financial flexibility to provide a relocation plan with every position. On the other hand, we don’t think it’s appropriate not to allow individuals to relocate for a position if they are qualified in other ways. It may require up front disclosure regarding which relocation opportunities include company benefits.

7. Q&A Page 2 of 6 AcquirePrinciples – cont. • If I’m already an experienced GM and have been told I meet the requirements for DM, do I now need a rotation as a TPM to be considered for promotion?As in all cases, past equivalent experience, as well as formal roles, will be considered for meeting the criteria. Since we’ve recently moved to the new organizational model, there also will be a transition period where candidates over the next couple of years will not have the ability to formally meet this requirement, so there may be some exceptions made. Longer term, we intend to follow this principle closely. Develop Principles • I’m excited about the Develop Principle, but are we really ready to invest in training?We are creating a learning based innovation organization, and training will definitely be a part of our success. Everyone should work with their manager to determine a training plan and set a goal to assure at least 1 rich development experience each year to build their skills. • Does development stop when you reach your career position?Development does not stop when you reach your career position. Even those folks considered expert in their field or at the highest management levels are expected to continue to learn and develop. Everyone is expected to have an IDP. • Everyone should have a meaningful IDP. Do they?Everyone should have an IDP and managers will be responsible to insure everyone does, but that is not enough. You can have a huge impact on your own career development by ensuring you have an IDP that meets your own needs. If you struggle with your career development, we will commit resources to help. • How does mentoring fit in?Mentoring relationships aretypically driven by those individuals interested in having a mentor, however, they can also be suggested by your manager. Either way, all employees are encouraged to find a mentor, as these relationships can be a significant source to help your personal development and can be included on your Individual Development Plan. • How do you feel about forcing greater rotation across sites, including the GO, Plants, and other R&D sites. I feel like people have trouble envisioning a long-term career at the CTC and would be more engaged and diverse if they had greater rotational experience.While we believe all experience is valuable and therefore encourage it, we do not support forced rotations across sites at this time; however, we support moves between sites if there is a desire and business need. • How will I find time to fit in my development goals? Am I expected to “squeeze it in” to an already busy schedule? We understand that finding the time is often a critical issue; however to create a successful learning culture, we also know that everyone must make the commitment to do so. We must keep tight control on the scope of project efforts to allow sufficient training time, and we all must prioritize our development goals in order to learn and grow. • Do we use a temp-to-hire model, and if so, where.It is often used in situations where there are large amounts of local talent. We have used this model successfully to hire high-caliber technicians and administrative assistants. • I think continued development in the sophistication of the pillars is critical for scientist development. It provides ownership and leadership opportunities for our junior staff who lost some opportunities through the reorganization. How do you see the pillars? We agreecontinued development of the pillars is important. The pillars provide us the opportunity to illustrate desired behavior, capabilities and results for all of our technical contributors.We are expanding the Pillar Model through Process, Packaging and Product pillars and Communities of Practice. These organizational structures create opportunities to develop both technical expertise and leadership skills. • How will the Pillar structure help advance my career? The Pillars are a cross-division structure that build both functional technical capability as well as provide opportunities for technical career development. Process and Packaging have this structure in place and are still evolving; Product is under development. • The principles seem to suggest the skills of managers and technical leaders are the same. Aren’t they really different?The point of the principle is that both management and technical ladder success requires leadership skills (communication/interpersonal) and to be successful on either ladder, you’ll need these. The real difference between the two is the need for stronger managerial skills vs. the need for deeper technical skills. • What are the Technical Leadership Behaviors?Vision, Foundation, Direction, Collaboration, & Delivery. (See next pg with TL Behaviors and supporting commentary)

8. Visionary Forward-thinking Identifies trends and champions new opportunities Has instinctive sense of direction through a landscape of ambiguity Inexhaustibly passionate about their technical field Tenacious, courageously drives through technical and experimental difficulties Builds personal technical excellence and credibility; has the curiosity to ask “why not” as well as “why” Looks both inside and outside the organization and brings knowledge together to create business opportunities Sets direction with sound judgment, influence and skilled persuasion based on data and knowledge Translates ambiguities into actionable plans Drives innovation and establishes and leads best practices Embodies a paradoxical mix of personal humility and professional will Unselfishly engages others to create synergy Openly accepts and encourages mentoring of others Motivates by example, both word and deed Recognizes and celebrates technical successes of others Blends technical and business acumen to drive business results Takes accountability for achieving technical conclusions that enable clearly defined business decisions Appreciates the forces of many business disciplines and how they combine Translates consumer/business needs into technical criteria, technical judgment into business results Technical Leadership Behaviors Page 3 of 6The Technical Ladder begins with Leadership Vision Foundation Direction Collaboration Delivery

9. Q&APage 4 of 6 Develop Principles – cont. • Can you better define what is meant by ‘business need’ for promotions to Grade 27 and above?The ‘businesses need’ refers to the innovation, development, and maintenance needs of The Clorox Company. R&D develops a structure and strategy to deliver against those needs. On the management ladder, the business need for managers is directly defined through the R&D organizational structure. On the technical ladder, the business need is for technical results and the positions available for higher-level contributors can be driven by R&D organizational structure, but also by the demonstrated capabilities of the contributor. • Is a ‘business need’ necessary to move from 24 to 25 and to 26?Yes, in all but a few well-defined specialist Grade 24/25 positions, the business need is to have Sr. Scientists. Our approach has been to hire (mostly) junior level scientists and develop them to Sr. Scientist. Since the business need is well established, the focus is on the individuals skills development and demonstrated results. • Can you clarify the principle or approach for development on the technical ladder?Above Sr. Scientist, continued development on the technical ladder is driven by a combination of business need and demonstrated value. In some cases the business may state a need for higher-level positions and an internal candidate with those skills may apply. We also believe technical contributors can demonstrate the value of increased technical skills through their contributions, thereby creating higher-level positions for themselves. R&D management agrees to the promotion as the higher level skills help us deliver needed business results. • Is R&D and up-or-out organization or does the open time frame to obtain Senior Scientist mean that Scientist I/II are de-facto career positions? Businesses would generally prefer senior scientists over junior scientists; however, if we don’t develop senior scientists internally we will not have sufficient resources to accomplish our work. Therefore, our approach is to have a model where we develop much of our talent for the Senior Scientist position. In turn, this means we must hire Scientist I & II’s with the expectation that they can develop to Senior Scientist in a reasonable time period. Since development to senior scientist will depend on a number of factors and can take longer for some folks, we want to allow sufficient time for those with potential. • Can Technicians really post for Scientist positions?Yes, Technicians can post and if they are qualified they will be accepted for the position. In all cases, Scientist I & II’s are expected to develop to Senior Scientist in a reasonable time period. Manage / Deploy Principles • How do we prepare Senior Scientists to become Group Mangers? Shouldn’t those Senior Scientists have opportunity to manage people before getting promoted? Someone with direct reports is considered a manager. In our work structure, the lowest level people manager is a group manager. To prepare individuals for this role, opportunities will be given to mentor and coach (e.g. interns, peer mentoring/coaching, or lower grade level mentoring/coaching, etc.) as well as managerial opportunities (e.g. projects, events, budgets, etc.). When the necessary skills are developed, they will be considered qualified for group manager roles. • How do we prepare Senior Scientists to become TPMs? Shouldn’t those Senior Scientists have opportunity to manage technical project teams before getting promoted? To prepare individuals for the TPM role, opportunities will be given to mentor and coach (e.g. interns, peer mentoring/coaching, or lower grade level mentoring/coaching, etc.) as well as opportunities to manage functional timelines and projects (e.g. Brand Maintenance projects, small Cost Savings projects, Discovery projects, etc.). When the necessary skills are developed, they will be considered qualified for TPM roles. • I think we're going to increasingly run into issues with a high level of attrition at the 26 and 27 level. I believe this is going to get worse over time with our current model.A high level of attrition at any grade level will seriously impact our model. However, attrition is due to both internal and external factors. While we cannot control the external factors, internal factors are under our control. Our chief means of reducing attrition is to drive high engagement by providing interesting work, providing opportunities for personal and career development, empowering people to make decisions, and providing solid and timely guidance and support. • If Sr. Sci is a career level, why isn’t this position eligible for long-term incentives (LTI)?We follow the Clorox performance management and pay-for-performance principles and policies in R&D. The compensation system is developed at the corporate level based on industry benchmarking and managed equitably across the entire company.

10. Q&APage 5 of 6 Manage/Deploy Principles – cont. • How do you decide on the right ratio of specialists vs. generalists and how to develop solid career opportunities for both.There is no ‘magic’ ratio. The right mix is dependent on current business opportunities and project pipelines on-going. The mix will change over time and ultimately the business and/or sub-function will staff per their needs over time. • Sr. Scientist is the career position, where Sci I/II are developmental positions. Should we specifically call out that lack of demonstrated development for a Sci I/II means termination at Clorox?To be effective at any job, you must fulfill the requirements of the position. It is expected of a Sci I/II to develop to the next level. On the other hand, we recognize that different individuals may grow and learn at different rates. At any level, lack of a demonstrated skill over time or the inability to learn a required skill in a reasonable time could lead to termination. • Shouldn’t you say 'Every position (Technical and Managerial) above Sr. Scientist must be clearly connected to business need in the organization.' We don't want to imply that the principles are different for the different ladders.The number and level of management positions are defined by the organizational structure and business need. Managers that develop higher level skills must wait for an open position before they can be promoted. On the technical ladder the situation is slightly different. While some technical positions are also defined by the organization, technical contributors that demonstrate higher level skills and results can qualify for a promotion. • Why specify two year assignments?We believe two years provides the right balance to optimize individual developmental growth and business efficiency. If we rotate people too frequently, the organization will not have sufficient stability to be efficient, and the individual will not have enough time to grow and develop new skills. If we rotate people too infrequently, the organization and the individual will stagnate. • I think we do a good job of acquiring diverse thought and style, but we’ve struggle to retain some of these folks. Shouldn’t we have more focus on retention?Retention is critical to us. One of the reasons we want to be clear about our principles on Talent Management is to encourage individuals to continue to learn and develop throughout their career. Clorox will invest in individual development, hopefully while leveraging each individual’s unique thoughts and style. By clarifying our principles, we can better enable retention, acquisition, and engagement for all. • What about TPM's? Have we essentially created a new ladder? If not, then how does the TPM role fit into these principles?No, the TPM is a specific role in our organization within the management ladder. There are increasing levels of capacity and competency called out with differing grade level. It is not viewed as a separate ladder. • Is TPM simply a developmental role for the managerial ladder; why you need to have TPM experience to become a department manager?The TPM role is critical to the new R&D organizational model and can be a career level position. It is also a developmental role for future department managers, since integration of the 3-P’s and other R&D functions is considered a necessary skill. • What about ladder cross-over? If we have been developing people over-time for a specific ladder, is it even feasible to have cross-over?Someone with the appropriate skills can cross from the technical ladder to the managerial ladder and vice versa. To ensure the integrity of both ladders, only successful technical leaders and managers can be moved. • What is the experience required to be a TPM? Can an ARF apply for this role? Yes. Ideally deep experience in one of the 3 P’s and knowledge of the other 2 P’s is required. However, closely related technical experience outside the 3 P’s and successful demonstration of technical project management skills could also qualify an individual to be a TPM.

11. Q&APage 6 of 6 Manage/Deploy Principles – cont. • What about the desires of the individual? How do we take into account the career aspirations of the individual?Each individual will work with their manager to discuss their aspirations and how to develop appropriate capabilities and skills. Your manager will be able to help you with career direction through coaching, on-the-job experiences and on occasion, Talent Brokering. Our intent is to set individuals up for success by finding the closest match between business need and individual capabilities and skills. The individual always has the opportunity and responsibility to pursue their aspirations through open posting. • These principles are very Clorox-need centric, aren’t they? The intent in articulating and publishing the principles was to give every employee an equal understanding of how and why we operate as we do. Building this common understanding should empower us as individuals and help R&D be more successful. • Are there 'unwritten' principles we will continue to use? Should we take this opportunity to make them written? (For example, the individual needs to be operating at higher level prior to consideration for promotion to that level.)Our principles should not change (and they are captured here); however we recognize our approach or operational tactics may need to change over time. As our environmental conditions change or we uncover new approaches (for example, open posting), we will attempt to update our statement of approach/beliefs to keep current. • How will we ensure these principles are being followed?The principles are fairly straight forward, but individual decisions will always require a level of judgment. If you feel a principle is not being followed, or that R&D management is not being consistent in their approach to a situation, please feel free to speak with your manager, your RDLT member, or Wayne.