Mutuelle Animalière 2019 – DEF 14A Zoetis Inc. Forme: 15 mai

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ÉTATS-UNIS

SECURITES ET COMITE

Washington, D.C. 20549

14A

Déclaration de procuration A.

1934 Securities Exchange Act

(Amendement
Non. )

la
inscription
Soumis par une partie autre que la personne inscrite

Sélectionnez le champ approprié:

Déclaration de procuration préliminaire
Confidentiel, exclusivement à l'usage de la Commission (conformément à l'article 14 bis-6 e) (2))
Déclaration de procuration finale
Matériaux complémentaires finaux
Demande de matériel Le 240.14a-12

Zoetis Inc.

(Nom du déclarant tel que défini dans la Charte)

(Nom (s) de la (des) personne (s) pour l'envoi de la procuration, s'il ne s'agit pas du déclarant)

Paiement de la taxe de notification (cochez la case appropriée):

Aucun frais requis.
Les frais calculés dans le tableau suivant sont conformes à la loi sur les échanges. 14a-6 (i) (4) et 0-11.
(1)

L'adresse de chaque catégorie de titres à laquelle l'opération s'applique:

(2)

Titres de transaction cumulatifs:

(3)

Valeur unitaire ou autre valeur sous-jacente de la transaction calculée sur la base de la loi fondamentale Règle 0-11 (kit
le montant de la taxe de notification est calculé et comment il a été déterminé):

(4)

Valeur de transaction maximale suggérée:

(5)

Total des frais payés:

Prépaiement des primes avec le matériel préliminaire.
Cochez la case si vous payez une partie des frais conformément à la Loi sur l'échange. 0-11 (a) (2) et identifier la demande pour laquelle la compensation a été payée dans le passé. Identifier le
numéro d'enregistrement, formulaire ou calendrier précédent et date de dépôt de la demande.
(1)

Montant déjà payé:

(2)

Formulaire, calendrier ou numéro d'enregistrement:

(3)

Partie déclarante:

(4)

Date de l'annonce:


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LOGO


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Zoetis Inc.

10 façon Sylvan

Parsippany, NJ 07054

LOGO

DÉCLARATION ANNUELLE DE 2019

QUAND

Mercredi 15 mai 2019

10h00 heure avancée de l'Est

Hilton Short Hills

41 promenade John F. Kennedy

Short Hills, New Jersey 07078

ENREGISTREMENT le DATE

Fermeture d'entreprise le 21 mars 2019

ARTICLES D'AFFAIRES

1. Le III. Election des administrateurs de classe jusqu'à l'assemblée annuelle de 2022
Les actionnaires sont nommés pour une période de trois ans, comme indiqué dans la déclaration autorisée

2. Le conseiller vote pour approuver la rémunération de la société (dit
paiement)

3. Renforcer l'indépendance de KPMG LLP
société de marchés publics enregistrée d'ici 2019

4. Autres questions pouvant normalement se produire à la réunion annuelle des Nations Unies
actionnaires

COMMENT C’EST NÉCESSAIRE

Au moment de l’inscription, les actionnaires inscrits peuvent voter comme suit:

LOGO

LOGO

LOGO

LOGO

Appeler le 1 (800) 652-8683

(gratuit) a

États-Unis et Canada

visite

www.investorvote.com/zts

Retourner correctement

complété, signé et

carte proxy avec date

Participer à l'assemblée générale annuelle

personnellement

et votez pour vos actions

sincèrement,

LOGO

Heidi C Chen

Vice-président exécutif,

Procureur général et secrétaire général

2 avril 2019

AVIS IMPORTANT SUR LE CONTACT DE MATÉRIAUX DE PROCURATION POUR LES 2019 ANNÉES SUIVANTES:

Déclaration de procuration de Zoetis Inc. et rapport annuel sur le formulaire K-10 pour l'année se terminant le 31 décembre 2018
disponible sur www.edocumentview.com/ZTS. Nous fournissons des documents de procuration à nos actionnaires principalement par le biais de "Warning and Access". 2 avril 2019, ou env. ca.
disponibilité de documents de procuration. Cet avis contient des instructions pour accéder à la déclaration de procuration et au rapport 2018 et au vote en ligne.


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SOMMAIRE DU PROCURATION

Ce résumé met en évidence certaines informations dans ce proxy
déclaration. Avant de voter, veuillez consulter l'intégralité de la déclaration de procuration de Zoetis Inc. ainsi que le rapport annuel 2018.

2019. SESSION ANNUELLE

Heure et date

Le mercredi 15 mai 2019 à 10h00 HAE

lieu

Hilton Short Hills

41 promenade John F. Kennedy

Short Hills, New Jersey 07078

Date d'enregistrement

Affaires le 21 mars
2019

vote

Record record actionnaires
a droit à un vote par action dans chaque cas voté à l'assemblée annuelle.

entrée

Aucun billet requis
assister à l’assemblée, mais nous limitons la participation des actionnaires au record record ou à leur mandataire. Veuillez confirmer votre propriété commune, telle qu'une déclaration d'agent en cours et une pièce d'identité avec photo.

VALEURS COMMERCIALES 2018

En 2018, notre équipe de direction a de nouveau réalisé une solide performance basée sur les trois capacités interconnectées.
nos succès depuis l'acquisition de la société d'utilité publique: relations directes avec les clients, recherche et développement innovants, fabrication et approvisionnement de haute qualité. Nous avons continué à enchérir davantage, à augmenter nos revenus plus rapidement que le marché et
nous augmentons notre bénéfice net ajusté plus rapidement que les revenus; se concentre sur les principales opportunités d’investissement pour la croissance; et restituer le capital excédentaire à nos actionnaires.

LOGO

1

Augmentation du résultat d’exploitation (a Non conformes aux PCGR mesure financière) est considéré comme un revenu
sauf pour l'effet de la monnaie. Page 44 de notre rapport annuel 2018 10-K, ceci est contenu dans la SEC déposée le 14 février 2019
Non conformes aux PCGR états financiers pour les résultats GAAP 2018 publiés.

2

Résultat net ajusté et BPA dilué ajusté (Non conformes aux PCGR mesures financières)
tels que définis par le résultat net de Zoetis et le résultat dilué par action déduit, à l’exception des ajustements comptables, des coûts d’acquisition et de certains éléments importants. Notre rapport annuel 2018 46–51. côtés 10-K, Les documents soumis à la SEC le 14 février 2019 comprennent un rapprochement Non conformes aux PCGR mesures financières pour les résultats de 2018 GAAP rapportés.

ZOETIS 2019 DECLARATION DE PROCURATION 1


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SOMMAIRE DU PROCURATION

SUPPORT CONSULTATIF

Lot 1

CHOIX DE LA DIRECTIVE

Vous êtes invités à choisir 4 administrateurs – Juan Ramón Alaix, Paul
M. Bisaro, Frank A. d'Amelio et Michael B. McCallister – jusqu'à l'Assemblée générale annuelle de 2022 et jusqu'à ce que leurs successeurs soient correctement élus et qualifiés, ou jusqu'à leur décès, démission ou démission précédent
l'enlèvement.

INFORMATIONS SOMMAIRES SUR LES NOMINÉS ET LES DIRIGEANTS SUIVANTS DE LA SOCIÉTÉ

Pour plus d'informations sur nos administrateurs, voir «Informations sur les administrateurs» à la page 5-11. Page.

Juan

Ramón

Alaix

Paul M.
Bísaro

Frank A.
D & # 39; Amelio

Sanjay

Khosla

Michael B.

McCallister

Gregory

Norden

Louise M.

mère

Willie M.

roseau

Linda

Rhodes

Robert W.
Scully

William C.
Steere, Jr.

Expérience, compétences, expertise

Academia

la santé animale

Produits de consommation

Entreprises mondiales

sciences de la vie

Fabrication et fourniture

Ventes marketing

Fusions et Acquisitions

Membre du conseil d'administration de l'autre assemblée générale

Directeur Général

Chef de la direction financière;
ou finance et comptabilité

Société GC;
Conformité ou gouvernance d'entreprise

Industries réglementées

Recherche et développement

Contexte démographique

Mandat du conseil

Années complètes

6

3

6

5

6

6

5

5

1

5

6

Âge (2 avril 2019)

annuel

67

58

61

67

66

61

68

64

69

69

82

pas

homme

M

M

M

M

M

M

M

M

M

femelle

fa

fa

LGBTQ (rapport facultatif)

Identifier comme LGBTQ

Compétition * (rapport optionnel)

Noir ou afro-américain

Indien d'Amérique ou natif d'Alaska

asiatique

blanc

Hawaïen ou autre insulaire du Pacifique

autre

Il ne voulait pas identifier

Ethnicité * (rapport facultatif)

Espagnol ou latin

Pas espagnol ou latin

Il ne voulait pas identifier

LOGO

Premier candidat

LOGO

Directeur continu * Basé sur le nom du Bureau du recensement des États-Unis

.

POINT 1 RECOMMANDATION: Le conseil d’administration propose de VOTE
la Il a été choisi par un homme. ALAIX, MR. BISARO, MR. AMELIO ET MR. McCallister.

2 ZOETIS 2019 DECLARATION DE PROCURATION


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SOMMAIRE DU PROCURATION

Lot 2

VOTE CONSULTATIF POUR LE CONTRÔLE DES DÉPENSES ADMINISTRATIVES

Vous devez approuver notre programme de rémunération des membres de la haute direction à titre consultatif.
Analyse de la rémunération, ainsi que des tableaux de rémunération d’exécution et de la divulgation narrative accompagnante, tels que décrits dans la déclaration de procuration 22-55. Nous croyons que notre programme encourage et récompense
Leadership visant à accroître la valeur pour les actionnaires et à aligner les intérêts de nos gestionnaires sur ceux de nos actionnaires sur une base annuelle et à long terme.

Mesures de compensation du comité de compensation 2018
comprend:

Moment de l’augmentation annuelle du salaire de base. Le Comité a approuvé la date d'entrée en vigueur de l'augmentation du traitement de base 2018 du 1er avril 2018 au 1er janvier 2018,
simplifier le processus de rémunération et les annonces et publications associées, en commençant par les informations fournies dans la déclaration de procuration de 2019. Le PDG n'a pas reçu de salaire de base en 2018 et cela ne l'a pas affecté
changer.

Exigence du chef de la direction pour la propriété. Le comité examine annuellement les besoins en capitaux propres des membres de la haute direction visés, y compris le chef de la direction, chacun étant multiple.
le salaire de base du dirigeant pour inciter les membres de la haute direction visés à conserver une participation et un maintien importants dans l'entreprise. En 2018, le comité a relevé l'exigence du chef de la direction de cinq à six fois afin de mieux correspondre
la pratique rapportée par beaucoup de nos équipes de compensation.

Groupe de rémunération. Dans le cadre de son examen annuel du groupe d'experts en rémunération, le comité a apporté des modifications au groupe d'experts pour 2019 afin de garantir d'innombrables changements.
un bon équilibre entre les entreprises et les industries des produits pharmaceutiques, de la biotechnologie, des sciences de la vie et des soins de santé, dont la taille et la portée ressemblent beaucoup plus à celles de Zoetis. La Commission utilisera le groupe d'experts révisé en 2007. T.
2019 prenant une décision de compensation.

RECOMMANDATION 2: RECOMMANDE D’UTILISER LES DIRECTIVES la APPROBATION DE SÉLECTION
COMPENSATION.

Lot 3

DÉTAILS DU RAPPORT DE COMPTE PUBLIC ACCESSIBLE DE KPMG LLP

Ils sont invités à ratifier la nomination de KPMG LLP par le comité d'audit.
KPMG est un auditeur indépendant depuis 2011.

Les frais payés à KPMG se trouvent à la page 57.

Un ou plusieurs représentants de KPMG seront présents à la réunion annuelle de 2019. Ils leur donneront
ils ont la possibilité de faire une déclaration s'ils le souhaitent et sont disponibles pour répondre aux questions appropriées.

ARTICLE 3 RECOMMANDATION AUX DIRECTIVES RECOMMANDE DE CALCUL la la
POUR COMMANDER LA SOCIÉTÉ COMPTABLE PUBLIQUE ENREGISTRÉE DÉTAILLÉE DE KPMG ACTIONS 2019.

ZOETIS 2019 DECLARATION DE PROCURATION 3


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ZOETIS CORPORATE GOVERNMENT

Lot 1

CHOIX DE LA DIRECTIVE

Notre conseil d'administration est actuellement composé de onze conseils, qui peuvent être divisés en trois classes. Les directeurs courent officiellement dans les escaliers
pendant trois ans et jusqu’à ce que leurs enfants soient élus et qualifiés, ou jusqu’à leur mort, les démissions ou les retraits sont empêchés. Une des trois classes est choisie chaque année pour réussir les administrateurs dont le mandat expire. Notre conseil d’administration croit que
la structure convient à l'entreprise car elle permet la continuité et la stabilité du conseil d'administration et encourage une orientation stratégique à long terme pour l'entreprise et ses actionnaires.

Le III. Directeurs de classe, dont les mandats expireront à l’assemblée annuelle de 2019, par Juan Ramón Alaix, Paul M. Bisaro, Frank A. D’Amelio et
Michael B. McCallister. Chaque conseil d'administration sera nommé par le conseil d'administration sur recommandation du comité de gouvernance d'entreprise afin de prolonger la durée de l'assemblée générale des actionnaires pour 2022.

Le comité de gouvernance d’entreprise prend en compte un certain nombre de facteurs et de principes pour définir le palais des administrateurs nommés pour élire le conseil d’administration de la Société.
discuté ci-dessous dans la section intitulée "Nomination des administrateurs". Le comité de direction et le conseil d’administration ont évalué chacun de M. Alaix, Bisaro, D’Amelio et McCallister en fonction des facteurs
et principes Zoetis est utilisé pour sélectionner les candidats organisateurs. Sur la base de l’évaluation, le comité de gouvernance et le conseil d’administration ont conclu que Zoai et ses actionnaires avaient le meilleur intérêt pour M. Alaix,
Bisaro, Amelio et McCallister continuent à être administrateurs de Zoetis.

Notre conseil d'administration a nommé Heidi C. Chent et Katherine
H. Walden peut voter pour vos actions en tant que mandataire en votre nom. Les délégués ont l'intention de voter pour l'élection de MM. Alaix, Bisaro, Deli # Amelio et McCallister, sauf indication contraire sur la carte de procuration en votant.
soit par téléphone ou par vote en ligne. Chaque candidat a accepté d'être inclus dans cette autorisation et agit en tant qu'administrateur lors de son élection. Toutefois, si un candidat est incapable de servir, le conseil d’administration peut nommer un
peut remplacer le candidat au poste d’administrateur ou réduire la taille du conseil. Si le conseil d'administration nomme une autre personne, les personnes désignées comme mandataires peuvent voter pour ces candidats suppléants.

Pour être élu, le candidat doit recevoir plus de voix pour "Pour" que pour l'élection. Séjour et médiateur aucun vote n'affectera pas le résultat du vote. Pour plus d'informations sur nos procédures, voir «Principes et pratiques de gouvernance d'entreprise – Normes relatives aux élections à la majorité pour les élections de direction».
si le candidat n'accepte pas la majorité des voix lors de l'élection contestée.

Notre conseil d'administration propose de voter avec votre procuration ou de voter
"Pour" à élire les candidats élus par le conseil d'administration – Juan Ramón Alaix, Paul M. Bisaro, Frank A. d'Amelio et Michael B. McCallister – administrateurs de Zoetis jusqu'en 2022.
Élection et qualification de l'assemblée générale annuelle et de leurs successeurs, décès, démission ou évasion. Le conseil d’administration estime que chacun de ces quatre candidats présente un haut niveau de performance pour un dirigeant responsable.
Intérêts des actionnaires et points de vue, perspectives et compétences extrêmement précieux dans les biographies de particuliers, telles que décrites aux chapitres 6 à 11. Nous présentons sur la page, en soulignant des expériences spécifiques, des qualifications et des compétences
Le conseil d'administration a conclu que chaque personne devrait continuer à siéger en tant qu'administrateur de Zoetis.

POINT 1 RECOMMANDATION: RECOMMANDER QUE LA DIRECTIVE SOIT UN VOTE la Choisir le MR.
ALAIX, MR. BISARO, MR. AMELIO ET MR. MCCALLISTER EN TANT QU'ADMINISTRATEURS.

4 ZOETIS 2019 DECLARATION DE PROCURATION


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ZOETIS CORPORATE GOVERNMENT

INFORMATION SUR LES DIRECTIVES

CONTROLEURS

Le tableau suivant vous montre
certaines informations sur les candidats et les administrateurs de la société dont le mandat se poursuivra après l'assemblée générale annuelle de 2019.

nom temps(1) Position (s) de l'entreprise
expression
expirer

Juan Ramón Alaix

67

tête
Directeur général et directeur

2019(2)

Paul M. Bisaro *

58

directeur

2019(2)

Frank A. D’Amelio *

61

directeur

2019(2)

Sanjay Khosla *

67

directeur

2021

Michael B. McCallister *

66

Président non exécutif du conseil d'administration et directeur

2019(2)

Grégory Norden *

61

directeur

2020

Louise M. Parent *

68

directeur

2020

Willie M. Reed *

64

directeur

2021

Linda Rhodes *

69

directeur

2021

Robert W. Scully *

69

directeur

2020

William C. Steere, Jr. *

82

directeur

2021

(1)

À partir du 2 avril 2019.

(2)

Nominé pour réélection à la réunion annuelle de 2019 pour une durée expirant en 2022.

ZOETIS 2019 DECLARATION DE PROCURATION 5


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GOUVERNANCE D'ENTREPRISE CHEZ ZOETIS

NOMINATIONS DE NOTRE DIRECTEUR

LOGO

JUAN RAMON Alaix

67 ans

Directeur depuis juillet 2012

Qualifications spécifiques:

Connaissance et leadership de notre société en tant que PDG actuel
et ancien président de Pfizer Animal Health

Expérience dans l'industrie de la santé animale

Expérience commerciale mondiale

Fond en finance

Président Directeur Général de notre société Depuis juillet 2012, M. Alaix est président de Pfizer Animal.
Health, notre société remplacée, était responsable de son orientation stratégique globale et de sa performance financière. Sous sa direction, la société a atteint 4,3 milliards de dollars en 2012. M. Alaix a plus de 35 ans d'expérience
expérience dans les domaines de la finance et de la gestion, dont 20 ans dans l’industrie pharmaceutique à usage humain. Ils ont rejoint Pfizer en 2003 et ont occupé un poste dans l’entreprise pharmaceutique du sud de l’Europe pour Pfizer.
Auparavant, M. Alaix a occupé divers postes au sein de Pharmacia, dont celui de président de pays en Espagne, de 1998 à l’acquisition de Pharmacia par Pfizer en 2003. t Rhône-Poulenc Rorer en Espagne et en Belgique. En 2013, M. Alaix a complété une deux ans Le président de la Fédération internationale de la santé animale
(«IFAH»), maintenant connu sous le nom de HealthforAnimals. HealthcareAnimals représente une gamme de produits de santé animale à la fois
marchés développés et émergents. En 2018, ils ont reçu la coupe Deming pour l’excellence opérationnelle de la Columbia Business School pour ses réalisations en tant que PDG de Zoetis. Originaire d'Espagne
l'Université de Madrid. M. Alaix est une connaissance et un leadership de la société.

LOGO

PAUL M. BISARO

58 ans

Directeur depuis mai 2015

Qualifications spécifiques:

Expérience de haute direction, y compris en tant qu'ancien PDG de
Actavis plc et Impax Laboratories, Inc.


Expérience dans les industries pharmaceutiques et de santé mondiales

Expertise en fusions et acquisitions


Expérience de directeur de société publique

Président exécutif de Amneal Pharmaceuticals Inc., une entreprise pharmaceutique spécialisée, depuis mai 2018. Amneal
Pharmaceuticals a été créée par la fusion d'Amneal Pharmaceuticals LLC et d'Impax Laboratories, Inc., où M. Bisaro a été président et chef de la direction de mars 2017 à mai 2018. M. Bisaro était l'exécutif
Président et chef de la direction d'Actavis, Global Pharmaceutical Company, juillet 2014, M. Bisaro a été président du conseil d'administration, président du conseil d'administration d'Allergan plc (anciennement Actavis plc).
(anciennement Watson Pharmaceuticals). Ils ont été nommés président et chef de la direction de Watson Pharmaceuticals en septembre 2007; Watson Pharmaceuticals en octobre 2013
Avant de rejoindre Watson, M. Bisaro a été président et chef de l’exploitation de Barr Pharmaceuticals, Inc., société pharmaceutique internationale spécialisée, de 1999 à 2007. Entre 1992 et 1999, M. Bisaro a été
General Counsel de Barr, de 1997 à 1999, a occupé le poste de vice-président principal – Développement stratégique des entreprises. Avant de rejoindre Barr, Winston et associé au cabinet d’avocats
Strawn et ses prédécesseurs, Bishop, Cook, Purcell et Reynolds de 1989 à 1992. M. Bisaro a précédemment servi sur
Responsables d'Allergan plc de 2007 à 2018 et de Zimmer Biomet Holdings, Inc., leader mondial des solutions de santé musculo-squelettique de 2013 à 2017. M. Bisaro est titulaire d'un diplôme de premier cycle.
et un docteur en droit de l'Université catholique d'Amérique à Washington, D.C. L'expérience de M. Bisaro dans les domaines des affaires, de la gestion et du leadership;
un membre précieux de notre conseil d'administration.

6 ZOETIS 2019 DECLARATION DE PROCURATION


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GOUVERNANCE D'ENTREPRISE CHEZ ZOETIS

LOGO

FRANK A. D’AMELIO

61 ans

Directeur depuis juillet 2012

Qualifications spécifiques:

Expérience de direction

Expérience en finance et comptabilité

Expertise en fusions et acquisitions

Expérience commerciale mondiale

Expérience de directeur de société publique

Directeur financier et Vice-président exécutif, Approvisionnement mondial et Opérations de Pfizer, pharmaceutique mondial
depuis octobre 2018, où il est membre de l’équipe de direction des cadres supérieurs de Pfizer. M. D’Amelio a précédemment occupé les fonctions de Vice-président exécutif, Opérations commerciales et Directeur financier de Pfizer.
Décembre 2010 à septembre 2018 Il a rejoint Pfizer en septembre 2007 et a occupé divers postes, dont celui de vice-président principal et directeur financier. De novembre 2006 à août 2007, M. D’Amelio a été directeur général.
Vice-président chargé de l'intégration et chef de l'administration chez Alcatel-Lucent, S.A., Global Telecommunications Equipment Company. Avant la fusion d’Alcatel et de Lucent Technologies en 2006, M. D’Amelio était le directeur de l’exploitation.
Officier de Lucent Technologies, responsable des opérations commerciales, y compris des ventes, des groupes de produits, des services, des ressources humaines et des relations de travail. En 2001, ils ont fait
Directeur exécutif et chef de la direction financière de Lucent et chef de l'administration, chef de l'administration et chef des finances
période difficile dans le secteur des télécommunications. À ce titre, M. D’Amelio était responsable de la gestion et de la supervision de toutes les relations financières, comptables, immobilières et du travail.
opérations et ressources opérationnelles des organisations. M. D’Amelio est actuellement membre du conseil d’administration de Humana Inc.
et services sociaux. Il est membre du conseil des gouverneurs de JPMorgan Chase & Co.
Université de St. John's et comptabilité du St. Peter’s College. L’expérience de M. D’Amelio en tant que cadre dirigeant et son expertise en matière de finances, ainsi que son expérience au sein de conseils d’administration de sociétés ouvertes, en font un atout
membre précieux de notre conseil d'administration.

LOGO

Michael B. McCallister

66 ans

Administrateur depuis janvier 2013;

conseil
Président depuis juin 2013

Qualifications spécifiques:

Expérience de haute direction, y compris en tant qu'ancien directeur
Humana

Contexte comptable

Expérience en gouvernance d'entreprise

Expérience de directeur de société publique

Ancien président du conseil et chef de la direction de Humana Inc. Humana est une entreprise de soins de santé
produits et services de santé et de protection sociale. M. McCallister est entré au service de Humana en 1974 et était président-directeur général de février 2000 jusqu'à sa retraite.
les principales entreprises innovantes du secteur axées sur les personnes. Ils ont également été président du conseil d'administration de Humana de 2010 à 2013.
M. McCallister a siégé pendant de nombreuses années au groupe de travail sur les entreprises et la retraite. Ils siègent actuellement aux groupes AT & T et Fifth Third Bank. M. McCallister est titulaire
licence en comptabilité de la Louisiana Tech University et MBA de la Pepperdine University. Expérience de la haute direction de M. McCallister dans le secteur des soins de santé, ainsi que de son expérience au sein d'un conseil d'administration
un membre précieux de notre conseil d'administration.

ZOETIS 2019 DECLARATION DE PROCURATION 7


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GOUVERNANCE D'ENTREPRISE CHEZ ZOETIS

DIRECTEURS CONTINU

LOGO

SANJAY KHOSLA

67 ans

Directeur depuis juin 2013

Qualifications spécifiques:

Expérience en commerce international et en gestion

Expérience opérationnelle globale, y compris dans le développement
marchés

Expérience dans l'industrie de la santé animale

Expérience de directeur de société publique

Ancien vice-président exécutif et président, marchés en développement de MondelĒz International de 2007 à 2013
M. Khosla compte plus de 35 ans d'expérience dans le secteur des produits alimentaires, tels que Mondelez, Kraft et Unilever.
marchés en développement. En tant que président de Kraft Foods, Developing Markets (maintenant Mondelēz International) de 2007 à 2013, M. Khosla a transformé les 5 milliards de dollars en une activité de 16 milliards de dollars
la rentabilité. Il est également une coopérative laitière multinationale basée en Nouvelle-Zélande, directeur général de Fonterra Brands and Food Service. M. Khosla a servi autrefois sur le
De 2008 à 2015, ils ont siégé au conseil d'administration de Best Buy, Inc., un détaillant spécialisé dans les produits électroniques grand public. personnel
ordinateurs, logiciels et appareils de divertissement et de 2002 à 2017; M. Khosla est titulaire d'un baccalauréat en génie électrique
de l’Institut indien de technologie de New Delhi. M. Khosla a également suivi le programme de gestion avancée de la Harvard Business School. M. Khosla est actuellement membre principal et professeur auxiliaire à la Kellogg School of Management,
Université Northwestern et conseiller principal du Boston Consulting Group. M. Khosla est également le PDG de Bunnik LLC, une société de conseil en management. L’expérience de M. Khosla en matière de commerce international et de gestion, ainsi que ses
expérience du conseil d’entreprise, faites-en un membre précieux de notre conseil.

LOGO

GREGORY NORDEN

61 ans

Directeur depuis janvier 2013

Qualifications spécifiques:

Expérience en finance d'entreprise, y compris en tant qu'ancien chef
Agent financier de Wyeth

Expérience dans les industries pharmaceutiques et de santé mondiales

Expérience en comptabilité en tant que responsable de la vérification d'une grande
cabinet comptable


Expérience de directeur de société publique

Ancien directeur financier de Wyeth. Avant d’occuper le poste de directeur financier de Wyeth, M. Norden a occupé divers postes
postes de direction chez Wyeth Pharmaceuticals et American Home Products. Avant son affiliation à Wyeth, M. Norden était directeur de la vérification chez Arthur Andersen & Co. M. Norden
Therapeutics, un leader dans la découverte et le développement de produits anti-infectieux révolutionnaires; NanoString Technologies, fournisseur d’outils des sciences de la vie pour les produits de diagnostic moléculaire; Royalty Pharma, un
chef de file en propriété intellectuelle génératrice de revenus; Amérique hispanique. M. Norden est un ancien administrateur de Welch Allyn, où il a exercé ses fonctions jusqu'en 2015; Lumara Health, où ils ont servi
jusqu'en 2014; et Human Genome Sciences, Inc., où il a exercé ses fonctions jusqu'en 2012. De plus, M. Norden est administrateur délégué de G9 Capital Group LLC, qui investit dans les entreprises en phase de démarrage et dans les services de conseil en finance d'entreprise.
M. Norden possède une formation en finance et une expérience en tant que cadre supérieur dans les secteurs mondial de la santé et de la pharmacie, aux côtés de son entreprise.

8 ZOETIS 2019 DECLARATION DE PROCURATION


Table des matières

GOUVERNANCE D'ENTREPRISE CHEZ ZOETIS

LOGO

LOUISE M. PARENT

68 ans

Directeur depuis août 2013

Qualifications spécifiques:

Expérience en matière de gouvernance d'entreprise et de conseil d'administration

Expérience de la conformité et de la gestion des risques

Expérience des opérations et de la haute direction en tant qu'ancien
Avocat général et dirigeant d'American Express

Expérience commerciale mondiale

Contexte juridique

Ancien vice-président exécutif et conseiller juridique de la société American Express, société de services mondiale qui fournit des frais
Depuis le début de 2014, Mme Parent est avocate au cabinet d’avocats Cleary Gottlieb Steen & Hamilton LLP. Mme Parent apporte une profonde expérience en entreprise
Les questions de gouvernance et de conseil, et en particulier les comités de conseil et de gouvernance.
Mme Parent a également été membre du conseil d'administration de la American Express Centurion Bank jusqu'en 2013 et a siégé au conseil de surveillance de Deutsche.
Bank AG de 2014 à 2018. Mme Parent est actuellement la société mondiale de technologie des services financiers. Ms. Parent holds a bachelor’s degree from Smith College and a law
degree from Georgetown University Law Center. Ms. Parent’s experience in corporate governance, compliance, risk management and global management makes her a valuable member of our Board.

LOGO

WILLIE M. REED

Age 64

Director since March 2014

Specific qualifications:

  Thought leadership in the animal health community

  Doctorate in veterinary medicine and pathology

  Avian pathology, diagnostic medicine and infectious
diseases expert

  Expertise in veterinary medicines and vaccines

  Senior management experience

Dean of the College of Veterinary Medicine at Purdue University since 2007. Dr. Reed has more than 30 years of experience in
animal health and veterinary medicine, gained during his tenure at Purdue University and Michigan State University, and as a Diplomate of the American College of Veterinary Pathologists and Charter Diplomate of the American College of Poultry
Veterinarians. Dr. Reed has served as President of the Association of American Veterinary Medical Colleges, President of the American Association of Veterinary Laboratory Diagnosticians, President of the American Association of Avian
Pathologists and Chair of the American Veterinary Medical Association Council on Research. He has served on a number of committees for the National Institutes of Health and the United States Department of Agriculture. Dr. Reed has a DVM from
Tuskegee University, and a Ph.D. in Veterinary Pathology from Purdue University. Dr. Reed’s expertise in veterinary medicines and vaccines and his thought leadership in the animal health community make him a valuable member of our Board.

ZOETIS 2019 PROXY STATEMENT 9


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CORPORATE GOVERNANCE AT ZOETIS

LOGO

LINDA RHODES

Age 69

Director since August 2017

Specific qualifications:

  Broad animal health industry experience, including as CEO
of animal health start-up company and founder of an animal health contract research organization

  Experience in private veterinary practice

  Doctorates in veterinary medicine and physiology

  Public company director experience

Former Chief Scientific Officer and Chief Executive Officer of Aratana Therapeutics. Dr. Rhodes served as Chief Scientific
Officer of Aratana Therapeutics from 2012 to 2016 and served as its Chief Executive Officer and Board member from 2011 to 2012. Dr. Rhodes has extensive experience as a research scientist, academic, veterinary practitioner and business leader,
spanning nearly 30 years across the animal health industry. She is a founder of AlcheraBio, LLC, a veterinary contract research organization, and held various research positions with Merial, Merck and Company, and Sterling-Winthrop Drug
Company. Dr. Rhodes also held several teaching positions and worked as a bovine veterinarian in private practice for many years. Dr. Rhodes served as a member of the Board of Directors of ImmuCell Corporation from 2005 until
2017. She is currently an adjunct faculty member of the Graduate Program in Endocrinology and Animal Biosciences at Rutgers University in New Brunswick, New Jersey. She serves on the Scientific Advisory Board of the Found Animals Foundation and on
the Board of Directors of the Alliance for Contraception in Cats and Dogs. Dr. Rhodes earned her Ph.D. in Physiology from Cornell University and her VMD from the University of Pennsylvania. Dr. Rhodes’ experience as a research
scientist, academic, veterinary practitioner, entrepreneur and business leader, her public company board experience and her knowledge of the animal health business make her a valuable member of our Board.

LOGO

ROBERT W. SCULLY

Age 69

Director since June 2013

Specific qualifications:

  Experience in financial services

  Mergers and acquisitions expertise

  Global management experience

  Public company director experience

  Public company experience in risk management, audit and
financial reporting

Former member of the Office of the Chairman of Morgan Stanley. Mr. Scully has nearly 35 years of experience in the financial
services industry. He served as a member of the Office of the Chairman of Morgan Stanley from 2007 until his retirement in January 2009, where he had previously been Co-President of the firm, Chairman of
global capital markets and Vice Chairman of investment banking. Prior to joining Morgan Stanley in 1996, he served as a Managing Director at Lehman Brothers and at Salomon Brothers Inc. He currently serves on the boards of KKR & Co. Inc., a
private equity and asset management firm; Chubb Limited, a global property and casualty company; and UBS Group AG, a global financial services company. Previously, he served as a director of Bank of America Corporation, GMAC Financial Services and
MSCI Inc., and as a Public Governor of FINRA, Inc., the Financial Industry Regulatory Authority. Mr. Scully holds a bachelor’s degree from Princeton University and an MBA from Harvard Business School, where he previously served on its
Board of Dean’s Advisors. Mr. Scully’s global management experience, financial acumen, M&A expertise and investor insights, along with his public company board experience, make him a valuable member of our Board.

10 ZOETIS 2019 PROXY STATEMENT


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CORPORATE GOVERNANCE AT ZOETIS

LOGO

WILLIAM C. STEERE, JR.

Age 82

Director since January 2013

Specific qualifications:

  Senior management experience, including as former CEO of
Pfizer

  Knowledge of animal health business

  Global business experience

  Public company director experience

Chairman Emeritus of Pfizer, a global biopharmaceutical company, since July 2001. Mr. Steere joined Pfizer in 1959 and held
various positions, including Chief Executive Officer from 1991 until 2000, Chairman of the board of directors from 1992 until 2001, and member of the board of directors until 2011. Mr. Steere also served on the boards of Dow Jones &
Company, Inc. until 2007; MetLife, Inc. until 2010; and Health Management Associates, Inc. until 2014. Mr. Steere’s business and senior management experience, his public company board experience and his knowledge of the animal health
business obtained through his service with Pfizer make him a valuable member of our Board.

ZOETIS 2019 PROXY STATEMENT 11


Table of Contents

CORPORATE GOVERNANCE AT ZOETIS

KEY CORPORATE GOVERNANCE FEATURES

Topic

Zoetis Key Corporate Governance Feature

Board Independence
and Expertise

  All directors are independent other than our
CEO

  Board consists of highly qualified, experienced
and diverse directors with relevant expertise for overseeing our strategy, capital allocation, performance, succession planning and risk

Independent Board Chair

  Board Chair is an independent director and is
elected by the Board annually

Board Committees

   Four Board committees: Audit, Compensation,
Corporate Governance, Quality and Innovation

   All committees are composed entirely of independent directors

Executive Sessions

   Directors hold regularly scheduled executive
sessions where directors can discuss matters without management presence

   Independent Board Chair presides over all
executive sessions of the Board

Board Oversight of Risk

   Risk oversight by full Board and committees

Proxy Access

   Proactively adopted a proxy access right for
shareholders in 2016

Board Oversight of Management   Succession

   Board regularly reviews and discusses succession
plans for CEO and other key executives

Board Self-Evaluation

   Our Board conducts an annual self-evaluation of
itself and each of its committees

felelősségre vonhatóság

   In uncontested director elections, our directors
are elected by a majority of votes cast

   Each share of common stock is entitled to one vote

   Processes in place to facilitate communication
with shareholders and other stakeholders

   Ongoing communication between our Board (including the Board Chair and Committee Chairs) and management

   Anti-hedging and anti-pledging policies covering
directors and employees

   Claw-back policy covering incentive compensation paid to executives

Director Stock Ownership

   Each
non-employee director is required to hold Zoetis stock worth at least $500,000 (including share equivalent units), to be acquired within five years of joining our Board

Open Lines of Communication

   Board promotes open and frank discussions with
felsővezetői

   Our directors have access to all members of management and other employees and are authorized to hire outside advisors at the company’s expense

Board Refreshment

   Led by the Corporate Governance Committee, the
Board regularly reviews the Board’s composition

Director Orientation and

folytatva
Oktatás

   Comprehensive orientation for new directors

   Continuing education consisting of in-house presentations, presentations by industry and subject matter experts, third-party director courses and site and customer visits

Board Diversity

   Diverse board with female and racial/ethnic
reprezentáció

   Board considers diversity of experience and
background when evaluating director nominees

12 ZOETIS 2019 PROXY STATEMENT


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CORPORATE GOVERNANCE AT ZOETIS

CORPORATE GOVERNANCE PRINCIPLES AND PRACTICES

DIRECTOR INDEPENDENCE

It is the policy of our
company, and a requirement under New York Stock Exchange (“NYSE”) listing standards, that a majority of our Board consists of independent directors. To assist it in determining director independence, our Board has adopted categorical
independence standards, referred to as our Director Qualification Standards, which meet the independence requirements of the NYSE. Our Director Qualification Standards can be found on our website at www.zoetis.com under About Us—Corporate
Governance
.

To be considered “independent” under our Director Qualification Standards, a director must be determined by our Board to have no material
relationship with the company other than as a director. In addition, under our Director Qualification Standards, a director is not independent if the director is, or has been within the last three years, an employee of the company or an employee of
any subsidiary of the company’s consolidated group for financial reporting.

In 2018, our Board of Directors consisted of eleven directors, ten of whom were
determined by our Board to be independent under our Director Qualification Standards and one of whom was not independent under those standards. The independent directors during this period were Paul M. Bisaro, Frank A. D’Amelio, Sanjay Khosla,
Michael B. McCallister, Gregory Norden, Louise M. Parent, Willie M. Reed, Linda Rhodes, Robert W. Scully and William C. Steere, Jr. The only non-independent director in 2018 was Juan Ramón Alaix, who is
not an independent director because he is employed as the company’s CEO.

On February 12, 2019, our Board completed its annual review of director
independence and affirmatively determined that Ms. Parent, Dr. Reed, Dr. Rhodes, and Messrs. Bisaro, D’Amelio, Khosla, McCallister, Norden, Scully and Steere are independent under NYSE listing standards and our Director
Qualification Standards.

BOARD LEADERSHIP STRUCTURE

Our Corporate Governance Principles, which can be found on our website at www.zoetis.com under About Us—Corporate Governance, provide the Board flexibility
in determining its leadership structure. Currently, Juan Ramón Alaix serves as our CEO and Michael B. McCallister serves as Chairman of our Board. The Board believes that this leadership structure, which separates the CEO and the Board Chair
roles, is optimal at this time because it allows Mr. Alaix to focus on operating and managing our company, while Mr. McCallister can focus on the leadership of the Board. The Board Chair presides over all meetings of our shareholders and
of the Board as a whole, including its executive sessions, and performs such other duties as may be designated in our By-laws or by the Board. The Board periodically evaluates our leadership structure and will
determine whether continuing the separate roles of CEO and Board Chair is in the best interest of the company and its shareholders based on circumstances existing at the time.

DIRECTOR ATTENDANCE

During 2018, our Board met
eight times. Each of our directors attended at least 75% of the meetings of the Board and Board committees on which he or she served during 2018.

ZOETIS 2019 PROXY STATEMENT 13


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CORPORATE GOVERNANCE AT ZOETIS

BOARD COMMITTEE MEMBERSHIP

Our Board has a standing Audit Committee, Compensation Committee, Corporate Governance Committee, and Quality and Innovation Committee. The written charter of each of
our standing committees is available on our website at www.zoetis.com under About Us—Corporate Governance. Each committee has the authority to hire outside advisors at the company’s expense. All of the members of each of our
committees are independent under NYSE listing standards and our Director Qualification Standards, and the members of our Audit Committee and Compensation Committee satisfy the additional NYSE and Exchange Act (in the case of the Audit Committee)
independence requirements for members of audit and compensation committees. The following table lists the Chair and current members of each committee and the number of meetings held in 2018.

Committee

Name

Independent Audit Compensation

Corporate

Governance

Quality and

Innováció

Juan Ramón Alaix

pas

Paul M. Bisaro

oui

LOGO

LOGO

Frank A. D’Amelio

oui

LOGO

LOGO

Sanjay Khosla

oui

LOGO

LOGO

Michael B. McCallister

oui

LOGO

Gregory Norden

oui

LOGO

LOGO

Louise M. Parent

oui

LOGO

LOGO

Willie M. Reed

oui

LOGO

LOGO

Linda Rhodes

oui

LOGO

LOGO

Robert W. Scully

oui

LOGO

LOGO

William C. Steere, Jr.

oui

LOGO

LOGO

Number of Meetings in 2018

7

6

5

4

LOGO
Chair

LOGO
Member

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

The current members of the Compensation Committee are Robert W. Scully (Chair), Paul M. Bisaro, Sanjay Khosla, Gregory Norden and Louise M. Parent. All of the current
members are independent under NYSE listing standards (including the additional standards applicable to members of compensation committees) and our Director Qualification Standards. None of the current members is a former or current officer or
employee of Zoetis or any of its subsidiaries. None of the current members has any relationship that is required to be disclosed under this caption under the rules of the SEC. During 2018, no executive officers of the company served on the
compensation committee (or its equivalent) or board of directors of another entity whose executive officer served on the company’s Compensation Committee or Board.

14 ZOETIS 2019 PROXY STATEMENT


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CORPORATE GOVERNANCE AT ZOETIS

PRIMARY RESPONSIBILITIES OF BOARD COMMITTEES

Board Committees

Responsibilities

AUDIT COMMITTEE

All Members Independent

All Members Financially Literate

Each of Mr. D’Amelio, Mr. Norden and
Mr. Scully

qualifies as an “audit committee financial expert”

   Oversees the integrity of our financial statements
and system of internal controls

   Sole authority and responsibility to select, determine the compensation of, evaluate and, when appropriate, replace our independent public accounting firm

   Oversees the performance of our internal audit
funkció

   Reviews reports from management, legal counsel and
third parties (including our independent public accounting firm) relating to the status of our compliance with laws, regulations and internal procedures

COMPENSATION COMMITTEE

All Members Independent

   Responsible for approving our overall compensation
filozófia

   Oversees our compensation and benefit programs,
policies and practices and manages the related risks

   Annually establishes the corporate goals and objectives relevant to the compensation of our CEO, reviews the goals established by our CEO for our other executive officers and
evaluates their performance in light of these goals

   Recommends to the Board the compensation of our CEO and approves the compensation of our other executive officers

   Administers our incentive and equity-based
compensation plans

CORPORATE GOVERNANCE COMMITTEE

All Members Independent

   Responsible for the company’s corporate
governance practices, policies and procedures

   Identifies and recommends candidates for election to our Board; recommends members and chairs of Board committees

   Advises on and recommends director compensation
for approval by the Board

   Administers our policies and procedures regarding related person transactions

QUALITY AND INNOVATION COMMITTEE

All Members Independent

   Evaluates our strategy, activities, results and
investment in research and development and innovation

Oversees compliance with processes and internal controls relating to our manufacturing quality and environmental, health and safety (“EHS”) programs; vélemények
organizational structures and qualifications of key personnel in our supply chain, manufacturing quality and EHS functions

BOARD’S ROLE IN RISK OVERSIGHT

As one of its primary responsibilities, the Board of Directors as a whole and through its committees oversees the company’s risk management, including our
Enterprise Risk Management program. Management provides regular reports to the Board on the areas of material risk to the company, and the Board discusses with management the company’s major and emerging risks, including operational,
technology, privacy, data and physical security, disaster recovery, legal and regulatory risks. In addition, the Board regularly reviews the company’s strategy, finances, operations, legal and regulatory developments, research and development,
manufacturing quality and competitive environment, as well as the risks related to these areas.

The Audit Committee oversees the management of risks related to
financial reporting and the annual internal audit risk assessment, which identifies and prioritizes risks related to the company’s internal controls in order to develop internal audit plans for future fiscal years. The Compensation Committee
oversees the management of risks relating to our compensation plans and arrangements. The Corporate Governance Committee oversees risks associated with potential conflicts of interest and the management of risks associated with the independence of
the Board, as well as the effectiveness of our Corporate Governance Principles and the Board’s compliance with our Code of Business Conduct and Ethics. The Quality and Innovation Committee oversees risks related to manufacturing quality and
environmental, health and safety matters, as well as risks associated with our strategy and investments in research and development and external innovation. Each committee of the Board provides periodic reports to the full Board regarding their
areas of responsibility and oversight. We believe that our Board’s active role in risk oversight supports our efforts to manage areas of material risk to the company.

ZOETIS 2019 PROXY STATEMENT 15


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CORPORATE GOVERNANCE AT ZOETIS

BOARD’S ROLE IN CEO AND MANAGEMENT SUCCESSION

Our Board is responsible for planning for succession to the position of CEO as well as other senior management positions. Our Board works together with the CEO to review
annual assessments of senior management and other persons considered potential successors to certain senior management positions.

MAJORITY
VOTING STANDARD FOR DIRECTOR ELECTIONS

Our By-laws contain a majority voting standard for all uncontested
director elections. Under this standard, a director is elected only if the votes cast “for” his or her election exceed the votes cast “against” his or her election. Our Corporate Governance Principles provide that every nominee
for director is required to agree to tender his or her resignation if he or she fails to receive the required majority vote in an uncontested director election. Our Corporate Governance Committee will recommend, and our Board of Directors will
determine, whether or not to accept such resignation. The Board will then publicly disclose its decision-making process and the reasons for its decision.

Ban,-ben
event of a contested election, the director nominees will be elected by the affirmative vote of a plurality of the votes cast. Under this standard, in a contested election the directors receiving the highest number of votes in favor of their
election will be elected as directors.

BOARD EVALUATION

Our Board conducts an annual self-evaluation of itself and its committees to assess its effectiveness and to identify opportunities for improvement. Our Board has
successfully used this process to evaluate Board and committee effectiveness and identify opportunities to strengthen the Board, and believes that this process supports its continuous improvement.

LOGO

DIRECTOR NOMINATIONS

The Corporate Governance Committee considers and recommends the annual slate of director nominees for approval by the full Board. When evaluating director candidates,
the Corporate Governance Committee considers, among other factors: the candidate’s integrity; függetlenség; leadership and ability to exercise sound judgment; animal health or veterinary expertise; public company executive or board experience;
significant operations, manufacturing or research and development experience; as well as other areas relevant to the company’s global business. The Corporate Governance Committee is responsible for considering the appropriate size and needs of
the Board, and may develop and recommend to the Board additional criteria for Board membership. Diversity of experience, background and thought among Board members is an important factor in the selection of directors.

The Corporate Governance Committee will consider director candidates recommended by shareholders. Recommendations should be sent to the Chair of the Corporate Governance
Committee (in the manner described below) by November 18, 2019, to be considered for the 2020 annual meeting. The Corporate Governance Committee evaluates candidates recommended by shareholders under the same criteria it uses for other director
candidates. Shareholders may also submit nominees for election at an annual or special meeting of shareholders by following the procedures set forth in our By-laws, which are summarized on page 67.

16 ZOETIS 2019 PROXY STATEMENT


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CORPORATE GOVERNANCE AT ZOETIS

BOARD REFRESHMENT

Board development and director succession is an integral part of the company’s long-term strategy. Our Board maintains a rigorous board refreshment process,
spearheaded by the Corporate Governance Committee, focused on identifying and evaluating potential board candidates. Information about how we select our director nominees can be found in the section titled “Director Nominations.”

COMMUNICATIONS WITH THE BOARD OF DIRECTORS

Under our Corporate Governance Principles, our CEO is responsible for establishing effective communications with the company’s stakeholder groups, including
shareholders, customers, employees, communities, suppliers, creditors, governments, corporate partners and other interested parties. While it is our policy that management speaks for the company, non-employee directors, including the Board Chair, may meet with stakeholders, but in most circumstances such meetings will be held with management present.

Stakeholders and
other interested parties may communicate with the following Board and committee Chairs at the following email addresses:

LOGO

Stakeholders and other interested parties may also write to any of our outside directors, including the Board and committee Chairs,
by directing the communication to Katherine H. Walden, Vice President, Chief Governance Counsel and Assistant Secretary, Zoetis Inc., 10 Sylvan Way, Parsippany, NJ 07054.

Communications are distributed to the Board, or to any individual director as appropriate, depending on the facts and circumstances outlined in the communication, but
exclude spam, junk mail and mass mailings, product complaints, product inquiries, new product suggestions, job inquiries, surveys and business solicitations or advertisements. Material that is unduly hostile, threatening, illegal or similarly
unsuitable will also be excluded. However, any communication that is excluded under our policy will be made available to any director upon his or her request.

ATTENDANCE OF DIRECTORS AT ANNUAL MEETING OF SHAREHOLDERS

We believe that it is important for directors to directly hear concerns
expressed by stakeholders and other interested parties. It is our policy that all Board members are expected to attend the Annual Meeting of Shareholders. All Board members attended our 2018 Annual Meeting of Shareholders.

CODE OF ETHICS

All of our employees, including
our CEO, Chief Financial Officer and Controller, are required to abide by our policies on business conduct to ensure that our business is conducted in a consistently legal and ethical manner. A copy of our Code of Conduct can be found on our website
www.zoetis.com under About Us—Corporate Compliance. We have also adopted a separate Code of Business Conduct and Ethics for members of our Board of Directors, a copy of which can be found on our website www.zoetis.com under Ról ről
Us—Corporate Governance
. We will disclose any future amendments to, or waivers from, provisions of these Codes affecting our directors or executive officers on our website as required under applicable SEC and NYSE rules.

ZOETIS 2019 PROXY STATEMENT 17


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CORPORATE GOVERNANCE AT ZOETIS

COMPENSATION OF DIRECTORS

2018 COMPENSATION OF DIRECTORS

We provide competitive compensation to our non-employee directors that enables us to attract and retain high quality directors,
provides them with compensation at a level that is consistent with our compensation objectives, and encourages their ownership of our stock to further align their interests with those of our shareholders. Directors who are our full-time employees
receive no additional compensation for service as a member of our Board of Directors.

In 2018, our non-employee directors’ compensation consisted of:

an annual cash retainer of $100,000;

an additional cash retainer of $150,000 for the Chairman of the Board of Directors and an additional cash retainer of
$25,000 for any committee chairperson; et

an equity retainer to each non-employee director upon his or her first election as
such and annually thereafter with a value of $200,000 on the date of grant, based upon the closing price of shares of Zoetis common stock on that date.

The equity retainer is granted in the form of restricted stock units that vest on the third anniversary of the date of grant.

LOGO

In 2018, we granted equity retainers in the form of restricted stock units, valued at $200,000 in the aggregate for each director on
the date of grant. Each of Ms. Parent, Drs. Reed and Rhodes and Messrs. Bisaro, D’Amelio, Khosla, Norden, McCallister, Scully and Steere received 2,730 restricted stock units valued at $73.24 per share.

Each restricted stock unit earns dividend equivalents which are credited as additional restricted stock units. Each
non-employeedirector has a right to receive the shares of Zoetis common stock underlying the restricted stock units on the third anniversary of the date of grant of the restricted stock units (or in the case
of dividend equivalents, on the third anniversary of the date of grant of the underlying restricted stock units), subject to the director’s continued service through such vesting date and subject to earlier vesting and settlement upon certain
specific events.

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CORPORATE GOVERNANCE AT ZOETIS

The following table summarizes the total compensation earned in 2018 by each of our directors who
served as a non-employee director during 2018.

Name

díjak
Earned or
Paid in
Cash($)(1)
Stock
Awards
($)(2)(3)

Option

Awards($)

Non-Equity

Incentive Plan

Compensation

($)

Change in

Pension Value

and Non-

Qualified

halasztott

Compensation

Earnings($)

All Other

Compensation

($)

Total
($)

Paul M. Bisaro(4)

$125,000

$

200,000

$

325,000

Frank A. D’Amelio(5)

$100,000

$

200,000

$

300,000

Sanjay Khosla(5)

$100,000

$

200,000

$

300,000

Michael B. McCallister(6)

$275,000

$

200,000

$

475,000

Gregory Norden(7)

$125,000

$

200,000

$

325,000

Louise M. Parent(5)

$100,000

$

200,000

$

300,000

Willie M. Reed(5)

$100,000

$

200,000

$

300,000

Linda Rhodes(5)

$100,000

$

200,000

$

300,000

Robert W. Scully(8)

$125,000

$

200,000

$

325,000

William C. Steere, Jr.(5)

$100,000

$

200,000

$

300,000

(1)

Non-employeedirectors may defer the receipt of up to 100% of their annual cash
retainer under the Zoetis Amended and Restated Non-EmployeeDirector Deferred Compensation Plan (the “Director Deferral Plan”). Any deferrals under this plan are credited as phantom stock units in
the Zoetis stock fund or an alternate investment fund, with each phantom unit representing one share of Zoetis common stock. Phantom units in the Zoetis stock fund receive dividend equivalent rights but do not receive voting rights. Deferrals will
be settled in cash following the director’s separation from service. During 2018, two directors, Ms. Parent and Mr. Steere, deferred all of their cash retainers into their respective accounts under the Director Deferral Plan.

(2)

The amounts in the Stock Awards column reflect the aggregate grant date value of restricted stock units granted to
directors in 2018 calculated in accordance with FASB ASC Topic 718. The grant date fair value of each restricted stock unit granted to each non-employeedirector on February 13, 2018, was $73.24.
Restricted stock units accrue dividend equivalents. Restricted stock units vest and are settled in shares of Zoetis common stock on the third anniversary of the date of grant, subject to the director’s continued service through such vesting
date and subject to earlier vesting and settlement upon certain specified events. Dividend equivalents vest and are settled in shares of Zoetis common stock on the third anniversary of the date of grant of the underlying restricted stock units,
subject to the director’s continued service through such vesting date and subject to earlier vesting and settlement upon certain specified events. As of December 31, 2018, the aggregate number of restricted stock units (including dividend
equivalents) held by each current non-employee director was as follows: Mr. Bisaro, 10,560; Mr. D’Amelio, 10,560; Mr. Khosla, 10,560; Mr. McCallister, 10,560; Mr. Norden, 10,560;
Ms. Parent, 10,560; Dr. Reed, 10,560; Dr. Rhodes, 5,977; Mr. Scully, 10,560; and Mr. Steere, 10,560.

(3)

Prior to 2015, each non-employee director was granted an equity retainer in the
form of deferred stock units upon his or her election to the Board and annually thereafter. Deferred stock units vest fully on the date of grant, accrue dividend equivalents and are settled in Zoetis common stock only upon the director’s
separation from service with the company. As of December 31, 2018, the aggregate number of deferred stock units (including dividend equivalents) held by each current non-employee director was as follows:
Mr. D’Amelio, 9,542; Mr. Khosla, 9,542; Mr. McCallister, 10,314; Mr. Norden, 10,314; Ms. Parent, 9,542; Dr. Reed, 4,692; Mr. Scully, 9,542; and Mr. Steere, 10,314.

(4)

Represents (a) a cash retainer of $100,000 for service to the Board as a
non-employee director during 2018, (b) a cash retainer of $25,000 for service as Chair of the Quality and Innovation Committee during 2018 and (c) an equity retainer of 2,730 restricted stock units
granted on February 13, 2018 with a grant date fair value of $200,000.

(5)

Represents (a) a cash retainer of $100,000 for service to the Board as a
non-employee director during 2018 and (b) an equity retainer of 2,730 restricted stock units granted on February 13, 2018 with a grant date fair value of $200,000.

(6)

Represents (a) a cash retainer of $100,000 for service to the Board as a
non-employee director during 2018, (b) a cash retainer of $150,000 for service as Chair of the Board during 2018, (c) a cash retainer of $25,000 for service as Chair of the Corporate Governance Committee
during 2018 and (d) an equity retainer of 2,730 restricted stock units granted on February 13, 2018 with a grant date fair value of $200,000.

(7)

Represents (a) a cash retainer of $100,000 for service to the Board as a
non-employee director during 2018, (b) a cash retainer of $25,000 for service as Chair of the Audit Committee during 2018 and (c) an equity retainer of 2,730 restricted stock units granted on
February 13, 2018 with a grant date fair value of $200,000.

(8)

Represents (a) a cash retainer of $100,000 for service to the Board as a
non-employee director during 2018, (b) a cash retainer of $25,000 for service as Chair of the Compensation Committee during 2018 and (c) an equity retainer of 2,730 restricted stock units granted on
February 13, 2018 with a grant date fair value of $200,000.

ZOETIS 2019 PROXY STATEMENT 19


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CORPORATE GOVERNANCE AT ZOETIS

DIRECTOR COMPENSATION DECISIONS FOR 2019

In 2018, the Corporate Governance Committee performed its periodic review of the compensation paid to our
non-employee directors. Willis Towers Watson, an independent compensation consultant, assisted the Committee with its analysis of our non-employee directors’
compensation relative to our peer group, market trends and best practices. Based on its review, the Corporate Governance Committee recommended, and our Board approved, an increase in non-employee directors’ compensation for 2019.

LOGO

Effective January 1, 2019, our non-employee directors’ compensation will consist
of:

an annual cash retainer of $100,000;

an additional cash retainer of $150,000 for the Chairman of the Board of Directors and an additional cash retainer of
$25,000 for any committee chairperson; et

an equity retainer credited to each non-employee director upon his or her first
election as such and annually thereafter with a value of $230,000 on the date of grant, based upon the closing price of shares of Zoetis common stock on that date.

The cash retainers remained unchanged for 2019, but the equity retainer credited to each non-employee director upon his or her
first election as such and annually thereafter was increased from $200,000 to $230,000. The equity retainer is in the form of restricted stock units which are subject to three-year cliff vesting, remaining unvested until the third anniversary of the
date of grant. Beginning with restricted stock unit awards granted in 2019, non-employee directors may defer the settlement of 100% of their restricted stock unit awards under the Zoetis Amended and Restated Non-Employee Director Deferred Compensation Plan. Deferred restricted stock unit awards are settled in stock upon the director’s separation from service.

DIRECTOR SHARE OWNERSHIP GUIDELINES

As part of the Corporate Governance Committee’s review of director compensation in 2018, the Committee also considered whether any changes should be made to our
share ownership guidelines for directors. After review, the Committee recommended, and the Board approved, an increase to our share ownership guidelines applicable to non-employee directors, requiring
directors to hold Zoetis shares with a value of at least five times their annual cash retainer (currently $500,000), effective January 1, 2019, in place of the previous requirement of four times their annual cash retainer. For purposes of
satisfying these requirements, (a) a director’s holdings of the company’s stock include, in addition to shares held outright, units granted to the director as compensation for Board service and shares or units held under a deferral or
similar plan, and (b) each such unit has the same value as a share of the company’s common stock. Each non-employee director has five years from the date of (a) his or her first election as a
director, or (b) if later, an increase in the amount of company stock required to be held to achieve the share ownership requirement.

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ITEM 2

ADVISORY VOTE TO APPROVE OUR EXECUTIVE COMPENSATION (SAY ON PAY)

We are seeking your vote, on an advisory basis, on the compensation of our named executive officers as described in the Compensation
Discussion and Analysis and the Executive Compensation Tables and accompanying narrative disclosure, as provided on pages 22 to 55 of this proxy statement. While the vote is not binding on the Board, the Compensation Committee will consider the
outcome of the vote when making future executive compensation decisions.

For background, Section 14A of the Exchange Act of 1934 (the “Exchange Act”)
requires an advisory vote on the frequency of shareholder votes on executive compensation. We conducted this advisory vote on frequency at our 2014 Annual Meeting of Shareholders; our shareholders voted for, and our Board subsequently approved, an
annual advisory vote on executive compensation.

Our Board of Directors believes that our executive compensation program incentivizes and rewards our leadership for
increasing shareholder value and aligns the interests of our management with those of our shareholders on an annual and long-term basis.

ITEM 2 RECOMMENDATION: OUR BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE
FOR THE APPROVAL OF OUR EXECUTIVE COMPENSATION.

ZOETIS 2019 PROXY STATEMENT 21


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COMPENSATION DISCUSSION AND ANALYSIS

EXECUTIVE SUMMARY

In this Compensation Discussion and Analysis (“CD&A”) we describe our executive compensation
philosophy and programs and the compensation decisions made by the Compensation Committee of the Board of Directors of Zoetis Inc. (the “Committee”) or the Board regarding the 2018 compensation of our named executive officers
(“NEOs”).

Zoetis’ executive compensation program is designed to incent and reward our leadership for increasing shareholder value and align the
interests of leadership with those of our shareholders on an annual and long-term basis.

Our NEOs for 2018, whose compensation is discussed in this CD&A and
shown in the Executive Compensation Tables below, are:

NEO Title

Juan Ramón Alaix

Chief Executive Officer (“CEO”)

Glenn C. David

Executive Vice President and Chief Financial Officer (“CFO”)

Kristin C. Peck

Executive Vice President and Group President, U.S. Operations, Business Development and Strategy

Clinton A. Lewis, Jr.

Executive Vice President and Group President, International Operations, Commercial Development, Global Genetics and Aquatic
Health*

Catherine A. Knupp

Executive Vice President and President of Research and
Development

*

Effective January 2019, Mr. Lewis assumed the role of Executive Vice President and Group President, International
Operations, Commercial Development, Global Genetics, Aquatic Health and Human Medical Diagnostics.

2018 BUSINESS HIGHLIGHTS

In 2018, our leadership team once again drove strong operating performance based on the three interconnected capabilities that have been critical to our success since
becoming a public company: direct customer relationships, innovative research and development, and high-quality manufacturing and supply. We continued to deliver on our value proposition, growing revenue faster than the market and growing our
adjusted net income faster than revenue; targeting key investment opportunities for growth; and returning excess capital to our shareholders.

Our 2018
financial performance as compared to 2017 is illustrated in the chart below:

LOGO

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Financial Highlights. We delivered our sixth consecutive year of operational revenue growth and increased
profitability as highlighted below.

(For more information please review the company’s Annual Report on Form 10-K for fiscal year 2018 and this proxy statement.)

¡

Revenue. For full year 2018, reported revenue was $5,825 million, with revenue growth of 10% both on a reported
and an operational4 basis; this growth is greater than the expected global animal health industry growth for 2018. We generated strong operational revenue growth based on our diverse portfolio,
and we saw growth across all our major species, markets and therapeutic areas in 2018. Companion animal products performed very well based on continued growth in our key dermatology brands and new parasiticides. In livestock products, our swine,
poultry and fish portfolios each delivered significant growth, with more modest gains in our cattle business that were achieved despite price erosion in the U.S. caused by increased competitive pressures.

¡

Adjusted Net Income. Reported net income for 2018 was $1,428 million and adjusted net income3 for 2018 was $1,525 million. Adjusted net income increased 29% over 2017. In line with our value proposition, we grew adjusted net income faster than revenue, demonstrating our focus on
profitable growth.

¡

Earnings Per Share (“EPS”). Reported diluted EPS for 2018 was $2.93 per diluted share, compared to
$1.75 per diluted share reported in 2017. Adjusted diluted EPS3 for 2018 was $3.13 per diluted share, compared to the 2017 amount of $2.40 per diluted share.

Value-Added Investment Opportunities. In 2018, compared to prior years, we allocated more resources to critical
research and development (“R&D”) projects; deployed more sales people and direct-to-consumer campaigns to support new product launches; upgraded and
expanded our manufacturing capabilities; and invested in key areas such as diagnostics with our acquisition of Abaxis, and in data analytics and digital solutions with our acquisition of Smartbow.

¡

Internal Innovation: Our R&D team continued to increase the value of Zoetis’ long-term portfolio in 2018.
Our team of approximately 1,100 scientists and researchers around the globe generated new product approvals and lifecycle innovations across our 300 products and product lines. In 2018, we invested over $430 million internally, primarily to
accelerate our R&D programs, a 13% increase over 2017.

¡

Enhancing our direct presence with customers: We continue to focus on initiatives that improve the service and
support we bring to customers across the entire lifecycle of animal care (predicting, preventing, detecting, and treating disease). This includes investment in new tools, technology and training for the development of our field colleagues, who are
the face of Zoetis to our customers around the globe. Our commercial teams, and marketing initiatives including direct-to-consumer campaigns, have been critical in
supporting the launch of our newest companion animal blockbusters — Simparica® and Cytopoint®— in various markets.

¡

Acquisitions and Collaborations: We executed on our strategy to deploy capital toward acquisitions and partnerships
that strengthen our portfolio, including:

Our acquisition of Abaxis, giving us an immediate presence in point-of-care diagnostic instruments that help customers detect disease in animals

Our acquisition of Smartbow, a developer of dairy cow monitoring systems and electronic ear tags, designed to aid in
precision dairy farming and early disease intervention

3

Adjusted net income and adjusted diluted EPS (non-GAAP financial measures) are
defined as reported net income attributable to Zoetis and reported diluted EPS, excluding purchase accounting adjustments, acquisition-related costs and certain significant items. Pages 46 to 51 of our 2018 Annual Report on Form 10-K, filed with the SEC on February 14, 2019, contain a reconciliation of these non-GAAP financial measures to reported results under GAAP for 2018.

4

Operational revenue growth (a non-GAAP financial measure) is defined as revenue
growth excluding the impact of foreign exchange. Page 44 of our 2018 Annual Report on Form 10-K, filed with the SEC on February 14, 2019, contains a reconciliation of this
non-GAAP financial measure to reported results under GAAP for 2018.

ZOETIS 2019 PROXY STATEMENT 23


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Our R&D partnership with Regeneron, which enables us to explore additional monoclonal antibody treatments.

¡

Expansion of our Manufacturing Network: In 2018, we made critical investments to expand our manufacturing capacity
to ensure that we continue to bring our customers a reliable supply of high-quality products. We expanded our facilities in Charles City, Iowa, and Kalamazoo, Michigan, and made significant progress on the construction of our facility in Suzhou,
China, which we expect to complete by the end of 2019. We also acquired a manufacturing facility in Tallaght, Ireland, to help us increase supply security for our market-leading bovine teat sealants and bring further value to our global dairy
business.

¡

Bringing Value to Society: In addition to creating value for our shareholders and customers, we are committed to
creating value for society as we strive to protect animal and human health; to ensure a safe, sustainable source of animal protein; and to safeguard the livelihoods of our customers. In 2018, we established the Center for Transboundary and Emerging
Diseases, a globally coordinated initiative to help governments, veterinary and livestock farmer communities prepare for and respond to infectious disease threats, and we made significant progress in our African Livestock Productivity and Health
Advancement (A.L.P.H.A.) initiative with the Bill and Melinda Gates Foundation, leading to the opening of a new veterinary diagnostic center in 2018 with one of the leading poultry producers in Nigeria. We initiated a similar partnership in Uganda
to deliver sustainable animal health diagnostic services, education, and training to the country’s cattle veterinarians and farmers.

Dividends and Capital Allocation. In 2018, we paid out approximately $243 million dollars in common stock
dividends to shareholders totaling $0.504 per share. In December 2018, our Board of Directors declared a first quarter 2019 dividend of $0.164 per share, a 30% increase over the quarterly dividend rate paid in 2018, and authorized a
$2.0 billion multi-year share repurchase program as part of our long-term capital allocation plans. The shares are expected to be repurchased over a number of years, and the program can be cancelled at any time. The company’s previous
$1.5 billion share repurchase program is expected to be completed in the first half of 2019. We continue to prioritize our capital allocation in ways that will add value to Zoetis through internal investments, targeted business development
activities and by returning excess capital to shareholders.

2018 COMPENSATION HIGHLIGHTS

The Committee’s compensation-related actions included the following:

Timing of Annual Base Salary Increases. The Committee approved a change to the effective date for 2018 base salary
increases from April 1, 2018 to January 1, 2018, to simplify the compensation process and the related communications and disclosures, beginning with the disclosures included within this 2019 proxy statement. The CEO did not receive a base
salary increase in 2018 and was not impacted by this change.

CEO Stock Ownership Requirement. The Committee annually reviews the stock ownership requirements of our NEOs,
including the CEO, which are established as a multiple of each executive’s base salary, to encourage our NEOs to own and maintain a substantial stake in the company. In 2018, the Committee increased the stock ownership requirement for the CEO
from 5 times to 6 times base salary to better align with practices reported by many of the companies in our compensation peer group.

Compensation Peer Group. As part of its annual review of our compensation peer group, the Committee made a few
changes to the peer group for 2019 to provide a robust number of peer companies and a good balance of companies across the pharmaceutical, biotechnology, life sciences, and healthcare equipment industries that are more similar in size and scope to
Zoetis. The revised peer group will be used by the Committee in making 2019 compensation decisions.

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EXECUTIVE COMPENSATION

CEO COMPENSATION: AT A GLANCE

Mr. Alaix’ target total direct compensation is comprised of base salary, target annual incentive compensation opportunity and target long-term incentive
compensation opportunity.

Base Salary and Annual Incentive

Mr. Alaix’ 2018 base salary was $1,200,000 and his target annual incentive opportunity was 125% of his base salary, providing for an annual target total cash
compensation of $2,700,000.

On February 12, 2019, the Committee recommended, and the Board of Directors approved, an annual incentive payment for 2018 of
$2,047,500 (136.5% of the annual incentive target) for Mr. Alaix based on Zoetis’ 2018 financial results and his individual performance.

Long-Term
Incentive

On February 13, 2018, Mr. Alaix received a long-term equity incentive grant with a total grant date fair value of $8,100,000, consisting of one-third each of stock options, time-vesting restricted stock units (“RSUs”) and performance-vesting RSUs (“performance award units”). Each of these awards (133,070 stock options, 36,865 RSUs
and 26,908 performance award units) is subject to three-year cliff vesting and vests 100% on the third anniversary of the date of grant (i.e., they remain unvested until February 13, 2021), generally subject to Mr. Alaix’ continued
employment through the vesting date and, in the case of performance award units, the company’s results against its three-year relative total shareholder return (“TSR”) goals. As provided under the Zoetis Inc. 2013 Equity and Incentive
Plan (the “Equity Plan”), vesting of awards may be accelerated in part or in full upon a termination of Mr. Alaix’ employment due to death, disability, retirement or upon a change in control.

Target Total Direct Compensation (“TTDC”)

The chart below shows
the TTDC for Mr. Alaix for 2018:

LOGO

CEO Pay Ratio

Item 402(u) of the
SEC’s Regulation S-K (the “SEC Regulation”), which was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, requires disclosure of the ratio of the annual total
compensation of our CEO to our median employee’s annual total compensation. The ratio disclosed below is a reasonable estimate calculated in a manner consistent with the SEC Regulation.

Our median employee was identified in 2017 and we used this same employee to calculate our CEO pay ratio for 2018, as permitted by the SEC Regulation, because there has
been no change in our employee population or employee compensation arrangements that we believe would significantly impact our pay ratio disclosure for 2018.

Nak nek
identify our median employee, we chose “annual base pay” as our globally-consistent definition of pay. We calculated annual base pay using a methodology that reasonably reflects the annual compensation of employees, which

ZOETIS 2019 PROXY STATEMENT 25


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included reasonable estimates of hours worked for hourly workers and annualized base pay for newly hired employees. We chose not to exclude any employees and used a
valid statistical sampling approach to estimate the base pay for our median employee. Then we selected an individual whose base pay as of October 1, 2017, was at or near that value.

For 2018, our median employee’s annual total compensation (determined in a manner consistent with that of our CEO in the Summary Compensation Table) was $75,366.
Our CEO’s total annual compensation for the year ended December 31, 2018, as disclosed in the Summary Compensation Table, was $11,669,400. Therefore, the ratio of CEO pay to median employee pay was 155 to 1.

OUR COMPENSATION PROGRAM

COMPENSATION
PHILOSOPHY

Our compensation philosophy, which is set by the Committee, is summarized below:

Compensation Philosophy

Objectives

Pay for Performance

Foster a pay-for-performance culture by tying a
large portion of our executives’ pay to performance against pre-established annual company financial and operational metrics, as well as pre-established évi
individual goals for each executive

Align Management Interests with
Shareholders

Align the interests of management with results delivered to our shareholders through the
use of long-term incentive programs that are designed to reward executives for increasing the value of our shareholders’ investment

Pay Mix

Provide competitive compensation opportunities over the short term (base salary and
annual incentives) and long term (equity-based long-term incentive awards) which are intended to retain our experienced management team, enable us to attract new qualified executives when needed and remain externally aligned with the compensation
practices of our peer group

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EXECUTIVE COMPENSATION

BASIC PRINCIPLES OF OUR EXECUTIVE COMPENSATION PROGRAM

Key principles and elements of our executive compensation program are summarized below. We believe these practices promote good governance and serve the interests of our
shareholders.

WHAT WE DO:

Emphasize pay for
performance – our executive compensation program emphasizes variable pay over fixed pay, with more than three-quarters of our executives’ target compensation tied to our financial results and stock
performance.

Maintain a three-year
cliff vesting schedule for equity-based long-term incentive awards.

Require executives to
comply with market-competitive stock ownership guidelines.

Require executives to
hold net shares upon the exercise of stock options or vesting of stock until they achieve the relevant stock ownership guideline.

Maintain a policy
prohibiting traditional perquisites of employment (as determined by our Board of Directors) for our employees, including our NEOs.

Maintain anti-hedging
and anti-pledging policies applicable to our directors and employees, including our NEOs.

Maintain a claw-back
policy that allows us to recover incentive payments based on financial results that are subsequently restated or in response to certain inappropriate actions on the part of our executives.

Provide for
“double trigger” equity award vesting and severance benefits following a change in control.

Provide severance
benefits through an Executive Severance Plan, consisting of cash equal to a multiple of base salary and target annual incentive, as well as continued health and welfare benefits, as described in the Executive Severance Plan.

Use an independent
compensation consultant when designing and evaluating our executive compensation policies and programs.

Conduct an annual risk
assessment to ensure that the company’s pay programs and practices do not create risks that are likely to have a material adverse impact on the company.

WHAT WE DON’T DO:

û
Maintain employment agreements with our executives, including our NEOs (other than agreements that are required or customary for executives outside of the U.S.).

û
Allow repricing of stock options without shareholder approval.

û
Provide tax “gross ups” to any of our executives, including our NEOs (except with respect to certain international assignment or relocation expenses, consistent with our policies and available on the same basis to all eligible
employees).

û
Provide for “single trigger” equity award vesting or other “single trigger” payments or benefits upon a change in control.

ELEMENTS OF 2018 COMPENSATION

Element

Description and Purpose

Comments

Cash Compensation

Base Salary

Fixed cash compensation that
reflects fulfillment of day-to-day responsibilities, skills and experience.

Addresses employee cash-flow needs and retention
objectives.

Reviewed annually in light of
changes in market practice, performance and individual responsibility.

Annual Incentive Plan
(“AIP”)

Annual cash incentive that rewards achievement of our
financial and strategic/operational goals, as well as the individual performance of the NEO and, along with base salary, provides a market-competitive annual cash compensation opportunity.

For 2018, the AIP pool was funded based on
Zoetis’ performance against revenue, adjusted diluted EPS and free cash flow goals.

Amount of payout is based on the extent of
achievement of company and individual goals set and approved by the Committee in the first quarter of each year.

The Committee may exercise discretion in considering
performance results in the context of other strategic and operational objectives.

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ELEMENTS OF 2018 COMPENSATION (CONTINUED)

Element

Description and Purpose

Comments

Long-Term Incentives

Stock Options

Equity awards that provide value
based on growth in our stock price.

Intended to focus NEOs on increasing the company’s stock price.

Reward NEOs for increases in the stock price over a
period of up to ten years.

In 2018, stock options represented one-third of each NEO’s long-term incentive opportunity based on the grant date fair value of the awards.

Exercise price equals 100% of the stock price on the
date of grant.

Ten-year term.

Three-year cliff vesting: vests 100% on the third
anniversary of the date of grant, subject to the NEO’s continued employment through such date (with vesting on certain earlier terminations, such as retirement, death, change in control, etc., that are generally aligned with market
practice).

Restricted Stock Units

Equity awards that give the
recipient the right to receive shares of Zoetis stock on a specified future date, subject to vesting.

Align NEO and shareholder interests, as NEOs will
realize a higher value from RSUs from an increasing stock price.

In 2018, RSUs represented one-third of each NEO’s long-term incentive opportunity based on the grant date fair value of the awards.

Three-year cliff vesting: vests 100% on the third
anniversary of the date of grant, subject to the NEO’s continued employment through such date (with vesting on certain earlier terminations, such as retirement, death, change in control, etc., that are generally aligned with market
practice).

Paid out in shares of our company common stock upon
vesting.

Dividend equivalents are accrued over the vesting
period and paid when and if the RSUs vest (subject to the same vesting conditions as the underlying RSUs).

Performance Award Units

Equity awards that give the recipient the right to
receive shares of Zoetis stock on a specified future date, subject to vesting and the company’s performance against its three-year relative TSR goals.

Align NEO and shareholder interests, as the value
NEOs realize from their performance award units depends on the value of the shareholders’ investment relative to other investment opportunities over the same time period.

In 2018, the target number of performance award units
képviselők one-third of each NEO’s long-term incentive opportunity based on the grant date fair value of the awards.

Three-year cliff vesting: units earned based on the
company’s TSR results over the three-year performance period relative to the TSR results of the S&P 500 Group (as described below under “Long-Term Incentives”) vest 100% on the third anniversary of the date of grant, subject to
the NEO’s continued employment through such date (with vesting on certain earlier terminations, such as retirement, death, change in control, etc., that are generally aligned with market practice).

Paid out in shares of our company common stock upon
vesting, with the payout ranging from 0% to 200% of target (including dividend equivalents), depending on the extent to which the pre-determined performance goals have been achieved.

Dividend equivalents are accrued over the vesting
period and paid when and if the performance award units vest (subject to the same vesting conditions as the underlying performance award units).

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EXECUTIVE COMPENSATION

ELEMENTS OF 2018 COMPENSATION (CONTINUED)

Element

Description and Purpose

Comments

Retirement

U.S. Savings Plan

(“Savings Plan”)

la
tax-qualified 401(k)/profit sharing plan that allows U.S. participants to defer a portion of their compensation, up to U.S. Internal Revenue Code (“IRC”) and other limitations, and receive a company
matching contribution.

A discretionary profit sharing contribution of up to 8% of an eligible employee’s total cash pay, within IRC limitations and based on company performance.

We provide a matching contribution
of 100% on the first 5% of an employee’s total cash pay contributed to the Savings Plan, up to IRC limitations.

For 2018, we made a profit sharing contribution of
5.0% of total cash pay (within IRC limitations) to all eligible U.S. employees.

Supplemental Savings

plan

la
non-qualified deferred compensation plan that makes up for amounts that would otherwise have been contributed to the Savings Plan (by the employee or as matching or profit sharing contributions by the company)
but could not be contributed due to IRC limitations.

Also allows NEOs and certain other executives to
defer up to an additional 60% of the amount of their AIP payment that is over the IRC 401(a)(17) limit and that is not matched by the company.

Matching and profit sharing
contributions are notionally credited as company stock.

Equity Deferral Plan

The Zoetis Equity Deferral Plan
allows the most senior leaders of the company (9 U.S. employees, including the NEOs) to defer the receipt of our company’s common stock upon vesting of RSUs and performance award units.

Participation in this plan is voluntary.

Participants may elect to defer up
to 100% of the company common stock to be received upon vesting, or a lesser amount in 25% increments.

Participants may elect to receive their deferred
shares upon termination of employment in a lump sum or in annual installments (special provisions provide for situations such as death or disability, or to comply with IRC regulations, as described more fully in the Zoetis Equity Deferral Plan).

In general, election decisions must be made by the
end of the year before the RSUs are granted, and by the end of the second year of a three-year performance period for performance award units.

Severance

Executive Severance
plan

Severance benefits provided to NEOs and certain other executives (currently 11 employees, including the NEOs) upon an involuntary termination of employment without cause (whether
before or after a change in control), or upon a “good reason” termination of employment upon or within 24 months following a change in control.

Facilitates recruitment and retention of NEOs and
certain other executives by providing income security in the event of involuntary job loss.

Provides the CEO with:

¡ 1.5 times base salary and target annual incentive upon an involuntary termination of employment without cause (unrelated to a
change in control).

¡ 2.5 times base salary and target annual incentive upon an involuntary termination of employment without cause or a “good
reason” termination following a change in control.

Provides other executives, including the NEOs other
than the CEO with:

¡ 1 times base salary and target annual incentive upon an involuntary termination of employment without cause (unrelated to a
change in control).

¡
2 times base salary and target annual incentive upon an involuntary termination of employment without cause or a “good reason” termination following a change in control.

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SAY ON PAY CONSIDERATION AND SHAREHOLDER OUTREACH

At our 2018 Annual
Shareholder Meeting, we held a shareholder advisory vote on the compensation of our NEOs in 2017 (“say on pay”). Our shareholders overwhelmingly approved the compensation of our NEOs, with 97.0% of the votes cast in favor of our say on pay
resolution. We believe that the outcome of our say on pay vote signals our shareholders’ support of our compensation approach, specifically our efforts to retain and motivate our NEOs and to align pay with performance and the long-term
interests of our shareholders.

We value feedback from our shareholders, and throughout 2018 we continued to actively engage our shareholders through participation
in numerous investor meetings and conferences, with our CEO attending many of these meetings in person.

The Committee reviewed and considered these voting results
and our shareholder engagement activities, among other factors described in this CD&A, in evaluating the company’s executive compensation program.

THE COMMITTEE’S PROCESS

Pursuant to its Charter, the Committee is responsible for, among other duties:

Reviewing and approving the company’s overall compensation philosophy;

Overseeing the administration of related compensation and benefit programs, policies and practices;

Reviewing and approving the company’s peer companies and data sources for purposes of evaluating the company’s
compensation competitiveness;

Establishing the appropriate competitive positioning of the levels and mix of compensation elements;

Evaluating the performance of the CEO against performance goals and objectives approved by the Board of Directors in the
first quarter of the year; et

Approving the performance goals, evaluating the performance of each executive against individual performance goals
established in the first quarter of the year and approving the compensation of the company’s executive officers.

To evaluate the performance
of the CEO, the other NEOs and the other members of the Zoetis Executive Team (“ZET”), at the beginning of each year, the Committee meets and approves strategic, financial and operational objectives for the CEO, the other NEOs and the
other ZET members for the upcoming year, and it also evaluates their performance for the previous year.

Our CEO, Mr. Alaix, does not play any role in the
Committee’s determination of his own compensation. For the other NEOs and ZET members, Mr. Alaix presents the Committee with recommendations for each element of compensation. He bases these recommendations upon his assessment of each
individual’s performance, the performance of the relevant functions overseen by the individual, benchmark information and retention risk. The Committee then reviews the CEO’s recommendations, makes appropriate adjustments and approves
compensation changes at its discretion.

ROLE OF THE COMPENSATION CONSULTANT

The Committee retained Willis Towers Watson to serve as its executive compensation consultant in 2018. While Willis Towers Watson may make recommendations on the form
and amount of compensation, the Committee continues to make all decisions regarding the compensation of our NEOs, subject to the review (and approval in the case of the CEO) of the other independent directors. In 2018, Willis Towers Watson served
the Committee in a variety of activities, including:

Reviewing and advising the Committee on evolving trends in executive compensation and as to materials presented by
management to the Committee;

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Attending all 2018 Committee meetings and communicating with the Committee Chair between meetings as necessary;

Providing the Committee with advice,
pay-for-performance analytics and benchmarking norms related to the compensation of the CEO, the other NEOs and the other ZET members;

Reviewing and making recommendations for changes to our compensation peer group;

Reviewing our annual incentive and long-term incentive plan design;

Reviewing recommendations for stock ownership guidelines for our executives;

Reviewing and assessing our incentive and other compensation programs to ensure they do not create undue risk for the
company; et

Reviewing this CD&A and related Executive Compensation Tables.

PEER GROUP AND COMPENSATION BENCHMARKING

Each year, the Committee
conducts a review of Zoetis’ compensation peer group of publicly-traded companies that is used for purposes of benchmarking pay levels and pay practices for our CEO, our other NEOs and the other ZET members, to determine if any changes are
necessary or appropriate. Our peer group selection looks beyond our animal health competitors to a broader list of companies in the pharmaceutical, biotechnology, life sciences and healthcare equipment industries. Additionally, companies with
similar sales and market capitalization, as well as similarities to Zoetis in the nature of their businesses, and the availability of relevant comparative compensation data, are also considered.

As a result of this review and due to changes in the market capitalization of companies that had previously been included in the peer group relative to Zoetis’
market capitalization, the Committee made certain revisions to the company’s compensation peer group for 2019 in order to provide a robust number of peer companies and a good balance of companies across the various industries of similar size
and scope. The revised compensation peer group is comprised of the 14 peer companies listed in the table below:

Agilent Technologies, Inc.

IQVIA Holdings Inc.

Alexion Pharmaceuticals, Inc.

Mettler-Toledo International Inc.

Baxter International Inc.

Mylan N.V.

Biogen Inc.

PerkinElmer, Inc.

Bio-Rad Laboratories, Inc.

Perrigo Company plc

Boston Scientific Corporation

Stryker Corporation

Celgene Corporation

Zimmer Biomet Holdings, Inc.

Zoetis ranks in the 39e percentile in revenue and 72nd percentile in total market capitalization among the companies in this revised peer group. This peer group will be used to guide the Committee in making 2019 compensation decisions.

In determining the elements of 2018 compensation for our NEOs, we used the following benchmarks:

Proxy statement data for the peer group as disclosed in each company’s prior year CD&A and Executive Compensation
Tables.

Survey data from similarly-sized companies in life sciences and other industries
for benchmarking purposes to ensure robust data. In certain cases, we used data from the Willis Towers Watson Executive Compensation Survey for this purpose.

The Committee will continue to review our compensation peer group on an annual basis and will make any adjustments that are deemed to be appropriate to reflect our
financial and operational performance and other matters the Committee deems relevant.

ROLE OF MANAGEMENT IN COMPENSATION DECISIONS

Our CEO and Chief Human Resources Officer provide the Committee with preliminary recommendations for compensation of the NEOs and other members of the ZET other than
themselves. The Committee, with the advice of its

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independent compensation consultant, approves the compensation for the NEOs (other than the CEO) and the other members of the ZET, and recommends the compensation of the
CEO to our full Board of Directors for approval.

2018 COMPENSATION PROGRAM AND DECISIONS

COMPENSATION STRUCTURE

The compensation structure for our executives,
including our NEOs, reflects our overall compensation philosophy of emphasizing pay-for-performance and aligning the interests of our executive officers and our
shareholders, and is designed to emphasize incentive compensation over fixed compensation and equity compensation over cash compensation. For all our NEOs, long-term incentive compensation is entirely equity-based and makes up the largest portion of
their pay mix. In 2018, 89% of the TTDC of our CEO was incentive-based pay, either subject to achievement of performance goals or with value directly tied to the price of our common stock. For each of our NEOs other than our CEO, on average 76% of
TTDC was incentive-based pay.

The table and charts below show the mix of TTDC for our NEOs for 2018. The TTDC for our NEOs reflects their base salaries and target
annual incentive opportunities as of the end of the year. The numbers in this table differ from those shown in the 2018 Summary Compensation Table (provided later in this proxy statement) in that the Summary Compensation Table reflects actual base
salary and annual incentives earned during 2018 (rather than target amounts), and this table does not include all compensation information required to be presented in the Summary Compensation Table under the rules of the SEC.

2018 NEO Compensation Structure*

Base

Salary

Cél

Annual

Incentive

Long-Term

Incentive

Target Total

Direct

Compensation

Pay Mix
NEO

Base

Salary

Cél

Annual

Incentive

Long-

Term

Incentive

Juan Ramón
Alaix

$

1,200,000

$

1,500,000

$8,100,000

$10,800,000

11%

14%

75%

Glenn C. David

$

626,250

$

501,000

$1,600,000

$  2,727,250

23%

18%

59%

Kristin C. Peck

$

675,000

$

540,000

$1,500,000

$  2,715,000

25%

20%

55%

Clinton A. Lewis,
Jr.

$

675,000

$

540,000

$1,500,000

$  2,715,000

25%

20%

55%

Catherine A. Knupp

$

626,250

$

501,000

$1,500,000

$  2,627,250

24%

19%

57%

*

Amounts in this table are as of December 31, 2018

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BASE SALARY

Base salary is the principal fixed component of the TTDC of our NEOs, and is determined by considering the relative importance of the position, the competitive
marketplace and the individual’s performance and contributions. In setting base salaries and determining salary increases for our NEOs, the Committee considers a variety of factors, including:

Level of responsibility;

Individual and team performance;

Internal review of the NEO’s total compensation, individually and relative to our other officers and executives with
similar levels of responsibility within the company; et

General levels of salaries and salary changes relative to officers and executives with similar responsibilities at peer
group companies.

With regard to individual and team performance, the Committee considers the CEO’s evaluation of the individual performance
of each NEO. Salary levels are typically reviewed annually as part of the Committee’s performance review process and would otherwise be reviewed in the context of a promotion or other change in job responsibility.

After taking into consideration the factors listed above, the Committee approved increases to the base salaries (and corresponding increases to the target incentives) of
Mr. David, Ms. Peck, Mr. Lewis, and Dr. Knupp, effective January 1, 2018, as reflected in the section above entitled “Compensation Structure”. Mr. Alaix did not receive an increase in his base salary in 2018
because his base salary was appropriately aligned with the base salaries of CEOs in our compensation peer group. Historically, annual base salary increases were effective as of April 1 of each year. In 2018, the Committee approved a change to
the effective date for base salary increases from April 1 to January 1, simplifying the compensation process and related communications and disclosures.

ANNUAL INCENTIVE PLAN (“AIP”)

Our AIP is our annual
cash incentive plan, which is intended to reward all AIP-eligible employees, including our NEOs, for achievement of company financial and strategic/operational goals, as well as achievement of their own
individual performance goals.

Our AIP utilizes a funded pool approach. An overall target AIP pool for the year is determined by adding together the target
AIP payouts for each eligible employee, including the NEOs. The actual amount of the AIP pool for 2018 was determined by the Committee based on the company’s attainment of the revenue, adjusted diluted EPS and free cash flow goals (weighted
40%, 40% and 20%, respectively) approved by the Committee in the first quarter of the year.

LOGO

The three measures (revenue, adjusted diluted EPS and free cash flow) were selected because they reflect the successful execution of our
business strategy and support the achievement of the company’s annual operating plan; more specifically:

Revenue and adjusted diluted EPS are measures that shareholders closely track in their analysis of our performance

Free cash flow helps drive the efficient management of working capital and discipline in capital expenditures

The threshold, target and maximum performance levels for AIP pool funding for 2018 were established by the Committee in early 2018.

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COMPANY 2018 PERFORMANCE

The revenue, adjusted diluted EPS and
free cash flow target levels and results reflected here and used to determine the funding level of our AIP pool exclude the impacts of foreign exchange and the acquisition of Abaxis during 2018 and are therefore different from our reported revenue,
adjusted diluted EPS and free cash flow results of $5,825 million, $3.13 per share and $1,452 million, respectively. The impact of foreign exchange is excluded for purposes of determining AIP performance achievement because it is not a
direct measure of the company’s operating performance. Additionally, the impact of the financial results of Abaxis were excluded for purposes of determining the level of achievement of AIP company financial goals because Abaxis financial
results were not included in our revenue, adjusted diluted EPS and free cash flow targets established for 2018. However, the Committee’s assessment of our NEOs’ performance, and the Board’s assessment of our CEO’s performance,
for purposes of the individual performance component of the AIP payout determinations, included the executives’ contributions to the successful completion of the Abaxis acquisition and subsequent integration activities. These adjusted financial
results for 2018 led to above-target payouts under our AIP:

Revenue, excluding the impacts of foreign exchange and the acquisition of Abaxis, was $5,883 million, 103% of the 2018
revenue target established for the AIP of $5,725 million.

Adjusted diluted EPS, excluding the impacts of foreign exchange and the acquisition of Abaxis, was $3.29 per share and
exceeded the 2018 adjusted diluted EPS target established for the AIP of $3.04 per share.

Free cash flow in 2018, excluding the impacts of foreign exchange and the acquisition of Abaxis, was $1,546 million,
which was 116% of our 2018 free cash flow target established for the AIP of $1,332 million.

Given these results, the Committee approved an
aggregate funding level of 135% of target for payment of awards under the AIP. The Committee believes this funding level recognizes Zoetis’ delivery of strong 2018 financial performance.

The threshold, target and maximum performance levels for AIP pool funding, as well as the actual results for 2018, are shown in the table below:

LOGO

The target payout levels for our NEOs were set by the Committee (and, in the case of the CEO, the Board of Directors) in February
2018. Payouts under the AIP program can range from 0% to 200% of the target level depending on actual performance.

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PERFORMANCE AWARD UNITS

Our performance award units awarded in 2016 used relative total shareholder return (“Relative TSR”) as the metric for assessing our performance for the
three-year performance period ended December 31, 2018. TSR is the appreciation of share price, including dividends, during the performance period. Relative TSR is Zoetis’ TSR as compared to the TSR over the performance period of the
“S&P 500 Group”, which we define as the companies comprising the S&P 500 stock market index as of the beginning of the performance period, excluding companies that during the performance period are acquired or no longer publicly
traded. Relative TSR was selected because we believe it best aligns the interests of our NEOs with those of our shareholders over the performance period.

Ban ben
February 2019, the Committee certified that for the 2016-2018 performance cycle, our Relative TSR was at the 93rd percentile, ranking in the top 10% of the 459 companies remaining in the S&P
500 Group at December 31, 2018. Based on this Relative TSR achievement, in accordance with the vesting matrix established at the beginning of the performance period, each 2016-2018 performance award unit vested at 200% of the established target
amount.

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EXECUTIVE COMPENSATION

CEO 2018 PERFORMANCE

In determining Mr. Alaix’ 2018
annual incentive payment, the Board of Directors and the Committee considered the strong financial results achieved by the company under Mr. Alaix’ leadership, including performance against the revenue, adjusted diluted EPS and free cash
flow metrics included in the AIP. The Board of Directors and the Committee also considered Mr. Alaix’ other 2018 achievements, including those summarized in the table below:

CEO 2018 Achievements

Financial Achievements

We continue to
create shareholder value through our strong financial performance. We delivered our sixth consecutive year of operational revenue growth and increased profitability.

Product Innovations and Approvals

In 2018, we invested
in our research and development programs with a focus on internal innovation, generating new product approvals and lifecycle innovations across our 300 product lines:

   We broadened our canine dermatology and
parasiticides portfolios with solutions like Cytopoint® (lokivetmab), which now covers allergic as well as atopic dermatitis in the U.S., and our oral parasiticide Simparica® (sarolaner) Chewables expanded rollout to additional countries outside the U.S.

   We introduced Stronghold® Plus/Revolution® Plus (selamectin and sarolaner), a topical combination parasiticide for cats that was approved in the U.S. in 2018,
following its introduction in Europe and other international markets.

   We strengthened our vaccine portfolios with market
approvals of Fostera® Gold PCV MH and Suvaxyn® Circo, providing livestock farmers innovative new solutions to help protect pigs from
porcine circovirus (PCV2) and Mycoplasma hyopneumoniae (M. hyo) and Core EQ Innovator®, the first and only equine vaccine to help protect horses from all five core equine diseases in one
injection.

Business Development and Strategic Alliances

We routinely pursue
strategically aligned business development and strategic alliance opportunities to create shareholder value in the short and long term. In 2018, we completed several transactions, including the following areas:

   Diagnostics: Acquired Abaxis, a point-of-care diagnostics company for approximately $2 billion.

   Data and Analytics: Acquired Smartbow, a developer
of smart ear-tags and monitoring systems for dairy cattle.

   R&D: Partnered with Regeneron to license
technology to develop monoclonal antibody products.

Improvements and Investments in Manufacturing Quality, Cost and Reliable Supply

We focused on
improvements in manufacturing quality, cost and reliable supply initiatives and we made critical investments to expand our manufacturing capacity:

   We met all our Supply Network Strategy milestones
and we achieved our targets for reducing inventory on hand and reducing scrap.

   Construction is progressing at our facility in
China for vaccines that help protect against the strains of animal diseases prevalent in China.

   We initiated operations at our plant in Rathdrum,
Ireland, to produce active pharmaceutical ingredients that are used in many of our key products.

   We acquired a facility in Tallaght, Ireland, to
ensure reliable supply of dairy cow teat sealant.

   We are expanding our plants in Kalamazoo, Michigan, and in Charles City, Iowa, to ensure adequate capacity for key medicines and vaccines.

Enhance Customer Experience

We made great
strides during 2018 in delighting the customer and improving the customer experience:

   In the U.S., we improved our Net Promoter Score,
an indicator of how likely customers are to recommend Zoetis, by 20% and in 2018 we also improved our Customer Satisfaction (CSAT) score from 68% to 71%.

   We completed the roll out of the eCommerce,
Pricing and Rebate Platform for our top 12 markets, making it easier for our customers in those markets to do business with Zoetis.

Employee Engagement

   The results of our 2018 Colleague Survey, in which
92% of our global employee population participated, showed an overall employee engagement rate of 85%, confirming a highly engaged workforce.

   Zoetis was named to Working Mother magazine’s
2018 “100 Best Companies” list for the fifth time; was named as a 2018 Forbes Best Mid-Sized Employer for the third consecutive year; and was named as a top 150 company to work for in Brazil by Voce
S/A magazine for the third time.

The Board of Directors and the Committee also considered the results of an anonymous 360 degree feedback survey, conducted among the
members of the ZET, in evaluating Mr. Alaix’ 2018 performance. ZET members provided their views on Mr. Alaix’ performance across various leadership dimensions, including strategic acumen and insightfulness, judgment and decision
making, team and talent building, operational effectiveness, and reputation and external relationships. The results of this survey were considered by the Board of Directors in its assessment of Mr. Alaix’ 2018 performance and were used to
provide constructive feedback to Mr. Alaix to enhance his leadership effectiveness going forward. After considering and balancing each of these inputs to Mr. Alaix’ overall 2018 performance, the Committee recommended and the Board of
Directors approved an annual incentive payout to Mr. Alaix of 136.5% of target, for an amount of $2,047,500.

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EXECUTIVE COMPENSATION

OTHER NEO 2018 PERFORMANCE

What follows are highlights of individual and business unit/function performance considered in the CEO’s evaluation of the performance of the other NEOs and the
CEO’s recommendations for their AIP payouts for 2018. In reviewing the compensation recommendations for the other NEOs and approving their AIP payouts, the Committee considered the overall performance of the company, as well as the CEO’s
assessment of each NEO’s individual performance and accomplishments relative to each NEO’s individual performance objectives that were approved by the Committee at the start of 2018.

NEO

2018 Achievements

Glenn C. David

Executive Vice President

and Chief Financial Officer (CFO)

As Executive
Vice President and CFO, Mr. David:

   Maximized the impact of U.S. tax reform, helping to lower the company’s effective tax rate for 2018 to below 19% and reduced the impact of certain one-time charges associated with the change in tax law.

   Successfully issued $1.5 billion in debt to
support the Abaxis acquisition.

   Played a key role in all aspects of the Abaxis acquisition, including evaluation of the potential financial benefits to the company and post-close integration efforts.

   Continued to improve all metrics related to
internal controls, Sarbanes-Oxley compliance, and timing of delivery of all financial reports.

   Provided effective financial leadership that
enabled the company to achieve its strong 2018 financial results.

Kristin C. Peck

Executive Vice

President and Group President, U.S. Operations, Business

Development and Strategy

As Executive Vice President and Group President, U.S. Operations, Business Development
and Strategy, Ms. Peck:

   Delivered above-market revenue growth, expanded operating margins and delivered strong income growth for U.S. Operations.

   Achieved strong growth of key and new products,
including Apoquel®, Cytopoint®, Simparica®, and Cerenia® in the companion animal space and Draxxin®, Excede®, Deccox®, Zoamix®, and Fostera® PCV Combo in the livestock space.

   Identified new sources of revenue as new companion
animal customers emerge in the evolving vet ecosystem, and maximized our growth through better net revenue management and important new commercial strategies in Pork and Poultry.

   Launched the first ever cross portfolio U.S. Pet
Owner Loyalty Program to demonstrate cross-product loyalty with over 500,000 pet owner sign-ups in the first year.

   Established a new Zoetis strategic planning
function, resulting in a new approach to digital project prioritization, creation of a Reference Lab for market assessment and strategy, and support to major Business Development initiatives.

   Enhanced the company’s product portfolio by
successfully signing and closing strategically aligned business development transactions in key focus areas such as diagnostics, genetics, data analytics, and emerging markets, including the company’s approximately $2 billion acquisition
of Abaxis, a point-of-care diagnostics company whose products help customers detect disease in animals.

Clinton A. Lewis, Jr.

Executive Vice President and Group President, International Operations, Commercial Development, Global Genetics and Aquatic
Health

As Executive Vice President and Group President, International Operations, Commercial
Development, Global Genetics and Aquatic Health, Mr. Lewis:

   Achieved strong revenue and income growth for
International Operations, growing faster than the overall animal health market globally and in each major region, and driving significant improvements in gross margin, operating margin, forecast accuracy, and inventory management.

   Achieved strong growth of key and new products,
including Apoquel®, Cytopoint®, and Simparica®.

   Achieved strong revenue and income growth in our
complementary businesses, including International Poultry BioDevices and Automation and Global Genetics.

   Played key roles in negotiating the acquisition of
the teat-sealant facility in Tallaght, Ireland; defining the rationale and securing the acquisition of Abaxis; and in defining and developing the ‘On Farm’ ruminant strategy for Europe.

   Defined a new International Diagnostics
organization structure and a new Global Diagnostics Product Management and Innovation organization as a result of the Abaxis acquisition.

Dr. Catherine A.
Knupp

Executive Vice
President

and President of Research and Development

As Executive Vice President and President of Research and Development, Dr. Knupp:

   Led efforts that generated product approvals and
lifecycle innovations across our 300 product lines worldwide.

   For companion animals:

¡  Broadened our canine dermatology and parasiticides portfolios with products like Cytopoint®, which now covers allergic as well as atopic dermatitis in the U.S., and is expanding to international markets; and our oral parasiticide,
Simparica® (sarolaner) Chewables, which continued its successful rollout with additional approvals in countries outside the U.S.

¡  Introduced Stronghold® Plus/Revolution® Plus (selamectin and sarolaner), a topical combination parasiticide for cats that was approved in the U.S. in 2018, following its introduction in Europe and other international markets.

   For livestock, strengthened our vaccine portfolios
with market approvals of Fostera® Gold PCV MH and Suvaxyn® Circo, providing livestock farmers innovative new solutions to help protect
pigs from porcine circovirus (PCV2) and Mycoplasma hyopneumoniae (M. hyo); and Core EQ Innovator®, the first and only equine vaccine to help protect horses from all five core equine diseases
in one injection.

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NEO AIP DECISIONS

In February 2018, the Committee (and, in the
case of the CEO, the Board of Directors) determined the amount of annual incentive earned by each of our NEOs and approved the final payouts to each NEO for 2018. The NEOs’ 2018 annual incentive awards were based on:

The financial performance of Zoetis (measured against targets for revenue, adjusted diluted EPS and free cash flow);

The financial performance of their respective region/business unit/function measured by annual budgets for revenue and
income before adjustments (as applicable);

The achievement of approved strategic and operational goals for their respective region/business unit/function; et

An assessment of each NEO’s individual performance relative to each executive’s performance objectives (indicated
above), including an assessment of whether such performance objectives were achieved in alignment with our Core Beliefs, which define the values and behaviors that we expect all Zoetis employees, including our NEOs, to exhibit in carrying out their
responsibilities.

The 2018 AIP awards for our NEOs reflecting the Committee’s assessment of their performance in 2018 (and, in the case of
our CEO, the Board of Directors’ assessment of his performance in 2018) are shown in the table below:

NEO

AIP Target
Amount

AIP Award

% of
Cél

AIP Award
Paid

Juan Ramón
Alaix

$

1,500,000

136.5%

$

2,047,500

Glenn C. David

$

501,000

138.0%

$

691,380

Kristin C. Peck

$

540,000

136.0%

$

734,400

Clinton A. Lewis,
Jr.

$

540,000

135.0%

$

729,000

Catherine A. Knupp

$

501,000

135.0%

$

676,350

LONG-TERM INCENTIVES (“LTI”)

Our Equity Plan is a comprehensive long-term incentive compensation plan that permits us to grant equity-based long-term compensation awards to employees and directors.
The Committee believes that equity-based long-term incentive awards align the interests of management with our shareholders and focus management on our long-term growth. In addition, the Committee believes that equity-based awards are essential to
attract and retain the talented professionals and managers needed for our continued success. In determining the size of equity-based grants, the Committee considers the number of shares available under the Equity Plan, the potential dilutive impact
of such grants on our shareholders, the individual’s position with us, the appropriate allocation of such grants based on past and projected individual and corporate performance and the level of grants awarded by our peers to similarly situated
executives.

In 2018, long-term incentive awards were delivered through a mix of one-third each of stock options, RSUs and performance award
units to approximately 200 of our senior leaders, including the NEOs. We believe that the mix of stock options (which have value only if there is an increase in the value of our stock), RSUs (which focus our executives on sustained growth) and
performance award units (which reward the company’s executives in alignment with the relative return in our shareholders’ investment in the company over the three-year performance period) that was delivered in 2018 supports our
pay-for-performance objective by tying executive awards to shareholder value accretion. Long-term incentive awards were delivered to other eligible Zoetis employees generally through RSUs.

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LTI awards vest in full on the third anniversary of the date of grant, assuming continued
employment through the vesting date and, in the case of performance award units, subject to the company’s total shareholder return over the three-year performance period relative to the total shareholder return of the S&P 500 Group. For all
LTI awards, earlier vesting may occur in connection with certain termination conditions, such as retirement, death, disability, restructuring, change in control, etc., that are generally aligned with market practice.

The three forms of LTI awards granted to our senior leaders, including the NEOs, are described below:

Stock Options Objectives

We view stock options as a form of long-term incentive that focuses and rewards executives for increasing our stock price. Ha
the stock price does not increase from the level at the date of the grant, the stock options will have no value to the executives.

   Encourage our executives to
focus on decisions that will lead to increases in the stock price for the long term

   Retain executive talent, since executives
generally must remain with the company for three years following the date of the grant before they can exercise the stock options (with exceptions for certain terminations of employment), and the options have a
ten-year term from the date of the grant

Restricted Stock Units Objectives

RSUs provide executives with the right to receive shares of our stock at the end of the three-year cliff-vesting period,
generally subject to continued employment (with exceptions for certain terminations of employment). Dividend equivalents are applied to outstanding RSUs and are paid out in shares of our stock at the same time the associated RSUs are paid
ki.

   Align the interests of
executives with those of shareholders over the vesting period

   Retain executive talent

   Encourage stock ownership by delivering shares
upon settlement

Performance Award Units Objectives

We award performance award units to enhance the alignment of executive pay with the value created for our shareholders.
Performance award units provide executives with the right to receive shares of our stock after the end of the three-year performance vesting period. The number of shares paid, if any, is generally subject to continued employment (with exceptions for
certain terminations of employment) and the company’s total shareholder return over the performance period relative to the S&P 500 Group. Dividend equivalents are applied to outstanding performance award units and are paid out in shares of
our stock at the same time the associated performance award units are paid.

   Align the interests of
executives with those of shareholders over the performance vesting period

   Retain executive talent, as performance awards
provide an opportunity for higher rewards when the company’s total shareholder return results exceed the median of the S&P 500 Group

   Encourage stock ownership by delivering shares
upon settlement in accordance with the company’s relative total shareholder return results

The performance award unit vesting schedule is as
follows:

If the company’s TSR for the 2018-2020 performance
period is:

The number of shares of stock that will vest
is:

Below the
25e percentile of the S&P 500 Group

Zero

la
25e percentile of the S&P 500 Group

50% of the target number of units

la
50e percentile of the S&P 500 Group

100% of the target number of units

At or above the 75e percentile of the S&P 500 Group

200% of the target number of units

la
number of shares that vest and are paid is determined by linear interpolation when the company’s total shareholder return is between the 25th and 50th or between the 50th and 75th percentiles of the S&P 500 Group.

ZOETIS 2019 PROXY STATEMENT 39


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EXECUTIVE COMPENSATION

NEO LTI DECISIONS

Our NEOs typically receive equity-based grants as
part of our annual grant of long-term incentive awards which occurs during the first quarter of each year. The following table sets forth the long-term incentive awards delivered to our NEOs in 2018. In determining the number of shares underlying
each applicable award, the value of RSUs is divided by the grant date closing price of Zoetis common shares, the option value is divided by the Zoetis Black-Scholes value as of the grant date and the performance award unit value is divided by the
Zoetis Monte Carlo simulation value as of the grant date (in each case, the number of underlying shares is rounded down to the nearest whole number).

NEO Total LTI
Érték
Value of Awards: Number of Shares Underlying
Awards:

Stock

Options

RSUs

puissance

Award Units

Stock
Options
RSUs puissance
Award Units

Juan Ramón
Alaix

$

8,100,000

$

2,700,000

$

2,700,000

$

2,700,000

133,070

36,865

26,908

Glenn C.
David

$

1,600,000

$

533,333

$

533,333

$

533,333

26,285

7,281

5,315

Kristin C.
Peck

$

1,500,000

$

500,000

$

500,000

$

500,000

24,642

6,826

4,983

Clinton A. Lewis,
Jr.

$

1,500,000

$

500,000

$

500,000

$

500,000

24,642

6,826

4,983

Catherine A. Knupp

$

1,500,000

$

500,000

$

500,000

$

500,000

24,642

6,826

4,983

RETIREMENT BENEFITS

Our NEOs receive
retirement benefits through Zoetis’ U.S. Savings Plan. The Savings Plan is a tax-qualified 401(k) savings plan available to all eligible U.S. employees. Participants may elect to contribute up to 60% of
their salary and annual incentive payment to the Savings Plan, subject to Internal Revenue Code (“IRC”) limitations. We match 100% of the employee contribution, up to 5% of each eligible employee’s pay. We may also contribute a
discretionary profit-sharing amount of up to 8% of each eligible employee’s pay (subject to IRC limitations). For 2018, we contributed 5.0% of each eligible employee’s pay (including the NEOs) as a profit sharing contribution.

To the extent the IRC limitations are exceeded, our Zoetis Supplemental Savings Plan is a non-qualified deferred compensation
plan that makes up for amounts that would otherwise have been contributed to the Savings Plan but could not be contributed due to IRC limitations on the amount of compensation that may be taken into account under a
tax-qualified plan ($275,000 for 2018). Eligible employees, including our NEOs, may elect to defer up to 30% of the amount by which their salary and annual incentive payment exceeds this compensation limit. We
match these deferrals at the same rate as under the Savings Plan, i.e., 100% match up to 5% of pay. In addition, our NEOs and certain other executives may elect to defer up to an additional 60% of the amount of their annual incentive payment that is
over the IRC 401(a)(17) limit. We do not match these additional deferrals. If an employee’s profit sharing contribution to the Savings Plan is limited by the compensation or contribution limit, the portion that the employee was not able to
receive in the Savings Plan is credited to the employee’s account in the Zoetis Supplemental Savings Plan.

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EXECUTIVE COMPENSATION

SEVERANCE

The Zoetis Executive Severance Plan covers our NEOs and certain other executives (currently 11 employees, including the NEOs). We do not maintain individual employment
agreements with our executives (other than agreements that are required or customary for executives outside of the U.S.). The plan provides for payment of severance benefits in the event of an involuntary termination of employment (other than for
Cause5) that is not in connection with a Change of Control5, and a higher level of benefits in the event of an involuntary termination of
employment (other than for Cause) or a termination for “Good Reason” 5 that occurs upon or within 24 months following a Change of Control. The amounts payable under the plan are shown
lent:

Severance

(Base Salary)

Folytatás

Health and

Élet
Insurance

(at active

employee cost)

Annual

Incentive

Non-Change of Control
Severance:

CEO

18 hónap

12 mois

1.5x target

Other Participants

12 mois

12 mois

1x target

Change of Control
Severance:

CEO

30 months

18 hónap

2.5x target

Other Participants

24 hónap

18 hónap

2x target

The salary payments are made as salary continuation in the case of a non-Change of Control
severance, and in a lump sum in the case of a Change of Control severance. The annual incentive payments are made in a lump sum under both circumstances. In addition to the benefits reflected in the table, we provide outplacement services to plan
participants. All benefits under the plan are subject to the participant’s execution of a general release of all claims against the company.

PERQUISITES

We maintain a policy prohibiting traditional perquisites
of employment (as determined by our Board of Directors) for our employees, including our NEOs. However, the company does provide certain benefits to employees serving outside of their home country at the company’s request, including our NEOs,
pursuant to our international assignment policy, which benefits fall into the category of perquisites or other personal benefits under applicable SEC rules. Certain benefits of this type provided to Mr. Lewis in connection with his
international assignment are included in the Summary Compensation Table under the heading “All Other Compensation”.

CORPORATE
GOVERNANCE POLICIES

STOCK OWNERSHIP REQUIREMENTS

Our
stock ownership guidelines encourage our NEOs to own and maintain a substantial stake in the company. Our guidelines are established as a multiple of each executive’s base salary. In 2018, as part of its annual review, the Committee approved an
increase to the stock ownership requirement for the CEO from 5 times to 6 times base salary, to better align with practices reported by many of the companies in our compensation peer group. Our CEO’s stock ownership was already above the 6
times base salary multiple at the time the requirement was increased.

In assessing compliance with the guidelines, we count stock held outright, unvested restricted
stock or RSUs, unvested performance award units and stock held in benefit plans. Our stock ownership guidelines are as follows:

Mr. Alaix: 6 times base salary

All other ZET members, including our NEOs: 3 times base salary

5

“Cause”, “Change of Control” and “Good Reason” are as defined in the Zoetis Executive
Severance Plan.

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EXECUTIVE COMPENSATION

A Zoetis executive must achieve the guidelines before he or she can sell any stock acquired upon the exercise of options or the vesting of other awards, other than stock
sold to satisfy the exercise price of stock options or taxes due upon the exercise of options or the vesting or settlement of other awards. Our NEOs (and all other ZET members) have five years from the establishment of the guidelines in 2013 to
achieve the stock ownership requirements. Newly hired employees and employees newly appointed to the ZET will have five years from the date of hire or appointment, as applicable, to achieve the stock ownership requirements. As of the last annual
measurement date, all our NEOs have met the stock ownership requirements.

ANTI-HEDGING AND ANTI-PLEDGING POLICIES

Zoetis maintains a policy prohibiting any of our directors or employees, including the NEOs, from “hedging” their ownership in shares of our common stock or
other equity-based interests in our company, including by engaging in short sales or trading in derivative securities relating to our common stock. Zoetis also maintains a policy prohibiting any of our directors or employees, including the NEOs,
from pledging Zoetis shares as collateral for loans or for any other purpose.

CLAW-BACK POLICY

Zoetis maintains a claw-back policy under which the Committee shall, to the extent permitted by law, make retroactive adjustments to any cash-based or equity-based
incentive compensation paid to employees, including our NEOs, where the payment was predicated upon the achievement of specified financial results that are the subject of a subsequent restatement, or where employees were found to have altered
financial or operational results used to determine award values. Additionally, our claw-back policy includes recoupment due to willful misconduct or gross negligence which caused or might reasonably be expected to cause significant business or
reputational harm to the company. The intent of the policy is to enable the company to recover any amount determined by the Committee to have been inappropriately received by the employee.

COMPENSATION RISK ASSESSMENT

In 2018, the
Committee considered whether the company’s compensation policies and practices for its employees, including the NEOs, create risks that are reasonably likely to have a material adverse effect on the company.

In evaluating a compensation risk assessment that was conducted by Willis Towers Watson, the Committee’s independent executive compensation consultant, the
Committee considered the following:

The mix of cash and equity compensation, which is balanced with a strong emphasis on long-term awards;

Goals and objectives of the company’s compensation programs, reflecting both quantitative and qualitative performance
measures and avoiding excessive weight on a single performance measure;

The design of the company’s sales incentive plans, to ensure the mix of fixed and variable compensation promotes
appropriate behaviors among participants;

Equity compensation granted in the form of stock options, restricted stock units and performance award units to provide
greater incentive to create and preserve long-term shareholder value;

Regular review of comparative compensation data to maintain competitive compensation levels in light of the company’s
industry, size and performance;

The company’s minimum stock ownership guidelines, which ensure that executive officers have a meaningful direct
ownership stake in the company and align executive officers with long-term shareholder interests;

The company’s restrictions on engaging in hedging transactions in the company’s securities; et

The company’s claw-back policy.

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EXECUTIVE COMPENSATION

Based on its evaluation in 2018, the Committee has determined, in its reasonable business
judgment, that the company’s compensation policies and practices as generally applicable to its executive officers and employees do not create risks that are reasonably likely to have a material adverse impact on the company and instead promote
behaviors that support long-term sustainability and shareholder value creation.

TAX DEDUCTIBILITY OF NEO COMPENSATION

Section 162(m) of the IRC disallows a federal income tax deduction to public companies for compensation greater than $1 million paid in any tax year to covered
executive officers. Under prior law, there was an exception to the $1 million deduction limitation for compensation that meets the requirements of “qualified performance-based compensation”. However, for tax years after 2017, this
exception has been eliminated, subject to limited transition relief that applies to certain arrangements in place as of November 2, 2017, and the group of executives covered by Section 162(m) has been expanded. Accordingly, no assurance
can be given that awards paid in 2018 and later years that were originally intended to qualify for the “qualified performance-based compensation” exception, or that were otherwise expected to be deductible prior to the change in the tax
law, will in fact be deductible.

As a general matter, while the Committee considers tax deductibility as one of several relevant factors in determining
compensation, it retains the flexibility to design and maintain executive compensation arrangements that it believes will attract and retain executive talent, even if such compensation is not deductible by the company for federal income tax
purposes.

COMPENSATION DECISIONS FOR 2019

In February 2019, the Committee approved a change to the relative weighting of the types of long-term incentive awards that are granted to the company’s senior
leaders (approximately 200 employees, including the NEOs). Beginning with long-term incentive awards granted in 2019, the weighting of our performance award units will increase from 33% to 50% of the total award, and the weighting of RSUs and stock
options will each decrease from 33% to 25% of the total award. We believe that this increase in the percentage of each NEO’s annual long-term incentive awards that is granted in the form of performance award units will further align the
interests of the NEOs with the interests of our shareholders and further enhance the link between pay and performance in our compensation program.

ZOETIS 2019 PROXY STATEMENT 43


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EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION TABLES

The following tables summarize our NEO compensation:

premier

Summary Compensation Table. The Summary Compensation Table summarizes the compensation earned by our NEOs for the
fiscal years ended December 31, 2018, 2017 and 2016, including salary earned, annual incentive plan awards, the aggregate grant date fair value of equity-based incentive awards granted to our NEOs and all other compensation paid to our NEOs.

deuxième

2018 Grants of Plan-Based Awards Table. The 2018 Grants of Plan-Based Awards Table summarizes all grants of
plan-based awards made to our NEOs during the fiscal year ended December 31, 2018.

troisième

Outstanding Equity Awards at 2018 Fiscal Year-End Table. The Outstanding
Equity Awards at 2018 Fiscal Year-End Table summarizes the outstanding equity-based incentive awards held by our NEOs as of December 31, 2018.

4

2018 Option Exercises and Stock Vested Table. The 2018 Option Exercises and Stock Vested Table summarizes our
NEOs’ option exercises and equity-based award vesting during the fiscal year ended December 31, 2018.

5

2018 Non-Qualified Deferred Compensation Table. The 2018 Non-Qualified Deferred Compensation Table summarizes the activity during 2018 and account balances under our Supplemental Savings Plan as of December 31, 2018.

6

Potential Payments upon Employment Termination Table. The Potential Payments upon Employment Termination Table
summarizes payments and benefits that would be made to our NEOs in the event of certain employment terminations, assuming such terminations occurred on December 31, 2018.

ZOETIS 2019 PROXY STATEMENT 45


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EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE

Name Year

Salary

($)

Bonus

($)

Stock
Awards(1)
($)
Option
Awards(2)
($)
Non-Equity
Incentive
plan
Compensation(3)
($)
All Other
Compensation(4)
($)

Total

($)

Juan Ramón Alaix

2018

1,200,000

5,399,942

2,699,990

2,047,500

321,968

11,669,400

Chief Executive Officer

2017

1,190,000

4,866,579

2,433,331

1,750,000

288,859

10,528,769

2016

1,150,000

4,199,957

2,099,994

1,720,000

296,675

9,466,626

Glenn C. David

2018

626,250

1,066,567

533,323

691,380

117,651

3,035,171

Executive Vice President and

2017

596,250

150,000

933,252

466,666

550,041

101,388

2,797,597

Chief Financial Officer

2016

483,030

608,223

516,651

526,676

73,526

2,208,106

Kristin C. Peck

2018

675,000

999,930

499,986

734,400

129,608

3,038,924

Executive Vice President and

2017

655,000

300,000

933,252

466,666

599,440

112,245

3,066,603

Group President, U.S.

2016

636,375

899,958

449,995

568,856

119,499

2,674,683

Operations, Business

Development and Strategy

Clinton A. Lewis, Jr.

2018

675,000

999,930

499,986

729,000

1,721,890

4,625,806

Executive Vice President and

2017

655,000

300,000

933,252

466,666

607,060

1,485,268

4,447,246

Group President, International

2016

630,054

799,972

399,998

571,303

966,604

3,367,931

Operations, Commercial

Development, Global Genetics and

Aquatic Health

Catherine A. Knupp

2018

626,250

999,930

499,986

676,350

121,425

2,923,941

Executive Vice President and

2017

582,500

300,000

933,252

466,666

534,245

99,895

2,916,558

President of Research and

2016

525,027

733,301

366,663

474,940

93,299

2,193,230

Development

(1)

The amounts shown in the “Stock Awards” column represent the aggregate grant date fair values for the Restricted
Stock Units (“RSUs”) and the performance award units granted by Zoetis in 2018, 2017 and 2016, determined in accordance with FASB ASC Topic 718 based on the assumptions and methodologies set forth in Note 14 to Zoetis’ 2018 Annual
Report on Form 10-K, filed with the SEC on February 14, 2019 (the “2018 10-K”). Further information regarding the 2018 awards is included in the 2018
Grants of Plan-Based Awards Table and the Outstanding Equity Awards at 2018 Fiscal Year-End Table. With respect to the performance award units granted by Zoetis in 2018, 2017 and 2016, the amounts included in
the “Stock Awards” column of the Summary Compensation Table above represent the target payout at the grant date based upon the probable outcome of the performance conditions. The table below shows the amount of the target payout value at
the grant date and the maximum value at the grant date assuming that the highest performance conditions would be achieved for each of the performance award units granted in 2018.

Performance Award Unit
Grants in 2018
Name Grant Date
Target Payout
($)

Maximum Value

at Grant Date

($)

Juan Ramón Alaix

2,699,949

5,399,898

Glenn C. David

533,307

1,066,614

Kristin C. Peck

499,994

999,988

Clinton A. Lewis, Jr.

499,994

999,988

Catherine A. Knupp

499,994

999,988

(2)

The amounts shown in the “Option Awards” column represent the aggregate grant date fair values of long-term
incentive awards granted to the NEOs by Zoetis in 2018, 2017 and 2016, determined in accordance with FASB ASC Topic 718 based on the assumptions and methodologies set forth in Note 14 to the 2018 10-K. Further
information regarding the 2018 awards is included in the 2018 Grants of Plan-Based Awards Table and the Outstanding Equity Awards at 2018 Fiscal Year-End Table.

(3)

The amounts shown in the “Non-Equity Incentive Plan Compensation” column
represent annual cash incentive awards earned by the NEOs under the Zoetis Annual Incentive Plan for 2018, 2017 and 2016.

46 ZOETIS 2019 PROXY STATEMENT


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EXECUTIVE COMPENSATION

(4)

The following table sets forth the component amounts presented in the “All Other Compensation” column above for
the year ended December 31, 2018:

Name

Vállalat

Contributions

Under the Zoetis

Savings Plan

(i) ($)

Vállalat

Contributions

Under the Zoetis

Supplemental

Savings Plan

(ii) ($)

Nemzetközi

Assignment

(iii) ($)

Más

(iv) ($)

All Other

Compensation

($)

Juan Ramón Alaix

11,000

281,250

29,718

321,968

Glenn C. David

25,541

90,078

2,032

117,651

Kristin C. Peck

27,500

99,916

2,192

129,608

Clinton A. Lewis, Jr.

27,500

100,678

1,590,314

3,398

1,721,890

Catherine A. Knupp

27,500

88,500

5,425

121,425

(i)

The amounts shown in this column represent the sum of profit sharing and matching contributions under the Zoetis Savings
Plan (“ZSP”), a tax-qualified retirement savings plan. Under the terms of the ZSP, the company will match up to 5% of salary compensation contributed by each employee, subject to limitations under
the U.S. Internal Revenue Code of 1986, as amended (“IRC”). The company contributions to the ZSP for Mr. Alaix and Mr. David are lower than that of the other NEOs because they reached IRC limits for contributions to the ZSP.

(ii)

The amounts shown in this column represent the sum of profit sharing and matching contributions under the Zoetis
Supplemental Savings Plan (“ZSSP”). The ZSSP is discussed in more detail in the 2018 Non-Qualified Deferred Compensation Table.

(iii)

In connection with his role of Executive Vice President and Group President of International Operations, Commercial
Development, Global Genetics and Aquatic Health, Mr. Lewis was on assignment in Ireland through May 15, 2018, when he returned to continue serving in this role in the United States. This assignment was at the company’s request and
Mr. Lewis received benefits in line with those that are generally available to all Zoetis employees serving in international assignments. In 2018 these benefits included $99,168 for housing and living costs, $48,225 for relocation services in
Ireland, and taxes of $1,442,921 paid by the company for benefits related to his assignment.

(iv)

The amounts shown in this column include the imputed income related to Zoetis’ group term life insurance coverage in
excess of $50,000.

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EXECUTIVE COMPENSATION

2018 GRANTS OF PLAN-BASED AWARDS TABLE

la
following table provides additional information about non-equity incentive awards and equity incentive awards granted to our NEOs during the fiscal year ended December 31, 2018. All stock options, RSUs
and performance award units granted to our NEOs in 2018 were granted under the 2013 Equity and Incentive Plan and the applicable award agreements. See the discussion under the heading “Long-Term Incentives” in the CD&A for further
information about these stock options, RSUs and performance award units.

Estimated Future Payouts
Under Non-Equity Incentive
Plan Awards(1)

Estimated Future Payouts
Under
Equity
Incentive Plan
Awards(2)

Minden
Más
Stock
Awards:
Number
nak,-nek
Shares
nak,-nek
Stock

or Units
(#)

All Other
Option
Awards:
Száma
Securities
Underlying

Options
(#)

Exercise
or Base
Price of
Option

Awards(3)
($/Sh)

Grant
Date Fair
Value of
Stock
et
Option

Awards(4)
($)

Name

Díj

Grant
Date

Threshold
($)

Cél

($)

Maximális
($)

Threshold
(#)

Cél
(#)

Maximális
(#)

Juan Ramón Alaix

Annual Incentive

0 1,500,000 3,000,000

Stock Options (5)

2/13/2018 133,070 73.24 2,699,990

Restricted Stock Units (5)

2/13/2018 36,865 2,699,993

Performance Award Units (6)

2/13/2018

0

26,908

53,816

2,699,949

Glenn C. David

Annual Incentive

0 501,000 1,002,000

Stock Options (5)

2/13/2018 26,285 73.24 533,323

Restricted Stock Units (5)

2/13/2018 7,281 533,260

Performance Award Units (6)

2/13/2018

0

5,315

10,630

533,307

Kristin C. Peck

Annual Incentive

0 540,000 1,080,000

Stock Options (5)

2/13/2018 24,642 73.24 499,986

Restricted Stock Units (5)

2/13/2018 6,826 499,936

Performance Award Units (6)

2/13/2018

0

4,983

9,966

499,994

Clinton A. Lewis, Jr.

Annual Incentive

0 540,000 1,080,000

Stock Options (5)

2/13/2018 24,642 73.24 499,986

Restricted Stock Units (5)

2/13/2018 6,826 499,936

Performance Award Units (6)

2/13/2018

0

4,983

9,966

499,994

Catherine A. Knupp

Annual Incentive

0 501,000 1,002,000

Stock Options (5)

2/13/2018 24,642 73.24 499,986

Restricted Stock Units (5)

2/13/2018 6,826 499,936

Performance Award Units (6)

2/13/2018

0

4,983

9,966

499,994

(1)

These amounts represent the threshold, target and maximum non-equity ösztönző
plan awards under the Zoetis Annual Incentive Plan for 2018.

(2)

These amounts represent the threshold, target and maximum share payouts under our performance award unit program for the
performance period beginning January 1, 2018 and ending December 31, 2020. The payment for threshold performance is 0%. The target payout is equal to 100% of the granted units and represents the number of performance award units that may
be earned for achieving the target level of the performance goal. The maximum payout is 200% of the target number of performance award units and represents the number of performance award units that may be earned for achieving the maximum level of
the performance goal. Dividend equivalent units are accrued through the payout date and increase the target number of performance award units.

(3)

The exercise price of the stock options is the closing price of the company’s stock on the grant date.

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EXECUTIVE COMPENSATION

(4)

The amounts shown in this column represent the award values as of the grant date, computed in accordance with FASB ASC
Topic 718 based on the assumptions and methodologies set forth in Note 14 to the 2018 10-K. The stock options are shown using a Black-Scholes value of $20.29 on the grant date, the RSUs are shown using the
company’s grant date closing stock price of $73.24, and the performance award units are shown using a Monte Carlo simulation model value of $100.34 on the grant date. For each NEO, the target grant date values of the stock option, RSU and
performance award unit grants were intended to be equally weighted; however, there are slight differences in value due to rounding down upon the conversion from dollar values to a whole number of options or units using the grant date values.

(5)

These Zoetis stock option and RSU awards are subject to three-year cliff vesting and vest 100% on the third anniversary
of the grant date.

(6)

These performance award units are subject to three-year cliff vesting and are earned based on achievement of a
performance goal measured over a three-year performance period beginning January 1, 2018 and ending December 31, 2020. The performance goal is based on the company’s TSR results as compared to the TSR results of the companies
comprising the S&P 500 Group. The number of shares paid under these performance award units, if any, ranges from 0% to 200% of the target number of shares (including accrued dividend equivalent units) and depends upon the extent to which the
performance goal is achieved, as determined by the Committee after the end of the performance period.

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EXECUTIVE COMPENSATION

OUTSTANDING EQUITY AWARDS AT 2018 FISCAL YEAR-END TABLE

The following table summarizes the Zoetis equity-based long-term incentive awards made to our NEOs that were outstanding as of December 31, 2018.

Option Awards Stock Awards

Name

Grant
Date
Száma
Securities
Underlying
Unexercised
Options
Exercisable
(#)
Száma
Securities
Underlying
Unexercised
Options
Unexercisable
(#)(1)
Option
Exercise
Price
($)
Option
Expiration
Date

Number
of Shares or
Units of

Stock
That Have
Not Vested

(#)(1)(2)

Market
Value of
Shares or
Units of
Stock That
aucun
Vested
($)(3)

Equity
Incentive Plan
Awards:
Number
nak,-nek
Unearned
Shares,

Units, or
Other Rights

That Have
Not Vested
(#)(2)(4)

Equity
Incentive Plan
Awards:
Market or

Payout Value
of Unearned
Shares, Units
or Other
Rights That
aucun
Vested

($)(3)

Juan Ramón Alaix(7)

3/4/2014 312,109 30.89 3/3/2024
2/27/2015 159,954 46.09 2/26/2025
2/19/2016 187,667 41.83 2/18/2026 136,449 (6) 11,671,847
2/14/2017 170,163 55.02 2/13/2027 44,724 3,825,691 33,127 2,833,684
2/13/2018

133,070

73.24

2/12/2028

37,027

3,167,290

27,026

2,311,804

Glenn C. David

2/27/2015 7,712 46.09 2/26/2025
2/19/2016 8,191 41.83 2/18/2026 5,955 (6) 509,391
8/22/2016 21,301 51.23 8/21/2026 5,449 466,107
12/6/2016 11,144 50.22 12/5/2026 3,026 258,844
2/14/2017 32,634 55.02 2/13/2027 8,577 733,677 6,353 543,436
2/13/2018

26,285

73.24

2/12/2028

7,313

625,554

5,338

456,613

Kristin C. Peck(7)

1/31/2013 40,385 26.00 (5) 1/31/2023
3/4/2014 78,651 30.89 3/3/2024
2/27/2015 37,132 46.09 2/26/2025
2/19/2016 40,214 41.83 2/18/2026 29,238 (6) 2,501,019
2/14/2017 32,634 55.02 2/13/2027 8,577 733,677 6,353 543,436
2/13/2018

24,642

73.24

2/12/2018

6,856

586,462

5,005

428,128

Clinton A. Lewis, Jr.(7)

1/31/2013 42,796 26.00 (5) 1/31/2023
3/4/2014 46,816 30.89 3/3/2024
2/27/2015 28,563 46.09 2/26/2025
2/19/2016 35,746 41.83 2/18/2026 25,990 (6) 2,223,185
2/14/2017 32,634 55.02 2/13/2027 8,577 733,677 6,353 543,436
2/13/2018

24,642

73.24

2/12/2018

6,856

586,462

5,005

428,128

Catherine A. Knupp(7)

2/27/2015 28,563 46.09

2/26/2025

2/19/2016 32,767 41.83 2/18/2026 23,824 (6) 2,037,905
2/14/2017 32,634 55.02 2/13/2027 8,577 733,677 6,353 543,436
2/13/2018

24,642

73.24

2/12/2018

6,856

586,462

5,005

428,128

(1)

These Zoetis stock options, RSUs and performance award units are subject to a three-year cliff vesting schedule and vest
100% on the third anniversary of the grant date, and performance award units are earned based on achievement of a performance goal measured over a three-year performance period.

(2)

These amounts are rounded to the nearest whole unit and include accrued dividend equivalent units applied after the
grant date.

(3)

Based on Zoetis’ closing stock price on December 31, 2018 of $85.54.

(4)

These performance award units are subject to three-year cliff vesting and are earned, in the case of awards granted in
2017, based on achievement of a performance goal over a three-year performance period beginning January 1, 2017 and ending December 31, 2019, and in the case of awards granted in 2018, based on achievement of a performance goal over a
three-year performance period beginning January 1, 2018 and ending December 31, 2020. Each performance goal is based on the company’s TSR results as compared to the TSR results of the companies comprising the S&P 500 Group. la
number of shares paid under these performance award units, if any, ranges from 0% to 200% of the target number of shares and depends upon the extent to which the performance goal is achieved, as determined by the Committee after the end of the
performance period.

50 ZOETIS 2019 PROXY STATEMENT


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EXECUTIVE COMPENSATION

(5)

Zoetis’ Initial Public Offering (“IPO”) stock price on February 1, 2013.

(6)

These amounts consist of Zoetis RSUs that remained unvested as of December 31, 2018, and performance award units
for which the performance period ended on December 31, 2018 and the level of performance has been determined. The table below shows these amounts for each NEO as of December 31, 2018.

Name RSU Awards Earned Performance
Award Units
Total Number of Units
that Have Not Vested

Juan Ramón Alaix

51,171

85,278

136,449

Glenn C. David *

2,233

3,722

5,955

Kristin C. Peck

10,964

18,274

29,238

Clinton A. Lewis, Jr.

9,746

16,244

25,990

Catherine A. Knupp

8,934

14,890

23,824

*

Mr. David’s number of RSUs and earned performance award units are lower than those of other NEOs because he
had not yet been appointed CFO at the time these awards were granted.

(7)

Certain NEOs were Pfizer employees at the time of Zoetis’ IPO in February 2013 and continue to hold Pfizer 7-Year
Total Shareholder Return Units (“TSRUs”), granted on February 23, 2012 at a grant price of $21.03. These TSRUs vested three years from the grant date and are settled on the seventh anniversary
of the grant date. The value earned for each TSRU is equal to the difference between the settlement price (the 20-day average of the closing prices of Pfizer common stock ending on the settlement date) and the
grant price (the closing price of Pfizer common stock on the date of grant) plus the value of dividend equivalents accumulated over the term. This value, if any, is converted into shares of Pfizer common stock by dividing it by the settlement price.
At December 31, 2018, the number of Pfizer 7-Year TSRUs held by Mr. Alaix, Ms. Peck, Mr. Lewis and Dr. Knupp, were 45,468, 19,427, 5,942 and 5,714, respectively. Mr. David did not
hold Pfizer TSRUs at December 31, 2018.

ZOETIS 2019 PROXY STATEMENT 51


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EXECUTIVE COMPENSATION

2018 OPTION EXERCISES AND STOCK VESTED TABLE

la
following table provides information about the number and value of shares acquired upon vesting of RSUs held by, and exercises of stock options by, our NEOs during 2018.

Option Awards RSU Awards Performance Award Units(1)
Name

Number of

Shares Acquired

on Exercise

(#)

Érték

Realized

on Exercise

($)(2)

Number of

Shares Acquired

plus
Vesting
(#)

Value Realized
on Vesting
($)(3)

Number of

Shares Acquired

on Vesting

(#)

Érték

Realized

on Vesting

($)(3)

Juan Ramón Alaix(5)

285,306

19,213,699

41,412(4)

3,382,118

60,458(4)

4,937,605

Glenn C. David

16,385

1,004,639

1,995

162,932

2,914

237,986

Kristin C. Peck(5)

39,500

2,283,528

9,612