Deviation Report sample - imercer · SAMPLE. January 2013 ... 9 Head of Supply & Logistics Head of Supply & Logistics Germany EUR 60 ... January 2013 Remuneration Deviation Report

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1 MArCH 2014

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January 2013 Remuneration Deviation Report

ContentsPage

1. Introduction 1

2. Summary 3

3. Report Definitions 4

3.1. Terms

3.2. Statistics

3.3. Data Confidentiality Guidelines

3.4. Valuation Criteria

4. Remuneration Deviation Analysis 6

4.1. Annual Base Salary

4.2. Total Cash Compensation (Actual)

4.3. Total Remuneration

5. Remuneration Deviation Charts 9




6. Regressed Data Charts 12




Contents

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1. Introduction

1.1. About Mercer

1.2. About the Report

Introduction

This report is prepared for Company ABC and contains remuneration deviation analysis for 10 positions in Germany. The deviation analysis covers comparison of the following compensation elements to the market values:

Annual Base SalaryAnnual Total Cash ActualAnnual Total Remuneration

The remuneration deviation analysis of the positions is represented through the Deviation Analysis Tables and Charts, containing the different statistical measures for each of the elements that compose the Remuneration Package generally offered to the above positions. The reference market is All industries regression line, based on TRS 2012.

Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer's 20,000 employees are based in more than 40 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital.

© 2013 Mercer LLC January

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January 2013 Remuneration Deviation ReportIntroduction

1.3. Confidentiality

Human Resource professionals who deal regularly with data are aware of the variance that may exist in databases. Data may fluctuate slightly from year to year due to changes in the participant base. It is also important to note that within a sample, a significant amount of data may be reported by one organization. It is also possible for data to change drastically from year to year due to industry-related factors and economic conditions.

Mercer is providing this information to its clients to help them to make independent decisions regarding salaries and benefits. Because the exchange of salary and benefit information among competitors may be construed in certain circumstances as a means to facilitate an antitrust violation, Mercer has taken appropriate steps in collecting and disseminating this information in order to avoid such perceptions.

The information and data contained in this report are for information purposes only and are not intended nor implied to be a substitute for professional advice. In no event will Mercer be liable to you or to any third party for any decision made or action taken in reliance of the results obtained through the use of the information and/or data contained or provided herein.

To ensure the confidentiality of all data, a minimum number of observations is required in order for statistics to be displayed. Three organizations must report at least three observations for a variable in order for the mean to be displayed. Four organizations and four observations are required for display of the median. Five organizations reporting at least five observations are required to display 25th and 75th Percentiles. Where there has been insufficient data for analysis, this has been indicated with “--“.


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2. Summary

PIC Position Title Benchmark Title Country Currency PC Annual Base Salary Total Cash Compensation (Actual) Total Remuneration

1 CEO CEO Germany EUR 65 = = =

2 CFO CFO Germany EUR 63 ▲ ▲ ▲

3 COO COO Germany EUR 63 ▲ = ▲

4 Head of IT Head of IT Germany EUR 62 ▲ = ▲

5 Head of HR Head of HR Germany EUR 62 = = =

6 Head of Sales Head of Sales Germany EUR 61 = = =

7 Head of Marketing Head of Marketing Germany EUR 61 ▼ ▼ ▼

8 Head of Manufacturing Head of Manufacturing Germany EUR 60 ▼ ▼ =

9 Head of Supply & Logistics Head of Supply & Logistics Germany EUR 60 ▼ ▼ ▼

10 Head of Corporate Affairs Head of Corporate Affairs Germany EUR 59 ▼ ▼ ▼

= position is within lower and upper quartiles

▲ position is above upper quartile

▼ position is below lower quartile

-- no position or market data for comparison

Summary


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3. Report Definitions

3.1. Terms

Annual Base Salary

Total Cash Compensation (Actual)

Total Direct Compensation

Total Remuneration

3.2. Statistics

25th Percentile (25th %ile)

Median

75th Percentile (75th %ile)

The data point that is higher than 50% of all other data in the sample when ranked from low to high. Also known as the 50th percentile.

The data point that is higher than 25% of all other data in the sample when ranked from low to high. Also known as the first quartile.

Includes Total Guaranteed Cash Compensation plus the annualized value of any actual Short-term Incentive, Sales Incentive, Profit Sharing, or Other Incentive awards paid out on performance over a period of 12 months or less. The figures reported reflect the actual amounts of the awards received over the last 12 months.

Includes Total Cash Compensation (Actual) plus the annualized value of any Long-term Incentive (LTI) awards, valued using Black-Scholes methodology for appreciation-based awards.

Includes Total Direct Compensation plus the annualized value of the benefits: retirement plan, life and medical insurance, motor vehicle, etc.

We provide below an explanation of the Compensation Item terms used in the Remuneration Tables:

Report Definitions

Includes only annualized base salary (Monthly Base Salary x Number of Months Paid).

The data point that is higher than 75% of all other data in the sample when ranked from low to high. Also known as the third quartile.


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January 2013 Remuneration Deviation ReportReport Definitions

3.3. Data Confidentiality Guidelines

Average Median Quartile

Minimum No. of Organizations 3 4 5

Minimum No. of Observations 3 4 5

* Where there has been insufficient data for analysis to show given statistics, this has been indicated with “--“.

3.4. Valuation Criteria

To ensure confidentiality, the data shown is determined by a minimum number of organizations and number of observations, as summarised in the table below:

The valuation of benefits has been made according to the “employee value” i.e. we calculate the gross income necessary for the employee to purchase the same component of remuneration privately. This permits to develop all the valuations in a consistent way, giving the possibility to compare all of them with the same tool.


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4.1. Annual Base Salary (EUR)

PIC Position Title Benchmark Title Country Currency PC Annual Base Salary

25th Percentile Median 75th

Percentile25th

Percentile Median 75th Percentile

1 CEO CEO Germany EUR 65 268,000 134% 110% 89% 199,381 243,371 302,204

2 CFO CFO Germany EUR 63 260,000 152% 127% 106% 171,370 204,510 244,853

3 COO COO Germany EUR 63 247,000 144% 121% 101% 171,370 204,510 244,853

4 Head of IT Head of IT Germany EUR 62 245,000 154% 131% 111% 158,920 187,473 220,302

5 Head of HR Head of HR Germany EUR 62 198,000 125% 106% 90% 158,920 187,473 220,302

6 Head of Sales Head of Sales Germany EUR 61 184,000 125% 107% 93% 147,402 171,854 198,152

7 Head of Marketing Head of Marketing Germany EUR 61 135,750 92% 79% 69% 147,402 171,854 198,152

8 Head of Manufacturing Head of Manufacturing Germany EUR 60 120,000 88% 76% 67% 136,746 157,537 178,174

9 Head of Supply & Logistics Head of Supply & Logistics Germany EUR 60 105,000 77% 67% 59% 136,746 157,537 178,174

10 Head of Corporate Affairs Head of Corporate Affairs Germany EUR 59 107,000 84% 74% 67% 126,885 144,413 160,157

Source: Total Remuneration Survey 2012

Remuneration Deviation Analysis

Company data Market Annual Base SalaryDeviation %


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4.2. Total Cash Compensation (Actual) (EUR)

PIC Position Title Benchmark Title Country Currency PCTotal Cash

Compensation (Actual)


Percentile25th













Company data Market Total Cash Compensation (Actual)Deviation %



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4.3. Total Remuneration (EUR)

PIC Position Title Benchmark Title Country Currency PC Total Remuneration


Percentile25th













Company data Market Total RemunerationDeviation %



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5.1. Company data vs. Market - Annual Base Salary (EUR)

Remuneration Deviation Charts

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CEO CFO COO Head of IT Head of HR Head of Sales Head of Marketing Head ofManufacturing

Head of Supply &Logistics

Head of CorporateAffairs

Market: Median to 75th Percentile

Market: 25th Percentile to Median

Company Data


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5.2. Company data vs. Market - Total Cash Compensation (Actual) (EUR)


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Company Data


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5.3. Company data vs. Market - Total Remuneration (EUR)


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Company Data


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6.1. Company data vs. Market Regression - Annual Base Salary (EUR)

Regressed Data Charts

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40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

75th Percentile

Median

25th Percentile

Company data


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6.2. Company data vs. Market Regression - Total Cash Compensation (Actual) (EUR)


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40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

75th Percentile

Median

25th Percentile

Company data


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6.3. Company data vs. Market Regression - Total Remuneration (EUR)


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40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

75th Percentile

Median

25th Percentile

Company data


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Copyright 2014 Mercer LLC. All rights reserved.

Argentina

Australia

Austria

Belgium

Brazil

Canada

Chile

China

Colombia

Denmark

Finland

France

Germany

Hong Kong

Hungary

India

Indonesia

Ireland

Italy

Japan

Malaysia

Mexico

Netherlands

New Zealand

Norway

Philippines

Poland

Portugal

Saudi Arabia

Singapore

South Africa

South Korea

Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

United Arab Emirates

United Kingdom

United States

Venezuela

For further information, please contact your local Mercer office or visit our web site at:

www.Imercer.com

Documents

Deviation Report sample - imercer · SAMPLE. January 2013 ... 9 Head of Supply & Logistics Head of Supply & Logistics Germany EUR 60 ... January 2013 Remuneration Deviation Report