Global Deviation Analysis v1.70 - imercer US 2014 Introduction Global Deviation Analysis 1. Introduction 1.1. About Mercer 1.2. About the Report - Austria - Belgium - Switzerland -

global deviation analysiscompany abcprepared by:

peer-review by:

4 APrIL 2014

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April 2014 Global Deviation Analysis

ContentsPage

1. Introduction 1

1.1. About Mercer

1.2. About the Report

1.3. Aggregate Compensation Values

1.4. Statistics

1.5. Confidentiality

2. Compensation Practice Overview 3

2.1. Practice Overview

2.2. Comparison of Practice to Market

3. Compensation Practice by Country 22

4. Global Market Comparison 29

4.1. Global Market Comparison - by Country

4.2. Global Market Comparison - Distribution Chart

5. General Comments 37

Contents

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April 2014 Introduction Global Deviation Analysis

1. Introduction

1.1. About Mercer

1.2. About the Report

- Austria - Belgium - Switzerland - Germany - Netherlands

- Denmark - Finland - Italy - Norway - Spain

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.

This report contains an analysis on the Total Direct Compensation Package for Company ABC in multiple entities located in the following countries:

Market data used in the analyses is the regressed data by position class. Company data was submitted by Company ABC to the Total Remuneration Surveys in the countries covered by this analysis.

For each individual their compa-ratio was calculated as the percentage relation of a compensation element value to the market regressed median at the individual's PC. All aggregate analyses displayed in this report are based on these individual compa-ratios.

The compensation analysis is represented through the charts, containing comparison to the market and also the statistical measures indicating the company's internal equity. The analysis by country, by position class (PC), and by individual is performed. The results are displayed for the elements that compose the Total Direct Compensation Package.

© 2014 Mercer LLC April

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April 2014 Introduction Global Deviation Analysis

1.3. Aggregate Compensation Values

Annual Base Salary

Total Cash Compensation (Actual)

Total Direct Compensation

1.4. Statistics

1st Quartile (Q1)

Average

Median

3rd Quartile (Q3)

1.5. Confidentiality

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 Base Salary plus the annualized value of guaranteed allowances, cash benefits, any target Short-term Incentive (STI), 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 only annualized base salary (Monthly Base Salary x Number of Months Paid).

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

The sum of all data reported divided by the number of observations in the sample. Also known as mean.

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 thant he third quartile of all other data in the sample when ranked from low to high. Also known as the 75th percentile.

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.

Mercer is providing this information to its clients to help them make independent decisions regarding salaries and incentives. Because the exchange of salary and incentives 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.

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.


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2. COMPENSATION PRACTICE OVERVIEW

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2.1. Practice Overview

Countries where the standard deviation is below 20% are considered to be internally consistent. Countries with the standard deviation above this level are the ones with high internal differences in pay.

Compensation Practice Overview

In this subsection data is grouped by country. Each country is represented by its flag on the chart.

The positioning of the country on the chart is defined by two factors.

Countries where the average compa-ratio falls within the range of 80-120% are considered to be broadly aligned with the market. Countries that fall outside this range are considered as below or above the market.

The second factor is the internal equity measured by the standard deviation of individual compa-ratios within the country. The standard deviation is a measure of how widely values are dispersed from the average value (the mean). This figure says how much variation from the average compa-ratio exists within a country. This is displayed on the horizontal axis.

The first factor is the external competitiveness of the company's data measured by the average compa-ratio for the country. This is displayed on the vertical axis.

The proposed confidence levels are indicative, as for certain companies standard deviation above 20% may be considered consistent.


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2.1.1. Practice Overview - Annual Base Salary


In the Market

Above the Market

Below the Market Consistent Inconsistent

Inconsistent

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

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Internal Equity

Consistent


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April 2014 Global Deviation Analysis Compensation Practice Overview

2.1.2. Practice Overview - Total Cash Compensation (Actual)

In the Market

Above the Market


Inconsistent

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Ext

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Internal Equity

Consistent


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2.1.3. Practice Overview - Total Direct Compensation

In the Market

Above the Market


Inconsistent

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Ext

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Internal Equity

Consistent


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2.1.4. Comments to Practice Overview

- Sample comment

- Sample comment

- Sample comment

- Sample comment



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2.2. Comparison of Practice to Market


In this subsection data is grouped by country and by position class. A flag on the chart represents all individuals from a given country at a given PC.

The positioning of the country in the chart is defined by two factors. One is a position class shown on the horizontal axis. The other one is the external competitiveness of the company's data measured by the average compa-ratio for individuals at the given position class in the country. This is displayed on the vertical axis.

Countries where the average compa-ratio falls within the range of 80-120% are considered to be broadly aligned with the market. Countries that fall outside this range are considered as below or above the market.


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2.2.1. Comparison of Practice to Market per PC and Country - Annual Base Salary - PC 40-45


Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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Position Class

40 41 42 43 44 45


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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ness

Position Class

46 47 48 49 50 51 52


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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ness

Position Class

53 54 55 56 57


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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peti

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ness

Position Class

58 59 60 61 62 63


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2.2.2. Comparison of Practice to Market per PC and Country - Total Cash Compensation (Actual) - PC 40-45


Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

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Position Class

40 41 42 43 44 45


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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ness

Position Class

46 47 48 49 50 51 52


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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Position Class

53 54 55 56 57


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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ness

Position Class

58 59 60 61 62 63


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2.2.3. Comparison of Practice to Market per PC and Country - Total Direct Compensation - PC 40-45


Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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Position Class

40 41 42 43 44 45


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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ness

Position Class

46 47 48 49 50 51 52


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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peti

tive

ness

Position Class

53 54 55 56 57


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Median

40%

60%

80%

100%

120%

140%

160%

180%

200%

Ext

erna

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peti

tive

ness

Position Class

58 59 60 61 62 63


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2.2.4. Comments to Comparison of Practice to Market

- Sample comment

- Sample comment

- Sample comment

- Sample comment



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3. COMPENSATION PRACTICE BY COUNTRY

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3.1. Compensation Practice by Country

Compensation Practice by Country

In this section data is grouped by country and by position class. Each cell in the table represents all individuals from a given country at a given PC.

The content of each cell describes the relation of average compensation at the position class to the market statistics.

Each compensation element is presented in a separate table.


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Q1 - Med.

< Q1

--

Austria Belgium Switzerland Germany Netherlands Denmark Finland Italy Norway Spain

-- -- -- > Q3 -- -- -- Q1 - Med. -- --

-- -- -- +/- 5% of Med. Med. - Q3 -- -- < Q1 -- --

-- > Q3 -- Med. - Q3 -- -- -- > Q3 -- Med. - Q3

> Q3 -- > Q3 < Q1 > Q3 > Q3 -- < Q1 Med. - Q3 < Q1

+/- 5% of Med. +/- 5% of Med. -- < Q1 > Q3 -- > Q3 Med. - Q3 +/- 5% of Med. > Q3

Q1 - Med. Med. - Q3 -- < Q1 Q1 - Med. -- < Q1 < Q1 +/- 5% of Med. > Q3

< Q1 -- -- -- Q1 - Med. > Q3 > Q3 +/- 5% of Med. Med. - Q3 --

< Q1 > Q3 > Q3 -- < Q1 > Q3 > Q3 > Q3 > Q3 --

< Q1 -- > Q3 -- < Q1 -- > Q3 +/- 5% of Med. +/- 5% of Med. > Q3

< Q1 > Q3 > Q3 +/- 5% of Med. < Q1 > Q3 Med. - Q3 > Q3 +/- 5% of Med. > Q3

< Q1 > Q3 Med. - Q3 > Q3 < Q1 > Q3 -- +/- 5% of Med. +/- 5% of Med. > Q3

< Q1 > Q3 +/- 5% of Med. > Q3 < Q1 > Q3 > Q3 +/- 5% of Med. +/- 5% of Med. > Q3

-- -- +/- 5% of Med. Med. - Q3 < Q1 -- +/- 5% of Med. > Q3 Q1 - Med. > Q3

< Q1 > Q3 < Q1 > Q3 -- > Q3 -- > Q3 -- > Q3

57

53

52

51

PC

60

59

3.1.1. Salary Policy - Summary Results by PC – Annual Base Salary

61

> Q3

Med. - Q3

+/- 5% of Med.

above Q3 – salary policy is positioned towards the top end of the market

50


between Q1 and Median - 5% – salary policy is positioned between 1st quartile and median

below Q1 – salary policy is positioned towards the low end of the market

No Market Data

between Median + 5% and Q3 – salary policy is positioned between the median and 3rd quartile

+/- 5% of Median – salary policy is positioned within 5% of the median

58

56

55

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62

63


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Q1 - Med.

< Q1

--

Austria Belgium Switzerland Germany Netherlands Denmark Finland Italy Norway SpainPC

3.1.1. Salary Policy - Summary Results by PC – Annual Base Salary

> Q3

Med. - Q3

+/- 5% of Med.

above Q3 – salary policy is positioned towards the top end of the market


between Q1 and Median - 5% – salary policy is positioned between 1st quartile and median


No Market Data

between Median + 5% and Q3 – salary policy is positioned between the median and 3rd quartile

+/- 5% of Median – salary policy is positioned within 5% of the median

-- > Q3 -- +/- 5% of Med. +/- 5% of Med. > Q3 > Q3 > Q3 -- +/- 5% of Med.

-- > Q3 Q1 - Med. > Q3 -- > Q3 Med. - Q3 Med. - Q3 +/- 5% of Med. > Q3

-- > Q3 -- > Q3 -- -- -- > Q3 +/- 5% of Med. > Q3

-- > Q3 -- Med. - Q3 -- > Q3 < Q1 -- -- Med. - Q3

-- -- -- > Q3 -- -- -- -- -- > Q3

-- > Q3 -- > Q3 -- -- -- -- -- > Q3

-- > Q3 -- > Q3 -- > Q3 -- -- -- > Q3

-- -- -- > Q3 -- -- -- -- -- --

-- -- -- -- -- -- -- -- -- --

-- -- -- -- -- -- -- -- -- --

41

40

49

48

47

45

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Q1 - Med.

< Q1

--


-- -- -- > Q3 -- -- -- Q1 - Med. -- --

-- -- -- +/- 5% of Med. > Q3 -- -- < Q1 -- --

-- Med. - Q3 -- +/- 5% of Med. -- -- -- > Q3 -- Med. - Q3

> Q3 -- > Q3 < Q1 Med. - Q3 > Q3 -- Med. - Q3 Med. - Q3 --

Med. - Q3 Med. - Q3 -- < Q1 > Q3 -- > Q3 Med. - Q3 Med. - Q3 > Q3

Q1 - Med. > Q3 -- < Q1 Q1 - Med. -- -- < Q1 +/- 5% of Med. > Q3

< Q1 -- -- -- Q1 - Med. > Q3 > Q3 +/- 5% of Med. > Q3 --

< Q1 > Q3 > Q3 -- < Q1 > Q3 > Q3 > Q3 > Q3 --

< Q1 -- > Q3 -- Q1 - Med. -- > Q3 +/- 5% of Med. Med. - Q3 > Q3

< Q1 > Q3 > Q3 +/- 5% of Med. < Q1 > Q3 > Q3 Med. - Q3 +/- 5% of Med. > Q3

< Q1 > Q3 > Q3 > Q3 < Q1 > Q3 -- +/- 5% of Med. Med. - Q3 > Q3

< Q1 > Q3 +/- 5% of Med. > Q3 Q1 - Med. > Q3 > Q3 +/- 5% of Med. +/- 5% of Med. Med. - Q3

-- -- +/- 5% of Med. +/- 5% of Med. < Q1 -- Med. - Q3 Med. - Q3 Q1 - Med. > Q3

< Q1 > Q3 < Q1 > Q3 -- > Q3 -- Med. - Q3 -- > Q350

54

63

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60

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58

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55

53

52

51

PC


> Q3 above Q3 – salary policy is positioned towards the top end of the market between Q1 and Median - 5% – salary policy is positioned between 1st quartile and median

Med. - Q3 between Median + 5% and Q3 – salary policy is positioned between the median and 3rd quartile


+/- 5% of Med. +/- 5% of Median – salary policy is positioned within 5% of the median No Market Data

3.1.2. Salary Policy - Summary Results by PC – Total Cash Compensation (Actual)


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Q1 - Med.

< Q1

--







3.1.2. Salary Policy - Summary Results by PC – Total Cash Compensation (Actual)

-- > Q3 -- +/- 5% of Med. > Q3 > Q3 > Q3 Med. - Q3 -- +/- 5% of Med.

-- > Q3 Q1 - Med. Med. - Q3 -- > Q3 > Q3 +/- 5% of Med. +/- 5% of Med. > Q3

-- > Q3 -- > Q3 -- -- -- > Q3 +/- 5% of Med. > Q3

-- > Q3 -- +/- 5% of Med. -- > Q3 < Q1 -- -- Med. - Q3

-- -- -- > Q3 -- -- -- -- -- > Q3

-- > Q3 -- > Q3 -- -- -- -- -- > Q3

-- > Q3 -- > Q3 -- > Q3 -- -- -- > Q3

-- -- -- > Q3 -- -- -- -- -- --

-- -- -- -- -- -- -- -- -- --

-- -- -- -- -- -- -- -- -- --

47

46

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40

42

49

48


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Q1 - Med.

< Q1

--


-- -- -- > Q3 -- -- -- Q1 - Med. -- --

-- -- -- Med. - Q3 > Q3 -- -- Q1 - Med. -- --

-- Med. - Q3 -- Med. - Q3 -- -- -- > Q3 -- > Q3

> Q3 -- Med. - Q3 Q1 - Med. > Q3 > Q3 -- > Q3 Med. - Q3 --

Med. - Q3 Med. - Q3 -- < Q1 > Q3 -- > Q3 Med. - Q3 Med. - Q3 > Q3

Q1 - Med. > Q3 -- < Q1 Q1 - Med. -- -- < Q1 +/- 5% of Med. > Q3

< Q1 -- -- -- Q1 - Med. > Q3 > Q3 +/- 5% of Med. > Q3 --

< Q1 > Q3 > Q3 -- < Q1 > Q3 > Q3 > Q3 > Q3 --

< Q1 -- > Q3 -- Q1 - Med. -- Med. - Q3 +/- 5% of Med. Med. - Q3 > Q3

< Q1 > Q3 > Q3 +/- 5% of Med. < Q1 > Q3 > Q3 Med. - Q3 +/- 5% of Med. > Q3

< Q1 > Q3 > Q3 > Q3 < Q1 > Q3 -- +/- 5% of Med. +/- 5% of Med. > Q3

< Q1 > Q3 +/- 5% of Med. > Q3 Q1 - Med. > Q3 > Q3 +/- 5% of Med. +/- 5% of Med. Med. - Q3

-- -- Q1 - Med. +/- 5% of Med. < Q1 -- Med. - Q3 Med. - Q3 Q1 - Med. > Q3

< Q1 > Q3 < Q1 > Q3 -- > Q3 -- Med. - Q3 -- > Q350

54

63

62

61

60

59

58

57

56

55

53

52

51

PC






3.1.3. Salary Policy - Summary Results by PC – Total Direct Compensation


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Q1 - Med.

< Q1

--







3.1.3. Salary Policy - Summary Results by PC – Total Direct Compensation

-- > Q3 -- +/- 5% of Med. > Q3 > Q3 > Q3 Med. - Q3 -- +/- 5% of Med.

-- > Q3 Q1 - Med. Med. - Q3 -- > Q3 > Q3 +/- 5% of Med. +/- 5% of Med. > Q3

-- > Q3 -- > Q3 -- -- -- > Q3 +/- 5% of Med. > Q3

-- > Q3 -- +/- 5% of Med. -- > Q3 < Q1 -- -- Med. - Q3

-- -- -- > Q3 -- -- -- -- -- > Q3

-- > Q3 -- > Q3 -- -- -- -- -- > Q3

-- > Q3 -- > Q3 -- > Q3 -- -- -- > Q3

-- -- -- > Q3 -- -- -- -- -- --

-- -- -- -- -- -- -- -- -- --

-- -- -- -- -- -- -- -- -- --

47

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40

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49

48


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4. GLOBAL MARKET COMPARISON

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4.1. Global Market Comparison - by Country

Global Market Comparison

In this subsection there is individual data shown, grouped by country. Each point on the chart represents one incumbent.

The positioning of an incumbent on the chart is defined by the country shown on the horizontal axis and by the individual compa-ratio displayed on the vertical axis.

Numbers on the right-hand side of the chart show the distribution of individuals within the external competitiveness ranges.


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4.1.1. Global Market Comparison - Annual Base Salary


~Q3

~Q1

Median

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

170%

180%

190%

200%

Ext

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Dis

trib

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Res

ults

11.9%

25.7%

51.8%

10.4%

0.3%


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April 2014 Global Deviation Analysis Global Market Comparison

4.1.2. Global Market Comparison - Total Cash Compensation (Actual)

~Q3

~Q1

Median

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

170%

180%

190%

200%

Ext

erna

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ness

Dis

trib

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Res

ults

10.9%

22.1%

53.6%

12.7%

0.7%


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4.1.3. Global Market Comparison - Total Direct Compensation

~Q3

~Q1

Median

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

170%

180%

190%

200%

Ext

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Dis

trib

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Res

ults

12.0%

21.8%

53.7%

12.1%

0.5%


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4.2. Global Market Comparison - Distribution Chart


The distribution chart contains the company's global data. The bars show the percentages of all compa-ratios at a specific value. The values of the compa-ratios are presented on the horizontal axis. The vertical axis shows a proportion of this value within the whole data sample.

The grey line shows the normal distribution of data as a reference for the company's data.


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4.2.1. Global Market Comparison - Distribution Chart - Annual Base Salary


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180% 190% 200%

External Competitiveness

Dis

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Res

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4.2.2. Global Market Comparison - Distribution Chart - Total Cash Compensation (Actual)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180% 190% 200%


Dis

trib

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Res

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4.2.3. Global Market Comparison - Distribution Chart - Total Direct Compensation

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180% 190% 200%


Dis

trib

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Res

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5. GENERAL COMMENTS

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5.1. General Comments

- Sample comment

- Sample comment

- Sample comment

- Sample comment

General Comments


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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

Global Deviation Analysis v1.70 - imercer US 2014 Introduction Global Deviation Analysis 1. Introduction 1.1. About Mercer 1.2. About the Report - Austria - Belgium - Switzerland -