A single source of actionable information for making your most important reward decisions: The Senior Reward Toolkit.

Transcription

1

2 A single source of actionable information for making your most important reward decisions: The Senior Reward Toolkit. Individual Position Analysis NAM E??? ID #??? CEO USD ($) Market ALL FIRMS CLIENT 5TH 5TH 5TH TH AVG # FIRMS # EMPS 5TH VARIANCE RANK PCENTILE SALARY % of 5 % CASH BONUS 6 % of 5 % TOTAL CASH % of 5 % LONG TERM BONUS 6 6 % of 5 % TOTAL BONUS % of 5 % TOTAL COM P % of 5 % SALARY % of 5 % < Billion Assets to 5 Billion Assets 5 to Billion Assets > Billion Assets Total Comp MM USD > >.5 >5 > > >.5 > >.5 > < Total Comp MM USD > >.5 >5 > > >.5 > >.5 > < Total Comp MM USD > >.5 >5 > > >.5 > >.5 > < Total Comp MM USD > >.5 >5 > > >.5 > >.5 > < Number of Incumbents Number of Incumbents Number of Incumbents Number of Incumbents FIRM SIZE 5TH 5TH 5TH 5TH 5TH 5TH 5TH 5TH 5TH 5TH 5TH 5TH < Billion USD Assets to Billion USD Assets 5 to Billion Assets > Billion USD Assets 5 USD TOTAL CASH TOTAL COMP SA LARY <, Employees to Employees, to 5, Employees >5, Employees,, TOTAL CASH TOTAL COMP SA LARY TOTAL COM P 5TH 5TH 5TH EM PLOYEE LOCATION ASIA PAC EX JAPAN BRAZIL CANADA DEVELOPED EUROPE EM ERGING EUROPE JAPAN LATIN AM ERICA MIDDLE EAST / AFRICA UNITED KINGDOM UNITED STATES VARIANCE TO GLOBAL - -5% % -% -% - -5% % -% -% Full Market (Same Store Year-Over- Year) % - % SALARY CASH BONUS DEFERRED BONUS % TOTAL COMP FIRM TYPE BULGE BRACKET INTERNATIONAL US REGIONAL BANKS BANKING / CAP MKTS ASSET MANAGEMENT INSURANCE FIRMS -85% - -8% -% -% -% Average Mix of Compensation % % % DEFERRED BONUS CASH BONUS 8% 5% REPORTING LEVEL DIRECT SECOND LEVEL THIRD LEVEL -% -% -% FIRM XYZ MARKET SALARY

3 McLagan is the leading Performance / Reward consulting and benchmarking firm for the financial services industry. We have been advising firms on executive compensation for over 5 years. The Senior Reward Toolkit was created in response to our clients increased demands for an end-toend solution for supporting pay decisions for senior management. With a target of 5 top firms across roughly 5 key roles, study participants will have the most comprehensive and innovative executive compensation dataset ever assembled for the financial services industry. With a host of fresh perspectives, extensive data scoping by firm type, size and employee location, and CEO regression analysis, this study is much more than a generic compensation survey. Rounding out the analysis are qualitative sections on senior reward areas that our clients ask about the most: Change in Control provisions / Severance, Long-Term Award structures, and Benefits / Perquisites. When a client has the complete toolkit they are empowered to tackle their most challenging decisions with a rich resource set. This dataset is supported by McLagan s reward consultants, who have deep experience advising boards, management and RemCos, providing the kind of fact-based advice that has become our firm s calling card. In addition to the C suite, heads of front office and heads of infrastructure areas, we will have exhaustive coverage of overall region heads / CEOs and country heads / CEOs, a population that has been historically challenging to benchmark.

4 Our target participant list includes leading global organizations, with data displayed across all firms and in a set of pre-defined peer groups. Partial list: BULGE BRACKET B of A / Merrill Lynch Barclays Credit Suisse Citigroup Deutsche Bank Goldman Sachs JP Morgan Chase Morgan Stanley UBS INTERNATIONAL BANKS ANZ Bank of China Bank of Communications Bank of Nova Scotia Bank of Tokyo BBVA BMO BNP Paribas China Construction Bank CIBC Commerzbank Credit Agricole Espirito Santo HSBC ICBC ING Itaú Landesbank Lloyds Macquarie Mitsubishi Mizuho National Australia Bank Rabobank RBC Santander (Sovereign) Societe Generale Standard Bank Standard Chartered Sumitomo TD Securities Westpac US REGIONAL BANKS Ally Financial Bank of the West BB&T BBVA Compass BOK Financial Capital One Comerica Commerce Cullen / Frost East West Fifth Third First Niagra First Tennessee Huntington KeyCorp M&T Peoples PNC RBS / Citizens Regions Santander (Sovereign) SunTrust Banks SVP Financial Group Synovus Union Bank US Bancorp Webster Bank Wells Fargo Zions BANKING / CAP MARKETS FIRMS Carnegie Inc Cowen D.A. Davidson & Co. FBR Harris Williams Houlihan Lokey Janney Montgomery Jefferies Lazard Lincoln International Moelis Piper Jaffray Raymond James Robert Baird Stifel William Blair ASSET MANAGEMENT FIRMS BlackRock Aegon Group Allianz Group Amundi Asset Management Axa Group Bridgewater Capital Group Charles Schwab Fidelity Investments Fortress Franklin Templeton Generali Group GIC Private Invesco Lazard Legg Mason Manulife Asset Management PIMCO Prudential Financial T. Rowe Price TIAA-CREF Vanguard Wellington Management INSURANCE COMPANIES Aon Aflac AIG Allstate Berkshire Hathaway Chubb Genworth Financial Hartford Financial Services Liberty Mutual Lincoln National Mass Mutual Life Metlife Mutual of Omaha Nationwide Northwestern Mutual Life NYLIC Pacific Life Principal Financial State Farm Insurance Travelers Unum Group USAA Chicago Board Options Exchange American Express Bank of New York Mellon Cushman & Wakefield DTCC Fannie Mae Federal Reserve Banks Freddie Mac GE Financial Green Tree Credit ITG London Stock Exchange Mastercard Worldwide NASDAQ Northern Trust Company Sallie Mae State Street The CIT Group

5 The reward study will cover key jobs in overall firm management, infrastructure areas and business units. OVERALL FIRM MANAGEMENT Chairman & Chief Executive Officer Chairman Chief Executive Officer Vice Chairman Chief Operating Officer Chief Administrative Officer Chief Economist REGIONAL BUSINESS MANAGEMENT Regional Head / Regional CEO Regional COO / CAO COUNTRY BUSINESS MANAGEMENT Country Head / Country CEO Country COO / CAO BANKING / CAPITAL MARKETS Head of Banking / Capital Markets including IB Head of Capital Markets / Securities Head of Investment & Corporate Banking Head of Investment Banking Head of Fixed-Income & Related Activities Head of Equity Business Head of Capital Markets Origination Head of Research (Equities & Fixed Income) Head of Securities Services CONSUMER BANKING Head of Consumer Business Head of Retail Banking Head of Credit Card Business Head of Mortgage Lending Business Head of Personal Lending Business Head of Small Business Banking U.S. Regional Banking President U.S. Affiliate Banking President CORPORATE / COMMERCIAL BANKING Head of Corporate Banking Head of Multiple Business Areas (Commercial) Head of Middle Market Corporate Banking Head of Business / Commercial Banking Head of Commercial Finance Head of Equipment Finance & Leasing Head of Transaction Banking Head of Commercial Real Estate Business INVESTMENT MANAGEMENT Head of Investment Management incl CIO Head of Investment Management excl CIO Chief Investment Officer Head of Equity Investments Head of Fixed Income Investments Head of Intermediary Business Head of Institutional Business Head of Private Equity Business Head of Alternative Investments INSURANCE Head of Insurance Business Chief Actuary PRIVATE BANKING & BROKERAGE Head of Private Banking, Brokerage & IM Head of Wealth Management (Bank / Brokerage) Head of Private Banking Head of Brokerage (Private Client) COMMUNICATIONS & MARKETING Head of Communications & Marketing Head of Communications Head of Marketing Head of Investor Relations Head of Community Relations Head of Government Affairs CORPORATE & GENERAL SERVICES Head of Corporate & General Services Head of Corporate Real Estate Head of Corporate Security Head of Business Continuity FINANCE Chief Financial Officer Controller Treasurer Head of Internal Audit Head of Tax Head of Corporate / Strategic Planning HUMAN RESOURCES Head of Human Resources INFORMATION TECHNOLOGY & OPERATIONS Head of Ops and Info Systems & Technology Head of Information Systems & Technology Head of Operations Head of Information Security LEGAL & COMPLIANCE Chief Legal Officer / General Counsel (w / Compliance) Chief Legal Officer / General Counsel (w / o Compliance) Head of Compliance Corporate Secretary RISK MANAGEMENT Chief Risk Officer Chief Credit Officer Head of Market Risk Management Head of Counterparty Credit Risk Management Head of Operational Risk Management structure

6 chief executive officer CEO analysis will include year-over-year observations, multi-peer group benchmarking and regression analysis across firm size and performance metrics. This section of the study functions like a customized benchmarking project embedded in a survey. In addition to cutting and calculating the data by assets, number of employees, geographic location and firm type, there are a number of pages of pay regression analysis based on firm size factors, firm performance factors and then deeper regression analysis by firm type. So, for example, if you are assessing appropriate pay rates for a CEO at a large international bank based out of the UK, you will have a data perspective and regression analysis based on all international banks, international banks that are similarly large, that have similar performance, all CEOs in the UK, all CEOs at large international banks, etc. We will also focus on year-over-year pay, and the linkage between this change and absolute pay levels and ROAE. We will also provide analysis on total shareholder return and how this links to CEO pay across firm segments. The Senior Reward Toolkit will have extensive information on the structure of pay for CEOs.

7 y CEO Compensation Total Shareholder Return Analysis CEO Compensation Size Analysis: Assets Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation Lorem ullamco ipsum dolor laboris sit nisi amet, ut aliquip consectetur ex ea commodo adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore consequat. magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. CEO Pay / TSR Bulge Bracket CEO Pay / TSR International Banks All Firms TSR CEO PAY CEO TOTAL COMPENSATION TSR CEO PAY CEO TOTAL COMPENSATION CEO Pay / TSR US Regional Banks CEO Pay / TSR Banking / Cap Markets Firms ASSETS RANK - - FIRM ASSETS - Bulge Bracket International Banks US Regional Banks TSR CEO PAY CEO Pay / TSR Asset Management Firms CEO TOTAL COMPENSATION TSR CEO PAY CEO Pay / TSR ASSETS Insurance Companies ASSETS 6 8 ASSETS TSR CEO PAY Banking / Cap Markets Firms Asset Management Companies CEO TOTAL COMPENSATION TSR CEO PAY Insurance Companies 6 8 ASSETS ASSETS ASSETS 5

8 The study features a deep focus on top paid / named executive officers. Analytics will include role density, top paid as a percent of overall spend and more. Looking at compensation spend for top paid groups (top 5, top and top 5) as a percentage of overall compensation will provide a fresh perspective for firms and boards to assess the appropriateness of pay levels for this set of employees. In addition, firms will be able to observe market pay levels for these groupings by firm types. This would allow US Regional Firms, for example, to see how other comparable firms reward their top paid groups both on a role basis and simply by pay ranking. Rounding out this section of the study will be analysis on the kinds of pay vehicles used for this group, as well as the typical blends of salary, cash bonus and long-term awards. Firms can use this information to observe which roles are highly rewarded in the market as well as competitive pay levels and pay constructs. top paid / neo 6

9 y Top Paid Analysis y Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo Per Capita Total Compensation Millions USD Top Paid as a % of Aggregate Spend consequat.. % TOP 5. % 6. CLIENT Individual Role Spend as a % of Aggregate NEO Spend TOP 5 5% 8.. CLIENT CEO, % 6. 5TH HEAD OF IB, % 5%.5 5TH. 5. % 5TH %. 5TH FRONT, % TOP 5. TOP 6.6 5TH.5 % 5TH COO, % CFO, % 5.6 HEAD OF RETAIL, %. AVG. % AVG..5 5% CLO, % TOP 5. TOP 5 %. 5. % CRO, % CAO, %. %.5 CTO, BACK, %. Bulge Bracket International Banks US Regional Banks % % % NUMBER OF NEOS Banking / Cap Markets Firms % 8 8 5% TOP 5 TOP TOP 5 5TH 5TH 5TH % OF AGGREGATE Asset Management Firms % 5% TOP 5 TOP TOP 5 5TH 5TH 5TH % OF AGGREGATE Named Executive Officer Analysis By Role MEDIAN PER CAPITA COMPENSATION % 5% 5% Bulge Bracket International Firms US Regional Banks FRONT, FRONT, FRONT,.5 %.5 %.5 % CEO, % CEO, % CEO, %. HEAD OF.. HEAD OF HEAD OF RETAIL, RETAIL, RETAIL,.5 %.5.5 % % CFO, % CFO, % CFO, % 5. TOP 5 TOP TOP 5 TOP 5 TOP TOP 5 TOP TOP TOP 5.. 5TH 5TH 5TH % OF AGGREGATE 5TH 5TH 5TH % OF AGGREGATE 5TH 5TH 5TH % OF AGGREGATE.5 BACK, 5%.5.5 BACK, 5% BACK, 5%... Insurance Companies % 8 5%.5 Banking / Cap Markets Firms.5 Asset Management Firms.5 Insurance Companies FRONT, FRONT, FRONT,.5 %.5 %.5 % CEO, % CEO, % CEO, %. HEAD OF.. HEAD OF HEAD OF RETAIL, RETAIL, RETAIL,.5 %.5.5 % % CFO, % CFO, % CFO, %. TOP 5 TOP TOP 5.. 5TH 5TH 5TH.5 % OF AGGREGATE BACK, 5%.5.5 BACK, 5% BACK, 5%...

10 Individual Position Analysis NAM E??? ID #??? Head of Banking / Capital Markets Compensation Focus Analysis USD ($) Front Office Market ALL FIRMS CLIENT 5TH 5TH 5TH TH AVG # FIRMS # EMPS RANK PCENTILE Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore 5TH VARIANCE magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. SA LARY % of 5 % CASH BONUS 6 % of 5 % MARKET TOTAL CASH % of 5 % FIRM 5TH 5TH LONG TERM BONUS 6 6 % of 5 Front Office % Top Mgmt Roles Combined TOTAL BONUS % of 5 TOTAL %,5,5 6,8 TOTAL COM P MARKET -5% VA RIANCE of 5 % 8% -5% MARKET FIRM 5TH 5TH % OF SPEND.%.% 6.% FIRM 5TH 5TH SA LARY % of 5 % Investment Mgmt Top Mgmt Roles Comb Investment Mgmt Top Mgmt Roles Comb Consumer Banking Top Mgmt Roles Comb TOTAL,5,5 6,8 TOTAL,5,5 6,8 TOTAL,5,5 6,8 Total Comp MM Number of Incumbents VARIANCE 8% -5% VARIANCE Salary MM Number of Incumbents 8% -5% VARIANCE 8% -5% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% >5 >.8 to.. to. Head of Banking / Capital Markets Head of Investment Management Head of Consumer Banking.5 to..6 to PER.6 CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 to..55 to VARIANCE.5 8% -5% VARIANCE 8% -5% VARIANCE 8% -5%.5 to..55 to.5 % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.%.5 to..55 to.5.5 to..5 to.5 to. Head of Capital Markets / Securities.5 to. Head of Multi Commercial Areas Head of Retail Banking.5 to. PER CAPITA.5 to.,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8.5 to..5 to VARIANCE. 8% -5% VARIANCE 8% -5% VARIANCE 8% -5%. to.. to % OF.SPEND.%.% 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.%. to..5 to.. to..5 to Head. of Investment & Corporate Banking Head of Middle Market Banking Head of Credit Cards. to..5 to PER. CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 to.. to VARIANCE. 8% -5% VARIANCE 8% -5% VARIANCE 8% -5%. to..5 to % OF.SPEND.%.8 to.8.5 to..% 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.%. to..5 to. Head of Investment Banking Head of Business / Commercial Banking Head of Mortgages.6 to.6. to. PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA <.6 <.,5,5 6,8 VARIANCE 8% -5% VARIANCE 8% -5% VARIANCE 8% -5% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% TOTAL COMP 5TH 5TH 5TH EM PLOYEE LOCATION ASIA PAC EX JAPAN BRAZIL CANADA DEVELOPED EUROPE EM ERGING EUROPE JAPAN LATIN AM ERICA MIDDLE EAST / AFRICA UNITED KINGDOM UNITED STATES FIRM TYPE BULGE BRACKET INTERNATIONAL US REGIONAL BANKS BANKING / CAP MKTS ASSET MANAGEMENT INSURANCE FIRMS VARIANCE TO GLOBAL Head of Fixed Income Head of Commercial Finance Head of Personal Lending Full Market (Same Store Year-Over- Year) PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 VARIANCE 8% -5% VARIANCE % - 8% -5% VARIANCE 8% -5% -5% % OF SPEND.%.% 6.% % % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% % -% Head of Equities Head of Equipment Leasing & Finance Head of Small Business Banking -% PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 - VARIANCE % 8% -5% VARIANCE 8% -5% VARIANCE 8% -5% -5% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% % -% SALARY CASH BONUSDEFERRED BONUSTOTAL COMP -% Head of Capital Markets Origination Head of Commercial Real Estate US Regoinal Banking President PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 VARIANCE 8% Mix of Compensation -5% VARIANCE 8% -5% VARIANCE 8% -5% -% % OF SPEND.%.% % 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% -85% % % - Head of Research (EQ & Fixed Income) DEFERRED BONUS Head of Investor Services / Trans Banking US Affiliate Banking President -% PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 CASH -8% VARIANCE 8% 8% 5% -5% BONUS VARIANCE 8% -5% VARIANCE 8% -5% -% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% % OF SPEND.%.% 6.% SALARY FIRM XYZ MARKET 8

11 The study will include per capita benchmarking for ~ front office roles, leadership pay as a percent of overall spend and detail on composition of long-term awards. The leadership roles in the following revenue generating functions will be benchmarked: Banking / Capital Markets, Consumer Banking, Corporate / Commercial Banking, Investment Management, Insurance and Private Banking. Each of the top jobs in these groups will be compared individually to market data, with additional perspectives based on employee location and firm type. front office A bulge bracket firm with a Head of Investment Banking sitting in London would have three perspectives as a starting point: Global Head of Investment Banking across all firms in the study, all Global Heads of Investment Banking sitting in London and all of the Global Heads of Investment Banking at a bulge bracket firm, regardless of their location.

12 infrastructure Compensation Focus Analysis Infrastructure / Support Areas Reporting Level Analysis Infrastructure Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo FIRM 5TH AVG The analysis on this page look at not Chief Executive Officer consequat. only pay rates per specific jobs (PER PER CAPITA,5,5 6,8 VA RIANCE CAPITA), but also the TOTAL spend for a 8% -5% % SPEND.%.% 6.% grouped set of jobs (TOTAL) and a market comparison for that group. In MIx of Reporting Level Pay Premium / Discount All Infrastructure Top Mgmt Roles addition to a compensation spend TOTAL,5,5 DIRECT6,8 ND RD DIRECTS ND LEVELS RD LEVELS benchamarking, a "% SPEND" benchmark VA RIANCE CHIEF FINANCIAL OFFICER 8% -5% is provided as well. For example, the % SPEND.%.% 6.% FIRM 5TH AVG CONTROLLER 8% % -% -5% CEO "% SPEND" calculation would show what percentage of the overa ll firm TREASURER Chief Operating Officer 5 % Chief Administrative Officer % -% -% PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 spend on compensation VAHEAD RIANCE OF AUDIT 5% 5% % 5% - 8% -5% 8% -5% FIRM 5TH AVG % SPEND HEAD OF TAX.%.% % 6.% 5 % SPEND.%.% 6.% -% HEAD OF PLANNING % 5 % -% -% Tech & Ops Combined Legal / Finance / Audit / Risk / Compliance Comm / Marketing / Corp Services / HR TOTAL,5, 6,8 TOTAL,5,5 6,8 TOTAL,5,5 6,8 VARIANCE -8% -5% VA RIANCE 8% -5% VARIANCE CHIEF LEGAL OFFICER W COMP 8% -5% % SPEND.%.% 6.% % SPEND.%.% 6.% % SPEND.%.% 6.% CHIEF LEGAL OFFICER Head of Information Technology / CTO HEAD OF COMPLIANCE Chief Financial % Officer Head % of Communications -% PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 CORPORATE SECRETARY VARIANCE 8% -5% VA RIANCE % 5 8% -5% VARIANCE -% -% 8% -5% % SPEND.%.% 6.% % SPEND.%.% 6.% % SPEND.%.% 6.% Head of Operations CHIEF RISK OFFICER General Counsell / Head of Legal Head of Marketing PER CAPITA,5,5 6,8 CHIEF PER CREDIT CAPITA OFFICER,5,5 6,8 PER CAPITA%,5,5 % 6,8-% VARIANCE 8% -5% HEAD VA OF RIANCE MARKET RISK 8% 5-5% VARIANCE % 8% % -5%-% % SPEND.%.% 6.% % SPEND.%.% 6.% % SPEND HEAD OF COUNTERPARTY %.%.% 5% 6.% HEAD OF ENTERPRISE Head / OP RISK of Risk % Management 8% Head of Corporate % & General Services PER CAPITA,5,5 6,8 PER CAPITA,5,5 6,8 VARIANCE 8% -5% VARIANCE 8% -5% HEAD OF HUMAN % SPEND RESOURCES.%.% 6.% % % SPEND.%.% % 6.% -% Head of Audit Head of Human Resources PER HEAD CAPITA OF OPS & IT,5,5 6,8 PER CAPITA,5,5 6,8 VA RIANCE HEAD OF IT 8% -5% VARIANCE 8% -5% % SPEND.%.% 6.% % SPEND HEAD OF INFORMATION SECURITY 68% %.%.% % 6.% -% HEAD OF Head OPSof Compliance 88% % % -% PER CAPITA,5,5 6,8 VA RIANCE 8% -5% HEAD OF COMM %& SPEND MARKETING.% %.% 6.% 5% % % -% HEAD OF COMMUNICATIONS % % % -% HEAD OF MARKETING % 8% 5% 5% HEAD OF INVESTOR RELATIONS % % % HEAD OF COMMUNITY RELATIONS 88% % -% HEAD OF GOVERNMENT AFFAIRS % 5% -5% -% - -% -% -5% -% -5% -% - -% -% - HEAD OF CORP & GEN SERVICES % % 5% - HEAD OF CORP REAL ESTATE 5% -% HEAD OF CORP SECURITY % 55% % -% -% HEAD OF BUSINESS CONTINUITY 88% % 5% -

13 The study features the top ~ infrastructure roles, reporting level differentials, spend per area and focus of overall firm spend in infrastructure leadership. Individual benchmarks will be provided for ~ roles across Infrastructure with each individual role having a separate analysis, including comparisons made based on firm size (assets and number of employees). In addition, we will look at groupings of senior roles as a percentage of overall compensation spend. This will enable firms to look at what they spend on Risk Management leadership, for example, as a percent of overall pay compared to the market again, a unique perspective on how firms focus pay on a relative basis. We are also furnishing analysis on how roles vary by reporting levels. Firms can use this information to fine-tune pay rates for positions like Head of Information Technology, who may be a direct report to the CEO at some firms, and a third level report at others. This data can help firms rationalize their organization structure and span of control, as it will provide a view into how roles are typically slotted in the competitive market.

14 The Senior Reward Toolkit includes qualitative sub studies on severance / change in control, benefits and perquisites and long-term award design and structure. SEVERANCE / CHANGE IN CONTROL With greater public and shareholder attention, severance practices are under increased scrutiny. The study is comprehensive and designed to cover the major policy areas: Severance Policy Changes Costs Salary Treatment of Long-Term Awards Partial Year Bonuses Benefits Change in Control Cash and Long-Term Awards reported separately Prevalence Triggering Events Calculation Method of Payment Protection Period LTI Vesting Benefits Excise Tax Restricted Covenant LONG-TERM AWARDS With greater focus on the form of the awards vs. the quantum, we offer analysis to support structuring long-term pay: Calculation / Conversion Methodology Deferred vs. Add-on Award Vehicles Prevalence Vesting Schedules Performance Measures Forfeiture Provisions BENEFITS AND PERQUISITES The study covers the prevalence and eligibility of benefits for select senior management positions. Executive Benefits Deferred Compensation Retiree Medical Long-Term Disability Restoration Plan SERP Financial / Legal Services Financial / Tax Consulting Estate Planning Transportation Company Aircraft Chauffer Service Company Car or Allowance Other Flexible Plans Housing Home Security Excess Personal Liability Insurance Group Life Insurance Executive Coaching Tax Gross Up on or more perquisites Club Membership Vacation Physical qualitative studies

15