2008 2009 TOTAL COMPENSATION SURVEY OF MID-ATLANTIC TECHNOLOGY COMPANIES 18TH ANNUAL STUDY SURVEY QUESTIONNAIRE DEADLINE FOR SUBMISSION OF DATA: FRIDAY, OCTOBER 3, 2008 TO: KNOWLEDGEBANK, INC. 1481 CHAIN BRIDGE RD., #201 MCLEAN, VA 22101 703-448-8070 www.knowledgebank.us.com ªCopyright 2008 by KnowledgeBank, Inc.
2008 2009 TOTAL COMPENSATION SURVEY OF MID-ATLANTIC TECHNOLOGY COMPANIES KnowledgeBank, Inc. will publish the results of this survey in summary form and no individual data will be identified. YOUR RESPONSES WILL BE KEPT STRICTLY CONFIDENTIAL. (Please print) *Respondent Name: Title: *COMPANY: *Address: *City/State/Zip: *Telephone: ( ) Fax: ( ) *E-Mail Address: *Provide Report: Electronic/PDF Format Printed ($25 Fee) * = Required PART A -- COMPANY DATA 1. PRIMARY INDUSTRY AFFILIATION: (a) Biotechnology (f) Professional Services (b) Computer/Information Technology (g) Systems Engineering (c) Electronics (h) Telecommunications (d) Medical Devices (i) Manufacturing (e) Pharmaceuticals (j) Other: 2. OWNERSHIP (CHECK ONE): (a) Privately Held (b) Publicly Held 3. ORGANIZATIONAL ENTITY: (a) Parent/Stand-Alone (c) Subsidiary (b) Group/Division 4. NUMBER OF FULL-TIME EMPLOYEES: (Must be greater than two) 5. ANNUAL REVENUE (LAST FISCAL YEAR): $ million (e.g., $6.2) PART B -- TOTAL COMPENSATION PRACTICES 1. WHAT TYPE OF SALARY INCREASE IS USUALLY GRANTED? (CHECK ONE ONLY) (a) (b) (c) Merit Only Other only (e.g., cost of living, length of service; across-the-board; general) Combination: Merit + Other 2. PLEASE INDICATE THE ANNUALIZED SALARY INCREASE BUDGET FOR YOUR ORGANIZATION; EXCLUDE PROMOTIONS: Granted 2008 Projected 2009 Average %: % % Lowest % (Above 0%): % % Highest %: % % 1
2008-2009 TOTAL COMPENSATION SURVEY MID-ATLANTIC TECHNOLOGY COMPANIES 3. CHECK THE APPROPRIATE SPACES BELOW TO INDICATE THOSE COMPENSATION AND HUMAN RESOURCES PRACTICES THAT ARE CURRENTLY IMPLEMENTED IN YOUR COMPANY OR THAT YOU PLAN TO IMPLEMENT WITHIN THE NEXT YEAR: Compensation/Human Resources Currently Plan to Implement Practice Implemented Within the Next Year (a) Flexible Work Schedules (b) Casual Dress (c) New-Hire Signing Bonus (d) Special Recognition Awards (e) Stock Options for All Employees (f) Telecommuting (g) Multi-Rater/360 Performance Feedback (h) Compressed Work Week (i) New-Hire Referral Bonus 4. CHECK THE APPROPRIATE SPACES TO INDICATE THE TYPE OF SHORT-TERM INCENTIVE COMPENSATION YOUR COMPANY PROVIDES AND THE CATEGORY OF PARTICIPATION: Employee Category Type of Incentive Executive Mgmt. Middle Mgmt. Technical/ Professional Staff Sales Staff Non-Exempt Employees Annual Cash Incentive/Bonus Cash Profit-Sharing Cash "Spot" Achievement Awards Sales Commissions/Incentives Team/Small Group Incentives 5. INDICATE THE TYPE OF LONG-TERM INCENTIVE PLAN YOUR COMPANY PROVIDES AND THE CATEGORY OF PARTICIPATION: Employee Category Type of Incentive Executive Mgmt. Middle Mgmt. Technical/ Professional Staff Sales Staff Non-Exempt Employees Stock Options Restricted Stock Performance-based Cash 6. HOW FREQUENTLY ARE EQUITY GRANTS TYPICALLY MADE? At Hire Annually Board/Management discretion 7. HOW ARE GRANT LEVELS TYPICALLY ESTABLISHED? Fixed # of shares Multiple of salary Black-Scholes value % of company ownership Other 2
2008-2009 TOTAL COMPENSATION SURVEY MID-ATLANTIC TECHNOLOGY COMPANIES 8. PLEASE CHECK THE APPROPRIATE SPACES TO INDICATE THE TYPE OF EMPLOYEE BENEFITS PROVIDED, EMPLOYEE COVERAGE AND COST SHARING: Employee Benefit Employee Coverage Full- Time Part- Time Company % Cost Sharing Employee % (a) (b) (c) (d) (e) (f) (g) (h) (i) Health Care (i) Single Coverage (ii) Family Coverage Dental Care Prescription Drug Vision Care Employee Assistance/EAP Group Term Life Insurance Supplemental Life Dependent Life Accidental Death (j) Paid Time-Off Pool N/A N/A (k) (l) Paid Sick Leave/STD Long-Term Disability (m) Pension N/A (n) 401(k) (o) Profit Sharing N/A N/A (p) IRA/SEP (q) Flexible Spending/Sec. 125 Reimbursement Account (r) (I) Health Care (II) Dependent Care Physical Fitness Program N/A N/A N/A N/A (s) (t) Tuition Reimbursement Stock Discount/Purchase Plan 3
2008-2009 TOTAL COMPENSATION SURVEY MID-ATLANTIC TECHNOLOGY COMPANIES 9. DO YOU HAVE A WAITING PERIOD BEFORE NEW HIRES CAN BEGIN PARTICIPATION IN MEDICAL/DENTAL PLANS? 1 st Date of Hire Less than 30 Days 30 to 60 Days Greater than 60 Days 10. DO YOU PLAN TO CHANGE EMPLOYER/EMPLOYEE CONTRIBUTIONS TO MANAGE COSTS? Yes No 11. WHAT TYPE OF MEDICAL PLANS DO YOU OFFER? HMO POS PPO Consumer Directed Health Plan (HSA, HRA) 12. DO YOU OFFER OR PLAN ON OFFERING A CONSUMER DIRECTED HEALTH PLAN (HSA, HRA) THIS YEAR? Yes No 13. DO YOU OFFER OR PLAN TO OFFER A HEALTH AND WELLNESS PROGRAM? Yes No 4
2008-2009 TOTAL COMPENSATION SURVEY OF MID-ATLANTIC TECHNOLOGY COMPANIES PART C -- BENCHMARK COMPENSATION DATA Please review the benchmark job statements provided in the APPENDIX to determine if your company has appropriate matches for the 30 survey jobs listed below. A minimum of two matches is required for participation in the survey. Input the information requested below for each position matched. Not all positions will exist in every company. If you do not have a match, please leave blank. Note that titles provided below are typical, but not universal. Please refer to the job statement, and not the title, to determine if there is an appropriate match in your organization. Report salary data as of August 2008 and cash incentive data for the most recently completed fiscal year. BENCHMARK POSITION YOUR POSITION TITLE Number of Incumbents Actual/ Average Salary ($000) 1. Chief Executive Officer NA $ $ 2. Chief Operating Officer NA 3. Top Financial Executive NA 4. Top Business Development/ Marketing Executive 5. Top Administrative Executive NA 6. Top Human Resources Executive 7. Top Technical Executive NA 8. Top Sales Executive NA 9. Single Profit Center Head 10. Program Director 11. Controller 12. Contracts/Purchasing Director 13. Product Marketing Manager 14. Sales Manager/Representative NA NA Actual/Average Annual Incentive ($000) Target Incentive As % of Salary 5
2008-2009 TOTAL COMPENSATION SURVEY OF MID-ATLANTIC TECHNOLOGY COMPANIES PART C -- BENCHMARK COMPENSATION DATA, Continued BENCHMARK POSITION YOUR POSITION TITLE Number of Incumbents Actual/Average Salary ($000) Actual/Average Cash Incentive ($000) Target Incentive As % of Salary 15. Management Information Systems Director/CIO 16. Human Resources Administrator 17. Senior Scientist 18. Scientist 19. Senior Research Associate 20. Research Associate 21. Senior Engineer 22. Engineer 23. Senior Technician 24. Technician 25. Senior Programmer Analyst 26. Programmer Analyst 27. Senior Software Developer 28. Software Developer/Engineer 29. Network Engineer/Technician 30. Tech Support/Cust. Svc. Spec. Please Return Completed Questionnaire Via Website (www.knowledgebank.us.com) Or mail to: KNOWLEDGEBANK, INC. 1481 CHAIN BRIDGE ROAD, SUITE 201 MCLEAN, VA 22101 (703) 448-8070 DEADLINE: FRIDAY, OCTOBER 3
APPENDIX Page 1 of 4 BENCHMARK JOB DESCRIPTIONS 1. Chief Executive Officer (CEO): This position is the most senior position in an organization, and is responsible for overseeing all corporate functions and directing the organization to ensure the attainment of corporate profit, return on investments, and other business goals, subject to the approval of the Board of Directors. May serve as presiding officer of the Board. 2. Chief Operating Officer (COO): This position is the second highest position in an organization, and has overall responsibility for all operational and marketing functions. Staff functions may also report to the COO. The COO typically reports to the CEO. 3. Top Financial Executive (CFO): This position is responsible for the organization's overall financial management, including treasury, accounting, budgeting, auditing, taxation, and the conduct of its business with lending institutions, shareholders and the financial community. Typically reports to the CEO and/or COO. 4. Top Business Development/Marketing Executive: This position is responsible for the direction of the business development or marketing of the firm's products and services, including planning and directing business development efforts to accomplish corporate objectives. Oversees the expansion of existing programs or client assignments, seeks follow-on business, and identifies/pursues new business opportunities. Provides counsel and support to the CEO and COO in developing and maintaining customer/client relationships. Typically reports to the COO. 5. Top Administrative Executive: This position is responsible for overseeing the administrative functions of the corporation, including two or more major administrative functions, such as legal, human resources, information systems, procurement, facilities management, or security. Typically reports to the CEO or COO. 6. Top Human Resources Executive: This position is responsible for the development, implementation and management of all policies and programs pertaining to the employment, employee/labor relations, compensation, training, placement, safety and health, benefits, and employees services for the corporation. Typically reports to CEO or COO. 7. Top Technical Executive: This position is responsible for planning and directing all activities related to the company's technical products or services, including research, development, and design. Coordinates with operations, business development, program management and other functions to ensure that the company's competitive position and profitability are maintained/improved. Typically reports to the CEO or COO. 8. Top Sales Executive: This position is responsible for company-wide or unit sales of the firm s products or services, including supervision of the sales force, implementation of the sales strategy, and maintenance of the key customer contacts. Typically reports to Top Business Development/Marketing executive or CEO. 9. Single Profit Center Head: This position is the highest position in a division or other organization that is a single profit center, typically with more than one line of products or services. Has responsibility for directing the design, production, pricing and selling of products and services within the unit, for establishing current and long-term objectives and for profit/loss and attainment of objectives. Typically reports to a Multiple Profit Center Head or the COO. 10. Program Director: This position is responsible for directing the technical and administrative management of one or more programs within the organization, including the establishment and attainment of program schedules and objectives, and the coordination and effective management of resources. Also has responsibility for the acquisition of new or follow-on program assignments. Typically reports to a Single or Multiple Profit Center Head.
APPENDIX Page 2 of 4 BENCHMARK JOB DESCRIPTIONS 11. Controller: This position is responsible for overseeing the company's budgeting and planning systems, including accounting, analysis and interpretation of financial and business trends, preparation of financial reports, and maintenance of fiscal records. Directs all activities in the areas of general and property accounting, cost accounting and budgetary controls. Typically reports to the Top Financial Executive. 12. Contracts/Purchasing Director: This position is responsible for directing all activities related to the negotiation, acceptance, and execution of contracts, including pricing, contract performance, contract modifications, adherence to company policy and applicable government regulations. Oversees the preparation of contractual documents and materials. Typically reports to the Top Financial Executive. 13. Product Marketing Manager: This position is responsible for managing all marketing activities with respect to a given product line, including assessment of potential markets, coordination of technical product development, development of pricing strategies, and identification and pursuit of promotional activities. Oversees business plan development and product positioning. Monitors competitive activity and identifies customer needs. Develops shorts and long-range strategies for product expansion. Typically requires a BS degree or equivalent in a related field, with an MBA desirable, and 5 or more years of relevant experience. 14. Sales Manager/Representative: This position is responsible for direct sales of the company s products or services to customers, either regionally or by product line; responsible for achieving sales quotas; develops and implements sales strategies. Typically requires 5 or more years of relevant experience. 15. Management Information Systems Director/CIO: This position is responsible for directing all management information systems for the corporation, including systems analysis, programming, and computer operations. Identifies long-term information system requirements and develops/implements hardware procurement, systems development and integration strategies, including mainframe, mini, micro, telecommunications, and network applications. Typically reports to the COO, Top Financial, or Top Administrative Executive. 16. Human Resources Administrator: This position is responsible for providing professional assistance, advice, guidance, and direction in such areas as recruitment, compensation, employee relations, training and development, AA/EEO, and benefits administration. This position normally requires a bachelor's degree or equivalent, and 2-4 years of relevant experience. Typically reports to a Human Resources Manager, or in smaller organizations to the Top Administrative Executive or Top Human Resources Executive. 17. Senior Scientist: This position is responsible for initiating, directing and executing scientific research and development activities, often through other research staff. Investigates the feasibility of potential inventions, new products, and problem resolution, plans and executes laboratory research. Maintains broad knowledge of state-of-the-art principles and theories, makes major contributions to scientific literature and conferences, participates in development of patent applications, and serves as senior internal consultant in area(s) of expertise. Requires a Ph.D. in a scientific discipline or equivalent, 8-10 years of relevant experience in a research environment, and a reputation as a leader or emerging leader in a field with sustained performance and accomplishment. 18. Scientist: This position is responsible for initiating, directing and executing scientific research and development activities, often through other research staff. Investigates the feasibility of potential inventions, new products, and problem resolution, plans and executes laboratory research. Maintains broad knowledge of state-of-the-art principles and theories, makes contributions to scientific literature and conferences, and participates in development of patent applications. Requires a Ph.D. in a scientific discipline or equivalent with 2 years of relevant experience in a research environment, and a demonstrated potential for technical proficiency and scientific creativity.
APPENDIX Page 3 of 4 BENCHMARK JOB DESCRIPTIONS 19. Senior Research Associate: This position is responsible for performing research and development activities. Makes detailed observations, analyzes and interprets data. Exercises technical discretion in the design, execution and interpretation of experiments, prepares technical reports, protocols, and quantitative analyses; investigates, creates and develops new methods and technologies for project advancement, acting as principal investigator in conducting own experiments. Maintains a high level of professional expertise through familiarity with current scientific literature, and uses professional concepts in accordance with company objectives to solve complex problems in creative and effective ways. May be responsible for identifying patentable inventions. Typically requires a BS degree in a relevant scientific discipline or equivalent, and 5-8 years of related experience. 20. Research Associate: This position is responsible for performing research and development activities in collaboration with others. Makes detailed observations, analyzes and interprets data. Exercises technical discretion in the design, execution and interpretation of experiments, prepares technical reports, protocols, and quantitative analyses; investigates, creates and develops new methods and technologies for project advancement, under general direction or in collaboration with others. Maintains and enhances familiarity with current scientific literature, and uses professional concepts in accordance with company objectives to solve difficult problems in creative and effective ways. Typically requires a BS degree in a relevant scientific discipline or equivalent, and 0-2 years of related experience. 21. Senior Engineer: This position is responsible for analyzing, designing, developing, testing/debugging of hardware and/or software in support of assigned products or services, typically working with little supervision. Uses a wide variety electronic/computer hardware and software to perform duties, and serves as a resource for others in own areas of expertise. Typically requires a BS in a related discipline and 5-8 years of relevant experience. 22. Engineer: This position is responsible for analyzing, designing, developing, testing/debugging of hardware and software in support of assigned products or services, under general direction. Uses a wide variety of electronic/computer hardware and software to perform duties. Typically requires a BS in a related discipline and 2-4 years of relevant experience. 23. Senior Technician: This position is responsible for a wide variety of tasks and duties in support of research/design activities. May make detailed observations, analyze data and interpret results, or perform duties related to fabrication, testing and calibration of test equipment and other electro-mechanical systems. May maintain equipment and inventory levels for laboratory or other technical supplies. May write reports and protocols or assist in the design and conduct of research work, and may serve as a group leader for other technicians. Typically requires an AA degree in a related field or equivalent training, and 3-5 years of relevant experience. 24. Technician: This position is responsible for a wide variety of tasks and duties in support of research/design activities. May make detailed observations, analyze data and interpret results, or perform duties related to fabrication, testing, calibration of test equipment and other electro-mechanical systems. May maintain equipment and inventory levels for laboratory or other technical supplies, and may wash, dry and distribute glassware. Typically requires an AA degree or equivalent training, and 0-3 years of relevant experience.
APPENDIX Page 4 of 4 BENCHMARK JOB DESCRIPTIONS 25. Senior Programmer Analyst: This position is responsible for evaluating or defining systems scope, establishing or modifying approaches to address complex problems based on expertise and knowledge of computer equipment capabilities, time and resources, and user requirements. Designs, programs, tests, modifies and documents programs. May serve as a resource in own areas of expertise with other technical personnel. Typically requires B.S. in a related discipline and 5-8 years of relevant experience. 26. Programmer Analyst: This position is responsible for evaluating or defining systems scope, establishing or modifying approaches to address complex problems based on experience and knowledge of computer equipment capabilities, time and resources, and user requirements. Designs, programs, tests, modifies and documents programs. Typically requires B.S. in a related discipline and 2-4 years of relevant experience. 27. Senior Software Developer/Engineer: Performs highly complex analysis, design, development, testing and debugging of computer software in support of product hardware or technical services. Activities range from operating system architecture integration and software design. Typically works with little supervision; requires 8-10 years of work experience. 28. Software Developer/Engineer: Performs moderately complex analysis, design, development, testing and debugging of computer software in support of product hardware or technical services. Activities range from operating system architecture integration and software design. Typically works under general supervision; requires 2-4 years of work experience. 29. Network Engineer/Technician: This position manages and/or operates communications and internal networks; installs new software, administers security procedures, ensures system back-ups. Monitor and make recommendations to improve network performance. Typically works under general supervision; requires 2-4 years of work experience. 30. Tech Support/Customer Service Specialist: This position provides troubleshooting and analyses to ensure the proper operation and performance of customer products and/or services. Assists with on-site installations. Conducts analyses and ensures the quality of service to the organization s customers. Typically requires several years of related professional experience. KnowledgeBank, Inc. is an award-winning provider of human capital management, organizational effectiveness, outsourcing and consulting services to the commercial, nonprofit and government sectors. The company provides services in every vertical within the human capital spectrum including compensation and reward system design, employee benefit plan design and analysis, organization assessment and development, change management, performance management, employee engagement and retention, workforce planning, leadership development and coaching, training, compliance, HR management outsourcing and interim HR leadership. KB was selected by Inc. magazine as one of the 500 fastest growing companies in America for 2007, and has been recognized by Washington SmartCEO Magazine as one of the fastest growing companies in the Greater Washington region for the past two years.