Explore the Possibilities

Session agenda Opening Welcome and introductions Towers Watson s view of Total Rewards The decision: Print vs. online The Comerica story Company background A look back The print statement The business case for change The future now The online statement Implementation Lessons learned, successes and quick wins Product demonstration Colleague connect Your Total Rewards Measurement So how did we do? Coming attractions Future enhancements Closing Questions and closing remarks 1

Towers Watson s view of Total Rewards Foundational Rewards Base Pay Perquisites Allowances Retirement Health Care Life and Disability Other Welfare Benefits Wellness Initiatives EAP Voluntary Benefits Discounts/Affinity Programs Time Off Performance-based Rewards Career and Environmental Rewards Training/Development Mentor Programs Career Management Programs Talent Mobility Programs Discretionary Technology Flexible Work Programs Work/Life Programs Corporate Social Responsibility Programs Well-being Programs Base Pay Programs Short-term Incentives Long-term Incentives Recognition Profit-sharing Plans 2

The decision: Print vs. online Print Statements Distribution timing and targeting controlled by sender Often published annually Used to promote compensation and benefits Practical form of delivery for small populations and groups without Internet access All information in one place Booklet about sender with glossy pages and color print has impact Easily shared with family Employer chooses modeling assumptions Lower initial investment Online Statements Distribution (access) timing controlled by employee Updated in near or real-time Various uses, which can change easily and frequently, as needed Easier for employee to focus on specific areas of interest Ability to provide extensive context (links to other content and sites) Cost-effective for large populations and multiple locations Employer can easily track use/ navigation Employee can choose modeling assumptions Easily forwarded to financial advisor 3

Background on Comerica Founded in 1849, Comerica is a financial services company headquartered in Dallas, Texas, with operations in Arizona, California, Florida, Michigan and Texas and total assets of $65.4 billion at December 31, 2012 Fast facts Among the 25 largest U.S. banking companies Located in seven of the ten largest U.S. cities #2 pre-paid commercial card issuer (Nilson Report) 489 offices as of December 31, 2012 #3 among DiversityInc Top 10 Regional Companies for Diversity in 2012 Publicly traded on NYSE (CMA) Main sponsor of the Detroit Tigers baseball stadium 4

A look back The Comerica paper statement Prior to Total Rewards, information about Comerica s contribution to employee benefits was fragmented and primarily focused on retirement benefits Pension statement provided annually in third quarter based on information as of December 31st of the prior year Savings plan statements provided quarterly Annual health and welfare materials told employees how much they would be paying for benefits and nothing about Comerica s expense These statements told employees about what they have Total Rewards tells employees about Comerica s investment in them Comerica offers great benefits overall, but we were not telling our employees There was no single way to gauge employee understanding or perception of Comerica pay and benefit programs 5

The Comerica paper statement sample 6

The business case for change Comerica had a number of goals that were not being met with printed statements Colleagues thought about retirement or health and welfare benefits separately and had little awareness about total benefits Colleagues had no information about what Comerica was paying on their behalf for any of these programs Comerica wanted to align the delivery of Total Rewards with the new Colleague Connect employee portal The online statement was expected to bring the following benefits Increase awareness of Comerica benefit plans and programs Build awareness of what they might be missing by not participating Promote awareness and appreciation of the value of Total Rewards at Comerica Help retain key employees who are at risk of leaving 7

The future now The online statement The online statement was released to employees on October 2, 2012 9,000 employees received the online statement Statement was done in English only Data was aggregated from two data sources to produce the statement Single sign-on technology was used to link to other systems without requiring another ID and password Implementation timeline was May to October Statement was launched prior to Open Enrollment Ah ha moments for employees: Comerica s portion of the cost for the medical plan Comerica s annual cost for pension How much of the parking cost that Comerica pays for employees! Summing the various incentive pay buckets for the revenue generators The grand total that Comerica pays compared to what the employee pays 8

Implementation Lessons learned, successes and quick wins Find your inner actuary You can never provide enough review of individual pension benefits and calculations Leadership is important Make the senior leader video a prominent feature of the statement People like to compare Gather and provide information about your organization s competitive position in the market Think Big, Start Small, Scale Up You don t need to boil the ocean during the first implementation phase Successes and quick wins Statement was accurate and on time Statement was easily printable Average colleague understood the site Major lines of business and managers felt prepared for launch Very effective tool for attraction, engagement and retention 9

Demonstration 10

Measurement So how did we do? 97% of those surveyed found the Total Rewards Statement site easy to navigate and the information they needed easy to find 95% found it easy to understand the total value of their compensation and benefits programs 95% agreed that Comerica does a good job of providing information about their compensation and benefits programs Comments from Comerica colleagues: Very nice tool to use!! Great website and easy to understand I will use this for the better understanding of my benefits and to plan for retirement It s nice to be able to look at a glance and see just how much the corporation pays out for benefits 11

Coming attractions Future enhancements Develop a manager update campaign to encourage readership Expand to small populations in Canada and Mexico Continue to simplify navigation and explanations Include the value of training and leadership development Show 401(k) projections if contributions were increased Project pension benefits and show the value of the benefit yet to be earned (the cost of leaving) Provide more detail for incentive compensation Drawings and business unit competitions to increase readership in first 30 days after launch Provide more Did you know statements showcasing Comerica's competitive advantage 12

Questions 13

Today s presenters Jonathan Sears HR Technology, Senior Consultant jonathan.sears@ 215.246.7711 Maureen Tarantello Managing Consultant maureen.tarantello@ 214.530.4650 Suzanne Spisak SVP Benefits Director sspisak@comerica.com 214.462.4103 14