Georgia State University and Spencer Stuart:Sales Executive RoundTable Meeting

Prepared by: Tim Henn, Atlanta

May 17, 2013

Introduction

Overview of Spencer Stuart International

Why is Spencer Stuart Any Different than Other Global Competitors?

Sales Officer Practice

What’s Hot? - Key Trends and Skills Set Needs in Sales Leadership

Compensation Observation and Trends

Tips on Executive Recruiting

Table of Contents

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Contact InformationAtlanta officethenn@spencerstuart.comdd +1 404.504.4418

Timothy J. HennAtlanta office

Tim Henn is a member of Spencer Stuart’s Technology, Communications & Media Practice and leads the firm’s sales officer business in North America. He also is a member of the Private Equity and Information Officer practices, and a core contributor to the firm’s Cloud Computing initiatives. Bringing more than a decade of executive search experience to his work, Tim conducts assignments for clients across North America, Europe and Asia. He concentrates on chief executive officer, general manager and other senior-level positions for technology and communications clients. Tim’s technology clients include communications service providers, wireless and wireline networking equipment and software companies, mobile device makers, and providers of cloud computing services, datacenter services, and optical systems and components — from early-stage venture-funded startups to the largest multinational corporations.

In-depth technology expertise

>Before joining Spencer Stuart, Tim was with a global retained executive search firm for more than seven years as a senior member of its technology practice.

>He also has 14 years of technology industry experience in strategy development, product line marketing and sales. Tim worked for Motorola for six years, where he led strategy efforts for the company’s communications equipment businesses. In addition, Tim contributed to Motorola’s most significant acquisition, General Instrument, and to the strategic assessment of Motorola’s broadband wireline, wireless and satellite investments.

>Tim spent seven years in Silicon Valley working in senior marketing and product management roles for early-stage companies in data networking, communications software and semiconductors.

Tim is a graduate of Cornell University with a degree in electrical engineering and also holds an M.B.A. from Harvard Business School.

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Introduction to Spencer Stuart International

Our Firm

Who we are

> Founded in 1956 and still privately held, Spencer Stuart helped establish the senior-level executive recruiting industry

> More than 300 consultants with a unique blend of professional search experience and specialized industry and functional expertise

> Experienced and highly knowledgeable associates, researchers and executive assistants round out client service teams and contribute to our knowledge of relevant candidate pools

Where we are

> In 54 offices in 29 countries around the world

> With select clients, from major multinationals to emerging companies and nonprofit organizations, helping to address their senior executive leadership requirements

> In the boardrooms of companies around the world, from the largest multinationals to private equity-backed businesses

What we do

> Partner with companies to find CEOs, presidents/COOs and their senior management teams, conducting more than 4,000 assignments each year

> In addition to executive search, we:

• Recruit exceptional directors and provide counsel on governance issues

• Assist boards in CEO succession planning

• Conduct management assessments of senior executives

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Our Services

We provide an integrated suite of leadership services, including:

Executive Search:Executive recruitment focused on CEOs, COOs and other top-level functional leaders

Board Services: Boardroom recruitment and governance counsel

CEO Succession Services: Consultative services for boards’ CEO succession planning needs

Executive Assessment Services:A proven, proprietary approach to helping clients more accurately evaluate the strengths of their senior leadership teams

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Our Practices

Industry Practices

> Clean Technology

> Consumer Goods & Services

> Education, Nonprofit & Public Policy

> Financial Services

> Industrial

> Life Sciences

> Private Equity

> Professional Services

> Technology, Communications & Media

Functional Practices

> Board Services

> Chief Executive Officer

> Diversity

> Financial Officer

> Human Resources

> Information Officer

> Legal Search

> Marketing Officer

> Sales Officer

> Supply Chain

Through our practices, we offer a deep understanding of the challenges our clients face in each industry and sector we serve, and of the competencies required for success in a variety of functional roles. Industry and functional specialists work in partnership and across borders to provide clients with the most comprehensive access to candidate pools.

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Sample of Spencer Stuart CEO Searches

Sherilyn McCoy, CEO2012

Sherilyn McCoy, CEO2012

Hubert Joly, CEO2012

Hubert Joly, CEO2012

Frits Van Paasschen, CEO2007

Frits Van Paasschen, CEO2007

Marissa Mayer, CEO2012

Marissa Mayer, CEO2012

Ray Lane, Chairman, 2010Leo Apotheker, CEO, 2010Meg Whitman, CEO, 2011*

Ray Lane, Chairman, 2010Leo Apotheker, CEO, 2010Meg Whitman, CEO, 2011*

Marc Lautenbach, CEO2012

Marc Lautenbach, CEO2012

John Lederer, CEO2010

John Lederer, CEO2010

Mark Thompson, CEO2012

Mark Thompson, CEO2012

Jose Almeida, CEO2011

Jose Almeida, CEO2011

Brian Kelley, CEO2012

Brian Kelley, CEO2012

Bill Brown, CEO2011

Bill Brown, CEO2011

Dave Calhoun, CEO2006

Dave Calhoun, CEO2006

Bryan Stockton, CEO2012

Bryan Stockton, CEO2012

Mike Polk, CEO2011

Mike Polk, CEO2011

Spencer Stuart conducts more than 300 CEO Search and Succession assignments annually and has the leading market share among S&P 500 companies.

Succession/Search with Internal Candidates

Chip Bergh, CEO2011

Chip Bergh, CEO2011

Brian Krzanich, CEO2013

Brian Krzanich, CEO2013

> Focus at the Top of the House: Leading Board of Directors practice and CEO Succession Practice. CXO and VP level work in the U.S. with flexibility to do director-level work outside the U.S.

> Speed: Spencer Stuart understands the urgency of recruiting new executives quickly. Our process is geared toward both speed and quality. Heavy company investment in knowledge managers, proactive ID, local and central research, etc.

> Senior Recruiters Lead the Effort from Start to Finish: Spencer Stuart recruiters have, on average, 10+ years of corporate experience and 10+ years of executive search experience. Our team remains engaged throughout the search to lead the effort.

> Focus on Culture Fit: Given our extensive knowledge of the candidate pool, our energies will be focuses not only on identification of an experienced executive but also on the “culture” and “business” fit of an executive who will excel in the client setting:

• Highest integrity with reputation for excellent quality work• Focused on accountability and business results and accustomed to aggressive growth goals• A collaborator who can play well in the “sandbox” with the existing senior team

> High Accountability on Recruiting Consultant: Client surveys at end of engagement are tied to bonus payments and are circulated to board members and senior management. This motivates us to meet and exceed your needs.

Why is Spencer Stuart Any Different than Other Global Competitors?

Potential Timeline for Completion

> Timing for key milestones is subject to travel schedule and availability of client team members and candidates.

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Key Milestones

> Environmental Interviews with senior management Start

> Finalize the position specification 48 hours

> Confirm target list of companies 48 hours

> Meeting to review long list of candidate profiles 2 – 3 weeks

> Introduction of first 2-3 qualified candidates 4 weeks

> First slate of candidate interviews 4-5 weeks

Sales Officer Practice

Chief Sales Officer Practice at Spencer Stuart

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With specialized sector and functional expertise, consultants in Spencer Stuart’s Sales Practice bring to each search an in-depth understanding of talent needs and marketplace realities.

Consumer Goods

& Services

Industrial

Financial Services

Life Sciences

Technology,

Communications, Media

Sales Operations

Major Account Sales

Vice President Sales

Channel Management

Licensing Sales

Chief Revenue Officer

Vice President Sales & Marketing

Business Development

Government Sales

CANDIDATE POOL EXPERTISE

SALES FUNCTIONS

Business &

Professional Services

> We are a global, dedicated team of 25 consultants, many with a sales background.

> We have conducted more than 1,000 sales searches over the past three years for clients that range from large multinational companies to private equity firms and their portfolio companies to emerging companies and nonprofit organizations.

> For each assignment, we assemble a “best team” combining industry knowledge with functional and geographic expertise. We also conduct ongoing calls to review market intelligence and candidate pool development.

Spencer Stuart Representative Sales Searches

TCMPrivate EquityLife SciencesIndustrialFinancial ServicesConsumer

Defining the Sales Officer Role

Sales Processes and Tools

National Account Management

Cross-Functional Collaboration

Recruitment and Development

Strategic Sales Skills

Communication, Influence &

Impact at CFO level

Business Services Expertise

Solutions Orientation

Major Account Management

Revenue Growth

Execution for Results

Building Teams

The sales officer function demands a combination of experiences and competencies that vary by organization

Sample Experiences Sample Competencies

Ultimately, needed experiences and competencies will be determined by requirements of the specific situation.

ClientVP Global Sales

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Spencer Stuart Sales Officer Practice - Candidate Qualification Diagnostic

> Revenue Quota

> Revenue Growth

> Revenue by region

> Revenue by product line

> Margin growth

> Customer segments

> Channel mix

> Hardware, software, services revenue split.

> etc.

> Reasons for revenue growth related to

> New Products

> New regional markets

> Competitive dislocation

> Maturity level of products and markets

> Degree of maturity of operational processes

> Growth in revenue compared to market share growth

> Turnaround? High growth? Mature with slow growth?

> Big company with matrix management, small company PE funded, etc.

> Development of new sales strategy to match new/existing corporate strategy

> What decisions were made to impact sales effectiveness related to:

> Customer segmentation

> Account coverage

> Processes and metrics

> Channel model dynamics

> Incentive compensation changes

> Performance management to raise individual and team effectiveness

> Ability to balance sales growth and profit maximization

> Talent management skills to attract and retain top talent

> Line experience and operating orientation

Performance Data

EnvironmentStrategic Impact

> Evaluation of key behavioral leadership competencies which map to:

> Best in class sales leader DNA

> Specific client competencies

> Leadership reputation internally and cross-functionally

> Ability to create a winning culture

> Philosophy on utilization of A, B and C talent across the organization

Sales DNA & Culture Fit

Multilayer Assessment of Potential Sales Prospects in Conjunction with Candidate Specification

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Evolution of the genus “Sales Officers”

The Science of Sales Has Become More Sophisticated

Performance Management & Compensation

Plans

Sales Process & Methodology

Account Management

Sales Strategy & Organization

Recruitment & Development

Rewards & Celebration

Sales Operations

Rotation & Succession

Planning

Technology (CRM, Pricing,

Quoting)

TRENDS

LEADERSHIP IMPLICATIONS

Emerging Sales Officer Trends

Sales Operations & TechnologiesFour Channel Model

Global Methodology

Consistency

> Lack of effective customer segmentation and mapping of sales channel

> Lack of effective collaboration to drive activity to the right internal organization

> Invest in world class sales operations not sales support

> Adoption non-negotiable at all levels

> Consistent cadence to increase chance of success

Inside Sales

Indirect SalesField Sales

eCommerce

Accountability

… and their leadership implications

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Maximize Selling Time

TRENDS

LEADERSHIP IMPLICATIONS

Emerging Sales Officer Trends

Localization of Global MarketsDated Go-To-Market Structures

Local Channel Preferences

Regional Customization

> Cost to serve specific customer segments way too expensive

> Outdated structure provides for coverage model

> Lack of clarity around selling skills to serve each customer segment

> 3 region structures no longer adequate

> Local language leadership required

> Cultural complexity with one region (i.e. Asia Pac)

Value Chain De-layering

Vicious Price Competition

Shorter Product

Profit Cycle

Solutions Selling Requirements

Exploding Emerging Markets

… and their leadership implications

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Expat Expirations

TRENDS

LEADERSHIP IMPLICATIONS

Emerging Sales Officer Trends

Scarcity of Strategic Skill Sets

> Develop skill sets in-house or recruit externally

> CEO’s and Vice Presidents of Sales need to agree on time required to develop sales strategy

>Recruit rigorously to find scarce skills.

Churn of top sales leaders

Short term pressures on

CEO

Fewer Sales Academies

Crushing 30/60/90 pipeline

requirements

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… and their leadership implications

Compensation Observations

> My data is a colored by B2B TCM, Industrial, Business Services:• $100Mn revenue- $200K-$225K base, 50% bonus plus equity – North America• $100Mn revenue - $300-$350K base, 50% bonus plus equity – Global• $500Mn revenue $300K-$350K base and $50% bonus plus equity - Global• $6Bn revenue - $450K base, 100% bonus, $400-$1M per year in annual equity

> Sign-on bonuses much less frequent since 2001. You must be leaving unvested equity on the table.

> Shift from options to RSUs and PSUs has been dramatic

> Overachieve plans on annual bonus are negotiable. Be prepared to discuss

> Initial equity grants most common. Clients encouraged to be generous to attract best talent. Candidates need to be around in 3-4 years to collect!

> Keep the recruiter in the middle on negotiations – ability to speak openly, get a reality check, and to enlist the recruiter to negotiate on your behalf without burning bridges.

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Tips on working with Executive Recruiters

> Develop one or two key contacts per firm in your industry vertical (i.e. consumer, industrial, technology) or function (i.e. sales officer practice at SSI). No need to meet every partner at the firm – we all talk and share candidate ideas.

> We are retained by clients to pursue candidates that meet our mutually-defined specifications. We cannot conduct a search on your behalf, but can be helpful in recommending you to our colleagues around the world. Please let us know your willingness to move to Asia or Europe.

> Develop your career as a “pure play” stock – excellence in a given function or industry segment is always well rewarded.

> Add data to the resume (dates, revenue before and after, team size, graduation dates).

> Be a good source and help with suggestions for others; this is much appreciated and expands your mindshare across the firm. We will not reveal your name as the source if requested.

> SSI conducts high level and high impact searches for small, medium and large companies but quantity per consultant per year is 10-15. If you do not hear from us, it does not mean we do not think you are terrific. Each search is a very unique combination of required skills, experiences, channels to market, products, etc.

> During interviews, there are only two real ways to crash and burn – huge ego and providing long-winded answers to short, concise questions.

> Self-awareness and self-assessment are extraordinarily well received and put you in another league of executive talent. Expertise, candor and humility are a great combination.

> “Check-ins” every 4-6 months are fine. Any more than that may produce a negative impact.

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