MERCER DATA SUBMISSION GUIDE - imercer - US … DATA SUBMISSION GUIDE MERCER 1 CONTENTS I....

MERCER DATA SUBMISSION GUIDE


MERCER 1

CONTENTS

I. Introduction ............................................................................................................................................................................................... 2

II. Survey Participation .................................................................................................................................................................................. 3• 1. Key Dates ...................................................................................................................................................................................... 3• 2. Survey Participation Tools .............................................................................................................................................................. 4

III. The Survey Cycle ...................................................................................................................................................................................... 6

IV. Survey Sections and Definitions ................................................................................................................................................................ 9• 1. Company Data Tab ........................................................................................................................................................................ 9• 2. Incumbent Data Tab ..................................................................................................................................................................... 23

2.1 Employee and Job Details ........................................................................................................................................................ 232.2 Base Salary .............................................................................................................................................................................. 412.3 Guaranteed Cash Allowances .................................................................................................................................................. 442.4 Short-term Incentives................................................................................................................................................................ 482.5 Long-term Incentives ................................................................................................................................................................ 552.6 Benefits (Company Car & Local Benefits) ................................................................................................................................. 62

• 3. Policy Tabs .................................................................................................................................................................................. 653.1 Short-term Incentives Tab ........................................................................................................................................................ 653.2 Long-term Incentives Tab ......................................................................................................................................................... 683.3 Benefits Tab ............................................................................................................................................................................. 763.4 Company Cars Tab .................................................................................................................................................................. 82


MERCER 2

IIntroductionParticipation is Easy!This survey participation guide is designed to make data submission for your surveys as easy as possible. It provides you with an overviewof the survey participation process followed by instructions for completing each section of the Excel ® questionnaire included in your datacollection kit (DCK). It also gives an overview of the survey cycle and all the resources available to help you complete the questionnaire.

Why Participate?In addition to significant savings on the purchase price of results, you receive greater functionality as a result of contributing yourorganization’s data to the database. MercerWIN® provides a high level of functionality, including the ability to:

Produce results for survey positions across functions in a single database Refine markets such as by location, revenue size or industry Define unlimited custom databases (Peer Groups) of participating organizations Exclude your data from calculations Compare your data to the market and view your competitive position Generate instant regressed data results on multiple markets Print a PDF of the survey results.

ConfidentialityMercer ensures all data collected in its questionnaires to be confidential. In instances where this data may be used in other survey reports,your organization name may appear in the participant list. In all cases, it is Mercer’s policy to continue to maintain the confidentiality of alldata submitted during the data collection process.

Data Integrity/Exclusion PolicyWhere necessary, Mercer staff will verify individual responses with participants. Mercer reserves the right to exclude data which it considersinvalid, cannot be verified by the participant, or may result in a breach of confidentiality for any survey participant.


MERCER 3

IISurvey Participation1. Key DatesEach survey has its own set of deadlines. The submission deadline will be clearly stated in the email notification informing you that yourparticipation materials are available for download on you imercer account. The key dates to keep in mind when working on your datasubmission are:

Questionnaire Distribution Date: This is the date when questionnaires are sent out to the survey participants. Most questionnaires aredistributed in late 1st quarter and early 2nd quarter.

Data Effective Date: this is the date from which all data reported in the questionnaire should be provided. If you are submitting data toMercer prior to the listed date, please take into account future adjustments that will be made and provide values as they will stand onthe data effective date. Any changes to company, incumbent or compensation data occurring after this date should be disregarded.

The only exception is the Actual Bonus, for which you need to provide information on actual payments made within 12 months predatingthe Data Effective date.

Data Submission Deadline: The data submission deadline is the date by which you must submit your questionnaire in order for Mercerto guarantee that your data can be used in the survey. If you foresee any difficulties in meeting the deadline, you should contact yourlocal Mercer Representative immediately.

Report Publication Date: This is the date when the report becomes available on MercerWIN®.


MERCER 4

2. Survey Participation Tools

QuestionnaireThe Mercer questionnaire is an Excel spreadsheet. Unlike in previous years, it does not contain macros and is not password protected.Please note, though, that some parts of it are blocked and you will not be able to change them.

The questionnaire is delivered to you via our secure site: www.imercer.com . We upload it to your personal account on this site and you arenotified via email when the questionnaire is available to download. The link to access the questionnaire is personal. If you’d like someoneelse to receive the questionnaire you need to either download it and forward it to your colleague, or request that we upload it to yourcolleague’s account. Your colleagues cannot access the questionnaire using the personal link in the notification.

Our questionnaire collects two main kinds of data:

Incumbent data: this is all the salary and demographic information collected per employee in the ‘Incumbents” tab. . It allows us topresent quantitative market statistics by job and also allows you to later ‘cut’ the data by a number of other criteria. The more details youprovide in the incumbents data tab, the more granular and customizable the database will be.Policy data: All other tabs in the questionnaire collect ‘Policy’ or ‘Prevalence’ data. Here, we collect information on the typical practice bycompany and not by individual employee. By gathering policy data we are able to present information on the prevalence of certainbenefits; in other words, we are able to present the percentage of companies that provide a certain benefit or that have a certain policyimplemented.

Job Matching BookletThe job matching booklet, also known as the job catalogue, contains the full list of jobs, codes and job descriptions covered by the surveysyou are participating in.

A critical part of participating in our surveys is choosing the closest possible Mercer Job to benchmark your internal jobs to. The JobMatching Booklet provides full details on Mercer’s job matching methodology and tips on how to most effectively carry out the job matchingexercise.

Participation WebinarsA number of live web trainings covering the survey participation process are held throughout the survey season. These sessions are free ofcharge and available to every survey participant. We also have recorded sessions available for clients who are unable to attend one of ourlive sessions. To view the schedule or register for a session click here: http://www.imercer.com/content/europe-events.aspx#web

http://www.imercer.com/

http://www.imercer.com/content/europe-events.aspx#web


MERCER 5

Survey Launch MeetingsMost markets offer a survey launch meeting slightly before or after questionnaire distribution. During the launch meeting, a MercerConsultant will take you through the participation process, Mercer Methodology and will answer any questions related to the survey andparticipation. A full list of meetings and dates is available here: http://www.imercer.com/content/trs_meetings.aspx

Consultant AssistanceYour local Mercer consultant or Clients Solutions Specialist is also available to answer questions. For a full list of contact details pleaseclick here http://www.imercer.com/content/TRScontacts.aspx

http://www.imercer.com/content/trs_meetings.aspx

http://www.imercer.com/content/TRScontacts.aspx


MERCER 6

IIIThe Survey Cycle


MERCER 7

Commitment to Participate:If your company has a membership agreement, your company HQ will appoint a contact in each country that is responsible for filling out thequestionnaire. If you would like to participate in one of our surveys and you are not sure if your Organization already has an agreement withMercer please contact us. List of contact details is available at: http://www.imercer.com/content/TRScontacts.aspx

Participation Material Distributed:Most questionnaires are distributed in late 1st quarter and early 2nd quarter. Questionnaires are delivered to you via our secure site:www.imercer.com . They are uploaded to your personal account on this site and you are notified via email when the questionnaire isavailable to download. The link to access the questionnaire is personal. Your colleagues cannot access the questionnaire using thepersonal link in the notification. If you would like someone else to receive the questionnaire you need to either download it and forward itto your colleague, or request that we upload it to your colleague’s account.

Survey Launch Meeting:Most markets offer a survey launch meeting slightly before or after questionnaire distribution. The main objectives of the launch meetingare:

To provide detailed information on the submission process To discuss job matching To network and discuss topics relevant to your daily work with other compensation and benefits professionals. A full list of meetings and

dates is available here: http://www.imercer.com/content/trs_meetings.aspx

All local survey participants are invited to the launch meeting. If you want to register for a launch meeting please contact your local Mercerconsultant.

Assistance with Job Matching and Data Submission:Throughout the survey cycle, your local consultant or Client Solutions Specialist is available to support you and answer any questionsregarding your data submission.

Data Submission Deadline:The data submission deadline is the date by which you must submit your questionnaire in order for Mercer to guarantee that your data canbe used in the survey. If you foresee any difficulties in meeting the deadline, you should contact your local Mercer Representativeimmediately.

http://www.imercer.com/content/TRScontacts.aspx

http://www.imercer.com/

http://www.imercer.com/content/trs_meetings.aspx


MERCER 8

Data Cleaning and Validation:A critical step in our process to ensure the quality of our data is the data cleaning and validation process.

Approximately two weeks after submitting your questionnaire, we will send “Data Validation File” to you. The “Data Validation File” is thesame questionnaire you submitted with checks and data validation questions. This file will be delivered to you in exactly the same way asthe original questionnaire. You are asked to go over the questions and issues highlighted in the Audit Workbook and return the correctedfile to Mercer by the deadline given to you.

Access to Results:On the survey publication date, you will receive a notification with your access details to the survey results on our platform MercerWIN®. Ifyou feel that you should receive access to a survey and haven’t received any access details, please contact your local MercerRepresentative.

MercerWIN® Demo Training Sessions:During this one-and-a-half hour session we will present MercerWIN® key features and functionality and show how this intuitive platformallows users to easily retrieve and synthesize vast amounts of data into usable packets of information relating to compensation and otherHR issues. The sessions are live and offer a Q&A session at the end. We also have recorded sessions available for clients who are unableto attend one of our live sessions. To view the schedule or register for a session click here: http://www.imercer.com/content/europe-events.aspx#web

Post-Survey Meeting:Most markets offer a post-survey or results meeting slightly after the publication of the survey. The main objectives of the post surveymeeting are:

To provide detailed analysis on the survey results To discuss key trends and findings from the survey To network and discuss topics relevant to your daily work with other compensation and benefits professionals.

All survey participants are invited to the results meeting. If you would like to register for a results meeting please contact your local Mercerconsultant.




MERCER 9

IVSurvey Sections and Definitions1. Company Data Tab

This section collects information on your organization:

Contact information (including legal organization/entity name) Industry in which your organization/entity operates Net Sales Revenue (or other financial figure if appropriate for the most recently completed financial year) Headcount (for the most recently completed financial year) Activity functions your organization/entity operates

All collected information will be used to properly size your organization, which is crucial to the process of benchmarking your employees.

This section also collects data on your organization's salary review (month of review, frequency, actual increases and factors determiningthem), overall remuneration target pay levels and information on critical jobs required to achieve your organization's targets. Depending onthe country, the section may also collect data on different cash allowances.Please note that a country-specific file should be completed for each country where you participate and also for each separate, autonomousorganization/company/entity within these countries.For example, if you wish to provide data for two wholly-owned but separate organizations operating in Germany, you are required to submittwo separate questionnaires.


MERCER 10

Contact Information The name of the person with whom Mercer may correspond regarding the submitteddata.

Organization Information Information regarding the organization including: the legal name of the organization(Latin alphabet only); organization type (parent/independent, subsidiary, multi-profitcenter (group) or division); the name and nationality of the parent organization (ifapplicable); the ownership type of the parent organization and the organization's contactdetails (postal address, telephone and facsimile.)

Ownership Type:Publicly Traded – A for-profit entity whose ownership shares are traded on a stockexchange – Note: Organizations with a parent company listed on a stock exchangeshould report themselves as publicly traded.Privately Held – A for-profit entity whose ownership shares are not publicly traded on astock exchangeNot-for-Profit (NPO) – A tax-exempt organization that does not declare a profit but usesall revenue available after normal operating expenses in service to the public interestJoint-Venture – An entity formed between two or more parties to undertake economicactivity togetherState-Owned Enterprise – A legally constituted organization whose objective is tosupport or engage in activities of public or private interest without any commercial ormonetary profit. In many countries, although some NPOs are charitable organizations,many are not.

Primary Industry Sector The industry sector in which the organization operates. Providing it is important forcategorizing each participating company in the participant profile and industryrefinements in MercerWIN®.

Completion Tips:List of Industry sectors is provided in questionnaires.


MERCER 11

Sales Revenue Growth

Operating Expenses

The net sales revenue for the current financial year and previous financial year, and theforecast sales revenue budgeted for the next financial year. Please provide informationfor the legal entity for which the questionnaire is being completed. If the exact numberscannot be provided, an estimate is required. Whether this section needs to becompleted is dependent on the chosen industry sector.

The operating expenses for the previous financial year. Please provide information forthe legal entity for which the questionnaire is being completed.

Total Assets Growth The total assets for the current financial year and previous financial year, and theforecast total assets budgeted for the next financial year. This section needs to becompleted only for Financial Services Industry Sector.

Headcount The total Full Time Equivalent (FTE) headcount of both local employees and expatriatesin the organization. FTE is a measurement equal to one employee working a full-timework schedule for one year. This figure will be the headcount figure as recorded in theorganization’s payroll (both permanent and contract staff).

Completion Tips:Please provide previous year's FTE, current one and also forecast for next year.

Market Capitalization The total market value of all of a company's outstanding shares. Market capitalization iscalculated by multiplying a company's shares outstanding by the current market price ofone share.

Countries/Surveys where applicable: Oil & Gas Exploration and Production Surveys

Production Levels The number of Barrels of Oil Equivalent Per Day (BOEPD).

Countries/Surveys where applicable: Oil & Gas Exploration and Production Surveys


MERCER 12

Expatriate Population The breakdown of the organization's expatriate population for each employee group.Please provide the percentage of the organization's employee population filled byexpatriates (those on home based or international contracts, and those who have beenlocalized i.e. on ‘local+’ contracts), as well as the remaining percentage of positionsfilled by all other employees, i.e. those on standard local contracts. Percentages shouldadd up to 100% in rows. The last column (‘Total’) presents the sum of the percentagesin each row – if it does not equal 100% it will be highlighted in red (otherwise it ishighlighted in green).In the Incumbent Data section, please exclude all expatriates from the survey, unlessyou are specifically requested to include the incumbents on localized/local + packages(i.e. in the Middle East and some African countries).

Hiring Intentions The organization's hiring intentions for the remainder of this year and forecast for thenext year.

Hiring Bonus The organization's provision of a hiring bonus (in order to attract employees with specificskills/high potentials.)

Countries/Surveys where applicable: Netherlands

Voluntary Staff Turnover The Number of employee (FTE) who resigned within the last calendar year expressedas a percentage of the average number of employees.

Total FTE resigned within last calendar year= ----------------------------------------------------------- x 100% Average FTE for the last year

Completion Tips:In order to receive the staff turnover rate, please take employees voluntarily leaving yourorganization in the last calendar year and divide this number by average number ofemployees in your organization in the last calendar year. The final number should bemultiplied by 100.


MERCER 13

Involuntary Staff Turnover The number of employees (FTE) who left the organization as a result of redundanciesretrenchments or performance-related dismissals within the calendar year expressed asa percentage of FTE.

Completion Tips:In order to receive the staff turnover rate, please take employees leaving yourorganization on employer's request in the last calendar year and divide this number byaverage number of employees in your organization in the last calendar year. The finalnumber should be multiplied by 100.

Organization's Activities The type of organization and value-added activity performed by the organizationaccording to IPE methodology.

Completion Tips:Please tick all the appropriate boxes. While filling in please refer to the table attachedbelow


MERCER 14

Type of Activity for Products OrganizationThe following value chain activities have been identified in organizations that develop, sell and service manufactured products.

Prod

uct

Dev

elop

men

t

Basic Research &Development

Primary research. Typically includes basic research and development activities where the eventualproduct and/or market potential are unknown. Generally characterized by a relatively modest rate ofsuccess (e.g., 20% of research eventually results in new products).

Applied Research &Development

Product development. Includes targeted R&D activities to develop a specific new product orenhancement of an existing product where the eventual market potential is more defined. Typicallyincludes development of preliminary product specifications and pre-production prototypes. Go-to-market decisions are generally made at this stage of development.

Engineering Production design. Final engineering of production-ready specifications and manufacturingprocesses.

Prod

uctio

n

Procurement/InboundLogistics

Input Supply and Management. Specific function responsible for obtaining manufacturing inputs,including raw materials and intermediate manufactured products. Generally responsible for allcontract negotiation, vendor management and spot market transactions. Also includes managementof inbound materials, including delivery scheduling, transportation, warehousing and inventorymanagement.

ProductionBasic manufacturing. Production of intermediate or final goods from raw materials. May includeintermediate manufactured products as part of the production process. Characterized by theconversion of materials to a new product with different characteristics (e.g., moulding of plastic intoauto parts).

Application/AssemblyAssembly of previously manufactured goods for market. Includes final assembly and packaging oftwo or more manufactured products (e.g., assembly of auto parts into a complete automobile). Mayinclude limited intermediate finishing of inputs.

Sale

san

dSe

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e

Marketing Independent of sales. Function responsible for internal market analysis and planning and externalcommunications, such as public relations, advertising and marketing collateral.

Sales Excluding marketing. Includes management of direct and indirect sales forces. Does not includeoversight of third-party distributors.

Distribution Outbound logistics. Includes warehousing and outbound transportation of goods to third-partydistributors and/or final customers.

Service After-sale service. Includes customer call centres and repair, service and support. Service may beoffered on warranty, contract or fee-for-service basis.


MERCER 15

Type of Activity for Services OrganizationThe following value chain activities have been identified in service organizations that provide product development, application of solutions,sales and customer service.

R&

D Idea & ConceptOrigination

Intellectual capital and/or technology development. Typically includes basic research anddevelopment activities where the eventual service and/or market potential for that service areunknown.

Ope

ratio

n

Generate ApplicationService definition. Includes the development of the service that will be offered and the specificsaround that service, such as tools and processes for service delivery. May also include thedevelopment of new markets for existing service lines.

Apply Solutions Delivery of solutions-based services. Generally includes idea-based services such as consultingand creative development where the customer is paying for ideas.

Sale

san

dSe

rvic

e Marketing Independent of sales. Function responsible for internal market analysis and planning and externalcommunications, such as public relations, advertising and marketing collateral.

Sales Excluding marketing. Includes management of direct and indirect sales forces.

DistributionPhysical delivery of service. Distribution of services to customers through personal contact. Includesremote contact via telephone, internet, etc. May include physical delivery of idea-based or non-ideabased services. "Apply Solutions" and "Distribution" always occur concurrently (but "Distribution"may occur without "Apply Solutions").

Customer Service Support. Includes customer call centres and post-service support.


MERCER 16

Type of Organization Parent/Independent Company – The highest reporting entity without any organizationabove it (i.e., parent organization). Typically, management and the board of directorsare responsible to shareholders for overall organization performance. Organizationswho are structured as Joint Ventures should report themselves as Parent.

Subsidiary- An independent entity with majority interest held by a corporate entity; oftenhas multiple business units and is responsible for all organization functions. Although asubsidiary may ultimately roll up into a corporate entity, management performs allfunctions of a stand-alone organization and is accountable to the corporate organizationfor operations and financial performance. The subsidiary is a legally chartered entitywith its own board of directors. Note: Hospitals who are majority owned by a college oruniversity and organizations whose parent is structured as a holding company shouldreport themselves as a subsidiary

Multi-profit Centre (Group) – An independent business unit consisting of multiple profitcenters or divisions. The group is held accountable to a corporate entity similar to asubsidiary. The difference between the group organization type and subsidiaryorganization type is that the group is not legally chartered and does not have a board ofdirectors.

Division – An independent entity accountable for all organization functions typically fora select group of organization product lines. Generally, a division consists of a singleprofit centre or operating unit that is fully accountable to the corporate, subsidiary, orgroup organization types.

Bonus Review Policy The organization's bonus review policy including the review month, the month duringwhich bonuses are calculated and the month during which bonuses are paid. Relevantmonths are indicated by ticking the appropriate boxes).

Completion Tips:If the timing of your bonus review varies by level/function or if you review bonuses on arolling basis on the anniversary of start date, please tick the appropriate box

Countries/Surveys where applicable: Energy Surveys


MERCER 17

Salary Review Policy The organization's salary review policy including: the frequency of formal salary reviewsto set policy or pay levels for individual employees; the review month; actual increasesby employee group for the current year; forecast increases by employee group for thefollowing year and factors determining salary increases.

Completion Tips:If the timing of your salary review varies by level/function or if you review salaries on arolling basis on the anniversary of start date, please tick the appropriate box.Actual increases by employee group for current year: these are the total increasesinclusive of cost-of-living/inflation and merit increases in respect of the full 12-monthperiod/calendar year.Forecast increases by employee group for the following year: these are the anticipatedincreases inclusive of cost-of-living/inflation and merit increases in respect of thefollowing 12-month period/calendar year.

Organization Remuneration Policy The organization’s target market pay level by employee group.

Changes to Remuneration Policies Information on the organization's changes to the pay elements of your remunerationpolicy (made in the last 12 months, or planned to be made in the next 12 months).

Long Service Awards Information on how long serving employees are rewarded by the organization.

Countries/Surveys where applicable: Kenya

Starter Salaries Information on the typical Annual Base Salaries or, for South Africa the typical AnnualGuaranteed Package for University Graduates in their first job.

Completion Tips:For South Africa inputs, if your organization has starter salaries denominated as BasicSalary then calculate the annual Guaranteed Package by using the formula: basic salarydivided by 75 multiply by 100.


MERCER 18

Overtime Work Information on how the organization compensates working overtime.

Countries/Surveys where applicable: Energy Surveys Poland

Regional Salary Differential Factor Information on regional differences in base salary.

Allowances Information on the allowances offered by the organization.

Type of Agreement The different types of agreements, other than a contract of employment, theorganization offers.

Countries/Surveys where applicable: Poland

Hot Jobs The job or function that is the most critical new hire for the organization to achieve thecurrent year budget/business plan; jobs for which the organization has difficultyattracting the right candidates and jobs for which the organization has difficulty retainingthe right candidates.

Contract Arrangements Information on specific termination arrangements in place for executive employees.

Countries/Surveys where applicable: UK

Contracted Terms Information on the organization's compensation for full time, daily paid and hourly paidemployees.

Countries/Surveys where applicable: UK Oilfield Engineering & Contracting Survey

Working Hours Information on flexible working hours at the organization.

Countries/Surveys where applicable: Gulf Countries


MERCER 19

Overtime Information on how the organization compensates working overtime.


Allowances Information on the type of allowances offered by the organization.

Countries/Surveys where applicable: Gulf Countries Czech Republic Jordan Romania Slovenia

Organization Information (Hiring Bonus) Information regarding the organization's provision of a hiring bonus in order to attractresources with specific skills/high potentials.

Countries/Surveys where applicable: Belgium

Organization Remuneration Policy Information about additional details concerning the organization's remuneration policy.

Countries/Surveys where applicable: Belgium Czech Republic Romania Slovakia

Compensation: Young Graduates Information compensation for graduates hired by the organization.

Countries/Surveys where applicable: Algeria Egypt Libya Morocco Tunisia


MERCER 20

Professional Training Program Information on budgeting and eligibility of professional training programs available foryour employees.

Countries/Surveys where applicable: Algeria Egypt Libya Morocco Tunisia

Redundancy Information on the organization's redundancy policy.

Countries/Surveys where applicable: Ireland Italy

Changes to Remuneration Policies Information on the organization's changes to the pay elements of remuneration policy(made in the last 12 months, or planned to be made in the next 12 months).

Countries/Surveys where applicable: Ireland Italy MERG PEFS

Recent Graduates Information on conditions of recent graduates employment by the organization (type ofemployment contract, hiring bonus, non-competition agreements, permanencepremiums).

Countries/Surveys where applicable: Italy

Promotions Information on the organization's formal criteria for the promotions.



MERCER 21

Career Ladders & Succession Plans Information on the organizations structured career ladders.


Salary Review Policy The salary review policy of the organization. This includes information on frequency offormal salary reviews to set policy or pay levels for individual employees, review month,actual increases by employee group for current year, forecast increases by employeegroup for the following year and factors determining salary increases.

Countries/Surveys where applicable: Romania

Organization Guaranteed Pay Structure Countries/Surveys where applicable: South Africa

Sign-On Bonuses A sum of money paid to a new employee by a company as an incentive to join thatcompany. They are often given as a way of making a compensation package moreattractive to the employee (e.g., if the annual remuneration package is lower than he orshe desires).It also lowers the risk to the company as it is a one-time payment; for example, if theemployee does not meet expectations, the company has not committed to a highersalary.

Countries/Surveys where applicable: South Africa

Retention Bonuses A payment or reward outside of an employee's regular salary that is offered as anincentive to keep a key employee on the job during a particularly crucial business cycle,like a merger or acquisition, or during a crucial production period. In recent years,retention bonuses have become increasingly popular as corporate poaching hasincreased



MERCER 22

Holiday and Time-Off Benefits Information on holidays and benefits provision during employees' time-off.


Loans Information on loans provided to employees by the organization.



MERCER 23

2. Incumbent Data Tab

This section collects remuneration data of all employees who can be matched to MERCER UNIVERSAL POSITION CODING SYSTEM®(MUPCS®), including all executive positions.

If you have more than one incumbent in a job (i.e. 20 sales representatives), please provide data for each incumbent separately; they wouldall have the same MUPCs® code, however they are likely to have different compensation levels and benefit entitlements.For new hires, please do not provide pro-rated actual data for allowances and bonuses, but provide estimated allowances and bonuses forthe whole year of service.

2.1 Employee and Job Details

This section collects detailed information on the incumbent and the job. The most important columns that should be completed there are:

Employee IdentifierMUPC® (Mercer Universal Position Code®)Position Class

Employee Identifier A unique alphanumeric identifier of up to 9 characters for each incumbent reported. Thecode should preferably remain unchanged from year to year (to help identify trends).The identifier will serve as a reference for any questions on data submitted. Should youpurchase the results in Mercer WIN, the code will help identify your incumbents andcompare your data to the market. For the data confidentiality reasons please do not useemployees' names or initials or otherwise reference your organization or products.Personal Information (names, last name, security number) will be replaced with randomnumber due to the confidentiality rule.

Completion Tips:Submit a unique identifier specific to your organization for each incumbent reported.Using unique incumbent identifiers consistently from year to year better identifies trends.For data confidentiality reasons, please do not use full Organization/product/employeenames/employee initials.


MERCER 24

Mercer Universal Position Code® (MUPC®) The Mercer survey position code used to identify each incumbent’s position. Eachposition code must correspond to a position code provided in the Mercer Job MatchingBooklet supplied with the questionnaire. Please do not leave blank or enter two codesfor one incumbent.

Example: If matching a Human Resources Manager, enter position code 120.100.220.

Completion Tips:Enter the position code to identify each position being reported. Please refer to the JobMatching Booklet of the survey you are participating in for a complete listing of theposition codes, titles and job descriptions

Countries/Surveys where applicable: Not applicable in UK Power Generation Survey

Position Title This field contains formula and will be pre-populated based on the MUPC® selected.If the Mercer title does not appear, an invalid code has been entered.

Countries/Surveys where applicable: Not applicable in UK Power Generation Survey

Product / Module (for Reference Only) This field contains formula and will be pre-populated based on the MUPC® selected. Itreflects product/module name for which selected code is applicable according to JobCatalogue.

Countries/Surveys where applicable: Applicable for DCKs that collect data for more than one product


MERCER 25

Therapeutic Area Flag The Therapeutic Area Flag permits the client to indicate the Life Science specialty of theemployee. The benchmark positions for which it is applicable can be found in the jobmatching booklet. Use drop-down list to select appropriate flag:

Animal Health – Medicinal products intended for use in the diagnosis, cure,mitigation, treatment, or prevention of disease in animals

Bio/Pharmaceuticals – Diverse non-specialized ethical/prescription drugs Bio/Pharmaceuticals – Specialty – Diverse specialty ethical/prescription drugs e.g.

Analgesics, Dermatology, CNS, Ophthalmology Cardiovascular – Medicines related to the circulatory (cardiovascular) system Generics – Medicines which are produced and distributed without patent protection Medical Devices: Capital Equipment – Robot surgical systems, laser correction

systems, MRI equipment, ICU monitoring systems Medical Devices: Consumables/Disposables – Reagents, disposable surgical tools,

towels, sponges, contact lenses Medical Devices: Durable Goods – Pumps, hand held devices, surgical tables, beds,

defibrillators Medical Devices: Implantable Devices – Dental implants, orthopedic implants, heart

valves, pacemakers, corneal implants Oncology – Medicines related to the treatment of cancer OTC – ‘Over-The Counter’ medicines that may be sold directly to a consumer

without a prescription from a healthcare professional, in contrast to prescriptiondrugs, which may be sold only to consumers possessing a valid prescription

Vaccines – Biological preparations that improve immunity to a particular disease

Countries/Surveys where applicable: Mercer Life Science Surveys

Organization Job Title The internal title used by the organization for this position. Example: HR StrategyManager. Personal Information (names, last name, brand name, company name) will bereplaced with random number due to the confidentiality rule.


MERCER 26

Organization Job Title – Last Year The internal title used for this position by the organization for this position in the previousyear. Example: HR Strategy Manager.


Organization Job Code The internal position code used by the organization for this position (optional). Example:HR-BU4.

Organization Job Level The job level for this incumbent (for organizations with an internal job leveling system.)This could be the number of reporting positions below the head of the organization orcould be a category such as ‘manager’ or ‘executive’. This information is useful for datachecking purposes, to link jobs to benefits policies, and to organize survey reportsaccording to level.

Organization Job Grade The job grade for this incumbent (for organizations with internal job grading orevaluation systems). This information is useful for data checking purposes, to link jobs tobenefits policies, and to organize survey reports according to level.

Organization Job Grade – Last Year The internal position grade used for this position by the organization in the previousyear.


Organization Job ID – Other An optional additional field for any other data that helps to identify the position.

Unit/ Unit Code An optional additional field for any other data that can be used to identify the incumbent.

Countries/Surveys where applicable: Estonia Latvia Lithuania Finland


MERCER 27

Role Level The column reflects material differences in complexity and responsibility. Eachemployee must be assigned to the level which most closely fits their current tasks andresponsibilities.

Countries/Surveys where applicable: UK Power Generation Survey

Power Station Fuel Type The type of Power Station in which the employee works. Use the drop-down list to selectthe appropriate code based on the legend below:G = Gas-powered stationC = Coal-powered stationO = Other power stationN = Nuclear Station

Countries/Surveys where applicable: UK Power Generation Survey

Department in Your Organization The internal name of the department where this incumbent works in the organization.

Countries/Surveys where applicable: Portugal


MERCER 28

Mercer Specialization Code/Flag The specialization flags apply only to Engineering roles and are the equivalent ofchoosing a sub family within Engineering in the previous methodology.The specialization flag is an important component of the job matching and should beused in conjunction with the job code wherever available. The purpose of these flags isto help you identify salary differentials, if any, based on various specializations ordisciplines within a position. Position codes requiring a specialization flag are indicatedin the Job Matching Booklet. These positions match exactly one position code and onegeneric position description. To record the specialization of the position, you will need toadd a specialization flag:

Credit Risk – CRM Market Risk – MRM Quantitative Risk – QRM Operational Risk – ORM Scheduling/Shift Trading – OSS Demurrage/Claims – ODC Contracts – OCO Commercial – OCM Freight & Chartering – TFC Proprietary – TPR Portfolio – TPO Portfolio & Proprietary – TPP Structured – TST Short-term – STO Long-term – LTO

Countries/Surveys where applicable: Global Energy Trading Survey Norway Oil and Gas Exploration and Production Survey UK Oil and Gas Exploration and Production Survey UK Oilfield Engineering Contracting Survey


MERCER 29

Primary Commodity (Other Commodity) The commodity traded by the incumbent. Use the list below to select appropriatecommodity:

Coal – CCO Gas – CGA Power – CPO Oil Crude – COC Oil Products – COP LNG – CLG Renewable – CRE Other – COT

Completion Tips:There are two columns: Primary Commodity and Other Commodity. Please fill in both:first one with the main commodity and the other with second commodity (if applicable)traded by the incumbent.

Countries/Surveys where applicable: Global Energy Trading Survey

Contractor Type Indicates the way the employee was hired. If the incumbent was a direct hire, pleaseselect ‘Company Direct Hire''. If the incumbent was hired by an agency, please select‘Agency Worker’.

Countries/Surveys where applicable: UK Oilfield Engineering and Contracting Survey


MERCER 30

IPE Position Class (Current Year) Position Class is a way to describe a size of Benchmark based on IPE – Mercer'sposition evaluation system. IPE is designed to allow companies to compare variousaspects of jobs across job families and organization types and rank positionsaccordingly. The evaluation consists of five factors: Impact, Communication, Innovation,Knowledge, and Risk. Each factor is divided into degree levels that are allocated aspecific number of points. Points accumulated from across the five factors to determinethe overall position class.

Completion Tips:Position Evaluation (IPE) system, please enter the position class for this incumbent.If your organization uses Mercer's International Position Evaluation (IPE) system, pleaseenter the position class for this incumbent. If you require any assistance with this, pleasecontact your local Mercer consultant.

Countries/Surveys where applicable: Not Applicable in Energy Surveys

IPE Position Class (Previous Year) The Mercer Position Class used in the previous year.

Name of Sizing Methodology Used (e.g. HayPoints)/Position Evaluation MethodologyUsed

The position evaluation methodology used. Please choose from the following options:

No Position EvaluationMercer IPEHay PointsTowers WatsonOther

Countries/Surveys where applicable: Netherlands Italy MERG PEFS


MERCER 31

Organization IPE Size The size of the organization based on sales revenue, headcount and company valuechain. It is used to generate Position Class for each incumbent.

Countries/Surveys where applicable:Not Applicable in Global Energy Trading, UK Oilfield Engineering and ContractingSurvey, UK Power Generation Survey

Employment Category The group of employees that the particular incumbent belongs to. Please choose fromthe following options:

1 – Dirigenti (Senior Management)2 – Quadri (Junior & Middle Management)3 – Impiegati (Other Employees)4 – Operai (Workers)


For Executive Roles Only: Level of Incumbentin the Organization

The level of the incumbent in the organization (consider the organization from aCorporate perspective not country one): This should be completed only for ExecutiveRoles.

Level 1 – CEOLevel 2 – Direct reports to CEOLevel 3 – Reports to level 2Level 4 – Reports to level 3.

Countries/Surveys where applicable: Italy MERG PEFS


MERCER 32

Member of Board or Executive Committee Indicates whether the incumbent is a Member of Board or Executive Committee.

Countries/Surveys where applicable: Italy MERG PEFS

Geographic Scope of Role The geographical scope of the incumbent's responsibilities. Select from the drop-downlist:

10 – Global20 – Multi Regional (2-5 regions)30 – Regional (e.g. Europe)40 – Sub Regional50 – Multi Country (3-8 countries)60 – Complex Domestic (2 countries)70 – In Country80 – District (part of the country)


MERCER 33

Revenue for Business in Which Role Sits(in Millions EUR)

The revenue for the business within the scope of responsibilities of the incumbent. Thisshould be filled out when Organization size used is missing and the incumbent’sgeographic scope of role is different than stated in the Company Data tab. In mostsurveys the revenue should be provided in millions EUR format. For other surveysplease follow instructions from column header. Use drop-down list to select theappropriate range:

1 – 0 – 2 11 – 816 – 1,4232 – 2 – 5 12 – 1,423 – 2,4903 – 5 – 9 13 – 2,490 – 3,7354 – 9 – 19 14 – 3,735 – 5,6025 – 19 – 38 15 – 5,602 – 8,4036 – 38 – 76 16 – 8,403 – 12,6047 – 76 – 152 17 – 12,604 – 18,9068 – 152 – 265 18 – 18,906 – 28,3599 – 265 – 465 19 – 28,359 – 42,53810 – 465 – 813 20 – 42,538 +

Countries/Surveys where applicable: Not Applicable in South Africa, UK Power Generation Survey

Headcount The headcount only for exactly compensated incumbents occupying the same (normallymass) position.

Countries/Surveys where applicable: Russia

Employee Group Indicates type of incumbent

Applicable in Belgium and Luxembourg:1 – cadre/cadres/ader2 – non-cadre/non-cadres/niet-kader

Applicable in Finland:Professional/Managerial


MERCER 34

Salaried Employee

Countries/Surveys where applicable: Belgium Luxembourg Finland

Year of Birth The year the incumbent was born. Please provide the answer in YYYY format.

Year of Hire The year the incumbent was hired by the organization. Please provide the answer inYYYY format.

Countries/Surveys where applicable: Not Applicable in Norway Oil and Gas Exploration and Production Survey

Years in Current Role / Experience in theSame Function

The number of years the incumbent has been in their current position.

Countries/Surveys where applicable: Israel Morocco

Seniority in the Current Position The year from which the incumbent been in their current position. Please provide theanswer in YYYY format.

Countries/Surveys where applicable: Belgium Netherlands Luxembourg

Gender/Sex The gender of the incumbent. Please provide the answer as M (for Male) or F (forFemale) only.


MERCER 35

Race Code The race of the employee. Use the drop-down list to select the most appropriate option:

1 – Indian2 – Black3 – Colored4 – White5 – Unknown


Date of Last Annual Pay Review DD/MM/YYYY The date of the last annual pay review. Please provide the answer in DD/MM/YYYYformat.


Number of Working Days Annual LeaveEntitlement

The number of working days the incumbent is entitled to annually. If the organization'sleave is stated in calendar days, please use the following formula to convert the figure:Calendar days divided by 365 multiplied by 260 = Working Days


Education Level The highest level of education that the employee has attained. Use the drop-down list toselect appropriate level of qualifications.

Applicable in Finland:1 – Comprehensive school2 – Upper secondary school/high school3 – Secondary education4 – Polytechnic degree / lower university degree5 – University degree6 – Doctor's degree

Applicable in Morocco:1 – Self-taught, primary, secondary


MERCER 36

2 – Baccalaureate or baccalaureate level3 – DUT, BTS, DEUG (2-year post-baccalaureate)4 – 4 years’ post-baccalaureate study5 – Engineer diploma6 – 5 years’ post-baccalaureate study7 – 6 years and more post-baccalaureate study8 – Major foreign business or engineering schools9 – 3 years’ post-baccalaureate study

Applicable in Portugal:1 – No Qualifications2 – Primary School3 – Junior School4 – Middle School5 – High School6 – Bachelors7 – Degree8 – Masters9 – PhD

Countries/Surveys where applicable: Finland Morocco Portugal

Relevant Higher Degrees The higher degrees which have been attained by the employee (not first degrees butmaster's degrees or doctorates).

Countries/Surveys where applicable: Norway Oil and Gas Exploration and Production Survey UK Oil and Gas Exploration and Production Survey UK Offshore Survey


MERCER 37

Professional Qualifications The professional bodies of which the employee is a member. This may includeorganizations such as engineering institutes, the Institute of Chartered Secretaries andAdministrators, the Institute of Chartered Accountants, the Chartered Institute ofPersonnel Management, etc. This information is useful to us in checking the validity ofrole matching (for example, we would expect holders of certain positions to beprofessionally qualified).

Countries/Surveys where applicable: Global Energy Trading Norway Oil and Gas Exploration and Production Survey UK Oil and Gas Exploration and Production Survey, UK Oilfield Engineering and

Contracting Survey UK Offshore Survey UK Power Generation Survey

Employees Managed/Number of EmployeesSupervised

The number of employees directly supervised by the incumbent.

Countries/Surveys where applicable: Morocco UK Oilfield Engineering and Contracting Survey

Reports to Indicates the supervisor of the incumbent. The position title of the supervisor andEmployee Identifier are acceptable.

Countries/Surveys where applicable: Algeria Bahrain Egypt Iran Iraq Jordan Kuwait Lebanon Morocco

Oman Qatar Saudi Arabia Tunisia United Arab Emirates Yemen UK Oilfield Engineering and Contracting Survey


MERCER 38

Region Job is Located/Employee Workplace(City Location)/GeographicalWorkplace/City/Location

The region or city where the incumbent is located. Select from the drop-down list or useinstructions from column header as necessary.

Countries/Surveys where not applicable: Kenya ITT Nigeria ITT South Africa Tunisia, Germany Global Energy Trading Norway Oil and Gas Exploration and Production Survey

Postal Code Job is Located The postal code of the location where the employee is located. Please use only oneofficial code.

Countries/Surveys where applicable: Germany Switzerland

Nationality of Passport The nationality of the incumbent. Please use drop-down list to select the appropriatenationality. If the country is not on the list, please choose option ‘Other’.

Countries/Surveys where applicable: Algeria Bahrain Egypt Iran Iraq Israel Jordan Kuwait Lebanon Libya

Morocco Oman Qatar Saudi Arabia Tunisia United Arab Emirates Yemen Kenya ITT Nigeria ITT


MERCER 39

Payroll Nationality The nationality of incumbent's payroll.

Countries/Surveys where applicable: Global Energy Trading Survey

Type of Contract* Indicates whether the incumbent was hired on a local contract or is an expatriate on alocalized/’local+’ contract. Use drop-down list to select appropriate type of contract:

Local contract – employees that are paid according to the local salary levels, salarystructure and salary administration guidelines, with no 'expatriate-type' benefits included.

Local Plus contract – employees that are paid according to the salary levels, salarystructure, and salary administration guidelines of the host location, plus are providedsome 'expatriate-type' additional allowances or benefits such as housing, dependents’education, enhanced transportation support, etc.

Countries/Surveys where applicable: Algeria Bahrain Egypt Iran Iraq Israel Jordan Kuwait Lebanon Libya

Morocco Oman Qatar Saudi Arabia Tunisia United Arab Emirates Yemen Kenya ITT Nigeria ITT


MERCER 40

Type of Contract** The type of contract or collaboration form used by the incumbent. The two options tochoose from are:

1 – PFA – Services contract with a legal entity or an individual legal entity.2 – Standard Labor Contract – Individual Labor contract as per the legal provisions ofthe Labor Code.

Countries/Surveys where applicable: Romania


MERCER 41

2.2 Base Salary

This section collects information on the incumbent's base salary as of the survey effective date (gross, excluding any allowances). For part-time employees, please provide the full-time equivalent base salary. For employees who only worked a portion of the year and received apro-rated amount due to hire date or leave of absence, please provide annualized salary. You may provide either monthly or annual values,according to your preference (please insert in the appropriate column). Please make sure that the currency code and number of monthspaid are provided as well. Incumbents with no information provided in the base salary section will be removed from the survey.

South Africa has a unique approach to guaranteed pay structuring and few local organizations follow the typical base salary plus add-onallowances and benefits approach. Majority of organizations follow the Guaranteed Package structure approach (sometimes referred to ascost-to-company approach). For more details on Guaranteed Package structure approach please refer to Guide provided in South Africadata collection kit.

Additional Months Pay (ILS) The total value of any additional salaries (for example 13th or 14th month salaries)received above the typical 12 month base salary.

Countries/Surveys where applicable: Israel

Annual Base Salary (Full Time Equivalent) The guaranteed base salary from the data effective date (gross; excluding anyallowances). For part-time incumbents the equivalent full-time salary should be listed.You are not required to fill in this column if you have provided the monthly base salaryand number of months paid in the appropriate columns. The amount should be providedin the currency indicated in the Currency Code column.

Annual Base Salary for Previous Year The guaranteed base salary for the previous year (gross, excluding any allowances).For part-time incumbents the equivalent full-time salary should be listed. You are notrequired to fill in this column if you have provided the monthly base salary and numberof months paid in the appropriate columns. The amount should be provided in thecurrency indicated in the Currency Code column.

Currency Code The currency of salary for the incumbent. Use drop-down list to select the appropriatecurrency.


MERCER 42

Current Contractor Pay Rate The amount paid over the interval specified in the Pay Interval column, i.e. thehourly/daily/weekly/monthly/yearly rate for the contractor. If the contractor is an AgencyWorker, please enter the amount paid to the agency; if the contractor is a CompanyDirect Hire, enter the amount paid directly to the contractor. The value should be theamount paid over the period the contractor was engaged, exclusive of any regionalweightings or any other cash allowances. The amount should be the pay rate receivedby the contractor exclusive of any agency fees.


Current Employer Cost The full cost of the contractor’s pay rate to the organization, including any Agency feesetc. Please leave blank if no additional pay rate costs are incurred by the organizationbeyond that reported in the Current Contractor Pay Rate column.

Has This Incumbent Changed Role From LastYear/Survey?

Indicates whether the incumbent has changed the role from last year/survey. Usually itrefers to the time period from last survey effective date to the effective date for thecurrent survey. Pay attention to any additional instructions in the column header.

Hours Worked per Week The total number of hours worked by the incumbent in one week.

Countries/Surveys where applicable: Bulgaria Macedonia

Monthly Base Salary (Full Time Equivalent) The guaranteed monthly base salary from the data effective date (gross; excluding anyallowances). For part-time incumbents the equivalent full-time salary should be listed.You are not required to fill in this column if you have provided the annual base salaryand number of months paid in the appropriate columns. The amount should be providedin the currency indicated in the Currency Code column.

Number of Months Paid The number of times monthly base salary is paid in one year (12, 13 etc.).


MERCER 43

Part-Time Factor A percentage reflecting the extent to which an incumbent works full or part-time. Forexample, if the incumbent works full time, then complete the cell with 100. If theincumbent works 4 full days a week then enter 80).

Countries/Surveys where applicable: Belgium Netherlands Luxembourg

Pay Interval The payment interval used for the contractor’s pay rate. Please use:

H – Hourly paidD – Day rateM – Monthly paidY– Annual rate.

For example, if the contractor is paid £25 per hour type ‘H’ in this column and ‘25’ in thePeriod of Contract column.


Period of Contract The period of time for which the contracted rates reported for this contractor apply (e.g.2 weeks, 6 months). In cases where a contractor has been employed more than once atdifferent pay rates during the past year, please enter all the contracted periods asseparate records on different spreadsheet rows.



MERCER 44

2.3 Guaranteed Cash Allowances

This section collects information on cash allowances which are guaranteed to the employee regardless of their performance. They can beeither paid out in cash, as an addition to the base salary or in form of vouchers or coupons and may significantly vary from country tocountry. Employees are usually given cash allowances in order to cover the costs of, for example, meals or transportation.We are looking for the annualized values of allowances paid out within the last 12 months from the survey effective date.

Annual Amount of Daily Cash Allowance Annual amount of daily cash allowance offered to incumbents with an external role, e.g.to sales employees

Annual Board Member Indemnity A special indemnity for members of the board.

Annual Cashier Indemnity A special indemnity for cashiers and counter-clerks in charge of cashing and paymentoperations.

Annual Clothes Indemnity A guaranteed allowance for employees for clothing expenses. Not actualreimbursement.

Annual Club Subscription Amount A subscription fee for golf club or equivalent membership.

Annual Convalescence Pay Each employee is eligible for an annual convalescence allowance (as mandatory bylaw), which is usually paid according to a uniform tariff per day of convalescence,multiplied by the number of convalescence days to which an employee is eligible. Thenumber of convalescence days varies according to employee's period of service.

Annual Fix Overtime A fixed amount provided to employees for any additional time worked regardless of timespent or base salary.

Annual Furniture Allowance A guaranteed allowance or cash reimbursement provided to cover the cost of furnitureexpenses.

Annual Hazardous Premium A guaranteed allowance provided to employees to acknowledge and compensate fortheir working in a hazardous environment.


MERCER 45

Annual Holiday Bonus/Allowance The total of guaranteed cash allowances provided to employees on special holidays(Three Festival, New Year).

Annual Housing Allowance A guaranteed cash allowance given to subsidize housing. 2. In terms of mobility, anamount paid by the company, either to an expatriate or the landlord, to cover all or partof the cost of rent or lease for accommodation in the host country.

Annual National Allowance An allowance for which only Nationals of the host country are eligible.


Annual Non-Competition Agreement Amount A guaranteed allowance provided to employees on the basis that they have signed anon-compete agreement (or similar agreement pertaining to any future work by theemployee within the same sector.)

Annual Religious Allowances A guaranteed allowance associated with particular religious holidays.

Annual Relocation Allowance An allowance amount covering the costs of settling into the residence (for incidentalsand items necessary to begin household operation such as voltage converters, tips,excess shipping, registrations, membership loss, passport photos) and generally paid asa lump sum, with no receipts necessary for documentation.

Annual Representation Amount/Indemnity An allowance granted to cover allowable items of expenditure by employees whoseofficial positions entail responsibility for establishing and maintaining relationships ofvalue to the company.

Annual Responsibility Allowance A guaranteed cash allowance for employees to compensate for large responsibility.

Annual School Allowance A guaranteed allowance to contribute towards the employee’s child or children. It doesnot include actual reimbursement.

Annual Seniority Allowance/SeniorityPremium

A guaranteed allowance provided to employees after a specified defined length ofservice.


MERCER 46

Annual Shift Allowance Amount An allowance for employees who work on a shift that is not a regular day shift such as9:00 to 17:00 hours, Monday through Friday. The allowance is paid if the shiftrepresents a hardship or if competitors provide a similar premium.

Annual Utilities Allowance A guaranteed cash allowances or cash reimbursement for utilities expenses

Annual Variable Overtime A variable amount provided to employees for any additional time worked.

Annual/Monthly MealAllowance/Benefit/Luncheon Vouchers

A benefit provided to employees to cover meal related expenses, whether in the form ofvouchers or a guaranteed cash allowance.

Christmas Bonus/Allowance A bonus or guaranteed allowance given for Christmas.

Company Car Eligible The type of company car benefit applicable for each incumbentCountries/Surveys where applicable:Applicable in Israel

For other standard countries car information is available in Total Remuneration partsuch as Company Car information.

Easter Allowance A guaranteed allowance associated with Easter

Extra Collective Agreement Compensation(Mlivre)

The compensation for hours worked in excess of the average amount stipulated in theemployee's collective agreement.

Local Feast Allowances (Adha/Achoura) An amount of money paid due to the important religious holiday celebrated by Muslimsworldwide

New Year's Allowance A guaranteed allowance associated with New Year.

Number of Shifts The agreed number of working sessions (for example 9.00 to 17.00) between theemployer and employee.


MERCER 47

Other Annual Non Taxable Indemnities A synonym for compensation or reparation. Indemnity, compensation and reparation canall be defined as obligations to act on an injured party's behalf given the occurrence of acontractually-specified event. Indemnity however as a legal concept has a much broadermeaning than the other two terms; namely, an indemnity is to make a party to a contract‘whole’ again should that contractually-specified event occur.

Countries/Surveys where applicable: Tunisia Algeria Morocco

Other Annual Taxable Allowances A guaranteed allowance provided to employees which is subject to taxation.

Other Annual/Monthly Guaranteed Allowance The combined total of annual/monthly payments guaranteed to employees.

Other Guaranteed Allowances (Description) A guaranteed allowance which has not been listed in the questionnaire.

Completion Tips:Please provide details of allowances that are provided by your company.

Other Guaranteed Allowances (Gross) The gross sum total of any other guaranteed allowances provided to the employee.

Other Guaranteed Allowances (Net) The net sum total of any other guaranteed allowances provided to the employee.

Transportation Allowance A guaranteed cash allowance given to subsidize transportation to and from work. Thisdoes not include any benefit provided by the organization's company car policy (pleasedo not confuse the transportation allowance with allowance in lieu of the company car orsum of car expenses covered by the organization). The allowance is normally providedto all employees in the organization (providing the organization has a transportationallowance policy) regardless of their role or status.


MERCER 48

2.4 Short-term Incentives

This section collects information on short-term incentive payouts, eligibility, targets and maximums. Short-term incentive plans are incentiveplans with awards related to performance against selected criteria over a period of one year or less. These include:

Performance related bonuses Sales bonuses Sales commissions Profit sharing schemes (mandatory and voluntary) Other bonuses Exceptional premiums

Target amounts or percentages should reflect the payout if all goals or targets for the year are met.Maximum amounts or percentages should reflect the maximum allowable incentive in cases where incentives are capped.For actual incentives, please enter the incentive amounts earned (but not necessarily paid out) in the most recently completed twelve-month incentive performance period.Short-term incentives should be entered as full-time equivalents for part-time employees. They should also be annualized if an employeereceived a pro-rated amount due to hire date or leave of absence.

Annual ‘Una Tantum’ An outstanding or maximum cash payment (or payments) that is associated with a salesachievement assigned for the current year. If the employee is eligible to receive acommission, please enter a percentage.

Countries/Surveys where applicable: Specific for Italy

Do You Defer Part of the Bonus? A bonus can be deferred over time with the potential inclusion of performance-basedvesting criteria which considers how business results in an award year develop over amulti-year period (e.g., in 2015 performance of 2012 will be tested).

Completion Tips:Indicate if part of the bonus is deferred by selecting ‘Y’ or ‘N’ from the drop down box.

Countries/Surveys where applicable: Specific for Italy


MERCER 49

Exceptional Premium A non-guaranteed payment or multiple payments that is not related to performance orsales incentive plans for example (discretionary bonuses or Christmas Bonuses.)

Completion Tips:Annualize the amount if this individual is eligible and received a pro-rated amount basedon date of hire and leave.

Countries/Surveys where applicable: France

Is bonus pensionable? A bonus payment which counts towards the total earnings used to calculate pensionbenefits.

Completion Tips:Indicate if the bonus payment is pensionable by selecting ‘Y’ or ‘N’ from the drop-downbox.

Countries/Surveys where applicable: Denmark Italy

Mandatory Profit-Sharing (Target as % ofBase)

A Mandatory Profit Sharing Plan for firms with 50 or more employees, also known as‘Plan de Participation’. It aims to provide employees with a share of company profits.Plans are based on corporate performance with a pre-determined payout formula for alleligible employees. The target percent should reflect the payout if all corporateperformance targets for the year are met.

Completion Tips:Example: If your target is 5% please enter ‘5’, not ‘0.5’.


MERCER 50

Maximum Sales Incentives (Incl.Commissions) as % of Base

The maximum payable sales incentives (incl. commissions) amount for the positionindicated as a percentage of base salary. (if sales incentives are capped).

Completion Tips:Example: If your maximum is 20%, please enter 20 not 0.2. If sales incentives (includingcommissions) are not capped, please leave the cell blank.

Maximum Sales Incentives (Incl.Commissions) as an Amount

The maximum payable sales incentives (incl. commissions) amount for the position (ifsales incentives are capped).

Completion Tips:If sales incentives are not capped leave cell blank.

MPS Amount The amount paid out over the most recently completed twelve-month period as part of aMandatory Profit Sharing Scheme.

Completion Tips:Annualize the amount if this individual is eligible and received a pro-rated amount basedon date of hire or leave.

MPS Eligible Y/N A Mandatory Profit Sharing Plan for firms with 50 or more employees also known as‘Plan de Participation’. It aims to provide employees with a share of company profits.Plans are based on corporate performance with a pre-determined payout formula for alleligible employees.

Completion Tips:Indicate whether the incumbent is eligible for the scheme by selecting ‘Y’ or ‘N’ from thedrop down box.

Other Bonus (Actual Amount)Short-termIncentive (Actual)

An actual bonus amount not captured in the ‘Short-term Incentive (Actual)’ column paidout over the past 12 months to data effective date.



MERCER 51

Sales Incentive (Including Commission)Actual (Amount)

The total value of sales incentives earned in the most recently completed fiscal year(sales bonuses or commissions).

Completion Tips:Annualize partial year awards if appropriate. You would annualize the amount if thisindividual is eligible and received a pro-rated amount based on date of hire or leave.Leave blank if the incumbent is eligible but has not met the criteria for a payout, due toshort tenure at your organization. Enter 0 if the incumbent is eligible, has completed afull plan cycle but earned no bonus due to poor performance. If the position is noteligible for sales incentives, leave this column blank.

Sales Incentive (Including Commission)Eligibility (Y/N)

A payment or multiple payments made over the past 12 months to data effective date,associated with sales achievement. The sales incentive payment may not be in line withthe target sales incentive level.

Completion Tips:Indicate if the incumbent is eligible for a sales incentive program, either sales bonus orcommissions by choosing ‘Y’ or ‘N’ from the drop-down box. Do not include eligibility forperformance bonuses or any other award that is not based on completed salestransactions in this field. This is likely to be applicable to the sales job family only.

Sales Incentive (Target) as Percentage ofBase Sales Incentive (Including Commission)Target (% of Base Salary)

The target sales incentive amount payable if all conditions are met, listed as apercentage of the employees base salary.


Sales Incentives (Incl. Commissions) Targetas an Amount Sales Incentives (IncludingCommissions) Target as an Amount

The total amount that will be received in sales incentives (including commissions) if theemployee is eligible and all goals for the year are met.


MERCER 52

Short-term Incentive (Actual) The Short-term Incentive amount earned (but not necessarily paid out) in the mostrecently completed twelve-month incentive performance period.

Completion Tips:Annualize partial year awards if appropriate. You would annualize the amount if thisindividual is eligible and received a pro-rated amount based on date of hire or leave.Leave blank if the incumbent is eligible but has not met the criteria for a payout, due toshort tenure at your organization. Enter 0 if the incumbent is eligible, has completed afull plan cycle but earned no bonus due to poor performance. If the position is noteligible for sales incentives, leave this column blank.

For MERG: Information regarding mandatory and voluntary deferrals should be providedhere. In case of mandatory bonus deferral the value of the deferred amount should beexcluded from actual bonus award and included in Long-term Incentives section only asLong-term Incentive grant (including any matching shares). In case of voluntary deferralthrough actual bonus amount should include the deferred amount, and additionalinformation should be provided in deferred bonus section. If bonus matching shares areawarded, this will be included as a 'deferred bonus match' under Long-term Incentives inreport output.

Short-term Incentive (Maximum as Amount) The maximum payable short-term incentive amount for the position. (If short-termincentives are not capped leave cell blank)

Completion Tips:If the employee is NOT eligible to receive a bonus in the current year (for example dueto organization policy shifts, role change etc), but has earned a bonus in the last 12months – please do not enter the maximum short-term incentive.

Short-term Incentive (Maximum) asPercentage of Base

The maximum short-term incentive amount for the position, listed as a percentage of theemployees base salary. (If short-term incentives are not capped leave cell blank)

Completion Tips:Example: If your maximum is 10%, please enter 10 not 10%. If this is not applicableplease leave the cell blank.


MERCER 53

Short-term Incentive (Target as Amount) The amount payable for the award if all the defined goals for the year are met.

Completion Tips:If the employee is NOT eligible to receive a bonus in the current year (for example dueto organization policy shifts, role change etc), but has earned a bonus in the last 12months – please do not enter the target short-term incentive.

Short-term Incentive (Target) as Percentage ofBase

The amount payable to the employee if all defined goals for the year are met, listed as apercentage of the employees base salary.

Completion Tips:Example: If your target is 5% please enter ‘5’, not ‘.05’.If the employee is NOT eligible to receive a bonus in the current year (for example dueto organization policy shifts, role change, etc.), but has earned a bonus in the last 12months – please do not enter the target short-term incentive.

Short-term Incentive Eligibility (VariableBonus) Y/N

A payment or multiple payments made over the past 12 months to data effective date,associated with individual, team and/or corporate performance. The actual bonuspayment may not be in line with the target and maximum bonus level. Does not includeany Sales Commissions or Long-Term Incentive plans (these are collected in separatecolumns).

Completion Tips:Indicate if this position is eligible for a Short-term Incentive (Variable Bonus) in thecurrent year based on organization policy by selecting ‘Y’ or ‘N’ from the drop down box.

Voluntary Profit-Sharing (Target as % of Base) The amount paid out as part of a Voluntary Profit Sharing scheme if all corporate targetsfor the year are met, listed as a percentage of the employees basic salary.



MERCER 54

VPS Amount The Voluntary Profit Sharing amount paid out in the most recently completed twelve-month period.


VPS Eligible Y/N A Voluntary Profit Sharing Plan which may be run in addition to any Mandatory ProfitSharing Plan. Profit sharing plans are based on corporate performance with pre-determined payout formulas for all eligible employees.

Completion Tips:Indicate if this position is eligible for Voluntary Profit Sharing by choosing ‘Y’ or ‘N’ fromthe drop down box.


MERCER 55

2.5 Long-term Incentives

This section collects information on long-term incentive plans per employee. Long-term Incentives are defined as any incentive plan with aperformance or vesting period of more than one year. Please note that the words ‘stock’ and ‘shares’ are interchangeable. Long-termIncentives include:

Stock/Share Options Share Appreciation Rights (SARs) Restricted Shares/Share Units Performance Shares/Share Units Performance Cash Units Long-term Cash

For most countries/surveys the set of questions is repeated three times to enable you to provide details of incumbents participating in up tothree LTI plans simultaneously. For MERG surveys you can provide up to 5 different plans for each incumbent.

This section is not applicable for following countries: Bosnia and Herzegovina Israel Iraq Libya Luxembourg Macedonia Montenegro

Exercise Price per Share (for Plan Types 11and 12 Only)

The exercise price per share (known also as ‘strike’ or ‘subscription price’) forStock/Share Options Plans and Stock Appreciation Rights (SARs). If there is anydiscount or premium applied, it should be included in exercise price.

Grant Currency The currency in which the grant was issued. This is a standard three characterInternational Currency Code (e.g., pound sterling = GBP).


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Grant Date The day, month and year (DD/MM/YYYY) of the most recent award of the selected plantype. If multiple grants have been awarded (e.g., eligible for multiple plans), each grantshould be entered separately in the columns provided. Grants that were awarded priorto January 1, 2012 should not be reported.

Grant Frequency The frequency of grant offerings to this incumbent for the plan reported. The followingvalues are used:1 – Every year2 – Every 2 years3 – Every 3 years4 – Upon Hire/Promotion5 – Special One Time Grant6 – Quarterly7 – Semi -annually8 – Mandatory Deferral9 – Voluntary Deferral Company Match

Note: For mandatory Short-term Incentive deferrals with additional service orperformance conditions please exclude the deferred amount from the Short-termIncentive award that is provided and report the amount, including any matching shares,within the Long-term Incentive section. A Grant Frequency of 8, Mandatory Deferral,should be selected for these awards.

Completion Tips:For voluntary Short-term Incentive deferrals please include the amount in the Short-termIncentive award that is provided. If matching shares are awarded report the shareswithin the Long-term Incentive section. The value of matching shares should becalculated assuming Short-term Incentive Target bonus level and maximum possiblevoluntary deferral made by the employee. For example:Base Salary * Short-term Incentive Target Percent * Maximum Deferral Percent *Company Matching Percent = $100,000 USD * 50% * 50% * 10% = $2,500 USD. If theShare Price is $25 USD then the number of shares reported should be 100($2,500/$25).A Grant Frequency of 9, Voluntary Deferral Company Match, should be selected forthese awards.


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How LTI Grant Vests The vesting conditions for the LTI award. Vesting is the point in time that the grant isconsidered ‘owned’ by the recipient, is determined:

1 – Service Based:The grant becomes vested by continued employment and is not contingent onachievement of financial or internal goals.

2 – Performance Based: The grant becomes vested when a financial target, such as total shareholder return,(i.e., change in share price plus dividends), or an internal metric is met.

3 – Performance Accelerated: The service based vesting period of the grant can be reduced based upon theachievement of a financial target or an internal metric.Note: If the award vests based on service and has an escalator based on performance,please report the grant as two separate awards – the service based award and theperformance based additional component. Combination grants such as these shouldhave a ‘base line’ award that vests on service only with an incremental award that iscontingent on performance.

Long-term Incentive Eligibility Indicates the incumbent's eligibility for a Long-term Incentive Plan


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LTI Plan Award # The Long-term Incentive plan type which has awarded to the incumbent. Separatecolumns should be used for the most recent grant received by the incumbent for eachLTI program in which the incumbent is eligible to participate and actually received anaward/grant. Possible options are:

11 – Stock/Share OptionsStock/Share Options allow for the purchase of stock at a fixed price over a specifiedperiod. The exercise price is typically equal to the market price on the date of grant, butmay be less than or greater than the market price on the date of grant.

12 – Share Appreciation Rights (SARs)Share Appreciation Rights (SARs) – Share Appreciation Rights provide an incumbentwith the appreciation in market value of the share. They may be paid out in cash, stock,or a combination of cash and stock. No investment on the part of the incumbent isrequired. Share Appreciation Rights include Phantom Appreciation Shares. PhantomAppreciation Shares are an award denominated in hypothetical shares, the value ofwhich is based on an increase in actual share value or another measure of organizationvalue (e.g., book value). There are three types of Share Appreciation Rights:

Freestanding – SAR grant that is not attached to a stock option.Limited – SAR that is exercisable only upon the occurrence of a specific event suchas a change of control.Tandem – SAR that is granted with a stock option. The exercise of one cancels theother.


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LTI Plan Award # 21 – Restricted Shares/Share UnitsConditional grants of notional, actual or phantom shares of stock with vesting contingentupon employment for a specified period of time. The value of each share depends uponthe market value of the share at the end of the vesting period.

22 – Performance Shares/Share UnitsConditional grant of notional or actual shares, with payment or vesting contingent uponachievement of specified performance goals over a multi-year performance period.While the number of Performance Shares/Share Units earned depends on the extent towhich the performance goals are achieved, the value of each Performance Share/ShareUnit depends upon the market value of the share at the end of the performance period.

31 – Performance Cash UnitsConditional grant denominated in units other than notional or actual shares, withpayment contingent upon achievement of specified performance goals over a multi-yearperformance period. Performance Cash Units are cash-denominated and not tied to theprice of a share of stock. Although units are usually cash-denominated, their value mayalso be based on other constructs, such as dividends or EPS (Earnings Per Share).Where the value of each unit is equal to 1.00, the incentive type is also known as ‘Long-term Cash.’

32 – Long-term CashA predetermined cash amount paid out contingent upon achievement of specifiedperformance goals over a multi-year performance period.

Market Price per Share on Grant Date The per share or unit price at the most recent grant date:- For Stock/Share Options, Share Appreciation Rights (SARs) and Share/Share UnitAwards please provide the market price of a single stock/share/share unit at the mostrecent date of grant. Please note this value is not affected by the application ofpremiums or discounts that may have been applied at the time of grant. This is simplythe market price for one single share or unit.- For 31 – Performance Cash Units provide the per unit value of the Performance Unitaward.- For 32 – Long-term Cash awards this field should be empty.


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Number of Options/Shares/Performance CashUnits/Cash Award

The number of options, shares, performance cash units or cash awarded in the mostrecent grant to this incumbent. For plans with a structure of ‘Fixed Amount,’ this fieldshould reflect the number of options/shares/performance cash units/cash award thatwould be awarded upon achievement of the vesting criteria. For plans with a structure of‘Defined Target (with higher/lower payout potential),’ this field should reflect the numberof options/shares/performance cash units/cash award that would be awarded if ‘target’performance is met. For plans with a structure of ‘Defined Maximum (with lower payoutpotential),’ this field should reflect the number of options/shares/performance cashunits/cash award that would be awarded if ‘maximum’ performance is met.

Performance Measure (for All PerformanceBased Plans)

The performance Measure that is used to determine the level of payout for all awardswith Performance Based vesting:

1 – Relative Total Shareholder Return Only: Used to compare the performance of theincumbent’s company to peer companies’ stocks and shares over time. Share priceappreciation is combined with reinvestment of dividends paid to show the total return tothe shareholder. The plan award is dependent upon the incumbent’s companypositioning versus the peer group.

2 – Multiple Measures Including Relative Total Shareholder Return3 – Multiple Measures not Including Relative Total Shareholder Return4 – Other

Plan Structure The structure of the plan from which the Long-term Incentive award has been made:

1 – Fixed Amount Award: Typically, these awards are service based. Whenperformance criteria apply, they do not have a downside or upside potential; in somemarkets, this type of award may commonly be referred to as an ‘All or Nothing’ type ofaward.2 – Defined Target Award (with higher/lower payout potential): These awardsinclude a ‘target’ number of shares/share units corresponding to target performance.The number of shares awarded may be more or less based upon actual performance(e.g., payouts may be 0% to 200% of target).3 – Defined Maximum Award (with lower payout potential): These awards include a‘maximum’ number of shares/share units corresponding to performance. The number ofshares awarded may be less based upon performance.


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Term of Grant (in Years) (for Plan Types 11and 12 Only)

The term (award life) in number of years of the grant awarded. The term is the maximumperiod of time for which the grant is available to the incumbent and after which theoptions expire. This is NOT the performance period or vesting period which may apply tothe award. The term of grant should only be provided for Plan Types 11 and 12.

Total Accounting Cost per Share on GrantDate (FAS 123R, IFRS2 – for Plan Types 11and 12 Only)

The total accounting cost, on a per share basis, associated with this award for financialreporting purposes. (For plans 11 and 12 only)

Completion Tips:Please do not provide the aggregate cost of the grant or the annual expense accrual.For example, if 100 options with a three year vesting period and a total accounting costper share of $15 are awarded to an employee, please report $15, as opposed to the $5that would be expensed annually over the three year vesting period, or $1,500 thatwould be the aggregate cost of the grant.


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2.6 Benefits (Company Car & Local Benefits)

In this section we report information about cars provided to employees on the basis of status, not based on business need or as a tool oftrade. Data should be provided only for employees who are eligible for a company car and use it for their private use on a permanent basis.For employees' who are eligible for a company car you can provide one of the following:

Car Details (Make, Model, Purchase price or Lease cost)

Annual Allowance in Lieu of Company Car

Depending on the country we may also collect individual eligibility and values for the most prevalent benefits in the market (e.g. Retirementplan, Medical, Mobiles, Flights, etc.)

Annual Allowance in Lieu of Company Car The amount paid per year as an alternative to the employee using a company car. Thisis normally granted to employees with higher rank and seniority and should not beconfused with subsidies paid for transportation to and from work (transportationallowance) which is normally provided to all employees in the organization.

Annual Car Benefits The amount provided to the incumbent for a motor vehicle. This value could take theform of a lease payment on a vehicle, an allowance to reimburse an employee, or apurchase of a vehicle (in this case, a valuation formula is applied based on informationprovided).

Annual Fuel Card Ceiling The amount of money on a pre-paid fuel card provided to employees eligible forcompany car. The limit depends on the employee status or type of job.

Annual Reimbursement for Private Use An annual amount paid to the employee to cover the costs incurred with the fact thathe/she uses his/her private car for company purposes

Car Criteria (1 – Status, 2 – Job Requirement) Indicates whether a company car is provided for status or business need.


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Car Manufacturer/Brand The actual car brand provided to the incumbent. If the position is vacant, indicate thebrand and model which the position would be entitled to. If the policy caps the carpurchase price regardless of model, please indicate the typical brand and model andsubmit the maximum price allowed in the ‘Car Purchase Price’

Completion Tips:Please provide only a name of manufacturer (e.g. Ford), not a combination ofmanufacturer and model.

Car Model The actual car model provided to the incumbent. If the position is vacant, indicate carmodel which the position would be entitled to. If your policy caps the car purchase priceregardless of model, please indicate the typical brand and model and submit themaximum price allowed in the ‘Car Purchase Price’

Completion Tips:Please provide only a name of model (e.g. Mondeo), not a combination of manufacturerand model.

Fuel for Private Use (Liters) The amount of fuel (in liters) is covered by Organization.

Completion Tips:Leave blank if this is not applicable to the incumbent (applicable to specific countriesonly).

Fuel for Private Use Paid by Organization (%) The approximate portion of the private fuel costs covered by the organization.

Completion Tips:Leave blank if this is not applicable to the incumbent (applicable to specific countriesonly).

Insurance and Maintenance (Yes/No) Indicates if maintenance and insurance is covered by company.

Completion Tips:Put NO if this is not applicable to the incumbent

Insurance Paid by Organization (%) The car insurance premiums paid by the company.


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License Paid by Organization (%) The percentage of license costs covered by the Organization.

List Price/ Purchase Price (incl. VAT) The price for which the car would be purchased at a dealer without any discount ornegotiation.

Completion Tips:If the policy caps the car purchase price regardless of model, please indicate themaximum price allowed.

Maintenance Paid by Organization (%) The percentage of maintenance costs paid by the company.

Monthly Lease Cost (incl. VAT) The leasing cost of the car which the organization incurs. The lease cost includestypically amortization, maintenance, taxes, and car insurance costs. It does not includefuel costs.

Other Car Details The size of the car's engine expressed in liters.

Purchase at End of Period (Yes/No) Indicates whether incumbent is eligible to purchase the company car at the end of thelease period. Depending on the company policy employee could be eligible for pre-emption rights or not.

Replacement Term (Mileage) The number of kilometers (miles) before the car is replaced

Replacement Term (Years) The number of years before the car is replaced.

Type of Company Car Benefit The type of company car benefit applicable for each incumbent. Please note thatnormally Company Car benefits are provided for employees with higher rank andseniority and should not be confused with subsidies paid for transportation to and fromwork (transportation allowance). Mercer recognizes both company cars (the right to anactual vehicle which the employee may use on a permanent basis) and allowances paidin lieu of a company car (instead of operating the actual vehicle) as company carbenefits.


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3. Policy Tabs

In the following sections we collect information on typical practices by company and employee group and not by individual employee. Bygathering policy data we are able to present information on the prevalence of certain benefits or practices; in other words, we are able topresent the percentage of companies that provide a certain benefit or that have a certain policy implemented.

3.1 Short-term Incentives TabThe Short-term Incentives tab collects aggregate policy information by employee group and not by individual incumbent. If yourOrganization provides Short-term Incentives to any employee groups, please provide the details.

Short-term Incentives An incentive plan with awards related to performance against selected criteria over aperiod of one year or less.

Variable Bonus A Bonus or other performance related variable paid over a period of one year or less.This does not include any Sales Commissions or Long-term Incentive plans.

Target Bonus The bonus amount payable to an employee if all defined goals or targets for the year aremet.

Maximum Bonus The maximum bonus which can be paid out regardless of the level to which targets areexceeded. (If variable bonuses at your organization are capped)

Sales Incentives (Including Commissions) A payment made on the basis of sales achieved or revenue generated. These paymentsare generally restricted to sales positions.

Target Sales Incentives The total amount that will be received in sales incentives (including commissions) if theemployee is eligible and all goals for the year are met.

Maximum Sales Incentives The maximum payable sales incentives (incl. commissions) amount for the position. (ifsales incentives are capped)


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Profit Sharing A Profit sharing plan allows employees to share in the profits of an enterprise. The sharemay be a percentage of total profit, a percentage of improved profit, or a variablepercentage of profit increasing with profit growth. Employees generally participate on thebasis of salary (or some other formula), so their shares relate to hierarchy or positionwithin the organization.

Mandatory Profit Sharing A Mandatory Profit Sharing Plans aims to provide employees with a share of companyprofits. Plans are based on corporate performance with a pre-determined payout formulafor all eligible employees. Mandatory Profit sharing only applies to organizations of acertain size and who meet certain profit targets.


Method of Exemption (‘Formule Derogatoire’) The formula used to calculate the profit sharing pool (if different to the standard legalformula).


Voluntary Profit Sharing (‘Interessement’) A Voluntary Profit Sharing Plan which may be run in addition to any Mandatory ProfitSharing Plan. Profit sharing plans are based on corporate performance with pre-determined payout formulas for all eligible employees.


Bonus Deferral A system whereby a portion of a short-term incentive award is deferred over time withpotential inclusion of performance-based vesting criteria. The criteria takes into accounthow business results in an award year develop over a multi-year period (e.g., in 2015performance of 2012 will be tested).

Countries/Surveys where applicable: Italy MERG


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Pensionable Bonus A bonus payment that counts towards the total earnings used to calculate pensionbenefits.

Countries/Surveys where applicable: UK Italy

Clawback Provision A provision that requires repayment of certain kinds of funds due to changing situations.In the most common context, a clawback provision allows a company to take backprevious performance-based payment based on restated financials or breachedagreement.

Countries/Surveys where applicable: MERG PEFS


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3.2 Long-term Incentives Tab

The Long-term Incentives tab collects aggregate information for employee groups and not individual incumbents.If your Organization provides Long-term Incentives to any employee groups, please provide the details. The most important questions inthis section are:

Is your parent organization listed on a Stock Exchange? If, yes please provide the Stock Exchange name, country and ticker code. Which employee groups are eligible for Long-term Incentives? What types of Long-term Incentives does your organization offer? How LTI award vests? – i.e. how is the vesting period determined? What is the maximum grant potential? – for performance-based plans only. What is the term of grant? – the number of years between Date of Grant and Option Expiration Date, typically 7-10 years. What is the type of vesting? – i.e. what is the vesting schedule? What is the vesting period? – The restriction period, i.e. the period before shares are owned unconditionally by the employee. An

employee cannot sell, transfer, nor exercise their LTI award until it vests. The typical Vesting Period is 3-5 years.

Stock Exchange InformationCountry of Stock Exchange The country where the company’s shares are publicly traded. Please select from the

drop-down list.If the country is not included in the predefined list please select ‘Other’. The countryshould be consistent with Stock Exchange Name.

Stock Exchange Name The name of the stock market where the company’s shares are listed.

Stock Ticker Symbol The stock symbol used to identify shares being traded on a particular market. It mayconsist of letters, numbers of a combination of both.


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Long-term IncentivesLong-term Incentives (LTI) Eligibility Indicates whether the particular employee group is eligible to receive Long-term

Incentives (LTI) plan(s). If any of the incumbents from the particular employee group iseligible, please proceed to complete the rest of the LTI fields where applicable. Pleaseindicate only the most recent LTI plans that have been granted in the last 1 year.** Do not report grants prior to 1-Jan-2012**

LTI Plan Award The Long-term incentive plan award type your organization is reporting. Use a separatecolumn for the most recent grant received by the incumbent for each LTI program inwhich the incumbent is eligible to participate and actually received an award/grant.

Appreciation Based Plans:11 – Stock/Share Options12 – Share Appreciation Rights (SARs)Stock/Share Based Plans:21 – Restricted Shares/Share Units22 – Performance Shares/Share UnitsCash Denominated Plans:31 – Performance Cash Units32 – Long-term Cash


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LTI Plans Description 11 – Stock/Share OptionsStock/Share Options allow for the purchase of stock at a fixed price over a specifiedperiod. The exercise price (known also as strike or subscription price) is often equal tothe market price on the date of grant, but may be less than (with discount) or greaterthan (with premium) the market price on the date of grant.

12 – Share/Appreciation Rights (SARs)Share Appreciation Rights provide an incumbent with the appreciation in market value ofthe share. They may be paid out in cash, stock, or a combination of cash and stock. Noinvestment on the part of the incumbent is required. Share Appreciation Rights includePhantom Appreciation Shares. Phantom Appreciation Shares are an awarddenominated in hypothetical shares, the value of which is based on an increase in actualshare value or another measure of organization value (e.g., book value). There are threetypes of Share Appreciation Rights.Freestanding – SAR grant that is not attached to a stock option.Limited – SAR that is exercisable only upon the occurrence of a specific event such as achange of control.Tandem – SAR that is granted with a stock option. The exercise of one cancels theother.

21 – Restricted Shares/Share UnitsConditional grants of notional, actual or phantom shares of stock with vesting contingentupon employment for a specified period of time. The value of each share depends uponthe market value of the share at the end of the vesting period.


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LTI Plans Description 22 – Performance Shares/Share UnitsConditional grant of notional or actual shares, with payment or vesting contingent uponachievement of specified performance goals over a multi-year performance period.While the number of Performance Shares/ Share Units earned depends on the extent towhich the performance goals are achieved, the value of each Performance Share/ShareUnit depends upon the market value of the share at the end of the performance period.

31 – Performance Cash UnitsConditional grant denominated in units other than notional or actual shares, withpayment contingent upon achievement of specified performance goals over a multi-yearperformance period. Performance Cash Units are cash-denominated and not tied to theprice of a share of stock. Although units are usually cash-denominated, their value mayalso be based on other constructs, such as dividends or EPS (Earnings Per Share).Where the value of each unit is equal to 1.00, the incentive type is also known as ‘Long-term Cash’.

32 – Long-term CashA predetermined cash amount paid out contingent upon achievement of specifiedperformance goals over a multi-year performance period.


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LTI Grant Vesting Indicates how vesting, the point in time that the grant is considered ‘owned’ by therecipient, is determined:

1 – Service Based:The grant becomes vested by continued employment and is not contingent onachievement of financial or internal goals.

2 – Performance Based:The grant becomes vested when a financial target, such as total shareholder return,(i.e., change in share price plus dividends), or an internal metric is met.

3 – Performance Accelerated:The service based vesting period of the grant can be reduced based upon theachievement of a financial target or an internal metric.

Completion Tips:Should be provided for all plan types.Should be Service-based for Plan Type Restricted Shares/Share Units.Should be Performance-based for Plan Type Performance Shares/Share Units.

Note: If the award vests based on service and has an escalator based on performance,please report the grant as two separate awards – the service based award and theperformance based additional component. Combination grants such as these shouldhave a ‘base line’ award that vests on service only with an incremental award that iscontingent on performance


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Maximum Grant Potential For plans with a structure of ‘Defined Target Award (with higher/lower payout potential)’indicate the maximum potential award as a percent of target. For example, if maximumperformance targets are met, the award payout may be up to 200% of the target. Thus,200 should be entered.

Completion Tips:Should be provided for Performance-based plans.Should be positive value in % format, greater than 100%.Should be provided for plans with Defined Target structure.

If the award is Performance based and has defined target performance payout withupside potential, please provide maximum grant potential as a % of target award.

Term of Grant The term (award life) in number of years of the grant awarded. The term is the maximumperiod of time for which the grant is available to the incumbent and after which theoptions expire. This is NOT the performance period or vesting period which may apply tothe award. The typical range is 5 – 10 (years) and should be longer than Vesting Period.

Completion Tips:Should be provided only for plan types: Stock/Share Options and Share AppreciationRights (SARs).

Type of Vesting Indicates when the rights become exercisable. There are two options to choose from:

1 – Installment Vesting(vesting occurs over a period of time, typically 3 to 5 years) – Rights becomeexercisable gradually during Vesting Period.

2 – Cliff Vesting(vesting occurs all at one time) – All rights become exercisable at the end of VestingPeriod.

Completion Tips:Should be provided for all plan types.


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Vesting Period The amount of time required for the options/shares/performance units/long-term cash tovest and (in the case of options) become exercisable in full. It should be shorter thanTerm of Grant period for Stock Options and SARs. Please choose from the followingoptions:

1 Year2 Years3 Years4 Years5 YearsMore than 5 YearsOther


For an answer of ‘Other’ in the ‘Vesting Period’ data element, indicate the amount oftime the options/shares/performance units/long-term cash vest and (in the case ofoptions) become exercisable in full.


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Frequency of the Grant Indicates how often the particular type of plan is granted to incumbents.


In different regions there are different options to choose from.

Countries/Surveys where applicable: Spain UK South Africa Global Energy Trading Survey UK Oil and Gas Exploration and Production Survey UK Oilfield Engineering and Contracting Survey UK Power Generation Survey

Organization Saving Plan (PEE) Savings plan, whose vehicles are discussed and agreed between the company and itsWorks Council, and for which an employee can make voluntary contributions to, forhis/her savings. Amounts placed to the PEE are exempted from most employer andemployee social contributions, making it more efficient than salary. This is the reasonwhy Mandatory and Voluntary Profit-Sharing are often placed on the company savingsplan. Amounts placed on the PEE are vested after a 5-years lock-in period, although 9cases allow, by exception, an earlier vesting.


Granting an ‘Abandonment’ A company can elect to match part or all of its employees' contributions to theorganization savings plan. The matching by the company cannot exceed 2 962,56 € for2013.



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3.3 Benefits Tab

In this section collect detailed information about the benefit policies in your organization for various employee groups. Information providedin this tab will be used to prepare a country overview of prevalent benefit practices. This tab may vary from country to country. Dependingon your organization policy, different employees are entitled to receive different types of benefits – please carefully mark eligibility andbenefit details for all employee groups as indicated.

The most common benefits collected in this section are:PensionLife AssuranceLong-term DisabilityPrivate MedicalShare Purchase Plans

Accident Insurance A scheme through which employees can be eligible for compensation in the event of anunexpected accident. A monthly or annual premium is usually paid.

Schemes typically cover death by accidental means (rather than natural causes) anddismemberment, which includes loss of the use of certain body parts (including limbs oreyesight). A monthly or annual premium is usually paid.

Benefits – Medical, Retirement The tab collects information regarding the medical aid and retirement/pension fundsprograms provided to employees by the organization.

BVG/LPP Minimum The minimum pension contributions required by Swiss law (Federal Law onOccupational Retirement)

Countries/Surveys where applicable: Switzerland

Club Subscriptions/Leisure Activities A benefit where the employer covers the cost of a subscription fee to a sports club (e.g.Golf club) or other leisure activities.


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Defined Benefit Retirement Plan ( DB) A pension plan in which:

The employer makes a promise to provide the employee with a future benefitThe Future benefit is based on a special formula for nominal level of benefitThe employer usually promises to pay the employee a percentage of Final PensionableSalary ( in most plans) or flat amount for each year of serviceThe benefit level is guaranteed by the benefit formulaThe benefit may be accrued as lump sum (1 large payment, converted to pension atretirement) or just pensionThere may be an additional employee contribution – depending on country specific lawand the plan constructionThe employer makes contributions to DB plan to fund future benefitsThe risks (investment, salary increases, inflation) are transferred to employerIn Europe most plans are closed for new participants.

Completion Tips:If you have more than one DB plan please provide the most popular. Often a % ofPensionable Salary per year of service.


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Defined Contribution Retirement Plan (DC) A pension plan in which:The employer makes a promise to make regular payments to the employee's retirementaccount (usually in mutual fund)At retirement the employee converts the collected funds into a life pensionA contribution amount is guaranteed (either a fixed amount or a percentage of salary)A benefit level is not guaranteed (function of total contribution and rate of return onaccumulated capital)The contribution amount may vary depending on different factors (age, level, service) –depending on country specific law and plan the constructionThe risks (investment, inflation) transferred to employee

Completion Tips:If you have more than one DC plan please provide the most popular.

The contribution level may be the same for all employees or may vary with age, serviceor pay level. The ultimate benefit from the plan depends on the contributions, chargesand investment returns.

Discounts for Organizational Products An arrangement through which employees can purchase the company's products atreduced rates.

Flex Benefits (Cafeteria Plan) A scheme that enables employees to choose from a range of benefits, typically on anannual basis. The flexible benefit scheme aims at accommodating the changing needsof employees. There are essentially 3 different types of plans which exist in differentcountries:the employee may sacrifice certain kinds of pay/benefits in favor of others.the employer contributes into the flex plan itself directly funding the benefits options infull.the employer contributes into the flex plan itself funding top-up benefits options andseparately funded core benefits.


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Housing The cost of renting or providing accommodation for the incumbent in a form of a rentalor company owned apartment. This includes rental and other associated costs such asmanagement fees, government rates, etc.

Human Resources The tab collects information regarding human resources programs carried out by theorganization.

Insurance The tab collects information regarding the Insurance programs provided to employeesby the organization.

Life Assurance A benefit in a form of predefined amount of money to be paid to the specified beneficiary(policyholder – typically spouse) on the event of employee's death whilst he/she is stillemployed by the organization.

Loans An arrangement through which the organization lends an employee money to purchaseitems such as a car or a house or to use the money for personal purpose such as achild's education or household electrical appliances, etc. These are often provided on aninterest

Long-term Disability Benefit A benefit which provides the employee with an income in the event of a disability orillness that prevents them from working. Long-term disability benefit may be paid subjectto a maximum term (e.g. 5 years) or until normal retirement age or for life, ceasing onearlier recovery.

Meals A benefit where canteen meals or vouchers are provided for employees by theemployer.

Mobile Phones A benefit whereby the employer providing a mobile phone to an employee and coversrelated expenses. The expenses, as well as private use of company mobile phone maydiffer by company and/or role.

Paid Leave A leave of absence during which the employee continues to be remunerated.


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Pensionable Salary The components of pay that are used for the purposes of calculating the retirement,death or long term disability benefit. Typically, for a broad-based plan, this will take intoaccount base salary and may include other components such as bonus or overtime. Insome countries it will take into account an offset (deduction) which is generally made totake state benefits into account.

Perquisites The tab contains part of the standard Benefits tab and inquires about company policy forthe following:

Share Purchase PlanLoansClub SubscriptionsDiscount for Organization ProductsTraining and EducationOther Benefits

Private Medical Plan A benefit in a form of medical coverage provided to an employee independently of anystate provided or other mandatory medical care.

Private Medical Plan types:Private Health Insurance (PHI)Insurance contract with insurance companyMore common in Western EuropeSelf-Insured PlansCompany reimburse all or part of employee expensesMay also provide internal medical serviceContracts With Private ClinicsCovers for employees, may also cover spouse, familyMay require employee contributionsOften different cover level by employee levelMay include/exclude dentist or eye cover (very expensive, typically managementlevels only)


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Referral Schemes A scheme encouraging a company's existing employees to select and recruit suitablecandidates from their personal networks. Employees are typically paid a referral bonusas a reward for their part of the recruitment process

S2P/SERPS The State Second Pension (S2P) is a UK Government Pension scheme that replacedSERPS (State Earnings Related Pension Scheme) in 2002.

Countries/Surveys where applicable:UK

Salary Sacrifice A contractual arrangement whereby an employee gives up the right to receive part oftheir cash remuneration, usually in return for their employer’s agreement to providesome form of non-cash, typically tax free benefits (i.e. childcare vouchers)

Share Purchase Plan A plan that enables employees to purchase the company’s shares usually at adiscounted rate. The discount amount tends to be set within a certain percentage of theirannual salary.

Teleworking A teleworking arrangement is where the employee works from a home office for either aportion of or all of the work week. He or she maintains a presence in the work premiseselectronically via phone, fax, pager and e-mail and is typically required to participate inregular meetings at the work premises and/or perform work on certain days from thework premises.

Training & Education A benefit in a form of the employer covering the cost of the employee's trainings and/oreducation programs that develop employee's work-related skills and knowledge.

Travel Insurance An insurance scheme intended to cover financial and other losses incurred whiletraveling, either within one's own country, or internationally.

Working Time and Holidays The tab inquires about the number of holidays your company has for full-timeemployees, what kind of extra days, ATV days (i.e. reduction of working days in TheNetherlands), working time in hours and deferral possibilities for holidays.


MERCER 82

3.4 Company Cars Tab

In this section we collect information about company cars depending on the purpose or use.

Company Car Interpreted as a Benefit for the Employee.A company car is a vehicle issued by a company to an employee to serve as a bonus or as additional compensation. The company is thecar's owner, but the employee to whom the car is issued is entitled to drive it. The company also pays for insurance and usually formaintenance and repairs on the car as well, although the employee is typically responsible for his own gas (not a rule). In some situations,employees are able to choose a car from the rental car lot to drive, although they may have to switch cars periodically (not a very commonoption).

Allowance in Lieu of a Company Car.In some companies employees are able to choose the amount paid per year as a replacement of using the company car interpreted as abenefit for employee.

Company Car as a Tool Required to Perform the Job.A company may also issue a company car to an employee if a vehicle is required to perform their job. In this context, the employeegenerally is not entitled to use the vehicle for their own personal use and is restricted to using the car for specific business purposes.

The Criteria used for Determining theProvision of a Company Car.

Indicates the criteria used to decide whether employees are eligible for a company car.

Status/SeniorityThe company car is provided to employees because of their length of service or highrank in company's hierarchy.

Business need/Essential userThe company car is provided to employees because of it is essential for them to conducthis job.


MERCER 83

Fuel Financed by the Organization. The type of fuel financing policy provided by the company:

Business fuel onlyThe company covers only fuel expenses incurred by the employee's work.

All fuelThe company covers all of the employee's fuel expenses without limits.

Business fuel and part of fuel for private useThe company covers fuel expenses incurred by employee's work and a part of privatefuel expenses.

Trade up to a More Expensive Car Indicates whether an employee is able to change the company car to a more expensiveone.

Trade down to a Less Expensive Car Indicates whether an employee is able to change the company car to a less expensiveone.

Cash Allowance The amount of money provided to an employee, who is eligible for a company carinstead of a vehicle.

The Type of Insurance Coverage. Indicates the type of insurance coverage:

ComprehensiveThe insurance covers repair or replacement of the policy owner's vehicle and personalproperty inside of it, if damaged or lost due to external factors, such as fire, theft, flood,or vandalism.

Third party Insurance purchased by the insured (the first party) from an insurer (the second party)for protection against the claims of another (the third) party

None

Mercer (Polska) Sp. z o.o.Aleje Jerozolimskie 9400-807 Warszawa+48 22 456 40 20

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