EQAL PAY NEW 020613 - equalpayday.ch

1 MERCERTOTAL REMUNERATION SURVEYS 2012A closer look at regional, industry-specific and gender pay differences in SwitzerlandChrista Zihlmann, Geneva1 MERCER1A global leader in human resource consulting and related services: $ billion in revenue 65-year history 4 business segments Offices in more than 40 countries 20,000+ colleagues MercerWHO WE ARE2 MERCER2We help clients optimize the value of their human and financial SegmentsMercer s Clients Talent Health Retirement Investments 80% of top US public companies 70% of FTSE 100 companies 70% of CAC 40 companies 65% of Nikkei 225 companies 75% of DAX 30 companies 80% of clients <5,000 employeesMercerWHAT WE DO3 MERCERA genda Mercer s Total Remuneration Surveys Worldwide Pay in 2012 What is equal pay ?

2 A closer look at salaries in Switzerland4 MERCERM ercer s Compensation DataMERCER SOLUTIONST hree distinct HR challenges to expand and grow to meet the global economic challengesThree distinct HR challenges to expand and grow to meet the global economic challengesLOCAL PAYEXPATRIATE PAYU nderstand and determine COMPETITIVE LOCAL COMPENSATION elements and pay levels for all positions within all countriesGLOBAL MEMBERSHIPSA ccess to local pay benchmarking databases + high-value servicesGLOBAL MOBILITYC alculate competitive pay packages + manage compensation function globally + integrate into new countryUnderstand and manage COMPETITIVE EXPATRIATE COMPENSATION elements and pay package levels for all expats across all home/host locations5 MERCERA nnual Guaranteed CashAnnual Total CashAnnual Base Salary Meal allowance : The monthly fixed allowance for meals Transportation allowance : The monthly fixed allowance for transportation Position/Job based allowance : The monthly fixed allowance for holding a position Skill allowance : The monthly fixed allowance for a specific skill/ license Other monthly allowance : Other monthly fixed allowance not listed above Variable bonus : All payments which were associated with individual, team and/or corporate performance Sales incentive bonus.

3 All payments which were associated with sales achievement. Other bonus : All payment, which were associated with other bonus scheme Monthly base salary : The monthly base salary excluding all allowances that your incumbent receives from your organization Number of month paid : The number of times the incumbent receives monthly basic salary in a full year, including Fixed / Guaranteed Bonus*: Long-term incentive cashAnnual Total Cash + Long Term IncentivesAnnual Total Remuneration Flexible Benefit Car Subsidized Car Loan Housing Loan Personal Loan Leave Holiday Bonus Health Insurance Dental reimbursement Life Insurance Accidental Insurance Medical Check-up Membership Employee and the Children s EducationAnnualVariable CashAnnual Fixed AllowanceAnnual Base SalaryComp 5 Stock OptionsStock Grants*Key BenefitsAnnualVariable CashAnnual Fixed AllowanceAnnual Base SalaryComp 4 Stock OptionsStock Grants*Annual Variable CashAnnual Fixed AllowanceAnnual Base SalaryComp 3 Annual Fixed AllowanceAnnual Base SalaryComp 2 Annual BaseSalaryComp 1 Mercer Total

4 Remuneration Survey (TRS)Compensation Elements6 MERCERM ercer Total Remuneration Survey (TRS)Typical Position Class (PC) RangesWhite collar employee with a university degree and up to five years experience / or equivalent professional experienceProfessionals PC 47 51 University degree, at least 5 years of experience (supervisors, coordinators)Junior ManagementPC 50 54 Sub-department heads in larger organizations ( HR manager)Middle ManagementPC 54 58 Department heads in larger organizations (HR director, finance director, IT director)Senior ManagementPC 57 62 Head of organization in mid-sized or larger organizationsTop Management PC 60 +White collar employees, generally clerical EmployeesPC 40 4767 MERCERP osition evaluation is based on size of organization, number of employees and turnoverBenchmark positions and corresponding position class555352515049 Benchmark Position:Human Resource ManagerPosition Description: Implement the organisation's human resource strategy so that the organisation attracts, manages, develops and retains the employees it needs to achieve its current and future business objectives.

5 Normally reports to. Head of HR or HR Executive; HR Class54 Company XCompany YCompany VCompany Z4847464544 International Position Evaluation8 MERCER80 100'000 200'000 300'000 400'000 500'000 600'000 700'000 800'000 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 IPE Position ClassSwitzerlandGermanyFranceRussiaIndia Bra zilChina (Beijing)United StatesWorldwide Salary Comparison 2012 Annual Total Guaranteed CashAnnual Total Guaranteed Cash (in EUR)Blue collarProfessionalSpecialistManagerDirec torVP9 MERCER92012 Switzerland TRSS urveyPartcipants OverviewNumber of organizations201 Number of incumbents51,001 Mainly large multinational companies10 MERCER102012 Switzerland TRSS urvey Participants Industry RepresentationConsumer Goods; 24%Phar ma; 5%D ur able; 29%Nondur abl e; 9%Ser vices; 8%Hi g h- Tech; 7%Ener g y; 4%Finance/Banking ; 1%Retail/Wholesale Tr ade; 3%Other ; 10%11 MERCERWhat is equal pay ?

6 Data interpretations vary: By region By career stream By industry By age By gender By tenure By function By company nationality By Position Class12 MERCER12 Regional Pay Differences in Switzerland (1)Annual Base Salary in CHF - Junior ManagementSFr. 10'000 SFr. 30'000 SFr. 50'000 SFr. 70'000 SFr. 90'000 SFr. 110'000 SFr. 130'000 Swiss German RegionSwiss French RegionSwiss Italian Region13 MERCERR egional Pay Differences in Switzerland (2)Total Remuneration in CHF - Professionals140'943126'68979'300050'000 100'000150'000 French RegionGerman RegionItalian RegionAnnual Total Remuneration median (CHF) Regional comparisonSource: 2012 TRS Switzerland14 MERCER160'548147'445122'171050'000100'00 0150'000200'000 German RegionFrench RegionItalian RegionAnnual Total Remuneration median (CHF) Regional comparisonSource: 2012 TRS SwitzerlandRegional Pay Differences in Switzerland (3)Total Remuneration in CHF - Junior Management SALES15 MERCER15 Gender comparison Switzerland.

7 Sales FunctionsSenior Management : Female / Male Compensation161'982150'777122'171147'962 144'057116045050'000100'000150'000200'00 0 German RegionFrench RegionItalian RegionMaleFemaleSource: 2012 TRS SwitzerlandAnnual Total Remuneration median (CHF)Regional comparison16 MERCER16 Regional Pay Differences in Switzerland (4)Total Remuneration in CHF - Junior Management SALESF emale / Male Compensation161'982150'777122'171147'962 144'057112078050'000100'000150'000200'00 0 German RegionFrench RegionItalian RegionMaleFemaleSource: 2012 TRS SwitzerlandAnnual Total Remuneration median (CHF)Regional comparisonFew positions17 MERCER17 Regional Pay Differences in Switzerland (5)Total Remuneration in CHF - Human Resources Manager Senior Management: Female / Male Compensation248'074213'051225'017213'801 050'000100'000150'000200'000250'000 French RegionGerman RegionMaleFemaleSource: 2012 TRS SwitzerlandAnnual Total Remuneration median (CHF)Regional comparison73%54%27%46%18 MERCER180%5%10%15%20%25%30%Para-Professi onalProfessionalManagementExecutiveFemal eMaleGender Distribution in Switzerland by Career Stream19 MERCER1906 March 2013 All Data comparison - Switzerland.

8 Annual Guaranteed CashFemale / Male Comparison Regressed MedianSource: 2012 TRS Switzerland050'000100'000150'000200'0002 50'000300'000350'000400'000450'000500'00 0550'00041 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 FemaleMalePosition ClassCHF29 500 CHF20 MERCER2006 March 2013 All data comparison - Switzerland : Annual Total Cash (Target and ActualBonus) Female / Male Comparison Regressed MedianSource: 2012 TRS Switzerland050'000100'000150'000200'0002 50'000300'000350'000400'000450'000500'00 0550'00041 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Female TargetMale TargetFemale ActualMale ActualPosition ClassCHF51 200 CHF21 MERCER2106 March 2013 All data comparison - Switzerland : Annual Total RemunerationFemale / Male Comparison Regressed MedianSource.

9 2012 TRS Switzerland050'000100'000150'000200'0002 50'000300'000350'000400'000450'000500'00 0550'00041 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 FemaleMalePosition ClassCHF53 500 CHF22 MERCER22 Functional Pay Differences in Switzerland (1)Total Remuneration in CHF - Top Management/Head of OrganizationSource: 2012 TRS Switzerland319'867435'934422'681050'0001 00'000150'000200'000250'000300'000350'00 0400'000450'000 FemaleMaleAll DataFemaleMaleAnnual Total Remuneration median (CHF)Comparison by gender11%89%23 MERCER23 Functional Pay Differences in Switzerland (2)Annual Base Salary in CHF Middle Management / Environmental Health & Safety ManagerSource: 2012 TRS Switzerland205'529207'467203'354050'0001 00'000150'000200'000250'000 FemaleMaleAll DataFemaleMaleAnnual Total Remuneration median (CHF)Comparison by gender43%57%24 MERCER24 Functional Pay Differences in Switzerland (3)Annual Base Salary in CHF Junior Management Process Engineer -ExperiencedSource.

10 2012 TRS Switzerland131'641135'531135'531050'0001 00'000150'000 FemaleMaleAll DataFemaleMaleAnnual Total Remuneration median (CHF)Comparison by gender23%77%25 MERCER25 Functional Pay Differences in Switzerland (4)Annual Base Salary in CHF Professional : IT Support Analyst -ExperiencedSource: 2012 TRS Switzerland104'226108'284105'618050'0001 00'000150'000 FemaleMaleAll DataFemaleMaleAnnual Total Remuneration median (CHF)Comparison by gender16%84%26 MERCER26 Pay Differences by company size in Switzerland (1)Annual Base Salary in CHF Middle Management 210'123200'291050'000100'000150'000200'0 00250'000 Less than 5,0005,000 or moreSource: 2012 TRS SwitzerlandAnnual Total Remuneration median (CHF)Comparison by company sizeNumber of Employees27 MERCER27 Pay Differences by company si