Executive Salary Survey 2016 PwC México Reward & HR Analytics

Executive Salary Survey 2016The executive salary survey PwC México is a detailed market research at Mexico which provide to your company valuable benchmark to know the relevant elements to consider in your compensation executive plan and allows you to identify the aspects that encourage the place of your company in the labor market.The results are present to you personally by PwC´s expertise team, who talk about the implications of your compensation executive plan and give you recommendations of the areas to improve to achieve more competitiveness and opportunities to reduce costs.

During the 2015 Executive Salary Survey PwC Mexico edition, we gathered information of more than 3,000 executives, about its salary, bonds, benefits and incentives, including since directors to sub-gerents, received during the fiscal year 2014-2015.

Some of the interesting findings to this edition are:

• The 75% of the companies agree in have the priority the talent management to their organizations.

• The 77% of the companies pointed not have a private pension plan.

• Only the 5% of the companies pointed have some type of long term incentive plan

Having a plan of efficient and competitive executive compensation is critical for retention.

Compensation components

5%

10%

16%

Have a pension plans

Do not have a pension plans

Give a bond

Productivity

Strategic objectives

Revenue

Do not give a bond

Have a long term incentives plans

Do not have a long term incentives plans

77%

95%

90%

63%

23%

Criteria for granting a certificate

Bond

Long term incentives plans:

Pension plans:

21%

Illustrative examples: 1st section

The investment to participate in the PwC Mexico´s Executive Salary Survey is $25,000 MXN plus VAT. That includes the subscription to the survey, the reports of your company and the meeting the PwC´s experts on executive compensation.

PwC Mexico offer a tool of analysis that gives you as a general report as a detailed analysis of your compensation executive plan. The report combine clear graphics with key elements of your organization that allows you identify trends and recognize your position in the market.The benefits that your company get by subscribing to the survey are:• General results of the research.• A detailed report of your company that includes:

1.- First section, puts you in perspective your results against to the market.2.- Second section, detailed analysis of each executive position reported.

• Meeting with a PwC expert on compensation executive plans.

Investment

What benefits do we offer?

Performance management and talent retention

Compensation and benefits polices

Fair pay between similar position

Flexible benefits

Incentives per sell

Compensation systems and technology

Change the flexible benefits platform

Increase the global participation plan

Compensation structure to the personal on assignation

Trends graphic

Exclusive benefits to executives

75%

55%

50%

20%

20%

10%

5%

5%

5%

Answers chosen by the client

Benefits that shows greater appreciation

Benefits that shows less appreciation

Cell phone

Company car

Medical exam

Driver and bodyguard

Insurance of major medical expenses

32%

36%

41%

64%

68%

Ilusrative examples 1st Section

Salary increase 2016

General

Client

Board Directors

High Executives

OtherEmployees

4.71%5.3%

6% 6%

5%

4.79%

Board Directors

High Executives

OtherEmployees

Finance service5% 5% 5%

Board Directors

High Executives

OtherEmployees

Position title: General Director

Total income

Expected value Package composition

Q1MQ3Reported DatasPosition

Salary base

Amount in thousand of pesos ('000)

1,1601,4162,129

M-Q3

1,8862,4063,057

Q1-M

1,8862,4063,057

Q1-M

2,0802,5123,195

Q1-M

TE RTTRD Fijo Variable

0% 40% 60% 80% 100%

Corto Largo

Position in the market

SB TE TRD TR

Q1-M M-Q3 Reported Data

Performance scenaries

Low Acceptable Average High Excellent

Base salary Pension Annual bonus Incentivelong term

LQ UQMMarket data:

Your data:

20%

Reported Data

Comparator group: middle marketIllustrative examples 2nd section

0

3,500

3,000

2,500

2,000

1,500

1,000

500 0

3,500

3,000

2,500

2,000

1,500

1,000

500

Components of the compensation packageAnnual bonus

Q1M

Q3

Data

Q1MQ3Data

Deferred annual bonus (DAB)

Terminology

Pension

mdp

636

MaximumObjective

% SB

15%15%

15%

15%15%

15%

Policy VE

mdp

Complement DABEligible Eligible Maximum EV

% de Roles

% Roles % BS

% Planes %DAB mdp

DAB

Perceived Eligible

0%

N

848

1,310

% SB

53%68%

84%

N N -

---

-

---

-

-

---

-

---

Stocks

100% 5%

5%S

0%

Annual Bonus

% SB

EV

20% 0%

--

--

0%

N --

--

Defined benefits

Eligible Accrual

% Roles Rate% Roles % BS

5%

Defined contriubution

Eligible

216

284

TotalEV

mdp

151

Contribution

Complement

Eligible Contribution

% Roles Rate

Long term incentives

SB Base Salary: includes only the annual base salary

TC Total Cash: Base salary + Annual Bonus

TDC Total Direct Compensation: Total cash+Long term incentives

TR Total remuneration:TDC+Pension

Q1/M/Q3 Quartil 1/ Median/ Quartil 3

Complement Fixed amount complementary to the pension

LTI Long Term Incentive

EV Expected value

DAB Diferred annual bonus

- No data in the sample

Know us People & Organisation

In PwC we know the challenges of the Human Resources management, the most important asset of the companies.

PwC Mexico supports you in the important task of improve your human capital by a group of more than 100 professionals specialized on:• Tax• Social security• International assigns• Pay sheet services• Workforce and migratory law• Compensation and pension plans

With more than 10 thousand professionals on Human Resources in the PwC´s network, distributed in 138 countries, working day a day to generate value in your management people. We can support you to improve the attraction and retention of talent, to the international mobility of your workers, among others, fomenting the growth of your company by the human capital.

About PwCImagine the power of more than 200 thousand people with one common purpose: the construction of relations that create value for you and your business. This is PwC, our professionals work with you to help you to achieve your objectives.

We want to start for learn about your needs. Your task will be talk and ours will be to listen to you. Contact us with a wide knowledge and global and local team that offers you solutions that fit to help you to grow and take advantage of the opportunities and make business as in Mexico as in the world.

We give you a global perspective, as well as detailed knowledge about the most important business topics of Mexico and the region.

PwC focus on auditory, tax, legal services and advisory.

Contacts

Tom RichardsPartner of People & Organisation thomas.richards@mx.pwc.com+52 (55) 5263 6142

Claudio JiménezManager of People & Organisation claudio.jimenez@mx.pwc.com+52 (55) 5263 6000 ext. 6169

Saubdi CarpioConsultant of People & Organisation saubdi.carpio@mx.pwc.com+52 (55) 5263 6000 ext. 6560

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.© 2016 PricewaterhouseCoopers. All rights reserved. Made by MPC: 20160623-ms-folleto-encuesta-salarios-ejecutivos-ing

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