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Radford Global Technology Survey

October 2015

Germany

Practices ReportSAMPLE

REPORT

Radford Global Technology Survey (October 2015) Copyright 2015 Aon plc i


Practices Report

This report contains data from 412 companies with operations in Germany that reported on programs and practices for local national employees (expatriatepractices are excluded). Data for certain practices (as indicated) is limited to companies which are headquartered in Germany. A data sample of three or morecompanies is required for results to be shown for a specific data element.

Table of Contents

October 2015Germany

Section One: Variable Bonus/Incentive Compensation Programs Types of Bonus/Incentive Compensation Plans 1Formal Bonus Plan Eligibility 2Formal Bonus Plan Participation 2Formal Bonus Plan Payment 3Formal Bonus Plan Company Performance Metrics 4Formal Bonus Plan Funding Levels 5Cash Profit Sharing Eligibility and Company Performance Metrics 9Cash Profit Sharing Payment 10Discretionary Bonus Plan Participation 11Discretionary Bonus Payment 11Total Variable Bonus/Incentive Compensation Payments 12

Section Two: Car Plans and Allowances Types of Car Plans 13Participation in Car Plan 14Other Allowances/Cash Payments 15

Section Three: Pay Practices and Organization Measurements Base Salary Structures 16

Establishing Rates of Pay 18Shift Differential Pay Policies 19New University Graduate Program 21Span of Control 22

17Salary Structure Adjustment Percentage

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iiRadford Global Technology Survey (October 2015) Copyright 2015 Aon plc


Practices Report

Table of Contents (continued)

October 2015Germany

Section Four: Equity/Long Term Incentive Programs Types of Equity/Long Term Incentive Programs 23Equity/LTI Eligibility - Overall Summary 25Equity/LTI Eligibility - By Type of Plan 26Percent Employees Receiving Equity Grant 29Size of Equity/LTI Grants Compared to Headquarters Country 30Stock Option Vesting Schedule 31Restricted Stock/Units Vesting Basis 32Restricted Stock/Units Vesting Schedule 33Employee Stock Purchase Plan (ESPP) Provisions 34

Definitions

Participant List 37

35

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Radford Global Technology Survey (October 2015) Copyright 2015 Aon plc

Section One: Variable Bonus/Incentive Compensation Programs

Types of Bonus/Incentive Compensation Plans

Companies with bonus/incentive compensation plan covering local nationals inGermany (excluding sales incentive plans)Yes

% Companies

91.5% 377

No

Formal bonus

Discretionary bonus

Cash profit sharing

Other

Plan combinations:

8.5% 35

87.3% 329

33.7% 127

13.0% 49

Company Count

Types of plans (% companies = of those with any plan)

Cash profit sharing only

Formal bonus + discretionary bonus

Formal bonus + cash profit sharing

Discretionary bonus + cash profit sharing

Formal bonus + discretionary bonus + cash profit sharing

Formal bonus only

Discretionary bonus only

0.3% 1

57.3% 216

10.9%

1.1%

41

4

18.6% 70

7.7% 29

0.5%

3.7%

2

14

Types of Bonus/Incentive Compensation Plans

Germany

- See plan definitions at end of report.

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Section One: Variable Bonus/Incentive Compensation Programs (continued)

Formal Bonus Plan Eligibility

Employee levels eligible to participate in formal bonus plan

Executive (VP and above)

% Companies

100.0% 329

Management:

Manager (Radford M3/M4)

Supervisor (Radford M1/M2)

Professional Individual Contributor:

Expert/Principal (Radford P5/P6)

Career/Advanced (Radford P3/P4)

99.1% 326

93.9% 309

83.3% 274

Company Count

Director (Radford M5/M6)

Support Individual Contributor

Entry/Developing (Radford P1/P2)

92.1% 303

83.3%

75.4%

274

248

65.0% 214

Formal Bonus Plan Eligibility

Germany

% Companies Company Count

Yes No

0.0% 0

0.9% 3

6.1% 20

16.7% 55

7.9% 26

16.7%

24.6%

55

81

35.0% 115

Formal Bonus Plan Participation - Data is presented below for companies that are headquartered in Germany.

Percentage of total non-sales employees typically receiving an award when formalbonuses are paid

25thCompany Count

% employees globally (includes Germany)

75th 50th

Percentile

97.5% 95.0%

95.0% 80.0%

47.0% 7

43.0% 7

% employees in Germany

% Employees Receiving Formal Bonus(for companies headquartered in Germany) Average

69.6%

66.6%

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Formal Bonus Plan Payment

Formal bonus plan payments made last year

Yes

% Companies

88.9% 288

95.3% 303

4.7% 15

Company Count

74.1% 206

12.9%

12.9%

36

36

66.0% 214

Formal Bonus Plan Payment and Frequency

Germany

No

Formal bonus plan payments expected to be made this year

Yes

No

If yes, size of total payments expected this year compared to last year:

Similar

Larger

Smaller

Typical payment frequency

Annual

Semiannual

Other

Quarterly

11.1% 36

17.6% 57

14.8%

1.5%

48

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Formal Bonus Plan Company Performance Metrics

Germany

- Data is presented below for companies that are headquartered in Germany.

Company performance metrics used to determine total amount of bonuses paidunder formal bonus plan

% Companies

16.7% 1

Company Count

50.0% 3

83.3%

16.7%

5

1

0.0% 0

Company Performance Metrics(for companies headquartered in Germany)

One measure used

Two measures used

Three or more measures used

Measures (more than one can apply):

Sales/revenue level or growth

Profit/income

New product introduction/development

Combinations:

Sales/revenue only

Measure(s) other than sales/revenue or profit/income only

Profit/income only

66.7% 4

0.0% 0

16.7%

50.0%

1

3

Customer satisfaction

Quality

Achievement of other specific non-financial company objectives

Sales/revenue + profit/income

Sales/revenue + profit/income + other measure(s)

Sales/revenue + measure(s) other than profit/income

Profit/income + measure(s) other than sales/revenue

16.7% 1

16.7% 1

16.7%

33.3%

1

2

0.0% 0

33.3%

0.0%

2

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Formal Bonus Plan Funding Levels

Germany


Companies with minimum level of company performance required before any money isallocated to the formal bonus plan pool

% Companies

42.9% 3

Company Count

33.3% 1

0.0% 0

Minimum Performance Level(for companies headquartered in Germany)

Yes

No (no threshold)

Minimum (threshold) level of company performance required, as % achievement ofcompany objectives Average % =

Distribution of minimums, as % achievement of company objectives:

100%

80%

71-79%

61-69%

70%

57.1% 4

33.3% 1

0.0%

0.0%

0

0

91-99%

90%

81-89%

60%

Under 50%

51-59%

50%

0.0% 0

0.0%

0.0%

0

0

0.0% 0

0.0%

0.0%

0

0

83.3%

33.3% 1

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Formal Bonus Plan Funding Levels (continued)

Germany


Minimum Company Performance Level, as % Achievement of Company Objectives(company count)

50%

0

0

Minimum Performance Level(for companies headquartered in Germany)

Percentage of targeted bonus pool that is available when minimum level of companyperformance is achieved Average % =

Distribution of target bonus pool funding percentages if minimum performance level achieved:

100%

80%

71-79%

61-69%

70% 0

0

0

91-99%

90%

81-89%

60%

Under 50%

51-59%

50%

0

0

0

0

0

0

56.7%

0

70%90%

0

0

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

80%

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Germany


Companies with a maximum level of company performance beyond which no additionalfunds are added to the formal bonus plan pool

% Companies

57.1% 4

Company Count

25.0% 1

0.0% 0

Maximum Performance Level(for companies headquartered in Germany)

Yes

No (no maximum)

Maximum level of company performance, as % achievement of company objectives

Average % =

Distribution of maximums, as % achievement of company objectives:

Over 200%

126-149%

125%

120%

121-124%

42.9% 3

0.0% 0

0.0%

25.0%

0

1

200%

151-199%

150%

111-119%

100%

110%

101-109%

25.0% 1

0.0%

0.0%

0

0

0.0% 0

0.0%

25.0%

0

1

166.3%

0.0% 0

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Section One: Variable Bonus/Incentive Compensation Programs (continued


Germany


Maximum Company Performance Level, as % Achievement of Company Objectives(company count)Maximum Performance Level

(for companies headquartered in Germany)

Percentage of target bonus pool that is available when maximum level of companyperformance is achieved Average % =

Distribution of target bonus pool funding percentages if maximum performance level achieved:

167.5%

120%125%200%

0

0

0

0

0

1

0

0

0

0

0

0

Over 200%

126-149%

125%

120%

121-124%

200%

151-199%

150%

111-119%

100%

110%

101-109%

150% 110%

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

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Cash Profit Sharing Eligibility and Company Performance Metrics

Germany


Companies with all employees eligible to participate in the company's cash profitsharing plan (after satisfaction of any post-hire waiting period)

% Companies

0.0% 0

Company Count

20.0% 1

20.0%

20.0%

1

1

100.0% 3

Cash Profit Sharing Eligibility and Company Performance Metrics(for companies headquartered in Germany)

Yes

No

If No, employee groups that are excluded (more than one can apply):

Sales incentive plan participants

Formal bonus plan participants

Corporate officers/executives

Other

Two measures used

Three or more measures used

Sales/revenue level or growth

Measures (more than one can apply):

100.0% 3

100.0% 3

0.0%

0.0%

0

0

Company performance metrics used to determine total amount of cash profit sharing

One measure used

Profit/income

Quality

New product introduction/development

Customer satisfaction

40.0% 2

0.0% 0

100.0%

0.0%

3

0

0.0% 0

0.0% 0Achievement of other specific non-financial company objectives

Sales/revenue only

Combinations:

Profit/income only

Measure(s) other than sales/revenue or profit/income only

Sales/revenue + profit/income

0.0%

0.0%

0

0

0.0% 0

100.0% 3

Sales/revenue and/or profit/income + other measures 0.0% 0

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Cash Profit Sharing Payment

Cash profit sharing payments made for last plan year

Yes

% Companies

75.5% 37

36

Company Count

83.3%

16.7%

40

8

59.2% 29

Cash Profit Sharing Payments Made and Payment Frequency

Germany

No

Cash profit sharing payments as % base salary

Average % =

75th percentile =

50th percentile =

25th percentile =

Annual

Semiannual

Other

Quarterly

24.5% 12

20.4% 10

20.4%

0.0%

10

0

5.8%

7.3%

4.0%

2.9%

Cash profit sharing payments expected to be made for current plan year

Yes

No

Typical payment frequency

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Discretionary Bonus Plan Participation

Germany


Percentage of total non-sales employees typically receiving an award over the course ofa year when discretionary bonuses are paid

25thCompany Count


75th 50th

Percentile


% Employees Receiving Discretionary Bonus(for companies headquartered in Germany) Average

Discretionary Bonus Payment

Discretionary bonus payments made for last plan year

Yes

% Companies

80.3% 102

85.0% 108

15.0% 19

Company CountDiscretionary Bonus Payments Made

No

Discretionary bonus payments expected to be made for current plan year

Yes

No

19.7% 25

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Total Variable Bonus/Incentive Compensation Payments

Germany

- Data is presented below for companies that are headquartered in Germany.- Total variable bonus/incentive compensation payments are payments made to all employees (including executives) under formal bonus plans, cash profit sharing plans, discretionary bonus plans and other variable compensation plans (but excluding sales incentive plans) for performance in the last fiscal year.- Total actual base payroll for the last fiscal year includes base salaries for all employees (including sales employees) whether or not they received a bonus/incentive payment; also includes fixed guaranteed extra months pay, if any (e.g., 13th month, 14th month, etc.); for employees in India, also includes fixed, regularly paid allowances.- Total operating income for the last fiscal year is defined as company earnings before interest and taxes (companies with zero operating income or a loss are excluded).- Global numbers also include employees in Germany.

Germany Employees: Germany total variable bonus/incentive compensation payments as apercentage of:

25thCompany Count

Global operating income

75th 50th

Percentile

13.2% 4Germany base payroll

Total Variable Bonus/Incentive Compensation Payments(for companies headquartered in Germany) Average

14.1%

Global revenue

Global Employees (includes Germany): Global total variable bonus/incentive compensationpayments as a percentage of:

Global operating income

15.6% 12.3% 9.5% 5Global base payroll 13.6%

Global revenue 3 2.4%

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Types of Car Plans

Companies with car plan covering local nationals in Germany (excluding salespersonnel or field engineering (systems/applications engineering) personnel)Yes

% Companies

47.3% 194

No

Company car only

Cash allowance only

52.7% 216

22.7% 44

45.4% 88

32.0% 62

Company Count

Types of car plans (% companies = of those with any plan)

Fuel for private motoring covered

Other operating expenses covered (e.g., maintenance, insurance, repair costs, etc.)

Fuel for private motoring covered

Other operating expenses covered (e.g., maintenance, insurance, repair costs, etc.)

67.0% 71

70.8% 75

39.3% 59

32.7% 49

Types of Car Plans

Germany

Both company car and cash allowance

If company car provided:

If cash allowance provided:

Section Two: Car Plans and Allowances

Company car

Cash allowance

Combinations:

54.6% 106

77.3% 150

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Participation in Car Plan

Germany

Eligible

Car Only Allowance Only Either

If Eligible, Type of Plan

Yes% Cos / # Cos

Employee Levels Eligible to Participate in Car Plan(for companies with a car plan) No

% Cos / # Cos

Executive (VP and above):

56

Management:






59

47

25




36

31

12

2

92.8% 180/

90.2% 175/

76.8% 149/

47.9% 93/

63.9% 124/

56.2% 109/

23.2% 45/

9.3% 18/

Other Executives

CEO or Top Executive Officer - Country

59

39

37

31

15

22

20

8

5

37

85

79

71

53

66

58

25

11

80 90.7% 176/

7.2% 14/

9.8% 19/

23.2% 45/

52.1% 101/

36.1% 70/

43.8% 85/

76.8% 149/

90.7% 176/

9.3% 18/

Section Two: Car Plans and Allowances (continued)

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Other Allowances/Cash Payments

Germany

% Cos / # Cos % Cos / # Cos % Cos / # Cos % Cos / # Cos % Cos / # Cos % Cos / # Cos

Yes

No

13.6% 56/

86.4% 356/

Employee Levels Eligible AllowanceProvided All

EmployeesExecutives

OnlyExec + Mgmt

OnlyMgmt + IndivContrib Only

Indiv ContribOnly

Housing allowance

Company provided housing

Housing loan or mortgage subsidy

13.2% 7/

0.0% 0/

0.0% 0/

85.7% 6/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

0.0% 0/

14.3% 1/

0.0% 0/

0.0% 0/

Meal allowance

Transportation allowance (other than car allowance)

Employee Education Allowance

46.3% 25/

45.3% 24/

3.8% 2/

80.0% 20/

66.7% 16/

100.0% 2/

0.0% 0/

0.0% 0/

0.0% 0/

4.0% 1/

8.3% 2/

0.0% 0/

8.0% 2/

0.0% 0/

0.0% 0/

8.0% 2/

25.0% 6/

0.0% 0/

Other Allowances/Cash Payments

Section Two: Car Plans and Allowances (continued)

Any regular fixed allowances/cash payments (otherthan car allowance) provided to local nationals inGermany (excluding payments that are reimbursementfor actual expenses)

Type of allowance/cash payment (for companiesproviding any allowance)

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Section Three: Pay Practices and Organization Measurements

Base Salary Structures

Germany

Formal salary range midpoints used to help establish typical rates of pay or set minimum and maximum rates of pay for jobs

184

86

130

Base Salary Structures

SupportIndividual Contributor

265

44

100

44.2%

41.7%

58.3%

182

91

127

44.2%

42.4%

57.6%

182

92

125

44.7%

39.8%

60.2%

Co Count% CosCo Count% Cos Co Count% Cos Co Count% Cos

ExecutiveVP and above

Management(Director/Manager/Supervisor)

ProfessionalIndividual Contributor

64.3%

30.6%

69.4%

Yes

No

Salary range midpoints adjusted within last 12 months

Yes

228147 55.8% 230 55.8% 230 55.3% 35.7%

10071 54.4% 98 53.8% 98 54.9% 58.2%

No

Plan to adjust salary range midpoints in next 12 months

Yes

No

8251 45.6% 82 46.2% 84 45.1% 41.8%

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Section Three: Pay Practices and Organization Measurements (continued)

Base Salary Structures (continued)

Germany

Salary Range Midpoints Adjusted in Last 12 Months

71

Salary Structure Adjustment Percentage


32 2.9%

3.5%

2.5%

76 2.7%

3.0%

2.4%

77 3.4%

3.7%

2.6%

Co CountAdjust %Co CountAdjust % Co CountAdjust % Co CountAdjust %




3.6%

3.0%

2.5%

75th percentile

50th percentile

25th percentile 2.0% 2.0% 2.0% 2.0%

Average adjustment % from prior midpoints (annualized)

Average %

Salary Range Midpoints Planned Adjustment in Next 12 Months

4626 2.9%

3.0%

3.0%

46 2.8%

3.0%

3.0%

48 2.8%

3.0%

3.0%

3.2%

3.0%

3.0%

75th percentile

50th percentile

25th percentile 2.0% 2.0% 2.0% 2.5%

Average adjustment % from prior midpoints (annualized)

Average %

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Establishing Rates of Pay

If traditional salary grade ranges are not used, statement that best describes practicefor establishing rates of payManagers can hire at any rate they choose without guidance from HR

% Companies

1.1% 2

Managers typically seek guidance from HR with each hiring decision

A broadband system is used where several job levels share one wide range; pay is determined on acase-by-case basis and may fall anywhere within the range

Salary ranges exist, but range minimum and maximum figures are not used to formally control ratesof pay

41.3% 76

45.1% 83

4.3% 8

Company Count

Job-specific salary targets or reference points are provided as guidance

Other

6.0% 11

2.2% 4

Establishing Rates of Pay

Germany

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Shift Differential Pay Policies

Extra compensation provided for working a second or third shift

Second shift:

% Companies

Management

2.0% 8

19.1% 78

79.0% 323

Company Count

Yes

Shift Differential Provided

Germany

- Pay policies for second shift (an established work shift that begins after 2 PM/1400 hours) and third shift (an established work shift that begins after 10 PM/2200 hours)

No

NA - no second shift

Individual Contributor

Yes

No

NA - no second shift

6.9% 28

14.2% 58

78.9% 322

Third shift:

Management

2.4% 10

17.6% 72

80.0% 327

Yes

No

NA - no third shift


Yes

No

NA - no third shift

5.9% 24

14.2% 58

79.9% 326SAMPLE

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Shift Differential Pay Policies (continued)

Amount of extra compensation provided, expressed as a percent of base salary

Second shift:

Management

Germany

- If provided for shift work, extra compensation as a percentage of base salary


Third shift:

Management


25thCompany Count

75th 50th

Percentile

10.0% 10.0%

10.0% 10.0%

9.0% 7

10.0% 19

Amount of Shift Differential Average

11.1%

12.2%

25.0% 15.0%

15.0% 15.0%

15.0% 9

12.8% 18

17.4%

15.9%

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New University Graduate Program

College Diploma (generally 2 year degree) with field of study in:

Electrical Engineering

Germany

-

-

Software Engineering/Computer Science

Marketing

Finance/Accounting

25thCompany Count

75th 50th

PercentileTypical/Target Annual Base Salaryin EUR Average

Bachelor's (generally 4 year degree) with field of study in:



Marketing

Finance/Accounting

49563 47375

48500 47250

45542 8

43698 13

47506

45530

49150 45542

46413 43799

42832 7

38841 6

46315

43745

Master's/MBA with field of study in:



Marketing

Finance/Accounting

53475 46833

53738 46617

45542 7

44024 10

49374

48833

52975 47300

54038 46824

45542 7

42575 6

49298

47541

PhD with field of study in:



Marketing

Finance/Accounting

53248

52400 45000

4

42887 5

54624

50457

3 46465

The results below pertain to hiring employees in Germany who have recently completed a degree and who have no or limited full-time professional work experience (e.g., lessthan one year experience) at the time of hire.Results reflect current typical or target annualized starting base salary in local currency for Germany (EUR) for new university graduates with the listed degree and field of study.Note: Data presented for graduates from "typical" colleges/universities, rather than graduates of "premium schools" (such as Harvard, Stanford, MIT, etc., in the US).

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Span of Control

Global (includes Germany): Total number of executive/management employees globally aspercent of total global employee headcount

Germany

-

Vice President (or equivalent) and higher

Director/Senior Director (or equivalent)

Manager/Senior Manager (or equivalent)

25thCompany Count

75th 50th

Percentile

2.7% 1.6%

6.2% 5.1%

0.9% 7

2.1% 7

Span of Control(for companies headquartered in Germany) Average

1.9%

4.3%

12.6% 10.8%

1.2% 0.8%

7.3% 7

0.4% 7

9.9%

0.9%Supervisor (or equivalent)

Germany: Total number of executive/management employees in Germany as percent of totalGermany employee headcount




2.7% 1.3%

5.8% 4.3%

0.8% 7

3.0% 7

1.9%

4.6%

12.6% 10.2%

1.2% 0.8%

6.4% 7

0.0% 7

9.5%


Non Germany: Total number of executive/management employees outside Germany as percentof total employee headcount outside Germany




2.7% 1.2%

5.9% 5.7%

0.9% 7

1.5% 7

2.0%

4.5%

13.4% 9.7%

1.4% 0.5%

7.7% 7

0.0% 7

10.5%


Data is presented below for the non-sales employee population (contractors and part-time employees excluded) for companies that are headquartered in Germany.

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RADFORD GLOBAL TECHNOLOGY SURVEY (October 2015) Copyright 2015 Aon plc

Section Four: Equity/Long Term Incentive Programs

Types of Equity/Long Term Incentive Programs

Companies with equity/LTI plan covering local nationals in GermanyYes 82.0% 338

No

Stock Options

Restricted Stock/Units (RS/RSU)

Restricted stock only

Restricted stock units only

Both restricted stock and units

18.0% 74

55.6% 188

4.7% 16

63.9% 216

Types of plans (% companies = of those with any plan):

Employee Stock Purchase Plan (ESPP)

Other

Stock Appreciation Rights (SAR)

Long Term Cash Bonus Plan

6.5% 22

3.6% 12

3.6%

35.8%

19

121

0.6% 2


Germany

- See plan definitions at end of report.

75.1% 254

89.5% 274

10.5% 32

51.1% 140

4.7% 13

75.2% 206

7.3% 20

3.6% 10

4.4%

44.2%

12

121

0.4% 1

87.2% 239

60.4% 64

39.6% 42

75.0% 48

4.7% 3

15.6% 10

3.1% 2

3.1% 2

10.9%

0.0%

7

0

1.6% 1

23.4% 15

% Cos # Cos

All Companies

% Cos # Cos

Public Companies

% Cos # Cos

Private Companies

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Section Four: Equity/Long Term Incentive Programs (continued)

Types of Equity/Long Term Incentive Programs (continued)

Plan combinations (excluding ESPP and Other):

One plan:

Options only

32.3% 109

0.6% 2

0.0% 0

2.4% 8

1.5%

0.0%

5

0


Germany

RS/RSU only

SAR only

Long Term Bonus only

Two plans:

Options + RS/RSU

Options + SAR

Options + Long Term Bonus

RS/RSU + SAR

RS/RSU + Long Term Bonus

SAR + Long Term Bonus

Three plans:

Options + RS/RSU + SAR

Options + RS/RSU + Long Term Bonus

Options + SAR + Long Term Bonus

RS/RSU + SAR + Long Term Bonus

Four plans:

Options + RS/RSU + SAR + Long Term Bonus

0.6% 2

1.2% 4

0.0%

0.0%

0

0

21.1% 71

37.4% 126

0.0% 0

3.0% 10

0.0% 0

31.7% 105

0.6% 2

0.0% 0

1.8% 6

1.5%

0.0%

5

0

0.6% 2

0.9% 3

0.0%

0.0%

0

0

8.5% 28

35.6% 118

0.0% 0

1.2% 4

0.0% 0

1.2% 4

0.0% 0

0.0% 0

0.6% 2

0.0%

0.0%

0

0

0.0% 0

0.3% 1

0.0%

0.0%

0

0

12.9% 43

2.4% 8

0.0% 0

1.8% 6

0.0% 0

% Cos # Cos

All Companies

% Cos # Cos

Public Companies

% Cos # Cos

Private Companies

SAMPLE

REPORT

25




Equity/LTI Eligibility - Overall Summary

Germany

- Presented below are the percentage and count of companies with the listed employee level eligible to participate in any kind of equity/LTI plan, including Stock Options, Restricted Stock/Units, SARs, Long Term Cash Bonus, and/or Other Stock/LTI (other than ESPP)


RS/RSUOnly

2

Management:






2

2

0




1

0

0

0

Employee Levels Eligible For AnyEquity/LTI Plan

Both SO+ RS/RSU

SARsLong Term

BonusOther

Stock/LTI

StockOptions

or RS/RSUOptions

Only

Yes% Cos / # Cos

No% Cos / # Cos

If Eligible, Type of PlanEligible

100.0% 335/

96.7% 324/

83.6% 280/

69.0% 231/

83.0% 278/

73.1% 245/

54.9% 184/

42.7% 143/

0.0% 0/

3.3% 11/

16.4% 55/

31.0% 104/

17.0% 57/

26.9% 90/

45.1% 151/

57.3% 192/

325

312

274

227

272

240

182

143

72

73

69

62

65

63

53

44

138

163

158

126

158

139

100

79

115

76

47

39

49

38

29

20

12

10

5

2

5

3

2

2

16

14

10

8

10

8

4

1


Management:









Types of Grants for Which Eligible % Companies

New-Hire Only

Company Count % Companies

Ongoing Only

Company Count % Companies

Both New-Hire and Ongoing

Company Count

2.4% 8

2.2% 7

2.5% 7

4.3% 10

2.9% 8

4.5% 11

8.2% 15

9.1% 13

6.9% 23

12.0% 39

18.2% 51

17.7% 41

16.9% 47

18.0% 44

19.0% 35

19.6% 28

90.7% 304

85.8% 278

79.3% 222

77.9% 180

80.2% 223

77.6% 190

72.8% 134

71.3% 102

If Stock Options or RS/RSU

SAMPLE

REPORT

26




Equity/LTI Eligibility - By Type of Plan

Germany


Management:









Employee Levels Eligible by Type of Plan

91.4% 297

86.5% 270

79.2% 217

77.5% 176

80.1% 218

77.5% 186

72.0% 131

71.3% 102

% Cos # Cos % Cos # Cos % Cos # Cos % Cos # Cos % Cos # Cos

Yes No New-Hire Only Ongoing Only Both

Eligible If Eligible, Type of Grant

Stock Options and/or RestrictedStock/Units

6.2% 20

11.2% 35

18.2% 50

18.1% 41

16.9% 46

17.9% 43

19.2% 35

19.6% 28

2.5% 8

2.2% 7

2.6% 7

4.4% 10

2.9% 8

4.6% 11

8.8% 16

9.1% 13

100.0% 325

96.0% 312

84.3% 274

69.8% 227

83.7% 272

73.8% 240

56.0% 182

44.0% 143

0.0% 0

4.0% 13

15.7% 51

30.2% 98

16.3% 53

26.2% 85

44.0% 143

56.0% 182

Stock Options


Management:









89.3% 167

83.9% 125

78.4% 91

78.2% 79

78.9% 90

76.2% 77

73.2% 60

75.0% 48

5.9% 11

10.1% 15

12.9% 15

12.9% 13

13.2% 15

12.9% 13

13.4% 11

9.4% 6

4.8% 9

6.0% 9

8.6% 10

8.9% 9

7.9% 9

10.9% 11

13.4% 11

15.6% 10

100.0% 187

79.7% 149

62.0% 116

54.0% 101

61.0% 114

54.0% 101

43.9% 82

34.2% 64

0.0% 0

20.3% 38

38.0% 71

46.0% 86

39.0% 73

46.0% 86

56.1% 105

65.8% 123

SAMPLE

REPORT

27




Equity/LTI Eligibility - By Type of Plan (continued)

Germany


Management:










89.3% 226

84.9% 203

77.6% 159

75.8% 125

78.7% 163

76.3% 135

68.2% 88

67.7% 67




Restricted Stock/Units

10.3% 26

15.1% 36

22.4% 46

22.4% 37

20.8% 43

22.0% 39

25.6% 33

27.3% 27

0.4% 1

0.0% 0

0.0% 0

1.8% 3

0.5% 1

1.7% 3

6.2% 8

5.1% 5

100.0% 253

94.5% 239

81.0% 205

65.2% 165

81.8% 207

70.0% 177

51.0% 129

39.1% 99

0.0% 0

5.5% 14

19.0% 48

34.8% 88

18.2% 46

30.0% 76

49.0% 124

60.9% 154

Stock Appreciation Rights (SARs)


Management:









66.7% 8

50.0% 5

20.0% 1

20.0% 1

0.0% 0

33.3% 4

50.0% 5

80.0% 4

80.0% 4

100.0% 3

0.0% 0

0.0% 0

0.0% 0

0.0% 0

0.0% 0

100.0% 12

83.3% 10

41.7% 5

16.7% 2

41.7% 5

25.0% 3

16.7% 2

16.7% 2

0.0% 0

16.7% 2

58.3% 7

83.3% 10

58.3% 7

75.0% 9

83.3% 10

83.3% 10

SAMPLE

REPORT

28




Equity/LTI Eligibility - By Type of Plan (continued)

Germany


Management:










50.0% 8

50.0% 7

50.0% 5

50.0% 4

50.0% 5

50.0% 4

50.0% 2




Long Term Cash Bonus

50.0% 8

50.0% 7

50.0% 5

50.0% 4

50.0% 5

50.0% 4

50.0% 2

0.0% 0

0.0% 0

0.0% 0

0.0% 0

0.0% 0

0.0% 0

0.0% 0

88.9% 16

77.8% 14

55.6% 10

44.4% 8

55.6% 10

44.4% 8

22.2% 4

5.6% 1

11.1% 2

22.2% 4

44.4% 8

55.6% 10

44.4% 8

55.6% 10

77.8% 14

94.4% 17

Other Stock/LTI


Management:









SAMPLE

REPORT

29




Percent Employees Receiving Equity Grant

Germany


Percentage of existing (not recently hired) employees that actually received an ongoingequity/LTI grant in the last 12 months

25thCompany Count


75th 50th

Percentile

3

3


% Employees Receiving Equity Grant(for companies headquartered in Germany) Average

52.4%

57.3%

All Equity/LTI Plans combined



Stock Options

% employees globally (includes Germany) 3


35.1%

Restricted Stock/Units

SAMPLE

REPORT

30




Size of Equity/LTI Grants Compared to Headquarters Country

Germany

- Data is presented below for the size of equity/LTI grants (excluding ESPP) to employees located in Germany expressed as a percentage of grants to peer level positions in each reporting company's headquarter country (100% = same size grant as in headquarters country).- Data limited to companies where peer level positions receive grants in both Germany and headquarters country.- Data excludes companies headquartered in Germany.

New-Hire Grant Size as % HQ

0

Average % (all companies)

50

21

12

14

8

1

0

Size of Equity/LTI Grants in Germanyas % HQ Country


1

176

36

22

30

7

2

0

1

130

46

26

35

11

4

0

1

94

42

26

32

10

5

0

Co Count% HQCo Count% HQ Co Count% HQ Co Count% HQ




Average % (companies under 100%)

Distribution of % HQ:

Over 100% of HQ country

100% of HQ country

76-99% of HQ country

75% of HQ country


50% of HQ country


Under 25% of HQ country

Ongoing Grant Size as of % HQ

Average % (all companies)

Average % (companies under 100%)

Distribution of % HQ:

Over 100% of HQ country

100% of HQ country


75% of HQ country


50% of HQ country


Under 25% of HQ country

106

56

274

97

86.9%

72.4%

253

122

85.1%

72.4%

210

115

85.1%

71.8%

90.7%

73.2%

1

52

20

16

18

7

1

0

0

184

36

24

30

9

2

0

3

149

46

26

37

13

4

0

2

115

45

26

35

11

6

0

115

62

285

101

87.7%

72.2%

278

126

85.9%

71.9%

240

123

85.2%

72.2%

90.4%

72.9%SAMPLE

REPORT

31




Stock Option Vesting Schedule

Germany


Company Count

Stock Option Vesting Schedule(for companies headquartered in Germany)

Typical stock option vesting schedule

Monthly from date of grant

X% after 6 months, then monthly

Quarterly from date of grant

X% after 1 year, then monthly

X% after 1 year, then quarterly

Other

Annually (once a year)

Cliff vesting (all at once)

% CompaniesCompany Count% Companies

0

1

1

0

0

0

0

1

0.0%

33.3%

33.3%

0.0%

0.0%

0.0%

0.0%

33.3%

Ongoing OptionsNew-Hire Options

When stock options typically become fully vested

1 year

3 years

2 years

4 years

Other

5 years

More than 5 years

When stock options expire after grant date

5 years

7 years

6 years

8 years

Other

9 years

10 years

0

0

0

0

0

1

2

0.0%

0.0%

0.0%

0.0%

0.0%

33.3%

66.7%

0

1

0

0

0

2

0

0.0%

33.3%

0.0%

0.0%

0.0%

66.7%

0.0%

SAMPLE

REPORT

32




Restricted Stock/Units Vesting Basis

Germany

- Data is presented below for companies that are headquartered in Germany .- Factors that determine vesting of new-hire and/or ongoing restricted stock/units:

Factors used to determine vesting of restricted stock/units(more than one can apply)

Restricted Stock/Units Vesting Basis(for companies headquartered in Germany)


Co Count% CosCo Count% Cos Co Count% Cos Co Count% Cos




New-hire restricted stock/units

Time-based only

Time-based with performance accelerators

Performance-based with fixed award size

Performance-based with variable award size

1

1

1

33.3%

33.3%

33.3%

1

1

1

33.3%

33.3%

33.3%

Ongoing restricted stock/units

Time-based only

Time-based with performance accelerators

Performance-based with fixed award size

Performance-based with variable award size

1 33.3% 1 33.3%

Time-based only (vests according to established timeframe).Time-based with performance accelerators (achievement can accelerate vesting).Performance-based with fixed award size (e.g., fixed number of shares either vest or don't vest based upon completion of performance objectives).Performance-based with variable potential award size (e.g., degree of performance achievement determines the number of shares the employee receives; often communicatedusing threshold/target/maximum payout schedule).

SAMPLE

REPORT

33




Restricted Stock/Units Vesting Schedule

Germany


Company Count

Restricted Stock/Units Vesting Schedule(for companies headquartered in Germany)

Typical RS/RSU vesting schedule

Monthly from date of grant

X% after 6 months, then monthly

Quarterly from date of grant

X% after 1 year, then monthly

X% after 1 year, then quarterly

Other

Annually (once a year)

Cliff vesting (all at once)

% CompaniesCompany Count% Companies

Ongoing RS/RSUNew-Hire RS/RSU

Length of restriction period before employee is fully vested

1 year

3 years

2 years

4 years

Other

5 years

More than 5 years

Note: Excludes companies where vesting is performance-based only and which do not have a setvesting schedule.

SAMPLE

REPORT

34




Employee Stock Purchase Plan (ESPP) Provisions

Germany


Company CountESPP Provisions (for companies headquartered in Germany)

Yes

Length of "look-back" period

No

% Companies

Over 75%

Typical percentage of eligible employeesparticipating in ESPP

51-75%

Not available

25-50%

Under 25%

ESPP has a "look-back" period (period of timecoincident with offering period during whichparticipant will be provided the lower of the initialoffering price or closing price at the end of theoffering period)

Company CountESPP Provisions (for companies headquartered in Germany)

1 month

3 months

6 months

18 months

12 months

24 months

0% (no discount)

Other

Amount of purchase price discount

% Companies

5%

10%

Other

15%

Length of purchase/offering period (amount of timebetween stock purchases)

3 months

6 months

18 months

12 months

24 months

Other

SAMPLE

REPORT

35



Definitions

Types of Bonus/Incentive Compensation Plan(s)

Germany

A bonus or incentive plan provides an employee with the opportunity to earn compensation that is not guaranteed and cannot be counted upon from year to year. Variable pay orbonus plans may be formally defined or be very informally organized. Other than sales incentives (which are not considered part of this survey) bonus/incentive plans tend to fallinto one or more of these basic categories:

Formal bonus plans vary widely but generally have established performance expectations. Awards are defined and employees can expect an award if performancecriteria and overall funding thresholds are met. Awards may include a subjective or discretionary component and still be considered a formal plan. Formal bonus plansmay contain individual, team, group, division and/or organization-wide metrics. These plans have identified participants; established performance objectives; and specificbonus determination formulas. A threshold level of organization performance may be required to fund the plan. Target bonus awards are typically established in advance.Most companies have some type of formal bonus plan, even if only for executives.

The defining characteristic of a discretionary bonus program is that the award is not based on pre-established formulas or performance objectives. These awards areused to recognize significant achievement "above and beyond” expectations. Discretionary bonus awards can be formally controlled (with guidelines and approval criteria,budgets, and required minimum organization performance levels) or undefined and coordinated on a case-by-case basis. Typically, only certain employees amongotherwise eligible employees receive discretionary bonus awards. The range of awards may be defined by policy, but potential recipients are typically not aware of specificbonus guidelines.

Cash profit sharing plans use organization-wide metrics, such as profitability or other factors, to determine award amounts. A certain minimum level of organizationperformance may be required before awards are given. Individual participation is automatic if the organization meets performance objectives. The amount of the awardpayment is not based upon individual performance. The incentive is typically a constant percentage of salary/fixed compensation for all participants, a set amount, oradjusted based on factors not related to individual performance, such as salary grade or length of service. Employees participating in formal bonus plans or sales incentiveplans may or may not be participants.

SAMPLE

REPORT

36



Definitions (continued)

Types Equity/LTI Plan(s)

Germany

A long-term incentive plan provides an employee with the opportunity to earn compensation based upon performance of the company (typically measured by the value of ownershipin the company through share price) or individual performance over a multi-year time period. Compensation is not guaranteed and future awards cannot be counted upon from yearto year. Equity and Long Term Incentive plans tend to fall into one or more of these basic categories:

Stock Option Plan: A plan under which employees are granted a right (option) to purchase a specified number of shares over a fixed period of time at a preset price.Employees earn compensation by selling the shares of stock at a price above the preset purchase price after a vesting period. Plans of this type are generally considered“appreciation vehicles” since any gain is tied to the increased value of the company’s equity.

Restricted Stock (RS/RSU): A plan under which employees are granted shares of company stock or units that are converted to shares of company stock (without cost orfor a nominal fee) subject to restrictions on the subsequent sale or transfer of the shares. Time-based restrictions are lifted over a period of time (typically 3-5 years)dependent upon continued service. Performance-based restrictions are lifted upon achievement of pre-determined objectives. Performance restrictions may impact whenrestrictions lapse or the number of shares that are released, or both. Restricted Stock plans are sometimes called “full value vehicles” since the entire value of the stock isgiven to the employee (rather than just the gain in value provided in appreciation vehicles).

Stock Appreciation Rights (SARs) Plan: A right to receive, in lieu of the exercise of a stock option, an amount of cash, stock or a combination of both equal to the gain invalue of the shares over a period of time.

Long-Term Cash Bonus Plan: A plan under which incentives are paid based upon the achievement of long-term company performance objectives (e.g., cumulativeprofits before tax, earnings per share). The performance period is typically at least 3 years in length. A long-term plan is different from an annual bonus plan where theaward is paid over a number of years because the performance measurement period is more than one year. Long-term cash bonus plans are different from multi-yearretention plans under which the amount of the cash payment is not variable or performance related.

Employee Stock Purchase Plan: A plan under which participants are granted a right to purchase shares of stock in the company with funds collected over a fixed periodof time at a price based upon an established rule, using money collected through payroll deductions. A limitation is typically placed on the percentage of an employee’sbase pay that can be applied to the purchase.SAMPLE

REPORT

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