Compensation Trends within the Energy Sector

XBIG6COM, LLC

May 2016

Prepared for:

AGA/EEI Spring Accounting Conference

New Orleans, Louisiana

April 2016: Unemployment Rate is 5.0% (published) or 7.5% (including those “dropped out”) - depending on the denominator used.

Big Picture

* Xbig6 Compiled. DOL Public Statistics.

ADM_10 Clerical

Administrative

ADM_20 Knowledge

Workers

ADM_30 Management &

Professional

ADM_40 Executive

Leaders

SUP_10 General Labor

SUP_20 Skilled Support

& Supervisors

SUP_30 Support

Managers

SUP_40 Support

Leadership

OPS_10 Oilfield Labor

General Labor

OPS_20 Skilled Labor

Supervisors

OPS_30 Operations

Managers

OPS_40 Operations

Leadership

Operations

Path

Ops Support

Path

Administrative

Path

General Labor

Clerical &

Entry Level

Skilled Labor

Skilled Support

& Knowledge

Workers

Managers

& Professional

Staff

Upper

Management &

Executive

Big Picture

Day Week Month/Qtr Qtr/Annual

Task

Completion Smart

Goal

Business

Outcome

Financial

Result

5 6 7 8 9 10 11 12 13 14 * Xbig6

hardship

transportation allowance

contributions

housing allowance

spot bonus

defined benefit (?)

flex schedule

team incentive

sign-on bonus

double overtime

Benefits and trends

Big Picture

* Glassdoor

Pay and Benefits

• Salary increases 2.9% (average) 4.5% (top performers)

• Increased healthcare costs (4.5%) mostly to the employee

• Wellness seminars (health and financial).

The Work Itself

• Flexible work arrangements

Telecommuting

Staggering work hours

• Less emphasized formal reviews in favor of frequent informal reviews

Recruiting Talent

• Increased interest in boomerangs

• In-person and virtual alumni events

• Social media (profiles) increasingly used to find candidates.

• More lucrative employee referral programs ($100 to $500)

Big Picture

* Mercer

Entry Level

Clerical

Some College

Early

Professional

Experienced

Staff

Professional

Staff

Supervisory

Management

Advanced

Degrees

Exec

5 6 7 8 9 10 11 12 13 14

$45k

$90k

$135k

$180k CPA

MBA

20 yrs

DFW

TDSP

6 Staff

DOL

Levels

Generalized / Avg FIN-Act Pay

4 year trend

* DOL Public Statistics

Hypothetical Experienced CPA

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

• $87,500 base

• $5,000 bonus

• Medical, Dental

• 3 weeks vacation

• 401k matching

* Payscale.com (Glassdoor, DOL)

Hypothetical Experienced CPA

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

* Payscale.com

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

Hypothetical Experienced CPA

* Payscale.com

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

Hypothetical Experienced CPA

* Payscale.com

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

Hypothetical Experienced CPA

* Payscale.com

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

Hypothetical Experienced CPA

* Payscale.com

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

Hypothetical Experienced CPA

* Payscale.com

CPA

MBA

20 yrs

DFW

TDSP

6 Staff

Hypothetical Experienced CPA

* Payscale.com