Globalreward Strategy or principles?

• Executive pay review

• Executive STIP and LTIP

• Incentive principles

• Salary review principles

• Benchmark data procurement

What we manage globally…

What we manage locally

• Benefits design

• Benefits procurement

• Non-executive STIP

• Salary review budgets and distribution

• Recognition programmes

A global reward strategy: should we?

.

Considerations for programmes

Government considerations

Regulatory considerations

Cultural considerations

Internal framework

Gender pay gap: in force March 2016

Government considerations

UK government require companies with 250 or more employees

to report on the gender pay gap

Regulatory considerations

Country Advisory vote on the remuneration

report

Binding vote on future

remuneration policy

Binding vote on director

remuneration

Vote on share-based incentive

plans

Japan For companies with an audit and supervisory board

Option plans only

UK At least every 3 years USA Australia Changes only

France For companies voluntarily complying with the local code

Changes only When for board members

Italy Binding for financial institutions only

Germany Changes only Switzerland No but policy should be

described Netherlands Changes only

Shareholder votes: say on pay

Market expectations

Cultural considerations

Average

US

Average WoW

UK

Germany

France

Italy

Spain

Australia

Singapore

China

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

32%

42%

30%

33%

37%

31%

27%

27%

24%

31%

34%

10%

41%

7%

14%

5%

4%

8%

3%

5%

9%

1%

STIPLTIP

% of base salary

Cultural inconsistencies?

Cultural considerations

Requirements for consistency

Internal framework

Global Mature vs. emerging

Multiple zones Local

Typical approach

One global approach consistent across all

regions and markets

2 zones 3-5 zones

Defined for each country /

market

Geographic zoning

Mature and emerging markets

North America, Europe and Australia, emerging

markets etc.

Market zoning

Key business and new ventures

Multiple business activities

Globalisation and convergence

100 million users

Nationalism and protectionism

Think global act local?

• Budget and affordability• In line with market activity and affordability• In line with local legislation• Market legal requirements

• Overall affordability• Global principles

Global consideration

Local flexibility

Global with local flexibility: salary review

• Regulatory requirements• Perceived value or market worth• Income tax / social security benefits• Availability of benefits or suppliers

• Core requirements• EVP / brand supporting requirements• Global employees / nomads / 3rd country nationals

Global consideration

Local flexibility

Global with local flexibility: benefits design

• Local message• Key messages from a more visible line leader• More opportunity to use local teams as part of the

communications cascade

• Key message• Feeling of being part of something bigger

Global consideration

Local flexibility

Global with local flexibility: communication

Digital disruption

Keep it social

Bespoke engagement

@richardbeeby