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R-TSR Winning the Race - Communicating Performance-based Equity Compensation


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This whitepaper was written in conjunction with the valuation specialists at AON Radford. It discusses how to best communicate Relative TSR and other KPI, Metrics and Goals for Performance Equity Compensation Plans.

If you have, or are considering rolling out, a performance equity compensation programs this is an essential training tool to improve the results of your program.

Published in: Economy & Finance
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R-TSR Winning the Race - Communicating Performance-based Equity Compensation

  1. 1. Compensation Thought Leadership2012Q3 - CommunicationCommunica)on:  The  Key  to  Winning  the  Rela)ve  TSR  Race As  is  the  case  with  all  compensa0on  programs,  clear  and  transparent  communica0on  is  cri0cal  to  success.   This  is  especially  true  for  performance-­‐based  equity  awards,  which  are  o=en  among  the  most  complex  forms   of  employee  compensa0on.  And  although  performance-­‐based  equity  awards  present  significant  opportuni0es   to  improve  communica0on,  they  also  require  careful  approaches  to  employee  engagement.  The  following   ar0cle  explores  common  communica0on  challenges  associated  with  Rela0ve  TSR  and  other  performance   metrics  and  presents  solu0ons  to  ensure  the  successful  implementa0on  and  management  of  performance   equity  plans.  To  start,  we  begin  with  the  short  story  to  set  the  scene  and  to  illustrate  the  consequences  of   poor  communica0on: Bob’s First Race A  Runner’s  Tale Meet  Bob.  He’s  been  fast  his  en1re  life.  When  he   was  five  years  old,  he  ran  across   his  backyard  with  the   wind  blowing  through  his   hair.  He  thought  he  might  be  as  fast  as   a  car,  but   he  wasn’t  allowed  to  run  on   the  street  to  find  out. When  he  got  older,  he  wanted  to  run  on  the   high  school   track  team,  but   he   was   home  schooled.  To  get   around   this,  Bob  would   1me   his   own   runs   by   holding  a   stopwatch  in  his   hand.  Then,   to  see  where   he   stood,   he   checked   the   local   teams’   race   results   posted   in   the   newspaper.   His   1mes   always   beat   the   reported  1mes,  so  Bob  knew  he  was  fast. In  college,  Bob  started  racing   world-­‐class  runners.  He   first  no1ced  the  other  compe1tors  were   far  more   muscular   than  him.  They  had  very  specific  warm-­‐up  and  prepara1on  rou1nes.  It  was  obvious  that  many   made   running   their   first  priority.   Unlike   Bob,   school  and  work   seemed   to  not  be   a   distrac1on   for  the   other  compe1tors.  Bob  was  impressed,  but  not  too  concerned. During  his   first  college  track  meet,   Bob  signed  up  to  run   three   events:   the   100-­‐meter  dash,  the  5K  race,   and  the  marathon. When   he  looked   at  the   line-­‐ups,   he   no1ced  that  he  was   running   against  different  compe1tors   in   every   race.   In  fact,  every  other  runner  seemed  to  specialize  in   short,  mid-­‐   or  long-­‐range  events.  Of   course,  Bob   was  not  really  worried. As   he   lined   up  for  the   100-­‐meter   dash,  Bob  no1ced  the   size   of   the  runners   on  either   side   of  him.   They   were   huge.  The  gun  went  off  and  Bob  realized  he  had  a  very  good  view  of  the   back  of  their   shirts  as  they   ran  away.  Bob  finished  in  last  place   and  was  very  disappointed.  How   did   this  happen,   didn’t  they   know   that  Bob  was  fast?
  2. 2. Thinking  over  Bob’s  story,  several  important  ques0ons  emerge.  Why  did  Bob  finish  in  last  place?  Perhaps  Bob  was  compe0ng  against  the  wrong  peers?  Perhaps  Bob  was  in  the  wrong  race  based  on  his  skills  and  experience?  Or  perhaps,  due  to  a  lack  of  informa0on  from  leaders,  team  members  and  other  external  forces,  Bob  was  not  fully  informed  to  complete  successfully  in  the  100-­‐yard  dash?  Regardless,  if  Bob  had  more  informa0on  prior  to  the  race,  it  may  have  influenced  his  prepara0on  and  in-­‐race  decisions,  thereby  improving  his  chances  of  finishing  first.  Clearly,  more  context  and  beOer  communica0on  would  have  helped  Bob,  and  the  same  goes  for  the  ever-­‐changing  and  increasingly  complex  world  of  execu0ve  compensa0on,  par0cularly  equity  compensa0on.Globally  and  in  the  United  Sates,  as  companies  hear  the  call  to  ac0on  from  shareholders  for  greater  alignment  between  corporate  performance  and  execu0ve  compensa0on,  more  companies  are  making  the  shi=  toward  performance-­‐based  equity  incen0ves.  However,  for  performance  awards  to  effec0vely  influence  behaviors  and  impact  decision-­‐making  processes,  there  must  be  an  effec0ve  and  frequent  communica0on  channel.  For  example,  as  performance  awards  become  increasingly  complex,  it  is  difficult  for  employees  to  understand  the  performance  criteria  being  measured,  the  manner  in  which  is  it  measured,  and  the  specific  performance  levels  against  the  goals  that  are  being  achieved  during  the  period.Employees  will  always  be  challenged  in  comprehending  the  ac0ons  required  to  sustain  a  certain  level  of  performance  unless  they  have  access  to  ongoing  informa0on  and  know  where  they  stand  to-­‐date.  Finally,  if  the  design  of  the  award  does  not  align  with  the  company’s  overall  strategy  and   Effec)vely  ac0ons,  the  importance  of  the  performance  award  will  diminish  in  the  eyes  of  employees.  Without   communica)ng  the  a  certain  level  of  communica0on  throughout  the  design  and  measurement  process,  the  en0re   possible  outcomes  meaning  of  performance  awards  can  easily  be  lost  on  par0cipants. of  the  plan  design   or  communica)ng   with  shareholders  Communica)ons  Gone  Awry during  the  design   process  can  allow  In  order  to  understand  the  importance  of  communica0on  in  the  performance  award  process,  one   the  company  to  must  first  understand  common  situa0ons  where  communica0on  was  not  delivered  effec0vely: avoid  design   ‣ Failed  Communica)on  of  Plan  Design nuances  that  will   not  be  well-­‐ Imagine  a  technology  company  where  employees  receive  grants  of  performance  shares   received  by  the   with  ves0ng  0ed  to  the  company’s  total  shareholder  returns  (TSR)  rela0ve  to  the  TSRs  of   marketplace.   selected  peer  companies.  And  at  this  par0cular  firm,  TSR  performance  ranked  at  the  95th   percen0le  of  the  peer  group  a=er  the  last  three-­‐year  performance  period.  At  first  glance,   award  recipients  expected  a  payout  of  200%  given  their  strong  outperformance  against   the  peer  group.  The  only  problem  was  that  the  company’s  actual  TSR  was  flat  over  the   same  0meframe.   While  the  company  did  outperform  most  of  its  peers,  shareholders  did  not  receive  any  real   apprecia0on.  The  design  of  the  Rela0ve  TSR  plan  an0cipated  this  outcome  and  included  a   modifying  func0on  buried  in  the  fine  print  to  limit  employee  gains  whenever  absolute  TSR   is  nega0ve  or  flat.  As  a  result,  final  payouts  under  the  Rela0ve  TSR  plan  were  reduced  to   100%  of  target.  This  approach  made  shareholders  happy,  but  award  recipients  were  taken   aback.  This  was  all  new  news  to  them,  and  they  had  worked  hard  to  outperform  the  peer   group  in  a  tough  economic  environment.   If  the  company  had  previously  disclosed  to  award  recipients  that  final  payouts  might  be   modified  based  on  absolute  performance  when  TSR  is  flat  or  nega0ve,  the  reac0on  from   employees  could  have  been  different.  The  ul0mate  lesson  here  is  to  both  an0cipate   unusual  award  outcomes  in  the  plan  design  process,  and  to  then  communicate  the   poten0al  ramifica0ons  of  plan  design  decisions  to  affected  employees.  
  3. 3. ‣ Failed  Communica)on  of  Award  Values  and  Goals Now  consider  a  financial  services  company  that  first  adopted  the  prac0ce  of  gran0ng   awards  0ed  to  Rela0ve  TSR  in  2012.  Prior  to  this  year,  the  company’s  annual  equity  grants   consisted  of  tradi0onal  stock  op0ons  and  performance  shares  0ed  to  a  complex  series  of   The  goal  of  all   internal  metrics.  Therefore,  consolida0ng  the  equity  program  around  awards  0ed  to   performance  equity   Rela0ve  TSR  was  viewed  by  the  Compensa0on  CommiOee  as  a  simpler,  more  transparent   is  to  retain  and   approach  to  equity  compensa0on.  Furthermore,  the  move  to  Rela0ve  TSR  served  to   reward  par)cipants   reinforce  the  Compensa0on  CommiOee’s  commitment  to  shareholder  value  crea0on  and   while  s)ll  delivering   to  crea0ng  strong  alignment  between  pay  and  performance.  However,  for  employees  not   value  to  the   aOuned  to  the  corporate  governance  environment,  the  en0re  Rela0ve  TSR  concept   company  and   seemed  to  be  a  distant  abstrac0on  from  the  solid  opera0onal  metrics  they  had  previously   shareholders.     aimed  for.  While  complex,  the  past  system  was  well-­‐ingrained  in  the  company’s  culture.   Without  effec)ve   Without  solid  context  around  the  new  compensa0on  paradigm,  employees  felt   communica)on  that   unmo0vated. value  is  lost. Clearly,  when  the  company  adopted  performance  equity  awards  0ed  to  Rela0ve  TSR   metrics  as  their  new  method  of  long-­‐term  compensa0on,  they  did  not  do  enough  to   explain  to  recipients  how  the  awards  worked  and  why  the  company  was  compelled  to   switch  to  this  design.  Specifically,  the  company  did  not  explain  what  day-­‐to-­‐day  and  long-­‐ term  ac0vi0es  would  drive  performance  under  the  new  incen0ve  system,  nor  did  they   share  how  this  approach  would  ul0mately  allow  everyone  in  the  company  to  focus  on   clear  and  transparent  goals.  In  sum,  the  Compensa0on  CommiOee  relied  on  the  promise  of   Rela0ve  TSR  plans  to  ease  communica0on,  while  neglec0ng  the  fact  that  any  change   requires  steady  employee  engagement. The 5K Race A  Runner’s  Tale  Con/nued... Let’s  get  back  to  Bob  for   a  moment.  AQer  Bob  finished  last  in  the   100-­‐meter  dash,  he   was  very  disappointed,  but  he   ate   an  energy  bar,  drank  some   water,  and  got  ready   for  the  next  event:  the  5K   race.   Joe,  one  of  Bob’s   teammates,  said  he  heard  a  couple   of  the  runners   in  the  next  race   had  decided  to  run  the  first  half   quickly  to  wear  out   the   compe11on  and  let  the  finish  be  just  amongst  themselves.  When   the   gun  went   off  Bob  ran  at  his  own  pace,  far  in   the  rear.  When   the  race   got  to   the  halfway  point,   he   started   passing  1red  compe1tors.  As  he  started  the  last  lap   he   no1ced  that  there   were  only   three  people  in  front  of  him.  He  ran  hard  and  passed  one  of  them  just  as  he   “Companies  rated   crossed  the   finish  line.   He   didn’t   win,  but  that   small  bit   of   informa1on  gave   him  a   by  their  employees   chance.  It  also  gave  him  confidence  for  the   marathon.   Remember,  Bob  knew  he  was   in  the  top  quar)le   fast. in  terms  of   openness  of   communica)on  Returning  from  our  story,  we  see  that  once  Bob  was  exposed  to  open  communica0on  from  his   have  delivered  TSR  teammates,  he  fared  much  beOer  against  the  compe00on.  The  same  can  be  applied  to  the  world  of   of  7.9%  compared  equity  compensa0on.  In  fact,  the  Execu0ve  Board  found  that  “companies  rated  by  their  employees   with  2.1%  at  other  in  the  top  quar0le  in  terms  of  openness  of  communica0on  have  delivered  TSR  [results]  (10-­‐year  TSR   companies”,  1998–2008)  of  7.9%  compared  with  2.1%  at  other  companies.”  So,  not  only  do  employees  benefit   according  to  the  from  more  open  communica0on,  but  so  too  do  companies  and  its  shareholders. Execu)ve  Board.What  steps  can  companies  take  to  open  up  lines  of  communica0on  with  employees,  par0cularly  with  respect  to  equity  compensa0on?This  process  needs  to  start  before  an  award  is  granted.  Once  a  company  decides  to  issue  a  performance  award  based  upon  a  certain  metric,  the  company  should  start  to  communicate  to  employees,  shareholders,  and  the  general  popula0on.  They  must  help  everyone  understand  why  
  4. 4. his  is  the  appropriate  metric  and  how  it  0es  in  with  the  company’s  overall  business  plan.  The  company  should  con0nue  this  stance  on  the  importance  of  the  metric  from  the  very  beginning  of  the  plan  design  all  the  way  through  its  comple0on.  One  must  “walk  the  walk”  if  he  or  she  is  going  to   Kickoff  “talk  the  talk.” presenta)ons  and  Addi0onally,  if  the  company  is  going  to  change  its  focus  on  certain  performance  metrics  or  adopt  a   detailed  award  completely  new  plan  design,  we  find  it  helpful  for  companies  to  perform  a  detailed  “kickoff   agreements  can  presenta0on.”  In  this  presenta0on,  the  company  should  go  through  the  design  and  inner  workings   really  help  the  of  the  plan’s  specific  details.  Examples  of  hypothe0cal  payouts  should  be  included,  both  on  the   par)cipants  not  posi0ve  and  nega0ve  ends  of  the  plan.  Addi0onally,  it  may  help  to  explain  the  external  factors   only  understand  the  contribu0ng  to  the  plan’s  design,  such  as  shareholder  pressure,  changing  business  goals,  or  a  desire   terms  of  the  award,  to  become  a  leader  in  corporate  governance.  Companies  can  perform  these  presenta0ons   but  also  the  goals  of  internally,  with  the  help  of  an  external  consultant  or  with  the  support  of  cross-­‐func0onal  teams   the  company.from  across  the  business,  and  in  our  experience,  both  forms  of  assistance  produce  posi0ve  employee  reac0ons.Some  companies  have  also  started  to  provide  more  concise  award  agreements  and  plan  summaries.  They  create  simple  documents  that  present  informa0on  in  a  clear  manner,  rather  than  using  generic,  wordy  legal  language.  This  helps  employees  understand  the  design  of  the  plan,  its  metrics,  and  the  award  opportunity,  plus  it  creates  a  more  direct  link  between  performance  expecta0ons,  goals  and  behaviors  that  can  drive  desired  outcomes.  It  should  be  noted  that  one  can  also  be  too  detailed  and  lose  the  aOen0on  of  employees.  As  such,  documents  should  try  to  be  as  clear  as  possible  without  providing  excessive  informa0on.  Part  of  the  solu0on  in  this  case  is  to  understand  your  various  audiences.  Communica0on  should  be  tailored  to  different  groups  based  on  their  experience  and  knowledge  of  company  opera0ons. The Marathon A  Runner’s  Tale  Con/nued... The  marathon  was   the  first  race  of  the  next   day.  Bob  used  some  of   this   1me  to  study   his   compe1tors.   More   importantly   he   worked   on   a   race   strategy.  He   spoke   to  his   coach   and  other  coaches   about  the   best  approach  to  the  race   course.  He   recruited   friends   to   stand   at   every   mile   marker   and   give   him   his   1me   and   those   of   his   compe1tors.  His  friends  recruited  their  friends   and  random  crowd  members   to  fill  the   gaps   and  cheer   whenever  Bob   passed   by.   When  the   gun  went   off   Bob  focused   on   both   strategy   and  execu1on.  The  crowd  cheered   and  his   adrenaline  rushed.  Bob  felt   Frequent  consistent   faster  than  ever. communica)ons   ensure  con)nued   par)cipant  Between  finishing  the  100  yard  dash  in  last  place  and  star0ng  the  marathon  with  extreme   alignment  and  confidence,  Bob  learned  that  beOer  informa0on  leads  to  valuable  insights  that  could  help  him   evolu)on.  Long-­‐perform  at  a  high  level.  However,  now  Bob  is  taking  his  communica0on  to  an  en0rely  new  level.  He   term  incen)ves  does  not  just  want  to  understand  the  complexi0es  of  the  race  and  his  opposi0on  at  the  start;  he   require  long-­‐term  also  wants  to  understand  how  he  is  performing  during  the  race.  This  type  of  informa0on  will  allow   execu)on.him  to  understand  exactly  what  he  needs  to  do  in  order  to  be  successful  as  the  race  progresses.We  also  observe  employees  responding  well  to  this  sort  of  in-­‐game  informa0on,  allowing  them  to  understand  exactly  where  they  stand  on  performance  goals  during  performance  periods.  In  fact,  Aon  HewiO  recently  released  a  new  study  linking  employee  engagement  levels  with  financial  performance.  The  study  found  that  “organiza0ons  with  high  levels  of  engagement  con0nue  to  outperform  the  overall  stock  market  index  and  posted  total  shareholder  returns  22%  higher  than  average  in  2010.”  Furthermore,  companies  with  lower  levels  of  engagement  yielded  TSRs  that  were  28%  lower  than  the  average.  This  even  held  true  during  more  vola0le  financial  0mes.  To  sum  this  
  5. 5. up,  when  employees  are  ac0vely  engaged  in  companies,  the  companies  perform  beOer,  and  the  best  way  to  keep  employees  engaged  is  to  communicate  performance  and  goals  o=en  and  progress  towards  the  desired  outcomes.So  what  are  companies  doing  to  maintain  constant  and  open  streams  of  communica)on  with  employees?Many  companies  have  started  to  improve  their  internal  compensa0on  communica0on.  One  major  technology  company  created  a  series  of  short,  animated  videos  to  explain  the  basics  of  equity  compensa0on.  You’ll  have  to  see  the  videos  to  believe  it,  but  they  make  learning  about  equity  quick,  easy  and  entertaining.  Another  well-­‐  known  technology  company  holds  a  presenta0on  on  annual  performance  awards  at  the  0me  of  grant  for  all  employees  every  year,  going  through  the  plan  specifics  in  detail.  Addi0onally,  this  company  then  calculates  performance  levels  quarterly,  releasing  a  statement  to  employees  to  show  where  they  stand  and  how  much  0me  is  le=  in  the  performance  period.  This  informa0on  is  also  provided  to  the  Compensa0on  CommiOee  to  ensure  appropriate  plan  governance.  The  plan  is  also  reported  in  the  company’s  annual  proxy  filing  to  inform  shareholders  on  the  design  of  execu0ve  awards.Some  companies  have  also  hired  outside  consultants  to  oversee  the  ongoing  communica0on  of  their  performance  plans.  This  includes  company  statements  reminding  employees  of  the  importance  of  achieving  their  performance  goals  and  where  they  stand.  To  this  end,  Radford  has  designed  a  web-­‐based  communica0on  tool  called  PeerTracker.  This  tool,  designed  on  a  company-­‐ Providing  specific  basis,  allows  plan  par0cipants  and  Compensa0on  CommiOee  members  to  view  real-­‐0me   par)cipants  with  informa0on  on  the  company’s  performance  rela0ve  to  their  comparator  group  on  a  daily  basis.   milestones  Similarly,  Performensa0on  also  offers  assistance  with  tracking  data  for  financial  and  opera0onal   throughout  the  goals  and  communica0ng  messages  for  performance  programs.  Whether  the  metric  is  TSR  or  a   performance  cycle  financial  or  opera0onal  measure,  high-­‐performing  companies  use  frequent  and  consistent   allows  them  to  help  communica0on  of  performance  to  reinforce  goals  and  drive  toward  successful  outcomes. understand  the   company’s   performance  and   The Conclusion manage  their  own   A  Runner’s  Tale  Con/nued... success. Bob’s   running  of   the   marathon  went  well.  At   the   first  mile   marker   he   was   right   on   pace.  Every   mile   marker  aQer  that  he  knew  if  he   needed  to  speed  up  or   slow  down,   and  he   knew  where  his   compe1tors   were   and  he  received  water   and  advice   for  the   upcoming   mile.   The   crowd   kept   cheering   and   the   adrenaline   kept   rushing.   As   he   began  the   final  mile   of   the   race   he   looked   ahead  and   saw  his   coach  had   given  the   crowd  a   series   of   signs   telling  him   exactly   what  he   needed   do   in   the   final  mile.   He   read  as  he  ran  and  focused  on  tac1cs  and  the  finish   line.  Bob  didn’t  even  no1ce  as  he   passed  the  runners  in  front  of  him.  All   he  felt  was  the  joy  as  he  finished.  SECOND!  As   it  turns  out,  Bob  was  fast,  but  he  s1ll  had  room  to  be  even  faster  next  1meWith  real-­‐0me  informa0on,  Bob  was  able  to  adjust  his  tac0cs  and  change  his  behavior  to  boost  his  level  of  performance.  The  informa0on  filtered  to  him  through  his  different  communica0on  channels  gave  him  a  compe00ve  advantage  and  the  constant  reminders  of  his  performance  mo0vated  him  through  to  the  finish.Companies  can  give  their  employees  the  same  opportuni0es  Bob  had  by  simply  establishing  effec0ve  communica0on  processes.  It  needs  to  start  at  the  very  beginning,  even  before  you  design  your  plan,  and  follow  through  to  the  conclusion  of  the  performance  period  and  the  final  determina0on  of  final  payouts.  Mul0ple  studies  show  there  is  a  connec0on  between  effec0ve  communica0on  and  company  performance.  The  company  may  not  finish  at  the  very  top  every  0me,  but  they  are  likely  to  have  a  more  engaged  workforce,  mo0vated  to  do  their  best.  This  can  result  in  a  compe00ve  advantage.
  6. 6. PerformensationAbout  the  Authors Contacts:To  contact  the  authors  of  this  ar0cle,  please  write  to  Dan  Walter  at   Dan Walter, President and CEO +1 (415),  Terry  Adamson  at  or  Daniel   dwalter@performensation.comKapinos  at  Dan  is  the  President  and  CEO  of  Performensa0on  and  is  located  in  San  Francisco,  CA.  Terry  is  a  Partner  in  Radford’s  valua0on  prac0ce  and  is  based  in   Mel Jameson, SVP +1 (415) 625-3406Philadelphia,  PA.  Daniel  is  a  Senior  Consultant  in  Radford’s  valua0on  prac0ce  and  is  based  in   mjameson@performensation.comRadnor,  PA.About  Performensa)on Radford Contacts:Since  2006  Performensa0on  has  focused  on  providing  high  performance  compensa0on  plans   Boston Officefor  publicly-­‐traded  and  privately-­‐held  companies.  As  a  recognized  industry  thought  leader,   Ed Speidel, Partnerwe  learn  as  much  as  possible  about  your  company  to  diagnose  the  founda0ons  of  success.   +1 (508) 628-1552We  then  apply  this  knowledge  to  custom-­‐fit  solu0ons.  We  offer  assistance  in  tracking  and   espeidel@radford.commonitoring  complex  performance  metrics  and  collaborate  with  leading  firms  such  as  Radford   Ted Buyniski, Partnerto  ensure  access  to  best  of  class  equity  valua0on  and  TSR  metric  tracking.  Our  plan  design   +1 (508) 628-1553and  communica0on  services  deliver  structure  and  messaging  that  align  your  goals,  culture   tbuyniski@radford.comand  vision  with  holis0c  compensa0on  programs. Rob Surdel, Associate Partner +1 (508) 628-1551About  Radford rsurdel@radford.comRadford  is  the  industry  leader,  providing  advice  and  benchmarking  to  technology  and  life  sciences   Philadelphia Officecompanies  to  address  their  toughest  HR  and  rewards  challenges:  aOrac0ng,  engaging  and  retaining   Terry Adamson, Partnertalent.  Our  advisors  provide  industry-­‐specific  exper0se,  applying  an  analy0cal  approach  that  integrates   +1 (215) 255-1802market  data,  trends  and  our  experience  in  working  with  more  than  2,000  companies  –  from  Global   tadamson@radford.com1000  firms  to  start-­‐ups  –  to  balance  the  needs  of  execu0ves,  employees  and  shareholders.  Our  advice  is  customized  to  a  client’s  unique  situa0on  to  ensure  your  rewards  programs  are  not  just  compe00ve  -­‐   New York Officebut  can  be  a  compe00ve  advantage. Ram Kumar, DirectorRadford’s  uniquely  data-­‐driven  perspec0ve  is  why  more  technology  and  life  sciences  companies,  and   +1 (212) 441-2007their  Board  of  Directors  and  Compensa0on  CommiOee,  trust  Radford  for  compensa0on  data  and  advice   rkumar@radford.comthan  any  other  firm.  Radford  clients  rely  upon  our  global  survey  databases  of  nearly  five  million  incumbents  for  real-­‐0me  insight  on  total  compensa0on  levels,  prac0ces  and  emerging  trends  to  inform   San Diego Officetheir  HR  and  reward  strategies. Ken Wechsler, Director +1 (858) 755-8675Headquartered  in  San  Jose,  CA,  we  have  professionals  in  Bangalore,  Beijing,  Boston,  Brussels,  Chicago,   ken.wechsler@radford.comFrankfurt,  Hong  Kong,  London,  New  York,  Philadelphia,  San  Francisco,  Shanghai  and  Singapore.  Radford  is  an  Aon  HewiO  company.  Visit,  or  for  more  informa0on,  contact   San Francisco Linda E. Amuso, President +1 (415) 486-7255About  Aon  HewiY lamuso@radford.comAon  HewiO  is  the  global  leader  in  human  resource  solu0ons.  The  company  partners  with  organiza0ons   David Knopping, Partnerto  solve  their  most  complex  benefits,  talent  and  related  financial  challenges,  and  improve  business   +1 (415) 486-7122performance.  Aon  HewiO  designs,  implements,  communicates  and  administers  a  wide  range  of  human   dknopping@radford.comcapital,  re0rement,  investment  management,  health  care,  compensa0on  and  talent  management   Jon Burg, Associate Partnerstrategies.  With  more  than  29,000  professionals  in  90  countries,  Aon  HewiO  makes  the  world  a  beOer   +1 (415) 486-7137place  to  work  for  clients  and  their  employees.  For  more  informa0on  on  Aon  HewiO,  please  visit  Aon San Jose Office Brett Harsen, Associate PartnerAon  plc  (NYSE:  AON)  is  the  leading  global  provider  of  risk  management,  insurance  and  reinsurance  brokerage,  and  human  resources  solu0ons  and  outsourcing  services.  Through  its  more  than  61,000   +1 (408) 321-2547colleagues  worldwide,  Aon  unites  to  empower  results  for  clients  in  over  120  countries  via  innova0ve   bharsen@radford.comand  effec0ve  risk  and  people  solu0ons  and  through  industry-­‐leading  global  resources  and  technical  exper0se.  Aon  has  been  named  repeatedly  as  the  worlds  best  broker,  best  insurance  intermediary,   Locationsreinsurance  intermediary,  cap0ves  manager  and  best  employee  benefits  consul0ng  firm  by  mul0ple   Bangalore, Beijing, Boston,industry  sources.  Visit  for  more  informa0on  on  Aon  and Brussels, Chicago, Frankfurt, Hongmanchesterunited  to  learn  about  Aons  global  partnership  and  shirt  sponsorship  with  Manchester   Kong, London,United New York, Philadelphia, San Francisco, Shanghai and Singapore