This document summarizes Wachovia Bank's implementation of an enterprise incentive management (EIM) solution using Callidus TrueComp Manager software between 2001-2007. It overviews the timeline and challenges of integrating the software after mergers and acquisitions, and describes how over 36,000 employees across various business units now use it for sales compensation and rewards. Implementation teams from Wachovia and Callidus took on roles like requirements mapping, software configuration, testing, training and knowledge transfer.

1. Enterprise Incentive Management: Building the Foundation of the New Wachovia Terry Gilbert Wachovia Kathleen Khirallah TowerGroup © 2006 The Tower Group, Inc. May not be reproduced by any means without express permission. All rights reserved.

3. Enterprise Incentive Management in Banking

5. Timeline for Incentive Compensation in North American Banks Banks react to regulatory changes and increased competition with proactive sales efforts. 1975 Banks begin talking about developing a “sales culture.” Proprietary systems to support EIM. 1985 Banks increasingly frustrated with proprietary technology for EIM. 1995 Incentive compensation solutions begin to emerge; additional technologies to support sales processes. 2005 Banks’ focus on organic growth revitalizes sales cultures. Migration to packaged EIM accelerates. Source: TowerGroup

6. EIM: Bringing Sales Methods and Management Skills Together Source: TowerGroup Sales Methodology EIM Technology Management Skills Set sales goals Hire employees capable of selling Develop desirable products to sell Prepare sales staff to sell Enable selling through sales and service incentives Measure sales performance Ensure service quality meets desired standards Encourage product marketing Reward sales & service staff Measure service performance

7. Over Time, Technology Support for EIM Becomes Essential Time Level of Complexity Source: TowerGroup Early Mature Simple Complex PAYEES NUMBERS OF INPUTS NUMBERS OF PLANS

8. Wachovia Case Study

9. Merger of First Union Corp. and the former Wachovia Corp. 2001 Signing of contract with Callidus Software 2002 Acquisition of SouthTrust Corp. 2003 Acquisition of Golden West Financial Corp. 2005 Implementation Timeline of EIM Solution at Wachovia Bank (2001–07) Source: Wachovia Bank, TowerGroup 2004 2006 2007 Launch of Callidus TrueComp Manager in parallel with existing systems Disengagement of proprietary compensation calculation system (Nomad) Start of EIM project exploration Kickoff of EIM project Note: EIM = enterprise incentive management.

10. Wachovia Business Units Using Callidus TrueComp Manager for EIM (n = 36,750) Source: Wachovia Bank, TowerGroup 60 First Place Recruiting 600 Cash Operations 4,500 World Mortgage 1,500 Legacy Mortgage 595 Retail Credit 300 Private Bank 250 Small Business Bank 29,000 Retail Bank Number of Payees Wachovia Business Unit

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