2011Compensation_withoutAudio20110517

8/12/2019 2011Compensation_withoutAudio20110517

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2011 IBM Corporation

IBM

IBMs Cash Compensation

Program

May 17, 2011


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2011 IBM CorporationIBM Compensation

Agenda

Total Cash Compensation

IBM Compensation Strategy

Market Assessment

Banding !o" #amilies

IBM Classi$i%ation Pro%ess

Personal B&siness Commitments 'PBC( )ating S%ale

Salary In%rease *ri+ers

ligi"ility $or Market-Based Ad.&stments TopContri"&tor A/ards

eographi% Pay *i$$erentials ro/th *ri+en Pro$it-Sharing

Compensation Time Ta"le

Closing Comments


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hat is Total Cash

AdditionalAdditionalBase PayBase Pay

TotalTotal

CashCash

*Determined by business results and performance rating

Your salary, asdefined by your"andand.o"

$amily

Growth Driven Profit-SharingProgram or !n"entive Plan#not both$% re"ognition&rograms, and other"om&ensation as a&&li"able


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Compensation Strategy

Differentiating &ay by distributing the right dollars to theright &eo&le is essential to attra"ting, motivating, retaining,and rewarding to& "ontributors who hel& !B' remain"om&etitive in the mar(et&la"e)

*hy is that an im&ortant strategy for !B'+

)etain %riti%al skills

Pay employees %ompetiti+elyPay $or per$orman%e

Strongly di$$erentiate


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Compensation Market Assessment

ow does !B' ensure a "om&etitive "om&ensation strategy+

Create job

descriptions based

on responsibilities

and compare with

our competitors

job descriptions

Assess our

competitive position

in the marketplace

and develop

compensation

strategy

Conduct

confidential

surveys and third-

party

data analysis

Compare viaCompare via

surveyssurveys

Define jobDefine job

rolesroles

Assess &Assess &

refinerefine

Ben%hmarkingBen%hmarking


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Market S&r+ey Company Sampling

SSsTe"hni"alServi"es

!.T S&e"ialists/0A, , C',Pro")

Software1ngineers

A""enture A""enture A""enture Avaya B'C Software

ACS Avaya ACS ACS Cis"o Systems

ADP Ca&gemini Ca&gemini Convergys 'i"rosoft

CSC Cogni2ant Dell CSC 3ovell

Deloitte Convergys P DellParametri"Te"hnologyCor&oration

1'C CSC 'i"rosoft 1'CProgressSoftware

P Dell 4ra"le P ed at

'i"rosoft P SA!C !ntel SA!C

SA!C 4ra"le SAP 'i"rosoft The 'athwor(s

!B'5s business "rosses many segments in the mar(et&la"e Com&etitive analysis is "om&leted for all !B' 6ob families *e Sam&le only of 6obs, 6ob families and (ey "om&etitors


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Banding 3 !o" #amily Pro%ess

7) Pla"e intransition "odeswhile datagathering

8) 9nderstand:ob 0 S(ill

e;uirements



IBM Classi$i%ation Pro%ess

Generi" &osition des"ri&tions are used and available forevery &osition

:ob /amily is asso"iated with ea"h &osition and used todefine mar(et value

:ob Band is determined by 6ob duties and res&onsibilities,and is determined by@ S(ills e;uired to meet re;uirements of the &osition Contribution.eadershi& e;uirements S"o&e of 6ob and !m&a"t on the business

During the "lassifi"ation &ro"ess, some 6obs may bere"lassified from eem&t to non-eem&t and be"ome eligiblefor overtime - with"orres&onding effe"ts on salary



IBM Compensation Bands

3on-1e"utive Stru"ture

Salary range for band

Prod

u"tion

Su&&o

rtServi"es

Te"hni"ian

Professional

'anagem

ent 10

1

%on&e'empt

Bands

$

#

"*

!*

2

3

4

Pay

('empt

Bands

*)ybrid bands ! "

for some +ob

families non&e'empt



'inC 'a Band Pay ange

:ob family &ay ranges are based on"onfidential, third &arty resear"hinvolving@Analysis of similar 6obs by industry 0 Geogra&hyCom&arison to s&e"ifi" "om&etitors 0 'ar(etsBen"hmar(s vary by :ob /amily 0 Country

:ob /amily < ange

Mar,et -eference .oint

:ob /amily 8 ange


:ob /amily 7 ange


Bands and !o" #amilies

!B' bands in"lude salary ranges for many ty&es of 6obs

:obs that share similar fun"tions of s(ills are grou&ed into E6ob familiesF Salary ranges by 6ob family vary within a given band



PBC ating S"ale

atings Definition Des"ri&tion

PBC 7Among the to&"ontributors thisyear

A"hieves e"e&tional results as a 7 &erformer, "learly standsout from the rest% and is a role model for !B' alues)

PBC 8 HAbove AverageContributor

Goes above and beyond 6ob res&onsibilities, out&erformsmost &eers, and finds ways to grow s"o&e and im&a"t)

PBC 8Solid Contributor

Consistently meets 6ob res&onsibilities, is reliable in doing6ob) Demonstrates a&&ro&riate level of (nowledge, s(ill,effe"tiveness and initiative)

PBC

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