8th June 2010

2010 AMCHAM Compensation & Benefits Survey

Conducted by Hewitt Associates (Thailand) Ltd

To protect the confidential and proprietary information included in this material, it may not
be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
Agenda

ƒ Summary of 2009 AMCHAM Survey

¾ Summary of Participants
¾ Feedback from Participants

ƒ Launch of 2010 AMCHAM Survey

¾ What the Survey will cover
¾ Survey Process
¾ Timeline
¾ Survey Questionnaire
¾ Sample Deliverables
¾ Additional Offer
ƒ Highlights of Hot Topic Survey (March/April 2010)

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ƒ Summary of 2009 AMCHAM Survey
¾ Summary of Participants
¾ Feedback from Participants

ƒ Launch of 2010 AMCHAM Survey

¾ What the Survey will cover
¾ Survey Process
¾ Timeline
¾ Survey Questionnaire
¾ Sample Deliverables
¾ Additional Offer

ƒ Highlights of Hot Topic Survey (March/April 2010)

3
 Summary of 2009 AMCHAM Survey

Summary of Participants

We had a total of 72 participants from the chamber that participated in the survey. The
tables below summarizes the industry representation and Headcount of Participants:

4
 Summary of 2009 AMCHAM Survey

Feedback from Participants

Overall, we received good feedback from participants for the survey process and the
post-survey presentation:

Please keep
continue this
survey.

Big improvement. Well

done! It’d be nice to
expand again to invite Best practice
other chambers. sharing

Good
survey. Survey format is
Should do it
Better than excellent. I like the
every year.
before. Hewitt format. It would
be ideal to include
other chambers in this
…76% ‘Satisfied’ with annual survey to
broaden the base of
survey process/report and survey participants.
11% ‘Very Satisfied’…
5
ƒ Summary of 2009 AMCHAM Survey
¾ Summary of Participants
¾ Feedback from Participants

ƒ Launch of 2010 AMCHAM Survey

¾ What the Survey will cover
¾ Survey Process
¾ Timeline
¾ Survey Questionnaire
¾ Sample Deliverables
¾ Additional Offer

ƒ Highlights of Hot Topic Survey (March/April 2010)

6
 Launch of 2010 AMCHAM Survey

What the Survey will cover

Compensation New
Analysis by Job Benefit
Positions Bonus Trends Prevalence by
(33 benchmark Job Levels Compensation
positions)
Analysis by *
• Revenue Size
• Headcount
Compensation • Industry
Salary Increase Turnover
Analysis by Job
Trends Analysis
Levels

* Can only be done if there is

sufficient data for each
category.

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 Launch of 2010 AMCHAM Survey

What the Survey will cover – 33 Benchmarking Positions

Job Levels

Note : Hewitt will provide Job Descriptions for the job positions to be used for matching of your
internal jobs.
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 Launch of 2010 AMCHAM Survey

What the Survey will cover – Compensation Components

ƒ For each position, the following compensation component will be analyzed

1.
1. Base
Base Salary
Salary - Annual Base Salary

2.
2. Guaranteed
Guaranteed Bonus
Bonus - Fixed Bonus

3.
3. Cash
Cash Allowances
Allowances - Cash Allowances

4.
4. Guaranteed
Guaranteed Pay
Pay (1+2+3)
(1+2+3)
- Variable Bonus Actual Payouts
5.
5. Variable
Variable Pay
Pay and Target Payout
- Commission

6.
6. Total
Total Compensation
Compensation (4+5)
(4+5)

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 Launch of 2010 AMCHAM Survey

Survey Process

Data
Data Data
Data Report
Report
Collection
Collection Analysis
Analysis Delivery
Delivery

Distribution
Distributionof
of Data
Data Report
Report
Questionnaire
Questionnaire Treatment
Treatment Generation
Generation

Data
DataCollection
Collection Data
Data Report
Report
&&Entry
Entry Analysis
Analysis Submission
Submission

Data
DataClarification
Clarification Preliminary
Preliminary Post
PostSurvey
Survey
&&Validation
Validation Analysis
Analysis Presentation
Presentation

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 Launch of 2010 AMCHAM Survey

Timeline

ƒ The entire survey process is expected to be completed with the survey

presentation in the mid of September.
June July August September
Week 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Survey Launch

Distribute Questionnaire

Survey Confirmation

Data Collection

Data Clarification & Validation

Data Analysis

Reporting

Post Survey Presentation

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 Launch of 2010 AMCHAM Survey

Survey Questionnaire – Overall

ƒ The survey will be conducted in excel (similar to 2009).

‰ Questionnaire will be mailed out by Amcham to all members
‰ Completed questionnaire will be mailed directly back to Hewitt

ƒ Questionnaire consist of 3 sections (to be completed)

‰ Company Profile
‰ Positional Data
‰ Benefits

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 Launch of 2010 AMCHAM Survey

Survey Questionnaire – Company Profile Questionnaire

ƒ Covers the following

9 Company Details
9 Contact Details
9 Employee Demographics
9 HR to Employee ratio
9 Historical Turnover
9 Salary Increase Timing
9 Salary Increase – Actual & Projected
9 Variable / Performance Bonus – Actual & Projected
9 Employee Performance Distribution
9 Identification of High Performers

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 Launch of 2010 AMCHAM Survey

Survey Questionnaire – Positional Data Questionnaire

ƒ Covers all compensation components by Job Position

9 Annual Base Salary (THB)
9 Annual Fixed/Guaranteed Bonus (THB)
9 Annual Allowances
¾ Transportation ¾ Shift
¾ Car Allowance ¾ Positional
¾ Meal Allowance ¾ Phone/Mobile
¾ Entertainment ¾ Other Cash Allowances
¾ Housing

9 Annual Variable/Performance Bonus

¾ Eligibility
¾ Actual received for last financial year
¾ Target for current financial year (in % of Annual Base Salary)

9 Annual Commissions/Sales Incentive

¾ Eligibility?
¾ Actual received for last financial year (THB)
¾ Target for current financial year (in % of Annual Base Salary)
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 Launch of 2010 AMCHAM Survey

Survey Questionnaire – Benefits Questionnaire

ƒ Covers the prevalence of the following Benefits by Job Level

9 Retirement Plan
9 Medical - Outpatient
9 Medical - Inpatient (H&S)
9 Dental
9 Optical
9 Maternity
9 Life Insurance
9 AD&D
9 Housing Loan
9 Car Loan
9 Other Loans
9 Long Service Award
9 Company Car / Car Allowance
9 Club Memberships
9 Long Term Incentive

ƒ Provident Fund contribution rates

ƒ Provident Fund – Employee Choice practices
ƒ Benefits spending (as a % of Base
15 Salary) by Job Level
 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Base Salary Analysis By Position

ƒ Overview of market trends and economy

ƒ To provide statistics of participating
companies by
‰ Industry representation
‰ Ownership (country of origin)
‰ Number of employees

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Base Salary Analysis By Position

ƒ For each Job Position (33 jobs), the Median Annual Base Salary will be
provided Managing
Director/Chief
Executive Officer
3,879,996
Management

Head of Head of
Head of Finance Head of Human Head of Head of Legal Head of Internal
Head of Sales
Top

Information Manufacturing
/ CFO Resource Marketing Affairs Audit
Technology Operations
2,704,956 2,100,000 2,260,764 1,983,312 2,341,860 3,012,000 1,977,960 2,371,578
Management

Accounting/ Human
Marketing Internal Audit
Financial Resource Sales Manager IT Manager Legal Manager Plant Manager
Manager Manager
Manager Manager
1,228,200 1,036,779 1,631,100 1,060,608 1,332,000 1,280,280 1,248,366 1,123,518
Professional
/ Executive

Accounting/ Human Sales

Marketing IT Consultant / Legal Advisor / Internal Auditor / Production Line
Finance Resource Representative /
Executive Executive Executive Executive Manager
Executive Executive Executive
467,190 491,838 487,920 448,509 516,000 449,400 562,173 682,715
/ Support

Sales
General

Marketing Production
Staff

Secretary Administrative
Assistant Foreman
Assistant
413,400 263,820 204,060 300,000
Worker

Production
Receptionist Driver Messenger
Worker

180,000 164,087 160,612 132,306

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Compensation Analysis By Job Level (Median)

ƒ For each Job Level, median value of each compensation component

will be provided
Top Professional / General Staff /
Management Worker
Management Executive Support
ANNUAL BASE SALARY 2,395,800 1,200,000 507,264 308,933 159,900
Fixed Bonus 189,354 110,932 48,812 26,924 14,102
Cash Allowances 174,000 72,000 24,000 24,000 7,800
TOTAL GUARANTEED PAY 2,596,920 1,377,000 585,000 352,110 176,719
Actual Variable Pay 359,685 174,781 73,305 40,760 17,083
TOTAL CASH 2,867,148 1,518,255 646,307 388,042 189,920

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Compensation Analysis By Job Level

ƒ For each Job Level, the Lower Quartile, Median, Upper Quartile and
Average value of each compensation component will be provided

Professional / Executive

Lower Quartile Median Upper Quartile Average

ANNUAL BASE SALARY 365,014 507,264 695,561 567,074
Fixed Bonus 36,123 48,812 72,853 65,843
Cash Allowances 12,000 24,000 72,600 93,849
TOTAL GUARANTEED PAY 398,479 585,000 793,867 648,007
Actual Variable Pay 41,232 73,305 128,734 108,599
TOTAL CASH 465,698 646,307 898,991 727,394

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Analysis of Bonus By Job Level

ƒ Bonus prevalence and practices is analyzed by Level.

Prevalence of Bonus and Allowance Entitlement

100%
87%
90%
79% 76%
80% 73%
68% 69%
70% 62% 62% 62% 64% 60%
60% 56%

50% 43% 44% 44%

40%
30%
20%
10%
0%
Fixed Bonus Variable Bonus Eligibility Cash Allowances

Top Management Management Professional / Executive General Staff / Support Worker

Variable Bonus - Eligibility and Actual Paid Variable Bonus - Target % and Actual Paid (Median Levels)

100% 20%
87%
90% 17%
79%
80% 76% 15%
73%
69% 68% 15%
70% 67% 66% 13%
% of Employees

% of Employees
12% 13%
60% 58% 12% 12%
60%
10% 10%
50% 10%
8%
40%
30%
5%
20%
10%
0% 0%
Top Management Management Professional / General Staff / Support Worker Top Management Management Professional / General Staff / Support Worker
Executive Executive
Var. Bonus Eligibility Actual % of Employee who received Var. Bonus Median Target Variable Bonus Actual Amount Paid for last year

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Salary Increase Analysis by Industry & Job Level

ƒ Actual Increase
Lower Upper
Level Quartile Median Quartile Average
Top Management 0.0% 4.0% 5.0% 3.1%
Management 0.0% 5.0% 5.6% 4.0%
Professional Staff / Executives 0.4% 5.0% 6.1% 4.2%
General Staff / Support 0.1% 5.0% 6.0% 4.3%
Workers 2.4% 5.0% 5.9% 4.4%
Overall 3.0% 4.9% 5.6% 4.3%

ƒ Projected Increase
Lower Upper
Level Quartile Median Quartile Average
Top Management 0.0% 4.0% 5.5% 3.5%
Management 2.8% 5.0% 6.0% 4.1%
Professional Staff / Executives 3.0% 5.0% 6.0% 4.2%
General Staff / Support 3.0% 5.0% 6.0% 4.3%
Workers 3.0% 4.7% 6.0% 4.2%
Overall 3.0% 5.0% 6.0% 4.3%

Note : Breakdown by industry will also be provided for industries with sufficient number of participants

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Salary Increase Cycle

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Turnover Analysis by Job Level & Industry

Lower Upper
Level Quartile Median Quartile Average
Top Management 0.0% 0.0% 11.7% 7.5%
Management 0.0% 7.1% 13.7% 11.7%
Professional Staff / Executives 2.8% 10.3% 14.5% 11.8%
General Staff / Support 3.6% 10.5% 15.4% 14.1%
Workers 3.0% 10.1% 26.0% 17.9%
Overall 5.5% 11.3% 19.6% 15.1%

Median Turnover by Industry

Hospitality / Retail 32%

Manufacturing 21%

Computers / Information Technology 19%

Food/Beverage/Tobacco 19%

Professional Services 13%

Transportation Services / Logistics 12%

Banking / Finance / Insurance 11%

Automotive 11%

Electrical/Electronics 9%

Chemicals 7%

0% 5% 10% 15% 20% 25% 30% 35%

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Benefits Prevalence by Job Level

Top Professional / General Staff /

Management Worker
Management Executive Support
Benefits
Retirement Plan 88% 86% 83% 83% 83%
Outpatient- Employee 92% 92% 89% 86% 86%
Outpatient- Dependants 50% 47% 42% 39% 36%
Inpatient - Employee 93% 93% 92% 92% 89%
Inpatient - Dependants 51% 50% 44% 40% 38%
Dental 58% 57% 57% 54% 50%
Optical 15% 15% 14% 14% 13%
Life Insurance 88% 86% 85% 85% 83%
AD&D 61% 61% 60% 60% 60%
Long Service Award 65% 65% 65% 65% 63%
Housing Loan 10% 10% 10% 10% 10%
Car Loan 6% 6% 6% 4% 4%
Other Loans 17% 17% 17% 17% 17%

Perquisites
Company Car / Car Allowance 75% 43% 17% 0% 0%
Club Memberships 22% 11% 4% 0% 0%

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Provident Fund Analysis

ƒ Flat Contribution Rate

ƒ Tiered Contribution Rate

Employer Tiered Contribution Rates

12%
Lower Quartile
Employer Contribution %

10% Median
Upper Quartile
8%

6%

4%

2%

0%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year >10

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Benefits Spending

ƒ Analysis of Benefits spending as a % of Base Salary

Benefits Spending as a % of Base Salary (Median figures)
35%

30%

25%

20%

15% 30% 30%

22% 27%
10% 17%
20%

5%

0%
Top Management Management Professional Staff / General Staff / Workers All Employees
Executives Support

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Long Term Incentive (LTI)

Eligibility of LTI Plans by Level

45%

40% Selected Employees in Level

35%
All Employees in Level
30% 20.8%
25%

20%
9.7%
15%
5.6% 1.4% 1.4%
10% 19.4%
13.9%
5% 8.3% 8.3% 8.3%
0%
Top Management Management Professional Staff / General Staff / Workers
Executives Support

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 Launch of 2010 AMCHAM Survey
Deliverable (Standard Report)
- Other Analysis

ƒ HR to Employee Ratio

ƒ Performance Distribution

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 Launch of 2010 AMCHAM Survey

Additional Offer – Overview

ƒ To provide compensation analysis in more

detail
ƒ There are 2 options
‰ Comprehensive Report
‰ Custom Report

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 Launch of 2010 AMCHAM Survey

Additional Offer – Comprehensive Report

ƒ The comprehensive report will provide more detailed compensation

analysis
‰ Analysis by Position
9 In addition to Base Salary, all compensation components will be provided
(i.e fixed bonus, allowance, variable bonus etc)
9 In additional to Median results, the P25 and P75 results will also be
provided.

Report Price : Baht 17,500

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 Launch of 2010 AMCHAM Survey

Additional Offer – Custom Report

ƒ This option allows companies to select their own comparator

companies from all participating companies.
ƒ Criteria to select own comparator companies can be:
ƒ Industry
ƒ Revenue size
ƒ Employee headcount

ƒ For particular criteria, a comparator group must consist of at least 8

companies
ƒ Report format will be similar to Comprehensive Report

Report Price : Baht 28,000

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ƒ Summary of 2009 AMCHAM Survey
¾ Summary of Participants
¾ Feedback from Participants

ƒ Launch of 2010 AMCHAM Survey

¾ What the Survey will cover
¾ Survey Process
¾ Timeline
¾ Survey Questionnaire
¾ Sample Deliverables
¾ Additional Offer

ƒ Highlights of Hot Topic Survey (March/April 2010)

32
 Hewitt Hot Topic Survey
- Attrition and Retention
Background of Survey

ƒ Survey conducted by Hewitt Associates in March/April 2010

ƒ 265 companies participated in the survey across South East Asia
(Indonesia, Malaysia, Philippines, Singapore and Thailand)

33
 Hewitt Hot Topic Survey
Key Findings - Attrition and Retention
- Business Outlook
Business Situation in 2008/2009

50%

Percentage of Companies
40%

30%

20%

10%

0%
Significant Decline Slight Decline Business As Usual Slight Improvement Significant
Improvement

Indonesia Malaysia Philippines Singapore Thailand

Business Outlook for 2010

70%
Percentage of Companies

60%
50%
40%
30%
20%
10%
0%
Significantly Declining Slightly Declining Stabilizing Slightly Improving Significantly
Improving

Indonesia Malaysia Philippines Singapore Thailand

34
 Hewitt Hot Topic Survey
Key Findings - Attrition and Retention
- Projected Salary Increase

Indonesia Malaysia Philippines Singapore Thailand

Percentile 25 8.0% 4.5% 6.0% 3.0% 5.0%
Median 8.7% 5.0% 7.0% 3.4% 5.0%
Percentile 75 9.7% 6.0% 8.0% 4.0% 6.0%
Average 8.9% 5.4% 7.1% 3.6% 5.4%

35
 Hewitt Hot Topic Survey
Key Findings - Attrition and Retention
- Voluntary Attrition Rate
Voluntary Attrition By Level in 2009
16%
16% 14% 14%

Percentage of Employees
14% 13% 12% 12%
12% 12% 12%
12% 11%
10%
10% 10%
10%
10% 9%
9% 9%
7%
7% 7%
8% 7% 7% 7%
6%
6% 5% 5% 5% 5%
4% 3%
2% 1%
0%
Top Executive Senior Middle Professional Clerical / Admin Manual Workforce
Management Management Support

Indonesia Malaysia Philippines Singapore Thailand

Overall Voluntary Attrition in 2009

16%
14.3%
14%
Percentage of Employees

11.6%
12%
9.6% 9.4%
10%
8.1%
8%

6%

4%

2%

0%
Indonesia Malaysia Philippines Singapore Thailand

36
 Hewitt Hot Topic Survey
Key Findings - Attrition and Retention
- Job Functions with the Highest Attrition

Top 3 Job Functions with highest Voluntary Attrition in 2009

Percentage of Companies
0% 10% 20% 30% 40% 50% 60% 70%

Sales, 56%
Indonesia Admin, 25%
Finance, 25%

Sales, 31%
Malaysia Finance, 29%
Engineering, 23%

Sales, 42%
Philippines Finance, 39%
Call Center, 35%

Sales, 40%
Singapore Finance, 37%
Technical Support, 17%

Sales, 45%
Thailand Production, 30%
Finance, 26%

37
 Thank You
&
We Look Forward To Partnering You…
For further details, please contact :
• Surendran Ramanathan | surendran.ramanathan@hewitt.com
• Preeya Singhnarula | preeya.singhnarula@hewitt.com
• Ravjit Singhthavekhoon | ravjit.singhthavekhoon@hewitt.com
• Supakorn Nittayanantha | supakorn.nittayanantha@hewitt.com
• Animesh Mukherjee | animesh.mukherjee.2@hewitt.com
38