Report TComp IT2011 Resumo

TOTAL COMPENSATION
HI-TECH / TELECOMMUNICATIONS
January 2012
SUMMARY REPORT
INDEX
1. Purpose.....................................................................................................................2
2. Methodology and Concepts .......................................................................................6

• 2.1. METHODOLOGY ..............................................................................................6
• 2.2. COMPENSATION CONCEPTS ............................................................................6
• 2.3. STATISTICAL CONCEPTS .................................................................................9
• 2.4. BENEFIT POLICIES AND PRINCIPLES OF VALUATION...........................................9
• 2.4.1. Mandatory Social Benefits .......................................................................10
• 2.4.2. Non Mandatory Social Benefits................................................................14
• 2.4.3. Benefits to which are applied fiscal benefits from CIRC 40th Article.........15
• 2.4.4. Social Benefits to which are not applied fiscal benefits ............................18
• 2.4.5. Other Benefits..........................................................................................18
• 2.5. GROSS-UP ...................................................................................................19
• 2.6. MERCER INTERNATIONAL POSITION EVALUATION SYSTEM ...............................19
• 2.7. ORGANIZATION CHART ..................................................................................21
3. Participant Profile ....................................................................................................29

• 3.1. ORGANIZATION TYPE ....................................................................................30
• 3.2. ORGANIZATION TYPE BY TOTAL EMPLOYMENT ................................................31
• 3.3. ORGANIZATION TYPE BY ANNUAL GROSS REVENUE / SALES ...........................31
• 3.4. EMPLOYEE’S CHARACTERIZATION ..................................................................32
4. Salary Increase .......................................................................................................37

• 4.1. ECONOMIC ENVIRONMENT AND TRENDS.........................................................37
• 4.2. SALARY REVIEW ...........................................................................................42
• 4.3. REASON OF INCREASE ..................................................................................42
• 4.4. HIRING INTENTIONS ......................................................................................43
5. Market Analysis of Total Compensation by Position Title.........................................45
6. Market Analysis of Total Compensation by Position Class.......................................53

• 6.1. ANNUAL BASE SALARY REGRESSION TREND-LINE ..........................................53
• 6.2. ANNUAL GUARANTEED CASH REGRESSION TREND-LINE .................................55
• 6.3. ANNUAL TOTAL CASH REGRESSION TREND-LINE ............................................57
• 6.4. TOTAL COMPENSATION REGRESSION TREND-LINE..........................................59
7. Short & Long Term Incentives .................................................................................62

• 7.1. SHORT TERM INCENTIVES .............................................................................62
• 7.1.1. Variable Pay (Bonus) ...............................................................................62
• 7.1.2. SaIes Incentives ......................................................................................64
• 7.1.3. Profit Sharing ...........................................................................................66
• 7.2. LONG TERM INCENTIVES ...............................................................................66
MERCER i
Total Compensation – Hi-Tech / Telecommunications 2011
• 7.2.1. Share Options..........................................................................................67
• 7.2.2. Share Plans .............................................................................................67
8. Benefits Prevalence.................................................................................................69
• 8.1. SICK PAY .....................................................................................................69
• 8.2. MEDICAL PLAN .............................................................................................70
• 8.3. PERSONAL ACCIDENT INSURANCE .................................................................72
• 8.4. LIFE ASSURANCE ..........................................................................................73
• 8.5. RETIREMENT PLAN .......................................................................................74
• 8.6. HOLIDAYS ....................................................................................................77
• 8.7. SUBSCRIPTIONS ...........................................................................................78
• 8.8. EDUCATION ..................................................................................................78
• 8.9. MOBILE PHONE.............................................................................................78
• 8.10. DISCOUNTS ON COMPANY PRODUCTS..........................................................79
• 8.11. BENEFITS IN CASE OF WORK REDUNDANCY .................................................79
• 8.12. MEALS .......................................................................................................79
• 8.13. LOANS / ADVANCE PAYMENTS .....................................................................80
• 8.14. COMPANY CAR ...........................................................................................81
• 8.15. OTHER BENEFITS........................................................................................85
• 8.16. BENEFITS COMPARISON ..............................................................................86
9. Glossary ..................................................................................................................88
• 9.1. STATISTICS ..................................................................................................88
• 9.2. AGGREGATE COMPENSATION VALUES............................................................88
• 9.3. COMPENSATION ITEMS ..................................................................................89
MERCER ii
1 Purpose
MERCER 1
1
Purpose
This report was carefully produced by Mercer, which is responsible for the collection and
analysis of all salary data and benefits.
The way it has been conducted allows it to serve as a powerful management tool that correlates
every aspect of a company compensation policy, through a Total Compensation approach.
This concept is defined by the quantification of the entire compensation package, in aspects
such as cash or benefits. In this way, we present three compensation components: Annual
Guaranteed Cash, Total Cash and Total Compensation, for all the functions (please refer to 2.2.
– Compensation Concepts).
The study will focus in three different analyses:
a) Analysis by Position Title, which responds to companies needs when facing specific
scenarios on the labour market, more precisely with information that allows answering to the
pressure placed over key functions within an organization. It consists in statistical analysis of
compensation package in the reference market. The market values will be presented
component by component.
b) Analysis by Position Class, statistical analysis by functional content, developed through

the application of the International Position Evaluation System from Mercer (Please see 2.7).
This system allows a better management of the compensation policies, guaranteeing that
every organization can be compared with different companies and organizational levels, in a
homogeny and uniform manner, for every position. On the other hand, and because of the
system’s universality, it allows comparisons with every country in the world, guaranteeing
that we are comparing positions with the same responsibility levels.
MERCER 2
c) Qualitative Analysis of Benefits, where we will analyse and present the main benefits,
eligibility, grants, covers and ways of attribution of the participant companies, such as
Medical Plan, Life Insurance, Retirement Plan, Company Car and others.
For the analysis above described, there have been analysed around 17.000 employee’s data, in
47 companies from the Hi-Tech / Telecommunications Sector present in the Portuguese Market.
REPORT STRUCTURE
This report is organized in the following way:
Participant Profile
Characterization of the participant companies’ profile, by number of employees and Sales
Revenue, as well as the characterization of the sector employees by gender, age, seniority,
and academic background.
Salary Increases
Presentation of main Portuguese economic indicators and market trends. It will be also
analysed Hi-Tech sector trends, related to Salary Reviews, Handicaps for Salary Increases,
Salary Increases 2011 / 2012 and Labour Expectations
Hi-Tech / Telecommunications Total Compensation Analysis by Position Title

Corresponds to a more detailed analysis of the report, containing quantitative information on
the compensation components, in gross annual values, to main positions on the Hi-Tech /
Telecommunications sector. The statistical measures used were: 25th and 75th Percentiles,
Median and Average (Please see 2.3). The Job Matching is done by job descriptions and by
position classes from the Job Evaluation made by Mercer. In each table, you will find the
detailed composition of the compensation package, including Bonus and the benefits
quantification.
Hi-Tech / Telecommunications Total Compensation Analysis by Position Class

Detailed analysis of the compensation levels of all the positions subjected to the International
Position Evaluation System (IPE) from Mercer. Through a regression analysis it was
established the 10th, 25th, 75th and 90th percentiles and Median (Please see 2.3). This
analysis allows a correct vision of the market as a whole and represents a great
management tool for the definition of compensation package, based on the position levels.
MERCER 3
Short & Long Term Incentives
In this topic are evaluated Short and Long Term Incentives provided by the participant
companies to their employees.
Benefits Prevalence
Presentation of the main benefits practices from the participant companies in this survey. For
benefits such as Retirement Plan, Life Assurance, Personal Accident Insurance, Medical
Plan, Company Car Policy, Holidays, Subscriptions, Mobile Phone, and others, it will be
determined eligibility, coverings and forms of attribution.
MERCER 4
2 Methodology
and Concepts
MERCER 5
2
Methodology and Concepts
All the Compensation & Benefits data included in this survey was collected by a team of
specialist consultants through direct interviews in the participant companies. The Expatriate
information was not included in this study, except when related with the local levels of
compensation.
2.1. METHODOLOGY
1. Direct Interviews Direct collection of all the relevant Data to the Study;
2. Job Descriptions Elaboration of Job Descriptions, based in Mission and

main responsibilities of each Job. Elaborated with basis
in hierarchical charts and economic and financial
indicators (e.g., Gross Revenue / Sales);
3. Currency Salary Data in Euros, annual gross and when net

submitted to Gross-up;
4. Job Matching Accomplished with Human Resources elements, with

Jobs being submitted to the Mercer Position Evaluation
System whose factors are:
Responsibilities Dimension (Organization Impact

and Supervision);
Responsibility Level (Responsibility and Interaction

Area);
Job Complexity (Qualification, Problem Resolution

and Working Conditions).
2.2. COMPENSATION CONCEPTS
MERCER 6
The salary data analysed in this study, concerns the month of August 2011 and is represented in
euros, gross.
The Analysis was made based in the following compensation concepts:
COMPENSATION CONCEPTS
CO M P5 – T O T AL CO M PE NS ATIO N
COMP4 – TOTAL CASH (Real) + LONG TERM INCENTIVES

COMP3 – TOTAL CASH (Real / Target)
Sum of Annual
COMP2 – ANNUAL GUARANTEED Sum of Annual Guaranteed Sum of all the above
Guaranteed Cash with Cash with components,
CASH variable payment that the Variable concerning Annual
Fixed compensation employee may potential Payment Guaranteed Cash,
received by the receive for his individual (bonus and Total Cash and
COMP1 – ANNUAL jobholder throughout performance and others quantified Benefits. It
BASE SALARY the year in a number company results. allowances) represents the Total
of monthly payments that the Compensation
Fixed remuneration (usually 14 times) employee package associated to
received during the and other fixed receives for his the job.
year, in the form of payments such as individual
monthly payments. seniority rewards, performance
meal allowance and and company
other fixed results.
allowances.
SALARY DEFINITIONS
Job Definition
MUPC, Definition and Job Description
Position Class
Responsibility level according with Mercer’s International Position Evaluation System.
Companies and Observations

Number of Companies and incumbents in each Job position.
Academic Level
Academic Level from Job holders.
BENEFITS
MERCER 7
Benefits quantification related to medical plan, insurance life, personal accident, retirement plan,
car, fuel, extra holidays, education, children’s education and other benefits.
Retirement Plan
Annual value of pension plan (contribution or defined benefit) for each employee supported
by company.
Medical Plan
Annual value for each employee regarding medical assistance plan valid in company.
Life Insurance
Annual value related with life insurance for each employee according characteristics
supported by company during the year.
Car
Annual value for company car and other related expenses like insurance or maintenance.
Fuel
Annual value of fuel for each title holder of function for any used (business or personnel use).
Extra Holidays
Annual value paid by the company for each day of extra holiday (in addition to legal
prescribed) for employee.
Education
Company contribution or value given to employee for self education.
Children’s Education
Annual grant for each employee for children education.
Other Benefits
Annual value for the company with other benefits for each employee for example Christmas
hamper, company products, and technical books.
MERCER 8
2.3. STATISTICAL CONCEPTS
Market values are presented according to the following statistical lines:
P25 25th Percentile – Value which 25% of the sample is below and 75% above;
Md Median – Value from which 50% of the sample is below and 50% above;
Average – Average of the values included in the sample;
P75
75th Percentile – Value which 75% of the sample is below and 25% above.
2.4. BENEFIT POLICIES AND PRINCIPLES OF VALUATION
Benefits are more and more understood by companies as a differentiating component of the total
compensation package. For this reason, remuneration and career policies lack a bigger co-
ordination with benefits programs, in order to respond to the diversity of employee profiles and
business specificities.
In this perspective we can watch the flexibilization of programs, that in the past were thought in
one size logic, to allow the adaptation of the benefits granted by the company to the needs of
each employee, as for example, the attribution of benefits that allow a more balanced relation
between personal life and work, the employees health and welfare promotion and contributes for
their development.
In Portugal, for instance, there are companies that give the employee the possibility to choose
between several health plans, capital in life assurance case; others allow the employee to select
the retirement plan according to the risk profile and rentability.
There is still no strong tendency of flexible programs with a wide scope of plans for the
employee to choose. However, these pioneer companies are in the best position for a
progressive implementation of this concept, as a way of bear a unique worthy proposal in terms
of employer branding.
MERCER 9
The monitoring of the investments in benefits is an essential practice in human resources
management. The costs control imposed by the administration and shareholders, the necessity
of employee satisfaction, the difficulty in attracting new talents and the resultant synergies of an
integrated management, are factors that need a constant optimization of the programs value,
namely between drawing, cost, quality perception and delivery capacity of several providers.
The internal marketing of the total compensation package has gaining relevance while strategic
tool. One of the best ways of increasing the employee recognition and valuable perception
relatively to the investment the companies do in their behalf, is the personalized communication,
using messages and ways that not only reinforce brand and values, as also treat the employee
as a client.
2.4.1. Mandatory Social Benefits
Social Security Contributions
Employer’s registration in Social Security is mandatory, as well as the registration of employees

who begin their working activity at the company service.
Employers are responsible for paying Social Security contributions for the company and also for
their employees.
The contributions amount is calculated by application of the contributive global tax over
remunerations. For the generality of employees the contributive taxes are defined the following
way:
Employer – 23,75%;
Employee – 11%;
Total – 34,75%.
While being registered and contributing for Social Security, the employee acquires the right to
benefits of the Social Security general regime, namely:
Familiar responsibilities (guarantees);
Maternity (subsidies);
Professional diseases;
Unemployment (protection and instalment in the eventuality of unemployment);
Death (survival pension and death subsidy);
Disease (subsidy of disease, compensatory instalments);
Old age (retirement pension);
MERCER 10
Disability (retirement pension).
Social Security system ruled by Law nº 4/2007, of January 16th is applicable to the beneficiaries
of the general social security policy and establishes the following underlying principles:
Universality;
Equality;
Solidarity;
Social equity;
Differentiation;
Social insertion;
Intergenerational cohesion;
Public responsibility primacy;
Complementarity;
Unity;
Decentralization;
Participation;
Effectiveness;
Protection of the acquired and training rights
Judicial Guarantee;
Information.
Came into force at January 1st 2002 a Social Security new retirement calculation formula. The
main changes concern the reference income and annual growth rate.
The reference income changed to all career income average (previously it was the average of 10
best salaries of last 15 contribution years). According to this new formula the annual growth rate
is regressive (please see table below) with the reference income and varies from 2% to 2,3%
(2% independently of salary of prior formula).
Annual growth table: Salary average portion:

< 20 years 2,00%
20 years:
1,1 SSP 2,30%
> 1,1 SSP e 2 SSP 2,25%
> 2 SSP e 4 SSP 2,20%
> 4 SSP e 8 SSP 2,10%
> 8 SSP 2,00%
Note: SSP – Social Support Index (Indexante dos Apoios Sociais).
MERCER 11
Law nº 53B/2006 of December 29th sets up Social Support Index (SSP) that replaces national
minimum wage as reference for adjustment and calculation of pensions, social benefits and
contributions. The value of SSP for 2011 is 419,22 Euros (Portaria nº 1504/2008, of December
24th).
Accumulated Percentage:
Minimum 30%
Maximum 92%
New Formula – Law Decree 187/2007, June 1st 2007

Final Pension = Pension * Sustainability Factor
Sustainability Factor = ALE2006/ ALEyeari - 1
Where:
ALE2006 = Average Life Expectancy at 65 years old in 2006;
ALEyeari - 1 = Average Life Expectancy at 65 years old in the year before the pension start.
Pension = (C1 x P1 + C2 x P2) / C

The factor (C1 e C2) to apply to P1 and P2 will depend on admission date in Social Security
and retirement date:
a) The beneficiaries whose contributions started before 31/12/2001 and that will be retired until
31/12/2016:
C1 calculated until 31/12/2006
C2 calculated after 31/12/2006
b) The beneficiaries whose contributions to Social Security started before 31/12/2001 and that
will be retired after 31/12/2016:
C1 calculated until 31/12/2001
C2 calculated after 31/12/2001
c) The beneficiaries whose contributions to Social Security started after 31/12/2001:

C1 = 0
C2 = C
Note:
P1 is limited to 12 ALE; ALE = 419,22 Euros in 2011.
MERCER 12
Exceptions:
If P2 > P1, P1 will not be limited;
If P1 and P2 > 12 ALE and P1 > P2, Pension = P2.
Below is presented an example of the substitution rate evolution of pension given by Social
Security (percentage that the monthly pension represents regarding the monthly salary, to
retirement age), driven by the recent legislative changes. It’s an employee that will be retired at
65 years old after paying contributions to Social Security for 40 years. This employee has
actually 43 years old with 3.100 € of base salary.
Prerequisite:
Salary Real Growth Rate
until the 10th career year 10,0%
Between the 10th and 20th career year 5,0%
After 20th career year 1,5%
Inflation Rate (after 2007) 2,0%
12,1%
80,0%
72,4% 7,6%
70,0%
60,3%
60,0%
52,7%
Taxa de Substituição
Substitution Rate
50,0%
40,0%
30,0%
20,0%
10,0%
0,0%
Regras em vigor
Rules before
Regras em vigor
Rules before
Regras em vigor
Rules after
até 31/12/2001
31/12/2001 até 31/05/2007
31/05/2007 após 01/06/2007
01/06/2007
MERCER 13
Work Accident Insurance
In Portugal, since 1913, is mandatory for employers to repair the consequences of work
accidents suffered by their employees. In this extent was set up the legal obligation of the
insurance by the risk of work related accidents.
The employee right to the mending for work accidents understands two groups of instalments:
In sort: medical, surgical, pharmaceutical, hospital assistance, or any others,

including accommodation expenses, transport, prostheses appliances, since
necessary to the restoration of the victim’s level of health and work capacity and his
functional rehabilitation;
In cash: compensation for temporary or constant inability; life pension for reduction in
work capacity; supplementary instalment for presence for third person; subsidies for
high constant inability, for house readjustment and for death and funeral expenses;
pensions to relatives for victim’s death.
2.4.2. Non Mandatory Social Benefits
Fiscal Constraints
Costs and losses resulting of the following situations are deductible in order to find the income
tax base:
Insurance contracts of health and personal accidents;
Life insurance contracts, pension fund contributions and equivalents, or contribution
for complementary regimes to Social Security, which guarantee, exclusively,
retirement benefit, pre-retirement, retirement complement, disability or survival, on
behalf of company employees.
The conditions so that the company contributions can benefit of this fiscal incentive regime are
established in the n. º 4 of the 40th article of the CIRC. All the conditions are important, since the
lack of one determines that fiscal benefit system is not applicable.
The verification of determined requisites and under established limits, the legislator exempts
from tax contributions, profit produced during the capitalization period and only taxes the
benefits paid in the end.
MERCER 14
In a dynamic perspective, fiscal exemptions reveal mere incentives under the form of taxation
deferment since the contributions and profits are not taxed in the service in which they take
place, they are taxed in the end under the form of tax on the paid pensions.
2.4.3. Benefits to which are applied fiscal benefits from CIRC 40th Article
Retirement Plan
A sustainable growth of the corporate pension plans in Portugal, triggered by the governmental
policy which sleeked to reduce the social security responsibilities, can be observed, transferring
this responsibility to the companies.
The main factors that contribute for this growth are:

The tendency for a benefit reduction currently guaranteed by the Portuguese Social
Security;
The increasing competitiveness inter and intra sectors allows the companies that
attribute this type of benefit to attract and maintain the best resources in the market;
The global character of the organizational culture of the multinationals located in
Portugal;
The existence of defined plans on the collective contract level;
The attitude of the Portuguese Government towards fiscal benefits, both for the company
as well as for the employee, in relation to contribution and payment benefits.
Retirement Plans constitute an excellent tool, both fiscally and as a long term incentive in
employee’s retention programs.
In general, companies grant retirement plans to all employees, though plans can differ according
to employee position. Supplementary plans have been traditionally integrated with Social
Security in a base of direct compensation. Nevertheless, the potential reductions of the Social
Security pension’s value led to a clear tendency towards a growth rate, not integrated based in
the years of service.
At a general level most of the new plans are defined contribution plans, however most of the
existent plans are still defined benefit.
A great part of the pension plans (about 70%) are independent from Social Security. A typical
plan would offer 10% to 20% of the retirement final salary. The normal retirement age is usually
aligned with Social Security (65 years). The pension increases are often granted though
normally in a discretionary base.
MERCER 15
In the last years, companies have been using low contribution incentives to Social Security to
place some employees in pre-retirement. However, this practice is becoming less common. If an
employee accepts pre-retirement there are paid contributions significantly reduced to Social
Security, since the salary is not higher than the received before the retirement. This option is
available as soon as the employee reaches 55 years of age. For fiscal reasons it’s possible to
supply the pre-retirement salary, but it is not possible to supply the first retirement salary through
the retirement plan. In these cases, the company retirement plans would be totally invested and
submitted at normal retirement age.
The last changes in Social Security benefits are forcing many companies to revise their
retirement plans, especially if they are totally integrated in Social Security, which represents
added responsibility and risk for the company. If the retirement plans are not integrated, it is
necessary to consider the impact of total benefits reduction for the employees.
This question will cause some pressure to companies to complete the insufficient Social Security
benefits, (due to their social responsibility) or, at least, to make the employee aware of the future
retirement plans, through the promotion of plans with total/ partial share of costs potentially
connected with flex compensations.
For each Job under analysis, namely for a defined Benefit Plan, the annual cost was based on
the inherent characteristics of each plan, the salary of the employee who exercises that job
position, and on the age of the employee (in case the age is not specified, the average age of
the job function was used). For each job under analysis with defined contribution plans, the
annual cost was determined by applying the company contribution to the details of the employee
who exercises that job position.
Medical Plan
This benefit has been gaining increased importance, and in this moment is perceived to be a
differentiating factor. Multinational companies operating in Portugal are in the leadership in the
concession of this benefit, together with the most competitive national companies. The Medical
Plan often offers some coverage degree for employee’s direct family
The medical plan usually covers hospitalization, ambulatory assistance, medications, and
maternity, oftomological and orthodontist expenses. The plan normally covers 80% of costs up
to a maximum annual limit defined by the insurance.
MERCER 16
Medical insurances like the ones provided by Managed Care, where the service suppliers are
previously established (doctors, hospitals, etc.), continue to be the best solution for this benefit,
and show an increase in market quota, a tendency already observed in previous years. This type
of insurance has underlying agreements with service suppliers, resulting in a cheaper service
and more attractive prices. Within the more conventional network the partnership percentages
are relatively higher (90 – 100%).
Many companies choose to turn the level of protection of this benefit more flexible, allowing
employees to choose between several plans, with different characteristics.
Life Insurance
Life insurance is a benefit often given to all employees. The benefit paid in case of death or
disability corresponds, in most situations, to a value that varies between 1 to 2 times the
employee’s annual salary. This benefit has a very high potential due to its flexibility of insurance
capital, which may or may not be valued by the beneficiaries.
For this report, the values for Life Insurance were calculated by using an annual and individual
insurance applying a risk prize to the insurance capital of each employee, taking into account
their age (in cases where the age was not specified the average age for the specific Job function
was used).
Personal Accident Insurance
The personal accident insurance is the better protection form to sudden and unpredictable risks
or additional temporary risks, as business trips or high risk professions.
Unlike life insurance that obliges the checking of demanding conditions in the cases of disability,
the personal accidents insurance guarantees proportional compensations to the degree of
devaluation.
MERCER 17
2.4.4. Social Benefits to which are not applied fiscal benefits
Sick Pay
Clause 125 “Sickness allowance complement” found in Chapter XIII “Providence of Social
Exemptions” of the Employment and Work Bulletin, lists the principal characteristics of the
complement:
1. During the period of work incapacitation due to the justified sickness, the company can
provide the workers a complement to the allowance granted by social security;
2. In cases where social security provides the sickness allowances during the period
referred to in the point above, the employee must endorse this allowance to the
company;
3. The company will be made aware of the situation, except if there is a plausible
justification or impediment during the first working day after it has been verified or, if this
is not possible, on the course of the following three working days on the limit;
4. The sickness allowance complement that may be given to the company is equal to the
difference between the net reward receive by the worker, and the sickness allowance
provided by social security;
5. The company will keep the sickness allowance whilst the initial terms and conditions
continue to apply, in accordance with what was referred to in the first point put forward
above.
2.4.5. Other Benefits
Car
Organizations find in the car attribution to employees a way of giving a benefit in which the
employee has an immediate perception of it, in the sense in which it substitutes a concrete cost
in the budget of each employee that normally represents a relevant percentage of his available
income.
In this benefit valuation was taken into account the maximum plafond given by the company for
the acquisition of the new vehicle. When the maximum limit did not exist, the commercial value
of the new vehicle was used.
MERCER 18
The increase in value of the automobile insurance and maintenance consisted on the value
declared by the company. When it did not exist, a percentage to the value of the plafond
commercial value was attributed.
Fuel
Some organizations also offer, to some hierarchical levels, the cost of the fuel associated to the
car.
Every time companies presented unlimited Fuel values, a percentage was applied over the
plafond / commercial value according with the criteria used to determine the provision of the car
(status / business need).
2.5. GROSS-UP
All liquid values analysed were subjected to the source retention tables of the current year
(Table III – Dependent work, married, two owners) and Social Security rate.
2.6. MERCER INTERNATIONAL POSITION EVALUATION SYSTEM
The Mercer International Position Evaluation System (IPE) is designed to objectively evaluate
the relative ranking of the positions. It is a simple, consistent yet highly accurate measure of
relative job size that has universal application in today’s fast changing environment.
The IPE System can be used to compare positions within or across job families or even to
compare positions in different organizations in different countries.
IPE easily clarifies relativities among positions and focuses on key business parameters to
determine job size – Impact on results, Communication and Innovation needed and
Knowledge to fulfil a position’s responsibility.
MERCER 19
Mercer International Evaluation System Factors
Impact
This factor is a function of the organizations Size, the Nature of
Contribution
Impact assigned to the position and modified by its relative
Contribution to the organization overall results.
Nature of Impact
Organization
Communication
Frame
This factor is a function of the Nature and Frame of
Communication. It captures the communication skills, which are
Communication frequently required in the position, within as well as outside of

the organization.
Innovation
This factor is a function of the expected level of Innovation from
Innovation
the position and the Complexity of the innovation activity. It
relates to the required improvements to products, procedures
Complexity
or services as well as to the development of new ideas,
methods, techniques, services and products.
Knowledge
Teams
This factor relates to the Level of Knowledge required in the job
to accomplish objectives and create value and the application
Knowledge
of knowledge in teams and in geographies and cultures the
Breadth position operates or serves.
MERCER 20
MERCER
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Class
Position
Personal Driver Executive Secretary General Manager Head of Organisation
Office Administration
Clerk Senior Secretary Business Unit Manager
Manager
Sr. Office
Messenger Secretary Administration
Administration
Professional
2.7. ORGANIZATION CHART
Top Management /
Office Administration
Receptionist
Officer
Legal Assistant Senior Legal Counsel Head of Legal
Legal Counsel Legal Manager

Affairs
Head of Public Relations

Legal and Corporate
Public Relations
Public Relations Officer
Manager
Junior Human Human Resources Head of Human

Resources Officer Officer Resources I
Senior HR Head of Human

Administration Analyst Resources II
Technical Trainer
HR Assistant / Personnel Human Resources

Personnel Clerk Administration Officer Manager
Human Resources
Compensation & Compensation &

Benefits Officer Benefits Manager
Training & Development Training & Development

Officer Manager
21
MERCER
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Class
Position
Head of Finance &

Finance Manager
Accounting I
Head of Finance &

Finance Assistant Finance Officer
Accounting II
Administrative &
Cashier
Financial Manager
Treasury Analyst Treasury Manager
Credit & Collections Credit & Collections

Analyst Manager
Credit & Collections

Accounting Manager
Clerk
Finance

Auditor Audit Manager
Junior Accountant Accountant Senior Auditor
Senior Accountant Controller
Financial Planning
Financial Analyst
Manager
Senior Financial Analyst
Senior Business Head of Business

Consultant Consultancy
Business Consultant
Business Consultant
Manager
Business
Consultancy
Junior Business Business Consultant

Consultant Expert
22
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Class
Position
MERCER
Technical Consultant
Manager
Junior Technical Senior Technical Technical Consultant

Consultant Consultant Expert
Technical
Consultancy
Information Technology Head of Information

Manager Technology
Senior IT Architecture
IT Architecture Manager
Officer
Applications
IT Architecture Officer
Development Manager
Applications Applications
Development Engineer Development Expert
Head of Applications
Applications Syst Analy.
Syst Analysis &
& Program Manager
Program

Jr. Applications Applications Syst
Applications Systems
Systems Analyst / Analyst / Programmer
Analyst / Programmer
Programmer Specialist
Sr. Applications
Systems Administrator Systems Analyst/
Programmer
Systems Administration
Junior Systems Analyst Systems Analyst
Manager
Systems Development
IT Support Analyst
Supervisor
Information Technology
Systems Development
IT Support Supervisor
Manager
Software Tester Senior Software Tester IT Support Manager
Software Systems Software Systems

Engineer Engineering Manager
Senior Software
Systems Engineer
Systems Integration
Supervisor
Junior Systems Systems Integration Senior Systems Systems Integration

Integration Programmer Programmer Integration Programmer Manager
23
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Class
Position
MERCER
Business Development Head of Sales and
Manager (Marketing) Marketing
Business Development
Analyst (Marketing)
Marketing Assistant Marketing Executive Marketing Manager Head of Marketing
Market Research
Manager
Senior Marketing
Specialist
Marketing
Market Analyst Communication
Manager
Marketing
Group Brand/ Product

Manager
Sr. Marketing
Communicat. Specialist

Marketing Communicat. Senior Brand/ Product
Specialist Manager
Assistant Brand/Product
Brand/ Product Manager
Manager
Pricing Manager
Senior Sales
Sales Trainee Sales Manager Head of Sales
Representative
District Sales Manager
Senior Key Account

Sales Representative
Manager
Key Account Manager

Sales
Senior Sales
Account Manager I
Administration
Sales Administration
Account Manager II
Officer
Junior Sales Sales Administration

Administration Officer Manager
24
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Class
Position
MERCER
Senior Helpdesk
Helpdesk Manager
Coordinator
Helpdesk Coordinator
Inbound/Outbound
Contact Center
Representative
Senior Customer Head of Customer

Service Officer Service
Customer Service Customer Service

Officer Manager
Senior Research & Research &

Development Engineer Development Manager
Research & Technical Pre Sales

Development Engineer Support Manager
Technical Pre Sales Senior Technical Pre

Support Sales Support

Senior Systems Systems Engineering
Systems Engineer
Engineer Manager
Technical Services Head of Technical

Manager Services
Senior Technical
Services Engineer
Engineering
Junior Technical Technical Services

Services Engineer Engineer
Technician (Higly
Skilled)
Head of Maintenance
Technician (Junior) Technician (Skilled) Senior Project Engineer
Engineering
Maintenance Engineer Maintenance Manager
Junior Project Engineer
Maintenance Supervisor
Project Engineer
25
MERCER
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Class
Position
Head of Project
Project Leader
Management
Project Manager I
Project Assistant Project Manager II

Project Management
Head of Production
Production Worker -
Production Manager
Highly Skilled

Manufacturing
Production Supervisor
Head of Quality
Quality Engineer Quality Manager
Assurance
Quality
QA/QC Technician Senior Quality Engineer
Head of Supply &

Logistics Officer
Logistics
Storekeeper Purchasing Supervisor Logistics Manager
Warehouse Supervisor Purchasing Manager

Supply and Logistics
Warehouse Clerk Buyer
26
MERCER
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
Class
Position
Network Operations Network Operations Network Operations

Control (NOC) Operator Control (NOC) Engineer Control ( NOC) Manager
Transmission
Transmission Engineer Transmission Manager
Technician
Transmission
Supervisor
Switching Supervisor
Head of Network
Switching Engineer
Planning
Network Planning Sr. Network Planning

Engin. (Network/Radio) Engin. (Network/Radio)

Network Planning Network Planning
Analyst Manager
Network/Systems Network/Syst. Develop.

Development Engineer Engin. Manager
Telecommunications
Network/Syst. Develop.
Interconnection Director
Engin. Executive
Reg. Sales Mgr/

Interconnec. Contracts
Network Maintenance Network Maintenance Head of Network

Engineer Manager Maintenance
Network Maintenance
Supervisor
Installation &
Maintenance Manager
Installation & Installation &

Maintenance Technician Maintenance Superv. II
27
3 Participant Profile
3 Empresas
Perfil das
Participantes
MERCER 28
3
Participant Profile
The companies that participated in this study were:
Accenture ONI Communications

Alcatel – Lucent Outsystems
Axa Portugal Philips
Brisa Inovação e Tecnologia Primavera
BSHP PT Comunicações
CA Informática PT Prime
Cesce Soluções Informáticas PT Sales
CGI Safira
Checkpoint Systems Samsung
Contactus Informática Siemens
Equifax T Systems
Ericsson Talaris
Everis TCSI
Gateway Tecnocom
GFI Thales
Hitachi Consulting TimWe
InovaPrime Tlantic Portugal
Intergraph TMN
Konica Minolta Unisys
LG Electronics Via Verde
Logica Vodafone
Markem - Imaje Wincor Nixdorf
Mcall ZTE
Microsoft
MERCER 29
3.1. ORGANIZATION TYPE
Regarding the participant companies in this study, 62% are multinationals and 34% have the
USA or Germany as the parent organization nationality.
Company Type
Multinational
62%
Private National
38%
Parent Organization Nationality

30%
20%
17% 17% 17%
14%
10% 10%
10%
7% 7%
0%
France Germany Republic of Spain Sweden UK USA Other
Korea
Note: The condition “Other” includes the following countries: Canada, China, Ireland, Japan, and Netherlands.
MERCER 30
3.2. ORGANIZATION TYPE BY TOTAL EMPLOYMENT
In the sample, 38% of the companies have less than 100 employees and 22% have between
100 and 200 employees.
Employee Number
> 1.500
]500 ; 1.500] 7%
11%
]200 ; 500]
20%
100
43%
]100 ; 200]
18%
3.3. ORGANIZATION TYPE BY ANNUAL GROSS REVENUE / SALES
In terms of gross revenue / sales, the participant companies are distributed as follows:
Gross Revenue / Sales (Million Euros)

]500 ; 1.500]
9% > 1.500
4%
]100 ; 500]
20%
25
]25 ; 100] 53%
13%
MERCER 31
3.4. EMPLOYEE’S CHARACTERIZATION
Gender
The employee’s universe gender from Hi-Tech sector is, in majority, male (67%).
Gender
Female
33%
Male
67%
Gender Analysis by Functional Levels
100%
80%
60%
40%
20%
0%
Head of Executives Management Professional Non- Professional Sales
Organization Sales
Male Female
MERCER 32
Age
About 34% of the employee’s universe has less than 35 years old.
Age
45%
39%
31%
30%
22%
15%
3% 5%
0%
25 26 - 35 36 - 45 46 - 55 > 55
Age Analysis by Functional Levels
100%
80%
60%
40%
20%
0%
Organization Sales
25 26 - 35 36 - 45 46 - 55 > 55
MERCER 33
Length of Service
In terms of seniority, and based on collected data, we can observe that 42% of the sample has
less than 10 years of Length of Service.
Length of Service
45%
35%
30%
23% 23%
19%
15%
0%
5 6 - 10 11 - 15 16
Length of Service Analysis by Functional Levels
100%
80%
60%
40%
20%
0%
Organization Sales
5 6 - 10 11 - 15 16
MERCER 34
Academic Level
Concerning Academic level of the sample universe, based on the information collected the
graphic shows that 64% of employees in the Hi-Tech Sector have a College Degree.
Academic Level
Other
6% Junior School
1%
Middle School
4%
High School
Degree 20%
64%
Bachelors
7%
Academic Level Analysis by Functional Levels
100%
80%
60%
40%
20%
0%
Organization Sales
Other Junior School Middle School High School Bachelors Degree
MERCER 35
4 Salary Increase
MERCER 36
4
Salary Increase
Nowadays salary increases are more aligned and consistent between geographies, activity
sectors and functional levels. This behaviour is induced by a historically low inflation rate level,
supported by common monetary policies strictly controlled by European Union Institutions.
Concerning general Salary Increases by functional levels (1st and 2nd line Directors, Technicians,
Administrative) we can observe that, inside organizations, they tend to be each time more
uniform and undifferentiated, which come in line with general market trends.
The “differentiate increase” concept, which means the split between general increase (at the
inflation rate) and individual increase, is followed by the majority of the analysed companies, in
order to reward the performance. This individual increase is mostly supported by Evaluation and
Performance Management Tools.
This chapter will present a statistical analysis of the sample main policies on Salary Increases.
4.1. ECONOMIC ENVIRONMENT AND TRENDS
Main Economic Indicators - 2010/2011 and Main Tendencies for 2012/2013
The rebalancing of the economy away from its over-reliance on domestic demand is proceeding
against the background of the economic adjustment programme. Business and consumer
confidence indicators have been on a downward trend since the beginning of 2011, with some
even reaching multi-annual lows in September. Domestic demand recorded a strong contraction
in the first quarter of 2011, which was reflected in all major expenditure components. However,
its impact on GDP was cushioned by a concomitant decline in imports. Domestic demand
showed some resilience in the second quarter of 2011, helped by an unexpected but probably
short-lived stabilisation in the labour market. As a consequence, private consumption
expenditure declined by less than expected in the spring forecast. In addition, healthy export
growth lifted GDP in the second quarter. In volume terms, GDP remained flat in the second
MERCER 37
quarter, following two consecutive quarter-on-quarter declines in Q4-2010 and Q1-2011.
Favourable developments in the second quarter unlikely to persist.
Headwinds buffeting the Portuguese economy have lately become stronger. The weaker growth
outlook in the rest of the world is likely to harm foreign demand for Portuguese exports and the
fall in global sentiment indicators is having spill-over effects on the Portuguese economy.
Domestic economic developments will be influenced by accelerated fiscal consolidation efforts.
Real GDP is projected to decline by a cumulated 5% this year and next, before recovering
modestly in 2013. Credit supply to non-financial companies is likely to be constrained, in
particular in 2012, as a consequence of accelerated deleveraging efforts in the banking sector,
with possible adverse effects on business investment. However, the demand of non-financial
corporations for bank credit should be equally subdued as the expected strong shrinking of
domestic consumption is set to act as a drag on investment activity for the remainder of 2011
and in 2012. Fixed investment is thus projected to decline by a cumulative 20% in 2011-12
before a modest recovery of capital formation takes hold in 2013 due to the projected
stabilisation of domestic consumption and strong export growth. Private consumption
developments will be affected by two countervailing forces: ongoing debt reduction efforts by
private households, but also consumption smoothing amid a sharp drop in real disposable
income due to accelerated fiscal consolidation. The household saving rate is expected to drop
by 0.4 pp. to 9.4% of disposable income in this year and to increase slightly in 2012-13. Real
private consumption is forecast to decline by 4¼% this year and by 6% in 2012 before stabilising
in 2013. As a result of intensified fiscal consolidation, government consumption is set to shrink in
volume terms by 3% this year and by 6¼% and 4%, respectively, in 2012 and 2013. This would
add up to a cumulated decline in domestic demand of 13% between 2010 and 2013.
Export activity is predicted to slow down in the short term, following the recent significant
deceleration of external demand, which is projected to last until mid-2012. However, due to
strong export dynamics in the second quarter, export volumes should still increase by 6½% in
this year before slowing down in 2012. In 2013 an acceleration of exports is expected in line with
stronger foreign demand. The weakness of domestic demand is expected to affect goods with
typically high import content, such as consumer durables and investment goods. Import volumes
are therefore anticipated to contract by a cumulated 10% in this year and next year, and to
increase slightly by 1% in 2013. As a result, the hitherto high trade deficit is foreseen to turn into
a small surplus in 2013. On the other hand, rising interest rates and a still-high level of external
indebtedness should further widen the deficit in the primary income balance. The current-
account deficit is thus is projected to narrow at a slower pace than the trade deficit and to reach
4% of GDP in 2013.
MERCER 38
Price pressures remain subdued
Headline inflation is evolving as predicted in the spring forecast, with price developments being
driven by high energy prices and the effects of VAT hikes. HICP decelerated during the summer
but soared to 3.5% in September, largely due to an acceleration of goods prices. When
measured at constant taxes, HICP inflation has been below the euro-area average since
December 2007. Prices are anticipated to accelerate further in the final quarter of this year and
in 2012 due to consecutive VAT rate changes on 1 October 2011 and 1 January 2012. Annual
HICP inflation is forecast to average 3½% in 2011 and 3% in 2012, but to decelerate markedly
thereafter amid continued mark-up compression and downward wage pressure in the context of
relatively weak domestic demand. The recovery of the labour market in the second quarter is not
expected to continue over the forecast period. Unemployment is set to increase into 2013.
Risks to the economic outlook are tilted to the downside
Downside risks to the forecast prevail over the short term. In particular, accelerated deleveraging
in the banking sector through lending restraint rather than raising capital would be detrimental to
the prospective recovery in business investment, as would be a further worsening of the global
economic outlook. On the positive side, an earlier recovery of the world economy could lift export
volumes in 2012. Recently implemented reforms on labour and product markets could unlock
economic growth earlier than expected.
Tight fiscal consolidation
Medium-term prospects are affected by the plans to sizeably reduce the government deficit and
put the public debt ratio on a downward path. Under the ongoing Economic Adjustment
Programme, government targets are for a deficit of 5.9% of GDP in 2011, 4.5% in 2012 and 3%
of GDP in 2013. Taking into account the combined effect of the planned consolidation measures
and the subdued GDP path over the period 2011-13, the reduction of the government deficit to
3% of GDP in 2013 from 9.8% of GDP in 2010 will largely be the result of a falling expenditure-
to-GDP ratio, with an additional contribution of a slight rise in the revenue ratio. The
improvement in the structural balance over the forecast period will amount to close to 8 pps. of
GDP.
A large fiscal consolidation effort has been implemented in 2011, encompassing a wide range of
structural measures in various areas of the revenue and expenditure sides of the budget. On the
expenditure side, these include an average cut of 5% in government wages, reductions in
MERCER 39
government payroll lists, cuts in social transfers (such as unemployment benefits and family
allowances), and a freeze of essentially all other social outlays. Measures have also aimed at
reining in spending, in particular in the health sector, state-owned enterprises (SOEs) and public
investment. Consolidation efforts on the revenue side consist mainly of a 2 pps. increase in the
standard VAT rate in January 2011. In addition, revenue inflows benefit from the carry-over
effect of a number of tax hikes in mid-2010. Increases in non-tax revenues through higher
prices, fees for services and through assets and concessions sales were also planned, the latter
having only a temporary effect on the budget.
Nonetheless, the achievement of the government deficit target for 2011 would be at risk in the
absence of further corrective measures. This is mainly due to expenditure overruns and
shortfalls of non-tax revenue, also because some consolidation measures are not yielding the
expected results. In addition, deficit-increasing events are hampering fiscal prospects for 2011,
including notably the assumption of debts of about 0.3% of GDP from a financially-troubled
government enterprise and a failed public-private partnership, both in the remit of the Madeira
regional government. Additional costs related to the sale of the troubled bank BPN will add
another 0.2% of GDP to the 2011 government deficit.
Against this backdrop, additional measures have been taken to counteract the emerging
budgetary slippage. In particular a one-off tax surcharge in personal income has been
introduced and the VAT rate on electricity and natural gas has been increased (with a
substantial carry-over into 2012). Furthermore, the government will proceed with the transfer of
bank pension funds to the state social security system, with the sizeable resulting up-front
capital transfers contributing to a temporary reduction of the fiscal deficit.
In 2012, Portugal is expected to undertake additional consolidation efforts worth over 5% of

GDP, included in a comprehensive package of spending cuts and tax increases. Measures on
the expenditure side notably include cuts of government wages and pensions, which can amount
up to a reduction of income by 1/7 for those earning or receiving more than 1000 euro per
month, as 2 of the 14 annual payments will be eliminated. In addition, reductions in public sector
employment are also foreseen and access to some social transfers is to be tightened. Savings in
the area of health are expected to come from a restructuring of health services and lower
spending on medication. Rationalisation in the area of education and of public administration in
general should yield additional savings. A sharp decline in capital expenditure is also targeted,
including by state-owned enterprises. On the revenue side, the consolidation plans for 2012 rely
considerably on higher indirect taxation: at the level of VAT the structure of taxation is set to
change, with more goods and services being taxed at the higher intermediate and standard rates
MERCER 40
and some excise taxes will also be increased. Regarding direct taxation, the focus is mainly on a
broadening of the tax base by reducing deductions and exemptions at personal and corporate
income tax levels. Exemptions relating to real estate taxation are also set to be reduced.
For 2013, additional sizeable consolidation efforts of 2% of GDP are foreseen largely based on
the deepening of previously implemented cost-cutting measures and a further broadening of tax
bases. Government debt is projected to stabilise at 112% of GDP in 2013, up from 72% of GDP
in 2008.
2012
Economic indicators – Portugal (%) 2011
(Estimate)
GDP (growth rate) -1,9 % -3,0 %
Inflation 3,5 % 3,0 %
Unemployment rate 12,6 % 13,6 %
Source: European Commission – Economic Forecast, Autumn 2011.
Economic indicators – Portugal (%) 2013 (Forecast)
GDP (growth rate) 1,1 %
Inflation 1,5 %
Unemployment rate 13,7 %
Source: European Commission – Economic Forecast, Autumn 2011.
MERCER 41
4.2. SALARY REVIEW
The following picture presents the most common year months when participant companies
review their salaries.
Salary Review
40%
30%
27%
22%
20% 19%
14% 14%
11%
10%
3%
0%
January February March April September Other Indefinitely
(Undetermined)
Note1: The condition “Other” includes the following months: June, July, October, and December.
Note2: The percentages don’t add up to 100% as some companies provided more than one answer.
4.3. REASON OF INCREASE
When considering the salary increases, the increase percentage attributed to the employees is
determined by a range of factors, such as the employee individual results, most important factor,
considered by 81% of the companies represented in this study, followed by company results
(70%).
Reasons for Salary Increases

Organization Performance 70%
Position in Salary Range 34%
Job Level 13%
Inflation 43%
Individual Performance 81%
Length of Service 6%
Other 13%
0% 20% 40% 60% 80% 100%

Note: The percentages don’t add up to 100% as some companies provided more than one answer.
MERCER 42
Seniority and Job Level are considered the less influent factors considered when analysing
salary increases.
Other reasons for salary increases include market comparisons, collective bargaining
agreements, approved budget, and headquarters orientations.
4.4. HIRING INTENTIONS
In which concerns to hiring intentions, most organizations (52%) intend to maintain the number
of employees, however there is a relevant number of organizations (19%) that indicated the
intention of reducing staff during the present year.
Hiring Intentions
80%
60%
52%
50%
40%
31%
26%
22%
20% 19%
0%
Increase Headcount Reduce Headcount No Change
2011 2012
MERCER 43
5 Market Analysis of
Total Compensation
by Position Title
MERCER 44
5
Market Analysis of Total Compensation by Position Title
The Total Compensation – Hi-Tech/ Telecommunications 2011 complete report includes

detailed analysis of the following positions:
Top Management Finance

Head of Organization Head of Finance & Accounting I
General Manager Head of Finance & Accounting II
Business Unit Manager Administrative and Financial Manager
Finance Manager
Legal & Corporate Affairs Finance Officer
Head of Legal Finance Assistant
Legal Manager Treasury Manager
Senior Legal Counsel Treasury Analyst
Legal Counsel Cashier
Legal Assistant Credit & Collections Manager
Head of Public Relations Credit & Collections Analyst
Public Relations Manager Credit & Collections Clerk
Public Relations Officer Accounting Manager

Senior Accountant
Accountant
Human Resources
Junior Accountant
Head of Human Resources I
Audit Manager
Head of Human Resources II
Sr Auditor
Human Resources Manager
Auditor
Human Resources Officer
Controller
Junior Human Resources Officer
Financial Planning Manager
Compensation & Benefits Manager
Senior Financial Analyst
Compensation & Benefits Officer
Financial Analyst
Senior HR Administration Analyst
Personnel Administration Officer
HR Assistant / Personnel Clerk
Administration
Training & Development Manager Office Administration Manager
Training & Development Officer Senior Office Administration Professional
Technical Trainer Office Administration Officer

Executive Secretary
MERCER 45
Senior Secretary Applications Systems
Secretary Analyst/Programmer
Clerk Junior Applications Systems
Receptionist Analyst/Programmer
Personal Driver Systems Development Manager
Messenger Systems Development Supervisor
Systems Analyst
Business Consultancy Junior Systems Analyst
Head of Business Consultancy IT Support Manager
Business Consultant Manager IT Support Supervisor
Business Consultant Expert IT Support Analyst
Senior Business Consultant Software Systems Engineering Manager
Business Consultant Senior Software Systems Engineer
Junior Business Consultant Software Systems Engineer

Systems Integration Manager
Systems Integration Supervisor
Technical Consultancy
Senior Systems Integration Programmer
Technical Consultant Manager
Systems Integration Programmer
Technical Consultant Expert
Junior Systems Integration Programmer
Senior Technical Consultant
Systems Administration Manager
Systems Administrator
Junior Technical Consultant
Marketing
Head of Sales and Marketing
Head of Information Technology
Business Development Manager
Information Technology Manager
(Marketing)
Senior Software Tester
Business Development Analyst
Software Tester
(Marketing)
IT Architecture Manager
Head of Marketing
Senior IT Architect Officer
Marketing Manager
IT Architecture Officer
Senior Marketing Specialist
Applications Development Manager
Marketing Executive
Applications Development - Expert
Marketing Assistant
Applications Development Engineer
Market Research Manager
Head Applica. Systems Analy. & Progra.
Market Analyst
Applica. Systems Analy. & Progra.
Marketing Communication Manager
Manager
Sr. Marketing Communication Specialist
Applications Systems
Marketing Communication Specialist
Analyst/Programmer - Specialist
Group Brand/Product Manager
Senior Applications Systems
Senior Brand / Product Manager
Analyst/Programmer
MERCER 46
Brand/Product Manager Head of Technical Services
Assistant Brand/Product Manager Technical Service Manager
Pricing Manager Senior Technical Service Engineer
Technical Service Engineer
Sales Junior Technical Service Engineer
Head of Sales Technician (Highly Skilled)
Sales Manager Technician (Skilled)
District Sales Manager Technician (Junior)
Sr. Sales Representative Senior Project Engineer
Sales Representative Project Engineer
Sales Trainee Junior Project Engineer
Account Manager I Head of Maintenance Engineering
Account Manager II Maintenance Manager
Senior Key Account Manager Maintenance Supervisor
Key Account Manager Maintenance Engineer
Sales Administration Manager

Senior Sales Administration Project Management
Sales Administration Officer Head of Project Management
Junior Sales Administration Officer Project Manager I
Project Manager II
Contact Center Project Leader
Helpdesk Manager Project Assistant
Senior Helpdesk Coordinator

Helpdesk Coordinator Manufacturing
Inbound/Outbound Representative Head of Production
Production Manager
Engineering Production Supervisor
Head of Customer Service Production Worker - Highly Skilled
Customer Service Manager

Senior Customer Service Officer Supply & Logistics
Customer Service Officer Head of Supply & Logistics/Supply Chain
Research & Development Manager Executive
Sr. Research & Development Engineer Logistics Manager
Research & Development Engineer Logistics Officer
Technical Pre Sales Support Manager Purchasing Manager
Senior Technical Pre Sales Support Purchasing Supervisor
Technical Pre Sales Support Buyer
Systems Engineering Manager Warehouse Supervisor
Senior Systems Engineer Storekeeper
Systems Engineer Warehouse Clerk
MERCER 47
Installation & Maintenance Supervisor II
Quality Installation & Maintenance Technician
Head of Quality Assurance
Quality Manager
Senior Quality Engineer
Quality Engineer
QA/QC Technician
Telecommunications
Network Operations Control (NOC)
Manager
Engineer
Operator
Transmission Manager
Transmission Supervisor
Transmission Engineer
Transmission Technician
Switching Supervisor
Switching Engineer
Head of Network Planning
Network Planning Manager
Senior Network Planning Engineer
(Network/Radio)
Network Planning Engineer
(Network/Radio)
Network Planning Analyst
Network/Systems Develop. Engineering
Manager
Network/Systems Develop. Engineering
Executive
Network/Systems Develop. Engineer
Interconnection Director
Reg Sales Mgr/Interconnec Contracts
Head of Network Maintenance
Network Maintenance Manager
Network Maintenance Supervisor
Network Maintenance Engineer
Installation & Maintenance Manager
MERCER 48
MERCER
Summary Table
Annual Guaranteed Cash Total Cash (Real) Total Compensation
Position 25th 75th 25th 75th 25th 75th

MUPC Job Title Average Median Average Median Average Median
Class Percentile Percentile Percentile Percentile Percentile Percentile
Top Management
100.000.112 Head of Organization 67 - 70 154.723 231.273 230.902 333.445 160.160 251.588 264.017 335.296 181.211 299.983 303.632 410.166
Legal & Corporate Affairs
115.030.120 Head of Legal 58 - 61 98.925 112.739 112.522 128.440 112.845 129.320 122.499 142.801 136.688 166.122 153.752 202.377
115.100.350 Legal Counsel 51 - 54 32.204 36.672 37.231 42.510 32.542 37.974 39.593 44.367 37.032 43.996 42.616 48.153
110.209.220 Public Relations Manager 55 - 58 57.468 62.798 62.892 67.397 57.468 67.740 70.166 77.258 75.309 82.122 85.127 89.299
Human Resources
Gross Annual Values in Euros

120.030.120 Head of Human Resources I 59 - 62 92.378 107.978 102.970 121.484 92.378 122.348 117.275 130.482 100.095 143.814 135.853 153.948
120.100.350 Human Resources Officer 49 - 52 28.995 34.452 35.275 41.234 31.696 37.110 38.144 42.676 34.908 41.049 42.509 46.572
120.252.350 Personnel Administration Officer 49 - 52 19.383 21.990 22.116 24.603 19.383 22.711 22.835 25.776 20.727 29.039 24.021 29.765

120.276.351 Technical Trainer 49 - 52 17.054 20.511 19.901 24.422 18.936 22.037 21.923 24.792 19.920 24.105 25.375 27.233
Finance
210.030.130 Head of Finance & Accounting II 57 - 60 85.335 93.969 89.885 106.264 89.885 108.398 100.101 125.194 109.845 132.071 129.183 138.325
210.100.220 Finance Manager 54 - 57 48.738 54.391 56.531 64.333 56.218 65.872 66.743 78.222 71.394 117.165 86.702 103.399
210.308.350 Treasury Analyst 48 - 51 22.708 27.203 26.903 31.605 24.041 30.283 27.255 37.663 26.626 32.593 31.170 38.616
210.308.420 Cashier 45 - 48 16.466 17.399 17.654 18.731 17.229 18.677 19.103 20.378 18.857 20.370 20.880 21.877
210.316.350 Accountant 48 - 51 20.619 24.532 24.039 28.112 20.619 25.725 24.488 29.277 23.146 29.336 26.264 32.436
210.324.350 Auditor 48 - 51 29.384 33.480 34.169 36.532 31.318 36.590 36.199 43.123 36.013 40.709 38.236 47.917
Administration
220.112.350 Office Administration Officer 48 - 51 25.408 27.729 27.177 31.405 26.198 30.105 28.214 33.355 27.794 32.520 31.917 36.213
220.108.422 Secretary 45 - 48 16.501 18.872 18.567 20.635 17.093 19.435 19.289 21.434 19.462 22.005 22.056 24.190
220.368.420 Receptionist 41 - 44 14.862 17.555 18.056 21.101 15.242 17.949 18.321 21.101 15.717 19.548 18.773 24.171
49
MERCER

Continuation
Business Consultancy
310.392.130 Head of Business Consultancy 59 - 62 84.416 93.720 90.580 104.497 90.123 102.072 103.407 109.915 117.236 125.127 125.768 130.924
310.392.220 Business Consultant Manager 56 - 59 62.907 69.153 67.791 75.039 65.012 74.068 72.638 80.644 80.849 90.401 88.931 98.956
310.392.340 Business Consultant 47 - 50 30.497 34.204 33.825 39.151 31.486 35.648 35.059 40.699 39.085 43.915 43.625 50.516
Technical Consultancy
310.395.220 Technical Consultant Manager 55 - 58 51.937 58.051 57.859 62.511 54.095 65.996 60.170 75.325 59.602 79.390 67.951 96.860
310.395.340 Technical Consultant 45 - 48 26.877 28.785 29.117 31.512 27.700 30.172 29.797 32.545 29.929 34.853 32.950 39.257
310.030.120 Head of Information Technology 59 - 62 77.934 87.204 85.286 93.988 85.204 93.199 88.315 102.253 88.476 108.581 96.174 129.714
310.100.210 Information Technology Manager 55 - 58 52.338 60.913 58.500 73.731 57.231 68.072 68.976 79.420 67.131 82.332 86.070 95.443
320.414.350 Systems Analyst 49 - 52 31.394 36.044 35.868 40.122 31.845 37.190 37.100 41.295 34.608 42.295 41.416 47.947
330.424.350 IT Support Analyst 46 - 49 20.801 24.294 25.496 29.665 20.801 25.319 25.496 30.860 22.338 28.282 27.782 34.095
330.413.351 Software Systems Engineer 47 - 50 29.450 32.783 33.779 36.395 29.616 34.296 34.370 37.852 31.891 38.745 37.265 40.969

330.416.350 Systems Administrator 45 - 48 22.935 27.300 29.129 31.674 23.364 27.659 29.208 32.189 25.956 30.234 31.265 35.346
Marketing
410.030.120 Head of Marketing 58 - 61 73.507 92.243 86.509 107.309 82.545 104.750 100.594 125.318 103.395 133.691 126.974 155.554
410.100.350 Marketing Executive 49 - 52 28.959 32.869 32.624 39.189 30.255 35.061 34.431 40.719 32.197 42.643 38.213 44.900
410.476.340 Brand/Product Manager 51 - 54 34.030 38.993 39.002 44.581 35.029 40.983 39.571 45.781 38.057 48.756 43.281 49.288
Sales
420.030.120 Head of Sales 59 - 62 93.031 103.927 103.012 116.029 101.989 122.728 121.472 146.851 127.762 154.812 149.117 179.299
420.100.220 Sales Manager 55 - 58 55.733 63.651 62.301 73.015 66.693 79.642 77.355 90.963 81.523 105.979 94.135 113.018
420.100.350 Sales Representative 49 - 52 21.583 24.993 24.236 27.798 24.744 31.691 28.974 35.648 27.765 38.381 33.808 44.072
420.504.420 Sales Administration Officer 46 - 49 19.415 21.683 21.182 23.616 20.055 22.877 22.343 25.013 22.628 30.537 25.795 31.355
Contact Center
330.404.220 Helpdesk Manager 51 - 54 -- 58.162 57.406 -- -- 62.622 62.742 -- -- 74.987 74.524 --
330.404.420 Helpdesk Coordinator 44 - 47 19.131 23.438 24.246 29.257 20.001 24.401 26.186 30.399 22.585 26.563 28.698 32.787
50
MERCER
Continuation

Engineering
430.030.120 Head of Customer Service 56 - 59 72.089 81.233 77.622 86.021 77.014 90.104 83.292 102.127 86.141 112.316 107.221 132.554
430.532.220 Customer Service Manager 53 - 56 49.071 56.618 57.020 65.871 54.759 65.598 68.260 74.805 69.814 86.462 81.577 99.262
510.415.350 Systems Engineer 45 - 48 32.938 37.993 39.054 45.384 32.938 39.211 39.562 46.796 33.317 42.689 43.596 50.690
510.652.350 Technical Service Engineer 49 - 52 31.382 34.713 37.072 40.833 31.780 35.570 38.030 41.551 33.053 38.696 40.447 44.094
510.652.430 Technician (Junior) 42 - 45 13.943 17.124 16.381 19.150 13.967 17.391 16.763 19.516 15.140 20.872 19.482 27.392
Project Management
708.104.130 Head of Project Management 57 - 60 76.766 87.342 88.954 99.984 77.081 95.628 93.425 110.037 86.268 112.011 108.828 128.775
708.104.222 Project Manager II 52 - 55 40.888 46.857 46.424 51.988 42.824 49.772 48.467 54.129 51.319 60.162 56.552 66.992
708.104.361 Project Assistant 43 - 46 18.102 21.563 20.942 23.831 19.005 22.082 21.942 23.842 21.408 25.366 25.935 27.355
Manufacturing

600.724.220 Production Manager 53 - 56 -- 50.615 49.151 -- -- 52.872 52.253 -- -- 63.163 65.656 --
600.724.410 Production Worker - Highly Skilled 42 - 45 15.674 17.536 17.924 19.693 15.674 17.627 17.924 19.950 18.300 20.296 19.420 22.428
Supply & Logistics
610.100.221 Logistics Manager 54 - 57 54.038 61.428 61.029 68.775 59.932 65.385 62.645 72.514 69.031 87.855 80.410 89.334
610.100.350 Logistics Officer 49 - 52 17.667 21.418 20.216 25.036 17.816 21.812 20.591 25.036 19.952 24.341 24.655 26.643
Quality
620.100.210 Quality Manager 53 - 56 47.027 53.121 52.925 59.549 54.256 61.186 58.914 66.342 58.218 70.998 65.270 83.022
620.128.410 QA/QC Technician 45 - 48 20.153 23.045 23.142 25.194 21.145 23.888 24.438 25.891 23.185 26.629 26.498 28.487
Telecommunications
808.132.350 Network Operations Control (NOC) Engineer 49 - 52 34.145 37.872 37.598 41.081 35.281 39.020 39.839 42.097 38.307 45.527 45.898 49.795
808.409.360 Network Planning Analyst 46 - 49 27.537 29.885 30.561 33.048 28.913 31.020 32.368 33.915 32.115 33.812 34.275 36.897
808.630.350 Network/Systems Develop. Engineer 50 - 53 -- 38.212 38.097 -- -- 39.272 40.278 -- -- 45.898 45.797 --
808.732.420 Installation & Maintenance Technician 44 - 47 20.417 22.171 21.708 24.169 20.634 22.235 21.741 24.169 22.368 25.948 24.266 26.465
51
6 Market Analysis of
Total Compensation
by Position Class
MERCER 52
6
Market Analysis of Total Compensation by Position Class
In the following analysis, Mercer presents a set of management information that collects together
the sum of observations / work positions of the participant companies, ordered by responsibility
level. This data are essential for Companies that intend to define their retributive policy and
practice along with General Market for all positions.
6.1. ANNUAL BASE SALARY REGRESSION TREND-LINE
Market Trend
Annual Base Salary
August 2011
PC 10P 25P Med 75P 90P
40 6.554 7.890 8.812 9.976 10.690
41 7.370 8.862 9.927 11.280 12.133
42 8.288 9.953 11.183 12.754 13.772
43 9.320 11.179 12.599 14.421 15.632
44 10.481 12.556 14.194 16.305 17.744
45 11.786 14.103 15.990 18.436 20.140
46 13.254 15.840 18.014 20.845 22.861
47 14.905 17.791 20.294 23.569 25.948
48 16.762 19.983 22.863 26.649 29.453
49 18.849 22.444 25.757 30.132 33.431
50 21.197 25.208 29.017 34.069 37.946
51 23.837 28.313 32.690 38.522 43.072
52 26.806 31.801 36.827 43.556 48.889
53 30.145 35.718 41.489 49.248 55.492
54 33.899 40.117 46.740 55.683 62.987
55 38.121 45.058 52.656 62.960 71.495
56 42.870 50.608 59.321 71.188 81.151
57 48.209 56.842 66.830 80.491 92.112
58 54.213 63.843 75.289 91.010 104.553
59 60.966 71.707 84.818 102.903 118.674
60 68.559 80.539 95.554 116.351 134.703
61 77.098 90.459 107.649 131.556 152.897
62 86.701 101.601 121.274 148.748 173.548
63 97.500 114.116 136.625 168.186 196.988
64 109.644 128.172 153.918 190.165 223.594
65 123.300 143.959 173.400 215.016 253.794
66 138.657 161.690 195.348 243.115 288.072
67 155.927 181.606 220.074 274.886 326.981
68 175.348 203.975 247.930 310.808 371.144
69 197.188 229.099 279.311 351.425 421.273
70 221.748 257.318 314.665 397.350 478.172
MERCER 53
Eur
MERCER
Annual Base Salary (Comp1)
500.000
90P
Regression Trend-Line
400.000 75P
MD
300.000
25P

10P
200.000
100.000
0
39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71
Position Class
54
6.2. ANNUAL GUARANTEED CASH REGRESSION TREND-LINE
Market Trend
Annual Guaranteed Cash
August 2011
40 7.885 9.316 10.678 11.685 12.517
41 8.860 10.442 11.982 13.157 14.153
42 9.954 11.703 13.445 14.815 16.003

43 11.184 13.117 15.087 16.680 18.094
44 12.566 14.702 16.930 18.781 20.458
45 14.118 16.478 18.998 21.147 23.131
46 15.863 18.469 21.319 23.811 26.154

47 17.823 20.700 23.922 26.810 29.571
48 20.025 23.201 26.844 30.187 33.435
49 22.499 26.003 30.123 33.989 37.804
50 25.279 29.145 33.802 38.270 42.744
51 28.402 32.666 37.931 43.090 48.330

52 31.911 36.612 42.564 48.517 54.645
53 35.854 41.035 47.763 54.628 61.786
54 40.284 45.993 53.597 61.509 69.859
55 45.261 51.549 60.143 69.256 78.988
56 50.853 57.777 67.489 77.980 89.309

57 57.136 64.757 75.732 87.801 100.979
58 64.196 72.580 84.982 98.860 114.174
59 72.127 81.349 95.362 111.312 129.094

60 81.039 91.176 107.010 125.333 145.962
61 91.052 102.191 120.081 141.119 165.035
62 102.301 114.537 134.747 158.894 186.601
63 114.941 128.374 151.206 178.907 210.984

64 129.142 143.883 169.674 201.441 238.554
65 145.098 161.266 190.398 226.814 269.726
66 163.026 180.748 213.654 255.382 304.971
67 183.168 202.584 239.750 287.548 344.822
68 205.799 227.059 269.034 323.766 389.880

69 231.227 254.490 301.894 364.546 440.826
70 259.795 285.234 338.768 410.463 498.429
MERCER 55
MERCER
Eur Annual Guaranteed Cash (Comp2)
600.000
90P
500.000
75P
400.000
MD

300.000 25P
10P
200.000
100.000
0
39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71
Position Class
56
6.3. ANNUAL TOTAL CASH REGRESSION TREND-LINE
Market Trend
Annual Total Cash
August 2011
40 8.078 9.312 10.676 12.041 12.664
41 9.116 10.504 12.058 13.627 14.400
42 10.287 11.850 13.618 15.422 16.374

43 11.608 13.367 15.380 17.453 18.618
44 13.100 15.079 17.370 19.752 21.170
45 14.783 17.010 19.617 22.354 24.073
46 16.682 19.189 22.155 25.298 27.372

47 18.825 21.647 25.022 28.631 31.125
48 21.243 24.419 28.259 32.402 35.391
49 23.972 27.547 31.915 36.670 40.243
50 27.052 31.075 36.044 41.501 45.759
51 30.527 35.054 40.708 46.967 52.032

52 34.449 39.544 45.975 53.154 59.164
53 38.875 44.609 51.923 60.155 67.274
54 43.869 50.322 58.641 68.079 76.496
55 49.505 56.767 66.228 77.047 86.982
56 55.865 64.037 74.797 87.195 98.906

57 63.042 72.239 84.475 98.681 112.464
58 71.140 81.491 95.404 111.680 127.880
59 80.280 91.928 107.748 126.390 145.410

60 90.593 103.701 121.688 143.039 165.342
61 102.232 116.983 137.433 161.880 188.007
62 115.365 131.965 155.214 183.204 213.779
63 130.186 148.867 175.296 207.336 243.084

64 146.911 167.933 197.976 234.647 276.406
65 165.784 189.441 223.591 265.555 314.296
66 187.082 213.704 252.520 300.534 357.379
67 211.116 241.074 285.192 340.122 406.368
68 238.238 271.949 322.090 384.923 462.073

69 268.845 306.779 363.763 435.627 525.414
70 303.383 346.070 410.828 493.009 597.437
MERCER 57
Annual Total Cash (Comp3)
MERCER
Eur
700.000
90P
600.000
500.000 75P
MD
400.000
25P

10P
300.000
200.000
100.000
0
39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71
Position Class
58
6.4. TOTAL COMPENSATION REGRESSION TREND-LINE
Market Trend
Total Compensation
August 2011
40 8.380 9.646 11.609 12.131 13.412
41 9.605 11.046 13.232 13.981 15.468
42 11.008 12.648 15.081 16.113 17.840

43 12.616 14.483 17.189 18.570 20.575
44 14.458 16.584 19.592 21.402 23.729
45 16.570 18.990 22.330 24.666 27.367
46 18.991 21.745 25.451 28.427 31.562

47 21.765 24.900 29.009 32.762 36.401
48 24.944 28.513 33.063 37.759 41.981
49 28.588 32.650 37.684 43.517 48.417
50 32.764 37.386 42.951 50.153 55.839
51 37.550 42.810 48.955 57.802 64.400

52 43.035 49.021 55.797 66.616 74.273
53 49.322 56.133 63.596 76.776 85.659
54 56.526 64.277 72.485 88.484 98.791
55 64.784 73.603 82.616 101.978 113.936
56 74.247 84.281 94.163 117.529 131.403

57 85.093 96.509 107.324 135.453 151.548
58 97.523 110.510 122.325 156.109 174.781
59 111.768 126.543 139.422 179.916 201.576

60 128.095 144.902 158.909 207.353 232.478
61 146.806 165.925 181.120 238.975 268.118
62 168.251 189.997 206.435 275.419 309.222
63 192.828 217.562 235.288 317.420 356.627

64 220.996 249.127 268.174 365.827 411.300
65 253.278 285.270 305.657 421.616 474.354
66 290.276 326.657 348.379 485.912 547.075
67 332.678 374.049 397.071 560.014 630.944
68 381.274 428.317 452.570 645.416 727.671

69 436.969 490.457 515.825 743.843 839.227
70 500.800 561.613 587.922 857.279 967.884
MERCER 59
Eur
MERCER
Annual Total Compensation (Comp5)
1.000.000
90P
75P
800.000
MD
600.000
25P

10P
400.000
200.000
0
39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71
Position Class
60
7 Short & Long Term
Incentives
MERCER 61
7
Short & Long Term Incentives
This chapter will present a statistical analysis of the sample regarding Short and Long Term
Incentives attribution.
7.1. SHORT TERM INCENTIVES
7.1.1. Variable Pay (Bonus)
All the companies from the sample grant forms of variable remuneration to all or part of their
structure.
Do employees provide variable bonuses to employees?
Yes 100%
Bonus eligibility
Head of Organization 96%
Executives 98%
Management 90%
Professional Sales 64%
Professional Non-Sales 77%
Para-Professional - "W hite Collar" 53%
Para-Professional - "Blue Collar" 34%
Note: The percentages don’t add up to 100% as some companies provided more than
one answer.
MERCER 62
Concerning Bonus Target level the chart bellow shows that the higher is the Bonus the higher is
the responsibility level associated to the position.
Target Bonus by Job Family

50%
40%
40%
31%
29% 30% 30%
30%
24% 24%
21%
20% 20%
20% 18% 19%
18%
17%
15% 15% 15% 16%
13% 14%
11% 11%
10% 11% 9%
10% 8%
5% 4%
0%
Head of Executives Management Professional Sales Professional Non- Para-Professional Para-Professional
Organization Sales - "White Collar" - "Blue Collar"
25th Percentile Average Median 75th Percentile
Maximum Bonus by Job Family

80%
60%
60%
48%
40% 40% 40%

40%
33%
31% 30% 31% 30%
29%
25% 26% 26% 25%
23% 23%
20% 20% 20%
20%
15% 14% 14% 15%
11%
9%
7% 7%
0%
MERCER 63
Motivations for Bonus attribution are consistent across position levels, since in all levels the
majority of companies base bonus attribution on individual and organization results.
On what are Bonuses based on?
100%
80% 81%
80% 79%
80% 77%
69% 71%
60%
40%
23%
20% 17% 17% 15%
15% 14%
12% 13%
8% 6% 8%
5% 6%
4%
0%
Business Unit / Organization Performance Individual Performance Both
Regarding frequency of bonus payment in most cases they are provided annually.
7.1.2. SaIes Incentives
Around 63% of the sample declared to grant Sales Incentives to their employees.
Do organizations pay sales incentives to any of their

employees?
Yes 63%
No 37%
MERCER 64
Sales incentives eligibility
Head of Sales 76%
Regional Manager 70%
Account Manager 79%
Senior Sales Representative 85%
Sales Representative 96%
Sales Trainee 65%
one answer.
On what are Sales Incentives based on?
80%
65%
60% 56% 57% 56%
55%
47%
44%
40% 39%
40% 37% 37%
35%
20%
16%
7%
5% 4%
0% 0%
0%
Head of Sales Regional Manager Account Manager Senior Sales Sales Representative Sales Trainee
Representative
Business Unit/ Organization Performance Individual Performance Both
MERCER 65
How frequently do organizations pay sales incentives to employees?
60%
55% 54%
50%
40%
40% 39% 38% 38%
35%
33% 33%
31%
27%
22%
20% 18%
15% 15% 15%
11% 11% 11% 10%
8% 8%
0%
0%
Head of Sales Regional Manager Account Manager Senior Sales Sales Representative Sales Trainee
Representative
Annually Semi-Annually Quarterly Monthly
Sales Incentives attribution, on the opposite of Bonus, has a monthly or quarterly periodicity for
most eligible positions for this benefit.
7.1.3. Profit Sharing
In the sample, only 11% of companies provide profit sharing to employees.
7.2. LONG TERM INCENTIVES
Long Term Incentives attribution isn’t still a generalised practice in the analysed sample, since
only 26% grant it to their employees. As expected, this type of benefit is much more frequent in
higher responsibility levels.
Do organizations pay sales incentives to any of their

employees?
Yes 26%
No 74%
MERCER 66
LTI eligibility
Head of Organization 100%
Executives 82%
Management 54%
Professional Sales 31%
Professional Non-Sales 35%
7.2.1. Share Options
From the companies that provide Long Term Incentives to their employee, 72% grant Share
Options Plans.
7.2.2. Share Plans
Only 27% of the companies provide Share Plans to employees.
MERCER 67
8 Benefits Prevalence
MERCER 68
8
Benefits Prevalence
This chapter presents a benefits practices statistic analysis of the companies included in the
sample of Hi-Tech / Telecommunications study.
8.1. SICK PAY
Sick Pay is a payment provided to employees to replace wages during periods in which the
employee is absent from work because of illness or personal injury. Sick pay is taxable income
to the employee.
Around 57% of the sample provides the employees with sick pay.
What is the value of the sick pay benefit equal to?
Percentage of gross base salary 32%
Percentage of net base salary 53%
The majority of companies (92%) that provide this benefit pay 35% of the employee Base
Salary.
The percentage paid by the company is:
= 35% 92%
< 35% 8%
Typically companies that grant this benefit in the analysed sample do not differentiate by
seniority or by other criterion, giving it in equal way to all employees (89%).
MERCER 69

The percentage is:
The same for all employees 89%
Other 11%
Note: The condition “Other” includes salary level.
8.2. MEDICAL PLAN
A Medical Plan is an insurance policy which provides cover for the cost of private medical
treatment. The policy may be taken out personally or individuals may benefit from a company-
wide policy taken out by their employer.
The Medical Plan is a standard benefit, provided in 94% of the companies from the from the
survey sample.
Of the analysed companies that grant this benefit, 54% covers not only the employee, but also of
their spouse and children.
Who is eligible to join the medical scheme?
Employee Only 44%
Employee and Children 3%
Employee and Family 54%
The annual cost of the sample’s Medical Plan is represented in the following table:
25th 75th
Average Median
Percentile Percentile
Employee 330 € 383 € 388 € 467 €
Spouse 313 € 363 € 366 € 409 €
Children 221 € 271 € 285 € 335 €
MERCER 70
In the next table it’s represented the percentage of companies in which employee’s contribution
doesn’t exist:
Percentage of
Companies
Employee 87%
Spouse 71%
Children 83%
Most Plans are managed in reimbursement with an agreed provider’s network system (77%).
In what kind of system is the medical plan managed?
Reimbursement 23%
Reimbursement with an agreed providers

77%
network (Managed Care)
The following table shows the percentage of companies that provide each coverage.
Percentage of
Medical Plan Covering
Companies
Hospitalization 100%
Ambulatory Assistance 84%
Drugs and Medicines 79%
Stomatology 89%
Prostheses 76%
Eyeglasses and lenses 58%
Delivery:
Normal Delivery 82%
Caesarian Section 71%
MERCER 71
8.3. PERSONAL ACCIDENT INSURANCE
A Personal Accident Insurance is an insurance policy which, in return for regular premiums, pays
a specific sum in the event of death, loss of sight or limbs or other permanent disablement due
to an accident.
The Personal Accident Insurance is provided to employees in around 40% of the sample.
Complementary coverings in the insurance benefit (besides the

death coveraring)
Disability 83%
Hospital and repatriation expenses 58%
Funeral expenses 58%
Other 17%
one answer.
Other coverages associated to Personal Accidents Insurance include death and permanent
disability by circulation accident, luggage theft, serious accidents, natural catastrophes, and war
risks.
From the universe of companies who provide this benefit, the capital is variable in 78% having
the base salary as reference in 78% of them.
Type of insured amount
Fixed 22%
Variable 78%
Fixed 22%
Variable 78%
MERCER 72
8.4. LIFE ASSURANCE
Life Assurance is an insurance policy which, in return for the payment of regular premiums, pays
a lump sum on the death of the insured. In the case of policies limited to investments which have
a cash value, in addition to life cover, a savings element provides benefits which are payable
before death.
In terms of the Life Assurance, 62% of the sample provides this benefit to employees.
From the universe of companies providing this benefit, 90% of them also cover disability
situations, 90% cover accidental death, 70% of them also cover accidental disability, and 38%
cover circulation accident.
Apart from death, what is also covered in the total costs of this
benefit?
Disability 90%
Accidental death 90%
Accidental disability 79%
Circulation Accident 38%

one answer.
In the majority of companies providing this benefit, the life assurance capital is variable (74%)
and in 83% the insurance is based on Basis Salary only.
Fixed 26%
Variable 74%
MERCER 73
If the capital insured is variable, what does the capital relate to?
Base salary 83%
Base salary plus Bonus 13%
Other 4%
When Life insurance presents an insured capital variable, the higher values are for coverages of
Accidental Disability followed by accidental death.
Number of Monthly Payments per Coverage Type

60
56
53
50
40 38
36 35 36
30 28 27 28 28 28
25 25
23
20
17
14
10
0
Base coverage (death) Supplemental Disability Supplemental Accidental death Supplemental Accidental
Disability
8.5. RETIREMENT PLAN
Pension plans are a form of "deferred compensation" and became popular in the United States
during World War II, when wage freezes prohibited outright increases in workers' pay. In the next
decades became generalized in most of the western economies.
From our survey sample, 40% of the participant companies have a Retirement Plan.
MERCER 74
The following tables present the information provided by the sample regarding the Retirement
Plan.
Regarding type of Retirement Plan, 47% of plans are Defined Contribution plans.
Type of Pension Plan
Defined Benefit Scheme 53%
Defined Contribution Scheme 47%
Next are presented the benefits predominance granted in the plans analysed, divided by type of
Plan:
Defined
Benefit Defined Benefit
Contribution
Normal retirement 100% 100%
Disability 80% 78%
Death in service 80% 44%
Death after retirement 40% 44%
Early Retirement 0% 33%
Pre-retirement 10% 22%
Pensionable Salary includes in most cases the Base Salary:
Defined
Pensionable salary includes Defined Benefit
Contribution
Base Salary 60% 56%
Base Salary + Other Fixed Compensation 30% 22%
Base Salary + Other 10% 22%
MERCER 75
Most Defined Benefit Plans do not provide the existence of Acquired Rights to the employees.
The reverse happens in Defined Contribution Plans.
Defined
Has the Plan acquired rights? Defined Benefit
Contribution
Yes 29% 83%
No 71% 17%
In most cases Pensionable Salary in Defined Benefit Plans is calculated using the last monthly
pensionable salary (63%).
The Pensionable Salary in Defined Benefit Plan are calculated

using:
The last monthly pensionable salary 63%
The last yearly pensionable salary 12%
Salary Average 25%
For Defined Contribution Plans, the company contribution is in most cases fixed (57%).
Company contribution in Defined Contribution Plan is
Fixed 57%
Variable depending on Employees Contributions 43%
When the company contribution is Fixed, in 67% of cases is less or equal to 2% of pensionable
salary, and in 33% of cases contribution varies between 2% and 4%.
When organization contribution is fixed
2% 67%
Organization Contributions
]2%; 4%] 33%
MERCER 76
Around 57% of Defined Contribution plans foresee incentive contributions against employee
contributions:
Does the Defined Contribution plan foresee incentive

contributions?
Yes 57%
No 43%
For all types of Plan analysed, the main Financing Vehicle is a Pension Fund.
Defined
The retirement plan financed through Defined Benefit
Contribution
Insurance 10% 29%
Pension Fund 80% 57%
Accounting reserve 10% 14%
8.6. HOLIDAYS
By definition, Holiday means a leisure time away from work devoted to rest or pleasure. Some
companies provide to employees the right to enjoy more than the legal holiday days.
In the sample, 49% of the companies provides to employees extra vacation days. The following
table represents the number of extra days employees have:
Num ber of ext ra bacat ion days grant ed
1 35%
]1; 2] 17%
>2 48%
MERCER 77
From the companies that provide more than two extra holiday days, the average number of extra
days provided are 3,6.
8.7. SUBSCRIPTIONS
Only 13% of the companies participating in this survey pay for the employees professional
association subscriptions, and around 17% pays the subscriptions in some leisure or sport
activity.
8.8. EDUCATION
Around 34% of the analysed companies support a percentage (or value) on expenses related to
employee’s education. Companies provide, in average, about 66% of total education cost,
having set maximum values in some cases.
th th
25 Percentile Average Median 75 Percentile
Contribution Percentage 50% 66% 60% 78%
In what concerns to scholar allowances attributed to employees children, only 13% of the
companies participating in this survey provide this benefit to employees, not being therefore a
market practice.
About 9% of the companies grant nursery allowances.
8.9. MOBILE PHONE
In the sample, the average monthly plafond for this benefit is, 69 € as stated below:
th th
Meal Allowance (monthly

51 € 69 € 66 € 88 €
allowance)
MERCER 78
8.10. DISCOUNTS ON COMPANY PRODUCTS
About 38% of the sample discounts on company products are granted to employees. From the
companies who provide it, the average discount on company products is 18%.
th th
Contribuition Percentage 10% 22% 12% 30%
8.11. BENEFITS IN CASE OF WORK REDUNDANCY
From the analysed companies, only 30% offers complementary compensations, over the legal
requirements, in case of job redundancy.
Number of monthly salaries
]1; 1,5] 62%
]1,5; 2] 38%
Do organizations provide outplacement to employees who leave

the company involuntarily?
Yes 71%
No 29%
8.12. MEALS
Meal allowance is a standard benefit in Portugal, independently of the analysed sector. The
following table presents the monthly costs in Meal Allowances per employee:
th th
Meal Allowance (monthly

130 € 153 € 148 € 169 €
allowance)
MERCER 79
All participants companies pay Meal Allowance values above the minimum required by law
(4,27€ / day). The following table shows that 52% of companies provide more than the minimum
non taxable value (6,41€ / day).
Meal allowance value
Higher than minimum non taxable 52%
Minimum non taxable 8%
Lower than minimum non taxable 40%
8.13. LOANS / ADVANCE PAYMENTS
Loans are a benefit sometimes used by companies, to provide assistance to employees in

certain situations.
Nevertheless, only 21% of the sample, grants loans / advance payments to employees. They are
granted mostly with the following purposes:
Company
Loan type
Percentage
Emergency Situations 70%
Education 40%
Personal Issues 60%
Personal computer acquisition 40%
Hospitalisation Expenses 40%
Housing 20%
Car acquisition 30%
Other 10%
Note1: The percentages don’t add up to 100% as some companies provided more than
one answer.
Note2: The condition “Other” refers to loan attribution and/ or advance payments for
Social Security advance payments.
MERCER 80
8.14. COMPANY CAR
Company Car is a benefit granted by 91% of the survey participants to some part of their
workforce and the main details are presented in the following tables.
In most companies car is provided for business and personal use.
Job Family Business and Personal Use Business Use Only
Head of Organization 95% 5%
Executives 92% 8%
Management 91% 9%
Professional Sales 77% 23%
Professional Non-Sales 87% 13%
For higher positions car is provided according to status / seniority.
Job Family Status / Seniority Business Need
Head of Organization 81% 33%
Executives 77% 35%
Management 72% 44%
Professional Sales 40% 77%
Professional Non-Sales 58% 67%

Number of years for car replacement in most companies is equal or superior to 4 years in all job
families. Regarding number of kilometres for replacement is mainly below 120.000 km.
MERCER 81
Replacement Policy
Number of Years Number of Kilometres

Job Family
<4 4 120.000 > 120.000
Head of Organization 22% 78% 81% 19%
Executives 18% 82% 80% 20%
Management 18% 82% 73% 27%
Professional Sales 17% 83% 67% 33%
Professional Non-Sales 22% 78% 82% 18%
LTR / OVR are the kind of financing that most companies choose (68%), face to other
alternatives of acquisition.
Policies for acquiring vehicles
Acquisition (fleet own) 20%
LTR / OVR 68%
Leasing 12%
Companies provide fuel mostly for total use of the employee.
Fuel financed by the organization
Business Fuel and

Job Family Business Fuel Only All Fuel Part of Fuel for Private
Use
Head of Organization 24% 70% 6%
Executives 26% 65% 9%
Management 31% 62% 7%
Professional Sales 33% 54% 13%
Professional Non-Sales 37% 52% 11%
MERCER 82
Most companies do not allow employees to purchase the car at the of the replacement period
(58%).
Do organizations allow employees to purchase the car at the

end of the replacement period?
Yes 42%
No 58%
Only a few companies (24%) provide cash allowances instead of car attribution.
Do employees have the option of a cash allowance instead of a

company car?
Yes 24%
No 76%
Regarding Car Policy, analysing the collected information we can understand some trends, in
particular related to car brands and to monthly values of rental costs, or price and fuel according
to the job family of employees who have this benefit.
Car Distribution by Brand

Audi
Others 6%
11% BMW
9%
Citroen
3%
VW
17%
Ford
12%
Mercedes
3%
Nissan
3%
Renault
15% Opel
13%
Peugeot
8%
Note: The condition “Others” includes the following brands: Alfa Romeo, Chevrolet, Dodge, Fiat, Honda, Hyundai, Kia, Lancia,
Lexus, Mazda, Mini, Mitsubishi, Saab, Seat, Skoda, Smart, Toyota, and Volvo.
MERCER 83
The following graph present the car models most used in the sample:
Car Distribution by Model
Golf
VW
Passat
Renault
Megane
Clio
Peugeot
207
307
Corsa
Opel
Astra
Qashqai
Nissan
Qashqai+2
C220
Mercedes
C250
Focus
Ford
Fiesta
C4
Citroën
C5
320D
BMW
520D
A4
Audi
A3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1st Model 2nd Model
MERCER 84
8.15. OTHER BENEFITS
Percentage of
Benefit type
Organizations
Check up 41%
Employee assistance programs 14%
Health promotion programs 14%
Medical assistance in the organization facilities 50%
Social passe 5%
Language classes 45%
Flexible timetable 45%
Birthday 18%
Christmas, birthday or wedding commemorative

36%
basket
Other 41%
The condition “Other” includes several benefits, such as, travel Insurance, birthday gifts
Christmas presents for employees’ children, flowers at births, Work-Life Balance programs,
Chiropractor, fruit in the workplace, among others.
MERCER 85
8.16. BENEFITS COMPARISON
The following analysis compares the attribution of benefits in Hi-Tech / Telecommunications

sector over General Market practices:
Hi-Tech vs. General Market 2011
91%
Company Cars
91%
Loans/ Advance 26%

Payments 21%
22%
Redundancy Benefits
30%
Discounts on 57%
Company Products 38%
38%
Education
34%
18%
Subscriptions
13%
42%
Holidays
49%
40%
Retirement Plan
40%
71%
Life Assurance
62%
Personal Accident 48%

Insurance 40%
82%
Medical Plan
94%
39%
Sick Pay
57%
0% 20% 40% 60% 80% 100%
Hi-Tech General Market
MERCER 86
9 Glossary
10 Conclusions
MERCER 87

9
Glossary
Below please find details of the standards used in the survey.
9.1. STATISTICS
25th Percentile – The data point that is higher than 25% of all other data in the sample when ranked
from low to high. Also known as the first quartile.
Median – The data point that is higher than 50% of all other data in the sample when ranked from low to
high. Also known as the 50th percentile.
75th Percentile – The data point that is higher than 75% of all other data in the sample when ranked
from low to high. Also known as the third quartile.
Average – The sum of all data reported divided by the number of observations in the sample. Also
known as average.
Receiving Item (Count Obs / Orgs) – The number of employees / organizations receiving the
compensation or benefit item. Each item, such as base salary or incentive amount, is analyzed individually
using the data reported for that item only. If an organization did not provide a piece of data for a position,
this organization’s information is not included in the calculation of the statistics. Therefore the number
receiving the item may differ by item.
Frequency (% Obs / Orgs) – The percentage of the employees / organizations actually receiving the
item based on the total number of employees / organizations in the position.
Market Regressed Line – The result of applying one of several mathematical models to fit a smooth
curve through a series of graphed "X/Y" points (representing IPE Position Class and a compensation
figure respectively) such that the curve best represents the overall trend in those points.
9.2. AGGREGATE COMPENSATION VALUES
These values may appear in either, or both, PayMonitor and pdf reports.
Annual Base Salary (Comp1 Actual) – Includes annualized base salary (Monthly Base Salary x
Number of Months Paid).
MERCER 88
Annual Guaranteed Cash (Comp2 Actual) – Includes Comp1 Actual plus the annualized value of
guaranteed allowances and cash benefits.
Annual Total Cash (Comp3 Actual) – Includes Comp2 Actual plus the annualized value of any
actual Short-term Incentive, Sales Incentive, Profit Sharing, or Other Incentive awards. The figures
reported reflect the actual amounts of the last awards received.
Annual Total Cash (Comp3 Target) – Includes Comp2 plus the annualized value of any target Short-
term Incentive, Sales Incentive, Profit Sharing, or Other Incentive awards. The figures reported reflect the
target amounts applicable to the incumbent. Only incumbents for whom we have a valid response to STI
Eligible are included in this sample.
Annual Total Direct Comp (Comp4 Actual) – Includes Comp3 Actual plus the annualized value of
any Long-term Incentive awards.
Annual Total Remuneration (Comp5 Actual) – Includes Comp4 Actual plus the annualized value of
the benefits: retirement plan, life and medical insurance, motor vehicle, etc.
9.3. COMPENSATION ITEMS
These values may appear in either, or both, PayMonitor and pdf reports.
Base Salary Items (Comp1)

Monthly Base Salary – The gross monthly base salary as of the data effective date, excluding
any allowances.
Number of Months Paid (Including Fixed Bonus) – The number of times the incumbent
receives monthly base salary in a full year including Fixed / Guaranteed Bonus (e.g. 13 months =
13).
Guaranteed Cash Items (Comp2)

Transportation Allowance – The annual guaranteed cash allowance given to incumbents who
are not eligible for company car to subsidize transportation expenses to and from the workplace or
other business-related travel requirements (e.g. to take up public transport, gasoline consumption,
road tax, parking, etc.).
Meal Allowance – The annual guaranteed cash allowance provided for subsidized meals or
luncheon vouchers.
Tenure – The annual guaranteed cash allowance given to incumbents according to their years of
service.
IHT – Stands for "Isenção de Horário de Trabalho", or in English "Work Schedule Exemption".
Refers to the annual guaranteed cash allowance given to employees who are exempt from Work
Schedule as their job requires so.
MERCER 89
Other Guaranteed Allowances (gross) – Any net annual guaranteed cash allowance not
specified above.
Other Guaranteed Allowances (net) – Any gross annual guaranteed cash allowance not
specified above
Annual Total Cash Items (Comp3)

Bonus Amount (Actual) – All payments received over the 12-month period ending on the data
effective date, which are associated with individual, team, and / or corporate performance.
Sales Incentive Amount (Actual) – All payments received over the 12-month period ending
on the data effective date, which are associated with sales achievement.
Bonus Amount (Target) – The target amount of the Short-term Incentive award, associated
with expected individual, team, and/or corporate performance over the next 12-month period.
Sales Incentive Amount (Target) – The target amount of the Sales Incentive award,
associated with sales achievement over the next 12-month period.
Bonus Amount (Maximum) – The maximum Bonus award, associated with expected
individual, team, and / or corporate performance over the next 12-month period.
Annual Long-term Incentives Items (Comp4)

Stock / Share Option Plans – Stock / Share Options allow for the purchase of stock at a fixed
price over a specified period. The exercise price (known also as “strike” or “subscription” price) is
often equal to the market price on the date of grant, but may be less than (with discount) or
greater than (with premium) the market price on the date of grant.
Share Appreciation Rights (SARs) - Share Appreciation Rights provide an incumbent with
the appreciation in market value of the share. They may be paid out in cash, stock, or a
combination of cash and stock. No investment on the part of the incumbent is required. Share
Appreciation Rights include Phantom Appreciation Shares. Phantom Appreciation Shares are an
award denominated in hypothetical shares, the value of which is based on an increase in actual
share value or another measure of organization value (e.g., book value). There are three types of
Share Appreciation Rights:
- Freestanding - SAR grant that is not attached to a stock / share option.
- Limited - SAR that is exercisable only upon the occurrence of a specific event such as
a change in control.
- Tandem - SAR that is granted with a stock / share option. The exercise of one cancels
the other.
Stock / Share / Share Unit Awards - Conditional grants of notional, actual or phantom shares
of stock with vesting contingent upon employment for a specified period of time or achievement of
specified performance goals over a multi-year performance period. The value of each share
depends upon the market value of the share at the end of the vesting period. Share Awards
MERCER 90
include those that are commonly referred to as Restricted Stock, Restricted Stock Units,
Performance Shares, Performance Share Units, or Phantom Full Value Shares.
Performance Units - Conditional grant denominated in units other than notional or actual
shares, with payment contingent upon achievement of specified performance goals over a multi-
year performance period. Performance Units are cash-denominated and not tied to the price of a
share of stock. Although units are usually cash-denominated, their value may also be based on
other constructs, such as dividends or EPS (Earnings Per Share).
Long-term Cash - A pre-determined cash amount paid out contingent upon achievement of
specified performance goals over a multi-year performance period.
Annual Total Remuneration Items (Comp5)

Pension Plan – The annual amount provided by the company to employees Pension Plan.
Defined Benefit Pension – Value calculated which reflects the percentage of salary one would
need to place in a retirement account to substitute for the benefits expected to emerge from the
retirement plan. The contribution level is based on the value of the benefit being earned in the
year following the valuation date.
Defined Contribution Pension – The annual amount of the company’s contribution to
company-sponsored defined contribution pension programs.
Share Purchase Plan – The annual value of the discount that employee can obtain on buying
company shares. Usually the company imposes a limit on amount that employee can use to buy
shares.
Medical Plan – The annual value provided by the company for medical (including clinical and
hospitalization) and dental coverage to the employee.
Life Insurance – The annual value provided by the company for accident, life insurance and
disability coverages to the employee.
Car Value – The annual value provided to the incumbent, by the company, for motor vehicles.
This value could take the form of a lease payment on a vehicle, an allowance to reimburse an
employee, or a purchase of a vehicle (in this case, a valuation formula is applied based on
information provided).
Fuel – The annual value provided to the incumbent for fuel costs.
Toll and Park Expenses – The annual value provided by the company destined to toll and
park expenses.
Mobile phone – The annual value given to employee for mobile plafond.
Credit Card – The annual value given to employee regarding credit card plafond for personal
expenses.
MERCER 91
Mercer (Portugal) Lda.
Edifício Monumental
Av. Fontes Pereira de Melo, 51 3º A-E
1050-120 Lisboa
351 21 3113700
92

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TOTAL COMPENSATION

2. Methodology and Concepts .......................................................................................6

3. Participant Profile ....................................................................................................29

4. Salary Increase .......................................................................................................37

5. Market Analysis of Total Compensation by Position Title.........................................45

6. Market Analysis of Total Compensation by Position Class.......................................53

7. Short & Long Term Incentives .................................................................................62

The study will focus in three different analyses:

b) Analysis by Position Class, statistical analysis by functional content, developed through

Hi-Tech / Telecommunications Total Compensation Analysis by Position Title

Hi-Tech / Telecommunications Total Compensation Analysis by Position Class

2. Job Descriptions Elaboration of Job Descriptions, based in Mission and

3. Currency Salary Data in Euros, annual gross and when net

4. Job Matching Accomplished with Human Resources elements, with

Responsibilities Dimension (Organization Impact

Responsibility Level (Responsibility and Interaction

Job Complexity (Qualification, Problem Resolution

2.2. COMPENSATION CONCEPTS

The Analysis was made based in the following compensation concepts:

COMP4 – TOTAL CASH (Real) + LONG TERM INCENTIVES

MUPC, Definition and Job Description

Companies and Observations

Market values are presented according to the following statistical lines:

Average – Average of the values included in the sample;

2.4. BENEFIT POLICIES AND PRINCIPLES OF VALUATION

2.4.1. Mandatory Social Benefits

Social Security Contributions

Employer’s registration in Social Security is mandatory, as well as the registration of employees

Annual growth table: Salary average portion:

Note: SSP – Social Support Index (Indexante dos Apoios Sociais).

New Formula – Law Decree 187/2007, June 1st 2007

Pension = (C1 x P1 + C2 x P2) / C

c) The beneficiaries whose contributions to Social Security started after 31/12/2001:

In sort: medical, surgical, pharmaceutical, hospital assistance, or any others,

2.4.2. Non Mandatory Social Benefits

The main factors that contribute for this growth are:

Personal Accident Insurance

2.4.5. Other Benefits

2.6. MERCER INTERNATIONAL POSITION EVALUATION SYSTEM

Communication frequently required in the position, within as well as outside of

Personal Driver Executive Secretary General Manager Head of Organisation

Legal Assistant Senior Legal Counsel Head of Legal

Legal Counsel Legal Manager

Total Compensation – Hi-Tech / Telecommunications 2011

Head of Public Relations

Junior Human Human Resources Head of Human

Senior HR Head of Human

HR Assistant / Personnel Human Resources

Compensation & Compensation &

Training & Development Training & Development

Head of Finance &

Head of Finance &

Treasury Analyst Treasury Manager

Credit & Collections Credit & Collections

Credit & Collections

Total Compensation – Hi-Tech / Telecommunications 2011

Junior Accountant Accountant Senior Auditor

Senior Accountant Controller

Senior Financial Analyst

Senior Business Head of Business

Junior Business Business Consultant

Junior Technical Senior Technical Technical Consultant