2015 REGIONAL SENIOR EXECUTIVE REWARD SURVEYMERCER EXECUTIVE REMUNERATION GUIDES (MERG)CHINA, HONG KONG, INDIA, JAPAN AND SINGAPORE

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WHY WE DEVELOPED MERG FOR ASIAOver the years, Mercer has been recognized for our work with the Total Remuneration Survey (TRS) - immensely useful for organizations who want a good overview of salary practices for standard positions in a company.

With recent years seeing a the further expansion of large organizations into Asia, we have also observed the need for a specialized executive remuneration guide.

Mercer Executive Remuneration Guides (MERG) is hence an excellent reference for policies, practices and competitive remuneration data specific to top-tier executives in larger organizations.

MERG - AN EXCLUSIVE EXECUTIVE SURVEYMERG was specially created to cater to organizations that:

1. Require country-specific insight into full remuneration practices and policies tailored to top-tier executives

2. Need the details of compensation and benefits for specific executive levels - i.e. separate data for CEO, CFO, Group Financial Controller etc.

3. Are of a substantial organizational size

4. Are global or regional in nature (i.e with operations that extend out of the home country)

SURVEY FEATURES• Coverage:

1. Over 100 benchmark top positions at the CEO level and the next three reporting levels

2. 5 major markets across Asia – China, Hong Kong, India, Japan and Singapore

3. Full reward package including cash, long term incentives and benefits

• Flexibility - Mercer WIN allows you to analyse the data by job position, job family, job size, or a combination of these approaches.

• Reliability - Consistent participation by organisations creates a solid representation of multinational organisations in each country.

• Expert advice - Local Mercer experts work closely with participating organisations and provide assistance in the job matching and/or job evaluation process.

MERCER EXECUTIVE REMUNERATION GUIDES MERCER’S NEW ASIA SENIOR EXECUTIVE REWARD SURVEY WILL PROVIDE MARKET DATA TO SUPPORT EXECUTIVE REMUNERATION PROGRAMS FOR LEADING ORGANIZATIONS IN ASIA.

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BENCHMARK POSITIONS AND JOB FAMILIESInformation will be captured at the group, divisional, regional, and country levels. Survey roles are underpinned by Mercer’s International Position Evaluation (IPE) tool, ensuring that positions are accurately compared on a like-for-like basis.

f TOP MANAGEMENT • Chairman* • Chairman and Chief Executive Officer (CEO)* • Vice Chairman of the Board* • Chief Executive Officer#

• Deputy General Manager • Top Business Unit Executive • Top Function Executive** • Head of Function**

f CORPORATE AFFAIRS • Corporate Secretary • Head of Regulatory Affairs • Head of Compliance • Head of Corporate Planning • Head of Government Relations • Head of Public Relations • Head of Investor Relations

f FINANCE & ADMINISTRATION • Head of Shared Services

f ADMINISTRATION • Top Operations Executive#

• Head of Operations • Head of Project Management

f CONTACT CENTRE • Top Customer Service Executive#

• Head of Customer Service

f SALES/MARKETING/ SALES & MARKETING

• Top Sales and Marketing Executive#

• Head of Business Development • Top Marketing Executive#

• Head of Marketing • Top Sales Executive#

• Head of Sales

f ENGINEERING • Top Engineering Executive#

• Head of Engineering (General) • Head of Civil Engineering

f LEGAL • Top Legal Executive/General Counsel#

• Head of Legal

f HUMAN RESOURCES • Top Human Resources Executive#

• Head of Human Resources - Generalist • Head of Compensation & Benefits • Head of Training and Development

f FINANCE • Chief Financial Officer#

• Head of Finance • Head of Risk Management • Head of Treasury • Head of Credit & Collections • Head of Audit • Controller • Head of Financial Planning / Analysis • Head of Mergers & Acquisitions • Head of Tax

f INFORMATION TECHNOLOGY • Chief Information Officer#

• Head of Information Systems • Head of IT Operations • Head of IT Support

f R&D • Head of Research & Development#

f MANUFACTURING • Top Manufacturing Executive#

• Head of Production

f SUPPLY & LOGISTICS • Top Supply and Logistics Executive#

• Head of Logistics Management

f QUALITY (NOT APPLICABLE FOR HONG KONG)

• Head of Quality#

f INSURANCE (NOT APPLICABLE FOR CHINA)

• Top Actuarial Executive • Head Actuary

*Applicable only for Japan** Not Applicable for Singapore & China# Available breakdowns by Group/Division/Region/Country level)

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Data delivered online through Mercer WIN®, accessible anywhere, at any time — fully customise searches and statistics according to your individual needs, and receive instant comparisons of your organisation’s data against the market.

A general review of typical salary practices and compensation mix, employment trends, and other economic indicators related to human resource management decisions in the region and/or at the country level.

• Salary increase trends.

• Short-term incentives.

• Long-term incentives.

• Key benefits (life insurance, long-term disability, private medical insurance, company cars).

Custom statistics tailored to your needs using Mercer WIN, such as:

• Peer group (minimum of 10 organisations).

• Group/subsidiary role.

• Revenue/employee number and more.

Regression statistics and graphs by:

• Position class.

• Functional area for each of the major

• Components of total remuneration.

• Industry sector.

• Detailed market analysis of individual survey positions.

• Each role displayed in survey tables for each element of compensation.

Annual survey meetings are organised at the country level to help you make the most of your data and to review key survey findings.

WHAT DO YOU RECEIVE?

ONLINE ACCESS

SURVEY OVERVIEW

SALARY POLICY AND INCENTIVES AND BENEFITS OVERVIEW — TYPICAL PRACTICES

CUSTOM ANALYSIS

MARKET REGRESSION

SUMMARY TABLES AND ACTUAL MARKET DATA

SURVEY MEETINGS (FACE -TO -FACE OR GENERAL MEETINGS)

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SAMPLE REMUNERATION DATA TABLEThe following information will be provided for each survey role in the report.

01 September 2014 Actual Market Data Japan MERG

Position Code: 100.000.110 No. of Organizations: 23Position Title: Chairman No. of Observations: 23Position Class: 68 - 85 Currency: Japanese Yen

Position Description: Lead the Board of Directors to ensure that the Board achieves its mandate of setting the overall direction of theorganization and representing the interests of shareholders. Please note that associated organization type should be Parent/Independent.

Compensation data displayed inwhole numbers

Actual Data of Recipients Only Receiving Item

Description 25th

PercentileMedian Average 75th

PercentileNo. of Orgs No. of Obs %

ObsPosition Class 72 76 76 79 23 23 100ANNUAL BASE SALARY 33,608,640 53,000,004 107,332,568 72,000,000 23 23 100Guaranteed Allowances -- 318,000 339,000 -- 4 4 17ANNUAL GUARANTEED CASH 33,608,640 53,600,004 107,391,524 72,000,000 23 23 100Eligible for STI 12 12 52Variable Bonus (Target) - Amount 7,482,882 15,250,000 24,289,507 30,528,300 10 10 43Variable Bonus (Target) - % of Salary 17.8 32.5 41.1 65.4 10 10 43Variable Bonus (Maximum) - Amount 15,998,400 18,750,000 48,151,889 105,609,600 7 7 30Variable Bonus (Maximum) - % of Salary 40.0 71.0 89.7 125.0 7 7 30ANNUAL TOTAL CASH TARGET 37,160,000 53,600,004 122,137,911 93,865,000 21 21 91Variable Bonus (Actual) - Amount 5,923,295 10,800,000 17,448,523 29,621,760 9 9 39Variable Bonus (Actual) - % of Salary 11.9 31.8 39.8 56.3 9 9 39Other Bonus (Actual) -- -- 102,940,000 -- 3 3 13ANNUAL TOTAL CASH ACTUAL 37,000,000 62,160,000 127,646,164 113,570,000 23 23 100Eligible for LTI 12 12 52Share Option (Appreciation) Plan Value -- -- -- -- 2 2 9Share Plan Value (Service Vesting) -- 31,645,000 33,388,060 -- 4 4 17Share Plan Value (Performance Vesting) -- -- -- -- 2 2 9Cash Plan Value -- -- -- -- 0 0 0Deferred Compensation -- -- -- -- 0 0 0Actual LTI Value - Amount 7,305,100 14,929,200 20,760,362 31,645,000 9 9 39Actual LTI Value - % of Salary 15.7 30.0 39.0 56.5 9 9 39ANNUAL TOTAL DIRECTREMUNERATION

45,608,640 68,004,000 135,769,784 134,200,000 23 23 100

Age 62 67 64 70 20 20 87Tenure 10 26 27 44 19 19 83Note: Only median and mean will be displayed if a significant share of the incumbents is supplied by one organization. See the dataconfidentiality topic in the Methodology section of this report for more details.Level inOrganization

No. ofOrgs

No. ofObs

%Obs

RegionalResponsibility

No. of Orgs No. ofObs

%Obs

Level 1 12 12 67 Global 17 17 74Level 2 4 4 22 Multi Regional 0 0 0Level 3 2 2 11 Regional 6 6 26Level 4 0 0 0Member ofBoard orExecutive

21 21 95

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SAMPLE OF POLICIES AND PRACTICES REPORT

The contents of the Policies and Practices Report (PPR) are specific to each country and each section provides details pertaining to each job level.

To best document each country’s practices and requirements, do note that the format of the final report may be subject to change.

JOB LEVEL DEFINITIONS

• Level 1: Chief Executive Officer

• Level 2: Direct Reports to CEO (e.g. Chief Financial Officer)

• Level 3: Reports to Level 2 (e.g. Group Financial Controller)

• Level 4: Reports to Level 3 (e.g. Country Finance Director)

• Top executives: Levels 1 & 2

• Other executives: Levels 3 & 4

CONTENTS

• Remuneration policies

– Target market pay level

– Changes to remuneration policy based on the various remuneration components (STI, Pension, Long Term incentive, Company Cars) in the past and next 12 months

• Base Salary

– Salary review timelines in the year

– Salary movements (actual and forecast) across the different levels

– Salary decreases/increases planned for in the following year

– Actual salary movements

– Factors determining salary increase

• Bonus (Short Term Incentives)

– Threshold (bonus paid for minimum performance), Target and Maximum Bonus

– Percentage of organizations with threshold/target/maximum bonuses

– Threshold/Target/Maximum bonus as percentage of salary

– Actual Bonus per role as percentage of salary

– Actual bonus payments per role as percentage of salary

– Percentage of individuals that did not receive a bonus

– Actual vs. Target bonus

– Actual vs. Maximum bonus

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– Plan funding

– Bonus plan payout - linked factors such as: performance vs budget, organizational profits, discretionary etc.

– Performance measures

– Plan design – typical performance measures relating to bonus

– Performance measures prevalence

– Performance measures weightage

– Deferred cash compensation

– Cash compensation deferral

• Long Term Incentives (LTI)

– Percentage of organizations offering LTI

– LTI plan eligibility across levels

– Number and types of long term incentive plans

– Quantifying long term incentives

– Grant Policy

– Global or local grant policy

– Pre-existing condition for granting: performance shares/share units, long-term cash plans etc.

– Frequency of grants

– Grant value

– Factors determining long term incentive grant value

– Calculation of long term incentive payments as percentage of base salary

– Long term incentive value allocation as percentage of base salary

– Expected long term incentive grant value

– Vesting Policy

– Vesting schedule

– Vesting period

– Long term incentive awards vesting types

– Maximum grant potential

– Share Ownership Guidelines

– Share ownership requirement levels

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SAMPLE FROM POLICIES & PRACTICES REPORT (PERFORMANCE MEASURES)

Performance Measures

Plan design – Typical performance measure relating to bonus is Corporate Performance as captured in the following table.

Level 1 Level 2 Level 3 Level 4

Corporate Performance 87% 81% 74% 77%Division/Business Unit Performance 18% 30% 33% 27%Regional Performance 4% 9% 11% 9%Individual Financial Performance 4% 19% 7% 9%Individual Non-financial Performance 24% 21% 37% 36%Other 22% 23% 19% 18%No. of Responses 45 43 27 22

Performance measures prevalence – Short-term incentives plans use a range of measures. The most prevalent measure is Other Financial Measures, as captured in the following table.

Level 1 Level 2 Level 3 Level 4

Total Shareholder Return (TSR) 0% 0% 0% 0%Earnings per Share (EPS) 3% 3% 4% 0%EBIT, EBITDA, Net Income 50% 47% 35% 29%Other Financial Measures 66% 68% 83% 94%Other Non-financial Measures 34% 35% 43% 41%No. of Responses 38 34 23 17Note: Some organizations use multiple measures; therefore the total exceeds 100%. Performance measures weight – The table below shows the median weight assigned to each performance measure.

Level 1 Level 2 Level 3 Level 4

Total Shareholder Return (TSR) - - - -Earnings per Share (EPS) - - - -EBIT, EBITDA, Net Income 75% 85% 73% 70%Other Financial Measures 73% 67% 60% 72%Other Non-financial Measures 35% 30% 45% 50%No. of Responses 38 33 23 17Note: Calculations were made for each measure separately; therefore the total may not equal 100%.

sureses

36

3%50%

6%4%

03

47%68%

3

L

Note: *Levels 1 to 4 refer to specific position levels such as CEO, CFO etc as classified in the full report

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SAMPLE FROM POLICIES & PRACTICES REPORT (LONG TERM INCENTIVE GRANT VALUE)

Grant Value Factors determining long-term incentive grant value – Organizations generally base the value of grant on Management Discretion under Stock/Share Options, Restricted Shares/Share Units plans. Job Level is the most prevalent factor to determine grants under Shareholding Association plan.

Stock/ Share

Options

Share Appreciation

Rights (SARs)

Restricted Shares/

Share Units

Performance Shares/

Share Units

Performance Cash Units

Long-term Cash

Shareholding Association

Job Level 10% - 13% 44% - 33% 100%Salary Level 10% - 13% 11% 33% 67% -Reference to Short-term Incentive Earnings

20% - - 11% - 33% -

Reference to Investment Made by the Executive

10% - - - - - -

Fixed Number of Shares/ Share Options

10% - 13% 11% - - -

Management Discretion

50% - 50% 22% 33% - -

Other 30% - 25% 11% 33% - -No. of Responses

10 - 8 9 3 3 4

Note: Some organizations indicated more than one factor; therefore the total exceeds 100%.

0%0%

0% -

%

-

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SURVEY SCHEDULE AND PRICING

COUNTRY PRICES IN USD TENTATIVE TIMELINES (2015)

Questionnaire Distribution

Data Submission

Report Delivery

China • 6,000 (full report w PPR) • 3,000 (PPR only)

17 Jul 18 Sep 1 Dec

Hong Kong • 3,000 (full report w PPR) 2 Jul 30 Sep 16 Nov

India • 6,000 (full report w PPR) • 3,000 (PPR only)

15 Jun 18 Sep 18 Dec

Japan • 6,200 (full report w PPR) 17 Jul 18 Sep 1 Dec

Singapore • 3,000 (full report w PPR) 5 Jun 20 Jul 28 Oct

*Prices above are applicable for MERG participants only. The reports will cost three times the listed price for non-participants.Note: PPR stands for the Policies and Practices Report customized for executives.

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FURTHER INFORMATIONTo obtain more information, please contact your respective consultants here

EXCLUSIVE PROMOTIONSReceive a 25% discount off the total price if you choose to participate and purchase the MERG reports for all countries USD 18,150 (U.P USD 24,200).

Participants of our Total Remuneration Survey (TRS) will enjoy a 50% discount off listed prices for each country.(Not applicable for China. Please contact your consultant for details on China’s promotions.)

Note: Promotion schemes cannot be used at the same time.

CLICK HERE TO PARTICIPATE IN MERG

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ABOUT MERCERMercer’s Talent business segment helps clients address critical issues regarding their people. Our services include consulting and expertise on leadership and organization performance, workforce analytics and planning, communication, rewards and mobility, as well as a full range of best-in-class information and technology solutions.

We provide a full spectrum of executive rewards consulting and information services across the areas of compensation, performance, regulations, and governance. MERG is being conducted across 13 markets in Europe and six countries in Latin America. Effective 2014, MERG has been made available in China, Hong Kong, India, Japan and Singapore.

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