SHRM Poll October 30, 2008 January 6, 2009 SHRM Poll, Executive compensation in light of current financial challenges to the U.S. economy

©SHRM 2008SHRM Poll October 30, 2008SHRM Poll January 6, Has your organization recently restructured or is it planning to restructure its executive compensation pay package? Note: Respondents who answered “Not applicable” or “Don’t know” were excluded from this analysis. n = 237

©SHRM 2008SHRM Poll October 30, 2008SHRM Poll January 6, As a result of the restructuring to your organization’s executive compensation pay package has the overall total compensation of executives, increased, stayed the same or decreased? n = 91 Note: Only respondents whose organizations has recently restructured or planning to restructure their executive compensation pay package were included in this analysis. Respondents who answered “Don’t know” were also excluded from this analysis.

©SHRM 2008SHRM Poll October 30, 2008SHRM Poll January 6, Overall, how much of an impact have the following factors had on the revision of executive compensation pay packages at your organization? n = Note: Only respondents whose organizations has recently restructured or planning to restructure their executive compensation pay package were included in this analysis.

©SHRM 2008SHRM Poll October 30, 2008SHRM Poll January 6, Have the following changes been made to executive compensation pay packages at your organization? YesNo Executive compensation pay packages are more aligned with organization’s performance than before 78%22% Increased internal approval/sign-offs for all executive compensation packages 49%51% Long term incentives plans are used more than before44%56% Executive compensation pay packages are more transparent to shareholders/customers 43%57% Golden parachutes have been eliminated41%59% Sign-on bonuses for executives have been decreased32%68% Sign-on bonuses for executives have been eliminated26%74% Outside consultants review all executive compensation packages 24%76% n = Note: Only respondents whose organizations has recently restructured or planning to restructure their executive compensation pay package were included in this analysis.

©SHRM 2008SHRM Poll October 30, 2008SHRM Poll January 6, Regardless of your organization’s position, practices or policies, in your opinion as an HR professional, to what extent do you agree or disagree with the following statements? Strongly Agree AgreeDisagreeStrongly disagree The compensation of executives in my organization are protected to a greater extent than regular employees 21%29%39%11% Executive compensation pay packages at my organization need to be restructured (i.e., Decreased) in light of the current financial challenges to the U.S. economy 12%35%47%6% Executive compensation pay packages at my organization motivate executives to excel in their jobs 10%62%22%6% Executive compensation pay packages at my organization are not tied into our organization’s performance management system 10%22%43%25% n =

©SHRM 2008SHRM Poll October 30, 2008SHRM Poll January 6, SHRM Poll, Executive compensation in light of challenges to the U.S. economy. Response rate = 14% Sample comprised of 393 randomly selected HR professionals from SHRM’s membership. Margin of error is +/- 5%. Survey fielded the week of January 5, 2009 Methodology