CGIAR Review of Total Compensation May 10, 2004

CGIAR Review of Total Compensation Background Approach Survey Results for Phase 1 Diversity Disclosure Principles Next Steps

Background CGIAR ExCo concluded at its May 2003 meeting that: “The Secretariat working with CBC, should prepare a paper of compensation structures and levels and mechanisms for ensuring transparency. Compensation data on the CGIAR should be compared with those from appropriate comparator organizations. The CGIAR data should be enriched with the expansion of the study to include compensation packages for locally recruited staff. ”

Terms of Reference Drafted in consultation with CBC Approved in January 2004 by ExCo Review was divided into 4 Phases Phase 1-Review of Compensation Structures and Mechanisms for Ensuring Transparency of Internationally Recruited Staff (IRS) Phase 2- Comparison of CGIAR Compensation package for IRS with the Market Phase 3- Review of CGIAR Compensation Structures for Nationally Recruited Staff (NRS) Phase 4- Integrated Results Report

Overall Approach Governance of Project: Steering Group Collaborative and Technical Support: Focal points from each Center, appointed by DG’s SAS-HR Director and G & D Leader Professional Anchor: Sandra Lawrence for overall coordination, technical advice and quality control Survey and analysis: Persis Mathias, Project Leader from Hewitt Associates, Malaysia

Overall Compensation Philosophy for IRS To internationally recruit the best qualified staff To do so, need to address: Often remote location of center Need for enhanced security Limited opportunity for spouse employment Uprooting of families from home country Policies to maintain close contact, both professionally and personally to home country in view of term appointments These factors affect the design of overall package of salary, allowance and benefits

Phase 1- Survey of Compensation Levels Objective To collect and analyze compensation cash, benefits & administration information across the centers and system office of CGIAR To cover research, administrative service and management levels

Scope Mapping IRS mapped to 9 Hewitt based CGIAR composite levels Cash compensation Actual minimum, median & maximum base salary data Bonuses Other cash payments Benefits All employee benefits Salary administration Compensation philosophy & structures

Process and Methodology SURVEY PLANNING SURVEY QUESTIONNAIRE SURVEY ADMINISTRA TION SURVEY ANALYSIS SURVEY DELIVERY Planning - Finalize scope - Develop and ratify level descriptors - Establish project milestones - Establish center focal points Finalized customized questionnair es (Based on ILRI study) Level Equivalence via Hewitt’s level descriptors Electronic data collection, Data entry Sent and explained the questionnair es to all the Centers Data verification Data Clarification - Cash - Benefits Data Analysis Preliminary Analysis Report Generation Report Presentation Communicati on and verification of Level Mapping Report Filled in benefit questionnair es to centers that participated in ILRI study

Hewitt/CGIAR Research Level Indicators Focus on the Role in terms of degree of challenge/complexity in: Scientific Research Resource Management Building collaborations and partnerships Other indicative dimensions included Qualifications & experience Designation/ Position title Quantifiable dimensions

CGIAR Composite Research Level 3 Creation & generation of ideas/solutions for new research areas. Highly innovative research. Developing & linking new tools and methods/ new innovations in one large complex project or several disciplinary areas & operating projects. High level development work leading to a defined product. Exacting & precise science. Scientific Research Resource Management Direction from supervisor/s is largely through planning & direction. Overall resource management. Fairly high level of leadership in the conceptual development of research projects. Oversight of large budgets and expenditures. Plan and play a major role in securing project funding. May be involved with complex reporting for multiple donors. Responsible for overall resource mobilization for projects one is leading, including initiating proposals for large scale long term projects Scientists at this level may carry significant management responsibility or else be recognized as a senior in providing intellectual input and disciplinary expertise to programs/projects. Focus on Role: Degree of challenge / complexity Building collaborations and partnerships

CGIAR Composite Research Level 3 Qualification & experience Other Indicative Dimensions Quantifiable dimensions Indicative designations/ titles  Doctoral course in the assigned subject area  Post doctoral experience of 15 – 20 years  Scientific & Development Recognition  Financial Responsibility  Resource Mobilization  People Management  Project Leader  Senior Scientists

Base Salary Range of Median Base Salary Shows base salary paid across all Centers and the System office at Minimum, Maximum, Median and Mean of each Level across centers Base salary is the actual annual amount paid to individuals based on their level of responsibility Mean is the average of all individual salaries and median is the 50th percentile

Overview Range of Median Base Salary Figures in USD 000's per annum as of Dec 2003 Legend Median Mean MinMax

Total Compensation Comparisons Variations and differences come to light when one looks at the over view of compensation and the method of delivery- cash allowance vs. benefit Some benefits are paid as cash allowances, others are policies In order to approximate total compensation, added all cash payments, quantifiable benefits, estimated pension contribution and cost of insurances

Comparison of 3 Centers

Overview of Median Total Compensation Figures in USD 000's per annum as of Dec 2003 MinMax Legend Median Mean

Benefit Policies Benefits were analyzed from a policy perspective Housing Assistance Children’s Education Club Membership Relocation Benefits Time Off Medical Plans: hospitalization and clinical plans Insurance: Life and Disability Pension & Gratuity Travel Assistance Vacation Travel Center Provided Car Overall policies for benefits are similar but, -variations in plan design details -different delivery methods across benefits

Example of Variation in Plan Detail – Home Leave Staff, spouse and: Authorized dependents below 23 years of age (2 Centers) Dependent and resident children below 24 years (2) Eligible dependents up to 21 years of age (3) Dependent resident children up to grade 12 (1) Spouse or domestic partner, resident children up to 18 years of age (1) All dependents below the age of 26 (1) 4 children (1) Dependents resident at duty station (1) Whole family provided staff also takes leave (1) Spouse or domestic partner and dependent children (1)

Center Pay Structures

Locations Location Spread Internationally recruited staff are spread across 62 countries At some locations as many as 8 centers have staff

Diversity Reviewed base salary differences by Gender Nationality Groupings Part 1- Industrialized Countries Part 11- Developing Countries

To Summarize:  IRS staff at centers and system office mapped to Hewitt based CGIAR composite 9 level scale – 4 research levels, 3 support levels and 2 management levels  Average total compensation USD62,000 at lowest level R1/S1 to USD 217,000 at highest level M2  Similar benefit policies but diversity in plan design, implementation and delivery methods Steering Committee recommends that Results should not be posted on CGIAR web until completion of phase II. However, can be made available to members upon request

Transparency and Disclosure Objective To recommend mechanisms to ensure disclosure of the compensation structures while maintaining confidentiality for the individual staff

Practices of Publicly Funded Organizations Reviewed practices of a sample of organizations, including Multilateral Development Banks, UN, European Commission, Bilateral Agencies All have public disclosure of Salary Structures Benefits Policies General Employment Data Some are disclosed on external web page, others by request Generally do not release any individual’s personal data, the exception being the President or Head of the organization

CGIAR Disclosure Principles Steering Group Recommendations Overview of base salary ranges Benefits policies Basic employment data, e.G. Overall number of staff by employment category All material updated periodically No disclosure of individual staff data

Approach to Phase 2 IRS Comparison to Market Objective To provide a comparison of the current compensation structures with those of comparator organizations particularly those engaged in agricultural research, in private and public sectors, world-wide Content Coverage Compensation packages and salary levels for out posted staff Basket of Comparators National Agriculture Research Organizations (5) Private Sector (2) International Organizations (1 or 2) Target Completion Date: Early 2005

Approach to Phase 3 Nationally Recruited Staff Objective To review key aspects of NRS package Coverage Comparison of NRS with IRS in terms of benefits provided Comparison of NRS to local market based on existing data in selected locations Comparison of NRS across centers in a particular location Target Completion Date: Early 2005

Phase 4 Integrated Results Synthesis and Recommendations Target Completion Date: End 2005