1. 2016 Compensation Trends Steve Treder Senior Vice President Western Management Group

2. Why it matters Attracting, retaining, and motivating talent isn’t only about pay But it sure has a lot to do with pay Measuring labor markets is easier said than done

3. An important legality U.S. Salary Survey Safe Harbor Guidelines –Third party –Aggregate data –Historical data

4. Two Wine Industry surveys The WMG Wine Industry Comp. Survey –250+ jobs, 15 data elements The WBM/WMG Winery Survey –6 jobs, 2 data elements

5. Overview of survey results Multiple variables, multiple looks Most important statistic: sample size Transparency of data sources

6. Napa – Base and Bonus Pay Source WBM Wine Survey

7. Sonoma – Base and Bonus Pay Source WBM Wine Survey

8. Top Sales – Base vs. Geo Source WBM Wine Survey

9. Top Sales – Bonus vs. Geo Source WBM Wine Survey

10. Winemaker – Base & Bonus vs. Case Prod Napa Source WBM Wine Survey

11. Winemaker – Base & Bonus vs. Case Prod Sonoma

12. WMG Wine Industry Compensation Survey Title20162015% change Winemaker 1104,14398,7565.5 Winemaker 2129,230125,2683.2 VP Sales251,403222,99512.7 Tasting Room Manager66,48062,7655.9 Vineyard Manager92,23491,1031.2 Office Manager58,95057,1253.2 Wine Club Manager65,84963,9523.0 Source WMG Wine Industry Compensation Survey

13. WBM Wine Survey Title20162015% change Winemaker 189443883991.2 VP Sales76080759080.2 Tasting Room Manager 49180480442.4 Vineyard Manager64178637560.7 Office Manager60672571256.2 Wine Club Manager 4720949181-4.0 Source WBM Wine Survey

14. Winemaker – by Case Production and Year to Year 2016 2015 Winemaker 1Winemaker 2 Winemaker 1 Winemaker 2 % change Wine 1 % change Wine 2 under 50k1163981298919880612019117.88.1 50 to 991080191348951063171275311.65.8 100 to 499100008136644951411418275.1-3.7 500+9214611548894758111523-2.83.6 Source WMG Wine Industry Compensation Survey

15. Having “the talk” Remember those three fundamentals The value of proactivity Pay is important, but not all-important

16. For more information contact: Donna Bowman donna@wmgnet.com 408 399 4900 x228 Steve Treder steve@wmgnet.com 408 399 4900 x225

17. Top Sales – Base & Bonus Vs Case Prod Napa Source WBM Wine Survey

18. Office Mgr/Supv – Base & Bonus vs. Case Prod Napa Source WBM Wine Survey

19. Tasting Room Mgr – Base and Bonus vs. Case Prod Napa Source WBM Wine Survey

20. Wine Club Mgr – Base & Bonus vs Case Prod Napa Source WBM Wine Survey

21. Vineyard Mgr – Base & Bonus vs Case Prod Napa

22. Top Sales – Base and Bonus vs Case Prod Sonoma

23. Office Mgr/Supv – Base & Bonus vs Case Prod Sonoma

24. Tasting Room Mgr – Base & Bonus vs Case Prod Sonoma

25. Wine Club Mgr – Base & Bonus vs Case Prod Sonoma

26. Geographic Breakouts Average Base Pay by Geo WinemakerTop Sales Tasting Room Mgr Wine Club Mgr Vineyard Mgr Office Mgr Nationwide89,44176,19649,18047,20964,17860,672 Napa104,02690,07461,58457,19878,14270,276 Sonoma98,86887,58754,05653,01465,23962,605 California Other85,67577,01144,37046,38063,08859,438 Central Coast87,01972,08343,20442,88564,83660,928 Washington80,15580,67342,14544,90060,59861,094 Oregon88,72994,50042,65747,205---61,699 Northwest89,50882,03342,31143,03065,66756,019 Midwest65,00040,75042,35737,000---49,286 Northeast52,01344,23035,639---42,41348,075 Mid-Atlantic73,30846,50046,14343,03041,13846,815 Pacific93,67280,23251,48949,50470,42563,325 Source WBM Wine Survey

27. Region Descriptions Mid-Atlantic Region DC, DE, MD, NC, SC, VA, WV Mountain Region CO, MT, UT, WY Midwest Region IA, IL, IN, KS, KY, MI, MN, MO, ND, NE, OH, SD, WI Non-Contiguous US Region AK, GU, HI, PR, US Northeast Region CT, MA, ME, NH, NJ, NY, PA, RI, VT Pacific Region CA NV Northwest Region ID, OR, WA Southeast Region AL, AR, FL, GA, LA, MS, TN Southwest Region AZ, NM, OK, TX