HEALTH WEALTH CAREER

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2017
SHORT-TERM INCENTIVES
AROUND THE WORLD

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SAMPLE

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 1 MERCER'S GLOBAL PUBLICATIONS 148 ASIA PACIFIC EUROPE, MIDDLE EAST, AND 524 Russia–St. Petersburg

TABLE OF CONTENTS
347
149 REGIONAL SUMMARY AFRICA 530 Saudi Arabia
5 INTRODUCTION 155 Australia 348 REGIONAL SUMMARY 536 Serbia
356 Algeria

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6 Report Structure 161 Bangladesh 542 Slovakia
7 Reading the Report 167 China–Beijing 362 Austria 548 Spain
173 China–Chengdu 368 Belgium 554 Sweden
13 SUMMARY OF KEY FINDINGS 179 China–Dalian 374 Bulgaria 560 Switzerland
15 Incentives by Career Level 185 China–Guangdong 380 Croatia 566 Tunisia
19 Incentives by Job Family 191 China–Hangzhou/Ningbo 386 Czech Republic 572 Turkey
27 Historical Trends 197 China–Hefei/Wuhu 392 Denmark 578 Ukraine–Kiev
31 Long-Term Incentives 203 China–Nanjing 398 Egypt 584 United Arab Emirates
209 China–Qingdao 404 Estonia 590 United Kingdom
53 AMERICAS 215 China–Shanghai 410 Finland
54 REGIONAL SUMMARY 221 China–Shenyang/Changchun 416 France 596 ABOUT THIS REPORT

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58 Argentina 227 China–Suzhou/Kunshan 422 Germany 597 Methodology
64 Brazil 233 China–Tianjin 428 Greece 608 Glossary
70 Canada 239 China–Wuhan 434 Hungary 620 About Mercer
76 Chile 245 China–Wuxi 440 Ireland
82 Colombia 251 China–Xiamen/Fuzhou 446 Israel
452 Italy
88
94
100
106
112
118
124
130
Costa Rica
Ecuador
Guatemala
Mexico
Panama
Peru
Puerto Rico
United States
M 257
263
269
275
281
287
293
299
China–Xian
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
458
464
470
476
482
488
494
Kazakhstan–Almaty
Latvia
Lithuania
Morocco
Netherlands
Norway
Poland
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136 Uruguay 305 Philippines 500 Portugal
142 Venezuela 311 Singapore 506 Qatar
317 South Korea 512 Romania
323 Sri Lanka 518 Russia–Moscow
329 Taiwan
335 Thailand
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341 Vietnam
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Short-Term Incentives
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Business
IN TRODUCTION
Multinational corporations, small firms, and organisations around the world all face the same problem: motivating

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their employees to contribute to the group’s success. Although base salary serves as compensation for an
individual’s time and efforts, many employees may regard this transaction as a given and neglect to make their
employer’s objectives their own. In an effort to more closely align individual goals with the organisation’s, many
employers offer short-term incentives (STIs) that reward employees for performance that is above or beyond their
expectations. Although these incentive programmes once were reserved for sales personnel and other employees
that have a high impact on company success, STIs increasingly are available to all types of employees.

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GR ADIEN T PAY
While trend lines indicate that more and more employees are eligible for STIs, there is still a hierarchy to these compensation
schemes. Notably, employers are more likely to offer STIs to individuals at senior career levels (such as professional or management
positions) than other employees. Moreover, individuals in some career tracks — notably, those with a direct impact on corporate or

service roles.

WHAT’S IN A STI ?
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office performance — are more likely to be eligible for STIs than others. In practice, this means that sales and production employees
are more likely to derive a high proportion of their total compensation from STIs than those serving in administrative or customer

There are many forms of short-term incentives, but, generally, they are any payment over a 12-month period that is associated
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with individual, team, and/or corporate performance. Popular types of STI include bonuses, individual incentive plans, and team/unit
performance incentives. They are frequently linked to profitability or revenue growth, and achievement of overall company goals
determines the size of the company bonus pool. STIs are often capped at a fixed amount or percentage of annual base salary (ABS).
By capping these payments, HR and business managers can prevent runaway expenses while achieving higher performance.

Short-term incentives also are responsive to market conditions. For instance, companies in highly competitive markets are more likely
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offer generous STIs in order to drive employee and company performance, while those in stable or saturated markets may be less
concerned with aggressive growth strategies.

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 5

INTRODUCTION

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CONSIDER ATIONS

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HR and business managers should consider the following questions when creating a short-term incentive programme:

►► What types of employees would benefit most from STIs?

►► Should I restrict the total value of STIs available to a single employee in one year?
►► How should I discern between high-performing and low-performing employees when distributing STIs?
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►► What factors should I use when determining the impact an individual has on company success?
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© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 6

INTRODUCTION
REPORT STRUCT URE

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The 2017 Short-Term Incentives Around the World publication provides human resource (HR) and business managers with up-to-date
information on short-term incentive figures and strategies. This publication offers country-level data on the provision of short-term
incentives for six distinct career levels across 16 job families, as well as the target and actual payout for this type of compensation.
It also provides regional comparisons and three-year trends to help decision makers understand what the future may hold and
anticipate market changes.

The report collates data from 87 markets in 71 countries and offers a unique insight critical to any business looking to devise a sound
and competitive compensation programme.

The report includes the following sections:

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SUMMARY OF KE Y FINDING S
The section serves as an executive summary for those looking
for Mercer’s insights and observations; it provides high level
trends, market comparisons and other analysis. The following
target STI as a percentage of base salary. This section also
offers the following insights for each country:
►► Job families that receive highest and lowest STI payout for
each career level

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topics are included:

►► Incentives by career level

►► Incentives by job family
►► Historical trends
►► Long-term incentives
►► Detailed STI payout figures by job family and career level
►► Career-level trends over the last three years

ABOU T THIS REPORT

This section delineates the methods used in the report and lists
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key definitions.
REGIONAL RESULTS ►► Methodology includes data sources used to compile this
report, currency conversion rates, and other details on
This section includes a regional summary and country-specific
calculations and assumptions.
data for those HR professionals looking for more targeted data
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on an individual topic. It provides country-level data, including ►► Glossary provides definitions for many of the terms used
the percentage of employees receiving STI and the actual and throughout this report, as well as other HR related terms.
© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 7
INTRODUCTION
RE ADING THIS REPORT
The Summary of Key Findings

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The following pages include tips and guidelines to help navigate the report content.
includes analysis by career
SUMMARY OF KEY FINDINGS level as well as job family.
PERCENTAGE RECEIVING , ACT UAL , AND TARGET,
BY CAREER LEVEL
EXEC U TIVE

69.4% 69.4% 77.4%

The legend for the

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23.3% 23.3%
graphic can be found 40.8%
in
23.5% 23.5% the grey shaded area.41.2% Percentage receiving
(% of employees)
AMERICAS APAC EMEA
MANAGEMEN T — MANAGER

AMERICAS
M 63.0%

12.8%

13.6%

APAC
Actual13.6%
63.0%

12.8%

and target figures are

presented as a percentage
of base salary. EMEA
69.1%

13.8%

15.5%
Actual (median % of
base salary)

Target (median % of
base salary)
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MANAGEMEN T — SUPER VISOR AND TE AM LE ADER
51.8% 51.8% 54.6%

8.6% 8.6% 8.4%

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9.3% 9.3% 9.8%

AMERICAS APAC EMEA

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 8
INTRODUCTION
AMERICAS
PERCEN TAGE RECEIVING , ACTUAL , AND TARGET, BY CAREER LEVEL

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MANAGEMENT
The first page of each region
EXECUTIVE
COUNTRY MANAGER SUPERVISOR/TEAM LEADER
section provides
RECEIVING
a quick
ACTUAL TARGET RECEIVING ACTUAL TARGET RECEIVING ACTUAL TARGET
reference
REGION AVER AGE
summary
69 %
table.
4 0.8% 40.8% 69 % 13.8% 15.5% 55 % 8.5% 8.5%
ARGENTINA 85 % 25.1 % 25.1 % 85% 14.1 % 16.1% 69% 25.1% 25.1%
BRAZIL 80% 27.4% 27.4% 80% 14.1 % 18.4 % 84 % 27.4% 27.4 %
CANADA 72 % 41.2% 41.2% 72% 14.8% 15.3% 59% 41.2 % 41.2 %
CHILE 76 % 28.6 % 28.6 % 76 % 16.5 %
Throughout
19.0 %
the
46%
report,28.60
data% 28.60 %
relating to the percentage of

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COLOMBIA 63% 24.2% 24.2% 63 % 13.9% 16.1% 41% 24 .20 % 24 .20 %
COSTA RICA 71% 23.7 % 23.7 % 71% 12.9% employees
13.6% receiving
46% a STI are
23.70 % 23.70 %
ECUADOR 55% 22.8% 22.8% 55 % 10.6 % coloured
12.4 % purple.
32 % “Actual” data
22.80% are 22.80%
GUATEMALA 70% 25.1 % 25.1 % 7 0% 10.8% orange
13.8% and “Target”
40% data are
25.10 % blue.25.10 %
MEXICO 64% 27.3% 27.3% 64% 15.5% 15.9% 37% 27.3 % 27.3 %
PANAMA
PERU
PUERTO RICO

URUGUAY
VENEZUELA
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UNITED STATES Notes on 66
66 %
75 %
63%
the
19.2%
27.0%

% methodology
48.5%
–
used
19.2%
27.0%
–
for each table
48.5%
can be found in the grey shaded areas at the bottom of the

in the
Notes: The "percentage
91
page. Additional
%
52 %

Aboutrepresents
receiving"
36.3%
information
21.6 %

This Report
36.3%
on21.6
section.
the amount
Methodology
%
66%
75 %
63 %
66%
91%
11.9%
13.3%
11.90%
or graphic
13.20%
13.80%
52%can be 11.80%found
14 .7%
15.3%
12.3%
14 .6%
15.0%
17.9 %
63%
48%
35 %
49%
81%
26%
19.2 %
27.0%
–
48.5%
36.3%
21.6%
19.2 %
27.0 %
–
48.5%
36.3%
21.6%

of employees in that career level who received a short-term incentive. "Actual" and "target" represent the median
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percentage of base salary.

METHODOLOGY
This table presents the percentage of all employees receiving payouts, the actual STI percentage received, and target STI percentage, by career level for
each country. Figures in blue represent the highest value and figures in red represent the lowest.
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© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 9

INTRODUCTION
COUN TRY The first page of each set of country information
provides a summary of the job families with the highest

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and lowest
SUMMARY OF PERCEN TAGE percentages
RECEIVING for each
, ACTUAL , ANDtype of data.BY CAREER LEVEL AND JOB FAMILY
TARGET,

HIGHEST AND LOWEST PERCEN TAGE HIGHEST AND LOWEST ACTUAL STI HIGHEST AND LOWEST TARGET STI
RECEIVING PERCENTAGE PERCENTAGE

Marketing, Engineering 100.0% Finance 30.7% Top management 33.7%

E XEC U TIVE
Corporate affairs 83.3% Manufacturing 20.1% Manufacturing 23.0%

Research and development 91.2% Corporate affairs 16.4 % Information technology 17.0 %
MANAGEMENT —
MANAGER
Sales 75.4% Contact centre 11.5% Research and development 15.1%

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MANAGEMENT Marketing 83.5 % Marketing 11.7% Finance 12.6%
SUPER VISOR / Definitions for each career level
TE AM LE ADER Contact centre and job family
58.0% can be found in
Manufacturing 7.9 % Supply and logistics 10.0%

the Glossary
Research and development 91.2% which is part of
Sales 8.9% Sales 11.1%
PROFES SIONAL —
the About This Report section.
SENIOR

PROFES SIONAL —
EXPERIENCED

PAR A -
PROFES SIONAL
M Sales

Research and development

Contact centre

Sales

Finance
47.1%

83.8%

10.7 %

50.1 %

14.1 %
The top row within each career
Supply and logistics

Sales and marketing

Manufacturing

Legal

Supply and logistics

6.3%

8.5%

5.8%

7.5 %

5.5%
Contact centre, Quality assurance

Sales and marketing

Contact centre

Sales

Information technology
7.7%

9.4 %

7.3 %

8.2%

6.9%
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level indicates the job family with
the highest percentage and the
METHODOLOGY
bottom row indicates the lowest.
This table presents the job family with the highest and lowest percentage of all employees receiving payouts, the actual STI percentage received, and
target STI percentage for each career level. The actual and target STI amounts represent a percentage of base salary.
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© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 10

INTRODUCTION
COUNTRY
PERCEN TAGE RECEIVING , ACTUAL , AND TARGET, BY CAREER LEVEL AND JOB FAMILY

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The first row provides the
MANAGEMENT
EXECUTIVE statistics for the country as
COUNTRY MANAGER SUPERVISOR/TEAM LEADER
a whole.
RECEIVING ACTUAL TARGET RECEIVING ACTUAL TARGET RECEIVING ACTUAL TARGET
COUN TRY AVER AGE 88.5% 25.1 % 29.3 % 84 .8% 14.1 % 16.1% 68.6% 8.7% 10.8%
TOP MANAGEMENT 8 4 .3 % 27.7 % 33.7 % – – – – – –
CORPORATE AFFAIRS 83.3 % 24 .1 % 25.7 % 87.1 % 16.4 % 15.9% – – –
LEGAL – – – – – – – – –
HUMAN RESOURCES – – – 85.1 % 13.2% 16.4 % 75.3% 9.6% 11.5%
FINANCE AND ACCOUNTING 89.3% 30.7 % 33.2% 82.4% 14.1 % 16.7% 74 .1% 10.2% 12.6%

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ADMINISTRATION – – – 86.6% 15.4% 15.9% – – –
INFORMATION TECHNOLOGY – – – 87.4% 15.6% 17.0 % 72.2% 10.0% 12.4 %
SALES AND MARKETING 8 4 .2 % 20.4% 30.0% 86.6% 15.3% 16.9% – – –
MARKETING 10 0.0 % 26 .6% 25.0% 88.7 % 13.9% 15.7% 83.5% 11.7% 12.3%
SALES – – – 75.4 % 15.3% 16.8% – – –
CONTACT CENTRE

ENGINEERING
MANUFACTURING
M
RESEARCH AND DEVELOPMENT

SUPPLY AND LOGISTICS

QUALITY ASSURANCE
–
–

91.5%

–
of country
94 .1 %
–
Detailed data
–

20.1 %
28.0%
–
each
–
by job family
–
and career level can also
10 0.0 %
be found
21.0%
within
23.1 %

pages. 28.8%
set
23.0%

–
88.3%
91.2%
84 .5%
85.0 %
88.0 %
89.4 %
11.5 %
14.7 %
13.5%
13.0 %
12.9%
14.8%
15.9%
15.1%
15.5%
15.2%
15.3%
16.2 %A dash
58.0%
–
74 .1%
69.4 %
59.6%
indicates 8.6%
68.4%
insufficient data
8.2%
–
8.4%
7.9 %
8.1%
that
are
10.2%
–
10.3%
10.1%
10.0%

available
10.4 %
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Notes: The "percentage receiving" represents the amount of employees in that career level who received a short-term incentive. "Actual" and "target" represent the median
percentage of base salary. to report the statistic.

METHODOLOGY
This table presents the percentage of all employees receiving payouts, the actual STI percentage received, and target STI percentage, by career level for
each country. Figures in blue represent the highest value and figures in red represent the lowest.
S

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 11

INTRODUCTION
COUNTRY
PERCENTAGE OF EMPLOYEES RECEIVING SHORT-TERM INCENTIVES

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This graphic highlights
the career levels with
CAREER LEVEL
the greatest WI THand
positive THE GRE ATEST CHANGE, 2014– 2016
negative change over the
three year period. 16 %
+ -
MANAGEMEN T — Three-year trend information
MANAGER is provided by career level
for each country.
-6%
PROFES SIONAL —

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CAREER LEVEL TREND S, 2014– 2016 E XPERIENCED
2014 2015 2016
86 88
83 85
74
69 70 69
65

M 56 56
63

44
50
38
29
40
27
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EXECUTIVE MANAGEMENT MANAGEMENT PROFESSIONAL PROFESSIONAL PARA-
MANAGER SUPERVISOR SENIOR EXPERIENCED PROFESSIONAL

METHODOLOGY
These graphs are shaded purple to indicate
The graphs above present the year-over-year trends for STI information by career level.data
that The first graph indicates
represent the the greatest change
percentage of in the percentage of
all employees receiving incentives during 2014–2016. The second graph provides the percentage receiving STI by career level, for each of the listed years.
employees receiving a STI.
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Each year refers to the year that data were published.

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 12

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A
M
P
LE
OUNTRY
COUN TRY
SUMMARY OF PERCEN TAGE RECEIVING , ACTUAL , AND TARGET, BY CAREER LEVEL AND JOB FAMILY

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HIGHEST AND LOWEST PERCEN TAGE HIGHEST AND LOWEST ACTUAL STI HIGHEST AND LOWEST TARGET STI
RECEIVING PERCENTAGE PERCENTAGE

Marketing, Engineering 100.0% Finance 10 0.0 % Top management 10 0.0 %

E XEC U TIVE
Corporate affairs 1.0% Manufacturing 1.0% Manufacturing 1.0%

Research and development 100.0% Corporate affairs 10 0.0 % Information technology 10 0.0 %
MANAGEMENT —
MANAGER
Sales 1.0% Contact centre 1.0% Research and development 1.0%

P
MANAGEMENT Marketing 100.0% Marketing 10 0.0 % Finance 10 0.0 %
SUPER VISOR /
TE AM LE ADER Contact centre 1.0% Manufacturing 1.0% Supply and logistics 1.0%

Research and development 100.0% Sales 10 0.0 % Sales 10 0.0 %

PROFES SIONAL —
SENIOR
Sales 1.0% Supply and logistics 1.0% Contact centre, Quality assurance 1.0%

PROFES SIONAL —
EXPERIENCED

PAR A -
PROFES SIONAL
M Research and development

Contact centre

Sales

Finance
100.0%

1.0%

100.0%

1.0%
Sales and marketing

Manufacturing

Legal

Supply and logistics

10 0.0 %

1.0%

10 0.0 %

1.0%
Sales and marketing

Contact centre

Sales

Information technology
10 0.0 %

1.0%

10 0.0 %

1.0%
A
METHODOLOGY
This table presents the job family with the highest and lowest percentage of all employees receiving payouts, the actual STI percentage received, and
target STI percentage for each career level. The actual and target STI amounts represent a percentage of base salary.
S

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 14

COUNTRY
PERCEN TAGE RECEIVING , ACTUAL , AND TARGET, BY CAREER LEVEL AND JOB FAMILY

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MANAGEMENT
EXECUTIVE
COUNTRY MANAGER SUPERVISOR/TEAM LEADER
RECEIVING ACTUAL TARGET RECEIVING ACTUAL TARGET RECEIVING ACTUAL TARGET
COUN TRY AVER AGE 50.0% 10.0% 11.0 % 50.0 % 10.0% 11.0% 50.0% 10.0% 11.0%
TOP MANAGEMENT 50.0% 10.0% 11.0 % – – – – – –
CORPORATE AFFAIRS 50.0% 10.0% 11.0 % 50.0 % 10.0% 11.0% – – –
LEGAL – – – – – – – – –
HUMAN RESOURCES – – – 50.0 % 10.0% 11.0% 50.0% 10.0% 11.0%
FINANCE AND ACCOUNTING 50.0% 10.0% 11.0 % 50.0 % 10.0% 11.0% 50.0% 10.0% 11.0%
ADMINISTRATION – – – 50.0 % 10.0% 11.0% 50.0% 10.0% 11.0%

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INFORMATION TECHNOLOGY – – – 50.0 % 10.0% 11.0% 50.0% 10.0% 11.0%
SALES AND MARKETING 50.0% 10.0% 11.0 % 50.0 % 10.0% 11.0% – – –
MARKETING 50.0% 10.0% 11.0 % 50.0 % 10.0% 11.0% 50.0% 10.0% 11.0%
SALES – – – 50.0 % 10.0% 11.0% – – –
CONTACT CENTRE – – – 50.0 % 10.0% 11.0% 50.0% 10.0% 11.0%

ENGINEERING
MANUFACTURING
M
RESEARCH AND DEVELOPMENT

SUPPLY AND LOGISTICS

QUALITY ASSURANCE
–
50.0%
50.0%
50.0%
–
–
10.0%
10.0%
10.0%
–
–
11.0 %
11.0 %
11.0 %
–
50.0 %
50.0 %
50.0 %
50.0 %
50.0 %
10.0%
10.0%
10.0%
10.0%
10.0%
11.0%
11.0%
11.0%
11.0%
11.0%
–
50.0%
50.0%
50.0%
50.0%
–
10.0%
10.0%
10.0%
10.0%
–
11.0%
11.0%
11.0%
11.0%

Notes: The "percentage receiving" represents the amount of employees in that career level who received a short-term incentive. "Actual" and "target" represent the median
percentage of base salary.
A
METHODOLOGY
This table presents the percentage of all employees receiving payouts, the actual STI percentage received, and target STI percentage, by career level for
each country. Figures in blue represent the highest value and figures in red represent the lowest.
S

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 15

COUNTRY
PERCEN TAGE RECEIVING , ACTUAL , AND TARGET, BY CAREER LEVEL AND JOB FAMILY, CONTINUED

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PROFESSIONAL
PARA-PROFESSIONAL
COUNTRY SENIOR EXPERIENCED
RECEIVING ACTUAL TARGET RECEIVING ACTUAL TARGET RECEIVING ACTUAL TARGET
COUN TRY AVER AGE 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% 50.0% 10.0% 11.0%
TOP MANAGEMENT – – – – – – – – –
CORPORATE AFFAIRS – – – 50.0% 10.0 % 11.0% – – –
LEGAL 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% 50.0% 10.0% 11.0%
HUMAN RESOURCES 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% 50.0% 10.0% 11.0%
FINANCE AND ACCOUNTING 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% 50.0% 10.0% 11.0%
ADMINISTRATION – – – 50.0% 10.0 % 11.0% 50.0% 10.0% 11.0%

P
INFORMATION TECHNOLOGY 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% 50.0% 10.0% 11.0%
SALES AND MARKETING 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% – – –
MARKETING 50.0% 10.0% 11.0% 50.0% 10.0 % 11.0% – – –
SALES 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% 50.0% 10.0% 11.0%
CONTACT CENTRE 50.0% 10.0 % 11.0% 50.0% 10.0 % 11.0% – – –

ENGINEERING
MANUFACTURING
M
RESEARCH AND DEVELOPMENT

SUPPLY AND LOGISTICS

QUALITY ASSURANCE
50.0%
50.0%
–
50.0%
50.0%
10.0 %
10.0 %
–
10.0 %
10.0%
11.0%
11.0%
–
11.0%
11.0%
50.0%
50.0%
50.0%
50.0%
50.0%
10.0 %
10.0 %
10.0 %
10.0 %
10.0 %
11.0%
11.0%
11.0%
11.0%
11.0%
–
50.0%
50.0%
50.0%
50.0%
–
10.0%
10.0%
10.0%
10.0%
–
11.0%
11.0%
11.0%
11.0%

Notes: The "percentage receiving" represents the amount of employees in that career level who received a short-term incentive. "Actual" and "target" represent the median
percentage of base salary.
A
METHODOLOGY
This table presents the percentage of all employees receiving payouts, the actual STI percentage received, and target STI percentage, by career level for
each country. Figures in blue represent the highest value and figures in red represent the lowest.
S

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 16

COUNTRY
PERCENTAGE OF EMPLOYEES RECEIVING SHORT-TERM INCENTIVES

LE
CAREER LEVEL WI TH THE GRE ATEST CHANGE, 2014– 2016

10 %
+ -
E XEC U TIVE

-
NO NEGATIVE
CHANGE
CAREER LEVEL TREND S, 2014– 2016

P
2014 2015 2016

50 50 50 50 50
45 45 45 45 45 45 45 45 45 45
40

M 35 35
A
EXECUTIVE MANAGEMENT MANAGEMENT PROFESSIONAL PROFESSIONAL PARA-
MANAGER SUPERVISOR SENIOR EXPERIENCED PROFESSIONAL

METHODOLOGY
The graphs above present the year-over-year trends for STI information by career level. The first graph indicates the greatest change in the percentage of
all employees receiving incentives during 2014–2016. The second graph provides the percentage receiving STI by career level, for each of the listed years.
S

Each year refers to the year that data were published.

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 17

COUNTRY
ACTUAL SHORT -TERM INCENTIVES AS A PERCEN TAGE OF BASE SAL ARY

LE
CAREER LEVEL WI TH THE GRE ATEST CHANGE, 2014– 2016

-
+ -
NO POSI TIVE
CHANGE

-2%
PROFES SIONAL — EXPERIENCED,
PAR A - PROFES SIONAL
CAREER LEVEL TREND S, 2014– 2016

P
2014 2015 2016

10 10
9 9 9 9 9 9 9 9 9 9 9 9
8 8

M 6
7
A
EXECUTIVE MANAGEMENT MANAGEMENT PROFESSIONAL PROFESSIONAL PARA-
MANAGER SUPERVISOR SENIOR EXPERIENCED PROFESSIONAL

METHODOLOGY
The graphs above present the year-over-year trends for STI information by career level. The first graph indicates the greatest change in the actual percentage of STI
during 2014–2016. The second graph provides the actual STI (as a percentage of base salary) by career level, for each of the listed years.
S

Each year refers to the year that data were published; actual STI may relate to the previous year's performance period.

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 18

COUNTRY
TARGET SHORT -TERM INCENTIVES AS A PERCEN TAGE OF BASE SAL ARY

LE
CAREER LEVEL WI TH THE GRE ATEST CHANGE, 2014– 2016

2%
+ -
EXEC U TIVE

-2%
PAR A - PROFES SIONAL

CAREER LEVEL TREND S, 2014– 2016

P
2014 2015 2016
11 11
10 10 10 10 10 10 10 10 10 10 10 10 10 10
9 9

M
A
EXECUTIVE MANAGEMENT MANAGEMENT PROFESSIONAL PROFESSIONAL PARA-
MANAGER SUPERVISOR SENIOR EXPERIENCED PROFESSIONAL

METHODOLOGY
The graphs above present the year-over-year trends for STI information by career level. The first graph indicates the greatest change in the target percentage of STI
during 2014–2016. The second graph provides the target STI (as a percentage of base salary) by career level, for each of the listed years.
S

Each year refers to the year that data were published.

© 2017 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 19

S
A
M
P
LE
ABOUT THIS REPORT
ABOU T THIS REPORT

LE
This section provides information on the methods of collecting, collating, and analysing data for this publication. Below are notes on
exceptions and exclusions in the data and a list of data sources, relevant equations, and currency conversions rates. Readers will also
find a glossary of key terms.

METHODOLOGY
STATISTIC S

ETHODOLOGY
The following statistics are presented in this publication:

P
►► 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.

►► Average: The sum of all data reported divided by the number of data observations in the sample. Also known as the mean.

►► Prevalence: The percentage of companies that provided a response to a question with a defined number of options to choose

►►

►►
M
from. For example, a single response question or a multiple response (select all that apply) style question.

In single response questions, the sum of all responses may not equal 100% due to rounding.

In multiple response questions, the sum of all responses will be greater than 100%.

►► N: The number of companies that reported data for the statistic.

A
►► Endash or “–”: The sample is too small to provide the statistic.
S

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 21
ABOUT THIS REPORT
DATA MASKING

LE
To ensure the confidentiality of all companies that provide data to Mercer’s surveys, statistics have been “masked” by displaying an
endash or “–” when minimum sample sizes are not met.

►► A minimum of three data points are required to report the average and prevalence percentages.

DATA ANALYSIS
This publication uses job-level STI data sourced from Mercer’s Total Remuneration Surveys (TRS) to calculate STI prevalence rates, STI

ETHODOLOGY
actual incentives (as a percentage of base salary), and STI target incentive (as a percentage of base salary).

P
►► Organisation-weighted average data are used to calculate the STI prevalence rates and STI actual and target incentives as a
percentage of base salary.

►► The averages are calculated using the number of observations of annual base salary with a threshold value greater than or equal
to eight organisations.

M
►► Throughout the report, the “target” is the expected STI percentage for the current performance year, while “actual” is the STI
amount paid for the most recently completed performance year.

►► The “percentage receiving” indicates the percentage of all employees that received a short-term incentive.
A
S

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 22
ABOUT THIS REPORT
E X CEPTIONS AND NOTES

LE
Data may vary when compared to previous year for the following reasons:

►► The sample of participating companies within a single country may be different this year compared to last year.

►► The data presented in the report are calculated using the Mercer Global Benchmark Jobs. Due to variation in the data availability
for the jobs year over year, there may be an impact on the final STI data presented.

►► It is also important to note that within a sample, a significant amount of data may be reported by one organization, which might

ETHODOLOGY
vary from year to year.

►► Data may change drastically from year to year due to industry-related factors and economic conditions.

P
M
A
S

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 23
ABOUT THIS REPORT
DATA SOURCES — AMERICAS
NUMBER OF NUMBER OF

LE
COUNTRY SOURCE COUNTRY SOURCE
PARTICIPANTS PARTICIPANTS
AR: Total Remuneration Survey (May 2014) 395 MX: Total Remuneration Survey (May 2014) 505
ARGENTINA AR: Total Remuneration Survey (May 2015) 410 MEXICO MX: Total Remuneration Survey (May 2015) 579
AR: Total Remuneration Survey (Nov 2016) 453 MX: Total Remuneration Survey (May 2016) 723
BR: Total Remuneration Survey (May 2014) 467 PA: Total Remuneration Survey (May 2014) 121
BRAZIL BR: Total Remuneration Survey (May 2015) 472 PANAMA PA: Total Remuneration Survey (May 2015) 129
BR: Total Remuneration Survey (May 2016) 478 PA: Total Remuneration Survey (May 2016) 149
CA: Total Remuneration Survey (April 2014) 1,006 PE: Total Remuneration Survey (May 2014) 190

ETHODOLOGY
CANADA CA: Total Remuneration Survey (April 2015) 888 PERU PE: Total Remuneration Survey (May 2015) 205
CA: Total Remuneration Survey (April 2016) 832 PE: Total Remuneration Survey (May 2016) 242

P
CL: Total Remuneration Survey (May 2013) 234 PR: Total Remuneration Survey (May 2014) 49
CHILE CL: Total Remuneration Survey (May 2015) 239 PUERTO RICO PR: Total Remuneration Survey (June 2015) 45
CL: Total Remuneration Survey (May 2016) 357 PR: Total Remuneration Survey (June 2016) 52
CO: Total Remuneration Survey (May 2014) 297 US: Total Remuneration Survey (March 2014) 1,996
COLOMBIA CO: Total Remuneration Survey (May 2015) 318 UNITED STATES US: Total Remuneration Survey (March 2015) 1,499

COSTA RICA

ECUADOR
M CO: Total Remuneration Survey (May 2016)
CR: Total Remuneration Survey (May 2014)
CR: Total Remuneration Survey (June 2015)
CR: Total Remuneration Survey (June 2016)
EC: Total Remuneration Survey (May 2014)
EC: Total Remuneration Survey (May 2015)
EC: Total Remuneration Survey (May 2016)
345
101
94
115
96
102
111
URUGUAY

VENEZUELA
US: Total Remuneration Survey (March 2016)
UY: Total Remuneration Survey (July 2014)
UY: Total Remuneration Survey (July 2015)
UY: Total Remuneration Survey (July 2016)
VE: Total Remuneration Survey (May 2014)
VE: Total Remuneration Survey (May 2015)
VE: Total Remuneration Survey (May 2016)
1,440
90
97
106
189
164
162
A
GT: Total Remuneration Survey (May 2014) 80
GUATEMALA GT: Total Remuneration Survey (June 2015) 81
GT: Total Remuneration Survey (June 2016) 93
S

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 24
ABOUT THIS REPORT
DATA SOURCES — ASIA PACIFIC
NUMBER OF NUMBER OF

LE
COUNTRY SOURCE COUNTRY SOURCE
PARTICIPANTS PARTICIPANTS
AU: Total Remuneration Survey All Industries CN: Total Remuneration Hangzhou-Ningbo All
760 138
(July 2014) industries Survey ( July 2014)
CHINA–
AUSTRALIA AU: Total Remuneration Survey All Industries CN-Hangzhou/Ningbo: Total Remuneration
728 HANGZHOU- 168
(July 2015) Survey All Industries (July 2015)
NINGBO
AU: Total Remuneration Survey (July 2016) 706 CN-Hangzhou/Ningbo: Total Remuneration
187
BD: Total Remuneration Survey (June 2014) 78 Survey All industries (July 2016)

BANGLADESH BD: Total Remuneration Survey (June 2015) 80 CN: Total Remuneration Hefei/Wuhu All
88
Industries Survey (June 2014)
BD: Total Remuneration Survey (June 2016) 88

ETHODOLOGY
CHINA–HEFEI- CN: Total Remuneration Hefei/Wuhu All
CN: Total Remuneration Beijing All Industries 115
783 WUHU Industries Survey (June 2015)
Office Survey (June 2014)

P
CN: Total Remuneration Survey All industries
CN-Beijing: Total Remuneration Survey All 133
CHINA–BEIJING 803 (May 2016)
Industries Office (June 2015)
CN: Total Remuneration Nanjing All industries
CN-Beijing: Total Remuneration Survey 168
901 Survey ( June 2014)
(June 2016)
CN-Nanjing: Total Remuneration Survey All
CN: Total Remuneration Chengdu-Chongqing CHINA–NANJING 194
267 Industries (June 2015)
All Industries Survey (July 2014)
CHINA–
CHENGDU-
CHONGQING

CHINA–DALIAN
M CN-Chengdu/Chongqing: Total Remuneration
Survey All Industries (July 2015)
CN-Chengdu/Chongqing: Total Remuneration
Survey All industries (July 2016)
CN: Total Remuneration Dalian All industries
Survey (July 2014)
CN-Dalian: Total Remuneration Survey All
Industries (July 2015)
292

166

230

222
CHINA–QINGDAO
CN-Nanjing: Total Remuneration Survey All
industries (June 2016)
CN: Total Remuneration Qingdao All industries
Survey ( July 2014)
CN-Qingdao: Total Remuneration Survey All
Industries (July 2015)
CN-Qingdao: Total Remuneration Survey All
industries (July 2016)
208

134

175

173
A
CN: Total Remuneration Shanghai All Industries
CN-Dalian: Total Remuneration Survey All 1,074
235 Office Survey ( June 2014)
industries (July 2016)
CHINA– CN-Shanghai: Total Remuneration Survey All
CN: Total Remuneration Guangdong All 1,102
669 SHANGHAI Industries Office (June 2015)
Industries Office Survey (June 2014)
CN-Shanghai: Total Remuneration Survey
CHINA– CN-Guangdong: Total Remuneration Survey All 1,043
675 Survey Office (June 2016)
GUANGDONG Industries Office (June 2015)
S
CN-Guangdong: Total Remuneration Survey
86
Survey Office (June 2016)

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 25
ABOUT THIS REPORT
DATA SOURCES — ASIA PACIFIC, CONTINUED
NUMBER OF NUMBER OF

LE
COUNTRY SOURCE COUNTRY SOURCE
PARTICIPANTS PARTICIPANTS
CN: Total Remuneration Shenyang-Changchun CN: Total Remuneration Xian All Industries
182 274
All industries Survey (July 2014) Survey ( July 2014)
CHINA–
CN-Shenyang/Changchun: Total Remuneration CN-Xi'an: Total Remuneration Survey All
SHENYANG- 172 CHINA–XI'AN 295
Survey All Industries (July 2015) Industries (July 2015)
CHANGCHUN
CN-Shenyang/Changchun: Total Remuneration CN-Xi'an: Total Remuneration Survey All
189 329
Survey All industries (July 2016) industries (Limited) (July 2016)
CN: Total Remuneration Suzhou/Kunshan All CN: Total Remuneration Xiamen/Fuzhou All
242 138
Industries Survey (June 2014) Industries Survey ( July 2014)

ETHODOLOGY
CN-Suzhou/Kunshan: Total Remuneration CHINA-XIAMEN/ CN-Xiamen/Fuzhou: Total Remuneration
CHINA-SUZHOU 264 149
Survey All Industries (June 2015) FUZHOU Survey All Industries (July 2015)

P
CN-Suzhou/Kunshan: Total Remuneration CN-Xiamen/Fuzhou: Total Remuneration
289 155
Survey All industries (June 2016) Survey All industries (July 2016)
CN: Total Remuneration Tianjin All industries HK: Total Remuneration Survey (July 2014) 459
176
Survey ( June 2014) HONG KONG HK: Total Remuneration Survey (July 2015) 451
CN-Tianjin: Total Remuneration Survey All HK: Total Remuneration Survey (July 2016) 485
CHINA–TIANJIN 190
Industries (June 2015)
IN: Total Remuneration Survey (June 2014) 700
CN-Tianjin: Total Remuneration Survey All

CHINA–WUHAN
M industries (June 2016)
CN: Total Remuneration Wuhan All industries
Survey ( July 2014)
CN: Total Remuneration Wuhan All industries
Survey ( July 2015)
CN: Total Remuneration Survey All industries
(July 2016)
201

233

282

289
INDIA

INDONESIA

JAPAN
IN: Total Remuneration Survey (June 2015)
IN: Total Remuneration Survey (June 2016)
ID: Total Remuneration Survey (June 2014)
ID: Total Remuneration Survey (June 2015)
ID: Total Remuneration Survey (June 2016)
JP: Total Remuneration Survey (June 2014)
JP: Total Remuneration Survey (June 2015)
691
768
453
467
474
499
534
A
CN: Total Remuneration Wuxi All industries
121
Survey ( June 2014) JP: Total Remuneration Survey (June 2016) 558
CN-Wuxi: Total Remuneration Survey All MY: Total Remuneration Survey (May 2014) 489
CHINA–WUXI 152
Industries (June 2015)
MALAYSIA MY: Total Remuneration Survey (June 2015) 478
CN-Wuxi: Total Remuneration Survey All
164 MY: Total Remuneration Survey (June 2016) 519
industries (June 2016)
S

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 26
ABOUT THIS REPORT
DATA SOURCES — ASIA PACIFIC, CONTINUED
NUMBER OF NUMBER OF

LE
COUNTRY SOURCE COUNTRY SOURCE
PARTICIPANTS PARTICIPANTS
NZ: Total Remuneration All Industries Survey KR: Total Remuneration Survey (July 2014) 471
224
(July 2014) SOUTH KOREA KR: Total Remuneration Survey (July 2015) 449
NEW ZEALAND NZ: Total Remuneration Survey All Industries KR: Total Remuneration Survey (July 2016) 496
214
(July 2015)
LK: Total Remuneration Survey (June 2014) 64
NZ: Total Remuneration Survey (July 2016) 225
SRI LANKA LK: Total Remuneration Survey (June 2015) 61
PK: Total Remuneration Survey (July 2014) 140
LK: Total Remuneration Survey (June 2016) 64
PAKISTAN PK: Total Remuneration Survey (July 2015) 149
TW: Total Remuneration Survey (July 2014) 362
PK: Total Remuneration Survey (June 2016) 142

ETHODOLOGY
TAIWAN TW: Total Remuneration Survey (July 2015) 363
PH: Total Remuneration Survey (June 2014) 337
TW: Total Remuneration Survey (July 2016) 397
PHILIPPINES PH: Total Remuneration Survey (June 2015) 330

P
TH: Total Remuneration Survey (July 2014) 481
PH: Total Remuneration Survey (June 2016) 371
THAILAND TH: Total Remuneration Survey (June 2015) 475
SG: Total Remuneration Survey (May 2014) 764
TH: Total Remuneration Survey (June 2016) 511
SINGAPORE SG: Total Remuneration Survey (June 2015) 771
VN: Total Remuneration Survey (June 2014) 473
SG: Total Remuneration Survey (June 2016) 775
VIETNAM VN: Total Remuneration Survey (June 2015) 520

M VN: Total Remuneration Survey (June 2016) 554

A
S

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 27
ABOUT THIS REPORT
DATA SOURCES — EUROPE, MIDDLE E AST, AND AFRICA
NUMBER OF NUMBER OF

LE
COUNTRY SOURCE COUNTRY SOURCE
PARTICIPANTS PARTICIPANTS
DZ: Total Remuneration Survey (May 2014) 72 FI: Total Remuneration Survey (June 2014) 204
ALGERIA DZ: Total Remuneration Survey (May 2015) 85 FINLAND FI: Total Remuneration Survey (June 2015) 203
DZ: Total Remuneration Survey (May 2016) 80 FI: Total Remuneration Survey (June 2016) 220
AT: Total Remuneration Survey (April 2014) 159 FR: Total Remuneration Survey (April 2014) 468
AUSTRIA AT: Total Remuneration Survey (April 2015) 163 FRANCE FR: Total Remuneration Survey (April 2015) 483
BE: Total Remuneration Survey (April 2016) 172 FR: Total Remuneration Survey (April 2016) 512
BE: Total Remuneration Survey (April 2014) 290 DE: Total Remuneration Survey (April 2014) 519

ETHODOLOGY
BELGIUM BE: Total Remuneration Survey (April 2015) 265 GERMANY DE: Total Remuneration Survey (April 2015) 498
BE: Total Remuneration Survey (April 2016) 272 DE: Total Remuneration Survey (April 2016) 531

P
BG: Total Remuneration Survey (May 2014) 144 GR: Total Remuneration Survey (April 2014) 123
BULGARIA BG: Total Remuneration Survey (May 2015) 142 GREECE GR: Total Remuneration Survey (April 2015) 133
BG: Total Remuneration Survey (May 2016) 227 GR: Total Remuneration Survey (April 2016) 153
HR: Total Remuneration Survey (April 2014) 70 HU: Total Remuneration Survey (April 2014) 158
CROATIA HR: Total Remuneration Survey (April 2015) 74 DENMARK DK: Total Remuneration Survey (June 2015) 241

CZECH REPUBLIC

DENMARK
M HR: Total Remuneration Survey (April 2016)
CZ: Total Remuneration Survey (April 2014)
CZ: Total Remuneration Survey (April 2015)
CZ: Total Remuneration Survey (April 2016)
DK: Total Remuneration Survey (June 2014)
DK: Total Remuneration Survey (June 2015)
DK: Total Remuneration Survey (June 2016)
78
213
201
220
227
241
247
IRELAND

ISRAEL
DK: Total Remuneration Survey (June 2016)
IE: Total Remuneration Survey (April 2014)
IE: Total Remuneration Survey (April 2015)
IE: Total Remuneration Survey (April 2016)
IL: Total Remuneration Survey (June 2014)
IL: Total Remuneration Survey (June 2015)
IL: Total Remuneration Survey (June 2016)
247
151
149
156
38
51
54
A
EG: Total Remuneration Survey (May 2014) 103 IT: Total Remuneration Survey (April 2014) 351
EGYPT EG: Total Remuneration Survey (May 2015) 110 ITALY IT: Total Remuneration Survey (April 2015) 245
EG: Total Remuneration Survey (May 2016) 104 IT: Total Remuneration Survey (April 2016) 380
EE: Total Remuneration Survey (May 2014) 78 KZ: Total Remuneration Survey (April 2014) 96
KAZAKHSTAN-
ESTONIA EE: Total Remuneration Survey (May 2015) 56 KZ: Total Remuneration Survey (April 2015) 99
ALMATY
S
EE: Total Remuneration Survey (May 2016) 61 KZ: Total Remuneration Survey (April 2016) 99

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 28
ABOUT THIS REPORT
DATA SOURCES — EUROPE, MIDDLE E AST, AND AFRICA, CON TINUED
NUMBER OF NUMBER OF

LE
COUNTRY SOURCE COUNTRY SOURCE
PARTICIPANTS PARTICIPANTS
LV: Total Remuneration Survey (May 2014) 195 RU : Total Remuneration Survey (April 2014) 318
LATVIA LV: Total Remuneration Survey (May 2015) 180 RUSSIA-MOSCOW RU: Total Remuneration Survey (April 2015) 299
LV: Total Remuneration Survey (May 2016) 181 RU: Total Remuneration Survey (April 2016) 291
LT: Total Remuneration Survey (May 2014) 133 RU : Total Remuneration Survey (April 2014) 318
RUSSIA–ST PE-
LITHUANIA LT: Total Remuneration Survey (May 2015) 110 RU: Total Remuneration Survey (April 2015) 299
TERSBURG
LT: Total Remuneration Survey (May 2016) 103 RU: Total Remuneration Survey (April 2016) 291
MA: Total Remuneration Survey (May 2014) 120 SA: Total Remuneration Survey (May 2014) 202

ETHODOLOGY
MOROCCO MA: Total Remuneration Survey (May 2015) 113 SAUDI ARABIA SA: Total Remuneration Survey (May 2015) 281
MA: Total Remuneration Survey (May 2016) 123 SA: Total Remuneration Survey (May 2016) 322

P
NL: Total Remuneration Survey (April 2014) 303 RS: Total Remuneration Survey (April 2014) 126
NETHERLANDS NL: Total Remuneration Survey (April 2015) 299 SERBIA RS: Total Remuneration Survey (April 2015) 143
NL: Total Remuneration Survey (April 2016) 313 RS: Total Remuneration Survey (April 2016) 111
NO: Total Remuneration Survey (July 2014) 173 SK: Total Remuneration Survey (April 2014) 100
NORWAY NO: Total Remuneration Survey (July 2015) 184 SLOVAKIA SK: Total Remuneration Survey (April 2015) 101

POLAND

PORTUGAL
M NO: Total Remuneration Survey (July 2016)
PL: Total Remuneration Survey (April 2014)
PL: Total Remuneration Survey (April 2015)
PL: Total Remuneration Survey (April 2016)
PT: Total Remuneration Survey (April 2014)
PT: Total Remuneration Survey (April 2015)
PT: Total Remuneration Survey (April 2016)
197
382
386
414
287
304
305
SPAIN

SWEDEN
SK: Total Remuneration Survey (April 2016)
ES: Total Remuneration Survey (April 2014)
ES: Total Remuneration Survey (April 2015)
ES: Total Remuneration Survey (April 2016)
SE: Total Remuneration Survey (July 2014)
SE: Total Remuneration Survey (July 2015)
SE: Total Remuneration Survey (July 2016)
106
339
327
377
351
362
375
A
QA: Total Remuneration Survey ( May 2014) 97 CH: Total Remuneration Survey (April 2014) 230
QATAR QA: Total Remuneration Survey (May 2015) 116 SWITZERLAND CH: Total Remuneration Survey (April 2015) 249
QA: Total Remuneration Survey (May 2016) 112 CH: Total Remuneration Survey (April 2016) 268
RO: Total Remuneration Survey (April 2014) 200 TN: Total Remuneration Survey (May 2014) 50
ROMANIA RO: Total Remuneration Survey (April 2015) 199 TUNISIA TN: Total Remuneration Survey (May 2015) 79
S
RO: Total Remuneration Survey (April 2016) 190 TN: Total Remuneration Survey (May 2016) 57

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 29
ABOUT THIS REPORT
DATA SOURCES — EUROPE, MIDDLE E AST, AND AFRICA, CON TINUED
NUMBER OF NUMBER OF

LE
COUNTRY SOURCE COUNTRY SOURCE
PARTICIPANTS PARTICIPANTS
TR: Total Remuneration Survey (May 2014) 192 AE: Total Remuneration Survey (May 2014) 305
UNITED ARAB
TURKEY TR: Total Remuneration Survey (May 2015) 199 AE: Total Remuneration Survey (May 2015) 337
EMIRATES
TR: Total Remuneration Survey (May 2016) 250 AE: Total Remuneration Survey (May 2016) 423
UA: Total Remuneration Survey (April 2014) 140 UK: Total Remuneration Survey (April 2014) 475
UKRAINE–KIEV UA: Total Remuneration Survey (April 2015) 135 UNITED KINGDOM UK: Total Remuneration Survey (April 2015) 508
UA: Total Remuneration Survey (April 2016) 134 UK: Total Remuneration Survey (April 2016) 537

ETHODOLOGY
P
M
A
S

© 2017
2016 Mercer LLC. SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 30
ABOUT THIS REPORT
COMPENS ATION TERMS
ANNUAL BASE SAL ARY ( ABS ) ANNUAL TOTAL EMPLOYMENT CO ST

LE
Monthly base salary multiplied by the number of months per year
that salary is paid (according to company policy).
ANNUAL GUAR AN TEED CASH ( AG C )
Annual base salary plus guaranteed allowances, which include
meal allowance, vehicle allowance, and so on.
ANNUAL TOTAL CASH
( TEC )
The total fixed cost of an employee’s package to the employer,
including base salary, allowances, motor vehicles (benefit
vehicles only), car allowances (benefit allowances only),
company superannuation associated with fixed cost, car
parking, leave loading, and all other benefits and associated
fringe benefit tax. It excludes STIs and long-term incentives,
staff on-costs such as workers’ compensation and payroll tax,
bonuses, and/or commissions, and superannuation associated

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COMPENSATION ( ATC )
Annual base salary (ABS) plus annual guaranteed cash (AGC) and
short- term incentives, which include bonus (for example, bonus,
sales commission, profit sharing) but exclude share options. The
figures reported include the actual award amounts received
with variable cost.
ALLOWANCES
Salary supplements paid to employees to cover job
requirements, with reimbursement usually based on actual

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over last 12 months. costs. Typical allowances, depending on country or company

LOSSARY
culture, might include allowances for maternity, festival,
ANNUAL TOTAL REMUNER ATION transition, meal, car, childcare, family, vacation, sickness,
housing, and others. They can be either paid out in cash, as
(ATR ) an addition to the base salary or in the form of vouchers or
Annual total cash (ATC) plus long-term incentives. Also known as coupons and may vary significantly from country to country.
Annual Total Direct Compensation.
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ABOUT THIS REPORT
COMPENS ATION MANAGEMEN T COMPETI TIVE PAY POLICY
The process of engaging with line managers regarding their The strategic decision an organisation makes about which

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recommendations for individual pay increases and bonuses. It
relies on managers being guided towards fair and consistent
awards with robust market data and being enabled using
technology. Approaches vary from directional (limited manager
discretion) to discretionary.
COMPENS ATION PL ANNING
The process of modelling company and market data to build
insights into how budgets should be distributed within the
company for compensation review. It may be a top-down
labour markets to use as comparison groups and how to set pay
levels for those groups. After choosing the comparison group,
the organisation decides its market position with respect to the
group.
EQUI T Y
E X TERNAL EQUI T Y
A measure of an organisation’s pay levels, bands, or “going
market rates” compared to that of its competitors. As a fairness

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process linked to affordability and market movement, or a criterion, external equity implies that the employer pays
bottom-up process linked to competitive position and individual wages that correspond to prevailing external market rates, as
performance, or both. Also see Salary Increase. determined by market pricing.

COMPENS ATION STR ATEGY/ INTERNAL EQUI T Y

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PHILO SOPHY/POLICY A fairness criterion that directs an employer to establish

LOSSARY
wage rates that correspond to each job’s relative value to the
The principles that guide the design, implementation and
organisation.
administration of an organisation’s compensation programme.
The strategy ensures that a compensation programme,
consisting of both pay and benefits, supports an organisation’s EX TERNAL COMPETI TIVENES S
mission, goals, and business objectives. It may also specify what A comparison of the organisation’s pay structure with its
programmes will be used and how they will be administered. competitors.
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The philosophy ensures that a compensation programme
supports an organisation’s culture. The policy ensures that
a compensation programme carries out the compensation
FIXED ALLOWANCE
strategy while supporting the compensation philosophy. See Allowances.
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FULL- TIME EQUIVALENTS ( F TES ) ►► Actual Short-term Incentive: The performance-based
The number of full-time equivalent (FTE) employees includes variable bonus amount paid out in the previous 12 months.
This figure may be provided as a percentage of annual base

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locals, local plus, expatriates, union personnel, and contract
staff. Seasonal staff are not included. An FTE of 1.0 is equivalent salary or the actual award amount.
to a full-time worker, while an FTE of 0.5 signals half of a
full-time worker. ►► Target Short-term Incentive: The performance-based
variable bonus amount targeted to be paid for the upcoming
year. This figure is displayed as a percentage of annual base
GEOGR APHIC DIFFERENTIAL salary.
A pay difference set for the same job based on variations in
cost of living or cost of labour among two or more geographical ►► Maximum Short-term Incentive: The maximum or capped
areas. performance-based variable bonus amount. This figure is
displayed as a percentage of annual base salary.

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GUAR ANTEED CASH ALLOWANCES
Cash allowances that are guaranteed to the employee ►► Percentage Receiving: The percentage of employees that
regardless of their performance. Also see Allowances. received a short-term incentive in the prior year.

GROS S PAY LONG-TERM INCENTIVE (LTI)

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The total amount of money earned by an employee in a specific Variable pay based on measures that extend for a period of

LOSSARY
period, before tax and other deductions. Also see Net Pay. more than one year. Their role is to link the financial rewards of
executives and, increasingly, broader levels of employees to the
organisation’s long-term performance. They include stock/share
INCENTIVES options, stock grants, deferred cash compensation, equity-
based, and cash plans.
SHORT - TERM INCEN TIVE ( STI)
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Rewards relating to the performance against selected criteria
over a period of one year or less. These include performance-
related bonuses, sales bonuses, sales commissions, profit-
sharing schemes, other bonuses, and exceptional premiums.
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ABOUT THIS REPORT
►► Performance Cash Units: Conditional grant denominated
in units other than notional or actual shares, with payment
contingent upon achievement of specified performance
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goals over a multi-year performance period. They 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 earnings per share (EPS). Where the value of each unit
is equal to 1, the incentive type is also known as “long-term
cash.”
►► Performance Share Units (PSUs): Conditional grant of
notional or actual shares, with payment or vesting contingent
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upon achievement of specified performance goals over
a multi-year performance period. While the number of
performance shares/share units earned depends on the
extent to which the performance goals are achieved, the
value of each performance share/share unit depends upon
the market value of the share at the end of the performance
period.
►► Restricted Share Units (RSUs): Conditional grants of notional,
actual or phantom shares of stock with vesting contingent
upon employment for a specified period. The value of each
share depends upon the market value of the share at the end
of the vesting period.
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►► Share Appreciation Rights (SARs): SARs 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, with no investment on the part of the incumbent
required. They include phantom appreciation shares, which
are awards denominated in hypothetical shares, the value
of which is based on an increase in actual share value or
another measure of organisation value (e.g., book value).
There are three types of SARs:
►► 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.
LOSSARY
►► Stock/Share Options: The right to purchase company shares
at a stated price (exercise price) for a defined period (option
term). The exercise price is typically equal to the market
price on the grant date, but may be less than or greater than
the market price on the grant date.
LONG - TERM CASH
A pre-determined cash amount paid out contingent upon
achievement of specified performance goals over a multi-year
performance period.
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MARKET PRICING SAL ARY R ANGE
The technique of creating a job-worth hierarchy based on the The established annual range for a position (minimum, control

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“going rate” for benchmark jobs in the labour market(s) relevant
to the organisation. After a preliminary hierarchy is established
based on market pay levels for benchmark jobs, this method
considers job content to ensure internal equity. The process
then “slots” all other jobs into the hierarchy based on whole job
comparison.
point, maximum) reported only for those organisations that have
a formal salary structure. See pay range.
SAL ARY R ANGE MINIMUM
The established minimum (lowest) rate of the salary range for
the position.

NET PAY SAL ARY R ANGE MA XIMUM

The cash-in-hand of an employee, after tax and other The established maximum (highest) rate of the salary range for
deductions. Also see Gross Pay. the position.

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S AL ARY INCRE ASE S AL ARY STRUCTURE
The total increase to salary that may include cost-of-living/ The hierarchy of job grades and pay ranges established within an
inflation and merit increases in the financial year and exclude organisation that may be expressed in terms of job grades, job
promotion and/or market adjustment. evaluation points, or policy lines.

SAL ARY INCRE ASES E X CLUDING Z EROES
Excluding zeroes represents salary increases of companies that
provide an increase in pay (excluding pay freezes).
SAL ARY INCRE ASES INCLUDING Z EROES
Including zeroes represents salary increases of all companies,
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including those with pay freezes.
RE AL SAL ARY INCRE ASE
An increase in salary after factoring in the effects of inflation on
purchasing power.
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LOSSARY
S AL ARY STRUCT URE ADJ USTMENT
An adjustment in the salary structure expressed as the
percentage by which the sum of all midpoints of the new
structure exceed (or lag) the corresponding sum of the
midpoints of the old structure.
T URNOVER
VOLUNTARY T URNOVER
The percentage of employees who resigned voluntarily during
the 12-month reporting period, excluding normal retirement.
This does not include contractors or volunteer staff.

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ABOUT THIS REPORT
IN VOLUN TARY TURNOVER VARIABLE CASH
The percentage of employees who were retrenched or The amount of nonfixed cash, or variable pay, which is a reward

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dismissed by the organisation during the 12-month reporting based on individual, group, or organisational performance rather
period. This includes contract staff that were retrenched or than time spent on the job or the job’s value.
dismissed outside the terms of their contract (that is, it does
not include contract staff that left the organisation merely
because their contracts expired). All redundancies are under
involuntary terminations, regardless of whether they were
voluntary or involuntary redundancies.

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LOSSARY
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ABOUT THIS REPORT
EMPLOYEE LEVELS
EXECU TIVE
These senior-most employees in the organisation generally
include top executives and directors within the organisation, or
employees with managerial responsibilities at the top level of
a business unit or organisation. Executives focus on providing
strategic vision and/or tactical/strategic direction across
multiple functions or sub-functions. May also be referred to
as Senior Executive or Function Head, or in the case of a sales
executive Head of Sales/Marketing.
MANAGEMENT
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These employees with important supervisory and managerial
responsibilities are usually the higher levels within a business
unit or organisation. Management-level employees focus on
managing people and implementing policies and strategies to
meet the organisation’s objectives. They typically report to
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senior managers and (other than sales) functional managers
including finance, human resources, information technology.
MANAGER
Manages teams with focus on policy and strategy
implementation and control rather than development; short-
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term and medium-term operational/tactical responsibilities.
SUPER VISOR AND TE AM LE ADER
Leads/supervises a team of two or more professionals or para-
professionals; first level manager of a work team that could
comprise professionals or para-professionals, technical, and/
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or administrative staff. Typically without budget or hire/fire
authority. Focuses on mentoring, coaching, and coordination.
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PROFES SIONAL
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Typically refers to jobs requiring a professional or technical
qualification. They are individual contributors without
supervisory responsibility, but may provide coaching/mentoring
to less-experienced staff. They typically hold a university
degree or full-trade equivalent.
PROFES SIONAL — SENIOR
Individual contributor who is fully proficient in applying
established standards; knowledge acquired from several years
of experience in particular area. Works independently; may
mentor or coach other professionals.
PROFES SIONAL — EXPERIENCED
Individual contributor who works under limited supervision.
Applies subject matter knowledge and requires capacity to
understand specific needs or requirements to apply skills/
knowledge.
LOSSARY
PAR A - PROFES SIONAL
Typically includes roles that are semi-skilled or unskilled with no
supervisory or management responsibility. They do not require
a university degree, but may require formal professional training
and certification, and may be paid on an hourly or a salaried
basis.
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JOB FAMILY DEFINI TIONS
TOP MANAGEMENT FINANCE AND ACCOUNTING

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This job family works to achieve the company’s operational
and financial goals. Employees help to control, direct, and
participate in corporate activities through a hierarchy of
managers and supervisors. Top managers undertake long-term
strategic planning, determine policies, allocate resources, and
make decisions on growth and diversification to accomplish
corporate goals.
CORPOR ATE AFFAIRS
This job family manages financial and accounting operations.
Areas of responsibility include preparing, collecting, and
interpreting financial information; preparing budgets, reports,
forecasts, and statutory returns; conducting financial analyses
of proposals, investments, and fund sources; managing taxation;
managing cost accounting systems and cash flow; conducting
audits; controlling treasury matters; and ensuring compliance
with regulatory standards.
ADMINISTR ATION

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This job family maintains the organisation’s official and legal
documents and records according to the principles of good
governance to comply with relevant laws and regulations.
LEGAL
This job family handles a range of diverse administrative or
staff functions, which may include finance, human resources,
information technology, planning, supply, and other corporate
services. Activities also include performing administrative and
related support services.

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This job family ensures that the company complies with the

LOSSARY
legal and regulatory requirements of the country(s) where it
operates and strives to maintain positive relations with investors INFORMATION TECHNOLOGY
and regulatory bodies. This job family acquires, designs, implements, and operates
information technology resources, including computer
hardware, operating systems, communications, software
HUMAN RESOURCES applications, data processing, and security. Activities include
This job family manages human resources. Activities include
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developing information technology strategies, policies, and
developing human resources management strategies and
plans; managing the acquisition, implementation, maintenance,
policies to meet business needs; and planning, administering,
and use of information technology resources; and training and
and reviewing activities concerned with recruitment, training
supporting technology users.
and development, compensation and benefits, and employee
relations. In some companies, the activities of this job family
may include payroll, employee communications, and health and
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safety.

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ABOUT THIS REPORT
S ALES AND MARKETING RESE ARCH AND DEVELOPMENT
This job family oversees sales and marketing activities, including This job family’s operations include formulating research

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market research, pricing, sales, and merchandising activities;
marketing campaigns and promotions; business development
activities; customer service; and invoicing, credit, and payment
administration.
strategies; evaluating the cost and benefits of alternative
research opportunities; and undertaking research, design, and
development activities to improve the company’s products and
services.

MARKETING
This job family supports business growth by disseminating
information that promotes a favorable view of the organisation
and its products and services. Activities include developing and
implementing advertising and publicity campaigns; conducting
ENGINEERING
This job family manages engineering and technical operations,
and may involve various branches of the engineering profession
— for example, electronic, environmental, mechanical,
maintenance, or plant engineering. Activities include designing,

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market research; and identifying and predicting current and constructing, testing, and operating equipment; ensuring that
future consumer trends. standards of quality, cost, safety, reliability, timeliness, and
performance are met in production processes; and interpreting
plans, drawings, and specifications.
S ALES
This job family represents the organisation to promote and sell
MANUFACTURING

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its products and services to individuals or other organisations.

LOSSARY
Activities include developing and implementing sales strategies; This job family is responsible for the production activities of
identifying potential customers; managing existing customer manufacturing companies to optimise resource use, minimise
relationships; and monitoring customer and competitor activity costs, and maintain quality standards. Activities include planning,
and industry trends. managing, and reviewing production operations to achieve
output and quality objectives; monitoring expenditures and
forecasting resource inputs; and operating, monitoring, and
CONTACT CEN TRE
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maintaining machines and production equipment.
This job family maintains sound relations with the organisation’s
customers by providing services before, during, and after
a transaction. Activities include managing and maintaining
customer information databases; providing product and service
information; processing customer transactions; and resolving
customer inquiries by working with other organisational units.
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ABOUT THIS REPORT
SUPPLY AND LOGISTIC S QUALI T Y AS SUR ANCE
This job family manages the supply, storage, and transport This job family ensures an environment of continuous

and distribution of equipment, materials, and goods used and
produced. Activities include materials control and planning,
managing supplier relationships, logistics and supply chain
management, purchasing, and inventory control.
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improvement exists in the organisation’s systems, processes,
operating procedures, and work flows in order to achieve
internal and external customer satisfaction. Activities include
developing quality objectives; documenting procedures;
implementing and monitoring quality measurement
methodologies; delivering training; and leading the organisation
through national or industry quality certification processes.

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LOSSARY
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ABOUT THIS REPORT
MERCER’S TOTAL REMUNER ATION SUR VE YS (TRS)

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Mercer conducts TRS in more than 100 countries. Each TRS ►► Impact and contribution to business unit results
includes data for a set of core benchmark positions and, in many
markets, industry-specific positions such as consumer goods, ►► Communication
pharmaceuticals, and high-technology. Mercer’s TRS allows
access to market data for pay and benefits, as well as the ability ►► Innovation
to generate statistics tailored to an organisation’s needs via
Mercer’s online delivery tool, Mercer WIN®. ►► Required knowledge

Risk is an optional factor that may be used in high-risk industries

MERCER’S INTERNATIONAL or professions. Each factor is divided into degrees, which have
POSI TION EVALUATION ( IPE ) SYSTEM individual weightings. The system facilitates a review of positions

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Mercer surveys around the world are based on the International
Position Evaluation (IPE) system. IPE relies on evaluating
positions, not the employees holding those positions — because
the qualifications and performance of incumbents can differ
from what positions actually require. Position evaluation is not
within a company, as well as across companies and industries.
PO SI TION CL AS S TERMS
Position class (PC) is the Mercer level created using Mercer’s
International Position Evaluation (IPE) system. Typical PCs for

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just a tool for salary comparisons, but is also instrumental in different employee levels are:

LOSSARY
recruiting, career planning, designing corporate structures, and
dealing with expatriate compensation and planning. ►► Executive: PCs 57–62
Pay data within each country matches the core benchmark ►► Management: PCs 52–57
position structure, using Mercer’s IPE methodology — ensuring
that position levels are consistently and accurately matched, ►► Professional: PCs 47–52
regardless of the country or industry. The IPE focuses on four
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dimensions: ►► Para-professional: PCs 42–47
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ABOUT THIS REPORT
S AMPLE JOB TI TLES
Executive (PCs 57–62): Head of Organisation, Head of
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Operations, Head of Legal, Head of Human Resources, Head
of Communications, Head of Finance, Head of Information
Technology, Head of Sales & Marketing, Head of Business
Development, Head of Engineering, Head of Manufacturing
Head of Supply Chain, Head of Quality
Management (PCs 52–57): Compliance Manager, Human
Resources Manager, Employee Relations Manager, Payroll
Manager, Finance Manager, Credit & Collections Manager,
Accounting Manager, Budget Manager, IT Manager, Information
Security Manager, Business Development Manager, Marketing
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Manager, Customer Service Manager, Purchasing Manager
Professional (PCs 47–52): Public Relations Professional,
Legal Counsel, Human Resources Generalist — Specialist,
Human Resources, Compensation Analyst, Benefits Analyst,
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Accountant, Database Administrator, Marketing Analyst , Sales
Representative, Channel Sales Representative, CAD Drafter,
Environmental Engineer
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Para-professional (PCs 42–47): Legal Assistant, Payroll Clerk,
Cashier, Accounting Clerk, Executive Secretary, Secretary,
Administrative Assistant, Security Guard, Receptionist, Personal
Driver, Marketing Assistant, Customer Service Representative,
Carpenter, Production Worker, Warehouse Clerk
MERCER ’S UNIVERSAL POSI TION
CODE SYSTEM® (MUPC S)
Mercer’s MUPCS framework is a sophisticated, flexible position
coding system used globally in Mercer TRS. Designed to reflect
accurately how a company’s structure works around job families
and career levels/progressions, the MUPCS framework is a
robust methodology that allows consistent benchmark coding
when analyzing pay across borders. The “smart” aspect of
MUPCS (for example, families, subfamilies, career streams, and
levels) lets users analyse remuneration trends and relationships
beyond the traditional one-dimensional perspective of “jobs.”
LOSSARY
SHORT-TERM INCENTIVES AROUND THE WORLD — SAMPLE 42
ABOU T MERCER
At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers.

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We’re in the business of creating more secure and rewarding futures for our clients and their employees — whether we’re designing
affordable health plans, assuring income for retirement, or aligning workers with workforce needs. Using analysis and insights as
catalysts for change, we anticipate and understand the individual impact of business decisions, now and in the future. We see people’s
current and future needs through a lens of innovation, and our holistic view, specialized expertise, and deep analytical rigor underpin
each and every idea and solution we offer. For more than 70 years, we’ve turned our insights into actions, enabling people around the
globe to live, work, and retire well. At Mercer, we say we Make Tomorrow, Today.

Mercer LLC and its separately incorporated operating entities around the world are part of Marsh & McLennan Companies, a publicly
held company (ticker symbol: MMC) listed on the New York, Chicago, and London stock exchanges.

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For further information, please contact your local
Mercer office or visit our website at
www.imercer.com

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