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Thank you for taking the time to answer this self-contained module as part of your interview process with Google's Compensation team.

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In addition to being reviewed for excel skills, your case study will be printed and presented to executives if your candidacy progresses.

Please make sure that your responses are sized to print on 8.5" x 11" page(s) and that your work is easily understood. Explain how your calculations work and think carefully
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 Compensation Data
Base Target Total Target Total Direct
Salary Bonus (% Cash Shares of Grant Compensation
CEO ($000s) of Base) Compensation Stock Price Stock Value ($000)
Bill $100 200% $300 10,000 $22.00
Sue $200 100% $400 15,000 $33.00
Bob $150 75% $263 22,500 $10.00
Stan $300 130% $690 0 N/A
Jenny $134 125% $300 7,500 $12.00
Sara $267 60% $427 7,500 $13.89
Tim $156 75% $273 1,800 $160.00
John $117 80% $211 0 N/A
Leann $234 100% $468 3,000 $19.87

Company CEO Industry Revenue ($MM)

A Stan Advertising $430
B Sara Tech $619
C Leann Tech $1,070
D John Advertising $892
E Bill Advertising $100
F Sue Advertising $120
G Lucy Tech $207
H Bob Tech $358
I Jenny Tech $516
J Tim Tech $743
K Tom Tech $144
L Steve Advertising $173
M Kelly Advertising $249
N Stephanie Advertising $299
 Questions to Answer
1) What is the highest/median/lowest Total Target Cash Compensation?

2) Who received the largest stock grant as a % of base? In absolute dollar terms?

3) What is the relationship between Total Direct Compensation and company size?

4) What is the market compensation for a company with ~$500mm in Revenues? Structure
the calculation to be flexible based on a variety of sizes (i.e. if the question were changed to
~$800mm, could you quickly refresh the model and come up with an answer on the spot?

5) What is the average base salary in the Advertising industry?

 Kun Zhang
Google Compensation Excel Exercise

1) What is the highest/median/lowest Total Target Cash Compensation?

Compensation Data
Target Total Target Total Direct
Base Salary Bonus (% of Cash Shares of Compensation
CEO ($000s) Base) Compensation Stock Grant Price Stock Value ($000)
Bill $100 200% $300 10,000 $22.00 $220,000 $520,000
Sue $200 100% $400 15,000 $33.00 $495,000 $895,000
Bob $150 75% $263 22,500 $10.00 $225,000 $487,500
Stan $300 130% $690 0 N/A $0 $690,000
Jenny $134 125% $300 7,500 $12.00 $90,000 $390,375
Sara $267 60% $427 7,500 $13.89 $104,175 $531,375
Tim $156 75% $273 1,800 $160.00 $288,000 $561,000
John $117 80% $211 0 N/A $0 $210,600
Leann $234 100% $468 3,000 $19.87 $59,610 $527,610

Highest Stan
Median Jenny
Lowest John

2) Who received the largest stock grant as a % of base? In absolute dollar terms?

Assumption: Since it doesn't state stock options, I will assume these are stocks at the fair market value (FMV) the day
the stock was issued, hence value will be calculated as the number of shares multiplied by the grant price.

FMV of
Base Salary Stock
CEO ($000s) Issuance % of Base
Bill $100 220,000 220% Largest % of Base Sue
Sue $200 495,000 248% Absolute Sue
Bob $150 225,000 150%
Stan $300 0 0%
Jenny $134 90,000 67%
Sara $267 104,175 39%
Tim $156 288,000 185%
John $117 0 0%
Leann $234 59,610 25%
 Kun Zhang
Google Compensation Excel Exercise

3) What is the relationship between Total Direct Compensation and company size?

CEO Salary
Revenue as a % of
Company CEO Industry ($MM) Revenue
E Bill Advertising $100 0.5200% Notes: Companies G, K, L, M,
F Sue Advertising $120 0.7458% N were excluded as their
H Bob Tech $358 0.1361% CEO compensation was not
disclosed in the first table.
A Stan Advertising $430 0.1605%
One assumption was made,
I Jenny Tech $516 0.0757% the company size was solely
B Sara Tech $619 0.0858% based off of CEO Total Direct
J Tim Tech $743 0.0755% Compensation, as other data
D John Advertising $892 0.0236% is not given.
C Leann Tech $1,070 0.0493%

The Total Direct Compensation (TDC)/revenue seems to be smaller for companies with larger revenues. It seems
Advertising has a higher TDC/Revenue, on average, than Technology.

4) What is the market compensation for a company with ~$500mm in Revenues? Structure the calculation to be
flexible based on a variety of sizes (i.e. if the question were changed to ~$800mm, could you quickly refresh the
model and come up with an answer on the spot?

Total Direct
Revenue Compensatio
Company CEO Industry ($MM) n
E Bill Advertising $100 $520,000
F Sue Advertising $120 $895,000
H Bob Tech $358 $487,500
A Stan Advertising $430 $690,000
I Jenny Tech $516 $390,375
B Sara Tech $619 $531,375
J Tim Tech $743 $561,000
D John Advertising $892 $210,600
C Leann Tech $1,070 $527,610

Revenue ($MM) 500

Notes: After desired revenue is entered, the two points on
either side of the point is determined (for $500MM, the two
Number 1 Number 2 are $460MM and $516MM) and the TDC is calculated for
($MM) $430 $516 each. Next, the distance from the lower point is calculated
TDC #MACRO? $390,375 to determine the weighted average.
Distance from
1 0.81
Wgt Average #MACRO?

5) What is the average base salary in the Advertising industry?

Base Salary
Company CEO Industry ($000s)
E Bill Advertising $100 Average Base Salary in Advertising
F Sue Advertising $200
H Bob Tech $150 ###
A Stan Advertising $300
I Jenny Tech $134
B Sara Tech $267
J Tim Tech $156
D John Advertising $117
C Leann Tech $234