gems - automation for complex performance goals

total compensation intelligence

See, Understand and Account forPerformance Cash and Share-based Compensation

Dan Walter, CEPPresident and CEO, Performensation Consulting and Solutions

[email protected]

www.performensation.com


What is GEMS?• A system that tracks, manages and communicates

– The 11 types of performance-based equity

– Incentive-based cash compensation

– Performance compensation with deferral components

– Point-based reward systems

• A comprehensive data integration, translation and normalization tool for multiple data sources and formats

• A corporate reporting and analysis system

• A participant portal and scorecard producer

• The ultimate bridge between finance, accounting, compensation, human resources and stock administration


Why GEMS?• Manage virtually any performance criteria

• Goals are automatically updated from HR, Finance and Payroll systems

• Combine multiple performance metrics into complex goals for a single award or group of awards

• Track the achievement probability of each metric

• Communicate status directly to participants

• Meet 409A deferral requirements by providing accurate notification

• Update equity administration software, FAS 123R systems and outsourcing providers

• Provide real-time updates to management

• Cost effective, powerful and time-tested


The Elements of Performance

Vesting PeriodMeasurement Date

Income and Tax DateDate of Award

Payout Date

Reason/Purpose for AwardExplanation of Metrics

Specific Equity InstrumentPerformance Drivers

Company Vs PeersYear over Year

Individual MetricsInterdependent GoalsPositives Vs Negative

Relative TSRROI

EBITDA/EBITRevenue Growth

Net Income

WHOOfficers

IndividualsTeams / GroupsCompany-wide

HOW WHY

WHENWHAT


Data Integration and Normalization

VendorSystemsVendorSystems

AnnualReviewAnnualReview

GeneralLedgerGeneralLedger

StockPricesStockPrices ERPERP HRISHRIS Data

WarehouseData

Warehouse

ONLINE REPORTS EXPORTSResults - ScorecardsTrends - ProjectionsModeling - Analysis

Charts - Graphs - Data

Password ControlledStandard - Custom - What-ifBatches - Distribution ListsExcel, PDF, RTF, Delimited

Stock Administration SystemFinance - Accounting

HR - Payroll - CompensationData Warehouse

Calculate

Communicate

Consolidate


View Performance Factors and Details

• Audit data from automated sources

• Understand impact of each metric


Add & Edit Parameters

• User interface for “soft” goals and non-automated metrics

• Modify automated data as required

• Full Audit trail for entry, modification and deletion


Reporting Module

• Report menu controlled by password

• Customizable report names

• Customize parameters, including frequency and distribution

• Store preferred set-up in “My Reports”


Report Parameters

• User defined Selection, Sort and Grouping

• “What-if” support• See what reports would

look like with metrics at projected levels


Report Batches and Custom Distribution Lists

• Save batches of reports with preset parameters for repeat use

• Run all at once and distribute to defined groups

• Send reports to specified individuals

• Send reports to everyone in a department

• Send reports to all managers

• Create distribution lists and link them to report batches


Report Delivery

• MS Excel• PDF• RTF• Comma and Tab

Delimited

On-screen viewing


Participant Dashboard• Provides multi-view

arrangement of pertinent data

• Interactive mix of charts and data

• Each line item and chart element drills down to supporting details

• Multiple tabs support multiple time-periods, performance views, groups etc.

• Managerial access for quick performance reviews with staff members

• Custom mix for every client


Participant Scorecard• Fully customizable

data elements and information breakdown

• Printable report available to participants on-demand

• Managers can run for their reports

• Details multiple metrics, vesting periods and periods

• Displays minimums, targets and maximums

• Can show proximity to goal and projected ending result


Extensive Report Formats

• Many preset formats available• Full customization also supported


Built-in Data Integration and Normalization

• Scripted conversion for each data source

• Understandable field names• Translation and normalization

of all fields• Scheduling and recurrence

functions• Online data audit and

integration history


Built-in Data Integration and Normalization

• File Downloads to FTP Site• Disks / CDs / DVDs / Tapes• Robust Reject Data

Management• Open Database Design for Data

Extract


Thank You

Out Manage - Out Perform - Out Succeed

About Performensation• Headquartered in San Francisco, California• Data center in Salt Lake City, Utah• In business since 2006• 15 years of experience in compensation• 26 years of experience in performance managementOur focus is bridging the gaps that inhibit effective compensation programs• We build strong partnerships to bring the best solutions to corporations, vendors

and consultants• We work with all equity compensation software and outsourcing providers• Initial GEMS release in 2008

– The only tool designed to handle complex performance-based equity, non-qualified deferred compensation and cash compensation programs

gems - automation for complex performance goals

Technology

automated data

batches of reports

compensation data warehouse

multiple performance

performance cash

report batches

types of performance

performance criteria