total compensation intelligence
See, Understand and Account forPerformance Cash and Share-based Compensation
Dan Walter, CEPPresident and CEO, Performensation Consulting and Solutions
www.performensation.com
total compensation intelligence
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
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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
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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
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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
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View Performance Factors and Details
• Audit data from automated sources
• Understand impact of each metric
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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
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Reporting Module
• Report menu controlled by password
• Customizable report names
• Customize parameters, including frequency and distribution
• Store preferred set-up in “My Reports”
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Report Parameters
• User defined Selection, Sort and Grouping
• “What-if” support• See what reports would
look like with metrics at projected levels
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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
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Report Delivery
• MS Excel• PDF• RTF• Comma and Tab
Delimited
On-screen viewing
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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
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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
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Extensive Report Formats
• Many preset formats available• Full customization also supported
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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
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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
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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