Towers Watson Data Services Private · PDF file · 2013-06-06not only on having the best data, but also ... Deal Origination • Deal Origination Director/ ... Private Equity...

Private Equity The Leading Global Provider of Compensation,

Benefits and Employment Practices Information

2013

Towers Watson Data Services

At Towers Watson, we know that effective compensation decisions depend not only on having the best data, but also on having access to a single consistent source to minimize the time demands and complexity of data management. Our Private Equity Compensation Surveys are global, with consistent content and formats — providing both multinational and local companies with a common way to analyze data across borders and industry sectors.

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Private Equity 3

Towers Watson Data Services Delivers Fully Integrated Total Compensation Data Solutions

The Private Equity Compensation Survey builds on our experience in serving the data and consulting needs of this industry for more than 20 years. By joining our survey you have access to information

and consulting resources not available from any other source. And you’ll have the assurance of working with a global leader in compensation, benefits and HR consulting.

One Comprehensive Source of Data for all your Private Equity Compensation Data Needs

Additional Products and ServicesAdditional reports and sector-specific surveys such as:

• United Kingdom sub-survey reports: for Buy-Out, Development/Venture Capital, Fund of Funds/Secondaries and Real Estate funds

• Infrastructure Fund Managers Compensation Survey: conducted in Australia, North America, and the United Kingdom

Financial Services Compensation Survey:

• Conducted across 17 countries with over 2,000 participants globally, with all levels covered

Segments include:

• Asset Management, Capital Markets and Investment Banking, Commercial Finance, Fund

Administration, Fund Management, Investments and Securities Brokerage, Transaction Services and Trusts and Other Fiduciary Income Services

• Published reports on Retirement, Risk Benefits and Employment Terms and Conditions

• Custom surveys • Job-matching assistance • Access to local country and sector experts • Local, regional or global account management • Forums which provide updates on the latest thinking in HR and networking opportunities

• Compensation consulting including the design and implementation of Private Equity incentive plans such as annual bonus, carried interest and co-investment plans

Feature Private Equity Compensation Survey

Participants • Over 100 companies

Geographic Coverage • 21 countries: Australia, Belgium, Brazil, Canada, China, Colombia, France, Germany, Hong Kong, India, Italy, Luxembourg, Malaysia, Mexico, Netherlands, Singapore, Spain, Sweden, Switzerland, United Kingdom and the United States

Positions • Entry level support through to senior executives: • 90+ investment professional and support positions • 18 Functions covering entry level support through to senior executives

Data Elements • Base salary • Annual bonus • Total cash • Long-term incentive eligible/receiver prevalence • Individual allocations of carried interest • Total capital working/money at work • Car data • Scope data and modifiers • Design features of carried interest and co-investment plans • Design features of annual bonus plans • Benefits prevalence • Fund information

Output Options • Published PDF report and spreadsheet format

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Survey Methodology Robust Results ... Global Consistency

Our approach integrates benchmark descriptions with critical scoping measures, such as organization type (captive/independent), focus of investments, international responsibility and size of funds under management.

Senior Management • CEO/Managing Partner • Chairman • Deputy CEO/Managing Partner

• Chief Operating Officer/Unit Head

• Finance Director/CFO • Human Resources Director

Investment Team • Senior Director/Partner • Director/Partner • Senior Investment Manager • Investment Manager • Junior Investment Manager • Analyst

Deal Origination • Deal Origination Director/Partner

• Deal Origination Senior Manager

• Deal Origination Manager

Portfolio Managers • Senior Portfolio Director/Partner

• Portfolio Director/Partner • Senior Portfolio Manager • Portfolio Manager

Compliance • Compliance Director • Compliance Manager • Compliance Professional • Junior Compliance Professional

Finance • Financial Controller • Accounts Payable/Receivable • Financial Accounting • Accounting Manager • Senior Accountant • Accountant • Junior Accountant

Carried Interest Accounting • Accounting Manager • Senior Accountant • Accountant • Junior Accountant

Fund Accounting • Accounting Manager • Senior Accountant • Accountant • Junior Accountant

Management Accounting • Accounting Manager • Senior Accountant • Accountant • Junior Accountant

General Accounting/Generalist • Accounting Manager • Senior Accountant • Accountant • Junior Accountant

Tax • Head of Tax • Tax Manager • Tax Professional • Junior Tax Professional

Human Resources • Human Resources Manager • Senior Human Resources Professional

• Human Resources Professional

• Junior Human Resources Professional

Information Technology • Head of IT • IT Manager • Technical Specialist • Junior Technical Specialist

Investor Relations • Investor Relations Director • Investor Relations Manager • Investor Relations Professional

• Junior Investor Relations Professional

Legal • Company Secretary • Head of Legal • Senior Lawyer • Lawyer I • Lawyer II • Lawyer III • Junior Lawyer • Paralegal

Marketing • Marketing Director • Marketing Manager • Marketing Professional • Junior Marketing Professional • Market Data Services Analyst

Risk Management • Head of Risk Management • Risk Manager

Secretarial/Administrative Support • Office Manager • Executive Secretary • Senior Administrator • Secretary • Administrator • Receptionist

Sample Private Equity Compensation Survey Positions

Private Equity 5

Market Overview

• Profile of participants • Base pay increases • Anticipated base pay increases • Annual bonus and general staff bonus plans • Base pay and total cash amongst captives and independents

• Year-on-year comparisons over a constant sample

• Long-term incentives • Equity participation plans – carried interest and co-investment

• Benefits and other terms of employment findings

Comparison to the Market by Incumbent

• Comparison tables of each of your submitted incumbents against the rest of the market statistics (by request)

Summary Compensation Analysis

• By position • By position and scope measures (focus of investments and international responsibility)

• By position and company type (Captive and Independent)

Analysis of Base Pay Movements

Selected Pay Practices and Benefits

Access Results in PDF and Spreadsheet Formats

No

Private Equity Compensation SurveyPosition Summary Table − Total Sample

Position : VC30 − Director/Partner In larger private equity firms will be responsible for leading and executing the origination, structuring and distribution of transactions. In smaller private equity firms, may play an active role in the origination, structuring and distribution of transactions. Identifies fee generating opportunities and advises clients’ senior management. Responsible for the quality of the decision, execution and monitoring of investments and fee generating activities. Graduate with a minimum of 10 years experience in Private Equity.

75%ileMedian25%ileMeanCasesCompaniesCASH COMPENSATION SUMMARY

291,937167,740154,715193,15416645Base Pay 6.41.50.04.310536Last Base Pay % Increase − includes 0s

10.75.82.58.45421Last Base Pay % Increase − excludes 0s

147803811313838Annual Bonus % 2009 Base Pay − includes 0s 180924512412637Annual Bonus % 2009 Base Pay − excludes 0s

250,000135,84660,000275,04215741Annual Bonus − includes 0s 271,999149,99971,000292,17914339Annual Bonus − excludes 0s

509,999372,996289,684537,88516144Total Cash 628,899495,000391,630644,95916144Total Cash plus LTIs

8,4057,2925,5007,8655412Annual Car Allowance

INCUMBENT PROFILE1073715843Length of Service 151210137226Years of Experience 4439374113038Age

Focus of Investments Long−Term Incentives Co−InvestmentCarried InterestAnnual Incentive Bonus Large Buyouts %3Eligible %11Eligible %15Eligible %67Performance Bonus 85%Mid−Market Buyouts %14Not Eligible %98Not Eligible %1Not Eligible %5Guaranteed Bonus 1%Small Buyouts %0 No Plan in Place %84No Plan in Place %91Exceptional Bonus 0%Development Capital %2 Zero Performance Bonus 8%Venture Capital %6 Insufficient Service 3%Fund of Funds %9 Not Bonus Eligible 3%Secondaries %6 No Bonus in Place 0%Infrastructure %91 Real Estate %7 Mezzanine %3

%6 rehtO

Company Type International Responsibility

Investment Committee Membership

Job Match Indicator Car Allowance/Company Car

Independent Single Country Greater Scope %0 raCCaptive Multi−CountrySameAllowance34%

Worldwide/Multi−RegionLess Scope Choice4%None63%

CompSource Towers Watson Data ServicesPublished Tools HelpContact Us

53%47%

45%47%9%

Yes71%29%

8%87%

5%

Report formats and pay elements may vary by country to reflect unique local practices.

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Our Core Strengths

Our industry knowledge, cutting-edge technology and unique survey methodology deliver the most current, high-quality compensation data available.

Provider of ChoiceOur robust surveys cover all aspects of compensation, including long-term incentives and benefits policies and practices. For more than 60 years, human resource professionals have turned to Towers Watson Data Services for the quality pay data they need to develop and administer their pay programs.

Company CoverageOur surveys contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world’s largest conglomerates.

Local Expertise and Global ReachOur extensive global network of dedicated in-country experts is unmatched in terms of geographic and industry expertise.

Our in-country experts apply their local knowledge of the varied employment markets, practices and customs to deliver a complete picture that can be used to create sound, market-based pay programs for entire organizations.

North America • Canada* • United States*

Latin America • Argentina* • Brazil* • Chile • Colombia • Costa Rica • Dominican Republic • Ecuador • El Salvador • Guatemala • Honduras • Mexico* • Nicaragua • Panama • Paraguay • Peru • Puerto Rico • Uruguay • Venezuela

Asia Pacific • Australia* • Bangladesh • Brunei • Cambodia • China* • Hong Kong* • India* • Indonesia* • Japan* • Korea* • Laos • Malaysia* • Myanmar • New Zealand • Pakistan • Philippines* • Singapore* • Sri Lanka • Taiwan* • Thailand • Vietnam*

• Albania • Algeria • Austria • Azerbaijan • Bahrain • Belarus • Belgium* • Bosnia-Herzegovina • Bulgaria • Croatia • Cyprus • Czech Republic • Denmark • Egypt • Estonia • Finland • France* • Georgia • Germany* • Ghana • Greece

• Hungary • Iraq • Ireland* • Israel • Italy* • Ivory Coast • Jordan • Kazakhstan • Kenya • Kuwait • Latvia • Lebanon • Libya • Lithuania • Luxembourg • Macedonia • Moldova • Montenegro • Morocco • Netherlands* • Nigeria

Europe, Middle East and Africa

Private Equity Compensation Survey Coverage in 21 Countries

Private Equity Compensation Survey * General Industry Executive Compensation Survey

Leaders in Long-Term Incentive DataOur surveys cover practice, prevalence, design and valuation for all long-term plan types. A global long-term incentive valuation methodology underpins all surveys.

Consistency, Reliability and High QualityOur consistent survey methodology reflects our extensive knowledge and experience in job leveling, job architecture, our understanding of how cross-industry and industry-specific jobs are structured and how they evolve as industries change. This ensures accurate and meaningful comparisons of data across all countries and regions of the globe.

Research DrivenTowers Watson makes significant investments in technical resources (e.g., legal, tax, statutory research) and tracking market practices (e.g., executive pay and benefits surveys, compensation and benefits policies and practices).

Global Reach. Local Market Expertise

Results will be available assuming sufficient participation. For more information please contact one of our regional data centers, your local Towers Watson office or visit www.twdataservices.com.

• Norway • Oman • Poland • Portugal • Qatar • Romania • Russia* • Saudi Arabia • Senegal • Serbia • Slovakia • Slovenia • South Africa • Spain* • Sweden* • Switzerland* • Tunisia • Turkey* • Ukraine • United Arab Emirates • United Kingdom*

Private Equity 7

Towers Watson Data Services

Regional Data Centers

Asia Pacific Latin AmericaManila

Email: [email protected]

Phone: +63 2 902 0777

Fax: +63 2 902-0700

SingaporeEmail: [email protected]

Phone: +65 6880 5688

Fax: +65 6880 5699

Miami

Email: [email protected]

Phone: +1 866 824 5815 (toll free)

+1 954 767 1345 (outside the U.S.)

Fax: +1 954 430 0345

Europe, Middle East and Africa North AmericaBrussels

Email: [email protected]

Phone: +32 2 678 15 11

Fax: +32 2 675 36 01

London

Email: [email protected]

Phone: +44 20 7170 2999

Fax: +44 20 7170 2222

Canada

Email: [email protected]

Phone: +1 877 550 4402 (toll free)

+1 416 960 2700 (outside Canada)

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United States

Email: [email protected]

Phone: +1 800 645 5771 (toll free)

Phone: +1 914 289 3200 (outside the U.S. and Canada)

Fax: +1 914 289 3201

Copyright © 2013 Towers Watson. All rights reserved.TW-EU-2012-28585. January 2013.

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Towers Watson Data ServicesTowers Watson Data Services is a leading provider of compensation, benefits and employment practices information to the global employer community. Our databases are recognized worldwide as the most reliable source of current data for compensation planning.

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About Towers WatsonTowers Watson is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. With 14,000 associates around the world, we offer solutions in the areas of employee benefits, talent management, rewards, and risk and capital management.