Survey for Laurent

General Practices and Grants by Salary Level

For your most recent grant, indicate changes to the plan from the prior year.

	1. Status Quo/No Change	2. Added Plan	3. Increased Weight*	4. Dropped Plan	5. Decreased Weight*
a. Stock Options/SARs

b. Restricted Stock/Stock Units

c. Performance Plan Awards

How did the total number of participants change in your most recent grant?

1. About the same - no significant policy change

2. Increased participation

3. Reduced participation

What changes are being considered for future long-term incentive (LTI) awards? (check all that apply)

In which calendar quarter does your primary annual LTI grant occur? (check only one which best represents your primary grant)

1. 1st quarter

2. 2nd quarter

3. 3rd quarter

4. 4th quarter

5. Company makes regular grants in multiple quarters

How often are LTI/equity grants adjusted/recalibrated based on changes in market data?(check only one)

1. Annually, "mark-to-market" every year as market values fluctuate

2. Periodically, when there is a significant change in market values

3. Averaging, market data is averaged over several years to smooth volatility

How are your organization's LTI economic values calculated when determining annual awards?(check only one)

1. Use ASC 718 (formerly FAS 123[R]) values

2. Use third party/consultant valuations

3. Use separate internal valuations

What is your approach to setting annual awards? (check only one)

1. Target economic value

2. Fixed number of shares (Go to question 13)

3. No set approach (Go to question 13)

If your approach to setting annual awards is target economic value, how is it expressed? (check only one)

Multiple of pay

Flat dollar amount

Individual Participation/Awards

How is the actual participation rate for the annual grant for eligible employees determined?(check only one)

All (100%) eligible employees automatically participate (unless on a performance plan)

There are prescribed participation rates (e.g., 75%) at various salary levels

Suggested participation guidelines are provided, but management exercises discretion

No formal process for determining participation - at management discretion

Are business-line managers given some flexibility and latitude to determine LTI awards sizes?(check only one)

1. No, corporate prescribes the awards for each position/salary range with no flexibility

(If no, go to question 18)

2. Yes, corporate provides LTI guidelines which specifies award size by level/position, but this can be adjusted

3. Yes, corporate provides LTI guidelines which specifies a range with a midpoint, high and low, and managers can adjust within the range

How often do managers typically deviate from the guidelines? (check only one)

1. Almost never

2. Sometimes

3. Frequently

4. Almost always

When deviating from guidelines, how do managers determine the adjustments? (check only one)

1. Management discretion

2. Performance rating/management system

3. Talent management framework

Other

Stock Ownership Guidelines

What are the ownership targets for the following levels?

	1. Multiple of Pay	2. Fixed Shares	3. Target Total Value
a. Outside/Non-Executive Directors

b. CEO

c. EVP

d. SVP

e. VP

Stock Options (SO)

Type of Plan

Indicate the type of grant for each reported plan

1. Stock Options (Provide the recipient with a right to buy a fixed number of shares of a company’s stock at a stated price for a specified period of time.)

2. Stock Appreciation Rights (SARs)/Phantom Stock ( If SAR go to question 3) (Are rights to receive payment equal in value to the appreciation on a share of stock.)

Form of Grant (U.S. Stock Options only)

Form of stock option grant: (check only one)

Incentive Stock Options (ISOs) only

Non-Qualified Stock Options (NQSOs) only

Combination of ISOs/NQSOs

Option price of the most recent grant: (check only one)

1. 100% of market value

2. Premium over market value (e.g., if option exercise price = $150 and fair market value = $100, enter 150)

3. Discount from market value (e.g., if option exercise price = $85 and fair market value = $100, enter 85)

4. Exercise price indexed to external metric

Award term (e.g., if awards expire 10 years from grant, enter 10.00)::

years

Are dividend equivalents attached to the grant?

Yes

No

Are grants subject to limitations ("cap") on the amount of appreciation on exercise gains?

Yes

No

Indicate the vesting schedule from the date of grant until the grant is fully exercisable. For a plan with vesting not based on performance criteria:

Example 1: If your plan provides that options can be exercised after grant in four equal annual installments, enter your response as shown.

	% of Grant Exercisable
Vesting Time Period

a. Immediately upon grant

b. End of year 1

c. End of year 2

d. End of year 3

e. End of year 4

For a plan with vesting contingent upon meeting performance criteria based on other performance measures.

Example 2: If the performance criteria are based on a growth rate of 15% or more in revenues for the first three years, enter your response as shown.

	% of Grant Exercisable
a. Immediately upon grant

b. End of year 1

c. End of year 2

d. End of year 3

Indicate the performance criteria in order for the award to lapse. If a specific percentage of the award is subject to the performance condition, report the % of the award governed by the condition. If the performance measure is a modifier or "circuit-breaker", leave the percentage blank.

Check all that apply

% of award

a. Revenues

b. EPS

c. Net Income

d. EBIT/Operating Income

e. EBITDA

Accounting Return/Margin Metrics:

Check all that apply

% of award

a. Return on Investment (ROIC, ROC, ROCE, RONA)

b. Return on Assets (ROA)

c. Return on Equity (ROE)

d. Operating Margin

e. Net Profit Margin

f. Gross Margin