Compensation Resources, Inc. Releases Its Year-end Compensation Survey

Upper Saddle River, N.J. - December - Compensation Resources, Inc. has released the results of its Year-End Compensation Survey. The purpose of this study was to obtain compensation data used for trending and planning purposes at companies of all sizes and shapes. Data was compiled from survey questions that were developed by CRI and distributed to companies in over industrial classifications, in addition to Not-for-Profit organizations. The survey sampled year-end compensation data from a variety of organizations, collected in October and November . Results indicated that the average merit/salary increase for all employee functional groups was .% in , and .% is the average projected merit/salary increase for all groups in . Companies that have more than , employees showed the lowest merit/salary increases in and projected among all other company sizes. Among all survey participants, the number of layoffs, hiring freezes, and salary freezes are expected to decrease from to . Results indicated that target awards for Short-Term Incentive Plans are much higher in Publicly-Traded companies as opposed to Privately-Held companies and Not-for-Profit companies. Results also revealed that target awards as a percentage of base salary increase as revenues increase. Overall, in terms of Long-Term Incentive Plans, Non-Qualified Stock Options are the most commonly provided plans, which are closely followed by cash bonuses. Stock Appreciation Rights are the least commonly used Long-Term Incentive Plans. Results also indicated that companies with higher revenues provide many more Long-Term Incentive Plans than companies with lower revenues. Overall, in terms of the Compensation Package Mix, base salary makes up the largest percentage of the mix, followed by Long-Term Incentives and then Annual Bonus/Incentives. Some additional highlights:

MERIT/SALARY INCREASE ACTION EXPERIENCED Group Projected Action Projected

Executive .% .% Layoffs .% .% Management .% .% Hiring Freezes .% .% Exempt Salaried .% .% Staffing Increases .% .% Non-Exempt Salaried .% .% Salary Freezes .% .% Hourly/Production .% .% Cutbacks in pay .% .% All Groups Average .% .%

During the months of November and December , CRI surveyed companies online to inquire about their year-end bonuses. .% of the companies indicated that their bonuses would be higher than they were in . In a similar survey CRI conducted in year-end , only .% of the companies indicated that their bonuses would be higher than they were in . Some additional details:

CHANGE IN BONUSES Change Year-End Year-End Lower than the prior year .% .% The Same as the prior year .% .% Higher than the prior year .% .%

Determining pay strategies can be a very difficult and tedious task; therefore, CRI recommends companies take the following approaches:

understand your employees perceptions about the total compensation package; measure the distinct value of the reward to employee commitment and the organization; and communicate to your employees about the business and the financial impacts of their rewards.

It is also important to remember that the total compensation package is not just about pay; it is also about the work culture, hours, benefits, career development, and promotional increases. Compensation Resources, Inc. (CRI) provides compensation and human resource consulting to a broad range of companies including start-up, emerging, and middle market companies. CRI specializes in Executive Compensation, Board Advisory Services, Salary Administration, Performance Management, Salary Administration, Sales Compensation, and Expert Witness services. For more information on our consulting services, please contact us at () - or visit our website at www.compensationresources.com. If you would like to order the complete report of the Year-End Compensation Survey, please contact Kim A. VanDeWalle at -- x .