Salary/bonuses | Deferred compensation | Equity programs | Retirement programs
Our compensation approach is to target base pay and benefits at the industry norm, while providing variable cash bonuses based on company and individual performance.
We compensate employees with market-competitive salaries. We reward exceptional performance, regardless of age, gender, race, ethnicity or other personal characteristics, with higher pay. In addition to base salaries, we have a profit-sharing plan that pays cash bonuses based on our annual profitability.
Our performance-driven bonus structure pays out based on the company's absolute and relative performance. An employee's performance during the year dictates whether they will receive a reward, as well as the amount they will receive.
Our deferred compensation plan offers eligible highly compensated employees the opportunity to defer a portion of their base pay, bonuses and profit sharing. Employees can select the deferral amount and the timing of the deferral within the rules of the plan.
We offer an employee stock purchase plan that allows employees to buy company stock at a 15 percent discount four times a year. Employees can pay for stock through payroll deductions and may sell the shares at any point in the future.
We also selectively grant equity awards to attract and retain key employees who are vital to the company's future success. The use of equity is tied to market practice and is intended to align with the interests of our shareholders.
Our retirement benefits cover eligible, active U.S. employees. In other countries where we operate, global benefits vary.
We have a robust financial education program, including workshops and a wealth of resources and tools to help employees get on the right path and stay on track toward a financially healthy retirement.
For U.S. employees hired before December 1997, we have a defined benefit pension plan, of which the company pays full costs. Pension benefits are paid from a pension trust fund, which is not a company asset.
We offer all U.S. employees the ability to contribute to a 401(k) savings plan. We currently match 100 percent of employee contributions, up to 4 percent of annual eligible earnings, except for those employees actively accruing benefits in the pension plan. For those employees, we match 50 percent of their 401(k) contributions, up to 2 percent of annual eligible earnings.