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Pay and benefits
Salary/bonuses | Equity programs | Retirement programs | Health, life and disability benefits | Flexible spending accounts
A "career" or long-term employee is not uncommon at TI, but is increasingly unique in the semiconductor industry, where competition for talent is fierce. An estimated 23 percent of TI employees have more than 20 years of service with the company, while another 9 percent have worked at TI for 15 years.
We have successfully retained talent at the company's highest levels. Eighteen of our top 22 leaders are career employees. We credit our success in part to a diverse array of programs designed to stave off burnout, and keep employees engaged and motivated. Additionally, we make sure our pay and benefits are competitive, and regularly assess employee satisfaction with our compensation and benefits programs through surveys. Our total payroll worldwide in 2008 was approximately $1.7 billion.
Salary and bonuses
TI employees are compensated with market-competitive salaries. Exceptional performance is rewarded with higher pay. In addition to base salaries, TI also has a profit sharing plan, which pays cash bonuses to employees based on TI's annual profitability.
In addition to profit sharing, TI also has a performance-driven bonus structure, with payouts based on the company's absolute and relative performance. An individual's performance during the year dictates whether they will receive a reward, as well as the amount they will receive.
Equity programs
TI offers an employee stock purchase plan, which enables employees to buy company stock at a 15 percent discount four times a year. Employees can purchase 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.
In recent years, institutional shareholders have been asking for an increased say in how we compensate employees. In particular, they would like TI to effectively manage the amount of shares we offer employees through our equity programs. Managing shareholder expectations while still offering competitive compensation to our talented work force is a challenge we will continue to manage in 2009.
Retirement programs
TI offers a 401(k) plan and eligible employees contributed up to $15,500 in 2008. Those aged 50 or older could contribute an additional amount, up to $5,000 more. Employees can contribute up to 50 percent of eligible earnings in any regular paycheck, which TI matches dollar-for-dollar up to 4 percent. TI employees hired before November 1997 are eligible for a company-funded pension as well.
Health, life and disability benefits
TI provides various benefit options to our employees, including a medical HMO plan, a medical PPO plan, dental care, vision care, life insurance and short- and long-term disability. We offer part-time employees access to full benefits with a higher premiums
Additionally, TI offers U.S. employees a supplemental monthly dollar amount through our "Choice Dollars" program, which they can use to offset the cost of a variety of health care, life insurance and disability benefits. This program allows employees to customize a benefit package to their needs.
We make it easy for U.S. employees to access and update information about our comprehensive benefits program through the company's "my.ti.com" Web site. Additional resources are available through Fidelity's NetBenefits Web site, which is TI's benefit administration provider.
Finally, our company offers health care and dependent care spending accounts, which allow employees to set aside pre-tax dollars to pay for eligible medical and dependent care services. At TI sites outside the U.S., benefits packages vary depending on programs offered by the host government.
Globally, we customize our benefits to each region's culture. For employees in India and the Philippines, we offer the opportunity to visit homeopathic physicians as well as traditional medical practitioners. In Taiwan, TI offers the options of holistic medicine, Chinese herbal treatments and monthly massages for employees.
Flexible spending accounts
The health care and dependent care spending accounts allow employees to set aside pre-tax dollars to pay for eligible medical and dependent care services.
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