Chivas Performance Guidelines v.Jun 2018

5. Salary Review Process cont.

Annual Salary Awards

There are three factors which will determine your annual salary award:

1. The average salary award which the Company decides on

2. Whether you are paid competitively or not

3. Your individual performance for the year

There are 5 possible performance ratings as part of the Performance Review Process. The ‘Delivers Expectations’ rating is intended to represent the average salary award. The company uses the national rate of inflation as a key consideration to help determine this award. The Company will also consider additional factors such as other social and economic information, Company and Group performance and budgetary constraints before reaching any final decision. A range of salary awards is then produced to reflect different levels of performance. For example, the following increases could be agreed for each of the Chivas Performance ratings:

Does Not Meet Expectations

Developing in Role

Needs Improvement

Delivers Expectations

Exceeds Expectations

Out- standing

Between 3.4 and 4.6%

0.0%

2.0%

2.0% - 3.4%

6.0%

7.0%

**The rating of Delivers Expectations will then drive a range of possible increases either side of the average. In this example, the range of increases could be between 3.4% and 4.6%. The Delivers Expectations range will be determined by the Company once the average increase has been determined .

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