Chivas Performance Guidelines v.Jun 2018

5. Salary Review Process cont.

Out-with the Competitive Range

For employees who are paid below the competitive range it would normally be expected that they become competitive over a period of time by receiving salary awards towards the upper end of the Delivers Expectations range or one of the higher performance ratings. If the benchmarking data suggests this may not be realistically achieved then the employee may receive an exceptional salary review. This would have to proposed by an Executive Director and is subject to approval by the CEO and HR Director. This would also be dependent on the employee’s performance being at a satisfactory level. For employees who are paid above the competitive range, there are two potential approaches. For employees who are just above their competitive range, they will receive salary awards at the lower end of the Delivers Expectations range until their salary becomes competitive. Should an employee in this position receive a rating of ‘Exceeds Expectations’ or ‘Outstanding’ then they will receive a percentage increase of the lower value in the Delivers Expectations range plus a cash lump sum equivalent to the percentage differential between their actual percentage increase and the percentage increase set for the higher rating. Employees who are identified as being significantly above their competitive range or above their salary band would have their salary reviewed on an individual basis with an appropriate course of action implemented to ensure that their salary becomes competitive over a period of time. This could include lump sum increases in lieu of percentage increases. In this instance employees may wish to consult with their HR Manager/Representative regarding current benefit schemes such as AVCs and the Employee Share Ownership Plan should they wish to utilise all or part of their lump sum benefit in this way. Note – where there is any debate on whether a salary is competitive or not or to what extent a salary sits above or below the competitive rate the company will provide statistical benchmark data on which the decision has been based.

Contents page

81