www.pwc.com PwC Financial sector Salary Survey PayWell 2016 General description and basic methodological principles PwC 2 Why PwC? Long-term experience The largest Russian Multilevel data check; High standards of in conducting surveys and International banks high quality of final data privacy (since 1999) and financial reports organizations participate in our surveys PwC 3 General description of Salary Survey PayWell PwC Salary Survey PayWell Survey 2015: Detailed job catalogue with specific financial 157 participants sector positions All elements of compensation: base salary, variable pay, total remuneration Detailed analytical section on salary practices 55 regions and 68 cities of Russia An analytical section on labour market tendencies Availability of Peer group report (reference 2 000 unique positions group) from the list of Survey participants and 11 hierarchical levels New! Availability of headcount benchmarks with a breakdown by functions and departments 600 000 individual records PwC 4 Basic methodological principles Traditionally, Salary Survey data is used for evaluation and adjustment of employees remuneration on various positions. Salary Survey data collection implicates matching of client’s positions 1. General with PwC PayWell Standard Job Catalogue according to functional job Director/President description and hierarchical level of the position. For example: 2. Deputy General Director / Vice- Function GEN - FI-W - 6 Hierarchical level: Experts President Function: Finance and accounting 3. Director 3. Director 3. Director Hierarchical Unit: Payroll level After information accumulation, multilevel incoming information checking and statistical data processing are conducted, so that it will 4. Division Head not be possible to ascertain that this information pertains to a particular Respondent Company. 5. Unit Head In accordance with generally accepted procedures, the disclosure comes upon several conditions: • the arithmetic average – as minimum it should be data for 3 data 6. Experts points from 3 companies • the median – as minimum it should be data for 4 data points from 3 7. Senior Specialist companies • the 25th and 75th percentile – as minimum it should be data for 6 data points from 3 companies 8. Specialist • •the 10th and 90th percentile – as minimum it should be data for 8 data points from 3 companies 9. Clerks/admins Relative to the above, in cases where initial data is not enough for disclosure, remuneration information for the position is not provided. 10. Workers 10th 25th 75th 90th Arithmetic Position Median percentile percentile percentile percentile average GEN-FI-W-6 - - 273 024 - - 266 707 PwC 5 Multilevel data check To ensure the high quality of Salary Survey PayWell data PwC consultants: Provide detailed instructions for filling in questionnaires and send Stage 1 finalized questionnaire to the last year Survey participants in order to improve and facilitate the process of job matching Stage 2 New! Provide guidelines, that give participants an opportunity to check the correctness of filling questionnaires before sending Perform regulatory methodological and technical support to Stage 3 the participants at the questionnaires filling in and negotiation processes Stage 4 Use customized approach to survey participants on the questionnaires checking and negotiation processes Stage 5 Check the statistical analytics within the overall data before preparation of final reports PwC 6 PwC Financial Sector Salary Survey PayWell 2015 participants 1. Absolut Bank 32. Mercedes Benz Bank 63. Siemens Finance 2. AHML* 33. Mercedes-Benz Financial Services 64. SKB Bank 3. Akbars bank 34. Merrill Lynch 65. Svyazbank 4. Alfa Bank 35. MC Bank Rus (Kapital-Moscow) 66. Tatfondbank 5. Alfa Capital 36. MC Factoring Rus 67. Toyota Bank 6. Aton 37. Mizuho Corporate Bank 68. Trust bank* 7. Bank of Moscow 38. Morgan Stanley 69. UBS 8. Bank of Tokyo Mitsubishi 39. Moscow Stock Exchange 70. UniCredit Bank 9. Bashcomsnabbank 40. MTS bank 71. UniCredit Leasing 10. BMW Bank 41. Multikarta 72. Ural Bank for Reconstruction and 11. BNP Paribas 42. National settlement depository Development 12. BrokerCreditService 43. Natixis 73. Uralsib 13. Cetelem Bank 44. Nordea Bank 74. Visa* 14. Citibank 45. Otkritie Capital 75. Vnesheconombank 15. Commerzbank 46. OTP-Bank 76. Volkswagen – Finance 16. Credit Suisse 47. Probusinessbank* 77. Volvo Vostok 17. De Lage Landen Leasing 48. Promsvyazbank 78. VTB 18. Delta Credit 49. Raiffeisen Bank 79. VTB Factoring 19. EABR (Eurasian bank of development) 50. Renaissance Credit 80. VTB Leasing 20. EBRD 51. RN bank (RCI Bank) 81. VTB SZRC 21. Evrofinance-mosnarbank 52. Rosbank 82. VTB 24 22. FC Otkritie 53. Royal Bank of Scotland 83. Western Union 23. Finprombank 54. RSHB 84. Zapsibcombank 24. Garanti Bank Moscow 55. Rusfinance Bank 85. Zenit 25. Gazprombank 56. Russian Standard Bank 26. Gazprombank Leasing 57. Russlavbank* 27. Home Credit 58. Rusnano 28. HSBC 59. Sberbank * - banks which provided only salary practices 29. ING Bank 60. Sberbank Asset Management questionnaires 30. JP Morgan 61. Sberbank CIB 31. Khanty-Mansiisky Bank Otkritie 62. Scania Leasing PwC 7 Survey Schedule and Costs PwC 8 PwC Salary Survey PayWell 2016 Schedule SP questionnaire filling in SD questionnaire filling in deadline deadline 15.04. 15.06. February March April May June July August September Moscow report Registration of participants 31.08. Regional report Filling in Salary Practices questionnaires (SP) 15.09. Filling in Salary Data questionnaires (SD) Salary Practices questionnaires checking Salary Data questionnaires checking Data processing and Report preparation PwC 9 PwC Salary Survey PayWell 2016 Cost (1/2)* Full package (Moscow, Saint-Petersburg and 12 large cities 3 300$ data, 1 peer group for Moscow) 1 100$ Moscow salary data Peer group, Moscow 950$ (in case of purchasing Moscow salary data) Peer group, Moscow 1 500$ (without Moscow salary data) 500$ Saint-Petersburg salary data 400$ Peer group, Saint-Petersburg Headcount benchmarks 1 100$ (10 general or 10 business functions)** * Cost is indicated in US dollars net of VAT for Survey participants. Payment is made in Russian rubles at the rate of 70 rubles for 1 US dollar. PwC ** Cost is indicated for benchmarks by General market. Cost for peer group benchmarks should be indicated individually. 10 PwC Salary Survey PayWell 2016 Cost (2/2) Regional data* 12 large cities 42 small cities Kazan Arkhangelsk Pyatigorsk Krasnodar Astrakhan Ryazan Krasnoyarsk Barnaul Saratov Nizhny Novgorod Belgorod Smolensk Novosibirsk Blagoveshchensk Sochi Omsk Bryansk Stavropol Perm Cheboksary Surgut Rostov-on-Don Chelyabinsk Syktyvkar Large cities Samara Irkutsk Tambov Small cities Vladivostok Ivanovo Tomsk Volgograd Izhevsk Tula Yekaterinburg Kaliningrad Tumen Kemerovo Tver 1 city Khabarovsk Ufa (from 12 large cities) 300 $ Kirov Ulan-Ude 1 city Kursk Vladimir (from 42 small cities) 250 $ Lipetsk Vologda Package «Russia» Murmansk Voronezh (42 small cities) 7 500 $ Orel Yakutsk Orenburg Yaroslavl Discount when buying 10 and Penza Yuzhno-Sakhalinsk more small cities 10 % Discount when buying 20 and more small cities 20% * Cost is indicated in US dollars net of VAT for Survey participants. Payment is made in Russian rubles at the rate of 70 rubles for 1 US dollar. PwC 11 PwC Salary Survey PayWell 2016 discount system* 5% 10% 10% Saratoga Early payment 2016 Salary Survey (before 31 May) Participant 5% PayWell 5% 2014 and 2015 Participant Early payment (before 30 June) Salary Survey PayWell 2015 Participant * 1. Discount «Saratoga 2016 Participant» can be added to other discounts 2. Discounts «Early payment» and «Salary Survey PayWell Participant» do not sum up PwC 3. The maximum amount of the discount is 15 % 12 Questionnaires and Reports examples PwC 13 Salary Practices and benefits questionnaire PwC 14 Salary Data questionnaire Job description PwC 15 Report structure Salary practices and benefits report Salary Data report PwC Labour market tendencies PwC 16 Salary practices and benefits report Salary Practices Moscow_2016 PwC 17 Salary Data report Target performance based bonus for 2015 Other Allowances (% Annual guaranteed pay) 10th 25th Median 75th 90th Average 10th 25th Median 75th 90th Average 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 Annual performance based bonus for 2014 results 000 000 000 000 000 000 000 000 000 000 000 000 000 Annual000 000 000 Total000 Pay000 000 000 000 000 000 000 Salary Data (% Annual guaranteed pay) Moscow_2016 10th 25th000 000 Median000 000 75000th 000 90000th 000 Average000 000 10th 000 000 25th 000 000 Median000 000 75000th 000 00090th 000 Average000 000 000 000 % %000 000 %000 000 %000 000 %000 000 %000 000 000 000 000 000 000 000 000 000 000 000 000 000000 000 000 000000 000 000 000000 000 000 000 000 % %000 000 Annual%000 000 guaranteed%000 000 %000 pay 000 %000 000 Annual000 000 000 000 performance000 000 000 000 000 000 000based000000 000bonus 000 000for000 000 000 2014 000000 000 000 000 000 Job code Job Family Position (Base salary and guaranteed bonuses) results (RUR) % % % % % % 000 000 000 000 000 000 000 000 000 000 000 000 10th 25th Median 75th 90th Average 10th 25th Median 75th 90th Average Investment banking & Head of Asset% % % % % % 000 000 000 000 000 000 000 000 000 000 000 000 BAN-AM-A-3i 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 Asset management management Supervisor/% Business unit % % % % % 000 000 000 000