Our compensation programs are designed to recognize and reward employees for their accomplishments and the value they bring to the company.
The programs target different aspects of individual and company performance and are monitored to ensure that they are competitive with those of other companies—and appropriate for the markets in which we compete for talent.
Competitive Base Pay: Individual base pay based on job, market-aligned pay range, relevant experience, skill level, breadth of responsibility and proficiency.
Short-Term Incentives: Cash award programs to reward employees on the basis of company and/or individual performance versus objectives.
Long-Term Incentives: A future-oriented program that rewards the demonstration of individual performance, leadership and potential (based on defined skills and sustained performance) through stock-based incentives.
Worldwide, our company offers retirement benefits that are competitive with those of our peers and the general industry in each market we serve. In the U.S., for example, we offer a defined benefit pension plan as well as a 401(k) plan with company matching contributions.
To assist in financial decision making, we offer all U.S. employees comprehensive financial education and guidance through Ernst & Young at no cost. U.S.-based employees who are at least age 55, and those who have at least 10 years of service after age 40,1 are eligible for subsidized medical benefits at retirement.
Outside the U.S., we have more than 80 pension plans (including defined benefit, cash balance, and defined contribution plans) in over 40 countries. These plans often supplement government-sponsored social security pension benefits to improve employees’ financial security through added retirement income.
In the U.S., our employees have the option of banking through our company’s credit union, which offers competitive interest rates on savings accounts and lending.
|1 For certain employees, service before 40 also counts.|
|EMPLOYEES & COMPENSATION||2014||2015||2016||2017||2018|
|Total compensation paid to employees/payroll, including benefits (in billions)||$7.40||$7.50||$7.77||$8.65||$8.98|