CGIAR Review of Total Compensation

1. CGIARReview of Total Compensation May 10, 2004

2. Background Approach Survey Results for Phase 1 Diversity Disclosure Principles Next Steps CGIAR Review of Total Compensation

3. CGIAR ExCo concluded at its May 2003 meeting that:“The Secretariat working with CBC, should prepare a paper of compensation structures and levels and mechanisms for ensuring transparency. Compensation data on the CGIAR should be compared with those from appropriate comparator organizations. The CGIAR data should be enriched with the expansion of the study to include compensation packages for locally recruited staff. ” Background

4. Terms of Reference Drafted in consultation with CBC Approved in January 2004 by ExCo Review was divided into 4 Phases Phase 1-Review of Compensation Structures and Mechanisms for Ensuring Transparency of Internationally Recruited Staff (IRS) Phase 2- Comparison of CGIAR Compensation package for IRS with the Market Phase 3- Review of CGIAR Compensation Structures for Nationally Recruited Staff (NRS) Phase 4- Integrated Results Report

5. Governance of Project: Steering Group Collaborative and Technical Support: Focal points from each Center, appointed by DG’s SAS-HR Director and G & D Leader Professional Anchor: Sandra Lawrence for overall coordination, technical advice and quality control Survey and analysis: Persis Mathias, Project Leader from Hewitt Associates, Malaysia Overall Approach

6. To internationally recruit the best qualified staff To do so, need to address: Often remote location of center Need for enhanced security Limited opportunity for spouse employment Uprooting of families from home country Policies to maintain close contact, both professionally and personally to home country in view of term appointments These factors affect the design of overall package of salary, allowance and benefits Overall Compensation Philosophyfor IRS

7. Objective To collect and analyze compensation cash, benefits & administration information across the centers and system office of CGIAR To cover research, administrative service and management levels Phase 1- Survey of Compensation Levels

8. Mapping IRS mapped to 9 Hewitt based CGIAR composite levels Cash compensation Actual minimum, median & maximum base salary data Bonuses Other cash payments Benefits All employee benefits Salary administration Compensation philosophy & structures Scope

9. Process and Methodology SURVEY PLANNING SURVEY QUESTIONNAIRE SURVEY ADMINISTRATION SURVEY ANALYSIS SURVEY DELIVERY Planning - Finalize scope - Develop and ratify level descriptors - Establish project milestones - Establish center focal points Finalized customized questionnaires (Based on ILRI study) Data Clarification - Cash - Benefits Level Equivalence via Hewitt’s level descriptors ReportGeneration Electronic data collection, Data entry Sent and explained the questionnaires to all the Centers Data Analysis Report Presentation Data verification Preliminary Analysis Filled in benefit questionnaires to centers that participated in ILRI study Communication and verification of Level Mapping Report

10. Focus on the Role in terms of degree of challenge/complexity in: Scientific Research Resource Management Building collaborations and partnerships Other indicative dimensions included Qualifications & experience Designation/ Position title Quantifiable dimensions Hewitt/CGIAR Research Level Indicators

11. Creation & generation of ideas/solutions for new research areas. Highly innovative research. Developing & linking new tools and methods/ new innovations in one large complex project or several disciplinary areas & operating projects. High level development work leading to a defined product. Exacting & precise science. Focus on Role: Degree of challenge / complexity CGIAR Composite Research Level 3 Scientific Research Resource Management Direction from supervisor/s is largely through planning & direction. Overall resource management. Fairly high level of leadership in the conceptual development of research projects. Oversight of large budgets and expenditures. Building collaborations and partnerships Plan and play a major role in securing project funding. May be involved with complex reporting for multiple donors. Responsible for overall resource mobilization for projects one is leading, including initiating proposals for large scale long term projects Scientists at this level may carry significant management responsibility or else be recognized as a senior in providing intellectual input and disciplinary expertise to programs/projects.

12. Doctoral course in the assigned subject area Post doctoral experience of 15 – 20 years Scientific & Development Recognition CGIAR Composite Research Level 3 Other Indicative Dimensions Qualification & experience Quantifiable dimensions • Financial Responsibility • Resource Mobilization • People Management Indicative designations/ titles • Project Leader • Senior Scientists

13. Range of Median Base Salary Shows base salary paid across all Centers and the System office at Minimum, Maximum, Median and Mean of each Level across centers Base salary is the actual annual amount paid to individuals based on their level of responsibility Mean is the average of all individual salaries and median is the 50th percentile Base Salary

14. Overview Range of Median Base Salary Min Max Legend Median Mean Figures in USD 000's per annum as of Dec 2003

15. Variations and differences come to light when one looks at the over view of compensation and the method of delivery- cash allowance vs. benefit Some benefits are paid as cash allowances, others are policies In order to approximate total compensation, added all cash payments, quantifiable benefits, estimated pension contribution and cost of insurances Total Compensation Comparisons

16. Comparison of 3 Centers

17. Overview of Median Total Compensation Min Max Legend Median Mean Figures in USD 000's per annum as of Dec 2003

18. Benefits were analyzed from a policy perspective Benefit Policies • Housing Assistance • Children’s Education • Club Membership • Relocation Benefits • Time Off • Medical Plans: hospitalization and clinical plans • Insurance: Life and Disability • Pension & Gratuity • Travel Assistance • Vacation Travel • Center Provided Car Overall policies for benefits are similar but, -variations in plan design details -different delivery methods across benefits

19. Staff, spouse and: Example of Variation in Plan Detail – Home Leave • Authorized dependents below 23 years of age (2 Centers) • Dependent and resident children below 24 years (2) • Eligible dependents up to 21 years of age (3) • Dependent resident children up to grade 12 (1) • Spouse or domestic partner, resident children up to 18 years of age (1) • All dependents below the age of 26 (1) • 4 children (1) • Dependents resident at duty station (1) • Whole family provided staff also takes leave (1) • Spouse or domestic partner and dependent children (1)

20. Center Pay Structures

21. Location Spread Internationally recruited staff are spread across 62 countries At some locations as many as 8 centers have staff Locations

23. Reviewed base salary differences by Gender Nationality Groupings Part 1- Industrialized Countries Part 11- Developing Countries Diversity

25. IRS staff at centers and system office mapped to Hewitt based CGIAR composite 9 level scale – 4 research levels, 3 support levels and 2 management levels Average total compensation USD62,000 at lowest level R1/S1 to USD 217,000 at highest level M2 Similar benefit policies but diversity in plan design, implementation and delivery methods To Summarize: Steering Committee recommends that Results should not be posted on CGIAR web until completion of phase II. However, can be made available to members upon request

26. Objective To recommend mechanisms to ensure disclosure of the compensation structures while maintaining confidentiality for the individual staff Transparency and Disclosure

27. Reviewed practices of a sample of organizations, including Multilateral Development Banks, UN, European Commission, Bilateral Agencies All have public disclosure of Salary Structures Benefits Policies General Employment Data Some are disclosed on external web page, others by request Generally do not release any individual’s personal data, the exception being the President or Head of the organization Practices of Publicly Funded Organizations

28. Overview of base salary ranges Benefits policies Basic employment data, e.G. Overall number of staff by employment category All material updated periodically No disclosure of individual staff data CGIAR Disclosure Principles Steering Group Recommendations

29. Objective To provide a comparison of the current compensation structures with those of comparator organizations particularly those engaged in agricultural research, in private and public sectors, world-wide Content Coverage Compensation packages and salary levels for out posted staff Basket of Comparators National Agriculture Research Organizations (5) Private Sector (2) International Organizations (1 or 2) Target Completion Date: Early 2005 Approach to Phase 2IRS Comparison to Market

30. Approach to Phase 3Nationally Recruited Staff • Objective • To review key aspects of NRS package • Coverage • Comparison of NRS with IRS in terms of benefits provided • Comparison of NRS to local market based on existing data in selected locations • Comparison of NRS across centers in a particular location • Target Completion Date: Early 2005

31. Synthesis and Recommendations Target Completion Date: End 2005 Phase 4Integrated Results