San Antonio Regional Relocation Council September 17, 2013

1. Today’s Talent Management San Antonio Regional Relocation Council September 17, 2013

2. About Valero - Business • International manufacturer and marketer of: • Transportation fuels • Petrochemical products • Power • 10,500 employees • 16 refineries – 3 million barrels per day • 10 ethanol plants – 1.2 billion gallons per day • 50 megawatt wind farm • Biomass diesel facility – 9,300 barrels per day

3. About Valero - Community • 131,000 hours of volunteer hours • Valero Texas Open: Benefit For Children • $10 million in 2013 and $81.5 million since 2002 • United Way – highest per capita in nation • MS 150 – Alamo Ride to the River: $1.5 million

4. Talent Management – Top Concern Talent Management top strategic corporate concern Korn/Ferry March 2013 Bloomberg January 2013 Harvard Business Review May 2013 Talent and the shortage in key skills dominate the concerns of most CEOs 2013 PricewaterhouseCoopers CEO Survey Fisher & Phillips, LLP

5. Talent Management Defined Implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs A holistic approach to optimizing human capital, which enables an organization to drive short- and long-term results by building culture, engagement, capability, and capacity through integrated talent acquisition, development, and deployment processes that are aligned to business goals An organization's attempts to recruit, keep, and train the most gifted and highest quality staff members that they can find, afford and hire Talent management is an organization's commitment to recruit, retain, and develop the most talented and superior employees available in the job market

6. Talent Management Defined Managing the ability, competency, and opportunities of employees to enhance overall talent power

7. Integrated Talent Management Performance PLAN HIRE DEVELOP MANAGE RETAIN • Recruitment Strategy • Interviewing & Selection • On-boarding • Setting Expectations • Coaching & Feedback • Performance Management & Evaluation • Rewards & Recognition • Career Planning • Succession Planning • Strategic Planning & Organizational Alignment • Goal Setting • Workforce Planning • Individual & Team Development • Management & Leadership Development • Organizational Development

8. Talent Management ∞ Relocation • Hire – top candidates are rarely local • Spouses, significant others, delayed moves, two for one hires, etc. • Develop – benefits of multiple location experience, stretch assignments, varied leadership exposure • Retain – matching correct talent to correct position at correct time PLAN HIRE DEVELOP MANAGE RETAIN

9. Critical People vs. Jobs • Critical People – efforts focused on identifying key people critical to business success • High potential • Identified successor • Critical Jobs – efforts focused on identifying key jobs critical to business strategy • Key business unit leader • Key customer interface • Key technology expert

10. Discussion More Activity? Lower Level Positions? Recent Policy Revisions? Interns? Lower Level Approval? Larger Budgets? More Policy Exceptions? More Critical to Offer?