The Relationship between Total Rewards and Business Results Today at People’s United Bank

1. presented by Stacy Moher, Director, Health & Welfare Benefits Human Resource Association of Central Connecticut June 21, 2012 The Relationship between Total Rewards and Business Results Todayat People’s United Bank

2. Discussion Outline • About People’s United Bank • Total Rewards • Company Goals & Strategies • Workplace Partnership • Compensation • Learning & Development • Benefits • Communications

3. About People’s United Bank • Founded in 1842 • Largest independent bank in New England (HQ – Bridgeport, CT). • NASDAQ Ticker Symbol – PBCT • Total Employees – 5,500 • President & CEO – Jack Barnes • Total Assets – $28 Billion • Approximately 375 Branches and 518 ATMs located in CT, VT, NY, NH, ME and MA • 7-day banking available at over 80 Stop & Shop supermarket branches in CT • Through its subsidiaries, People's United offers brokerage, financial advisory services, investment management services and life insurance through People's Securities, Inc.; equipment financing through People's Capital and Leasing Corp. and People's United Equipment Finance Corp; and other insurance services through the People's United Insurance Agency

4. Total Rewards at People’s United Compensation Benefits + Learning & Development Work/Life Programs = TOTAL REWARDS 4

5. 2012 Company Goals & Strategies

6. Workplace Partnership 6

7. Compensation + = TOTAL REWARDS 7

8. Compensation Program Goals • Have Compensation programs that meet the needs of the business and employees, enabling us to attract and retain talent in each market • Design programs that motivate employees by linking performance to business results • Ensure programs are competitive and cost-effective

9. Performance Management – the Link to Compensation

10. Performance Management Accountabilities

11. Total Rewards at People’s United + Learning & Development = TOTAL REWARDS 11

12. Learning & Development Goals • Invest in employees’ capabilities • Link performance to business results

13. Learning & Development

14. Total Rewards at People’s United Benefits + Work/Life Programs = TOTAL REWARDS 14

15. Benefits 15

16. Health Care Program Goals • Provide competitive benefits to help attract and retain high quality talent • Provide choice of plans/programs that are easy to understand and navigate • Manage overall program costs and balance financial for both the employer and employees • Achieve efficient purchasing • Promote member engagement and consumerism

17. Wellness Program Goals • Increase awareness of current programs through • improved marketing/communications • Increase member participation in health management • programs with focused incentive/engagement strategies • Increase preventive services/screening activity • Increase member engagement as health care • consumers through education • Continue to measure/evaluate wellness program results

18. Health & Wellness Strategy Development - Enrollment and demographics - Health care claims data - Business and HR priorities - Cost drivers & and savings opportunities - EAP Utilization

19. Health Care Plan Considerations

20. Employee Feedback Total Rewards Survey Results: • 55% have a good understanding of wellness programs; 42% are satisfied with the wellness programs • Fitness center subsidy is the overwhelming preference for wellness benefits, with wellness and prevention incentives and onsite screenings rounding out the top three; weight control program ranked fourth

21. Internal ReviewHealth CareClaims

22. Internal ReviewHealth CareClaims • High-Cost Claimants - <1% spent 27% of total medical/Rx paid amounts • Preventive Care 100% Preventive Care Coverage*

23. Internal ReviewEAP Utilization • Employee Assistance and Work/Life Program • Emotional well-being/stress management is #1 topic

24. External ReviewConsultant’s Analysis • Compliance with preventive/screening services has improved though opportunities to engage employees to participate in existing medical and health management programs • Increase in high cost claimants and prevalence of chronic conditions having impact on total spend • Depression, anxiety and stress are high • Expand use of incentives and add disincentives to promote a higher level of consumer accountability for decisions

25. External ReviewBest Practices/Prevalence √ √ √ √ √ √ √ √ √ √ √ √ √ = Current People’s United offering Source: 2012 AON Hewitt Health Care Survey

26. Budgets

27. Health & Wellness Offerings/Incentives ¹ People’s United major locations ² Employee paid ³ All Aetna members 4 Only available to employees enrolled in the People’s United Medical Plan

28. High-Level Wellness TimelineSample

29. Communications • ‘Visible’ top-down support • Corporate communications perspective • Planned communications calendar • Utilization of various communications vehicles/balance • Demographics understanding, targeted audiences • Formal and informal education and marketing • Access to decision-support tools and resources • Branding • Tracking/measurement

30. Communications

31. Questions