COUNCIL of PUBLIC RELATIONS FIRMS

1. Council of Public Relations Firms2014 Domestic Compensation and Benefits SurveySurvey Overview and Proposed Changes COUNCIL of PUBLIC RELATIONS FIRMS

2. 2014 Domestic Compensation & Benefits Survey Timing • Distribute questionnaires by April 1 • Participant data due to Deloitte by June 15 • Results reported by mid to late August (3 months for Safe Harbor) Technology • Policy data to be collected via website • Individual compensation data to be collected via spreadsheets Cost • Included in dues for all Council members who participate in the survey • Firms who do not participate in the survey may purchase the report: • $1,000 for firms with 1-3 offices • $2,500 for firms with 4-5 offices • $5,000 for firms with 6 or more offices

3. Survey Results • Distribute an electronic copy of detailed compensation survey via email file with password • Search function for ease of use • Searches possible by city, job code and revenue • Data pages can be printed by individual job • Data can be exported into Excel spreadsheet • Geographic regional cuts covering multiple cities • Firms report data on all employees (including employees outside of selected cities), so that data can be included in the regional and national cuts • Northeast (with and without NYC and DC) • Southeast • Midwest • North Central • Southwest • Southern CA • Pacific Northwest (with and without SF) 3. 2012 Survey included 72 participants and reportable data from 38 cities

4. Proposed Survey Changes • Increase number of participants required to report a statistic to five firms • New positions? • Information to add or delete from compensation detail or benefit/comp policy data?

5. Top Executive or Owner Corporate Deputy Top Financial Executive Deputy Financial Executive Top HR Executive Top MIS Executive Top Creative Executive Top Media Director Positions Included in the 2012 Survey Corporate Positions Included: Top Research/IS Executive Domestic Office Positions Included: Senior Practice Leader – National Senior Practice Leader – Global Regional GM Senior Office Leader/GM EVP or Sr. Partner Interactive / Digital Practice Leader Business Development Director Digital Producer Web Developer Strategist (Level 2) Analyst/Specialist (Level 1) Account Level 7 Account Level 6 Account Level 5 Account Level 4 Account Level 3 Account Level 2 Account Level 1 Account Coordinator Where sample size allows, all data gathered are reported by revenue, city and specialty.

6. Mid-Level Researcher Research Director Social Media Manager Social Media Strategist Market IT Manager New Jobs Included in the 2013 Survey Where sample size allows, all data gathered are reported by revenue, city and specialty.

7. Definition of Data Elements Reported • 25th Percentile – The data point which is higher than 25 percent of the peers in the comparative job. • 50th Percentile – The data point which is higher than 50 percent of the peers in the comparative job. • 75th Percentile – The data point which is higher than 75 percent of the peers in the comparative job. • Annual Bonus/Incentive – The annual bonus/incentive received by the incumbent for the most recent Fiscal Year. • Annual Bonus/Incentive Amount ($) – Indicates the annual bonus/incentive in dollars received by the incumbent for the most recent Fiscal Year. • Annual Bonus/Incentive Eligible – Indicates if the incumbent is eligible to receive an annual bonus/incentive. • Annual Bonus/Incentive Target (%) – The target annual bonus/incentive award (expressed as a percentage of base salary) to be paid to the incumbent in incentive goals are achieved. • Average – The sum of the data points (i.e. base salary data) divided by the number of employees in the specific specialty or data cut. • Base Salary – The annual base salary as of May 1 • Billing Rate – Indicates the incumbent’s hourly billing rate as of May 1 • Long Term Incentives – Awards such as phantom stock/stock appreciation rights, restricted awards or stock options, which generally vested over a period of 3 to 5 years and are designed to retain and incent recipients of these awards. • Long-Term Incentive Eligible – Indicates if the incumbent is eligible to receive a long-term incentive award.

8. Definition of Data Elements Reported (continued) • Long-Term Incentive Target (%) – The target long-term incentive award expressed as a percentage of base salary. • Long-Term Incentive Type – If eligible, indicated the type of long-term incentive award used, such as stock options, restricted stock awards, phantom stock/stock appreciate rights, etc. • N – The sample size used to calculate a given statistic. • Net Growth – The median number of employees who joined from 1/1/13 through 12/31/13 minus the number of voluntary and involuntary separations from 1/1/13 through 12/31/13 as a percent of the median number of employees on 12/31/13. • Number of Employees – The total number of individual employees which are represented in the data being reported. • Number of Firms – The number of firms reporting data for the given job and/or specialty. No salary data were reported in any case where the number of firms is less than three to protect participant anonymity. • Other Cash Awards – The dollar amount of any other cash award received, including retention, spot, or discretionary bonuses. • Specialty – Indicates the incumbent’s primary professional specialty. For employees with multiple specialties, the dominant area is indicated. • Total Cash – Base salary plus any annual bonus/incentive reported. If no annual incentive is reported, total cash is equal to base salary. • Turnover Rate – The median number of voluntary terminations from 1/1/13 through 12/31/13 as a percent of the median number of employees on 12/31/13.

9. Benefits Data Collected

10. Benefits Data Collected