The Survey Group

1. The Survey Group 2006 Medical Devices Compensation Survey: Analysis and Results MassMEDIC Seminar September 19, 2006

2. Company Overview Established in 1961, The Survey Group is a member-based human resources information, survey and consulting firm. The Survey Group (TSG) provides its 600 member organizations with the highest quality, most comprehensive regional compensation and benefits survey data available. The Survey Group also offers members unlimited access to an extensive library of human resource surveys, periodicals, books and manuals published by other organizations. The professional staff is available to answer HR related questions and locate data from these resources. TSG’s consulting practice provides human resources consulting to both member and nonmember organizations in areas such as compensation program design, performance management, benefits analysis and organizational climate surveys.

3. Presenter David K. Weaver, President of The Survey Group, leads the member services, survey management and consulting functions for the organization. Since joining TSG he has worked with companies in a variety of industries on a wide range of projects such as the design of compensation programs and incentive plans, performance appraisal system development and training, and employee climate surveys. Before joining The Survey Group, he held management and professional compensation and human resources positions at Liberty Mutual Insurance, Hewlett-Packard Company and Honeywell. He is an adjunct faculty member for Northeastern University and Newbury College, where he teaches undergraduate courses in Compensation Management and Human Resources Management.

4. Medical DevicesCompensation Survey • Produced through a partnership between The Survey Group and MassMEDIC • Jobs chosen by members of the MassMEDIC HR Committee • Data collected May - June, results published September • 33 companies participated, 70% TSG members, 82% MassMEDIC members • Privately held 42%, Public 58% • Sales revenue: Less than $50M 45.5% $50M to $300M 33.3% $Greater than $300M 21.2%

5. Salary Increase Programs • Frequency of Salary Increases • Common Review • Anniversary Review • Fixed number of months from previous increase • Pay Philosophy • 50th Percentile • Average • Between 50th and 75th Percentile

6. Salary Structures • Majority of companies have formal salary ranges • Typically reviewed annually • Over 50 percent of companies adjust salary ranges every 12 months

7. Stock Options • Most companies grant stock options • Options given to all levels of the organization • Typically granted on a discretionary basis for individual or group performance • Options are usually granted annually or upon hire

8. Merit Increases

9. Total Increases

10. Structure Movement

11. Merit Increase Budgets

12. Salary Increases

13. Salary Structure Movement

14. Structure Movement

15. Job Family Observations • Engineering jobs paid competitively at the career levels • Sales jobs paid in line with other industries with a more aggressive base/incentive mix in the highest level job

16. Job Family Observations • Quality jobs paid on par with other manufacturing sectors • Regulatory Affairs and Clinical Research jobs tend to lag the Biotechnology Industry