Average
Employee
Retention Bonus
After Acquisition
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Agenda
Guidelines for Determining RetentionBonuses
Amounts
Administration
Retention Period
Payout
Terms and Conditions
Summary
Talent Loss
Engagement to Departure Process
Major Events (Like an Acquisition )
Events That TriggerDisengagement
Four Fundamental Human Needs
7 Hidden Reasons EmployeesLeave
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Guidelines for Determining Retention Bonuses
The following factors must be considered when assigning awards (stay bonuses):
• Criticality of the skills or knowledge provided by the Employee as it relates
to achieving closing or integration;
• Increased risk of the employee leaving Acquirer as a result of the merger;
• Employee’s perceived level of threat to ongoing employment before or
after closing ;
• Criticality of the employee to the ongoing business; and
• Internal equity between similarly situatedparticipants.
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Average Amounts
This matrix provides the basic framework. Any proposed award in excess of the
salary ranges provided must be approved by the Executive Committee.
Anticipated Participation % of
Levels (% of employees in Current
Job Level
level) Salary
Non-Exempt 20% 10 - 15%
Professional 15% 20 - 35%
Manager 15% 20 - 35%
Associate Director 15% 20 - 35%
Director 10% 20 - 35%
Managing Director 10% 50 - 85%
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Administration
Authority and Process:
• Each Management Team member will receive a detailed list of employees, title,
performance history, current base pay, and other relevant compensation data.
Management Team members must supply the following to request participation:
• Proposed Retention Period
• Award percentage (based on establishedguidelines);
• Timing of payout(s)
• Brief justification of the award
• All Retention recommendations will be reviewed by Organizational Development
to ensure consistent application of the guidelines and to monitor overall
program expense.
• The final list of recommendations will be submitted to the Executive Committee
for review and approval. Exceptions to the guidelines will be flagged.
Funding:
• All awards and benefits are subject to the aggregate available funds of the
Company.
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Retention Period
• The Retention Period from here forward refers to the pre-defined period of time
that the Employee is being asked to remain in order to qualify for a payout under
this Program. The Retention Period will be based on business need and time
required to substantially complete theintegration.
• A Retention Period may be extended by Acquirer with sufficient notice to the
Employee. Any extension of the Retention Period beyond the initially approved
term requires written documentation and will be subject to Executive Committee
approval.
6
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