FY18 Performance & Compensation Planning

Agenda

• Your Leadership Role• Objectives• Process Overview• Compensation Planning Guidelines• Timeline• Compensation Analysis Tool (CAT) Orientation• Q&A

Your most important role as a leader is to unlock the potential of every person on your team

Your Leadership Role

Assessing

RewardingDeveloping

TALENT

You are responsible for strategically investing in high performing, high potential employees

Objectives

Reward

Strategically Invest

• Reflect on individuals’ performance and contribution level as demonstrated throughout the year

• Identify employees’ potential for growth within the organization

• Recognize employees’ leadership and value

• Strategically invest in brave, ambitious and passionate employees

• Reward employees going above and beyond

Recognize

Identify Potential

Reflect on Performance

Process Overview

Employees Managers Human Resources

Complete Self-Evaluation

Complete Evaluation

Assign Performance Rating

Recommend Compensation Changes

Communicate Outcome

Coach Managers

Review Compensation Recommendations

Compensation Planning Guidelines

Compensation Components

Base Pay Overtime Incentives

• Base Pay: determined on an individual basis taking into consideration many factors; experience, knowledge and skills

• Overtime: non-exempt/hourly employees earn overtime based on state requirements

• Incentives: additional compensation received by the employee (cash or non-cash)

Range Penetration (RP)

Generic pay ranges are developed to encompass all levels within the organization

Generic Pay Ranges

Jobs are slotted into the pay range that most closely represent the market for the work performed

Range penetration indicates employee’s pay position within range

Jobs matched to market rates

Experience determines penetration

Typically align pay within the range based on various factors. One of many data points used to determine employee pay

Allows for movement within the range based on experience and performance

Variation

Movement

Advanced Knowledge or Experience

Range Penetration

Midpoint MaximumMinimum70% 100%

New In Role, LimitedExperience

Market Median,Fully Competent

0% 30% 50%

Redlining

Redlining: an employee is at or above 100% range penetration• Base rate is unchanged or limited to max of range

• Not eligible for merit or market adjustments

Advanced Knowledge or Experience

Range Penetration

Midpoint MaximumMinimum70% 100%

New In Role, LimitedExperience

Market Median,Fully Competent

0% 30% 50%

Develop to higher level for greater earning potential

Market Adjustments and Promotions

Market Adjustments: Promotions:

• Evaluate performance and potential and identify those employees with range penetration below 50%

• Generally awarded for significant increase in responsibility or leadership demonstration

• Align to appropriate RP in new range

• Consider total compensation when determining increase amount

Award mechanisms used for high performing, high potential employees

In either case, base rate adjustments should range between 5% and 15%

CEO/COO Discretionary Bonus (CCDB)

• Recognize individual contributions above and beyond regular scope of role• Includes tactical work as well as leadership• Typically awarded to employees grade 25 and

below

COO Bonus: positively impact

the Resort or Department

$500 or $1,000

CEO Bonus: positively impact

the entire Company

$1,000 or $2,500

Timeline

FY2018 Year-End TimelineDate Task System

July Employees complete self-assessment SuccessFactors

August 1 Managers finalize performance review and assign ratings

SuccessFactors(Stowe excl)

August 2-13 G26+ Managers complete compensation recommendations

CAT

August 14-21 One over managers review recommendations CAT

August 22-27 HR and Local Leaders finalize recommendations CAT

August 27-September 6

EC reviews final recommendations N/A

September 7 Final review with CEO N/A

September 7-21

September 7-21: G26+ Managers review final results CAT

September 28 Total Compensation Statements available for G26+ employees

CAT

September 28-October 11

Managers communicate performance and compensation results to employees

N/A

October 12 1st paycheck with new base wage, MIP payout PeopleSoft

Compensation Analysis Tool (CAT)

CAT Overview

All year-round employees

Seasonal active and SIS

• Merit increases• Market Adjustments• Promotions• CEO/COO Discretionary Bonus

Awards

• CEO/COO Discretionary Bonus Awards

Merit AwardsAutomatically calculated based on FY18 performance rating

Rating Merit Increase %Meets Some Expectations 0%Meets Most Expectations 2%Achieves Expectations 3%Exceeds Expectations 3.5%Greatly Exceeds Expectations 4.5%

Merit Proration

• No proration impact for promotions and pay increases within the year (excludes Stowe)• If merit was included in any pay increase, HR will need to

change proration to 0% in the CAT• No FY18 merit increase for promos and pay increases after

August 1, 2018

Hire Date Proration %

August 1 – October 31, 2017 100%

November 1, 2017 – January 31, 2018 67%

February 1 – April 30, 2018 33%

May 1 – July 31, 2018 0%

New Hires Prorated

Market AdjustmentsEnter proposed final salary amount

1 Enter market adjustment justification in the comments

2 Select “market” reason for market increase

3

2

1

PromotionsEnter proposed final salary amount

1 Select reason for promotion • Scope Increase – employee is

taking on additional scope or responsibility that warrants a promotion

• Leadership Recognition –employee is performing at a higher level that warrants a promotion

2 Enter promotion justification in the comments

3

1 2

Selecting the New Job• Use the search to find the new title or job code

• Type “VRI_ or CANBC_” before the job code• If a job code does not exist, select a generic code (i.e., Grade

26) • You will need to provide a job description to your HR

manager before the promotion can be completed

CCDBSelect bonus award amount

1 Select type of Bonus• CEO – For contributions

that positively impacted the Company

• COO – For contributions that positively impacted the Resort or Department

Enter justification in the comments

2 3

1 2 3

Total Compensation Statements• For Grade 26+

employees• Shows merit increase,

market adjustments, promotions and CCDB awards (if applicable)

• Provides MIP and LTI grants (if applicable)

• Does not contain any other form of short term incentive (ie., sales plans)

Summary

• Ensure you are strategically investing in high performing, high potential employees

• Socialize recommendations and ensure alignment with your leadership

• Provide justifications for all recommendations• Communicate changes only after final approval is received• Use the resources at InsideEpic (username and password =

VailComp)

Your most important role as a leader is to unlock the potential of every person on your team by properly

assessing, developing and rewarding talent

https://broomfieldstaff.insideepic.com/posts/compensation/

InsideEpic1

2

3

Questions

FY18 Performance & Compensation PlanningSlide Number 2Slide Number 3Objectives�Process Overview�Slide Number 6Compensation ComponentsRange Penetration (RP)�Slide Number 9Market Adjustments and Promotions�Slide Number 11Slide Number 12Slide Number 13Slide Number 14CAT Overview �Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25