TomTom 2007 Annual Report Download - page 27

To enhance the TomTom employer brand in the
international labour market, in the second half of
2007 TomTom successfully introduced the TomTom
Challenge, a unique selection process based
around the TomTom core competencies.
COMPENSATION & BENEFITS
Compensation
TomTom’s approach to compensation is geared to
serving the company’s worldwide strategy, and
consists of a mix of base salary (How) and
performance bonus (What), plus a long-term
incentive for employees in mission-critical roles
and for employees identified as high potential.
In addition to these basic pillars, individual, role-
specific output bonuses areoffered as an incentive
for certain employees around areas such as patent
creation and individual recognition.
Bonuses
The performance bonus is a significant part of
every employee’s total cash compensation, and
divided intoan Individual element and a Company
element. This fits with our vision that success for
TomTom as a business should also mean success
for the individual employee. The proportion of the
individual and company elements of an employee’s
bonus varies, depending on the level of their
influence on the delivery of TomTom’s strategy.
Employee share plan
Until 2007, TomTom operated an Employee Stock
Option Plan. During 2007 this was replaced by a
Performance Share Plan, which provides for the
awarding of “Performance Shares”. A “Performance
Share” is a virtual unit linked to the actual cash
value of TomTom shares. The final number of
Performance Shares available depends on two
performance criteria. The external criterion is Total
Shareholder Return (TSR) benchmarked against
AEX funds. The internal criterion is measured
againstEarnings Per Share (EPS) growth targets.
Performanceis measured over a three year period,
with the final pay out dependent on (i) the extent to
which the two performance criteria have been met
(the number of PerformanceShares) and (ii) the
stock market value of a TomTom share at vesting
(the value of each Performance Share).
Benefits
TomTom is determined to be a good employer and
provide all employees with sufficient security in
terms of pension, health and disability cover. Our
worldwide benefit programme therefore focuses
primarily on these subjects. However, depending
on local circumstances and practices, additional
programmes may be put in place locally.
TRAINING & DEVELOPMENT
Strategy
With the implementation of GPS, involving
competency profiles for each job within the
organisation, it was felt a new Training and
Development (T&D) strategy was needed, which we
developed and implemented during 2007.
The GPS Cycle
T&D needs arenowmainly, though not exclusively,
identified through the GPS cycle. When a particular
developmental need is identified for a large enough
group of employees, we develop specific
programmes to meet those needs. In 2007 these
included Project Management, Project Planning,
Personal Effectiveness and Computer Literacy
programmes.
Induction
During 2007, TomTom was typically recruiting 70
newemployees a month. It is vital for the business
that these people enjoy a smooth ‘on-boarding’ so
they can hit the ground running when starting their
jobs. At the same time it also ensures the huge
influx of personnel does not undermine or dilute
TomTom’s much-valued work culture, but rather
enhances the ability of our core values of Open
Spirit, Passion for Results and Innovative Thinking
to thrive.
We therefore replaced the standard induction
programme with a new programme that splits
induction intoan overall TomTom induction day
followed up by a discipline-specific induction
component.
TOMTOM ANNUAL REPORT 2007