TomTom 2011 Annual Report Download - page 14

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TomTom Annual Report and Accounts 2011
12
Global capabilities
—
TomTom’s employee base is diverse and based in a number of
countries around the world. In 2011, we moved a number of roles
from the US and Europe to our engineering activities in Central
Europe and India. We are also presently expanding the number of
technical resources that we employ in our Taiwan based teams.
At the end of 2011 approximately 11% of our workforce were
based in the Americas, 17% in APAC and 72% in Europe,
Middle East and Africa.
Compensation and benefi ts
—
We believe that our remuneration strategy is a key element in our
ability to attract and retain talent. We therefore aim to provide fair,
competitive and responsible pay for each of our employees. We
achieve this on the basis of compensation and benefi ts packages
that are consistent worldwide, while taking into account local
differences. In 2011 we launched a compensation and benefi ts
programme based on this view.
Compensation
In January we introduced a new worldwide job-ranking framework
and salary structure. The framework and salary structure
harmonises the compensation and benefi ts of all TomTom and
former Tele Atlas employees, and provides consistency and
equity for every employee. The job-ranking framework applies to
all TomTom employees; the salary framework is customised by
country.
The job grades enable comparison of our compensation and
benefi ts against the markets within which TomTom competes for
talent. This helps to ensure that our employees’ pay is measured
against market practice in each country.
The outcome of the benchmarking analysis on the basis of job
content and grades is a compensation package that is competitive
as compared to the other companies in our industry. We focused
fi rst on the cash elements, followed by research later in the year
into other elements such as insurances, pensions, company cars
and smaller, often local, benefi t items.
Our next step will be to determine each employee’s pay from this
package on the basis of value added, individual performance, peer
comparison, external comparison and the ability of the company
to fund all of this.
Bonus programmes
Our performance-related bonus plan, which was introduced
in 2009, is a signifi cant part of every employee’s total cash
compensation. It directly links company performance to individual
performance by creating a bonus pool based on the realisation of
annually determined fi nancial company targets. If the company
target is met, the available bonus pool is allocated to eligible
employees based on their performance. The target bonus
percentages vary, depending on the level of infl uence of each role
on the execution of TomTom’s strategy, and refl ected in the job
grade. The plan fi ts with our vision that success for TomTom as a
business should also mean success for the individual employee.
The salary and bonus potential benchmark analysis has led to new
bonus potential targets. These are differentiated by region and
show a fair refl ection of the pay practice in these regions, as well
as matching our global remuneration policy.
Share incentives programme
Long-term incentives are part of our remuneration policy, both for
the Management Board, as well as for our workforce. They are
intended to attract and retain key talent to the company while
aligning their interests with those of our shareholders. Until 2010
our main share incentive programme was to offer stock options
to selected talents. The stock option programme has since been
decreased in volume in order to address the risk of dilution and
underline the long term character of this compensation element.
Performance shares and restricted stock units were introduced
in May. All programmes have a vesting period of three years.
The new share incentives programme design has enabled us to
continue offering share incentives to the eligible people in our
workforce at a reduced risk of dilution.
Benefi ts
The new grading and benchmark analysis has enabled us to
harmonise the benefi ts packages that we provide to our TomTom
and former Tele Atlas employees. Our acquisition of Tele Atlas in
2008 required us to align our benefi ts worldwide. Although some
existing differences will be phased out over time, the vast majority
of our employees are now being paid according to the same
principles. This assures them of equal opportunity and increased
transparency as regards their remuneration.
TomTom is committed to offering all employees suffi cient security
in terms of pension, health and disability cover. Our worldwide
benefi t programmes therefore focus primarily on these areas.
Management Board Report | continued