Towers Watson Data Services 2014 General Industry Local Chinese Nationals Compensation Report - China (Volume I) Total Cash Compensation General Industry Towers Watson Data Services 2014 General Industry Local Chinese Nationals Compensation Report - China (Volume II) Total Cash Compensation General Industry 2014 General Industry Local Chinese Nationals5 Compensation Report - China TABLE OF CONTENTS Introduction.......... 3 About This Report ........... 33 Profile of Participants ..... 36 Survey Methodology and User Guide... 43 I.Introduction to Survey Methodology...... 45 II.Matching Guidelines...... 47 III.Job Functions and Disciplines... 49 V.Career Bands, Career Levels and Global Grades .......... 51 Definitions61 Executive Summary....... 64 I. Economic Key Data....... 65 II. Trends in Salary Increase and Inflation .. 66 III. Compensation by Global Grade .. 67 IV. Compensation Comparisons among Cities ......... 68 V. Benefits Provision ........... 69 Benefits, HR Policies and Practices ...... 70 I. Salary Increases and Staff Turnover Rate .......... 71 Timing of Review Salary Increases in 2014 Salary Increases in 2013 Staff Turnover Rate II. Bonuses and Stock Plan . 73 Guaranteed Bonus Variable Bonus Share Option Plan Restricted Shares Share Purchase III. Allowances ......... 74 Meal Benefit Transportation Allowance Mobile Phone IV. Perquisites .......... 77 Housing Benefits Car and Transportation Plans Club Membership V. Tuition Assistance ........... 81 TABLE OF CONTENTS 2014 General Industry Local Chinese Nationals6 Compensation Report - China VI. Business Travel Arrangement..... 82 Travel Arrangement Within Mainland China Travel Arrangement Outside Mainland China VII. Relocation Arrangement . 87 VIII. Retirement Benefits ........ 88 Supplementary Plan IX. Insurance Policy . 89 Life/Personal Accident Insurance Business Travel Insurance X. HealthCare Plan . 92 Supplementary Medical Benefits Supplementary Outpatient Benefits Supplementary Hospitalization Benefits (Hospital Income Subsidy) Supplementary Maternity Benefits Medical Check-up Public Insurance XI. Leave Policy ....... 97 Annual Leave Sick Leave Other Leave XII. Overtime and Shift Policy ........... 99 Overtime Policy Overtime Meal Allowance Overtime Transportation Allowance Shift Allowance XIII. Starting Salary of Fresh Graduates ...... 102 Analysis of Cash Compensation......... 103 BEIJING Generic Title Job Code Discipline Career Level Page No. Top Executive Chief Executive Officer AAA000 EX 18 Chief Executive Officer Executive 105 Chief Executive Officer AAA000 EX 17 Chief Executive Officer Executive 106 Chief Executive Officer AAA000 EX 16 Chief Executive Officer Executive 107 Chief Operating Officer AAA020 EX 17 Chief Operating Officer Executive 108 Chief Operating Officer AAA020 EX 16 Chief Operating Officer Executive 109 Profit Center Management Profit Center Head AAB000 EX 17 Profit Center Head Executive 110 Profit Center Head AAB000 EX 16 Profit Center Head Executive 111 Profit Center Head AAB000 EX 15 Profit Center Head Executive 112 Administrative Services Head of Administration Services AAS000 M4 16 Administrative Services Generalist/Multidiscipline Group Manager 113