Introductions - global equity...•Learning management systems 1970s 1980s 1990s 2000s Trend 4 The...

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Seeing Is Believing: Demonstrating theEffectiveness of Equity Programs

Thursday, 10 April 2008

Scot MarcotteTechnology Solutions Leader,

Buck Consultants, an ACS Company

Joyce GoodenManager, U.S. Compensation, Relocation

and Global Equity Programs,Corning Incorporated

2 © Corning Incorporated 2008

Introductions

•Scot MarcotteTechnology Solutions Leader,

Buck Consultants, an ACS Company

•Joyce GoodenManager, U.S. Compensation, Relocation and Global

Equity Programs, Corning Incorporated

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Personalized Communication Timeline

• Flexible plan design

• Personalized printbenefit statements

• Computer-generatedpay checks

• Voice response / touch screens

• Internet as a tool

• Corporate intranets

• Online total compensationstatements

• Web-based planning tools

• Proliferation of HRIS systems

• Talent management

• HR business intelligence

• Real time pay forperformance tracking

• Individually-craftedrewards packages

• Global interoperability

• Desktop computers

• Printed total compensationstatements

• Compensation planningand modeling software

• Online total rewards systems

• Integrated decision support

• Transparency

• Push technology

• Corporate portals

• Learning management systems

1970s 1980s 1990s 2000s Trend

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The Importance of Employee Engagement

• Enhanced employee and manager self-service

• Better linkage between pay and performance

• Improved awareness of total rewards package forattraction and retention

• Smarter plan selection and utilization through integrateddecision support tools

• Global team building

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Corning Incorporated

Founded:1851

Headquarters:Corning, New York

Employees:Approximately 25,000(11,000 US; 14,000 Int’l)

2007 Revenues:$5.86 Billion

• Corning is the world leaderin specialty glass and ceramics.

• We create and make keystone componentsthat enable high-technology systems forconsumer electronics, mobile emissionscontrol, telecommunications andlife sciences.

• We succeed through sustained investmentin R&D, over 150 years of materials scienceand process engineering knowledge, and adistinctive collaborative culture.


Market Segments and Additional Operations

DisplayDisplayTechnologiesTechnologies

• LCD Glass Substrates

EnvironmentalEnvironmentalTechnologiesTechnologies

• Automotive EmissionsControl

• Diesel Emissions Control• Stationary Emissions Control

TelecommunicationsTelecommunications

• Optical Fiber and Cable• Hardware and Equipment

_ Coaxial Connectivity Products

SEGMENTS

ADDITIONAL OPERATIONS • Specialty Materials

– Advanced Optics and Materials– Display Optics/Components– Semiconductor Optics/Components– Aerospace– Astronomy– Optical Metrology– Ophthalmic– Telecommunications Components– Specialty Glass

Life SciencesLife Sciences

• Drug Discovery and Genomics• Cell Culture & Bioprocess• General Laboratory Products

• Equity Companies• Dow Corning Corporation• Eurokera, S.N.C• Samsung Corning Company, LTD (SSC)• Samsung Corning Precision Glass

Company, LTD (SCP)

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Growth Through Innovation

• Our culture of innovation is built onthe foundation of research anddevelopment

• Our commitment to innovationdistinguishes Corning as a truetechnology leader

Fast Company lists Corning among'50 top innovators'

“Corning spends $2 million eachworkday on R&D, employing 1,800researchers and a process that’s bothrigorously disciplined and near Google-like in its openness.” - Charles Fishman, Fast Company


Evolution of Total Rewards at Corning

• Aligned compensationplanning processes into singleglobal process:

– Performance Reviews

– Annual Salary Reviews

– Variable Comp (PerformanceIncentive Plan)

– Long-Term Stock Options

• Developed CompensationPlanning Tool for HR andManagers

• Equity compensation trainingmaterials

• Global Total Rewardscommunications

• Total Rewards portal – U.S.employees

2004 – 2007

• Redesigned globalcompensation program

– Broad band structure

– Drive variable comp further down into salaried ranks

– Broad base Stock Optiongrants

• Outsourced StockAdministration

• Developed Total Rewardsbrand

2001 – 2003

• Realigned administration andtechnology infrastructure tosupport business strategy

• Streamlined organization andfocused on core competencies

– Began outsourcing HR services

• Redesigned benefits packageto attract innovators and mid-career hires

– Cash Balance Pension

– Richer 401(k) Match formula

Late 1990s – 2000

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Corning Equity Participation

Employee Stock Purchase Plan

• Available in 15 countries

• ~ 6,000 participants

Stock Options, Restricted and Performance Shares

• Issued in 24 countries

• ~ 8,000 participants


Corning Growth Shares Philosophy

Why does Corning grant stock options?

Increases employee ownership inCorning

Share in our company’s potentialfuture financial success

Employees profit directly if Corning’sstock value increases

Gives employees a powerful incentiveto help the company succeed

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Communications Strategy

– English

– Russian

– French

– Spanish

– Portuguese

– German

– Simplified Mandarin

– Traditional Mandarin

– Japanese

– Polish

– Turkish

– Spanish (Latin American)

Integrate equity in our Annual Total CompensationStatements

• Manager’s make equity decisions as part of the Annual Salary Review Process

• Long-term Incentive grants are issued each April

• Statements are produced in 12 languages


Annual Compensation Statements

Chinese Statement

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French Statement



English Statement

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Communications Strategy

Internal Employee Equity Website(Corning Growth Shares)

Growth Shares Brochure

Terms & Conditions

Plan Prospectus

Smith Barney Benefits Access– Website link– Call Center Information

eBriefing (Training Tools)

Country-Specific Information– Employer– Employee


Total Rewards Framework

• Total Rewards creates linkbetween employees’ personalfinancial, career development,health and life goals

• Total Rewards is how Corningrecognizes and rewardsemployees for driving…• Our collective success as a

company

• The individual success of theircareers and personal lives

TotalWealth

TotalHealth

TotalSelf

Competitive

Comprehensive

Balanced

• Total Rewards On-Line is avenue to show employees howour Compensation & Benefitprograms are competitive

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Total Rewards is a Global “Franchise”


Total Rewards On-Line – U.S. employees

Annual Rewards: Annualized base

Variable pay

Retirementbenefit accruals

Employee contributions

Wealth Accumulation: Pension Plan

Investment Plan,

Employee StockPurchase Plan (WESPP)

Stock Options

Stock Awards

Stock Modeling Tools

Print Capability

Employee Feedback

Administration

Manager Access

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Total Rewards On-Line EnhancementsNEW! Estate planning module:

Shows the value of employees’ Company-provided life, accidentbenefits, now and during retirement

Refreshed/historical data: Providing employees with updated information gives them the

clearest picture of the value of their Total Rewards and of how thatvalue changes over time

Include historical stock option and award annual gains to giveemployees a comprehensive picture of the equity impact

Single Sign On to Equity Administrator

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Total Rewards Trends

PersonalizedTotal Reward

SelfService

InteractiveModeling

FinancialPerspective

CustomerPerspective

BusinessProcesses

Learning andGrowth

BusinessIntelligence

AdministratorFunctionality

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HR/B

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ization V

iew

Total RewardsSystems

Role-BasedAuthentication

Employee Login

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Total Rewards Trends

Employee / Manager /

Alumni / Candidate Needs

• Personalized reward

• Total wealth accumulation

• Decision support

• Learning management

• Performance mgmt

• Comp planning

• Self service

Organization / Board /

Shareholder Needs

• Workforce planning

• Sourcing and recruiting

• Succession planning

• Financial perspective

• Compensation transparency

• BenchmarkingE

mpl

oyee

Organization

HR

HR/Administrator Needs

• Usage statistics

• Service center tools

• Compliance and governance

• Policies and procedures

• HR metrics reports

• Manager reports

• Onboarding

• User-specific content

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Total Rewards: System Concept

Introductions - global equity...•Learning management systems 1970s 1980s 1990s 2000s Trend 4 The...

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