2011 Form 4 Analysis: The Current Story to 2011 LTI Analysis: All Industries (166 Companies) Performance- Based Awards. Stock Options Value

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1 MarkeTrends Inside Analysis of Form 4 Filings Summary Results Industry Analysis Methodology Custom Analyses Available Companies Included in the Analysis MarkeTrends Form 4 Analysis: The Current Story Summary Results Recent media reports have characterized Chief Executive Officer compensation as rising significantly year over year. Both The Wall Street Journal and USA Today reported significant (and widely different) increases in executive pay. However, these analyses are stale, reporting on what companies were doing in early The current story is more useful and of greater interest to compensation professionals. Over the last few months, what are companies doing for their 2011 long-term incentive (LTI) awards? Our analysis of recent Form 4 filings shows 2011 equity incentives rising 13% from 2010 levels while stock prices have risen 20%. This increase has now brought LTI levels back to, and slightly above their 2008 levels. Other findings include: Not all industries rose equally, Industrials and Information Technology gained the most. They also had the highest stock price gains. Consumer Staples LTI levels are unchanged year over year. LTI values rose more than stock prices in two industries, Materials and Health Care, suggesting other factors (e.g., compensation for niche skills) are exerting an influence on pay. Organizations did more with less the number of shares awarded to achieve the higher economic dollar values fell by 7% at the median. This decline brought 2011 annual run rates more in-line with historical (prerecession) norms to 2011 LTI Analysis: All Industries (166 Companies) Change 2010 to 2011 LTI Analysis Restricted Options Performance- Based Awards LTI Economic Price Share Usage 75th %ile 22% 28% 36% 27% 36% 6% 50th %ile 10% 12% 9% 13% 20% -7% 25th %ile 2% -2% 1% 3% 4% -21% Average 28% 13% 80% 17% 23% -5% Copyright 2011 Aon Hewitt 1 May 24, 2011

2 Market Trends LTI Relative to Price 100% 100% 80% 98% 81% 111% 98% 56% Early 2008 Early 2009 Early 2010 Early 2011 LTI s Price Industry Analysis Growth in LTIs varies by industry, as shown in the table below ranging from no growth in Consumer Staples to 19% growth in Information Technology. Generally, LTI growth was one-half of stock price growth, but there are exceptions. Both Materials and Health Care LTIs grew faster than stock price, potentially due to other factors influencing award sizes (e.g., competition for talent) to 2011 LTI Analysis by Industry Change 2010 to 2011 LTI Analysis Restricted Performance- LTI GICS Industry Classification* Count Options Based Awards Economic Price Share Usage Consumer Discretionary 22 9% 2% 7% 9% 20% -14% Consumer Staples 10 4% 5% I/D 0% 9% -4% Energy 22 11% 15% 3% 13% 26% -7% Financials 30 5% 22% 5% 9% 20% -8% Health Care 18 9% 5% I/D 11% 10% 0% Industrials 25 15% 15% 17% 19% 28% -16% Information Technology 15 16% 23% 27% 18% 36% -4% Materials 11 9% 1% 38% 10% 5% -1% Utilities 9 13% 16% 5% 5% 7% -9% *Excluded Telecommunications due to insufficient data. I/D - Insufficient data. This year, we captured performance-based equity for companies where data was publicly available. We continue to see a trend towards change in the LTI mix through the introduction of (or added focus on) performance-based awards for the executive population. Approximately 8% of the S&P companies changed equity mix in Readers should exercise caution in extrapolating this general industry analysis to specific industries, peer groups, or companies. Copyright 2011 Aon Hewitt 2 May 24, 2011

3 Methodology This data comprises a sample of LTI participants at 166 Standard & Poors 500 (S&P 500) companies granting LTIs between November 15, 2010 and March 31, The data was collected from public filings such as Form 4s, 8-Ks, and Proxies. We excluded the following types of companies: Companies granting performance-based awards, the details for which were not available in public filings; Companies participating in TARP during their respective LTI cycles; and Companies where the executive population changed significantly from last year. To appropriately reflect the impact of LTI changes across all companies, we calculated the LTI values for each company separately using a standard methodology. Options The present value for stock options was calculated using the standard Black-Scholes option-pricing model for each company. The inputs for this value were: Volatility: The five-year daily volatility for the company as of January 1, 2010 and January 1, 2011; Dividend yield: The annual dividend as of January 1, 2010 and January 1, 2011 divided by the stock price; Risk-free rate: Current zero-coupon rates; and Option term: As provided in the Form 4. Restricted Restricted stock was valued at face value using the closing stock price on the date of grant. Performance-Based Awards All types of performance-based awards performance-based restricted stock, performance shares, and performance units, were valued at face value using the closing stock price on the date of grant. Custom Analyses Available We are able to provide a customized analysis for any company that wants to better understand the grants made by its specific industry or peer group. Copyright 2011 Aon Hewitt 3 May 24, 2011

4 Companies Included in the Analysis Abbott Laboratories Adobe Systems Incorporated AES Corporation Aflac Inc. Air Products & Chemicals, Inc. AK Steel Holding Corporation Akamai Technologies, Inc. Allergan, Inc. Allstate Corporation Altria Group, Inc. Ameren Corporation American Tower Corporation Ameriprise Financial Services, Inc. Anadarko Petroleum Corporation Analog Devices, Inc. Apartment Investment and Management Company Applied Materials, Inc. Assurant, Inc. Autodesk, Inc. Automatic Data Processing, Inc. AvalonBay Communities, Inc. Avery Dennison Corporation Ball Corporation Bank of New York Mellon Corporation BB&T Corporation Big Lots, Inc. The Boeing Company Boston Properties, Inc. Boston Scientific Corporation Broadcom Corporation Cabot Oil & Gas Corporation Carnival Corporation & plc Cephalon, Inc. Cerner Corporation Chevron Corporation Cincinnati Financial Corp Comcast Corporation Consolidated Edison, Inc. Dean Foods Company Denbury Resources Inc. Dentsply International Inc. Devon Energy Corporation Dominion Resources Inc. R.R. Donnelley & Sons Company Dover Corporation The Dow Chemical Company Dr Pepper Snapple Group, Inc. DTE Energy Company E. I. du Pont de Nemours E*TRADE Financial Corporation Eaton Corporation Ecolab Inc. EQT Corporation Equity Residential Expedia, Inc. Exxon Mobil Corporation Federated Investors, Inc. First Solar, Inc. Fiserv Inc. Flowserve Corporation FMC Corporation Forest Laboratories Freeport-McMoRan Copper & Gold Inc. Frontier Communications Corporation General Dynamics Corporation Genworth Financial, Inc. Gilead Sciences, Inc. Goldman Sachs Group, Inc. Goodrich Corporation Goodyear Tire & Rubber Company Halliburton Company Harley-Davidson, Inc. Helmerich & Payne, Inc. Hess Corporation Honeywell International, Inc. Hormel Foods Corporation Humana Inc. Illinois Tool Works Inc. Integrys Energy Group, Inc. Intel Corporation International Paper Company Intuitive Surgical, Inc. Invesco Ltd. ITT Corporation Johnson & Johnson J.P. Morgan Chase & Co. Copyright 2011 Aon Hewitt 4 May 24, 2011

5 Companies Included in the Analysis Juniper Networks Inc. Public Service Enterprise Group Inc. Kimco Realty Corporation PulteGroup, Inc. Kohl's Corporation RadioShack Corporation L-3 Communications Holdings, Inc. Robert Half International Inc. Leggett & Platt, Incorporated Rockwell Automation Lennar Corporation Roper Industries, Inc. Lexmark International, Inc. Rowan Companies, Inc. Lockheed Martin Corporation Safeway Inc. Lowe's Companies, Inc. Salesforce.com Inc. Marathon Oil Corporation SCANA Corporation Marriott International, Inc. Schlumberger Limited Marsh & McLennan Companies, Inc. Scripps Networks Interactive Masco Corporation Sigma-Aldrich Corp. McCormick & Company, Inc. Snap-on Inc. McDonald's Corporation Southwestern Energy Company Medco Health Solutions, Inc. Spectra Energy Corp. MetroPCS Communications, Inc. Sprint Nextel Corporation Morgan Stanley St. Jude Medical, Inc. Murphy Oil Corporation Starwood Hotels & Resorts Worldwide, Inc. National Oilwell Varco, Inc. Stericycle, Inc. Newell Rubbermaid Inc. Stryker Corporation Newfield Exploration Company Target Corporation Nicor Inc. Teradyne, Inc. Noble Energy, Inc. Texas Instruments Inc. Norfolk Southern Corporation Textron Inc. Northern Trust Corporation Thermo Fisher Scientific Inc. Northrop Grumman Corporation Tiffany & Co. NRG Energy, Inc. U.S. Bancorp NYSE Euronext Union Pacific Corp. J. C. Penney Company, Inc. UnitedHealth Group, Inc. People's United Financial, Inc. Unum Group Pepsico, Inc. Valero Energy Corp. PerkinElmer, Inc. Ventas, Inc. Philip Morris International Inc. Vulcan Materials Company Pioneer Natural Resources Co. Wal-Mart Stores, Inc. Pitney Bowes Inc. Waters Corporation Plum Creek Timber Company, Inc. Wells Fargo & Company PPL Corporation Williams Companies Inc. Precision Castparts Corp. Wisconsin Energy Corporation Priceline.com Inc. Wyndham Worldwide Corporation The Procter & Gamble Company XL Group plc Prudential Financial, Inc. Yahoo! Inc. Copyright 2011 Aon Hewitt 5 May 24, 2011

6 * * * * * The Executive Compensation Report MarkeTrends is prepared by Aon Hewitt s Executive Compensation Center of Technical Expertise led by Dave Sugar. Questions regarding executive compensation technical issues may be directed to Dave Sugar at or dave.sugar@aonhewitt.com. This report is a publication of Aon Hewitt, provides general information for reference purposes only, and should not be construed as legal or accounting advice or a legal or accounting opinion on any specific fact circumstances. The information provided here should be reviewed with appropriate advisors concerning your own situation and any specific questions you may have. Copyright 2011 Aon Hewitt 6 May 24, 2011