Merit Increase Survey

Results of quick merit increase survey.
BEDC Merit Increase Survey Results

Sector Merit Y/N % Promo %

Pharma Y 4.5% Included
Pharma Y .0% 2%
Bio N
Pharma Y 5.0% Included
Pharma Y 5.0% Included
Pharma Y 3.0% 1%
Pharma Y 4.0% Included
Bio Y 6.0% Included
Pharma Y 5.0% Included
Bio Y 5.5% Included
Diagnostic Y 5.0% Included
BioPharma Y 3.0% Included
Bio Y 3.0% 1%
Bio Y 4.0% Included
Pharma Y 4.0% Included

Stipends for employees who do not elect benefits

Thanks to all who responded! 13 companies who replied do not offer this type of benefit, 8 of which were interested in receiving more information. The companies who do offer this benefit said the following:

• • Company A offers a waiver of $1,000 per year (paid via PR, spread equally over 24 PR's) for waiving our medical insurance and $250 per year for waiving the dental insurance.
• We currently have a monthly waiver credit that is $70/month for medical insurance and $10/month for dental insurance. However, with the merger of our company, we are discontinuing this benefits effective 01/01/09.
• The company felt that the long term risk (for example covering employees who for the longest time took the stipend and then when they were very sick started using the benefit plan) outweighted the savings.
• Company B credits employees $50.00 monthly if they opt out of medical coverage.
• We have an OPT OUT option for employees. If they choose this they have to provide proof they are on their spouse's plan. They receive $500 per year as a benefit.

Other thoughts on the subject:

• We do not offer a stipend and would actually advise against it. Reason being, you can't take away ones eligibility for benefits, so if ever their circumstances change and they need benefits, you can't deny it. I guess you could then take away the stipend, but take aways are always difficult.

Merit Budget Survey for 2009

As many of you are evaluating merit increases in the current economic market, we thought it might be helpful to share data regarding average merit increases for 2009. Below are budgeted merit increase percentages anticipated for 2009, along with promotion percent. Thank you for your quick responses. I hope you find this information helpful.

• 23 Companies participated:
• 14 Companies reported a merit budget at 3.9% average
• 8 companies reported adjustment budget at 2.1% average
• 21 companies reported total budget at 5.7% average
• 2 companies reported no increases

Holiday Closure Survey

How many BEDC-member companies are planning a holiday shutdown for the week between Christmas and New Year's?
Thanks to all who responded to my question on holiday closures for the week between Christmas and New Year's. And the survey says....

42 total responses
22 yes
20 no
1 maybe

Of those who are closing, the vast majority are requiring employees to use vacation or PTO for at least three days that week (Dec 29-31). A few companies will be open again on Friday, January 2nd, but most who are closed that week are closed for the entire week.

Project Management E-Learning Course for the Life Sciences industry

Dear BEDC Colleagues,

Victoria Tucker of ZB Global has offered all of us a very valuable tool at no cost. Below please find her email with instructions on how to access the Project Management E-Learning Course for the Life Sciences industry at no charge!

Thank you so very much, Victoria!
----------------------------------------------------------
I wanted to personally extend an invitation to your BEDC membership to go online and take our Project Management E-Learning Course for Life Sciences at no charge. This is a course that we typically offer for $395 per person.

PMI Global Registered Educational Provider
As a PMI Global Registered Educational Provider, our Project Management learning is well vetted for standards, methodology and approach. More importantly, you’ll be able to learn from one of the true gurus in Project Management – Marty Wartenberg. The course is divided into 13 different learning modules. Each module is further divided into 5-7 minute learning media clips. Whether 2pm or 2am, you can go online and learn at your own pace.

Overview of Learning
Managing projects is similar to walking a tightrope – there’s a continual need to balance and juggle the primary project variables of cost, schedule and performance. This online workshop series targets those fundamental skill sets in project management equipping project leaders to plan, monitor and execute their projects effectively, in the context and environment of the Life Science industry.

E-Learning Features include:

• Multi-Media Presentations
• Short Quizes for Understanding and Application
• Downloadable PDF 4 Color Workbooks
• Downloading Audio and Media Capability to IPod or Flash Media Device
• Library
• Approx. 17 hours to complete online.
• 17 Professional Development Units from the Project Management Institute

Where to go Online and What to Type in for the Series at No Charge
http://learn.zbglobal.com
Username: pmwelcome
Password: welcome
Technical Questions? Go to support@zbglobal.com

10b5-1 Survey Results from BEDC members

Thank you all for responding to the 10b5-1 questions. As always, a pleasure collaborating with you all.

1) Do you have a 10b5-1 Plan? Of the 12 responses, 5 companies had plans in place, and I
will also include what Ardea’s provisions in the responses below for a total of n=6.

2) What is the cooling off period after implementation?

• N/A or zero
• 60 days
• 0
• Typically 30 days though it can vary
• 60 days
• 0

3) Do you allow participation in the plan beyond section 16 officers and/or VP level staff?

• Open
• Open, though not aware of anyone below the VP level participating
• Open, but not practically speaking
• All participants have been VPs, but no actual restrictions
• Available to Mgmt/Sr Scientist level
• At the discretion of our Committee (CBO/CFO) to allow participation, i.e. key covered employees

4) Up to what % of total holdings do you allow participants to sell through the plan annually?

• 20%
• Up to 100% of vested shares (RSUs only)
• No restriction, but there are weekly volume limitations
• 10%
• Case-by-case basis
• No limits

5) Do you allow participants to exercise outside of the 10b5-1 plan, or do they practically
speaking?

• Legally allowable, but typically, no.
• If the 10b5-1 is in place, then no.
• Legally allowable, but typically, no.
• Yes, allowed, and it has occurred.
• Yes, participants can sell outside of the plan, the plan is for RSU’s only.
• Legally allowable, but typically, no, or at least subject to review by our legal team.

Recommendations for Sexual Harassment Trainers

Joni E. Johnston, Psy.D., Work Relationships (2 recommendations)
(858) 481-8625.

Claudia Schwartz, HR Results (2 recommendations)
(619) 255-2600

Ann Marie Towle-Mason, SPHR, President, HR Source Consulting, Inc.
We consider her the best, the most qualified, engaging trainer to present our required sexual harassment training.
(858) 232-8666

Jean Center, The Center Group
We have been using Jean Center of The Center Group for the past few years. Jean is an experienced HR Director, consulting for several years now. She is engaging, likable, and speaks from experience.
www.centergroupconsulting.com
(619) 231-3924

Laura Roppe, Tatro & Zamoyski, LLP
A GREAT sexual harassment trainer! She's very enthusiastic, holds the attention of employees, and FUNNY. She makes her own "case study" scenarios, she's great. I used her in my previous company, and we're scheduled for a December training here.
www.tatrozamoyski.com
(858) 244-5032 X5028

ELT
We use ELT for the sexual harassment training. It is all done online.
www.elt-inc.com

Renee Schor, Schor & Freeland, LLP
We have used Renee Schor, who was with Baker McKenzie at the time, but has now gone out on her own. She is an excellent employment attorney and very engaging in her presentation (our managers at all levels really liked her). Renee knows her stuff and her rates are reasonable.
(619) 906-2400
www.schorfreeland.com

Rob Bowman, Bowman Consulting
(619) 218-8536

Mary Alcock, Alcock & McFadden
(858) 505-0303

Sandy Marciari
She is great - awesome!!! Even the participants had fun.
(619) 692-3905

Employee Referral Award Programs

Do you have an Employee Referral Award Program?
Yes - 19/No - 8
Comments:
No, but gifts are given to referring employees
No, but referring employees are entered into a contest for a trip to Las Vegas
Yes, only for exempt employees

If yes, do you pay different amounts depending upon the position?
Yes - 9/No - 10
Comments:
1)$250 Non-exempt, $500 Exempt
2)$500, plus bounty for extra hard jobs to fill
3) $2000 Non-exempt, $7500 Exempt to Assoc. Dir, $10,000 Director and above
4)$500 Lower level, $1000 mid level professional, $2500 Assoc. Director and above
5) $500 Non-exempt, assoc. supervisory,$ 1200 professional, manager assoc. Dir, $2500, Director & above
6) $100 Non-exempt, $200 Exempt
7) $400 Non-exempt, $1000 Exempt, $2000 hard to fill positions
8)$1000 Non-exempt, $2000 Exempt, $5000 hard to fill positions
9) $500, $1000 for hard to fill positions

How much do you pay?
$250
$500 – (3)
$500 – grossed up (1)
$1,000 – (5)

Is HR excluded?
Yes - 16/No - 2
Comments:
1 Company excludes the HR recruiter only

Is the Hiring Manager excluded?
Yes - 17/No - 2

Is the Executive Team excluded?
Yes - 16/No - 3

401k Plan & Stock Option Grant Policies

Survey of 15 member companies outlining 401k plans and stock option grant policies for new hires, anniversaries, performance, promotions and other milestones. Download the pdf.

Pregnancy Leave Policy Survey

Survey of 14 member companies addressing:

• Pregnancy Leave Policy
• Additional Paid Time for pregnancy? (weeks)

Download the spreadsheet.

HR Staffing Results

Thank you everyone - the number of responses was outstanding (28). Bottom line is, as an average, the SD Biotech community employs one HR staff member for every 65 employees. If we take out Scripps data (a much larger and more mature organization) that ratio drops to one for every 53 employees. Thank you again, this information will be extremely helpful.

#Employees #HR Employees
48 2
150 2
46 1
400 5
50 2
51 1.5
130 3
140 3.5
300 3
120 2.25
50 2.25
245 5
570 3
152 2
55 2
177 3
51 2
226 4
10 10
350 5.25
55 1
70 1
50 1
127 3
3026 31
74 2
34 1
335 4

Total #Employees: 7092
Total #HR Staff: 107.75
Ratio: 65.8/1

Bonus Survey

We were curious to know which of our companies offers a bonus and, of those who do, how it is structured:
*% of salary
*Individually performance-based
*Company performance-based
*Pays out quarterly, bi-annually, or annually

Also, for those companies that do offer bonuses, do any of you offer them only for specific hard-to-fill positions, and not for the whole employee base? Download the spreadsheet.

Tuition/Graduate Studies

Thank you to all for your responses to our question on your tuition policy and how it pertains to graduate studies. Results showed that:
- graduate studies are covered by the same tuition policy as that used for undergraduate studies.
- the maximums range from 1k - the IRS max of $5,250
- in accordance with the policy, must be job related.

Finance/Accounting Organizational Structure Results from BEDC

A comprehensive survey of 10 member companies including data on the organizational structure of their Finance & Accounting Departments. Download the spreadsheet.

Working from home

Thanks to those who participated in my recent survey about working from home. I heard back from 7 companies. Here is what I found:

1 company does not allow its employees to work from home.
1 company is researching this issue to implement a program this year.
5 companies allow some employees to work from home.

• None has a formal policy.
• Usually 1 – 2 days per week.
• 1 company starts with a trial period (1 – 2 months)
• Ability to work from home is determined by the person’s job, the performance level of the individual and/or by the supervisor/dept. head
• 4 companies provide the VPN line, none mentioned office furniture
• Worker’s comp – most felt their current policy covered workers whether at home or at the office
• Measurement – no formal process; supervisor determines if the work is getting done in timely manner – they seem to be more productive due to fewer interruptions

Team Building Provider References

The Leadership Edge - Gaylene Xanthopoulos
(858) 454-6540 x 202
www.theleadershipedge.com

Organizational Effectiveness Center - Leslie Solomon
(858) 755-1697

Partnership in Change - Dana Kirkland
(619) 444-0682

UCSD Challenge Course Outback Adventures
Denise Ouellette
(858) 822-3558
www.recreation.ucsd.edu/outb/

Tamayo Consulting - Jennifer Dreyer
(760) 479-1352
www.tamayoconsulting.com

Great News Cooking School - Allison Sherwood
(858) 270-1582 x 115

Harbor Island Yacht Club www.sandiegoteambuilding.com

Picnic People (858) 586-1717

Debra Pettry - Coach for sr mgmt

Connie Joy - ropes type activities

Promotions Committees

Fourteen companies responded to our inquiry about Promotions Committees. One company said that they have a Promotions Committee. It was vague as to whether they require 100% agreement or will settle for a majority vote. They did not have a policy around the committee or any kind of charter. Only senior leaders are on the committee.

Three companies said they do not have a Promotions Committee and offered up no further information.

The remaining ten companies said that they do not have a Promotions Committee per se but either the executive team/management team/ops committee or R&D team leaders or Sales Directors or other body meets to review those being promoted. Some only review candidates at particular levels and above while others review all candidates. Most said they must reach consensus but three do not. None has a written policy or charter for the committee. Two said that you work directly with the Dept. Heads/VP’s, push back where necessary, and one then presents the list directly to the CEO.

Executive Equity Grants

This survey of BEDC Members supplied interesting anecdotal data that supplements the peer group information which we access for the top positions. As you might imagine, the data is widely dispersed for those who use multiple of salary or percentage to value annual grants. Here are the ranges reported:

CEO 20% - 300%
EVP 15% - 100%
SVP 12% - 100%
VP 10% - 62%
Director 5% - 33%

In speaking with the top HR or Comp folks at several peer diagnostic companies, the trend tends to be to target equity more in the 3x range for CEO, 2x range for SVP, and 1x range for VPs.

EE Notification to Company Regarding Bio Burden

Earlier this month I asked about policies regarding employee illnesses when working in a pharmaceutical clean room environment. I received three responses (thank you).

In the interest of providing you all with a basic summary, the input I received ranged from considering accommodation so there is no loss in pay, consulting the CDC home site, to finally a sample of an SOP that addresses this issue. Basically, it is up to the employer based on business necessity and cleanroom operations. We've decided (based on the chemical we work with in the pharma mfg) that there can be no symptoms of cold, coughing, sneezing, infection, or bleeding injuries. Employees will be re-assigned outside the mfg area and perform other work instead.

Severance Agreements

Feedback regarding severance agreements:
Company A
VP’s, Directors – 6 months
CEO – 1 year
If Change of Control – 1 year for all

Company B
VP’s – 6 months
CEO – 1 year
Change of Control only

Company C
2 – 12 weeks for performance related dismissals
Larger payout for Change of Control
3 levels of VP and above have own program
Sr Dir/Dir, Assoc Dir/Manager, Indiv. Contributor – each group has a max number of weeks based upon years of service (12 – 26 weeks)
Pay severance with normal payroll, not paid in lump sum; COBRA also paid

Company D
VP & above – 6 months
Only available with Change of Control and loss of job – double trigger
No severance for performance issues

Company E
Change of Control only – double trigger
Below VP – 3 months + 2 weeks per year of service
VP’s – 1.5X annual salary + 1 year of bonus

Company F
General severance provision – 2 to 10 weeks + 2 weeks per year of service to a max 26 weeks (non-exempt through non-officer VP)
Change of Control for officers only (not all VP’s) – 6 months, CEO – 1 yr.
COBRA paid, no equity acceleration
Change of Control – Officer VP’s get 12 months, CEO gets 18 months – double trigger
Target bonus, COBRA and 100% equity acceleration

Company G
Change of Control only
VP’s – 6 months, CEO – 12 months
Performance issues – negotiate individually, typically 3 – 6 months with signed release

Company H
When company was acquired – Director level – 12 months pay & 12 months COBRA Above Director – 18 months
Involuntary term (not for cause) – 1 week + 1 week per year of service for all grades to Director
Director & above – 2 weeks plus 2 weeks per year of service

Company I
Change of Control (SVP & above) – 2X annual salary
CEO – non CoC events – 1X annual salary
Other separations – 2 weeks + 1 week per year of service

Company J
CoC and Constructive Termination – double trigger (can be reduction of pay of more than 5%)
All VP’s and above are covered – 9 months + 1 month per year of service up to 15 months
CEO – more
Company K
Only for CEO, COO and EVP, not all VP’s
CEO – Change of Control only
COO/EVP – CoC and job performance – different amounts depending on the situation

Company L
Change of Control only
Dept. heads, key positions, all VP’s, executives
6 – 12 months

Company M
All levels – anyone who leaves with a package
CoC, job performance, or other reasons are covered
1 week to 6 months
Not known for executive levels

Company N
All VP’s – 6 months
EVP’s – 9 months
Any termination for other than cause

Company O
Execs only – 6 – 12 months
Change of Control, termination without cause, voluntary termination with cause

Company P
Officers only
Termination other than cause
1 year salary and benefits
Change of Control – options 100% vested

Company Q
Officers only
Change of Control or termination other than cause
CEO - 1 year salary, can be extended additional 6 months if no new job, avg. 3 years bonus, COBRA
Officer VP – 9 months salary, can be extended additional 3 months if no new job, avg. 3 years bonus, COBRA

In summary, most companies cover non-officer VP’s as well as just officers. Several go into lower levels within the organization. Most companies cover both Change of Control and Constructive Termination occurrences. The average payout seems to be 6 months to 1 year of severance. Thanks everyone! This helps me tremendously! Susan M.

Vacation Policy

A comprehensive survey of 19 member companies addressing the following questions:

• Number of vacation days offered for 1-5 yrs of service
• Number of vacation days offered for 6-10 yrs of service
• Number of vacation days offered for 10+ yrs of service
• Are vacation/PTO combined (Y or N)
• Number of PTO days total

Download the spreadsheet

Cashing Out Vacation Hours

Thanks to all that responded to our question regarding your practice on cashing out of vacation hours. In summary:
19 responses
13 No, of which 3 are considering some payout.
6 Yes, all of which have a 50% of balance rule/up to 40 hours max, of which 3 only permit at time of financial hardship.

Benchmarking Sick Leave Policy

Survey regarding Benchmarking Sick Leave Policies

We have 30 employees. We had 10 days vacation and 11 days sick. We converted to Paid Time Off of 15 days and eliminated the traditional vacation and sick accounts.
- Director Human Resources
- - - - - - - - -
We have 12 ees. We roll sick and vacation into one account; PTO. Ees accrue up to 15 days their first year and a day more a year after that up to 20 days.
- - - - - - - - -
I have worked in companies under 50 and the sick time policy has been/ is 5 days per year. Anything over 5 days absence requires a Doctors certificate and anything over 5 days may constitute a leave where the employee can utilize vacation time in combination with Short term disability.
- Human Resources Manager
- - - - - - - - -
As to your question - it seems to me most companies regardless of size are now having a single 'paid time off bank' that covers any and all reasons for leave.
We offer:
Full-time employees accrue at a rate of 17 PPL days per year for the first year of employment. This rate increases an additional day per year, on the employee's anniversary date, up to a maximum accrual rate of 32 days per year. Modified full-time employees (working > 32 hours/week but < 40) accrue at a rate of 80% of the full-time accrual to a maximum accrual rate of 25.6 days per year. Part-time employees (working < 31 hours/week) earn 2.725 PPL days per year for the first year of employment up to a maximum accrual rate of 6.75 days per year.
- Director of Strategic Staffing and Diversity
- - - - - - - - -
We are about 130 employees. We allow for up to seven sick days per year as a non-vested benefit.
- HR Director
- - - - - - - - -
In the old days when we have fewer than 15 employees we had 5 days of sick leave, 3 days of personal leave and 3 weeks of vacation time. And if someone showed up for any part of the day then we paid them for the full day, so if someone came to work, worked for an hour or two but went home sick we paid them for that whole day and didn't charge them any sick time. Of course, these were all full time exempt employees. We were acquired in 2000 so we have an entirely different policy now as we have 170 ee's in San Diego and total 1,600 worldwide. 8-) I've been here since the beginning so I still remember the original early days policy.
- Director, HR

Waiting Week Compensation

Questions:
1. Do you compensate employees during the waiting week for disability or family leave?
2. What does your STD policy provide the employees as a % of salary?*
3. Does your policy have a cap or max payout per week/month?

* Self insured or separate policy, usually coordinated with SDI/PFL and assuming timely filing for SDI/PFL benefits by employee

Company A: Use of PTO 70% $3000/week
Company B: Yes, 100% of salary 100% No
Company C: Yes, 100% of salary 100% No
Company D: Use of PTO 60% $2500/week
Company E: For STD: sick time; for PFL: vacation
Company F: Use of sick time or vacation No STD coverage other than coordinating sick time/vacation with SDI/PFL n/a
Company G: Use of PTO. If no PTO, get 2 days paid. 60% $5000/month
Company H: For STD: Use of sick time or vacation, for PFL: Use of vacation 66.67% $3500/week
Company I: For STD: Yes, 100% of salary. For PFL: No STD only: 100% for first two weeks, then 75% until LTD kicks in n/a
Company J: Use of PTO 66% High to provide same benefit for executives
Company K: For STD: Yes, 100% of salary. For PFL: Use of PTO STD only: 100% for first seven weeks, then 75% until LTD kicks in n/a
Company L: For STD: Yes, 100% of salary. For PFL: Use of Vacation 100% for first two weeks, then 70% until LTD kicks in n/a
Company M: Use of sick time or vacation 60% $2500/week
Company N: Use of sick time or vacation 60% $1200/week
Company O: For STD: 100% of salary, for PFL: TBD 100% (66.67% through STD policy, balance paid by company) n/a
Company P: Use of sick time or vacation 80% (66.67% through STD policy, balance paid by company) $2308/week
Company Q: Use of PTO 60% $2500/week
Company R: Use of sick time 60% $1500/week
Company S: Yes, 100% of salary 66.67% $1500/week
Company T: Use of PTO 60% $2000/week