2017 CDB Pharmaceutical and Health. Sciences Compensation Surveys - U.S.

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1 17 CDB Pharmaceutical and Health Sciences Compensation Surveys - U.S. Participate and tap into high-quality data to refresh your pay program. When it comes to attracting and retaining talent, pay matters. Participate in Willis Towers Watson Data Services 17 CDB Pharmaceutical and Health Sciences Compensation Surveys - U.S. and gain access to data and insights that frame your compensation decisions. At a glance 17 CDB Pharmaceutical and Health Sciences Executive Compensation Survey - U.S. Functions unique to the pharmaceutical and health sciences industry Benchmark job-matching design 17 CDB Pharmaceutical and Health Sciences Middle Management, Professional and Support Compensation Survey - U.S. Functions and disciplines unique to the pharmaceutical and health sciences industry Mid-May due date for survey participation* Career-level job-matching design Results will be available in mid-september Mid-May due date for survey participation* Results will be available in late September Results are segmented by: Revenue Results are segmented by: Organization unit and size Revenue Therapeutic area Organization unit and size Nearly new or revised executive benchmarks, functions and disciplines, including: Top digital marketing executive Pharma packaging operations Doctors and hospital assistance Therapeutic area Geographic area *Compensation Data Bank (CDB) accepts data throughout the year. In order for us to provide timely results, the above due dates are strongly encouraged. For an extension, call or wtwusdata@willistowerswatson.com. Included in both reports: Long-term incentive (LTI) Base salary Actual and target bonus Total cash compensation expected values Total direct compensation Participate today Visit wtwdataservices.com to access participation materials and submit data for the pharmaceutical and health sciences compensation surveys. Only participants will be able to obtain the comprehensive data available through CDB.

2 Highlights from the 1 CDB pharmaceutical and health sciences survey reports 74% of the 1 participating organizations submitted data to the 1 executive survey. Total direct compensation premium paid to the top executives is 4% for small life sciences companies (primarily due to significantly larger LTI values) and 2% for large life sciences companies (when compared with like-sized general industry organizations). 1 CDB Pharmaceutical and Health Sciences Executive Compensation Survey Report - U.S. Pay data for more than 4,000 executives, reported by more than 7 organizations. Data are collected for 17 executive benchmark positions in functions unique to the pharmaceutical and health sciences industry, as well as those common to all industries. 1 CDB Pharmaceutical and Health Sciences Middle Management, Professional and Support Compensation Survey Report - U.S. Pay data for nearly,000 incumbents, reported by more than 0 organizations. Data are collected for 40 disciplines in 4 functions unique to the pharmaceutical and health sciences industry, as well as those common to all industries. We also suggest: 17 Long-Term Incentives, Policies and Practices Report - U.S. No executive compensation program is complete without considering the impact LTI plans and awards have on total direct compensation. Make sure your LTI plan keeps pace with the market. Visit wtwdataservices.com to access the product page for 1 survey participants and a listing of the 17 executive benchmarks, functions and disciplines. As a participant in our 17 CDB Pharmaceutical and Health Sciences - U.S., you re also eligible to purchase the Long-Term Incentives, Policies and Practices Report - U.S. With detailed insights into the latest LTI practices and trends, you can design or update plans for employees that incent desired behaviors and drive company performance. Have questions? Join our survey launch and participation webinars for the U.S. CDB executive compensation surveys (Tuesday, February 2) and middle management, professional and support compensation surveys (Thursday, March ). For more information or to register, contact our Client Care team at , us at wtwusdata@willistowerswatson.com or view our Upcoming Events page at wtwdataservices.com. Recordings of the webinars will be available after the event. 2 wtwdataservices.com

3 Take your pay strategy to the next level 17 Pharmaceutical and Health Sciences International Long-Term Incentives Survey Report A subset of the General Industry International Long-Term Incentives Survey database, the report provides detailed information about global LTI policies, practices and grant values outside the home countries of major multinational pharmaceutical and health sciences companies. Last year s report included responses from 2 pharmaceutical and health sciences multinational organizations, with insights on more than,000 employees in over 4 countries. Highlights from our 1 database: 4% made plan design modifications within the last 12 1 months to reflect tax and legal issues outside the home country. 2% report challenges managing global LTI plans, and most rank addressing global award grant size as the top challenge in the next year. 2% are granting more than one form of LTI incentive award to international employees. Pharmaceutical and Health Sciences International Long-Term Incentives Survey Report Grant Values by Country Asia Pacific Region (continued) AUSTRALIA GLOBAL TOTAL SAMPLE (AUSTRALIA USD = 1.2 AUD) Salary Ranges (000) - (AUD) LTI Award Value - USD (000) LTI Award Value - % of # of 2th Median 7th 2th Median 7th Responses Greater Than Pharmaceutical and Health Sciences International Long-Term Incentives Survey Report Award Grant Guidelines Frequency of Review A majority of organizations (%) review international LTI grant guidelines on an annual basis. FREQUENCY OF REVIEW % of Annually % 17 Periodically 2% Every 2 or Years 1% 4 EXCHANGE RATES REVIEWED (RELATIVE TO THE HOME COUNTRY CURRENCY) % of Data displayed for illustrative purposes. Report formats and pay elements may vary by survey. # of Never 47% Annually 0% At the Same Time as Market Data Review 2% 7 Only if There are Significant Currency Movements # of Only % of organizations report adjusting LTI payouts to reflect changes in relative exchange rates that occurred between the time of grant and the time of payout. 17 General Industry International Long-Term Incentives Survey Report Now in its sixth year, the General Industry International Long-Term Incentives Survey Report has become a premier source for data and insights on global LTI programs that help multinational organizations manage and deploy top talent worldwide. Last year s report captured the LTI grant practices and grant values of more than leading multinational organizations that provided data on over 1,000 employees in countries. 17 participation materials will be available in late March at wtwdataservices.com. At a glance The 17 survey report will provide detailed information about international LTI policies, practices and fair values* outside the home countries of major multinational companies, including: Hard-to-find expected LTI grant data fair values in approximately 0 countries based on accounting value methodology Market trends, including key issues identified by participants Prevalence of different types of LTI plans Eligibility and participation policies, plus participation statistics by lowest salary for those receiving grants Key program insights (e.g., a majority of organizations extend stock ownership guidelines outside the home country) *Fair value is the per share value of the award at grant as calculated under International Financial Reporting Standards (IFRS 2), or the equivalent standard under local country Generally Accepted Accounting Principles. 17 CDB Pharmaceutical and Health Sciences Compensation Surveys - U.S.

4 Choose from individual reports or our cost-saving reports package Reports package Advanced Published 17 CDB Pharmaceutical and Health Sciences Reports Package - U.S. 17 CDB Pharmaceutical and Health Sciences Executive Compensation Survey Report - U.S CDB Pharmaceutical and Health Sciences Middle Management, Professional and Support Compensation Survey Report - U.S. $,0* $7,0 Individual reports SAVE! Advanced Published 17 CDB Pharmaceutical and Health Sciences Executive Compensation Survey Report - U.S. $7,00* $,0 17 CDB Pharmaceutical and Health Sciences Middle Management, Professional and Support Compensation Survey Report - U.S. $,000* $,0 17 Long-Term Incentives, Policies and Practices Report - U.S. $,0 17 Pharmaceutical and Health Sciences International Long-Term Incentives Survey Report $,00 Purchasers of the Advanced pharmaceutical and health sciences reports package with the CDB general industry survey results save more than 0% off the price of purchasing the reports individually and gain access to industryspecific and general industry jobs for comprehensive pay planning. 17 General Industry International Long-Term Incentives Survey Report $,00 17 Pharmaceutical and Health Sciences International Long-Term Incentives Survey Report + 17 General Industry International Long- Term Incentives Survey Report $,00 *Includes the 17 CDB general industry compensation survey results Select reports that best suit your organization s needs and budget. 4 wtwdataservices.com

5 Online data delivery Advanced features Receive all the features of the Published version. Create peer groups by company name or characteristic (e.g., industry, size or performance measure). Customize report formats and content (e.g., select preferred percentiles and currencies, and tailor report content, titles and labels). Combine career levels and disciplines. View and compare your data to the market. Access new data as they are submitted throughout the year (for select surveys). Combine publicly disclosed data and survey data in customized peer groups (available for the CDB General Industry Executive Compensation Survey Report - U.S.). For further exploration: Willis Towers Watson Compensation Software Smart, intuitive and designed to help you create and manage effective pay structures that place total compensation within the context of performance, market benchmarks and systemwide equity. To learn more, visit towerswatson.com/hrsoftware. For further assistance, please contact our Client Care team at or wtwusdata@willistowerswatson.com. Published features View, print and export presentation-ready reports (PDF or Excel). Set user preferences: age data, select currency and format numbers. Configure views and reports to show only the elements and statistics of interest. CDB Pharmaceutical and Health Sciences Executive Compensation Survey Report U.S. Position Summary Table Position : AAB2 EX Domestic Pharmaceuticals Business Head Organization Unit : Noncorporate Target Bonus % Total Cash Compensation Target Total Cash Compensation Long Term Incentive Long Term as % of Base Total Direct Compensation Target Total Direct Compensation Incs Average th 2th , , ,.1 1,.2 1,44.0 2,01.0 1,17. 1,42.4 Employees Supervised,2 4 1 Reporting Level 1 1 Unit Size (Millions) 7,4. 1,.,0. Bonus Eligible Bonus Receiver Long Term Incentive Eligible 0% Yes 0% Yes 0% Yes Median 7th , , , ,.. 1,.1 2, ,77. 2,47.1,.4 1,4.7 2,1.,2.7 1,4 4,,00 2,7.0 12,.0 1,077.0 Long Term Incentive Receiver 0% Yes CDB Pharmaceutical and Health Sciences MMPS Compensation Survey Report U.S. Summary Breakout Table Function : PDR Drug Discovery Research Level : P Career (P) Total Sample Incs Avg th th Median th Avg 2th Median 7th Avg. Total Cash Compensation th 2th Median 7th Discipline Biological Research Chemical Research Incs 20 Avg th. 2th Median th Avg 2th Median 7th Avg Total Cash Compensation th 2th Median 7th CDB Pharmaceutical and Health Sciences MMPS Compensation Survey U.S. Base/Bonus Summary Table Bonus Amount Incs Average 2th Median 7th Incs Average 2th Median 7th Less Than $0, $0,000 to $, $,000 to $0, $0,000 to $0, $0,000 to $70, $70,000 to $0, $0,000 to $0, $0,000 to $0, $0,000 to $1, $1,000 to $1, $1,000 to $10, $10,000 to $1, $1,000 to $10, $10,000 to $10, $10,000 to $0, Greater Than $0, Data displayed for illustrative purposes. Report formats and pay elements may vary by survey. 17 CDB Pharmaceutical and Health Sciences Compensation Surveys - U.S.

6 The world s most trusted Executive Compensation Data Sound and defensible decisions about executive pay require transparent, decision-quality data that boards and shareholders can trust. For compensation committees and executive compensation professionals the world over, Willis Towers Watson s Executive Compensation Data is the only logical choice. Participate in Willis Towers Watson s executive compensation surveys and gain access to the most robust and up-to-date compensation benchmarking data available. Our executive compensation surveys offer unrivaled peer group, job and country coverage, yielding results on more benchmark jobs and in more countries than any other source. Our surveys cover more than 1 cross-industry benchmarks and up to 0 industry-specific benchmarks in select geographies. Also, Willis Towers Watson executive compensation consultants can help with data analyses, including total spend, projected pay analysis, pay-for-performance alignment and detailed analysis from disclosures. NEW! Willis Towers Watson now offers an exclusive Global Executive Data Member program. Submit data for all of your executive jobs in a single global data submission workbook. Benefit from exclusive global purchasing options, a 2% discount on select reports and a dedicated survey team comprised of a data specialist and an executive compensation consultant to help you submit data and interpret survey results. Contact our Client Care team at or wtwusdata@willistowerswatson.com for more details on our newly enhanced global executive survey offerings and global executive data membership program and discounts. Willis Towers Watson Data Services Willis Towers Watson Data Services is a leading provider of compensation, benefit and employment practice information to the global employer community. Our databases are recognized worldwide as a premier source of current data for compensation planning. Willis Towers Watson Data Services 44 South Broadway, 1th Floor White Plains, NY T F wtwusdata@willistowerswatson.com wtwdataservices.com About Willis Towers Watson Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 12, Willis Towers Watson has,000 employees serving more than 1 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com. willistowerswatson.com/social-media Copyright 17 Willis Towers Watson. All rights reserved. GDS-17-RES-a (M) wtwdataservices.com