You are on page 1of 3

To:

CSD Senior Associates


INTERNAL USE ONLY

New Bonus Program for Senior Associates


A Message from John Veihmeyer and Henry Keizer
KPMG has always been committed to competitive compensation; and the long-term financial rewards of an extended career with the firm are well documented. But we want to take our compensation programs to the next level, so were pleased to announce the introduction of our Early Career Investment Bonus (ECIB), which provides senior associates with a significant additional bonus and the opportunity to build an attractive five-figure nest eggover and above your annual salary and incentive compensationin just a few years. Heres how it works: If you are a current CSD senior associate with a 1, 2, or 3 rating you will be awarded $4,000 to be paid on May 15, 2013, provided you are employed by the firm on that date. Simple as that. But it gets better. By December 31, 2011 (just prior to the earnings period), you can elect to defer that $4,000 award for one year or two years and watch it grow: Defer the bonus for one additional year and receive $8,000 in May 2014 Defer the bonus for two additional years and receive $12,000 in May 2015

John Veihmeyer Chairman & CEO

Henry Keizer Deputy Chairman & COO

And it gets better still because next year the cycle starts all over again. And, the following year, it starts again! So a typical first-year senior can look forward to three ECIB cycles with the opportunity to layer up to $36,000 in total bonus payments by the end of the last cycle. Alternatively, participants who are eligible for multiple ECIB enrollment cycles can choose different deferment options for each cycle, giving them the opportunity to customize the timing and amount of their ECIB award to meet their own needs or particular life events, like a down payment on a new home. You must be a 1, 2, or 3 rated employee at the time of your election and

be employed by KPMG at the time of bonus payout. You will receive payment in the elected year, regardless of your level that year. In other words, if you elect this December to defer payment for two years and you are promoted to manager in 2014, you will still receive the $12,000 bonus in May 2015. Here are some examples of how the program can work for you: Example 1: Cindy, a first-year senior associate This example assumes three ECIB cycles, since Cindy is a newly promoted senior associate who remains in this role for three years before making manager. Cindy has decided to take the maximum deferral for each ECIB cycle for which she is eligible. In doing so, she is able to layer three $12,000 bonuses to receive a total of $36,000 between May 2015 and May 2017.

Example 2: Bill, a second-year senior associate This example assumes two ECIB cycles since Bill is a second-year senior associate who remains in this role for two years before making manager. Bill would like to buy a house in three years and wants to set up his ECIB bonus payments to help him accomplish this. During his first election cycle he chooses a two-year deferral to receive $12,000 in May of 2015. Then he chooses a one-year deferral in 2012. The result is a total bonus of $20,000, payable to him in May of 2015.

Example 3: Chris, a third-year senior associate This is an example of one cycle, since Chris is a third-year senior associate who remains in this role for one year before making manager. Chris chooses to defer his bonus for two years, but is promoted to manager in 2012. Even as a manager, he remains eligible to receive his $12,000 bonus in May of 2015.

The firm currently foresees continuing the ECIB program for several cycles. If we should decide to terminate the program at any time, any bonuses that have already been deferred will be guaranteed for payment on the date originally chosen. Your partner will be in a position to discuss the program with you when you meet about year-end compensation later this month. Also, watch for more information about ECIB in the coming weeks. With the introduction of ECIB, the Above and Beyond program will terminate at the end of this fiscal year. Having the best people with the skills and determination to deliver above and beyond means making sure we are an employer of choice and a great place to build a career. We know that investing in the careers of our people generates a tremendous ROI for our firm. With the ECIB program, you can be sure that your career investment in KPMG will also generate significant personal returnsprofessionally and financially.
Privacy & Disclaimer This message has been approved for distribution by John Veihmeyer and Henry Keizer. 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.