2018 Training Comp Cycle

2018 Compensation Training
Total Rewards
<Date here>
HUSKY CONTROLLED. HUSKY INFORMATION IS ONLY INTENDED FOR THE RECIPIENT. ANY DISSEMINATION
TO ANYONE OTHER THAN THE RECIPIENT IS UNAUTHORIZED AND STRICTLY PROHIBITED.
Year-End Cycle Training
Total Rewards | 2
Agenda Meeting
• Compensation Planning Cycle
 Merit
 Annual Incentive Plan
 Sales Incentive Plan/ Commission
 CEO Excellence
 PTU
• Data Freeze
• Compensation Planning Exceptions
• Timelines
Total Rewards | 3
Introduction to Merit Planning
• Base salary should reflect the market value of the job and the
sustained individual contribution to the business
• A merit increase should reflect the amount required, within budget
constraints, to reduce the gap between the current salary and the
salary that best reflects the job value and the Team Member’s
overall performance
Total Rewards | 4
Determining Merit Increases
• The Global Total Rewards team annually analyzes data from multiple sources and
issues an overall Merit Planning Matrix by country
• Country merit matrices are driven by:

 Demand for talent in local markets
 Inflation and GDP
 Market movement of similar sized companies
• These matrices are issued in January of each year, and include recommended merit
increases based on performance and position in the salary range
• The focus on merit spending should be on the highest contributing

Team Members who are furthest from the salary range midpoint
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Merit
• Merit applies to countries without COLA

• Eligibility permanent full-time and part-time team members who started before October
1, 2017
• Temporary team members are not eligible for merit except in China where it is required
by legislation
• Salary ranges are being reviewed and if changed for 2018, they will be available for
leaders in time for the compensation cycle
• Lump sums payments for those team members at the maximum are still under review
(last year was the first year we did not allocate lump sums)
• Team members with a performance rating of Unsatisfactory or Needs Development are
not eligible for merit
• Merit for Schottli team members is managed outside of the cycle
Total Rewards | 6
Merit Matrix Example
MERIT MATRIX
Position in Salary Range Unsatisfactory Needs Development Solid Performer Above Expectations Outstanding
Lump Sum (Above Range Max) Lump Sum: 0% Lump Sum: 0% Lump Sum: 0% Lump Sum: 0% Lump Sum: 0%
Upper (Compa Ratio > 1.1) Increase: 0% Increase: 0% Increase: 0 - 1% Increase: 1 - 2% Increase: 2 - 3%
Middle (Compa Ratio .090 - 1.1) Increase: 0% Increase: 0% Increase: 1 - 2% Increase: 2 - 3% Increase: 2 - 3%
Lower (Compa Ratio <0.90) Increase: 0% Increase: 0% Increase 2 - 3% Increase: 3 - 4% Increase: 3 - 4%
Example for Illustration only
Compa-Ratio = (Base Salary ÷ Midpoint of Salary Range) x 100
Total Rewards | 7
Base Salary - (COLA) Mandated Salary Increases
• Salary increases may be mandated by the government or collective

labor agreements
• Countries that currently have mandated increases are:

1. Austria
2. Belgium
3. Brazil
4. Colombia
5. Italy
6. Luxembourg
• Timing of these increases vary
Total Rewards | 8
Annual Incentive Plan (AIP)
• The Annual Incentive Plan provides team members the opportunity to earn
compensation based on the achievement of company and individual objectives
• AIP awards are based on company-wide financial and individual performance
Annual Base Salary AIP Award Range Company Performance Individual Performance
X X Manager assessment of
As of December 1 Determined by salary grade Company-wide financial
excluding overtime, and role performance individual performance
bonuses, allowances, results in discretion within AIP
Specified range from zero AIP award range AWARD1
disability benefits, premium
to maximum award
pay, shift premiums, meal
opportunity =
allowance etc.
1st 2nd
AIP is a percentage of the base salary except in countries where we pay more than 12
months e.g. 13th month; In those countries the calculation is based the base salary plus
the additional month(s)
1
Maximums apply
Total Rewards | 9
Annual Incentive Plan - AIP
• Eligibility permanent full-time and part-time team members who started before July 1,
2017
• Retirees in that fiscal year receive a prorated payment
• Temporary team members are not eligible for AIP except in China where it is required by
legislation
• Team members with a performance rating of Unsatisfactory or Needs Development are
not eligible for AIP
• Incentive for Schottli team members will be managed through the standard process (not
during the cycle)
• Sale Roles are not eligible for AIP – see slide on SIP and Commission
• In Mexico, there is a legislative profit sharing program called PTU. Team members in
Mexico receive the greater of the two payments, Husky AIP vs PTU
Total Rewards | 10
How does the AIP work for PPC Pilot
group BU Leaders?
Performance Measures
Financial measure
Corporate Component
e.g. EBITDA *
50%
(0-150%)
Individual
AIP + Total AIP
Payout
Target Business Unit Financial measure = (0-150%
as a Component e.g. Market Share
of AIP
% of base 25% (0-150%)
Target)
salary
+
Individual Component Personal Multiplier
25% (0-150%)
• Financial level (i.e. pre-determined minimum level of EBITDA) must be met in order for Corporate component
to be funded
Total Rewards | 11
How does the AIP work for PPC Pilot
Group Corporate Groups?
No Business Unit performance measure
Performance Measures
Financial measure
Corporate Component e.g. EBITDA *
50% (0-150%)
Individual Total AIP

AIP Payout
Target + = (0-150%
as a of AIP
% of base Target)
salary
Individual Component Personal Multiplier
50% (0-150%)
• Financial level (i.e. pre-determined minimum level of EBITDA) must be met in order for Corporate component
to be funded
Total Rewards | 12
Setting and measuring targets for individual
performance
Level of performance Expected distribution AIP Payout range
Outstanding 5% 130-150%
Above Expectations 15% 110-130%
Solid Performer 70% 85-110%
New to Job 20-75%
10%
Unsatisfactory 0%
Please note that only the individual component of the award is loaded
in the compensation planning module to be allocated at the leader’s discretion
Does this apply to Pilot Group only?
Total Rewards | 13
PPC : Translating Overall Performance
(PPC) to AIP Awards
5% OUTSTANDING
The team member exceeds KPI’s set for all of their Personal Performance Commitments while
demonstrating actions taken to ensure a high return on Husky investment.
15% ABOVE EXPECTATIONS

The team member exceeds KPI’s set for most of their Personal Performance Commitments
while demonstrating actions taken to ensure a good-high return on Husky investment.
SOLID PERFORMER
70% The team member meets the KPI’s set for some - all of their Personal Performance
Commitments while demonstrating actions taken to ensure a good-high return on Husky
investment.
NEW TO JOB
The team member does not meet the KPI’s set for all or some of their Personal Performance
Commitments and/or is not demonstrating actions taken to ensure a good return on Husky
investment as they are new to the job and still developing.
10% No AIP
UNSATISFACTORY
The team member does not meet the KPI’s set for all or some of their Personal Performance
Commitments and/or is not demonstrating actions taken to ensure a good return on Husky
investment.
Total Rewards | 14
Plan Participant Base salary: $100,000
What’s my Illustration AIP target: 10%
Target total cash: $110,000
opportunity? Assumptions:
• Corporate EBITDA level was achieved
Illustrative example #1: • Target for EBITDA was achieved
Target performance • Target for Market Share was achieved
• 100% Personal Multiplier was achieved
Performance Target Actual Target Actual Payout

measures performance results payout % payout % amount
(illustrative) (weighted) (actual payout
% X salary)
Corporate 100% of
100% of plan 5% 5% $5,000
(EBITDA) target
+
Business Unit 100% of
100% of plan 2.5% 2.5% $2,500
(Market Share) target
Individual +
(Personal 100% 100% 2.5% 2.5% $2,500
Multiplier)
Total Payout 10% 10% $10,000
Total Rewards | 15
Illustrative example #2: • Threshold for Corporate EBITDA level was not
achieved
EBITDA level not achieved; • Maximum Market Share was achieved
“outstanding” individual • 150% Personal Multiplier was achieved
performance
% X salary)
Corporate
100% of plan 40% of target 5% 0% $0
(EBITDA)
+
150% of
Business Unit
100% of plan target 2.5% 3.75% $3,750
(Market share)
(maximum)
+
Individual
150%
(Personal 100% 2.5% 3.75% $3,750
(maximum)
Multiplier)
Total Payout 10% 7.5% $7,500
Total Rewards | 16
Illustrative example #3: • Corporate EBITDA level was not achieved
Poor financial performance • Threshold for EBITDA was not achieved
• Threshold for Market Share was not achieved
and outstanding individual • 140% Personal Multiplier was achieved
performance

% X salary)
Corporate <50% of
100% of plan 5% 0% $0
(EBITDA) target
+
Business Unit <50% of
100% of plan 2.5% 0% $0
(Market share) target
Individual
+
(Personal 100% 140% 2.5% 3.5% $3,500
Multiplier)
Total Payout 10% 3.5% $3,500
Total Rewards | 17
Sales Incentive Plan and Commission
SIP:
• Applies to all Sales roles in Beverage Packaging, Medical and Specialty Packaging,
and Sales leaders and Key Account Managers in Hot Runner Controllers
• Calculation based on a formula of Sales targets and the achievement of specific sales
initiatives
• Paid 1x per year at the same time as the AIP payout
Commission:
• Commission applies to Regional Account Managers in HRC
• Calculation based on a formula of achievement of Sales targets
• Paid 2x per year; Mid year payout in August based on results from Jan – June; Final
year payout paid at same time as SIP and AIP
Total Rewards | 18
CEO Excellence
• The CEO Excellence Award is a unique and distinct recognition at Husky.
• Its purpose is to recognize, reward and retain team members who have demonstrated
breakthrough performance, making a valued contribution to Husky’s overall
performance.
• Nominations will be reviewed by a selection committee which will include the VP HR
and CEO.
• Usually, 120 – 200 team members in total (3% - 5% of each BU population).
• A cross section all levels, business units, regions and functions.
Total Rewards | 19
CEO Excellence - Criteria
 All team members with an Outstanding performance rating, regardless of level are to
be included in the nomination process.
 A selection of Above Expectations should be included.
 A small number Solid Performing team members who have demonstrated
performance and potential above and beyond their peers.
 The goal is to reward those that have been recognized less frequently, to
acknowledge their valued contribution with a financial reward that is meaningful
enough for them to distinguish the value of making a strong contribution.
 The CEO excellence award is not an AIP/SIP performance tool. AIP/SIP is intended
to be a mathematical reward based on achievement to the company’s annual plan.
The CEO excellence is intended to be a meaningful reward to recognize outstanding
contribution regardless of level in the organization.
Total Rewards | 20
Data Freeze
 Restriction of myHR transactions during compensation planning
 Changes to certain data while the compensation module is live causes issues with the
functionality of the module
 The following is the list of types of transactions which are “frozen”:
o Most positions changes
o Pay rate changes
o Transfers
 Data Validation before freeze: Ensure job titles and job levels are accurate to ensure
appropriate funding for the individual
 Recruitment during freeze: External hires still a go; Internal movement is held until
after data freeze; Effective dates for internal movement/promotions/transfers should
be post data freeze
 Salary exceptions are not reviewed or processed during the freeze
Total Rewards | 21
Compensation Planning Exceptions
• True exceptions, meaning not very common or usual
• Typical Types:
o Guarantee incentive payment for one year at time of offer
o Negotiated prorated AIP/SIP/Commission payment as part of severance package
o Management of an individual’s incentive as they transfer from an incentive
program to another e.g. AIP to SIP
• HRSS are noting exceptions from offer and termination letters in General Comments
• Going forward, send all exceptions to HRSS for documentation in General Comments
as they occur, if they have not been picked up from the letters.
o Improve the documentation of exceptions for audit purposes
o Improve the effectiveness of the process as information can be consolidated from
a query
• Using this process to capture all Retirees even though they are not exceptions.
Total Rewards | 22
Timelines
Insert
Total Rewards | 23
Total Compensation Philosophy and Principles
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Husky Compensation Philosophy
• Husky’s compensation design principles:
– Pay for performance
– Focus on sustained, year-over-year improved earnings
– Support attraction, retention, motivation and development of talent
– Aligned to shareholders
• To align to these principles, Husky has:

– A market aligned total cash compensation approach
– An Annual Incentive Plan (AIP) to reward company financial
performance first, and individual performance second
– Ensured base salaries are competitive to the market
• Compensation positioning to balance cost objectives and drive a

performance culture
Total Rewards | 25
Total Compensation Philosophy and Principles
Principles of Rewards at Husky
• Align compensation with company and individual performance
• Drive differentiation based on performance, affordability and competitive market practice
• Ensure market competitiveness and cost effectiveness
• Support the attraction, retention, engagement and motivation of employees; in particular
top talent
• Be aligned with our shareholders
Objectives of Rewards at Husky

• Base pay: reward sustained individual contribution and market value of the job
• Annual incentive pay: reward company financial performance first, and individual
performance second
• Benefits: provide a well balanced program on a country by country basis
Total Rewards | 26
Total Compensation Positioning Philosophy
Husky’s Total Compensation positioning relative to the market:
Total Rewards Element Positioning
Base Salary Market median; sustained high performance, critical

skills or top talent drives above market positioning
Annual Incentive Median position with maximum award opportunity

Compensation positioned above market
Total Cash Compensation Meeting or exceeding Business Plan and individual

(Base plus Annual commitments delivers median to above market
Incentive) positioning
Retirement and Benefits Aligned to local market
Total Rewards | 27
Connecting Pay to Performance
• Husky “pays for performance”, which means that after all other
factors are considered (i.e., the economy, the Company’s financial
condition and market competitiveness), Team Members are paid in
line with Husky’s level of achievement and contribution to the
business.
• Pay levels are influenced through performance on the job
Good pay for good performance!

Great pay for great performance!
Strong differentiation to reward excellence!
Total Rewards | 28
Annual Market Review
• Compensation programs are designed to attract and retain talent and provide
compensation that is equitable and competitive, while recognizing individual
contribution
• Important step in the annual review process is gathering and analyzing market
information
• Husky participates in annual third-party surveys that provide compensation data
for jobs similar to those at Husky
• Base pay, salary ranges and incentive levels are benchmarked against external
market
2018 Compensation Timeline 2019
March April May June July Aug Sep Oct Oct Nov Dec Dec Jan Feb
Base pay
increases are
effective
Finalize Company
Year-end performance for
Total Compensation data Recommendations
performance AIP awards
Compensation Compensation market data analyzed globally, on pay programs
discussion
Statements collected globally factoring in (base and
with your Secure approvals
available to economic indicators incentive)
team leader on compensation
team members
recommendations
and Incentive
awards are paid
out
Total Rewards | 29
Job Evaluation
Total Rewards | 30
Job Evaluation Definition
• Job Evaluation is a systematic process to define and assess jobs
consistently across all organizations and regions
• A formal job evaluation process enables accurate and objective

assessment by applying the same criteria to all jobs
• Job Evaluation looks at:

– “The What” – Nature of the work in terms of job duties/
responsibilities
– “The Level” – Based on scope and accountabilities of the job
Total Rewards | 31
Job Evaluation Methodology
• In order to complete a job evaluation, HRBP works with Manager to
complete a job description, which is then reviewed by the Comp team
• Husky uses a system developed by Mercer called IPE (International

Position Evaluation) to evaluate internal jobs
– Provides a global view to evaluating jobs
• This system looks at 5 factors in the evaluation process:

– Impact
– Communication
– Innovation
– Knowledge
– Risk
Total Rewards | 32
Job Evaluation Results
• The results from an IPE evaluation provide:
– Reliable basis for determining pay for positions
– A tool to compare the relative importance of jobs in the
organization
– Vehicle for external comparison of positions
– Framework for promotion and succession planning
– Objective references for evaluating people’s competencies
relative to the requirements of the position
Total Rewards | 33
Job Evaluation Market Comparison
• The IPE position classes resulting from the job evaluation process
provide a framework for analyzing Husky internal compensation levels
against market
• IPE is built in a way that it is possible to compare positions in large

companies with positions in small companies
• Position classes have been translated to internal Husky job levels,

which are the foundation our salary structure
Total Rewards | 34
Job Families
Total Rewards | 35
Job Families
• The external talent market assigns different compensation levels to
different types of work
• These may vary over time as economic conditions and supply and
demand change
• Jobs are grouped into Job Families that represent broad categories
encompassing work of similar nature
• The families are designed to allow for lateral and upper movement
(i.e., career progression)
Total Rewards | 36
Job Families (continued)
• Husky’s Job Families include:
Job Family Job Family Code
Corporate Services P
Customer Support C
Engineering E
Finance F
Human Resources H
Information Technology I
Legal L
Marketing K
Operations O
Quality Q
Sales S
Sales Support T
Senior Management G
Supply Chain/Logistics M
Support Services A
Transformation X
Total Rewards | 37
Base Pay
Total Rewards | 38
Base Pay
• Base pay is the annual rate of pay
• Varies depending on job and responsibilities within Husky
• Base pay is the foundation for all variable pay programs (i.e.,
overtime, bonus, pay premiums, etc.)
• Pay increases may be influenced by:
– Individual performance in comparison to job standards
– Performance in relation to achieving objectives
– Market value of the position
• In some countries, base pay may not always be distributed equally
over a 12 month period
– The allocation of pay is based on local regulations and market practices
and may vary in the various countries where we operate
Total Rewards | 39
Salary Ranges
• Salary structures are reviewed on an annual basis using current market data
• Salary ranges define the minimum and maximum base salary at each job level
• Within each salary range, the midpoint represents the market pay rate for similar jobs
of similar value within that grade
Minimum Midpoint Maximum

Entry level Fully qualified and Consistently
Learning curve Transition contributing Transition exceeds
requirements
over time
Movement in salary range is a result of performance over time + Husky’s ability to pay
Total Rewards | 40
Salary Range Progression
Movement in salary range is a result of job performance over time
and Husky’s ability to pay
Range
Maximum
Outstanding
Pay
Above Expectations
Range
Midpoint
Solid Performer
Needs Development
Range Minimum
Time
Total Rewards | 41
What is a Compa-Ratio?
• Allows us to understand how an individuals pay is positioned within

the salary range for their job
• If the team member’s compa-ratio is 100%, he/she is being paid what
a fully qualified and contributing performer would be against internal
and external peer comparators
• A properly utilized compensation structure range for compa-ratios is
80-120%, which can be divided into three zones:
– 80-93% - new, inexperienced, or unsatisfactorily-performing team
members or those gaining experience but not yet fully competent
in the job
– 94-107% - fully competent performers performing the job as
defined with several years of sustained contribution to reach the
midpoint or those consistently performing the job at a lever higher
than what the job definition requires
– 108-120% - those universally recognized as outstanding
performers, both inside and outside the organization
Total Rewards | 42
What is a Compa-Ratio? *Use this slide for
developed countries
• It is the relationship between base salary and the midpoint of a salary range
• Allows us to understand how an individuals pay is positioned within the salary
range for their job
• If the team member’s compa-ratio is 100%, he/she is being paid what a fully
qualified and contributing performer would be against internal and external
peer comparators
• Compa-ratio’s range from 75-125% and can be divided into three zones:
– 75-91% (lower) - new, inexperienced, or needs development team
members or those gaining experience but not yet fully competent in the
job
– 92-109% (middle) - fully competent performers performing the job as
defined with several years of sustained contribution to reach the midpoint
or those consistently performing the job at a lever higher than what the job
definition requires
– 110-125% (upper) - those universally recognized as outstanding
Total Rewards | 43
Compa-Ratio: Example *Use this slide for
developed countries
• Job Level: 4
• Base Salary: 45,000 CAD
• Midpoint of Level 4: 54,000 CAD
• Performance Rating: Solid Performer
• Compa-ratio = (45,000 ÷ 54,000) X 100
= 83%
• Team Member is working towards becoming fully competent and
contributing
• Team Member could work towards achieving a compa-ratio of 92%
to 109%, by consistently performing at a Solid Performer level
Total Rewards | 44
What is a Compa-Ratio? *Use this slide for
emerging countries
• It is the relationship between base salary and the midpoint of a salary range
• Allows us to understand how an individuals pay is positioned within the salary
range for their job
• If the team member’s compa-ratio is 100%, he/she is being paid what a fully
qualified and contributing performer would be against internal and external
peer comparators
• Compa-ratio’s range from 65-135% and can be divided into three zones:
– 65-90% (lower) - new, inexperienced, or needs development team
members or those gaining experience but not yet fully competent in the
job
– 91-112% (middle) - fully competent performers performing the job as
defined with several years of sustained contribution to reach the midpoint
or those consistently performing the job at a lever higher than what the job
definition requires
– 113-135% (upper) - those universally recognized as outstanding
Total Rewards | 45
Compa-Ratio: Example *Use this slide for
emerging countries
• Job Level: 4
• Base Salary: 66,000 CNY
• Midpoint of Level 4: 75,510 CNY
• Performance Rating: Solid Performer
• Compa-ratio = (66,000 ÷ 75,510) X 100
= 87%
• Team Member is working towards becoming fully competent and
contributing
• Team Member could work towards achieving a compa-ratio of 91%
to 112%, by consistently performing at a Solid Performer level
Total Rewards | 46
Application of Compa-Ratio **Optional Slide**
• As a guideline, this is how a team member’s base salary could be
positioned within the salary range when performance rating and job
experience are taken into consideration.
Time In Position and Target Compa-Ratio
Performance
Category < 1 yr 1 to < 2 yrs 2 to < 4 yrs 4 yrs & above
Outstanding Middle Middle Upper Upper
Above Expectations Middle Middle Middle Upper
Solid Performer Lower Lower Middle Middle
Unsatisfactory &
No Increase / Current Compa-Ratio Positioning
Needs Development
Years of Experience
< 1 yr 1 to < 2 yrs 2 to < 4 yrs 4 yrs & above
New Hire Lower Lower Middle Middle
Total Rewards | 47
Green and Red Circle Rates
• Green Circle Rate – any Team Member’s salary which falls below the
minimum of the salary range due to:
– Revisions to the salary range
– Recent promotion without adequate pay increase
• Red Circle Rate – “flagged” salary that is above the maximum of the
salary range, which may be due to one or more of the following:
– Recent demotion or movement to a lesser paying job
– Team Members who have consistently performed above
expectations over time
– Organizational restructuring
– Expected that they will not receive a merit increase
Total Rewards | 48
Performance Pay
Total Rewards | 49
Annual Incentive Plan (AIP)
• The Annual Incentive Plan provides team members the opportunity to earn
compensation based on the achievement of company and individual objectives
• AIP awards are based on company-wide financial and individual performance
to maximum award
opportunity =
allowance etc.
1st 2nd
Strong Company results and individual performance can make a real

difference to your award
1
Maximums apply
Total Rewards | 50
Company-wide Financial Performance
Confirm these criteria are current
• An annual financial target is set by management and approved by our Board of Directors
(i.e., consolidated earnings, measured by EBITDA)
• Minimum threshold – Husky must meet 90% of financial performance target or no
incentive awards are paid
• Maximum payout – Husky must meet or exceed 110% of financial performance target
• At year-end a factor is determined, based on company performance against target, and
applied to all team member AIP award calculations
to maximum award
opportunity =
allowance etc.
1st 2nd

1
Maximums apply
Total Rewards | 51
Award Ranges
• AIP award ranges are:

– A percent of base salary
– Based on grade
– Based on role
to maximum award
opportunity =
allowance etc.
1st 2nd

Maximums apply
1
Total Rewards | 52
Broadbased AIP Positions
• Includes more support, technical professional & management

positions
• Includes both hourly and salary positions
• Examples:
– Designer
– Administrative Assistants
– AP Administrator
– IT Support Technician
– Service Technician
– Technical Support Specialist
– Security Coordinator
Total Rewards | 53
Broadbased AIP Award Ranges
Award Payout Range
Minimum Budgeted Threshold Maximum
Payout Target % Payout Payout
Level 10 0% 25.0% 12.5% 37.5%
Level 9 0% 20.0% 10.0% 30.0%
Level 8 0% 15.0% 7.5% 22.5%
Level 7 0% 12.0% 6.0% 18.0%
Level 6 0% 10.0% 5.0% 15.0%
Level 3,4,5 0% 7.0% 3.5% 10.5%
Level 1,2 0% 5.0% 2.5% 7.5%
• AIP ranges are broken down by target percentages based on job level
and segmented by individual performance
– Stronger performance translates to greater incentive opportunity
• The range provides flexibility to recognize and reward excellence
Total Rewards | 54
Manufacturing AIP Positions
• Includes all manufacturing positions
• Assembly Technician • Manufacturing Technician
• BOM Coordinator • Manufacturing Support
• CNC Programmer Technician
• • Material Handler
Documentation
Coordinator • Process Planner
• ECO Coordinator • Production Planner
• Engineering Technician • Production Scheduler
• Expediter • Quality Technician
• Facilities Maintenance • Refurbishing Technician
• Facilities Planner • Spare Parts Coordinator
• Lab Technician • Systems Technician
• Lab Technologist • Test Technician
• Logistics Coordinator • Welder/Fitter
• Maintenance Technician
Total Rewards | 55
Manufacturing AIP Award Ranges
Award Payout Range

Minimum Budgeted Threshold Maximum
Payout Target % Payout Payout
Level 6 0% 5.0% 2.5% 7.5%
Level 5 0% 4.0% 2.0% 6.0%
Level 4 0% 4.0% 2.0% 6.0%
Level 3 0% 4.0% 2.0% 6.0%
Level 2 0% 3.0% 1.5% 4.5%
Level 1 0% 3.0% 1.5% 4.5%
Total Rewards | 56
Individual Performance
• Team members set annual individual objectives tied to our business plan and
KPIs
• At year end, individual performance ratings are determined
• Managers will make decisions on final AIP award amount based on:
– Individual contribution relative to peers
– Total cash compensation opportunity
• If a minimum performance threshold of Solid Performer is not met, no award will
be paid
to maximum award
opportunity =
allowance etc.
1st 2nd

Maximums apply
1
Total Rewards | 57
AIP Planning Matrix – Example for Illustration Purposes
AIP PLANNING MATRIX

Solid Above
Group Unsatisfactory ND SP/Learner Performe Expectation Outstanding
r s
Broadbased
Level 10 0% 0% 12-18% 18-28% 25-31% 29-37%
Level 9 0% 0% 10-15% 15-23% 20-25% 23-30%
Level 8 0% 0% 7.5-11% 11-16% 15-18% 17-22%
Level 7 0% 0% 6-9% 9-12% 12-14% 13-18%
Level 6 0% 0% 5-7.5% 8-11% 10-13% 12-15%
Level 3,4,5 0% 0% 3.5-5% 5-8% 7-9% 8-10%
Level 1,2 0% 0% 2.5-3.5% 3-6% 3.5-6.5% 4-7%
Manufacturing
Level 6 0% 0% 2.5-3.5% 3-6% 3.5-6.5% 4-7%
Level 5 0% 0% 2-3% 2-4% 2.5-4.5% 3-6%
Level 1,2,3,4 0% 0% 1.5-2.5% 1-3% 1.5-3.5% 2-4%
Total Rewards | 58
Understanding the Market
Total Rewards | 59
Job Market Pricing
• The job level is the baseline to compare against market

• It involves analyzing external survey data to determine the market going
rate of pay
• Accuracy in gathering and analyzing of market information is driven by:
– A clear understanding of the job content (job description)
– Matching Husky jobs to the appropriate survey jobs and survey job levels
• We participate in annual 3rd party surveys that provide compensation
data for jobs similar to those at Husky
Total Rewards | 60
Understanding the Market
• Why do we look at market data?
– Reflective of market competitiveness and communicates market

value of work
– Understand trends/changes in the competitive landscape
(i.e.,hot skills)
– Reliable/consistent source of information to compare our internal
compensation structure against
– Data is used to help set:
• base salary increase budgets
• salary ranges, and
• incentive pay target levels
Total Rewards | 61
Market Positioning Strategies
Market Aware Market Focused Market Driven
• Market data used to • Market data supports salary • Market data is an integral
update salary structures structures and situational part of salary decisions
pay actions
• Reactive use of market
• Proactive use of market
data
• Evolving use of market data data
• Internal focus
•
• Internal/external focus External focus
• Constant benchmarks and

•
• Periodic benchmark and Regular benchmark and
survey portfolio
survey review survey review
• No training or
•
communication on market
• Limited training and Broad training and
communication communication
data
• 15-25 surveys typical • 25+ surveys typical

• 5-10 surveys typical
*Source: Retaining Talent with Market Driven Compensation – Hewitt Webinar
Total Rewards | 62
Types of Market Data Available
Precise Standardized
Custom Survey/ Market Subscription with Custom Portfolio of Standard

Pricing Comparator Group Surveys
• Tailored to very specific • Tailored to specific • Broad coverage of

comparator group comparator group organization positions
• Customized benchmarks • Participation selection • Consistent comparators

to our organization limited to survey over time
companies
• Can be costly, depending • Typically less costly,
on positions required • Less expensive than especially if purchased
custom survey depending on a global basis
• Getting other comparator on required positions
organizations to • Reflects annual market
participate may be • Can be highly customized movement since
challenging to meet our reporting conducted annually
needs
*Source: Retaining Talent with Market Driven Compensation – Hewitt Webinar
Total Rewards | 63
Jobs and Leveling Infrastructure
Job Matching
• The goal is to match Husky jobs to equivalent survey job codes and
levels. However, it is important to understand that survey jobs are
described generically so that as many organizations as possible can
match to them
• Husky jobs are often described very specifically in “Husky language”.
Team Leaders expect, but will not see, exact Husky job descriptions
in the surveys we participate in
• Generally, an 80% match in tasks, skills, education, experience, and
leadership ability is considered to be sufficient
• Job codes in any survey that covers multiple countries or is global,
should be matched consistently to the same Husky jobs and levels
• If our jobs are matched incorrectly, the market data to which we are
making comparisons will be wrong. As such, we work with HR
Business Partners to ensure appropriate matching
Total Rewards | 64
Typical Salary Survey Cycle
Quarter 1 & 2
• Gather information from compensation primes, HR primes and Team
Leaders to match Husky jobs with survey jobs
• Salary Survey Evaluation – benchmark positions determined and
survey selections made
• Survey Participation – job matching information submitted to survey
organizations
Quarter 3 & 4
• Results from survey participation collected
• Raw data analyzed and compared to previous year
• Team Members base salary and total compensation compared to
new data and analyzed
Total Rewards | 65
Background on Salary Surveys
Purpose of Survey Participation:
• To develop the market value of Husky jobs
• To implement efficient/effective compensation programs
Considerations for Survey Participation:

• Cost effectiveness – Husky needs to participate in the right number of
surveys for the right price
• Geographic coverage – provide views of region, country, and city level
market data
• Population coverage – maximize coverage of jobs and team members
population
Survey Input Requirements:

• Align Husky’s internal compensation structure to what is used by the
survey provider
• Report detailed Husky job and team member compensation data
• Complete regionally-focused policies and practices questionnaires
Total Rewards | 66
Choosing an External Survey
Reliable surveys include the following:
• Survey effective date
• Survey job descriptions
• List of participating organizations
• Published annually or bi-annually
• Conducted by a third party
• Reports meaningful data
– Number of organizations and incumbents for each job
– Pay components (base, AIP and total cash)
– Scoping measures (size, industry, location, etc.)
– Data elements (25th, 50th, 75th percentile, mean, median)
Total Rewards | 67
Salary Survey Application
Market Data Anchor Points
• Husky’s general compensation philosophy for total cash compensation
(base pay + AIP) is to be at the 50th percentile of what similar sized
(revenue), manufacturing companies are paying for similar roles
• In certain scenarios, Husky may benchmark above the 50th percentile

to attract & retain top talent in critical roles
Confirm these criteria are current
Total Rewards | 68
List of Husky Survey Providers
• Mercer
• Willis Towers Watson
• Ontario Society of Professional Engineers (OSPE)
Total Rewards | 69
List of Participating Companies
• Mold-Masters Limited • GlaxoSmithKline
• Resin Systems Inc. • ExxonMobil Canada
• Magna International Inc. • Research In Motion Limited
• Lennox International • Bell Canada
• Bosch Rexroth Canada • Ericsson Canada
• Bombardier Inc. • Abbott Laboratories Limited
• Nemak • Hydro One
• Vale Inco • TransCanada Corporation
• Shell Canada Limited • CAE Inc.
• PepsiCo • General Electric Canada
• Pratt & Whitney Canada • Panasonic Canada Inc.
• General Motors of Canada • Toshiba of Canada Limited
Limited • Opta Minerals Inc.
• I-XL Industries Ltd. • Masco Corporation
• Hunter Douglas Canada LP • Deere & Company
Total Rewards | 70
Percentiles
Total Rewards | 71
Definitions of Percentiles
• Compensation is typically reported in percentiles:
– 25th percentile represents the value which is greater than 25%
of all values
– 50th percentile (mean or second quartile) represents 50% of all
values
– 75th percentile represents the value which is greater than 75%
of all values
– Median is the central value in a set of data that has been
arranged in order of size
Total Rewards | 72
Job Codes
Total Rewards | 73
Job Codes Matched To Market Data
• Each job at Husky requires an equivalent match to an external job of
the same level
• If our jobs are matched incorrectly, the market data to which we are
making comparisons will be wrong. As such, internal matching
sessions with HR Business Partners are crucial to gather feedback to
assign appropriate job matches
• New job codes should only be created where we can match to the
external market
• If new codes are required, contact Total Rewards
Total Rewards | 74
Job Codes
• There are three elements to the structure of our job codes:
– Job Family
– Job Number (which best describes the type of work the Team
Member is performing)
– Job Level (which best describes the scope and complexity of the
individual’s job)
Job Number
Job Family Job Grade
Total Rewards | 75
Job Codes - Example
Job Number
Job Family Job Grade
Designer, Level 5 E 1 7 6 0 5
Designer, Level 6 E 1 7 6 0 6
Service Tech, Level 4 C 1 6 0 0 4
Service Tech, Level 5 C 1 6 0 0 5
Total Rewards | 76
Other Compensation Practices
Total Rewards | 77
Hours/Overtime/Travel
Confirm if this is current
Hours of Work
– Hours Entry - Weekly hours report – verify & sign-off
– Compliance to ESA guidelines – See handout
– Agreements - 60 hr. work permits in place/72 hr. business specific
Overtime
– Overtime will only be paid should hours worked exceed 40hrs/wk.
– Statutory Holiday Forms required with team member consent
Travel Pay
– Compensable and non-compensable travel
– Driving - scheduled and not scheduled day of work
– Flying - scheduled and not scheduled day of work
Total Rewards | 78
Salaried/Exception vs. Hourly
• Salaried = 37.5 hrs/wk – no OT

• Salaried w/exception = 37.5 hrs/wk - OT eligible
after 40hrs.
• Hourly = 40 hrs/wk - OT eligible
Total Rewards | 79
Banking Time Off / Lieu Time
• Team members may elect to take time in lieu

instead of overtime payment
• Team members must have worked 40 hours in
that week
• Pre-Approval by Team Leader based on
business and staffing needs
• Lieu time is granted at a rate of time and a half
Total Rewards | 80
Shift Premiums
• Applied to all afternoon shifts where the

majority of the shift falls after 3pm
• Premiums only applied for hours worked, not
to hours paid but not worked (i.e. sickness)
• Shift Premium is 15% and is paid on the appropriate hourly rate
Total Rewards | 81
Training Request & Training Pay
• Team Member/Team Leader can identify training throughout the

year and complete training request form
• Mandatory training is counted towards determining if overtime is
paid
• Non-mandatory training is not counted towards determining if
overtime is paid
Total Rewards | 82
Training Pay - Other
• Husky-paid courses scheduled on-site, outside of core business

hours (e.g. Presentation Skills, English as a Second Language)
– Not compensated
• First Aid - Compensable only when requested by Team Leader

– Compensation is at base rate of pay; not counted towards determining if
overtime is due
Total Rewards | 83
On-Call/Pager Pay
• Calculated in real time (15 min. payout

minimum)
• 2x applies to Statutory holidays
• 12.5% premium
• 25% premium on Statutory holidays
Total Rewards | 84

2018 Training Comp Cycle

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2018 Compensation Training

• Compensation Planning Exceptions

• Country merit matrices are driven by:

• The focus on merit spending should be on the highest contributing

• Merit applies to countries without COLA

Lower (Compa Ratio <0.90) Increase: 0% Increase: 0% Increase 2 - 3% Increase: 3 - 4% Increase: 3 - 4%

Example for Illustration only

Compa-Ratio = (Base Salary ÷ Midpoint of Salary Range) x 100

• Salary increases may be mandated by the government or collective

• Countries that currently have mandated increases are:

• Timing of these increases vary

• AIP awards are based on company-wide financial and individual performance

Individual Total AIP

Does this apply to Pilot Group only?

15% ABOVE EXPECTATIONS

Performance Target Actual Target Actual Payout

Total Payout 10% 10% $10,000

Total Payout 10% 7.5% $7,500

Performance Target Actual Target Actual Payout

Total Payout 10% 3.5% $3,500

• To align to these principles, Husky has:

• Compensation positioning to balance cost objectives and drive a

Objectives of Rewards at Husky

Base Salary Market median; sustained high performance, critical

Annual Incentive Median position with maximum award opportunity

Total Cash Compensation Meeting or exceeding Business Plan and individual

Retirement and Benefits Aligned to local market

• Pay levels are influenced through performance on the job

Good pay for good performance!

• A formal job evaluation process enables accurate and objective

• Job Evaluation looks at:

• Husky uses a system developed by Mercer called IPE (International

• This system looks at 5 factors in the evaluation process:

• IPE is built in a way that it is possible to compare positions in large

• Position classes have been translated to internal Husky job levels,

Minimum Midpoint Maximum

• Allows us to understand how an individuals pay is positioned within

Outstanding Middle Middle Upper Upper

Above Expectations Middle Middle Middle Upper

Solid Performer Lower Lower Middle Middle

< 1 yr 1 to < 2 yrs 2 to < 4 yrs 4 yrs & above

New Hire Lower Lower Middle Middle

Strong Company results and individual performance can make a real

Strong Company results and individual performance can make a real

• AIP award ranges are:

Strong Company results and individual performance can make a real

• Includes more support, technical professional & management

Award Payout Range

Strong Company results and individual performance can make a real

AIP PLANNING MATRIX

• The job level is the baseline to compare against market

– Reflective of market competitiveness and communicates market

• Constant benchmarks and

• 15-25 surveys typical • 25+ surveys typical

Custom Survey/ Market Subscription with Custom Portfolio of Standard

• Tailored to very specific • Tailored to specific • Broad coverage of

• Customized benchmarks • Participation selection • Consistent comparators

Considerations for Survey Participation:

Survey Input Requirements:

• In certain scenarios, Husky may benchmark above the 50th percentile

Confirm these criteria are current

• If new codes are required, contact Total Rewards

Job Family Job Grade

Service Tech, Level 4 C 1 6 0 0 4