Total Rewards
at Eaton
You give us your best. We’ll reward you well.
This brochure provides
an introduction to
Eaton’s Total Rewards
Philosophy and
explains the following
aspects:

Your Total
Rewards: Pay,
Benefits and
More
 Competitive
Compensation
 Salary Bands
 Merit Increases &
Promotions
 Pay for
Performance &
Resources for You
Competitive pay and benefits. Work that challenges and
inspires you. Opportunities to grow in your career. At
Eaton, we understand how important these are to you.
This brochure explains our Total Rewards philosophy
for technical, professional and salaried employees, how
we reward our people, and how performance can lead
to even bigger rewards and opportunities for you.
Eaton’s Total Rewards Values and Philosophy
“We provide competitive, total rewards that include pay
and benefits consistent with the varied practices in
different regions of the world. An array of programs and
tools are utilized to recognize individual and group
achievements and to enable us to reward performance
consistent with our contributions.”
This brochure is not a promise of employment or compensation from Eaton; Eaton reserves the right to change
its compensation programs and benefit plans and programs at any time for any reason.
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Your Total Rewards at Eaton:
Pay, Benefits, and More
Powering you to live
well
Eaton supports your
well-being with the
strategy of global
wellness designed to
create an overall
culture of health and
well-being.
Eaton wants you to be
healthy, not just for
Eaton, but for yourself
and your family.
The focus on wellness
not only keeps our
employees at their
peak, it helps make
Eaton an employer of
choice, reduces
medical costs for both
you and Eaton, and will
help Eaton to grow.
What do we mean by total rewards? Basically, it’s all the ways you can be
rewarded for your work at Eaton. The elements of total rewards that apply
to you are based on business needs and the competitive market where
you work.
BASE PAY
Base pay is the foundation of your compensation at Eaton. It’s the amount
you see in your paycheck or pay advice statement expressed as an hourly,
monthly, or annual amount. Your base pay is determined by your job
knowledge, experience and performance, as well as what companies
similar to Eaton are paying for jobs like yours.
VARIABLE PAY
Variable pay includes bonuses, sales incentives, and variable pay plans
offered at the plant, group or division level. Not all jobs at Eaton have
variable pay. Your manager will be able to tell you whether you are eligible
for a variable pay plan. Either way, your total compensation at Eaton is
competitive.
CASH ALLOWANCES
In certain countries, compensation might include cash allowances for
things such as transportation or housing expenses. Regional market
practices and/or government policies determine whether cash allowances
are part of your total compensation at Eaton.
EATON’S CONTRIBUTION TO YOUR BENEFITS
Your total rewards typically include the cost that Eaton pays toward certain
social, health and unemployment benefits that protect you and your family.
The benefits and the amount that Eaton contributes to them vary by
market. To learn more about these benefits in your region, talk with your
local Human Resources staff.
This brochure is not a promise of employment or compensation from Eaton; Eaton reserves the right to change
its compensation programs, and benefit plans and programs at any time for any reason.
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Competitive Compensation:
How We Attract, Retain, and Motivate Our
People
Key terms
Market data: Survey
information used to
compare Eaton’s pay
levels with those
offered at similar
companies, for similar
jobs drawing from the
same pool of available
talent.
Salary range: The
range of pay available
for a job, based on
market data.
Competitive pay for a
job falls anywhere
within the salary range.
We know you have choices of where you work — both when you first join a
company and throughout your career. To attract talented employees like
you, and motivate you to stay and perform at a high level, we must
continue to offer you competitive compensation.
To ensure that our compensation is competitive, we focus on three areas:
 The external job market,
 Job alignment within Eaton, and the
 Sustained performance of our employees.
The External Job Market
Each year we participate in surveys of the external job market to compare
Eaton’s compensation to that of employers who compete with us for talent.
We compare what our competitors pay employees who are doing the same
type of work as our own employees in the markets where we do business.
We make these comparisons both at the national and local level.
Nationally, we look at large, industrial companies that are similar in size to
Eaton in terms of revenue and employees. These national job market
studies are managed by third party vendors who help Eaton determine the
competitiveness of compensation, primarily for professional and executive
talent.
For clerical, administrative, or manufacturing workers, we generally
compete for talent with local companies, so we study their compensation
practices as well.
Eaton compensation practices are typically standard within a country.
Variations do occur, however, in keeping with local job market practices, to
comply with local regulations or for other business reasons.
What we learn from our studies of the external job market provides the
market data we need to determine Eaton’s salary ranges. You will read
more about salary ranges on page 5.
This brochure is not a promise of employment or compensation from Eaton; Eaton reserves the right to change
its compensation programs and benefit plans and programs at any time for any reason.
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Competitive Compensation:
How We Attract, Retain, and Motivate Our
People (continued)
Key terms
Salary band
structure: A format for
placing each job at
Eaton into one of 14
bands based on the
results of the Eaton
Job Evaluation System.
Internal Job Alignment
Standard job titles:
Terms that provide a
consistent way of
identifying the roles
and responsibilities of
jobs across Eaton.
 Know-how—the knowledge required to do the job (or job “input”)
Pay for performance:
Eaton’s philosophy that
total compensation will
increase with sustained
high performance.
Eaton is a global company with hundreds of types of professional jobs. The
Eaton Job Evaluation System helps us group these jobs into categories
and assess the value of the job to the company. Using this tool, we
measure the value and level of each salaried position through three
factors:
 Problem-solving—thinking, processing and analyzing (or job
“throughput”)
 Accountability—the results expected (or job “output”)
We use these measurements to group salaried jobs into salary bands,
which reflect the jobs’ relative value within the company. We also use them
to assign standardized job titles, which gives us a consistent way to
match our jobs to jobs in the external market and to monitor our pay
practices across the company.
Sustained Performance of Our People
The third area of emphasis in compensation at Eaton is motivating and
measuring individual performance. We don’t view performance as a onetime event. If our company is to achieve superior results, year after year,
we must have sustained superior performance from our people.
We achieve this through pay for performance. Eaton has a strong
commitment to pay for performance at all levels. This commitment is
embodied in our performance management and merit increase programs
and our variable pay plans.
This brochure is not a promise of employment or compensation from Eaton; Eaton reserves the right to change
its compensation programs and benefit plans and programs at any time for any reason.
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Salary Bands and Base Pay:
The Foundation of Your Compensation
Salary bands focus
on the jobs
themselves and not
the employee doing
the job and his or her
personal
performance.
Your job has been carefully assigned to one of our 14 salary bands (SB).
Salary bands provide a way of aligning the many jobs at Eaton according
to their level within the company. The structure also helps us organize our
standardized job titles in a way that reflects their role within the company.
Your job’s salary band is the starting point of determining your base pay.
All jobs within a given salary band will have similar levels of know-how,
problem-solving, accountability and working conditions — and therefore,
similar levels of base pay.
Not all jobs within a salary band have exactly the same base pay. Your
salary band has a salary range — with a minimum, a midpoint and a
maximum — that is determined in large part by the prevailing pay for
similar jobs in the external job market. Thus, salary bands not only align
the value of jobs within Eaton; they also reflect of the competitive pay for
your job outside of Eaton, in markets where we compete for talent.
Where you fall within a salary range depends on several factors: where
you started in the range; your skills and experience; the opportunity for
merit increases; and most important, your sustained performance.
Ultimately, your position in a salary range depends on how well you apply
your skills and continually add value to the organization. This is the
essence of pay for performance in a high-performance work culture.
This brochure is not a promise of employment or compensation from Eaton;Eaton reserves the right to change
its compensation programs and benefit plans and programs at any time for any reason.
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What is APEX?
APEX (Achieving
Performance
Excellence) is a tool
Eaton uses to bring a
single, consistent
approach to managing
performance.
Your APEX rating is
one component used to
determine the amount
of your merit increase.
Each year you will
have an opportunity to
meet with your
manager to discuss
your job performance
and your APEX rating.
Merit Increases and Promotions:
How Your Base Pay Can Increase
When you succeed at Eaton through sustained high performance, you
have opportunities to increase your base pay:
MERIT INCREASES
Merit increases adjust your base pay upward in line with your job
performance. Each year, you will receive an APEX rating (see sidebar)
from your manager that reflects your performance for the past year. Your
APEX rating determines whether you are eligible for a merit increase. If
you are eligible, your merit increase will be calculated based on:
 Your overall performance or contribution
 How your pay relates to the salary range for your job, and
 Local job market practices
Merit increases are not guaranteed. Your manager will use merit
guidelines to calculate your merit increase according to how well you
perform and where your salary falls along the salary range for your job. In
general, employees with higher APEX ratings but salaries low in their
salary range will be eligible for larger merit increases than employees with
lower APEX ratings and salaries higher in the salary range.
The size of your merit increase also will be influenced by the merit
increase budget. Eaton sets the budget each year based on a competitive
market analysis by country. Eligibility for a merit increase, and merit
budgets, can vary from country to country because of local regulations,
local economies or local market conditions.
This brochure is not a promise of employment or compensation from Eaton; Eaton reserves the right to change
its compensation programs and benefit plans and programs at any time for any reason.
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Key terms
Merit budget: The
pool of money
available for merit
increases. The merit
budget is typically
expressed as a
percentage and is
developed each year
based on external
market practices, and
can vary by country.
Merit guidelines: Help
your manager decide
your annual merit
increases based on our
APEX rating and other
factors, such as where
your salary falls within
your salary range.
Merit Increases and Promotions:
How Your Base Pay Can Increase (continued)
Promotion
Promotions recognize an employee’s advancement due to an increasing
level of responsibility and performance. A promotion makes you eligible for
a salary increase in recognition of your increasing level of performance,
and may make you eligible for a move to a higher salary band. The
increase amount of which depends on:
 Your position in your old range versus your new salary range
 The length of time since your last merit increase, and
 The pay of other employees in a similar job
On occasion, strong performers may receive an in-band promotion,
which results in a move to a job within the same salary band rather than
the next higher band. In-band promotions usually come with an increase in
In-band promotion: A salary.
promotion that does
not result in an
increase in salary band
level.
A lateral move is a move to a new position with similar levels of
responsibility within the same salary band. Lateral moves often occur in
support of Eaton’s development philosophy. They are encouraged to help
you develop additional skills and expand the breadth of your experience.
Managers may recommend a salary adjustment, depending on the
circumstances.
Lateral moves are a great way to gain new skills and experiences, and the
value they bring to Eaton can determine whether someone is a candidate
for promotion.
This brochure is not a promise of employment or compensation from Eaton; Eaton reserves the right to change
its compensation programs and benefit plans and programs at any time for any reason.
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Eaton’s Pay for Performance Philosophy and
Your Resources
Every salaried employee at Eaton—no matter where in the world he or she
is based—takes part in APEX, our performance management process that
takes its name from its focus: Achieving Performance Excellence.
We grow when you grow, so we also reward your performance through
chances to develop professionally. To help you take the lead in expanding
your pay opportunities, Eaton is committed to providing you with career
development tools and resources that will help you plan your growth. Take
advantage of the career development tools and resources we provide,
including:
Your Manager
Your manager is one of the best resources to help you understand your
pay and career development opportunities at Eaton. Together, you and
your manager create a performance plan with short- and long-term goals
for your current job and your career. Your manager can help you
understand why you are paid what you’re paid and what opportunities are
available to you at Eaton.
JOE
Eaton’s employee portal gives you access to a wide range of career
development tools and information, including:
• Eatonjobs: Search and apply online for future career opportunities with
Eaton. Visit www.eaton.com/careers to explore career areas and learn
whether you might be interested in another job function such as
accounting, marketing, or human resources.
• Eaton University: Use this learning portal to strengthen your core
competencies, develop functional skills, and advance your career. You
can access development and training courses or learn more about
working with professional organizations.
• APEX Online Performance Management tool: Work with your manager to
develop your performance plan, review your progress, and assess your
performance.
Recognition Programs
Eaton’s E-STAR program helps accelerate, support and sustain a highperformance culture. You can use E-STAR to recognize your co-workers
who exceed expectations as they contribute to Eaton’s success.
This brochure is not a promise of employment or compensation from Eaton; Eaton reserves the right to change
its compensation programs and benefit plans or programs at any time for any reason.
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