Prepared by: Tim Henn, Atlanta
May 17, 2013

Introduction
Overview of Spencer Stuart International
Why is Spencer Stuart Any Different than Other Global Competitors?
Sales Officer Practice
What’s Hot? - Key Trends and Skills Set Needs in Sales Leadership
Compensation Observation and Trends
Tips on Executive Recruiting
2

Atlanta office
Tim Henn is a member of Spencer Stuart’s Technology, Communications & Media Practice and leads the firm’s sales officer business in North America. He also is a member of the Private Equity and Information Officer practices, and a core contributor to the firm’s Cloud
Computing initiatives. Bringing more than a decade of executive search experience to his work, Tim conducts assignments for clients across North America, Europe and Asia. He concentrates on chief executive officer, general manager and other senior-level positions for technology and communications clients. Tim’s technology clients include communications service providers, wireless and wireline networking equipment and software companies, mobile device makers, and providers of cloud computing services, datacenter services, and optical systems and components — from early-stage venture-funded startups to the largest multinational corporations.
In-depth technology expertise
> Before joining Spencer Stuart, Tim was with a global retained executive search firm for more than seven years as a senior member of its technology practice.
> He also has 14 years of technology industry experience in strategy development, product line marketing and sales. Tim worked for
Motorola for six years, where he led strategy efforts for the company’s communications equipment businesses. In addition, Tim contributed to Motorola’s most significant acquisition, General Instrument, and to the strategic assessment of Motorola’s broadband wireline, wireless and satellite investments.
>
Tim spent seven years in Silicon Valley working in senior marketing and product management roles for early-stage companies in data networking, communications software and semiconductors.
Tim is a graduate of Cornell University with a degree in electrical engineering and also holds an M.B.A. from Harvard Business School.
Contact Information
Atlanta office thenn@spencerstuart.com
dd +1 404.504.4418
3

Who we are Where we are
> Founded in 1956 and still privately held, Spencer Stuart helped establish the senior-level executive recruiting industry
> More than 300 consultants with a unique blend of professional search experience and specialized industry and functional expertise
> Experienced and highly knowledgeable associates, researchers and executive assistants round out client service teams and contribute to our knowledge of relevant candidate pools
> In 54 offices in 29 countries around the world
> With select clients, from major multinationals to emerging companies and nonprofit organizations, helping to address their senior executive leadership requirements
> In the boardrooms of companies around the world, from the largest multinationals to private equitybacked businesses
What we do
> Partner with companies to find
CEOs, presidents/COOs and their senior management teams, conducting more than 4,000 assignments each year
> In addition to executive search, we:
• Recruit exceptional directors and provide counsel on governance issues
• Assist boards in CEO succession planning
• Conduct management assessments of senior executives
5

We provide an integrated suite of leadership services, including:
Executive Search:
Executive recruitment focused on CEOs, COOs and other top-level functional leaders
Board Services: Boardroom recruitment and governance counsel
CEO Succession Services:
Executive Assessment Services:
Consultative services for boards’ CEO succession planning needs
A proven, proprietary approach to helping clients more accurately evaluate the strengths of their senior leadership teams
6

Through our practices, we offer a deep understanding of the challenges our clients face in each industry and sector we serve, and of the competencies required for success in a variety of functional roles. Industry and functional specialists work in partnership and across borders to provide clients with the most comprehensive access to candidate pools.
Industry Practices
> Clean Technology
> Consumer Goods &
Services
> Education, Nonprofit &
Public Policy
> Financial Services
> Industrial
> Life Sciences
> Private Equity
> Professional Services
> Technology,
Communications &
Media
Functional Practices
> Board Services
> Chief Executive Officer
> Diversity
> Financial Officer
> Human Resources
> Information Officer
> Legal Search
> Marketing Officer
> Sales Officer
> Supply Chain
7

Spencer Stuart conducts more than 300 CEO Search and Succession assignments annually and has the leading market share among S&P 500 companies.
Succession/Search with Internal
Candidates
Sherilyn McCoy, CEO
2012
Brian Kelley, CEO
2012
Bill Brown, CEO
2011
Hubert Joly, CEO
2012
Brian Krzanich, CEO
2013
Jose Almeida, CEO
2011
Ray Lane, Chairman, 2010
Leo Apotheker, CEO, 2010
Meg Whitman, CEO, 2011*
Chip Bergh, CEO
2011
Bryan Stockton, CEO
2012
Mike Polk, CEO
2011
Marc Lautenbach, CEO
2012
Frits Van Paasschen, CEO
2007
Mark Thompson, CEO
2012
John Lederer, CEO
2010
Dave Calhoun, CEO
2006
Marissa Mayer, CEO
2012

> Focus at the Top of the House: Leading Board of Directors practice and CEO Succession Practice.
CXO and VP level work in the U.S. with flexibility to do director-level work outside the U.S.
> Speed: Spencer Stuart understands the urgency of recruiting new executives quickly. Our process is geared toward both speed and quality. Heavy company investment in knowledge managers, proactive
ID, local and central research, etc.
> Senior Recruiters Lead the Effort from Start to Finish: Spencer Stuart recruiters have, on average, 10+ years of corporate experience and 10+ years of executive search experience. Our team remains engaged throughout the search to lead the effort.
> Focus on Culture Fit: Given our extensive knowledge of the candidate pool, our energies will be focuses not only on identification of an experienced executive but also on the “culture” and “business” fit of an executive who will excel in the client setting:
• Highest integrity with reputation for excellent quality work
• Focused on accountability and business results and accustomed to aggressive growth goals
• A collaborator who can play well in the “sandbox” with the existing senior team
> High Accountability on Recruiting Consultant: Client surveys at end of engagement are tied to bonus payments and are circulated to board members and senior management. This motivates us to meet and exceed your needs.

>
Environmental Interviews with senior management
>
Finalize the position specification
>
Confirm target list of companies
>
Meeting to review long list of candidate profiles
>
Introduction of first 2-3 qualified candidates
>
First slate of candidate interviews
Start
48 hours
48 hours
2 – 3 weeks
4 weeks
4-5 weeks
> Timing for key milestones is subject to travel schedule and availability of client team members and candidates.
10

With specialized sector and functional expertise, consultants in Spencer Stuart’s Sales Practice bring to each search an in-depth understanding of talent needs and marketplace realities.
> We are a global, dedicated team of 25
consultants, many with a sales background.
> We have conducted more than 1,000 sales
searches over the past three years for clients that range from large multinational companies to private equity firms and their portfolio companies to emerging companies and nonprofit organizations.
> For each assignment, we assemble a “best
team” combining industry knowledge with
functional and geographic expertise. We also conduct ongoing calls to review market intelligence and candidate pool development.
SALES FUNCTIONS
Vice President Sales
Major Account Sales
Channel Management
Sales Operations
Licensing Sales
Chief Revenue Officer
Vice President Sales & Marketing
Business Development
Government Sales
CANDIDATE POOL EXPERTISE
12

Consumer Financial Services Industrial Life Sciences Private Equity TCM

The sales officer function demands a combination of experiences and competencies that vary by organization
Revenue
Growth
Major Account
Management
Execution for
Results
Solutions
Orientation
Sales Processes and Tools
Business
Services
Expertise
Client
VP Global Sales
Cross-Functional
Collaboration
Recruitment and
Development
National Account
Management
Communication,
Influence &
Impact at CFO level
Ultimately, needed experiences and competencies will be determined by requirements of the specific situation.
Strategic Sales
Skills
Building Teams
14

Multilayer Assessment of Potential Sales Prospects in Conjunction with Candidate Specification
Performance Data
> Revenue Quota Environment
> Revenue Growth
> Revenue by region
>
Reasons for revenue growth related to
Strategic Impact
Sales DNA & Culture Fit
> Revenue by product line
> Margin growth
> New Products
>
New regional markets
>
Development of new sales strategy to match new/existing corporate strategy
> What decisions were made to impact sales effectiveness related to:
>
Evaluation of key behavioral leadership competencies which map to:
> Customer segments
>
Channel mix
> Competitive dislocation
>
Customer segmentation
> Best in class sales leader DNA
> Account coverage
> Hardware, software, services revenue split.
>
Maturity level of products and markets > Processes and metrics
> Specific client competencies
> etc.
> Degree of maturity of operational processes
> Channel model dynamics
> Leadership reputation internally and cross-functionally
> Incentive compensation changes
>
Growth in revenue compared to market share growth
> Turnaround? High growth?
Mature with slow growth?
> Performance management to raise individual and team effectiveness
> Ability to balance sales growth and profit maximization
> Ability to create a winning culture
> Philosophy on utilization of A, B and C talent across the organization
>
Big company with matrix management, small company PE funded, etc.
> Talent management skills to attract and retain top talent
> Line experience and operating orientation 15

Recruitment &
Development
Sales Strategy &
Organization
Rotation &
Succession
Planning
Performance
Management &
Compensation
Plans
Sales Process &
Methodology
Sales Operations
Account
Management
Rewards &
Celebration
Technology
(CRM, Pricing,
Quoting)

E
N
T
R
D
S
… and their leadership implications
Inside
Sales
Field Sales Indirect Sales eCommerce
Accountability
Global Methodology
Consistency
Maximize Selling
Time
LEADERSHIP IMPLICATIONS
> Lack of effective customer segmentation and mapping of sales channel
> Lack of effective collaboration to drive activity to the right internal organization
> Invest in world class sales operations not sales support
> Adoption non-negotiable at all levels
>
Consistent cadence to increase chance of success
18

E
N
T
R
D
S
… and their leadership implications
Value
Chain Delayering
Shorter
Product
Profit Cycle
Vicious Price
Competition
Solutions Selling
Requirements
Exploding Emerging
Markets Regional
Customization
Local Channel
Preferences
Expat Expirations
LEADERSHIP IMPLICATIONS
> Cost to serve specific customer segments way too expensive
>
Outdated structure provides for coverage model
>
Lack of clarity around selling skills to serve each customer segment
> 3 region structures no longer adequate
> Local language leadership required
>
Cultural complexity with one region (i.e. Asia Pac)
19

… and their leadership implications
E
N
T
R
D
S
Fewer Sales
Academies
Churn of top sales leaders
Short term pressures on
CEO
Crushing 30/60/90 pipeline requirements
LEADERSHIP IMPLICATIONS
> Develop skill sets in-house or recruit externally
>
CEO’s and Vice Presidents of Sales need to agree on time required to develop sales strategy
>
Recruit rigorously to find scarce skills.
20

> My data is a colored by B2B TCM, Industrial, Business Services:
• $100Mn revenue- $200K-$225K base, 50% bonus plus equity – North America
• $100Mn revenue - $300-$350K base, 50% bonus plus equity – Global
• $500Mn revenue $300K-$350K base and $50% bonus plus equity - Global
• $6Bn revenue - $450K base, 100% bonus, $400-$1M per year in annual equity
> Sign-on bonuses much less frequent since 2001. You must be leaving unvested equity on the table.
> Shift from options to RSUs and PSUs has been dramatic
> Overachieve plans on annual bonus are negotiable. Be prepared to discuss
> Initial equity grants most common. Clients encouraged to be generous to attract best talent.
Candidates need to be around in 3-4 years to collect!
> Keep the recruiter in the middle on negotiations – ability to speak openly, get a reality check, and to enlist the recruiter to negotiate on your behalf without burning bridges.
21

> Develop one or two key contacts per firm in your industry vertical (i.e. consumer, industrial, technology) or function (i.e. sales officer practice at SSI). No need to meet every partner at the firm – we all talk and share candidate ideas.
> We are retained by clients to pursue candidates that meet our mutually-defined specifications. We cannot conduct a search on your behalf, but can be helpful in recommending you to our colleagues around the world. Please let us know your willingness to move to
Asia or Europe.
> Develop your career as a “pure play” stock – excellence in a given function or industry segment is always well rewarded.
> Add data to the resume (dates, revenue before and after, team size, graduation dates).
> Be a good source and help with suggestions for others; this is much appreciated and expands your mindshare across the firm. We will not reveal your name as the source if requested.
> SSI conducts high level and high impact searches for small, medium and large companies but quantity per consultant per year is 10-
15. If you do not hear from us, it does not mean we do not think you are terrific. Each search is a very unique combination of required skills, experiences, channels to market, products, etc.
> During interviews, there are only two real ways to crash and burn – huge ego and providing long-winded answers to short, concise questions.
> Self-awareness and self-assessment are extraordinarily well received and put you in another league of executive talent. Expertise, candor and humility are a great combination.
> “Check-ins” every 4-6 months are fine. Any more than that may produce a negative impact.

23