San Antonio Regional Relocation Council September 17, 2013 Today’s Talent Management

About Valero - Business  International manufacturer and marketer of: ► Transportation fuels ► Petrochemical products ► Power  10,500 employees  16 refineries – 3 million barrels per day  10 ethanol plants – 1.2 billion gallons per day  50 megawatt wind farm  Biomass diesel facility – 9,300 barrels per day

About Valero - Community  131,000 hours of volunteer hours  Valero Texas Open: Benefit For Children ► $10 million in 2013 and $81.5 million since 2002  United Way – highest per capita in nation  MS 150 – Alamo Ride to the River: $1.5 million

Talent Management – Top Concern Bloomberg January 2013 Talent Management top strategic corporate concern Korn/Ferry March 2013 Harvard Business Review May 2013 Fisher & Phillips, LLP Talent and the shortage in key skills dominate the concerns of most CEOs 2013 PricewaterhouseCoopers CEO Survey

Talent Management Defined Implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs A holistic approach to optimizing human capital, which enables an organization to drive short- and long-term results by building culture, engagement, capability, and capacity through integrated talent acquisition, development, and deployment processes that are aligned to business goals Talent management is an organization's commitment to recruit, retain, and develop the most talented and superior employees available in the job market An organization's attempts to recruit, keep, and train the most gifted and highest quality staff members that they can find, afford and hire

Talent Management Defined Managing the ability, competency, and opportunities of employees to enhance overall talent power

Integrated Talent Management PLANHIREDEVELOPMANAGERETAIN Strategic Planning & Organizational Alignment Goal Setting Workforce Planning Recruitment Strategy Interviewing & Selection On-boarding Individual & Team Development Management & Leadership Development Organizational Development Setting Expectations Coaching & Feedback Performance Management & Evaluation Rewards & Recognition Career Planning Succession Planning P ERFORMANCE

Talent Management ∞ Relocation  Hire – top candidates are rarely local ► Spouses, significant others, delayed moves, two for one hires, etc.  Develop – benefits of multiple location experience, stretch assignments, varied leadership exposure  Retain – matching correct talent to correct position at correct time PLANHIREDEVELOPMANAGERETAIN

Critical People vs. Jobs  Critical People – efforts focused on identifying key people critical to business success ► High potential ► Identified successor  Critical Jobs – efforts focused on identifying key jobs critical to business strategy ► Key business unit leader ► Key customer interface ► Key technology expert

Discussion More Activity? Larger Budgets? Lower Level Approval? Lower Level Positions? Interns? More Policy Exceptions? More Critical to Offer? Recent Policy Revisions?