1. Dow Chemical’s Salary Program People Success People Success Supports Dow’s business strategySupports Dow’s business strategy GlobalGlobal Provides Ees greater freedom to plan and control careersProvides Ees greater freedom to plan and control careers Brings key components of HR into alignment w/ consistent logic; ensures Dow’s fundamental principles reflected in all HR actionsBrings key components of HR into alignment w/ consistent logic; ensures Dow’s fundamental principles reflected in all HR actions Competency Profiles Competency Profiles Foundation of People Success: defines what constitutes job successFoundation of People Success: defines what constitutes job success

2. Dow Chemical’s Salary Program Global competencies Global competencies Initiative: seizes opportunities, bias for actionInitiative: seizes opportunities, bias for action InnovationInnovation Interpersonal effectivenessInterpersonal effectiveness LeadershipLeadership Learning: seeks opportunities to develop personal abilitiesLearning: seeks opportunities to develop personal abilities Market focusMarket focus TeamworkTeamwork Value creationValue creation 34 classroom courses, 33 online courses offered to assist in development of global competencies, plus many functional competency courses 34 classroom courses, 33 online courses offered to assist in development of global competencies, plus many functional competency courses

3. Dow Chemical’s Salary Program Job slotting Job slotting Provides internal equity, performed by line managersProvides internal equity, performed by line managers Market strategy and salary ranges Market strategy and salary ranges Goal: median pay for set of premier companiesGoal: median pay for set of premier companies Leaders expected to manage salaries so that Co average is 100% of market medianLeaders expected to manage salaries so that Co average is 100% of market median Role of managers in salary management Role of managers in salary management HR/Comp responsible for design and administrationHR/Comp responsible for design and administration Line managers manage system day-to-dayLine managers manage system day-to-day “Mushroom theory” (‘keep them in the dark’) vs. openness“Mushroom theory” (‘keep them in the dark’) vs. openness