1. Copyright © 2006 by The Survey Group One Pope Street, Suite 200 Wakefield, MA 01880 (781) 279-9994 www.thesurveygroup.com All Rights Reserved. The Survey Group 2006 Medical Devices Compensation Survey: Analysis and Results MassMEDIC Seminar September 19, 2006

2. 1 Company Overview Established in 1961, The Survey Group is a member-based human resources information, survey and consulting firm. The Survey Group (TSG) provides its 600 member organizations with the highest quality, most comprehensive regional compensation and benefits survey data available. The Survey Group also offers members unlimited access to an extensive library of human resource surveys, periodicals, books and manuals published by other organizations. The professional staff is available to answer HR related questions and locate data from these resources. TSG’s consulting practice provides human resources consulting to both member and nonmember organizations in areas such as compensation program design, performance management, benefits analysis and organizational climate surveys.

3. 2 Presenter David K. Weaver, President of The Survey Group, leads the member services, survey management and consulting functions for the organization. Since joining TSG he has worked with companies in a variety of industries on a wide range of projects such as the design of compensation programs and incentive plans, performance appraisal system development and training, and employee climate surveys. Before joining The Survey Group, he held management and professional compensation and human resources positions at Liberty Mutual Insurance, Hewlett-Packard Company and Honeywell. He is an adjunct faculty member for Northeastern University and Newbury College, where he teaches undergraduate courses in Compensation Management and Human Resources Management.

4. 3 Medical Devices Compensation Survey Produced through a partnership between The Survey Group and MassMEDIC Jobs chosen by members of the MassMEDIC HR Committee Data collected May - June, results published September 33 companies participated, 70% TSG members, 82% MassMEDIC members Privately held 42%, Public 58% Sales revenue:Less than $50M45.5% $50M to $300M33.3% $Greater than $300M21.2%

5. 4 Salary Increase Programs Frequency of Salary Increases Common Review Anniversary Review Fixed number of months from previous increase Pay Philosophy 50 th Percentile Average Between 50 th and 75 th Percentile

6. 5 Salary Structures Majority of companies have formal salary ranges Typically reviewed annually Over 50 percent of companies adjust salary ranges every 12 months

7. 6 Stock Options Most companies grant stock options Options given to all levels of the organization Typically granted on a discretionary basis for individual or group performance Options are usually granted annually or upon hire

8. 7 Merit Increases 2006 Budget Employee GroupMed DevicesBiotech TSG Overall Nonexempt3.7% 3.5% Exempt3.8%3.7%3.5% Executive3.8%3.7%3.6%

9. 8 Total Increases 2006 Budget Employee GroupMed DevicesBiotech TSG Overall Nonexempt4.4%4.2%3.9% Exempt4.4%4.2%3.9% Executive4.4%4.2%3.9%

10. 9 Structure Movement 2006 Adjustments Employee GroupMed DevicesBiotech TSG Overall Nonexempt3.3%2.8%3.0% Exempt3.1%2.8%3.0% Executive3.1%2.8%3.0%

11. 10 Merit Increase Budgets 2007 Projections ExecutiveExemptNonexempt TSG3.6%3.5% Compensation Resources3.5% Mercer3.8%3.6% Conference Board3.8%3.5%

12. 11 Salary Increases

13. 12 Salary Structure Movement 2007 Projections ExecutiveExemptNonexempt TSG3.0% 2.9% Compensation Resources2.8% 2.9% Mercer2.9%2.8% Conference Board2.5%2.7%

14. 13 Structure Movement

15. 14 Job Family Observations Engineering jobs paid competitively at the career levels Sales jobs paid in line with other industries with a more aggressive base/incentive mix in the highest level job Survey Job Title 2006 Medical Devices Comp Survey Avg Base Salary 2006 TSG Benchmark Comp Survey Avg Base Salary Percent Difference Mechanical Engineer IV$96,100$94,900+1.2% Mechanical Engineer III$82,400$79,000+4.1% Mechanical Engineer II$72,500$66,200+8.7%

16. 15 Job Family Observations Quality jobs paid on par with other manufacturing sectors Regulatory Affairs and Clinical Research jobs tend to lag the Biotechnology Industry Survey Job Title 2006 Medical Devices Comp Survey Avg Base Salary 2006 Biotechnology Comp Survey Avg Base Salary Percent Difference Director, Regulatory Affairs$136,800$158,800-16.1% Manager, Regulatory Affairs$101,000$113,900-12.8% Sr. Regulatory Affairs Specialist$79,400$88,400-11.3% Regulatory Affairs Specialist$64,500$64,100+0.6%

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