DD » Topics » Competitive Analysis

This excerpt taken from the DD DEF 14A filed Mar 20, 2009.
Competitive Analysis
 
All compensation elements are assessed primarily against published compensation surveys that represent large companies with median revenue comparable to DuPont’s (“Market”), including surveys by Towers Perrin, Mercer, Hewitt, Watson Wyatt Data Services and Hay Group. We believe that this approach assures a complete and robust picture of the overall compensation environment and assures consistent comparisons for the CEO and other NEOs.
 
We also use a select group of peer companies (“Peer Group”) to: (i) benchmark pay design (mix, performance criteria, etc.); (ii) measure financial performance; and (iii) test the link between pay and performance. Because of the number of Peer Group companies, we occasionally find information to be inconsistent year over year. For this reason, we use Peer Group information only to validate the results of our competitive Market analysis.

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The Peer Group represents the multiple markets in which we compete — including markets for executive talent, customers and capital — and is comprised of large, high-performing U.S.-based companies with a strong scientific focus and/or research intensity and a strong international presence.
 
The Peer Group includes the following companies:
 
       
3M Company
    Ingersoll-Rand Company Limited
       
Abbott Laboratories
    Johnson & Johnson
       
Air Products & Chemicals, Inc. 
    Johnson Controls, Inc.
       
Baxter International Inc. 
    Kimberly-Clark Corporation
       
The Boeing Company
    Merck & Co., Inc.
       
Caterpillar Inc. 
    Monsanto Company
       
Eastman Kodak Company
    Motorola, Inc.
       
Emerson Electric Company
    Procter & Gamble Company
       
Hewlett-Packard Company
    Rohm and Haas Company
       
Honeywell International Inc. 
    United Technologies Corporation
       
 
These excerpts taken from the DD DEF 14A filed Mar 20, 2008.
Competitive Analysis
 
At DuPont, we benchmark compensation levels primarily against published compensation survey information that represents large companies with median revenue comparable to ours (“Market”), including surveys by Towers Perrin, Mercer, Watson Wyatt Data Services and Hay Group. We believe that this approach assures a consistent benchmarking for the CEO, other NEOs and other employees.
 
We also use a select group of peer companies (“Peer Group”) to benchmark pay design (mix, performance criteria, etc.), measure financial performance, and test the link between pay and performance. Peer Group compensation information is used only for the CEO and only as a secondary data point to test the results of our competitive Market analysis.
 
In 2007, the Committee, with input from management and Cook, revised our Peer Group. The new Peer Group will be effective for 2008 and beyond and represents the multiple markets in which we compete — including markets for executive talent, customers and capital — and is comprised of large U.S.-based companies with a strong scientific focus and/or research intensity and a strong international presence.
 
To help guide the selection process in an objective manner, the Committee and the Company established the following criteria for selecting the new Peer Group.
 
•   Strong performer
•   U.S.- based companies to facilitate pay design and performance comparisons
•   Scientific focus/research intensity
•   Meaningful international presence
 
Strong science capabilities have been the driving force behind our transformation over the past decade. Our new Peer Group reflects that transformation through a concentration on research intensive companies with a scientific focus and a parallel move away from commodity-based chemical companies, such as Dow and PPG.
 
The new Peer Group includes the following companies:
 
       
3M Company
    Ingersoll-Rand Company Limited
       
Abbott Laboratories
    Johnson & Johnson
       
Air Products & Chemicals, Inc. 
    Johnson Controls, Inc.
       
Baxter International Inc. 
    Kimberly-Clark Corporation
       
The Boeing Company
    Merck & Company, Inc.
       
Caterpillar Inc. 
    Monsanto Company
       
Eastman Kodak Company
    Motorola, Inc.
       
Emerson Electric Co. 
    The Procter & Gamble Company
       
Hewlett-Packard Company
    Rohm and Haas Company
       
Honeywell International Inc. 
    United Technologies Corporation
       
 
Competitive
Analysis



 



At DuPont, we benchmark compensation levels primarily against
published compensation survey information that represents large
companies with median revenue comparable to ours
(“Market”), including surveys by Towers Perrin,
Mercer, Watson Wyatt Data Services and Hay Group. We believe
that this approach assures a consistent benchmarking for the
CEO, other NEOs and other employees.


 



We also use a select group of peer companies (“Peer
Group”) to benchmark pay design (mix, performance criteria,
etc.), measure financial performance, and test the link between
pay and performance. Peer Group compensation information is used
only for the CEO and only as a secondary data point to test the
results of our competitive Market analysis.


 



In 2007, the Committee, with input from management and Cook,
revised our Peer Group. The new Peer Group will be effective for
2008 and beyond and represents the multiple markets in which we
compete — including markets for executive talent,
customers and capital — and is comprised of large
U.S.-based
companies with a strong scientific focus
and/or
research intensity and a strong international presence.


 



To help guide the selection process in an objective manner, the
Committee and the Company established the following criteria for
selecting the new Peer Group.


 





























•  
Strong performer
•  
U.S.- based
companies to facilitate pay design and performance comparisons
•  
Scientific focus/research intensity
•  
Meaningful international presence


 



Strong science capabilities have been the driving force behind
our transformation over the past decade. Our new Peer Group
reflects that transformation through a concentration on research
intensive companies with a scientific focus and a parallel move
away from commodity-based chemical companies, such as Dow and
PPG.


 



The new Peer Group includes the following companies:


 



































































































































       


3M Company


 

 

Ingersoll-Rand Company Limited

 

 

 

 


Abbott Laboratories


 

 

Johnson & Johnson

 

 

 

 


Air Products & Chemicals, Inc. 


 

 

Johnson Controls, Inc.

 

 

 

 


Baxter International Inc. 


 

 

Kimberly-Clark Corporation

 

 

 

 


The Boeing Company


 

 

Merck & Company, Inc.

 

 

 

 


Caterpillar Inc. 


 

 

Monsanto Company

 

 

 

 


Eastman Kodak Company


 

 

Motorola, Inc.

 

 

 

 


Emerson Electric Co. 


 

 

The Procter & Gamble Company

 

 

 

 


Hewlett-Packard Company


 

 

Rohm and Haas Company

 

 

 

 


Honeywell International Inc. 


 

 

United Technologies Corporation

 

 

 

 







 




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