METHODOLOGY

Summary: Our survey offers results obtained from company completed questionnaires, personal and telephone interviews. Sales compensation and its components are examined in detail. Information is provided to show: Base Compensation, Incentive Compensation, Total Package Data, Total Cost of Distribution, Expenses and Benefits, and Field Sales Breakout.

PARTICIPANTS: Data has been collected on position and product specific basis:

• More than 60 completed Company Questionnaires...
• Plus, more than 1000 individuals representing...
• Over 100 Companies
• No data is reported with less than nine companies represented

GROUPINGS: Data is segmented by:

• Product — 401(k)/Pension, Annuities, Managed Money and Mutual Funds
• Company Size — Assets Managed
• Distribution — Banks, Consultants, Insurance, NASD, and Wire Houses
• Phase of Market Development — Threshold, Growth, Maturity and Decline

Distribution: Each company sales force in our universe is assigned a primary distribution audience reflecting their priority and focus.

PHASE OF MARKET DEVELOPMENT

Threshold: Companies falling into this category typically have one or more of the following characteristics:

• Usually less well known
• Usually spend least on marketing
• Limited distribution and access
• Either limited performance track record or general performance continues to be out of favor with audience
• Sales force is most prominent in marketing mix
• Emphasis is new accounts

Growth: Companies falling into this category typically have one or more of the following characteristics:

• Usually better known
• Usually spend more on marketing
• Well developed and expanding distribution
• Performance track record is better than competition average
• Sales force has significant prominence in marketing mix
• Continues emphasis on new accounts

Maturity: Companies falling into this category typically have one or more of the following characteristics:

• Usually best known
• Usually spend most on marketing
• Most developed distribution and acceptance by audience
• Performance track record is average with some "stars"
• Emphasis is on market penetration
• Has moderate sales prominence in market mix

Decline: Companies falling into this category typically have one or more of the following characteristics:

• Usually well known
• Usually spending less on marketing
• Erosion of distribution audience loyalty
• Performance track record that can be an issue
• Emphasis is market retention
• Has minimal sales prominence in market mix

POSITIONS: Matches are position specific.

DATA: Data is compiled annually on a calendar year basis.

UNIVERSE: Companies represented are listed specific to product. Some companies are listed in more than one universe. Those companies either have separate sales forces or, if using the same sales group, the incentive compensation elements/rates differ by product.

COMPENSATION DATA: The data identifies:

Weighted Averages — accounts for frequency distribution (e.g., one participant per sales force per product line).

Lowest and Highest Paid

Low 25% Quartile — is the point at which 25% of the data falls at or below.

Median — is the point at which 50% of the data falls below and 50% of the data falls above.

High 75% Quartile — is the point at which 75% of the data falls at or below.

90th Percentile — is the point at which 90% of the data falls at or below.

ROUNDING: Median, Quartiles, 90th Percentile and Weighted Average scores have been rounded to the nearest one hundred.

NR: No data reported.

NS: Non-sufficient data reported.