Subject: Salary Increase Budget
From: Clarissa Peterson <[email-masked]>
Date: Fri, 18 Apr 2014 17:12:41 +0000

Colleagues,

Each year, the Human Capital and Compensation Committee of the Board of Directors approves the proposed salary increase budget for the company.  Before recommendations are made to the Board of Directors for budget approval, Abt Associates consults several compensation surveys that reflect the pay practices of other government contractors and professional services organizations.  What the survey data showed was budgets set at 2.6% to 3.2%.

I am writing to inform you that for FY14 performance, Abt Associates’ total budget for salary increases is 3.2% of payroll (inclusive of merit, promotions and equity) compared to the budget for FY13 performance at 3.7% (all inclusive).   Salary budgets fluctuate annually and are affected by what is happening in the global economy and the market sectors in which a company competes.

As is the case every year, your division/department managers who make pay decisions must stay within their total allocated pool when determining merit increases, promotions and equity adjustments.  HR will be working with your management teams to help them think about the most equitable way to distribute these funds.  I am pleased that the Board approved a budget for the company that was at the higher end of the survey data.  This level is just another example of the Board’s confidence in the work that we do.

If you have any questions, please don’t hesitate to reach out to your division/department or feel free to contact your HR business partner.

Regards,

Clarissa