Corporate Compensation Philosophy

Vestcor also regularly participates in and uses compensation surveys conducted by various compensation consultants to ensure that compensation trends are regularly monitored, and trends are identified and reported to the HRCC.

Vestcor believes that employees are key to its performance and is committed to providing a positive working environment, rewarding career opportunities and competitive compensation. Vestcor also believes that the achievement of its mission will be facilitated by having meaningful alignment between employees’ interests and the interests of its clients.

Accordingly, a Compensation Philosophy has been developed to address the following objectives:

• Provide competitive, performance-based compensation based upon market practices; • Attract and retain high-quality employees; • Reinforce the strategy, culture and policies of Vestcor; • Promote awareness and attainment of individual, team and corporate strategic objectives; • Enhance Vestcor’s reputation as an employer of choice; and • Treat employees fairly.

The principles on which this philosophy is based are summarized as follows:

PAY FOR PERFORMANCE CULTURE

BASE SALARIES PAID AT MEDIAN OF COMPARATOR

COMPENSATION PRINCIPLES

ALIGNED TO CLIENTS’ INTERESTS

CORRELATION BETWEEN EXPERIENCE AND AT RISK COMPENSATION

ATTRACTS, ENGAGES AND RETAINS TALENT