• The total annual compensation of workers relative to industry-average compensation levels in the
geographic region where a plant is located—How well your company’s plant workers are being
compensated relative to the combined base wage and incentive pay at rival companies with plants in
the same region is a major factor in the company’s ability to attract and retain better-caliber, more
productive employees. The best, most productive workers are inclined to leave jobs at lower-paying
plants for higher-paying jobs. Likewise, job seekers with desirable work habits and attitudes are drawn
to work for those footwear-makers having a better overall compensation package. As a consequence,
worker productivity tends to be higher at the better-paying plants in a geographic region. [Special
Note: The worker productivity figures shown on the screen are projections, not certainties, because
there is no way to know in advance how the company’s compensation package in the upcoming year
will compare against the pay packages of rivals.]