Creative Relocation Management

1. Creative Relocation Management “The Lump Sum Approach” Moderator Bob Ludwig, Reads Moving Systems Panelist Laura L. Biggs, Comptroller of the Currency May Caffi, Marriott International, Inc. Eileen T. Yurick, GlaxoSmithKline May 5th,2010

2. What’s Driving Lump Sum Programs • Financial Pressures to reduce & control costs • Ensure costs are in line with salary • Budget / Limiting “open ended” costs • Employee empowerment • Employees aren’t staying with Company (ROI) • Success with college hires & Sarbanes Oxley covered individuals • Incentive to move faster • Reduction in administrative support • Minimize exception request • Procurement / Supply chain input • Current Real Estate environment

3. Types of Lump Sum Programs Domestic and International Relocation Programs • Total Lump Sum – payment for expected expenses • Capped Program – limits on payments • Tax Advantage Lump Sum Program – exclude expenses that are not considered taxable income ( Household goods, final trip and a properly designed home sale program) • Customized Lump Sum Program – based on individual needs and negotiated spend

4. Tax Treatment • Normal withholding • Tax Adder • Gross-up

5. Accountability Accountable Plan • Reimburse on specific expense categories • Payment follows expense • Receipts required unless Direct Billed Non-Accountable • No required support for expenses • Payment in advance or intervals • No receipts needed • Employee keeps difference

6. Findings (Domestic) Total Lump Sum Programs • Homeowner- 5K to 75K • Renter- 2K to 15K Capped Programs • Homeowner- 40K to 150K • Renter- 5K to 20K Tax Advantage Lump Sum • Homeowner- 10K to 40K • Renter- 5K to 15K Customized Lump Sum Programs • Homeowner- 45K to 250K • Renter- 8K to 15K • Tax treatment varied from Company to Company