Determination of remuneration principles and compensation

Adecco’s Remuneration Report reflects the requirements of section 5 of the Directive on Information Relating to Corporate Governance, issued by the SIX Swiss Exchange (formerly SWX Swiss Stock Exchange) as amended on October 29, 2008. Adecco S.A.’s principles regarding remuneration take into account the recommendations set out in the Swiss Code of Best Practice for Corporate Governance as amended on September 6, 2007. In addition, the Remuneration Report comprises information as required under the Swiss Code of Obligations (Art. 663bbis and 663c para. 3), which is included in Note 7 to Adecco S.A. (Holding Company) financial statements. For further information regarding Adecco’s Corporate Governance refer to the Corporate Governance Report.

1. Determination of remuneration principles and compensation

In order to maintain its competitive positioning as a global employer, the Company reviews market conditions on a continual basis. Compensation is dependent on outside influences including geographic location, industry, competition, and general business climate. Therefore, the Company’s country organisations conduct regular local salary surveys and review country-specific economic data to determine their merit increase guidelines.

The Company’s compensation programmes are approved by the Board of Directors. The Board has entrusted the Board’s Nomination & Compensation Committee (“NCC”), which is composed of independent Board members only, with providing recommendations to the Board of Directors regarding the remuneration principles and general compensation philosophy of the Company and reviewing and approving the objectives relevant to the compensation of the Executive Committee and a further group of senior managers (for further details on NCC composition, tasks and activities refer to the Corporate Governance Report, section 3.5.3 “Nomination & Compensation Committee”). The NCC had commissioned the services of independent external consultants (Hay Group and Towers Watson) to provide and review proposals to the NCC.

The remuneration of the Board of Directors is determined by the full Board of Directors, upon recommendation from the NCC. The compensation of the Executive Committee and of a further group of senior managers is authorised by the full Board of Directors, upon recommendation from the NCC. The compensation of the other employees of the Company is authorised by the responsible members of management, based on the remuneration principles and general compensation philosophy of the Company.