needs, diversity, top talent, development opportunities, readiness for promotion, internal movement,
and succession plans. Robust talent discussions are held annually with our executive management team and Board.
Executive
Officer Development and Succession Planning. The Board is responsible for succession planning for the position of CEO. The Board, led by the Compensation and Benefits Committee, annually conducts a formal management development and
succession planning review with respect to the position of the CEO and other senior officers. This review focuses on CEO succession planning, as well as developing internal candidates for advancement within the Corporation. The Compensation and
Benefits Committee makes recommendations to the Board concerning management development and succession planning. These recommendations reflect the Boards annual management development and succession planning review, as well as Committee
discussions with and without the CEO. The Corporate Governance Committee discusses succession planning in the event of the unexpected death, incapacity, or resignation of the CEO and recommends to the Board, after consultation with the Chairman of
the Compensation and Benefits Committee, an appropriate successor under such circumstances.
Performance
Management. Northern Trusts annual performance management process includes goal setting, mid-year check-ins, multi-rater feedback, and year-end reviews. Priorities are set by our CEO and applied to each business, department, team and individual. Managers are encouraged to provide regular feedback and real-time coaching to enhance performance
outcomes and continually develop our talent.
Engagement and Recognition. Building an inclusive, connected and
engaged employee culture is essential to retaining our talent. We invite all employees to provide management with anonymous responses about their everyday experiences at work through an annual Employee Engagement Survey and periodically through
pulse surveys and other interactive feedback channels. Results are thoroughly evaluated to identify strengths, progress, and opportunities to further strengthen employee engagement, and are transparently shared with both employees and the Board. We
also foster an attitude of gratitude through our online recognition platform that allows employees to recognize one another for everyday contributions.
Total Rewards
Our compensation and
benefit programs are designed to be market competitive and positioned around the median of the local market, enabling us to attract and retain talent needed to deliver on our strategy.
Compensation Programs. Our compensation programs are intended to motivate our employees to deliver the
highest-quality service to our clients and achieve the greatest collective business results. They are designed, implemented and communicated to promote behaviors that are consistent with Northern Trusts desired culture, character and enduring
principles of service, expertise, and integrity. We also regularly review our compensation processes and programs and take appropriate measures to ensure we can attract and retain talent in relevant markets.
Northern Trusts base salary programs provide a competitive level of fixed pay reflecting each employees position,
experience, qualifications and tenure. Additionally, all employees are eligible for incentive compensation to reward performance that delivers superior team or individual results. Incentive compensation is linked to both financial and nonfinancial
performance criteria, including risk considerations, as determined by our Board and senior management. Select senior leaders and individual contributors may receive a percentage of their incentive in Northern Trust stock to encourage retention of
key talent and to align rewards with company performance.
Employee Benefits. While the exact composition of
the employee benefit package varies by country, our benefit programs are designed to be locally competitive, to meet the needs of our employees and their families, and to reflect the cultural values of the organization. Typical benefit programs
include retirement, health care, paid time off, income protection such as disability and life insurance, leaves of absence, and access to our Employee Assistance Program. We have expanded our focus on employee well-being by providing additional
programs and resources to improve wellness. These programs focus on how to manage stress, build resiliency, and be attuned to mental health issues; access to flexible or voluntary benefits; and enhancements to various parental leave offerings.
Continued Commitment to our Employees During the COVID-19 Pandemic
During the COVID-19 pandemic, we have remained focused on the health and well-being of our
workforce. As the prolonged public health crisis has unfolded, Northern Trust has responded by providing additional health and well-being resources to our employees, including expanded virtual access to health care and well-being programs; a
well-being learning center with tools for working effectively in a virtual environment; and virtual focus groups allowing employees to provide feedback and build connections with colleagues. We also provided additional
paid-time-off for a COVID-19 diagnosis and