HCE Hospitality Compensation Exchange Compensation Review of Luxury Golf Resorts in Scotland By HVS Executive Search, London

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HCE Hospitality Compensation

Exchange®

Compensation Review of Luxury

Golf Resorts in Scotland

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Presented by HVS Executive Search http://www.hvs-executivesearch.com/CompensationConsulting/

Welcome to the HCE Hospitality Compensation Exchange®, the hotel industry’s most comprehensive guide to salaries and benefits. We have created the HCE to provide hotel owners and operators with current and credible information concerning salary, bonus and employee benefit trends.

Overview & Methodology

HVS Executive Search is widely recognized as a leader in providing human resource consulting to the hospitality industry. Core competencies of the firm include retained executive search, compensation management, and corporate governance counseling. Supporting the firm’s compensation consulting practice is the HCE Hospitality Compensation Exchange®. The HCE is the most comprehensive survey of the hotel industry and encompasses data from 5000 hotels and 160 companies.

Scope of Project

HVS was commissioned to conduct a study of salary and benefits levels awarded at luxury golf resorts in Scotland. The survey solicited data covering Annual Base Salary, Bonus, Bank Holidays, Pension – eligibility, annual employer’s contribution, Private Health Insurance, Child Care Support and other benefits such as Housing Allowance, Living Allowance, Travel Allowance, etc. The survey was carried out for key positions from General Manager to Green Keeper. HVS’ research included specific data from six local market competitors.

Data Analysis

Data is presented in standard percentile format (minimum, 25th _{percentile, 50}th _{percentile, 75}th percentile, and maximum). A percentile is a measure of location in a distribution of numbers that defines the value below which a given percentage of the data fall. For example, the 75th percentile is the point below which 75 percent of the data fall. The minimum and maximum represent the smallest and largest data points for each of the compensation components. We prefer the percentile format, as it is a better reflection of real compensation levels and is less susceptible to statistical outliers.

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Findings

It has only been possible to report full findings for criteria where we had complete responses from at least five participating hotels. We have therefore not been able to report on Target Bonus, Last Paid Annual Bonus and Travel Allowances.

Please do not hesitate to contact us should you have any questions relating to the report or wish to learn more about the HCE Hospitality Compensation Exchange®.

HVS respectively submits its findings, With kindest regards,

Christopher Mumford & Pooja Vir

Managing Director Associate

Tel: (44) 20 7878 7740 Tel: (44) 20 7878 7756 Mbl: (44) 7976 972 448 Mbl: (44) 7726 479 339 Email: cmumford@hvs.com Email: pvir@hvs.com

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HCE Scotland Golf Resort Salary Report 2008

Annual Base Salary

Annual Gross Base Salary _Minimum _Percentile25th _Percentile50th _{Percentile Maximum}75th

Executive Office

General Manager £75,000 £99,250 £106,750 £116,463 £130,000

Director of Finance £46,000 £48,154 £61,759 £71,415 £107,541

Director Sales & Marketing £36,000 £47,536 £50,400 £57,680 £74,200

Director of Golf £39,140 £43,054 £51,300 £59,740 £68,440

Executive Chef £45,850 £50,000 £50,000 £51,482 £79,382

Food & Beverage - Service

Restaurant Manager - Fine Dining £20,000 £21,819 £26,072 £26,683 £30,900

Assistant Restaurant Manager - Fine Dining £14,500 £15,912 £19,000 £22,660 £24,000

Restaurant Manager - Club House £21,250 £22,279 £22,660 £24,000 £30,156

Conferences and Banqueting Manager £18,500 £23,000 £27,172 £29,398 £30,000

Waiter £11,393 £11,482 £11,498 £11,639 £11,918

Food & Beverage - Kitchen

Executive Sous Chef £28,000 £29,000 £29,870 £32,000 £47,000

Head Pastry Chef £25,005 £26,000 £27,800 £28,840 £32,500

Sous Chef £18,720 £19,000 £21,500 £24,000 £25,000

Chef de Partie £14,997 £15,000 £16,500 £17,361 £18,030

Housekeeping

Executive Housekeeper £25,000 £28,758 £30,376 £32,088 £37,131

Assistant Executive Housekeeper £14,419 £16,000 £18,000 £20,096 £20,600

Housekeeping Supervisor £12,200 £12,666 £13,800 £14,639 £16,000

Room Attendant £11,425 £11,486 £11,596 £11,862 £12,500

Golf

Golf Professional £11,498 £20,409 £22,075 £28,038 £33,000

Head Greenskeeper £20,563 £23,339 £27,800 £31,775 £51,000

Green Keeper Grade 1 £14,456 £14,804 £16,480 £18,561 £22,000

Sales & Marketing

Sales Manager - Local Market £23,694 £25,524 £27,547 £28,900 £34,629

Events Coordinator £14,000 £16,300 £16,500 £17,000 £18,025

Rooms Division

Front Office Manager £24,000 £27,305 £29,563 £37,113 £39,000

Assistant Front Office Manager £17,340 £19,750 £21,630 £23,000 £25,875

Assistant Head Concierge £12,250 £15,707 £17,000 £18,845 £21,500

Front Hall Porter / Doorman £11,394 £11,486 £11,569 £11,849 £11,950

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HCE Scotland Golf Resort Salary Report 2008

Annual Base Salary

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Annual Gross Base Salary _Minimum _Percentile25th _Percentile50th _{Percentile Maximum}75th

Spa

Director of Spa & Leisure £27,962 £31,000 £34,510 £35,568 £70,000

Therapist Level 1 £11,900 £11,918 £15,304 £16,000 £16,356

Therapist Level 2 £12,300 £13,250 £13,532 £14,500 £15,188

Finance

Assistant Financial Controller £24,000 £24,884 £29,000 £33,701 £36,400

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HCE Scotland Golf Resort Salary Report 2008

Benefits

Car

Annual Car Allowance _Minimum _Percentile25th _Percentile50th _{Percentile Maximum}75th

Executive Office

General Manager £6,300 £6,900 £7,500 £8,250 £9,000

Notes:

• 50% of the participants also provide a car or car allowance to other members of the Executive Office. The value of this annual allowance ranges between £6,000 and £7,500.

• 33% of the participants also provide a car or car allowance to senior members of the sales and marketing teams.

Health

• 66% of the participants provide members of the Executive Office with private medical insurance. Following is the range of the annual insurance premium:

Private Medical Insurance

Minimum Maximum

General Manager £385 £2,090

Director of Operations £385 £1,308

Director of Finance £385 £1,548

Director Human Resources £602 £2,090

Director Sales & Marketing £1,308 £2,090

Director of Engineering / Facilities £1,055 £1,055

Director of Golf £385 £602

Executive Chef £385 £2,090

Bank Holidays

• Majority of the participants recognise 8 bank holidays and pay for this in single time. Pension

Pension

Annual Employer’s Contribution Minimum Percentile 25th Percentile 50th Percentile Maximum 75th Executive Office

General Manager 6% 7% 10% 15% 17%

Director of Finance 6% 7% 10% 10% 15%

Director Sales & Marketing 6% 7% 10% 10% 15%

Director of Golf 6% 7% 10% 10% 15%

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HCE Scotland Golf Resort Salary Report 2008

Additional Benefits

7 Executive Committee

ADDITIONAL BENEFITS Yes _% No _%

Eligible for pension? 100% 0%

Eligible for private health insurance? 100% 0%

If Yes, please give details such as whether dependent on length of service, whether offered to spouse and family, etc.

Majority of the participants offer this

to the employee, spouse and family.

Death in Service Benefit? 67% 33%

Long-term Disability Allowance? 17% 83%

Dental Care? 0% 100%

Stock Options? 17% 83%

Housing 17% 83%

Retirement Gift? 67% 33%

Long Service Award? 100% 0%

Compassionate Leave? 100% 0%

Child Care Support? 33% 67%

Birthday Present 17% 83%

Christmas Present/Hamper? 33% 67%

Tuition or Sponsorship Assistance? 67% 33%

Free Dry Cleaning for Non-Uniform Employees? 50% 50%

Uniform Allowance? 0% 100%

Recommend a Friend Scheme (employment)? 17% 83%

Subsidised Chiropodist? 0% 100%

Subsidised Back Therapist? 17% 83%

Enhanced Paid Maternity Leave? 17% 83%

Enhanced Paid Paternity Leave? 17% 83%

Enhanced Paid Adoption Leave? 17% 83%

Outstanding Employee Award? 83% 17%

Health Club Membership? 100% 0%

Discount on Food & Beverage? 100% 0%

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HCE Scotland Golf Resort Salary Report 2008

Additional Benefits

Head of Department

If Yes, please give details such as whether dependent on length of service, whether offered to spouse and family, etc.

Majority of the participants offer this to the employee only.

Housing 17% 83%

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HCE Scotland Golf Resort Salary Report 2008

Additional Benefits

9 Line Level

Housing 33% 67%

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HCE Scotland Golf Resort Salary Report 2008

Peer Group

Hotels Included in the Peer Group

De Vere Deluxe Cameron House Fairmont St. Andrews

Marriott Dalmahoy Hotel & Country Club Old Course Hotel, St. Andrews

The Gleneagles Hotel Westin Turnberry Resort

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The HCE Hospitality Compensation Exchange is the largest industry forum for the exchange of compensation and benefit information. Annual HCE surveys are conducted for the hotel, casino, and restaurant industries and encompass corporate and property-level positions. Furthermore, clients have access to more focused reports through HCE Select and HCE Custom.

HCE Annual Reports contain an executive summary of the international HCE survey data. This data is categorised by suitable industry criteria and reports are available for both corporate and property-level positions.

HCE Select generates criteria-specific reports based on data from the international survey. You can determine your own query parameters for an HCE Select Report.

HCE Customcreates client-defined reports from newly gathered data. HCE Custom gives you access to information not collected in the international HCE surveys. Custom surveys are designed to consider an unlimited number of parameters, positions, and questions.

Participating in the HCE is free of charge. Participants are eligible to receive discounts on all HCE services. As confidentiality is the cornerstone of our business, protecting the reputation and data integrity of the participants is of critical importance. To that end, we only provide results in aggregate format. HVS Executive Search London has recently conducted salary and benefits surveys in the following markets: Asia: SVP Development Athens Brussels Cairo Dubai Europe: - Regional Sales - SVP Development Lisbon & Algarve London

Maldives Mauritius

Middle East:

- SVP Development

- Regional Corporate Office - General Managers at Key Cities Moscow Paris Prague Saudi Arabia Scotland South Africa St. Petersburg Tallinn Tuscany

To purchase a copy of any of these reports or for further information please do not hesitate to contact:

Christopher Mumford Pooja Vir

Managing Director Senior Associate

HVS Executive Search – London HVS Executive Search – London Tel: +44 20 7878 7740 Tel: +44 20 7878 7756

Fax: +44 20 7878 7799 Fax: +44 20 7878 7799 Email: cmumford@hvs.com Email: pvir@hvs.com