2021 Stakeholder Sustainability Report

A MESSAGE FROM OUR PRESIDENT & CEO 2021 SUSTAINABILITY HIGHLIGHTS ABOUT MOODY'S BETTER BUSINESS BETTER LIVES BETTER SOLUTIONS APPENDIX Moody's 2021 Stakeholder Sustainability Report 68 COMPENSATION AND BENEFITS' We believe our investments in compensation and benefits are an investment in our people. We strive for our compensation to be structured fairly, aligned to local markets, driven and differentiated by performance and understood and valued by all. Equal compensation An important part of our compensation philosophy is aligning compensation to local markets. We participate in salary surveys in each of our markets (a market can be considered a country, or a region or industry within a country). Each year, we anonymously submit compensation data for each job, based on job descriptions. An independent consulting firm aggregates and scrutinizes this information to ensure compliance with all data privacy regulations. We receive the aggregated data and analyze our pay rates in comparison with those of the local market. We review our pay structures every year before the annual salary review process, building a range for each salary band in each market. For information on pay equity, see Advocating for equal pay. Benefits We are committed to providing our employees a competitive benefits program designed to care for them and their families - including support for physical, mental and financial well-being. We promote preventive care and awareness and support a healthy lifestyle. Promoting financial wellness and supporting flexible work arrangements are critical to creating a work atmosphere in which people feel valued and inspired to give their best. Our benefits are benchmarked routinely against the market, using industry-specific data. Beyond delivering health, welfare, and retirement benefits and paid vacation and sick days, our benefits are extensive and inclusive, including a flexible work model and work-from-home arrangements. Benefits governance We have three benefits-related committees at the management level: » The Management Benefits and Compensation Committee regularly reviews global benefit plans and proposals; The Appeals Committee has final authority and responsibility for reconsidering benefit determinations when plan participants make a claim; and The Asset Management Committee is responsible for controlling, managing and investing the assets of the U.S. retirement plans. For more information on our policies regarding employee health and well-being, see Additional Resources. OUR EMPLOYEE BENEFITS Benefits offered to employees differ by work location; however, a benefits package can include: >>> Medical >>> Adoption assistance Dental >>> Surrogacy assistance >>> Vision >>> Back-up child and elder care >>> Flexible spending account >>> Commuter benefit plan >>> Health savings account » Club memberships >>> Employee assistance program >>> Parking and transportation allowances Retirement savings / pension termination indemnities >>> Car allowances >>> Meal benefits >>> Life insurance >>> Child care support Short-term and long-term disability insurance >>> Business travel accident coverage Employee referral program >>> Flexible work arrangements Financial planning Paid time off (vacation, personal days, sick leave, marriage leave, child care leave, compassionate leave, study leave, military leave, jury duty leave and holidays) Maternity leave >>> Parental leave Educational assistance >>> Discounted employee stock purchase plan Matching gifts program for charitable contributions >>> Auto and property insurance coverage discounts >>> Long-service awards >>> Free or discounted cultural memberships 1 Refers to employees on Moody's payroll.

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