Compensation

At Merck/MSD, we pay for performance. Our Total Rewards compensation programs (base pay, shortand long-term incentives, as well as rewards and recognition) are anchored by a pay-for-performance strategy that's competitive, comprehensive and integrated with employee benefits. The offerings emphasize company-wide excellence and individual development, enabling you to grow as an individual while we grow as a company.

Rewards and Recognition Applies To:

In addition to our Total Rewards programs (base pay, short and long term incentives), the Merck Rewards and Recognition program was designed to allow managers to both recognize and reward exceptional performance. Recognition encourages people to reach their full potential and ensures they feel valued- it fosters the actions that are at the very heart of Merck's continued business success.

As we continue our efforts to harmonize the Rewards and Recognition programs, employees may continue to receive awards under their legacy company program. Managers select a recognition program based of the recipient's legacy company.

Appreciation at Merck

Shining Performance

The Recognition framework can be adapted for Merck organizations outside of the U.S. Local process and administration varies by country, please refer to the Global Recognition Process Guide for instruction. For support in awarding employees outside of the U.S., please reach out to your HR Business Partner.

Recognition Home Page

Click below to navigate directly to: Appreciation at Merck Shining Performance

Service Awards

Appreciation at Merck Applies To:

Whether it's a simple thank you, a gift, or a monetary award, Appreciation at Merck can help create an environment where people know their achievements are recognized.

Merck's Recognition Framework consists of four levels of cash and non-cash awards that recognize a specific event or accomplishment above and beyond what's expected in an individual's job. For more detail around specific award levels and amounts, eligibility, approval requirements, types of awards, etc. refer to the Appreciation at Merck Summary Grid.

As a reminder, all managers initiating recognition award should consult with recipient's direct manager to ensure concurrence (i.e. meets objectives, good performer, etc.)

Process Submission and payment execution varies by award level:

Award Level Award for Excellence

Submission Process Expense Management System

Form

Award for Excellence Process Guide

Special Achievement Division Staff Award Director's Award

Appreciation at Merck Form Appreciation at Merck Form

Global Awards Appreciation at Merck can be adapted for Merck organizations outside of the U.S.

Local process and administration varies by country, please refer to the Global Recognition Process Guide for instruction. For support in awarding employees outside of the U.S, please reach out to your HR Business Partner.

Redemption Awards for Excellence are redeemed via Expense Management System. All other awards are processed through recipient's local payroll and will arrive in the employee's monthly paycheck.

Recognition Home Page

Click below to navigate directly to: Appreciation at Merck Shining Performance

Service Awards

Shining Performance Applies To:

The Shining Performance program provides an easy-to-use method for recognizing the achievements and contributions of others. Under the Shining Performance program, employees can be recognized and/or recognize others for a variety of contributions toward building and improving Merck.

The Shining Performance program allows recipients the opportunity to earn award points redeemable toward merchandise, gift certificates, etc. Employees can be rewarded at one of five levels, determined by the degree of contribution made to their department, business unit or to the Company as a whole. Points are deposited into an award account as they are earned and can accumulate over time. The program also allows cash to be awarded at specific award levels. For more detail around specific award levels and amounts, eligibility, approval requirements, types of awards, etc. refer to the Shining Performance Summary Grid.

Global Awards

The following countries participate in Shining Performance: Argentina, Brazil, Colombia, Ecuador, Malaysia, Mxico, Panam, Per, Puerto Rico, Venezuela, Turkey.

Process Processing and submission of awards varies by awarding Managers' legacy company:

Manager's Legacy Company Legacy Merck

Submission Process Shining Performance Form

Guidance Merck Manager Recognition Process Guide

Legacy Schering-Plough

Shining Performance Website

Schering Manager Recognition Process Guide

Support Legacy Merck Shining Performance Mailbox

To Access Shining Performance Legacy Schering Plough Employees: Enter Sphere. Click on the Shining Performance icon to enter the system. Here you can submit an award and redeem award points.

Recognition Home Page

Click below to navigate directly to: Appreciation at Merck Shining Performance

Service Awards

Service Awards Program Applies To:

In appreciation of loyalty evidenced by continued service, the Company will provide appropriate service awards. The Company appreciates continued service and recognizes important milestones in each employee's career.

Milestone awards will be presented at 5 year intervals beginning with the employee's 5th anniversary.

All questions related to the Service Award Program should be directed to the HR Service Center 1-866Merck-HD (1-866-637-2543).

Recognition Home Page

Click below to navigate directly to: Appreciation at Merck Shining Performance

Service Awards

Long-Term Incentive
The Long-Term Incentive (LTI) Program is an important component of the Total Rewards package of compensation and benefits at Merck and provides an opportunity for employees to share in the companys long-term success by becoming a shareholder in the company.

Our Total Rewards guiding principles reflect our goals of being competitive with other toptier organizations in the market, and of offering compensation and benefits that engage and motivate our people. In accordance with these principles, the LTI Program promotes a payfor-performance culture and builds long-term shareholder value by:

Ensuring that LTI Program awards are provided to a limited group of employees with the highest performance, demonstrated leadership and potential Aligning employees interests with shareholders interests.

To learn more about the long-term incentive program, please click on the links below.

2011 Annual Grant Information Your guide to annual grant information including the plan documents, term sheets, conversion examples, calculator and other important resources

2011 Quarterly Grant Information Your guide to quarterly grant information including the plan documents, term sheets and other important resources

View My Stock Grant History Your source to view your current year stock grant and stock grant history

An Overview of Mercks LTI Program Your source for information regarding Mercks LTI program

Broker / Administrator Your source to access Morgan Stanley Smith Barney and Wells Fargo

Historical Grant Information Your source to access historical plan documents, term sheets and other important resources

Annual Incentive Plan

The Annual Incentive Plan (AIP) is designed to provide a cash award to eligible employees and is a key component of the Total Rewards package at Merck/MSD. In accordance with our Total Rewards guiding principles, the AIP promotes a pay-for-performance culture by: Ensuring employees can receive larger awards in years when the Company and divisions/functions exceed their annual performance goals. Making Individual Performance the determining factor for award payouts that provide for greater differentiation between employees with higher and lower relative Individual Performance. Aligning the AIP to shareholder interests the total amount available to pay AIP Awards is directly tied to Company and division/function results.

To learn more about the AIP, please click on the links below. (Note: All AIP resource material will be updated and posted in advance of the year-end Total Compensation Planning awards cycle.) AIP Brochure: Intended to provide a high-level overview of the Annual Incentive Plan (alternatively referred to as the AIP or the plan), as well as the Terms and Conditions for participation. (11 Available Languages) AIP Modeler: An interactive Web-based tool to help you understand how the components of the AIP formula affect your award. Use this tool to better understand how the AIP formula works by modeling the impact of different levels of hypothetical Company, Division/Function and Individual performance. (11 Available Languages)