Brian Cole, Managing Partner, Kaye/Bassman International Corp

1. 1 Kaye/Bassman Confidential01/22/08

2. Compensation and Hiring Trends
Presented by Brian Cole
Managing Partner/Practice Leader, Medical Devices
Kaye/Bassman International, Corp.

3. 3 Kaye/Bassman Confidential
Kaye/Bassman International Corp.
 Established in 1981 in Dallas, Texas
 Largest single-site search firm in
North America
 11th largest Retained Search Firm in
US
 Largest training in the world -
Recruiting training division with over
1,000 clients in 30+ countries
 Alliances: Sanford Rose Associates
65 office network
 Philanthropic: Raised over $1MM
benefiting local Dallas charities since
2001

4. Kaye/Bassman Confidential
Track Record
Brian Cole
 Managing Partner
 Practice Leader, Medical Device practice
 16 years Medical Device experience
 Actively attend more than 10 Medical Device
conferences annually
 Annually attend AdvaMed, JP Morgan
Healthcare Conference, Frost & Sullivan,
Piper Jaffray Healthcare Conference,
Cannaccord
 Mentor and Train both other search
consultants as well as assist clients on “best
practices” as it relates to recruiting, and talent
retention
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Biggest Challenges to
Medical Device Industry
 Med Device tax
 ObamaCare
 Increased Regulation
 The Great Recession

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How do Medical Device
Executives feel about 2014

7. 7 Kaye/Bassman Confidential
Medical Device Outlook

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Management Salary Survey

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Regulatory/Legal Salary Survey

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R&D Salary Survey

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Manufacturing Salary Survey

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Quality Salary Survey

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CompensationTrends
 Salaries
 According to MD&DI, salaries up 5% in 2013.
 We are seeing professionals getting 3-4% raises.
 We are seeing 7-8% increase in salaries when hired. We are very rarely seeing
much over 10%.
 Bonuses
 The bonus percent eligible remains the same, but professionals are obtaining
more of their bonuses.
 Other compensation
 We are not seeing significant changes in other compensation including 401k,
health, dental, options, pension, time off.
 Sign-on bonuses
 Sign-on bonuses have been mostly non-existent since the recession.
 We expect that companies will utilize sign-on bonuses as the war on talent
heats up again.

19. 19 Kaye/Bassman Confidential
Hiring Trends
 Various levels
 Entry level – we do not work at this level, but sources tell us that the number of
entry level professionals remains constant.
 Experienced – this is where most of the demand and this will continue to get
greater.
 Management – we continue to see an increase in Manager and Director
positions open allowing for career growth.
 Executive – continues to be tight as the number of companies declined for the
past several years. This will ease very slowly as new companies form.
 Functions
 Regulatory – continues to be in high demand with no end in sight.
 Quality – will continue to be in high demand until 483 & warning letters subside.
We expect reasonable turnover as companies throw bodies to address the
issues and downsize after issues are resolved.
 Manufacturing – will expect will be steady, but not high demand as companies
continue to offshore and outsource.
 R&D – we expect to steadily increase as companies begin investing again in
development.

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What we are seeing
 Layoffs
 Companies will continue to reduce expenses in order to adjust for challenges.
 M&A will continue and redundant positions will be eliminated.
 We are seeing Sales positions affected the most.
 Other than from M&A, we anticipate the majority of the layoffs are over.
 Growth
 Organic growth was up around 4% in 2013, expected to continue at 4% in 2014
 According to MD&DI survey, FTEs were up 13.2% in 2013
 Investments
 Funding improving in dollars
 We are seeing Round A funded companies again
 There is a lot of money on the sidelines that will have to be invested and the
Medical Device industry continues to be the 4th most funded industry
 Regulatory
 Our sources suggest that the FDA is feeling the strong pushback and becoming
more lenient

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Other
 We continue to see job satisfaction down
 Professionals are being much more cautious about changing jobs
 Geographically
 The bay area is finally rebounding as startups are getting
funding again
 Boston continues to have solid hiring
 Minneapolis continues to be mostly stagnant because of CRM
 With the recent mega merger announcement with
Zimmer/Biomet, Warsaw will certainly suffer job losses in
2015
 PA

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Contact
Brian Cole
Managing Partner
Practice Leader, Medical Devices
bcole@kbic.com
972.961.4772 - direct
972.922.5663 – mobile
Kaye/Bassman International Corp.
19111 North Dallas Parkway | Suite 200
Dallas, Texas 75287
972.931.5242 | www.kbic.com