2021 SUSTAINABILITY HIGHLIGHT REPORT: Forward As One 20 SOCIAL: EMPLOYEES FUTURE OF WORK: PLACE + PURPOSE = PERFORMANCE COMPENSATION PRACTICES Since the COVID-19 pandemic began, the safety and well-being of our employees has been our top priority The past two years have shown us that employees can have positive experiences, maintain relationships and connections and deliver business results even when they’re not working full time in an office location Our leaders and employees work together to align the purpose of their work with the best place to perform it Our “place of purpose” approach fosters a flexible and inclusive culture focused on our people and the incredible work they do every day—no matter where they’re working At The Hartford, we operate through a pay-for- performance approach, meaning that rewards— including base pay actions and bonus—are allocated based on both company and individual employee performance each year To be competitive, our base pay ranges are centered on the range of pay determined by the external market for each job while rewards are allocated based on company and individual employee performance annually through merit, long-term incentives and bonus Each year compensation survey data is collected from independent third-party sources Our Human Resources team uses the data to validate, analyze and determine the “market” or external pay range for individual jobs to keep an annual pulse on market trends and confirm that our base pay is competitive The Hartford responded to pay transparency legislation instituted within multiple states in 2021, by disclosing base pay ranges across the U S both internally and externally As of October 1, 2021, employees can see their base pay position to a market descriptor in our Workday system and we provide the same level of transparency on all of our job postings Our decision to adopt a compliant, transparent and equitable approach aligns with our talent strategy of attracting and retaining top talent regardless of physical location This approach also ensures consistent experience and builds credibility, reputational benefit and trust with employees and the external market We have many formal and informal channels through which employees can provide feedback and raise concerns regarding compensation practices Employees may speak with their manager or another leader, contact our Employee Relations team, anonymously report concerns through third-party service provider, EthicsPoint, or provide feedback via employee surveys Feedback channels are supported by The Hartford’s Retaliation-Free Workplace Policy
The Hartford Financial Sustainability Report Page 19 Page 21