1995 merit salary increases at lowest level in six years.

NEW YORK--(BUSINESS WIRE)--June 6, 1995--A nationwide survey of 1995 merit salary increases among U.S. companies shows that merit increase budgets are at a six-year low.

The survey, conducted by consultants Towers Perrin, indicates that this year's increases are at least four-tenths of a percentage point below planned 1995 increases, and two- to -three tenths below 1994 figures.

According to the survey, responding companies had initially planned to boost merit pay slightly over 1994 levels. But it appears that caution took over when companies faced final decisions about 1995 budgets. -0-

                     Average Merit Budgets

              Actual    Planned   Actual    Actual     Actual   Actual
               1995      1995      1994      1993       1992     1991

Top Mgmt.(1)   3.6%       4.1%     3.9%      4.2%       4.5%     5.0%
Exempt(2)      3.6        4.0      3.8       4.2        4.5      4.9
Nonexempt(3)   3.5        3.9      3.8       4.1        4.4      4.8
CPI            3.1(proj.) ---      2.6       3.0        3.0      4.2

(1)  Defined as key management personnel/decision makers within an
organization.
(2)  Defined as middle management personnel, professional staff,
technical staff.
(3)  Defined as salaried clerical or administrative employees or
other hourly employees eligible for overtime pay.

    While employers' caution may seem somewhat surprising, given the
strong financial results reported across many industries nationwide,
the data are consistent with a general trend of tight and ongoing
cost control in all areas of employment, said Susan Rowland, a Towers
Perrin principal.  "Viewed in this context, holding down salary
increases is part of a broader effort to streamline and maintain
peak efficiency and profitability regardless of economic conditions,"
she noted.
    "Moreover," Rowland continued, "while the actual increase for
employees may seem low, it is above the year's projected inflation
rate of just over three percent.  Thus, employees in companies
participating in the survey haven't really experienced an erosion in
their purchasing power."
    The survey of 1,383 companies was conducted in February and
March of 1995.  Respondents represented 52 different industry
groups, with annual sales ranging from $100 million to more than
$10 billion.

Trends By Industry/Region

    Exhibits 1 and 2 show merit budgets by industry and region.
Industry differences are most pronounced, and generally reflect both
current economic conditions within the industry and the supply and
demand for specific skills sets.  "The aeronautics industry, for
example, is experiencing a downturn now," said Rowland, "due largely
to tightened military spending, and this is affecting the size of
its merit budgets.  Conversely, the computer industry is in a growth
mode and has set higher budgets this year."

Trends by Profitability

    "Budgets also reflect profitability," Rowland continued.  "But
while the more profitable companies tend to set higher budgets, even
those with negative or zero return on equity (ROE) are budgeting
increases above the projected CPI.  This seems indicative of the
value business is placing on people as critical to success." (See
Exhibit 3).
    Towers Perrin is one of the world's largest management
consulting firms.  It helps organizations manage their investment in
people, advising them on human resource management, employee
benefits, risk management, compensation and communication as well as
overall strategy and organizational effectiveness.  Headquartered in
New York City, the firm has approximately 5,200 employees and
offices in 73 cities worldwide.

Salary Structure Adjustments

Actual Planned Actual Actual Actual Actual

1995 1995 1994 1993 1992 1991

Top mangment 1.9% 2.7% 2.6% 2.8% 3.2% 3.6% Exempt 2.2 2.7 2.5 2.8 3.2 3.6 Non-exempt 2.1 2.6 2.4 2.7 3.0 3.5

Exhibit 1

1995

Merit Increase Budgets

Trends by Industry

Average Merit Increase Budgets

Top Management Exempt Nonexempt

Aerospace 3.5% 3.3% 3.4% Automobiles/related products 3.9 4.0 3.7 Chemicals/allied products 4.2 4.0 3.9 Computers/related products 3.9 4.2 4.1 Consumer foods & beverages 3.9 3.6 3.6 Consumer products 3.5 4.0 3.6 Diversified  3.6 3.8 3.8 Education services 2.5 2.8 2.6 Electronic equipment 3.6 3.8 3.7 Fabricated metal products 4.1 3.8 3.6 Financial institutions 3.7 3.7 3.7 Hospitals & health services 3.4 3.3 3.0 Insurance 3.9 4.0 4.0 Machinery 4.0 3.7 3.7 Manufacturing 3.4 3.6 3.5 Media publishing 4.1 3.8 4.3 Not for profits 3.1 3.3 3.3 Pharmaceuticals 4.0 3.9 3.8 Retail 3.2 3.5 3.6 Transportation services 3.1 3.4 3.2 Wholesale trade 3.6 3.7 3.6 Utilities 3.1 3.2 3.0

Exhibit 2

1995 Merit Increase Budgets

Trends by Region

Average Merit Increase Budgets

Top Management Exempt Nonexempt

Region 1 3.8% 3.8% 3.8% Region 2 3.3 3.7 3.6 Region 3 3.6 3.5 3.3 Region 4 3.7 3.6 3.5 Region 5 3.6 3.9 3.8 Region 6 3.5 3.5 3.5 Region 7 4.5 3.8 3.9 Region 8 3.7 3.7 3.4 Region 9 3.6 3.6 3.4 Region 10 4.5 3.8 3.5

Region 1: Connecticut, New Jersey, New York Region 2: Maine, Massachusetts, New Hampshire, Rhode Island, Vermont Region 3: Delaware, Maryland, Pennsylvania, Virginia, Washington D.C.

West Virginia Region 4: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,

Mississippi, North Carolina, South Carolina, Tennessee Region 5: California, Hawaii Region 6: Alaska, Idaho, Montana, North Dakota, Oregon, South

Dakota, Washington Region 7: Arizona, Colorado, Nevada, New Mexico, Utah, Wyoming Region 8: Oklahoma, Texas Region 9: Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio,

Wisconsin Region 10: Kansas, Missouri, Nebraska

Exhibit 3

1995 Merit Increase Budgets

Trends by Profitability

Average Merit Increase Budgets

ROE  Top Management Exempt Nonexempt

Negative or Zero 3.3% 3.3% 3.3% 1% - 5% 3.5 3.6 3.5 6% - 10% 3.5 3.6 3.5 11% - 15% 3.7 3.8 3.2 16% - 20% 3.4 3.5 3.5 Above 20% 3.8 4.1 3.7



CONTACT: Towers Perrin

David Fridling, 914/745-4179