Seminar Human Resource Management (HR 491) Position Paper

STEVEN H. HALL

Computer Science Corporation a Global Leader in Technology

Park University of Alexandria, Virginia

5 December 2010

2

TABLE OF CONTENTS

Page

Introduction . . . . . . . . . . . . . . . . 3

Body . . . . . . . . . . . . . . . . . . 4

Competitive Advantage . . . . . . . . . . . . 4

Change Management . . . . . . . . . . . . . . 5

Diversity Management . . . . . . . . . . . . . . 7
Recruitment and Selection. . . . . . . . . . . . . 9

Compensation and Benefits . . . . . . . . . . . . 11

Organizational Climate . . . . . . . . . . . . . 12

Conclusion . . . . . . . . . . . . . . . . . 13

Cited References . . . . . . . . . . . . . . 15

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INTRODUCTION

This position paper explains how and why Computer Science

Corporation (CSC) is global leader in providing technology

solutions and services through three primary lines of business:

(1) Business Solutions and Services; (2) Global Outsourcing and

Services; (3) North American Public Sector.

CSC capabilities include systems design and integration,

information technology and business process outsourcing,

applications software development, Web and application hosting,

mission support and management consulting. The headquarters is

located in Falls Church, Virginia and has approximately 91,000

employees and reported revenue of $19 billion for year end

October 2009. I completed my research of CSC’s from my personal

working experience as an employee of CSC from March 2007 through

June 2009. To learn more about CSC just visit online at

www.csc.com.

BODY

My research justifies that CSC is a successful organization

regarding the analysis of Competitive Advantage, Change

Management, Diversity Management, Recruitment and Selection,

Compensation and Benefits and Organizational Climate of CSC.

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4

Competitive Advantage

A Point of View
With shareholder growth on everyone’s agenda these days, Customer Relationship Management (CRM) is making a comeback. After riding the hype cycle throughthe technology bubble years, CRM endeavors have felt the wrath of corporateexecutives for the last several years. News of numerous failures of technologiesand initiatives made its way into the corporate halls of sales and marketing and themarket for CRM services came to a crashing halt. Only recently have organizationsbecome serious again about connecting with customers.To get it right this time around, organizations must start by looking at customerdata — what is being collected, stored and accessed. In the early CRM initiatives,too much emphasis was placed on automating customer contact points and notenough on enhancing organizational knowledge about the customer and determininghow to deliver added value to the relationship.
Customer intelligence is a critical capability for all companies in order to formmore profitable customer relationships. It involves three key capabilities thatorganizations must master in order to achieve competitive differentiation: integrating customer information to create a “single view” of the customer,analyzing customer information to derive insights, and implementing theinsights into the customer-facing operations of the organization.
The Customer Intelligence Maturity Model
The commoditization of products and offerings has placed an increased emphasis on service as a leading differentiator for the customer experience, and proactiveservice has emerged as a driver of loyalty due to the perceived advantage of asupplier saving a customer time in recognition and resolution of problems or events.
These factors, combined with a more strategic analytical focus have created the evolution of CRM to customer intelligence. Customer intelligence requires a company to understand the needs and habits of its customers and to be equipped to action them in a manner that adds value to the customer experience. Based on a recent survey,
• Customer Information Integration
• Customer Insights: Segmentation and Modeling
• Customer Insights Operationalization
The Roadmap
The greatest value of the maturity model is its use to assess where an organization currently ranks in customer intelligence capabilities, plotting where it wants to be and then identifying the gaps. Gap fulfillment strategies become the basis for a customer intelligence roadmap. For an ideal approach to developing plans and strategies for implementing customer intelligence capabilities, companies should consider the following steps:
A Requisite for Growth
A recent survey of the Fortune1000 confirms our findings inc working with leading companies in a broad array of industries: customer intelligence is a requisite for companies to meet their growth strategies.Customer-centered growth requires information that can only be assembled andtransformed into knowledgeusing capabilities in informationmanagement, analytics andprocess management. Manycompanies have implemented some form of CRM but they have not figured out how to develop advanced capabilitiesin these three dimensions ofcustomer intelligence. Until they do, they risk falling behind the competition.MER INTELLIGENCE
• Customize the customer intelligence model for the industry in which the company operates to create a “best practices” benchmark
• Perform a current assessment of customer intelligence by ranking internalcapabilities on the maturity model
• Benchmark competitors and show where they rank on the maturity model
• Synthesize this information and determine where the organization needs tobe on the maturity model
The benefits of combining best practice and competitive analysis are compelling.
Best practice analysis alone, while helpful, does not address the market dynamics in which a company operates. Industries vary tremendously on their adoption of customer strategies. Combining the best practice and competitive practice analysis provides greater clarity for the organization that needs to decide where to make its strategic investments.
For more information on customer intelligence, please contact Alex Black

http://assets1.csc.com/management_consulting/downloads/CI_CSC_Information_is_the_Foundation_for_Competitive_Advanta

ge.pdf

http://www.csc.com/global_alliances/alliances/33989-rsa

Change Management
Times of transition and change lead to a host of potential pitfalls and challenges that must be navigated carefully in order to ensure the future success of your business.
Every business change is unique. Leading an organization toward a new operating model with minimal business disruption and without impacting business continuity requires in-depth understanding of the organization and the forces that affect it, a solid change management plan, the right tools and a committed team of change management experts to lead the organization toward the new reality.
At CSC, we have the methodology and expertise, the tools and the people to make sure your organization stays firmly on course during times of upheaval and change. Together, we take your business toward a successful future.
A proven methodology that is well integrated into the overall project methodology and that can be scaled according to company needs. • Focus on delivering increased efficiency and cost reduction without impacting business continuity. • Actively support and coach the business to achieve set project goals. • A disciplined approach that is focused on ensuring end-user self-reliance. • An end-to-end project approach until the stabilization phase.

Why CSC

Our proven methodology provides a solid foundation for change throughout all facets of your business. CSC can help you activate these 5 key drivers of change: • A dedicated change management team – to take care of all change management activities – from diagnostic and change readiness to communication, leadership support and stakeholder management, organizational design and deployment to training and documentation. • An end-to-end approach – that takes care of all change management activities, from project preparation right through until stabilization after go-live. • Bridging business and IT – to ensure permanent alignment, consistency and continuity of your business during times of change. • Seamless integration – by developing a change management approach that respects the company culture and incorporates lessons learned from previous projects, also in a geographically dispersed organization, and that involves key people from the standing organization early on - all to ensure future success. • A disciplined approach aimed at all levels of the organization – that supports managers and staff in the transition to the desired model, focusing on mobilization, end-user self-reliance and building a path for continuous improvement.

http://www.csc.com/be/ds/11403/13241-organizational_change_management

http://www.csc.com/public_sector/ds/11237/12858-gsa_schedule_874_mission_oriented_business_integrated_servic

es_mobis_gs_23f_8029h

Diversity Management

CSC’s Jeannie Maul Among Women Worth Watching in 2011

announced today that Jeannie Maul, vice president of World Sourcing Capabilities for its Managed Services Sector line of business, was listed among the “Women Worth Watching in 2011” by Diversity Journal. Maul was recognized for her outstanding leadership, dedication to diversity and being a mentor.
“I have been extremely fortunate to have worked with talented individuals through formal and informal mentors who have taught me the value of integrity, collaboration, tenacity, challenging the status quo, and importantly, to have fun,” said Maul. “I strive to be a mentor who can inspire all employees to never set limits in their career goals. Mentoring programs are core to accelerating workplace diversity and career advancement. Make a personal commitment to mentor. Paying it forward is to touch the lives of others, and have a positive influence be your legacy."
Maul also offers advice on finding a mentor: “Don’t wait for someone to come to you. Don’t wait for someone else to design a formal mentor program. Look inside and outside of your organization group, and pick someone you connect with and get started.”
“Diversity and mentoring are key factors in developing leaders at CSC, and I’m delighted that Jeannie’s contributions and leadership in these areas have been recognized so prominently,” said Russ Owen, president of CSC’s Managed Services Sector. “Jeannie’s success reflects an environment and culture at CSC that provides opportunity, encourages initiative, values diversity and rewards merit. I know of no better way for talented individuals to realize their full potential — and for our company to continue to grow and succeed.”
Maul joins 123 other leading businesswomen from around the nation who were nominated by their colleagues, peers and mentors based on their initiative and achievements. Each year, select companies are invited to nominate one of their senior women executives for this recognition.
Maul joined CSC in 1997 and has held several senior positions in the company. She holds a bachelor’s degree in management information systems from Widener University, a Project Management Institute (PMI) Certification from the University of California, Irvine, an ITIL Foundation Certification from the EXIN Institute, and Six Sigma Green Belt Certification from the Juran Institute.

http://www.csc.com/newsroom/press_releases/55333-csc_s_jeannie_maul_among_women_worth_watching_in_2011

http://www.csc.com/newsroom/press_releases/37325-csc_wins_award_for_diversity_and_inclusion_responsibility

Recruitment and Selection

CSC Referral Awards Program

All CSC employees are eligible to submit an employee referral, and your referral can be for any CSC business unit throughout the company. Referral awards are offered only for new hires to organizations that participate in the Referral Awards Program. The CSCAnswers Help Desk (1.877.612.2211–toll free) can help you determine if the hiring organization is a member of the program.
To be eligible for an employee referral award, your candidate must be hired into a regular, full-time position. Your referral is valid for 365 days from the time it is received. If your candidate is not hired, you may resubmit his or her resume; new positions open up often.
You are not eligible for a referral award if one of the following applies:
You make a referral to an organization that does not participate in the program.
You work in a Human Resources recruiting or staffing role.
You have reached the director level or above at the time the referral is made.
You are directly or indirectly involved with the hiring decision.
The candidate will be reporting to you.
Your candidate is a member of your immediate family or that of a current applicant pending employment with CSC.
Your candidate is a current CSC employee or is a former employee who has been separated from CSC within the last 12 months.*
Your candidate is a current or former CSC contractor or was transferred to CSC as an employee of a predecessor company.
Your candidate works as a contractor or contingent worker providing services to CSC or is employed by a CSC client company.

*Former CSC employees who left CSC more than 12 months ago may qualify as referral candidates.
How We Reward You
Employees earn cash awards. The new hire's business unit determines the award amount and the payment schedule.
Awards are processed approximately two pay cycles after the waiting period. You must be in an active status after the waiting period expiration. Recruiting awards are taxable income, and taxes are withheld at the time of payment.

CSC Human Resources Management Policy — HRMP 217

Subject: Global Recruiting Awards Policy Effective October 31, 1987 Revision No. 2 Effective September 1, 2002
1. Policy
1.1 It is the policy of Computer Sciences Corporation to grant recruiting awards to eligible CSC employees for referring candidates who are subsequently hired to fill regular full time vacancies within CSC.
2. Applicability
2.1 Regardless of geographic location, all regular, temporary, and casual CSC employees as defined within Human Resources Management Policy 204 are eligible to receive recruiting awards in accordance with the provisions of Sections 4.1, 4.2 and 4.3 below, except that:
2.1.1 Presidents, Vice Presidents, Directors, and CSC employees serving in a staffing or recruitment capacity at the time they make a referral are ineligible to receive recruiting awards.
2.1.2 A CSC employee who is directly or indirectly involved with the decision to hire a referral candidate is not eligible to receive recruiting awards.
2.2 If any provision of this Policy directly conflicts with any applicable country law, regulation or labor agreement, the applicable law, regulation, or labor agreement will supersede that section or provision. The remainder of this policy will remain in effect.
4.1 Referral Procedures and Conditions
4.1.1 A CSC employee from any CSC business unit may submit a referral candidate to any CSC business unit. A CSC employee referring a candidate must document their referral according to the prescribed procedures established by the CSC employee’s business unit or its supporting Human Resources Service Delivery Organization.
4.1.2 A CSC employee referring a candidate must submit referral documentation to their business unit or its supporting Human Resources Service Delivery Organization prior to any interview with the referral candidate. Referral documentation that is received by CSC from the referring CSC employee after CSC has interviewed the referral candidate will be invalidated.
4.1.3 A referral is valid for a period of 365 days from the date the referral documentation is received by a business unit or its supporting Human Resources Service Delivery Organization.
4.2 Payment of Awards
4.2.1 The referring CSC employee and the referral candidate must both be CSC employees at the time the recruiting award is issued for payment.
4.2.2 Recruiting awards are paid in full and are issued within two payroll periods following the date the referral candidate reports to work. This payment period is the company standard. However, each business unit human resources executive may authorize and vary the payment schedule based on local operational or supporting Human Resources Service Delivery Organization requirements. Recruiting awards paid to CSC employees are taxable income and taxes will be withheld at time of payment.
4.2.3 Only one recruiting award will be paid for each referral candidate. In the event that two or more CSC employees refer the same candidate the recruiting award will be paid to the CSC employee named as the referral source by the referral candidate.
4.3 Recruiting Award Amounts
4.3.1 Recruiting award amounts for eligible CSC employees may be established by each business unit consistent with business unit objectives, recruitment needs, and available financial resources, but not to exceed two thousand U.S. dollars or its equivalent in non U.S. currency. Exceptions must be submitted in writing to Corporate, Employment Relations to obtain approval from Corporate Vice President of Human Resources.
5. Exceptions
5.1 Exceptions to this policy require the prior approval of the Corporate Vice President of Human Resources.

http://assets1.csc.com/careersus/downloads/11837_1.pdf

http://assets1.csc.com/financial_services/downloads/prAMP_100726.pdf

Compensation and Benefits

CSC COMPLETES INTERNAL INVESTIGATION OF STOCK OPTION GRANTS

EL SEGUNDO, Calif., Feb. 28 -- Computer Sciences Corporation (NYSE: CSC) today announced the completion of the company's internal investigation of its stock option grant practices. As previously announced, in response to investigations of CSC's option grant practices by the Securities and Exchange Commission and the United States Attorney's Office for the Eastern District of New York, the company's Board of Directors on July 29, 2006, established a special committee, comprised of the two most recently elected independent directors (the "Special Committee"), to manage and supervise the internal investigation, and to report the results of its investigation to the independent members of the Board of Directors. Upon receipt of the results of the investigation, the independent directors made conclusions required to address the issues raised by the investigation.

Together with its independent counsel and forensic accountants, the Special Committee conducted an extensive review of stock option grants made by the company between March 1, 1996, and July 31, 2006 (the "Relevant Period"), which covered 13,564 grants made on 520 dates. The Special Committee cooperated with the SEC and the U.S. Attorney throughout this process.

The company's independent directors concluded that the evidence obtained by the Special Committee's investigation, as well as by their own interviews of certain current and former employees, did not establish any intentional wrongdoing by current or former employees or directors, and the independent directors continue to have confidence in the integrity of management. The company believes that the adjustments to its consolidated financial statements resulting from the Special Committee's investigation are not material in any period.

Based on the report of the Special Committee, the independent directors determined that 9,234 stock option grants should be modified, principally due to delays in authorization and approval and the absence of definitive documentation, including: • 540 stock option grants made on five dates between May 9, 1996, and June 13, 2002, which should have been accounted for as repricings of prior stock option grants, 527 of which require variable accounting until April 1, 2006, when the company adopted Statement of Financial Accounting Standards (SFAS) No. 123R, “Share-Based Payment”;

• 3,906 other stock option grants made on 108 dates between April 9, 1996, and April 3, 2006, for which the measurement date should be changed to a later date on which the closing stock price was higher, requiring additional compensation expense; and

• 4,788 other stock option grants made on 71 dates between April 1, 1996, and July 10, 2006, for which the measurement date should be changed to a later date on which the closing stock price was lower, requiring no additional compensation expense.
The incremental cumulative non-cash compensation expense, before taxes, from March 1, 1996, through December 29, 2006, related to stock options will be approximately $68 million, including approximately $30 million attributable to the repricings requiring variable accounting. This $68 million (approximately $59 million after taxes) will be allocated among the last 11 fiscal years and last three fiscal quarters as follows:

|Fiscal Year Ended |Pre-Tax Expense (in millions) |

|March 29, 1996 |$0.0[pic] |
|March 28, 1997 |$0.4[pic] |
|April 3, 1998 |$1.8[pic] |
|April 2, 1999 |$3.2[pic] |
|March 31, 2000 |$8.7[pic] |
|March 30, 2001 |$2.8[pic] |
|March 29, 2002 |$16.8[pic] |
|March 28, 2003 |$(6.5) |
|April 2, 2004 |$14.1[pic] |
|April 1, 2005 |$8.4[pic] |
|March 31, 2006 |$20.7[pic] |
|Fiscal Quarter Ended | |
|June 30, 2006 |$(0.2) |
|September 29, 2006 |$(1.3) |
|December 29, 2006 |$(0.8) |

The company also determined that the tax benefits associated with the exercise of certain stock options in foreign jurisdictions had been incorrectly credited against the foreign tax provision, rather than additional paid-in capital. The company further determined that it had applied the effective rate, rather than the U.S. statutory rate, in recognizing the tax benefits associated with the exercise of stock options in the U.S. Correction of these two tax errors will result in an incremental cumulative tax provision of approximately $14 million, which is included in the previously stated $59 million incremental cumulative after-tax compensation expense through December 29, 2006.

When the company files its consolidated financial statements for the fiscal quarter ended September 29, 2006, and all subsequent periods, it will restate the consolidated financial statements for prior periods included therein to record these adjustments to compensation expense and related items. Since the company believes that these adjustments are not material to its consolidated financial statements for any period, it does not plan to separately amend any of its Annual Reports on Form 10-K or Quarterly Reports on Form 10 Q to reflect the adjustments.

Unless otherwise indicated, all references hereafter to years are to calendar years.

Background

During the Relevant Period, CSC granted stock options to two categories of employees: • the Chief Executive Officer, Chief Operating Officer, each of their respective direct reports and each other employee who is an "officer" for purposes of the Securities Exchange Act of 1934 (collectively, "Senior Executives"); and

• all other employees (collectively, "Other Employees").
Option grants to Senior Executives were approved by the Compensation Committee or the Board of Directors. Approvals for option grants to Other Employees were delegated to the Chief Executive Officer or, after July 1999, in the case of option grants of 5,000 shares or less, to the Corporate Vice President, Human Resources. The company did not grant stock options to its independent directors.

Option grants during the Relevant Period can be grouped into three general categories: • "Annual Cycle Options," which were granted as part of the annual compensation review process each year;

• "Discounted Options," which, on and prior to May 12, 2004, were granted on the Annual Cycle Option grant date in lieu of a cash bonus, and which typically had an exercise price per share equal to 25% of the closing market price of the company's common stock on the grant date; and

• "Other Options," which primarily include options granted to new hires (including to employees acquired through acquisitions and outsourcings) and for promotions and special recognition.
Of the 13,564 option grants made by the company during the Relevant Period, (i) 9,134 were for Annual Cycle Options, (ii) 262 were for Discounted Options and (iii) 4,168 were for Other Options. The option grants in each category were reviewed to determine the first date upon which the identity of the optionee, the number of shares subject to the option grant and the option exercise price were determined with finality (the "measurement date"). The following describes the option grants for which the independent directors determined that the measurement date should be a date other than the grant date.

Annual Cycle Options

Annual Cycle Options Granted to Senior Executives.
The independent directors have concluded that there is evidence that the Annual Cycle Options granted to Senior Executives in 1996, 1999 and 2002 may each have had two measurement dates: (i) the first occurring on the date of an initial action to select the optionees, the number of option shares and the grant date closing stock price to be used for the exercise price, and (ii) the second occurring on the date of a subsequent action, within 10 days, to select a later grant date closing stock price to be used for the exercise price. Therefore, the company has determined that the aggregate 54 Annual Cycle Option grants to Senior Executives on May 9, 1996, May 10, 1999 and June 13, 2002, should be accounted for as a repricing of options for which a measurement date had previously been established on May 6, 1996, May 3, 1999, and June 3, 2002, respectively. Generally accepted accounting principles in effect at the time require a change from fixed to variable accounting for the 1999 and 2002 repricings, but not for the 1996 repricing. The incremental cumulative non-cash compensation expense before taxes from March 1, 1996, through December 29, 2006, related to accounting for these Annual Cycle Option grants to Senior Executives as repricings will be approximately $10 million.

Annual Cycle Options Granted to Other Employees.
In each of the years from 1996 through 2005, there were changes, after the grant date, in the list of Annual Cycle Options to be granted to Other Employees. Therefore, the measurement date for all of the 7,562 Annual Cycle Options (excluding the 260 French grants discussed below) granted to Other Employees in those years will be changed to be the first date upon which the list was determined with finality. Of these grants, 3,891 had a lower closing stock price on the new measurement dates than on the related grant dates, which will not result in any additional compensation expense. The remaining 3,671 grants will, however, except as set forth below, result in additional compensation expense amortized over the vesting period.

The new measurement date for the 2001 Annual Cycle Options granted to Other Employees will result in a repricing requiring variable accounting. On October 29, 2001, the company commenced an exchange offer (the "2001 Exchange Offer") pursuant to which employees could elect to cancel unexercised options with an exercise price per share of $70 or more in exchange for new options. The 2001 Exchange Offer was specifically designed so that no employee eligible to participate was granted any options during the period beginning six months before the commencement of the 2001 Exchange Offer and ending six months after the option cancellation date. Although the grant date of the Annual Cycle Options granted to Other Employees in 2001 precedes the 2001 Exchange Offer commencement date by more than six months, the new measurement date of these Annual Cycle Options does not. Consequently, certain of these options will be treated as a repricing of options held by the same optionee which were cancelled in the 2001 Exchange Offer. The remaining 2001 Annual Cycle Options which are not treated as a repricing will also result in additional compensation expense, since the new measurement date had a higher closing stock price than the grant date. The incremental cumulative non-cash compensation expense before taxes through December 29, 2006, related to changing the measurement date of the 2001 Annual Cycle Options granted to Other Employees, and accounting for such options as a repricing will be approximately $21 million, including approximately $19 million attributable to variable accounting.

By 2006, the company had revised the annual grant process, and the measurement date of the Annual Cycle Options granted to Other Employees on May 22, 2006, is the same as the grant date.

The foregoing description excludes all Annual Cycle Options granted to Other Employees subject to French taxes ("French Options"). The company has a French sub-plan pursuant to which it grants French Options addressing French tax consequences. One of the requirements for these options is that they not be granted during a "closed period," as defined under French tax law. Until recently, the company understood that the closed period included, among other periods, the 10-trading day period before and after the company made a material announcement. Since the company did not determine the grant date of French Options until it had confirmed that no material announcement was made during the following 10 trading days, the measurement date for all of the 260 French Option grants made during the Relevant Period will be changed. The company currently believes that the closed period does not include the 10-day period after a material announcement (other than an earnings release or the filing of a Form 10-K or Form 10 Q).

The incremental cumulative non-cash compensation expense before taxes from March 1, 1996, through December 29, 2006, related to Annual Cycle Option grants to Other Employees, including the $21 million relating to the 2001 Annual Cycle Options discussed above, constitutes approximately $47 million of the total $68 million incremental cumulative non-cash compensation expense before taxes.

Discounted Options and Restricted Stock

The company has identified 105 Discounted Options granted on four dates between May 3, 2000, and May 12, 2004, in which the identity of the optionee or the number of shares underlying the option was not determined with finality until after the grant date. The incremental cumulative non-cash compensation expense before taxes from May 3, 2000, through December 29, 2006, related to changing the measurement dates for these Discounted Options grants will be approximately $1 million.

In 2005 and 2006, the company granted restricted stock and restricted stock units, respectively, in lieu of a cash bonus. Sixteen of the restricted stock awards in 2005 were not determined with finality until after the grant date, and the company will record an incremental cumulative non-cash compensation expense before taxes from March 1, 1996, through December 29, 2006, related to changing the measurement dates for these restricted stock awards of less than $50,000. This amount has been included in the aggregate incremental compensation expense amounts related to stock options.

The company has also determined it had incorrectly reversed accruals for certain management bonuses which had been exchanged for discounted options and awards. The previously stated allocation of the $68 million incremental cumulative non-cash compensation expense before taxes from March 1, 1996, through December 29, 2006, related to stock options includes the resulting increase or decrease in compensation expense for each period affected. The cumulative impact of the bonus accrual adjustments through December 29, 2006, is approximately $3 million.

By 2006, the company had revised the process for granting and accounting for equity in lieu of a cash bonus, and the measurement date of the restricted stock units awarded on May 22, 2006, in lieu of a cash bonus is the same as the grant date.

Other Options

During the Relevant Period, the company issued 4,168 Other Option grants to new hires and for promotions, special recognition and other reasons. Of these, the company identified 931 which were granted to new hires who joined the company through an acquisition, or through an outsourcing by their former employer, in which the measurement date should be a date other than the grant date. Although the acquisition or outsourcing agreement generally set forth the aggregate number of option shares to be granted to the new employees, the specific allocation among employees was often not finalized until after the grant date.

The company has also identified 320 additional Other Option grants in which the measurement date should be a date other than the grant date, and two Other Option grants which should have been accounted for as repricings requiring variable accounting. These Other Option grants were primarily made to new hires or for promotions or special recognition.

By 2006, the company had revised the processes for granting Other Options, and the measurement date of all Other Options granted after April 3, 2006, other than those granted to French employees, is the same as the grant date. The incremental cumulative non-cash compensation expense before taxes from March 1, 1996, through December 29, 2006, related to Other Option grants is approximately $8 million.

Changes in Option Grant Procedure

Other than options granted to French employees, the company has not identified any stock option grants made after April 3, 2006, that were accounted for incorrectly. In order to provide greater predictability and transparency in the company's equity granting process, however, the Board of Directors adopted an Equity Grant Policy on February 23, 2007. The Policy Statement, which can be accessed on CSC's website at http://www.csc.com/governance/uploads/equitygrant.pdf, provides that: • all terms of each equity grant must be approved on or prior to the grant date;

• all stock options must have an exercise price equal to or greater than the closing market price on the grant date;

• there will be a fixed, monthly grant date for all equity grants other than those issued to new hires who become CSC employees through a merger, acquisition or outsourcing;

• all recipients of equity grants must be notified of such grants as soon as possible after approval, and the company must use reasonable efforts to notify such recipients on or prior to the grant date;

• there is an approval matrix for all equity grants;

• the Compensation Committee must approve an annual equity grant budget that cannot be exceeded without its prior approval; and

• the company's management must make a report to the Compensation Committee, within two weeks after the end of each quarter, of all equity grants issued during the quarter.
About Computer Sciences Corporation

Computer Sciences Corporation is a leading global information technology (IT) services company. CSC’s mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

With approximately 77,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC’s own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.7 billion for the 12 months ended Dec. 29, 2006. For more information, visit the company’s Web site at www.csc.com.

http://www.csc.com/newsroom/press_releases/3227-csc_completes_internal_investigation_of_stock_option_grants?ref=ls

401K’s

A CSC HR Manager, Tanya Miller explained the Matched Asset

Plan (MAP) 401K plan for staff members and employees regarding

contributions and interest. Staff members and employees can

leave contributions and the interest in the plan to receive a

monthly check that includes both CSC and individual

contributions and interest.

Staff members and employees can withdraw contributions and

interest from contributions as a lump sum distribution and elect

to receive a reduced monthly pension benefits that include CSC

contributions to the plan. Most lump sum distributions will be

considered to be taxable income in accordance with the Basis

Recovery Rule (BRR).

Information on the BRR will be sent to you with your pension

estimate. Employees may elect to roll the taxable portion to a

tax-deferred plan such as a 401K or 401K Rollover IRA account or

pay the taxes. A small portion of an employee monthly check

will be considered non-taxable income.

CSC staff members and employees who chose to distribute

their total account balance have three options. Option #1;

Rollover the entire account to another qualified 401K plan or

rollover/conduit IRA (rolling it as all cash or cash and CSC

stock), Option #2 entire account pay to employee or pay to

employee as cash or cash and CSC stock, Option #3 roll over part

into employee account and part pay to employee or elect portion

to be rolled over and the rest is paid to employee.

and/or

Staff members and employees can elect to have the total

account balance distributed via installment plans. Calculated

amount balance and the term of the installments and employees

can indicate the number of years they wish to receive payments.

Employees can elect a dollar amount until the balance is zero or

until the age of 70 ½ is reached when payments revert to a

variable amount within life expectancy.

Cafeteria Plans

CSC provides an enormous cafeteria plan for its staff

members and employees. Terms and conditions that remain the

same throughout CSC are Base location, Working hours (flex time

for employees who currently use this), Family Support Policies

(maternity, adoption, paternity, parental and flexible working),

Overtime/Standby/Call Out Rates, Notice Period, Holiday

Entitlement & Accrual Structure, Car Allowance, Pay Date (25th of

each month), Redundancy Terms, Grading Structure-initially, Sick

Leave Entitlement, Death in Service, Union Recognition, Car

Parking, Lunch Facilities & Drinks Vending Facilities.

Terms and conditions that are “measured” are Flexible

Benefits (majority are comparable such as PMI, Dental,

Health Screening, Retail Vouchers, GAYE, Childcare Vouchers,

Buying/Selling Holiday, Personal Accident Insurance, Travel

Insurance, Pay Review Date, Career Breaks/Sabbaticals, Long

Service Awards, Holiday carry-forward provisions, Grievance,

Bonus Scheme/Reward Shares, Group Income Protection,

Disciplinary and Capability Procedures.

Terms and conditions that are Non-contractual Elements are

First Aid/Safety Marshall Allowances, Company Discounts,

Employee Assistance Program, Mileage Rates, Travel & Expenses

and Time Bookings, Mobile Phones, Charitable Donations and Eye

Care Plan.

Time Off Pay

CSC offers flexible leave options both paid and unpaid to

assist in achieving a balance between work and other life needs.

The following options are Flexible, Paid Parental, Paid Personal

and Caregiver’s, Paid Annual, Paid Long Service, Paid

Compassionate, Relocation Assistance, Study, Voluntary Extended,

Community, Time off in Lieu, Sick, Holidays, Bereavement,

Emergency, Leave Without Pay (short and long) and Leave for

Injury/Military.

Organizational Climate
On October 6 2009 CSC and Cordys, a leading provider of softwarefor business process innovation, announced a strategic alliance. Thealliance agreement covers implementation services and a worldwidereseller agreement for the Cordys Business Operations Platform. Italso includes transitioning the entire Cordys Benelux professionalservices group to CSC to establish a CSC practice and Centre ofExcellence to be based in the Netherlands with expertise in Cordystechnology and leverage this experience globally.
The Cordys solution contains a comprehensive business processmanagement suite suitable for cloud computing operations due to its ability to orchestrate processes and Web services, both withinorganizations and across organizational boundaries. These capabilitiesenable corporations to facilitate rapid and effective changesand to foster greater innovation.“Cordys Business Operations Platform allows organizations tochange and innovate the way they do business with notable newspeed and greater flexibility,” said Lem Lasher, chief innovationofficer and president of CSC’s Global Business Solutions Group.“This is a key business requirement in the current economic climate.These new solution elements provide a range of tools for businesstransformation and directly support our enterprise-wide cloud strategy.CSC and Cordys share a common purpose of strong businessethics, innovation and entrepreneurial spirit, and we are delighted toannounce and formalize this partnership.”“A year ago, Cordys made the strategic decision to follow a partnercentric business model and reorganized the company accordingly,”said Jan Baan, chief executive officer of Cordys. “Despite the difficult economic climate, we have seen significant success with this strategy. Looking at the strong increase in both actual sales and pent-up demand for Cordys solutions, the agreement with CSC was the next logical step. Cordys will continue to focus on product development, sales and marketing, and support. “We are very excited about the impact this strategic partnership will have on the market. Business process management continuesto be one of the fastest growing segments of the software industry, and CSC is recognized as a global leader in the field of business innovation. The Cordys technology will further enhance that leadership. This fact made it easier for us to move our top consultants and implementation experts to CSC,” added Baan. “Economic conditions are driving the business transformation agenda for many executives,” added Lasher. “Their current ERP and legacy systems are difficult and expensive to change as quickly asthe business requires. The Cordys platform solves that problem by leveraging investments in existing systems and creating a flexible layer with new capabilities to change faster and be prepared for any situation. This approach supports the way CSC provides solutions and services to its clients worldwide.”

Leveraging CSC’s investment in Cordys for the benefit of our Australian clients is acritical focus for Robert Umphelby, Director for Business Consulting in Australia. Robert leads a unique team of consultants that combine the three key areas of expertise for business capability transformation: deep industry experience, change management and enterprise business architecture. These three specialisations are critical to rapidly shape how an enterprise can harness and begin a journey of step change with atransformational technology like Cordys. ”Cordys is an important opportunity for our clients as it will help them build business capability that executes business strategy. This framework takes a large step beyond simply building business process into IT systems and having separate capabilities maturing within the enterprise like business process management, business rules engines and services oriented architecture. Whilst these are important, Cordys offers that rare jump that with business consulting can leverage current investments in IT into tangible business capabilities. My team is working closely with our new
Cordy’s practice and our industry leadership teams, to engage enterprises who are keen to explore this opportunity and see what other global enterprises have already achieved.”

Cordys is a global provider of software for business process innovation and Enterprise Cloud Orchestration. The industry-leading
Cordys Business Operations Platform (BOP) consists of a complete suite for next generation Business Process Management (BPM), Business Activity Monitoring (BAM) and innovative SaaS Deployment Frameworks (SDF), delivering a complete Platform as a Service (PaaS) solution. It includes an open, integrated set of tools & technologies including Composite Application Framework
(CAF), Master Data Management (MDM) and a SOA Grid. The Cordys platform and its cutting-edge Cloud technology empowers customers to dramatically improve the speed of change, fundamentally altering the way they innovate their Business Operations to achieve a true customer-centric philosophy. Global 2000 companies worldwide have selected Cordys to achieve business performance improvements such as increased productivity, reduced time to market, higher security and faster response to ever-changing market demands. Headquartered in the Netherlands, Cordys is a global company with offices in the USA, the UK,
Germany, China, India and Israel. www.cordys.com

http://assets1.csc.com/au/downloads/Cordys_v1.pdf

http://www.csc.com/newsroom/press_releases/34513-csc_and_cordys_establish_strategic_global_partnership?ref=ls

CONCLUSION

CSC is a global leader that has provided technology, business

solutions and services for several organizations worldwide

while improving compensation and benefits packages for

organizational staff members and employees. CSC Board of

Directors implement and review equity grants for senior

executives and reward Executive Compensations and stock options

for CEO’s and senior executives. Performance for Pay (P4P) was

implemented as a solution to rising healthcare costs to help

deliver high quality healthcare for staff members and employees.

CSC believes that Team Based compensation is the greatest

expense because it enhances superior performance from employees

throughout the organization. CSC Matched Asset Plan 401K plan

gives employees several options regarding contributions and

interest rates and allows employees to save receive the highest

lump sum distributions paid to employees. CSC provides a

pletfora of terms and conditions (remain the same, measured and

non-contractual) Cafeteria Plans than most organizations

worldwide. Time Off Pay is offered both paid and unpaid to

assist in achieving balance between work and other life needs.

CSC has team up with Riviere Servicing and its affiliate Riviere

Securities and GlobalTech Financial to provide financial

services. CSC treat each person with respect and

fairness, and afford ample opportunity for professional growth

while requiring the highest standards of professionalism and

technical competence. CSC is dedicated in recruiting and

maintaining well qualified employees while providing immense

compensation and benefits packages for all staff members and

employees worldwide.

CITED REFERENCES

Equity Statement. (May 20, 2008). [Online]. Retrieved April 15, 2010 from the World Wide Web: Equity Policy Statement http://assets1.csc.com/investor_relations/downloads/1561_1.pdf?ref=ls

Case Study. (2008). Pay-for-Performance [Online]. Retrieved April 15, 2010 from the World Wide Web: Five Truths for Health Plans. http://assets1.csc.com/health_services/downloads/CSC_Pay_for_Performance.pdf?ref=ls