Full Description

Watson Wyatt Worldwide, Inc. (Watson Wyatt), incorporated on February 17, 1958, is a global consulting firm, providing human capital and financial management consulting services. The Company focuses on delivering consulting services that help its clients anticipate, identify, and capitalize on emerging opportunities in human capital management. It also provides independent financial advice regarding all aspects of life assurance and general insurance, as well as investment advice to assist its clients in developing investment strategies. As of June 30, 2009, Watson Wyatt provided these services through approximately 7,700 associates in 108 offices located in 34 countries. The global operations include five segments: Benefits, Technology and Administration Solutions, Human Capital, Investment Consulting, and Insurance & Financial Services. In December 2008, Watson Wyatt acquired SMART Human Resource Vietnam Company Limited, a human resources (HR) consulting services firm in Vietnam.

Benefits Group

The Benefits Group consists of consulting practices in retirement, group and healthcare and international. During the fiscal year ended June 30, 2009, (fiscal 2009) the Benefits Group accounted for approximately 57 % of the total segment revenues. The Company offers a range integrated and retirement consulting services to meet the needs of all types of employers, including those that continue to offer defined benefit plans and those that are re-examining their retirement benefits strategies. The Company’s retirement consulting services include actuarial services, analysis and recommendations on funding strategy, development and implementation of risk mitigation and management strategies, strategic plan design, administrative services, workforce diagnostics, analysis and planning, defined contribution services including non-discrimination testing and vendor selection, financial reporting, stock option and share plan financial accounting, executive retirement benefits and assistance with enhanced U.S. proxy disclosures, retiree health care design and valuation, assistance with changes relating to mergers, acquisitions and divestitures, and development of compliance and governance strategies. The tools and technology solutions include BenefitConnet, OnePlace, FASTool, Forcaster, DesignIT and Liability Watch.

The Company advises on the strategy, design, financing, delivery, communication, and ongoing planning and management of all health and welfare programs. The services provided to multinational companies includes resolving people issues in mergers and acquisitions, ensuring the compliance and competitiveness of human capital practices at all stages of the off shoring lifecycle or expansion process, helping manage financial exposures and investment risks in benefit plans and determine pension funding, rewarding, motivating and developing employees effectively, regardless of location, and developing an international transfer policy that meets the organization’s current and projected mobility needs.

Technology and Administrations Solutions Group

Watson Wyatt’s Technology and Administration Solutions Group helps organizations optimize the delivery of their human resources and benefit services. The Company provides retirement administration solutions, health & welfare/flexible benefits administration, compensation administration, integrated talent management suits, online communication, and service delivery technology suite. It also provides portal, service delivery and talent management consulting services. In fiscal 2009, the Technology and Administrations Solutions Group represented approximately 11% of the total segment revenues.

Human Capital Group

The Human Capital Group help clients develop and implement strategies for attracting, retaining and motivating their employees resulting in a maximized return on clients’ investment in human capital. The Human Capital Group also includes its Watson Wyatt Data Services practice that provide data, services and analysis regarding compensation and benefits worldwide. The Human Capital Group focuses in six areas: executive compensation, strategic rewards, sales management and rewards, organization effectiveness, talent management and data services. In fiscal 2009, the Human Capital Group represented approximately 10% of the total segment revenues.

Investment Consulting Group

The Investment Consulting Group helps pension plan sponsors and other institutional investment clients successfully meet their investment goals. The services include asset/liability modeling and asset allocation studies, governance and investment policy development, investment policy implementation, analysis of structured products, investment manager selection and monitoring, and performance evaluation and monitoring. Watson Wyatt Pension Risk Management, Advanced Investment Solutions and Defined Contribution Solutions are the integrated services provided by the Company. In fiscal 2009, the Investment Consulting Group represented approximately 10% of the total segment revenues.

Insurance and Financial Services Group

The Insurance and Financial Services consulting team advises insurance companies and other financial institutions on strategic and financial issues. The services include development and review of business strategy, including market entry studies and business plan design, provision of strategic and actuarial advice to buyers or sellers of financial institutions, advice on a range of financial management issues, including risk and value management, asset liability modeling, statutory reporting, embedded value and market consistent valuations. The Company has also developed a range of actuarial modeling software products, including VIPitech, Replicating Portfolio, Pretium and Simulum. These are used internally for consulting projects and licensed to clients worldwide. The Company’s Insurance and Financial Services Group represented approximately 7% of its total segment revenues for fiscal 2009.

Other Services

The communication consulting help clients produce financial results through strategies that align employee behavior with business success. The services includes clarifying the value and scope of employee compensation and benefits and enhancing employees’ appreciation of their total rewards opportunities; drawing a clear line of sight between employee performance and company objectives through open communication and leadership communication training; optimizing the use of technology in communication through audits and practice design; facilitating organizational change so that all stakeholders fully understand their role in business success; maintaining employee trust, confidence and commitment through all cycles of performance; demonstrating the return on investment of employee communication in achieving business objectives, and supporting management in efforts to target, attract and hire the right talent to meet business objectives through communication programs.

The Company competes with Hewitt Associates, Mercer, Towers Perrin, Hay Group, The Segal Company, Russell Investments, Callan Associates, Aon, Deloitte & Touche, Ernst & Young, Fidelity, ING Institutional Plan Services, PricewaterhouseCoopers, KPMG, Accenture, ACS, ADP, ExcellerateHRO and IBM.