P AN AMERIC AN SIL VER 67 O ur P erf ormanc e E m pl o y m en t C o n d i t i o n s a n d B en ef t s W e in v e s t in our w orkf or c e of ering me aningful emplo yment and f air c ompens ation It is import ant t o us that the majorit y o f w ork er s r e sponsible f or c or e pr oc e s s e s ar e P an Americ an Silv er emplo y ee s not c ontr act or s W e w ant our emplo y ee s t o f eel v alued t ak e pride in our C omp an y embody the P an Americ an Silv er v alue s and shar e in our suc c e s s W e r ec ogniz e that w e mus t pr o vide c ompetitiv e c ompens ation and bene ft pr ogr ams t o attr act and r et ain skilled and motiv at ed emplo y ee s Although the f ormal mining s ect or is among the highe s t p a ying in e ach o f the c ountrie s wher e w e oper at e w e r egularly benchmark c ompens ation t o ensur e w e ar e p a ying in line with mark et tr ends and c omplying with loc al legislation P a y e q u i t y A t e ach o f our sit e s w e s et s alarie s b as ed on objectiv e crit eria not g ender and e s t ablish s alar y b ands which ar e e xt ernally benchmark ed on a r egular b asis Tu r n o v e r T r acking turno v er is one w a y w e r e vie w our mark et c ompetitiv ene s s as s e s s the ef ectiv ene s s o f our hiring pr actic e s and e v aluat e our perf ormanc e as an emplo y er A cr o s s the C omp an y our o v er all annual turno v er r at e in 2 01 9 w as appr o ximat ely ele v en per c ent c omp ar ed t o nine per c ent in 2 018 1 D e spit e our ac quisition o f T ahoe R e s our c e s during 2 01 9 w e maint ained a r elativ ely s t able turno v er r at e due t o our busine s s c ontinuit y planning prior t o the ac quisition and maint aining a s tr ong c ommitment t o our emplo y ee s O ur turno v er r at e s r e fect loc al labour mark et c ompetition and indus tr y tr ends and chang e s A t the oper ations le v el c ompetitiv e en vir onment s f or skilled labour and opportunitie s at ne w mine s ar e g ener ally r e sponsible f or v olunt ar y turno v er A t the s enior manag ement le v el our annual turno v er incr e as ed fr om fv e t o 21 per c ent 2 In p as t y e ar s w e ha v e had lo w turno v er at the s enior manag ement le v el which w e attribut ed t o a shar ed c ommitment t o the C omp an y s v alue s and objectiv e s This r ec ent incr e as e is the r e sult s tr e amlining our oper ations aft er the ac quisition o f T ahoe In addition our Alamo D or ado mine in Me xic o is in the po s t clo sur e s t ag e r equiring f e w er emplo y ee s at sit e 1 T urno v er include s both v olunt ar y and in v olunt ar y turno v er 2 S enior manag ement include s e x ecutiv e ofc er s vic e pr e sident s c ountr y manag er s dir ect or s oper ation manag er s and unit manag er s G R I 4 0 5 2 4 0 1 1 W e w ant our emplo y ee s t o f eel v alued t ak e pride in our C omp an y embody the P an Americ an Silv er v alue s and shar e in our suc c e s s