Monday, September 24, 2018

No. 287: Executive Compensation in the Insurance Industry in 2017

The Insurance Forum began with the January 1974 issue. In 1975 I began publishing data on executive compensation in the insurance industry. Chapter 24 of my 2015 book, The Insurance Forum: A Memoir, describes the history of my executive compensation tabulations and the efforts made by the industry and by insurance regulators to block access to the data.

A few years after ending publication of the Forum with the December 2013 issue, I posted on my blog some executive compensation data for 2015. The data from my three sources—the Securities and Exchange Commission (SEC), the New York State Department of Financial Services (DFS), and the Nebraska Department of Insurance (NDI)—are in No. 163 (May 23, 2016), No. 164 (May 31, 2016), and No. 165 (June 8, 2016). I have now assembled some executive compensation data for 2017.

During the final seven years of the Forum, I showed data for individuals who received at least $1 million in the year under study. For example, the final executive compensation tabulation in the Forum, showing data for 2012, was in the July 2013 issue. I am offering that tabulation on a complimentary basis at the end of this post. In the new tabulation in this post I show data for individuals who received at least $5 million in 2017. Where more than one individual in a company is shown, they are listed in descending order of compensation.

SEC Data for 2017
Each figure in the SEC data is the "Total" in the 2017 summary compensation table filed with the SEC by shareholder-owned public companies. The seven components of the "Total" are "Salary," "Stock Awards," "Option Awards," "Non-Equity Incentive Plan Compensation," "Change in Pension Value and Nonqualified Deferred Compensation Earnings," and "All Other Compensation."

The table for most companies is in the definitive proxy statement filed in advance of the company's 2018 annual meeting of shareholders. In a few instances, the table is in a 10-K annual report. For Canadian companies, the figures are in Canadian dollars, and the table is in a 6-K annual report. The documents referred to here are readily available to the public without charge at https://www.sec.gov/edgar/searchedgar/companysearch.html on the SEC website.

SEC Compensation Data for 2017
Aetna Inc
Mark T Bertolini
$18,750,816
Gary W Loveman PhD
9,915,288
Richard M Jelinek
7,917,107
Karen S Lynch
7,666,746
Shawn M Guertin
6,022,155
AFLAC Inc
Daniel P Amos
22,830,984
Frederick J. Crawford
5,528,500
Alleghany Corp
Weston M Hicks
9,647,362
Allstate Corp
Thomas J Wilson
18,757,329
John Dugenske
10,163,895
Matthew E Winter
7,809,707
Steven E Shebik
7,271,292
Don Civgin
5,054,720
American Financial Group Inc
Carl H Lindner III
9,772,850
S Craig Lindner
9,602,149
American International Group Inc
Brian Duperreault
43,086,861
Peter D Hancock
24,208,608
Peter Zaffino
17,692,606
Robert S Schimek
16,454,821
Peter Y Solmssen
14,604,342
Douglas A Dachille
14,295,567
Kevin T Hogan
13,546,670
Siddhartha Sankaran
11,967,388
Ameriprise Financial Inc
James M Cracchiolo
23,900,309
Walter S Berman
8,169,090
William F Truscott
6,656,556
Colin Moore
5,885,105
Anthem Inc
Joseph R Swedish
18,553,317
Gloria M McCarthy
5,816,686
John E Gallina
5,478,983
Peter D Haytaian
5,422,957
Brian T Griffin
5,412,155
Aon plc
Gregory C Case
14,609,682
Stephen P McGill
7,679,793
Christa Davies
7,382,514
Kristi Savacool
7,209,668
Arch Capital Group Ltd
Constantine Iordanou
12,752,096
Nicolas Papadopoulo
8,888,674
Marc Grandisson
7,131,745
Assurant Inc
Alan B Colberg
9,274,743
Gene E Mergelmeyer
5,412,189
Assured Guaranty Ltd
Dominic J Frederico
13,526,784
AXIS Capital Holdings Ltd
Albert A Benchimol
7,045,778
Centene Corp
Michael F Neidorff
25,259,468
Cynthia J Brinkley
6,332,724
Jeffrey A Schwaneke
5,546,562
Chubb Ltd
Evan G Greenberg
19,116,401
John W Keogh
7,864,964
Paul J Krump
7,010,885
John J Lupica
6,163,883
Philip V Bancroft
5,051,966
Cigna Corp
David M Cordani
17,595,792
CNA Financial Corp
Dino E Robusto
10,635,782
Jonathan D Kantor
6,564,950
CNO Financial Group Inc
Edward Bonach
9,962,118
Enstar Group Ltd
Dominic F Silvester
16,871,090
Paul J O'Shea
10,288,997
Orla M Gregory
7,537,184
Everest Re Group Ltd
Dominic J Addesso
8,829,222
Fidelity National Financial Inc
William P Foley II
29,382,455
Raymond R Quirk
8,961,216
Brent B Bickett
7,303,777
First American Financial Corp
Dennis J Gilmore
8,330,344
Genworth Financial Inc
Thomas J McInerney
8,965,211
Kevin D Schneider
6,798,621
Daniel J Sheehan IV
6,576,254
Hartford Financial Services Group
Christopher Swift
13,115,285
Douglas Elliot
8,973,264
Humana Inc
Bruce D Broussard
19,768,525
Brian A Kane
5,658,476
Lincoln National Corp
Dennis R Glass
14,963,035
Loews Corp
James S Tisch
6,527,773
David B Edelson
5,583,273
Jonathan M Tisch
5,543,334
Andrew H Tisch
5,384,285
Kenneth I Siegel
5,110,749
Manulife Financial Corp
Roy Gori
12,756,342
Donald Guloien
12,188,265
Warren Thomson
7,155,985
Steve Roder
6,906,681
Marianne Harrison
5,962,698
Marsh & McLennan Companies Inc
Daniel S Glaser
17,011,341
Julio A Portalatin
7,401,281
John Q Doyle
6,929,455
Peter J Beshar
5,210,829
MetLife Inc
Steven A Kandarian
14,726,721
Michel Khalaf
6,325,447
John C R Hele
5,339,029
Martin J Lippert
5,899,896
MGIC Investment Corp
Patrick Sinks
7,033,794
Molina Healthcare Inc
Joseph M Zubretsky
19,739,108
J Mario Molina MD
16,998,004
John C Molina
8,013,953
National Western Life Group Inc
Ross R Moody
6,756,680
Principal Financial Group Inc
Daniel J Houston
11,958,736
James P McCaughan
6,033,877
Progressive Corp
Susan Patricia Griffith
9,274,439
Protective Life Corp
John D Johns
13,127,403
Richard J Bielen
8,002,361
Carl S Thigpen
5,548,577
Prudential Financial Inc
John R Strangfeld
27,111,399
Mark B Grier
17,561,490
Stephen Pelletier
15,973,459
Charles F Lowrey
11,799,322
Robert M Falzon
9,149,071
Radian Group Inc
Richard G. Thornberry
6,876,816
Sanford A Ibrahim
6,769,740
Reinsurance Group of America Inc
Anna Manning
7,041,523
RenaissanceRe Holdings Ltd
Kevin J O'Donnell
7,810,052
Sun Life Financial Inc
Dean A Connor
9,146,847
Stephen C Peacher
6,753,607
Torchmark Corp
Gary L Coleman
8,366,856
Larry M Hutchison
8,311,946
Travelers Companies Inc
Alan D Schnitzer
15,233,759
Brian W MacLean
8,088,067
William H Heyman
6,644,766
Jay S Benet
6,391,045
Avrohom J Kess
5,921,446
UnitedHealth Group Inc
Stephen J Hemsley
18,454,153
David S Wichmann
17,389,976
Larry C Renfro
14,236,877
John F Rex
7,930,845
Steven H Nelson
7,580,444
Marianne D Short
6,494,869
Universal Insurance Holdings Inc
Sean P Downes
19,252,897
Jon W Springer
8,469,821
Unum Group
Richard P McKenney
9,683,946
Voya Financial Inc
Rodney O Martin Jr
10,989,072
Alain M Karaoglan
5,621,947
Christine Hurtsellers
5,365,268
W R Berkley Corp
William R Berkley
12,214,097
W Robert Berkley Jr
10,279,539
WellCare Health Plans Inc
Kenneth A Burdick
11,327,735
White Mountains Insurance Group
Raymond Barrette
21,560,378
David T Foy
8,872,702
G Manning Rountree
6,633,124
Reid T Campbell
6,433,936
T Michael Miller
6,272,832

New York Data for 2017
The 2017 New York data are filed with DFS by life insurance companies doing business in New York, and by health insurance companies doing business there. The data are from a statutory annual statement exhibit called "Schedule G." The schedule for life companies differs from the schedule for health companies. Because the schedules are not readily available to the public, I obtained them through a public records request pursuant to the New York State Freedom of Information Law. The Life Bureau of DFS sent me the schedules for life companies, and the Health Bureau sent me the schedules for health companies.

The schedule for life companies shows one figure for each individual. The schedule for health companies shows four figures for each individual: (1) "Salary Paid by Company and All Other Companies in Holding Company System," (2) "Bonus & all other Compensation Deferred or Paid by Company and All Other Companies in Holding Company System," (3) "Total Amount Paid by Company and All Other Companies in Holding Company System," and (4) "Amount Paid by or Amount Allocated by Company." The figure I show in this tabulation is the third of the four figures. When I obtained the 2017 data, each bureau charged a fee of $1 for sending the schedules on a CD by regular mail.

New York Compensation Data for 2017
Life Insurance Companies
Aetna Life Ins Co
Mark T Bertolini
$57,828,429
Shawn M Guertin 9,239,174
Jean LaTorre 6,231,385
Thomas J Sabatino 5,588,469
Globe Life Ins Co of NY
Ben Walter Lutek 8,553,779
Guardian Life Ins Co of America
Deanna Mulligan 8,014,882
Lincoln Life & Annuity Co of NY
Dennis R Glass 34,666,432
Randal J Freitag 8,163,992
Massachusetts Mutual Life Ins Co
Roger Crandall 6,269,018
Paul Blanco 5,228,315
Metropolitan Life Ins Co
Steven A Kandarian 10,453,756
New York Life Ins Co
Theodore A Mathas 20,594,949
John Y Kim 12,868,332
Christopher O Blunt 9,394,343
John T Fleurant 5,022,387
Northwestern Mutual Life Ins Co
John E Schlifske 12,204,273
Penn Mutual Life Ins Co
Eileen McDonnell 5,337,340
Phoenix Life Ins Co
James D Wehr 6,749,750
Principal Life Ins Co
James P McCaughan 14,059,569
Daniel J Houston 10,667,049
Karen Elizabeth Shaff 7,362,154
Karl W Nolin 5,601,332
Luis E Valdes 5,351,845
Prudential Ins Co of America
John R Strangfeld 11,064,539
Charles F Lowrey 9,891,275
Mark B Grier 6,494,780
Stephen Pelletier 5,058,979
Teachers Ins & Annuity Assn
Roger Ferguson 6,685,814
Ronald R Pressman 5,372,878
Health Insurance Companies
Anthem Group
Joseph R Swedish 17,098,146
Peter D Haytaian 5,054,085
Brian T Griffin 5,043,082
Gloria M McCarthy 5,006,223
Eastern Vision Service Plan Inc
James M McGrann 5,024,315
HIP Ins Co of New York
William C Lamoreaux 5,496,012
Humana Ins Co of New York
Brian A Kane 7,678,628
UnitedHealth Group
Robert W Oberrender 7,705,596
WellCare Health Ins of New York
Kenneth A Burdick 8,688,648
Andrew L Asher 5,583,010

Nebraska Data for 2017
The 2017 Nebraska data are on a "Supplemental Compensation Exhibit" filed by all insurance companies doing business in Nebraska. The figure I show is the "Total" for each individual. Components of the "Total" are "Salary," "Bonus," "Stock Awards," "Option Awards," "Sign-on Payments," "Severance Payments," and "All Other Compensation." When I obtained the 2017 data, NDI charged a fee of $80 for sending the exhibits on a CD by regular mail.

Nebraska Compensation Data for 2017
Accident Fund Ins Co of America
Elizabeth Haar
$6,642,686
ACE American Ins Co
John J Lupica
6,100,000
Paul J Crump
5,050,000
Acuity, A Mutual Ins Co
Benjamin M Salzmann
15,512,444
Aetna Life Ins Co
Mark T Bertolini
18,750,816
Gary W Loveman PhD
9,815,288
Richard M Jelinek
7,917,107
Karen S Lynch
7,666,746
Thomas J Sabatino Jr
7,321,633
Shawn M Guertin
6,022,155
Allied World National Assur Co
Scott A Carmilani
23,880,597
Wesley Dupont
5,309,124
Allstate Ins Co
Thomas J Wilson
54,184,408
Matthew E Winter
17,455,607
Judith P Greffin
8,152,152
Sanjay Gupta
7,513,203
Surender Gupta
7,033,822
Steven E Shebik
6,659,653
Steven P Sorenson
6,634,968
Susan L Lees
6,582,780
American Family Life of Columbus
Daniel P Amos
15,280,454
Paul S Amos II
6,184,321
Frederick J Crawford
5,279,845
American Family Mutual Ins Co
Jack C Salzwedel
9,617,184
American General Life Ins Co
Kevin Hogan
6,109,879
Jay S Wintrob
5,717,513
American Income Life Ins Co
Roger C Smith
14,343,009
Ben W Lutek
8,553,780
Assured Guaranty Corp
Dominic Frederico
13,596,579
Atlantic Specialty Ins Co
Timothy M Miller
9,295,572
Chicago Title Ins Co
Raymond R Quirk
8,959,129
Anthony J Park
6,097,163
Michael J Nolan
5,858,912
Peter T Sadowski
5,853,519
Clearwater Select Ins Co
Brian D Young
5,669,432
Doctors Co Interinsurance Exchange
Richard Anderson MD
11,726,099
Essent Guaranty Inc
Mark Casale
6,890,474
Everest Reinsurance Co
Dominic J Addesso
6,223,278
Fidelity & Guaranty Life Ins Co
Christopher J Littlefield
5,777,721
First American Title Ins Co
Dennis Gilmore
9,080,461
GEICO Indemnity Co
Olza Minor Nicely
14,541,402
Great American Ins Co
S Craig Lindner
9,726,202
Carl H Lindner III
9,673,500
Guardian Life Ins Co of America
Deanna Mulligan
8,772,047
Hanover Ins Co
Joseph Zubretsky
5,148,547
Health Care Service Corp
Paula A Steiner
10,179,367
Patricia A Hemingway Hall
6,487,164
Colleen Foley Reitan
5,876,344
Humana Ins Co
Bruce D Broussard
33,361,110
Brian A Kane
7,678,628
Insurance Co of the West
Kevin Prior
27,486,175
Ernest Rady
7,460,080
Jackson National Life Ins Co
Barry Stowe
7,568,499
James R Sopha
6,339,538
Paul C Myers
6,227,860
Liberty Mutual Ins Co
David H Long
21,026,728
Timothy Sweeney
8,287,284
Neeti Bhalla
7,155,742
J Paul Condin III
6,968,884
Christopher L Peirce
5,819,868
Dennis J Langwell
5,329,184
Lincoln National Life Ins Co 
Dennis R Glass
34,666,432
Randal J Freitag
8,163,992
Wilford H Fuller
6,261,016
Magellan Behavioral Health
Jeffrey West
7,678,675
Dan Gregorie
5,999,522
Massachusetts Mutual Life Ins Co
Roger Crandall
14,460,939
Paul Blanco
5,277,246
Michael Fanning
5,147,443
Medical Protective Co
Timothy Kenesey
5,324,898
MEMIC Indemnity Co
John T Leonard
11,340,488
Metropolitan Life Ins Co
Steven A Kandarian
10,453,756
Mortgage Guaranty Ins Corp
Patrick Sinks
6,315,629
National Indemnity Co
Ajit Jain
15,986,250
New York Life Ins Co
Theodore A Mathas
20,594,949
John Y Kim
12,868,332
Christopher O Blunt
9,394,343
John T Fleurant
5,022,387
Northwestern Mutual Life Ins Co
John E Schlifske
12,204,273
Pacific Life Ins Co
James T Morris
7,722,736
Pan-American Life Ins Co
Jose Suarez Suquet
5,542,464
Penn Mutual Life Ins Co
Eileen McDonnell
5,337,340
Thomas E Daley
5,099,635
Pennsylvania Ins Co
Sidney Ferenc
9,247,661
Steven Menzies
9,211,854
Phoenix Life Ins Co
James D Wehr
6,749,750
Principal Life Ins Co
James P McCaughan
14,059,569
Daniel J Houston
10,667,049
Karen E Shaff
7,362,154
Karl W Nolin
5,601,332
Luis E Valdes
5,351,845
Prudential Ins Co of America
John R Strangfeld Jr
8,727,787
Mark B Grier
7,198,970
Charles F Lowrey
5,070,897
Radian Mortgage Guaranty Inc
Sanford A Ibrahim
9,412,799
Richard Thornberry
6,144,254
RGA Reinsurance Co
Albert Greig Woodring
15,608,544
RiverSource Life Ins Co
Lynn Ann Hopton
17,335,404
Yvonne E Stevens
15,366,727
Steven B Staver
12,341,420
John R Woerner
7,596,970
David K Stewart
5,067,199
SCOR Reinsurance Co
Mark Kociancic
5,570,891
Security Benefit Life Ins Co
Michael Patrick Kiley
7,221,603
Standard Ins Co
John Gregory Ness
6,548,581
State Farm Group
Michael Leon Tipsord
8,502,235
Michael Steven Wey
5,005,858
Teachers Ins & Annuity Assn
Roger Ferguson
18,674,135
Justin Kelly
16,361,982
William Adams
12,695,571
Jon Bosse
11,796,431
Clark Winslow
10,507,082
Robert Doll
9,302,014
Ronald Pressman
8,182,928
James Boothe
7,320,974
Gunther Stein
7,058,340
Virginia Wilson
5,138,972
Transatlantic Reinsurance Co
Michael C Sapnar
8,517,759
Javier E Vijil
8,060,576
Travelers Casualty & Surety Co
Alan D Schnitzer
15,262,488
Brian MacLean
7,923,164
Willaim H Heyman
6,531,523
Jay S Benet
6,256,725
United States Liability Ins Co
Thomas P Nerney
19,652,848
Western & Southern Life Ins Co
John Barrett
7,678,251

General Observations
There can be no assurance the data shown here are complete and accurate, for at least four reasons. First, with regard to the SEC data, I did not have a complete list of shareholder-owned public companies in the insurance business, and some therefore may have been omitted.

Second, with regard to DFS data, the Schedule G for life companies may show compensation attributable only to that one company. In other words, on the schedule for a company that is a member of a group of companies, the figure shown for an individual may be compensation from only that one company rather than from the entire group of companies.

Third, with regard to NDI data, some groups of companies allocate the compensation for individuals among the members of the group. Thus the figures for individuals need to be added. There can be no assurance that I found all the members of those groups. Indeed, in some instances members of the group may not be licensed in Nebraska and therefore do not file the exhibits.

Fourth, an individual's compensation may differ among my three sources. Aside from the third problem mentioned above, the three sources have differing rules about precisely what must be included in an individual's compensation. For example, see the differences between DFS data and NDI data for Teachers Insurance & Annuity Association. I asked DFS to comment on the differences, but received no reply.

Available Material
To provide a frame of reference beyond the three posts showing executive compensation data for 2015, I am offering a complimentary 10-page PDF containing the final executive compensation tabulation in the Forum. It appeared in the July 2013 issue and showed data for 2012. Email jmbelth@gmail.com and ask for the executive compensation tabulation in the July 2013 issue of the Forum.


===================================