In Nos. 163 and 164 (posted May 23 and May 31, 2016), I showed tabulations of 2015 executive compensation in the insurance industry from filings with the Securities and Exchange Commission (SEC) and the New York Department of Financial Services (DFS). They were my first major tabulations of executive compensation data since I ended publication of The Insurance Forum after the December 2013 issue.
Another Tabulation
Here I present another tabulation of 2015 data, this time from filings with the Nebraska Department of Insurance. In the final seven years of the Forum, I listed individuals who received $1 million or more each year. In No. 163, I listed individuals who received $5 million or more in 2015 according to SEC data. In No. 164, I listed individuals who received $3 million or more in 2015 according to DFS data. Here I list individuals who received $3 million or more in 2015 according to Nebraska data. The tabulation is at the bottom of this blog post.
The Supplemental Compensation Exhibit
The Nebraska data are from a "Supplemental Compensation Exhibit" developed in 1984 by the National Association of Insurance Commissioners (NAIC). The exhibit is used in a few states that require executive compensation data from their domestic companies; in some of those states the data are confidential. Nebraska has an insurance company executive compensation disclosure statute that was enacted in 1913 as part of the reforms that grew out of the Hughes-Armstrong investigation in New York in 1905. The statute requires all insurance companies doing business in Nebraska to file executive compensation data with the Department.
The exhibit has ten columns: name and principal position, year, salary, bonus, stock awards, option awards, sign-on payments, severance payments, all other compensation, and totals. Data are shown for the current year and the two preceding years, and include data for the ten highest compensated individuals. Instructions for completing the exhibit were prepared by the NAIC. I used the "totals" column to prepare this tabulation. Where more than one individual is shown for a company, they are listed in descending order of compensation.
How To Obtain the Nebraska Data
For many years I obtained copies of the exhibits through a public records request filed with the Department. In recent years the Department prepared a CD containing the exhibits. Anyone desiring exhibits for one or a few companies should indicate the name or names. The CD containing all the exhibits may be obtained from the Nebraska Department of Insurance, 941 "O" Street, Suite 400, Lincoln, NE 68508. The cost is $80.
A Major Problem with the Exhibit
I have long been troubled by a major problem with the exhibit. In the case of a group of related companies, the exhibit allows a company to use either of two methods of disclosure: (1) the aggregate amount paid to each individual by all companies in the group, or (2) only the amount allocated to the company named on the exhibit. Most companies show the aggregate figures. However, companies who allocate create a serious problem for persons assembling the data.
For example, consider the Progressive group, which allocates. Glenn Renwick is the principal executive officer. I found exhibits for nine Progressive companies showing these amounts of compensation for him adding up to $3,909,234, the figure shown in my tabulation:
| Progressive Direct Ins Co | $1,132,773 |
| Progressive Casualty Ins Co | 601,629 |
| Progressive Specialty Ins Co | 552,281 |
| Progressive Advanced Ins Co | 511,239 |
| Progressive Universal Ins Co | 350,755 |
| Progressive Preferred Ins Co | 326,123 |
| Progressive Northwestern Ins Co | 226,439 |
| Progressive Classic Ins Co | 115,528 |
| Progressive Max Ins Co | 92,467 |
There are two serious problems in addition to the effort needed to assemble the data. First, in addition to the companies listed above, the group may have other companies that are licensed in Nebraska. Second, in addition to the companies listed above, the group may have other companies that are not licensed in Nebraska. Therefore, when a company allocates, some individuals' total compensation may be understated.
In assembling the data below, I did not make what would have been a Herculean effort to identify all the companies in each group that allocates. For that reason, some data in the tabulation may understate an individual's total compensation. Also, some individuals who received more than $3 million of total compensation may be omitted from the tabulation.
Consider another dimension of the problem. The Liberty Mutual group allocates, but indicates the percentage allocated to the company whose data are in the exhibit. For example, Liberty Mutual Insurance Company's exhibit says: "Effective January 1, 2014, allocation to the reporting insurer is 50% consistent with its governing intercompany pooling arrangements." Therefore, I doubled each total in the exhibit to calculate each individual's total compensation from all companies in the group.
There are two simple solutions to the problem. One is for the Department to instruct companies to show the total compensation paid to each individual by all companies in the group. Another solution is for the Department to add one more column to the exhibit to show the total compensation paid to each individual by all companies in the group.
My Recent Correspondence with the Department
I have written to the Department previously on this matter, but my concern has not been addressed. On May 16, 2016, I wrote to the Department again. On May 31, the Department denied my request. On June 3, I wrote to the Department accepting the decision, albeit with disappointment, and requesting a revision of the CD next year to address the problems associated with company groups that allocate.
Available Material
I am offering a 27-page complimentary PDF consisting of the NAIC's instructions for completing the supplementary compensation exhibit, six sample exhibits (Guardian Life, Liberty Mutual, Massachusetts Mutual, New York Life, Northwestern Mutual, and Progressive Direct), and three letters (my May 16 letter, the Department's May 31 letter, and my June 3 letter). Email jmbelth@gmail.com and ask for the June 2016 package relating to executive compensation disclosure in Nebraska.
| Compensation Data for 2015 from Nebraska | ||
| Ace Property & Casualty Ins Co | ||
| John J Lupica | $5,500,000 | |
| Acuity, A Mutual Ins Co | ||
| Benjamin M Salzmann | 7,966,944 | |
| Aetna Life Ins Co | ||
| Mark T Bertolini | 17,261,900 | |
| Gary W Loveman PhD | 8,005,714 | |
| Karen S Lynch | 7,758,787 | |
| Shawn M Guertin | 6,414,029 | |
| Francis S Soistman Jr | 5,219,831 | |
| Margaret M McCarthy | 4,286,948 | |
| William J Casazza | 3,391,462 | |
| Steven B Kelmar | 3,044,200 | |
| Allianz Global Risks US Ins Co | ||
| Arthur Moossmann | 3,261,660 | |
| Allied World Ins Co | ||
| John R Bender | 3,157,833 | |
| Allied World National Assurance Co | ||
| Scott A Carmilani | 16,096,208 | |
| Wesley D Dupont | 5,785,271 | |
| W Gordon Knight | 3,203,374 | |
| Allstate Ins Group | ||
| Thomas J Wilson | 27,020,510 | |
| Don Civgin | 16,571,629 | |
| Matthew E Winter | 8,523,727 | |
| James DeVries | 8,433,799 | |
| Judith P Greffin | 8,133,223 | |
| Katherine A Mabe | 5,850,830 | |
| Steven P Sorenson | 5,627,705 | |
| Sanjay Gupta | 5,205,825 | |
| Michael Roche | 4,851,690 | |
| Suren Gupta | 4,669,552 | |
| Steven E Shebik | 4,435,082 | |
| Alterra America Ins Co | ||
| Francis Michael Crowley | 3,674,828 | |
| Richard R Whitt III | 3,130,512 | |
| Ambac Assurance Corp | ||
| Diana Newman Adams | 3,461,184 | |
| American Bankers Ins Co of Florida | ||
| Gene Edward Mergelmeyer | 4,297,746 | |
| Steven Craig Lemasters | 3,232,383 | |
| American Family Ins Co | ||
| Jack C Salzwedel | 7,677,663 | |
| American Family Life Assurance Co | ||
| Daniel P Amos | 11,302,436 | |
| Kriss Cloninger III | 6,317,098 | |
| John S Amos | 5,954,082 | |
| Paul S Amos II | 4,355,478 | |
| Eric M Kirsch | 3,696,963 | |
| American Fidelity Assurance Co | ||
| David R Carpenter | 4,311,128 | |
| American General Life Ins Co | ||
| Jay S Wintrob | 4,120,000 | |
| Jana W Greer | 3,193,854 | |
| American National Ins Co | ||
| Robert Lee Moody | 8,266,699 | |
| American United Life Ins Co | ||
| James S Davison | 3,017,501 | |
| Ameritrust Ins Corp | ||
| Robert Samuel Cubbin | 3,205,159 | |
| Aspen American Ins Co | ||
| Mario Vitale | 3,708,036 | |
| Assured Guaranty Corp | ||
| Dominic Frederico | 12,172,263 | |
| James Michener | 4,293,430 | |
| Robert Bailenson | 3,368,468 | |
| Russell Brewer | 3,068,032 | |
| Atlantic Specialty Ins Co | ||
| Timothy M Miller | 4,773,465 | |
| Austin Mutual Ins Co | ||
| T Van Berkel | 3,169,874 | |
| Auto Club Ins Assn Group | ||
| Charles Podowski | 9,068,320 | |
| Steven Monahan | 4,411,337 | |
| AXA Equitable Life Group | ||
| Mark Pearson | 5,083,187 | |
| Chicago Title Ins Group | ||
| Raymond Randall Quirk | 14,378,793 | |
| Peter Tadeusz Sadowski | 8,422,950 | |
| Michael Louis Gravelle | 5,828,544 | |
| Roger Scott Jewkes | 3,262,636 | |
| Michael Joseph Nolan | 3,103,853 | |
| Anthony John Park | 3,094,933 | |
| Erika Meinhardt | 3,091,795 | |
| Richard Lynn Cox | 3,046,482 | |
| Cigna Health & Life Ins Co | ||
| Matthew Glenn Manders | 3,978,547 | |
| CNA Financial Group | ||
| Thomas F Motamed | 10,175,047 | |
| D Craig Mense | 4,299,991 | |
| Jonathan D Kantor | 3,716,504 | |
| Doctors Co an Interinsurance Exchange | ||
| Richard Elliott Anderson MD | 8,745,532 | |
| Esurance Ins Co of NJ | ||
| Gary C Tolman | 3,147,125 | |
| Everest Reinsurance Group | ||
| Dominic James Addesso | 8,165,830 | |
| Barry Howland Smith | 6,356,174 | |
| Frank Nicholas Lopapa | 3,580,850 | |
| John Paul Doucette | 3,444,096 | |
| Mark Stuart de Saram | 3,165,446 | |
| Ronald David Diaz | 3,162,513 | |
| Factory Mutual Ins Co | ||
| Thomas A Lawson | 5,058,398 | |
| Jonathan W Hall | 3,891,769 | |
| Farmers Ins Exchange | ||
| Jeffrey J Dailey | 4,156,791 | |
| Federated Mutual Ins Co Group | ||
| Jeffrey E Fetters | 4,971,881 | |
| Fidelity & Guaranty Life Ins Co | ||
| Christopher J Littlefield | 3,010,770 | |
| First American Title Ins Co | ||
| Dennis J Gilmore | 4,903,136 | |
| Stephen R Farber | 3,778,697 | |
| James W McIntosh | 3,512,360 | |
| Philip Salomon | 3,297,063 | |
| Jeffrey S Mitzner | 3,158,422 | |
| GEICO Ins Group | ||
| Olza Minor Nicely | 14,641,954 | |
| William Evan Roberts | 4,326,350 | |
| General Reinsurance Corp | ||
| Franklin Montross IV | 6,411,286 | |
| Genworth Mortgage Ins Corp | ||
| Kevin Douglas Schneider | 5,334,224 | |
| Daniel Joseph Sheehan IV | 5,027,680 | |
| Great American Ins Group | ||
| Carl H Lindner III | 7,844,281 | |
| S Craig Lindner | 7,365,218 | |
| Stephen R Rosenthal | 4,162,282 | |
| Great-West Life Assurance Co | ||
| Robert L Reynolds | 3,424,039 | |
| Guardian Life Ins Co of America | ||
| Deanna Mulligan | 5,508,527 | |
| Douglas Dolfi | 3,090,653 | |
| Hanover Ins Co | ||
| Frederick Eppinger | 5,014,308 | |
| Hartford Financial Services Group | ||
| Douglas G Elliot | 4,442,211 | |
| Jonathan R Bennett | 3,067,133 | |
| Health Care Service Corp | ||
| Patricia A Hemingway Hall | 16,572,097 | |
| Colleen Foley Reitan | 7,880,513 | |
| Paula A Steiner | 5,654,068 | |
| Kenneth S Avner | 4,652,391 | |
| Deborah Dorman-Rodriguez | 4,538,952 | |
| John Cannon III | 4,424,919 | |
| Austin J Waldron | 3,471,211 | |
| Karen M Atwood | 3,419,406 | |
| Bert E Marshall | 3,078,084 | |
| Jimmy D Rodgers | 3,009,492 | |
| Homesite Ins Co | ||
| Fabian John Fondriest | 3,653,512 | |
| Humana Ins Co | ||
| Bruce D Broussard | 6,263,682 | |
| Brian P LeClaire | 3,417,341 | |
| James E Murray | 3,327,387 | |
| Insurance Co of the West | ||
| Ernest Rady | 7,956,444 | |
| Kevin Prior | 4,454,879 | |
| Jackson National Life Ins Co | ||
| Michael A Wells | 10,304,656 | |
| James R Sopha | 8,097,116 | |
| Paul C Myers | 6,964,194 | |
| Clifford J Jack | 5,775,378 | |
| Kenneth H Stewart | 4,352,581 | |
| Thomas J Meyer | 3,431,363 | |
| Gregory P Cicotte | 3,404,357 | |
| John Hancock Life Ins Co (USA) | ||
| Craig Bromley | 4,088,568 | |
| Liberty Mutual Ins Group | ||
| David H Long | 16,632,928 | |
| Timothy Sweeney | 6,295,032 | |
| A Alexander Fontanes | 6,200,578 | |
| J Paul Condrin III | 6,047,350 | |
| Christopher L Peirce | 4,035,076 | |
| Dennis J Langwell | 3,919,476 | |
| Luis Bonell Goytisolo | 3,011,310 | |
| Liberty National Life Ins Co | ||
| Michael W Pressley | 6,843,502 | |
| Roger C Smith | 6,666,032 | |
| Lincoln National Life Ins Co | ||
| Dennis R Glass | 41,665,850 | |
| Mark E Konen | 8,206,770 | |
| Randal J Freitag | 6,980,528 | |
| Wilford H Fuller | 6,762,676 | |
| Ellen G Cooper | 5,201,295 | |
| Charles C Cornelio | 5,120,505 | |
| Massachusetts Mutual Life Ins Co | ||
| Roger Crandall | 12,056,510 | |
| Elaine Sarsynski | 4,968,484 | |
| Michael Fanning | 4,724,503 | |
| Michael Rollings | 3,771,586 | |
| Melvin Corbett | 3,532,761 | |
| Elizabeth Chicares | 3,258,039 | |
| Andrew Moore | 3,196,694 | |
| MBIA Ins Corp | ||
| Joseph W Brown | 7,837,078 | |
| C Edward Chaplin | 4,562,875 | |
| William Fallon | 4,562,875 | |
| Medical Protective Co | ||
| Timothy Kenesey | 6,403,446 | |
| Metropolitan Life Ins Group | ||
| Steven A Kandarian | 13,986,781 | |
| John C Hele | 4,939,644 | |
| Maria R Morris | 4,225,396 | |
| Martin J Lippert | 3,970,838 | |
| Paul Blanco | 3,343,419 | |
| Steven J Goulart | 3,296,913 | |
| Mortgage Guaranty Ins Corp | ||
| Curt Culver | 10,707,386 | |
| Patrick Sinks | 5,336,067 | |
| Jeffrey H Lane | 3,138,079 | |
| Mount Vernon Specialty Ins Co | ||
| Thomas P Nerney | 13,099,236 | |
| Munich Reinsurance America Inc | ||
| Anthony J Kuczinski | 4,263,158 | |
| Mutual of America Life Ins Co | ||
| Thomas J Moran | 5,005,453 | |
| Mutual of Omaha Group | ||
| Daniel P Neary | 31,656,942 | |
| National Fire & Marine Ins Co | ||
| David N Fields | 3,330,885 | |
| National Indemnity Co | ||
| Ajit Jain | 11,785,006 | |
| National Life Ins Co (VT) | ||
| Mehran Assadi | 4,620,347 | |
| National Western Life Ins Co | ||
| Robert L Moody | 5,697,364 | |
| Nationwide Ins Group | ||
| Steve Rasmussen | 7,976,240 | |
| Navigators Ins Co | ||
| Stanley A Galanski | 3,086,067 | |
| New York Life Ins Co | ||
| Theodore A Mathas | 19,723,078 | |
| John Y Kim | 9,670,600 | |
| Christopher O Blunt | 6,670,600 | |
| Mark W Pfaff | 5,290,450 | |
| Sheila K Davidson | 4,396,353 | |
| Peter J McAvinn | 3,941,692 | |
| John P Curry | 3,392,886 | |
| John T Fleurant | 3,309,062 | |
| Northwestern Mutual Life Ins Co | ||
| John E Schlifske | 13,359,233 | |
| Gregory C Oberland | 4,932,626 | |
| Ronald P Joelson | 3,443,932 | |
| Odyssey Reinsurance Co | ||
| Brian D Young | 5,234,282 | |
| Philippe E Mallier | 3,026,305 | |
| Pacific Life Ins Co Group | ||
| James T Morris | 8,274,893 | |
| Khanh T Tran | 3,910,035 | |
| Pan-American Life Ins Co | ||
| Jose Suarez Suquet | 5,914,688 | |
| Carlos Fernando Mickan | 3,107,233 | |
| Partner Reinsurance Co of the US | ||
| Theodore Walker | 3,066,875 | |
| Penn Mutual Life Ins Co | ||
| Eileen McDonnell | 4,820,694 | |
| Pennsylvania Ins Co | ||
| Sidney Ferenc | 9,026,258 | |
| Steven Menzies | 8,993,837 | |
| Pennsylvania Natl Mut Cas Ins Co | ||
| Kenneth R Shutts | 5,433,541 | |
| Permanent General Assurance Corp | ||
| Randy P Parker | 4,470,243 | |
| Primerica Life Ins Co | ||
| Richard D Williams | 5,147,906 | |
| John A Addison | 5,146,545 | |
| Principal Life Ins Co | ||
| Larry D Zimpleman | 7,953,746 | |
| James P McCaughan | 6,348,503 | |
| Terrance J Lillis | 3,888,109 | |
| Daniel J Houston | 3,826,609 | |
| Proassurance Casualty Co | ||
| William Stancil Starnes | 3,859,482 | |
| Progressive Ins Group | ||
| Glenn M Renwick | 3,909,234 | |
| Protective Life Ins Co | ||
| John Dixon Johns | 42,529,073 | |
| Carl Sitter Thigpen | 9,074,528 | |
| Richard Joseph Bielen | 8,190,998 | |
| Deborah Joyce Long | 6,371,658 | |
| David Adams | 5,234,714 | |
| Michael Gus Temple | 4,340,230 | |
| Steven Glen Walker | 3,867,768 | |
| John Robert Sawyer | 3,715,538 | |
| Prudential Ins Group | ||
| John Robert Strangfeld Jr | 19,849,598 | |
| Mark Brown Grier | 16,461,512 | |
| James J Sullivan | 12,432,146 | |
| Charles Frederick Lowrey | 12,329,632 | |
| Stephen Pelletier | 8,603,581 | |
| Michael K Lillard | 8,321,172 | |
| David A Hunt | 7,434,483 | |
| Robert Michael Falzon | 6,977,184 | |
| Garrett Sleyster | 4,866,710 | |
| David H Bessey | 4,618,476 | |
| Lori Dickerson Fouche | 3,764,038 | |
| Christine Cannon Marcks | 3,701,503 | |
| QCC Ins Co | ||
| I Steven Udvarhelyi MD | 8,067,070 | |
| Daniel J Hilferty | 4,361,976 | |
| Radian Guaranty Inc | ||
| Sanford A Ibrahim | 6,309,913 | |
| Renaissance Reinsurance US Inc | ||
| H Elizabeth Mitchell | 6,630,756 | |
| RGA Reinsurance Co | ||
| Albert Greig Woodring | 7,215,798 | |
| Melville Jay Young | 5,958,744 | |
| Jack Brien Lay | 4,518,348 | |
| Paul Arthur Schuster | 3,337,106 | |
| RiverSource Life Ins Co | ||
| Lynn Ann Hopton | 14,795,047 | |
| Yvonne E Stevens | 11,875,348 | |
| Steven B Staver | 5,331,621 | |
| Bridget M Sperl | 4,900,623 | |
| John R Woerner | 4,543,077 | |
| Gumer C Alvero | 4,324,124 | |
| RLI Ins Co | ||
| Jonathan E Michael | 13,533,411 | |
| Michael J Stone | 4,688,557 | |
| Craig W Kliethermes | 4,558,001 | |
| RSUI Indemnity Co | ||
| David Leonard | 3,361,193 | |
| Phillip McCrorie | 3,016,926 | |
| Scor Reinsurance Co | ||
| Mark Kociancic | 3,699,727 | |
| Selective Ins Co of America | ||
| Gregory E Murphy | 4,518,164 | |
| John J Marchioni | 3,119,570 | |
| Sentry Ins Group | ||
| Peter McPartland | 5,812,178 | |
| Standard Ins Co (OR) | ||
| Floyd Fitz-Hubert Chadee | 6,854,960 | |
| John Gregory Ness | 4,241,832 | |
| Daniel J McMillan | 4,036,026 | |
| State Farm Group | ||
| Edward Barry Rust Jr | 13,339,940 | |
| Michael Leon Tipsord | 7,069,474 | |
| Symetra Life Ins Co | ||
| Thomas M Marra | 5,098,099 | |
| Teachers Ins & Annuity Assn | ||
| Roger Ferguson | 17,850,547 | |
| William Riegel | 6,112,266 | |
| Edward Van Dolsen | 5,978,219 | |
| Thomas Garbutt | 4,920,950 | |
| Edward Grzybowski | 4,824,808 | |
| Ronald Pressman | 4,711,739 | |
| Thomas Franks | 4,678,149 | |
| Saira Malik | 4,662,672 | |
| Stephen Gruppo | 4,121,869 | |
| Thrivent Financial for Lutherans | ||
| Bradford L Hewitt | 3,666,541 | |
| TIG Ins Co | ||
| Nicholas Bentley | 3,192,746 | |
| Transamerica Life Ins Co | ||
| Mark W Mullin | 3,467,017 | |
| Transatlantic Reinsurance Co | ||
| Michael C Sapnar | 9,949,629 | |
| Steven S Skalicky | 8,331,494 | |
| Paul A Bonny | 3,406,126 | |
| Kenneth Apfel | 3,018,387 | |
| Travelers Ins Group | ||
| Jay S Fishman | 19,596,443 | |
| Brian W MacLean | 8,176,212 | |
| William H Heyman | 6,881,003 | |
| Jay S Benet | 6,581,003 | |
| Alan D Schnitzer | 6,507,322 | |
| Doreen Spadorcia | 6,387,231 | |
| Gregory C Toczydlowski | 3,834,757 | |
| Maria Olivo | 3,236,213 | |
| Michael F Klein | 3,039,299 | |
| Trustgard Ins Co | ||
| Thomas Howard Welch | 3,681,323 | |
| Union Security Ins Co | ||
| John Steven Roberts | 7,077,456 | |
| United Automobile Ins Co | ||
| Richard P Parrillo Sr | 3,000,000 | |
| United States Fire Ins Co | ||
| Douglas Mendel Libby | 13,615,153 | |
| Marc James Adee | 5,074,145 | |
| Unum Group | ||
| Richard Paul McKenney | 3,081,910 | |
| USAA Group | ||
| Steven A Bennett | 5,470,340 | |
| Wesco Ins Co Group | ||
| Barry Zyskind | 5,524,034 | |
| West Bend Mutual Ins Co | ||
| Kevin Alan Steiner | 3,546,809 | |
| Western & Southern Life Ins Co | ||
| John Barrett | 6,252,420 | |
| Wilton Reassurance Co | ||
| Chris Stroup | 3,788,845 | |
| XL Life Ins & Annuity Co | ||
| Sarah Elizabeth Street | 3,607,538 | |
| Zenith Ins Co | ||
| Kari L Van Gundy | 3,633,988 | |
| Zurich American Ins Co | ||
| Michael Thomas Foley | 4,352,109 | |
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Email: jmbelth@gmail.com
Blog: www.josephmbelth.com