Allstate Ceo Sees Pay Rise To $11.2 Million
March 20, 2012 by Becky Yerak
| By Becky Yerak, Chicago Tribune |
| McClatchy-Tribune Information Services |
March 10–Allstate Corp.Chief Executive Tom Wilsonsaw his total compensation jump about 20 percent to $11.2 millionin 2011 despite an 11 percent drop in the Northbrook-based company’s stock, shrinking market share in its home and auto insurance business, and worsening relations with its agents.
To appease shareholders unhappy with the company’s track record under Wilson, the company outlined several corporate governance changes in its proxy, filed with the Securities and Exchange Commission Friday.
“Over the last year Tom Wilsonmet in person with investors representing about 30 percent of our outstanding shares, as well as the leading proxy advisory firms, to discuss corporate governance and executive compensation,” the proxy said. “The entire board then considered this feedback and developed a proposed set of changes to our corporate governance and our executive compensation program.”
For example, last year, Allstate recommended that stockholders approve the right to call special meetings for stockholders owning 20 percent or more of the shares outstanding. That proposal got more than 80 percent of the vote, but this year Allstate is recommending that the ownership threshold be lowered from 20 percent to 10 percent.
For senior executives, the new plan eliminates tax gross ups, a practice where companies cover certain executive tax payments. Chicago-based Northern Trust announced a similar policy change on Thursday.
Allstate said it was also lowering severance benefits — except for Wilson.
The company also narrowed the benchmark used for to determine executive compensation to the 50th percentile of its peer group; the benchmark had previously been a range between the 50th and 75th percentiles. Northern Trust had also narrowed its benchmark.
Wilson’s salary was essentially flat, at $1.1 million. Stock awards rose to $2.3 million, from $2.2 million. Option awards jumped to $4.3 million from $4.1 million. He received an annual cash bonus of nearly $2.3 million, up from $1.1 million last year. The value of his pension increased to nearly $1.2 million from $680,000. His “other” compensation, including personal use of aircraft, declined to $69,000 from $75,000.
To see the proxy statement filed with the Securities and Exchange Commission, click here.
Twitter: @beckyyerak
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(c)2012 the Chicago Tribune
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