Allstate CEO's Compensation Doubled In 2012
April 12, 2013 by Becky Yerak
| By Becky Yerak, Chicago Tribune |
| McClatchy-Tribune Information Services |
April 10–Tom Wilson, Allstate Corp. chairman and chief executive, saw his total compensation rise 53 percent in a year when the stock of his Northbrook-based insurer was up about 50 percent.
His total pay last year was nearly $17.1 million.
He saw a big jump his perfomance bonus, to $6.2 million from $2.2 million, according to a filing with the Securities and Exchange Commission. The proxy cited “improved business results” as well as such factors as “an independent compensation consultant’s review of market and industry data” for Wilson’s compensation.
Wilson met with proxy advisory firms and investors representing more than a third of outstanding shares in 2012. Those meetings shaped several governance policies at Allstate, the proxy said.
In 2011, Allstate had named H. John Riley Jr. as its lead director. In its proxy, Allstate said that Riley would remain lead director “for an additional year past his normal board retirement, which would otherwise occur in May 2013.” The move is based partly on feedback from its investors. Riley, 72, is former CEO of electrical products maker Cooper Industries Ltd.
Also after meeting with investors, Allstate’s nominating and governance committee formalized a policy to limit the number of boards on which its directors may serve. Directors who are “active executives” are limited to two public company boards and others are limited to five, in addition to Allstate.
Allstate’s net income was $2.31 billion in 2012, compared with $787 million in 2011. Net income per share was $4.68 in 2012 vs. $1.50 in 2011.
Return on equity increased 7.6 points, to 11.9 percent, in 2012, helped by good weather, continued strong auto profitability, and improved returns in the homeowners business. Allstate’s goals include reaching a 13 percent return on equity by 2014.
byerak@tribune.com — Twitter: @beckyyerak
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