Allstate 2011 Annual Report Download - page 48

The average adjusted return on equity relative to peers measure compared Allstate’s performance to a group
of other insurance companies. If the average adjusted return on equity had exceeded the average risk free rate of
return on three-year Treasury notes over the three-year cycle, plus 200 basis points, Allstate’s ranked position
relative to the peer group would have determined the percentage of the total target award for this performance
measure to be paid. However, the average adjusted return on equity did not exceed the average risk free rate of
return, plus 200 basis points, resulting in no payout.
Other Elements of Compensation
To remain competitive with other employers and to attract, retain, and motivate highly talented executives and
other employees, we provide the benefits listed in the following table. Our Board encourages the CEO to use our
corporate aircraft in order to deal with job responsibilities and time constraints.
All Full-time
Other Officers and Regular
Named and Certain Part-time
Benefit or Perquisite Executives Managers Employees
401(k)(1) and defined benefit pension ⻬⻬ ⻬
Supplemental retirement benefit ⻬⻬
Health and welfare benefits(2) ⻬⻬ ⻬
Supplemental long-term disability and executive physical program ⻬⻬
(3)
Deferred compensation ⻬⻬
Tax preparation and financial planning services ⻬⻬
(4)
Mobile phones, ground transportation and personal use of aircraft(5) ⻬⻬
(1) Allstate contributed $.50 for every dollar of basic pre-tax deposits made in 2010 on the first 3 percent of eligible pay and $.25 for every
dollar of basic pre-tax deposits made in 2010 on the next 2 percent of eligible pay for eligible participants, including the named
executives.
(2) Including medical, dental, vision, life, accidental death and dismemberment, long-term disability, and group legal insurance.
(3) An executive physical program is available to all officers.
(4) All officers are eligible for tax preparation services. Financial planning services were provided to the senior management team only
(the senior officers who sit on the Board of Allstate Insurance Company).
(5) Ground transportation is available to members of the senior management team only. In limited circumstances approved by the CEO,
members of our senior management team are permitted to use our corporate aircraft for personal purposes. Mobile phones are
available to members of the senior management team, other officers, certain managers, and certain employees depending on their job
responsibilities.
Retirement Benefits
Each named executive participates in two different defined benefit pension plans. The Allstate Retirement Plan
(ARP) is a tax qualified defined benefit pension plan available to all of our regular full-time and regular part-time
employees who meet certain age and service requirements. The ARP provides an assured retirement income
related to an employee’s level of compensation and length of service at no cost to the employee. As the ARP is a
tax qualified plan, federal tax law places limits on (1) the amount of an individual’s compensation that can be
used to calculate plan benefits and (2) the total amount of benefits payable to a participant under the plan on an
annual basis. These limits may result in a lower benefit under the ARP than would have been payable if the limits
did not exist for certain of our employees. Therefore, the Allstate Insurance Company Supplemental Retirement
Income Plan (SRIP) was created for the purpose of providing ARP-eligible employees whose compensation or
benefit amount exceeds the federal limits with an additional defined benefit in an amount equal to what would
have been payable under the ARP if the federal limits described above did not exist.
In addition to the ARP and SRIP, Ms. Mayes has a supplemental nonqualified retirement benefit agreement
which provides for additional cash balance pay credits. Ms. Mayes was provided with a pension enhancement to
compensate for retirement benefits that she was foregoing from her prior employer when she joined Allstate in
2007.
Change-in-Control and Post-Termination Benefits
Since a change-in-control or other triggering event may never occur, we do not view change-in-control
benefits or post-termination benefits as compensation. Consistent with our compensation objectives, we offer
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Proxy Statement