Allstate 2014 Annual Report Download - page 55

9MAR201204034531
Executive Compensation — Earned Awards
Compensation Decisions for 2014 policy growth. Written premiums grew 5.1%
for Allstate Protection.
Mr. Wilson, Served as Chairman, President and Chief
Executive Officer during 2014 • Allstate Financial recorded a net income of
$631 million although premiums declined due
• Mr. Wilson’s total compensation and the amount of to the sale of Lincoln Benefit Life Company.
each compensation element are driven by the
design of our compensation program, his experience, • Allstate continued to evolve its agency force
his responsibility for Allstate’s overall strategic into a trusted advisor model by enabling
direction, performance and operations, and the agencies to more fully deliver on the customer
committee’s analysis of peer company CEO value proposition, implementing processes and
compensation. In conjunction with the committee’s standards to elevate the level and consistency
independent compensation consultant, the of the customer experience and enhancing
committee conducts an annual review of technology to improve customer service.
Mr. Wilson’s total target direct compensation and • Stockholders continued to realize excellent
determines if any changes are warranted. returns with $2.78 billion of dividends and
• Mr. Wilson’s performance as Chairman and CEO is share repurchases.
evaluated under five categories which are • The committee approved an annual cash
determined by the Nominating and Governance incentive award of $4,073,075 for Mr. Wilson
Committee: delivering planned operating results, based on 2014 performance. This was
developing and implementing long-term strategy, consistent with the overall pool funding payout
maintaining and motivating a high performance at 118.9% of target.
team, corporate stewardship and Board
effectiveness. Performance is assessed over one- • In February 2014, based on
and three- year time periods. its assessment of Mr. Wilson’s performance in
delivering strong business results in 2013, the
• During the 2014 annual review, the committee committee granted him equity awards of stock
determined that Mr. Wilson’s base salary should be options with a grant date fair value of $3,850,001
increased to align with Allstate’s practice of and performance stock awards with a grant date fair
targeting compensation at the median of its value of $3,849,997, which is equal to Mr. Wilson’s
insurance industry peer group. Mr. Wilson’s annual target equity incentive award opportunity.
cash incentive target of 300% of salary, and
long-term equity incentive target of 700% of salary, Other Named Executives
remained unchanged.
Mr. Wilson evaluates the performance and
• In 2014, the Board approved an increase contributions of each member of his senior leadership
from $1,100,000 to $1,150,000 effective March team, including each other named executive. Based on
2014. Mr. Wilson’s last salary increase was four his review, Mr. Wilson recommended specific
years earlier in March 2010. adjustments to salary and incentive targets as well as
• Mr. Wilson’s target actual incentive awards. The recommendations were
annual incentive payment of 300% of base salary considered and approved by the committee.
with a maximum funding opportunity for the
award pool of 200% of target was unchanged in Mr. Shebik, Served as Executive Vice President and Chief
2014. Financial Officer during 2014
• Under Mr. Wilson’s leadership, Allstate grew • In 2014, the committee awarded an increase
across brands and customer segments in 2014 from $600,000 to $630,000 effective March 2014.
while generating excellent profitability despite Based on a review of CFO base salary
a significant increase in losses from severe benchmarking, Mr. Shebik received an additional
weather from historically low levels in 2013. increase to $750,000 in October 2014 to align with
The combination of a unique strategy and the median of the insurance industry peer group.
strong operational results improved Allstate’s • Based on the review of CFO
competitive position and created value for compensation benchmarking, Mr. Shebik’s annual
stockholders. The Allstate brand increased incentive target was increased to 125% of salary
both auto and homeowners policies, reflecting from 110% of salary in October 2014. His target
the execution of a comprehensive growth plan. equity incentive opportunity remained at 300% of
Both Esurance and Encompass realized positive salary.
45
PROXY STATEMENT
Equity Incentive Awards.
Salary.
Annual Cash Incentive Award.
Salary.
Incentive Targets.
The Allstate Corporation