Allstate 2015 Annual Report Download - page 53

The Allstate Corporation 2016 Proxy Statement 47
EXECUTIVE COMPENSATION
(3) The aggregate grant date fair value of option awards is computed in accordance with FASB ASC 718. The fair
value of each option award is estimated on the grant date using a binomial lattice model and the assumptions
(see note 18 to our audited financial statements for 2015) as set forth in the following table:
2015 2014 2013
Weighted average expected term 6.5 years 6.5 years 8.2 years
Expected volatility 16.0‑37.8% 16.8‑42.2% 19.1‑48.1%
Weighted average volatility 24.7% 28.3% 31.0%
Expected dividends 1.6‑2.1% 1.7‑2.2% 1.9‑2.2%
Weighted average expected dividends 1.7% 2.1% 2.2%
Risk‑free rate 0.0‑2.4% 0.0‑3.0% 0.0‑2.9%
This amount reflects an accounting expense and does not correspond to actual value that will be realized by
the named executives. The number of options granted in 2015 to each named executive is provided in the
Grants of Plan-Based Awards table on page 49.
(4) Amounts reflect the aggregate increase in actuarial value of the pension benefits as set forth in the Pension
Benefits table, accrued during 2015, 2014, and 2013. These are benefits under the Allstate Retirement Plan
(ARP) and the Supplemental Retirement Income Plan (SRIP). Non-qualified deferred compensation earnings
are not reflected since our Deferred Compensation Plan does not provide above-market earnings. The
pension plan measurement date is December 31. (See note 17 to our audited financial statements for 2015.)
The following table reflects the respective change in the actuarial value of the benefits provided to the
named executives in 2015:
Name
ARP
($)
SRIP
($)
Mr. Wilson 10,178 521,938
Mr. Shebik 20,145 165,167
Mr. Civgin 7,450 39,372
Ms. Greffin ‑11,118 82,350
Mr. Winter 9,620 71,125
Interest rates and other assumptions can have a significant impact on the change in pension value from
one year to another.
Effective January 1, 2014, Allstate modified its pension plans so that all eligible employees earn future
pension benefits under a new cash balance formula. The change in actuarial value of benefits provided
for each named executive in 2015 would have been as indicated in the following table under the
prior formula:
Name
ARP
($)
SRIP
($)
Mr. Wilson 61,170 4,231,999
Mr. Shebik 79,316 1,417,248
Mr. Civgin 5,076 26,760
Ms. Greffin 33,113 539,829
Mr. Winter 7,035 51,638