Allstate 2008 Annual Report Download - page 58

Summary Compensation Table for 2008, 2007 and 2006 and Grants of Plan-Based Awards Table for
2008
SUMMARY COMPENSATION TABLE(1)
The following table sets forth information concerning the compensation of the named executives for the
last three fiscal years. As discussed on page 38, there have been changes to our named executives over this
period of time. So, for each executive, the information is limited to the years for which he or she was a named
executive.
CHANGE IN
PENSION VALUE
NON-EQUITY AND
INCENTIVE NONQUALIFIED
STOCK OPTION PLAN DEFERRED ALL OTHER
SALARY BONUS AWARDS AWARDS COMPENSATION COMPENSATION COMPENSATION TOTAL
NAME YEAR ($) ($)
(2)
($)
(3)
($)
(4)
($)
(5)
EARNINGS ($)
(6)
($)
(7)
($)
Thomas J. Wilson 2008 1,040,769 — 1,866,565 3,704,513 736,261 945,884
(8)
49,938 8,343,930
(Chairman, President 2007 957,596 — 1,594,980 3,094,995 3,551,118 147,203 79,449 9,425,341
and Chief Executive Officer) 2006 825,584 — 1,425,678 2,206,938 2,655,828 605,793 111,234 7,831,055
Don Civgin 2008 158,654 221,501 24,402 49,508 16,750 0 7,594 478,409
(Vice President and Chief
Financial Officer)
Michele C. Mayes 2008 541,962 — 612,566 1,562,504 46,008 55,906
(9)
42,892 2,861,838
(Vice President and General
Counsel)
George E. Ruebenson 2008 625,008 — 992,224 1,820,671 203,852 1,294,264
(10)
23,688 4,959,707
(President, Allstate Protection) 2007 564,335 — 817,869 1,403,529 1,144,396 188,684 37,602 4,156,415
Eric A. Simonson 2008 655,556 — 566,312 1,076,219 461,763 682,450
(11)
28,512 3,470,812
(President, Allstate 2007 613,068 — 510,368 963,378 1,718,184 329,520 31,939 4,166,457
Investments, LLC) 2006 570,852 — 1,082,184 1,523,000 1,388,767 324,487 31,187 4,920,477
Danny L. Hale 2008 166,389 — 92,758 174,522 167,235 50,866
(12)
7,175 658,945
(former Vice President 2007 603,306 — 516,592 1,076,855 1,486,043 50,433 29,783 3,763,012
and Chief Financial Officer) 2006 581,082 — 1,098,336 1,655,660
(19)
1,592,597 64,173 28,533 5,020,381
Samuel H. Pilch 2008 403,786 21,010 486,466 509,001 91,951 317,545
(13)
20,471 1,850,230
(former Acting Vice President and
Chief Financial Officer, and
Controller)
(1) As described in footnotes 3 and 4, the accounting treatment of stock and option awards is substantially different for the named
executives who are retirement eligible compared to those who are not.
(2) When Mr. Civgin joined Allstate in 2008, he was paid a bonus of $100,000. In addition, because he was guaranteed an annual cash
incentive award at target, a portion of that award, $121,501, is treated as bonus. For Mr. Pilch, discretion was exercised to increase his
annual cash incentive award. That portion, $21,010, is treated as bonus.
(3) The compensation cost recognized in our audited financial statements for the relevant year for restricted stock and restricted stock unit
awards, computed in accordance with FAS 123R, disregarding any estimate of forfeitures. Under FAS 123R, the cost of these awards must
be amortized over the shorter of the vesting period or the period ending on the executive’s retirement eligibility date. Even though the
restrictions on restricted stock units and restricted stock expire in one or more installments over four years and expiration is not
accelerated upon retirement: (a) because Messrs. Hale, Pilch, and Simonson were or became retirement eligible during 2006, the cost for
each year indicated opposite their respective names includes the entire grant date fair value of their respective restricted stock unit
awards granted in that year and (b) because Mr. Ruebenson became retirement eligible in May of 2008, the cost for 2008 includes the
entire grant date fair value of his 2008 restricted stock unit award and the cost that had not previously been recognized in our financial
statements for restricted stock and restricted stock awards granted in 2004 through 2007. None of the named executives forfeited any
restricted stock or restricted stock unit awards in 2006 through 2008. The number of restricted stock units granted in 2008 to each
named executive is provided in the Grants of Plan-Based Awards table on page 54. The fair value of restricted stock units and restricted
stock awards is based on the market value of Allstate’s stock as of the date of grant.
(4) The compensation cost recognized in our audited financial statements for the relevant year for stock option awards, computed in
accordance with FAS 123R disregarding any estimate of forfeitures. Under FAS123R, the cost of these stock option awards must be
amortized over the shorter of the vesting period or the period ending on the executive’s retirement eligibility date. Even though the
awards vest in installments over four years and vesting is not accelerated upon retirement: (a) because Messrs. Hale, Pilch, and
Simonson were or became retirement eligible during 2006, the cost for each year indicated opposite their respective names includes the
entire grant date fair value of their respective awards granted in that year and (b) because Mr. Ruebenson became retirement eligible in
May of 2008, the cost for 2008 includes the entire grant date fair value of his 2008 award and the cost that had not previously been
recognized in our financial statements for awards granted in 2004 through 2007. None of the named executives forfeited option awards
Footnotes continue
51
Proxy Statement