Allstate 2008 Annual Report Download - page 60

ALL OTHER COMPENSATION FOR 2008—SUPPLEMENTAL TABLE
(In dollars)
The following table describes the incremental cost of other benefits provided in 2008 that are included in
the ‘‘All Other Compensation’’ column.
Personal Total
Use of Tax 401(k) All Other
Name Aircraft(1) Gross-Ups Match(4) Other(5) Compensation
Mr. Wilson 2008 10,030 0 5,750 34,158 49,938
Mr. Civgin 2008 0 0 3,173 4,421 7,594
Ms. Mayes 2008 0 2,893(2) 5,750 34,249 42,892
Mr. Ruebenson 2008 0 0 5,750 17,938 23,688
Mr. Simonson 2008 0 0 5,750 22,762 28,512
Mr. Hale 2008 0 0 0 7,175 7,175
Mr. Pilch 2008 0 835(3) 5,750 13,886 20,471
(1) The amount reported for personal use of aircraft is based on the incremental cost method. The incremental cost of aircraft use is
calculated based on average variable costs to Allstate. Variable operating costs include fuel, maintenance, weather-monitoring,
on-board catering, landing/ramp fees, and other miscellaneous variable costs. The total annual variable costs are divided by the
annual number of flight hours flown by the aircraft to derive an average variable cost per flight hour. This average variable cost per
flight hour is then multiplied by the flight hours flown for personal use to derive the incremental cost. This method of calculating the
incremental cost excludes fixed costs that do not change based on usage, such as pilots’ and other employees’ salaries, costs
incurred in purchasing the aircraft, and non-trip related hangar expenses. For tax purposes, income is imputed to the executive for
non-business travel based on a multiple of the Standard Industry Fare Level (SIFL) rates. We estimate the personal use results in an
increase in corporate income tax expense of approximately $17,404 (which is not included in this column).
(2) The amount reimbursed for the payment of taxes with respect to imputed income for relocation assistance. Relocation assistance is
available for all employees transferred at Allstate’s request.
(3) The amount reimbursed for the payment of taxes with respect to imputed income for tax preparation services. We eliminated tax
gross-ups for imputed income relating to tax preparation services, effective January 1, 2008 for the senior management team and
effective January 1, 2009 for elected and appointed officers.
(4) Each of the named executives participated in our 401(k) plan during 2008. The amount shown is the amount allocated to their
accounts as employer matching contributions.
(5) ‘‘Other’’ consists of premiums for group life insurance and personal benefits and perquisites consisting of cell phones, tax preparation
services, financial planning, executive physicals, ground transportation, and supplemental long-term disability coverage, and for
Ms. Mayes, additional expenses for relocation assistance that were not part of the standard relocation package. None of the personal
benefits and perquisites individually exceeded the greater of $25,000 or 10% of the total amount of these benefits for the named
executives. There was no incremental cost for use of the cell phone. We provide supplemental long-term disability coverage to regular
full-time and regular part-time employees whose annual earnings exceed the level which produces the maximum monthly benefit
provided by the Group Long Term Disability Insurance Plan. This coverage is self-insured (funded and paid for by Allstate when
obligations are incurred). No obligations for the named executives were incurred in 2008 and so no incremental cost is reflected in
the table.
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Proxy Statement