Allstate 2012 Annual Report Download - page 44

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.
401(k)(1) and defined benefit pension • • •
Supplemental retirement benefit • •
Health and welfare benefits(2) •••
Supplemental long term disability and executive physical
program • •(3)
Deferred compensation • •
Tax preparation and financial planning services • •(4)
Mobile phones, ground transportation, and personal use of
aircraft(5) ••
(1) Allstate contributed $.40 for every dollar of basic pre-tax deposits made in 2011 (up to 5% of eligible pay).
(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 only to the senior
leadership team.
(5) Ground transportation is available to members of the senior leadership team only. In limited circumstances approved
by the CEO, members of our senior leadership team are permitted to use our corporate aircraft for personal
purposes. Mobile phones are available to members of the senior leadership team, other officers, certain managers,
and certain employees depending on their job responsibilities.
Retirement Benefits amount equal to what would have been payable under the
ARP if the federal limits did not exist.
Each named executive participates in two different defined
benefit pension plans. The Allstate Retirement Plan (ARP) Change-in-Control and Post-Termination Benefits
is a tax qualified defined benefit pension plan available to
all of our regular full-time and regular part-time Since a change-in-control or other triggering event may
employees who meet certain age and service never occur, we do not view change-in-control benefits or
requirements. The ARP provides an assured retirement post-termination benefits as compensation. Consistent
income based on an employee’s level of compensation with our compensation objectives, we offer these benefits
and length of service at no cost to the employee. As the to attract, motivate, and retain highly talented executives.
ARP is a tax qualified plan, federal tax law limits (1) the A change-in-control of Allstate could have a disruptive
amount of an individual’s compensation that can be used impact on both Allstate and our executives. Our
to calculate plan benefits and (2) the total amount of change-in-control benefits and post-termination benefits
benefits payable to a plan participant on an annual basis. are designed to mitigate that impact and to maintain
For certain employees, these limits may result in a lower alignment between the interests of our executives and our
benefit under the ARP than would have been payable stockholders.
otherwise. Therefore, the Supplemental Retirement Income As noted earlier, we substantially reduced our
Plan (SRIP) was formed to provide ARP-eligible employees change-in-control benefits in 2011. The named executives
whose compensation or benefit amount exceeds the who had previously been parties to certain
federal limits with an additional defined benefit in an
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Executive Compensation
Other All Full-time
Officers and Regular
Named and Certain Part-time
Benefit or Perquisite Executives Managers Employees
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