Principal Financial Group 2012 Annual Report Download - page 6

around the world. And we are committed to providing a
working environment that supports their growth and success.
• We are No. 1 in the largest employer category of
Pensions & Investments Best Places to Work in Money
Management.
• For the 11th consecutive year, IDG’s Computerworld
named us to its List of 100 Best Places to Work in
Information Technology.
• For the 10th straight year, we were named a Top 50
Company by the National Association of Female
Executives.
On behalf of the board of directors, I’d like to thank our
shareholders for your continued support and confi dence
going forward. As our business model continues to generate
more fee-based operating earnings, we are able to extend a
greater share of earnings back to shareholders, leading to
increased long-term value for them.
To that end, The Principal moved to a quarterly dividend
in 2012. Additionally, the total dividend in 2012 increased
11 percent over the previous year. Over time, we expect to
increase our common stock dividend payout ratio, which
was about 30 percent at the close of 2012.
Finally, please be sure to cast your vote in time for the
Annual Meeting of Shareholders on May 21, 2013.
Larry Zimpleman
Chairman, President and
Chief Executive Offi cer
From the Board of Directors:
Excellent corporate governance has been an important part of the Principal Financial
Group heritage and success for 134 years. Effective independent oversight of management
and company operations ensures that the organization is well governed.
Your board of directors is active, engaged and takes its role very seriously. We meet
face-to-face fi ve times each year, including a strategic retreat with senior management.
Additionally, various board committees meet regularly to stay informed, collaborate
and provide counsel.
The responsibilities of the board’s committees are described in the Proxy Statement
and include these examples:
• Pay practices and executive compensation. The Human Resources committee annually
evaluates and determines executive pay practices and compensation, using a third-party
consultant to help ensure best practices. Executive compensation includes annual base
pay and incentive pay, as well as long-term, performance-based compensation.
• Financial management. The Finance Committee meets several times each year to review
company policies and practices related to capital management, investments and fi nancial
plans and projections.
• Social responsibility. In 2012, the charter of the Nominating and Governance Committee
was expanded to include the review of environmental and corporate social responsibility
matters.
Elizabeth E. Tallett
Principal, Hunter Partners, LLC / Presiding Director, Principal Financial Goup
4 SHAREHOLDER LETTER | 2012 YEAR IN REVIEW