The Bermuda-based White Mountains Insurance Group has elected Ray Barrette as Chairman and CEO, effective immediately. He succeeds Jack Byrne, who has retired from the Company, as Chairman and Steve Fass as CEO.
Byrne commented: “With great regret, I must retire completely at this time. What a wonderful adventure it has been! From the Fireman’s Fund public offering twenty two years ago to today, I cherish the confidence and support I have received from my fellow directors, our talented managers and, importantly, from our owners.”
“I have no doubt that Ray Barrette is the right person to lead the Company going forward. In fact, Mrs. Byrne and I have given Ray a full proxy to vote our shares. The Board is excited about Ray’s return to full time management and has great confidence in the future of the Company under his leadership.”
Commenting on Fass, Byrne stated: “Steve has made strong contributions over many years. I asked him to stay. I am disappointed that he has elected to retire from active management but pleased that he will remain as a director and advisor. The Company is in terrific shape. We finished 2006 on a strong note.”
Barrette is coming back to his former position as CEO, following his retirement as an officer and director in October 2005. He returned as a director of the Company in August 2006. Barrette originally joined the Company in 1973.
Commenting on his return, Barrette stated: “I am excited about rejoining a strong management team and to assume leadership of the Board. I appreciate the Board’s confidence and support. I will strive to always deserve both. The Company has some terrific opportunities and I can’t wait to get started. Some tactics may change but we remain focused on our mission of delivering superior returns to our owners.
“On behalf of myself, the rest of the Board, our employees and our owners, I want to thank Jack for his dedication to this Company for the past 22 years. All of us who have had the privilege of being associated with Jack are humbled by his energy and talent. Thank you, Jack, and please take care of Dorothy and yourself and enjoy a long retirement.”
White Mountains also noted that, “as a material inducement to accept his position, the Compensation Committee and the Board of the Company approved the following equity grants to Mr. Barrette: (1) 200,000 seven-year options that vest in equal annual installments over five years and that have an initial exercise price of $650 per share that escalates each year by 5% less the annual regular dividend rate, (2) 35,000 restricted shares that vest in equal annual installments over five years, and (3) 15,000 restricted shares that vest in the event of a change of control of the Company within the next five years. These grants are the only equity awards that are intended to be granted to Mr. Barrette over the next seven years.
In the event of a change in control of the Company or if Mr. Barrette is terminated without cause, all unvested options and restricted shares will vest. Mr. Barrette does not have an employment contract and has no other severance arrangements with the Company.”
White Mountains is the parent Company of the OneBeacon Insurance Group, Esurance, White Mountains Re, Folksamerica Re, and Sirius International.
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