Even as Allstate Corp. awarded its Chief Executive Edward Liddy a 14 percent pay increase last year, the company’s year-end results were mixed.
Net profit for the year fell 19 percent to $2.2 billion, largely due to a drop in realized gains from investments. But Allstate’s shares shot up 81 percent in 2000, as investors returned to reliable old-economy stocks and market-watchers forecast an uptick in the price of car and home insurance.
Separately, Liddy made $7 million profit last year from exercising stock options. He stands to make $13 million from current stock options, if Allstate shares continue to grow at 10 percent or more per year.