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Looks like David Long is earning his $50 million. Maybe someday the policyholders will see some benefit and there will be some trickle down to the employees on the front line.
Good article on the pay of their top executives:
http://articles.boston.com/2012-04-25/metro/31393288_1_executive-compensation-liberty-mutual-insurance-premiums
Also found articles regarding allegations that WC adjusters were ordered to deny claims, forge Dr signatures, whatever, in order to make the WC appear profitable.
Jane do you understand how a mutual stock company operates? LMG is a mutual stock company, which allows the board to grant stock options (phantom stock) to it’s executives and officers. Ted Kelly, in almost 20 years of service, never took a dime of his deferred compensation until 2008.
When Kelly took the company over in 1992 it was virtually bankrupt – with roughly $10B in revenues with no operating income, writing primarily workers compensation and operating only in the US. Twenty years later it is the 6th largest insurance company in the world: largest personal lines insurer in south america with a growing global presence in 26 countries. The fact that he never took any compensation out during the first 16 years showed that he was willing to bet everything that the company would grow to what it is.
As for the other executives, they all likely earned their salary. Yes, I said earned. You want to run a fortune 100 company – you aren’t able to do it working 9-5. You want the best of the best, the brightest of the bright, and those who are willing to sacrafice everything for the sake of their job which is to…wait for it…that’s right, make a profit.
Next time anyone wants to complain about an executive’s pay, they should try walking in their shoes for a day – then again that would mean getting up at 4am and in the office by 5am. And not getting home until 8 or 9pm. Long after survivor, the voice, and american idol are over.
To any CEO out there who is running a global fortune 100 company, take your $10MM, you earned it.
LMG (Liberty Mutual Group)is a trade name; Liberty Mutual Holding Co. owns the stock of its various subsidiaries. Perhaps someone can explain how a mutual holding company “pays” or credits dividends back through to the policyholders?
Smoke and mirrors.
They make money because they don’t pay their claims. I had my automobiles insured with them for 17 years and my condominium insured with them for 10 years, and after they refused to honor the contact after an auto accident um claim, I cancelled both policies and will be arbitrating and suing for bad faith. Long and Kelly should eat prison food.
I’m sure that’s the whole story. They just denied your claim for the heck of it. C’mon…late reporting, car not on policy, something? Did you try speaking to a manager or just deal with one poor claims person and now you think the entire 40,000 employee strong company just sucks?
The car was on the policy, the claim was reported on the evening of the accident, and the claims manager has been handling the claim since a policy limits demand was hand-delivered to the branch and not responded to by the claims representative. They conducted an inadequate investigation and, when presented with that demand, retained counsel to delay, deny and not pay my claim, who who retained professional expert witnesses, not to objectively and fairly evaluate my injuries, but with the intent that they minimize their seriousness to make it appear — falsely — there was a genuine dispute about the extent of those injuries. They then paid me, unrepresented, 75% of the policy limit, and when I would not accept, demanded arbitration.
Today Liberty Mutual Insurance laid off my dad, who was a an employee for nearly 20 years, to outsource his job. It is a sad night in our home. In addition to my dad, they laid off his manager, who is a mother to two young children and has a husband in Afghanistan, and several other hard-working, long-time employees. I don’t believe that the Liberty Mutual “values doing the right thing over the easy thing,” as it says in its mission statement, nor do I believe that it has any interest in “the safety or security of peoples’ lives” as it also forcefully claims. Actions speak louder than words: despite these impressive profits Liberty’s interest is to boost the bottom line even at the expense of loyal employees and their well-being. Cheers, Liberty, I hope you have enjoy the extra dollars in your pocket.