A proxy statement issued by Allstate Corp. has shown that Chief Executive Edward Liddy’s compensation was cut by 10 percent in 2005, to $11.1 million, the second straight decrease. The Proxy statement is filed with SEC and includes an annual report by the company.
The report also said that Liddy’s bonus plunged 85 percent, to $538,351 and his long-term incentive pay fell 30 percent to $1.62 million.
“Cash bonus and compensation overall is down and is a reflection of earnings of the previous year,” said Allstate spokesperson Michael Trevino. “These types of compensations are tied to company performance.”
Allstate did increase salary and stock options for Liddy. The executive’s salary rose 3.9 percent, to $1.16 million. The company valued his 465,878 stock options at $5.85 million after awarding him 272,000 worth $3.3 million the previous year. Liddy also received restricted stock and restricted stock unit awards valued at $1.84 million.
Trevino said the stock options are long-term investments.
The Northbrook, Ill.-based insurer also cut Liddy’s compensation 13 percent in 2004, to $12.4 million, after $2 billion in pretax losses from four hurricanes, according to a Chicago Tribune and Bloomberg Business report.
Net income fell 45 percent last year, to $1.77 billion, as a result of a record hurricane season and contributed to $5.67 billion in pretax catastrophe claims.
Source: Allstate Insurance Company
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