NEW YORK, May 21, 2007 (PRIME NEWSWIRE) -- National Underwriter Life & Health, a leading weekly magazine providing news and information to the insurance industry, today announced the results of its first Executive Compensation rankings of the largest companies that sell life insurance. The companies in the analysis were ranked according to their admitted assets for the year 2006. Of the $261 million in total compensation of these executives, only $17 million or 6.5% was in actual salary, with the balance accounted for by bonuses, stock awards and non-equity compensation plans.
The data found that the executive in this group with the highest compensation in 2006 was Arthur Ryan, Chairman and CEO of Prudential Financial, who received a package of $25,750,135 and the lowest compensated executive was Pacific Life's James Morris, who was COO in 2006 (now President and CEO), taking in $3,577,602. Based on salary alone, the highest salary was given to Edward Liddy, Chairman and CEO of Allstate Corp., totaling $1,211,545, and the lowest, $244,105, was paid to W.G. Jurgensen, CEO of Nationwide Financial.
In calculating total compensation for these 22 executives, bonuses accounted for 13.5%, or $35,933,205; stock awards represented 17.6%, or $46,154,479; and non-equity incentive plans accounted for a sizeable portion of total compensation, 16.7% or $43,537,010.
The rankings, in order of total compensation, were:
Executive 2006 Compensation
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1. Arthur F. Ryan, Chairman & CEO, Prudential
Financial $25.75 million
2. Edward M. Liddy, Chairman & CEO,
Allstate Corp. $23.98 million
3. Martin Sullivan, President & CEO, AIG $21.23 million
4. C. Robert Henrikson, Chairman, President
& CEO, Metropolitan Life $18.89 million
5. Jon A. Boscia, Chairman & CEO,
Lincoln National Corp. $18.13 million
6. Ramani Ayer, Chairman, President & CEO,
The Hartford $17.49 million
7. Barry Griswell, Chairman & CEO,
Principal Financial $16.85 million
8. Edmund S. Tse, Senior Vice Chairman,
life insurance, AIG $15.83 million
9. Dominic D'Alessandro, President & CEO,
Manulife Financial $13.90 million
10. Thomas Sutton, Chairman & CEO, Pacific Life $12.78 million
11. Stuart Reese, Chairman, President & CEO,
Massachusetts Mutual $10.94 million
12. Edward Zore, President & CEO,
Northwestern Mutual Life $9.94 million
13. Seymour Sternberg, Chairman & CEO,
New York Life $8.77 million
14. Thomas Marra, President & COO,
Hartford Life $8.59 million
15. Herbert M. Allison Jr., Chairman,
President & CEO, Teachers Ins. &
Annuity Association $7.36 million
16. Christopher Condron, Chairman & CEO,
Axa Equitable Life $6.07 million
17. Dennis R. Glass, President & COO,
Lincoln National Corp. $5.21 million
18. Henri de Castries, Chairman, Axa Financial $4.29 million
19. John D. DesPrez III, President & CEO,
John Hancock Financial Services $4.2 million
20. Mark Thresher, President & COO,
Nationwide Financial $4.09 million
21. W.G. Jurgensen, CEO, Nationwide Financial $3.81 million
22. James T. Morris, COO, Pacific Life (in 2006) $3.58 million
Summarizing the survey findings, Steve Piontek, Editor-In-Chief of National Underwriter Life & Health, said, "While these compensation packages may seem high at first glance, we need to remember that many of these executives are running companies that are American icons whose mission is to provide protection to millions of policyholders. Judged from that perspective and also against the compensation of executives in other sectors of the financial services industry, the pay packages of top executives at the largest life insurance companies don't seem out of line."
"Two factors that have raised compensation significantly for life executives over the last decade or so are first, that a number of mutual life insurers went public, which makes stock options available to their top executives; and second, there has been an influx of executives from higher-paying sectors of financial services, creating a situation where life insurance companies need to provide pay packages in line with these executives' former companies."
End Note: This data was compiled by National Underwriter from a wide variety of financial and industry sources and may vary slightly from reported compensation.
The full report and rankings can be accessed at www.lifeandhealthinsurancenews.com.
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