Hartford Financial CEO McGee refuses bonus after stock drop

Hartford Financial CEO McGee refuses bonus after stock drop
Despite being eligible for a $1.76 million incentive for 2011, Hartford's CEO Liam McGee declined it.
APR 30, 2012
Hartford Financial Services Group Inc.'s Liam McGee, the chief executive officer battling calls to split his company after a 39 percent stock drop last year, refused a 2011 bonus. McGee's total compensation for 2011 declined 25 percent to $7.94 million, from $10.6 million in 2010, Hartford, based in the Connecticut city of the same name, said today in a regulatory filing. McGee's bonus for 2010 was $1.76 million. Hartford posted the third-biggest decline on the 24-company KBW Insurance Index last year, beating only MGIC Investment Corp. and Genworth Financial Inc. MGIC cut CEO Curt Culver's bonus by more than 40 percent to $743,300 while Genworth's Michael Fraizer was awarded a bonus of $750,000, or one third of his target. “Mr. McGee requested that no year-end bonus be paid to him for 2011,” Hartford said in the filing. “The independent directors determined that Mr. McGee would have otherwise received an incentive award, but they honored Mr. McGee's request and awarded no cash bonus.” Hartford reported bonuses of more than $600,000 for at least five executives. Chief Financial Officer Christopher Swift was awarded a bonus of $725,000 as his total compensation rose 2.7 percent to $3.75 million. McGee is selling and shutting down portions of Hartford's business as the company's biggest investor, John Paulson, presses the firm to split its life insurance and property- casualty units. McGee's plan to shrink the company has helped push Hartford to a 29 percent gain since Dec. 31 in New York trading. --Bloomberg News--

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.