Rep. Henry Waxman asks Genworth, Guardian Life and MetLife for details on executives' pay

Henry Waxman, chairman of the House Committee on Energy and Commerce, is asking executives at Genworth Financial Inc., The Guardian Life Insurance Company of America and MetLife Inc. to produce details on executives' pay.
AUG 20, 2009
Henry Waxman, chairman of the House Committee on Energy and Commerce, is asking executives at Genworth Financial Inc., The Guardian Life Insurance Company of America and MetLife Inc. to produce details on executives' pay. The requests, which he made with Bart Stupak, D-Mich., chairman of the House Subcommittee on Oversight and Investigations, are part of the committee's examination of the health insurance industry and its business practices and executive compensation, the committee noted in an announcement on its website today. On Monday, Mr. Waxman, D-Calif., sent letters to 52 carriers, including American International Group Inc. of New York, which had received federal aid, and The Principal Financial Group of Des Moines, Iowa, which did not. Specifically, he asked for the compensation details of each employee or officer who was paid more than $500,000 annually for each year between 2003 and 2008. Mr. Waxman requested details on salaries and bonuses, as well as stock awards and perks, according to a letter on the committee's website. He also called for a table listing all conferences and retreats held outside of company facilities from Jan. 1, 2007, to the present that were covered by the company, as well as the purpose of the events and documented proof of the location, number of participants and costs incurred. Mr. Waxman also asked for information on premium revenue, claims payments, sales expenses and profits for all the companies' health insurance products from 2005 to 2008, along with other data for all units and affiliates controlled by the companies. Carriers have until Sept. 4 to turn in the information on the executives' pay data and company retreats. They have until Sept. 14 to submit documents prepared by the board or by a compensation committee to create executive payment plans for each year from 2003 to 2008, along with the table listing premium revenue and claims payments from 2005 to 2008. Aside from the aforementioned large carriers, Mr. Waxman and Mr. Stupak also demanded information from a variety of state “Blue” health programs, including Blue Shield of California and Blue Cross Blue Shield of Massachusetts. “We received the request, and we're reviewing it now,” Aron Ezra, spokesman for San Francisco-based Blue Shield of California, wrote in an e-mail. “We are currently reviewing the request,” Sonja Sorrel, The Principal's spokeswoman, wrote in an e-mail. “Since The Principal is a public company, some of the information requested is already publicly available.” Calls to AIG, Guardian and MetLife, all of New York, and calls to Genworth of Richmond, Va., and Boston-based Blue Cross Blue Shield of Massachusetts, weren't immediately returned. See the list of carriers here. See copies of letters to executives here.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

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.