Allstate CEO Tom Wilson collected $15 million in total compensation in 2022, down from $19.1 million in 2021.
Citing the company’s proxy statement filed with the SEC, Crain’s Chicago Business reported that the decrease in compensation was largely due to the annual cash bonus paid for a single year’s operating performance, which came in at 58% of Wilson's target bonus.
Since that target is three times his salary, which sat at nearly $1.4 million last year, the bonus amounted to $2.4 million.
Additionally, Wilson’s stock and options awards were at $11.2 million, increasing 6% from $10.6 million in 2021 and remaining at the board’s target level of 775% of salary.
“Mr. Wilson’s target equity incentive award opportunity of 775% of salary due to progress made toward Transformative Growth goals,” the filing stated.
Allstate’s auto insurance business has been struggling in 2022, with the company posting a net loss of $1.4 billion or $5.22 per share. Book value per share also dropped 29% to $58.07 from $81.52 at the end of 2021.
Despite the poor financial results, Wilson has been credited by the board’s compensation committee for “implementing a comprehensive auto profit improvement plan in response to inflation in loss costs including significant increases in insurance premiums.”
They also applauded him for $3.4 billion given back to shareholders in the form of stock buybacks and dividends, as well non-auto insurance businesses that had “strong operating and financial results” and investment returns that were “significantly better than external benchmarks.”
Amid these comments, Crain’s Chicago Business pointed to previous comments from investors and analysts that highlighted concerns over the Allstate’s aggressive stock buybacks and how its capital base might not be able to support such an approach in 2023.
Moody’s, Standard & Poor’s, and Fitch Group have all placed Allstate on negative watch, the report noted. The company’s stock has also fallen 14.4% so far this year.
Still, the compensation that Wilson collected in 2022 is the lowest since 2016, when he received $13.8 million. Allstate’s net income for that year totaled $1.8 billion or $4.87 per share, according to Crain’s Chicago Business.
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