Douglas Elliot
Mr. Elliot has served as President of The Hartford since July 1,
2014. Previously, he served as President of our Commercial Markets
division. In this prior role, the Compensation Committee approved a
base salary of $750,000, an AIP target of $1,000,000, and a 2014 LTI
award of $2,000,000 granted in the form of 50% stock options and 50%
performance shares on March 4, 2014. When Mr. Elliot became President
in July, the Compensation Committee increased his salary to $900,000,
his AIP target to $1,600,000, and his LTI award target to $4,000,000
based on his significantly expanded responsibilities. No additional
LTI award was made at the time he transitioned to the role of
President.
Based on the process outlined beginning on page 47, the Compensation Committee approved an AIP award of $1,800,000
(138% of target based on his pro-rated salary throughout the year),
consistent with the company AIP funding factor, taking into account
that Mr. Elliot:
Delivered strong financial results across all business lines, with
core earnings, margins, premium growth, and managed expenses that
exceeded plans.
Further strengthened partnerships with agents and brokers in all
businesses, and initiated a fresh and comprehensive review of
Personal Lines since assuming responsibility for that business.
Led improvement across employee engagement, diversity and inclusion,
and talent retention metrics.
Brion Johnson
Mr. Johnson has served as Chief Investment Officer and President of
HIMCO since May 16, 2012. On August 1, 2014, he was also appointed
President of Talcott Resolution. For 2014, the Compensation Committee
approved a base salary of $450,000, an AIP target of $1,000,000 and
an LTI award of $1,100,000 granted in the form of 50% stock options
and 50% performance shares on March 4, 2014. When Mr. Johnson became
President of Talcott Resolution, the Compensation Committee increased
his salary to $500,000 and his AIP target to $1,100,000 in
recognition of his expanded responsibilities. No additional LTI award
was made at the time he transitioned to the role of President of
Talcott Resolution.
Based on the process outlined beginning on page 47, the Compensation Committee approved an AIP award of $1,450,000
(139% of target based on his pro-rated salary throughout the year),
in line with the company funding factor, taking into account that
Mr. Johnson:
Delivered net investment income in excess of plan, with general
account outperforming plan by 76 basis points and one-third of
investment strategies delivering top quartile investment performance
against relevant benchmarks.
Strengthened and built out the fundamental equity capabilities of
HIMCO, including establishing structure and recruiting board of
directors for HIMCO Variable Insurance Trust.
Executed a smooth transition in taking on responsibility for Talcott
Resolution, maintaining strong employee engagement results and
retaining key talent.
Robert Rupp
Mr. Rupp joined the company as Executive Vice President and CRO on
November 2, 2011. For 2014, the Compensation Committee established a
target total annual compensation opportunity for Mr. Rupp based on
market data for CROs at financial services companies as described
under Benchmarking on page 46. This included a base salary of $600,000, an AIP target of
$1,200,000 and an LTI award of $1,400,000 granted in the form of 50%
stock options and 50% performance shares on March 4, 2014.
Based on the process outlined beginning on page 47, the Compensation Committee approved an AIP award of $1,600,000
(133% of target), close to the company funding factor, taking into
account that Mr. Rupp:
Provided key risk management support for the sale of the Japan
annuities business and pension de-risking initiatives.
Enhanced market risk modeling, reporting, and hedging capabilities
with focus on go-forward businesses, resulting in upgrade of
enterprise risk management rating by S&P to adequate with strong
controls.
Improved overall scores on employee engagement and diversity and
inclusion metrics.
Former CEO
Liam McGee
In June 2014, we announced Liam McGee's decision to resign as
President and CEO, and the appointment of a new executive leadership
team, with Mr. Swift assuming the role of CEO on July 1, 2014. In
order to ensure an orderly transition, the independent directors felt
that it was important to retain Mr. McGee's services beyond his
resignation as President and CEO. Accordingly, the company entered
into a transition agreement with Mr. McGee for advisory and
transitional support through April 1, 2015.
Mr. McGee's transition agreement provided for a reduced annualized
base salary of $1 million, a 2014 AIP award based on Mr. McGee's
actual base salary earned during 2014 and the final company AIP
funding factor without any adjustment to