By Leslie Scism
MetLife Inc. Chief Executive Steven Kandarian received a $14.6
million pay package for 2013, a 6.9% increase over 2012, when Mr.
Kandarian's pay totaled $13.7 million.
In the company's annual proxy released Tuesday, MetLife's
compensation committee cited earnings improvements that exceeded
both the company's goals and its 2012 results. These included an
11% increase in operating earnings in 2013 to $6.29 billion,
compared with the year earlier, and an increase to 12% operating
return on equity, from 11.3%.
The package includes a base salary of $1.2 million, a $5 million
bonus, and stock and options valued at $7.6 million. Mr. Kandarian
is also the company's chairman and president.
MetLife said in the proxy that the company continued to
emphasize variable, performance-based compensation over fixed or
guaranteed pay, noting that 92% of Mr. Kandarian's total
compensation was variable rather than fixed.
His increased pay comes as insurers generally contend with a
low-interest-rate environment that challenges profitability.
Insurers derive a substantial portion of their income from
investment earnings on their huge bond portfolios. Low interest
rates also raise the cost of hedging programs for insurers' popular
retirement-income products, such as variable annuities with
guarantees of lifetime income.
The next most highly compensated executive identified in the
proxy was William Wheeler, president of the company's Americas
division. He earned total pay of $7.0 million in 2013, up from $6.2
million in 2012, according to the proxy.
Write to Leslie Scism at leslie.scism@wsj.com
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