By Leslie Scism
A top-ranking MetLife Inc. executive widely viewed as a
potential successor to Chief Executive Steven Kandarian is retiring
this summer, an unexpected move that sparked speculation about who
might be in the running in the next few years.
The insurer announced that William Wheeler, president of its big
Americas division representing most of its earnings, will leave in
August. Mr. Wheeler, 53 years old, has had a 17-year career at
MetLife, the nation's biggest life insurer by assets. He opted to
take early retirement because he wants to become a company CEO
within the next few years and he wasn't sure how long it would be
before Mr. Kandarian, 63, stepped down, according to a person
familiar with the matter.
Mr. Wheeler was a contender for the top job in 2011 when Mr.
Kandarian was tapped as president and CEO. After Mr. Wheeler was
bypassed, the board approved "special" compensation to retain him
and another senior executive in the horse race. At the time, Mr.
Wheeler was the company's chief financial officer.
Each of the two bypassed executives was awarded shares that
would be worth millions of dollars if they stayed three years. The
other executive was William J. Mullaney, then-president of
MetLife's U.S. business, who departed in late 2011.
Mr. Wheeler said in the company's news release Tuesday that "the
timing is right for me to retire and pursue other interests."
While Mr. Kandarian's predecessor, C. Robert Henrikson, stepped
down as he was about to turn 65, "the company's policy of age 65
retirement can be waived by the board at its discretion," another
person familiar with the matter said. "While change at the senior
executive level typically raises questions about CEO succession,
there is no specific timetable for succession at MetLife," the
person said.
The board's ability to waive the retirement-age policy was a key
factor in Mr. Wheeler's decision to leave, according to the person
familiar with the reasons for his departure.
Meanwhile, directors believe they "have a lot of good
successors" for Mr. Kandarian when he does step down as CEO, the
person said. One highly regarded executive is current finance chief
John Hele, the person said, though no decision has been made.
After being bypassed for the top job, Mr. Wheeler was named
president of the Americas group in an overhaul of the company's
organizational structure to reflect its acquisition of an
international life-insurance business from American International
Group Inc.
Mr. Kandarian said in the release that the executive would help
with a transition while "we will be reassessing the right structure
and leadership for the Americas division." Mr. Wheeler "took on
some of our biggest challenges" in restructuring the company's U.S.
retail business and leading an acquisition of a Chilean pension
business, and "has driven solid financial and operational
performance," Mr. Kandarian said.
Several stock analysts dubbed the departure a negative
development, citing Mr. Wheeler's deep experience in insurance.
"Given his importance at the company, we would have preferred to
see a longer transition period" than just until August, UBS
Securities analysts said in a note to clients. They noted that
MetLife "is still navigating through a challenging environment,
including headwinds from low interest rates," which hold down
earnings on insurers' big investment portfolios.
UBS also cited uncertainty about potential federal regulation of
Metlife as a systemically important financial institution. The
insurer is appealing in federal court the government's move to
subject the insurer to stricter oversight.
Mr. Wheeler was the second most highly compensated executive in
2014 at MetLife, behind Mr. Kandarian. He earned total pay of $6.7
million in 2014, down slightly from $7 million in 2013, according
to the proxy filing.
Of the compensation decline for Mr. Wheeler, the proxy said:
"The Americas business, while delivering solid performance against
plan for 2014, had very strong results in 2013. As a result, Mr.
Wheeler's annual cash incentive award for 2014 is lower than his
2013 award. This 2014 award provides meaningful recognition of
these solid 2014 results and maintains market competitiveness."
Write to Leslie Scism at leslie.scism@wsj.com
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