Liberty Mutual CEO’s Pay Up 24% To $6.6 Million Last Year

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The CEO of Liberty Mutual Holding Company Inc. made $6.63 million last year, up 24 percent from 2012, not including $4.67 million in incentives that will provide value in future years and depend on the company’s performance.

Company CEO David H. Long’s compensation included $1.08 million in salary, $4.91 million in a bonus, $327,380 in value realized on restricted units and $318,983 in “other compensation,” according to a Massachusetts state filing made public Friday.

This is the second year that mutual insurance companies in Massachusetts — such as Liberty Mutual or Massachusetts Mutual Life Insurance Co. — have disclosed their executives’ compensation.

A Massachusetts law took effect July 1, 2012, requiring mutual insurers to publicly reveal their executives’ compensation, which had not been public before.

Mutual insurers are owned by policyholders, unlike publicly traded companies owned by shareholders. Publicly traded companies disclose executive compensation each spring in a proxy filed with the U.S. Securities and Exchange Commission.

Mutual companies don’t have stock, which is offered to executives at publicly traded companies as an incentive to boost the company’s performance. Mutual companies do, however, use performance units which act as phantom stock, emulating a company’s market value. In Liberty Mutual’s case, appreciation units and restricted units “will provide a value at a future date based on the company’s book value when they are redeemed by an executive,” according to the company.

Liberty Mutual’s Chief Financial Officer Dennis J. Langwell was compensated $2.15 million, not including $1.05 million in appreciation units and restricted units that will provide value in future years and depend on the company’s performance.

Chief Investment Officer A. Alexander Fontanes was compensated $3.99 million, not including $1.65 million in appreciation units and restricted units that have value in the future.

Executive Vice President Timothy Sweeney was compensated $3.7 million, not including $1.5 million in appreciation units and restricted units.

Executive Vice President J. Paul Condrin III was compensated $3.7 million, not including $1.62 million in appreciation units and restricted units.

As of last year, Liberty Mutual had 539 employees at offices in Wallingford, Stamford, Glastonbury, Norwich, Trumbull, Middlebury, Bethel, Farmington, Cromwell, Windsor, Rocky Hill and Vernon. Farmington has two offices.

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About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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