The 2012 pay package for Liam E. McGee, chairman and CEO of The Hartford Financial Services Group, was more than double what he received in 2011, according to documents filed Friday afternoon with the U.S. Securities and Exchange Commission.
McGee had a total compensation of $4.17 million last year, not including options and stock awards valued at $7.5 million, which vest later and are based on the performance of the company’s stock. Separately, the value of his pension increased by $148,287.
McGee’s pay package included a $1.1 million salary, $2.35 million in non-equity incentive pay, $58,974 in “other compensation,” and $658,349 in federal TARP deferred units.
In 2011, McGee was compensated $2.06 million, not including an increase in his pension or stock and option awards valued at $6.5 million. He voluntarily declined to take a bonus, which he was entitled to receive.
The Hartford’s compensation is different from that of other companies in that it includes deferred units of vested equity related to the $3.4 billion federal Troubled Asset Relief Program bailout, which the company paid back in March 2010.
Last year, Chief Financial Officer Christopher Swift’s compensation was $2.59 million, not including $2.2 million in options and stock awards and an increase of $161,984 to his pension.
Commercial Markets President Douglas Elliot’s compensation was $1.78 million, not including $1.8 million in options and stock awards and an increase of $130,274 to his pension.
General Counsel Alan Kreczko’s compensation was $1.9 million, not including $900,000 in options and stock awards and an increase of $174,470 to his pension.
Chief Risk Officer Robert Rupp’s compensation was $3 million, not including $1.4 million in options and stock awards and an increase of $58,550 to his pension.
The Hartford’s former president of its Wealth Management division, David Levenson, was compensated $7.7 million, not including $1.8 million in options and stock awards. Levenson’s employment with the company ended Sept. 28, 2012, as The Hartford got out of the life insurance business.
The Hartford implemented a major transformation last year. Billionaire hedge-fund manager John Paulson launched a campaign in February 2012 to get support for breaking the company into two parts, essentially property casualty and life. At the time, Paulson used his might as the company’s largest stockholder with 37.5 million shares — 8.4 percent of the company — to force the company to split into two parts.
Instead of a split, the company announced a different plan in March 2012 to break apart the company and focus on the more profitable business segments. The company sold various units: Individual Life to The Prudential Insurance Co. of America; Retirement Plans to Massachusetts Mutual Life Insurance Co.; Individual Annuity to Forethought Financial Group Inc.; and Woodbury Financial to AIG.
The four divestitures benefited The Hartford with $2.2 billion in net statutory capital, most of which came from selling Retirement Plans and Individual Life.
The Hartford’s stock rose last year from $16.81 a share to $22.44 a share between Jan. 3 and Dec. 31, the first and last days of trading in 2012.