Pay More Than Doubles For The Hartford’s CEO, Liam McGee

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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.

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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14 thoughts on “Pay More Than Doubles For The Hartford’s CEO, Liam McGee

  1. p hofperson

    what a crock of BS, sure he has not done much to earn his original salary let alone a raise. wonder how much raise his employees got or did they take a decrease to give him what he got. nonsense.

  2. Tim Crimmins

    Time to shop around for new home and auto policies…
    It’s so nice to know that my premiums are helping pay for premium salaries for the people who watch all of their underlings do the day to day work…

  3. Robin Hood

    Another low life raping the American people. The people of Sherwood forest have no problem with a CEO that makes his fair share. These clowns are robbing the forest . Little John gather the merry men together we have a mission.

  4. Jack

    I agree with Jay, Greed will destroy America. These Masters of the Universe are really not as smart as they sell themselves to be. It’s all a big club and the greed is spreading.

  5. baborn3

    The other day I saw where Sen. Rich[ard] Blumenthal was worth more then $120 Million, since you’re doing “The 1%” envy stories why never something on him?

      1. baborn3

        A “Silver-Spoon” 1%er … worst kind, maybe that’s why he lied about being in Vietnam and not actually being stationed in D.C. (strings were pulled).

  6. Donna Feathers

    Makes me sick and angry !! He drove Bank of America into the ground now The Hartford. Between his compensation packages ands sending jobs over to India he is killing a wonderful company. I worked for The Hartford for 18 years now I am unemployed, along with many other hard working and dedicated employee’s. This has to stop!!!!!!!!!!!!!!!

  7. Disgusted US Citizen-worker

    I agree with Donna. He is a greedy crook. He failed to reported a $400 loss just before cashing in his stock last year. I hope stockholders take him to the cleaners.

    He and his crony crooks are pilfering and destroying a strong US brand with an almost 100% US market.

    They continue to pocket millions at the expense of the US govt, US citizens, workers and shareholders.

    US Citizens must demand protection.

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