Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Allstate Corp       

ALLSTATE CORP

SummaryChartsNewsRatingsCompany 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Allstate Shareholders Give Increased Approval On Pay

share with twitter share with LinkedIn share with facebook
05/22/2012 | 03:39pm EDT

--Investor approval for Allstate's executive compensation rises

--Increase comes after pay reforms

--CEO Tom Wilson gets more votes for board seat than last year

(Updates comment from CEO in the eighth paragraph, discussion of agents beginning in the ninth.)

 
   By Erik Holm and Joann S. Lublin 
 

Shareholder approval for Allstate Corp.'s (ALL) compensation packages for senior executives rose dramatically after the company reformed some pay practices, according to preliminary results announced at its annual meeting Tuesday.

Some 92% of votes cast were in favor of the nonbinding say-on-pay resolution, up from last year's roughly 57%.

All nominees were elected to the board with support from more than 90% of shareholders who voted, including Chief Executive Officer Tom Wilson, who earned just 68% approval in 2011. Last year's vote for Wilson was the lowest of any CEO of a company in the benchmark Standard & Poor's 500 Index.

Wilson and the board of directors met with shareholders after last year's votes, and the company made changes in stock ownership guidelines, long-term performance pay practices and the benchmark used the evaluate the cash portion of executive pay packages.

Still, a handful of investors had said before the meeting they planned to vote against the say-on-pay resolution after Allstate's board gave Wilson a 20% increase in his pay package for 2011. Many of the changes in pay practices were enacted too late for 2011 but will go into effect with the 2012 package.

Proxy adviser companies Institutional Shareholder Services and Glass Lewis &Co. both advised "yes" votes on the say-on-pay issue, reversing their stances from a year ago. Glass Lewis said the company had taken "very positive steps" in reforming pay but still awarded the company a "D" grade when it came to linking pay to performance in 2011.

All of the company's proposed measures were adopted, including an initiative to reduce the number of shareholders needed to call a special meeting. A shareholder proposal to increase Allstate's disclosure of political contributions was defeated, with roughly 10% support.

"We like the results," Mr. Wilson said in an interview after Tuesday's annual meeting. They reflect the insurer's efforts at "building a more continuous and stronger dialogue with shareholders on governance items," he said.

In his prepared remarks at the meeting, Wilson spoke at some length about the company's roughly 10,000 agents. The company has faced rising dissatisfaction among agents in recent years, has botched some reports showing metrics used to calculate their pay, and plans to cut their base commissions in 2013 while increasing the amount that agents can earn in bonuses.

For the first time, Wilson said the total amount of money spent on agent pay would stay the same or increase. It was a slight change from earlier comments when Wilson said the amount spent on compensation would be unchanged.

"We want our agencies to thrive," Wilson said at the meeting. "When they succeed, we succeed."

During the question-and-answer portion of the annual meeting, the head of the National Association of Professional Allstate Agents, Jim Fish, asked if the board would be taking action on a letter he sent asking the company to hire outside auditors to examine accounting procedures after the errors in performance reports and tax documents earlier this year.

Fish said the errors "have undermined the agents' faith in the company."

The error in the tax documents affected about half of the company's roughly 10,000 agents, and the company said it would reimburse agents for the cost of resubmitting IRS filings, if needed. The other errors were caught before payments were sent to agents.

Wilson said the board had received the letter and that the audit committee "will determine the next steps."

He assured investors that financial results from the company "are accurate and complete" and reiterated that the errors didn't affect agent pay.

"Our goal is to pay all of our agencies the correct amount of money, and on time," he said.

-By Erik Holm and Joann S. Lublin, Dow Jones Newswires; erik.holm@dowjones.com

Stocks mentioned in the article
ChangeLast1st jan.
BASE CO., LTD. -2.15% 4550 End-of-day quote.68.31%
BASE, INC. 2.27% 7210 End-of-day quote.310.83%
THE ALLSTATE CORPORATION 2.57% 96.91 Delayed Quote.-13.82%
share with twitter share with LinkedIn share with facebook
Latest news on ALLSTATE CORP
2018ALLSTATE CORP : annual earnings release
2018ALLSTATE : reg; Goes the Distance by Partnering with RAM Racing's Popular Hot Ch..
PU
2018ALLSTATE : Roadside Services® Works with Lyft to Keep Drivers Moving Even After ..
PR
2018ALLSTATE : and Allstate Agencies Seek to Bring 800 Jobs to the Southwest region
PR
2018ALLSTATE : and Allstate Agencies Hiring 600 individuals throughout Northwest Reg..
PR
2018ALLSTATE : and Allstate Agencies Hiring 600 individuals throughout Northwest Reg..
PR
2018Allstate Promotes Three as President Retires -- WSJ
DJ
2018Allstate Shakes Up Management Team
DJ
2018Allstate President to Retire in February
DJ
2018ALLSTATE : Announces Senior Leadership Changes
PR
More news
Chart ALLSTATE CORP
Duration : Period :
Allstate Corp Technical Analysis Chart | MarketScreener
Full-screen chart
Managers
NameTitle
Thomas Joseph Wilson Chairman, President & Chief Executive Officer
Mario Rizzo Chief Financial Officer & Executive Vice President
Judith A. Sprieser Lead Independent Director
Andrea Redmond Independent Director
Kermit R. Crawford Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
ALLSTATE CORP-0.96%30 267
TOKIO MARINE HOLDINGS, INC.-23.45%30 890
THE ALLSTATE CORPORATION-13.82%30 267
THE TRAVELERS COMPANIES-14.30%29 715
SAMPO OYJ-22.08%19 847
INTACT FINANCIAL CORPORATION3.19%15 495