Liberty Mutual CEO David Long. <\/p>\n
David Long, the chief executive of Liberty Mutual, earned nearly $17 million in 2016, an 8 percent increase, even as the companys profits faltered, the insurer disclosed on Friday. <\/p>\n
The Boston-based mutual insurance company saw its profits plunge in 2015 and for the first half of 2016 due to losses related to energy investments and its withdrawal from the Venezuelan market. In 2015, the company reported that profits fell by more than 70 percent, to $514 million, from $1.8 billion in 2014. Energy losses continued to drag down Liberty Mutuals bottom line during the first half of 2016. <\/p>\n
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The company, which sells home, auto, and business insurance, is expected to report full-year 2016 results next month. <\/p>\n
Yet even with those losses, Longs pay grew from $15.7 million in 2015 to $17 million last year. <\/p>\n
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The companys other top executives also saw their compensation packages increase by between 6 and 9 percent, Liberty Mutual reported. <\/p>\n
Long, who has been leading the company since 2011, earned much of his compensation through long- and short-term bonuses; perks such as security protection, parking, and personal use of the corporate aircraft; as well as other incentives. His base salary last year was $1.2 million. <\/p>\n
Liberty Mutual officials said that Longs short-term bonus, which is tied to the insurers lagging 2015 performance, barely budged from the previous year, a reflection of the companys falling profits that year. <\/p>\n
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But his long-term bonus is based on Libertys Mutuals 2013 and 2014 performance, which officials have described as strong, boosting Longs overall compensation. <\/p>\n
Liberty Mutual disclosed its pay packages to comply with state regulations that require insurers to report the compensation of their top executives each year. <\/p>\n
As a mutual insurer, Liberty Mutual is owned by its policyholders, rather than shareholders. <\/p>\n
However, in mutual insurance companies, policyholders, despite their status as owners, have very limited oversight over how firms spend their money. <\/p>\n
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Liberty Mutual's CEO earned $17 million pay package in 2016 - The ... - The Boston Globe<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Liberty Mutual CEO David Long. Continue reading