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.