Insurance Company CEO Income

The Consumer Federation of America (CFA) recently did some calculating. The point was to look at the earnings of 10 CEOs of major insurance companies. Admittedly, the CFA has little, or even no, love for insurance companies or the people running them.

The point of the calculating is to note how we’re all struggling to keep up with burgeoning insurance rates while the CEOs of these companies are making millions.

The August of 2023 Consumer Price Index is where the CFA started. There was a 19% jump in auto insurance costs that month. Six of the 10 CEOs in the survey made over $12 million in 2022.

All 10 received over $130 million in compensation in 2022 according to compensation figures generated by the Nebraska Department of Insurance. Their combined earnings in 2021 and 2022 was $253,493,931.

Here’s the bottom-line of the CFA complaints according to CFA researcher, Michael DeLong.

“CEOs are living high on the hog while increasing insurance premiums for people living paycheck to paycheck,” DeLong said. “Insurers are telling regulators that ordinary consumers have to pay much more for auto and home insurance because the companies are struggling with inflation and climate change, but they are quietly handing CEOs gigantic bonuses. Drivers are required to buy auto insurance and homeowners have to buy coverage to satisfy their loan requirements, so there needs to be more scrutiny of the rate hikes companies are demanding and the huge CEO paydays that are funded with customer premiums,.”

With that, here are the dollar totals of those CEOs:

Thomas Wilson — Allstate

Compensation 2022: $18,902,127

Compensation 2021: $18,368,991

Jack Salzwedel — American Family

Compensation 2022: $6,745,411

Compensation 2021: $6,808,360

Berkshire Hathaway — GEICO — Todd Combs

Compensation 2022: $13,600,000

Compensation 2021: $13,637,573

Farmers — Jeffrey Daily

Compensation 2022: $9,703,495

Compensation 2021: $7,980,763

Liberty Mutual — David Long

Compensation 2022: $15,399,763

Compensation 2021: $12,189,662

Nationwide — Kirt Walker

Compensation 2022: $3,497,070

Compensation 2021: $3,963,336

Progressive — Susan Griffith

Compensation 2022: $12,748,826

Compensation 2021: $14,462,961

State Farm — Michael Tipsord

Compensation 2022: $24,410,601

Compensation 2021: $24,507,573

Travelers — Alan Schnitzer

Compensation 2022: $20,789,220

Compensation 2021: $19,081,746

UAAA — Steven Peacock

Compensation 2022: $4,820,530

Compensation 2021: $1,875,923

Total compensation

Compensation 2022: $130,617,043

Compensation 2021: $122,876,888

Source link: Insurance Business America — https://bit.ly/3RFQ7Yh