Before becoming a journalist, or whatever I am, I used to practice law on Wall Street. Attorneys aren’t popular there.
So I’m pleased when a company appreciates its lawyer. But maybe folks at The Travelers Cos. are giving theirs a little too much love.
Alan Schnitzer, a former outside counsel, joined Travelers last April as vice chairman and chief legal officer. The 2007 proxy reveals that over eight months spent in his new job, he earned $10.6 million, enough to make some CEOs jealous. On top of his salary of $448,000, he got a sign-on bonus of $500,000, another bonus of $2 million, and $3.4 million in equity awards.
Tax-Free Perks
The beauty part, though, was the four million bucks that Travelers casually tossed into a deferred compensation account “in recognition of the forfeiture by Mr. Schnitzer of certain pension benefits at his prior employer.”
Then there were nearly $60,000 in tax reimbursements so Schnitzer could enjoy some of his perks tax-free. And another $56,000 went to the folks who helped him negotiate his contract — money well spent, especially since he didn’t have to spend it, and the contract could yield him as much as $13.1 million in severance payments if the love affair goes south.
Lipp’s Son-In-Law
Schnitzer’s package probably didn’t seem outlandish to CEO Jay Fishman, whose own 2007 compensation totaled nearly $20 million, and who spent more than $15,000 per month for personal use of a company car and driver.
To be fair, Travelers (which according to its latest 10-K employs 7,000 people in the Hartford area alone) is a big and complex company, and Schnitzer boasts Ivy League credentials and a long career at a prestigious law firm.
Did I mention though, that the proxy says he’s the son-in-law of Robert Lipp, a Travelers board member and its former chairman? Travelers didn’t mention that in the press release announcing Schnitzer’s arrival. I guess it’s easy to love your lawyer when he’s part of the family.
Wendy Fried, a freelance writer, is a contributing editor at footnoted.org and also blogs about matters corporate at her own site, proxyland.blogspot.com.
