The Hartford told securities regulators today its incoming chairman and chief executive Liam McGee negotiated an initial pay package totaling $8.2 million.
McGee, 55, who officially assumes his new post on Thursday, will draw $1.1 million in annual salary, Hartford Financial Services Group Inc. revealed this morning in a filing with the U.S. Securities and Exchange Commission.
The former head of consumer banking at Bank of America also will get $2.7 million in restricted stock units and $4.4 million in deferred stock units, the filing said.
The restricted stock will be tied to The Hartford’s repayment of the $3.4 billion in Troubled Asset Relief Program funds the insurer received from the U.S. Treasury earlier this year, the filing said.
Outgoing CEO Ramani Ayer, who will officially retire in November but stay on with the company for a month-long transition period, received a $1.15 million salary in 2008, SEC documents show.
McGee left Bank of America in August after a nearly 20-year career, as CEO Ken Lewis shuffled his management team under pressure from shareholders and the U.S. government in the wake of receiving $45 billion in federal bailout aid.
In addition to serving as president of the Charlotte, N.C. bank’s core consumer and small business banking operations, McGee oversaw BofA’s global technology and delivery in more than 30 countries and had been seen as a possible successor to Lewis.
At the time, McGee said he was leaving to pursue his goal of “running a company.” McGee and his family will relocate to the greater Hartford area.
The change in leadership comes as insurers have seen their investment portfolios slammed by steep drops in stocks, real estate and other financial assets.
Earlier this year, Hartford Financial posted a $1.2 billion first-quarter loss and suspended sales of annuities in Japan and the U.K. in a move to cut costs. At the time, Ayer said Hartford Financial was taking steps to preserve capital, reduce risk and stabilize ratings.
At the company’s annual meeting in May, Ayer defended Hartford Financial’s response to the recession. He announced his retirement in June.
Hartford Financial is one of six life insurers that were approved by the government to tap its $700 billion bailout program. The company received $3.4 billion in funds in late June.
McGee was born in Ireland but grew up in Southern California and speaks Spanish fluently. He graduated from the University of San Diego and got his MBA from Pepperdine University. He also has a law degree from Loyola Law School, according to Hartford Financial.
The Associated Press contributed to this report.
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Reader response:
“Glad to see that The Hartford had the good sense to tie part of his compensation to what gets repaid to the Taxpayers.” — Bruce Sayward, Sayward Companies
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