Liam McGee, the chief executive of Hartford Financial Services Group Inc. (HIG), got an $11.2 million pay package in 2012, a 40% increase, after the insurer's stock rose 38% last year.
Mr. McGee's salary stayed steady at $1.1 million, but stock and option awards rose 15% to $7.5 million and he earned a bonus of $2.35 million, according to the company's annual proxy filing Friday. A year earlier, the company said Mr. McGee told Hartford's board of directors he wanted to forgo a bonus after the company's shares fell 39% and profit dropped 61%.
Mr. McGee and his management team have been working to reduce Hartford's debt and refocus on the company's property-casualty, group-benefits and mutual-fund operations while shedding other businesses.
The proxy said the independent directors on Hartford's board "believe the company had an extraordinary year of transformation" and that Mr. McGee "demonstrated strong leadership by taking bold actions to reposition the Company for future growth."
They decided to pay Mr. McGee a bonus that was 34% higher than the target they had set when they initially designed his 2012 pay package.
Mr. McGee has been CEO at Hartford since Oct. 1, 2009. Shares closed at $26.50 on Sept. 30, 2009, the day before Mr. McGee took over the role. The stock closed at $25.17 Friday.
The next highest-paid executive last year was Chief Financial Officer Christopher Swift, who got a $4.89 million pay package, a 30% increase.
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(END) Dow Jones Newswires
April 05, 2013 17:45 ET (21:45 GMT)
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