A DECREASE IN PAY REFLECTS Woes BUT STILL GOT HARTFORD'S CEO

 

Wednesday, Apr 08,2009, 10:54:01 AM   Click:

Copyright 2009 The Hartford Courant CompanyAll rights reserved Hartford Courant (Connecticut)

Saturday 4 April 2009 FINAL - ISSUE 5

SECTION: MAIN, Pg A5

LENGTH: 417 words


TITLE: A LOW PAY REFLECTS Woes; THE HARTFORD AYER'S STILL GOT 9 million; CEO COMPENSATION

Signature: DIANE Levick dlevick@courant.com



Ramani Ayer, chairman and CEO of The Hartford, pulled down $ 9 million in compensation for the year 2008 - much of it on the old stock options - as the company the price of action has plunged 81 percent during the year and the layoffs began.

In addition, Ayer received new stock options in February 2008, then valued at $ 2 million, the company revealed Friday in a federal statute for the filing of its annual meeting. But at an exercise price of $ 74.88 unit, they are useless unless the share price rises significantly from the Friday closing price of $ 8.74 per share.

Ayer and four other executives were no payments under a long-term incentive program, and only one of five received an annual bonus.

The Hartford Financial Services Group Inc $ posted a net loss of $ 2.7 billion in 2008 and was struggling with investment losses, pressure on its variable annuity business and several drops in ratings.

Ayer's salary of $ 9 million, compared to nearly $ 27 million for 2007, including $ 12.75 million in value from exercising old stock options.

The 2008 settlement included wage that has remained unchanged at $ 1.15 million, restricted stock units that were valued at $ 2 million and are payable in common shares after three years, and 5.7 million the value of the exercise of old stock options. The package included $ 133,943 of compensation, such as corporate contributions to savings plans, personal use of a company car and financial planning and tax.


The decline in earnings in May shellshocked Ayer's not appease some shareholders, but the company Lapierre, spokeswoman Shannon said his compensation was reduced by more than 70 percent calculated under certain federal rules.

"The Hartford is the model of wage compensation to performance, and full compensation for the company on behalf of the executives was significantly lower in 2008 than in 2007," said Lapierre.

Thomas M. Marra, who will retire July 3 as president and chief operating officer, a $ 2.37 million compensation for 2008, down $ 6.64 million in 2007. He received new options in early 2008 worth $ 1.33 million.

Marra of 2008 included a salary of $ 990,000, the units of stock valued at $ 1.33 million and $ 44,379 in other compensation.

A 2008 compensation of $ 2.7 million, including an annual bonus of $ 950,000 was awarded to Neal S. Wolin, former president of the property loss operations. He left the company in February to become deputy adviser for economic policy at the White House and was later appointed by President Obama as vice-secretary of the Treasury.

GRAPHIC: PHOTO: (B & W) MUG Ayer

LOAD-DATE: April 6, 2009

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