8-KMaterial Agreements

ALLSTATE CORP 8-K Report, Material Agreement (Jul 29, 2005)

Filed July 29, 2005For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

This 8-K filing from Allstate Corporation, dated July 29, 2005, primarily reports on the compensation arrangements for its President and Chief Operating Officer, Thomas J. Wilson. The Compensation and Succession Committee approved an annual cash incentive award opportunity for Mr. Wilson for the portion of 2005 he served in his new role. The incentive structure is a mix of corporate-wide and specific divisional performance metrics, reflecting a balanced approach to rewarding leadership. Investors should note that this filing focuses specifically on executive compensation and does not contain broad financial performance updates or material business developments. The detailed breakdown of performance goals, including adjusted operating income per diluted share, combined business unit results, premium growth, policy growth, combined ratio, sales of Allstate Financial products, expense ratio reduction, and customer loyalty, highlights the company's strategic priorities for the year. The award will be administered under established incentive compensation plans governing executive officers.

Key Highlights

  • 1Report details the annual cash incentive award opportunity for Thomas J. Wilson, President and COO.
  • 2Award is for the portion of 2005 Mr. Wilson serves in his new role.
  • 3Incentive is split 50/50 between corporate performance and Allstate Protection executive performance goals.
  • 4Corporate performance metrics include adjusted operating income per diluted share and combined business unit results.
  • 5Allstate Protection metrics encompass premium growth, policy growth, combined ratio, sales of Financial products, expense reduction, and customer loyalty.
  • 6Award will be paid under the company's Annual Covered Employee Incentive Compensation Plan or Annual Executive Incentive Compensation Plan.
  • 7Filing indicates a focus on aligning executive compensation with key business and financial objectives.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the approval of the annual cash incentive award opportunity for Thomas J. Wilson, President and Chief Operating Officer of Allstate Corporation, for the portion of 2005 he held that position. It details the performance-based metrics tied to this award.

Mr. Wilson's incentive award is split equally (50/50) between two sets of goals. The first 50% is based on corporate-level performance, specifically adjusted operating income per diluted share and combined business unit results. The second 50% is based on performance goals for Allstate Protection executive officers, which include premium growth, policy growth, combined ratio, sales of Allstate Financial products, expense ratio reduction, and customer loyalty.

No, this 8-K filing does not provide a general update on Allstate's overall financial performance. Its scope is specifically limited to disclosing the details of the executive incentive award for Mr. Wilson.

The award will be paid under either the registrant's Annual Covered Employee Incentive Compensation Plan (for 'covered employees' as defined by Section 162(m)(3) of the Internal Revenue Code) or the registrant's Annual Executive Incentive Compensation Plan (for other executive officers).