What is the basis for the annual incentive compensation for The Hartford's named executive officers?

The annual incentive compensation is determined by an incentive pool equivalent to 1.0% of the Company's total adjusted core earnings for the respective year (2006 or 2007). The actual award is a portion of this pool, subject to maximum limits and the Compensation Committee's discretion based on performance.

How were the '2004 Performance Shares' awarded?

The '2004 Performance Shares,' established for the performance period January 1, 2004, to December 31, 2006, were awarded based on the achievement of pre-established performance objectives. The Compensation Committee determined that the performance targets were met and elected to pay these awards entirely in The Hartford's common stock.

When will more detailed information about executive and director compensation be available?

The company intends to provide additional and more comprehensive details regarding executive and non-employee director compensation for the year ended December 31, 2006, in the proxy statement for its 2007 Annual Meeting of Shareholders.

What changes are being made to the compensation for non-employee directors?

Effective May 16, 2007, the annual retainer payable to the chairperson of the Board's Compensation and Personnel Committee will increase from $10,000 to $25,000.

HIG/HIG-PG 8-K: Regulation FD

Summary

This Form 8-K filing from The Hartford Financial Services Group, Inc. (HIG), dated February 23, 2007, provides details on executive and non-employee director compensation as of February 21, 2007. The report outlines the criteria for annual cash incentive awards for named executive officers for both 2006 and 2007, based on a percentage of adjusted Company core earnings, with maximum award limits tied to base salary or a fixed dollar amount. It also details the achievement of performance objectives for a three-year period (2004-2006) related to '2004 Performance Shares,' with awards to be paid entirely in company stock. Key elements include the structure of the incentive pool, allocation percentages among top executives, and the Committee's discretion in determining actual payouts. Additionally, the filing announces an increase in the annual retainer for the Chairperson of the Compensation and Personnel Committee, effective May 16, 2007. Investors can find more comprehensive compensation details for 2006 in the company's upcoming proxy statement.

Key Highlights

1The Hartford's named executive officers' annual cash incentive awards for 2006 and 2007 are tied to 1.0% of adjusted Company core earnings.
2Maximum annual incentive awards for named executive officers are capped at 300% of base salary (for 2006) or target incentive (for 2007), or $5 million, whichever is less.
3Specific allocation percentages of the incentive pool are defined for the CEO (30%) and other top executives (20%, 15%).
4Performance objectives for the 2004-2006 period related to '2004 Performance Shares' were met, with awards to be paid in company stock.
5The Compensation and Personnel Committee has discretion to adjust actual incentive payouts based on performance and financial events.
6The annual retainer for the Chairperson of the Compensation and Personnel Committee will increase from $10,000 to $25,000 effective May 16, 2007.

HARTFORD INSURANCE GROUP, INC. 8-K Report, Regulation FD Disclosure (Feb 23, 2007)

Summary

Key Highlights

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