Summary
This 8-K filing from The Hartford Financial Services Group, Inc. (HIG) announces a significant change in its executive leadership with the appointment of Lizabeth H. Zlatkus as Chief Financial Officer (CFO), effective May 1, 2008. Ms. Zlatkus, with extensive experience within the company since 1983, previously held co-chief operating officer roles and has a strong background in finance, risk management, and business operations. Her compensation package for 2008 includes a base salary of $825,000, a target cash incentive of $1,000,000, and a long-term incentive opportunity of $2,675,000, with an employment agreement anticipated to be similar to other senior executives. Additionally, the filing details executive compensation practices, including the achievement of performance objectives for a three-year period (2005-2007) related to "2005 Performance Shares." The Compensation Committee determined to award a maximum payout based on performance. The report also discloses a retention bonus of $500,000 for the current CFO, David Johnson, payable on June 15, 2008, concurrent with Ms. Zlatkus's transition. Investors should note the emphasis on performance-based compensation and the planned transition of key financial leadership.
Key Highlights
- 1Lizabeth H. Zlatkus appointed Chief Financial Officer (CFO) effective May 1, 2008.
- 2Ms. Zlatkus has a long tenure at The Hartford (since 1983) and significant experience in finance and operations.
- 3Ms. Zlatkus's 2008 compensation includes a base salary of $825,000, target cash incentive of $1,000,000, and long-term incentive of $2,675,000.
- 4David Johnson, the current CFO, will receive a $500,000 retention bonus payable on June 15, 2008.
- 5The company achieved maximum payout for "2005 Performance Shares" based on performance objectives for the 2005-2007 period.
- 6The Compensation and Personnel Committee oversees executive compensation and is comprised of independent directors.
- 7Detailed executive compensation information for 2007 and 2008 is referenced in attached exhibits and will be further detailed in the 2008 Proxy Statement.