Summary
The Hartford Financial Services Group, Inc. (HIG) filed an 8-K on February 21, 2019, announcing the adoption of a new Annual Incentive Plan (the "Plan") by its Compensation and Management Development Committee, effective for bonus payments related to the 2019 performance period and subsequent years. This Plan is designed to retain and motivate qualified employees, including executive officers, by offering incentive compensation based on the attainment of pre-determined performance goals. The Committee retains significant discretion in administering the Plan, including selecting eligible employees, setting performance metrics, and determining award amounts and payment forms.
Key Highlights
- 1Adoption of a new Annual Incentive Plan (the "Plan") effective for 2019 performance and beyond.
- 2The Plan aims to retain and motivate employees, including executive officers, through incentive compensation.
- 3Bonuses will be based on the achievement of established performance goals, which can be company-wide, business unit-specific, individual, or a combination.
- 4The Compensation Committee has broad discretion in administering the Plan, including participant selection, goal setting, and award determination.
- 5Performance goals can be absolute, relative to internal targets, past performance, peer companies, or indices.
- 6Awards may be paid in cash or other forms as determined by the Committee, and are subject to recoupment under certain circumstances.
- 7The new Plan replaces the previous Executive Bonus Program approved by shareholders in 2014.
Frequently Asked Questions
The primary purpose of the new Annual Incentive Plan is to serve as a tool for The Hartford to retain and motivate its qualified employees, including executive officers, by offering them incentive compensation tied to the achievement of specific performance goals.
Designated employees of The Hartford and its Subsidiaries are eligible to participate. This explicitly includes the Company's Executive Officers, as defined within the Plan. The Compensation Committee has the authority to select which employees are eligible.
Bonuses will be determined based on the attainment of performance goals established for the Company's fiscal year or other designated periods. These goals can be set on a company-wide basis, for specific business units, or based on individual performance. The Compensation Committee will assess the achievement of these goals and determine the actual award payments, though they retain discretion to adjust amounts.
Yes, the new Annual Incentive Plan replaces The Hartford's Executive Bonus Program, which was approved by the Company's shareholders in 2014 and was the framework for setting executive bonus awards for 2018 and prior performance periods.