Summary
This 8-K filing from The Progressive Corporation, filed on March 6, 2012, primarily details the approval and implementation of the 2012 Progressive Capital Management Bonus Plan. The plan is designed to incentivize investment professionals, including the Chief Investment Officer, William Cody, by offering annual cash bonuses tied to the performance of the company's fixed-income portfolio. Key aspects of the plan include a performance benchmark against similar investment firms and a performance factor that can range from 0.0 to 2.0. This factor is then applied to a participant's target bonus amount, which is calculated based on eligible earnings and a target percentage. Additionally, the filing discloses the determination of Mr. Cody's 2011 bonus, which was based on a performance factor of 0.92, reflecting the portfolio's performance relative to its benchmark.
Key Highlights
- 1The Progressive Corporation's Compensation Committee approved the 2012 Progressive Capital Management Bonus Plan on February 29, 2012.
- 2The bonus plan is designed to incentivize investment professionals, including the Chief Investment Officer.
- 3Bonuses are based on the performance of the company's fixed-income portfolio relative to an investment benchmark of similar investment firms.
- 4A performance factor, ranging from 0.0 to 2.0, will be determined by the Compensation Committee.
- 5This performance factor will be multiplied by the participant's target bonus amount to calculate the cash bonus.
- 6The filing also discloses the determination of the Chief Investment Officer's (William Cody) 2011 bonus, which was based on a performance factor of 0.92.
- 7The performance factor for Mr. Cody's 2011 bonus was calculated based on a comparison with 190 similar investment firms.