Summary
The Progressive Corporation filed an 8-K report on March 21, 2012, detailing compensation arrangements for its executive officers and senior employees. The Compensation Committee approved awards of restricted stock units (RSUs) under the company's 2010 Equity Incentive Plan. These awards are a mix of time-based and performance-based units, designed to align executive interests with company performance and shareholder value.
Key Highlights
- 1Progressive Corporation approved restricted stock unit (RSU) awards to executive officers and senior employees on March 19, 2012.
- 2Time-based RSUs vest in equal installments on January 1st of 2015, 2016, and 2017.
- 3Performance-based RSUs tied to insurance operating results have terms similar to 2011 awards, with an expiration date of January 31, 2017.
- 4New for 2012, performance-based RSUs tied to investment performance were awarded to three executive officers.
- 5Investment performance RSUs will vest based on the company's fixed-income portfolio performance relative to a benchmark of comparable investment firms over 2012-2014.
- 6Vesting for investment performance RSUs can range from 0% to 200% based on percentile ranking against the benchmark.
- 7The investment performance RSU structure is contingent on shareholder approval of a plan amendment at the April 2012 Annual Meeting; unapproved awards will convert to the insurance operating results performance structure.