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Modest financial gains for most top State Farm Executives

Mon, 04 Mar 2013 17:14:10 CST
By: Charlie Schlenker

Top executives at State Farm Insurance saw their compensation rise last year in the four to six percent range, with a few large exceptions. According to filings with the Illinois Department of Insurance, State Farm Vice Chair and Chief Operating Officer Michael Tipsord received a 17% hike in pay and bonuses. The document obtained by WGLT under the Freedom of Information Act indicates Tipsord's compensation rose $624,000 to $4.34 million. In comparison, State Farm Chairman Ed Rust Junior received only a 4% bump in his pay and bonus total. But, the $386,000 increase for Rust puts his total compensation at more than $9.6 million. State Farm lost money in its core business lines last year, but increased net profit and net worth thanks to strong performance in its investments and a generally up year nationwide in the stock market. Paul Eckley, Senior Vice President of Investments and Paul Smith, State Farm's Chief Financial Officer and Treasurer saw their compensation rise by 9% and 12.8% respectively. State Farm uses a three year rolling average evaluation of multiple criteria to set pay and bonuses for its Chief Executive and declines comment on other top managers. Of the top ten Senior Vice Presidents or above at State Farm, only Chief Agency and Marketing Officer Randall Harbert saw a significant decline in compensation. Harbert's package fell by about 4%. About half of the top ten executives at State Farm have compensation that remains below where it was two years ago.

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