Ted Kelly who was the CEO of Liberty Mutual Insurance for thirteen years prior to retiring last June was paid $50,000,000 a year from 2008 – 2010. That’s $24,000 per hour or $192,000 per day. The Boston Globe reports:
As with other companies, Liberty Mutual’s board of directors sets the chief executive’s pay. The board includes Thomas May, the chief executive of Northeast Utilities, which this week merged with NStar, and William C. Van Faasen, chairman of Blue Cross Blue Shield of Massachusetts Inc. Kelly said board members earn about $200,000 a year each, in line with what directors earn at companies of similar size.
But Kelly’s paycheck raised eyebrows, both because of its sheer size and because Liberty Mutual is owned by its policyholders, rather than shareholders. Any surplus profits are supposed to go to policyholders, rather than executives, or be reinvested in the company.
Policy Holders? What did they do to earn any of Liberty Mutual’s profits? I’ll bet that many of them recieved payments for some horrible casualties. Just think how much Mr. Kellly could have made if Liberty Mutual only insured people who never drive their cars and live in fireproof homes. Based on Kelly’s compensation, you gotta wonder if that’s not what they do.
In additon to his exhorbitant compensation he had a few perks including access to five corporate jets housed in a private hangar at Boston’s Hanscom Field:
… including three Gulfstream 450s and two high-end Bombardiers, about $150 million worth of big, powerful, long-range aircraft, all of them housed in a state-of-the art 30,000-square-foot hangar with heated ramps. Basically, your friendly Boston-based insurer, the one that just got $46.5 million in city and state tax breaks, has its own air force.
Is any CEO worth that much? I’ll answer that question for you – NO!!!!!!!!!!!!!!
Maybe he was worth a few million and maybe he could live a lush life on that income. I know I could.
The way I figure it, he was overpaid by at least $40,000,000 a year. His buddies on the board who were paid $200,000 a year to set his salary obviously thought otherwise.
And any company that makes enough profit to overpay somebody that much money shouldn’t be getting tens of millions of dollars in city and state tax breaks.
You Liberty Mutual policy holders might wonder why your insurance rates went up over the past decade. Now you know: Your rates went up to meet the insatiable demands of their greedy CEO.
Anybody have any reservations about taxing this guy at 70% to 91% like they did in the good old post-WWII days? Not me.