Progressive CEO Receives $8.4M Compensation, Refuses Bonus

The chief executive of Ohio-based auto insurer Progressive Corp. received 8.8 percent less compensation in 2008 mainly because he declined to accept a performance-related bonus, as investment losses led to the company’s first annual loss in 26 years.

Glenn Renwick, 53, received compensation valued at $8.4 million in 2008, down from $9.2 million in 2007, according to an Associated Press analysis of a proxy statement filed with the Security and Exchange Commission.

He received a salary of $778,846 in 2008, up from $750,000 in 2007 because of an extra paycheck paid to all salaried employees during the year. His salary has been $750,000 since 2002.

Renwick received no long-term performance-related bonus in 2008, compared with a bonus of $832,000 in 2007.

Mayfield Village, Ohio-based Progressive said Renwick, 53, was entitled to a $935,000 bonus last year but he declined it “in view of the significant deterioration in the company’s investment portfolio during the year and the resulting adverse effects on our reported financial results.”

Renwick also received restricted stock valued at $7.5 million when it was granted, about the same as in 2007.

The company also paid Renwick $101,133 in other compensation, down slightly from $102,400 the year before. That included $83,000 for personal use of the company’s corporate jet and $5,300 for a company car.

The AP’s total pay calculations include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.

Progressive is the nation’s third largest auto insurer behind State Farm and Allstate.

Last month, the company reported a 2008 loss of $70 million, or 10 cents per share, as its investment portfolio shed $1.4 billion, or about 10 percent of the invested assets. That compares with a profit of $1.18 billion, or $1.66 per share, recorded in 2007.

Progressive collected $13.6 billion in premiums during the year, down from $13.88 billion the year before. Total expenses rose to $13.1 million from $12.99 million in 2007.

Revenue fell to $12.8 billion from $14.7 billion the year before.

According to Progressive’s proxy filing, total pay for executives is weighted in favor of performance-based compensation that is tied directly to the company’s goals, as well as to stock performance.

The company has about 26,000 employees and about 30,000 independent agents.