Just wait til you see the compensation packages for the crowd that will run California’s Obamacare Health Insurance Exchange.
State Fund board chairman Larry Mulryn, describes the bonuses as performance based. Yet, the ten-fold increase in largesse follows a $334M dollar underwriting loss, and a combined loss ratio of 137.7%.
“Losses like these would not even result in job retention in any private carrier said one broker.”
Executive Payouts: $315,000 for the PR lady!
Individually, State Fund President Tom Rowe again is earning the largest bonus award at $135,000, while the executive team as a whole pocketed just under $425,000 in performance awards for the year (see chart below). The board also extended Rowe’s contract under the same terms for an additional five years effective Aug 2, 2013. Additionally, several members of the executive team will get a raise in 2013 and/or an increase in their retention incentives.
In recognition of the appointment of Beatriz Sanchez as chief operating officer, the board approved a raise for 2013 of nearly $30,000. Sanchez had been senior vice president of claims. Sanchez’ salary is climbing to $156,000 this year from a 2012 base of $126,240. She will also receive a retention bonus of $39,000 annually.
Others receiving a raise in 2013 include Chief Financial Officer Dan Sevilla and Chief Investment Officer Peter Guastamachio. Sevilla received an $8,900 raise to $305,540, while Guastamachio’s salary is climbing $10,000 to $250,000 this year. Sevilla also is receiving a $10,224 increase in his annual retention incentive to $32,472 a year. State Fund’s Chief Risk Officer Ken Van Laar and General Counsel Newman also are receiving increases in their retention bonuses. Van Laar’s is climbing $6,384 to $28,632 this year, while Newman’s is up $10,164 to $33,804.