- The Washington Times - Thursday, March 19, 2009

NEW YORK (AP) - The chairman, president and chief executive of Chubb Corp. received compensation valued at $10.7 million in 2008, about 18 percent less than in the previous year, according to an analysis of a regulatory filing Thursday.

John D. Finnegan received a base salary of nearly $1.3 million, unchanged from 2007. The Warren, N.J.-based insurer also granted Finnegan a performance-based bonus of $3.4 million. The bonus, however, was not paid until March 2009.

Finnegan also received perks valued by the company at $205,615. These included financial planning services, use of a car and driver and company contributions to defined savings plans.

Additionally, Chubb granted Finnegan stock awards which had a value of $5.8 million on the day they were granted.

In 2007, Finnegan’s pay package was valued at $12.9 million, according to an Associated Press calculation.

Separate from his compensation package, Finnegan realized about $10.8 million on the vesting of stock awards during 2008.

Like most insurance companies, Chubb’s 2008 performance was hurt by the turmoil in the financial markets. Its fourth-quarter profit dropped 37 percent as it saw huge losses in its investment portfolio. For the year, Chubb earned $1.8 billion, or $4.92 per share, down from $2.81 billion, or $7.01 per share, in 2007.

Chubb’s shares slid 7 percent in 2008 and are down 18 percent so far in 2009.

The Associated Press compensation calculation is designed to isolate the value the company’s board placed on the executive’s total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, 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, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.

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