TITLE
"CEO Pay/Performance Sensitivity in the Insurance Industry," Journal of Insurance Issues, Alex H. Wilson and Eric James Higgins. Spring/Fall 2001, Vol. 24, No. 1&2, pp. 1-16. Entire article in Acrobat format.

ABSTRACT
This study compares CEO Compensation practices and sensitivities of insurers with a control group of non-insurance service companies. Results show that CEOs of insurance firms have compensation packages that are similar to those of non-insurers. However, CEOs of property/casualty and insurance brokerage firms have significantly lower salaries and option compensation than those of non-insurance firms. Total compensation in the insurance industry is sensitive to both market returns and firm size but compensation in non-insurance companies is sensitive only to market returns. Additionally, significant differences in the sensitivities of the individual components of compensation exist between insurance and non-insurance firms.