UPC Insurance execs get big pay hikes

Five executives at United Insurance Holdings Corp. in St. Petersburg saw their total compensation increase by double-digit percentages in 2018.

John Forney, president and CEO, United Insurance Holdings

John Forney, president and CEO, had a 39.3 percent increase in compensation, with a $3.27 million pay package in 2018, according to a proxy the property and casualty insurer filed with the U.S. Securities and Exchange Commission.

He’s the second local insurance CEO to get a substantial compensation increase in 2018. Bruce Lucas, chairman and CEO of Heritage Insurance Holdings Inc. (NYSE: HRTG) in Clearwater, had a nearly 30 percent increase.

The median compensation for 132 chief executives of S&P 500 companies increased about 6 percent last year, an analysis by the Wall Street Journal found.

United Insurance, which goes by UPC Insurance, grew revenue by 17.7 percent last year to nearly $724 million. It achieved other strategic goals such as forming Journey Insurance Co., a new subsidiary, as well as taking steps to monitor risk and keep losses low.

Hurricane Michael in Florida and Hurricane Florence in North Carolina last year cost the company about $50 million.

UPC, like nearly all public companies, pays for performance, based on financial goals and individual performance. Gross written premium came in above target levels for 2018, although core earnings per share were below a threshold, and each of the named executives warranted incentives payments above the target levels, the proxy said.

In addition to a $1 million salary, Forney was awarded stock valued at $1.3 million and a $900,000 cash incentive payment.

His 2018 pay package was about 44.3 times that of the median UPC Insurance employee, who made $73,881 last year.

Other UPC C-level executives’ pay hikes ranged from 13.4 percent to just under 50 percent.

• Bradford Martz, chief financial officer, $1.09 million, up 39.4 percent from 2017
• Deepak Menon, chief revenue officer, $945,933, up 13.4 percent
• Paul DiFrancesco, chief operating officer,  $775,368,  up 17 percent
• Scott St. John, chief claims officer, $690,019, up 49.9 percent.

Shareholders can cast advisory “say on pay” votes at the annual meeting May 7 at the company’s St. Petersburg headquarters.