Posted on 28 Mar 12
On the same day The Hartford said it would break apart its life insurance operations, the company offered a $2 million bonus to the head of that division if he sticks around through next February.
David Levenson, executive vice president and president of the company's Wealth Management division — which comprises the life insurance operations, was offered the retention bonus on March 21, according to paperwork filed late Friday with the U.S. Securities and Exchange Commission.
He is entitled to receive the bonus if he remains actively employed by The Hartford Financial Services Group through Feb. 28, 2013. He is also entitled to the bonus is he is fired before then, which means the only way he won't receive it is if he voluntarily leaves before the end of February.
Under the breakup plan, the company will stop selling new individual annuities on April 27. The company also hopes to sell its individual life insurance business, retirement plans and its Woodbury Financial Services brokerage. The Hartford is focusing on property-casualty, group benefits and mutual funds, all of which are more profitable segments and less volatile lines of business.
Levenson has been with The Hartford since 1995, joining the company from Fidelity Investments. He headed the development of the company's mutual fund operations and ran the business of retirement plans before heading up retail products. In 2005, he became managing director of sales and marketing for Hartford Investment Management Company, HIMCO.
This is separate from Levenson's annual pay. The Hartford will likely file paperwork this week or in early April detailing how much the company’s executives received in pay last year. That information is filed this time of year with the U.S. Securities and Exchange Commission.
In 2010, Levenson was compensated $3.2 million, not including $1.3 million in stock awards that vest later based on the company's financial performance.
Between 2006 and 2009, Levenson was with Hartford Life Insurance K.K., the company's Japan subsidiary. He started there as head of product and distribution, then became president and CEO. He came back from Japan in the summer of 2009 to become executive vice president of the company's "in-force domestic" variable annuity business — which suffered dramatically during the recession — and its international and institutional business segments.
The Hartford’s CEO Liam E. McGee restructured the company in April 2010, creating three divisions: Wealth Management, Consumer Markets and Commercial Markets. Levenson was appointed to head Wealth Management in July 2010 when the former president of Hartford Life, John C. Walters, left to "pursue other opportunities."
Levenson holds a Bachelor's degree in business from the Wharton School at the University of Pennsylvania and a Master’s in business administration from Columbia University.