Friday, August 30, 2019

McKinney, Texas-Based Life Insurance Company Global Life (Previously Torchmark) Top-Tier Executives Average Pay Raise Was an Exceptionally Clean, Very Robust 15.5% Per Year During the Past Ten Years (2009-2018)

The third Democratic 2020 Presidential candidate televised debate will be held in Houston, Texas on September 12, 2019.  Texas is also the home state of Julian Castro and Beto O'Rourke, who have both gained significant momentum in the past month.

The key issue to Texas citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of Texas Companies were rewarded with in the past ten years.  And I'll start with the large Texas Non-Oil & Gas Companies. 

The 48th Texas Non-Oil & Gas Company I am addressing here is Global Life Inc (previously known as Torchmark Corp).

From annual compensation information contained in Company Proxy Statement filings with the US SEC, the chart at the bottom below shows Global Life Inc's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the past ten years.
  
Global Life Inc's Top-Tier Executives Average Pay Raise was a clean, very robust 15.5% per year for the past ten years, which is tied for the 31st highest of the 48 large Texas Non-Oil & Gas Companies I have addressed so far.
  1. SailPoint Technologies +278.1% per year for the past two years
  2. Copart +183.2% per year for the past ten years
  3. Q2 Holdings +180.3% per year for the past five years
  4. SolarWinds +114.4% per year for seven of the past ten years
  5. Nexstar Media Group +102.9% per year for the past ten years
  6. Reata Pharmaceuticals +99.5% per year for the past four years
  7. American Airlines Group +85.9% per year for nine of the past ten years
  8. Helen of Troy +84.4% per year for the past ten years
  9. Invitation Homes +78.6% per year for the past two years
  10. Tyler Technologies +61.2% per year for the past ten years
  11. Wingstop +54.2% per year for the past four years
  12. Builders FirstSource +50.9% per year for the past ten years
  13. Vistra Energy +50.6% in the past year 
  14. Rackspace Holdings +50.2% per year for seven of the past ten years
  15. LyondellBasell +45.9% per year for the past eight years
  16. RealPage +29.2% per year for the past nine years
  17. Quanta Services +28.1% per year for the past ten years
  18. Celanese +27.8% per year for the last ten years
  19. National Instruments +25.5% per year for the last ten years
  20. Yum China Holdings +23.8% per year for the past 5 years
  21. Eagle Materials +20.5% per year for the past ten years
  22. D R Horton +20.1% per year for the past ten years
  23. Dell Technologies +18.8% per year for seven of the past ten years
  24. Sysco +18.7% per year for the past ten years
  25. Waste Connections +18.1% per year for the past ten years
  26. Cirrus Logic +18.0% per year for the past ten years
  27. Southwest Airlines +18.0% per year for the past ten years
  28. Sabre Corp +17.7% per year for the past five years
  29. Huntsman Corp +17.3% per year for the past ten years
  30. Westlake Chemical +16.1% per year for the past ten years
  31. Global Life +15.5% per year for the past ten years
  32. El Paso Electric Co +15.5% per year for the past ten years
  33. American Campus Communities REIT +15.4% per year for the past ten years
  34. Atmos Energy +14.4% per year for the past ten years
  35. AT&T +13.8% per year for the past ten years
  36. Waste Management +13.2% per year for the past ten years
  37. Match Group +12.2% per year for the past six years
  38. Service Corp International +10.8% per year for the past ten years
  39. Camden Property Trust +10.4% per year for the past ten years
  40. Tenet Healthcare +10.3% per year for the past ten years
  41. Jacobs Engineering Group +8.7% per year for the past ten years
  42. Texas Instruments +7.2% per year for the past ten years
  43. Cullen/Frost Bankers +6.9% per year for the past ten years
  44. Crown Castle International +6.3% per year for the past ten years
  45. Kimberly-Clark +5.8% per year for the past ten years
  46. CenterPoint Energy +5.8% per year for the past ten years
  47. Lennox international +5.4% per year for the past ten years
  48. Silicon Laboratories +4.4% per year for the past ten years
There have been many US Government laws enacted in the past two decades that have substantially increased income inequality expansion but the only highly effective US Government law enacted by either party in the past two decades that has substantially reduced income inequality expansion is Obamacare and the political right is continually trying to repeal and replace it and three of the top four Democratic Presidential candidates now leading in the polls are effectively running as their principal issue to do in essence precisely the same thing ..... repeal and replace Obamacare ..... but to do it with either a pure or a version of Medicare For All.  

The pure Medicare For All advocated by both Bernie Sanders and Elizabeth Warren and which was co-sponsored in a US Senate bill by Kamala Harris is off-the-charts enormously expensive and would take up an enormous amount of wasted time with no positive result since it has no chance of getting passed legislatively.  The US Government CBO hasn't been able to score the cost of a pure version of Medicare For All so far because the proposals have not been nearly specific enough.  If and when they are specific enough, the CBO scoring will make people shake in their boots and wonder just how any Presidential candidate could propose something so fiscally preposterous.  Just given their near-sighted stance on a pure version of Medicare For All, if the Democratic nominee is any of the three of them, it will be extremely difficult for any of them to beat Trump in the general election.  It is that simple.

On the other hand, if Elizabeth Warren got more rational and wisely altered her position some on Medicare For All, she would have a very good chance of beating Trump. 

My objective is to get a better handle on just why the US and particularly here Texas has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Globe Life 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Coleman Co-CEO       7,832       8,367       8,367       6,208       6,208       5,832       5,832       7,554       7,554       5,793
Hutchison Co-CEO       7,797       8,312       8,312       6,158       6,158       5,798       5,798       7,429       7,429       5,711
Svoboda CFO       3,208       3,351       3,351       2,420       2,420       2,236       2,236       2,646       2,646       1,795
Pressley Chief Investment Officer       2,822       3,117       3,117       2,448       2,448       2,439       2,439       2,827       2,827       2,018
Darden Chief Strategy Officer       2,233       1,977       1,977       1,405       1,405       1,412    
Greer President American Income       2,129       1,590       1,590       1,022    
Smith CEO AIL and LNL       3,429       3,607       3,607       3,589       3,589       4,532       4,532       3,319
Herbel Chief Admin Officer       2,190       1,786       1,786       3,729       3,729       2,719
*
 Totals      26,021     26,714     30,143     23,268     24,436     23,092     21,680     28,717     28,717     21,355
Annual % Change vs Prior Year -2.6% 29.5% 5.8% -24.5% 34.5%
5 Year Average Per Year % Change 8.5%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Globe Life 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
McAndrew Former CEO               8,730       8,068       8,068       6,274       6,274       2,836       2,836       4,711
Coleman Co-CEO       5,793       6,236       6,236       5,467       5,467       2,778       2,778       1,741       1,741       2,161
Hutchison Co-CEO       5,711       5,792       5,792       5,375       5,375       2,843       2,843       1,639       1,639       2,045
Svoboda CFO       1,795       1,422       1,422       1,206       1,206          936    
Smith CEO AIL and LNL       3,319       3,335       3,335       2,935       2,935       2,128       2,128       1,293       1,293       1,411
Herbel Chief Admin Officer       2,719       3,355       3,355       3,202       3,202       2,286       2,286       1,387       1,387       1,738
Hudson CEO Globe       1,901       2,604       2,604       2,464       2,464       1,774    
Montgomery Chief Actuary       1,839       2,191
 Totals      21,238     22,744     31,474     28,717     28,717     19,019     16,309       8,896     10,735     14,257
Annual % Change vs Prior Year -6.6% 9.6% 51.0% 83.3% -24.7%
5 Year Average Per Year % Change 22.5%
10 Year Average Per Year % Change 15.5%



Posted by at