(Bloomberg) — Genworth Financial Inc. (NYSE:GNW), the biggest seller of private long-term care insurance (LTCI), paid Chief Executive Officer Tom McInerney $12 million for his first year on the job.
The insurer’s stock doubled during that period.
McInerney’s package included a $3 million bonus, $7.06 million in stock options, and a salary of almost $1 million, the insurer said today in a regulatory filing.
Profit has been recovering at Genworth as the insurer raises prices for LTCI policies and a recovery in home values bolsters the mortgage-insurance unit. McInerney, 57, started on Jan. 1, 2013, and announced 400 job cuts in June. The company said the cuts could save it as much as $90 million annually.
“We expect the company to generate strong earnings growth and return on equity expansion over the next few years,” Suneet Kamath, an analyst at UBS AG, said in a March 19 research note. Genworth “is positioned to begin returning capital to shareholders in the year ahead.”
McInerney, a former ING Groep N.V. executive, joined Genworth from Boston Consulting Group, where he served as an adviser. Genworth said McInerney’s target bonus was $2 million when the firm hired him.
He replaced Michael Fraizer, who left on May 1, 2012, after overseeing a share decline of more than 80 percent since 2006. Fraizer got a $2.25 million payment after he resigned from the insurer.
–With assistance from Noah Buhayar in New York.