Sun Life Financial CEO Dean Connor, speaks to the media during a press conference at the company's Toronto office on Thursday, March 8, 2012.Michelle Siu for The Globe and Mail
Chief executive of Sun Life Financial Inc., Dean Connor, took home nearly $8-million in 2012 -- his second year on the job -- compared to $5.1-million a year earlier.
This compensation package comes after Sun Life rebounded to annual profits of $1.6-billion last year, up from a reported loss of $370-million in 2011. Mr. Connor called 2012 a "transformational" year in the company's most recent earning release after the company sold its U.S. annuities and life insurance business and moved to reduce its risk profile.
Krystyna Hoeg, chair of the management resources committee, and board chairman James Sutcliffe wrote in a letter within the company's proxy circular that the earnings were "positive results particularly in the context of a low interest rate environment."
Mr. Connor's base salary was $950,000 and he received an annual bonus of $2-million. The balance of his pay package was largely made up of $2.4-million each of share awards and stock options. His pension gains were a relatively low $261,940.
The other four executives charted in the circular all saw their pay rebound in 2012, from the year before, where they each took hits as a result of that sharp loss of profits.
The circular also shows that Mr. Connor earned $3.6-million in 2010, but at the time he was acting as chief operating officer for the insurer. Mr. Connor replaced long-time leader Donald Stewart, who retired.
Mr. Sutcliffe and Ms. Hoeg wrote that "2012 was a good year for our company. As we continue to execute on our four pillar strategy, the board and committee believe the decisions and actions we made will continue to demonstrate a strong link between pay and long-term shareholder value." Sun Life's four pillars include strategies to enhance its business in Canada, the U.S., Asia and through asset management. Through this growth, Sun Life aims to reach $2-billion in profits by 2015.
Last week, Manulife Financial Corp.'s proxy circular showed that CEO Donald Guloien earned $10.45-million in 2012, which also represented a robust increase over this 2011 pay package of $8.67-million.
(Jacqueline Nelson is a Globe and Mail Financial Services Reporter.)
Return to Streetwise home page.