How much pay cut did Johnny Boy take in order to save hundreds of jobs at NM. He threw so many hard working loyal employees under the bus when he approved the mass layoff. He didn't suffer at all. Disgraceful!!!! He should be ashamed
John tell us the story how you met your 2nd wife??? It's heartwarming
https://oci.wi.gov/Documents/Companies/FinNWtrnMutLif.pdf
(see page 7)
Would be nice if some of that $2B/mo went toward modest salary increases. No cost of living increases during this inflation surge and top performers in the department earning meager 3% merit raises. All the while the company is having multiple record earnings years in a row.
But leadership please yucking it up that the building remodel is covered with one week of revenue while acting like we're going bankrupt when employees ask to be compensated appropriately in accordance with their own (not in good faith) salary ranges.
Also can't wait to see how the employees benefit from the cute little patch on the baseball players' sleeves. Thanks for going to bat for us, John.
Insurance and investments are not "ok" at NM. The company is no longer a Fortune 100 company thanks to this stellar leadership.
The “insurance/investment thing” originated two CEO’s ago and was established under EZ, the previous CEO beginning with dissolving the Baird relationship and migrating to Pershing.
in 2023 NM has 2B of profit every single month - I think they are doing fine under current leadership. i think the insurance / investment things is workign juuuuust fine
I see so many people allude to the wife and his marriages but no actual story- someone dish.
20 x (MKE+ARV)=IRS
That’s some of what he makes. He bought another plane that sits at MKE that he uses to travel regularly to his lake house. His fake tan as5 needs to go.
You are wrong to assume that the person who started this post was someone who was laid-off. Actually, a lay-off presume a chance to come back. NM's game is RIF - reduction in-force. The real reason they let employees go was to save money of health insurance premiums, pension pay-out's, etc. Older employees just cost too much money. However, their experience cannot be replaced. Yes, they need younger workers in as older workers retire; but, there is a right and a wrong way to do it.
As for JS - anyone making $13m a year is too much when you offshore jobs to India paying those employees cr...p and expecting your onshore employees to cover the work, get it done when offshore can't do it and work hours to accommodate offshore resources.
Having to live in Milwaukee has absolutely nothing to do with why JS should get paid more.
Are you staying up on the news? The dividend rate is no longer the best, they just lost a valuable network office team to LPL. It turns out that their pie-in-the-sky idea about financial planning including both insurance and investments is a bust. It was a lofty idea but no one in the business is making that work. Anyone with a brain knows that was a joke. No client in their right mind wants to stick all their eggs in one basket. If the company goes down they lose everything.
Ok - this analogy is going to sound very old fashioned but there was reason why advice was stated not to have a married couple work at the same company. Same analogy goes for investments & insurance. And, it's part of the struggle for employees. It's not uncommon to work there for 40+ years. They never experienced NM letting people go, It's part of the reason why people are devastated.
Everyone that works at NM both past & present shoulders some of the responsibility. God bless those who got out by choice or force as they will reap the rewards life has to offer.
There are people in NM who make far far more than John btw. Sorry you got laid off man but all the facts still show they are the strongest financial institution in the insurance game and damn near close in the securities game. The guy has to live in Milwaukee for most of his adult life why don't you cut him some slack holy sh–.
https://www.reuters.com/article/us-usa-taxes-jets-insight/off-the-radar-u-s-ceos-jet-perks-add-millions-to-corporate-tax-bills-idUSKBN1Y6131
Are European vacations during the holidays and back-and-forth shuttles to Northern Wisconsin in a brand new Dassault Falcon 7X part of one's compensation?
Instead of John and his direct reports chasing some 1990’s Northstar has-been methodology off in a distant galaxy they could start realizing that Northwestern Mutual is located in Milwaukee, Wisconsin and begin addressing the problems closer to home. What is next for the company? Six Sigma or copies of Who Moved My Cheese for all employees?
There is so much focus on women and minorities within the company it is sickening. The narrow sighted vision for a woman run venture capital start-up is appalling especially considering how well the prior investment (ahem LearnVest) worked out. The leadership team should start looking beyond race and gender and focus on investments that actually make money and home office talent that is competent to lead. Recreating the United Nations within the walls of NM is not going to move the company forward.
For the record, the annuity is known as LTIP, or Long-Term Incentive Plan. It's available to high-performing directors and was likely given out to between 30% and 50%, but it was not given to every director. Last year, they announced changes to the compensation package and that a percentage of high-performing people managers will now be eligible.
The report is on his cash compensation which would include his variable award. It does not include his deferred comp. Every director and above participates in the deferred compensation plan thru which the company funds annuities for the individual. I would expect that executive officers have a better plan than a director so they likely have a very rich deferred comp package.
Yes, I know its salary only and I specifically said “the 2017 salary of”. Again, I think it’s debatable to say his salary is low based on the salary range and not knowing specifics about every CEOs total compensation. This thread started by saying Schlifske’s salary is 13 million and didn’t say it was his total compensation, but I’m also sure he’s getting a hefty bonus (aka variable pay, AIP).
I’m not sure what measures company executives are using to determine AIP, but I’m certain their going to cherry pick measures that won’t cause the AIP to drop below 100%.
My comments are based on the past 3 years financial results which have been released to the public. We’ll have to wait for the 2019 results, but you can find the annual reports on the Web. Below are premium and revenue for the past 3 years. In prior years the percent change from the previous year has been 4 percent and higher.
Year: 2018
Premiums (M): 18,036
% chng from prev year: 0.78
Revenue (M): 28,482
% chng from prev year: 1.41
Year: 2017
Premiums (M): 17,897
% chng from prev year: -0.1
Revenue (M): 28,087
% chng from prev year: -0.23
Year: 2016
Premiums (M): 17,915
% chng from prev year: 0.714
Revenue (M): 28,152
% chng from prev year: 0.98
Schlifske’s relatively low salary isn’t debatable. Check your figures again and you’ll notice that the 1 - 49 million range for Fortune 100 CEOs is salary only and doesn’t include other forms of comp. You don’t think Jeff Bezos really only made 2 million last year, do you?
Top CEOs can take $1 salaries because they’re getting over 50 million in stock awards, which obviously doesn’t apply here. If NM is paying 13 million total comp for a fortune 100 CEO, it’s getting a bargain and John certainly isn’t breaking the bank at expense of the rank and file workers.
Could you clarify regarding the evidence in the financial results? This year, Life product sales are up. The company target of 100% as a multiplier for the AIP (Annual Incentive Pay) is almost always paid out above 100%. Last year, I think it was even 125% or 130%. When they started the layoffs, they claimed they wanted the ERR (expense-to-revenue ratio) to be 5.99% or less and now they've allowed it to be higher even though they are and have been below 5.99%, recently in the 5.79% range if I recall. I don't disagree that directionally the company is off, but I don't think it is showing up (yet) in the financials. The tech debt; however, will be a strong factor, especially when the nightly batch cycle bombs out or something else important does and the "walking knowledge" is gone.
Every company gets younger to a certain degree by natural attrition. The problem at NM is Schlifske has forced the younger idea down the company’s throat in a way that’s totally disrupted the company negatively. Technology is a constantly changing environment and who better to have at the company than a tech savvy employee, with 20 years of experience dealing with tech change and continues learning, knows the systems, knows the business, and knows exactly who to go to when something needs to get done. The evidence of NM’s issues is visible in the financial results the past 3 years.
The comments about Schlifske’s salary being low is very debatable. I recently saw some data on the 2017 salary of the fortune 100 CEO’s, and it ranged from about 1 million to 49 million.
But, NM is not getting leaner, it's actually getting more top-heavy. And, no, the cafeteria will not get whacked, especially given that two floors of the Tower were built for it and it has been an employee institution since the early part of the last century. The company finds value in keeping people there for lunch rather than flooding downtown trying to find a meal and wandering back from longer-than-expected lunches.
That's a low overall compensation package by today's standards for top 250 companies. And I would just say that NM's continued transformation is going to result in thousands more people being let go and replaced in the next few years. The Franklin campus is also in line to be sold off within 3 years dependent on the suburban Milwaukee county business real estate market. The subsidized downtown cafeteria is also going to get whacked by end of 2020. So either bring a bag lunch of be prepared to pay for your lunch like the rest of working stiffs in this world. For NM to stay relevant it's got to get smarter, younger, more tech savvy, more marketing oriented, and leaner. Schlifske knows that. The Board loves him for it as a result.
Considering no possibility of stock awards, that’s actually pretty low for a near Fortune 100 company CEO.
Also, why should John suffer? People don’t start at the bottom and end up making 13 million a year by accident. Did you work just as hard to stay relevant and succeed to the degree that he did? Do you even know what that takes?