"According to Crain’s Chicago Business, Tipsord’s 2021 bonus represents “a record-setting compensation level for the insurer and likely the largest cash haul of any chief executive in the U.S.
“In past years … State Farm paid its CEO cash totals that generally mirrored the cash received by CEOs of similarly sized publicly traded companies. Something seems to have changed in terms of the insurer’s comp program, but the statement [provided by State Farm] didn’t address that question posed by Crain’s,” the publication said.
Crain’s said Tipsord’s job “is arguably simpler than his peers who run publicly traded companies. He doesn’t have to deal with quarterly reporting, shareholder calls, decisions on regular dividend payments and the general need to keep a stock price rising. State Farm’s capital base is enormous, so it can afford to lose money for even years at a time in order to gain market share if it chooses."
Other State Farm executives also received big paydays in 2021, Crain’s said. Chief Operating Officer Paul Smith got $8.6 million, up from $6.8 million in 2020 and $3.5 million in 2019, according to the company’s filing. Randall Harbert, chief agency sales and marketing officer, was paid $8.2 million, up from $6.8 million and $3.5 million in 2020 and 2019, respectively. "