MA Senate passes compensation budget proposal
BOSTON (AP) -- Massachusetts senators have passed an amendment to their budget proposal that would require mutual companies to disclose all compensation awarded to executive officers and directors.
The measure, which the Senate took up Friday morning in the third day of debate on the budget proposal, comes in response to reports that Edmund Kelly, Liberty Mutual's former chief executive officer, received around $50 million a year in compensation.
In addition to requiring these companies to provide disclosure on compensation, the amendment would establish an independent committee to review and approve executive compensation levels based on evaluations.
The Boston Globe first reported Kelly's earnings earlier this year. The company's former chief executive told the newspaper the compensation reported to state insurance regulators was misleading due to "an accounting issue."