Eric K. Ferren
About Eric K. Ferren
Eric K. Ferren is Senior Vice President, Controller and Chief Accounting Officer (principal accounting officer) of The Allstate Corporation, appointed effective May 20, 2024; age 51 at appointment . He rejoined Allstate from Revantage (real estate services) and previously served as Allstate Insurance Company CFO for Protection Products & Enterprise Services (Sep 2019–Apr 2024) and Allstate’s SVP, Controller and CAO (May 2017–Sep 2019) . Company performance context: in 2024 Allstate delivered total revenues of $64.1B (+12.3% YoY) and net income to common shareholders of $4.6B, with compensation programs tied to Performance Net Income and Relative TSR to align pay with value creation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Allstate Corporation | SVP, Controller & CAO (principal accounting officer) | May 2017–Sep 2019 | Principal accounting officer; signatory on 10-K/10-Q and registration statements . |
| Allstate Insurance Company | CFO, Protection Products & Enterprise Services | Sep 2019–Apr 2024 | Segment CFO overseeing financial performance and controls in Protection Products/Enterprise Services . |
| The Allstate Corporation | SVP, Controller & CAO (reappointed) | Effective May 20, 2024 | Returned as principal accounting officer; signatory on multiple 8-K filings in 2024–2025 . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Revantage (real estate services provider) | Chief Financial Officer | Prior to May 2024 | Executive finance leadership; external CFO experience prior to Allstate reappointment . |
Fixed Compensation
| Component | Amount/Percent | Notes |
|---|---|---|
| Base Salary | $445,000 | Annual base as SVP, Controller & CAO . |
| Target Bonus % | 50% of salary | Eligible for discretionary cash incentive awards . |
| Target Equity (2024) | 90% of salary | Mix: 50% Performance Stock Awards (PSAs), 30% RSUs, 20% stock options . |
| Sign-on Equity | $625,000 RSUs | In lieu of foregone equity from April 2024 departure; 100% vests on third anniversary of grant date . |
Performance Compensation
| Metric | Weighting | Target/Payout Scale | Vesting/Notes |
|---|---|---|---|
| Average Performance Net Income ROE | 50% (2024–2026); 60% (2025–2027) | 2024–2026: Threshold 9.0%; Target 16.0%; Max 20.0% with 0–200% payout; positive net income hurdle caps above-target vesting if cumulative net loss . | Three-year performance period; catastrophe loss normalization and defined equity base adjustments . |
| Relative TSR (vs custom insurance peers) | 40% | Payout scale: <25th percentile = 0%; 25th = 50%; 55th = 100%; 90th+ = 200% . | Three-year measurement; 20-day average price methodology and reinvested dividends; defined peer group (AIG, Chubb, Progressive, Travelers, etc.) . |
| Inclusive Diversity & Equity | 10% (for certain outstanding 2023–2025, 2024–2026 cycles) | Specific targets not disclosed due to proprietary strategic plan (ND) . | Eliminated for 2025 PSAs; 2025–2027 focuses solely on PNI ROE and TSR . |
For annual cash incentives, Allstate uses Performance Net Income and a Property-Liability Growth Matrix that combines combined ratio and items-in-force growth, plus segment metrics (Investments, Protection Services, Health & Benefits). Definitions include catastrophe plan adjustments and PB investment income caps/floors to stabilize measures .
Equity Ownership & Alignment
| Item | Data | Notes |
|---|---|---|
| Beneficial Ownership at Reappointment | 0 shares (Form 3 filed May 30, 2024) | Reported “No securities are beneficially owned” upon becoming officer on May 20, 2024 . |
| Historical Ownership Snapshot | 475 shares direct; 1,104 shares via 401(k) (May 2017) | Plus options and RSUs detailed on Form 3 in 2017 reflecting prior tenure . |
| Stock Ownership Guidelines | 4x base salary for senior executives (CEO 8x) | Executives must hold 75% of net shares until guideline met; applies to 76 senior executives/officers; none of the executive shares in the proxy table were pledged as of Mar 1, 2025 . |
| Hedging/Pledging Policy | Prohibits hedging; prohibits pledging or margin accounts for senior executives/directors unless exception granted | Company-wide controls to ensure alignment; policy explicitly restricts speculative transactions and pledging . |
| Clawback | Mandatory (Dodd-Frank) and discretionary misconduct clawbacks covering cash and equity | Recovery of erroneously awarded incentive comp and misconduct-related recoupment; incorporated into plans . |
Employment Terms
| Term | Details | Implications |
|---|---|---|
| Appointment Effective | May 20, 2024 | Role: SVP, Controller & CAO; principal accounting officer . |
| Compensation Mix | Cash + equity with defined targets and sign-on RSU | Equity-heavy mix with PSAs tied to ROE and TSR aligns with long-term value . |
| Change-in-Control Plan (CIC) | Double-trigger; cash severance equal to 2x base salary + target annual incentive; accelerated vesting of LTI upon qualifying termination; no excise tax gross-up | Standardized protections encourage focus during potential transactions; accelerates unvested equity only on qualifying termination within two years of CIC . |
| Sign-on RSU Vesting | 100% on third anniversary of grant | Creates 3-year retention hook and potential 100% cliff vesting event . |
| Clawback/Hedging/Pledging | Mandatory clawback and anti-hedging/pledging policies apply | Reduces misalignment risk and speculative trading by executives . |
Investment Implications
- Compensation alignment: Ferren’s equity is majority performance-based (PSAs) with metrics directly tied to profitability (Performance Net Income ROE) and shareholder returns (Relative TSR), supporting alignment with investors and discouraging low-quality earnings management .
- Retention and potential selling pressure: The $625k sign-on RSU vests 100% on its third anniversary, creating a defined vesting event; executives must retain 75% of net shares until they reach guideline ownership (4x salary), which can temper near-term selling post-vest .
- Ownership risk controls: Company-wide prohibitions on hedging/pledging and robust clawback frameworks mitigate alignment and reputational risks around insider transactions and performance reversals .
- Track record and execution: As principal accounting officer, Ferren is repeatedly a signatory on current reports (8-Ks) and historical SEC filings, evidencing responsibility for financial reporting rigor during a period of strong corporate recovery in 2024 (revenues $64.1B, net income $4.6B) and high peer-relative TSR performance in 2022–2024 .
Overall, Ferren’s package emphasizes pay-for-performance with material exposure to PSAs keyed to ROE and TSR, a three-year cliff RSU that supports retention, and strict ownership/governance policies that reduce pledging/hedging risks. These characteristics suggest aligned incentives and moderate insider-selling risk around vest dates, subject to future grant timing and personal guideline compliance .