Larry Webb
CINCINNATI FINANCIALAbout Larry R. Webb
Larry R. Webb, CPCU, age 69, has served on Cincinnati Financial Corporation’s board since 1979 and is a member of the Executive and Investment Committees, as well as a director of the company’s U.S. insurance subsidiaries . He retired in January 2023 as president of Webb Insurance Agency Inc., having previously served as treasurer (1981–1994) and has been a licensed insurance agent since 1977; he brings deep agent-centered expertise and institutional knowledge to the board . Webb is a significant shareholder, beneficially owning 510,548 CINF shares, representing approximately 0.33% of the outstanding common stock; his holdings include 186,257 shares via a limited partnership and 43,478 shares in a trust for his children and former spouse .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Webb Insurance Agency Inc. | President (Retired) | 1994–Jan 2023 | Principal owner; agency has represented Cincinnati Insurance since 1951, providing agent-centered perspective to CINF |
| Webb Insurance Agency Inc. | Treasurer | 1981–1994 | Oversight of finance/accounting and operations at independent agency |
| Webb Insurance Agency Inc. | Licensed Insurance Agent | Since 1977 | Frontline agent experience and client relationship development |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| SWD Corporation | Board Member | 2010–present | Private company board service |
| Various nonprofit boards | Director/Trustee | Not disclosed (ongoing) | Boards benefiting cancer research, airport authority, hospital, and cultural organizations |
Board Governance
- Committee assignments: Executive and Investment; no chair roles disclosed .
- 2024 attendance: 100% for board and all committees on which he served; attended Annual Meeting of Shareholders .
- Independence: Not classified as independent (nine current independent directors listed do not include Webb) .
- Tenure: Director since 1979; contributes long-term institutional knowledge aligned with CINF’s agent-centered model .
| Governance Item | Detail |
|---|---|
| Board meetings held (2024) | 4 |
| Executive Committee meetings held (2024) | 5 |
| Investment Committee meetings held (2024) | 6 |
| Webb’s attendance | 100% for board and committee meetings |
| Independence status | Not independent per board determination |
| Subsidiary directorships | U.S. insurance subsidiaries director |
Fixed Compensation
| Component (2024) | Amount ($) | Notes |
|---|---|---|
| Fees Earned or Paid in Cash | 141,000 | Includes board and committee meeting fees and cash retainers |
| Stock Awards (Grant for 2024 service on Jan 30, 2025) | 135,086 | 971 shares; grant-date fair value at $139.12/share |
| All Other Compensation | 9,506 | Aggregate perquisites (umbrella liability, life insurance, spousal travel/meals) |
| Total | 285,592 | — |
| Director Compensation Structure (Effective 2024) | Amount ($) | Notes |
|---|---|---|
| Annual Cash Retainer | 75,000 | Adjusted in early 2024 to align with peer norms |
| Annual Stock Retainer | 75,000 | Granted annually for prior-year service |
| Lead Director Cash Retainer | 50,000 | Applicable to lead independent director |
| Independent Committee Chair Cash Retainer | 25,000 | Audit/Comp/Nominating chairs |
| Meeting Fees – Cash | $4,500 board; $1,500 committee; $6,000 investment; $7,500 max/day; $60,000 min/year | Structure drives cash/stock mix |
| Meeting Fees – Stock | Matches cash meeting fees up to $60,000/year | Equity alignment |
Performance Compensation
| Equity Grant (For 2024 service; granted Jan 30, 2025) | Shares (#) | Per-Share Value ($) | Total ($) | Performance Conditions |
|---|---|---|---|---|
| Annual Director Stock Award | 971 | 139.12 | 135,086 | None; time-based retainer for director service |
| Meeting Fee Stock Match | Up to $60,000/year | N/A | N/A | None; matches cash meeting fees |
The company does not apply performance metrics (e.g., TSR, VCR) to director equity awards; those metrics are used for executive PSUs and annual incentives, not for non-employee director compensation .
Other Directorships & Interlocks
| Company | Type | Role | Potential Interlock/Conflict |
|---|---|---|---|
| None disclosed | Public | — | No public company board roles disclosed |
| SWD Corporation | Private | Board Member | No direct disclosed transaction with CINF |
| Webb Insurance Agency Inc. | Private (independent insurance agency) | Principal owner | Related-party transactions: CINF subsidiaries paid $1,039,841 in commissions in 2024; Webb personally purchased policies totaling $57,185 in premiums; agency does not advise CINF on its insurance needs or sell to the company; audit committee approved under policy |
Expertise & Qualifications
- CPCU designation, principal owner/operator of a long-standing independent insurance agency; expertise spans financial management, accounting oversight, IT, HR, sales, marketing, risk management, and carrier/client relationships .
- Deep institutional knowledge from long tenure and as a large shareholder; supports continuity of CINF’s agent-centered mission and values .
- Board skills matrix highlights insurance and business management contributions across the board composition; Webb serves on Investment and Executive Committees .
Equity Ownership
| Ownership Item | Detail |
|---|---|
| Total beneficial ownership | 510,548 shares |
| Percent of class | 0.33% |
| Indirect holdings | 186,257 shares via limited partnership (general partner); 43,478 shares via trust for children/former spouse |
| Shares pledged as collateral | Not disclosed for Webb (pledging disclosed for other individuals; company permits pledging with expectation of decline over time) |
| Stock ownership guidelines | Directors: five times annual cash meeting fees; all directors and executives in compliance as of March 5, 2025 |
Governance Assessment
- Independence and conflicts: Webb is not classified as independent by the board; his principal ownership of an agency that receives commissions from CINF ($1,039,841 in 2024) is a recurring related-party transaction, approved per audit committee policy and deemed not to create an actual conflict; still, this constitutes a potential perceived conflict for investors given committee membership on Investment and Executive Committees .
- Alignment and engagement: Large personal shareholdings (510,548; 0.33%) and 100% meeting attendance indicate strong engagement and skin-in-the-game; hedging of CINF securities is prohibited, bolstering alignment .
- Ownership risk controls: Company permits pledging, but Webb is not disclosed as pledging shares; the board anticipates pledging to decline over time and reported <0.1% of outstanding shares pledged by directors/executives at year-end 2024 .
- Director pay structure: Balanced cash/equity with standardized retainers and meeting fees; no performance conditions on director equity grants; perquisites are modest for Webb ($9,506 in 2024) .
- Attendance and process: Full attendance and ongoing executive sessions support board effectiveness; committee charters and annual evaluations are robust .
RED FLAGS
- Ongoing related-party transaction: Agency commissions of $1,039,841 paid to Webb Insurance Agency Inc. in 2024, plus Webb’s personal policy premiums of $57,185; while preapproved and disclosed, investors may scrutinize independence and committee influence given his non-independent status .
- Elevated tenure: Director since 1979; while CINF emphasizes industry complexity as rationale for longer tenures, investors may view extended tenure as a potential independence risk absent continued refreshment .
Investor implications
- Expect questions on potential conflicts management for Investment Committee decisions and how audit committee oversight mitigates related-party risks; strong attendance and meaningful ownership support alignment but do not eliminate perceived conflict risk .
- Governance posture is otherwise robust (hedging prohibition, ownership guidelines compliance, transparent related-party approvals), supporting confidence in board processes despite the interlock .