James Reid
LINCOLN NATIONALAbout James Reid
Executive Vice President and President, Workplace Solutions at Lincoln Financial Group (LNC). Leads strategy and execution for Group Benefits and Retirement Plan Services; joined LNC in August 2022 after 30+ years in worksite-focused businesses across product, underwriting, distribution, service, claims, and operations . Education: B.S., The Ohio State University; executive programs at Columbia Business School and Harvard Business School . 2024 enterprise performance included record Group Protection earnings and margin of 8.3%, strong Retirement Plan Services deposits (+25%), and a one-year TSR improvement to 24.8% .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Versant Health | Chief Executive Officer | Not disclosed | Led a managed vision care company serving >38M members; overall corporate direction and performance . |
| MetLife | EVP, Global Employee Benefits & Global Relationship Management; Vice Chair/Chair, MAXIS Global Benefits Network | Not disclosed | Expanded employee benefits across 39 countries; partnership-led global growth via MAXIS network . |
| MetLife | Senior executive roles (Group/Voluntary/Worksite) | Not disclosed | Product strategy, underwriting, distribution; scaled worksite offerings . |
| Aetna | Senior executive roles | Not disclosed | Operations and consumer services leadership in employer-focused businesses . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| MAXIS Global Benefits Network (MetLife/AXA JV) | Vice Chairman; Chairman of the Board | Not disclosed | Governance and global network growth supporting multinational employee benefits . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $310,577 | $882,692 | $899,385 |
| Target Bonus ($) | $1,147,500 | $1,602,736 | $1,550,000 |
| Target LTI Award ($) | $2,286,689 | $1,750,077 | $2,400,000 |
Notes: LNC set 2024 target total direct compensation for Reid at $4.85M (base $0.9M, target bonus $1.55M, LTI $2.4M), reflecting strong execution transforming Group Protection .
Performance Compensation
| Metric | Weighting | Target | Actual | Payout on measure |
|---|---|---|---|---|
| Income from Operations per Share | 30% | $6.70 | $7.13 | 153.5% |
| Group Protection – Sales | 7.5% | $720M | $861M | 197.9% |
| Retirement Plan Services – Sales | 7.5% | $13,283M | $14,738M | 154.8% |
| Group Protection – Income from Operations | 7.5% | $321M | $426M | 200.0% |
| Retirement Plan Services – Income from Operations | 7.5% | $157M | $163M | 124.0% |
| Actions to Improve Distributable Earnings | 15% | — | Certified 175% | 175.0% |
| Strategic Priorities | 10% | — | Certified 100% | 100.0% |
| Workplace Solutions – Controllable Costs | 15% | 100% | 98.3% | 133.1% |
| AIP payout result | — | — | — | 144.1% → $2,233,550 |
2024 LTI awards (PSAs + RSUs):
- PSAs (2024–2026): Target 44,474 shares; threshold 5,559 (revised); max 88,948 (revised). Metrics: 50% Operating ROE (threshold 9.86%, target 11.60%, max 13.34%); 50% Relative TSR (rank thresholds 25th/55th/80th percentile; capped at 100% if absolute TSR negative) . Grant-date fair value: $1,366,183 .
- RSUs (3-year cliff vest): 44,474 units; grant-date fair value $1,200,038 .
2022–2024 LTI PSAs paid 0% (Operating ROE 10.8% below threshold; Relative TSR ranked last with -42.53%) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 47,153 LNC common shares as of March 14, 2025 (<1% of outstanding) . Outstanding shares: 170,692,628 (approx. 0.028% ownership) . |
| Options outstanding | 18,638 exercisable + 9,319 unexercisable at $48.41 (exp. 8/10/2032); 11,398 exercisable + 22,797 unexercisable at $34.99 (exp. 2/15/2033) . At 12/31/2024 stock price $31.71, these were out of the money . |
| RSUs outstanding (key vesting dates) | 11,860 and 14,243 vest 8/10/2025; 20,057 vest 2/15/2026; 44,479 vest 2/21/2027; 1,929 vest 2/22/2027 . |
| PSAs outstanding | 2023–2025 shown at target; 2024–2026 shown at maximum as of FYE based on performance to date (final determined post cycle) . |
| Ownership guidelines | Execs must hold shares equal to 4× base salary; until compliant, must retain 50% of net shares from equity vesting/exercise (outstanding PSAs/options don’t count) . As of 12/31/2024, Reid is “making progress” toward the requirement and subject to 50% hold . |
| Pledging/hedging | Prohibited for executive officers; robust insider trading policy applies . |
| Clawback | NYSE/SEC-compliant clawback policy for incentive-based compensation; equity awards also include clawback/forfeiture on cause or covenant breaches . |
Employment Terms
| Provision | Key terms |
|---|---|
| Severance plan (non-COC) | 78 weeks of severance benefits for executive officers upon involuntary termination not for cause; requires release; offsets any COC benefits dollar-for-dollar . |
| Change-of-control (COC) plan | Double-trigger; cash severance = 2× annual base salary + 2× target bonus for execs (CEO 2.99×); no tax gross-ups; outplacement and COBRA reimbursement; equity awards for open cycles paid at target (prorated) . |
| Potential payments (illustrative) | Involuntary not-for-cause: cash severance $3,675,000; RSUs value $376,081; DC SERP $86,285; stipend $32,760; AIP $2,233,550 . Involuntary termination after COC: cash severance $4,900,000; RSUs $2,935,331; PSAs $1,198,511; DC SERP $870,564; miscellaneous $198,119; AIP $2,233,550 . |
Compensation & Incentives (realized)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Stock awards ($) | $2,286,689 | $1,750,077 | $2,566,221 |
| Non-equity incentive ($) | $1,147,500 | $1,602,736 | $2,233,550 |
| All other compensation ($) | $15,358 | $59,352 | $247,180 (401k match/core $33,900; DC SERP special/excess $213,280) |
| Total ($) | $4,410,636 | $4,711,284 | $5,946,336 |
Equity Award Detail (2024 grants)
| Award type | Grant date | Threshold (shares) | Target (shares) | Max (shares) | Grant-date FV ($) |
|---|---|---|---|---|---|
| PSAs (2024–2026) | 2/21/2024 | 5,328 (orig.) / 5,559 (rev.) | 42,625 | 85,250 (orig.) / 88,948 (rev.) | $1,309,243 |
| PSAs (2024–2026) | 2/22/2024 | 231 (orig.) / 464? (rev. threshold combined 5,559) | 1,849 | 3,698 (orig.) / 4,? (rev. combined 88,948) | $56,940 |
| RSUs | 2/21/2024 | — | 42,625 | — | $1,150,023 |
| RSUs | 2/22/2024 | — | 1,849 | — | $50,015 |
Aggregate 2024 PSAs target 44,474 and RSUs target 44,474 (3-year cliff vest) .
Performance & Track Record
- Group Protection delivered record earnings and sales; margin expanded to 8.3% in 2024, supported by pricing and execution—directly relevant to Reid’s remit .
- Retirement Plan Services achieved its tenth consecutive year of positive flows; deposits rose 25% and account balances +11.5% YoY .
- One-year TSR improved to 24.8% in 2024 as execution and results resonated with investors .
Compensation Structure Analysis
- Pay mix is performance-heavy: AIP and LTI are largest components; options discontinued in 2024 to balance risk/reward, shifting to PSAs/RSUs (50% PSAs for NEOs) .
- AIP design aligned with capital rebuilding, profitable growth, and controllable costs; Reid’s 2024 payout above target (144.1%), driven by exceeding GP and RPS financial targets and distributable earnings actions .
- LTI rigorous: 2022–2024 PSAs forfeited at 0% due to below-threshold Operating ROE and worst-relative TSR, evidencing strong pay-for-performance discipline .
Governance, Clawbacks, Policies
- Robust stock ownership guidelines (4× salary for executive officers); counting RSUs/restricted stock, but not outstanding PSAs/options; hold 50% of net shares until compliant .
- Clawback policy compliant with SEC/NYSE; equity award agreements include additional clawbacks and restrictive covenants (non-compete, non-solicit, confidentiality) with six-month post-vesting enforcement window .
- No tax gross-ups on COC; double-trigger equity vesting; no repricing of options without shareholder approval .
Risk Indicators & Red Flags
- Underwater options at 12/31/2024 ($31.71) reduce immediate selling pressure (strike $34.99 and $48.41) .
- 2022–2024 PSAs paid 0% (Operating ROE and Relative TSR below threshold), highlighting execution risk for long-term metrics and potential retention considerations if future cycles underperform .
- Pledging/hedging prohibited and ownership requirements enforced, mitigating misalignment risk .
Investment Implications
- Alignment: Above-target AIP driven by core profitability and capital actions suggests strong near-term execution in Reid’s businesses; LTI rigor (0% PSA payout 2022–2024) indicates tight linkage to shareholder outcomes .
- Retention/pressure: Upcoming RSU vesting (2025–2027) and underwater options imply limited forced selling; ownership guideline “progress” status means continued net-share retention, supporting alignment .
- Signals: If GP/RPS momentum sustains (record GP margin; RPS flows), Reid’s incentive metrics are set to reward durable ROE and relative TSR through 2024–2026 PSAs—watch Operating ROE trajectory and sector-relative TSR ranks for potential LTI realization .