Joseph O. Eppers
SELECTIVE INSURANCE GROUPAbout Joseph O. Eppers
Executive Vice President and Chief Investment Officer at Selective Insurance Group since 2022; previously SVP & CIO (2015–2022). Age 56; education includes B.S. Economics (Purdue), MBA (Butler), and Chartered Financial Analyst (CFA) credential . In 2024, Selective’s investment segment delivered strong results (after-tax net investment income $363M, +17% YoY), contributing 12.8 points to GAAP ROE, while corporate underwriting was challenged (GAAP combined ratio 103.0%, non-GAAP operating ROE 7.1%) and 1-year TSR was -4.6% versus S&P P&C +35.2% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Selective Insurance Group | EVP, Chief Investment Officer | 2022–present | Led a diversified, high-quality portfolio; increased net investment income 17% to $363M; exceeded benchmark total return; raised pre-tax book yield to 4.9%; updated asset allocation and liquidity framework; enhanced operational efficiency . |
| Selective Insurance Group | SVP, Chief Investment Officer | 2015–2022 | Built investment processes, overseen external managers, supported capital needs within risk tolerance . |
| BlackRock (Financial Institutions Group) | Director | 2013–2015 | Institutional investment advisory experience for insurance clients . |
| Endurance Services Ltd | SVP of Investments | 2005–2013 | Led insurance asset management across public and private strategies . |
External Roles
No external public company board roles disclosed for Mr. Eppers .
Fixed Compensation
| Metric | 2024 |
|---|---|
| Base Salary Rate | $450,000 |
| ACIP Range (as % of base) | 0%–150% |
| Actual 2024 ACIP Paid (as % of base) | 113% |
| Actual 2024 ACIP Paid ($) | $500,000 |
| 2024 Merit Increase to Base | +10.3% (recognition of strong investment performance) |
Performance Compensation
2024 LTIP Grant Design and Eppers’ Awards
| Component | Weighting | Performance Metric Target | Actual/Status | Payout Basis | Vesting Schedule |
|---|---|---|---|---|---|
| Performance RSUs | ~75% of LTIP value | 3-year: cumulative non-GAAP operating ROE ≥12% OR 5% cumulative growth in policy count/statutory NPW | In flight (2024–2026) | Shares vest only if performance conditions met | Grants 2/2/2024, vest/pay 2/2/2027, subject to performance; 4,528 RSUs granted; grant-date fair value $442,386 . |
| Performance Cash Incentive Units | ~25% of LTIP value | 3-year: cumulative TSR of SIGI plus relative cumulative 3-year statutory NPW growth and statutory operating return on policyholder surplus vs peer index | In flight (2024–2026) | Units revalue by TSR; earned units scaled 0%–150% by relative performance | Grants 2/2/2024, payable 2027; 1,500 target units; grant-date fair value $150,000 . |
Prior Cycle Outcome (2011–2024 grants settled)
| Award | Performance Metrics | Actual Performance | Payout | Settlement Timing |
|---|---|---|---|---|
| 2021 RSUs | 3-year cumulative non-GAAP operating ROE ≥12% OR 5% growth in policy count/statutory NPW | Achieved ≥12% non-GAAP operating ROE and 5% NPW growth | 100% of RSU target paid | Paid 2/7/2025; Eppers 2,581 RSUs incl. DEUs . |
| 2021 Cash Units | 3-year cumulative TSR; relative 3-year NPW growth and statutory operating return on policyholder surplus | TSR 154.53%; statutory operating ROS 41%; NPW growth 49% (100th percentile vs peer) | 150% of units at $154.53 per unit | Vested 2/7/2025; Eppers 638 units . |
2024 Investment Department ACIP (CIO-specific)
| Component | Target/Measure | 2024 Result | Points |
|---|---|---|---|
| Corporate Financial | GAAP combined ratio (0% funding >100%) | 103.0% → 0 funding points | 0.0 |
| Investment Financial | After-tax net investment income; LP income; weighted average benchmark return; alternative IRR; alternative PME | All achieved/exceeded; after-tax NII met; multiple upside achievements | 42.8 |
| Investment Strategic | Reinvestment rates, book yield, strategy/optimization, risk analytics, expenses, data warehouse, automation | All achieved/exceeded | 44.3 |
| Combined Performance Factor | Sum of points | 87.1 points | 87.1 |
| CIO ACIP Determination | % of base salary | 112.7% of base | $500,000 paid; range 0%–150% |
Equity Ownership & Alignment
Beneficial Ownership and Guidelines
| Item | Detail |
|---|---|
| Total Beneficially Owned Shares | 11,090; less than 1% of outstanding shares |
| Shares Outstanding Basis | 60,740,489 as of 2/20/2025 |
| Pledging/Margin Accounts | None; no directors/NEOs have SIGI shares pledged or in margin accounts |
| Stock Options | None outstanding/exercisable for directors/NEOs |
| Ownership Guidelines | EVP guideline: 3× base salary; 75% retention of net shares until guideline met |
| Compliance Status | All officers have met or are on track |
| Hedging Policy | Hedging/derivative transactions prohibited for officers/directors/employees |
Outstanding Equity at 12/31/2024 (Eppers)
| Award Type | Units Not Vested (#) | Market/Payout Value ($) | Notes |
|---|---|---|---|
| RSUs (unvested) | 3,219 | $355,203 | Performance RSUs; see vesting schedule . |
| Equity Incentive Awards (unearned) | 875 | $142,317 | Cash units/RSUs by grant; valued at per-unit assumptions . |
| Equity Incentive Awards (unearned) | 2,660 | $248,785 | RSUs from 2023 grant cycle . |
| Equity Incentive Awards (unearned) | 1,500 | $212,412 | Cash units from 2024 grant cycle . |
| Equity Incentive Awards (unearned) | 4,595 | $429,717 | RSUs from 2024 grant cycle . |
Vesting Timeline and Retirement Eligibility
| Grant Year | Award Type | Performance Period | Normal Vest/Pay Date | Notes |
|---|---|---|---|---|
| 2022 | RSUs & Cash Units | 1/1/2022–12/31/2024 | 2/7/2025 | RSUs and cash units vested/paid based on achieved metrics; Eppers RSUs 2,581; cash units 638 . |
| 2023 | RSUs & Cash Units | 1/1/2023–12/31/2025 | 2/6/2026 | Vests/pay subject to performance . |
| 2024 | RSUs & Cash Units | 1/1/2024–12/31/2026 | 2/2/2027 | Vests/pay subject to performance . |
| Award Early Retirement Age | — | — | — | Eppers reaches Award Early Retirement Age March 2, 2025; awards vest subject only to performance condition thereafter . |
Deferred Compensation (2024)
| Item | Amount ($) |
|---|---|
| Executive Contributions | 45,542 |
| Company Contributions | 6,525 |
| Aggregate Earnings | 49,912 |
| Aggregate Balance (12/31/2024) | 277,518 |
Employment Terms
| Provision | Detail |
|---|---|
| Employment Agreement Commencement | February 28, 2022 (promotion to EVP) |
| Initial 3-year Term End | February 28, 2025 (initial term) |
| Severance (Termination w/o Cause or Good Reason) | Multiple: 1.5× (salary + average of last 3 ACIP payments); benefits coverage reimbursement for 18 months |
| Change-in-Control Treatment | Double-trigger; severance 1.5× (salary + 3-year average ACIP); accelerated vesting governed by plan terms; no excise tax gross-ups |
| Clawback Policy | Adopted Dec 1, 2023; recoupment of excess incentive comp upon accounting restatement per SEC/Nasdaq rules |
| Hedging/Pledging | Prohibited; supports alignment |
| Potential Payments (as of 12/31/2024) | Retirement: $1,232,259; Death/Disability: $2,557,259; Termination w/o Cause or Resignation w/ Good Reason: $2,596,172; Termination Following Change in Control: $2,701,976 |
Investment Implications
- Pay-for-performance alignment is strong: despite corporate underwriting shortfall (103.0% combined ratio), Eppers’ ACIP payout was driven by superior investment performance and strategic achievements (112.7% of base; $500k), indicating his incentives are tightly linked to investment alpha and portfolio risk management .
- Upcoming vesting events may create incremental insider activity windows: 2023 awards vest/pay in Feb 2026; 2024 awards in Feb 2027; Eppers also reaches Award Early Retirement Age in March 2025, after which awards vest subject only to performance—monitor 10b5‑1 plans/Form 4s around these dates for selling pressure signals .
- Alignment safeguards reduce red flags: no pledging or margin accounts; hedging is prohibited; ownership guidelines require EVPs to hold ≥3× salary and retain 75% of net shares until compliant—these policies mitigate misalignment and forced‑sale risk .
- Retention risk appears manageable but merits watch: his initial three-year employment term ended Feb 28, 2025, and change-in‑control economics are double‑trigger at 1.5× salary + ACIP—keep an eye on any amended agreements or succession disclosures; say‑on‑pay support remains high (99%) .