Eric Martin
About Eric Martin
Eric J. Martin is Executive Vice President and Chief Financial Officer of United Fire Group, Inc. (UFCS), appointed effective April 18, 2022; he was age 51 at appointment and holds a B.B.A. in Accounting from the University of Iowa (1993) . His 2024 annual incentive was tied to five metrics and the company achieved 111.6% of target on the corporate scorecard, with his individual performance factor certified at 107% . The Compensation Committee increased his 2024 LTIP target award opportunity “in recognition of his success as Chief Financial Officer” to better align total direct compensation with market . 2024 corporate outcomes included Adjusted ROE 7.9%, written premium growth $1,374.1mm, net adjusted loss ratio 63.5%, underwriting expense ratio 35.8%, and core earnings $81.9mm .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Transamerica | Head of Enterprise Transformation | 2020–2022 | Led enterprise transformation initiatives; senior leadership role across business units . |
| Transamerica | Chief Operating Officer, Individual Solutions and Retail Affiliates | 2019–2020 | Operational leadership across retail businesses; drove execution and efficiency . |
| Transamerica | SVP, Controller and Head of Finance | 2016–2019 | Led finance function; strengthened financial controls and reporting . |
| Transamerica | President, Transamerica Business Services | 2015–2016 | Ran shared services; focus on service delivery and cost structure . |
| Transamerica | SVP, Chief Accounting Officer | 2010–2015 | Oversaw accounting policy and external reporting . |
| Transamerica | SVP, Director of Finance | 2008–2010 | Directed financial planning and analysis; supported strategic decisions . |
| Transamerica | VP & Controller | 2005–2008 | Controller responsibilities for divisions; internal controls . |
| Transamerica | Corporate Division Controller | 2001–2005 | Division-level financial stewardship and reporting . |
External Roles
No public-company board service disclosed in filings for Eric J. Martin .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $475,000 | $484,000 | $500,940 |
| Retention Bonus ($) | $0 (schedule established) | $10,000 (paid, subject to continued employment) | $20,000 (retention bonus; paid subject to continued employment through Apr 1, 2024) |
Offer Letter also scheduled a $30,000 retention bonus for June 2025, subject to continued employment .
| Summary Compensation (Eric J. Martin) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $326,563 | $484,000 | $496,705 |
| Bonus ($) | $250,000 | $147,759 | $20,000 |
| Stock Awards ($) | $496,096 | $272,260 | $500,932 |
| Option Awards ($) | $66,799 | $90,746 | — |
| Non-Equity Incentive Plan Compensation ($) | — | $70,967 | $444,844 |
| Change in Pension Value & NQDC Earnings ($) | — | $32,222 | $14,278 |
| All Other Compensation ($) | $15,472 | $18,699 | $20,444 |
| Total ($) | $1,154,930 | $1,116,653 | $1,497,203 |
Performance Compensation
Annual Incentive Plan (AIP) Design — Target & Weighting (2024)
| Executive | Target Bonus (% of Base) | Core Earnings | Written Premium Growth | Net Adjusted Loss Ratio | Underwriting Expense Ratio | Adjusted ROE |
|---|---|---|---|---|---|---|
| Eric J. Martin | 75% | 30% | 20% | 20% | 20% | 10% |
2024 AIP goals were set in February 2024; CFO maximum payout opportunity is 112.5% of base salary at max performance, threshold 7.5% .
AIP Outcomes — 2024 Company Scorecard and Individual Factor
| Performance Measure | Threshold | Target | Maximum | Actual 2024 Result | Weighted Payout % |
|---|---|---|---|---|---|
| Adjusted ROE | 2.0% | 5.0% | 8.0% | 7.9% | 14.8% |
| Written Premium Growth (mm) | 1,215 | 1,350 | 1,485 | 1,374.1 | 21.8% |
| Net Adjusted Loss Ratio | 70.0% | 67.5% | 65.0% | 63.5% | 30.0% |
| Underwriting Expense Ratio | 35.0% | 33.5% | 32.0% | 35.8% | 0.0% |
| Core Earnings (mm) | 25 | 50 | 75 | 81.9 | 45.0% |
| Corporate Achievement | 111.6% | ||||
| Individual Performance Factor (Eric J. Martin) | 107% |
| AIP Payout (Non-Equity Incentive Plan Compensation) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Amount ($) | — | $70,967 | $444,844 |
Long-Term Incentive Plan (LTIP) — Grants and Vesting
| Year | Total Stock Award ($) | PSUs ($) | RSUs ($) | Notes |
|---|---|---|---|---|
| 2024 | $500,940 | $250,470 | $250,470 | Martin’s 2024 target increased to align with market; RSUs updated to 3 annual installments beginning 2024 . |
| 2024 Plan-Based Awards (Grant Date 3/20/2024) | Instrument | Threshold | Target | Maximum | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|
| AIP Cash | Non-Equity | $37,571 | $375,705 | $563,558 | — |
| PSUs (3/20/2024) | Equity | 1,139 sh | 11,390 sh | 22,780 sh | $250,466 |
| RSUs (3/20/2024) | Equity | — | 11,390 sh | — | $250,466 |
Vesting mechanics:
- 2024 PSUs vest on March 20, 2027, subject to three-year performance; earned 0–200% of target, settled in shares .
- 2024 RSUs vest in three equal annual installments on each anniversary of grant, promoting retention and alignment .
Historical PSU performance:
- 2022 PSU awards vested based on performance Jan 1, 2022–Dec 31, 2024; achievement certified at 0% of target (except CEO minimum per offer letter) .
Option/Stock Award Realization (2024)
| Name | Options Exercised (#) | Value Realized ($) | Stock Awards Vested (#) | Value Realized ($) |
|---|---|---|---|---|
| Eric J. Martin | — | — | 4,000 | $88,120 |
Equity Ownership & Alignment
| Beneficial Ownership (Record Date: Mar 24, 2025) | Shares | % of Outstanding | Details |
|---|---|---|---|
| Eric J. Martin | 46,849 | * (<1%) | Includes 35,291 directly owned shares and 11,558 options exercisable within 60 days; no shares pledged . |
Stock ownership guidelines and compliance:
| Executive | Tier | Target Shares | Qualifying Shares Held |
|---|---|---|---|
| Eric J. Martin | 3 | 67,820 | 35,291 |
Outstanding equity awards (as of Dec 31, 2024; stock price $28.45):
| Instrument | Grant Date | Status | Quantity | Vest/Expire | Market/Intrinsic Value ($) |
|---|---|---|---|---|---|
| Options | 4/18/2022 | Exercisable | 4,086 | 4/18/2032 | — |
| Options | 4/18/2022 | Unexercisable | 2,044 | 4/18/2032 | — |
| Options | 2/24/2023 | Exercisable | 2,714 | 2/24/2033 | — |
| Options | 2/24/2023 | Unexercisable | 5,428 | 2/24/2033 | — |
| RSUs | 4/18/2022 | Unvested | 4,518 | See award terms | $128,537 |
| RSUs | 4/18/2022 | Unvested | 2,259 | See award terms | $64,269 |
| RSUs | 2/24/2023 | Unvested | 3,197 | Cliff vest year 3 | $90,955 |
| RSUs | 3/20/2024 | Unvested | 11,390 | 3 annual installments | $324,046 |
| PSUs | 2/24/2023 | Unearned (at target) | 6,393 | 2/24/2026 | $181,881 |
| PSUs | 3/20/2024 | Unearned (at target) | 11,390 | 3/20/2027 | $324,046 |
Executive stock ownership policy provides 5-year transition to targets; qualifying shares include RSUs held but exclude unexercised options and unvested PSUs .
Employment Terms
- Appointment and role: CFO effective April 18, 2022; reports to CEO .
- Offer letter economics: Initial base salary $475,000; 2022 CEO-recommended cash bonus $250,000; ongoing annual target bonus $285,000 (60% of salary) with 150% max; retention bonuses of $10k (June 2023), $20k (2024), $30k (2025); 2022 recommended annual equity award 75% of salary split 25% options, 25% RSUs, 50% PSUs; plus RSUs of 6,000 at 1-year and 4,000 at 2-year anniversaries .
- Change-in-control (CIC) severance agreement: Double-trigger; 18-month non-compete; 1.5x highest base salary + target annual incentive (or higher 3-year average bonus) upon CIC and qualifying termination; continuation of insurance benefits (18 months); full vesting of LTIP at target; outplacement; payments subject to 280G cutback if reduces excise tax and increases net after-tax amount .
Pension and deferred compensation:
| Plan | Credited Service (yrs) | Present Value ($) | Exec Contributions (2024) | Aggregate Earnings (2024) | Aggregate Balance ($) |
|---|---|---|---|---|---|
| United Pension Plan | 2 | $29,251 | — | — | — |
| Nonqualified Deferred Compensation (NQDC) | — | — | $120,214 | $13,249 | $186,998 |
Potential payments upon termination or CIC (as of Dec 31, 2024):
| Scenario | Amount ($) |
|---|---|
| Death or Retirement | $1,489,926 |
| Disability | $1,114,221 |
| Change in Control (no termination) | $1,114,221 |
| Change in Control with Qualifying Termination | $3,036,429 |
Governance and shareholder feedback:
- Say-on-pay approval ~97% in 2024; ~98% average over five years; no program changes made due to 2024 vote .
Investment Implications
- Pay-for-performance alignment: AIP and PSUs are weighted to profitability and growth (core earnings, loss ratio, premium growth, ROE), with strong corporate overachievement in 2024 (111.6%) and high individual factor (107%), driving a robust cash incentive ($444,844) while maintaining discipline via a zero payout on 2022 PSUs—indicative of rigorous targets and downside risk in equity incentives .
- Retention and selling pressure: RSUs now vest annually (2024 change), creating consistent near-term vesting events (e.g., 2024 grant installments through 2027) and potential incremental selling pressure around vest dates; however, no option exercises in 2024 and stock ownership guidelines require building positions over a five-year period, mitigating misalignment risk .
- Alignment and red flags: Beneficial ownership includes only direct shares and near-term exercisable options; no pledged shares—reduces financing/hedging risk; CIC protections are market-standard and double-trigger with 280G cutback, limiting shareholder-unfriendly tax gross-ups .
- Compensation trajectory: 2024 LTIP target increased in recognition of CFO performance and market alignment; continued emphasis on PSUs with multi-year metrics should keep equity realizations contingent on execution of underwriting profitability and growth strategy .