(Bloomberg) — Genworth Financial Inc. slashed Chief Executive Officer Tom McInerney's compensation by 78 percent after higher-than-expected costs from long-term care insurance fueled a record $1.2 billion annual loss and a stock plunge.
His pay for 2014 dropped to $2.7 million from $12 million in 2013, his first year on the job, the Richmond, Virginia-based insurer said Thursday in a regulatory filing. The CEO received no bonus or options, compared with a $3 million incentive and $7.1 million in options a year earlier, when the stock doubled.
Genworth stock fell 45 percent last year. Analysts at Jefferies Group, Macquarie Group Ltd. and BTIG have all said that Genworth's credibility has been eroded by management's shifting view about insurance liabilities.
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