The executive compensation of Slide Insurance, an insurance company in Florida, has recently sparked controversy. The IPO documents submitted by the company show that the founder and CEO Bruce Lucas will receive a salary of up to 21 million US dollars in 2024, and his wife Shannon Lucas, who serves as the chief operating officer, will also receive 16.5 million US dollars. This figure far exceeds the salary levels of executives of other listed insurance companies in Florida and is even close to the treatment of ceos of international insurance giants such as Chubb and Allstate.
Despite Slide’s significant growth in performance in recent years, with a net profit of 201 million US dollars in 2024, consumer rights organizations have criticized that such high salaries might be passed on to policyholders. Douglas Heller, the insurance director of the American Consumers Federation, pointed out that Slide’s compensation package accounts for a significantly higher proportion of the company’s revenue than that of large insurance companies. However, HCI Group CEO Patel defended Slide, arguing that its entry into the high-risk Florida market was commendable.
Slide explained in the submitted documents that the executive compensation is paid by the holding company and does not affect the insurance rate. Data shows that Slide’s average premium in 2024 was $4,073, slightly lower than the level in 2023. At present, it is the quiet period for the company’s IPO, and the management has not responded to the controversy. This incident has once again sparked discussions on the relationship between the compensation of insurance industry executives and premiums.
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