USAA Executives See Hefty Pay Raises as Policyholders Face Rising Premiums

At a time when every penny counts for American households, the top brass at USAA are pocketing sizable pay raises. USAA President and CEO Wayne Peacock saw a 68% increase in his compensation in 2023, with figures jumping to $8.1 million, up from $4.8 million the previous year, reported by the San Antonio Report.

The swell in executive wallets comes amid customer cries as they foot higher premiums, Peacock took over USAA's reins in 2020, earning about $1.9 million that year and again in 2021. His 2023 take-home pay was disclosed by the five USAA insurance companies to the Nebraska Department of Insurance, a mandatory disclosure since the company does business in the state, according to the Express News.

The hikes in compensation extend beyond Peacock; other USAA executives saw increases in their pay packets too. Randy Termeer, president of USAA Property and Casualty Insurance Group, reeled in $2.2 million, a boost from $1.6 million in 2022. Moreover, Chief Security Officer and Senior Vice President Jason Witty received a bump up to $2.3 million from $2 million, and USAA Life Insurance President Brandon Carter's salary rose by $100,000 to $1.9 million for the year gone by.

These salary upticks did not go unnoticed by policyholders, who also shouldered a significant 17.4% surge in average auto insurance costs nationally in 2023. At the same time, homeowner insurance rates in Texas, one of USAA's key markets, increased to an average of 10.8% in 2022, marking the steepest annual climb since 2012, as documented by the San Antonio Report.

"There’s been a real explosion in executive compensation," Douglas Heller, director of insurance at the nonprofit Consumer Federation of America, told the Express News. He expressed concern over the hefty earnings of insurance executives in light of the financial strains facing their customers. Despite the company's first-ever loss recorded just a year prior, the soaring salaries have raised a few eyebrows and called into question the balance between executive remuneration and consumer costs.

In defense of their decision, USAA stated, "Recruiting top talent at USAA allows us to provide members with highly competitive products and exceptional service they expect and deserve," which the company believes is in line with their mission to assist the military community and their families. The insurance giant also reportedly distributed nearly $2 billion to members in various benefits in 2022, maintaining the same level as the year before, despite recording a $1.3 billion loss that year.