Any stock-related long-term comp it offered these people is so devalued that it doesn't work as a retention tool. So the people are free agents.
Arch (McElroy) will make this pitch:
You can stay where you are and watch me take your people and customers. As a TARP recipient, you will be in the firm grasp of the Feds, so your compensation structure will be screwy for years. Your professional life for the next year or two will consist of trying to defend your book against me and a bunch of others who smell blood. And when you aren't doing that, you are going to Congress to explain every single thing you did.
Or you can join me, play offense and have a financial upside.
That pitch will work.
So let's see what happens. I think he puts a big dent in the HIG shop.
For those few of you on this board that are really interested, and not just posting flaming comments in an attempt to short the stock, here is why this is a problem. The P&C operation - under which the D&O group - is doing splendidly, and is essentially minting money. Combined ratios under 90% and maintaining Hartford's historic "conservative underwriting" stance. Where things go off the rails is in the Annuity area (product & pricing) and the investment area (again mostly from the Life side as P&C regs do not allow for the same degree of risk in investment). Thus, the D&O talent - in fact all of the P&C talent - that Hartford loses is draining the healthy segment of the company. Don't know why I bothered but there it is.