Safeco CEO gets $14 million for first year

Safeco President and CEO Paula Rosput Reynolds received a pay package worth nearly $14 million in her first year at the Seattle insurance company.

A document filed Monday with the Securities and Exchange Commission shows Reynolds, 50, was given a salary of $925,000, $2 million in bonuses, $2.3 million in stock awards and options, $846,009 for relocation expenses, as well as other payments to cover relocation costs. She also received 99,448 shares worth $6.2 million, based on the Dec. 29 close price, if exercised before their expiration date.

Reynolds took over Safeco on Jan. 1, 2006, after heading AGL Resources in Atlanta. She has since cut about $75 million in costs, in part by eliminating several hundred jobs and selling Safeco's headquarters campus in the University District. Reynolds said the company would save money and improve flexibility by leasing rather than owning office space.

Safeco reported a profit of $880 million in 2006, up from $691 million in 2005. Its profitability was helped by a decline in storm-related claims from the previous year, when Safeco reported significant hurricane losses.

Mike McGavick, Safeco's CEO in 2005, received a reported compensation package worth $8.4 million in his last year, including a salary of $1.1 million.

Safeco employs about 3,000 in the Puget Sound area. Its headquarters employees are expected to move to the 1001 Fourth Avenue building in downtown Seattle in the fall.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com