Torchmark CEO Receives $3.8M in 2007

McAndrew's compensation included an annual salary of $900,000 and a performance-based bonus of $800,000.

His package was boosted by stock and option awards that were valued by the company at $2.1 million on the day they were granted. The CEO did not receive stock or option awards in 2006.

McAndrew's other compensation totaled more than $80,000 and included about $60,000 for his personal use of the company airplane.

In 2006, McAndrew received $1.6 million in compensation. He became chairman in February of that year. He has served as chief executive since 2005.

"In determining Mr. McAndrew's total 2007 compensation, the compensation committee considered the continued good financial performance of the company, the progress made towards consolidation of the company's administrative functions in McKinney, Texas, and the more active search for appropriate acquisition possibilities," Torchmark said in the proxy filing.

The AP's total pay calculations include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.

In 2007, Torchmark's earnings rose about 2 percent to $527.5 million, or $5.50 per share, from $518.6 million, or $5.13 per share, in 2006. During the year, the company's stock climbed to a high of $70.54 in late May, before dropping back to close the year at $60.53.

At Torchmark's 2008 annual meeting on April 24, investors will consider a shareholder proposal by the Sheet Metal Workers' National Pension Fund. The fund wants the company to adopt a "pay-for-superior-performance" compensation principle for senior executives.

Torchmark asked shareholders to vote against the proposal and said it has already implemented pay for performance principles.