This excerpt taken from the ALL DEF 14A filed Apr 2, 2007.
Elements of Executive Compensation Program
The core elements of our executive compensation program are annual salary, annual cash incentive awards, and long-term cash and equity incentive awards. These are described below under the headings "Salary" and "Incentive Compensation." These elements of compensation are designed to balance both team and individual performance. The compensation goals for incentive awards are aligned with our strategic goal of becoming better, bigger, and broader in personal property and casualty insurance and in life insurance, retirement, and investment products. We believe that this strategy will drive stockholder value. Accordingly, in 2006 annual and long-term incentive awards focused on key strategic, operational, and financial measures including top line growth and profitability.
Our compensation design balances annual and long-term incentive awards to align with short and long-term business goals, respectively. At the target level of performance, annual and long-term incentive awards are designed to constitute a significant percentage of an executive's total core compensation. The target percentages and the actual percentages for salary and annual and long-term incentive awards earned by the named executives in 2006 are listed in the following table.