This excerpt taken from the ALL DEF 14A filed Mar 27, 2006.
Tax gross up payments to executives
As a general matter, we do not provide for tax gross up payments on personal benefits provided to executives. We have however, provided for tax gross up payments in the following limited circumstances. The first relates to the personal income tax preparation perquisite provided as part of the personal benefits paid to the Company's senior management. The total amount of the gross up payment made to executives on their personal income tax preparation benefit has been approximately $500 to $1,000 per year. The tax gross up preserves the value of this benefit for the executives. Second, we provided tax gross up payments to each of Messrs. Hale and Simonson in connection with their joining Allstate. Each received gross up payments on their relocation expenses and Mr. Hale received a gross up payment on his signing bonus. Absent these tax reimbursement payments, Messrs. Hale and Simonson would have incurred significant expenses in connection with their joining Allstate. Lastly, the Change of Control agreements provide for reimbursement on an after-tax basis of any excise taxes resulting from severance benefits paid under those agreements.