Selective has a pay-for-performance philosophy under which our best performers are expected to receive the highest pay. Our compensation program embraces total compensation including base pay, an annual cash incentive and long-term incentives. Selective participates in a number of compensation surveys to ensure that base pay and the incentive programs remain competitive in the marketplace.
Annual base pay represents an important part of your total compensation. Selective uses a grading system that relies on market survey data to determine base pay. Base pay is reviewed on an annual basis.
Annual Cash Incentive Program (ACIP)
ACIP is designed to encourage all employees to work towards a common goal -- the success of the company. An individual’s ACIP payout is determined by a formula that factors in the overall achievement of corporate strategic and financial goals as well as individual performance goals.
Long-Term Incentive Program (LTIP)
This annual program is reserved for employees who have demonstrated a high level of performance with the potential to significantly impact Selective’s business and financial results and contribute meaningfully to the company’s strategic objectives. These dollar-denominated awards consist of restricted stock and cash units both vesting over a three-year period.