Our compensation and benefits programs are designed to attract, motivate and retain high-performing employees and to help employees be healthy and productive in all aspects of their lives. Our long-standing pay-for-performance philosophy differentiates awards based on individual and company performance, regardless of gender, race or any other protected classification. In addition, our comprehensive, flexible benefit options are designed to meet the physical, mental and financial needs of employees and their families.
Paying our employees equitably is the foundation of our performance-based culture. Our equitable pay statement outlines our approach. Our compensation processes and controls are designed with the goal of ensuring that we compensate our employees without influence from bias. With the assistance of independent, outside experts, we annually review our compensation practices to help ensure equitable pay across the company. Based in part on these measures, we believe that we pay our employees equitably, regardless of gender, race or any other protected classification.
Our minimum hourly wage in the United States is $15; effective April 2022, however, our minimum wage has been increased to $18 per hour. As calculated and reported in our 2022 Proxy Statement, in 2021, excluding our Chairman and CEO, the median annual total compensation of all our employees was approximately $110,000. The median annual total compensation of our full-time U.S. employees who worked for Travelers for the entire year, who represent more than 90% of our U.S. workforce, was nearly $116,000, putting us in the top quartile for employee pay in the S&P 500.
Travelers’ compensation mix includes base salary, performance-based cash awards and equity grants. The mix of these rewards varies depending on the employee’s role at the company.
- Many employees receive most of their total rewards in the form of base salary and medical and retirement benefits. Travelers pays a higher percentage of health care costs for employees with lower salaries.
- Variable compensation (annual bonus and equity) becomes a larger portion of the total rewards mix for employees at higher levels in the organization. Furthermore, the senior-most executives, who are responsible for the development and execution of our strategic and financial plans, have the largest portion of their compensation tied to performance-based incentives.
Health & Wellness
Because our employees are our most valuable asset, we are committed to helping them be healthy and productive in all aspects of their lives. We know that when employees and their families are well – physically, emotionally, mentally and financially – they can be more fully engaged both personally and professionally. That’s why we offer comprehensive, flexible benefit options that, for our U.S. employees, include medical, dental, vision and prescription drug coverage; health savings; and flexible spending accounts.
In the United States, our medical plans cover more than 50,000 individuals, including employees, their children and their spouses/domestic partners. In 2021, we paid nearly $220 million in medical-related costs on behalf of our U.S. employees and their dependents. In our international operations, we provide medical coverage that supplements government-provided plans to our 2,000 employees and their families, subsidizing between 90% and 100% of total employee health benefit costs.
Employees and their eligible family members, including spouses, domestic partners and children, are generally eligible for coverage from the first day of employment. To keep rates affordable, Travelers subsidizes premiums on its health care plans through a cost-sharing model. We subsidize health benefits more heavily for less-compensated employees than for higher-paid employees, such as the company’s named executive officers. Accordingly, our higher-paid employees pay a significantly higher percentage of the cost of their health benefits as compared with our lower-paid employees.
We have a forward-thinking approach to our benefit plan design. We deliver new, innovative ways to support employee health and well-being, including financial incentives for some employees to choose high-quality, low-cost providers and safeguards regarding the use of opioids to help ensure that doctors, pharmacists and patients work closely together on treatment plans for pain management.
Our wellness program provides easy-to-use tools and resources that empower employees with the information and support they need to achieve their wellness goals. Here are some of our offerings for U.S. employees:
- In 2021, we introduced a new benefit for all U.S. employees – Caregiving Support from Wellthy. This program helps employees navigate the challenges faced as caregivers for children, aging family members, or loved ones with special needs or who are chronically ill.
- Our myWellness platform is a mobile-friendly, easy-to-use application that serves as a repository of wellness tools and resources to help employees achieve their physical, mental and wellness goals. Using the platform, employees can set physical and mental wellness goals, track healthy habits, find top-rated doctors in their area, review information about a new diagnosis or treatment, challenge friends to health competitions and more.
- Life Balance, our employee assistance program, provides employees with access to professional in-person, digital and text-based counseling services; life coaching; personalized mentoring; and support resources for daily life needs. All Life Balance services are free, confidential and available 24/7 to employees and their household family members.
- Grand Rounds (now called Included Health) is a free service for employees and dependents enrolled in a Travelers medical plan that matches members with top-ranked doctors, helps employees obtain second opinions from leading specialists and assists in navigating the health care system.
- MSK Direct is a free service for Travelers employees and their family members facing a cancer diagnosis. It provides guided access to expert cancer treatment and care at Memorial Sloan Kettering Cancer Center facilities.
- The diabetes management program, a no-cost service that combines the latest technology with real-time support, helps make handling diabetes easier for employees and their adult family members enrolled in a Travelers medical plan.
- Wellness champions in more than 50 local offices help cultivate a culture of wellness at Travelers by leveraging employees’ interests and ideas to implement healthy initiatives at local offices.
Additionally, recognizing that working parents and caregivers experienced additional challenges during the pandemic, in 2020, we launched the Working Parents & Caregiver Resource Group – a forum where Travelers parents and caregivers can come together to share tips, exchange resources and offer support to colleagues in similar situations.
We also offer:
- Fitness center discounts for employees.
- On-site chiropractors and physical therapists for employees at our Hartford campus.
- Free on-site wellness screenings at our Hartford and St. Paul campuses.
- On-site counseling services for employees at our Hartford campus.
- Free seasonal flu shots for employees through on-site clinics and various retail pharmacies.
- Mobile mammography for eligible employees in certain locations.
- Free tobacco cessation programs for employees and family members enrolled in Travelers medical plans.
- Weight management programs with personalized coaching support, resources to help employees make positive changes and digital tools for users to track progress over time.
- Health insurance benefits for transitioning employees and family members to cover professional counseling, hormone therapy and, if clinically appropriate, gender reassignment surgery.
For more information on how we have protected the safety and health of our employees, including during the pandemic, see the Safety & Health section of this website.
Savings & Retirement
Our 401(k) Savings Plan provides employees with a vehicle to save for their retirement and the opportunity to receive a company match on those contributions. Employees can contribute from 1% to 75% (in whole percentage increments) of their eligible pay as pre-tax 401(k) or after-tax Roth 401(k) contributions, up to the maximum allowed under IRS limits. Travelers annually matches employee 401(k) contributions dollar for dollar, up to 5% of eligible pay. The company match contributions made in early 2022 were based on 2021 contributions with a maximum annual company match of $7,000. Employees become 100% vested in company matching contributions after three years of service. Currently, 97% of our employees participate in the Travelers 401(k) Savings Plan. Outside of the United States, we provide defined contribution retirement plans for more than 2,000 employees, with an average company contribution rate of over 8%.
Travelers recognizes that the high cost of education and the obligation of repaying student loans prevent many people from saving for their retirement. Our innovative retirement savings benefit, The Travelers Paying It Forward Savings Program, addresses this issue for employees facing student loan debt. When an eligible employee makes a payment toward their student loans, Travelers makes an annual contribution of that amount into that employee’s 401(k) Savings Plan account, dollar for dollar up to the first 5% of eligible pay, to a maximum of $7,000. For the year ended December 31, 2021, Travelers spent almost $2 million to match student loan payments for more than 750 employees who had enrolled in this benefit. Since the program began in 2020, we’ve contributed nearly $5 million to the financial security of these employees.
Travelers also assists employees with meeting their retirement needs through the Travelers Pension Plan, an active defined benefit pension plan. Travelers pays the full cost of the employee’s plan benefits; we do not require employees to contribute personally. The plan determines the benefits under a cash balance formula, which provides pay and interest credits to a hypothetical account maintained for the employee with an annual pension credit of approximately 4% of the employee’s pay. In 2021, nearly $600 million went to providing our employees with security in their retirement through pension payments and credits and 401(k) matching contributions.
We also support our employees’ financial success through financial planning services. Thousands of our employees have taken advantage of this offering. Among other things, we offer our U.S. employees:
- A financial wellness assessment that allows employees to get a financial wellness score and personalized checklist to help meet their financial goals.
- Online and text-based retirement planning services, including complimentary consultations and workshops to assist in savings and retirement planning.
*Based on the median of the annual total compensation of full-time employees (other than the CEO) in the United States as reported in our 2022 Proxy Statement.
**As of April 1, 2022.
Additional benefits we offer our U.S. employees include:
- Life insurance.
- Short-term and long-term disability coverages.
- Paid time off, starting at 20 days per year, up to a maximum of 30 days per year based on years of service, plus the ability to purchase up to six additional days per year.
- Paid parental and adoption leave.
- Child care discounts.
- A corporate discount program.
- Paid time off for volunteering.