Policy holders should expect to see all insurance premiums to decrease since profits are so good at Liberty Mutual.

Outstanding job on this piece. I wish I had an ounce of hope that a powerful image such as this would change anything. I really don't think it will. There is a deathly collusion in America between the millions of folks who have unfounded and irrational delusions about becoming rich one day, and the handful of folks who have found a way to make it happen. There is too much investment in keeping it the same. So some percentage of the people you noted, who are in the traffic jam to get to the cape, are scrounging to find their Liberty Mutual monthly premium. If they ever need their insurance, they'll quickly learn the art of the loophole that the insurance industry has perfected. The loopholes pay for the greed so clearly sketched by the author.

I'm assuming Brian that you have contacted the governor and the Mayor regarding this issue, obviously they are the ones that approved the tax breaks.

Great story Brian!!! I think I might be looking for a new insurer after reading all of the excesses listed. What a wonderful country and these people's greed is unbelievable. I really don't know how they can live with themselves. Keep up the great work and investigating all of this excessive greed!! Sincerely

This reminds me of the Bill Moyers/PBS interview with Wendell Potter, formerly of Cigna. It's yet another obscenity from the 1%.

50 million a year? 192K a DAY?!? What a great piece, thank you Brian. I wish there were more coverage of this "thumb in the eye" crony capitalism, and how it came about. Question: what taxes were paid on this unbelievable 50 million a year? 13%? Cayman Island tax shelters? Corporate jet tax loopholes? We cannot afford this ever more egregious process of gaming the system for wealth extraction to the .01%. It's absurd. We need to decide: democracy? Or plutocracy?

right on Brian. The two columns on Kelly are among your best ever. Incredibly on point. I don't care how brilliant this guy is - he is detestable.

But you get the point: Yes, I do, Brian, but it's not the point of the "Soaring greed at Liberty Mutual" that you are so breathlessly and desperately trying to make. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> The point I get is that you are a small-minded, provincial, rabble rouser who is trying to stir up the masses against Liberty Mutual to some undisclosed end. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> So, Liberty Mutual has a lot of money -- gee, that's shocking. Liberty Mutual has landscaping for their hanger -- unbelievable! >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Liberty Mutual's planes fly over "gazing down at so many overpaid firefighters, teachers, and police officers sitting in the traffic jam below". Yes...firefighters, teachers, and police officers (the Communist pictorials of the sturdy worker grasping the sythe and working for the glory of the state comes to mind). Wonderful logic: Worker Good, Executive Bad (actually, Evil). >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> I think someone from another new organization should do a little analysis of YOU just to be fair (you wouldn't mind, I'm sure). Who do you know, where do you go, how much do you make, who do you help -- you probably could write. That would be followed by analysis of other large companies. Does Raytheon have corporate planes? EMC? Let's see, what other large companies are headquartered here... >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>&

Great work! Illuminating and shocking. Kelly is living like some medieval Lord. McGrory is right. Mr Kelly didn't make anything or invent anything. He should be a steward of this company, not its king. The board of directors has some explaining to do.

My final point got lost in the cyber ether, it was: "Take town those satellite dishes from the front yard, and get a chicken for the back"...

I have written extensively about the city ($24 million) + state ($22.5 million) subsidy package to Liberty Mutual, given to "help" LM build its new $300 million tower in Back Bay. Here are links to my columns: http://www.mysouthend.com/index.php?ch=columnists&sc=city_streets&sc2=&sc3=&id=103499 http://www.mysouthend.com/index.php?ch=columnists&sc=city_streets&sc2=&sc3=&id=104204 http://www.mysouthend.com/index.php?ch=columnists&sc=city_streets&sc2=&sc3=&id=109587 Highlights: --The Mayor had the Boston Redevelopment Authority declare the site "blighted" to qualify for the tax breaks. --The new tower will consolidate LM employees from nearby buildings, which will be leased out for additional profits; those other buildings are already tax-exempt. --LM admitted at a public City Council hearing that it never had any intention to leave the state; so there was no need to fear that we'd lose the company if we didn't pay them off with tax breaks. --LM was promising to hire 600 people over the next 20 years (that's 30 people a year, in a workforce of 2500), with only a handful expected to be Boston residents. And that was 75% FEWER people a year than it had been hiring before the tax break. --LM has so much money that it wasn't even going to borrow for construction costs, just pay it all in cash from the household pin money drawer. --Deval Patrick's corporate-welfare office falsified LM's application, inflating the promised job number to 750 in order to justify giving LM a bigger subsidy. --LM gave Deval Patrick $50 million in campaign contributions, and gave Tom Menino $10 million. Let's organize a picket around the building site, and force LM to give back the money (i.e., shame Gov. Patrick and Mayor Menino into taking it back). It's enough to fund a third of the MBTA shortfall this year. LM won't miss the money; it's pocket change to them. Now it's in Kelly's pocket. Let's get it back. Who wants to join in planning the picket? Contact me at shirleykressel@comcast.net.

$50,000,000 to Deval Patrick? Where does that figure come from?

"I'll say again what I've said before: This is not a screed against the rich. "You invent something, you found a business, you excel in sports or the arts, you deserve whatever the world pays you. But when you're the CEO of a public company, or in this case, a mutual owned by the policy holders, you are a steward, not a lord, and this kind of pay and these kinds of perks are a thumb in the eye of common decency and sense." That's ridiculous. It doesn't matter if you are making tens of millions every year because you are a good ball player? Or pop musician? I think it does matter. No one, in my book, deserves to make that kind of money no matter what he or she does when there are those who don't even have a home or enough food to eat, or proper medical care. I think it is obscene to be extremely wealthy. When others have so little. If we felt ashamed of having millions, maybe we'd get our priorities straight.

Wow. If these points are indeed correct, I'm completely stunned. No, I don't begrudge the "1%" in any way as I was one for a brief period of time. Anyone who truly earns the money deserves to spend it (or not) in any way they please. However, if I were a Liberty Mutual shareholder reading this...... it would be the beginning of a very vocal reckoning for that Board. Add to the mix the Thomas May coincidence and the recipe for revolt is all mixed together. All that would be left is the turning on of the heat. What a great article. I hope it's factually correct.

"Liberty Mutual's planes fly over "gazing down at so many overpaid firefighters, teachers, and police officers sitting in the traffic jam below". Yes...firefighters, teachers, and police officers (the Communist pictorials of the sturdy worker grasping the sythe and working for the glory of the state comes to mind). Wonderful logic: Worker Good, Executive Bad (actually, Evil). " Can you PLEASE get off the "communist" thing? OMG!!

We have Liberty Mutual for everything. Home, auto, and more. About two years ago, when we filed our very first ever claim (having been insured by them for decades) for a mere $1,000, after a deductible, mind you, for damage due to 2 tornadoes barreling down our street LM paid it - and immediately upped the premium. We will more than pay for that $1000 claim.

Oh, so public employees are now Communists? And you think its okay for an executive (of a MUTUAL COMPANY - one that has a moral [no, not legal] obligation to pay dividends to its policy holders) to get $50m a year plus free perks he can obviously afford to pay for with that salary? And you think Brian is small minded?

I often wonder what the American Minutemen, who fought to free us from an oppressive monarchy, would think of the system that has evolved? For all intents and purposes, the monarchy has remained minus the titles!

Potlemac said: "I often wonder what the American Minutemen, who fought to free us from an oppressive monarchy, would think of the system that has evolved? For all intents and purposes, the monarchy has remained minus the titles!" >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Interesting point. Here's what I think: You have an idealized (inaccurate) view of the Minutemen -- because it's all about Human Nature. The ruler who allows individual differences that conflict with his interests DOES exist but it is a very rare bird because he would have to see the value, and be secure enough to allow, things that are AGAINST HIS OWN INTEREST. Those in power almost ALWAYS try to impose their will on what they control. Also, remember, the wisdom of the Minutemen was based on recent history and struggle against oppression and nature, but history fades into irrelevance as soon as the lessons are no longer absolutely necessary. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Ask yourself this: how many of us really care about freedom and fairness (enough that we would jeopardize our cushy little life situations to stand up for them)?

Oops, correction: I mis-wrote the amounts LM contributed to the governor and mayor. Those are $50,000 and $10,000 respectively -- not fifty million and ten million! Campaign contributions to politicians don't have to be that big to get huge returns from the taxpayers. Campaign contribution information is posted on a state website: http://www.efs.cpf.state.ma.us/SearchContributions.aspx Thanks, nahantjim, for calling my attention to that.

Great stuff, Brian!

shirleykressel wrote: ?Oops, correction: I mis-wrote the amounts" >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> The governor couldn't get an Escalade for $50K -- but perhaps one of those new satellite TV receivers that work at expressway speeds would be just the thing -- but, for $10K the mayor should be able to afford a chicken...

How many board members got rides on LM jets? Let's not pile on too much though. Brian's buddy, D'Alassandro and his crew at which was once John Hancock Mutual Life, wrote the book on how to hose policy holders while enriching themselves beyond their worth and contribution to the company.

I can tell Liberty Mutual vice president John Cusolito why Brian McGrory is writing about Mr. Kelly's outrageous salary, not to mention his disgusting comments about the "high salaries of government workers." He is a truth teller who reveals how & why corporations are fleecing the citizenry & the nation. As a teacher who's barely getting by on a fixed pension (& grateful to have it), I am delighted that there are investigative reporters who are willing to look under the rocks & behind the fences of these (Mis)Fortune 500 companies. Please keep it up!!

Any board of directors who pays a CEO tens of millions annually for, as you rightly put it, a stewardship position of a major corporation is incompetent. Kelly did nothing distinctive in his tenure to warrant this kind of compensation. This is, after all, a "mutual" company which is designed to reward the policy holders, FIRST. Insurance isn't rocket science. Mostly its mathematical modeling and offsetting reasonably predictable claim levels with rational premiums and appropriate investments. The bigger the company, the narrower the possibilities there are to make HUGE improvements in profitability. In fact, huge improvements in profitability in this industry, most often, are giant red flags of danger (usually the investments made are too risky). I'm all for people getting rich. The "inequality" argument is meaningless in a free society. However, when a board and CEO lard themselves up in this type of manner it is completely outrageous and shameful. They can't possibly justify it. I'd never buy a policy from such a company nor buy stock in any, similarly run, corporation. Liberty Mutual policy owners should bolt.