Form 4: Chubb Ltd Executive Timothy Alan Boroughs Reports Acquisition of Performance Stock Units

Executive Vice President and Chief Investment Officer of Chubb Ltd, Timothy Alan Boroughs, reports the acquisition of performance stock units (PSUs) under the company's 2016 Long-Term Incentive Plan.

Summary

• On March 3, 2025, Timothy Alan Boroughs, Executive Vice President and Chief Investment Officer of Chubb Ltd, reported the acquisition of performance stock units (PSUs).
• The PSUs were awarded pursuant to the Chubb Limited 2016 Long-Term Incentive Plan.
• Two separate awards of 9,148 PSUs each were granted, totaling 18,296 PSUs.
• The PSUs vest in whole or in part on the third anniversary of the award, subject to service and performance-based criteria.
• Each PSU represents a contingent right to receive one Common Share of Chubb Ltd.
• PSUs that have not vested at the third anniversary of the award will be cancelled.
• Dividends shall be accumulated and distributed only when, and to the extent that the PSUs have vested.
• The total includes previously reported PSUs from other tranches with different vesting and expiration dates, resulting in a total of 16,188 PSUs.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating alignment of interests between management and shareholders. The sentiment is neutral to positive as it suggests confidence in the executive's future performance.

Positives

• The award of PSUs aligns executive compensation with the long-term performance of Chubb Ltd.
• The vesting criteria based on service and performance incentivize the executive to contribute to the company's success.

Risks

• The PSUs are subject to cancellation if the service and performance-based criteria are not met.
• The value of the PSUs is contingent on the future price of Chubb Ltd's Common Shares.

Future Outlook

The vesting of the PSUs is contingent upon the satisfaction of certain service and performance-based criteria over the next three years.

Industry Context

The granting of performance-based equity awards is a common practice in the insurance industry to align executive compensation with shareholder value and long-term company performance.

Comparison to Industry Standards

• Companies like AIG, MetLife, and Prudential also utilize long-term incentive plans that include performance-based equity awards for their executives.
• The specific terms and conditions of these plans, such as vesting schedules and performance metrics, can vary depending on the company's specific goals and circumstances.
• Benchmarking against industry peers would involve comparing the size of the PSU grants, the vesting criteria, and the overall structure of the long-term incentive plan.

Stakeholder Impact

• Shareholders: The PSU grants align executive interests with shareholder value creation.
• Employees: The PSU grants may serve as a motivation for other employees, as it shows the company is willing to reward performance.

Key Dates