Unveiling the Compensation: How Much Does the CEO of USAA Make a Year?
Have you ever wondered about the financial top brass in major companies, especially those with a unique mission like USAA? It's a question that often sparks curiosity, given the significant responsibilities and impact these leaders have. Today, we're going to dive deep into the compensation of USAA's CEO, providing you with a comprehensive, step-by-step guide on understanding executive pay and how to find this information.
Step 1: Let's Start with Your Curiosity!
Are you here because you're a USAA member, a financial enthusiast, or simply intrigued by executive salaries? Whatever your reason, you're in the right place! Understanding how much a CEO earns can provide valuable insights into a company's priorities, its financial health, and even broader economic trends. So, let's embark on this journey of discovery together.
Step 2: Identifying the Current USAA CEO
Before we delve into numbers, it's crucial to identify the individual we're talking about. The CEO position in large organizations can change, and compensation figures are tied to specific individuals and their tenure.
Current Leadership at USAA:
As of the most recent information available (June 2025), Juan C. Andrade serves as the President and Chief Executive Officer of USAA. He took the helm in early April 2024. Prior to him, Wayne Peacock served as CEO. It's important to note this as recent reports often discuss Wayne Peacock's compensation from previous years.
Step 3: Navigating the World of Executive Compensation Disclosure
Unlike publicly traded companies that are required to file detailed compensation reports with the Securities and Exchange Commission (SEC), USAA operates as a reciprocal inter-insurance exchange. This means it has a slightly different structure and, consequently, different disclosure requirements.
Sub-heading: Where to Find the Information?
While USAA is not a public company, executive compensation information can still become public through a few key channels:
- State Insurance Department Filings: As an insurance company, USAA is regulated by state insurance departments. Some states, like Nebraska, have laws requiring the disclosure of executive compensation for insurance companies operating within their borders. This has historically been a source of information for USAA's executive pay.
- News Reports and Investigative Journalism: Financial news outlets and investigative journalists often dig into the compensation of top executives, especially for large, influential organizations like USAA. These reports frequently cite the state regulatory filings as their source.
- USAA's Annual Report to Members: While not as detailed as SEC filings, USAA's annual reports often provide an overview of the company's financial performance and may include general statements about executive compensation principles.
Step 4: Analyzing the Latest Compensation Figures (Focus on Recent Years)
Let's look at the most recent publicly available figures for USAA's CEO compensation. It's important to remember that compensation packages are often complex, comprising various components.
Sub-heading: Wayne Peacock's Compensation Trends
Since Juan C. Andrade recently took over, the most readily available detailed figures are for his predecessor, Wayne Peacock.
- 2024 Compensation (Wayne Peacock): According to recent reports, Wayne Peacock, the departed CEO, was paid nearly $10 million in 2024. This figure emerged as he was transitioning out of the role.
- 2023 Compensation (Wayne Peacock): In 2023, Wayne Peacock's compensation rose dramatically to at least $8.1 million. This was a significant increase from his 2022 compensation.
- 2022 Compensation (Wayne Peacock): In 2022, his compensation was $4.8 million.
- 2021 Compensation (Wayne Peacock): In 2021, he earned $1.9 million.
It's worth noting the significant increase in his compensation from 2021 to 2023/2024. This rise occurred even as USAA faced some challenges, including a reported net loss in 2022, which the company attributed to inflation, rising interest rates, and higher claims payouts.
Sub-heading: Understanding the Components of CEO Compensation
A CEO's total compensation package is rarely just a "salary." It typically includes a variety of elements:
- Base Salary: The fixed amount paid to the CEO, regardless of performance.
- Bonuses: Often a significant portion, these are performance-based incentives tied to company metrics, individual achievements, or strategic goals. For instance, in 2023, $6.8 million of Wayne Peacock's $8.1 million compensation was made up of bonuses, representing 84% of his total pay.
- Stock Options/Equity Awards: These provide the right to purchase company stock at a predetermined price or outright grants of stock, aligning the CEO's interests with the company's long-term performance.
- Long-Term Incentive Plans (LTIPs): These are designed to reward executives for achieving performance targets over several years.
- Perquisites (Perks): These can include things like company cars, private jet usage, housing allowances, and other benefits.
- Retirement and Deferred Compensation: Contributions to retirement plans or arrangements where a portion of compensation is paid out at a later date.
USAA has stated that "Compensation for the CEO and all executives includes base and incentive pay as well as compensation that is paid out over a period of multiple years. Their total compensation varies based on performance, market conditions and other factors." This confirms the multi-faceted nature of their executive pay.
Step 5: Contextualizing USAA CEO Compensation
Is $8 million, or even $10 million, a lot for a CEO? To truly understand the significance of these figures, it's helpful to put them in perspective.
Sub-heading: Comparing with Other Insurance Industry CEOs
While USAA is unique in its membership structure (serving military members and their families), comparing its CEO's pay to those of other large insurance companies can provide valuable context. In 2023, for example:
- State Farm's CEO: Michael L. Tipsord, made approximately $17.6 million.
- Travelers' CEO: Alan D. Schnitzer, made approximately $22.5 million.
- Progressive's CEO: Susan Patricia Griffith, made approximately $15.6 million.
From this perspective, Wayne Peacock's compensation, while substantial, was actually lower than some of his counterparts at other major insurance firms in 2023. This doesn't diminish the absolute amount but helps to benchmark it within the industry.
Sub-heading: Connecting Compensation to Company Performance
Companies often tie executive compensation to performance metrics. USAA's annual reports highlight its financial performance, which can influence executive pay.
- 2024 Financial Performance: USAA reported a strong year in 2024, adding 1 million new members, with net income of $3.9 billion, and net worth rising 10% to $32.1 billion. Total revenue increased 14% to $48.6 billion.
- 2023 Financial Performance: In 2023, USAA reported a net income of $1.2 billion and increased its net worth by $1.7 billion (6% year-over-year) to $29.1 billion. Revenues increased by 17% to $42.5 billion.
- 2022 Financial Performance: USAA reported its first-ever annual loss in 2022, a net loss of $1.3 billion.
The increase in CEO compensation in 2023 occurred despite a net loss in 2022, which can sometimes draw scrutiny. However, executive compensation is often based on a mix of long-term and short-term performance, and factors beyond annual profit can be considered.
Step 6: The Future of USAA's CEO Compensation
With a new CEO, Juan C. Andrade, now at the helm, it will be interesting to see how his compensation package evolves in the coming years. Companies often structure compensation to incentivize specific strategic goals.
Sub-heading: Transparency and Member Scrutiny
As a member-owned organization, USAA faces a unique level of scrutiny from its members regarding executive compensation. There's an ongoing debate about whether such high compensation aligns with the organization's mission to serve military members and their families, especially when members face rising premiums. This conversation underscores the importance of transparency in executive pay.
Step 7: The Bottom Line
While the exact real-time figure for Juan C. Andrade's current compensation as USAA's CEO is not yet publicly detailed in the same way as past CEO compensation, we can infer that it will likely be in a similar range to his predecessor's recent earnings, given the market for CEOs of large financial institutions.
Based on the latest available information, USAA's previous CEO, Wayne Peacock, was paid nearly $10 million in 2024 and at least $8.1 million in 2023. This compensation is a mix of base salary, substantial bonuses, and other incentives, and it falls within the range of compensation for CEOs of comparable large insurance companies.
10 Related FAQ Questions:
How to find out the current USAA CEO's exact salary?
While an exact, real-time "salary" (base pay) figure for the current CEO, Juan C. Andrade, isn't immediately publicized, his total compensation will be reported in due course through channels like state insurance department filings.
How to understand the different components of CEO compensation?
CEO compensation typically includes a base salary, performance-based bonuses, equity awards (like stock options), long-term incentive plans, and various perquisites (benefits).
How to interpret executive compensation in the context of company performance?
Executive compensation packages are often designed to reward strong financial performance, strategic achievements, and long-term growth. However, there can be a lag between performance and compensation disclosure, and various factors influence the final payout.
How to compare USAA CEO's pay to other insurance company CEOs?
You can compare USAA's CEO compensation to other large, publicly traded insurance companies by looking at their annual proxy statements (10-K filings with the SEC), which detail executive pay.
How to express concerns about USAA executive compensation as a member?
As a USAA member, you can express concerns through member feedback channels, engaging in discussions on member forums, or contacting USAA's corporate governance department.
How to access USAA's annual reports?
USAA publishes an annual report to members on its official website, which provides an overview of its financial performance and operations.
How to understand why USAA's CEO compensation is publicly available despite being a private company?
USAA, as a large insurance provider, is regulated by state insurance departments, some of which require disclosure of executive compensation as part of their regulatory filings, making the information accessible to the public.
How to know if CEO compensation impacts member premiums?
While CEO compensation is a part of a company's overall expenses, industry experts often state that it's a relatively small portion compared to major cost drivers like claims payouts and operational costs, so its direct impact on individual premiums is often debated.
How to learn more about USAA's corporate governance?
USAA's official website provides information about its corporate governance, including its Board of Directors and executive council.
How to stay updated on USAA's financial news and executive changes?
You can follow reputable financial news outlets that cover the insurance and financial services industry, as well as USAA's official newsroom and press releases.
