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Comparing the 2025 proxy against the 2026 proxy.

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CEO total Δ

-$3,823,397

-14.3% year-over-year

Peer churn

Members added or dropped across all peer groups

Policy + metric churn

Disclosures whose value moved or appeared/disappeared

Peer groups

Peer disclosure

Peer Group
— · 9 → 9 members
9 kept · +0 · −0
Same membership year-over-year.
Peer Group
— · 8 → 8 members
8 kept · +0 · −0
Same membership year-over-year.
Peer Group
— · 9 → 9 members
9 kept · +0 · −0
Same membership year-over-year.

Executive pay

Named executive compensation

Executive	Status	From	To	Δ Total	Δ %	Δ At-risk
Thomas J. WilsonChair, President and Chief Executive Officer	ChangedCEO	$26,744,295 2024	$22,920,898 2025	-$3,823,397	-14.3%	-2.6 pp
Mario RizzoExecutive Vice President; Chief Operating Officer	Changed	$9,326,860 2024	$7,298,938 2025	-$2,027,922	-21.7%	-3.8 pp
Jesse MertenExecutive Vice President; President, Property-Liability and former Chief Financial Officer	Changed	$7,712,339 2024	$6,859,465 2025	-$852,874	-11.1%	-2.4 pp
John DugenskeChief Financial Officer (interim); President, Investments and Corporate Strategy	Changed	$8,174,571 2024	$7,784,568 2025	-$390,003	-4.8%	-1.0 pp
Andréa CarterExecutive Vice President, Chief Human Resources Officer	Added	—	$5,560,263 2025	—	—	—
Christine DeBiaseExecutive Vice President, Chief Legal Officer and General Counsel	Removed	$5,170,187 2024	—	—	—	—
Zulfikar JeevanjeeExecutive Vice President; Chief Information Officer	Added	—	$5,064,487 2025	—	—	—

Governance

Policy guardrails

change in control
Unchanged
Not extracted → Not extracted
“Change in Control Benefits”
clawback
Unchanged
present → present
“Clawback policy established pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act): Allstate will recover certain erroneously awarded incentive-based compensation (wheth…”
compensation committee
Unchanged
Compensation and Human Capital Committee → Compensation and Human Capital Committee
“Message from the Compensation and Human Capital Committee”
compensation consultant
Unchanged
independent → independent
“independent compensation consultant”
hedging
Unchanged
Not extracted → Not extracted
“Policies on Hedging and Pledging Securities”
pledging
Unchanged
prohibited → prohibited
“We also have a policy that prohibits senior executives and directors from pledging Allstate securities as collateral for a loan or holding such securities in a margin account, unless an exception is granted by the Chair …”
stock ownership guidelines
Unchanged
present → present
“equity ownership requirements”

Performance markers

Metric facts

annual incentive payout
Removed
188.1% → Not extracted
ceo pay ratio
Removed
364:1 → Not extracted
median employee compensation
Changed
$73,333 → $74,782
Numeric delta: +1449.00
“an annual average was used for each of the exchange rates.•After identifying the median employee based on total cash compensation, annual total compensation was calculated for that person using the same methodology used …”
revenue
Changed
$72.61 billion → $350
Numeric delta: -72609999650.00
“its defined benefit pension plans so that thereafter, all eligible employees earn pension benefits under a new cash balance formula. Deferred Compensation Plan •To remain competitive with market practices, Allstate permi…”
time equity mix
Removed
188.1% → Not extracted

Narrative

CD&A prose similarity

Coarse measure of how much the compensation discussion text moved year-over-year. Not a substitute for reading the actual filings.

22% shingled-prose overlap between the two filings.

2025: 62,084 chars · 2026: 61,346 chars

Committee Report:62% overlap (644 → 654 chars)
Pay Ratio (Item 402(u)):44% overlap (60,000 → 60,000 chars)
Say-on-Pay proposal:0% overlap (25,000 → 25,000 chars)

2025 proxy on SEC ↗2026 proxy on SEC ↗

Narrative

What actually changed in the CD&A

Sentence-level diff between the two filings. New disclosures appear first, then sentences whose wording shifted, then sentences the prior year had that are no longer present.

146 new146 changed132 removed66 unchanged

changedAllstate’s compensation philosophy is to pay for performance over short- and long-term periods, with a focus on financial, operating and strategic metrics that are designed to drive shareholder long-term value.
changedEach year, the committee reviews the named executives’ performance and uses usinga balanced and disciplined approach to determine base salaries and variable compensation awards.
newIn 2025, a number of alternative compensation structures were considered with feedback from shareholders, as inputs into compensation decisions.
changedDuring 2025, 2024,the committee also focused continuedtofocuson senior leadership development, developmentandsuccession planning, and enterprise aswellasorganizational health.
changedWe appreciate the feedback on all of these topics topics,and hope to have your support on this year’s say-on-pay vote.
newWHERE TO FIND2025 Executive Compensation At-a-Glance48Compensation Decisions for 202561Compensation Risk68Other Elements of Compensation65Compensation Committee Report68Incentive Design and Goal-Setting51Compensation Governance Practices67Summary Compensation Table69Shareholder Engagement and 2025 Say-on-Pay Results52Non-GAAP Performance Measures for 202583Equity Ownership Requirements67Timing of Equity Awards and Grant Practices52Policies on Hedging and Pledging Securities67Pay Ratio87Pay Versus Performance Table88Peer Benchmarking53Clawback of Compensation68Compensation Elements54
changedThe Allstate Corporation | AllstateInvestors.com47 AllstateProxy.com49
newIntroductionCorporateGovernanceExecutiveCompensationAuditMattersShareholder ProposalStockOwnershipOtherInformationLinks andResources
changed12025 12024Executive Compensation At-a-Glance
changedAllstate’s executive compensation program is designed to ensure that the interests of our executives are aligned with our shareholders. shareholders:
changedPay for PerformanceOver 90% PerformanceThemajorityof our theCEO’s and over 80% of our other Named Executive Officers’ (NEOs’) compensation opportunity is at-risk and based on measurable performance goals.Establish a Strong Link Between Performance Measures and Strategic ObjectivesPerformance measures are linked to operating priorities designed to create long-term shareholder value.
newAllstate’s executive compensation program is designed to align pay with performance and reinforce long‑term shareholder value creation.
newAnnual cash incentives are linked to near-term operating priorities and long-term equity measures are based on shareholder value creation.
newProgram Design and Philosophy
new•A significant portion of the named executives’ compensation is at-risk and tied to achievement of key financial and strategic goals.
newCollectively, approximately 88% of their average target compensation is dependent on performance outcomes.
new•Incentive compensation plans incorporate metrics that incentivize our executive leadership team to achieve Allstate’s short‑ and long‑term business objectives.
new•These metrics align with our business strategy and support shareholder value creation at all points in the business cycle.
new•Equity-based programs use performance measures correlated with long‑term shareholder value.
newEvidence of Alignment in Incentive Outcomes
new•Our results this past year demonstrate the executive compensation program operates as intended and aligns outcomes with shareholder expectations.
newWhen performance exceeds goals, executives earn above-target compensation, whereas when performance is below expectations, payouts are reduced accordingly.
newAnnual Incentive Plan (AIP)•In 2025, net income increased to $10.2 billion due to improvements across Allstate’s businesses.•As a result, the AIP funded at 127.2% of target for 2025.•This compares to 188.1% in 2024 and 50% in 2023.2025 Annual Cash Incentive127.2%Payout as a percentage of target pool funding
newPerformance Stock Awards (PSAs)•The 2023–2025 PSA program resulted in a payout of 157.4%.
newThis compares to the 2022–2024 PSA program which paid out at 62.2%, reflecting the impact of auto insurance results on returns in 2022 and 2023.2023-2025 Performance Share Stock Awards157.4%Shares vested as a percentage of target
newFiscal 2025 Variable Pay Components
newFor fiscal 2025, the variable pay components (described below) are comprised of short‑ and long-term metrics intended to align with our pay-for-performance compensation philosophy which delivered the following outcomes:
new•Total policies in force grew by 3% over 2024 to 211 million, marking a return to growth in the property-liability businesses,
new•Net Income applicable to common shareholders rose to $10.2 billion, a 123% increase over 2024, and
new•Shareholders were provided with over $2.2 billion of cash returns through dividends and share repurchases, an increase of 136% over 2024.
newFor more information about the metrics we use to measure compensation and the resulting payouts, see the Compensation Elements section of the Compensation Discussion and Analysis (CD&A).
changed48The Allstate Corporation | AllstateInvestors.com AllstateProxy.com
newAt-Risk Pay Aligns with Performance and Compensation Governance Best Practices
newThe charts below illustrate the allocation of all components of fiscal 2025 direct compensation at target for our CEO and for our other NEOs as a group.
newCEOOther NEOs
changedWhatWeDoWhat We DoNotDo Benchmark to peers of similar industry, size and business complexity Target pay at 50th percentile of peers Use an independent compensation consultant Deliver Doubletriggervestingintheeventofa changeincontrolmajority of LTI isdeliveredthrough performance stock awards (PSAs) Use a Total Shareholder Return (TSR) metric relative to peer performance Denominate and settle the entire AllLTI isdenominatedandsettledin equity Provide clear rationale for the metrics used to fund the annual and long-term incentive plans Have maximum payout caps for annual cash incentive compensation and PSAs Have robust equity ownership requirements Policy to clawback or cancel cancellationofcertain compensation beyond the Dodd-Frank Act requirements Have one-year minimum equity vesting provision in the equity plan Employ double trigger vesting in Provideclearrationaleforthe event metricsusedtofundtheannualandlong-termincentiveplansEmploymentagreementsforexecutiveofficersGuaranteedannualsalaryincreasesorbonusesSpecialtaxgross-upsRepricingorexchangeof a change underwaterstockoptionsPlansthatencourageexcessiverisk-takingHedgingorpledgingofAllstatesecuritiesInclusionofequityawardsin control pensioncalculationsExcessiveperksCountunvestedPSAsorstockoptionstowardsownershiprequirements
newWhat We Don't Do Employment agreements for executive officers Guaranteed annual salary increases or bonuses Special tax gross-ups other than for relocation allowance Repricing or exchange of underwater stock options Plans that encourage excessive risk-taking Hedging or pledging of Allstate securities Include equity awards in pension calculations Excessive perks Count unvested PSAs or stock options towards ownership requirements
changedThe Allstate Corporation | AllstateInvestors.com49 AllstateProxy.com51
changedExecutive Compensation Program and Allstate’s Strategy
new•In 2025, total revenues grew to $67.7 billion (5.6% above the prior year), driven by increased Property-Liability earned premium and net investment income.
changed•Successful Successfulrisk and return management contributed to excellent underwriting and investment results.
newNet income applicable to common shareholders was $10.2 billion compared to $4.6 billion in 2024.•The Company advanced its Transformative Growth strategy, including the rollout of Allstate ASC (Affordable, Simple and Connected) auto and homeowners insurance products in 43 and 31 states, respectively.
newAllstate’s success depends on the expertise and leadership of the management team.
newOur executive compensation payouts align with business results to attract, motivate, and retain talented leaders.
newA significant portion of executive pay is performance-based, delivered through cash and equity incentives tied to measurable short- and long-term goals to promote:•A culture of high performance and accountability•Alignment between executive compensation and objectively measured company performance•Progress toward key strategic priorities•The long-term interests of our shareholders2025 Compensation Metrics Support Allstate’s StrategyAnnual CashIncentiveAwardsSpecific Business Growth and Profitability Captures growth and profitability of Allstate businessesEnterprise Performance Net IncomeAligns with corporate value of collective success and overall resultsPerformanceStock AwardsAverage Performance Net Income ROECorrelates to shareholder value creationMeasures performance in a way that is tracked and understood by investorsCaptures both income statement and balance sheet results, including capital management actionsRelative Total Shareholder Return (TSR)Added in 2020 based on feedback from shareholders and prevalent market practicesPerformance is relative to a TSR peer group
new1-Year25%20%10.1%15%7.2% 6.2%6.2%10%5%0%3-Year90%64.6%72%52.6%50.2%45.5%54%36%18%0%5-Year140%120.1%120.7%111.1%114.1%105%70%35%0%
changed50The Allstate Corporation | AllstateInvestors.com AllstateProxy.com
changedThe Compensation and Human Capital Committee designs, approves and oversees the implementation of andapprovesAllstate’s executive compensation program.
changedThe committee also reviews and approves compensation for the leadership team, team(otherthantheCEO),with feedback from the CEO on compensation other than his own. CEO.
changedThe committee, in conjunction with its independent compensation consultant, Pay Governance, Committeeevaluates the executive compensation structure on an annual basis to ensure alignment with Allstate’s compensation philosophy, business strategy, shareholder priorities strategyand peers. shareholderpriorities.
changedThe compensation philosophy centers around maintaining a compensation program for the named executives that is designed to promote the achievement of short- short-termand long-term financial and strategic goals.
newThe committee’s 2025 review is described in Compensation Decisions for 2025 on pages 61-64.
changedFor the annual and long-term incentive LTIprograms, the committee oversees a rigorous and comprehensive goal-setting process.
changedThe committee uses performance measures in the annual and long-term programs that (1) align with the company’s strategy, operating priorities and shareholder interests, (2) are based on providedinthe annual and strategic operating and financial plans and (3) reflect the company’s overall performance.
changedThe following timeline of key events reflects the committee’s process in fiscal year 2025: 2024:
newTimeline of Compensation Events
newThe Committee's incentive design, goal-setting and payout process is a year-round processâApril - JulyàNovember - JanuaryàFebruaryReview Compensation Philosophy and BenchmarkEstablish Plan Design and Key MetricsCalculate Payouts•Evaluate peer group to determine if any changes are appropriate for the next performance cycle•Compare executive compensation against peers' target compensation, financial results and shareholder returns over one, three and five years•Hold Annual Meeting and review feedback from shareholders and proxy advisory firms on compensation•Independent compensation consultant provides pay for performance analysis, advice on incentive design and information on current market practices and industry trends•Monitor compensation estimates in comparison to actual and relative performance•Independent compensation consultant provides advice on executive pay levels•Establish plan design and performance measures for the upcoming year•Board approves annual operating plan which is used to establish target performance and ranges for the annual and long-term incentive programs.
newLong-term plan targets reflect 3-year strategic objectives and peer performance and LTI ranges reflect historical and expected performance, market expectations and industry trends•Review program for alignment with enterprise risk and return principles•Actual performance against goals determines the corporate pool for the annual incentive award•Annual incentive pool is allocated based on performance of businesses and individual leaders to align pay with performance•Determine the number of performance stock awards that will vest for the applicable measurement period based on actual performance•Review and approve salary adjustments and annual incentive payments and equity grants for executive officers•Monitor compliance with equity ownership requirements
changedThe Allstate Corporation | AllstateInvestors.com51 AllstateProxy.com53
changedShareholder Engagement and 2025 2024Say-on-Pay Results
changedAt the 2025 2024Annual Meeting of Shareholders, more than 95% 86%of votes cast supported the Company’s executive compensation program.
changedSince the 2025 Annual Meeting, During2024,members of senior management and the independent Lead Director engaged with shareholders representing approximately morethan35% of shares outstanding.
changedIn these meetings, we discussed arangeoftopics related to executive compensation and corporate governance, compensation,including how Allstate’s ourcompensation program has evolved over time and aligns with the company’s tocloselytietoourstrategy.
changedInvestors generally expressed support for satisfactionwithAllstate’s program design and focus on pay for performance.
changedIn determining the structure and amount of executive pay, the Compensation and Human Capital Committee carefully considered this feedback, alongside our compensation philosophy, strategic business goals, market practices and 2025 2024vote results.
changedAs was the case in 2025, long-term equity incentive targets in 2026 will be based on adjusted net income return on equity and relative total shareholder return.
changedFor additional information on the company’s shareholder engagements, see page 42 43and for additional information on long-term equity incentive targets, see pages 58-60. 61-64.
newName (a)Grant date(b)Number ofsecuritiesunderlyingthe award(c)Exercise priceof the award($/Sh)(d)Grant datefair value ofthe award(e)Percentage change in the closing market price ofthe securities underlying the award between thetrading day ending immediately prior to thedisclosure of material nonpublic information andthe trading day beginning immediately followingthe disclosure of material nonpublic information(f)Mr. Wilson2/24/202593,349 $188.75 $4,530,227 2.60%Mr. Dugenske2/24/202512,055 $188.75 $585,029 2.60%Mr. Merten2/24/202514,013 $188.75 $680,051 2.60%Mr. Rizzo2/24/202514,837 $188.75 $720,040 2.60%Mr. Jeevanjee2/24/20256,594 $188.75 $320,007 2.60%
changed52The Allstate Corporation | AllstateInvestors.com AllstateProxy.com
changedThe Compensation and Human Capital Committee monitors performance toward goals throughout the year and reviews the executive compensation program design and executive pay levels annually.
changedAs part of that evaluation, the committee’s independent compensation consultant, Pay Governance, provides providedexecutive compensation data, information on current market practices and benchmarking on target pay opportunities.
changedThe committee benchmarks executive compensation program design and executive pay against multiple market references, including financial services and broader general industry survey data and a group of peercompaniesthatareindustrypeers as points apointof reference in determining executive pay within a competitive range.
changedProduct mix, market segment, annual revenues, premiums, assets and market value are wereconsidered when identifying peer companies.
changedAs of 2024, 2023,eight out of thirteen of Allstate’s peer companies also include Allstate in their respective peer company lists.
changedThe following table reflects the peer group used for 2025 2024compensation benchmarking.
newCompensation Peer Companies(1)(2)Company NameRevenue($ in billions)Market Cap($ in billions)Assets($ in billions)Premiums($ in billions)AFLAC Inc.17.2 57.2 116.5 13.5 American International Group, Inc.26.8 46.0 161.3 23.8 AON plc17.2 75.7 50.8 17.2 Chubb Limited59.8 122.1 272.3 53.0 The Hartford Financial Services Group, Inc.28.4 38.2 86.0 24.4 Humana Inc.129.7 30.9 48.9 122.8 Manulife Financial Corporation43.6 61.0 747.9 20.7 Marsh McLennan27.1 90.0 58.7 17.3 MetLife, Inc.77.1 51.7 745.2 54.8 The Progressive Corporation87.6 133.5 123.0 81.7 Prudential Financial Inc.60.8 39.3 773.7 35.5 The Travelers Companies Inc.48.8 63.1 143.7 43.9 Allstate67.7 54.1 119.8 61.4 Allstate Ranking Relative to Peers:Property and Casualty Insurance Products3 of 96 of 96 of 92 of 9All Peer Companies4 of 138 of 138 of 133 of 13
changed(1)Information as of year-end 2025. 2024.
new1 Year Total Shareholder Return 54433322110<(10)(10)-00-1010-2020-30Total Shareholder Return Range(%)3 Year Total Shareholder Return 54333322210<2020-4040-6060-8080+Total Shareholder Return Range(%)5 Year Total Shareholder Return 54443222110<4040-8080-120120-160160+Total Shareholder Return Range(%)
changedThe Allstate Corporation | AllstateInvestors.com53 AllstateProxy.com55
changedThe following table lists the elements of target direct compensation for our 2025 2024executive compensation program.

Removed from 2025

As members of the Compensation and Human Capital Committee, we thank the many of you that engaged with us and provided feedback during 2024.
The approach for 2024 included a range of performance and governance considerations, as well as shareholder feedback, as inputs into compensation decisions.
WHERE TO FIND 2024 Executive Compensation At-a-Glance49Compensation Decisions for 202465Compensation Risk70Incentive Design and Goal-Setting53Other Elements of Compensation68Compensation Committee Report70Shareholder Engagement and 2024 Say-on-Pay Results54Compensation Governance Practices69Summary Compensation Table71Timing of Equity Awards and Grant Practices54Equity Ownership Requirements69Non-GAAP Performance Measures for 202484Peer Benchmarking55Policies on Hedging and Pledging Securities69CEO Pay Ratio87Compensation Elements56Clawback of Compensation70Pay Versus Performance Table88
IntroductionCorporateGovernanceExecutiveCompensationAuditMattersSustainabilityStockOwnershipOtherInformationLinks andResources
Target Compensation Mix
CEO
At-Risk Performance-Based Pay: 92%8%BaseSalary22%Annual Cash Incentive49%Performance Stock Awards21%Stock Options
OTHER NEOs (average)
At-Risk Performance-Based Pay: 84%16%Base Salary30%Annual Cash Incentive32%Performance Stock Awards11%Stock Options11%Restricted Stock Units
Allstate’s executive compensation program is aligned with shareholder interests.
The named executives’ compensation is aligned with achievement of these financial and long-term strategic goals and at least 84% of their average target compensation is at-risk.
Incentive compensation plans incorporate relevant metrics and targets to drive the behaviors necessary to accomplish our short- and long-term goals.
Our program uses equity-based programs consisting of performance measures that are closely correlated with growth in shareholder value over time.
This alignment is apparent in our incentive plan payouts.
In 2024, net income increased to $4.6 billion largely due to significantly improved auto insurance underwriting margins, which had been negative in 2022 and 2023 reflecting pandemic-related inflation in auto claim costs.
As a result, the annual cash incentive plan funded at 188.1% in 2024, versus 57.5% in 2022 and 50% in 2023.
2022-2024 Performance Stock Award (PSA) program results of 62.2% remained below target.
2021-2023 PSA program results were 31%, given the impact of auto insurance results on returns in 2022 and 2023.
2024 compensation reported on the Summary Compensation Table on page 71 also reflects the change in the mix of NEO equity incentives in response to shareholder feedback: the percentage of long-term equity compensation awarded in stock option grants was reduced and the percentages of compensation in PSAs and Restricted Stock Units (RSUs) were increased; however, the compensation structure for our CEO only includes incentive-based equity and does not include any time-based RSUs.
2024 Annual Cash Incentive(1)
188.1%Payout as a percentage of target pool funding from Market-Facing Businesses plus Investments roll-up.
Performance Net Income exceeded target and prior year.Market-Facing Businesses Plus Investments Roll-up (70% of opportunity)Performance Net Income (30% of opportunity)(in millions)
2022-2024 Performance Stock Awards(1)
62.2%Shares vested as a percentage of target.
Results below target due to Performance Net Income substantially below plan in 2022 and 2023 reflecting impact of inflation on auto repair and replacement costs.
Average Performance Net Income Return on Equity (50% of opportunity)Relative TSR (30% of opportunity)Items in Force Growth Personal Property and Liability(2)Items in Force GrowthAll Other(2)
(1)For a description of how these measures are determined, see pages 57-64.
(2)Items in Force Growth Personal Property and Liability and Items in Force Growth All Other represent 20% of opportunity in the aggregate.
Executive Compensation Program is Tied to Business Strategy and PrioritiesAllstate’s business relies on the expertise and capabilities of colleagues to lead the company and our various businesses in ways that meet customers’ needs and, in turn, promote the long-term interests of shareholders.
The executive compensation program is designed to achieve business objectives and attract, motivate and retain talented individuals.Allstate’s executive compensation program closely aligns the compensation and interests of the named executives with the long-term interests of shareholders.
The executive compensation program emphasizes performance-based compensation in the form of cash and equity incentive awards based on short- and long-term financial and strategic targets.
This target-based incentive structure fosters a culture of high performance and accountability and promotes shareholder interests by closely aligning executive compensation with objectively measured company performance and achievement of key strategic priorities.
In 2024, Allstate advanced its strategy to increase personal property-liability insurance market share and expand embedded protection.
Allstate delivered strong results: Total revenues grew to $64.1 billion, 12.3% above the prior year, driven by increased Property-Liability earned premium.
Net income applicable to common shareholders was $4.6 billion compared to a loss in 2023.2024 Compensation Metrics Support Allstate’s StrategyAnnual CashIncentiveAwardsMarket-Facing Businesses plus Investments Performance Captures growth and profitability of the Allstate businessesPerformance Net IncomeAligns with shareholder expectations for profitability and return on capitalPerformanceStock AwardsAverage Performance Net Income ROECorrelates to changes in long-term shareholder valueMeasures performance in a way that is tracked and understood by investorsCaptures both income statement and balance sheet impacts, including capital management actionsRelative Total Shareholder Return (TSR)Added based on feedback from shareholders and prevalent market practicesPerformance is relative to a TSR peer groupInclusive Diversity and EquityMeasures progress on Inclusive Diversity and Equity (eliminated for 2025)
2024 Operating Priorities Grow Customer BaseAchieve 2024 Plan Growth ObjectivesConsolidated policies in force reached 208 million, a 7.2% increase from prior year.
Personal Property-Liability policies in force decreased by 0.6% compared to the prior year, as continued growth in the homeowners insurance business was more than offset by declines in the auto insurance business.Protection Services policies in force and revenue increased 9.3% and 16.7%, respectively, primarily due to growth at Allstate Protection Plans through expanding distribution relationships and protection offerings.Achieve Target Economic Returns on CapitalAchieve 2024 Plan ReturnsReturn on average Allstate common shareholders’ equity was 25.8% in 2024.Total return on the $72.61 billion investment portfolio was 3.8% in 2024.
Proactive portfolio management repositioned the fixed income portfolio into longer duration and higher-yielding assets to increase income.The Property-Liability combined ratio of 94.3 for the full year decreased compared to the prior year primarily reflecting successful execution of the company’s comprehensive auto insurance profitability plan and slightly lower catastrophe losses.Execute Transformative GrowthImprove Customer ValueEnterprise Net Promoter Score, which measures how likely customers are to recommend Allstate, finished below the prior year, reflecting the impact of substantial price increases necessary to offset higher loss costs.Improved over 25 million customer interactions.Expand Customer AccessIncreased auto insurance new issued applications in all channels.National General continues to build a strong competitive position in independent agent distribution with successful expansion on non-standard auto sales and roll-out of our auto and home Custom360 product now available in 30 states.Increase Sophistication and Investment in Customer AcquisitionIncreased advertising and reduced underwriting restrictions as higher average premium outpaced increased loss costs per policy.Deploy New Technology EcosystemsContinued roll-out of Affordable, Simple and Connected auto insurance offering available in 31 states for auto, 28 states for renters and Affordable, Simple and Connected homeowners insurance offering available in 4 states at year-end 2024.Expanding utilization of machine-based learning and artificial intelligence.Drive Organizational TransformationStreamlined the organization by reducing bureaucracy, risk aversion and organizational silos.
1-Year3-Year5-Year
In the Committee’s 2024 review with its independent compensation consultant, Pay Governance, the Committee approved market adjustments, as described in Compensation Decisions for 2024 on pages 65-67.
BenchmarkApril-July•Evaluate peer group to determine if any changes are appropriate for the next performance cycle•Compare against peers' target compensation, financial results and shareholder returns over one, three and five years •Review feedback from shareholders and proxy advisory firms on compensation•Independent compensation consultant provides pay for performance analysis, advice on incentive design and information on current market practices and industry trendsCalculate PayoutsEstablish Plan Design and Key MetricsFebruaryNovember-January•Actual performance against goals determines the corporate pool for the annual incentive award•Annual incentive pool is allocated amongst enterprise based on performance of businesses and individual leaders to align pay with performance•Determine the number of performance stock awards that will vest for the applicable measurement period based on actual performance•Review and approve salary adjustments and annual incentive payments and equity grants for executive officers•Independent compensation consultant provides advice on executive pay levels•Establish plan design and performance measures for the upcoming year•Board approves the annual operating plan which is used to establish target performance and ranges for threshold and maximum for the annual incentive program.
Long-term plan targets reflect 3 year strategic objectives and peer performance.
Ranges for performance goals reflect historical and expected performance, market expectations and industry trends•Review operating plans and compensation measures for alignment with enterprise risk and return principles
Compensation Peer Companies(1)(2)Company NameRevenue($ in billions)Market Cap($ in billions)Assets($ in billions)Premiums($ in billions)AFLAC Inc.18.956.9117.613.4American International Group, Inc.27.344.1161.323.5AON plc15.877.649.015.7Chubb Limited55.9110.7246.349.8The Hartford Financial Services Group, Inc.26.531.580.922.9Humana Inc.117.830.646.5112.1Manulife Financial Corporation38.953.1680.319.4Marsh & McLennan24.6104.456.515.4MetLife, Inc.71.056.4677.549.9The Progressive Corporation75.3140.4105.770.8Prudential Financial Inc.70.442.0735.647.2The Travelers Companies Inc.46.454.6133.241.9Allstate64.151.1111.658.3Allstate Ranking Relative to Peers:Property and Casualty Insurance Products3 of 97 of 95 of 92 of 9All Peer Companies5 of 139 of 138 of 133 of 13
1 Year Total Shareholder Return3 Year Total Shareholder Return5 Year Total Shareholder Return
Vest ratably in equal annual installments over three years.Expire in ten years or, in the event of retirement, the earlier of five years from retirement or normal expiration.
How Target Opportunities Are Set
•Target annual incentive percentages for each named executive are set annually by the Committee and are based on consideration of incentive opportunities at peer companies and our benchmark guideline for total direct compensation at the 50th percentile.
•Performance Net Income target for 2024 was set above 2023 target and actual performance.
Individual discretion does not impact total pool funding.
2024 Actual Performance
Market-Facing Businesses and Investments Results(70% of opportunity)Performance Net Income(30% of opportunity)¢Target¢Actual
(1)A collar on Performance Net Income was utilized in 2023 to increase the absolute level by $660 million to $1,122 million and is not included in the 2024 program.
Measures / Weight2024 AIP Performance Range($ in millions)2024Result($M)2024FundingNEOs(% )ThresholdTargetMaxProperty-LiabilityProfitable Growth Matrix1(59.5%)Property-Liability Matrix193.2 CR-0.6% IIF195.0 %Protection Services Total WrittenPremium/OtherRevenue (1.75%)$2,879$3,079$3,279$3,210 165.5 %PerformanceIncome (1.75%)$119$149$179$196 200.0 %Health and Benefits Revenue (1.75%)$2,320$2,470$2,620$2,443 91.0 %PerformanceIncome (1.75%)$188$218$248$141 50.0 %InvestmentsNet InvestmentIncome (1.75%)$2,700$3,075$3,450$3,185 129.3 %Economic TotalReturn vs.Benchmark (1.75%)(50 bps)25 bps120 bps+28 bps103.2 %Market Facing Businesses (MFBs)2 and Investments Roll-Up (70%)184.2 %Performance Net Income (30%)$2,060$3,660$5,260$5,213 197.1 %Overall payout by pool188.1 %
Beginning in 2024, the equity mix for the CEO and senior executives was changed based on shareholder feedback.
The equity mix for the CEO is 70% PSAs and 30% stock options and senior executives is 60% PSAs, 20% stock options and 20% RSUs.
PSAs and stock options are forms of performance-based incentive compensation because PSAs are earned based on achieving established performance goals and stock options require stock price appreciation to deliver value to an executive.
2024 LTI Awards (Equity)
In fiscal year 2024, the Committee, in consultation with its independent compensation consultant, Pay Governance, approved an above target equity award for each of our named executives to incentivize continued strong performance and ensure competitiveness with the market.
In approving such awards, the Committee considered the substantial progress our senior leadership team is making in delivering against the company’s profitability and growth strategy, including improved auto profitability and underwriting performance, reducing expenses, expanding customer access and leveraging technology.
The Committee wanted to promote the executives’ continued commitment to and progress on the company’s profitability and growth strategy, recognize each executive’s individual performance relative to such strategy and continue strengthening retention of the senior leadership team.
As a matter of practice, LTI award grants to our officers are not at guaranteed levels and vary with market practice and performance.
The 2024 equity awards are subject to Allstate's LTI award terms set forth on page 74.
For additional information about the 2024 equity awards granted to our named executives, please see pages 65-67 with respect to the 2024 compensation for Messrs.
Wilson, Merten, Rizzo, Dugenske and Ms. DeBiase.
Metrics and Purpose
The custom TSR peer group for 2024 is shown on page 55.
•For PSAs granted in 2025, the performance measures were revised to focus solely on objective (Average Performance Net Income ROE-60%) and relative (TSR-40%) financial metrics.Measurementperiod Vesting
•The Committee requires positive net income in order for senior executives to earn PSAs based on Average Performance Net Income ROE above target.
If Allstate has a cumulative net loss in a measurement period, the number of PSAs vested may not exceed target, regardless of the Average Performance Net Income ROE.
This positive net income hurdle is included to prevent misalignment between Allstate reported net income and the PSAs vested based on the Average Performance Net Income ROE result.
This situation could occur if, for example, catastrophe losses or capital losses that are not included in Performance Net Income ROE result in a net loss for the period.
For a description of the calculation, see page 86.
PSA Ranges of Performance
For the 2023-2025 and the 2024-2026 outstanding performance cycles, the performance measures and levels of performance needed to earn the performance threshold, target and maximum number of PSAs are set forth in the table below.
Performance CycleThresholdTargetMaximumOutstanding Awards(1)2023-2025 Performance Net Income ROE (50%)10.0 %16.0 %18.0 %Relative TSR (30%)<25th55th90thTransformative Growth (10%)(2)NDNDNDInclusive Diversity and Equity (10%)(2)NDNDND2024-2026 Performance Net Income ROE (50%)9.0 %16.0 %20.0 %Relative TSR (40%)<25th55th90thInclusive Diversity and Equity (10%)(2)NDNDNDPayout Percentages0 %100 %200 %
(1)The measures set forth in this table are further described on pages 84-86.
(2)Amounts are not disclosed (ND) because they are established based on the three-year strategic plan, which is proprietary.
•Performance Net Income ROE was below target primarily reflecting the negative impact on 2022 and 2023 earnings from higher auto repairs and replacement costs.
Net Income ROE was 25.8% in 2024.

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