Lifeplan Financial Management Inc., one of the largest life insurance companies in the U.S., will no long be paid by its life insurance customers, after the company’s financial system manager quit in protest over the company not having paid him since his resignation.
The life insurance giant has been paid a $2.5 million annual salary by its financial system management since January, according to the latest federal filings, which were filed Thursday by the Federal Reserve Bank of New York.
“As the Chief Financial Officer of Lifeplan, I have been extremely disappointed with the company over the last several months, especially as the company has not paid my salary,” Jeff Lauer, the life insurance chief executive officer, wrote in a letter to the company dated April 21.
“As a result, I am resigning from my position as a financial analyst, effective immediately.”
Lauer has worked for the company for seven years, and the company paid him $1,869,200 in total compensation in the past fiscal year, according the federal filings.
The company’s earnings before interest, taxes, depreciation and amortization for the year ended June 30 totaled $1 billion.
The move by Lauer comes after a series of controversial events during the company, including an employee uprising and the resignation of its CEO in January.
Lifeplan, which is the largest insurance company in the United States, had been paying its financial systems manager, Richard Tipton, a $10,000 annual salary as part of a severance package.
Lauer had said that he expected to be paid a full salary of $8.5 to $9 million in the next fiscal year.
In a letter dated March 28 to Lifeplan’s board of directors, Lauer said he would be moving from his current role as the financial system chief to that of a chief financial officer and that he would not be making any new salary payments, but that he intended to remain a member of the company.
Lauer said that, while he appreciated the support from the Lifeplan board and other employees, he felt the decision to resign from his position as chief financial manager was the correct one.
At the time of his resignation, Lander had earned a salary of about $10 million a year.
The retirement package was not contingent upon his resignation from the company or the company having to pay him a salary.
Although the federal government has said that Lifeplan was obligated to pay its financial managers severance, Lauters salary was not considered a severability obligation under federal law.
Despite the salary, the government’s Financial Institutions Oversight Board said in a March 29 letter that LifePlan’s financial management team was “inadequately supervised and inadequately supervised for the protection of the Company’s investment portfolios and the financial stability of the U:C.’s life insurance market.”
The financial institutions oversight board added that the company did not have adequate supervision of its life insurer portfolio, including Lifeplan.
When asked about Lauer’s resignation on Thursday, Lifeplan spokeswoman Lauren Linder said that she could not comment on individual cases.
“We do not discuss individual cases,” Linder wrote in an email.
Lauer told The Associated Press on Thursday that the move to pay the financial systems analyst was not related to the protests over the life insurer’s failure to pay people who had resigned in recent months.
“I just felt like I was being punished for doing my job,” Lauer told the AP.