Horace Mann is committed to following corporate governance best practices to ensure a financially strong company that operates ethically and with integrity.

We follow corporate governance best practices:

  • Independent board majority; Horace Mann CEO only non-independent director
  • Separate CEO and Chairman
  • A range of director expertise, including leadership, insurance operations, agency management, finance, education, marketing and technology
  • Stock ownership requirement for directors and top executives
  • Limited executive benefits and perquisites
  • Clawback provision for both cash and equity awards
  • No company stock hedging or pledging
  • No excise tax gross-ups from a change in control

Board Qualifications

The Nominating & Governance Committee believes that it is important that the Board be comprised of individuals with a variety of experience and perspectives, including expertise in fields relevant to the Company’s business, experience from different professions, and a range of tenures.

The current Board of Directors represent a variety of perspectives, as well as an appropriate level of age and tenure, as further illustrated below.

Gender Tenure ethnicity

Executive Compensation

Guiding Principles

Our Compensation Committee has established a set of core principles that underlie our executive compensation program. These core principles provide guidance to the Committee and management in making decisions while administering the program or when considering changes. These core principles include strong alignment between pay and performance, incentive to drive shareholder value and market competitiveness.

Strong pay for performance alignment

We target compensation around the median of the competitive market, with executives earning more or less than median, based on their experience, the performance of the Company and value delivered to Shareholders and their individual performance. Our core executive compensation program includes base salary, an annual cash incentive plan (AIP), and long-term equity awards (LTIP). Both AIP and LTIP are administered under the Shareholder-approved 2010 Comprehensive Executive Compensation Plan, as amended and restated, March 9, 2021. Incentive awards are earned upon the achievement of short-term and long-term business goals that are reviewed and approved by the Committee at the beginning of each performance period. Performance goals are structured to reward business growth, profitability, and relative TSR, balanced with productivity, risk and capital management.

Corporate Social Responsibility Oversight

The Horace Mann Board of Directors oversees the Company’s Corporate Social Responsibility strategy and priorities, with various committees responsible for different aspects of the program:

  • Nominating & Governance Committee provides general oversight, as well as direction on governance, environmental risks and goals, and social risks and goals.
  • Investment & Finance Committee oversees responsible investing strategy.
  • Compensation Committee provides oversight and direction on human capital management strategy.
  • Audit Committee oversees the Enterprise Risk Management function, including cybersecurity, as well as ethics issues and policies, such as the Code of Conduct.

Through its committees, Horace Mann’s Board of Directors evaluates and oversees the Company’s overall Corporate Social Responsibility reporting as well as development of vital policies and programs needed to achieve short and long-term objectives. These policies and programs include, but are not limited to, the Company’s:

  • Emphasis on human capital development, including inclusion initiatives and executive officer leadership development and succession, which encompasses the identification of high-potential employees and candidates to strengthen the talent pipeline;
  • Statements of broad corporate policy related to human rights, employee health and safety, environment and climate change, and ESG Investment Policy;
  • Independent audits of information security policies and systems (a minimum of biennially) supported by implementation of data protection standards and employee trainings on cybersecurity risks and procedures; and
  • Reporting our Corporate Social Responsibility progress in-line with Task Force on Climate-related Financial Disclosures (TCFD), Global Reporting Initiative (GRI), Sustainable Accounting Standards Board (SASB) and CDP Climate Change Questionnaire models.

Horace Mann’s General Counsel is the strategic lead for our Corporate Social Responsibility program and briefs the Board quarterly on the Company’s initiatives and progress. Additionally, management at least annually prepares and presents an update to responsible Committees on its corporate social responsibility policies and programs, including a discussion of targets, risks and objectives.