THG 2019 Proxy Statement

THE HANOVER INSURANCE GROUP 2019 PROXY STATEMENT 39 Summary Compensation Table Note Regarding Currency – Unless otherwise indicated, any amounts set forth in the tables below, or otherwise disclosed herein, that are paid or accrued in U.K. Pounds Sterling (“GBP”), have been converted into U.S. Dollars (“USD”) using the average exchange rate in effect for the period disclosed (1.34 USD/GBP for 2018; 1.29 USD/GBP for 2017; and 1.35 USD/GBP for 2016). The following table sets forth the total compensation for our NEOs for 2018, 2017 and 2016. Name and Principal Position Year Salary ($) Bonus ($) Stock Awards ($) (1)(2) Option Awards ($) (1) Non-Equity Incentive Plan Compensation ($) Change in Pension Value and Nonquali- fied Deferred Compensation Earnings ($) All Other Compen- sation ($) (3) Total ($) John C. Roche 2018 899,038 — 1,100,430 1,099,972 990,000 — 78,831 4,168,271 President and CEO 2017 560,962 — 583,878 337,603 465,000 — 63,900 2,011,343 2016 470,385 — 329,453 222,054 161,000 — 67,304 1,250,196 Jeffrey M. Farber 2018 650,000 — 725,061 725,048 750,000 — 103,154 2,953,263 EVP and CFO 2017 650,000 — 594,325 675,009 617,500 — 80,554 2,617,388 2016 150,000 — 406,156 450,163 — — 64,782 1,071,101 J. Kendall Huber 2018 568,269 — 400,434 400,211 588,750 2,741 73,894 2,034,299 EVP and General Counsel 2017 539,231 — 330,270 375,049 400,000 4,359 60,574 1,709,483 2016 498,077 — 327,000 220,072 195,000 5,742 68,585 1,314,476 Richard W. Lavey 2018 515,000 — 313,011 312,680 386,250 — 59,528 1,586,469 EVP and President, Hanover Agency Markets 2017 452,019 — 231,149 262,515 328,500 — 48,436 1,322,619 Bryan J. Salvatore 2018 510,000 — 250,042 250,193 382,500 — 60,266 1,453,001 EVP and President, Specialty 2017 274,615 357,000 745,427 450,098 — — 4,119 1,831,259 Former Officer (4) John Fowle 2018 532,650 268,000(5) 566,682(6)(7) — 718,856(8) — 2,281,726 4,367,914 President and CEO, Chaucer (1) Amounts in these columns reflect the grant date fair value of the award calculated in accordance with FASB ASC Topic No. 718, disregarding the effect of estimated forfeitures. Assumptions used in the calculation of these amounts are set forth in Note 11 to the Company’s audited financial statements for the fiscal year ended December 31, 2018 included in the Company’s Annual Report. The amounts set forth may be more or less than the value ultimately realized by the NEO based upon, among other things, the value of our Common Stock at the time of vesting and/or exercise of the stock awards, whether the Company achieves the performance goals associated with certain stock awards and whether such awards actually vest. (2) Amounts in this column include the grant date fair value of awards of restricted stock units (TBRSUs and PBRSUs) granted during the applicable year, disregarding the effect of estimated forfeitures. PBRSUs are reported at target. Set forth in the table below is the grant date fair value for the PBRSUs at target and assuming the threshold and the maximum payment levels are achieved. No shares will be earned pursuant to the PBRSUs if the Company does not achieve specified levels of performance or if the award is forfeited prior to vesting.