United Services Automobile Association (USAA) is a Fortune 500[2] financial services company offering banking, investing, and insurance to people and families that serve, or served, in the United States military. In 2010, there were 8.0 million members.[1]
USAA was founded in 1922 by a group of U.S. Army officers to self-insure each other when they were unable to secure auto insurance due to the perception that they were a high-risk group.[3] USAA has since expanded to serve all members of the Armed Forces and all who served honorably in the US Armed Forces, as well as their families with property & casualty insurance, banking, life insurance, investment and financial planning products and services.
The company was one of the pioneers of direct marketing and most of its business is conducted over the Internet or telephone using employees instead of agents. Until the 1960s the bulk of its business was conducted via mail. In the late 1960s USAA began a transition from mail to phone based sales and service. A toll-free number was launched in 1978, and Internet sales and service was launched in 1999 via its website.
UUnless you are part of the armed services, you might never have heard of insurance company USAA, based in San Antonio. Its customers are military personnel and their families. The company ranks 189th on the Fortune 500 list, with revenues of just under $12 billion, and its automated call-distribution system, the largest in the world, handles more than 16 million transactions a day.
It would be a mistake to believe that because USAA is so huge, it doesn't offer its employees and customers that personal touch. Not only does USAA treat its employees right, but its employees treat its customers right, which is reflected in an astounding customer retention rate of 97 percent and extremely high employee retention.
The company's outstanding benefits were designed with families in mind. The majority of USAA's full-time employees work a four-day, 38-hour workweek. At its Sacramento offices, USAA has built a 14,000-square-foot child-care facility with room for 126 children — one of five child-care centers it has established.
The company also puts employee fitness high on its list of priorities. At its Hampton Roads, Va., offices, a fitness center offers a full range of aerobic workout equipment and weight benches, saunas, steam rooms, and stocked locker rooms. Outside is a jogging trail that crosses a short bridge to the company recreation island, complete with a covered picnic area and volleyball, basketball, and tennis courts.
Another company priority is employee training and development. New hires receive an extensive orientation and 10 weeks of company training. USAA has an in-house training staff of more than 200 employees. At its San Antonio headquarters, 60 different classes are offered on-site by six different area colleges.
This is just a glimpse at a truly exceptional company. An overarching culture of concern for its employees is illustrated not only in its value statement but in the benefits and incentives offered. As employee David Hooker, described it, “I can't think of anywhere else I'd rather go; I can't think of another company I'd enjoy nearly as much as I enjoy it here.
Founded in 1922 by a group of officers in the U.S. Army, the United Services Automobile Association provided auto coverage for the members of the group who were considered high risk by most agencies. Over time, the group expanded to cover other military members, as well as select federal employees, such as Foreign Service and federal investigative agencies and their families. The coverage has expanded similarly, now including many types of health and property coverage.
The company underwent even further expansion in the year 2000 when Hartford Financial Services offered them with a limited partnership. The company then began to offer coverage for small business owners of military families. Personal vehicle coverage has remained the primary business of the United Services Automobile Association, accounting for more than 95% of policies written in recent years.
A majority of USAA’s mail is via U.S. Mail solicitation. More than 80% of USAA’s customers are located in only four states namely: California, Florida, Texas, and Virginia. In spite of their focus on high risk clients, the United Services Automobile Association has established its name successfully and has largely maintained customer acquisition through direct contact methods.
USAA boasts of a high-retention rate of customers through low costs and targeted markets and has maintained a superior financial responsibility rating. Absolutely anyone who has served in the U.S. military, even Coast Guard, Reserve troops, families of military personnel and anyone who has held a USAA policy, is eligible for USAA insurance.
In addition to auto insurance, the company today is offering financial services including banking services where they claim to pay some of the highest rates available for various types of savings accounts. Military employees and their families can apply for loans, retirement annuities, and other traditional banking services.
SCOPE AND PURPOSE:
The Compensation and Workforce Committee (the "Committee") will ensure that policies and practices related to areas under its purview support the strategic plan, are in compliance with state and federal law, and are administered equitably and ethically. The Committee will also maintain oversight of compensation, executive development, employee benefits and the governance of USAA subsidiaries.
FUNCTIONS:
On at least an annual basis, the duties and responsibilities of the Committee will include, but are not limited to, the following:
Compensation:
Recommend to the Governance Committee, the compensation, benefits and perquisites of the Chairman, CEO, Board members and Board officers.
Review Executive Council compensation, benefits and perquisites.
Recommend to the Board, the metrics and methodology for annual corporate performance evaluation.
Review the general salary plan for the ensuing fiscal year.
Oversee benefit plans including the delegation and allocation of authority, financial status, and recommendation of major plan changes to the Board.
Staffing:
Review equal employment opportunity policies and practices.
Approve officer nominations by the CEO for the positions of vice president and above of USAA, or ratify such nominations that have been approved by the Committee chair.
Review succession plans for CEO and senior management.
Review other personnel practices and programs that have substantial effect on the well-being of employees, or, on the reputation or financial strength of USAA.
Development Programs:
Review Board Development Program.
Review Executive Development Programs for Management.
Ethics:
Annually approve the USAA Policy on Business Ethics and Conflict of Interest for employees.
Governance of Subsidiaries:
Ensure the governance structures and supporting practices are in place to support the effective operations of USAA businesses.
USAA was founded in 1922 by a group of U.S. Army officers to self-insure each other when they were unable to secure auto insurance due to the perception that they were a high-risk group.[3] USAA has since expanded to serve all members of the Armed Forces and all who served honorably in the US Armed Forces, as well as their families with property & casualty insurance, banking, life insurance, investment and financial planning products and services.
The company was one of the pioneers of direct marketing and most of its business is conducted over the Internet or telephone using employees instead of agents. Until the 1960s the bulk of its business was conducted via mail. In the late 1960s USAA began a transition from mail to phone based sales and service. A toll-free number was launched in 1978, and Internet sales and service was launched in 1999 via its website.
UUnless you are part of the armed services, you might never have heard of insurance company USAA, based in San Antonio. Its customers are military personnel and their families. The company ranks 189th on the Fortune 500 list, with revenues of just under $12 billion, and its automated call-distribution system, the largest in the world, handles more than 16 million transactions a day.
It would be a mistake to believe that because USAA is so huge, it doesn't offer its employees and customers that personal touch. Not only does USAA treat its employees right, but its employees treat its customers right, which is reflected in an astounding customer retention rate of 97 percent and extremely high employee retention.
The company's outstanding benefits were designed with families in mind. The majority of USAA's full-time employees work a four-day, 38-hour workweek. At its Sacramento offices, USAA has built a 14,000-square-foot child-care facility with room for 126 children — one of five child-care centers it has established.
The company also puts employee fitness high on its list of priorities. At its Hampton Roads, Va., offices, a fitness center offers a full range of aerobic workout equipment and weight benches, saunas, steam rooms, and stocked locker rooms. Outside is a jogging trail that crosses a short bridge to the company recreation island, complete with a covered picnic area and volleyball, basketball, and tennis courts.
Another company priority is employee training and development. New hires receive an extensive orientation and 10 weeks of company training. USAA has an in-house training staff of more than 200 employees. At its San Antonio headquarters, 60 different classes are offered on-site by six different area colleges.
This is just a glimpse at a truly exceptional company. An overarching culture of concern for its employees is illustrated not only in its value statement but in the benefits and incentives offered. As employee David Hooker, described it, “I can't think of anywhere else I'd rather go; I can't think of another company I'd enjoy nearly as much as I enjoy it here.
Founded in 1922 by a group of officers in the U.S. Army, the United Services Automobile Association provided auto coverage for the members of the group who were considered high risk by most agencies. Over time, the group expanded to cover other military members, as well as select federal employees, such as Foreign Service and federal investigative agencies and their families. The coverage has expanded similarly, now including many types of health and property coverage.
The company underwent even further expansion in the year 2000 when Hartford Financial Services offered them with a limited partnership. The company then began to offer coverage for small business owners of military families. Personal vehicle coverage has remained the primary business of the United Services Automobile Association, accounting for more than 95% of policies written in recent years.
A majority of USAA’s mail is via U.S. Mail solicitation. More than 80% of USAA’s customers are located in only four states namely: California, Florida, Texas, and Virginia. In spite of their focus on high risk clients, the United Services Automobile Association has established its name successfully and has largely maintained customer acquisition through direct contact methods.
USAA boasts of a high-retention rate of customers through low costs and targeted markets and has maintained a superior financial responsibility rating. Absolutely anyone who has served in the U.S. military, even Coast Guard, Reserve troops, families of military personnel and anyone who has held a USAA policy, is eligible for USAA insurance.
In addition to auto insurance, the company today is offering financial services including banking services where they claim to pay some of the highest rates available for various types of savings accounts. Military employees and their families can apply for loans, retirement annuities, and other traditional banking services.
SCOPE AND PURPOSE:
The Compensation and Workforce Committee (the "Committee") will ensure that policies and practices related to areas under its purview support the strategic plan, are in compliance with state and federal law, and are administered equitably and ethically. The Committee will also maintain oversight of compensation, executive development, employee benefits and the governance of USAA subsidiaries.
FUNCTIONS:
On at least an annual basis, the duties and responsibilities of the Committee will include, but are not limited to, the following:
Compensation:
Recommend to the Governance Committee, the compensation, benefits and perquisites of the Chairman, CEO, Board members and Board officers.
Review Executive Council compensation, benefits and perquisites.
Recommend to the Board, the metrics and methodology for annual corporate performance evaluation.
Review the general salary plan for the ensuing fiscal year.
Oversee benefit plans including the delegation and allocation of authority, financial status, and recommendation of major plan changes to the Board.
Staffing:
Review equal employment opportunity policies and practices.
Approve officer nominations by the CEO for the positions of vice president and above of USAA, or ratify such nominations that have been approved by the Committee chair.
Review succession plans for CEO and senior management.
Review other personnel practices and programs that have substantial effect on the well-being of employees, or, on the reputation or financial strength of USAA.
Development Programs:
Review Board Development Program.
Review Executive Development Programs for Management.
Ethics:
Annually approve the USAA Policy on Business Ethics and Conflict of Interest for employees.
Governance of Subsidiaries:
Ensure the governance structures and supporting practices are in place to support the effective operations of USAA businesses.
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