SELECTIVE INSURANCE GROUP INC (SIGI)
Sector: Financials
2026 Annual Meeting Analysis
SELECTIVE INSURANCE GROUP INC · Meeting: April 29, 2026
Directors FOR
2
Directors AGAINST
10
Say on Pay
FOR
Auditor
FOR
Director Elections
Election of Directors
Against Analysis
Mr. Aijala has served since 2020, meaning his tenure fully overlaps with SIGI's severe 3-year stock underperformance of -65.4 percentage points versus the company's own peer group median (threshold: 20pp for negative absolute TSR), and the 5-year record also fails the policy test with a -33.1pp gap versus peers, so no mitigant applies.
Ms. Bacus has served since 2020, fully overlapping with SIGI's severe 3-year underperformance of -65.4pp versus the company's disclosed peer group (threshold: 20pp), and the 5-year gap of -33.1pp against peers also exceeds the applicable 35pp threshold, so no mitigant applies.
Mr. Cavanaugh has served since 2018, fully overlapping with SIGI's 3-year stock underperformance of -65.4pp versus the company-disclosed peer group (threshold: 20pp for negative absolute TSR), and the 5-year record also fails the mitigant test with a -33.1pp gap, so a vote against is warranted.
Mr. Doherty has served since 2015 as Lead Independent Director, fully overlapping with SIGI's 3-year underperformance of -65.4pp versus peers (threshold: 20pp), and the 5-year comparison also fails the mitigant check with a -33.1pp gap exceeding the 35pp threshold.
As Chairman and CEO, Mr. Marchioni has served as a director since 2019 and bears direct responsibility for the period of underperformance; SIGI's 3-year TSR trails its own peer group by -65.4pp (threshold: 20pp for negative absolute TSR), and the 5-year record also fails the mitigant test, making an against vote appropriate independent of the Say on Pay determination.
Mr. McCarthy has served since 2018, fully overlapping with SIGI's 3-year stock underperformance of -65.4pp versus the company's disclosed peer group (threshold: 20pp), and the 5-year gap of -33.1pp against peers also exceeds the applicable 35pp threshold, so no mitigant applies.
Mr. Mills has served since 2020, fully overlapping with SIGI's 3-year underperformance of -65.4pp versus the company's own peer group (threshold: 20pp for negative absolute TSR), and the 5-year comparison also fails the mitigant test, warranting an against vote.
Ms. Mitchell has served since 2018, fully overlapping with SIGI's 3-year stock underperformance of -65.4pp versus the company-disclosed peer group (threshold: 20pp), and the 5-year record also fails the mitigant check, so a vote against is warranted.
Ms. Nicholson has served since 2009, fully overlapping with SIGI's 3-year stock underperformance of -65.4pp versus the company's own peer group (threshold: 20pp), and the 5-year gap of -33.1pp also exceeds the applicable 35pp threshold, so no mitigant applies.
Mr. Scheid has served since 2014, fully overlapping with SIGI's 3-year stock underperformance of -65.4pp versus the company's disclosed peer group (threshold: 20pp for negative absolute TSR), and the 5-year gap of -33.1pp against peers also exceeds the applicable 35pp threshold, so no mitigant applies.
For Analysis
Ms. Parsons was appointed to the Board effective November 3, 2025, meaning she has served for less than 24 months and is therefore exempt from the TSR underperformance trigger under policy; she brings over 30 years of relevant property and casualty insurance industry experience.
Ms. Sampson joined the Board in 2024, meaning she has served for less than 24 months and is therefore exempt from the TSR underperformance trigger under policy; she brings relevant insurance technology and risk management expertise.
SIGI's stock has lost -14.2% over 3 years while its own compensation peer group gained a median of +51.2%, a gap of -65.4 percentage points that far exceeds the 20pp threshold for companies with negative absolute 3-year TSR. The 5-year record also fails the mitigant test: SIGI's +12.3% 5-year return trails peer median by -33.1pp, exceeding the 35pp threshold applicable to the low-positive absolute TSR tier. All ten directors whose tenure meaningfully overlaps the underperformance period receive AGAINST votes; two recently appointed directors (Parsons, joined November 2025; Sampson, joined 2024) are within the 24-month new-director exemption and receive FOR votes.
Say on Pay
✓ FORCEO
John J. Marchioni
Total Comp
$6,858,564
Prior Support
97%%
The CEO's total compensation of approximately $6.86 million is benchmarked against a mid-large cap property and casualty insurance company peer set, and the company's own disclosure shows total NEO compensation was 20.3% below the combined benchmark median, well within the policy's acceptable range. Pay mix is strongly weighted toward variable compensation — the CEO's fixed salary represents only 16% of total pay and 84% is variable and performance-linked, well above the minimum 50-60% variable threshold, with meaningful multi-year performance conditions on both the equity and cash long-term awards. The prior year Say on Pay vote received over 97% support, there are no red flags on pay structure, and the company maintains a formal clawback policy, so no policy trigger fires despite the stock's underperformance relative to peers.
Auditor Ratification
✓ FORAuditor
KPMG LLP
Tenure
N/A
Audit Fees
$2,385,000
Non-Audit Fees
$122,993
Non-audit fees (tax fees of $3,493 plus all other fees of $119,500, totaling approximately $122,993) represent about 5.2% of audit fees of $2,385,000, well below the 50% threshold that would raise independence concerns; KPMG is a Big 4 firm appropriate for a $4.6 billion market cap insurer; no material restatements were identified; and while auditor tenure is not disclosed in the filing, policy requires confirmed data to trigger a no vote on tenure grounds.
Overall Assessment
The 2026 Selective Insurance Group annual meeting presents three standard proposals; the auditor ratification and Say on Pay proposals pass policy screens and receive FOR votes, but ten of twelve director nominees receive AGAINST votes due to SIGI's severe 3-year stock underperformance of -65.4 percentage points versus its own disclosed peer group, a gap that also fails the 5-year mitigant test, with only the two most recently appointed directors (Parsons and Sampson) qualifying for the 24-month new-director exemption. There are no stockholder proposals on the 2026 ballot.
Compensation Peer Group
10 companies disclosed in 2026 proxy filing