-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Pgv1XR1h5m1PL/9zNdl/l6VGWh0SxWAnIplyAoW1o3LRxLXU6C0l87nTFDBMvWuD XcoLAVLqm1ltf+VgjvUaRQ== 0000899140-10-000586.txt : 20110103 0000899140-10-000586.hdr.sgml : 20101231 20100729165625 ACCESSION NUMBER: 0000899140-10-000586 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20100729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BERKLEY W R CORP CENTRAL INDEX KEY: 0000011544 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 221867895 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: 475 STEAMBOAT ROAD STREET 2: . CITY: GREENWICH STATE: CT ZIP: 06830 BUSINESS PHONE: 2036293000 MAIL ADDRESS: STREET 1: 475 STEAMBOAT ROAD STREET 2: . CITY: GREENWICH STATE: CT ZIP: 06830 CORRESP 1 filename1.htm b5765954.htm



VIA EDGAR

July 29, 2010

Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C.  20549
Attn:
Jeffrey Riedler, Assistant Director
 
Division of Corporation Finance

Re:
W. R. Berkley Corporation
Form 10-K filed February 26, 2010
DEF 14A filed April 8, 2010
File No. 1-15202
 
Dear Mr. Riedler:

On behalf of W. R. Berkley Corporation (“Berkley” or the “Company”), set forth below are Berkley’s responses to the comments of the staff (the “Staff”) of the Securities and Exchange Commission contained in the letter dated July 20, 2010 from you to Eugene G. Ballard, Berkley’s Senior Vice President -- Chief Financial Officer, relating to Berkley’s proxy statement on Schedule 14A filed April 8, 2010 (the “2010 Proxy Statement”).  For your convenience, we have set forth below the Staff's comments in italics, f ollowed by Berkley's responses thereto.
 
Definitive Proxy Statement

Executive Compensation Decisions During the Last Fiscal Year, Page 30

1.
We note incentive bonuses for your NEO’s “other than the CEO and COO are based on a reasoned subjective assessment of individual performance and future potential.”  However, the Compensation Discussion and Analysis does not disclose the assessment or factors considered when determining the NEO’s bonus payments.  Please confirm that the 2011 proxy statement will include a discussion of the factors the Compensation Committee considered when determining each NEO’s bonus and how the factors were used to determine the amount of the bonus.  In the future, if individual and/or corporate goals and performance objectives are used to determine bonuses, these goals and objectives should be described and quantified to the extent practicable.  How the level of achievement was used to determine the bonuses should also be discussed.

As you note, on page 30 of our 2010 Proxy Statement under “General Approach,” we state that “pay decisions for NEOs, other than the CEO and COO, are based on a reasoned subjective assessment of individual performance and future potential.”  However, the elements of their pay are then discussed in the following subsections.  With respect to their annual bonuses, the 2010 Proxy Statement goes on to state on pages 30-31 the following:1
 
 
 

Mr. Jeffrey Riedler
Securities and Exchange Commission
July 29, 2010
Page 2
 
 
Annual Incentive Bonus.   For Messrs. Ballard, Lederman, and Shiel, the CEO determined, and reviewed with the Committee, the 2009 bonus amounts, as shown in the Summary Compensation Table, based on a reasoned subjective assessment of Company performance (primarily ROE) and individual performance. For Mr. Ballard, the CEO reviewed his management of the financial accounting department as well as management of strategic accounting and treasury issues related to the Company’s business. For Mr. Lederman, the CEO reviewed his management of the legal department and management of the legal department’s responses to law and regulations as they relate to the Company’s business. For Mr.& #160;Shiel, the CEO reviewed his management of the investment department. In addition, for Mr. Shiel, consideration was given to performance of the Company’s investment portfolio. See the discussion on CEO bonus for a more detailed analysis of Company performance. The 2009 bonus award for each of Mr. Ballard and Mr. Lederman was $325,000, which represented a 4.5% decline over the prior year. The reduction in bonus amount was due primarily to Company performance. The 2009 bonus award for Mr. Shiel was brought back in line with Messrs. Ballard and Lederman, or $325,000, after having been reduced by 50% in 2008.

We believe that this description complies with the requirement to describe the factors used in computing these NEOs’ bonus payments.  We note that during 2009 there were no specific individual and/or corporate goals and performance objectives used to determine these bonuses.
 
Discussion of Risk and Compensation Plans, Page 33

2.
We note that you have provided a discussion of the compensation policies and practices that are intended to ensure that executives are not encouraged to take excessive risks.  However, you have not disclosed whether your compensation policies and practices are reasonably likely to have a material adverse effect on you or your business.  To the extent that the compensation policies and practices are reasonably likely to have a material adverse effect, please address all the requirements of Item 402(s) of Regulation S-K.
 
 
 

Mr. Jeffrey Riedler
Securities and Exchange Commission
July 29, 2010
Page 3
 
 

Berkley does not believe that its compensation policies and practices are reasonably likely to have a material adverse effect on its business and accordingly did not include any such disclosure pursuant to Item 402(s) of Regulation S-K in its 2010 Proxy Statement.  We do not understand the requirement under Item 402(s) to require disclosure whether our compensation policies and practices are reasonably likely to have a material adverse effect on our business, but rather are only triggered if in fact they are reasonably likely to have such an effect.2
 

 
Should any member of the Staff have any questions, please do not hesitate to call me at (212) 728-8592.
 
Very truly yours,

/s/ Jeffrey S. Hochman

Jeffrey S. Hochman

cc:       John Krug (SEC)
Eugene G. Ballard (Berkley)
Ira S. Lederman (Berkley)





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