A Sample of Health Insurance CEO Compensation

Despite the trials and tribulations of the past year, there are several executives still raking in quite a few dollars at the end of the day. This is a look at some of the top total compensation packages from 2008 based on information gathered from the U.S. Security and Exchange Commission.

Aetna's Ron Williams - CEO Compensation
Total Compensation: $24,300,112

Details: Williams earned $24,300,112 in total compensation for 2008, with more than half of that ($13,537,365) coming from option awards. He also received an additional $6,456,630 in stock awards to go along with his base salary of $1,091,764.
Personal use of a corporate aircraft and vehicle, as well as financial planning and 401(k) company matches added up to $101,487 for Williams.
Source URL:
http://www.fiercehealthcare.com/story/aetnas-ron-williams-ceo-compensation/2009-05-14
Links:
<1> http://www.fiercehealthcare.com/story/aetna-stock-falls-q1-09-despite-strong-profits/2009-04-30
<2> http://www.fiercehealthcare.com/story/aetna-pay-5m-over-underpaid-out-network-charges/2009-02-03
<3> http://www.fiercehealthcare.com/story/aetna-will-pay-20-million-over-use-ingenix-data/2009-01-16
<4> http://www.fiercehealthit.com/story/aetna-enters-phr-market-with-medical-info-option/2008-03-17

CIGNA's H. Edward Hanway - CEO Compensation
Total Compensation: $12,236,740

Details: Hanway took a significant pay cut from 2007 to 2008, due mainly to a drop off of more than $11 million in his non-equity incentive plan compensation. Still, his base salary of $1,142,885 surpasses that of Aetna's Williams, and is supplemented by just over $3.6 million in option awards, and just over $820,000 in non-qualified deferred compensation earnings.
Also, nearly $21,800 in "other compensation" included the use of a company car with a driver, in-office meals, and emergency assistance services relating to medical exams.
Source URL:
http://www.fiercehealthcare.com/story/cignas-h-edward-hanway-ceo-compensation/2009-05-14
Links:
<1> http://www.fiercehealthcare.com/story/cigna-first-quarter-profits-drop-80-percent/2008-05-02
<2> http://www.fiercehealthfinance.com/story/cigna-aetna-deliver-improved-profits-q2/2008-08-05

UnitedHealth Group's Stephen Hemsley - CEO Compensation
Total Compensation: $3,241,042

Details: An $895 million class-action lawsuit over stock-option back dating <1> aside, Hemsley still manages to make the cut for this list at No. 10. The UHG CEO's base salary was $1.3 million in 2008, to go along with a non-equity incentive plan compensation worth just over $1.8 million and "other compensation" amounting to slightly more than $119,000.
Hemsley's other compensation was a combination of the company matching his contributions under the 401(k) plan and the company matching contributions under his executive savings plan. According to the SEC, "in May 2006, the amount of Hemsley's supplemental retirement benefit was frozen based on his current age and average base salary and converted into a lump sum of $10,703,229." Because of this, "there was no increase in the benefit payable to Mr. Hemsley under his supplemental retirement benefit" in 2008.
Source URL:
http://www.fiercehealthcare.com/story/unitedhealth-groups-stephen-hemsley-ceo-compensation/2009-05-14
Links:
<1> http://www.fiercehealthfinance.com/story/unitedhealth-settles-sec-charges-no-fines-involved/2008-12-24
<2> http://www.fiercehealthcare.com/story/unitedhealth-financial-troubles-mount/2006-11-09
<3> http://www.fiercehealthcare.com/story/united-healthcare-pay-12m-settle-complaints/2007-09-07?page=1
<4> http://www.fiercehealthfinance.com/story/unitedhealth-settles-sec-charges-no-fines-involved/2008-12-24

WellPoint's Angela Braly - CEO Compensation
Total Compensation: $9,844,212

Details: Braly, like Williams, earned more money in 2008 ($9,844,212) than in 2007 (9,094,271), increasing her option rewards by nearly $1.5 million, and also receiving a $200,000-plus bump in base salary, from $922,269 to $1,135,538. Braly's stock awards dropped from $2,160,159 to $1,750,015 because, according to the SEC, "performance-based restricted stock units awarded in 2008 were cancelled because our ROE target for 2008 was not met."
Braly's "other compensation" comprised use of a private jet for her and her family on business trips, just under $10,000 for legal services relating to her employment agreement and cash credits.
Source URL:
http://www.fiercehealthcare.com/story/wellpoints-angela-braly-ceo-compensation/2009-05-14
Links:
<1> http://www.fiercehealthfinance.com/story/health-plans-need-new-approaches-to-profitability/2008-05-14
<2> http://www.fiercehealthfinance.com/story/wellpoint-pushes-stock-prices-not-profits-raising-premiums/2008-09-10
<3> http://www.fiercehealthcare.com/story/wellpoint-loses-money-q2-still-pleases-investors/2008-07-25

Coventry Health Care's Dale Wolf - CEO Compensation
Total Compensation: $9,047,469

Details: Wolf is the only CEO on this list who is no longer employed with his associated health plan; he retired from his position on Jan. 30 <1> of this year after serving in that role since Jan. 1, 2005, and was replaced by former CEO Allen Wise.
Wolf, whose total compensation dipped quite a bit from 2007 ($14,869,823) to 2008 ($9,047,469), was pleased with the direction the company was headed in at the time of his departure.
"I am proud of what a talented group of people have accomplished over the past 13 years of my association with the company," Wolf said, "and I am confident that the fundamentals which are in place today will carry the company forward to continued success."
Wolf carried a base salary of $965,000 in 2008, and earned just over $1.9 million in stock awards. His "other compensation," which amounted to $486,447, included transportation on the company's airplane, a company match retirement savings plan and a company match 401(k) plan.
Source URL:
http://www.fiercehealthcare.com/story/coventry-health-cares-dale-wolf-ceo-compensation/2009-05-14
Links:
<1> http://www.fiercehealthcare.com/press-releases/dale-wolf-resigns-president-and-ceo-coventry-health-care
<2> http://www.fiercehealthfinance.com/story/if-health-plan-profits-keep-falling-selloffs-may-begin/2008-11-18

And bookmarking

Indefensible.

:mad:

only they're not waiting for us to die before they start to feed off our ailing bodies.

wage for the work they do? These folks are just as bad as the banksters. Nurses need to keep this article in mind when bargaining for benefits. Can you imagine nurses getting a couple thousand for bonuses at the end of a quarter? The fat cats would have a cow.

http://grassley.senate.gov/news/Article.cfm?customel_dataPageID_1502=4916

Yeah, they hold down costs.

look like small potatoes.

But it does explain why they fight so hard against even a public option.

Greedy monsters.

Thanks for adding to the conversation.

:grr:

k&r

it's a PROFIT making business, not a public service. 31% of our health care dollars go to administrative and profit taking. the privatized system is less efficient that the so called "socialist" systems of most of the other industrialized nations. These obscenely compensated CEO's are using their money, power to influence the debate against change. We know all the K street story. it HAS TO STOP. Single Payer is the only system that makes sense- with LESS dollars, we cover EVERYONE with BETTER quality health care, no families go bankrupt because of health care bills, business benefit because they are now free from the burden of health care subsidy that causes them to resist hiring workers. This is the power of an idea that needs to spread, that has lots of powerful interests against it- drug companies, insurance companies, HMOs. WE NEED TO MOBILIZE and Demand single payer. I know Obama is trying to find middle ground and as long as the ultimate goal is single payer, I'm in. The sooner the better for all of us- above posted company excluded...

I heard a great report from Robert Reich on NPR today that the debate is already being distorted by these power brokers and unless we mobilize, we are going to end up with no significant improvements.

Pass the word...