UnitedHealth Announces Executive Pay

Well, this isn’t a surprise:

Health insurer UnitedHealth Group said Monday that it reduced pay packages and perks for its most senior executive and further reduced board compensation putting into effect a number of measures started in 2002.
The company said it halted equity-based awards for such executives as William W. McGuire, chairman and chief executive, and Stephen J. Hemsley, president and chief operating officer.
McGuire recently defended his billion-dollar stock option compensation against critics who pointed to the rising cost of health care.
The plan also calls for dispensing with severance for the most senior executives in change-in-control transactions, and capping supplemental retirement plan benefits.
Also, the board will take an immediate 40 percent cut in compensation, following a 20 percent cut in 2005.

Nothing causes action like a falling share price.

Posted by on May 1st, 2006 at 6:15 pm


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