UnitedHealth Group is asking a former CEO again to steer the corporate, and sweetening the deal by including a hefty $60 million fairness award to a $1 million base wage.
UnitedHealth Group introduced on Tuesday that its chief govt, 60-year-old Andrew Witty, can be stepping down instantly for “private causes” and that Stephen Hemsley, 72, the chairman of the corporate’s board of administrators, would succeed him as CEO.
To mark the transition, Hemsley will obtain a base wage of $1 million and a one-time $60 million fairness award consisting of inventory choices that vest after three years, Bloomberg stories. Compared, Witty obtained the next base wage of $1.5 million in 2024 however a decrease complete compensation of $26 million for the yr, together with inventory and choices awards.
The transfer marks Hemsley’s second time because the chief of UnitedHealth Group; he beforehand served as CEO from 2006 to 2017, main the corporate’s enlargement into areas like pharmacy advantages.
Associated: UnitedHealthcare Provides Staff Voluntary Buyouts to Meet ‘Evolving Wants’
In line with a U.S. Securities and Change Fee submittingHemsley was paid nearly $18 million in wage, bonus, and awards in his final full yr as CEO in 2016.
In his new time period as CEO, Hemsley will even proceed to function chairman of UnitedHealth Group’s board of administrators, and Witty will grow to be his senior adviser.
UnitedHealth Group’s inventory dropped by greater than 17% on Tuesday following the announcement of the CEO change, per The New York Instances. Over the previous month, the corporate’s inventory has misplaced over 45% of its worth.
Stephen Hemsley, CEO of UnitedHealth Group. Photographer: Jonathan Alcorn/Bloomberg through Getty Photos
Hemsley acknowledged in a press launch that Witty, who has served as CEO since 2021, has led the corporate by way of “among the most difficult occasions any firm has ever confronted.” One occasion specifically was the homicide of Brian Thompson, the CEO of the corporate’s medical health insurance enterprise, UnitedHealthcare. Thompson was fatally shot in December in Midtown Manhattan, resulting in considerations about CEO safety and inflicting the elimination of management pages from many firm web sites. His demise put the rising prices of the U.S. healthcare system within the highlight.
Associated: UnitedHealth’s Knowledge Breach Affected 100 Million Individuals. This is What the Cyberattack Uncovered.
UnitedHealth Group additionally confronted a cyber assault in February 2024 that impacted the private information of about 100 million Individualsand an antitrust investigation this February by the U.S. Division of Justice.
The corporate has greater than 440,000 complete workers per a December 31, 2023, submitting. It is the most important healthcare firm within the U.S. primarily based on income, bringing in over $400 billion in 2024.
UnitedHealth Group’s market cap was $286 billion on the time of writing, down from $566 billion in November.
UnitedHealth Group is asking a former CEO again to steer the corporate, and sweetening the deal by including a hefty $60 million fairness award to a $1 million base wage.
UnitedHealth Group introduced on Tuesday that its chief govt, 60-year-old Andrew Witty, can be stepping down instantly for “private causes” and that Stephen Hemsley, 72, the chairman of the corporate’s board of administrators, would succeed him as CEO.
To mark the transition, Hemsley will obtain a base wage of $1 million and a one-time $60 million fairness award consisting of inventory choices that vest after three years, Bloomberg stories. Compared, Witty obtained the next base wage of $1.5 million in 2024 however a decrease complete compensation of $26 million for the yr, together with inventory and choices awards.
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