UnitedHealth Group is asking a former CEO again to guide the corporate, and sweetening the deal by including a hefty $60 million fairness award to a $1 million base wage.
UnitedHealth Group announced 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 experiences. Compared, Witty acquired the next base wage of $1.5 million in 2024 however a decrease complete compensation of $26 million for the 12 months, 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 growth into areas like pharmacy advantages.
Associated: UnitedHealthcare Offers Employees Voluntary Buyouts to Meet ‘Evolving Needs’
In accordance with a U.S. Securities and Trade Fee filing, Hemsley was paid virtually $18 million in wage, bonus, and awards in his final full 12 months as CEO in 2016.
In his new time period as CEO, Hemsley can even proceed to function chairman of UnitedHealth Group’s board of administrators, and Witty will turn out 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 Times. 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 by way of Getty Pictures
Hemsley stated in a press release that Witty, who has served as CEO since 2021, has led the corporate via “a few of the most difficult occasions any firm has ever confronted.” One occasion particularly was the homicide of Brian Thompson, the CEO of the corporate’s medical insurance enterprise, UnitedHealthcare. Thompson was fatally shot in December in Midtown Manhattan, resulting in concerns about CEO security and inflicting the removal of leadership pages from many firm web sites. His loss of life put the rising costs of the U.S. healthcare system within the highlight.
Associated: UnitedHealth’s Data Breach Affected 100 Million Americans. Here’s What the Cyberattack Exposed.
UnitedHealth Group additionally confronted a cyber assault in February 2024 that impacted the private information of about 100 million Americans, and an antitrust investigation this February by the U.S. Division of Justice.
The corporate has greater than 440,000 total employees 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 guide the corporate, and sweetening the deal by including a hefty $60 million fairness award to a $1 million base wage.
UnitedHealth Group announced 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 experiences. Compared, Witty acquired the next base wage of $1.5 million in 2024 however a decrease complete compensation of $26 million for the 12 months, together with inventory and choices awards.
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