UnitedHealth Group CEO Stephen Hemsley is set to receive a substantial compensation package as he steps back into the role of leading the healthcare conglomerate during a challenging period. The 72-year-old executive will receive an annual base salary of $1 million, along with a one-time equity award of $60 million as part of his return to the top position.
Hemsley previously served as CEO of UnitedHealth for over a decade until 2017 before returning to take the reins once again. His reappointment comes amidst a series of setbacks for the company, including a cyber attack, federal investigations, escalating medical costs, and the tragic murder of a senior executive.
In addition to his salary and equity award, Hemsley will also be entitled to executive security benefits, as disclosed in a recent filing. This news comes following the sudden departure of former CEO Andrew Witty, which prompted UnitedHealth to suspend its annual forecast due to rising medical expenses, leading to an 18% drop in the company’s shares.
The details of Witty’s exit package have not been disclosed by the company in the filing. Hemsley, known for his role in developing UnitedHealth’s growth engine Optum, will continue to serve as the chair of the board and will no longer receive compensation as a director. He will also not be eligible for an annual cash incentive award.
The $60 million equity award granted to Hemsley consists of non-qualified stock options that will vest after three years, with no additional annual equity awards during the initial three years of his tenure. This move aims to align Hemsley’s interests with the long-term success of the company.
As UnitedHealth navigates through a turbulent period, Hemsley’s return brings a sense of stability and experience to the leadership team. His track record of driving growth and innovation at the company makes him a valuable asset in steering UnitedHealth through the challenges ahead.
This article was reported by Sriparna Roy in Bengaluru and edited by Devika Syamnath.
