WASHINGTON, May 13 /PRNewswire-USNewswire/ -- Atlantic Information
Services, Inc. (AIS) -- CEOs from several publicly traded health plans saw
substantially smaller cash incentives in 2007 as compensation committees
placed greater emphasis on performance-based awards, according to AIS's
Health Plan Week (HPW). The May 12 HPW issue offers detailed information
from more than a dozen health plans, and includes tables showing the
top-paid executives.
UnitedHealth Group President and CEO Stephen Hemsley saw his annual
base pay increase to $1.3 million in 2007 from about $1 million the
previous year, according to HPW's analysis of the company's proxy
statements. However, his stock-option awards dropped from $11.3 million in
2006 to $8.1 million in 2007, and his total compensation fell from $15.5
million to $13.2 million.
The newsletter also reports that CIGNA Corp. Chairman and CEO H. Edward
Hanway was the top-paid health plan executive in 2007 with total
compensation of nearly $26 million. While his stock awards fell from nearly
$2 million in 2006 to $453,000 last year and his option awards decreased
from about $6.0 million to $4.6 million, his bonus, which includes
non-equity incentive plan compensation, soared from $11.2 million in 2006
to nearly $18 million. According to CIGNA's proxy statement, Hanway's total
2007 compensation was $25.8 million -- up from $21.0 million a year
earlier.
Other top-earning health plan leaders, according to HPW, include Aetna
Inc. CEO Ron Williams, who received cash incentives of $1.9 million in
2007, down substantially from the $7.7 million he received in 2006.
Williams, however, received $12.8 million in stock-option awards in 2007,
which was more than double what he received in 2006. Overall, his total
compensation in 2007 was $23.0 million -- up from the $19.8 million
reported for a year earlier.
Executive compensation figures for these health plan executives and
others are available at
http://www.aishealth.com/ManagedCare/CompanyIntel.html. All compensation
figures are based on data reported in the company proxy statements and 10-K
forms filed with the U.S. Securities and Exchange Commission.
Health Plan Week, formerly called Managed Care Week, is a subscription
newsletter, published by Atlantic Information Services, Inc. (AIS), and is
in its 18th year as the market leader in independent business news coverage
and analysis of the health insurance industry. For more information, visit
http://www.aishealth.com/Products/NewsMCW.html.
Contact Managing Editor Steve Davis at (202) 775-9008 ext. 3047, or at
sdavis@aispub.com
SOURCE Atlantic Information Services, Inc.
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Related links:
http://www.AISHealth.com
CONTACT:
Steve Davis, Managing Editor, Atlantic
Information Services, Inc., +1-202-775-9008 ext. 3047,
sdavis@aispub.com.
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