Sick for Profit – Insurance CEOs

So do you know who actually pays the salary and stock options of these guys? It comes directly from your premiums. These are just the CEOs, now note there are many other private insurance companies with the same expense structure. Additionally there are CFOs, Presidents, Vice-Presidents, and other executives that command these types of undeserved salaries. Advertising, commissions, lobbying, and many other expenses are also coming out of your premiums.

UnitedHealth CEO Stephen J. Hemsley

2007 Compensation: $13.2 million

2008 Compensation (Forbes): $3,241,042

Former Managing Partner and CFO of Arthur Andersen (BusinessWeek)

Total Value of Unexercised Stock Options (Forbes): $744,232,068

2009 Options Exercise: $127,001,281

Value of Wayzata, Minnesota Home (Hennepin County Assessor): $6,640,000

Articles: Hemsley returns $190 million in stock options acquired as a result of practices found to be fraudulent by the SEC (American Medical News)

CIGNA CEO Edward Hanway

Five-Year Compensation, as of April 30, 2008 (Forbes): $120.51 million

Total Value of Unexercised Stock Options (Forbes): $28,881,000

Value of New Jersey Beach Home (Cape May County Assessor): $13,607,400

Articles: The family of a 17-year-old girl who died hours after CIGNA reversed a decision and said it would pay for a liver transplant plans to sue the company, their attorney said Friday.

Hundreds of entertainment industry workers in California and New Jersey who buy health insurance as a group are being hit with a rate increase that will raise some family-plan premiums to more than $44,000 a year.

Humana CEO Michael McCallister

2007 Compensation: $10.3 million

2008 Compensation (Forbes): $1,017,308

Five-Year Compensation Total (Forbes): $15.1 million

Total Value of Unexercised Stock Options (Forbes): $60,865,194

2006 Options Exercise (SECForm4): $22,294,710

Value of Park City, Utah Home (County Assessor): $6,978,380

Articles: Humana abandons senior citizens in Florida, returns after Republicans pass new Medicare law, upping HMO payments by ~ 25% (NY Times)

Aetna CEO Ronald A. Williams

2007 Compensation": $23 million

2008 Compensation (Forbes): $24,300,112

Total Value of Unexercised Options (Forbes): $194,496,797

Williams is in the top ten of Forbes’ "$100 Million CEO Club."

Articles: Health insurance giants Aetna and CIGNA, along with others, became the latest targets of a wide-ranging probe launched by New York Attorney General Eliot Spitzer, according to USA Today. (source)

Coventry CEO Allen Wise CEO from 1996-2004, and from January 2009-Present

2004 Compensation (Forbes): $13,052,799

2006 Sale of Stock: $14,458,251

2006 Options Exercised: $2,895,000

2005 Sale of Stock: $46,410,695

2005 Options Exercised: $6,709,564

2004 Sale of Stock: $12,826,756

2004 Options Exercised: $4,798,000

Value of Hilton Head, SC Home (Beaufort County Assessor): $3,275,500

WellPoint CEO Angela Braly

2007 Compensation (secinfo): $9,094,271

2008 Compensation (Forbes): $9,844,212

2006 Sale of Stock (SECForm4): $4,858,585

2006 Options Excerise (SECForm4): $4,566,124

Value of Indianapolis Home: $1,987,700