CEO Compensation


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The 25 Highest Paid Executives of Health Insurers
in Year 2000, Exclusive of Unexercised Stock Options

                                                see also chart on 2003 pay of 27 CEOs of NonProfit Hospitals CLICK HERE

See also 2006 data on UnitedHealth's 's 2005 giveaway to and 2003 data on pay and options at at several HMOs
NAME TITLE COMPANY COMPENSATION
William McGuire CEO United Health Group Corp $                            54,129,501.00
Wilson Thylor Rtd Chair. CIGNA Corporation 24,741,578
Ronald Williams Exec VP Well Pnt Hith Network Inc 13,205,631
William Donaldson Chair Aetna Inc 12,650,393
Leonard Schaeffer Chair & CEO Well Pnt HIth Networks Inc 11,127,465
Edward Hanway Chair & CEO CIGNA Corporation 9,478,634
D Mark Weinburg Exec. VP Well Pnt Hlth Networks Inc. 8,957,410
Richard Huber Fmr Chair, CEO&Pres Aetna Inc 6,988,987
William Pastore Pres CIGNA Health CIGNA Corporation 6,779,028
Thomas Jones Pres Retire. & Invest CIGNA Corporation 6,055,314
R C. Wheeler CEO Uniprise United Health Group Corp 5,341,555
Jeannine Rivet Exec.VP&CEOlngenix United Health Group Corp 5,151,379
James Stewart Exec VP & CFO CIGNA Corporation 5,023,125
John Rowe Pres & CEO Aetna Inc 4,028,919
Kurt Thompson Exec VP & CFO Oxford Health Plans Inc 3,504,114
Alan Weber VC Strat &Fin &CFO Aetna Inc. 3,499,162
Stephen Hemsley Pres & COO United Health Group Corp. 2,862,665
Michael McCallister Pres & CEO Humana Inc. 2,727,004
David Lubben Sec & Gen. Counsel United Health Group Corp 2,701,824
Alan R Hoops Pres.&CEO 01-07/00 PacifiCare Health Sys,Inc. 2,264,612
Allen Wise Pres & CEO Coventry Health Inc 2,232,127
Jon Richardson Exec VP & Cen Coun . Oxford Health Plans, Inc 2,054,710
Kenneth Fasola COO - Market Oper. Humana Inc. 1,909,628
David Jones Chair & Int CEO Humana Inc. 1,871,283
James Murray COO - Service Ops Humana Inc 1,854,401
Total Compensation paid for these 25 Executives: $201,140,449
Average Compensation for these 25 Executives: $ 8,045,618
(SouRcv US SECURITIES AND EXCHANGE CoMMissioN DATA COLLATED BY THE ORGANIZATION, FAMILIES
USA
33

CEO: ABSURD CEO REWARDS FOR DENYING CARE

Health industry CEO's were richly rewarded in 2006. According to SEC filings, the insurance executives with the highest total compensation included Wellpoint's Larry Glasscock ($23.9 MIL), Cigna's Edward Hanway ($21.0 MIL), Coventry's Dale Wolf ($12.9 MIL), Aetna's Ronald Williams ($19.8 MIL), Unitedhealth Group's William McGuire ($12.0 MIL), and Health Net's Jay Gellert ($5.2 MIL). The highest compensated drug company CEOs included Miles White at Abbot Laboratories ($26.9 MIL) and Richard Clark at Merck ($10.3 MIL) (Executive PayWatch Database, AFL-CIO).

California's Health Net Inc. will pay $9 MIL in punitive damages for canceling the insurance policy of a woman battling breast cancer while she was in the middle of treatment. The firm claimed that the patient weighed more than she reported on her insurance application, and failed to report a heart condition. The firm will also pay a fine of $1 MIL for misleading the state about bonuses tied to policy cancellations or "rescission." The firm avoided payment of $35.5 MIL in medical expenses by revok~ ing around 1,600 policies between 2000 and 2006, offering its senior cancellations analyst more than $20,000 in bonuses based, in part, on her meeting or exceeding annual targets for revoking policies. Health Net made more than $2 BIL in profits in 2007 (LA Times, 11/09/07, ABC News, 2/25/08).

Blue Cross and Blue Shield of Massachusetts' CEO William Van Faase received a whopping $16.4 MIL retirement package when he stepped down as CEO in 2006. Faase stayed on as chairman and received another $3 MIL the same year, includ~ ing $500,000 in base pay and $2.46 million in bonuses (Boston Globe, or/24/08).

Former United Health CEO William McGuire will pay $468 million to avoid trial on charges that he manipulated stock options. McGuire resigned in 2006 with stock options valued at $1.6 BIL. Note that's the legal theft of $1.6 BIL that did not involve the extra-legal stock option manipulations that McGuire also thought of as his privilege. $1.6 BIL could have paid for how many family of four annual health insurance premiums?

CEO: Worker Pay Ratio Shoots Up to 431 : 1

2004 was a banner year for CEOs and a dismal year for workers, according to a new report from the Institute for Policy Studies and United for a Fair Economy, Executive Excess 2005. The ratio of average CEO pay (now $11.8 million) to worker pay (now $27,460) spiked up from 301-to-1 in 2003 to 431-to-1 in 2004. If the minimum wage had risen as fast as CEO pay since 1990, the lowest paid workers in the US would be earning $23.03 an hour today, not $5.15 an hour.

At the 34 publicly traded US corporations among the 2004 top 100 defense contractors with 10% or more of their revenues from defense contracts ­ companies such as United Technologies, Textron, and General Dynamics ­ average CEO pay increased 200% from 2001 to 2004, versus 7% for all CEOs. For example, David H. Brooks, CEO of bulletproof vest maker DHB Industries, earned $70 million in 2004, 13,349% more than his 2001 compensation of $525,000. Brooks also sold company stock worth about $186 million last year.

The report reviewed trends in CEO pay and gave CEO Hall of Shame awards to executives who have exemplified five types of excessive pay, such as: Tax dodgers: 46 large companies paid no federal income tax in 2003, despite collectively earning $30 billion in profits. Some of the savings wound up in the pockets of their CEOs, who made $12.6 million in average pay in 2004. Over the last 15 years, the cumulative pay of the ten highest paid CEOs in each year totaled more than $11.7 billion.

Executive Excess 2005 is the twelfth annual CEO pay study by the Institute for Policy Studies (IPS) and United for a Fair Economy (UFE). For hard copies of the report or to set up interviews with the co-authors, call 617-423-2148 x113 or e-mail pressroom@faireconomy.org. Or for more details CLICK HERE

Additional reports on CEOs and top executives extracting millions and millions from the national health care system (reports from 2005 and early 2006) See here,    or here    or here .

 REFERENCES

These data are taken from: