UnitedHealth to pay departing CEO $5.1M

[OhioChick]

Posted on Tue, Oct. 17, 2006

MINNEAPOLIS - After being forced to step down over the company's compensation practices, UnitedHealth chief executive William McGuire will retire on $5.1 million a year, according to the calculations of a watchdog group.

McGuire has agreed to retire by Dec. 1, and he stepped down from his post as chairman on Sunday. The move came after a company-sponsored investigation determined that many of the company's stock options were backdated to make them more favorable for the recipients, including McGuire, other executives, and thousands of UnitedHealth employees.

McGuire's severance benefits include a $6.5 million lump sum, according to Portland, Maine-based group The Corporate Library, which has criticized McGuire's pay before.

McGuire has stock options that were worth $1.78 billion as of the end of 2005. Their current value is not known. Investors have sold off UnitedHealth shares since questions about options backdating arose in March. Then, on Sunday, UnitedHealth said McGuire would re-price his options to the highest point in the year they were granted to remove any possibility that he got a favorable price.

http://www.mercurynews.com/mld/mercurynews/business/15777164.htm


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Is it a wonder why healthcare costs so much?

[Eurobabe]

1. Disgraceful

:puke: The US health system is so dysfunctional. Need to cut out the middleman, NOW!!

[Kutjara]

2. Is that what a human soul is worth these days?

Must remember to sell mine before the price crashes.

[Vinca]

3. I think that's the company my brother used to work for.

He got the ax when he wouldn't deny care for people who needed it. Guess now he knows why they needed to save all that money.

[ikojo]

5. Every time their stock took a dip UHC would

lay off employees. I know many FORMER UHC employees. Trust me, if you are not an executive with a company they care very little about you.

[OhioChick]

6. If you're up for a real treat

regarding corporate greed, look up the "ACN Group." United Healthcare hired them to axe off care for the patients. This is must be where his 5.1 Mil came from.........

[ikojo]

4. This guy is a physician who I assume took

the hippocratic oath to first do no harm. I guess he thought it meant do no harm to his pocket book.

When will Americans stop worshipping at the alter of greed?

[Lance_Boyle]

7. Somebody needs to test this 'golden parachute'

with a swift push from a plane at altitude.

Sickening and disgusting don't even begin to cover it.

[brentspeak]

8. The "Ownership Society"

Where those who are amorally rich own society.

[dflprincess]

9. Gee, I wish I had gotton that kind of deal when UHG laid me off

n/t