With more than $9.3 million in non-equity incentive pay, Cigna Corp. CEO David Cordani had the highest total compensation package of any publicly traded health insurer CEO in 2011, according to Health Plan Week’s (HPW) annual analysis of proxy statements filed in March and April with the Securities and Exchange Commission.
According to Cigna’s proxy statement, Cordani raked in just over $19 million, a 25.4% increase from his 2010 compensation. That year, he ranked No. 2 in total compensation among publicly traded health plan operators. While his 2011 salary remained unchanged at $1 million, Cordani earned $5.8 million in stock awards, $2.6 million in option awards and $9.3 million in non-equity incentive compensation.
Cigna based 91% of Cordani’s 2011 target pay on performance, Cigna spokesperson Gloria Barone Rosanio tells HPW, adding that the compensation was within the competitive range of other large health insurers. The structure of Cordani’s pay package demonstrates how health plan executives are receiving a growing percentage of their compensation through incentive-based pay, a change that is leaving insurers open to criticism as premiums go up for members.
Go to http://aishealth.com/archive/nhpw041612-01 to read this article in its entirety, which also includes a table detailing the total compensation for 11 health plan CEOs in 2011. The table shows that most other health plan CEOs also saw their compensation rise in 2011.
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