CEOs of a few of the nation’s largest insurance coverage firms raked in tens of thousands and thousands of {dollars} every final yr, with insurtech leaders simply topping the record by way of complete compensation, based on AIS Well being information launched this month.
Clover Well being awarded Chief Government Officer Vivek Garipalli complete compensation of $389.6 million, consisting totally of inventory awards, in 2021, based on AIS Well being’s evaluation of insurance coverage firm paperwork and regulatory filings.
Since going public in January 2021, Clover Well being has suffered financially; the corporate reported a internet lack of $75.3 million within the third quarter. In consequence, Garipalli is prone to solely see a fraction of these share awards, mentioned Ari Gottlieb, a director at A2 Technique Group. “You’re taking them for what they’re, that are fantasy numbers for fantasy firms,” he mentioned.
Clover Well being shares closed at $1.13 on Friday, a 93% drop from its preliminary public providing of $15.30.
Clover Well being introduced in August that President Andrew Toy will substitute Garipalli as CEO January 1st. The corporate didn’t instantly reply to a request for remark.
Equally, Oscar Well being awarded CEO Mario Schlosser a complete compensation of $60.8 million, additionally largely based mostly on inventory awards. The corporate introduced final month that it might exit nearly all the things Medicare Benefit markets subsequent yr.
Oscar Well being closed at $2.68 on Friday, a 94% drop since its shares debuted in March 2021.
“Our government compensation program, which incorporates Mr. Schlosser, follows the identical rules that we apply to our broader worker compensation program,” an Oscar Well being spokesperson wrote in an e-mail. “It features a base wage combine that acknowledges your particular person roles and duties, an annual bonus tied to our annual targets, and capital grants tied to our long-term enterprise targets.”
Vivid Well being Group’s compensation package deal for CEO Mike Mikan final yr was $180.8 million, roughly 99% of which was inventory and possibility awards. Vivid Well being lately raised $175 million to curb its monetary losses, which exceeded $430 million within the third quarter. Vivid Well being shares closed Friday at 82 cents, down 95% from its $18 preliminary public providing in June 2021.
Vivid Well being, which declined to remark, stands out as a result of it gave Mikan a $1.3 million bonus regardless of the corporate’s woes and continues to provide her extra shares, Gottlieb mentioned.
Newer firms are inclined to focus extra on capital compensation and be conservative with salaries to allow them to reinvest that money again into the enterprise, mentioned Ed Steinhoff, managing director of consultancy Pearl Meyer.
Amongst conventional insurers, Florida Blue and Centene provided their prime executives the best compensation.
Guidewell Mutual Holding, Florida Blue’s holding firm, has awarded CEO Patrick Geraghty complete compensation of $24.6 million, together with a base wage of $1.3 million, a bonus of $4.8 million and $18.5 million in different compensation, which generally contains further government advantages. His compensation grew 11.5% since 2020.
Centene CEO Michael Neidorff, who died in april he acquired $20.64 million in complete compensation final yr, together with a base wage of $1.8 million and $12.8 million in inventory awards. Neidorff’s compensation decreased 17.3% from the prior yr.
Here is a rundown of how a lot different huge medical insurance firms compensated their CEOs in 2021:
- Molina Healthcare CEO Joseph Zubretsky: $120 million in complete compensation; 12.1% enhance; contains $1.5 million in base wage and $15 million in inventory awards.
- Cigna CEO David Cordani: $19.9 million in complete compensation; lower of 0.3%; contains $1.5 million in base wage and $11.8 million in inventory awards.
- Anthem CEO Gail Boudreaux: $19.4 million in complete compensation; 13.1% enhance; $1.6 million in base wage and $9.9 million in inventory awards
- Andrew Witty, UnitedHealth Group CEO: $18.4 million in complete compensation; enhance of 43.4%; contains $1.5 million in base wage and $10.8 million in inventory awards.
- Humana CEO Bruce Broussard: $16.5 million in complete compensation; 0.2% enhance; contains $1.4 million in base wage and $9.8 million in inventory awards.