Total compensation: $48,075,614 for the year ended Dec. 31
Non-equity incentive pay: $4,940,000
Other compensation: $154,804
Exercised stock options: $28,829,810
Value realized on vesting shares: $12,851,000
Total 2011 return to shareholders: 42.3 percent
Note: Most of Hemsley's 2011 compensation was from previously issued options that he exercised last year and stock awards granted in previous years that vested. Hemsley exercised 1.2 million options worth $28.8 million in 2011. Those shares were originally granted in 2002. In 2010, most of Hemsley's compensation also came from $43.5 million worth of long-held options.
In 2011, Hemsley also earned $12.9 million from restricted shares that vested during the year, including $11.7 million from performance-based shares. The company's long-term incentive award for the 2009 to 2011 period is based on cumulative earnings per share and return on equity. The company exceeded the maximum performance measures for both during that period, with an 18.3 percent return on equity and a cumulative EPS of $12.07, which was $1.08 over the maximum level.
Hemsley's annual salary of $1.3 million has stayed the same since 2006. Hemsley's bonus of $4.94 million was 45 percent more than 2010. The 2011 bonus included an annual bonus of $3.6 million and a $1.3 million bonus for the 2009 to 2011 incentive period. No tax gross-ups or executive-only perks such as company cars, security systems, financial planning or vacation homes are provided to UnitedHealth's executive officers.
In 2011 UnitedHealth's revenue grew 8 percent to $102 billion, exceeding the $100 billion mark for the first time, and earnings grew 11 percent to $5.1 billion. UnitedHealth also saw growth in enrollment to its various medical plans and now covers 35.6 million people.