CEO Pay Watch UnitedHealth Group Inc.
Stephen Hemsley, president, CEO
Total compensation: $28,139,070 for the year ended Dec. 31
Other compensation: $173,254
Exercised stock options: $9,480,000
Value realized on vesting shares: $14,085,816
New stock options: 99,312
Total 2013 shareholder return: 41.0 percent
Note: Hemsley’s base salary of $1.3 million has been the same since 2006, but the value of his overall compensation generally rides on the value of previously issued long-term equity awards that have either vested or been exercised in the last fiscal year.
This is the fourth consecutive year that his overall compensation, including the value of realized options and stock awards, has fallen.
In 2013, Hemsley took home $23.6 million from previously issued long-term equity awards, $9.5 million from option gains and $14.1 million from stock awards that vested.
The $23.6 million from those combined awards was down from $27.8 million the previous year and contributed to a 19 percent decrease in his overall compensation from 2012.
Hemsley’s cash incentives for the year, $3.1 million, were down 41.5 percent compared to $5.3 million in 2012. The cash incentives include an annual cash incentive plus a cash incentive award for a three-year performance cycle. Hemsley earned the maximum incentive of $1.3 million for the period from 2011 to 2013 but only 79 percent of the targeted annual award for 2013.
UnitedHealth shareholders showed strong support for the company’s executive compensation program last year, with 97 percent of the shares voted to approve the say-on-pay proposal.