STEPHEN HEMSLEY | UnitedHealth Group Inc.
Chief Executive Officer
Total compensation: $20,093,213 for the year ended Dec. 31, 2015
Non-equity incentive pay: $3,672,000
Other compensation: $145,679
Exercised stock options: $0
Value realized on vesting shares: $14,925,534
New stock options: 103,678
Total 2015 shareholder return: 18.3 percent
Note: Long-term equity awards make up the biggest portion of Hemsley’s compensation at Minnetonka-based UnitedHealth, and his total realized pay each year depends on how many stock options he exercises. Hemsley usually keeps options to near their 10-year expiration, and after he exercises the options generally holds the shares. But in 2015 he didn’t exercise any options, and as a result his total realized pay for 2015 was down 70 percent, or $46 million, from the year before. It was the first time since 2007 that he didn’t exercise any options. In 2014 he realized $60.8 million from his long-held stock options.
Hemsley gets an annual salary of $1.3 million, which hasn’t changed since 2006.
Hemsley’s annual cash bonus of $3.7 million was down 7 percent compared with 2014. UnitedHealth exceeded its annual incentive targets, which include financial and stewardship goals, but not by as much as in 2014. Hemsley earned $2.75 million for financial and stewardship goals tied to 2015 performance and an additional $922,000 for exceeding corporate earnings and capital targets for the 2013 to 2015 fiscal years.
The $15 million Hemsley earned from stock awards that vested during the year were from a mix of restricted stock units and performance-based share awards that covered the 2013-2015 period. But Hemsley realized slightly less from these long-term equity awards than he realized in 2014.