Executives at some of the nation’s biggest insurers raked in tens of millions of dollars each last year, with insurance tech leaders easily topping the list for total claims. , according to data AIS Health released this month.
Clover Health awarded CEO Vivek Garipalli total compensation of $389.6 million, entirely including stock awards, in 2021, according to AIS Health analysis of the company’s documents. insurance companies and legal documents.
Since going public in January 2021, Clover Health has had financial difficulties; the company reported a net loss of $75.3 million in the third quarter of this year. Ari Gottlieb, principal at A2 Strategy Group, said that as a result, Garipalli will likely receive only a fraction of those stock awards. “You get them for what they are,” he said, which is: These are imaginary numbers for imaginary companies. Shares of Clover Health closed at $1.13 on Friday, down 93% from its initial public offering of $15.30.
Clover Health announced in August that President Andrew Toy would replace Garipalli as CEO on January 1. The company did not immediately respond to a request for comment.
Similarly, Oscar Health awarded CEO Mario Schlosser total compensation of $60.8 million, much of it also based on stock bonuses. The company announced last month that it will exit most of the Medicare Advantage markets next year. Oscar Health closed at $2.68 on Friday, down 94% since its stock went public in March 2021.
An Oscar Health spokesperson wrote in an email: “Our executive compensation program, including Mr. Schlosser, follows the same principles as we apply to our employee compensation program. its larger member”. “It includes a combination of a base salary that recognizes their individual roles and responsibilities, an annual bonus tied to our annual goal, and an equity allowance tied to a goal.” our long-term business.”
Bright Health Group’s compensation package for CEO Mike Mikan last year was $180.8 million, about 99% of which was in stock and options awards. Bright Health recently raised $175 million to limit financial losses, exceeding $430 million in the third quarter. Shares of Bright Health closed Friday at $0.82, 95% below its $18 IPO in June 2021.
Gottlieb said Bright Health, which declined to comment, was outstanding in that it gave Mikan a $1.3 million bonus despite the company’s difficulties and continued to give him more stock.
Ed Steinhoff, chief executive officer of consulting firm Pearl Meyer, said newer companies tend to focus more on equity compensation and are cautious about wages so they can reinvest their numbers. that money goes into the business.
Of the established insurers, Florida Blue and Centene offered the highest compensation to their top executives.
Guidewell Mutual Holding, the parent company of Florida Blue, awarded CEO Patrick Geraghty a total of $24.6 million in compensation, including a base salary of $1.3 million, bonuses of $4. $8 million and other $18.5 million in compensation, often including additional executive benefits. His compensation has increased by 11.5% from 2020.
Centene CEO Michael Neidorff, who passed away this April, was awarded total compensation of $20.64 million last year, including a base salary of $1.8 million. and $12.8 million in stock bonuses. Neidorff’s compensation was down 17.3% year-over-year.
Here’s a summary of how much other major health insurers paid their executives in 2021:
- Molina Healthcare CEO Joseph Zubretsky: total compensation is $120 million; by 12.1%; including $1.5 million in base salary and $15 million in stock bonuses.
- Cigna CEO David Cordani: total compensation is 19.9 million USD; down 0.3%; including $1.5 million in base salary and $11.8 million in stock bonuses.
- Anthem CEO, Gail Boudreaux: total compensation of $19.4 million; up 13.1%; $1.6 million base salary and $9.9 million stock bonus
- UnitedHealth Group CEO Andrew Witty: total compensation of $18.4 million; up 43.4%; including $1.5 million in base salary and $10.8 million in stock bonuses.
- Humana CEO Bruce Broussard: total compensation is $16.5 million; up 0.2%; including $1.4 million in base salary and $9.8 million in stock bonuses.
