UnitedHealth shareholders approve CEO’s $60M compensation package
UnitedHealth Group shareholders have approved a compensation package worth over $60 million to be awarded to its new CEO, company veteran Stephen Hemsley, who took the reins last month.
Per the terms voted on and confirmed by shareholders, Hemsley will receive a $1 million base salary every year, in addition to a one-time $60 million package of stock options. This comes at a time when UnitedHealth is trading at a five-year low, with multiple shareholder revolts making the news—including a lawsuit filed by investors who claim the company hid its “anticonsumer” business practice of denying claims, which was a driver of past profits.
In that lawsuit, investors argue the company changed course and ended its systemic claims denials after the CEO of its UnitedHealthcare subsidiary, Brian Thompson, was murdered in New York City last December.
Speaking to shareholders during a call on Monday, Hemsley said his goal is to win back the trust and confidence of all investors. Per a filing with the Securities and Exchange Commission (SEC), his compensation is locked for three years, meaning he won’t be eligible for a raise or further bonuses until 2028.
One of the first things Hemsley did upon taking over as CEO was suspend the company’s 2025 guidance, as it no longer reflects its financial targets. He said the company is evaluating its business and making some changes, mainly around updating its risk assessments for Medicare Advantage contracts—the elevated care cost for patients is cited as one of the primary reasons UnitedHealth missed its Q1 earnings target.
Hemsley took over after the abrupt departure of Andrew Witty, who stepped down into an advisory role. Witty served as CEO since 2021, following a career at Optum, another subsidiary of UnitedHealth.
From 2006 to 2017, Hemsley oversaw a long period of growth at UnitedHealth during his first tenure as CEO. He’s remained the director of the company’s board since—a role he is keeping for now.
UnitedHealth’s stock sits at $304.72, down almost 40% on the year.
Amedisys acquisition still on hold
Remaining from Witty’s tenure is a planned merger between UnitedHealthcare/Optum and Amedisys, one of the country’s largest homecare providers. That deal, finalized in 2023, has attracted the attention of the U.S. Department of Justice (DOJ), which sued to block the transaction.
The DOJ is concerned the merger will create a lack of competition for homecare services in several states. In response, both companies have divested from some of their holdings. It remains to be seen if it's enough to appease the DOJ and a federal judge.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.