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Good morning. Jeff Colvin writes today. It has passed a year UNITEDHELHELTH Group (UHG) – Now, in addition to countless other problems, UHG adds a controversial CEO to its plate.
Giant health care interest has witnessed an unprecedented loss in value. UHG is the largest health care company in America, No. 3 on Fortune 500, but in April it was surprisingly reported in the first quarter. The share price decreased, then continued to decrease for weeks. CEO Andrew Wei suddenly resigned for unlimited personal reasons, and the Chairman of the Board of Directors, Stephen Hemsli, seized as CEO.
Hemsley, 73 years old in June, will try to save Colossus, who helped build it as an executive from 2006 to 2017. While investors may expect that he will only occupy the job until the new CEO is found, Hemsley and the board board have other ideas. The extra wage package that they created shows how.
He will receive a basic salary of one million dollars annually – beige money, but in reality less than the usual salary of executives for such large companies. More importantly, he will receive a $ 60 million grant of stock options, with an evolution: he will only receive the reward if the CEO remains for a period of three years. He will not receive any other stock prizes on that period.
The shareholders will receive a vote on the unconventional wage plan at the annual UHG meeting on June 2. The services of institutional shareholders (ISS), the largest company that advises the main shareholders on how to vote, vote number, and mention the lack of performance standards and the fact that the shares have been beaten so that it can get venous just because the share price recovered.
UHG again struck, and sending shareholders an explanation of what Iss He claims that he is lost and why they should vote in favor of Hemsley salary package. The bottom line, Hemsley and UHG are likely to get the payment package that negotiates. ISS recommendations are taken seriously, but shareholders usually vote for management.
Even if UHG is lost voting, which companies should carry under the law, the result is not binding and consulting only; The Board of Directors can simply ignore the desires of the shareholders. In addition, UHG notes that the main ISS competitor, Glass Lewis, recommends that the shareholders be voted in favor of the Hemsley payment package.
Regardless of the result, the disputed vote will be great. It will already lift the high risk of UHG, its managers, and for a whispee.
More news below.
Communication CEO daily via Diane Brady in [email protected]
This story was originally shown on Fortune.com
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