(Reuters) -UnitedHealth Group CEO Stephen Hemsley will get an annual base salary of $1 million and a one-time $60 million equity award as he returns to the top role at a tough time for the healthcare conglomerate.
Hemsley, 72, had led the company for more than a decade until 2017 and is re-taking the reins following a series of setbacks for UnitedHealth, including a cyber attack, federal investigations, soaring medical costs, and the murder of a top executive.
He will also receive executive security benefits, a filing showed on Wednesday.
UnitedHealth announced the sudden departure of former CEO Andrew Witty on Tuesday and suspended its annual forecast due to surging medical costs, sending its shares down nearly 18% on the day.
The company did not disclose any details on Witty’s exit package in the Wednesday filing.
Hemsley, often credited with creating UnitedHealth’s key growth engine Optum, will continue to serve as the chair of the board and will stop receiving compensation as a director. He will not get an annual cash incentive award either.
The one-time $60 million equity award is in non-qualified stock options that will vest after three years, with no additional annual equity awards during the first three years of his employment.
(Reporting by Sriparna Roy in Bengaluru; Editing by Devika Syamnath)
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