John Edwards has been talking alot these days about corporate greed.
"Corporate greed and political calculation have taken over our government and sold out the middle class," Edwards said. "That is wrong. It doesn't say 'life, liberty and the pursuit of endless corporate profits' in the Declaration of Independence."
This is ugly face of corporate greed.
Ex-UnitedHealth CEO Cuts a $600 Million Deal
William McGuire, the UnitedHealth CEO ousted last year in an options-backdating scandal, has cut a deal to settle civil and federal government claims that came out of the options mess.
He’s going to give up the rights to $320 million worth of stock options and forfeit $91 million in his retirement plan, the health insurer said this evening. That’s on top of $200 million of gains from options with questionable grant dates that he already agreed to gave back to UnitedHealth, the WSJ reports. Details about the deal are here.
Yes, those are big numbers. On the other hand, McGuire’s total options haul has been valued at well over $1 billion (it’s unclear how much money he actually wound up with).
Today’s agreement is part of a deal to settle some of the legal claims that arose from the backdating mess, which also forced UnitedHealth to restate $1.13 billion of previous earnings over a 12-year period.
Update: After the giveback, McGuire still has about 24 million stock options, worth in the neighborhood of $800 million, WSJ reports. During his tenure at UnitedHealth, he was paid $530 million.
The healthcare rogues gallery courtesy of The Wall Street Journal. And there are many, many more, just go to the link.
Chairman and CEO
The total compensation figure includes salary of $1.7 million, $2.8 million in non-equity performance pay, stock and options valued at a cost to the company of $9.2 million, a $1.4 million increase in pension value and $192,409 in "other compensation." This category included the company's $99,020 401(k) match, as well as perks such as $91,069 in costs for the use of the corporate aircraft to attend outside board meetings. As of Dec. 31, pension and nonqualified deferred compensation stood at $41,911,019.
Glasscock, Larry C.
Package included salary of $1.29 million, stock awards valued at $4.19 million, options awards valued at $11.74 million, incentive pay of $2.01 million, $4.32 million increased in pension and deferred compensation value. "other" compensation of $329,286 included "directed executive compensation," or DEC, of $42,000 in cash and $13,000 in reimbursements, and a deferred compensation match of $251,726. DEC cash credits may be used for any purpose including, but not limited to, automobile-related benefits, first class air travel, airline clubs, savings or retirement accounts, among other things. DEC reimbursements can be used for the cost of financial/retirement planning, financial-investment magazine subscriptions, among other things. As of Sept. 30, 2006, present value of his pension benefit stood at $26,422,831 million, while aggregate balance of nonqualified deferred compensation stood at $15,277,781.
Clark, Richard T.
CEO and President
Total compensation includes salary of $1.18 million, stock and options valued at a cost to the company of $4.79 million, nonequity incentive pay of $1.8 million, an increase of $2.26 million in the value of Mr. Clark's pension and nonqualified deferred compensation and $210,536 in other compensation. Included in the "other" category were perks such as $30,878 for aircraft; $16,055 for commuting; $373 for home security system and $153,330 in dividends on unvested restricted stock units. As of Dec. 31, pension and nonqualified deferred compensation stood at $12,498,797.
The total includes base salary of $1.66 million, with stock awards valued at $2 million, options valued at $9.2 million, $7.5 million in incentive payouts, and $5.5 million in change in pension and deferred compensation. "Other" category includes "CEC" dividends, plus tax reimbursments, contributions to defined benefit plans and perks. Perks comprised personal use of company aircraft ($156,013); car and driver for personal transportation ($35,304); as well as executive dining-room meals, home-security system monitoring fees, medical exams and financial-planning services. As of Dec. 31, the value of Mr. Weldon's pension and nonqualified deferred compensation was $64,152,177.
Mr. Kindler -- who was tapped as Pfizer's new CEO in July -- received a base salary of $1.1 million, a $3.3 million bonus, stock and options valued at a cost to the company of $4.71 million, an increase of $422,091 in the value of pension and nonqualified deferred compensation and other compensation worth $265,318. Besides $94,743 in Pfizer matching contributions to savings plans, the "other" column included perks such as aircraft usage valued at $122,388, $10,000 in financial counseling, car usage tallied at $29,030 as well as tax gross-ups and security costs.
Aside from his salary of $1.66 million, Mr. Essner earned $3 million in nonequity incentive pay, stock and option awards valued at a cost to the company of $23.51 million, an increase in the value of his pension of $4.53 million as well as other compensation worth $147,138. The "other" category includes $41,397 for personal use of company aircraft, $49,860 representing company matches to savings plans and $27,471 for tax reimbursement. As of Dec. 31, the value of Mr. Essner's pension and deferred compensation stood at $26,591,865.
Williams, Ronald A.
Chairman, CEO and President
Mr. Williams's compensation included a salary of $1,073,077; stock and option awards with an estimated fair value of $9,628,084; non-equity incentive plan compensation of $7,732,500 -- including a planned bonus of $1,612,500 and a performance cash award of $6,120,000; pension gains of $1,298,160; and other compensation of $70,655. The "other" category includes, but isn't limited to, the use of company aircraft and vehicles, valued at $38,801, and legal and advisory fees of $25,109, associated with negotiating amendments to the executive's employment agreement. As of Sept. 30, 2006, the value of Mr. Williams's pension stood at $2,379,226; as of Dec. 31, 2006, the value of his non-qualified deferred compensation stood at $24,375,653.
White, Miles D.
Chairman, CEO and Director
Mr. White's total compensation included a salary of $1,661,973; stock and option expenses recognized at $19,039,300; a performance-based bonus of $4,050,000; pension and non-qualified deferred compensation earnings of $1,308,852; and "all other" compensation of $855,233. The "other" category included earnings, fees and tax payments for non-qualified defined benefit and non-qualified defined contribution plans of $675,843, employer contributions to defined contribution plans of $83,099, and "other compensation" of $96,291, including the incremental cost for flights, excluding non-business related flights, of $90,154; and the cost of providing a corporate car, less the amount reimbursed by Mr. White, of $6,137. The present value of Mr. White's pension benefits stands at $11,056,544.
Cornelius assumed CEO role on Sept. 12, 2006. Salary for the period through the end of the year totaled $379,808; options awards were valued at $610,169; rest is increase in pension and deferred compensation earnings, and "other" compensation. "Other" category of $318,194 includes $9,452 for personal use of car and driver; $181,398 for personal use of aircraft; tax gross-ups related to personal air travel of $17,043; three months of housing costs totaling $110,301 that includes a processing fee ($550) common charges ($4,926), broker’s commission ($40,900), and rent ($63,925).
CEO and President
Compensation included a base salary of nearly $1.08 million and stock and options -- for 2006 grants and portions of grants from prior years -- valued at a cost to the company of $6.62 million. The total pay package also included $1.05 million in non-equity incentive plan pay and a $468,671 increase in the value of his pension and nonqualified deferred compensation accounts. "All other" compensation was valued at $276,596, which includes $163,073 for personal use of corporate aircraft and $66,156 in matching contributions to his deferred compensation plan. Other costs in this column reflected insurance policies provided to Mr. Fetter, a car allowance and relocation-related expenses and reimbursements made in connection with his relocation to Dallas. The company moved its headquarters to the Texas city from Santa Barbara, Calif., in early 2005. As of Dec. 31, Mr. Fetter's supplemental executive retirement plan stood at $1,059,529, while his nonqualified deferred compensation account stood at $373,928.
CEO and President
Ex-UnitedHealth CEO’s Options Stuck in Limbo
Pfizer Discloses Parting Payments to Execs
$15.5 million for UnitedHealth CEO
For Tenet CEO, A Takeover Would Be Sweet
Bristol-Myers Temp CEO Lives Large in Big Apple
Amgen Chief Makes $24 Million
Abbott Chief Makes $26.9 Million, Gives Up Golden Parachute
As I said, lest you doubt John Edwards.