At troubled UnitedHealth Group, a highly unusual pay package—potentially worth $60 million to its boomerang CEO—heads to a June vote
Will the new CEO of the Yirants Group get the Hefty Pay package that wants to give him advice?
The eight digital question is rising due to the unprecedented loss of UVS in the last few weeks. UHG is the largest healthcare company in America, the 500th province No. 3, but in April, it reported a surprisingly scary first quarter. The stock was immersed, then it has been dropped for weeks. Director General Andrew City has sharply resigned for unspecified personal reasons, and the chairman of the council Stepan Hamsli took over as a general director.
In June 73, who are 73 years old, will try to save the colossus, which he helped as Executive Director from 2006 to 2017. The high unusual payment package created for Hamsley shows how.
He will receive a basic salary, a $ 1 million salary, but in fact, it is lower than the ordinary salaries of such large companies. It is more important that he will receive a one-time grant from shares options with a turn. He will present the payment only if he continues the General Director. He will not receive other stake prizes during that period.
The shareholders will come to vote at the annual meeting of the June 2 of UHG. Institutional shareholders’ services, the largest firm, advises to vote for large shareholders, advises no voting.
Liter He sees many problems with Hemsi’s payment package. Such large, large-scale prizes “limit the capabilities of the Council to make the opportunity to make a meaningful adjustment opportunities,” ISS said. In addition, Hamsi did not need to meet any performance criterion to earn Mammoth Stock Option Prize. He got all the day all day. Hamsli also received the prize as the bad news lowered its lowest price for about five years, considering that he could “buy” price “. Combine these factors, says ISS, and no votes, “now guaranteed.”
Uvent has returned, sending the shareholders to an explanation of what Hamli’s payment package released. The company’s central point. “The award only is valuable if and to what extent is the shareholder size created?” As for the ARF’s argument, UV said that “actually all [underlined and bold in the UHG document] The shareholders won the rise in the price of the company’s shares with relatively current levels. “
Who will probably win this vote? The bottom line, Hamslin and UVS will probably get their negotiated payment package. ISS recommendations are taken seriously, but the shareholders usually vote for the leadership. Even if UHG loses the voting of shareholders that companies must have the law, the result is only mandatory and consultative. The Board of Directors simply could ignore the desires of the shareholders. In addition, UHG notes that the main opponent of ISS, Glass Lewis, advises shareholders to vote for Hamsi’s payment package. “Unknown glance,” it tells its customers “,[Hemsley’s] Annual compensation is unnecessary. “
Regardless of the result, the disputed voting will be significant. This will increase the high stakes for UV, its principals and Hamsli. From now on, for three years, the success of the opposition will affect more heroic, and failure would be more bitter.
This story was originally shown Fortune.com
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