UnitedHealth shareholders support CEO Hemsley’s $60M stock package

UnitedHealth Group (NYSE:UNH) shareholders approved a pay package for returning Chief Executive Officer Stephen Hemsley, which includes a $60 million stock option award.

According to reports, Hemsley will get a $1 million annual salary along with the $60 million award on a three-year contract.

Hemsley, the company’s chairman, replaced Andrew Witty as CEO of the managed care giant after the latter announced his resignation last month citing personal reasons.

Hemsley reclaimed the CEO position at a time when Minnesota-based UnitedHealth was going through several crisis, including the abrupt resignation of Witty and the company suspending its 2025 outlook, noting an ongoing increase in medical care activity.

Investors were also concerned after the healthcare giant’s business practices drew public scrutiny. Earlier in May, the Guardian reported that the company secretly paid nursing homes that helped it win Medicare enrollees and cut hospital transfers for sick patients. The Wall Street Journal also reported on a criminal investigation initiated by the Department of Justice over potential Medicare fraud at the company.

UnitedHealth, which said it would return to growth next year, lost about 40% so far this year, compared to the near 1% rise in the S&P500 Index.