UnitedHealth urges shareholders to back CEO’s $60M pay package

UnitedHealth urges shareholders to back CEO’s $60M pay package 
Becker's Payer Issues; by Rylee Wilson; 5/20/25 
UnitedHealth Group is asking shareholders to support a $60 million stock option award for its new CEO. In a May 20 letter to shareholders, Christopher Zaetta, UnitedHealth’s chief legal officer, urged shareholders to approve the company’s executive compensation. Institutional Shareholder Services, a proxy advisory firm, has advised shareholders to vote no on UnitedHealth’s “say-on-pay” proposal. The company appointed Stephen Hemsley, who led the company from 2006 to 2017, as CEO in May. Mr. Hemsley will receive a $1 million annual salary, but will not receive any annual cash incentives. Instead, he will receive a $60 million stock option after three years as CEO. ISS recommended shareholders vote no because nearly all of Mr. Hemsley’s compensation will be in stock option awards, and fluctuations in stock price could lead to a “windfall” for the CEO.