UnitedHealth Group is calling a former CEO back to lead the company, and sweetening the deal by adding a hefty $60 million equity award to a $1 million base salary.
UnitedHealth Group announced on Tuesday that its chief executive, 60-year-old Andrew Witty, would be stepping down immediately for “personal reasons” and that Stephen Hemsley, 72, the chairman of the company’s board of directors, would succeed him as CEO.
To mark the transition, Hemsley will receive a base salary of $1 million and a one-time $60 million equity award consisting of stock options that vest after three years, Bloomberg reports. In comparison, Witty received a higher base salary of $1.5 million in 2024 but a lower total compensation of $26 million for the year, including stock and options awards.
The move marks Hemsley’s second time as the leader of UnitedHealth Group; he previously served as CEO from 2006 to 2017, leading the company’s expansion into areas like pharmacy benefits.
Related: UnitedHealthcare Offers Employees Voluntary Buyouts to Meet ‘Evolving Needs’
According to a U.S. Securities and Exchange Commission filing, Hemsley was paid almost $18 million in salary, bonus, and awards in his last full year as CEO in 2016.
In his new term as CEO, Hemsley will also continue to serve as chairman of UnitedHealth Group’s board of directors, and Witty will become his senior adviser.
UnitedHealth Group’s stock dropped by more than 17% on Tuesday following the announcement of the CEO change, per The New York Times. Over the past month, the company’s stock has lost over 45% of its value.
Stephen Hemsley, CEO of UnitedHealth Group. Photographer: Jonathan Alcorn/Bloomberg via Getty Images
Hemsley stated in a press release that Witty, who has served as CEO since 2021, has led the company through “some of the most challenging times any company has ever faced.” One event in particular was the murder of Brian Thompson, the CEO of the company’s health insurance business, UnitedHealthcare. Thompson was fatally shot in December in Midtown Manhattan, leading to concerns about CEO security and causing the removal of leadership pages from many company websites. His death put the rising costs of the U.S. healthcare system in the spotlight.
Related: UnitedHealth’s Data Breach Affected 100 Million Americans. Here’s What the Cyberattack Exposed.
UnitedHealth Group also faced a cyber attack in February 2024 that impacted the personal data of about 100 million Americans, and an antitrust investigation this February by the U.S. Department of Justice.
The company has more than 440,000 total employees per a December 31, 2023, filing. It’s the largest healthcare company in the U.S. based on revenue, bringing in over $400 billion in 2024.
UnitedHealth Group’s market cap was $286 billion at the time of writing, down from $566 billion in November.
UnitedHealth Group is calling a former CEO back to lead the company, and sweetening the deal by adding a hefty $60 million equity award to a $1 million base salary.
UnitedHealth Group announced on Tuesday that its chief executive, 60-year-old Andrew Witty, would be stepping down immediately for “personal reasons” and that Stephen Hemsley, 72, the chairman of the company’s board of directors, would succeed him as CEO.
To mark the transition, Hemsley will receive a base salary of $1 million and a one-time $60 million equity award consisting of stock options that vest after three years, Bloomberg reports. In comparison, Witty received a higher base salary of $1.5 million in 2024 but a lower total compensation of $26 million for the year, including stock and options awards.
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