What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to announce the appointment of Eric S. Rangen as the new Senior Vice President and Chief Accounting Officer of UnitedHealth Group Inc.

What are the key compensation details for the new Chief Accounting Officer?

Eric S. Rangen will receive a base salary of $350,000, with eligibility for an annual bonus targeted at 50% of his base salary. He is also slated to be considered for stock-settled stock appreciation rights (SARs) valued at $1,000,000, which would vest over four years.

What are the terms regarding termination of employment for Mr. Rangen?

The employment agreement specifies that if Mr. Rangen's employment is terminated by the company without 'Cause', he will receive outplacement services and severance compensation equal to his annualized base salary plus 50% of his last two years' bonuses, along with assistance for benefit continuation costs. Severance payments will be made over 12 months, with a potential six-month delay to comply with Section 409A of the Internal Revenue Code.

What is the background of the new Chief Accounting Officer?

Eric S. Rangen has a strong financial background, having served as Executive Vice President and Chief Financial Officer at Alliant Techsystems Inc. from 2004 to 2006, and previously as Vice President and Chief Financial Officer from 2001 to 2004. Prior to that, he was a partner at the international public accounting firm Deloitte & Touche LLP.

UNH 8-K: Leadership Changes

Summary

UnitedHealth Group Inc. (UNH) filed an 8-K report on December 18, 2006, primarily to announce the appointment of Eric S. Rangen as Senior Vice President and Chief Accounting Officer, effective December 15, 2006. This executive appointment is a key focus of the filing, providing details on Mr. Rangen's compensation package and employment terms. For investors, the most significant information revolves around the compensation structure offered to Mr. Rangen, which includes a base salary, bonus eligibility, and potential equity awards in the form of stock-settled stock appreciation rights (SARs). The terms of his employment agreement, including provisions for termination and non-compete clauses, are also detailed, offering insights into the company's executive employment practices and its commitment to attracting and retaining key financial leadership.

Key Highlights

1Appointment of Eric S. Rangen as Senior Vice President and Chief Accounting Officer, effective December 15, 2006.
2Mr. Rangen's employment agreement includes a base salary of $350,000.
3He is eligible for an annual target bonus of 50% of his base salary.
4Potential equity compensation award of stock-settled stock appreciation rights (SARs) with a Black-Scholes value of $1,000,000.
5SARs, if awarded, will vest 25% annually over four years.
6Employment agreement outlines termination provisions, including severance pay for termination without 'Cause'.
7Mr. Rangen's background includes previous CFO roles and experience as a partner at Deloitte & Touche LLP.

UNITEDHEALTH GROUP INC 8-K Report, Executive Changes (Dec 18, 2006)

Summary

Key Highlights

Frequently Asked Questions