Summary
UnitedHealth Group Inc. (UNH) filed an 8-K on June 8, 2016, reporting key personnel changes and shareholder meeting outcomes. The most significant development for investors is the appointment of John F. Rex as the new Chief Financial Officer, effective June 7, 2016. Mr. Rex brings substantial financial services experience, having previously served as EVP and CFO of Optum, and prior to that, as a Managing Director at JP Morgan. His compensation package includes a base salary of $800,000, an annual incentive target of 115% of his base salary, and an initial equity award valued at $2.5 million. The filing also detailed an amendment to Supplemental Executive Retirement Pay (SERP) for Stephen J. Hemsley, converting his cash lump sum benefit into 78,789 deferred stock units. Additionally, the report covers the outcomes of the company's 2016 Annual Meeting of Shareholders held on June 6, 2016, where all ten director nominees were elected with strong support, executive compensation was approved via a non-binding advisory vote, and the appointment of Deloitte & Touche LLP as the independent auditor for fiscal year 2016 was ratified.
Key Highlights
- 1John F. Rex appointed Chief Financial Officer, replacing David S. Wichmann who remains President.
- 2John F. Rex's compensation includes an $800,000 base salary, a 115% target annual incentive, and $2.5 million in initial equity awards.
- 3Stephen J. Hemsley's SERP benefit was converted from a cash lump sum to 78,789 deferred stock units.
- 4All ten director nominees were re-elected at the 2016 Annual Meeting of Shareholders with significant shareholder support.
- 5Shareholders approved the company's executive compensation in a non-binding advisory vote.
- 6Deloitte & Touche LLP was ratified as the independent registered public accounting firm for fiscal year 2016.
- 7David S. Wichmann's employment terms and compensation remain unchanged following his transition from CFO to President.