Former Chief Will Forfeit $418 Million

from NYTs

In one of the largest corporate pay give-backs ever, William W. McGuire, the former chief executive of UnitedHealth Group, has agreed to forfeit at least $418 million to settle claims related to back-dated stock options.

The payback is on top of roughly $198 million that Mr. McGuire, an entrepreneur who built UnitedHealth, had previously agreed to return to his former employer.

The total — $618 million — includes money that Mr. McGuire will return as part of separate settlements reached yesterday with the Securities and Exchange Commission and UnitedHealth shareholders. The forfeitures are the first time regulators have successfully employed corporate governance rules put in place after the collapse of Enron that force executives to disgorge ill-gotten gains. 

More here.

One Response to Former Chief Will Forfeit $418 Million

  1. MRC April 24, 2012 at 11:48 pm #

    What is disturbing about this story, is that a health care executive actually has over 600 million dollars to give back. Who was watching when this person was taking these paychecks, bonuses, and kickbacks. And despite the fact we want our healthcare companies and professionals to be successful and profitable should they really be exposed to this type of greed? Billions of dollars in gains going to executives in leather chairs making decisions that affect the way doctors operate and treat their patients. What we need is more ground up thinking and earning and less trickle down from our greedy executives who know less about medicine and more about financial loopholes.

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