Stephen Hemsley Returns as UnitedHealth CEO with $1 Million Salary and $60 Million Stock Award
UnitedHealth Group is bringing back Stephen Hemsley as CEO, offering him a $1 million annual salary and a one-time equity award worth $60 million as he steps in to lead the healthcare giant during a particularly challenging period.
Hemsley, 72, previously served as CEO for over a decade before stepping down in 2017. His return follows a turbulent time for UnitedHealth, which is grappling with several serious issues including a major cyberattack, ongoing federal investigations, escalating medical costs, and the recent shocking murder of a senior executive.
In addition to his salary and stock options, Hemsley will receive executive-level security benefits, according to a company filing released Wednesday.
The leadership shake-up comes just a day after the unexpected resignation of former CEO Andrew Witty. UnitedHealth also suspended its annual financial forecast, citing higher-than-expected medical expenses—a move that sent its stock tumbling nearly 18% on Tuesday.
Details about Witty’s severance or exit package have not been disclosed.
Hemsley, who is widely recognized for launching and expanding Optum—the company’s powerful health services arm—will also remain chairman of UnitedHealth’s board. However, he will no longer receive compensation for that role, nor will he be eligible for an annual cash incentive award.
The $60 million equity grant will come in the form of non-qualified stock options that vest over three years. UnitedHealth clarified that Hemsley won’t receive any additional equity awards during those initial three years in the role.
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