Clover Health Investments CEO Vivek Garipalli was the highest paid CEO of any publicly traded US health insurance company in 2021 on a Friday report by S&P Global Market Intelligence found. Meanwhile, former Centene CEO Michael Neidorff was the only one to see a decrease in year-over-year compensation, although unlike Clover Health, Centene shares actually rose in the year. during the previous 12 months.
The ranking is based on the adjusted total compensation of CEOs of companies that derive a significant percentage of their revenue from managed care bonuses and are listed on one of the major US stock exchanges as of December 31, 2021. The data was compiled on August 17 .
Garipalli elected to forgo any compensation in addition to stock awards for 2020 and 2021. However, he received $389.6 million in stock in 2021. Clover Health announced in August that he would step down as CEO in 2023, but will work with the company as executive chairman. In the last 12 months of Garipalli’s tenure, the company’s shares have lost more than half their value – falling to a low of $2.93 on Monday from a high of $8.12 on Aug. 23, 2021.
The second highest paid CEO was George Mikan of Bright Health Group. His compensation reached $180.8 million in 2021, an increase of more than 3,000% from $5.5 million in 2020. Mikan received $2.3 million in cash compensation, 94 $.8 million in equity and $83.7 million in options granted. Shares of Bright Health Group have fallen over the past 12 months, falling from $10.31 on Aug. 23 last year to $1.67 on Monday.
Oscar Health CEO Mario Schlosser had the third-highest salary at $60.8 million. He also had the biggest year-over-year percentage change, increasing his compensation by 10,674.1% in 2021. He received $600,000 in 2020. Oscar Health stock was at 6 $.98 on Monday, down from $12.99 on Aug 23, 2021.
Mikan had the second biggest percentage change, according to the report. Alignment Healthcare CEO John Kao finished third with $46 million in 2021, an increase of 1,093.7% from $3.9 million in 2020. Alignment stock fell at $15.9 on Monday from $17.88 on August 23, 2021.
Neidorff, a former CEO of Centene who died in April, was the only one to see his pay cut year over year. His salary fell 17.3% in 2021 to $20.6 million, from $25 million in 2020. Centene stock was $96.8 on Monday, down from $64.53 on Aug. 23, 2021.
Below are the 10 highest paid CEOs of listed health insurers in the United States in 2021:
- Vivek Garipalli, Clover Health Investments: $389.6 million (stock fell to $2.93 on Monday from $8.12 on Aug 23, 2021)
- George Mikan, Bright Health Group: $180.8 million (stock fell to $1.67 on Monday from $10.31 on Aug 23, 2021)
- Mario Schlosser, Oscar Health: $60.8 million (stock fell to $6.98 on Monday from $12.99 on Aug 23, 2021)
- John Kao, Alignment Healthcare: $46 million (stock fell to $15.9 on Monday from $17.88 on Aug 23, 2021)
- Michael Neidoff, Centene: $20.6 million (stock rose to $96.8 on Monday from $64.53 on Aug 23, 2021)
- Joseph Zubretsky, Molina Healthcare: $20 million (stock rose to $329.5 on Monday from $262.82 on Aug 23, 2021)
- David Cordani, Cigna: $19.9 million (stock rose to $291.5 on Monday from $203.89 on Aug 23, 2021)
- Gail Boudreaux, Elevance Health: $19.3 million (stock rose to $507 on Monday from $373.13 on Aug 23, 2021)
- Andrew Witty, UnitedHealth Group: $18.4 million (stock rose to $544.57 on Monday from $419.75 on Aug 23, 2021)
- Bruce Broussard, Humana: $16.5 million (stock rose to $500.92 on Monday from $411.67 on Aug 23, 2021)
Notably, in the list above, the so-called insurance industry disruptors are those whose CEOs appear to be gaining financially even though their stock performance leaves much to be desired.
Photo: Feodora Chiosea, Getty Images
