The anti-climactic news is out: UnitedHealth chairman and CEO Bill McGuire will be replaced because of questionable stock option practices. The Star Tribune reports that McGuire's current balance of unexercised options was valued at more than $1.6 billion at the end of last year. It also reports that "McGuire isn't the only one implicated in the options controversy. (Company president and COO Stephen) Hemsley (who will replace McGuire as CEO) held options valued at $663 million at the end of 2005. In addition, 10 outside members of the board have cashed in options worth more than $159 million in the past five years."
There are many followup questions. What were the ethics of the management team of this health care industry giant? How can so many become so wealthy from an industry that fails to reach more than 46 million Americans without insurance? Are these the practices that should be expected from a company that gains so much from the Medicare prescription drug plan and from the push for "consumer-driven health care" plans?
Posted by schwitz at October 16, 2006 07:25 AM | TrackBack