Insurer Cigna gives CEO David M. Cordani 25 percent compensation hike in 2011
By Associated Press, Updated: Monday, March 5, 9:09 AM
Cigna Corp. CEO David M. Cordani’s total compensation climbed 25 percent last year, as the nation’s fourth-largest health insurer launched a $3.8 billion acquisition, and its stock outperformed the broader market.
Cordani, 46, received compensation valued at $18.9 million last year from the Bloomfield, Conn., company, according to an Associated Press analysis of a regulatory filing Monday.
That included the same salary Cordani received in 2010 — $1 million — and a performance-related bonus that climbed 27 percent to $9.3 million. Cordani’s stock and options awards totaled nearly $8.5 million, also up 27 percent from the previous year.
The executive, who became CEO in 2010, also received $62,865 for security alarm installation and maintenance in 2011 after the company gave him $48,733 for the same thing the previous year.
Health insurers have taken criticism in recent years for giving their top executives big compensation hikes while the cost of insurance continues to outpace inflation and growth in wages. But insurers have said executive compensation makes up a small part of their total expenses, and the biggest driver behind the growing premiums for their coverage is the spiraling cost of health care.
Cigna is the fourth-largest commercial health insurer in the United States, based on enrollment. The insurer said in a proxy statement filed with the Securities and Exchange Commission that Cordani’s leadership helped it grow last year.
Cigna’s earnings fell slightly last year to $1.33 billion, or $4.84 a share, while its medical membership rose slightly to 11.5 million people. Revenue climbed 3.5 percent to $22 billion in 2011.