At four newly public startup insurers, CEOs’ total compensation in 2021 easily outstripped pay for executives at large, established payers like UnitedHealth Group and Cigna Corp. But the startups’ filings with federal regulators paint an unintentionally deceiving picture, as the CEOs are highly unlikely to collect hundreds of millions of dollars’ worth of stock awards.
Washington, DC, Dec. 9, 2022 — In AIS Health’s annual roundup of health insurer executive compensation data, four newly public startup insurers stand out. But the stock awards that are largely driving their eye-popping total compensation figures — such as Clover Health Investments Corp. CEO Vivek Garipalli’s $390 million or Bright Health Group, Inc. CEO Mike Mikan’s $181 million — are based in part on the firms’ initial public offering (IPO) stock valuations, which were many times higher than what their shares are now worth. So if Garipalli, for example, could cash in his stock award now, it might be valued closer to $20 million, one executive compensation expert says.
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