The CEOs of Cigna and Humana both received hefty increases in total compensation for 2011, compared to their pay the year before, according to documents filed Monday with the Securities and Exchange Commission.
Cigna CEO David Cordani received $19.1 million in total compensation for 2011, which was a 25 percent increase from his 2010 pay. Although his base salary was only $1 million, Cordani's performance-based compensation and long-term incentives boosted that amount to $9.3 million for the year. Plus, Cigna gave Cordani a $2.8 million payout under a management incentive plan. Cordani also received $2 million from the exercise of options and $130,494 in so-called "other compensation," reported The Wall Street Journal.
Cordani's $19 million pay doesn't include his stock awards, valued at $5.8 million, or long-term option awards theoretically valued at $2.6 million. However, Cordani only will receive the long-term options if Cigna meets certain financial performance targets, the Hartford Courant reported.
Meanwhile, Humana reported that its CEO Michael McCallister received a 19 percent boost in compensation from 2010 to 2011. McCallister earned $7.3 million last year, including $1.1 million in base compensation, $1.3 million in stock awards, $2.3 million in options and $2.1 million in nonequity incentives, Business First reported. McCallister also reportedly gained $10.4 million by exercising certain options.
Despite that large payout to McCallister, Humana's new president, Bruce Broussard, earned more than the CEO, receiving $10.5 million in stock award and other compensation. Humana hired Broussard in November as president and named him the successor to McCallister, who has announced his retirement.