Major payers spent relatively little on executive protection last year, but their approaches are likely to change, according to a review of annual proxy reports.
The murder of UnitedHealthcare CEO Brian Thompson in December sent shock waves through the industry and put a significant dent in the sense of anonymity many executives in the insurance industry believed they enjoyed.
Per UnitedHealth Group's 2024 proxy, it did not spend anything on security for Thompson. This tracks with police reports and video footage of the shooting, which show Thompson was walking alone in Manhattan when he was killed.
The proxy filing does detail nearly $1.7 million in spending on security for other executives, and it's unclear whether that was initiated following the shooting or whether it was in place throughout the year. UnitedHealth spent the largest sum on executive protection for Optum CEO Heather Cianfrocco, to the tune of $926,989.
UnitedHealth Group CEO Andrew Witty incurred $150,951 in security costs for 2024. Witty is also required to use the company's corporate aircraft for business travel and is encouraged to do so for personal travel, should the plane be available.
Witty did not use the plane for personal use in 2024, according to the filing. Aside from Witty, executives at the company are generally barred from using the corporate plane for personal trips unless they are granted an exemption or reimburse UnitedHealth for the costs of a flight.
Family members are allowed to join business trips if seats are available, given that it does not incur additional costs, UnitedHealth said.
"We believe that these security services are appropriate and necessary given the risks associated with executive officer positions at the company," the company wrote in the filing.
Other major insurers noted that they are set to beef up security given the climate in the industry. CVS Health, for instance, said in its proxy filing that it routinely evaluates and monitors its executive protection programs to account for external factors that may develop.
CEO David Joyner is required to have security protection at the helm of the company. But, "considering the recent events and increased safety concerns," the program has recommended enhanced security measures for top executives, such as home protection and cybersecurity measures that it covered the cost for.
"The company believes that the costs of the security measures were appropriate and necessary, particularly considering the heightened risk environment in the health care industry and its senior leaders," CVS said in the filing.
Joyner is also required to use the corporate aircraft for both business and personal travel for his safety, according to the filing, and will reimburse the company should personal travel expenses exceed $250,000 in a year. The CEO also uses a corporate driver for travel, per the proxy.
The filing disclosed that it spent $15,787 on personal use of the company plane; $7,713 for the use of a company car and driver; and $82,603 on home security for Joyner in 2024. Former CEO Karen Lynch was also afforded access to these programs for six months after her departure from the company, according to the filing.
During 2024, CVS spent $242,051 on personal aircraft use; $95,199 on the use of a company car and driver; and $44,645 on personal protection for Lynch. It also said it spent $56,610 on security for her during the six-month window after she stepped down from the CEO role.
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Cigna Group CEO David Cordani is also required to use the company's aircraft for both business and personal travel, which Cigna says both mitigates security concerns and increases efficiency in his travel schedule. In addition, using the company's plane improves confidentiality, too, the company said in its annual proxy.
Cordani incurred $231,008 in costs related to using the aircraft for personal travel. The company did not further disclose spending specific to executive protection, but said it does not include it within perquisites for executive compensation.
The company said "we view costs associated with their safety and security as being integrally and directly related to the performance of their executive duties."
Elevance Health discloses its executive security costs within the "other perquisites" category as part of its executive compensation breakdown. While it doesn't have a specific breakdown of those costs, spending in this category overall was limited in 2024.
For CEO Gail Boudreaux, for example, Elevance spent $93,387 on all compensation within this category. Peter Haytaian, president of Elevance's Carelon unit, saw the next-highest spending in this category at $36,213.
Within its executive security program, Boudreaux can use the corporate aircraft for up to 50 hours of personal flight time each year, assuming those trips do not exceed $199,000 in costs.
"In light of the enhanced security risk environment, we also provide certain enhanced safety and security benefits to our executive officers," the company wrote in the filing.
Centene disclosed in its annual proxy that it spent $69,133 in security services for CEO Sarah London. In the filing, the company noted that it began paying for security services for key leaders as of December 2024.
It also spent $98,358 in protection services for Chief Financial Officer Drew Asher and $33,244 for Chief Operating Officer Susan Smith, according to the filing.
In addition, London incurred $143,854 in expenses for personal aircraft usage. Centene said in the filing that the aircraft is available for security reasons but did not disclose whether London or other executives were required to use the plane.
"These protections are provided due to the range of security issues encountered by executive officers of large corporations in our industry," Centene said in the proxy.
Humana did not disclose additional detail nor spending on executive protection in its 2024 proxy, though it does note that executives can use its corporate aircraft for personal travel within certain limitations. CEO Jim Rechtin incurred $36,166 in costs for personal use of the corporate plane in 2024, and former CEO Bruce Broussard incurred $37,434 in such costs.