UnitedHealth Appoints CEO Hemsley with $1 Million Annual Base Compensation

 (Reuters) — UnitedHealth Group has reinstated former CEO Stephen Hemsley, 72, as chief executive amid a wave of recent crises. Hemsley, who led the company from 2006 to 2017, returns at a challenging moment marked by a cyberattack, federal probes, soaring healthcare costs, and the recent killing of a senior executive.

As part of his compensation, Hemsley will receive a $1 million annual base salary and a one-time $60 million equity award in the form of stock options that vest over three years. He will not receive an annual cash bonus or additional equity awards during that time. He will, however, receive executive-level security benefits.

His return follows the abrupt exit of CEO Andrew Witty, announced Tuesday. UnitedHealth also pulled its financial forecast, citing surging medical expenses, which triggered a nearly 18% drop in the company’s stock. No details were provided regarding Witty’s severance.

Hemsley, widely credited with building the company’s Optum division, will remain chairman of the board but will forgo board compensation during his tenure as CEO.

(Reporting by Sriparna Roy in Bengaluru; Editing by Devika Syamnath)