UnitedHealth Approves Pay Package For New CEO, Including $60M Equity Award: Retail Optimism Fades

The one-time $60 million equity award in nonqualified stock options will vest after three years, and no additional annual equity awards will be granted during the first three years of Steve Hemsley’s employment.

UnitedHealth Group, Inc.’s (UNH) board of directors on Wednesday approved an annual base salary of $1 million and a one-time $60 million equity award for the company’s new CEO, Steve Hemsley, as per a filing with the U.S. Securities and Exchange Commission.  

UnitedHealth announced Andrew Witty's resignation as CEO on Tuesday. The company added that Witty stepped down for personal reasons and will serve as senior advisor to Hemsley, who will take over as CEO, effective immediately.

Hemsley, previously the CEO of UnitedHealth from 2006 to 2017, will remain chairman of the Board of Directors.

The health insurer said that Hemsley will receive executive security and severance benefits, including two times annual base salary and two times bonus, if any, as part of his new role. However, the company said he will stop receiving compensation as a director.

The company added that the one-time $60 million equity award in nonqualified stock options will vest after three years, and no additional annual equity awards will be granted during the first three years of Hemsley’s employment.

The health insurer suspended its 2025 outlook on Tuesday, saying medical expenditures are now expected to be higher than anticipated. The firm, however, expects to return to growth in 2026.

On Stocktwits, retail sentiment around UNH fell from ‘extremely bullish’ to ‘bearish’ territory over the past 24 hours while message volume stayed within ‘extremely high’ levels.

UNH stock is down 38% this year and 40% over the past 12 months.

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