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UnitedHealth Group ex-CEO forfeits $620 million
William McGuire, M.D. former chief executive of UnitedHealth Group, agreed to one of the largest executive-pay givebacks in history, forfeiting $620 million in stock option gains and retirement pay, to settle civil and federal claims against stock-option backdating. The final outcome, however, remains uncertain as of Dec 28.
A year ago, McGuire was ousted from his position as one of the most successful and highest paid executives in the U.S. because of the back-dating scandal. More than 80 corporate officials lost their jobs in the scandal.
He still retains about 24 million stock options that currently could be cashed in for a gain of about $800 million, on top of the $500 million in pay he received from UnitedHealth between 1991 and 2006. A freeze on these assets was continued by U.S. District Judge James Rosenbaum in a Dec 26 ruling, pending a decision by the Minnesota Supreme Court on whether he has the power to examine the settlement beyond just rubber-stamping it. State courts give varying degrees of deference to special litigation committees.
READ ENTIRE STORY: http://www.aapsonline.org/newsoftheday/007