Clover Health Investments CEO Vivek Garipally was the highest-paid CEO of publicly traded US health insurers in 2021, Friday report from S&P Global Market Intelligence. Meanwhile, former Centene CEO Michael Naidorf was the only one to take a year-over-year compensation cut, though unlike Clover Health, Centene’s stock actually rose over the previous 12 months.
The ranking is based on total adjusted compensation for companies with a large percentage of revenue derived from managed care premiums and listed on one of the major U.S. stock exchanges as of December 31, 2021. Data was collected on August 17.
Garipalli opted to forgo any compensation other than equity awards for 2020 and 2021. However, he received $389.6 million in stock in 2021. Clover Health announced in August that he would step down as CEO in 2023 d., but will work with the company as its executive chairman. In the last 12 months of Garipalli’s tenure, the company’s shares have lost more than half their value – falling to a low of $2.93 on Monday from a high of $8.12 on August 23, 2021.
The second highest paid CEO is George Mikan of Bright Health Group. His compensation reached $180.8 million in 2021, a more than 3,000% increase from $5.5 million in 2020. Mikan received $2.3 million in cash compensation, $94.8 million in equity, and 83, $7 million in vested options. Shares in Bright Health Group have fallen sharply over the past 12 months, falling from $10.31 on August 23 last year to $1.67 on Monday.
Oscar Health CEO Mario Schlosser is in third place with $60.8 million. He also had the biggest percentage change over the year, increasing his compensation a whopping 10,674.1% in 2021. He was paid $600,000 in 2020. Shares of Oscar Health were at $6.98 on Monday, down from $12.99 on August 23, 2021
Mikan had the second largest percentage change, the report found. Alignment Healthcare CEO John Kao was third with $46 million in 2021, up 1,093.7% from $3.9 million in 2020. Alignment shares fell to $15.9 on Monday from 17 $.88 on August 23, 2021.
Neidorff, Centene’s former CEO who died in April, was the only one to have his compensation cut during the year. His salary fell 17.3% in 2021 to $20.6 million, compared to $25 million in 2020. Centene shares were at $96.8 on Monday, up from $64.53 on Aug. 23, 2021 .
Below are the 10 highest paid CEOs of US listed health insurers in 2021:
- Vivek Garipally, Clover Health Investments: $389.6 million (the stock fell to $2.93 on Monday from $8.12 on August 23, 2021)
- George Mikan, Bright Health Group: $180.8 million (the stock fell to $1.67 on Monday from $10.31 on August 23, 2021)
- Mario Schlosser, Oscar Health: $60.8 million (the stock fell to $6.98 on Monday from $12.99 on August 23, 2021)
- John Kao, Alignment Healthcare: $46 million (the stock fell to $15.9 on Monday from $17.88 on August 23, 2021)
- Michael Neidorff, Centene: $20.6 million (stock rose to $96.8 on Monday from $64.53 on August 23, 2021)
- Joseph Zubrecki, Molina Healthcare: $20 million (the stock rose to $329.5 on Monday from $262.82 on August 23, 2021)
- David Cordani, Cigna: $19.9 million (the stock rose to $291.5 on Monday from $203.89 on August 23, 2021)
- Gail Boudreaux, Elevance Health: $19.3 million (stock rose to $507 on Monday from $373.13 on August 23, 2021)
- Andrew Whitty, UnitedHealth Group: $18.4 million (stock rose to $544.57 on Monday from $419.75 on August 23, 2021)
- Bruce Broussard, Humana: $16.5 million (stock rose to $500.92 on Monday from $411.67 on August 23, 2021)
It should be noted that in the list above, the so-called disruptors of the insurance industry are those whose CEOs appear to be profiting financially, even though their stock performance leaves much to be desired.
Photo: Feodora Chiosea, Getty Images