Humana CEO's $19.7 million pay nearly double from previous year
Humana CEO Bruce Broussard’s total compensation nearly doubled last year to $19.7 million, the company disclosed in a regulatory filing Wednesday. Broussard’s haul came during a year in which the Louisville-based company’s planned sale to competitor Aetna began to fall apart amid antitrust concerns.
LOUISVILLE, Ky. (WDRB) -- Humana CEO Bruce Broussard’s total compensation nearly doubled last year to $19.7 million, the company disclosed in a regulatory filing Wednesday.
Broussard’s haul came during a year in which the Louisville-based company’s planned sale to competitor Aetna began to fall apart amid antitrust concerns. Humana and Aetna finally parted ways in February.
Humana’s stock shot up 14 percent in 2016 to close around $205 a share, compared to an 8.6 percent gain for the broader S&P 500 stock index. The company’s adjusted earnings per share of $9.45 also met the board’s target range of $8.41 to $9.59, according to the filing.
Humana’s stock has continued to climb since the Aetna deal fell through as executives have not ruled out being a takeover target for another company. The company’s shares traded at about $218 on Wednesday.
Company executives and board members have cashed out over $70 million in Humana stock in recent weeks.
Humana also laid off an unspecified number of employees in Louisville and other sites in a strategic realignment last month.
Pay up big over previous two years
Broussard’s 2016 pay was up significantly over the $10.3 million he earned in 2015 and the $10.1 million he got in 2014, according to Humana’s annual proxy statement.
When asked for comment, Humana spokesman Tom Noland referred to a reporter to the explanations included in the proxy filing.
The vast majority of Broussard’s compensation -- $16.25 million – represents the fair value of stock options and awards granted to the executive in 2016 and in prior years, according to the filing.
That includes about $7.5 million resulting from a change made last year in how the company calculates the payouts due to Broussard and a handful of other senior executives for some performance-based restricted stock units awarded in 2014.
The 2014 awards will vest in 2017, but they would have been worthless had the compensation committee of the company’s board not decided to “exclud(e) the impact of certain items” from the calculation.
The change related to “events (that) were not contemplated when establishing the relevant incentive targets for these awards, resulted from external events beyond our control, relate to the proposed transaction with Aetna, or relate to non-strategic assets of the Company.”
Broussard’s 2016 pay included perks like personal use of the company aircraft valued at $108,467; financial planning assistance ($19,326); and a $25,000 matching contribution to charity.
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