LOUISVILLE, Ky. (WDRB) -- Humana Inc. CEO Bruce Broussard’s total pay remained essentially flat at $19.8 million in 2017, a year in which the Louisville-based company refocused its strategy after its failed merger with Aetna and shed thousands of jobs, all while continuing to out-perform the broader stock market.
Broussard’s pay rose slightly from $19.7 million in 2016, according to the company’s annual proxy statement filed with the U.S. Securities and Exchange Commission on Wednesday.
The bulk of Broussard’s compensation package is stock options and grants, which declined to $15.4 million last year, from $16.2 million in 2016. He made more, however, in non-stock incentive compensation, while his base salary rose slightly to $1.3 million in 2017.
Broussard's lieutenants saw bigger increases. Chief Financial Officer Brian Kane earned $5.6 million, up from $4.7 million in 2016, in part due to special awards given to retain key executives after the breakup of the Aetna deal in February 2017. Kane also got a 10 percent boost in his base salary, while Broussard and other top executives got only 3 percent, in recognition's of Kane's performance, the company said.
Humana CEO makes 344 times the typical worker
Broussard's $19.7 million in total pay was 344 times that of the median Humana employee, who earned $57,385.
Like other publicly traded companies, Humana was required for the first time to disclose the ratio of its CEO's compensation to that of the median worker.
The regulation stems from the 2010 Dodd-Frank financial reform bill, which Congress passed in the wake of the 2008 financial crisis. The SEC finalized the rule in 2015, but gave companies until this year to begin reporting the "CEO pay ratio" annually.
Humana said it calculated the median worker pay based on all 46,000 of its global employees -- including part-time, temporary and seasonal workers -- as of Dec. 31, 2017.
Humana's 344-to-1 pay ratio was well above the median 140-to-1 ratio among 356 public companies that responded to an anonymous survey by the executive compensation data firm Equilar.
Companies with more than $15 billion in annual revenue paid their CEOs more in relation to workers, with a 263-to-1 ratio, according to Equilar's survey. Humana's revenue was $54 billion in 2017.