Some CEOs Log High Pay in 2024 Despite Insurers’ Medical-Cost Woes

Chief executives of major publicly traded health insurance companies logged high pay in 2024 despite sometimes-disappointing financial performances, according to AIS Health’s analysis of proxy statements the companies submitted to the Securities and Exchange Commission. The CEOs of the seven major national insurers — UnitedHealth Group, The Cigna Group, Molina Healthcare, Centene Corp., Elevance Health, Inc., CVS Health Corp. and Humana Inc., earned a combined $145,996,812 in total compensation in 2024. UnitedHealth Group CEO Andrew Witty topped the list with $26.3 million in total compensation, an 11.9% increase year over year. The bulk of his payout came in stock awards, which totaled $17.2 million in 2024. His compensation has risen 42.9% since he took the role as president and CEO on Feb. 3, 2021. The nation’s largest health care company, UnitedHealth brought in a record $400.3 billion in revenue in 2024 amid a year of crisis, including its Change Healthcare unit experiencing the largest health care data breach of all time and the shooting death of its top insurance executive. Analysts deemed UnitedHealth’s first-quarter 2024 earnings report “better than feared” amid heightened utilization in its Medicare Advantage business, and they gave its second-quarter results middling marks. But the disclosure of higher-than-expected medical loss ratios (MLRs) in both the fourth quarter of 2024 and the first quarter of 2025 caused UnitedHealth’s stock price to plummet. Cigna CEO David Cordani saw his total compensation package rise more than 10.4% year over year, reaching $23.2 million in 2024. In its 2024 fourth-quarter earnings release, the company reported that it recorded a 27% year-over-year increase in revenue. But the insurer’s stock took an 11% tumble on news that it missed its fourth-quarter adjusted earnings per share (EPS) and MLR targets. Centene CEO Sarah London earned $20.6 million in total compensation in 2024, representing an 11.02% increase over 2023. Since she was appointed president and CEO in March 2022, her compensation has risen over 55.5%. Centene’s high first-quarter Medicaid MLR worried investors, and its overall MLR in the second quarter was higher than expected. But the firm beat Wall Street expectations in the third and fourth quarter. Molina CEO Joseph M. Zubretsky saw a slight increase in his total compensation, earning $21.9 million in 2024. Molina, one of the largest managed Medicaid insurers in the U.S., beat expectations in its second and third-quarter earnings reports, yet it had a “disappointing” fourth-quarter performance driven by higher-than-anticipated care utilization among its members. Elevance Health CEO Gail Boudreaux saw her compensation drop by almost 6.5% in 2024 compared to 2023. That was largely due to a decline in her non-equity incentive plan compensation, which represents cash annual incentive plan awards earned as a percentage of their respective target awards, according to the company’s proxy statement. The insurer posted solid results in the first quarter and second quarter of 2024, but it struggled with rising MLRs in the third quarter and fourth quarter. Meanwhile, after several disappointing quarters that were mostly due to challenges in its Aetna segment, CVS replaced its President and CEO Karen Lynch with David Joyner, president of CVS Caremark, in October 2024. Joyner earned $17.8 million in 2024, while Lynch logged $23.4 million. Humana’s new CEO Jim Rechtin earned over $15.5 million since he assumed the role in July. In January 2024, the insurer surprised investors when it lowered its adjusted earnings per share guidance to about $16 for the year, down significantly from its previous estimate of about $25. Though still facing challenges in Medicare Advantage market, the insurer reported fourth-quarter earnings that slightly exceeded analyst expectations. [[INFOGRAPHIC_1]]