Vivek Garipalli, chief executive of Clover Health Investments, was the highest-paid CEO among U.S. public health insurers in 2021 on Friday Report Discovered by S&P Global Market Intelligence. Meanwhile, former Centene CEO Michael Neidorff was the only one whose compensation fell year over year, although unlike Clover Health, Centene’s stock has actually increased over the past 12 months.
The ranking is based on the adjusted gross compensation of companies listed on one of the major U.S. stock exchanges as of December 31, 2021, that generate the majority of their revenue from managed care premiums. Data compiled on 17 August.
Garipalli has opted to forgo any compensation other than the 2020 and 2021 equity awards. However, he received $389.6 million in stock in 2021. Clover Health announced in August that he would step down as CEO in 2023 but would work with the company as executive chairman. Over the past 12 months of Garipalli’s tenure, the company’s shares have more than halved — from a high of $8.12 on Aug. 23, 2021, to a low of $2.93 on Monday.
The second highest paid CEO is George Mikan of Bright Health Group. His compensation is $180.8 million in 2021, an increase of more than 3,000% from $5.5 million in 2020. Mikan received $2.3 million in cash compensation, $94.8 million in equity and $83.7 million in options. Shares of Bright Health Group have plunged over the past 12 months — from $10.31 on Aug. 23 last year to $1.67 on Monday.
Oscar Health CEO Mario Schlosser came in third with $60.8 million. He also had the biggest annual percentage change, with a pay increase of 10,674.1% in 2021. He received $600,000 in 2020. Shares of Oscar Health were trading at $6.98 on Monday, down from $12.99 on Aug. 23, 2021.
Mikan had the second largest percentage change, the report found. Alignment Healthcare CEO John Kao ranks third with $46 million in 2021, up 1,093.7% from $3.9 million in 2020. Shares of Alignment fell from $17.88 on Aug. 23, 2021, to $15.9 on Monday.
Former Centene CEO Neidorff, who died in April, was the only one whose pay fell year-over-year. His salary will drop 17.3% to $20.6 million in 2021, compared to $25 million in 2020. Shares of Centene traded at $96.8 on Monday, up from $64.53 on Aug. 23, 2021.
Here are the 10 highest-paid CEOs of U.S. public health insurers in 2021:
- Vivek Garipalli, Clover Health Investments: $389.6 million (share price fell from $8.12 on Aug. 23, 2021 to $2.93 on Monday)
- George Mikan of Bright Health Group: $180.8 million (share price fell from $10.31 on Aug. 23, 2021 to $1.67 on Monday)
- Oscar-Healthy Mario Schlosser: $60.8 million (share price fell from $12.99 on Aug. 23, 2021 to $6.98 on Monday)
- John Kao, Alignment Healthcare: $46 million (share price fell from $17.88 on Aug. 23, 2021 to $15.9 on Monday)
- Centene’s Michael Neidorff: $20.6 million (stock up from $64.53 on Aug. 23, 2021 to $96.8 on Monday)
- Joseph Zubretsky, Molina Healthcare: $20 million (stock increased from $262.82 on Aug. 23, 2021 to $329.5 on Monday)
- Cigna’s David Cordani: $19.9 million (stock up from $203.89 on Aug. 23, 2021 to $291.5 on Monday)
- Gail Boudreaux, Elevance Health: $19.3 million (stock increased from $373.13 on Aug. 23, 2021 to $507 on Monday)
- Andrew Witty, UnitedHealth Group: $18.4 million (stock increased from $419.75 on Aug. 23, 2021 to $544.57 on Monday)
- Bruce Broussard, Humana: $16.5 million (stock increased from $411.67 on Aug. 23, 2021 to $500.92 on Monday)
It’s worth noting that in the list above, the so-called insurance disruptors are those whose CEOs appear to be winning financially, even though their stock performance leaves a lot to be desired.
Image: Feodora Chiosea, Getty Images
