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CEOs at some of the nation\u2019s largest insurance companies raked in tens of millions of dollars apiece last year, with insurtech leaders\u00a0easily topping the list in terms of\u00a0total compensation, according to data AIS Health published this month.<\/p>\n
Clover Health awarded CEO Vivek Garipalli\u00a0with $389.6 million in total compensation, which consisted entirely of stock awards, in 2021, according to the AIS Health analysis\u00a0of insurance company documents and regulatory\u00a0filings.<\/p>\n
Since going public in January 2021, Clover Health suffered financially; the company reported\u00a0a net loss of $75.3 million in the third quarter. \u00a0As a result, Garipalli will likely only see a fraction of those stock awards, said Ari Gottlieb, principal at A2 Strategy Group. \u201cYou take them for what they are, which is these are fantasy numbers for fantasy companies,\u201d he said.\u00a0<\/p>\n
Clover Health\u00a0shares\u00a0closed at $1.13 on Friday, a 93% plunge from its $15.30 initial public offering.<\/p>\n
Clover Health announced in August that President\u00a0Andrew Toy will replace Garipalli as CEO on Jan. 1. The company did not immediately respond to a request for comment.<\/p>\n
Similarly, Oscar Health\u00a0awarded CEO Mario Schlosser with $60.8 million in total compensation, also largely based on stock awards. The company announced last month that it would exit almost all\u00a0Medicare Advantage markets next year.<\/p>\n
Oscar Health closed at $2.68 Friday, a 94% decline since its shares debuted in March 2021.<\/p>\n
“Our executive compensation program, which includes Mr. Schlosser, follows the same principles we apply to our broader employee compensation program,” an Oscar Health spokesperson wrote in an email.\u00a0“It includes a mix of base salary that recognizes their individual roles and responsibilities, an annual bonus tied to our annual goals and equity grants tied to our longer-term business goals.”<\/p>\n
Bright Health Group’s compensation package for\u00a0CEO Mike Mikan\u00a0last year was $180.8 million,\u00a0about 99% of which were stock and option awards. Bright Health recently raised $175 million to curb its financial losses, which exceeded $430 million in the third quarter. Bright Health shares closed Friday at 82 cents,\u00a095% lower than its $18 IPO in June 2021.<\/p>\n
Bright Health, which declined to comment, stands out in that it awarded Mikan a $1.3 million bonus despite the company\u2019s woes, and continues to give him more shares, Gottlieb\u00a0said.<\/p>\n
Newer companies tend to focus more on equity compensation and be conservative on salary so they can reinvest that cash into the business, said Ed Steinhoff, managing director at consulting firm Pearl Meyer.<\/p>\n
Among legacy insurers, Florida Blue and Centene\u00a0offered their top executives the highest compensation.<\/p>\n
Guidewell Mutual Holding, the holding company for Florida Blue, awarded CEO Patrick Geraghty\u00a0$24.6\u00a0million in total compensation,\u00a0including a $1.3 million base salary, a $4.8 million bonus and $18.5\u00a0million in other compensation, which typically includes additional executive benefits. His compensation grew 11.5% from 2020.<\/p>\n
Centene CEO\u00a0Michael Neidorff, who died in April,\u00a0received\u00a0$20.64 million in total compensation last year, including a $1.8 million base salary and $12.8\u00a0million in stock awards. Neidorff\u2019s compensation declined 17.3% from the prior year.<\/p>\n
Here is a summary of how much other large health insurance companies compensated their chief executives in 2021:<\/p>\n