IBJNews

Compensation for WellPoint's Braly rises 51 percent

Back to TopCommentsE-mailPrintBookmark and Share

The president and CEO of health insurer WellPoint Inc. received a 51-percent boost in compensation in 2009, mainly on larger grants of stock options and a performance bonus as profit and shares gained ground.

Angela Braly's overall compensation rose to $13.1 million from $8.7 million in 2008, according to a filing with the Securities and Exchange Commission on Friday. Her salary rose less than 1 percent to just over $1.1 million. She received a performance bonus of $1.5 million, a sharp jump from $73,810 a year prior.

The bulk of her compensation came from a 40-percent boost in restricted stock and stock options, totaling just under $10.2 million. The boost came as the company's stock price steadily gained ground over the year, closing 38 percent higher at $58.29.

Profit also surged in 2009 to $4.75 billion, or $9.88 per share, from $2.49 billion, or $4.76 per share, because of the sale of its NextRx subsidiary to Express Scripts. Even without the sale, the company said it would have earned $6.09 per share.

During the year, the value of Braly's perks rose 72 percent to $292,036, mainly on higher security costs for Braly as the debate over the health care overhaul became more and more heated.

WellPoint, based in Indianapolis, became a focal point for debate in February after complaints spread about planned rate hikes that average around 25 percent for individual insurance policies sold by the insurer's Anthem Blue Cross subsidiary in California.

The Obama administration criticized the increases and used them to re-ignite its push for reform, which passed Congress and was signed into law last month. Administration officials criticized the insurer for asking for such steep rate increases when it made a profit of $2.7 billion in the final quarter of 2009.

Braly, who testified before Congress about the rate hikes, and other WellPoint officials have said the soaring cost of medical care and the weak economy, which pushes healthy people to drop coverage, spurred the rate increases. They said WellPoint actually lost money on its California individual insurance business.

The company also noted that its profitable 2009 was stoked by the $2.2 billion it received from the sale of NextRx.

Braly has been CEO of WellPoint since May 2007. WellPoint, the largest health insurer based on enrollment, operates Blue Cross Blue Shield plans in 14 states and Unicare plans in several others.

The Associated Press formula for compensation is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.

ADVERTISEMENT

  • No where to hide
    How many small businesses are cancelling company sponsored plans because of increase in premiums of 20 to 30%. Now we know why. It is to pay CEO unwarranted and excessive pay.Betwen Obama and Braly employees do not have a chance at quality health care. I imagine they will still sleep well.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Thank you to the scientists who care enough to find a cure. We are so lucky that their intelligence has brought them to these understandings because it is through these understandings that we have new hope. Certainly the medicine will be expensive, these drugs usually are, especially the ones that are not mass produced. If I know anything from the walks that my town has put on for FA it is this: people care and people want to help. Donations and financial support can and will come to those who need it. All we need is a cure, the money will come. I mean, look at what these scientists have done thanks to the generosity of donors. 30 million dollars brings us here where we can talk about a drug's existence! There is so much to be frustrated about in this world, but this scientific break is not one of them. I am so happy for this new found hope. Thank you so much to the scientists who have been slaving away to help my friends with FA. We wish you speedy success in the time to come!

  2. I love tiny neighborhood bars-- when I travel city to city for work, it's my preference to find them. However, too many still having smoking inside. So I'm limited to bars in the cities that have smoking bans. I travel to Kokomo often, and I can promise, I'll be one of those people who visit the ma and pa bars once they're smoke free!

  3. I believe the issue with keystone & 96th was due to running out of funds though there were other factors. I just hope that a similar situation does not befall ST RD 37 where only half of the overhaul gets built.

  4. It's so great to see a country founded on freedom uphold the freedom for all people to work and patronize a public venue without risking their health! People do not go to bars to smoke, they can take it outside.

  5. So, Hurko, mass transit has not proven itself in Indy so we should build incredibly expensive train lines? How would that fix the lack of demand? And as far as those double decker buses to bus people in from suburbs, we can't fill up a regular sized buses now and have had to cancel lines and greatly subsidize others. No need for double decker buses there.

ADVERTISEMENT