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Departing CEO Braly due to get $15M exit package

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WellPoint Inc. is due to give about $15 million in cash, stock and benefits to former CEO Angela Braly on her way out the door, based on the terms of a separation agreement filed by the company Wednesday morning.

The payout could be more or less lucrative based on the company's future stock performance.

The Indianapolis-based health insurer announced Tuesday that Braly had stepped down as CEO after multiple investors had called for her ouster because of companywide mistakes and lower-than-expected profits.

Braly, 51, was the third-highest paid CEO in Indiana last year, behind Simon Property Group Inc.'s David Simon and Cummins Inc.'s Tim Solso. In 2011, she received salary, stock and perks worth $13.3 million. She received slightly more than that in 2010.

Forbes magazine ranked her the 182nd highest paid CEO in all of corporate America this year. Forbes also ranked Braly as the 24th most powerful woman in the world.

Braly's separation agreement allows her to remain an employee at WellPoint until Dec. 31. She will have no formal role with the company, but the agreement calls for her to be available if needed.

WellPoint’s board of directors will  use a search firm to find Braly’s replacement among internal and external candidates. The insurer will be led on an interim basis by John Cannon, WellPoint’s general counsel and secretary.

By staying until Dec. 31, Braly will receive more than the last four months of her salary and benefits, which are worth at least $400,000. She will also qualifiy for an annual performance bonus, which in 2011 totaled $1.9 million. And Braly will see a stock grant of 89,331 shares vest in December, which as of Tuesday was worth $5.1 million.

That stock award has only become more lucrative since news of her departure hit. WellPoint's stock climbed as much as 8.8 percent on Wednesday—the company's largest intra-day trading move in a year. It closed the day at $61.80, up 7.7 percent.

Lastly, Braly’s employment agreement promises a cash payout equal to double her $1.14 million salary and double her annual target bonus. She also will receive health insurance coverage for two years after her departure, an additional contribution to her retirement plan and other perks. In its proxy statement filed in April, WellPoint estimated the value of that package at up to $7.7 million.

In addition to the roughly $15 million exit package, Braly will receive another 51,400 stock options on Sept. 1. Those options were underwater as of Tuesday, but Wednesday's stock surge sent some of those options back into the money.

Braly’s separation agreement gives her one to six years to convert her vested stock options into WellPoint stock. It's not clear what time limit Braly faced before that agreement, but many companies require stock options to be exercised within a few months after an employee leaves. The value of Braly’s stock options, as of Tuesday, was $12.9 million.





 

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  • Fair Play
    She is responsible for outsourcing a LOT of jobs when she was at the helm of Wellpoint. She should be forced to divide the money with every employee she pink slipped to send their job overseas.
  • Agree
    I agree and who are by far the greediest organization in healthcare? Catholic Hospitals like Our Lady of the Lake in Baton Rouge LA. At least for profits are honest about their intent to make money.
  • So What
    So one employee of a multi-billion dollar company makes 13 million a year. She is the 184 highest paid executive. Why does that make health care worse than other industries? Was she over paid yes but not more than any other CEO in any fortune 500 company.
  • what is wrong with people?
    I'm not sure why this is such a surprise to anyone? When you can look off of the highway and see insurance company buildings as big as city blocks. In all of the entire healthcare cost issue no one really mentionswhere the real cost of healthcare is going like bonuses, pay offs for incompetent highly "educated" people who are frankly overrated and privileged, not to mention how "some" notice I said "some" of our doctors live in homes similar to if not mansions thinking they are Gods because they know how much we "need" them. It's all okay though right? After all these execs are probably in the choir at their respective churches. It's downright sickening. Let's not forget all those that were denied care by this same insurance company for one excuse after another. How could they "pay off" people they get rid of to keep them quiet about what really goes on if they didn't deny people the right to health care. What is a life anyway right??? Gross... Just gross. We need to stop healthcare insurance across the board. If no one had it and I mean no one... I think those prices would come on down a little. Pretty Sad...
    • more greed
      Is there anyone left who is still wonders why health insurance is so expensive? Capitalism may be based on greed, but it can work (and it used to work) with some moderation & humanity mixed in. Not any longer. American greed, no wonder the rest of the world perceives the American stereotype as greedy, self-centered and arrogant. The "have's" and the "have not's" is where we've been heading for many years, a 2-class system made up of the rich & the poor, and that is the definition of a third world country. If things continue down this path, and why shouldn't they, look out for social unrest. The rich become richer, the middle class becomes smaller, and the poor class is growing in numbers. While the democrats & republicans blame each other, greed grows without limits.
    • Obama
      Obama loves the insurance companies - both in bed together to screw the american worker
      • Confusion Across the Board
        After reading the posts here, I think people are asking very basic questions regarding executive compensation and the fact that many people are working very hard just to cover their family's healthcare costs. Fifteen Million Dollars sounds more like an Indiana Lottery Winner than a fired CEO. Maybe the Board of WellPoint should allow people to buy a chance at being CEO for a year. I believe that WellPoint could raise millions, and maybe, just maybe, an average person from an average family might actually perform better than another healthcare insurance carpetbagger.
      • And its only money, after all.
        And it's only money, after all.
      • Haves and have nots
        More and more it seems to be haves and have mores. And no one else.
      • Greed is a terrible thing
        Greed may be a terrible thing, but it is the basis of capitalism. What other basis is there?
      • Braly
        Obviously, Ms. Braly was better at negotiating a golden parachute for herself than she was at running the company. But then they all are. And its only money, after all.
      • Why we should vote for Obama
        Braly is a travesty in human responsibility all by herself...but ...the fact that the Board payed this only proves Obama's case to tax big business is correct !! Shame !!!
      • Greed Meets Need
        Health care used to be the charitable mission of various religious groups, such as Catholic nuns and Protestant Deaconesses. Someone figured out that people would pay to avoid dying prematurely and suffering unnecessary pain, so the cost kept going up to the point where people had to be insured for health care. It has now gotten ridiculously expensive, and now "investors" think they should get a piece of the action, even demanding that executives get fired for not delivering enough "profit" on health care. This is sick and immoral. They'll fight every effort to reign in costs, too, especially as the baby boomers age and need health care. When will people wake up?
        • Premiums up claims paid down ?
          How will new CEO satisfy Wall Street and increase profits ,shareprice and dividends ? Increase premiums or deny or delay claim payments or fire employees ? Probably all of the above. Greed is a terrible thing1125232ly
          • Really?
            Really? Most of us would just like a little raise now and then to offset the increase in healthcare insurance premiums! Oh, is this why they go up every year? Haves and have nots; it's coming to that...
            • Bad Joke
              Really? Most of us would be happy to get a little raise now and then, but then it is only negated by the increase in health care premiums! I wonder why?
            • Braly
              Not just insurance companies with ridiculous pay scales. If you enact laws to restrict pay then why not total government control. Doubt you personally would submit to mandatory wage restraint... Who would? School corp supers? Don't blame just the insurance companies and remember under Barrycare, insurance cos are to payout 85% of each $$ received. I think they were just a few % points over in 2011. Not bad.
            • Are You Kidding?
              I am sick. So she loses somewhere around $8M for the company and they pay her $15M to leave? @Terry.....most workers get their two weeks pay and no paid out vacation time.....and a max of $390 a week in unemployment (of which, I think, you have to prove that you should receive).
            • Wake-up America
              So any average worker who suddenly finds himself or herself terminated for cause, might get two week severance pay, and payment for vacation days accrued. Other than that, the Average Worker who is terminated for cause, gets squat. But a CEO who was making far too much for her lackluster performance is paid $15 Million Dollars. If you want to really change the healthcare system in America, reduce the power of insurance companies like WellPoint, that can afford a $15 Million Dollar payoff, not payout. This entire matter smells worse than a dairy farm.
              • Is it any wonder?
                Braly leaves because the board wants her out due to company wide mistakes and lower profits. Seriously does anyone really expect her to be consulted? No wonder insurance is so high and the insurance industry whines about so much. This is such a travesty!
              • Braly
                $15mil is the ultimate slap and is horse dung. Tell me how important she is when there are 100s of employees making more critical decisions. $15mil would sure help reduce premiums or better yet, start a free clinic for the middle class that work, pay taxes (yes PAY) and respect the law. Discriminatory? Heck yes but they are the very ones who support the country vs the pols that have created every mess we have. Incensed? Remember...god loves a workin' man (and lady).

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