IBJNews

Outgoing WellPoint CEO made more than $20M last year

Back to TopCommentsE-mailPrintBookmark and Share

The compensation paid to outgoing Wellpoint Inc. CEO Angela Braly last year rose 56 percent, even as the company's shares slid on lower enrollment in its Blue Cross Blue Shield health plans.

Braly, who resigned in August, received 2012 compensation valued at $20.6 million, according to an Associated Press analysis of the company's annual proxy statement. Most of the increase came from stock options.

Braly, 51, became CEO in 2007. She received a $1.2 million salary last year, up slightly from $1.1 million in 2011. Her compensation included a performance-related bonus of nearly $1.4 million. More than 85 percent of Braly's compensation came from stock options and awards, which totaled $17.8 million. That total was up from about $10 million the year before.

She also received $179,618 in other compensation, including $3,700 spent on security measures for her and her family due to concerns about her safety "as a result of the national health care debate," according to the proxy, which was filed Tuesday with the Securities and Exchange Commission.

Health insurers have been criticized in recent years for churning out large profits and giving their executives big compensation hikes while the cost of insurance for many people continues to rise.

WellPoint plans covers more than 36 million people. Most people may not recognize the corporate name, but they might know the Blue Cross Blue Shield brand under which the company sells policies in 14 states, including New York and California.

Braly led WellPoint through several sizeable acquisitions during her tenure, including the $4.46 billion purchase of Medicaid coverage provider Amerigroup Corp., which closed after she left. Medicaid is the state-federal program that provides health coverage for needy and disabled people. Opportunities for insurers providing coverage through Medicaid are expected to grow as the health care overhaul expands starting next year.

But investors had grown frustrated with the company's performance, leading Braly to resign last August. WellPoint said July 25 that it was cutting its outlook after seeing enrollment slip. The insurer also reported that day second-quarter earnings that both fell and missed expectations.

The company blamed a sluggish economy for the sliding enrollment and said medical costs came in higher than it expected in May.

The insurer also took a $150-million hit in 2011 from its Medicare Advantage business, which involves privately run, subsidized versions of the government's Medicare program for the elderly and disabled people.

WellPoint wound up trumping Wall Street expectations in the final two quarters of 2012 and recorded its first quarterly, year-over-year increase in earnings since early 2011.

Even so, its shares fell 8 percent last year to close 2012 at $60.92, while the Standard & Poor's 500 index rose more than 13 percent.

WellPoint's 2012 earnings were nearly flat compared to 2011. The insurer earned $2.65 billion, or $8.18 per share, last year, as total revenue climbed 1.6 percent to $61.71 billion.

In February, WellPoint named veteran hospital executive Joseph Swedish to replace interim CEO John Cannon.

Cannon received a base salary of $744,232, plus a one-time bonus of $500,000.
 

ADVERTISEMENT

  • Interesting
    So the Board of Directors elected to terminate Braly and she, in turn, elected to fall on her sword. So what exactly did she bring to the table at WellPoint for a meager $20 Million? When you ask "What is wrong with the American Healthcare System?" look no further than Healthcare Insurance Companies.
  • Wellpoint
    What a huge load of mature. Frickin board should all be rejected by stockholders for this travesty. What a hose job for the all policyholders who get reamed with higher premiums each year.

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. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT