WellPoint brass and rank-and-file

January 16, 2009
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WellPoint unwittingly made an interesting point this morning when it announced it expects to save $24 million by laying off 600 workers.

Those 600 workers in affect are being valued at about half the $47.5 million in total compensation received by the companyâ??s top seven executives in 2007.

WellPoint in the past has gone to great lengths to emphasize the bulk of that executive compensation was generated by incentives based on company performance â?? in other words, that the execs earned their keep. In 2007, nearly 83 percent of their pay was in WellPoint stock and options grants.

How do you feel about these gaps? Are the brass worth the money?
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  • Frank BireleyJanuary 16, 2009 2:13 PM
    It said WellPoint will take a CHARGE of $24 million not save $24 million. This charge comes from the severance and other costs.
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  • Mike WellsJanuary 16, 2009 2:24 PM
    Worth 600 people? Of course not, They are hogs at the trough, they cost me and you and any one at Wellpoint defending that compensation I'm sure you will find is a hog at the trough also. I can almost hear the happy squeals.
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  • NormJanuary 16, 2009 2:58 PM
    You’re correct, Frank. My bad. How do you feel about the larger point, though? WellPoint is spending more than twice its $24 million charge-off to compensate the management team.
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  • RandomJanuary 16, 2009 4:30 PM
    It's ok. spend twice as much. The government will bail them out.
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  • anonymousJanuary 16, 2009 5:10 PM
    As an employee of a subsidiary of WellPoint, I find the executive compensation egregious. Larry Glasscock's was worse. Braley has done nothing but watch the share price lose over half of it's value.

    Of course, given the reform in health care on the horizon, I personally hope that WLP goes the way of the dinosaurs. They've done nothing (except pay lip service) to reduce the number of uninsured people in this country.
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  • happy in indyJanuary 16, 2009 5:35 PM
    WellPoint are you listening Bring back Ben Lytle. The company is going down the tubes by an over compensated executive staff which is also under experienced. Here's a great idea. The executives agree to forego their bonuses for this year?? It will never happen because WellPoint is known to have the greediest executives. They would rather let 600 little people go than make any personal sacrifices. I'm just waiting for another Enron under Braley's watch.
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  • JoyceJanuary 19, 2009 4:11 PM
    Do they pay these people so much just to keep them from telling what they know?
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  • Da HooeyJanuary 19, 2009 5:43 PM
    Insurance execs: Thieves.
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