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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  • It said WellPoint will take a CHARGE of $24 million not save $24 million. This charge comes from the severance and other costs.
  • 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.
  • 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.
  • It's ok. spend twice as much. The government will bail them out.
  • 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.
  • 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.
  • Do they pay these people so much just to keep them from telling what they know?
  • Insurance execs: Thieves.

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  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

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