If you want to live in a 28,000 square foot home like this, take the job as CEO of one of our health care companies. Could the 
regulations be questioned? The law states: “Compensation is not excessive if reasonable”. Read it for yourself here.
New temporary regulations for non-profit health care compensation were issued in 2001. How is it working? Judge for yourself. Here are some annual compensation figures from 2008 for the CEO’s of our nations largest health care providers:
- Aetna – $23 Million
- Caremark RX – 78 Million
- Cigna – $25 Million
- Coventry – $14 Million
- Humana – $10 Million
- United Health – 13 Million
- Blue Cross Blue Shield of Massachusetts – 3.5 Million
In the case of Blue Cross Blue Shield of Massachusetts, the compensation represented a 26% increase when net income fell49%. Add to this the options available to these executives and you can see pretty clearly that something is broken. Bill McGuire of United Health has $1.6 billion in options. Ron Williams of Aetna has $174 million. Ed Crawford from Caremark Rx has $249 Million, Joel Gemunder from Omnicare has $110 million.
I’ll leave the commentary up to you.
