WellPoint CEO enjoys healthy 51% pay hike

[Gonad the Barbarian]

http://www.examiner.com/x-41993-LA-...e-Cross-clients-sick-over-39-premium-increase

WellPoint CEO Angela Braly received a 51% year-over-year pay increase, per an SEC filing on Friday. Ms. Braly’s overall compensation rose from $8.1 million in 2008 to $13.1 million in 2009.

The Associated Press reports that while her base salary rose less than one percent to just over $1.1 million, the bulk of her earnings derived from a $1.5 million dollar performance bonus and $10.2 million in restricted stock and stock options.

Last year WellPoint (NYSE: WLP) experienced record profits of $4.75 billion. While the company attributes its success to the sale of its NextRx subsidiary, even without the sale, the health insurer would have earned $2.7 billion.

Still, Ms. Braly’s healthy compensation increase might be ill-timed given recent public outrage over proposed premium increases. Early this year, WellPoint announced that, in order to secure shareholder profitability, it would raise insurance rates by 39% on individual policy holders in California.

Anthem Blue Cross covers eight million people in California and approximately 10% of them are individual policyholders—people who purchase coverage on their own and not through an employer. With 800,000 individual policy holders, Anthem Blue Cross covers more of these customers than any other insurer in the state.

In late January, Anthem delivered the bad news to the policyholders that rates would increase on March 1st. In the letter detailing the increase, the insurer also said: “Anthem Blue Cross will usually adjust rates every 12 months; however, we may adjust more frequently in accordance with the terms of your health benefit plan.”

In a February 11 letter to Health and Human Services Secretary Kathleen Sebelius, WellPoint claimed they lost money last year on the California individual insurance market. The company says that the sluggish economy caused many young and healthy customers to drop their individual coverage which left them with an older and sicker customer base. They also cite skyrocketing medical costs.

On February 28, Braly defended the premium increase to a congressional subcommittee:


Due to public and political criticism, Anthem has postponed the rate increase until May 1, 2010. Meanwhile, both U.S. and California government regulators are investigating the announced rate increase. Senator Diane Feinstein, D-CA, has recommended federal governmental authority to block “unjustified” premium hikes.

Really what is there to say. Our entire economy tanks and health insurance companies still make out like bandits. I'm not sure I'm entirely against for profit health insurance, but reading stuff like this really turns me off to the idea.

 

[blackangst1]

Seems fair to me. Wellpoint is up over 70% for the previous 52 weeks, and P&E is healthy. They've done well. 404 outrage not found.

 

[EagleKeeper]

The Auto industry sells vehicles.

They are starting to recover.
but they also have increased the costs of the vehicles every year.

Where is the outrage there.

The company increase their profits and the pay of the executive is based on the health of the company.

 

[Gonad the Barbarian]

People don't go bankrupt and/or die from not being able to afford a new car. That's where the outrage lies for those paying attention.

 

[highland145]

Seems fair to me. Wellpoint is up over 70% for the previous 52 weeks, and P&E is healthy. They've done well. 404 outrage not found.

Because of the sale of NextRX. Is she going to take a cut next year when there aren't other assets to sell?

Just pointing out but I don't want the govt in this decision process.

 

[Gonad the Barbarian]

Because of the sale of NextRX. Is she going to take a cut next year when there aren't other assets to sell?

Just pointing out but I don't want the govt in this decision process.

Someone besides the board and CEO need to be involved. This pay is getting out of control across all industries. But at least there people don't die so the CEO can buy an indoor pool.

 

[Descartes]

The Auto industry sells vehicles.

They are starting to recover.
but they also have increased the costs of the vehicles every year.

Whre is the outrage there.

The company increase their profits and the pay of the executive is based on the health of the company.

The issue of executive compensation is a hot button right now. Why there isn't outrage at the auto industry, I don't know.

Industries that affect the lives of every American will always be contentious. This is healthcare, oil, banking and probably a few others. No one feels the pain of a bad car like they do bad healthcare or their 401ks melting away, so when people see top executives making millions when they're suffering, it doesn't sit well.

It's class warfare really, and it won't change. You can never solve all inequities in a culture that promotes innovation and provides reward for the risk of doing so, and we wouldn't want to.

 

[Gonad the Barbarian]

I'm not sure I'd classify much of what we're rewarding as "innovation."

 

[highland145]

Someone besides the board and CEO need to be involved. This pay is getting out of control across all industries. But at least there people don't die so the CEO can buy an indoor pool.

I've suggested before that the UAW leave the auto industry and represent shareholders on wall st. In the short run, ceo pay would go down as the union blocked voted people off the board.

 

[Descartes]

I'm not sure I'd classify much of what we're rewarding as "innovation."

Me either, and that's part of the problem. There are exceptions, but most of the true innovation occurs in startups (with an exceedingly high fail rate) and mid-sized companies where CEO compensation doesn't even come close.

Many of our biggest corporations are little different than the government: Fat, slow, slow to adapt and big enough to set price controls that affect a significant percentage of the population. While small companies are trying to do more with less, big companies tend to do less with A LOT more and then reward one another when they make cuts that affect profits. It's a vicious cycle of accumulate/distribute like a stock with consumers paying the price.

You'd think we'd learn our lesson with the latest recession, but here we go again into the next bubble (healthcare).

 

[Hayabusa Rider]

Someone besides the board and CEO need to be involved. This pay is getting out of control across all industries. But at least there people don't die so the CEO can buy an indoor pool.

The 0.0001% that the execs make doesn't either.

 

[Genx87]

Someone besides the board and CEO need to be involved. This pay is getting out of control across all industries. But at least there people don't die so the CEO can buy an indoor pool.

How much do you make? And what is your job title? Once you let the govt dictate to one group what they can make it will filter down the line. It always does. Just ask the middle class how that income tax on the top 2% of income earners worked out about 90 years ago.

 

[CycloWizard]

Someone besides the board and CEO need to be involved. This pay is getting out of control across all industries. But at least there people don't die so the CEO can buy an indoor pool.

Why? Why is it any of your business?

I've yet to see anyone hold a gun to someone else's head to make them take out a health insurance policy. However, in order to prevent just this sort of outrage, the government will be doing that to every American very soon.

 

[WHAMPOM]

http://www.examiner.com/x-41993-LA-...e-Cross-clients-sick-over-39-premium-increase



Really what is there to say. Our entire economy tanks and health insurance companies still make out like bandits. I'm not sure I'm entirely against for profit health insurance, but reading stuff like this really turns me off to the idea.

Remember when the majority of health insurance companies were non-profit and worked to get the best medical care/per-buck for their policy holders?

 

[blackangst1]

How much do you make? And what is your job title? Once you let the govt dictate to one group what they can make it will filter down the line. It always does. Just ask the middle class how that income tax on the top 2% of income earners worked out about 90 years ago.

First they came for the Jews and I did not speak out because I was not a Jew.

Then they came for the Communists and I did not speak out because I was not a Communist.

Then they came for the trade unionists and I did not speak out because I was not a trade unionist.

Then they came for me and there was no one left to speak out for me.

 

[Gonad the Barbarian]

First they came for the Jews and I did not speak out because I was not a Jew.

Then they came for the Communists and I did not speak out because I was not a Communist.

Then they came for the trade unionists and I did not speak out because I was not a trade unionist.

Then they came for me and there was no one left to speak out for me.

Yeah, poor persecuted multimillion dollar CEO's.

 

[GuitarDaddy]

Why? Why is it any of your business?

I've yet to see anyone hold a gun to someone else's head to make them take out a health insurance policy. However, in order to prevent just this sort of outrage, the government will be doing that to every American very soon.

They don't need to hold a gun to my head, where I work it is a condition of employment.
If you want to work here insurance isn't a choice, you pay for the plan(s) they offer or you prove you have coverage through another plan or you don't work here.

So I don't know what your talking about, insurance is already mandated to me.

And the only thing insurance companies "innovate" is new and improved ways to relieve people of their money.

Anybody who actually thinks insurance companies add anything productive to our economy is either on the payroll or on the take.

 

[ElFenix]

so that's like... a dollar per covered person?

 

[CycloWizard]

They don't need to hold a gun to my head, where I work it is a condition of employment.
If you want to work here insurance isn't a choice, you pay for the plan(s) they offer or you prove you have coverage through another plan or you don't work here.

So I don't know what your talking about, insurance is already mandated to me.

So where is "here?" And if an insurance mandate is such a terrible thing, why are you so outspoken in favor of it? You want everyone else to have to put up with the same idiotic policy that you're under right now?

 

[Patranus]

Not really sure what the big deal is.
The company offers products people want.
They are doing a successful job selling these products.
The success in selling products equates to a reward for management.

If people didn't want their products they would purchase products from different companies. If that happened, the company would lose money and the CEO would be out of a job.

 

[boomerang]

So where is "here?" And if an insurance mandate is such a terrible thing, why are you so outspoken in favor of it? You want everyone else to have to put up with the same idiotic policy that you're under right now?

Misery loves company. He said it himself, he doesn't have to work there. Which is good because he has a choice. With the full implementation of the health care bill, we won't have a choice. We'll be paying up one way or another.

 

[cubby1223]

Damn athletes making $20m/year for hitting a ball with a stick!

Damn actors making $20m for one movie!

The simple truth is you cannot dictate prices. You cannot dictate salaries.

Stop being outraged just because someone else tells you you must be outraged.

If you don't like WellPoint, then don't buy from WellPoint.

 

[EagleKeeper]

People don't go bankrupt and/or die from not being able to afford a new car. That's where the outrage lies for those paying attention.

So a company should sacrifice itself for a person.

I do not see the government doing that.
I do not see the Dems doing that.

Why should a company do such?

 

[cubby1223]

People don't go bankrupt and/or die from not being able to afford a new car. That's where the outrage lies for those paying attention.

7,000 people die in this country on a daily basis. It's a part of life. And bankruptcy is not the end of the world.

Curious how much of your own earnings do you donate to charities who help people with medical expenses? No one is stopping you from helping them.



Did you realize that Obama has spent more taxpayer money flying Air Force One around the country selling his health care reform, than what this CEO earns for a salary? And you're going to sit there from behind your keyboard and lecture us on how the government can manage funds better than private insurance companies?

 

[Gonad the Barbarian]

So a company should sacrifice itself for a person.

I do not see the government doing that.
I do not see the Dems doing that.

Why should a company do such?

Hence the argument why health insurance companies shouldn't be for profit in the first place.