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UnitedHealth’s comeback CEO is getting $1 million a year and $60 million in stock options

Huge stock grants are taking over top CEO pay packages.

5/16/25 9:51AM

UnitedHealth is giving new CEO Stephen Hemsley more than $60 million to step back into the top job, eight years after he left the position in 2017. According to an SEC filing from the company on Wednesday, the 72-year-old will get $1 million a year, no annual bonus, and $60 million worth of stock options that will vest after three years.

Hemsley returned to UnitedHealth this Tuesday to replace Andrew Witty, who unexpectedly resigned owing to “personal reasons.” Before stepping aside in 2017, Hemsley led UnitedHealth for over a decade to become the healthcare giant that we know today, expanding the company into moneymaking areas like pharmacy benefits and helping shares climb more than 200% over his tenure.

The company has changed a lot since Hemsley was last at the wheel though, with shares heading toward their worst month in history, down more than 40% since mid-April. The new CEO signed during a hell of a week, after his predecessor’s abrupt departure, the company withdrawing full-year guidance, and The Wall Street Journal yesterday reporting that the insurer is under investigation for possible Medicare fraud.

Given that the options “will not have any value if the stock does not increase,” per a company spokesman, and that Hemsley would forfeit them if he’s removed or resigns before three years, the pay package will likely serve as pretty strong motivation for the new chief. The deal is just the latest example of a growing shift in how top execs are compensated.

Money talks

American CEOs are getting paid more than ever, with a record median pay of $16.8 million last year, largely because of big boosts from stock grants, a high-risk, high-return compensation plan with an incentive to meet stock prices. Take Coherent’s CEO James Anderson for example, who topped last year’s list of the highest-paid CEOs with a whopping nine-figure pay package. Some 99% of his pay consisted of stock grants, the value of which multiplied as the shares skyrocketed.

Max Knoblauch10/24/25

Premium seats help push airlines higher following third-quarter results

Shares of American Airlines are climbing toward the carrier’s best trading day since August 12, when ultra-budget rival Spirit issued its initial warning about its ability to survive. American’s shares are up more than 7% on Friday afternoon.

Investors’ optimism comes a day after American posted a better-than-expected full-year earnings forecast. In a call with investors, American said that it’s ramping up its premium cabin offerings.

“Our ability to grow capacity in premium markets will be further supported as we take delivery of new aircraft and reconfigure our existing fleet. These efforts will allow us to grow our premium seats at nearly two times the rate of main cabin seats,” CEO Robert Isom said. American CFO Devin May said that nose-to-tail retrofits of certain wide-body jets will bump the number of premium seats available on those planes by 25%.

Extra legroom has been a boon for major carriers, particularly this quarter. Delta Air Lines said its premium product revenue grew 9% in Q3, compared to a 4% drop in economy seat revenue. Similarly, United Airlines said its premium revenue grew 6%, outpacing economy. Shares of both airlines were up more than 3% on Friday.

Carriers with less exposure to first- and business-class tickets like Southwest Airlines and JetBlue didn’t see the same amount of momentum on the day.