America’s largest private health insurance and pharmaceutical companies continued to take home millions in profits in 2017. And while the compensation for those at the top is outrageous, it is only the tip of the iceberg. Administrative waste – money spent on billing, coding, paperwork, and profits – totaled $504 billion in 2017. Pharmaceutical price gouging cost us an additional $113 billion. By implementing a single-payer national health program, we could direct these dollars where they are needed most: patient care.
Private Health Insurance Company CEOs
Mark T. Bertolini, Aetna ($225,744 per day)
Separately, Bertolini was given $14.9 million in stock and option awards, which will provide value in future years. Should CVS Health acquire Aetna (pending regulatory approval), the Wall Street Journal estimates that Bertolini could receive a golden parachute worth approximately $500 million.
Joseph Swedish, Anthem ($101,605 per day)
Separately, Swedish was given $12.6 million in stock and option awards, which will provide value in future years.
David Cordani, Cigna ($168,677 per day)
Separately, Cordani was given $12.0 million in stock and option awards, which will provide value in future years.
Bruce Broussard, Humana ($131,493 per day)
Separately, Broussard was given $15.5 million in stock and option awards, which will provide value in future years.
J. Mario Molina, Molina ($117,416 per day)
Note: J. Mario Molina was terminated effective May 2. His compensation total includes the severance package he received.
Stephen Hemsley, UnitedHealth Group ($103,754 per day)
Separately, Hemsley was given $11.1 million in stock and option awards, which will provide value in future years.
Pharmaceutical Company CEOs
Richard Gonzalez, AbbVie ($146,588 per day)
Separately, Gonzalez was given $12.2 million in stock and option awards, which will provide value in future years.
Geovanni Caforio, Bristol-Myers Squibb ($44,032 per day)
Separately, Caforio was given $12.7 million in stock awards, which will provide value in future years.
John Milligan, Gilead ($80,237 per day)
Separately, Milligan was given $10.6 million in stock and option awards, which will provide value in future years.
Alex Gorsky, Johnson & Johnson ($88,301 per day)
Separately, Gorsky was given $17.6 million in stock and option awards, which will provide value in future years.
Kenneth Frazier, Merck ($57,641 per day)
Separately, Frazier was given $12.6 million in stock and option awards, which will provide value in future years.
Ian Read, Pfizer ($101,818 per day)
Separately, Read was given $21.1 million in stock and option awards, which will provide value in future years.
Note: Annual CEO compensation includes salary, non-equity incentive pay, “all other compensation,” and the value of stock options exercised and stock awards that vested and were realized. (Sources: DEF 14A schedules, Securities and Exchange Commission; Bureau of Labor Statistics; Current Population Survey.) For reference, the median earnings of full-time wage and salary workers in 2017 was $44,720 ($172 per day).