In a Nov. 22 Securities and Exchange Commission filing, Humana updated its severance policy for executives terminated within two years of a “change in control.” The revision fueled analysts’ speculation the payer is mulling a merger, especially since Humana is selling its long-term care insurance business and cutting about 2,700 jobs.
Under the revised severance policy, eligible executives would get a lump sum pay of up to double what their target incentive compensation and their annual base salary total. The lowest compensation package could ring in at more than $2 million, according to the report.
Humana said the filing was routine. Tom Noland, a spokesperson for the payer, told Insider Louisville the “change in control approach had not been refreshed since 2011, and this revision aligns us with market best practices.”
The policy is effective Jan. 1.
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