Recession changed insurance CEO pay: 5 things to know

CEOs leading insurance companies, including health plans, saw their compensation packages altered after the 2008 financial crisis, according to a new study from the Florida International University College of Business.

Five things to know:

1. The study examined data on compensation packages for 134 CEOs at publicly traded insurance companies from 2001-16. Seventy-three insurance companies were studied by the Miami-based researchers.

2. The researchers found after the recession, the average size of bonuses fell by two-thirds.

3. However, stock award and nonequity incentives doubled. Additionally, option awards rose almost 70 percent higher than the pre-recession era.

4. The study authors determined this change tied compensation more closely to firm performance.

5. Deanne Butchey, PhD, a lecturer at FIU and an author of the study, concluded: "We found that the shift in executive compensation was a response to the crisis. We also found that when the CEO held a dual role, acting as also the chairman of the board, (s)he was better able to influence salary, bonuses, and long-term incentives. This influence declined in the post-crisis period."

Read more here.

More articles on payers:
CMS releases proposed Medicare Advantage rule: 5 things to know
Dignity, Cigna fight leaves 16,600 patients in limbo
Horizon BCBS of New Jersey CEO steps back

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.