Cigna newly retired CEO received $14.6 mil in 2009
NEW YORK -- Health insurer Cigna Corp.'s former CEO H. Edward Hanway earned $14.6 million in 2009, his last year on the job. That was up 28 percent from 2008, as the company awarded him larger bonuses, according to an Associated Press calculation of figures disclosed in a regulatory filing.
Meanwhile, David Cordani, who was promoted to CEO from chief operating officer to replace the retiring Hanway on Dec. 25, earned slightly less in 2009 than the year before.
Hanway last year received a performance-based cash bonus of $11.4 million, up from $6.7 million in 2008. His base salary grew to $1.2 million from $1.1 million.
Hanway also was granted stock-based awards valued at $1.8 million on the day they were granted. He received similar awards of $3.6 million the year before.
His other compensation rose to $220,000 from $22,000 after Cigna donated $200,000 to charity in honor of his retirement.
In 2008, Hanway's total compensation was $11.4 million. Hanway lead the Philadelphia insurer for almost 10 years before his retirement.
Meanwhile, Cordani's total compensation decreased to $6.5 million from $7 million.
Cordani's salary rose to about $751,000 in 2009 from $702,000 the year before. He received a $4.9 million performance-based cash bonus, compared with $1.6 million the previous year. But he received stock-based awards valued at only $811,000 when they were granted, compared with similar awards of $4.7 million the year before.
The stock and options were granted to Cordani on March 4, well before he was promoted to CEO.
The value of his other compensation rose to around $27,000 from $17,000.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.