Mar 2, 2018 - Health

Cigna CEO cashed out $44 million in 2017

Cigna CEO David Cordani talks in a board room.

Cordani has led Cigna for more than eight years. Photo: Scott Eells / Bloomberg via Getty Images

Cigna CEO David Cordani made $43.9 million in 2017, according to a federal securities filing. That amount reflects the stock awards and options that Cordani actually cashed out.

The big picture: Cordani was in the spotlight a lot last year. He broke off the health insurer's merger with Anthem after feuds plagued both sides. Cigna is suing Anthem for almost $15 billion "as a result of the failed merger process," and a trial for the case is scheduled for 2019.

Buried in the weeds: The Securities and Exchange Commission now requires publicly traded companies to report CEO pay ratios, which show how much the average company employee makes compared with the CEO.

  • The median annual compensation of a Cigna employee was $63,010 in 2017.
  • Cigna calculated the CEO pay ratio at 279:1 (for every $1 the average worker makes, Cordani gets $279).

Yes, but: That's not entirely accurate. Based on SEC rules, the reported ratio is based on the estimated fair value of Cordani's stock instead of the actual realized value.

  • Using Cordani's $43.9 million compensation total, Cigna's CEO pay ratio was 697:1.

Go deeper: The sky-high pay of health care CEOs.

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