Jul 26, 2018

Top health care CEOs made $1.7 billion last year

The 64 health care CEOs in the S&P 500 cumulatively made almost $1.7 billion in 2017, according to a new Axios analysis of their compensation. That total is 74% higher than the $949 million that is normally highlighted in company proxy documents.

The details: Within the compensation totals, Axios' Bob Herman calculated the actual realized gains of CEOs’ stock options and awards (shares that were actually exercised and taxed), versus the estimated fair value of their stock (a guess of future stock value that is prominently featured in SEC filings and headlines).

  • Actual realized gains is a more accurate representation of an executive’s take-home income.
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Data: Axios analysis of Securities and Exchange Commission filings. Chart: Andrew Witherspoon, Kerrie Vila, Lazaro Gamio/Axios

Winners: Neal Patterson, the former CEO of health IT firm Cerner, was the highest-paid health care CEO, with $148.6 million in compensation in 2017. Patterson died last year from cancer, so his stock ownership immediately vested. After him, these were the highest-paid CEOs based on actual realized gains:

  1. Leonard Schleifer, Regeneron: $95.3 million
  2. Dave Wichmann, UnitedHealth Group: $83.2 million
  3. Jeff Leiden, Vertex Pharmaceuticals: $78.5 million
  4. John Hammergren, McKesson: $63.2 million
  5. Mark Bertolini, Aetna: $58.7 million

The other side: Several company spokespeople said the CEO pay packages represent the companies’ strong stock market growth and years of awarded shares.

  • As an example, UnitedHealth spokesperson Tyler Mason said Wichmann’s pay “reflects the positive performance of the company over many years” and that Wichmann reinvested a lot of his payout into more UnitedHealth stock.

The bottom line: Many health care CEOs, and other top executives at large companies, make more than you think.

Go deeper: The entire S&P 500.

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Trump says he will campaign against Lisa Murkowski after her support for Mattis

Trump with Barr and Meadows outside St. John's Episcopal church in Washington, D.C. on June 1. Photo: Brendan Smialowski/AFP via Getty Images

President Trump tweeted on Thursday that he would endorse "any candidate" with a pulse who runs against Sen. Lisa Murkowski (R-Alaska).

Driving the news: Murkowski said on Thursday that she supported former defense secretary James Mattis' condemnation of Trump over his response to protests in the wake of George Floyd's killing. She described Mattis' statement as "true, honest, necessary and overdue," Politico's Andrew Desiderio reports.

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Trump visits Mattis and the Pentagon in 2018. Photo: Brendan Smialowski/AFP via Getty

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Why it matters: Current and former leaders of the U.S. military are drawing a line over Trump's demand for a militarized response to the protests and unrest that have swept the country over the killing of George Floyd by police.

New York Times says Tom Cotton op-ed did not meet standards

Photo: Avalon/Universal Images Group via Getty Images)

A New York Times spokesperson said in a statement Thursday that the paper will be changing its editorial board processes after a Wednesday op-ed by Sen. Tom Cotton (R-Ark.), which called for President Trump to "send in the troops" in order to quell violent protests, failed to meet its standards.

Why it matters: The shift comes after Times employees began a coordinated movement on social media on Wednesday and Thursday that argued that publishing the op-ed put black staff in danger. Cotton wrote that Trump should invoke the Insurrection Act in order to deploy the U.S. military against rioters that have overwhelmed police forces in cities across the country.