Cigna Corp. CEO David M. Cordani had a 68 percent decline in pay last year with compensation totaling $3.97 million, not including $9 million in stock and stock options which have value in the future when the stocks vest and options are exercised, according to a filing Friday with the U.S. Securities and Exchange Commission.
Cordani’s compensation last year included $1 million in a base salary, $2.6 million in cash incentives, $253,478 in value realized from exercising previously granted options and $110,740 in “other compensation.” This does not include a gain of $123,085 in his pension value.
Cordani’s pay in 2011 was $12.5 million, not including $8.4 million in stocks that would vest later and options with a theoretical value. The actual value of options depends on the company’s performance.
Cigna spokesman Jon Sandberg said Cordani’s pay was affected by a change in U.S. Securities and Exchange Commission rules related to compensation.
“The difference in compensation for Mr. Cordani in 2012 as compared to 2011 is a function of SEC rules relating to reporting of long term incentive grants and pay because Cigna changed its long-term incentive program in 2010,” Sandberg said.
Chief Financial Officer Ralph J. Nicoletti’s pay package last year was $1.4 million, not including $1.9 million in stocks and stock options which will provide value in future years when the stocks vest and the options are exercised.
General Counsel Nicole S. Jones’ compensation was $1.4 million, not including $1.9 million in stock and stock options.
Cigna President Matthew G. Manders’ compensation was $1.32 million, not including $1.35 million in stock and stock options.
Herbert A. Fritch, president of HealthSpring which Cigna agreed to buy in late 2011, had a pay package last year of $4.2 million, not including $7.35 million in stock and stock options.
Last year was an improvement for the health insurer. Total revenue was up to $29.1 billion last year compared with $21.9 billion in 2011. Shareholders’ net income was $1.62 billion last year, up from $1.26 billion in 2011.