Cigna CEO’s Compensation Last Year: $3.9 Million, Not Including $9 Million In Stock, Stock Options

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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.

About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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