The Association of U S West Retirees



McGuire can't use the UnitedHealth airplanes anymore
by Chris Snowbeck
St Paul Pioneer Press

Friday, December 7, 2007

Ah, the fine print.

On page 61 of the court document filed Thursday governing the settlement agreement between former chief executive officer William McGuire and Minnetonka-based UnitedHealth Group, are some choice details:

First, McGuire can't use the company's airplanes.

And second -- this one really hurts -- he must go out on the market and buy health insurance.

"Dr. McGuire will relinquish any claim for post-employment benefits, including use of company airplanes, office, secretarial and administrative support, and company-paid life and health insurance," reads the report filed in U.S. District Court in Minnesota on Thursday by the Special Litigation Committee.

Here are some other tidbits that didn't make this morning's coverage of the settlements involving UnitedHealth, McGuire and the U.S. Securities and Exchange Commission.

David Brodsky, the attorney for McGuire: "Dr. McGuire deserves great credit for taking full responsibility to resolve the options dating issues at UnitedHealth Group.  He called for the company investigation that helped identify the problems, proposed remedial actions to the board to address them, resigned from the company to enable it to move forward, and more than paid back every penny at issue."

Christopher Cox, SEC chairman: "Whenever a corporate officer misleads investors about a company's performance by secretly backdating stock options, the integrity of our markets is undermined.  As demonstrated in this case, the SEC is committed to holding corporate officers accountable for illegally backdating stock options and will seek the return of undeserved compensation."

Phillip Kapler, executive director of the St. Paul Teachers' Retirement Fund Association, which was a plaintiff in a derivative lawsuit against former and current UnitedHealth executives:  "The settlement with McGuire ... and the other officers will correct an executive compensation system that just went haywire, where lack of transparency and control opened the coffers to greed on a scale nearly unimaginable."

Posted by Chris Snowbeck on December 7, 2007 9:57 AM | Permalink