Navigation Links
Dr. William McGuire Settles with the SEC and the UnitedHealth Group Special Litigation Committee on Stock Options Matter
Date:12/6/2007

Former CEO Agrees to Forego $420 Million in Compensation and Benefits

MINNEAPOLIS, Dec. 6 /PRNewswire-USNewswire/ -- Former CEO and Chairman of UnitedHealth Group Corporation, Dr. William McGuire, today agreed to terms with the UnitedHealth Special Litigation Committee (SLC) that call for McGuire to return more than $420 million in stock options and other compensation to settle issues related to the dating of stock options during his tenure as CEO of the company, in addition to the $198 million he has previously repaid by repricing options. The SLC has agreed to seek to have all derivative claims against Dr. McGuire dismissed with prejudice. The SLC made no findings of wrongdoing by Dr. McGuire.

In a related action, Dr. McGuire also reached a settlement with the Securities and Exchange Commission (SEC) which charged him with violating provisions of the Securities Exchange Act of 1934 and the Securities Act of 1933 and aiding and abetting violations by UnitedHealth Group; Dr. McGuire neither admitted nor denied the allegations and agreed to return to the Company approximately $460 million in options and other compensation benefits, which will satisfied by the SLC settlement, and to pay a civil penalty of $7 million, to be barred from serving as an officer or director of a public company for ten years, and to be enjoined from violating the securities laws in the future.

Together, the settlements resolve major legal actions involving Dr. McGuire, and help move him along the path of putting the options dating matters behind him.

"The last 18 months have been an extraordinarily challenging period for my family and me. I am very pleased to have reached a resolution that puts these matters to rest," Dr. McGuire said. "I am extremely proud of all that our team accomplished at UnitedHealth Group to improve health care and build a highly successful and innovative company, and I wish the Company well in fulfilling its mission."

In his settlement with the SLC, McGuire agreed to return over $320 million in options. He also volunteered to forego the full value of his fully-vested Supplemental Executive Retirement Plan (SERP) worth nearly $92 million and approximately $8.1 million of incentive compensation benefits in a deferred compensation plan. Along with the $198 million of repriced vested and unvested options last November, Dr. McGuire's actions remove any possible benefit he may have received as a result of the issues arising from the options program of the Company.

"Dr. McGuire deserves great credit for taking full responsibility to resolve the options dating issues at UnitedHealth Group," said David M. Brodsky, Dr. McGuire's attorney. "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."

During his 17 year tenure, McGuire oversaw the transformation of UnitedHealth Group from a $600 million regional insurance company to a $70 billion global health services company. When McGuire took the helm in 1991, UnitedHealth Group served just over 1 million people. By 2006, that number had reached 50 million. UnitedHealth Group's performance during his tenure was spectacular, growing at a cumulative rate 30 times greater than the S&P average. Shareholders of UnitedHealth Group saw an 8,453 percent return on their investment under McGuire's leadership.

While CEO of the Company, UnitedHealth Group was recognized for its continuing innovation in the delivery of health care. These included expanded uses of data in decision-making, technology applications to improve efficiency and advance quality, the elimination of "gatekeeper" systems in favor of open access to doctors and nurses and new approaches to meeting the unique health care needs of older people and disadvantaged populations. Dr. McGuire resigned from the company on November 30, 2006.

In recent months Dr. McGuire has continued his work in the health care sector, focusing on how to expand access and improve both the efficiency and quality of our current healthcare system. He intends to increase and expand these efforts in the months ahead. He has also begun working on issues surrounding educating socioeconomically disadvantaged people, and has been engaged in a variety of charitable endeavors.


'/>"/>
SOURCE Latham and Watkins, LLP
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. iCAD to Present at William Blair & Company Small-Cap Growth Stock Conference
2. Retired NYPD Lieutenants William E. Keegan, Jr., Owen McCaffery and John Moran and Tom Thees, a former COO in the financial industry, announce today the formation of H.E.A.R.T (Healing Emergency Aid Response Team) 911.
3. National Council of Negro Women (NCNW) Partners With Sherwin-Williams to Target Lead Risks in Neglected Housing
4. William Moore Appointed to IRIDEX Board of Directors
5. Exponent to Present at the Upcoming Sidoti & Company Investor Forum and William Blair Small-Cap Growth Stock Conference
6. AXA Equitable Life Insurance Co. Hires William McDermott to Lead Corporate Retirement Planning Business
7. AMICAS to Present at William Blair & Company Small Cap Growth Stock Conference
8. Matrixx Initiatives, Inc. to Present at the William Blair & Company Small-Cap Growth Stock Conference
9. Presentation Time Correction: Keryx Biopharmaceuticals Presents at 12:00pm, ET Tomorrow (Oct. 3) at William Blair & Company Small-Cap Growth Stock Conference
10. VNUS Medical Technologies Presents at William Blair Small-Cap Growth Stock Conference
11. Prominent Cosmetic Dentist Dr. William Hoskyns Joins Leading Atlanta Practice
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/18/2019)... ... March 18, 2019 , ... Vida Health, a ... of Habits, a machine-learning driven experience that delivers personalized recommendations and reminders. Alongside ... Habits is now integrated across all of Vida's program offerings, including their new ...
(Date:3/16/2019)... ... ... Sixty million kids participate in organized athletics each year with ever increasing ... of a college scholarship or professional career on the line. However, researchers presenting their ... participation might come at the cost of increased injuries during their athletic careers. ...
(Date:3/15/2019)... ... March 15, 2019 , ... Matt Strickland has joined ... Technology Officer. Strickland is assuming the role following the departure of Jerad Johnson, ... he is excited to be working for GPT. “The telemedicine world seems to ...
(Date:3/14/2019)... ... March 14, 2019 , ... The EndBrainCancer Initiative ... 15th at the Bellevue Club in Bellevue, Washington. GBM is short for “Glioblastoma” which ... its sponsors and partners invite current and past brain cancer patients, survivors, caregivers, and ...
(Date:3/14/2019)... SAMUI, Thailand (PRWEB) , ... March 13, 2019 , ... ... Samahita Retreat on Koh Samui, Thailand, Centered Yoga has continually offered quality, foundation level ... Centered Yoga and continues to teach on the majority of the trainings today. ...
Breaking Medicine News(10 mins):
(Date:3/14/2019)... WARNER ROBINS, Ga. (PRWEB) , ... March 14, ... ... small minority-owned business enterprise (MBE) LOUi Consulting Group, Inc. (LCGI) its fourth consecutive ... DHA has awarded LCGI a $7M, 22-month contract to maintain the computer servers ...
(Date:3/14/2019)... ... ... Provezza Laboratories is pleased to announce the launch of its ... black elderberry extracts. This new premium elderberry syrup delivers 30mg of polyphenols per dose, ... “Our dedicated team has traveled around the world and worked extremely hard to research ...
(Date:3/13/2019)... ... ... are created the same. The tincture offered in the Stay Young Brand is a premier ... rate and bioavailability far exceed those of other brands. The US based supplier is also ... no harsh chemicals, no metals, and is tested to be 100% THC free. Not all ...
Breaking Medicine Technology: