Humana docs show comps for top officials, directors (Spoiler alert: It’s a lot)
It’s a good time to be a director or an executive at Humana. The firm just released new documents that show what it pays these folks — in cash, benefits and other perks. And it ain’t hay.
Humana, like all publicly traded firms, is required by law to file a Schedule 14A with the Securities and Exchange Commission, in which they disclose this information prior to their annual shareholder meeting. The idea is that shareholders can see the information in the 14A and make informed decisions about which directors to vote onto the firm’s board. Because not all shareholders make the actual meeting in person, they can also cast their votes through the 14A, which is how the document got its nickname: a proxy statement.
Humana’s new proxy statement came out March 6, in advance of its April 16 annual shareholder meeting. Here’s a quick rundown of some of the highlights of the 100-plus-page doc:
- It’s good to be on the Humana board of directors. In 2014, after all fees, stock awards and other compensations are totaled, Humana directors earned salaries that ranged from $243,092 on the low end to $445,616 — for board chairman Kurt J. Hilzinger.
- It’s good to be a director but better to be Bruce Broussard. The Humana CEO’s total comp was $10.2 million in 2014, a hefty bump from 2013’s $8.8 million. Only $1.1 million of Broussard’s 2014 comp came from salary; the rest was in stock, options and other incentives/compensations.
- CFO Brian Kane earned total comp of $4.3 million in 2014.
- COO James E. Murray earned $4 million in 2014, down a touch from 2013. In other Murray news, he just sold $5.6 million worth of HUM stock.
But there’s more to life than just money. There’s also perks. Broussard also earned $182,640 in the category of “other expenses,” which includes relocation expenses, physicals, commuting, housing allowances and guest expenses while on business travel. Kane earned $80,890 in this category, and Murray $25,307.
And let us not forget the corporate jet. Humana calculates the personal use of its company aircraft, and what this cost the firm in 2014. CEO Broussard banked personal jet travel totaling $102,976, with Murray clocking $48,879. Sure beats business class.
This isn’t to say Humana overpays. On the contrary, the firm’s had an incredible stock run, up 265 percent in five years. So the team, to them, is surely worth it and then some.
For comparison sake, Yum! Brands — another Louisville-based Fortune 500 company — doesn’t pay any of its directors more than $245,412 a year, according to its most recent proxy.
Seeing how well Humana has done, don’t be surprised if the firm’s shareholders vote all these directors back in for another go ’round in 2015.
XLerateHealth startup accelerator now accepting applications
XLerateHealth is accepting applications until May 31 for its third startup accelerator cohort. The accelerator was founded by Bob Saunders, Jackie Wilmot, Bobby Fererri and Ted Smith as a way to bring med-tech and wellness companies to Louisville and to tap into Louisville’s thriving healthcare community.
The 13-week intensive accelerator starts on Aug. 3 and runs until Demo Day on Oct. 29. Startups get $20,000 for 6 percent equity, access to its network of more than 100 mentors, office space in the Nucleus building, and a curriculum based on the Lean Launchpad model.
The site housing the application hasn’t been updated quite yet. But for more information, email [email protected].