When President Obama was re-elected, shares of UnitedHealth (NYSE: UNH ) and other life insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? One thing's for sure, the company will rely heavily on its management team to lead them through a complicated and dynamic regulatory and business environment. We highlight UnitedHealth's leadership in our brand new premium report on UnitedHealth, which hones in on UnitedHealth's prospects in a post-Obamacare world. Below is free sample of what you can find in the full version.
Controversy swirled around the top leadership at UnitedHealth in recent years. An internal company investigation in 2006 into options pricing resulted in then-CEO William McGuire's resignation. William Spears, chairman of the board's compensation committee, and David Lubben, general counsel, also left in the wake of the scandal.
Stephen Hemsley moved up into the CEO spot following McGuire's departure. Hemsley joined UnitedHealth in 1997 from the now-defunct Arthur Andersen, where he served as Managing Partner and Chief Financial Officer.
A review performed by an outside firm hired by UnitedHealth found no wrongdoing on the part of Hemsley, who was President and Chief Operating Officer, as well as a member of the board of directors at the time of the initial investigation. Hemsley, though, did relinquish $190 million in stock options.
On the positive side, Hemsley appears to be well aligned with shareholders given his ownership of more than 2.5 million shares of the company worth in excess of $150 million. The company has a well-structured incentive plan with the appropriate mix of financial and non-financial metrics used as benchmarks — including revenue, operating income, cash flow, and measures such as customer and physician satisfaction.
Regarding financial performance, both revenue and earnings have increased relatively steadily during Hemsley's watch. He has also led the company in several strategic acquisitions that improved the company's competitive position.
We hope you enjoyed this short excerpt from our premium report on UnitedHealth. In the full version, we run through the key opportunities and threats facing the company, provide reasons to both buy and sell the stock, and include a full year of analyst updates to keep you covered as key news develops. Don't miss out -- simply click here now to claim your copy today.