Cigna(NYSE:CI) has a new CFO.

On Monday after close of trading, the Bloomfield, Conn.-based health insurer announced that Chief Financial Officer Ralph J. Nicoletti is leaving the company "for personal reasons." Simultaneously with that revelation, Cigna announced it is promoting Vice President of Finance Thomas A. McCarthy to the CFO's post. Effective July 12, McCarthy will take over responsibility for all of Cigna's financial operations and functions as well as for its investment management and strategic planning units.

In compensation for performing these tasks, McCarthy will be paid a $600,000 base salary, plus:

  • an annual bonus targeting $600,000
  • approximately $1.05 million in stock options vesting over three years
  • approximately $1.05 million more in "strategic performance shares," likewise vesting over three years

Cigna values the entire annual compensation package at $3.3 million, but does not stop there. In addition to annual compensation, Cigna says it will award $1.3 million worth of additional long-term incentive awards, consisting of three installments of strategic performance shares paid out in progressively larger amounts from 2014 through 2016.

Cigna shares rose 0.3% in Monday trading, but did so before this news came out.

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