Executive Compensation Soars in 2024
Cigna Group recently unveiled its annual proxy report, revealing substantial compensation increases for its top executives. The report, published on March 14, shows that CEO David Cordani received a significant pay bump, earning $23.25 million in total compensation—approximately $2 million more than his 2023 earnings of $21 million.
Leadership Restructuring Amid Pay Increases
The healthcare giant has undergone notable leadership changes while boosting executive pay. Eric Palmer and Brian Evanko, who headed the company’s health services and insurance divisions respectively, both saw their compensation rise in 2024 compared to the previous year.
However, the executive landscape is shifting, with Palmer departing from the organization. Meanwhile, Evanko is being promoted to Chief Operating Officer, where he will take charge of both of Cigna’s primary business divisions.
Detailed Compensation Breakdown
David Cordani, Chair and CEO
- Salary: $1,573,077
- Stock awards: $15,214,154
- Option awards: $3,340,009
- Non-equity incentive plan: $2,720,000
- Pension value changes: $31,059
- Other compensation: $372,797
- Total compensation: $23,251,096
Eric Palmer, EVP Enterprise Strategy & Evernorth CEO
- Salary: $1,000,000
- Stock awards: $5,813,611
- Option awards: $1,725,052
- Non-equity incentive plan: $1,840,000
- Other compensation: $51,825
- Total compensation: $10,430,488
Brian Evanko, EVP/CFO & Cigna Healthcare CEO
- Salary: $994,231
- Stock awards: $5,813,611
- Option awards: $1,725,052
- Non-equity incentive plan: $1,700,000
- Other compensation: $51,738
- Total compensation: $10,284,632
Additional Executive Earnings
The proxy report also detailed compensation for other key executives at Cigna Group:
Noelle Eder, EVP & Global CIO
- Salary: $868,269
- Stock awards: $3,012,429
- Option awards: $893,791
- Non-equity incentive plan: $972,000
- Other compensation: $41,974
- Total compensation: $5,788,463
Nicole Jones, EVP, CAO & General Counsel
- Salary: $868,269
- Stock awards: $3,012,429
- Option awards: $893,791
- Non-equity incentive plan: $972,000
- Pension value changes: $1,049
- Other compensation: $40,624
- Total compensation: $5,788,162
Equity-Based Compensation Dominates
A closer analysis of the compensation structure reveals that equity-based pay—consisting of stock and option awards—represents the largest portion of executive compensation packages at Cigna. This approach aligns executive interests with shareholder value, a common practice among large healthcare corporations.
Industry Implications
These significant compensation packages reflect the competitive nature of executive recruitment and retention in the healthcare industry. As Cigna continues to position itself in the evolving healthcare landscape, these compensation decisions signal the board’s confidence in its leadership team to drive future growth and profitability.
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