CalPERS Seeks To Freeze Severance Package
As part of a shareholder lawsuit, CalPERS has asked a federal court to freeze the severance package and impose other financial restrictions on UnitedHealth Group CEO William McGuire, Reuters/Los Angeles Times reports. McGuire last month agreed to resign after the release of a report that found he likely received backdated stock options.
CalPERS is the lead plaintiff in the shareholder lawsuit.
According to a motion filed by CalPERS, McGuire "was personally involved in nearly every aspect of the stock option backdating scheme" (Reuters/Los Angeles Times, 11/1). "Despite McGuire's culpable involvement in the backdating scheme and his receipt of millions of backdated stock options, UnitedHealth is poised to allow McGuire to leave the company with a $1.1 billion retirement package," the motion states (Forster, St. Paul Pioneer Press, 11/1).
Attorney David Brodsky, who represents McGuire, said that he has begun to prepare a response to the motion (Reuters/Los Angeles Times, 11/1).