UnitedHealth CEO Resignation Raises Issues
The Wall Street Journal on Thursday examined the events that led to the resignation of UnitedHealth Group Chair and CEO William McGuire earlier this year over allegations of backdated stock options.
The UnitedHealth board, which "couldn't have been more supportive" of McGuire for most of his tenure, in October unanimously decided to "dump him" after "concluding that his explanations for a pattern of unusually well-timed stock-option grants didn't add up," the Journal reports. According to the Journal, UnitedHealth "directors felt pressure after their lawyer told them federal regulators appeared likely to charge" McGuire.
McGuire has agreed to return to UnitedHealth stock options valued at about $200 million, and "people close to the situation say the company hopes to get back at the very least $250 million more," the Journal reports (Bandler/Forelle, Wall Street Journal, 12/7).