In February, this year, I wrote of the seemingly outlandish compensation William W. McGuire, the CEO of UnitedHealth Group, received in 2005. Of his $124.8 million of compensation, $114.6 million was in the form of stock options. It now seems that this compensation might not have been entirely kosher.
Yesterday, the New York Times (“US Subpoenas UnitedHealth“), revealed that:
…[UnitedHealth Group] had received a request from the Internal Revenue Service for documents from 2003 relating to stock options and other compensation for executive officers named in its annual proxy statements. UnitedHealth said it would cooperate with both offices.
Last week, UnitedHealth said it might have to restate past earnings by as much as $286 million as it reviewed stock option practices.
By the end of 2005, McGuire held approximately $1.6 billion (yes, billion) worth of unexcercised stock options.