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UNH » Topics » Compensation Program Principles

This excerpt taken from the UNH DEF 14A filed Apr 23, 2009.

Compensation Program Principles

Our Compensation Committee uses the following principles to implement our compensation philosophy and realize our executive compensation program objectives:

 

  1. Pay for performance. A substantial portion of the total compensation of our named executive officers is composed of annual and long-term incentive payments that are earned upon achievement of financial and non-financial outcomes that either influence or produce shareholder value creation.

 

  2. Enhancing long-term health of the business. We base annual cash incentives on achievement of goals and objectives that reflect a balanced mix of quantitative and qualitative performance measures to avoid excessive weight on a single performance measure. We believe this balanced mix encourages named executive officers to weigh the longer-term health of the Company while avoiding excessive risk-taking in the short-term.

 

  3. Reward long-term growth and sustained profitability. Compensation of our named executive officers is heavily weighted toward equity and cash awards that are earned upon achievement of long-term goals. These awards encourage our named executive officers to deliver continued growth over an extended period of time and aid us in the retention of executive officers who are vital to our long-term success. The equity awards, coupled with executive stock ownership guidelines, further assure the alignment of interests between our named executive officers and our shareholders.

 

  4. Modest benefits and limited perquisites. We provide standard employee benefits and very limited perquisites or other forms of compensation to our named executive officers. We believe that the financial opportunities provided to our named executive officers through our compensation program minimize the need for extra benefits or perquisites and that the absence of such benefits or perquisites does not impact our ability to attract and retain such executives.
This excerpt taken from the UNH DEF 14A filed Apr 28, 2008.

Compensation Program Principles

The following principles are used to implement our compensation philosophy and realize our executive compensation program objectives:

 

  1. Pay for performance: a substantial portion of our named executive officers’ total compensation is allocated to short and long-term incentives that are earned if financial and non-financial outcomes that either influence or produce shareholder value creation are achieved.

 

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  2. Pay differentiation: a significant portion of our named executive officers’ total compensation is determined by enterprise, business unit and individual performance results. This motivates effective collaboration among the named executive officers to produce strong enterprise financial results, places strong accountability for business unit financial results and recognizes officers who make exceptional contributions as leaders to the long-term success of the Company.

 

  3. Enhancing long-term health of the business: annual cash incentives include a balance of financial and non-financial measures of performance. We seek to ensure that our named executive officers weigh the longer-term health of the Company, not only short-term financial opportunities. This includes measured progress in making improvements in customer and provider satisfaction, employee engagement, public and social responsibility, regulatory compliance and brand/reputation value.

 

  4. Long-term growth and sustained profitability: compensation of our named executive officers is heavily weighted toward long-term incentives. This is intended to attract and retain the executive talent needed to continue our profitable growth over the longer-term and fund our future expansion in the health and well-being industry.

 

  5. Significant equity stake: equity-based incentives represent the largest component of our named executive officers’ total compensation. Equity awards coupled with executive ownership guidelines create alignment of interests between our executives and shareholders.

 

 

6.

Modest benefits and limited perquisites: standard employee benefits and few perks are provided to our named executive officers and represent a small percentage of total compensation. We believe that the financial opportunities provided to executives through our compensation program eliminate the need for executive benefits and perquisites and do not impact our ability to attract and retain executives.

EXCERPTS ON THIS PAGE:

DEF 14A
Apr 23, 2009
DEF 14A
Apr 28, 2008

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