This excerpt taken from the UNH DEF 14A filed Apr 28, 2008.
Elements of our Compensation Program
The compensation program for the named executive officers consists of the following elements:
The percentages specified in the column Program Element as a % of Total Program above range from the lowest to the highest percentages for our named executive officers. Because Mr. Hemsley did not receive a long-term equity award in 2007, the percentages specified in that column have a range from 0 to 57 percent.
The form, proportion and value of the executive compensation elements are determined using a framework of compensation principles, peer group compensation practices and individual factors described above under Process for Establishing the Executive Compensation Program below.
Annual Cash Compensation. Annual cash compensation consists of base salary and annual cash incentive awards.
This excerpt taken from the UNH DEF 14A filed Apr 30, 2007.
Elements of the Compensation Program
The elements of our executive compensation program are base salary, annual cash incentive awards, long-term cash incentive awards, long-term equity awards, standard benefits and post-employment compensation (in the event of a triggering event under the applicable employment agreement). In considering and determining the amount, the form, and the balance among the elements, the Company considered the following guidelines in 2006:
The Compensation Committee believes that the substantial majority of the total compensation opportunity of executive officers should be at-risk and payable only in the event of performance by executives that benefits the Companys shareholders and other constituents. In 2006, annual and long-term cash incentive opportunities and equity-based compensation constituted approximately 80% of the total compensation opportunity of our executive officers.