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UNH » Topics » COMPANY RESPONSE TO 2004 SHAREHOLDER PROPOSAL

This excerpt taken from the UNH DEF 14A filed Apr 7, 2005.

COMPANY RESPONSE TO 2004 SHAREHOLDER PROPOSAL

 

In 2004, a majority of the Company’s shareholders approved a shareholder proposal recommending that the Company adopt stock option expensing. The Board, including in particular, the Audit Committee and the Compensation and Human Resources Committee, discussed in detail at their meetings the developments surrounding FASB rules on option expensing and the advantages and disadvantages of changing the Company’s accounting practices. The Board has determined that the Company will change its method of option accounting concurrent with the proposed effective date of implementation of the new FASB option accounting rules, which is currently for quarters after July 1, 2005.

 

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