March 18--Cigna Corp. CEO David Cordani's compensation totaled $21.9 million in 2016, less than half what he received in 2015.
The value of restricted stock awards that vested during the year made up 88 percent of his package.
The Courant calculates compensation as the sum of salary, bonuses, value gained on the exercise of stock options and the vesting of stock awards, and the value of perquisites, such as the 401(k) match and use of corporate aircraft.
As a result of Obamacare, Cigna is not allowed to deduct the salaries, bonuses, stock awards and option awards it grants employees of any amount past $500,000. A proposal to repeal and replace the law would restore the tax deductibility of bonuses and stock grants and up to $1 million in salary.
Cigna-HealthSpring Herb Fritch, who retired in early November, earned $16.9 million during the year, with $8.8 million of his compensation coming from accelerated vesting of stock options when he retired.
The proxy statement, filed after the close of the stock market on Friday, also suggested that shareholders authorize the issuing of more stock options and restricted stock, because the pool of potential awards could run out in 2018. The company's six highest paid officers have received 23 percent of all the stock options issued since April 2013.
Separately, Cordani was awarded restricted stock currently worth $6.7 million and stock options currently valued at $6 million. These awards could be worth more or less in the future, depending on how the stock's price performs.
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