Unitedhealth group stock option backdating

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On December 6, 2007, United Health Group announced (here) that its Special Litigation Committee had concluded its review of claims relating to the company’s option backdating practices that had been brought against certain of the company’s directors and officers.The company also announced that its former CEO William Mc Guire had agreed surrender certain rights and interests which, together with previous repricing of all stock options awarded to Mc Guire, have a value in excess of 0 million.Particularly if you're Spears, and you're also managing millions of dollars in Mc Guire's personal assets, and serving as trustee for two trusts set up for the benefit of Mc Guire's children, and you just accepted an investment of 0,000 from Mc Guire to help finance the repurchase of your firm from a financial conglomerate.Such potential conflicts of interest are supposed to be reported to other directors, of course, as well as the shareholders in the company's annual proxy report.Certain other current and former officers also agreed to relinquish certain rights and repay other amounts, which in combination with the repricing of certain stock option, have a value of approximately 0 million.

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Isn't it odd that a company could be so persnickety when it comes to pinching pennies from doctors and patients, and so cavalier when it comes to lavishing executives with hundreds of millions of dollars of shareholders' money? Maybe what we have here is the most outrageous corporate scandal since Enron and World Com.will be determined by binding arbitration.” According to the article, current United Health CEO Stephen J.Helmsley had agreed to repay 0 million, although the company apparently says he voluntarily did so months ago.Mc Guire from 1994 to 2002, result in a total value to be relinquished by Mc Guire in excess of 0 million.A copy of Mc Guire’s settlement agreement with the company and the derivative plaintiffs can be found here.

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