If former insurance executive turned whistleblower, Wendell Potter’s prediction is right, annual meetings this year for insurers won’t be the non-events they usually are.
In his blog Potter writes:
Of the five biggest for-profit insurers, Cigna will lead off the annual meeting season [tomorrow, April 25] in Hartford and it will unlikely be the sleeper previous meetings have been.
That’s because earlier this month one big shareholder — the Change to Win (CtW) Investment Group — sent a letter to other shareholders urging them to “send our board a clear message: Cigna’s executive pay structure is broken and open engagement needs to begin with concerned shareholders, immediately.”
CtW, which works with pension funds sponsored by several unions, decided to send the letter after seeing that Cigna CEO David Cordani was given a pay raise of more than 25 percent last year, bringing his total compensation to more than $20 million. That was “chiefly on the back of a poorly-utilized performance metric that put cash in (Cordani’s) pocket only because our customers cannot afford to go to the doctor,” CtW said in its letter.
That’s right, a group of investors are criticizing their company because its policies have created a dynamic whereby people are paying for services that they can’t afford to utilize. And they recognize what has been apparent to consumers for some time — this policy benefits no one, not even Cigna.
Tomorrow, healthcare4every1 advocates will join consumers as well as other advocacy organizations such as CCAG – led by Tom Swan, outside the Bushnell where the meeting is being held. They will reinforce the message that the pay structure is not only flawed to the detriment of consumers, but it is also fiscally irresponsible.
To learn more about the plans for Wednesday head here. And be sure to let us know if you are coming.