Anthem Chairman and Chief Executive Joseph Swedish's 21 percent hike as a whole 2021 compensation drew criticism from Wall Street on Monday.
The health insurer's stock would be a laggard in the sector this past year and also the robust pay increase – to $16.5 million, up from $13.Six million – is rich for an organization that underperformed its rivals, one analyst told The Post.
“As far as stock performance, in 2021, Anthem was up 11 percent as the average Big 5 HMO was up 20 percent,” said the analyst, speaking around the condition of anonymity, talking about UnitedHealthcare, Aetna, Cigna, Humana and Anthem.
“Anthem was not the very best performer,” the analyst said.
Anthem's 2021 was highlighted by its battle against federal regulators set on blocking its $54 billion merger with rival Cigna. In February, a judge blocked the offer on antitrust grounds.
Anthem is appealing that call and could be forced to pay Cigna a $1.85 billion breakup fee and further damages. A hearing around the appeal is scheduled with this week.
Anthem in 2021 recorded $2.5 billion in net income.
The company is hoping the Trump administration's Justice Department will less aggressively pursue blocking the merger.
The 65-year-old Swedish a week ago spoken with President Trump to convey his support for Trump's health care insurance option. It is not known whether the subject from the merger was brought up.
Cigna is suing Anthem in a separate lawsuit for $13 billion, as well as the breakup fee. The next hearing in that Delaware case is within mid-April.
Anthem in the proxy filing said hello gave Swedish a raise to acknowledge his performance and place his target pay nearer to that of his peers.
Anthem's shares within the last two years have risen 6 % while, over the same time frame, UnitedHealth is up 41 percent, Aetna 19 percent and Cigna and Humana 18 percent each.
“Approximately 90 percent of Mr. Swedish's total compensation is incentive-based, as compared with 80 percent for executive officers,” an Anthem spokesperson told The Post.
