By Jay Greene / Crain's Detroit Business
Top executives at Blue Cross Blue Shield of Michigan were paid hundreds of thousands of dollars in bonuses in 2008 months before the state’s largest insurer announced layoffs and premium increases to policyholders.
In January, Blue Cross announced it planned to reduce its workforce by 1,000 workers, impose a non-union salary freeze and reduce spending in number of areas to help reduce a projected loss of $1 billion over the next three years.
Helen Stojic, Blue Cross’s corporate affairs director, said the bonuses executives received in 2008 were based on incentives they met in 2007. She said the compensation for Michigan executives is in line with other Blue Cross plans nationally.
Stojic went on to say the company’s top executives are taking pay cuts this year as part of an expense reduction plan. Salaries for vice presidents have been frozen.
Here was the compensation last year for several of the top executives at Blue Cross, according to documents filed with the state Office of Financial and Insurance Regulation.
• CEO Dan Loepp earned total compensation of $1.79 million in 2008. Loepp, who became CEO in July 2005, received $910,000 in base pay, $727,000 in bonus and $160,000 in other compensation. He earned $1.65 million in 2007.
• CFO Mark Bartlett earned $1.2 million in total compensation. Bartlett received $571,000 in base salary, $559,000 in bonuses and $108,000 in other compensation. He earned $1.17 million in 2007.
• D. Robertson, vice president of innovation and emerging markets, earned total compensation of $1 million. He earned $439,000 in 2007.
• Darrell Middleton, senior vice president of business efficiency and human performance, earned total compensation of $995,000. He earned $580,000 in 2007.
• Jean Carlson, senior vice president of subsidiary operations, earned total compensation of $960,000. She earned $707,000 in 2007.
• Kevin Seitz, executive vice president of health care value enhancement, earned total compensation of $936,000. He earned $877,000 in 2007.
Four other former Blue Cross executives received large retirement packages:
• Les Viegas, former executive vice president, received $3.46 million in total compensation. He earned $998,000 in 2007.
• William Smith, former executive vice president of operations, received $2.06 million. He earned $943,000 in 2007.
• John Austin, former senior vice present and chief actuarial officer, received $1.49 million. He earned $802,000 in 2007.
• Jann Cantelon, former vice president of group servicing and support, received $1.34 million. He earned $341,000 in 2007.
2 comments:
Pure unadulterated greed at it's best, or expense of others, that being the policy holders.
Can't wait to show this to my girlfriend who is astounded at the cost of her Blue Cross
Post a Comment