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Healthcare executive compensation changes to watch

“Our board’s organization and compensation committee made certain changes to our cash incentive program to align all leaders to our shared enterprise vision, one of which was the inclusion of consumer health metrics as a performance target,” says Mark Mathis, director of corporate communications for Humana. “Rather than a performance target based on the attainment of a single pre-established earnings per share (EPS) objective, the committee set 2016 incentive targets based 80% upon EPS and 20% upon certain pre-established consumer health metrics, to incentivize our executives to take actions to improve the health of our members.”

Humana executives failed to earn bonuses in 2015, according to the filing, partly because Humana intentionally set the bar high in order to reward its leaders only for exceptional performance.

 

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