UnitedHealth Group, one of the leading health insurance companies, faced a tragic incident last year when its CEO, Brian Thompson, was shot and killed in early December. The company’s security expenses for its top executives skyrocketed to nearly $1.7 million in the aftermath of Thompson’s death, as revealed in recent filings.
The alleged killer, Luigi Mangione, was indicted by a grand jury and could potentially face the death penalty if convicted. The public outcry following Thompson’s death put UnitedHealth under scrutiny, prompting the company to enhance security measures for its top leaders.
The filings indicate that Thompson had no security costs before his untimely demise, and historically, UnitedHealth did not provide significant security stipends to its executives. However, following the tragic event, the company ramped up security for its executives, with Heather Cianfrocco, CEO of UnitedHealth’s Optum division, incurring the highest executive security costs at almost $1 million. UnitedHealth CEO Andrew Witty received over $150,000 in security expenses.
Amidst the security concerns, UnitedHealth paid Thompson’s estate $28.7 million, mainly from stock converted into cash posthumously. The company also provided Thompson’s family with over $271,000 for funeral expenses, family transportation, home security costs, and related support.
Witty, who earned more than $16.4 million last year, saw most of his income from stock gains. However, executives received lower bonuses due to financial losses stemming from a cyberattack on UnitedHealth’s subsidiary, Change Healthcare.
UnitedHealth has remained tight-lipped about Thompson’s security arrangements, while New York police confirmed he was alone at the time of the shooting. The company has increased security measures at its office buildings, responding to over 100 threats following Thompson’s killing.
As UnitedHealth continues to navigate the aftermath of the tragedy and bolster security for its executives, the company faces challenges in rebuilding trust with customers and addressing criticisms of the country’s healthcare system. The company’s focus on ensuring the safety of its leadership and employees underscores the importance of security in today’s volatile environment.
