Aetna wants Blues to disclose CEO pay methods
Aetna wants a federal judge to force Blue Cross Blue Shield of Michigan to disclose how it determines compensation for its top executives, including CEO Dan Loepp, as part of a lawsuit claiming Blue Cross engaged in anti-competitive conduct, reported Crain's Detroit Business.
"These requests (on compensation and benefits) are designed to assess whether Blue Cross's executives are given incentives to carry out a 'social mission' to 'benefit the people of Michigan' or, rather, whether Blue Cross's executives are given incentives to maximize Blue Cross's operating profits and retained capital, market share and competitive positioning," Aetna said in its request.
However, Blue Cross responded in a brief, expressing its opposition. "None of the information requested (in court) is relevant. Aetna is a for-profit company, crying financial hardship even though it paid its (former) CEO $72 million in 2010," Blue Cross Director of Corporate Affairs Helen Stojic said in a statement. "Our CEO salary is publicly reported on an annual basis. Aetna pulled out of the small group market in Michigan instead of investing in the state like Blue Cross does through its social mission." Article