CEOs Build Healthcare-for-Life Into Compensation Packages
March 1 2012 by ChiefExecutive.net
It’s becoming increasingly common for CEOs to build extended healthcare coverage into their compensation packages. Footnoted, which reviews companies’ SEC filings, reported on the growing trend, noting that such prominent companies as Delta Airlines and United Continental Holdings have agreed to healthcare provisions for their CEOs.
The terms of these agreements may include extending coverage after employment at the company until the executive is eligible for Medicare and then reimbursing Medicare expenses for the CEO and spouse.
Delta CEO Robert Anderson may even choose his provider and policy if he does not like the one chosen by the company. And the company will pick up the tab for 90% of health care costs that aren’t picked up by the policy (after a $4500 deductible). Not such a bad deal.
Will more CEOs see fit to follow suit? Healthcare is a hot topic and it’ll be interesting to see where this goes.