Six Humana executives this month have sold or planned to sell nearly 74,000 shares with a combined value exceeding $22.7 million.

According to filings with the Securities and Exchange Commission, the executives who planned to sell shares or had already done so include CEO Bruce Broussard, Chief Consumer Officer Jody Bilney, Chief Human Resources Officer Timothy Huval, Chief Information Officer Brian LeClaire, Chief Corporate Affairs Officer Heidi Margulis and Chief Medical Officer Roy Beveridge, who is retiring this year.

All six this month obtained company shares by exercising stock options as part of long-term incentive plans, while Beveridge, Bilney, Broussard and Margulis also received restricted stock units.

Bruce Broussard

Broussard alone planned to sell about 23,400 shares with a value of about $7.5 million, while Bilney planned to sell 23,300 shares with a value of about $7.2 million.

As the executives exercised stock options, they had to pay an agreed upon price to acquire the shares before they could sell them, meaning they did not net a gain of $15.5 million.

For example, Huval sold nearly 7,000 shares for about $2.2 million, but in exercising the stock options at the agreed upon price of about $168, he had to pay nearly $1.3 million to acquire them, which left a net gain for Huval of about $900,000.

Like many companies, Humana pays its executives a base salary but ties much of their compensation to metrics including share price and operating results to align the interest of stockholders with how much the company’s leaders get paid.

For example, in last year’s proxy statement, Humana said that the vesting of restricted stock units it awarded in February 2015 “was tied to the company’s strategic membership growth and return on invested capital … .”

Broussard in 2017 and 2018 received a salary of about $1.25 million, but total compensation, including stock and stock options of about $20 million.

Humana last year generated revenue of nearly $57 billion, up 5.8 percent from 2017, while net income, at nearly $1.7 billion, was down 31 percent because operating expenses rose by $4.3 billion and because the insurer incurred a pretax loss of $786 million related to the sale of its life and health insurance subsidiary KMG.

Shares of Humana were trading near $308 midmorning Monday.

This post has been updated to include Bilney’s stock sale, which was filed after the initial story had been posted.

Boris Ladwig
Boris Ladwig is a reporter with more than 20 years of experience and has won awards from multiple journalism organizations in Indiana and Kentucky for feature series, news, First Amendment/community affairs, nondeadline news, criminal justice, business and investigative reporting. As part of The (Columbus, Indiana) Republic’s staff, he also won the Kent Cooper award, the top honor given by the Associated Press Managing Editors for the best overall news writing in the state. A graduate of Indiana State University, he is a soccer aficionado (Borussia Dortmund and 1. FC Köln), singer and travel enthusiast who has visited countries on five continents. He speaks fluent German, rudimentary French and bits of Spanish, Italian, Khmer and Mandarin.