UnitedHealth Faces Shareholder Push to Split CEO and Chair Roles
UnitedHealthcare, the U.S.'s leading health insurer, faces a shareholder proposal to separate the roles of CEO and board chair. The College Board, a nonprofit shareholder group, has put forward this motion to enhance corporate governance. Stephen Hemsley, who serves as both CEO and board chair, took over after Andrew Witty's sudden resignation in May. The Accountability Board, which owns at least $25,000 in UnitedHealthcare shares, has declined to disclose the full extent of its stake. The proposal, spearheaded by Theresa Taylor, the current president of the College Board, aims to decrease power consolidation and strengthen 'checks and balances' within the board. UnitedHealthcare has faced recent challenges, including missing Wall Street's earnings target for two consecutive quarters and revising its 2025 outlook due to soaring medical costs and government plan shortfalls. The shareholder proposal seeks to address these challenges by promoting better governance. UnitedHealthcare, aiming to regain shareholder confidence, will likely consider this proposal as part of its ongoing efforts to improve its corporate structure.
