United health options backdating
It also says that the .85 million is to be paid by Apple.
It is not clear whether or not the D&O insurers will be reimbursing Apple for the .85 million or if the million is the only payment that the D&O insurers will be making in connection with the settlement.
It would be helpful if any reader with more specific knowledge of the insurance arrangements pertaining to this settlement would let me know.
This reader’s question also suggests another component that is relevant to these insurance issues but that is not addressed in the Stipulation, and that is the question of defense expense.
The company said Erlandson, who has served as CFO since, 2001, will assume operational duties within the company. Mike Mikan, who has been senior vice president of finance of the company since February and has served as the finance chief for its United Healthcare division.
The company also reported that it would reset the exercise prices of all exercised and unexercised options with recorded grant dates between 19 that had been received by senior executives.
Incoming CEO will also see his options repriced downward and will have to let go of the value of certain options, with the two actions amounting to a drop in the value of past equity compensation worth 0 million.
"Assuming this reader’s analysis is correct, this is a very important distinction.In a case like this where there are regulatory proceedings and special litigation committee activities as well as civil litigation, there frequently are disputes about which defense fees are covered and which are not.In a case like this one, the aggregate amount of all fees could well exceed million.For example, the exercise prices of all options held by outgoing chief executive officer William Mc Guire with recorded grant dates between 19 will be reset to the highest share price during the recorded grant year for each particular option.For options suspended in 1999 and reinstituted in 2000, the exercise prices will be reset to the highest share price in 2000.
Those actions would reduce the current value of Hemsley’s past equity compensation by about $190 million, the company added.