Chapter 7: Executive Compensation of the United Healthcare Corporation

This chapter concerns itself with the development of a model for determination of the executive compensation of the United Healthcare Corporation. The data for this model consists of 13 comparable and 7 non-comparable U.S. healthcare companies selected by the compensation committee of United Healthcare Company and its advisors.

A peer group is a list of corporative utility companies selected by the Compensation Committee of United Healthcare to serve as a market benchmark for evaluating executive pay levels and company pay designs (Dikolli et al., 2014; Gong et al., 2011).

Benchmarking against a peer group helps the corporation determine the competitiveness of its pay plan, as well as to demonstrate the alignment of pay and performance of its pay plan relative to its peers.