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December 04, 2017 at 01:45 PM
Aetna Inc. Chief Executive Officer Mark Bertolini could walk away with at least $88.3 million if he’s terminated soon after CVS Health Corp. buys the insurer.
Bertolini holds equity awards valued at $71.9 million at the CVS deal’s $207 offer price that would vest immediately if he’s let go within two years of a transaction, according to data compiled by Bloomberg. He’s also entitled to about $6.72 million in severance and had accumulated $9.72 million in deferred compensation and pension as of Dec. 31.
(Related: 3 Possible CVS-Aetna Deal Effects, for Agents)
Aetna will operate as a standalone business within CVS and be run by members of Bertolini’s team, while he will give up his executive duties and join the board of the combined entity, T.J. Crawford, a spokesman for the insurer, said in an email. He declined to comment on the compensation package.
Aetna’s shares had gained 46% this year through Friday’s close, driven in past weeks by speculation about the deal. That boosted the value of Bertolini’s potential payout. CVS’s offer price is 14% above the stock’s $180.31 close on Friday.
