UnitedHealth Group is bringing back a former CEO to helm the company, enhancing the offer with a substantial $60 million equity package in addition to a $1 million base salary.

On Tuesday, UnitedHealth Group disclosed that 60-year-old CEO Andrew Witty would be resigning immediately due to “personal reasons.” He will be succeeded by Stephen Hemsley, the 72-year-old chairman of the board of directors, who will take over as CEO.

In light of the leadership change, Hemsley will receive a $1 million base salary along with a one-time $60 million equity package comprised of stock options set to vest over three years, as reported by Bloomberg. Comparatively, Witty earned a higher base salary of $1.5 million in 2024 but had a lower overall compensation totaling $26 million for that year, which included stock and options awards.

The move marks Hemsley’s second time as the leader of UnitedHealth Group; he previously served as CEO from 2006 to 2017, leading the company’s expansion into areas like pharmacy benefits.

According to a U.S. Securities and Exchange Commission filing, Hemsley was paid almost $18 million in salary, bonus, and awards in his last full year as CEO in 2016.

In his new term as CEO, Hemsley will also continue to serve as chairman of UnitedHealth Group’s board of directors, and Witty will become his senior adviser.

UnitedHealth Group’s stock dropped by more than 17% on Tuesday following the announcement of the CEO change, per The New York Times. Over the past month, the company’s stock has lost over 45% of its value.

^{Stephen Hemsley, CEO of UnitedHealth Group. Photographer: Jonathan Alcorn/Bloomberg via Getty Images}

Hemsley stated in a press release that Witty, who has served as CEO since 2021, has led the company through “some of the most challenging times any company has ever faced.” One event in particular was the murder of Brian Thompson, the CEO of the company’s health insurance business, UnitedHealthcare. Thompson was fatally shot in December in Midtown Manhattan, leading to concerns about CEO security and causing the removal of leadership pages from many company websites. His death put the rising costs of the U.S. healthcare system in the spotlight.

UnitedHealth Group also faced a cyber attack in February 2024 that impacted the personal data of about 100 million Americans, and an antitrust investigation this February by the U.S. Department of Justice.

The company has more than 440,000 total employees per a December 31, 2023, filing. It’s the largest healthcare company in the U.S. based on revenue, bringing in over $400 billion in 2024.

UnitedHealth Group’s market cap was $286 billion at the time of writing, down from $566 billion in November.