A majority of the CEOs of listed US insurtech companies operating as either brokers or underwriters saw their total adjusted compensation fall significantly in 2022, according to S&P Global Market Intelligence.
The compensation packages for 9 of the 14 CEOs shrank year over year, with three declining by more than 90%.
Compensation for Bright Health Group Inc.’s George Mikan plunged 94.5% to $10 million from $180.8 million in 2021, while total compensation for Mario Schlosser of Oscar Health fell to just $700,000 from $60.8 million a year earlier. Both Bright Health and Oscar Health went public in 2021.
Clover Health Investments CEO Vivek Garipalli received no compensation in 2022 after taking in $389.6 million in 2021, the year the company went public.
Total Ranking of Adjusted Compensation for US InsurTech CEOs
|CEO||InsurTech||Compensation 2022, mn||Compensation 2021, mn||Change, %|
|John Kao||Alignment Healthcare||$34.1||$46||-25.9%|
|George Mikan||Bright Health||$10||$180.8||-94.5%|
|Rick McCathron||Hippo Holdings||$6.5||$2.9||+124.1%|
|Maxwell Simkoff||Doma Holdings||$4.8||$8.2||-40.6%|
|Mario Schlosser||Oscar Health||$0,7||$60.8||-98.8%|
|Vivek Garipalli||Clover Health||0||$389.6|
Garipalli elected to forgo any cash compensation in 2022, with no equity grants or other compensation provided during the year.
Garipalli, Clover Health’s founder, stepped down as CEO on Jan. 1, 2023, in favor of Andrew Toy but retains the title of executive director.
The rankings in this analysis are based on total adjusted compensation for insurance technology companies that are either insurance brokers or have underwriting businesses and are listed on one of the major US stock exchanges.
Total compensation for Lemonade Inc. co-CEOs Dan Schreiber and Shai Wininger dropped 62.6% and 62.5%, respectively, because of decreases in their options. Options for both Schreiber and Wininger fell to $7.5 million from $21 million in 2021.
Francis Soistman of eHealth had a 41.6% decrease in compensation to $6.2 million from $10.6 million a year earlier. Maxwell Simkoff, CEO of real estate title insurer Doma Holdings Inc. had his compensation lowered by 40.6% to $4.8 million from $8.2 million in 2021.
Alignment Healthcare’s John Kao benefited from a massive stocks package to finish as the highest-paid CEO in the analysis, despite experiencing a 25.9% drop in his compensation to $34.1 million from $46 million in 2021. The change was due to a sizable decrease in options to $1.5 million from $29.6 million.
The analysis compared total adjusted compensation for the CEO, interim CEO or executive determined to be the “principal executive officer” for each company’s full fiscal year 2022.
Kao received $30.9 million in stock grants in 2022, which accounted for the majority of his compensation for the year. The rest of the total consisted of $700,000 in cash, $1.5 million in options and $900,000 from a nonequity incentive plan.
Bright Health’s Mikan was second at $10 million, while Vijay Kotte, who became CEO of GoHealth Inc. in June 2022, was third with a $9.6 million compensation package.
Hippo Holdings’ Rick McCathron had the highest increase in compensation after being named CEO of the company in June 2022. McCathron, who was a member of the board at the time, received a CEO compensation package worth $6.5 million, a sizable increase from his previous package of $2.9 million.
by Tom Jacobs, Jason Woleben – S&P Global Market Intelligence analysts