Key Takeways
1. Leadership shakeup amid crises: UnitedHealth Group CEO Andrew Witty has abruptly stepped down, citing personal reasons. His departure follows a year of major turmoil for the company, including a DOJ investigation, a massive cyberattack affecting 190 million people, and the murder of a senior executive. Former CEO and current chairman Stephen Hemsley will return to the role with a significant compensation package.
2. Investor confidence hit: The leadership change, combined with recent operational and reputational challenges, has shaken investor confidence. UnitedHealth shares dropped nearly 18% following the announcement, reaching a four-year low, underscoring the market's concern over the company’s stability and future direction.
UnitedHealth Group recently announced that its CEO, Andrew Witty, will be stepping away from his post due to personal reasons1. The company’s current chairman, Stephen Hemsley— who served as the CEO for more than a decade until 2017—will fill the vacant position.
Per Reuters, he is expected to earn an annual salary of $1 million, plus a one-time $60 million equity award.2
A Tumultuous Year
The move comes during a time when only a few weeks ago, the company slashed its yearly forecast and shared its first earnings miss since the financial crisis of ’08. There were also other headlines over the past year or so including in February 2025, when the DOJ investigated UnitedHealthcare’s billing practices pertaining to Medicare (recording diagnoses that generate extra payments to Medicare Advantage plans).3
It was also revealed this past January 2025 that 2024’s cyberattack4 impacted the personal information of 190 million people—which was considered the US’ largest healthcare data breach ever—while in December 2024, Brian Thompson, CEO of its insurance unit, UnitedHealthcare, was murdered in New York.
Given what has transpired as of late, Kevin Gade, the COO of Bahl & Gaynor, a UnitedHealth investor, commented to Reuters that this news was surprising, but understandable.
"We're not likely to hear more on Andrew’s departure, but it’s fair to suggest the recent killing of his co-worker, the constant fear of his family's and his safety and the operational pressures of recent likely led (in) part to this decision," he said.
Meanwhile, in the midst of this development, UnitedHealth Group shares declined nearly 18%, representing a four-year low.
References
1. Roy S, Sneha SK. UnitedHealth CEO leaves abruptly, company pulls forecast as shares sink. Reuters. May 13, 2025. Accessed May 14, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/unitedhealth-ceo-andrew-witty-steps-down-2025-05-13/
2. UnitedHealth's CEO Hemsley to get $1 million annual base pay. Reuters. May 14, 2025. Accessed May 14, 2025. https://www.reuters.com/sustainability/boards-policy-regulation/unitedhealths-ceo-hemsley-get-1-million-annual-base-pay-2025-05-14/
3. Roy S, Niasse A. DOJ launches UnitedHealth billing probe, WSJ reports; insurer says it is unaware. Reuters. February 21, 2025. Accessed May 14, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/doj-investigates-medicare-billing-practices-unitedhealth-wsj-reports-2025-02-21/
4. UnitedHealth says hack at tech unit impacted 190 million people. Reuters. January 24, 2025. Accessed May 14, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/unitedhealth-confirms-190-million-americans-affected-by-hack-tech-unit-2025-01-24/
5. Wehrwin P, Contreras B. University of Pennsylvania Grad Luigi Mangione Identified as POI in Killing of UnitedHealthcare CEO Brian Thompson. Managed Healthcare Executive. December 9, 2024. Accessed May 14, 2025. https://www.managedhealthcareexecutive.com/view/university-of-pennsylvania-grad-luigi-mangione-identified-as-poi-in-killing-of-unitedhealthcare-ceo-brian-thompson
