Nonprofit Blue Shield of California stated chief executive Paul Markovich earned $3.5 million in 2015 in its first detailed disclosure on executive pay, according to Kaiser Health News.
Here are eight insights:
1. The $3.5 million is a 40 percent increase from 2013, when Mr. Marovich assumed his role.
2. After facing critiques about lack of transparency on executive compensation, Blue Shield listed the compensation for its 10-highest paid executives by name.
3. In 2014, Mr. Markovich made $3 million, making this year's salary a $500,000 bump.
4. Of his 2015 salary, Mr. Markovich had a base salary of $1.07 million and incentive plan payouts totaling $2.45 million.
5. As California's third-largest health insurer, Blue Shield has 4 million members and $14.8 billion in revenue each year.
6. While a Blue Shield Spokesman claimed Mr. Markovich's pay increase is indicative of the insurer meeting or surpassing its performance goals, consumer advocates argue the insurer waited too long to share these details with their policyholders as well as the public. A critic from Consumer Watchdog in Santa Monica said the report does not list all of the deferred compensation and retirement money top executives could make.
7. A 2010 California law mandates companies to provide information about executive pay, but Blue Shield did not put names with the amounts listed in 2010 and failed to detail what was included regarding salary, bonuses or other compensation.
8. The top 10 Blue Shield executives received $18.8 million in 2015.
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