Former CEO Stephen Hemsley Returns to Lead UnitedHealth Amid Leadership Changes
Minnetonka, Wednesday, 14 May 2025.
UnitedHealth reinstates former CEO Stephen Hemsley following Andrew Witty’s resignation, as the company faces significant financial challenges and a notable $60 million compensation package for Hemsley’s return.
UnitedHealth’s Leadership Shake-Up
UnitedHealth Group (NYSE: UNH) has reinstated Stephen Hemsley as CEO following the unexpected resignation of Andrew Witty, who stepped down citing personal reasons. As of May 14, 2025, Hemsley returns to lead the company amidst a challenging period marked by financial difficulties and operational issues [1][2][3].
Strategic Reinstatement
Stephen Hemsley, who previously served as CEO from 2006 to 2017, takes over the role following the abrupt departure of Andrew Witty just one day prior. This decision is part of UnitedHealth’s efforts to ensure continued stability and address ongoing challenges, including rising medical costs and a significant drop in stock value [2][4][5].
Financial and Operational Challenges
UnitedHealth has faced significant setbacks in recent months, culminating in the decision to suspend its 2025 financial outlook due to unexpected medical costs. The company aims to return to growth by 2026, focusing on operational efficiency and strategic adjustments to address these escalating costs [3][4][6].
Hemsley’s $60 Million Compensation
Upon his return, Stephen Hemsley is set to receive a substantial $60 million equity package in non-qualified stock options, reflecting the company’s confidence in his leadership amid turbulent times [1][2]. This compensation plan underscores the importance placed on a smooth transition and strong governance [5].