Highmark's still working out severance for fired CEO
Nearly a year after firing Ken Melani, Highmark Inc. continues to negotiate a severance deal with its former CEO.
Melani, let go April 1 when he got into a fistfight with his girlfriend's husband, made $3.9 million last year.
His 2012 pay, which Highmark reported in an annual filing with the state Insurance Department, included $290,000 in salary, a $3.3 million bonus and $316,000 in other compensation.
It does not include a severance related to his firing, which is the subject of ongoing arbitration, Highmark spokesman Michael Weinstein said.
Weinstein would not say how much money Melani seeks.
Melani's bonus last year was deferred compensation, “earned in previous years for services performed, to which he was entitled,” Weinstein said.
Melani, 59, lives in Indiana Township with his family and is not working. He declined to discuss the arbitration and referred questions to his employment attorney, Sam Cordes, who declined to comment.
Highmark, the state's largest health insurer, fired Melani when police charged him with trespassing and assault related to the fight in Oakmont. The charges were dropped after he underwent counseling.
Highmark named William Winkenwerder as its CEO in early June; he started in mid-July. The former Defense Department assistant secretary for health affairs was paid $1.9 million last year, according to Highmark's filing.
In addition to Winkenwerder and Melani, Highmark paid eight current or former executives more than $1 million each, the filing shows.
In between Melani's firing and Winkenwerder's hiring, Highmark Chairman J. Robert Baum stepped in as interim CEO and received $310,725, in addition to pay for his board service of nearly $82,000.
Weinstein declined to comment on any executive's compensation.
“Generally speaking, the compensation level of Highmark's CEO and its 10 highest compensated employees reflects Highmark's size, the diversity of the company's line of business and its financial performance,” he said.
The insurer, with nearly 5 million members in Pennsylvania, Delaware and West Virginia, had revenue of $14.8 billion and net income of $444.7 million in 2011. It is expected to report its 2012 finances this month.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or email@example.com.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- As historic breakup nears, Alcoa works to redefine its ‘advantage’
- Black Friday chaos dwindles thanks to earlier deals, online sales
- Older workers try to cut back on hours at job
- Paying pals digitally catches on
- Batteries key to alternative energy’s success
- Covestro leader MacCleary finds stability amid change
- Small stores take big gamble by not upgrading credit card readers
- Travelers contend with increase in ground delays
- $170.4M AmEx charge yields whopping perk for Chinese billionaire
- Mall stores required to open for Thanksgiving
- Feds upgrade GDP’s growth