Along with a lot of other folks, I've been critical of the porcine behavior of UnitedHealth Group CEO, William W. McGuire, in the past. You can read posts here, here and here predicting the eventual demise of this hog. Yesterday was that day. The New York Times has a story this morning about McGuire being forced to resign from the company yesterday and also give up a portion of the $1.1 billion in stock options he holds. In addition, the general counsel and another member of the UHG board were dismissed. A report commissioned by the board to look into the timing of UHG's stock options to McGuire was critical of the company's internal controls and found that UHG had backdated the stock options, rigged the system, to ensure that McGuire and others realized the greatest amount possible on them. You can read the report performed by the outside law firm retained by UHG here as linked to from UHG website. Other changes are in the works at UHG and the company remains under investigation from the U.S. Justice Department, the SEC, the IRS and the Minnesota Attorney General's office. An analyst at Goldman Sachs predicts that UHG's stock price will fall now that McGuire, one of the darlings of Wall Street, is leaving. Sad.
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