Humana Inc. CEO Bruce Broussard exercised stock options Thursday that put a sizable amount of cash in his pockets.
According to filings with the U.S. Securities and Exchange Commission, Broussard exercised three separate stock options that earned him millions.
Stock options are significant to Broussard’s, and many other elite executives’, compensation. Roughly 60 percent of Broussard’s compensation for 2016 was made up stock options. In total, his 2016 compensation was $19.7 million, with about $11.9 million in stock options.
On Thursday, Broussard disposed of 118,000 shares of Humana stock with the average value of about $225.82, for a total of about $26.7 million.
He also exercised two options to acquire Humana stock. In one option, Broussard acquired about 79,000 shares of Humana stock valued at $164.65, for a total of about $13 million. The second option was for about 39,000 shares of Humana stock valued at $167.81, for a total of $6.57 million.
In the end, the three exercised options allowed Broussard to net more than $7.11 million.
Humana’s stock price has increased significantly over the past year. At close May 4, 2016, Humana’s stock price was $175.70 a share, according to historical stock price data. At close on May 4, 2017, Humana’s stock price was $228.85 a share, a 30.3 percent increase.
In its most recent earnings release, Humana reported that first-quarter net income rose $1.12 billion, or $7.49 a share, from $254 million, or $1.68 a share, a year earlier. This was due to Humana collecting on the nearly $1 billion breakup fee related to the abandoned plan to be acquired by Aetna Inc.
Total revenue in the first quarter for Humana fell to $13.76 billion from $13.8 billion last year. This beat the Yahoo Finance consensus estimate of $13.62 billion.
Date:May 05, 2017