As Cigna Corp. embarks on its next phase of growth, it has decided to give five shares to each of its 40,000 employees and even expanded their paid leave. It should be noted here that the company has recently won the court approval to break off the failed deal with Anthem Inc.
Cigna all set to allot stock to 40,000 workers!
David Cordani, CEO of Cigna said, ‘It’s meant to be a reinforcement of all of us as owners’. He said that the company over the last year has grown its employee base by around 10% and the benefit awards’ amounting around to $35-$40 million comes as the company is moving to the next phase of growth strategy.
A glimpse on Cigna-Anthem broken deal!
Anthem and Cigna are the 2nd and 3rd largest health providers in the United States. Nearly two years ago, Cigna was agreed to be bought by Anthem. But the merger got stopped as in last July; The Justice Department sued against the merger and even won the first two rounds in federal courts. The judge of the lower federal said that the deal would have resulted in higher prices and would even have ‘other anticompetitive effects’.
Cigna does not wanted the deal to happen and is now seeking a $1.8 billion breakup fee from Anthem by claiming that it was Anthem, who violated their merger agreement. On the other hand, Anthem is still fighting the payout.
The expanded employee benefits!
Cigna is also planning to extend employees’ paid paternity and adoption leave. It is working on a plan which will offer up to four weeks of paid leave to its employees, who are caring for others including their child and ill family members.
Cordani said the company is also starting a sabbatical program. In this program, 12 employees in a year will receive a paid 1 to 3 month fellowship. They will also be entitled for a stipend up to $20,000 in order to support a community work project.
Image Source: Image