Company: Aetna (AET)
Total 2010 compensation: $57.8 million
Aetna’s shares were down 7% in 2010, underperforming the S&P 500 by a large margin. But Williams’ pay was based on several factors, none of which was stock price. EPS, pre-tax operating margins and an increase in the dividend were the major measures of his performance, according to the board.
The board can make the case, persuasively, that the insurance firm had a good year financially in 2010. The company’s EPS rose from $2.84 in 2009 to $4.18 last year, even though revenue fell slightly from $28.3 billion to $27.6 billion. Williams retired in 2011. The board gave Williams a relatively reasonable package as he left, at least based on 2010 performance.