(Reuters) -UnitedHealth Group said on Thursday it will replace its finance chief John Rex with an external hire, Wayne DeVeydt, adding to the management changes at the health insurer that has been struggling to control its medical costs.
Rex, who has been the company’s CFO since 2016, will continue as a strategic adviser to the CEO, with the changes effective September 2.
DeVeydt, 55, was most recently managing director and operating partner at Bain Capital, and was also the finance chief of UnitedHealth’s rival Elevance, then called Anthem, between 2007 and 2016.
During his tenure at Anthem, DeVeydt oversaw the company’s $4.9 billion acquisition of Amerigroup in 2012 and was involved in the attempted $54 billion acquisition of Cigna, which was ultimately blocked by regulators.
DeVeydt will get an annual base salary of $1 million and other benefits such as equity awards and a $2 million life insurance policy, UnitedHealth said.
The largest U.S. health insurer had seen an abrupt departure of Andrew Witty as CEO in May, with Stephen Hemsley replacing him.
Hemsley, who led UnitedHealth for more than a decade until 2017, has re-taken the reins following several setbacks for the company, including a cyberattack last year, federal investigations, soaring medical costs and a top executive’s murder.
Earlier this week, UnitedHealth provided a full-year adjusted profit forecast of at least $16 per share after suspending its prior outlook in May, and revealed billions of additional costs the company will face in the upcoming quarters.
(Reporting by Christy Santhosh in Bengaluru; Editing by Leroy Leo)
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