Cigna to Tie Executive Compensation to Customer Satisfaction

Share This Email:

March 19th, 2025

Thanks to Rebecca Pifer

Cigna has announced a plan to improve healthcare affordability and accessibility, including linking executive compensation to customer satisfaction.

The insurer will tie bonus awards for high-level officers to its net promoter score (NPS), a measure of customer loyalty and satisfaction. It also plans to invest in care advocates, reduce barriers to care, and improve communication between doctors and patients regarding prior authorization requests. Additionally, Cigna will release an annual "customer transparency" report with data on prior authorization requests, appeals, and denials.

The announcement follows industry-wide scrutiny and public backlash after the December killing of UnitedHealthcare’s CEO, which intensified criticism of health insurers. Cigna is the first to release a specific plan in response. 

Cigna CEO David Cordani’s compensation is heavily performance-based, with 93% of his earnings in 2023 tied to company benchmarks. While Cigna did not disclose how NPS will impact executive pay, it confirmed that bonuses for thousands of executives will also be affected. 

The company, which insures 17.5 million people, plans to enhance its support for members with complex conditions like cancer, simplify administrative processes for prior authorizations and claims, and upgrade digital tools for providers. 

Cigna’s pharmacy benefit manager, Express Scripts, recently announced similar measures to increase pricing transparency and lower prescription costs. 

Starting next year, Cigna will publish a report tracking its progress on these initiatives. It is also establishing an Office of Excellence and Transformation, led by Chris DeRosa, to oversee these efforts. 

Cigna has allocated up to $150 million for these changes in 2025, a small fraction of its projected $252 billion in revenue. CEO Cordani acknowledged public concerns and emphasized the need for further industry improvements. 

Following the announcement, Cigna’s stock saw a slight increase. 

Veritas Executive Compensation Consultants, ("Veritas") is a truly independent executive compensation consulting firm. We are independently owned, and have no entangling relationships that may create potential conflict of interest scenarios, or may attract the unwanted scrutiny of regulators, shareholders, the media, or create public outcry. Veritas goes above and beyond to provide unbiased executive compensation counsel. Since we are independently owned, we do our job with utmost objectivity - without any entangling business relationships. Following stringent best practice guidelines, Veritas works directly with boards and compensation committees, while maintaining outstanding levels of appropriate communication with senior management. Veritas promises no compromises in presenting the innovative solutions at your command in the complicated arena of executive compensation. We deliver the advice that you need to hear, with unprecedented levels of responsive client service and attention. Visit us online at www.veritasecc.com, or contact our CEO Frank Glassner on his personal website at www.frankglassner.com, via phone at (415) 618-6060, or via email at fglassner@veritasecc.com. He'll gladly answer any questions you might have. For your convenience, please click here for Mr. Glassner's contact data, and click here for his bio. VERITAS EXECUTIVE COMPENSATION CONSULTANTS 12 Avocet Court | Novato, CA 94949, USA | 415-618-6060 | http://www.veritasecc.com Dignitas, Inc. ©2024 • All Rights Reserved