Executive pay would rise under health care merger
PHILADELPHIA — Top executives of Independence Blue Cross and Highmark would see millions of dollars worth of raises if the two health care companies are allowed to merge, according to documents filed with the state.
Highmark chief executive Kenneth Melani, who is expected to have the same job at the merged company, would see his salary rise 31 percent, from $2.97 million to $3.9 million, including incentives, according to documents filed with the Pennsylvania Insurance Department.
The next two biggest raises would go to chief financial officer Nanette DeTurk and David M. O'Brien, executive vice president for government services, both from Pittsburgh-based Highmark.
DeTurk, who is in line to be CFO of the combined entity, could get a $635,098 increase in total pay, which includes potential incentives. O'Brien, head of Medicare operations, would get a $556,184 raise under the plan filed Thursday.
Independence Blue Cross CEO Joseph Frick would earn $2.94 million, the same as his current pay, if the merger goes through. In 2006, Frick's pay was $1.6 million.
Last year, Philadelphia-based Independence Blue Cross and Highmark, a Blue Shield affiliate, announced their desire to merge. The Justice Department cleared the plan, which remains under review by the state.
The merger would create a $22.5 billion insurance company.
