The Cigna Group (CI, Financial) has announced the upcoming departure of Eric P. Palmer, Executive Vice President for Enterprise Strategy and President and CEO of Evernorth Health Services. Mr. Palmer's employment will conclude on April 26, 2025. In connection with his departure, The Cigna Group and Mr. Palmer have executed an Agreement and Release, which includes several key provisions.
The Agreement outlines a cash payment of $5.2 million, which encompasses 78 weeks of base pay, 150% of Mr. Palmer’s 2025 Enterprise Incentive Plan (EIP) target, a prorated payment of the 2025 EIP target through April 26, 2025, and a COBRA subsidy for 18 months of medical coverage. These benefits are provided under the company's Executive Severance Benefits Plan.
Additionally, the Agreement stipulates that stock options, restricted stock, and strategic performance shares (SPSs) scheduled to vest within 12 months of Mr. Palmer's departure will continue to vest. The SPSs will be paid out based on actual performance, with an estimated aggregate value of $4.8 million, calculated using the April 15, 2025, closing stock price of $328.63 per share. The People Resources Committee of the Board of Directors will determine the percentage of actual shares earned and the timing of SPS awards in accordance with the Long-Term Incentive Plan (LTIP).
Stock options granted prior to 2021 will expire on the earlier of the original expiration date or 90 days post-departure, while those granted after 2020 will expire 90 days after April 26, 2026.
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