Because U.S. District Judge James Rosenbaum’s previous directive had been set to expire Monday, the Minneapolis-based jurist extended it to October 15 while a special litigation committee created by the UnitedHealth board completes its study of a raft of options-related lawsuits, Reuters reported (See Judge Freezes McGuire’s Unexercised Options ).
Rosenbaum’s order applies to William McGuire, who stepped down as UnitedHealth chairman and chief executive last year following an internal report by the insurer that concluded many of his option awards were likely backdated.
McGuire, one of the highest-profile executives caught up in the U.S. options backdating scandal, had accumulated more than $1.6 billion in stock options by the end of 2005. Following the internal report, he agreed to reprice some of those options, reducing their value.
Rosenbaum’s earlier order also temporarily froze McGuire’s retirement pay, reportedly $5.1 million a year. However, Rosenbaum’s latest order allows the company to pay McGuire up to $3 million out of the ex-CEO’s executive savings plan while the freeze remains in effect, the Reuters report said.