King Kong

Let’s face it …most of us have been feeling a financial pinch over the last few years. Rising prices, a high jobless rate, real estate and stock markets in free fall. It hasn’t been easy for most Americans.

Even people working for our health insurance carriers are not immune. Last summer, Horizon Blue Cross and Blue Shield (New Jerseys largest health insurance carrier) laid off hundreds of employees, including many who were with the company for 20 years or longer. Those workers who retained their jobs are now working even longer hours for the same pay, as they try in vain to make up for the reduction in the work force. As a business, Horizon indicated a loss of $946,370 in 2009 on revenue from premiums of $5.1 billion. It seems that Horizon workers are feeling the economic pinch just like the rest of us.

Well, most of them, anyway.



According to a recent article in the Asbury Park Press, the president and CEO of Horizon received a 59% pay hike in 2009, taking home a cool $8.7 million in salary and benefits. This broke down to a salary of $934,615 and a bonus of nearly $7.8 million. Horizon’s nine highest-paid executives fared even better, with a 61% increase in salary and bonuses from their 2008 compensation. The 2009 compensation for Horizons top 9 executives totaled 24.3 million dollars. The majority of this money was given in the form of bonuses.


I have several questions. Perhaps someone could answer them for me?

Question #1: Bonuses used to be given as a reward to employees exceeded the expectations of their employer. With last years’ massive lay-offs, skyrocketing premiums, and reduced service, what exactly was Horizon’s board of director’s expecting?

Question #2: Horizon is a not-for-profit organization. They posted a loss of around 1 million dollars last year. They could have broken even if they increased executive bonuses by only 50% . How can a not-for-profit company be allowed to do this?

Question #3: Why is this man smiling?




Oh wait! I know the answer to that one!


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