TLDR
- UnitedHealth faces heat as a shareholder seeks independent board leadership.
- Calls grow for UNH to split CEO and chair roles amid market, legal pressure.
- UNH stock rises, but investor unrest brews over leadership power structure.
- Cyberattacks, probes, and earnings woes drive push for boardroom reform.
- Shareholder revolt hits UnitedHealth as governance concerns intensify.
UnitedHealth Group (UNH) stock closed at $360.20, up 1.83%, reflecting confidence despite internal and external challenges. However, the gains saw a mild reversal after hours, with the price slightly dropping to $359.95, down 0.07%.
Shareholder Proposal Calls for Independent Chair
A UnitedHealth shareholder has formally proposed that the company adopt a new governance policy requiring an independent board chair. Currently, Stephen Hemsley holds both the CEO and chair positions following the abrupt resignation of former CEO Andrew Witty in May. The Accountability Board, a nonprofit and UnitedHealth shareholder, submitted the proposal citing concerns over power concentration.
The organization stated that combining both roles could compromise board independence and limit checks and balances. It believes that separating the roles would enhance oversight and strengthen shareholder confidence. The Accountability Board confirmed it has held at least $25,000 in UNH shares over the past year.
Hemsley has served as chair since 2017 and resumed the CEO role during a critical phase for the company. The leadership transition came amid financial turbulence and ongoing investigations into UnitedHealth’s operations. The proposal signals growing dissatisfaction and renewed scrutiny from within the shareholder base.
Company Battles Mounting Setbacks and Regulatory Heat
UnitedHealth has endured a string of challenges, including two consecutive earnings misses earlier this year. The company pulled back its 2025 outlook in May, citing rising medical costs and underperformance in government-backed plans. These setbacks forced leadership to rethink financial projections and cost structures.
The firm has faced significant reputational and operational challenges. A cyberattack on its technology division disrupted services critical to the U.S. healthcare infrastructure. Adding to the turmoil, the firm faced a federal investigation and the December murder of its insurance unit chief.
These events have severely tested management and shaken market confidence in the firm’s direction. Leadership now faces the dual challenge of delivering performance while resolving governance concerns. Shareholders continue to press for accountability as the firm seeks to stabilize and recover.
