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Unformatted text preview: Oxford Health Gets Sick 1 Oxford Health Gets Sick MBA540 Managerial Economics Douglas Silber May 1, 2011 Muleka Kikwebati Saint Leo University Oxford Health Gets Sick 2 Oxford Health Gets Sick Written by Ron Winslow (1998), “Wiggins, Ex-CEO of Oxford Health, Took 61% Cut in Total Pay Last Year” is an article which discusses the excessive compensation of some executive officers even when the companies of those officers are losing money. In 1997, the former chairman and CEO of Oxford Health Plans, Inc. Stephen F Wiggins took it upon himself to take a sixty one percent cut in total pay as Oxford was taking on huge losses in profit and in its stock price (Winslow, 1998). Due to the issues the company has faced over the past few years, many of the executives have left the organization. Winslow (1998) writes, “Among other things, the difficulties precipitated a major management shakeup: Just two of the seven executives listed on the report remain as employees of the company”. (Winslow, 1998). Additionally, the company was forced to look for $700 million in financing to better stabilize their...
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This document was uploaded on 08/24/2011.
- Spring '11