Cigna said it has unlocked approximately $37 million worth of shares and options for Herbert A. Fritch, president of its HealthSpring business.
When Cigna acquired HealthSpring in Jan. 2012 for $3.8 billion, it signed a retention agreement with Fritch that forbade him from selling or transferring any of his 149,501 Cigna shares and 684,473 underlying options, referred to as a “lock-up” provision. At the time of the acquisition, those shares and options were worth $26 million, but have since more than doubled in value, to $65 million, as Cigna’s share price has climbed.
This week, Cigna reduced the number of Fritch’s shares and options in lock-up to 81,001 and 273,787, respectively. They have a current value of $28 million, Cigna said.
Fritch is still required to hold shares worth at least three times his $1 million base salary in Cigna stock. He currently holds approximately six times the value required, the company said.
