H. Edward Hanway, who is retiring at year end as Cigna Corp.’s chairman and chief executive officer, is preparing to sell common stock that could reap him as much as $10.5 million, a government filing said.
Hanway has established a pre-arranged stock trading plan to exercise stock options and sell shares in accordance with federal securities statutes, the Securities and Exchange Commission filing said.
Hanway, 57, announced in June his intention to retire after a decade as chairman and CEO of the Philadelphia-based managed care company with major operations in Bloomfield.
David M. Cordani, 43, Cigna’s chief operating officer, will succeed Hanway as CEO.
Rule 10b5-1 of the Securities and Exchange Act of 1934 permits corporate officers and directors  to adopt pre-arranged stock trading plans when they do not possess material non-public information that instructs a third party to buy or sell a specified number of shares of company stock at a future time.
Hanway’s stock trading plan is for estate and financial planning purposes in anticipation of his retirement, the filing said.
His plan calls for the sale of a maximum of 300,000 shares, only if the Cigna’s stock price reaches $35.
At mid-morning, Cigna was down 49 cents, or 1.5 percent, at $31.59.
It also includes the exercise for shares of certain employee options that are within six months of expiration. Hanway’s stock trading plan ends on Feb. 28, 2010.
Transactions under the stock trading plan will be disclosed through SEC filings, the agency said.
