Insurance execs’ pay revealed [Independent Record, Helena, Mont.]

April 05--Mike Frank, in his first full year as president and CEO of Blue Cross Blue Shield of Montana, received about $514,000 in total compensation in 2011, including a $103,000 bonus, according to records filed with the state.

Other top executives for Blue Cross, the state's dominant private health insurer, also received healthy bonuses last year, as well as salary increases in the 3 percent to 7 percent range.

And at New West Health Services -- the state's second-largest health insurer -- President and CEO David Kibbe earned about $414,000 in total compensation last year, but received no bonus.

Frank, an attorney, was promoted from chief of legal operations at the company to CEO in December 2010.

He earned a $385,000 salary last year, as well as the $103,000 bonus and $25,000 in "other compensation," which can include cashed-in vacation and other benefits.

His total compensation package for 2011 was about $100,000 less than what was paid to his predecessor, Sherry Cladouhos, in her final year as company president and CEO in 2010.

Frank Cote, senior director of government relations for Blue Cross, said Blue Cross increased employee salaries an average of 3 percent last year, and that some executives earned a higher raise due to increased duties.

Bonuses are awarded based on reaching goals that will benefit the company in the long run, such as increasing customers and achieving "very rigorous customer service benchmarks," Cote said.

Other top-paid executives at Blue Cross last year were Chief Medical Officer Fred Olson, who had $351,000 in total compensation, including a $60,700 bonus, and Chief Financial Officer Mark Burzynski, who was paid $307,000, including a $52,300 bonus. Both men had salary increases of about 3 percent.

Executives and employees at New West received 2 percent raises last year, said Tanya Ask, the company's vice president of external relations.

Kibbe did not receive a bonus because the company had a loss in 2010, Ask said. However, other executives did receive bonuses because they met performance measures, she added.

New West Chief Financial Officer Richard Gorenflo earned $237,000 last year, including a $20,400 bonus, and Vice President of Strategic Growth Greg Loughlin earned $185,700$17,400 bonus.

Both men left the company last week, as it reduced its workforce to about 70 people. It employed nearly 100 before starting to sell off some of its business last year.

Allegiance Life & Health Insurance Co., based in Missoula, reports only partial executive salaries.

Todd Lovshin, vice president for Allegiance, said the salaries reported are the portion allotted to Allegiance Life & Health, which insures 21,000 people in Montana. Allegiance companies manage health benefits for about 160,000 other customers, he said.

Allegiance CEO Dirk Visser reported a 2011 salary and bonus of about $87,000, for the Allegiance Life & Health portion of business.

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(c)2012 the Independent Record (Helena, Mont.)

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