UnitedHealth Group CEO Stephen Hemsley, who replaced Andrew Witty, said he has the right strategy in place “for the era ahead.”

(Reuters) -UnitedHealth Group CEO Stephen Hemsley will get an annual base salary of $1 million and a one-time $60 million equity award as he returns to the top role at a tough time for the healthcare conglomerate.

UnitedHealth Group Inc. is giving Stephen Hemsley a one-time $60 million equity award on top of a $1 million base salary as he begins his second round as chief executive officer of the beleaguered insurer.

UnitedHealth Group said its Chief Executive Andrew Witty resigned as of Tuesday, and the company suspended its annual forecast due to surging medical costs, sending shares plunging nearly 18% to a four-year low.

UnitedHealth Group said Chief Executive Andrew Witty stepped down for “personal reasons” after presiding over a punishing period for the company, including a steep drop in its shares after its quarterly earnings last month fell significantly short of investors’ expectations.

UnitedHealth stock tumbled in premarket trading on Tuesday after suspending its 2025 outlook and announcing Stephen Hemsley's return as CEO.