Delaware
(State or other jurisdiction of incorporation)
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1-08323
(Commission File Number)
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06-1059331
(IRS Employer
Identification No.)
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
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Item 9.01
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Financial Statements and Exhibits
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(d) Exhibits.
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10.1
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99.1
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CIGNA CORPORATION
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Date: May 31, 2011
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By:
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/s/ Carol Ann Petren | |
Carol Ann Petren
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Executive Vice President and General Counsel
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900 Cottage Grove Rd
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Hartford, CT 06152
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·
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Base Salary – paid bi-weekly at a pre-tax annualized rate of $550,000. This amount will be reviewed annually, beginning with the 2012 annual process, based on your performance and the competitive marketplace for this position.
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·
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Annual Incentive – In 2011, you will be eligible to participate in the Management Incentive Plan (MIP) with a target of $550,000. Your 2011 bonus target will be pro-rated based on your start date in 2011. Awards range from 0 to 200% of target based on company and individual performance. You must be an employee on the date of payment to receive your award. Bonuses are typically paid in the first quarter of the year following the performance period and are not considered earned until the date paid.
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·
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Long-Term Incentive – currently consist of two components. During the annual grant process, subject to Board approval, you will be considered for:
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-
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Stock Options – grants are typically awarded in the first quarter of each year and may vary from 0 to 200% of target based on individual performance. Options typically vest over a 3 year period and expire no later than 10 years after grant. The current options target for your role is $950,000.
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-
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Strategic Performance Shares (SPS) – grants are typically awarded in the first quarter of each year and may vary from 0 to 200% of target based on individual performance. SPS awards are typically paid or vested three years after the beginning of the performance period. Awards are not considered earned until the date paid. The current SPS target for your role is $950,000.
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·
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Sign-On Long-Term Incentive – Contingent upon Board Committee approval, the following long-term incentive awards with an estimated present value of $2,122,345 will be awarded to you:
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o
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$177,900 paid in 2012 (2,372 Strategic Performance Units - SPUs)* paid at formula with $75 target value per unit).
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o
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a Strategic Performance Share (SPS) award with a grant date value $555,556; shares awarded in 2013 per the plan’s formula.
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o
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a Strategic Performance Share (SPS) award with a grant date value $888,889; shares awarded in 2014 per the plan’s formula.
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o
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a Restricted Stock Grant† with a grant date value of $250,000. The Restricted Stock Grant will vest 50% on the third anniversary of the grant, 25% on the fourth anniversary and 25% on the fifth anniversary.
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o
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an option† to purchase CIGNA Corporation common stock. The Options will have a grant date value of $250,000. Typically, Options become exercisable (vest) over three years at the rate of one-third per year.
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·
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Sign-On Cash Bonus – You will receive a sign-on cash bonus of $50,000, less applicable withholdings. The sign-on cash bonus will be paid within your first 30 days of employment with CIGNA. You understand and agree that should your employment be terminated (voluntarily or involuntarily) for any reason other than job elimination or change of control of the Company within one year of receipt of payment, you will reimburse CIGNA an amount equal to one-hundred (100%) percent of the sign-on cash bonus payment. Moreover, you hereby authorize CIGNA, to the maximum extent permitted by law, to recoup the sign-on cash bonus from your final MIP payment or final paycheck. If none or only part of the sign-on cash bonus is recouped from your final MIP payment or final paycheck, you further agree to repay the balance to CIGNA within seven (7) calendar days of the date you leave CIGNA’s employ.
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·
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Relocation - You will be eligible to receive relocation assistance provided you sign a Relocation Reimbursement Agreement. As part of the Relocation Program, CIGNA will pay for Temporary Living (up to 60 days of lodging and meals and two trips home per 30 days), shipment of household goods, closing costs on the sale of your departure home and purchase of a new home, lodging and meals for one home finding trip (up to six days), transportation, lodging and meals for you and your family for the final trip, and a supplemental allowance of $3,000 less taxes.
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·
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Paid Time Off (PTO) – you will be eligible for 28 days of PTO. PTO is prorated in your first year of employment based upon your hire date.
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·
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Executive Financial Services (EFS) – The annual EFS allowance is $6,500. This is the total amount the company will reimburse or pay on your behalf. EFS includes financial counseling with one of the approved firms, tax preparation and will/trust preparation charges by the accounting and legal firms of your choice. There will be a $1,000 first year fee paid to the planner on your behalf when you initially sign with one of the approved financial planners. This is only applicable one time and will not count toward the $6,500 annual allowance in the year it is paid. Expenses incurred by the Company, including the one time fee paid to the planners, for any use of these services will be imputed income and reported as such on your W-2 form for any year in which it is used.
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·
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Executive Travel Services – a special travel unit is available for the purpose of arranging convenient, efficient and secure travel.
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Acceptance:
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/s/ Ralph Nicoletti
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Date:
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May 16, 2011
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Start Date:
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June 20, 2011
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MEDIA CONTACT:
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Ted Detrick, Investor Relations
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Edwin.detrick@cigna.com
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215-761-1414
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or
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Gloria Barone
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Gloria.barone@cigna.com
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215.761.4758
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