UnitedHealth's Filing Follies

For UnitedHealth (UNH Quote), a compensation-related headache has escalated into a full-blown migraine.

The giant health insurer, suspected of granting in-the-money stock options to its wealthy executives, has delayed the filing of its latest quarterly report due to possible accounting changes that could prove material in nature. The changes, if necessary, would reflect the rising value of options issued to company employees -- including massive grants to CEO William McGuire -- and drive up reported expenses as a result.

UnitedHealth's stock tumbled 3.6% to $47.22 on the news.

The filing delay comes five months into an internal investigation of past stock-option grants that could now stretch into November. Moreover, it comes just after the federal government filed criminal charges against executives at Comverse (CMVT Quote) for allegedly backdating stock options of their own.

A.G. Edwards analyst Paul Newsome sounded concerned by the latest development.

"In our view, the delay of the 10-Q is significant evidence that there are real problems with UnitedHealthcare's stock-option accounting," Newsome wrote when downgrading the company's stock from buy to hold on Thursday. "It also increases, in our view, the likelihood that its well-regarded CEO will be pressured to leave."

While leading UnitedHealth through a period of explosive growth, McGuire has cashed in hundreds of millions of dollars worth of stock options over the years. He still has a pile of unexercised options valued at more than $1 billion as well.