Health Care

UnitedHealth Cleans House

 

Skolnick welcomes the upcoming changes.

"The CFO had to fall on a sword," says Skolnick, who has a fair value rating on the company's stock. "Ditto for the HR director. ... There really isn't anything here that isn't obvious."

Two big matters remain undecided, however. UnitedHealth has yet to determine just how much its past option grants will cost the company. It has said only that the charge will be "material" -- exceeding the hundreds of millions of dollars it has already warned about -- and has deemed its past financial statements unreliable in the meantime.

In addition, UnitedHealth has yet to reveal a finalized retirement package for McGuire. Critics have sought to block the rich benefits that McGuire's contract could deliver to him. Skolnick, for one, hopes that new company Chairman Richard Burke will listen.

"They need to keep that a very skinny retirement package; if they don't, it will mean another leg down for the stock -- at least temporarily," she says. "But I suspect that Richard Burke understands."

>To order reprints of this article, click here: Reprints

TheStreet Premium Services

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,393.45 1,310.33 2,827.34 15.81
Oil *
101.78
DOWN
26.41
DOWN
2.99
DOWN
10.02
DOWN
0.44
10 Yr
1.58%
SPDR Gold
151.62
-0.21%
-0.23%
-0.35%
-2.71%
Data delayed 20 minutes

Top Stories and Tools

Articles From

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet