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Backdating of options

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In November 1989, he became president of the company, a position he held until May 1991.He was named chief executive officer in February 1991, and chairman of the board of directors in May of the same year.

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At first glance, call options represent the perfect way to tie an executive's level of compensation to the company's performance because as the company's share price increases, so does the payoff the executive will receive.From 1989 until 2006, Mc Guire received compensation from United Health in the form of stock options that eventually became worth around $1.6 billion.On December 6, 2007, the Securities and Exchange Commission announced a settlement, under which Mc Guire was to repay $468 million as a partial settlement of the backdating prosecution.This process makes the granted option in-the-money and of value to the holder.This process occurred when companies were only required to report the issuance of stock options to the SEC within two months of the grant date.When Mc Guire joined United, it was an unprofitable regional health maintenance organization with annual revenues around $400 million.

When he left, United was one of the largest, most profitable, and most diversified healthcare companies in the world, with more than $70 billion in annual revenues, more than 50,000 employees, and more than sixty million health plan members.

He also owns Minnesota United FC, Minnesota's professional soccer team.

(born 1948) is an American pulmonologist, lepidopterist, philanthropist, and healthcare executive, best known for his tenure as chairman and chief executive officer of United Health Group from 1991 until his resignation in 2006.

In a backdated situation, however, the options would be granted today (August 16), but their listed day of granting would be June 1 in order to give the options a lower strike price.

Options backdating defeats the purpose of linking an executive's compensation to the company's performance, because the bearer of the options will already have experienced a gain.

The team was rebranded as Minnesota United FC in March 2013. Mc Guire and his wife Nadine donated a rare butterfly collection valued at $41 MM to the University of Florida.