William W. McGuire
Encyclopedia
William "Bill" McGuire, M.D. (born 1948) is an American pulmonologist, lepidopterist
, philanthropist, and healthcare executive, best known for his tenure as chairman and chief executive officer of UnitedHealth Group
from 1991 until his resignation in 2006.
, New York
, and grew up in League City
, Texas
. He attended college at the University of Texas at Austin
and medical school at the University of Texas Medical Branch
at Galveston
, Texas
. After medical school, he worked in California and Colorado before moving to Minnesota.
When McGuire 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.
and prosecutors in the United States Attorneys' office for the Southern District of New York.
The investigations came to light after a series of probing stories in the Wall Street Journal in May 2006, discussing the apparent "backdating" of stock options, in a then-common process called options backdating
. The backdating was approved by the board of directors, according to the Journal. Several shareholder classes filed lawsuits accusing former UnitedHealth's directors of failing in their fiduciary duty.
In 2007, Dr. and Mrs. McGuire established the McGuire Scholar Program at the University of Minnesota, which provides scholarships to talented students from economically disadvantaged backgrounds. http://www1.umn.edu/news/news-releases/2007/UR_RELEASE_MIG_3666.html
In 2004, Dr. and Mrs. McGuire made a $10 MM gift to the Walker Art Center in Minneapolis, Minnesota.http://expansion.walkerart.org/project/press/capcamp.pdf
In 2004, Dr. and Mrs. McGuire made a $7.5 MM gift to Amherst College
in Amherst, Massachusetts
. The college renamed its life sciences building in their honor.
In 2003, Dr. and Mrs. McGuire made a $10 MM gift to the Guthrie Theater in Minneapolis, Minnesota. http://twincities.bizjournals.com/twincities/stories/2003/09/01/focus1.html
In December 2000, Dr. and Mrs. McGuire made a $4.2 MM gift to the University of Florida to construct and establish the McGuire Center for Lepidoptera Research and the McGuire Center for Insect Conservation. http://www.flaentsoc.org/mcguiredonation.html
Lepidopterist
A lepidopterist is a person who specialises in the study of Lepidoptera, members of an order encompassing moths and the three superfamilies of butterflies, skipper butterflies, and moth-butterflies...
, philanthropist, and healthcare executive, best known for his tenure as chairman and chief executive officer of UnitedHealth Group
UnitedHealth Group
UnitedHealth Group Incorporated is a diversified health and "well-being" company. Headquartered in Minnetonka, Minnesota, UnitedHealth Group offers a spectrum of products and services through two operating businesses: United Healthcare and Optum. Through its family of subsidiaries and divisions,...
from 1991 until his resignation in 2006.
Personal life
McGuire was born in TroyTroy, New York
Troy is a city in the US State of New York and the seat of Rensselaer County. Troy is located on the western edge of Rensselaer County and on the eastern bank of the Hudson River. Troy has close ties to the nearby cities of Albany and Schenectady, forming a region popularly called the Capital...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, and grew up in League City
League City, Texas
League City is a city in Galveston County and Harris County in the U.S. state of Texas, within the metropolitan area. As of the 2000 U.S. Census, the city population was 45,444; in the 2006 census estimate, the population was listed as 67,200. The 2010 Census places the population of League City...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
. He attended college at the University of Texas at Austin
University of Texas at Austin
The University of Texas at Austin is a state research university located in Austin, Texas, USA, and is the flagship institution of the The University of Texas System. Founded in 1883, its campus is located approximately from the Texas State Capitol in Austin...
and medical school at the University of Texas Medical Branch
University of Texas Medical Branch
The University of Texas Medical Branch is a component of the University of Texas System located in Galveston, Texas, United States, about 50 miles southeast of Downtown Houston...
at Galveston
Galveston, Texas
Galveston is a coastal city located on Galveston Island in the U.S. state of Texas. , the city had a total population of 47,743 within an area of...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
. After medical school, he worked in California and Colorado before moving to Minnesota.
UnitedHealth
McGuire joined United HealthCare in November 1988 as an executive vice president when the Peak Health Plan, of which he was then president and chief operating officer, was acquired by United. In May 1989, he was appointed to the board of directors and became chief operating officer of United. 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.When McGuire joined United, it was an unprofitable regional health maintenance organization
Health maintenance organization
A health maintenance organization is an organization that provides managed care for health insurance contracts in the United States as a liaison with health care providers...
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.
Options backdating
In 2006, the Securities and Exchange Commission began investigating the conduct of UnitedHealth's management and directors, including McGuire, as did the Internal Revenue ServiceInternal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
and prosecutors in the United States Attorneys' office for the Southern District of New York.
The investigations came to light after a series of probing stories in the Wall Street Journal in May 2006, discussing the apparent "backdating" of stock options, in a then-common process called options backdating
Options backdating
Options backdating is the practice of issuing options contracts on a later date than that which the options have listed. While options backdating is not, in and of itself, an illegal practice, intentional backdating that coincides with low underlying stock prices and accounting reports that claim...
. The backdating was approved by the board of directors, according to the Journal. Several shareholder classes filed lawsuits accusing former UnitedHealth's directors of failing in their fiduciary duty.
Resignation
On October 15, 2006, it was announced that McGuire would step down immediately as chairman and director of UnitedHealth. McGuire remained as chief executive officer through December 1, and was succeeded by Stephen Hemsley (then president and chief operating officer, and a member of the board of directors). From 1989 until 2006, McGuire received compensation from UnitedHealth in the form of stock options that eventually became worth around $1.6 billion. However, in the course of the litigations that followed his departure from the company, McGuire was temporarily enjoined from exercising the options. The injunction was later released in late 2008.Settlement
On December 6, 2007, the Securities and Exchange Commission announced a settlement, under which McGuire was to repay $468 million as a partial settlement of the backdating prosecution. McGuire agreed to not serve as an officer or director of a public company for ten years.Philanthropy
In October 2009, Dr. McGuire and his wife Nadine donated a rare butterfly collection valued at $41 MM to the University of Florida.http://minnesota.publicradio.org/display/web/2009/10/13/butterfly-donation/In 2007, Dr. and Mrs. McGuire established the McGuire Scholar Program at the University of Minnesota, which provides scholarships to talented students from economically disadvantaged backgrounds. http://www1.umn.edu/news/news-releases/2007/UR_RELEASE_MIG_3666.html
In 2004, Dr. and Mrs. McGuire made a $10 MM gift to the Walker Art Center in Minneapolis, Minnesota.http://expansion.walkerart.org/project/press/capcamp.pdf
In 2004, Dr. and Mrs. McGuire made a $7.5 MM gift to Amherst College
Amherst College
Amherst College is a private liberal arts college located in Amherst, Massachusetts, United States. Amherst is an exclusively undergraduate four-year institution and enrolled 1,744 students in the fall of 2009...
in Amherst, Massachusetts
Amherst, Massachusetts
Amherst is a town in Hampshire County, Massachusetts, United States in the Connecticut River valley. As of the 2010 census, the population was 37,819, making it the largest community in Hampshire County . The town is home to Amherst College, Hampshire College, and the University of Massachusetts...
. The college renamed its life sciences building in their honor.
In 2003, Dr. and Mrs. McGuire made a $10 MM gift to the Guthrie Theater in Minneapolis, Minnesota. http://twincities.bizjournals.com/twincities/stories/2003/09/01/focus1.html
In December 2000, Dr. and Mrs. McGuire made a $4.2 MM gift to the University of Florida to construct and establish the McGuire Center for Lepidoptera Research and the McGuire Center for Insect Conservation. http://www.flaentsoc.org/mcguiredonation.html