David M. Cordani, 43, CIGNA’s former president and chief operating officer, was named to succeed Hanway as chief executive officer effective January 1, 2010 after a transition period.

Hanway was named chairman and chief executive officer of CIGNA in 2000. Prior to that, he had served CIGNA as president and chief operating officer and held a number of roles of increasing responsibility with CIGNA and its predecessor company, Insurance Company of North America.

According to CIGNA’s press releases, Hanway had served in leadership capacities with America's Health Insurance Plans, and the Alliance for Health Reform. “He is an outspoken advocate at the national level for greater transparency regarding health care quality and cost information available to consumers and a strong proponent of national quality standards for health care providers. He is recognized as a leader in the effort to improve the quality, accessibility and affordability of health care in the United States. Through the years, Hanway has been active in a wide range of issues and initiatives associated with health, education and international business.”

Hanway was quoted as saying that “during my tenure at CIGNA, our company has evolved to meet the changing needs of our customers, and I am extremely confident that we are on course to continue our track record of success. I am honored to have had the opportunity to lead and serve alongside such a talented, dedicated, diverse and innovative group of individuals throughout my career. Therefore, it is with pride and confidence that we prepare to transition leadership of the company into the capable hands of the next generation.”

“Ed Hanway has been a tremendous leader for our organization,” said Board member Isaiah "Ike" Harris Jr.  “During his 31-year career, he has instilled within the company his deep commitment and respect for our shareholders, our customers, and our employees, as well as for the integrity and values that make CIGNA a leader in the industry. Under Ed’s strategic leadership, the company has transformed from a multi-line insurer to a leading health service company that is committed to improving the health, well-being and sense of security of the people it serves around the world.”

Hanway graduated from Loyola College of Baltimore (B.A., 1974) and Widener University (M.B.A., 1984). Included in his resume is the fact that Hanway was among other American executives who urged the United States government to grant China permanent normal trade relations status earlier in the decade. Hanway met with Chinese premier Zhu Riongji to assist China in developing healthcare, employee benefits, and financial services products. Hanway was quoted at the time as saying that "normalizing trade with China will help give U.S. companies—including CIGNA—greater access to the rapidly expanding Chinese marketplace while bringing China and its people the advantages of increased international commerce" When permanent normal trade relations status was granted to China, CIGNA and others established trade with that country. Hanway later established offices in Beijing, Shanghai, and Guangzhou. CIGNA later entered China’s life insurance market.

According to ABC News, “investors had widely anticipated the transition from Hanway to Cordani. Cigna, like most health insurers, has struggled with investment losses in the slumping economy and has felt the impact of rising unemployment. The company started 2009 by announcing plans to cut 1,100 jobs or about 4 percent of its work force. The insurer said in April its first-quarter profit rose to $208 million, or 76 cents per share, while revenue also increased to $4.77 billion. But total medical enrollment fell 3 percent to 11.4 million members in the first three months of 2009.”

According to FierceHealthcare.com, a news website for healthcare executives, Hanway’s total 2008 compensation of $12,236,740, represented a pay cut from 2007, due mainly to a drop off of more than $11 million in his non-equity incentive plan compensation. Other compensation included the use of a company car with a driver, in-office meals, and emergency assistance services relating to medical exams. 

According to Forbes magazine, Hanway ranked 135^th, 53^rd  and 28^th on its CEO pay rankings for 2009, 2008 and 2007 respectively. CIGNA ranked 621^st and 381^st on Forbes’ lists of the world’s 2000 biggest companies for 2009 and 2008, respectively.

FierceHealthcare.com reports that among health care executives, Hanway’s compensation in 2008 was second only to Ron Williams of Aetna, who earned $24 million and ahead of WellPoint’s Angela Braly, who earned $9.8 million.

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