Aetna's New Chairman-CEO Says Tide Will Turn in 2002.The problems that face struggling health-care giant Aetna Inc. are "serious, but all solvable," said Dr. John W. Rowe, Aetna's chairman, president and chief executive officer, at the company's April 27 annual meeting.
Rowe, presiding pre·side
intr.v. pre·sid·ed, pre·sid·ing, pre·sides
1. To hold the position of authority; act as chairperson or president.
2. To possess or exercise authority or control.
3. over his first annual meeting, said that although the company's health-care premium yields are now on track and its membership "remains strong and is growing," the company's largest business lines--commercial and Medicare health maintenance organization risk products--aren't meeting the company's or shareholders' expectations. "My highest priority is to address the continuing higher-than-anticipated medical costs in our commercial and Medicare HMO HMO health maintenance organization.
A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, risk products," he said.
Rowe said the changes the company is introducing in underwriting Underwriting
1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).
2. The process of issuing insurance policies. , pricing, contracting, benefit plan and design, and its network- and patient-management programs, "will yield additional, substantially improved financial performance in 2003."
One shareholder proposal was rejected by a close margin of 54.6% to 46.6%. The proposal dealt with the election of directors via cumulative voting A method of election of the board of directors used by corporations whereby a stockholder may cast as many votes for directors as he or she has shares of stock, multiplied by the number of directors to be elected. , which means "each stockholder shall be entitled en·ti·tle
tr.v. en·ti·tled, en·ti·tling, en·ti·tles
1. To give a name or title to.
2. To furnish with a right or claim to something: to as many votes as shall equal the number of shares he or she owns, multiplied by the number of directors to be elected, and he or she may cast all of such votes for a single candidate, or any two or more of them as he or she may see fit."