The former chief executive of Magellan Health Services Inc., Dr. René Lerer, is receiving a $4.2 million cash award for his performance, according to a company filing March 5 with the U.S. Securities and Exchange Commission.
Lerer stepped down as CEO at the end of last year, but he remains executive chairman of the Avon-based specialty health care management company, which specializes in behavioral health, radiology and specialty pharmaceutical benefits.
Lerer was entitled by his employment agreement to an equity grant based on his performance, according to the SEC filing. The company's Compensation Committee decided to give a cash award instead, subject to the same performance goals, in installments of $1.4 million each year.
Barry M. Smith has been CEO of Magellan since the start of the year. Smith was on the board between 2005 and 2008, and joined again in 2011. Smith is the founder, chair and CEO of VistaCare and he was chair and CEO of ValueRx.