Pa. Health-Care Merger May Yield Pay Increases for Top Executives

If two Pennsylvania nonprofit health-care companies merge, the top executives at both organizations stand to receive large pay increases, reports the Associated Press.

If approved by state regulators, the merger of Independence Blue Cross and Highmark would create a $22.5-billion insurance company, the news agency reports.

Kenneth Melani, slated to become the chief executive of the merged entity, would see his salary increase by 31 percent, to $3.9-million, including incentives. Mr. Melani is currently chief executive of Highmark.

Two of Highmark’s other executives, its chief financial officer, Nanette DeTurk, and its executive vice president for government services, David M. O’Brien, also stand to receive significant raises. Ms. DeTurk could get a $635,098 increase, while Mr. O’Brien could get a $556,184 increase, the news agency reports.

The state is expected to make a decision on the merger by year’s end.