Cigna Corp. chief executive steps down

After nine years at the helm of Cigna Corp., H. Edward Hanway said yesterday that he would step aside as chief executive officer and chairman at the end of the year.

The Philadelphia health insurance company named Hanway's second-in-command, David M. Cordani, to the top job, about a year after promoting Cordani, 43, to the post of president and chief operating officer.

Hanway, 57, a Media native who has been with Cigna 31 years, will retire Dec. 31.

Cigna said in a statement that it would separate the roles of chairman and chief executive to further Cigna's "commitment to the principles of corporate governance best practices."

Board member Isaiah "Ike" Harris Jr. will become nonexecutive chairman Jan. 1. Harris, 56, who has been on the board since 2005, will begin serving as vice chairman July 1.

Hanway's retirement did not come as a complete surprise.

"About a year ago, David Cordani was named president and chief operating officer," said spokesman Christopher Curran. "That was part of the succession planning. You could have read the tea leaves, so to speak, and seen that this was going to happen."

Cordani, who joined Cigna in 1991, has had strategic and operational responsibility for Cigna's health-care, group insurance, and international businesses since last June. He became president of Cigna HealthCare in 2005.

Cordani graduated from Texas A&M University with a bachelor's degree in science and has an M.B.A. from the University of Hartford.

Before joining Cigna, Cordani was with PricewaterhouseCoopers L.L.P. He is a chartered financial consultant and a certified public accountant.

Hanway, who lives in Willistown Township, not far from Media, was unavailable for comment.

Curran said he did not know what Hanway's plans were after he stepped down. "He's been working for 31 years," Curran said. "It's time to take a well-deserved break."

In a statement, Hanway said that during his tenure Cigna "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."

The announcement came after the stock markets closed.

Hanway, a graduate of Loyola College of Baltimore, holds an M.B.A. from Widener University in Chester. He headed Cigna's Property & Casualty business before becoming CEO in 2000.

Hanway's total pay in 2008 was $11.4 million, according to Equilar Inc.

Cigna announced in January that it would eliminate 1,100 positions, or 4 percent of its workforce. The announcement did not include details about where jobs would be cut. The company plans to consolidate some of its real estate locations.

Cigna employs 28,000 worldwide and about 1,200 in its Center City headquarters at 2 Liberty Place.

Besides its Center City workforce, Cigna employs about 2,770 in the rest of Pennsylvania, including offices locally in Blue Bell, Horsham, Bethlehem, and Easton.

About 600 additional workers are in Delaware, and Cigna also employs 300 in New Jersey, most in Jersey City, although there is also an Atlantic City office.

Cigna's stock has ranged between $8 and $44.14 in the last 52 weeks. It was trading at $23.71 after hours yesterday.