NJBIZ STAFF//August 9, 2005//
WebMD (Nasdaq: HLTH), an Elmwood Park provider of services that help physicians, consumers, providers and health plans navigate the complexity of the health care system, will pay its new CEO a base salary of $660,000, according to a filing made Tuesday with the U.S. Securities and Exchange Commission. Last week, WebMD announced the appointment of Kevin Cameron as its new CEO, effective October 1. The company also named Tony Holcombe as president of WebMD and Roger Holstein as CEO of WebMD Health and said it is considering plans to spin off its WebMD Health unit into a separate public company.According to the SEC filing, on top of his salary, Cameron is eligible for yearly bonuses of up to 100% of his base salary. Effective October 1, he will also receive options to purchase 1.5 million shares of the company”s common stock at an exercise price equal to the closing price of WebMD common stock on that date and 275,000 shares of restricted stock.Seventeen percent of the options and restricted stock will vest on the first anniversary of the grant date, 18.5% on the second anniversary, 20% on the third anniversary, 21.5% on the fourth anniversary and 23% on the fifth anniversary.Cameron, who replaces Holstein, most recently served as special adviser to Martin Wygod, the company”s chairman. He has been part of WebMD”s management since 2000. His employment contract as CEO is for five years, unless terminated earlier.In the filing, WebMD also said that Tony Holcombe will receive a salary of $550,000, compared with the $450,000 he was receiving as president of the WebMD Business Services operating unit. At the close of trading, WebMD shares were up $0.14 to $6.92.