David Wichmann is stepping down as chief executive of UnitedHealth Group, effective immediately, after less than four years running Minnesota’s largest company, a period that saw significant growth for the Minnetonka-based health care conglomerate that includes UnitedHealthcare, the nation’s largest health insurer.
His successor is Andrew Witty, head of the company’s Optum subsidiary for health care services who recently took a leave to help the World Health Organization with global vaccination efforts to address the COVID-19 pandemic. From 2008 to 2017, Witty was chief executive and then a director of pharmaceutical giant GlaxoSmithKline.
Wichmann came to UnitedHealth Group in the 1990s, following previous CEO Stephen Hemsley from the accounting firm Arthur Andersen. His tenure as CEO was significantly shorter than that of his predecessors — Hemsley served as chief executive for just over 10 years while his predecessor, Dr. William McGuire, held the top spot for more than a decade.
Hemsley, who is now chairman of the company’s board, said Thursday in a statement: “Andrew Witty combines an extraordinary breadth and depth of health care experience, sophisticated strategic thinking and outstanding leadership development skills, making him uniquely well-positioned to help the company take the next steps on its steady path to grow and deliver for its shareholders and the customers and people we are privileged to serve.”
UnitedHealth Group announced the changes Thursday morning. The company’s stock was off 2.1% to $330.88 in late morning trading.
Witty becomes chief executive immediately and joins the company’s board of directors. Wichmann will continue in a transition period through March.
In a memo sent to employees, Wichmann called the news that he is stepping down “bittersweet.”
“While this is the right decision for me and my family, I will continue to be your biggest supporter,” Wichmann wrote in the memo, which was obtained by the Star Tribune and first reported by the Wall Street Journal.
While UnitedHealth Group is best known for health insurance, Optum for many years has posted a faster growth rate with its mix of businesses ranging from managing pharmaceutical benefits to consulting with other insurers and health care providers on their data and IT needs.
With more than 330,000 employees worldwide, UnitedHealth Group employs about 18,000 people in Minnesota.
The company’s board lauded Wichmann, who became CEO in September 2017, for leading the company through a period of sizable growth before navigating the challenges of the coronavirus pandemic in 2020. Under Wichmann, UnitedHealth Group continued its push to become one of nation’s largest providers of health care, with a fast growing unit for clinics, surgery centers and urgent care.
The health care business is part of Optum, where Witty served as chief executive beginning in 2018. He recently returned to the company after taking a leave from April to December last year to serve as global envoy for the World Health Organization’s COVID-19 efforts.
In a statement, Witty called UnitedHealth Group “one of the most consequential organizations in health care, where our responsibility is to execute flawlessly and deliver on our potential each day. … Dave Wichmann is leaving a powerful legacy of service to others and commitment to innovation for us to build upon.”
Witty added the role of president of UnitedHealth Group in November 2019. Before him, Wichmann was the last company executive to hold the title, a position he had before becoming CEO.
As part of Thursday’s announcement, UnitedHealth Group said Dirk McMahon, who has been CEO of UnitedHealthcare since June 2019, becomes the company’s president and chief operating officer.