Company: CI
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001739940-25-000015
Chunk: 81

Company: Cigna Group
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 81
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 |                                    |     | $1,725,052 |                                                                                                                                                                                                                                                                                         | -0.65 | % |

Hedging and Pledging Restrictions

Our Insider Trading Policy prohibits our directors, executive officers, and all employees from engaging in hedging and pledging transactions. Prohibited transactions include, but are not limited to, trading in put or call options, short sales, zero cost collars, and forward sale contracts.

Risk Oversight

As part of its responsibilities, the Committee considers whether The Cigna Group compensation programs and policies encourage unnecessary or excessive risk-taking behavior. At the request of the Committee, on an annual basis, a comprehensive review of executive and employee incentive compensation programs is conducted to determine whether incentive compensation plans are likely to promote risk-taking behavior that could have a material adverse effect on the Company. The findings of this review are presented to, and discussed by, the Committee each year. The review analyzes:

• compensation governance processes, including general design philosophy and risk considerations in structuring compensation and incentive plans;

• situations where compensation programs may have the potential to raise material risks to the Company;

• internal controls that mitigate the risk of incentive compensation having an unintended negative impact; and

• plan design features that further mitigate compensation risk, including clawback arrangements, holding periods, earnings thresholds, payment structures, and plan caps.

After conducting the review and assessing potential risks, the Committee determined that the Company’s incentive programs do not create risks that are reasonably likely to have a material adverse effect on the Company.

Tax and Accounting Treatment

Section 162(m)(6) of the Internal Revenue Code pertains to the deductibility of compensation paid by health insurers, including The Cigna Group. Under Section 162(m)(6) of the Internal Revenue Code, any per-person compensation in excess of $500,000 paid to any employee or, generally, any individual service provider, will not be deductible by The Cigna Group. The tax deduction limitation under Section 162(m)(6) results in the loss of some tax benefits related to employee compensation in excess of the $500,000 per-person deduction limit. While the Committee considers the impact of Section 162(m)(6), it believes that shareholder interests are best served by not restricting the Committee’s discretion and flexibility in crafting the executive compensation program, even if nondeductible compensation expenses could result.

Separately, the Committee also considers the accounting consequences of its compensation decisions.

| The Cigna Group| 2025 Notice of Annual Meeting of Shareholders and Proxy Statement