Company: CI
Filing Date: 2025-04-18
Form Type: 8-K
Source: 0001140361-25-014574
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Company: Cigna Group
Filing Date: 2025-04-18
Form: 8-K
Item: Item 5.02
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Item 5.02      Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain  

On March 13, 2025, The Cigna Group (the “ Company”) filed a Form 8-K disclosing that the employment of Eric P. Palmer, Executive Vice President for
Enterprise Strategy, The Cigna Group and President and Chief Executive Officer, Evernorth Health Services, will end April 26, 2025.

On April 15, 2025, the Company and Mr. Palmer executed an Agreement and Release (the
“ Agreement”). The Agreement includescustomary confidentiality, non-solicitation, non-competition and non-disparagement provisions. In addition, the Agreement provides for a cash payment, subject to the terms of the release, of $5.2
million, reflective of: (1) 78 weeks of base pay; (2) 150% of Mr. Palmer’s 2025 Enterprise Incentive Plan (“ EIP”) target; (3) a payment equal to Mr. Palmer’s 2025 EIP target, prorated through April 26, 2025; and (4) a COBRA subsidy equal to the
costs of the Company’s contribution for active medical coverage for 18 months, each as provided for in the Company’s Executive Severance Benefits Plan. Consistent with and subject to the terms of such equity awards granted under the Company’s
Long-Term Incentive Plan (“ LTIP”), stock options, restricted stock and strategic performance shares (“ SPSs”) that are scheduled to vest within 12 months of April 26, 2025 will continue to vest, and SPSs will be paid out based on actual
performance. The estimated aggregate value of this equity treatment is approximately $4.8 million, based on a stock price of $328.63 per share, the closing price of the Company’s common stock on April 15, 2025. The percentage of actual shares
earned and timing of the payment of the SPS awards will be determined by the People Resources Committee of the Board of Directors in accordance with the terms of the LTIP. Stock options granted prior to 2021 will expire on the lesser of the
original expiration date or 90 days after April 26, 2025. Stock options granted after 2020 will expire 90 days after April 26, 2026.

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