Exhibit 10.1

Description of Amendments to Executive Management Compensation Arrangements

On February 24, 2005, the People Resources Committee (the “Committee”) of the
Board of Directors of CIGNA Corporation took the following actions with respect
to the compensation of CIGNA's named executive officers:

 
 
Name and Principal Position
 
2005
Salary1($)
 
2004
Bonus($)
2005 Option Grant2(#)
2002-2004
LTIP
Payout3($)
2005-2007
LTIP
Units4 (#)
           
H. Edward Hanway
1,080,000
2,600,000
136,430
7,980,000
 
75,000
Chairman and Chief Executive
Officer
         
Michael W. Bell
555,000
800,000
36,365
1,773,555
 
20,000
Executive Vice President & Chief
Financial Officer
         
Judith E. Soltz
500,000
600,000
18,185
931,000
 
10,000
Executive Vice President and
General Counsel
         
Gregory H. Wolf
480,000
540,000
11,515
842,555
 
6,335
President, CIGNA Group Insurance
         
Terry Kendall
510,000
480,000
10,305
754,110
 
5,670
President, CIGNA International
         

__________________________
 
(1)
 
New base salary amounts take effect on July 4, 2005.
 
(2)
 
Options have a ten-year term and generally become exercisable in three equal
annual installments beginning on the first anniversary of their grant date. The
exercise price per share of the options is $89.42, the fair market value of
CIGNA's stock on the grant date.
 
(3)
 
The value of the long-term incentive payouts was based on CIGNA’s return on
equity (ROE) in each of those years compared to the ROE of a defined group of
competitors.
 
(4)
For SPU awards made for the 2005-2007 performance period, the Committee selected
three-year annualized total shareholder return weighted equally with a
cumulative adjusted income or adjusted revenue measure as the performance
metrics. The Committee sets performance metrics, payout formulas and a target
value for the SPUs when they are awarded. The target

 

 

--------------------------------------------------------------------------------

 
value for these awards is $75 per unit, and is to be paid if CIGNA’s performance
on the metrics is in the median range compared to a defined group of health care
competitors. The final dollar value of each unit may be from zero to $200. The
Committee has discretion to reduce the dollar value of each unit to any amount,
including zero.

The Committee also selected income from continuing operations before realized
investment gains/losses and special items for the three ongoing business
segments (Health Care, Disability and Life and International) and adjusted
revenues from the ongoing business segments as the performance metrics to
determine the 2005 annual bonus awards for executive officers under the
Executive Incentive Plan.
 
 
 
 
 
 
 

--------------------------------------------------------------------------------