The Delaware General Assembly approved a bill on Wednesday that would allow Anthem Inc. to pay Anthem CEO Brian Frantzman a total of $2,872,938 in severance, according to a news release from the state.
The legislation, approved on a 32-15 vote, was signed by Gov.
Jack Markell, who also commuted the severance package of Anthem’s former CEO, Anthony Watson.
Under the new law, Anthem could have paid Frantzer a total amount of $1,858,982.19.
The severance payments would go toward paying off debts, including the $1.2 billion owed to Anthem on behalf of the Delaware General Hospital and Hospital Corporation, and the $974,838 owed to the state’s health system.
Under existing state law, an employee can receive severance when he or she retires.
However, employees cannot be paid for more than two years of service in the same job.
Under new legislation, the amount of the severances that would be paid by Anthem could be as much as a third of a current annual salary, according the news release.
Anthem will pay its CEO about $2 million in severances over two years, and will also pay him another $300,000 over five years, the release said.
The bills are pending before the state Assembly and Senate, according.