Cleve L. Killingsworth, the chief executive of Blue Cross and Blue Shield of Massachusetts, earned $3.6 million in 2007, an 18.6 percent increase over his compensation in 2006. Killingsworth's bonus accounted for most of the additional money. It grew to $1.87 million last year, up from $1.36 million in 2006.
William C. Van Faasen, chairman of Blue Cross-Blue Shield through the end of 2007, earned $1.73 million in 2007, including a bonus of $1.23 million.
The salary disclosures are contained in a supplemental filing all insurers are required to complete this year for the Division of Insurance, and in the healthcare firms' annual reports.
The high salaries at Blue Cross con tinued to generate criticism, because the firm is a public charity. Blue Cross-Blue Shield, the state's largest health insurer, came under fire in November when it was disclosed Van Faasen received a $16.4 million retirement payment in January 2006, when he stepped down as chief executive. He continued as chairman until the end of 2007.
The Globe reported in January that Attorney General Martha Coakley is investigating the $16.4 million payment to Van Faasen.
Chris Murphy, a Blue Cross-Blue Shield spokesman, said the generous bonuses are part of an incentive package in which the payment is based on the aggregate performance over three consecutive years. "We can't offer things like stock options, and we compete with large public companies to get the executive talent," Murphy said.
State Senator Mark Montigny, Democrat of New Bedford, said the pay seemed excessive. "At a time when healthcare cost increases are rampant, and no one can afford healthcare - not the employee, not the employer, not the uninsured - these so-called charities are a pretty comfortable place to land," he said.
Blue Cross-Blue Shield's directors are also paid, unlike those at most nonprofits, earning from $47,400 to $53,900 a year.
At Harvard Pilgrim Health Care, the state's second-largest health insurer, chief executive Charles D. Baker earned $1.38 million last year, compared to $1.57 million in 2006, a decrease of 12.5 percent. Directors earn from about $20,000 to $30,000 a year.
James Roosevelt Jr., chief executive of Tufts Health Plan, earned $1.19 million in 2007, including a bonus of $552,909. Directors earn between $11,500 and $29,000.
The insurers also reported financial results. Blue Cross-Blue Shield, with about 3 million members, said it earned $53.4 million in operating income and $156 million from investments in 2007. It had revenue, mostly premiums, of $6.7 billion. The average premium increase was 7.5 percent, it said.
Harvard Pilgrim said it earned net income of $45.6 million in 2007 on revenue of $2.5 billion. It was recently named the top commercial health plan in the United States for the third consecutive year according to the National Committee for Quality Assurance.
Tufts Health Plan reported net income of $110 million on revenue of $2.2 billion.
Jeffrey Krasner can be reached at krasner@globe.com.
