Blues chief asks general counsel to delay retirement, help run firm

January 23, 1993|By Patricia Meisol | Patricia Meisol,Staff Writer

The interim chief executive officer of Blue Cross and Blue Shield of Maryland has asked Fred M. Gloth Jr., the company's veteran general counsel and No. 2 Blues officer over the past several years, to forestall his retirement and help run the insurer.

Mr. Gloth, 67, is the last remaining member of the management team that operated under former chairman and chief executive Carl J. Sardegna.

William A. Beasman Jr., who took over as Blues chief executive when Mr. Sardegna resigned in December, said he asked Mr. Gloth, who has been with the Blues for more than 40 years, to stay on because of his knowledge of the health insurer. Mr. Gloth's salary is $273,000 a year.

"He is absolutely invaluable to this organization with all top man

agement gone," said Mr. Beasman, who, as a director, has worked with Mr. Gloth at the Blues since before it merged with Blue Shield in 1984.

While a director, Mr. Beasman chaired the audit committee, which oversaw the Blues' annual reports.

The Blues' chairman of the board, Frank M. Gunther Jr., had previously announced Mr. Gloth would retire in early 1993. Mr. Gunther could not be reached yesterday.

Mr. Beasman said he "discussed it with Frank and said, 'This is what I need.' I am the CEO."

Mr. Gloth was to retire in 1989 when Blues directors raised his retirement package to a new level. In 1990, the board of directors again increased his supplemental retirement plan so that he stood to collect $3.6 million.

The board, however, has said it would review Mr. Gloth's retirement package, Mr. Beasman said.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.