All this happens at a time when the CEO ranks are changing and the street would like some comfort with established names and faces. Eventually the story will come out, but in the meantime the investor is being penalized because of a corporate governance issue. Corporate governance exists for the benefit of investors. WellPoint investors are currently confused by a backfire.
The stock dropped about 3.5% yesterday. The term dead money is being applied, yet the appropriate corporate governance standards are being applied.
What we have here is the failure to communicate. The new CEO has a background in legal and government regulation, so the "We are strict with rules approach" has an identifiable DNA. Has the new CEO shot herself in the foot and forgotten about her real bosses, the shareholders?
WLP 1-yr chart: