Erica Schwartz, President Donald Trump’s nominee to lead the U.S. Centers for Disease Control and Prevention, disclosed in a financial filing to the Department of Health and Human Services Ethics Counsel dated June 16 that she will end her employment with UnitedHealth Group if she is confirmed.
According to the disclosure, Schwartz will receive a cash payment equal to one year’s salary plus a bonus prior to assuming the CDC role. The filing states that she would forfeit that cash payment if she does not take the position.
The document further explains how UnitedHealth has agreed to treat certain equity awards. UnitedHealth will cash out specified unvested restricted stock units and unvested stock options that otherwise would have vested between August 2026 and August 2027. Any remaining unvested awards outside those specified awards will be forfeited, the filing notes.
Schwartz also committed to divesting UnitedHealth stock received through the exercise of vested stock options within 90 days following confirmation. In addition to the divestiture requirement, she will recuse herself for a two-year period from specific-party matters involving UnitedHealth, with that recusal measured from the date of the last cash payment tied to her separation from the company.
The disclosure outlines further steps Schwartz will take with other healthcare-related roles and investments. She will resign from board positions at Butterfly Network and Aveanna Healthcare Holdings, and will divest her stock holdings in both companies within 90 days after confirmation. The filing ties additional recusal obligations to accelerated equity awards and compensation she received from those companies.
Schwartz also will step down from her position with the Searching for Solutions Institute foundation, the disclosure says.
Finally, the filing describes a broader constraint on Schwartz’s future financial activities while serving in the CDC role. She will avoid acquiring direct financial interests in industries that are affected by the Department of Health and Human Services. The filing specifically lists pharmaceuticals, medical devices, healthcare, food, insurance, communications and software as categories she will not acquire direct interests in while serving.
The disclosure establishes concrete timelines for divestitures and recusals and identifies the categories of financial interests Schwartz will avoid during her service if confirmed. The filing dated June 16 to the HHS Ethics Counsel serves as the public record of these commitments.
Key points
- Schwartz will resign from UnitedHealth upon confirmation and receive a cash payment equal to one year’s salary plus a bonus, with forfeiture if she does not take the CDC post.
- UnitedHealth will cash out certain unvested awards that would vest between August 2026 and August 2027; other unvested awards will be forfeited.
- Schwartz will resign board seats and divest holdings in Butterfly Network and Aveanna Healthcare Holdings, and will avoid acquiring direct financial interests in sectors touched by HHS.
Risks and uncertainties
- Confirmation outcome uncertainty - the cash payment is contingent on Schwartz’s actual assumption of the CDC role; if she does not take the position she will forfeit that payment.
- Timing and execution risk - required divestitures and the cashing out of equity awards involve specific timelines that must be met to comply with the disclosure.
- Sector exposure constraints - the nominee’s restriction on acquiring direct financial interests affects holdings and potential future investments across pharmaceuticals, medical devices, healthcare, food, insurance, communications and software.
Reporting note: This article is based on a financial disclosure submitted to the HHS Ethics Counsel dated June 16 and summarizes the commitments and timelines described in that filing.