The compensation committee of Franklin, Tenn.-based IASIS Healthcare slashed the pay of the company's primary executives as IASIS missed profitability targets in 2013.
According to a filing with the Securities and Exchange Commission, IASIS "faced a challenging healthcare industry environment in 2013." The for-profit chain, which owns and operates 16 acute-care hospitals, posted a loss in the fourth quarter of its 2013 fiscal year, and net profit for the entire year was down 86 percent from FY 2012.
In addition, IASIS did not meet its adjusted EBITDA target. Adjusted EBITDA, a measure of profitability and the primary metric used for structuring executive incentive compensation, only totaled $260.8 million in FY 2013, compared with $282.8 million in FY 2012. IASIS also missed that mark despite selling off its Florida market, which encompassed three hospitals, to competitor Hospital Corporation of America, based in Nashville, Tenn.
"Thus, with respect to 2013 performance, our named executive officers' compensation consisted almost entirely of base salary and standard company benefits, reflecting the absence of incentive payments with respect to a year in which the annual adjusted EBITDA target was not achieved," the filing reads.
Carl Whitmer, president and CEO of IASIS, received $789,810 in total compensation — a 59 percent drop from 2012, when he made $1.93 million. Mr. Whitmer made more than $5.58 million in 2011, most of which came from incentive pay and stock option awards after a lucrative year.
Compensation for John Doyle, CFO of IASIS, dropped 37 percent to $415,629. COO Phillip Mazzuca saw his pay dwindle to $603,117, a 29 percent decline from 2012's total.
Earlier this month, IASIS reported $5.2 million in net income in the first quarter ended Dec. 31. That number would have been in the red if the company hadn't sold its Florida hospitals.
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