Last week, Naples, Fla.-based Health Management Associates adopted a plan that would award retention bonuses and a severance option to three of its top executives, according to a filing with the Securities and Exchange Commission.
The plan would apply to CFO Kelly Curry, Senior Vice President of Finance Robert Farnham and General Counsel Steven Clifton. Health Management said it adopted the plan to keep the current management team in place during the for-profit hospital company's massive changes and to give those three executives "certain financial security" in case they are let go. Health Management is currently in the process of going through a merger with Community Health Systems, and shareholders also recently voted to remove and replace the current board of directors.
Under the retention plan, if any of the three executives have their employment terminated over the next year, they are eligible to receive a cash bonus valued at 50 percent of base salary. For Mr. Curry, this would be $337,500 based on last year's salary data. Mr. Farnham could potentially receive $200,000, and Mr. Clifton could earn more than $83,000.
Mr. Clifton has already received some extra pay from Health Management. Last week, the company awarded a $450,000 retention bonus to Mr. Clifton for "his sustained commitment and dedication to the company" during Health Management's current transition period.
Health Management's largest shareholder, New York City-based Glenview Capital Management, has helped spur the current change in the board of directors. Also, previously, Glenview criticized Mr. Curry, saying he "consistently shows a lack of seriousness in meetings and responds to questions with laughter and nonresponsive answers — even after major earnings misses and significant declines in the stock."
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