Brentwood, Tenn.-based LifePoint Health could pay out nearly $120 million to four of its top executives after Apollo Global Management closes its acquisition of the company, according to a new filing with the Securities and Exchange Commission.
The LifePoint board is recommending the "golden parachute compensation" package for approval, and shareholders will vote on the proposal as well as the deal with Apollo Oct. 29.
Under the proposal, LifePoint Chairman and CEO Bill Carpenter III could get $69.7 million. He recently announced plans to retire once the Apollo transaction closes later this year.
LifePoint President and COO David Dill, who will take over as CEO once Mr. Carpenter steps down, stands to receive more than $25.3 million under the proposed compensation plan. Executive Vice President and CFO Michael Coggin and Executive Vice President and Chief Administrative Officer John Bumpus could receive $13.4 million and $11.5 million, respectively, under the proposal.
LifePoint said the company's severance plan has a "double-trigger" that provides golden parachutes for its top four executives if there is a change in control as in the case of the deal with Apollo. To receive the maximum severance, the executive must leave the company within 18 months after the deal closes, according to CNBC.
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