The board of directors for Franklin, Tenn.-based Community Health Systems approved compensation arrangements for several of its executives Feb. 21, including CHS President, CEO and Chairman Wayne Smith, who is expected to receive the same base salary he has received since 2015: $1.6 million, according to a recent U.S. Securities and Exchange Commission filing.
The board issued compensation arrangements for fiscal year 2018 for five company executives' base salaries last week. The five individuals included:
- Mr. Smith, who will receive a base salary of $1.6 million.
- Tim L. Hingtgen, president and COO, who will receive $900,000.
- Thomas J. Aaron, executive vice president and CFO, who will receive $675,000.
- Benjamin C. Fordham, executive vice president, general counsel and assistant secretary, who will receive $561,000.
- Lynn T. Simon, MD, president of clinical operations and CMO, who will receive $550,000.
The board also approved cash incentive compensation targets for the five executives. According to the SEC filing, Mr. Smith may be eligible for a 235 percent bonus on his base salary if the health system reaches its performance goals for fiscal year 2018.
In addition, each of the five executives will have the opportunity to achieve an additional bonus for completing non-financial performance improvements. The bonuses range from 10 percent to 30 percent of each individual's base salary depending on their specific position within the health system.
This is the third year running Mr. Smith's base salary has remained at $1.6 million. An SEC filing dated Feb. 24, 2017, revealed Mr. Smith missed his financial and operating targets in 2016, attaining only 13 percent of his performance goal, which resulted in a bonus of $640,000.
To access the complete SEC filing, click here.