Two transactions made by Franklin, Tenn.-based IASIS Healthcare last year led the company to distribute more than $2.5 million in one-time cash bonuses to five top executives, according to a filing with the Securities and Exchange Commission.
In fiscal year 2013, IASIS completed the sale of its three Florida hospitals to competitor Hospital Corporation of America, based in Nashville, Tenn. The company also completed a sale-leaseback transaction with three of its hospitals and Medical Properties Trust, a healthcare real estate investment trust based in Birmingham, Ala. Those two transactions netted IASIS about $427 million.
Because those deals were executed, which also led to a shareholder dividend last October, IASIS' compensation committee decided the company's top executives deserved the bonuses. IASIS President and CEO Carl Whitmer earned the largest bonus: $1.3 million. COO Philip Mazzuca and CFO John Doyle received $570,000 and $300,000, respectively. Edward Lamb, president of IASIS' Western Division, took home $190,000, while Bryanie Swilley, president of IASIS' Eastern Division, earned $175,000.
Earlier in February, when IASIS released its annual 10-K filing, the bonuses were not included in the executives' 2013 compensation totals; however, the bonuses were being considered. They significantly boosted their pay, as Mr. Whitmer made $789,810 before the bonus. Mr. Mazzuca and Mr. Doyle earned $603,117 and $415,629, respectively, without the bonuses.
In a statement, IASIS wrote: "In the company's annual report on 10-K filed in December, we disclosed that the compensation committee was considering 2014 executive bonuses tied to major strategic milestones, including the sale of the Florida market, the closing of a sale-leaseback transaction and a related dividend payment to our shareholders. The Florida and sale-leaseback transactions provided IASIS with significant capital to spend on growth projects — both in our existing markets, as well as potential new markets. These executive bonuses represent recognition from the company's compensation committee, led by representatives of our largest shareholder, for strategic management-led accomplishments achieved over time through strong long-term operations and strategic planning."
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