King of Prussia, Pa.-based Universal Health Services has increased its CEO compensation after the company reported an operating income of $1.7 billion (10.6% margin) in 2024, up from $1.2 billion (8.2% margin) in 2023, according to a March 20 Form 8-K filed with the Securities and Exchange Commission.
Seven things to know:
1. The UHS board approved updates to executive compensation, including base salary adjustments and incentive structures, as part of the 2025 Executive Incentive Plan.
2. CEO Marc Miller will receive a 6.7% increase in base salary, bringing his 2025 salary to $1.5 million. His target annual bonus will remain at 150% of his salary, with the actual payout dependent on corporate performance.
3. Additionally, Mr. Miller was granted time-based and performance-based restricted stock units under the company’s 2020 Omnibus Stock and Incentive Plan. These awards aim to align executive compensation with long-term financial and operational goals. His RSU and PBRSU allocations for 2025 each total 28,077 shares, subject to vesting conditions and performance criteria.
4. Other top executives also saw adjustments in their target compensation. CFO Steve Filton’s target bonus remains at 100% of base salary, while Presidents of the Acute Care and Behavioral Health divisions, Edward Sim and Matthew Peterson, will each have 25% of their bonus tied to corporate performance and 75% to divisional income targets.
5. For 2025, UHS executives may earn between 0% and 200% of their target bonus based on company-wide adjusted net income per share and return on capital. Additionally, divisional leaders’ performance awards will be determined by pre-tax income for acute care and behavioral health services.
6. UHS also approved a new employment agreement for Executive Chair Alan Miller, who is also founder and former CEO of the company, replacing his previous contract. Under the agreement, Mr. Miller will continue serving as executive chair through Jan. 1, 2027, with automatic one-year renewals unless either party elects otherwise.
7. Mr. Miller’s 2025 base salary will be $1,125,000, reflecting a 4% increase over 2024. He may also receive bonuses and additional compensation at the discretion of the board. Like other executives, he will be eligible for annual long-term incentive plan awards, subject to performance conditions and accelerated vesting provisions upon certain terminations.