The compensation committee of Vanguard Health Systems in Nashville, Tenn., has laid out details of its 2014 incentive plan for top executives, according to a filing with the Securities and Exchange Commission.
Under the arrangement, the top four executives at Vanguard — CEO Charles Martin Jr., CFO Phillip Roe, Chief Transformation Officer Bradley Perkins, MD, and Vice Chairman Keith Pitts — will receive cash bonuses based on financial metrics from July 1, the start of Vanguard's 2014 fiscal year, until Dec. 31. The program only covers the six-month period due to Vanguard's pending merger with Dallas-based Tenet Healthcare Corp.
If Vanguard hits performance goals for consolidated adjusted EBITDA and consolidated free cash flow, the executives could earn anywhere from 50 percent to 90 percent of their base salaries. Mr. Martin stands to gain the most. His maximum cash bonus could total more than $1 million. All four executives are expected to earn at least 10 percent of their base salaries in bonuses for the six-month period.
The incentive plan does not include Kent Wallace, former president and COO. In February, Mr. Wallace resigned to become CEO of RegionalCare Hospital Partners, a for-profit health system based in Brentwood, Tenn.
In 2012, Mr. Martin earned $7.94 million, more than double what he made in 2011. Vanguard is expected to release year-end financials and compensation data within the next several weeks.
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