CHS executives take pay cut

Franklin, Tenn.-based Community Health Systems' top executives are giving up part of their compensation for the remainder of this year, according to an April 8 filing with the Securities and Exchange Commission. 

CHS Chairman and CEO Wayne Smith has agreed to a 25 percent reduction in his base salary for the rest of 2020, and each of the company's other executive officers agreed to a 10 percent salary reduction. CHS' non-management directors agreed to a 25 percent cut to their annual cash stipend this year, according to the SEC filing. 

The voluntary pay cuts will allow CHS to donate more than $1.5 million to the CHS Cares Fund, which provides assistance to employees experiencing financial hardship due to COVID-19 and other events beyond their control. The CHS Foundation and Mr. Smith will also donate $1.25 million and $200,000, respectively, to the CHS Cares Fund. 

CHS announced the voluntary pay reductions as executive teams at many other hospital networks across the U.S. are giving up part or all of their salary in response to the COVID-19 pandemic. 

In late March, Nashville, Tenn.-based HCA Healthcare CEO Sam Hazen said he's donating 100 percent of his pay in April and May to a fund that provides financial support for the company's employees. Eric Dickson, MD, CEO of UMass Memorial Health Care, is donating his pay to UMass Memorial's employee assistance fund for the duration of the pandemic. The executive teams at Miami-based Jackson Health and Cincinnati-based TriHealth are taking pay cuts. 

More articles on compensation:
11 TriHealth execs take 20% pay cut
UPMC protects 89,000 workers' salaries through May 9
UMass Memorial CEO donates pay; Jackson Health execs take pay cut amid COVID-19

Editor's note: This article was updated April 8 at 1:00 p.m. CDT.

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