CHS Shareholders Ratify Executive Pay for 2012

Eighty-two percent of Community Health Systems' shareholders approved the fiscal year 2012 compensation plans of the hospital company's top executives, according to a disclosure with the Securities and Exchange Commission.

In April, Franklin, Tenn.-based CHS disclosed that Chairman, President and CEO Wayne Smith's compensation for FY 2012 was $17.3 million, a drop of more than $4 million from his 2011 pay package. CHS CFO Larry Cash's pay totaled $8.73 million.

The large approval from shareholders stands in contrast to last year's say-on-pay vote, when more than 60 percent of shareholders voted against the executive compensation plan. Corporate say-on-pay votes in the United States are still only classified as "advisory," meaning they are nonbinding and cannot actually change the payouts for a company's top executives.

In CHS' April disclosure, the compensation committee said it revised many portions of its executive pay plans, including no salary raises for Mr. Smith and Mr. Cash and changes to how the company awards cash incentives.

More Articles on Hospital Executive Compensation:

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