HCA unveils executive performance incentive pay for 2024

Nashville, Tenn.-based HCA Healthcare revealed its plans for the 2024 Executive Officer Performance Excellence Program in a Feb. 26 Form 8-K filed with the SEC.

Top executives for the 182-hospital health system will be eligible to earn performance awards based on achieving specific targets, weighted as:

  • 80% for hitting EBITDA targets
  • 20% for hitting quality metrics targets

The EBITDA targets are focused equally on the company EBITDA and the EBITDA of the leaders' respective groups. The quality metrics are based on healthcare-associated infections and sepsis, complications and mortality and care experience.

If targets are met, CEO Samuel Hazen will receive 170% of base salary while Jon Foster, executive vice president and COO, will receive 125% of base salary and Michael McAlevey, senior vice president and chief legal officer, will receive 85% of base salary, which will be increased to 100% on April 1.

The performance excellence program incentives will be paid in cash and calculated by the board's compensation committee. If HCA's actual EBITDA is less than 90% of the target level of EBITDA, the company will not pay the quality weighted portion of the program, according to the filing.

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