Tenet CEO to exit with $22.9M in severance pay

Dallas-based Tenet Healthcare's longtime CEO Trevor Fetter is set to receive a $22.9 million severance package when the company secures a new leader.

Tenet announced in August it was replacing Mr. Fetter, who has led the 77-hospital chain since 2003. He will step down by March 15, 2018, or when Tenet appoints a successor, whichever occurs first.

According to proxy materials filed earlier this year, Mr. Fetter will receive a $22.9 million severance package when he leaves the company. That amount includes: $10.85 million in cash payments; accelerated equity awards of $8.29 million; $3.74 in supplemental executive retirement plan and executive retirement account benefits; health and welfare benefits of $42,273; and $25,000 in outplacement services.

In addition to replacing Mr. Fetter, Tenet has initiated a refreshment process for its board, which began with the appointment of Ronald A. Rittenmeyer as executive chairman. He previously served as independent lead director.

Tenet announced the governance changes days after board members Randy Simpson and Matt Ripperger resigned "due to irreconcilable differences regarding significant matters impacting Tenet and its stakeholders," the two jointly wrote in a letter to the board. Mr. Simpson and Mr. Ripperger are employed by Glenview Capital Management, a Tenet stakeholder. 

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