Vanguard Health Systems Amends 2013 Executive Incentive Plan

Last week, the compensation committee of Nashville, Tenn.-based Vanguard Health Systems amended the annual incentive plan for executives so all cash bonus payments are received by this September, according to a filing with the U.S. Securities and Exchange Commission.

Vanguard's 2013 fiscal year ends June 30. The FY 2013 incentive plan currently will pay cash bonus awards to executives in September 2013, but the plan outlines that any bonuses earned beyond 100 percent of target goals would have been paid in increments over the next two years. Vanguard's compensation committee decided to nix that stipulation so that incentives could be deductible for federal income tax purposes.Vanguard2013

"In order to ensure that all cash bonus awards payable with respect to the 2013 incentive plan are deductible by [Vanguard] for federal income tax purposes during [Vanguard's] 2013 fiscal year, the compensation committee amended the 2013 incentive plan to eliminate the deferral of payments and provide that the entire cash award earned by the participants shall be payable in September 2013," according to the filing.

The amendment also applies to Vanguard's 2012 incentive plan, meaning that this September, executives will receive any unpaid bonuses beyond 100 percent of the target goals earned last year.

More Articles on For-Profit Hospital Executive Compensation:

IASIS CEO Carl Whitmer's Compensation Tops $1.9M in Down Year
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Compensation for Vanguard CEO Charles Martin Jr. Doubles to $7.9M in 2012

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