Top executives at Franklin, Tenn.-based Community Health Systems are to receive increased base salaries and overall compensation incentives in 2023 after the for-profit health system's board approved such moves in a filing dated Feb. 17.
CEO Tim Hingtgen was approved a base salary of $1,287,500, a 3 percent increase on his 2022 salary of $1.25 million. Similarly, CFO Kevin Hammons received a 3 percent increase to total $772,500 for 2023 while Lynn Simon, MD, president of clinical operations and chief medical officer, saw her salary rise from $643,775 in 2022 to $659,869 this year, an increase of 2.5 percent.
In addition, the board approved increased stock incentives for both Mr. Hingtgen and Mr. Hammons, rising from 200,000 performance-based restricted stock in 2022 to 400,000 and from 150,000 to 180,000, respectively. The 80,000 in performance-based restricted stock grant remained unchanged for Dr. Simon.
The number of shares of performance-based restricted stock is subject to the attainment of certain performance objectives during the three-year period between Jan. 1, 2023, and Dec. 31, 2025.
All three executives were granted the same target earnings as the previous year, namely 225 percent of base salary for Mr. Hingtgen, 125 percent for Mr. Hammons and 115 percent for Dr. Simon.
The news comes as nonprofit health systems in North Carolina defended criticisms of heightened executive pay from that state's treasurer.
CHS, which owns or leases 79 affiliated hospitals with approximately 13,000 beds, reported net income of $179 million in 2022 on Feb. 15, a 51.4 percent drop from $368 million in the prior year.