CHS investor calls for ouster of CEO Wayne Smith

Ayla Ellison -

An investor in Franklin, Tenn.-based Community Health Systems released a letter Monday it sent to CHS' board calling for the replacement of the company's board chairman and CEO Wayne Smith.

In the letter dated Aug. 8, ASL Strategic Value says several missteps in recent years have led to the downfall of CHS, including the company's 2014 acquisition of Health Management Associates in Naples, Fla.

"It is time for the board to exercise its fiduciary duty to the shareholders and replace the current CEO," states the letter from ASL.

ASL also calls for the board to take back part of CHS' senior executives' compensation. CHS has lost approximately 50 percent of its capital over the past 17 years. During this time, Mr. Smith received compensation of more than $350 million, and the five most senior executives at the company received total compensation of more than $500 million, according to ASL.

ASL, which describes itself as a "long-term investor" in CHS, said it has tried to contact CHS leadership on numerous occasions to voice its concerns about the company's recent operating results. "Unfortunately, none of our phone calls were returned," wrote ASL in the letter.

CHS did not immediately respond to Becker's Hospital Review's request for comment.

More articles on leadership and management:

3 former HHS secretaries call on Trump for market stability
7 must-read articles for healthcare leaders this week
Tenet board upheaval could lead to activist campaign

 

 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.