LifePoint Health could pay out nearly $0 million to four of its top executives after private equity firm Apollo Global Management closes its acquisition later This specific year, according to a brand-new securities filing.
Chairman in addition to CEO Bill Carpenter III stands to get more than half of of which money, $69.7 million, according to a proxy statement filed Thursday with the Securities in addition to Exchange Commission. He announced earlier This specific week plans to retire once the Tennessee-based for-profit hospital completes the deal.
David Dill, the president in addition to COO of LifePoint, will become the brand-new CEO. He is usually also listed to receive more than $25.3 million. LifePoint is usually a health-care provider of which operates mostly in rural communities.
Given the size of the company — a $2.5 billion market cap — the compensation is usually a little on the high side, Brian Tanquilut, health-care services equity researcher at Jefferies, told CNBC.
However, Tanquilut said shareholders are anticipated to receive a “pretty decent premium” when the deal is usually anticipated to close later This specific year, so “if you’re a shareholder you’d probably vote for This specific.”
LifePoint shareholders will receive $65 per share in cash for each share of LifePoint common stock, a premium of about 36 percent over LifePoint’s closing cost on July 20, 2018, the last trading day prior to the announcement.
The deal values LifePoint at about $5.6 billion, which includes $2.9 billion of debt in addition to various other interests.
LifePoint’s severance plan includes a “double-trigger” of which provides golden parachutes for its top four executives if there’s a so-called change in control as inside the case of the acquisition, the company said. To receive the maximum severance, the executive will also have to leave the company, generally in not bad standing, within 18 months after the deal closes.
Shareholders will get a nonbinding vote on the compensation package, which the board is usually recommending for approval.
LifePoint didn’t return a request for comment.
U.S. health-care companies have been criticized for paying their executives sky-high salaries in addition to various other benefits as many Americans struggle to pay their medical bills due to high health-care costs. of which includes the nonprofit sector.
According to a study inside the Clinical Orthopaedics in addition to Related Research, salary increases for nonprofit hospital CEOs outpaced those for surgeons in addition to various other health-care workers by 93 percent over a 10-year period.
The deal brings together LifePoint in addition to Apollo’s RCCH HealthCare Partners, two hospital companies of which operate mainly inside the rural United States.