Iasis execs get $2.5M+ in special bonuses

Board says big '13 transactions merit rewards despite EBITDA shortfall

The top executives at hospital operator Iasis Healthcare have been paid special bonuses as a reward for their 2013 work on more than half a billion dollars of strategic moves.

Franklin-based Iasis last October completed the sale of three hospitals in the Tampa area to HCA Holdings for $146 million, a move that trimmed its network to 17 hospitals, 13 of which are in Arizona, Texas and Utah. The company's leaders also negotiated a $281 million sale-leaseback deal with Medical Properties Trust and paid its common stockholders a $115 million dividend with money left over from a 2011 debt refinancing.

In a Friday filing with the Securities and Exchange Commission, Iasis said it has paid its top five execs collectively more than $2.5 million in one-time, discretionary bonuses in recognition of those transactions. The breakdown is as follows:

• President and CEO Carl Whitmer (pictured): $1,300,000, 165 percent of his base salary
• COO Phil Mazzuca: $570,000, 95 percent of his salary
• CFO John Doyle: $300,000, 73 percent of his salary
• Eastern Division President Bryanie Swilley: $175,000, 41 percent of his base
• Western Division President Edward Lamb: $190,000, 42 percent of his base

The executive quintet did not get any regular bonus payments from their work in 2013 because Iasis did not meet its $268 million adjusted EBITDA target — that number came in at almost $261 million — but the company's board compensation committee said in last month's annual report that it would weigh the big transactions of last year against the "challenging healthcare industry environment" and keep an open mind when it came to bonus time.

"Since much of the work to achieve these strategic objectives occurred in fiscal year 2013, but a number of the related transactions did not ultimately close until the beginning of fiscal year 2014, the Committee decided that, while these accomplishments would not result in 2013 bonuses, they could be taken into account with respect to any 2014 executive compensation awards," wrote the committee, which consists of Iasis Chairman and former CEO David White, Jeffrey Lightcap and Todd Sisitsky.

Lightcap is senior managing director of HealthCor Partners Management and represents JLL Partners, which owns almost 19 percent of Iasis, and has been a director of Iasis since 1999. Sisitsky has been an Iasis board member since 2004 and is a partner at TPG, the global investment firm that owns 74 percent of the company.