Despite a "vote no" campaign against a trio of Community Health Systems directors, the Franklin-based company's investors yesterday re-elected the slate of five board members who were up for consideration at the company's annual meeting.
Investor group CtW had been pushing, loudly, for investors to reject directors W. Larry Cash, James Ely and John Fry over concerns about the company's billing practices.
Ely and Fry both racked up more than 14 million votes against them, but at just 17.1 percent of the votes cast, it wasn't enough to unseat them. Cash's opposition vote count was 7.9 million, about 9.6 percent. (See the vote count here.)
CHS' stock (Ticker: CYH) is trading down about 24 percent year-to-date.
National HealthCare Corp. investors have agreed — barely — to vote every three years on the pay packages of the nursing home operator's executives. NHC's board had recommended that interval for the non-binding vote, saying it aligned well with its longer-term payment plans, but received just 55 percent of the eligible votes.
Proxy adviser ISS Governance Services has thrown its support behind CtW Investment Group's call for shareholders of Community Health Systems to oppose the re-election of certain company directors. ISS is calling for shareholders to oppose the re-election of audit committee memebers James Ely III and John FRy for "thier failure to take appropriate action regarding the 'significant allegations' concerning Community's Medicare billing practices."
CtW is also calling for a "no" vote on board member and CFO Larry Cash.
In the first vote of its kind for a local company that we've seen, shareholders of National Health Investors last week said they want to have say on the medical REIT's executive compensation packages each year. The tally — 56 percent of votes cast went for the one-year option — went against the NHI board's recommendation of having the advisory vote every three years. The board had said the less frequent option would "promote stability and is consistent with the long-term approach the Board takes in overseeing the business and management."
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