Wednesday, November 9, 2016
New Kindred Board Member's Stock Award
Kindred announced a new board member. Dr. Lynn Simon is a C Suite occupant with Community Health Systems, a for-profit hospital company. Kindred loaded Dr. Simon's pocketbook with nearly $150,000 in restricted stock. She only has to last a year for that stock to vest.
Dr. Simon joined Community Health Systems in November 2010 when the company's stock price stood at $32 per share. It's now $5.50. CHS expanded via buyouts and borrowings the last few decades. A downturn in business sent CHS' finances reeling. Healthcare has become unaffordable even for many with health insurance.
CHS is trying to retrench by selling off assets (hospitals and other affiliates) to reduce debt. Kindred shed unprofitable LTACs a few months ago. Rumors have it more shedding is on the way. It's not clear if it's facilities, headcount or both.
What percent of Kindred at Home employees make $141,000 a year? How many former Gentiva employees have no retirement match for 2017 under Kindred? How many Kindred at Home employees will have their pittance of a raise eaten up by increased benefits cost/reduced benefits coverage?
It's a bifurcated world where people at the top can only "perform" if there are massive incentive structures in place, while people at the bottom are "thanked" for their hard work only to learn later executives took away another important benefit with no explanation. Gentiva did this with a silent PTO reduction. Kindred made it darn near impossible for Gentiva employees to know if they had a retirement match at all in 2016, before ditching the benefit altogether for 2017.
Dr. Simon's nearly $150,000 prize will come available on 11-2-2017 after Kindred at Home President David Causby's $1 million bonus is excreted on 8-1-2017. Who knew staying employed until a specific day was a marker of outstanding performance? How many employee retirement matches would $1.15 million fund? That's a question this board crew won't be asking.
Anonymous from Executive Enriching Kindred