Community Health CEO's '10 Compensation Rises To Nearly $21 Million

Community Health Systems Inc. (CYH) nearly doubled its chief executive's total compensation from 2008 to 2010, with the biggest jump occurring in 2009. The hospital chain's stock logged a 9% cumulative return in those two years.

Wayne Smith, Community Health's chairman, president and CEO, received total compensation of more than $20.9 million last year, including $5.4 million in cash salary and incentive pay.

This compares with total compensation of $17.8 million in 2009 and close to $10.7 million in 2008, according to a company proxy statement filed with the Securities and Exchange Commission this week.

Smith's 2010 compensation package included $6.78 million in restricted stock awards, a higher figure than in each of the two previous years, and nearly $8.2 million in deferred earnings, a figure representing the actuarial increase in the value of his pension.

Smith's 2010 pay also included more than $55,400 for personal use of corporate aircraft.

In addition to his compensation, the CEO last year exercised stock options representing 250,000 shares, realizing nearly $5.2 million in value. He also acquired 160,000 shares valued at $5.4 million when stock awards vested. Smith's pension benefits had a value of $26.6 million at year end.

Community, based in Franklin, Tenn., is one of the largest publicly traded hospital chains in the U.S., operating in rural and mid-sized markets, and has made a $3.3 billion hostile bid for urban hospital concern Tenet Healthcare Corp. (THC).

Its shares recently traded at $40.79, up more than 9% year-to-date and 5.4% over the past year.

-By Dinah Wisenberg Brin, Dow Jones Newswires, 215-982-5582; dinah.brin@dowjones.com

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