Voluntary reductions in pay and additional contributions will support the CHS Cares Fund to provide financial assistance for employees during the COVID-19 pandemic.
In a United States Securities and Exchange Commission Form 8-K signed by Chairman and CEO Wayne T. Smith today, Community Health System, Inc. (CHS) executives and director-level employees have volunteered to take pay reductions so the organization can use that money as a donation to the CHS Cares Fund.
The CHS Cares Fund is a charity that provides financial assistance to CHS employees "who have experienced hardship due to events beyond their control (which would include the COVID-19 pandemic)."
The $1.5 million contribution will come from voluntary reductions in pay, including a 25% reduction in Smith's base salary for the remainder of 2020. Other executive officers have voluntarily agreed to a 10% reduction in base salary for the remainder of 2020. Corporate officers and regional presidents have taken a similar voluntary reduction in base salary, and non-management directors have voluntarily agreed to a 25% reduction of the annual cash stipend paid to directors in 2020, according to Form 8-K.
Additional donations to the CHS Cares Fund include approximately $1.25 million from the CHS Foundation, which is "a foundation funded by charitable gifts from the company." Smith will also personally donate $200,000 to the CHS Cares Fund, bringing the total donations to an estimated $3 million dollars.
THE CHS Cares Fund is administered by The Community Foundation of Middle Tennessee, a Section 501(c)(3) charity.
Melanie Blackman is the strategy editor at HealthLeaders, a Simplify Compliance brand.