Company: UHS
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0000950170-25-049925
Chunk: 25

Company: UNIVERSAL HEALTH SERVICES INC
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 25
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 extra cost to shareholders. Thus it was not a surprise that this proposal topic won majority support at Tesla in 2024 even when the biased insider shares, which voted every eligible share, were opposed.

Annual election of each director gives shareholders more leverage if Directors perform poorly. For instance if Directors approve excessive executive pay shareholders can soon vote against Directors on the executive pay committee instead of potentially waiting 3 long years under the current setup.

This proposal at minimum is a reminder that there are limitations to any corporate governance improvements or increased shareholder rights that can be expected at UHS due to UHS being a controlled company where insiders have voting power outrageously out of proportion to their money at risk in UHS. UHS officers and Directors own 16% of UHS common stock yet have 90% of the voting power.

This in turn negatively impacts the long-term performance that shareholders can expect from UHS stock. Shareholders who consider good corporate governance important thus may be wise to diversify away from UHS.

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| Universal Health Services, Inc. 2025 Proxy Statement |

| Proposal No. 3 |

Shareholders are willing to pay a premium for shares of companies that have excellent corporate governance but sadly UHS is not such a company. The overall governance score for UHS is 10 with 10 being the worse possible score. The breakdown of UHS scores, with 10 being the worse possible score, are Audit: 8; Board: of Directors 10; Shareholder Rights: 10; Executive Pay: 9.

<div align='center'>Please vote yes:

Elect Each Director Annually – Proposal 3</div>

UHS Statement in Opposition to Stockholder Proposal

The Board of Directors has carefully considered the proposal seeking to declassify the board of directors. The Board of Directors opposes the proposal because it is not in the long-term interests of the Company or its stockholders. The Board of Directors noted that a virtually identical proposal made by Mr. Chevedden in 2024 was unanimously opposed by the Board of Directors and was rejected by over 90% of the stockholder votes present in person or represented by proxy and entitled to vote at the Company’s 2024 Annual Meeting held on May 15, 2024. Our Board of Directors regularly reviews our governance structure, including our classified board, and firmly believes that our current classified board continues to be in the best interests of the Company and its stockholders.

The Board of Directors, as stewards of stockholder interests, is