Company: UHS
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0000950170-25-049925
Chunk: 43

Company: UNIVERSAL HEALTH SERVICES INC
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 43
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 award grant dates for our NEOs in coordination with the release of material non-public information. Typically, equity awards are granted to our NEOs at the same time as equity awards are granted to our other employees. In certain circumstances, such as new hires or promotions, equity awards in the form of RSUs, are granted separately by the Compensation Committee or our Chief Executive Officer and Chief Financial Officer who are duly authorized by the Compensation Committee.

After reviewing market data prepared by FW Cook, our third-party executive compensation consultant, the Compensation Committee determined that the target pay mix for all our employees, including our CEO and other NEOs, could be more closely aligned with the comparable target pay mix at our peer group companies. To this end, commencing in 2024, the Compensation Committee began awarding annual stock-based compensation to all our employees, including our CEO and other NEOs, in the form of time-based restricted stock units (to our non-NEO employees) and a mix of time-based restricted stock units and performance-based restricted stock units (to our CEO and other NEOs), rather than in the form of options to purchase shares of our Class B Common Stock. As discussed below, the performance-based restricted stock units will be earned based upon the achievement of the three-year growth in our adjusted earnings before interest, taxes, depreciation and amortization and the impacts of other income/expense, as compared to a target range of pre-established thresholds.

We believe these changes to the elements of compensation for each of our employees and NEOs continue to preserve significant reliance on at-risk, performance-based compensation. The Compensation Committee believes that restricted stock units/performance-based restricted stock units awards can be effective in achieving our compensation objectives because it provides employees with a strong retention incentive and aligns the value of the award with our stock price performance. The Compensation Committee may provide that restricted stock units/performance-based restricted stock units awards shall earn dividends or dividend equivalents (payable in cash or additional shares, or a combination of cash and shares), however, dividends or dividend equivalents may not be paid with respect to any restricted stock units/performance-based restricted stock units award until vesting requirements are satisfied. Generally, holders of restricted stock units/performance-based restricted stock units receive dividend equivalents which are subject to vesting in line with the underlying award to which they relate.

Granting of 2024 Time-Based Restricted Stock Units ("RSUs") and Performance-Based Restricted Stock Units ("PBRSUs"):

Consistent with the practice discussed above, in March of 2024, our