Company: UHS
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0000950170-25-049925
Chunk: 40

Company: UNIVERSAL HEALTH SERVICES INC
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 40
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Actual Corporate Performance Criteria:

Based upon our 2024 actual operating results, the cash incentives paid out for the year (which were based upon corporate performance criteria) were based upon the achievement of 200% of target. During 2024, our adjusted net income per diluted share attributable to UHS was $16.61, as computed on Annex A, as compared to a target of $13.50 per diluted share. This adjusted net income per diluted share attributable to UHS for 2024 was publicly disclosed and reconciled to our reported 2024 net income per diluted share attributable to UHS of $16.82, on the Schedule of Non-GAAP Supplemental Information included with our financial results for the year ended December 31,

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| Universal Health Services, Inc. 2025 Proxy Statement |

| Executive Compensation |

2024, as filed on Form 8-K on February 27, 2025. The Return on Capital was 10.1% for 2024, as compared to a target of 8.0%. The Return on Capital is calculated by dividing our annual adjusted net income attributable to UHS by the consolidated average net capital.

Actual Divisional Performance Criteria:

During 2024, the actual divisional income was as follows:

Acute Care : The actual acute care divisional income, as computed, was $289.4 million as compared to a target income of $179.9 million. Pursuant to the pre-established performance criteria, Mr. Sim was entitled to 200% of the portion of his bonus (75%) that was based upon the achievement of the divisional income target.

Behavioral Health Care : The actual behavioral health care divisional income, as computed and excluding our facilities located in the U.K., was $638.3 million as compared to a target income of $443.1 million. Pursuant to the pre-established performance criteria, Mr. Peterson was entitled to 200% of the portion of his bonus (75%) that was based upon the achievement of the divisional income target.

In determining the corporate and divisional performance criteria, various factors are considered, including the projected revenue and earnings growth over the prior year. Since the value received by stockholders is measured, in large part, by an increase in stock price, which is in turn typically influenced by increases in revenues and earnings, our performance criteria are established at reasonably aggressive levels to encourage the attainment of our financial objectives which, if accomplished, may result in an increase to our stock