Oct. 20--The chief executive of struggling Accretive Health has another 1.5 million reasons to stay on the job.
The Chicago company, which helps hospitals collect bills from patients and insurers, said Tuesday that it is increasing its retention bonus and change-of-control severance agreement with CEO Emad Rizk to encourage his "continued attention and dedication ... without the distraction arising from the possibility of a change of control."
The agreement increases potential payments to Rizk by as much as $1.5 million, according to a filing with the Securities and Exchange Commission. He could collect up to $3.75 million as a retention bonus and up to $3.75 million as a severance payment in the event of a change of control. Both payments were previously $3 million, under an August agreement.
Rizk made $20.6 million last year, his first year as CEO, most of it from stock and options awards, according to a July proxy statement. His base salary was $338,835.
In July, the company said it would explore strategic alternatives after turning down a $260 million offer from Ascension Health, its largest customer and one of the nation's largest Catholic health systems.
Accretive Health did not immediately respond to questions Tuesday about other offers it may have received, or strategic alternatives it is pursuing. Still, giving its CEO a sweeter package to stay suggests that the company is investigating such options.
Accretive Health reported a $79.6 million loss last year, its fourth unprofitable year in the last five years as its struggles to bounce back from legal and accounting troubles.
The company is still recovering from a massive financial restatement connected to accounting errors over when it recorded revenues from certain contracts. The company was delisted from the New York Stock Exchange because it missed a deadline for restating results. The company's shares are traded over the counter.
jrussell@tribpub.com
