Alan Miller, founder of Universal Health Services, King of Prussia, Pa., was granted stock-based compensation for the first time in two years in 2005 and received a $2.5 million bonus, a year after receiving no bonus at all, according to the company's annual proxy statement filed with the Securities and Exchange Commission. The proxy also said Miller's son, Marc, 35, a vice president of the company, was nominated for election to the board of directors for the first time. Alan Miller was granted both a restricted stock award valued at $5.9 million and 90,000 stock options in 2005, part of his total dollar-based compensation of $9.8 million. Miller exercised 1 million stock options with net proceeds of $8.3 million for total pay of $18 million. In 2004, he received $1.5 million in salary and other compensation and gained net proceeds of $16.6 million from exercising 530,000 stock options.
Miller received the restricted stock bonus because the company hit its target for return of capital. However, Universal fell short of its earnings-per-share target, costing Miller 200,000 restricted shares. The company earned profits of $240.8 million in 2005, a 40% increase over 2004, but the increase was primarily related to asset sales, not operations. Universal's three New Orleans hospitals remain closed from the damage Hurricane Katrina caused, and the company faces tough competition from a physician-owned hospital in its southern Texas market. Universal owns or operates 28 acute-care hospitals and 77 behavioral-health hospitals and residential treatment centers and schools. -- by Vince Galloro