The union felt Fetter, in particular, was being overpaid for the company's stock and earnings performance. Despite the Teamsters' opposition, shareholders appoved the plan.
Tenet Healthcare Corp. CEO Trevor Fetter has resigned amid the company's financial troubles and planned reorganization, the health system announced late Monday. Executive Chairman Ronald Rittenmeyer will fill in while the company continues its search for a permanent CEO.
Fetter announced in late August that he would step down in March or when a successor was appointed and that the investor-owned chain would shake up its board.
"I want to sincerely thank Trevor for his leadership of the company over the past 14 years, and particularly for his support in making this transition a success," Rittenmeyer said in a release.
"I have confidence in Ron's leadership and Tenet's management team, so now is the right time for me to step down as CEO," Fetter said in a release. "I am grateful for the hard work and dedication of all of Tenet's employees in building this great company, and it has been an honor to work alongside them."
As the company endures softening hospital admissions, rising deductibles and other headwinds that have compressed operating margins across the industry, Tenet looks to reduce some of the bureaucracy to try to streamline operations and cut costs, executives said.