Brentwood, Tenn.-based Ardent Health has stopped paying the severance it owed former President and CEO Marty Bonick and canceled his unvested stock awards. The board found he did not fully disclose compensation he received from third parties, according to an Oct. 23 filing with the Securities and Exchange Commission.
Mr. Bonick’s employment as president and CEO ended June 2, as did his seat on the board. He and AHS Management Co., an Ardent subsidiary, signed a separation agreement June 26 that gave him severance benefits consistent with a termination without cause, according to the filing.
On Oct. 19, the board determined that facts discovered after his departure would have given Ardent grounds to fire him for cause as of June 2. The decision came after Mr. Bonick was notified and “was afforded an opportunity to be heard.” It was unclear whether Mr. Bonick attended a hearing. The board found he did not fully disclose to Ardent and its board compensation from third parties that company policy required him to report.
Following the board’s decision, Ardent recharacterized Mr. Bonick’s separation as a termination for cause, effective June 2. His employment agreement allowed this, and the separation agreement preserved that right, according to the filing.
Ardent will discontinue the rest of the severance payments and benefits owed under the separation agreement, including about $4.5 million in unpaid cash severance. All of Mr. Bonick’s outstanding unvested performance-based restricted stock units will be canceled or forfeited.
Ardent said none of its financial statements or previously reported financial results need to be revised or corrected. The company has reserved the right to pursue any other remedies it may have against Mr. Bonick.
The filing does not identify the source or amount of the undisclosed compensation.
Mr. Bonick had served as CEO since 2020 and oversaw the organization’s initial public offering in July 2024. COO Dave Caspers was named president and CEO June 2.
Mr. Bonick now serves as founder and principal at Nashville, Tenn.-based Thryve Ventures, according to his LinkedIn profile.
An Ardent spokesperson told Becker’s the company has nothing to share beyond the information in the filing. Becker’s has reached out to Mr. Bonick for comment and will update this story if more information becomes available.
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