Jason Zachariah received 20,000 Kindred shares yesterday as the hospital and nursing home giant announced his promotion to president of Kindred Rehabilitation Services, according to a Securities and Exchange Commission notice this morning.
The shares are in the form of restricted stock units that vest in equal annual installments over three years starting a year from yesterday. Based on yesterday’s $11.01 closing price, the shares are worth $220,000. Zachariah already owned 20,980. It’s common for executives to get bonuses for big promotions. By vesting the shares over several years, a company encourages the employee to stay and also ties their compensation to the company’s overall performance.
Zachariah replaced Jon Rousseau, who is leaving the company to pursue other interests, Kindred said. Rousseau joined Kindred three years ago and was president of KRS since April 2015.
In a separate filing, Rousseau told the SEC he’d given up 24,900 shares without compensation, a stake he presumably walked away from when he quit; the Form 4 document didn’t explain the transaction, however. Rousseau still had 24,433 shares remaining, the document said.*
Zachariah’s elevation and Rousseau’s departure were effective immediately, the company said. Zachariah started at the Louisville hospital and nursing home giant in 2006.
Kindred employs about 2,200 employees in Louisville; it has about 102,000 employees in total. More about Kindred’s operations.
* (At the time he joined the company, Rousseau told the SEC he’d been awarded 35,000 restricted stock units, which were to vest in equal annual installments over three years by July 30 this year — two weeks ago. Attentive readers will notice a discrepancy in all these figures for Rousseau. Without getting too far into the weeds and boring readers to death, Boulevard notes Rousseau also was awarded 14,000 RSUs when he was promoted to rehab president in spring 2015.)