Tenet Board Shrinking as Challenges Loom

But Fetter himself is hardly suffering. Indeed, he collected $1.2 million from the company for relocation expenses associated with his own move to Santa Barbara last year. He also picked up more than $1 million in salary and bonuses, $3.73 million worth of restricted stock awards and 350,000 stock options.

The payout came after Tenet's board "initiated an extensive review of the company's executive compensation strategy and programs." The board capped bonuses, for the first time ever, at double the target amount. It also lowered total compensation packages to the median range of the industry.

The news comes as Tenet confronts a number of challenges, notably a looming cash crunch and a number of government and regulatory probes. The company's stock has swooned since a raft of Medicare billing irregularities came to light some 18 months ago.

Tenet's stock inched up 15 cents to $11.15 on Monday.