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Nonprofiteer
← ADVENTIST HEALTH SYSTEM TEXAS INC

Form 990 for tax year 2024

Filed by ADVENTIST HEALTH SYSTEM TEXAS INC.

Totals

Total revenue
$180,634,877
Total expenses
$180,634,877
Contributions and grants received
$0
Grants paid
$0
Program services expenses (Part IX)
$180,634,877
Management and general expenses
$0
Fundraising expenses
$0
Program service expenses (Part III)
$180,634,877

Program services were 100.0% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Listed in Part VII

  • Banks David

    Director/Secretary

    Total calculated
    $4,869,658
    From this org
    $0
    From related orgs
    $4,659,499
    Other
    $210,159
    Hours/week
    0.1 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,667,208 related
    Bonus
    $0 + $1,713,881 related
    Other
    $0 + $1,278,410 related
    Deferred
    $0 + $179,406 related
    Nontaxable benefits
    $0 + $30,753 related
    Filer's total
    $0 + $4,869,658 related

  • Randolph Karsten

    Director

    Total calculated
    $1,811,016
    From this org
    $0
    From related orgs
    $1,644,580
    Other
    $166,436
    Hours/week
    0.1 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $729,269 related
    Bonus
    $0 + $428,513 related
    Other
    $0 + $486,798 related
    Deferred
    $0 + $130,246 related
    Nontaxable benefits
    $0 + $36,190 related
    Filer's total
    $0 + $1,811,016 related

  • Johnson Penny

    Director/President/CEO

    Total calculated
    $1,780,691
    From this org
    $0
    From related orgs
    $1,594,927
    Other
    $185,764
    Hours/week
    0.1 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $720,357 related
    Bonus
    $0 + $535,341 related
    Other
    $0 + $339,229 related
    Deferred
    $0 + $138,186 related
    Nontaxable benefits
    $0 + $47,578 related
    Filer's total
    $0 + $1,780,691 related

  • Sutton Jesse

    Director/CFO

    Total calculated
    $785,390
    From this org
    $0
    From related orgs
    $687,430
    Other
    $97,960
    Hours/week
    0.1 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $400,916 related
    Bonus
    $0 + $198,886 related
    Other
    $0 + $87,628 related
    Deferred
    $0 + $68,051 related
    Nontaxable benefits
    $0 + $29,909 related
    Filer's total
    $0 + $785,390 related

  • CouchJordan

    Dir of Strat and Operations

    Total calculated
    $251,090
    From this org
    $212,123
    From related orgs
    $0
    Other
    $38,967
    Hours/week
    0 + 40 related

    Schedule J breakdown matched by us

    Base
    $183,384
    Bonus
    $27,949
    Other
    $790
    Deferred
    $8,271
    Nontaxable benefits
    $30,696
    Filer's total
    $251,090

  • LookingbillKristen

    AVP Amb & Phys Enterprise

    Total calculated
    $248,229
    From this org
    $219,866
    From related orgs
    $0
    Other
    $28,363
    Hours/week
    0 + 40 related

    Schedule J breakdown matched by us

    Base
    $188,639
    Bonus
    $30,498
    Other
    $729
    Deferred
    $8,006
    Nontaxable benefits
    $20,357
    Filer's total
    $248,229

  • SomefunOluwatoyin

    Clinical Pharmacist

    Total calculated
    $247,051
    From this org
    $211,301
    From related orgs
    $0
    Other
    $35,750
    Hours/week
    0 + 40 related

    Schedule J breakdown matched by us

    Base
    $209,950
    Bonus
    $0
    Other
    $1,351
    Deferred
    $10,835
    Nontaxable benefits
    $24,915
    Filer's total
    $247,051

  • BarnesFarrah

    Team Ldr Excellence Program

    Total calculated
    $231,101
    From this org
    $212,578
    From related orgs
    $0
    Other
    $18,523
    Hours/week
    0 + 40 related

    Schedule J breakdown matched by us

    Base
    $211,273
    Bonus
    $150
    Other
    $1,155
    Deferred
    $8,662
    Nontaxable benefits
    $9,861
    Filer's total
    $231,101

  • CastellanosEsther

    Clinical Pharmacist

    Total calculated
    $221,644
    From this org
    $213,536
    From related orgs
    $0
    Other
    $8,108
    Hours/week
    0 + 36.7 related

    Schedule J breakdown matched by us

    Base
    $211,920
    Bonus
    $0
    Other
    $1,616
    Deferred
    $7,311
    Nontaxable benefits
    $797
    Filer's total
    $221,644

  • Bacon Kenneth

    Former Officer

    Total calculated
    $3,110,811
    From this org
    $0
    From related orgs
    $3,105,063
    Other
    $5,748
    Hours/week
    0

    Schedule J breakdown matched by us

    Base
    $0 + $166,583 related
    Bonus
    $0 + $959,419 related
    Other
    $0 + $1,979,061 related
    Deferred
    $0
    Nontaxable benefits
    $0 + $5,748 related
    Filer's total
    $0 + $3,110,811 related

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

  • 4a · Severance or change-of-control payment
  • 4b · Supplemental nonqualified retirement plan

Answered no

  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 5b · Pay contingent on a related organization's revenues
  • 6a · Pay contingent on this organization's net earnings
  • 6b · Pay contingent on a related organization's net earnings
  • 7 · Other non-fixed payments
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

Part I, Line 3
The individual who serves as the CEO of the filing organization is appointed and compensated by Adventist Health System Sunbelt Healthcare Corporation (AHSSHC). Compensation and benefits provided to this individual are determined pursuant to policies, procedures, and processes of AHSSHC that are designed to ensure compliance with the intermediate sanctions laws as set forth in IRC Section 4958. AHSSHC has taken steps to ensure that processes are in place to satisfy the rebuttable presumption of reasonableness standard as set forth in Treasury Regulation Section 53.4958-6 with respect to its active executive-level positions. The AHSSHC Board Compensation Committee (the Committee) serves as the governing body for all executive compensation matters. The Committee is composed of certain members of the Board of Directors (the Board) of AHSSHC. Voting members of the Committee include only individuals who serve on the Board as independent representatives, who hold no employment positions with AHSSHC and who do not have relationships with any of the individuals whose compensation is under their review that impacts their best independent judgment as fiduciaries of AHSSHC. The Committee's role is to review and approve all components of the executive compensation plan of AHSSHC. As an independent governing body with respect to executive compensation, it should be noted that the Committee will often confer in executive sessions on matters of compensation policy and policy changes. In such executive sessions, no members of management of AHSSHC are present, other than the Chief People Officer, who remains at the request of the Chairman/committee to provide assistance/information as needed. The Committee is advised by an independent third-party compensation advisor. This advisor prepares all the benchmark studies for the Committee. Compensation levels are benchmarked with a national peer group of other not-for-profit healthcare systems and hospitals of similar size and complexity to AdventHealth and each of its affiliated entities. The following principles guide the establishment of individual executive compensation: - The salary of the President/CEO of AdventHealth will not exceed the 50th percentile of comparable salaries paid by similarly situated organizations; and - Other executive salaries shall be established using market medians. The compensation philosophy, policies, and practices of AHSSHC are consistent with the organization's faith-based mission and conform to applicable laws, regulations, and business practices. As a faith-based organization sponsored by the Seventh-day Adventist Church (the Church), AHSSHC's philosophy and principles with respect to its executive compensation practices reflect the conservative approach of the Church's mission of service and were developed in counsel with the Church's leadership.
Part I, Lines 4a-b
During the year ending December 31, 2024, Kenneth Bacon received severance payments in the amount of $1,254,159. Pursuant to the AHSSHC Corporate Executive Policy governing executive severance, severance agreements for executives operating at the Vice President level and above are entered into upon eligibility to facilitate the transition to subsequent employment following an involuntary separation from employment with AdventHealth. Executives on the filing organization's management team that hold the position of Vice-President or above are compensated by and on the payroll of Adventist Health System Sunbelt Healthcare Corporation (AHSSHC), the parent organization of the healthcare system known as AdventHealth. In recognition of the contribution that each executive makes to the success of AdventHealth, AdventHealth provides supplemental executive retirement benefit plans to eligible executives. As the supplemental executive retirement benefit plans were updated in 2020 and certain individuals still participate as grand-fathered participants in certain plans, the narrative below discusses all plans in which there were any participants in 2024. The SERP III plan effectively replaces the prior SERP II plan, the Executive Flex Benefit Program Plan, and the Senior Executive Death Benefit Plan for qualified executives except for certain grandfathered executive employees. SERP III Plan: The SERP III plan provides eligible executives a percentage of their base pay, which is credited to a deferred compensation account. The plan also provides for compensation deferral and selection of life insurance coverage and long-term care insurance. To be eligible to participate in the SERP III plan, executives must be on the AHSSHC corporate payroll and be either a CEO of an AdventHealth entity, an AHSSHC Vice President (VP) or VP of an AdventHealth entity with a base salary of at least $345,000 in 2024 (adjusted annually by the same percentage as IRC Section 401(a)(17) limit increases), or other leader specifically approved by the AdventHealth President. Eligible executives do not include grandfathered executives, meaning those executives who would satisfy all the eligibility requirements of the SERP II plan prior to Dec 31, 2027, had the plan not been amended and restated as of Jan. 1, 2020. Contribution credits will be established and maintained by class year accounts for each participant using tiered contribution credit percentages of annual base compensation. Contribution credit percentages range between 15% and 19% of base compensation. Contribution credits will be made each quarter in 25% increments with reductions in contributions if the executive is also a grandfathered FLEX participant (see below). SERP III provides for a class year vesting and payment schedule (7 years for each class year) with respect to amounts accumulated in the executive's deferred compensation account. Upon attainment of a normal retirement age (age 62), or upon certain other circumstances as defined in the SERP III plan document, all deferred amounts are paid immediately to the participant. For any executives working beyond the normal retirement age, future employer contributions will be made quarterly from SERP III directly to the participant as a taxable cash bonus. SERP II Plan: The SERP II plan is a defined benefit, non-tax-qualified deferred compensation plan for certain executives who have provided lengthy service to AdventHealth and/or to other Seventh-day Adventist Church hospitals or health care institutions. Under the provisions of the SERP II plan, benefits are provided to qualifying executive participants on a pro-rata schedule beginning with 20 years of service as an employee of AdventHealth and/or another hospital or health care institution controlled by the Seventh-day Adventist Church and who satisfy certain other qualifying criteria. Eligible employees are restricted to those executives who, as of January 1, 2020, satisfied, or if employment continues, will satisfy the eligibility requirements of SERP II prior to December 31, 2027. This supplemental executive retirement plan (SERP II) was designed to provide eligible executives with the economic equivalent of an annual income beginning at normal retirement age equal to 60% of the average of the participant's three, five or seven highest years of base salary from AdventHealth active employment inclusive of income from all other Seventh-day Adventist Church healthcare employer-financed retirement income sources and investment income earned on those contributions through social security normal retirement age as defined in the plan. The number of years included in highest average compensation is determined by the individual's year of entry to SERP II and by the individual's year of entry to the AdventHealth Executive FLEX Benefit Program. FLEX Plan: The Flex Plan was originally designed to provide eligible executives an opportunity to select from among a variety of supplemental benefits, including a split dollar life insurance policy and long-term care insurance, to individually tailor a benefits program appropriate to each executive's needs. In 2020, the Flex Plan was amended to exclude employed executives who are hired or promoted after a certain date from being eligible to participate in the Flex Plan except for certain insurance coverage features of the plan. The Flex Plan provides eligible participants a pre-determined benefits allowance credit that is equal to a percentage of the executive's base pay from which the cost of mandatory and elective employee benefits is deducted. The benefits allowance credit percentage for any plan year shall not be greater than the maximum dollar amount or the percentage of compensation as determined by the AdventHealth Benefits Administration Committee. For grandfathered eligible employees, the annual pre-determined Flex allowance is contributed and any funds that remain after the cost of mandatory and elective benefits are subtracted are, at the employee's option, contributed to either an IRC 457(f) deferred compensation account or to an IRC 457(b) eligible deferred compensation plan. Upon attainment of age 65, all previous 457(f) deferred amounts are paid immediately to the participant and any future employer contributions are made quarterly from the Plan directly to the participant. The Plan provides for a class year vesting schedule (2 years for each class year) with respect to amounts accumulated in the executive's 457(f) deferred compensation account. Distributions could also be made from the executive's 457(f) deferred compensation account upon attainment of age 65 or upon an involuntary separation. The account will be forfeited by the executive upon a voluntary separation. With respect to grandfathered participants, the Flex Plan documents define eligible employees to include the Chief Executive Officers of AdventHealth entities and Vice Presidents of all AdventHealth entities whose base salary was at least equal to the Internal Revenue Code Section 401(a)(17) compensation limit each year. FLEX Plan FLEX Plan SERP II SERP III Contr. Distr.* Contr./Distr. Distr.* Banks,David $ 160,890 $ 159,205 $ 981,042 $ 0 Bacon,Kenneth $ 0 $ 0 $ 0 $ 674,259 Randolph,Karsten $ 134,730 $ 112,847 $ 289,254 $ 0 Johnson,Penny $ 119,670 $ 123,218 $ 0 $ 0 Sutton,Jesse $ 49,535 $ 48,077 $ 0 $ 0 *Including Investment Earnings

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

Provenance

Return type
form_990
Tax year
2024
Filed
21 October 2025
IRS schema version
2024v5.2
Source object
202543179349312054

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