Kindred Names Chief Operating Officer

Battafarano, 57, began working for the company in 1992, and became president of the hospital division in 1998. He has been an executive vice president since 2005.

The position of chief operating officer comes with a three-year term, according to a Securities and Exchange Commission filing, and has an annual base salary of $650,000. The position also allows Battafarano to participate in the company's short-term incentive plan with a full-year target bonus of 75 percent of his base salary.

He will also participate in the long-term incentive plan, with a full-year target bonus of 45 percent of his base salary. Other employee benefit programs include the company's equity plans. The company awarded him 20,000 in restricted shares of common stock, vesting in annual installments over a three-year period. He also received 15,000 performance-based units and 15,000 stock options, both also vesting over three years.

If Battafarano finishes his three-year term, he is entitled to 36 months of additional vesting of restricted stock awards and stock options and an additional 36 months to exercise options. He would also be entitled to coverage under Kindred's employee benefit plans for an additional 38 months.

Shares of Kindred fell 87 cents, or 4.1 percent, to close at $20.38.