New Ramsay Health Care chairman Michael Siddle says the private hospital operator can replicate its Australian success story in France, where it is now the market leader, in his first official communication to shareholders after the passing of company founder Paul Ramsay.
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Mr Siddle was appointed chairman, moving up from the deputy role, after the billionaire philanthropist Mr Ramsay died in May.
In a letter to investors, contained in the Sydney-based company's annual report that was released on Friday, Mr Siddle said in the past decade Ramsay has shown it can successfully operate hospitals locally and overseas.
The company has been operating hospitals in Australia since Mr Ramsay set up his first psychiatric hospital on Sydney's north shore in 1964, but is a relatively new entrant overseas. Ramsay has hospitals in France, the United Kingdom and Malaysia.
Just last week the $10 billion company inked the final papers in its acquisition of French operator Generale de Sante, which makes Ramsay and its joint venture partner Credit Agricole Assurances the country's largest private hospital company.
"The board is confident that, under the guidance of this strong management team, Ramsay Health Care will be successful in France as we have been in Australia," Mr Siddle wrote to shareholders.
Mr Siddle and Ramsay directors Peter Evans and Tony Clark are the three directors of the Paul Ramsay Foundation, which received a donation of more than $3 billion from Mr Ramsay's estate. The Foundation controls just over a third of the private hospital operator's share register.
"It is the intention of the Paul Ramsay Foundation to remain a significant long term shareholder of Ramsay Health Care," Mr Siddle said, adding that he and the other directors, "are aligned with Ramsay's growth strategy."
The annual report also revealed that chief executive Chris Rex was paid $9.1 million in the 2014 financial year. Mr Rex's total remuneration increased by about $790,000, or 9.5 per cent, compared to $8.3 million in the previous year.
A $1.1 million retention bonus paid in the prior year was not repeated, but a rise in Mr Rex's base pay, short term bonus and share based payments meant his total pay did not go down.
The total remuneration paid to Ramsay's top four executives rose $2.4 million, or 15 per cent, to $18.2 million.
Ramsay shares have gained 44 per cent in the past year, compared to a 3 per cent rise in the S&P/ASX200 benchmark index. The stock closed at $49.68 on Thursday
