2018 Guide to Effective Proxies

2.17.10 Peer groups | 479 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES COMPENSATION DISCUSSION AND ANALYSIS • Step 3: Remove companies with: O Revenues less than ~$5 billion or greater than ~$60 billion O Enterprise value greater than $60 billion O Fewer than 25,000 employees (197 companies removed) Using the criteria set forth above, the Human Resources Committee established the following peer group for 2017 compensation decisions: DIRECT PEERS OTHER PEERS Community Health Systems Aetna Genesis Healthcare HCA Healthcare Baxter International Humana LifePoint Health Becton, Dickinson and Company Kindred Healthcare Universal Health Services Boston Scientific LabCorp Cigna Quest Diagnostics DaVita Stryker Envision Healthcare The following chart illustrates Tenet’s size compared to the 2017 peer group median of revenues, enterprise value and number of employees, using data provided to the Human Resources Committee by the Consultant in August 2016. Tenet Positioning Relative to Peers Revenue 100 th Percentile 100 th Percentile 100 th Percentile 83 rd 66 th 50 th Percentile Enterprise Value Employees 33 rd Market Survey Data For 2017 compensation decisions, the Human Resources Committee reviewed additional compensation data from the following third-party general-industry survey sources: SURVEY TARGETED ANNUAL REVENUE OF COMPANIES COMPRISING DATA USED BY CONSULTANT 2016 Aon Hewitt Total Compensation Measurement survey $10 billion to $25 billion 2016 Mercer Executive Benchmark survey greater than $10 billion 2016 Willis Towers Watson U.S. Compensation Database survey $10 billion to $20 billion 2016 Willis Towers Watson Top Management survey greater than $5 billion 2016 Frederic W. Cook Long-Term Incentives survey $17.5 billion TENET HEALTHCARE Š 2018 PROXY STATEMENT 39 TENET HEALTHCARE CORPORATION