California's Assembly Committee on Local Government approved a bill that would prohibit taxpayer-funded healthcare districts from giving lavish pay packages and perquisites to their top executives, according to a Bay Citizen report.
The bill, sponsored by Assemblyman Luis Alejo (D-Salinas), would also disallow retiring executives to receive lofty compensation, such as lump-sum supplemental payments, that are not available to other healthcare district and hospital employees.
"This bill creates fair pension systems within healthcare districts and would prevent healthcare districts from providing unfair pay packages to their top executives," Mr. Alejo said in the report.
Mr. Alejo introduced the bill after his district's health system, Salinas Valley Memorial Healthcare System, awarded former CEO Sam Downing a $4.9 million retirement package last year in addition to his $150,000-per-year pension. Last month, a California state audit found Salinas conducted $21 million in business over the past five years with firms that had financial ties to Mr. Downing and board members.
The bill will now head to the Assembly next week for a floor vote. If the bill is passed and signed into law, the compensation standards would go into effect Jan. 1, 2013.
The bill, sponsored by Assemblyman Luis Alejo (D-Salinas), would also disallow retiring executives to receive lofty compensation, such as lump-sum supplemental payments, that are not available to other healthcare district and hospital employees.
"This bill creates fair pension systems within healthcare districts and would prevent healthcare districts from providing unfair pay packages to their top executives," Mr. Alejo said in the report.
Mr. Alejo introduced the bill after his district's health system, Salinas Valley Memorial Healthcare System, awarded former CEO Sam Downing a $4.9 million retirement package last year in addition to his $150,000-per-year pension. Last month, a California state audit found Salinas conducted $21 million in business over the past five years with firms that had financial ties to Mr. Downing and board members.
The bill will now head to the Assembly next week for a floor vote. If the bill is passed and signed into law, the compensation standards would go into effect Jan. 1, 2013.
More Articles on Hospital Executive Compensation Legislation:
Massachusetts Senate Limits Non-Profit Board Member Compensation
How Healthcare Reform is Affecting Hospital Leaders' Compensation
NY Gov. Andrew Cuomo Proposes $199k Cap on Non-Profit Executive Pay