El Camino Hospital Officially Files Lawsuit Over Executive Pay Cap

Officials at El Camino Hospital, based in Mountain View, Calif., have filed a lawsuit against the SEIU to negate a voter-backed initiative that would limit hospital executive compensation, according to a Mountain View Voice report.

In November, 52 percent of people within the hospital's county voted to approve Measure M, which would cap the compensation of El Camino executives to no more than twice the salary of California's governor. Roughly 52 percent of voters voted in favor of the measure. Based on most recent figures, this would mean El Camino Hospital executives could earn no more than roughly $330,000.

The hospital's lawsuit names two top union officials as defendants: Kary Lynch and Laura Huston. Mr. Lynch and Ms. Huston co-sponsored Measure M. The hospital is also suing interim Chief Human Resources Officer Tamara Stafford, asking the court "to issue a preliminary and then permanent injunction enjoining [Ms. Stafford] from reducing the annual salary and compensation benefits" of executives, according to the report. Six of the hospital's highest-paid executives, including CEO Tomi Ryba, are named as plaintiffs.

Lawyers representing the hospital will argue Measure M overstepped bounds to place restrictions on a healthcare district. In addition, the complaint read that the "California Constitution prohibits the state and its political subdivisions from impairing the obligation of contracts," according to the report.

The SEIU told the Mountain View Voice that because it is not named within the lawsuit, Mr. Lynch and Ms. Huston will be represented by their own attorneys. Mr. Lynch said he believes the hospital is trying to "intimidate" him and will attempt to fight the suit, according to the report.

More Articles on El Camino Hospital Executive Compensation:

Hospital and Health System Executive Compensation in 2013: 8 Trends to Monitor
El Camino Hospital to Pursue Legal Means to Block Voter-Backed Salary Cap
Voters OK Measure to Cap Executive Pay in El Camino Hospital District

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