Local residents are calling on hospitals and health systems to provide greater transparency on CEO salary decisions following recent mergers and acquisitions, according to various reports.
A staff editorial in The Boston Globe tasked private-equity firm Cerebrus, which plans to acquire New England-based Caritas Christi Health Care, with providing information on compensation of Caritas CEO Ralph de la Torre.
According to the report, Mr. de la Torre has an impressive resume with Caritas. Since taking the reins at the hospital system in 2008, he has taken the hospital chain from massive losses to an operating income of over $30 million. Even so, the editorial said Cerebrus should make public its plans for Mr. de la Torre's compensation, considering the executive made upwards of $1.3 million in 2009.
Residents have similarly questioned the compensation of Bob Williams, CEO of publicly owned Bert Fish Medical Center in New Smyrna Beach, Fla., which recently merged with private non-profit Florida Hospital, according to a Daytona Beach News-Journal Report. Because Florida Hospital only allows members of the Seventh-Day Adventist Church as its CEOs, the merger meant Mr. Williams would be ineligible to stay permanently as Bert Fish's top executive.
Instead, Mr. Williams will receive $1 million in pay plus benefits through a clause in his contract that gives him three years pay in the event he has to leave the position.
Members of the Southeast Volusia Hospital District board objected to the large severance package, saying they should have been consulted about the decision.
Read the Daytona Beach News-Journal report on Bert Fish Medical Center.
Read the Boston Globe staff editorial on Ralph de la Torre's compensation.
A staff editorial in The Boston Globe tasked private-equity firm Cerebrus, which plans to acquire New England-based Caritas Christi Health Care, with providing information on compensation of Caritas CEO Ralph de la Torre.
According to the report, Mr. de la Torre has an impressive resume with Caritas. Since taking the reins at the hospital system in 2008, he has taken the hospital chain from massive losses to an operating income of over $30 million. Even so, the editorial said Cerebrus should make public its plans for Mr. de la Torre's compensation, considering the executive made upwards of $1.3 million in 2009.
Residents have similarly questioned the compensation of Bob Williams, CEO of publicly owned Bert Fish Medical Center in New Smyrna Beach, Fla., which recently merged with private non-profit Florida Hospital, according to a Daytona Beach News-Journal Report. Because Florida Hospital only allows members of the Seventh-Day Adventist Church as its CEOs, the merger meant Mr. Williams would be ineligible to stay permanently as Bert Fish's top executive.
Instead, Mr. Williams will receive $1 million in pay plus benefits through a clause in his contract that gives him three years pay in the event he has to leave the position.
Members of the Southeast Volusia Hospital District board objected to the large severance package, saying they should have been consulted about the decision.
Read the Daytona Beach News-Journal report on Bert Fish Medical Center.
Read the Boston Globe staff editorial on Ralph de la Torre's compensation.