The former CEO of bankrupt North Philadelphia Health System does not deserve his $1.8 million severance package, according to a lawsuit filed March 15 and obtained by The Inquirer.
Four things to know:
1. The lawsuit alleges the health system underwent years of financial losses before filing for bankruptcy in 2016. The losses stemmed from "incompetence and [the] self-dealing of management," including from former CEO George Walmsley, the report states.
2. The lawsuit, filed by a trustee in charge of overseeing the funds to be distributed to the health system's creditors, accused Mr. Walmsley of fraudulent conveyance and breach of fiduciary duty. Before he resigned from the health system in December 2017, Mr. Walmsley's base salary was $459,504.
3. Mr. Walmsley is the only one of six NPHS executives who refuses to waive his financial claim, according to the lawsuit. Four executives have agreed to waive their claims totaling $121,367, and the system's former CFO waived her claim of $608,423.
4. NPHS filed for bankruptcy in 2016 with $17 million in secured debt and $29 million in unsecured debt. Proceeds from the sale of real estate were able to pay off the health system's secured creditors, leaving unsecured claims of roughly $20 million, the report states.
To access the full report, click here.