After learning the board of city-owned Memorial Health System in Colorado Springs, Colo., approved a $1 million severance package for outgoing CEO Larry McEvoy, MD, the city council issued an ultimatum, saying the health system's board members should either voluntarily resign or the council will remove them, according to a KRDO report.
Last week, the board announced Dr. McEvoy will leave his position Friday. His severance included 18 months salary — as of January, Dr. McEvoy's salary was $670,009 — $20,000 in job placement assistance and the ability to keep his company car, totaling roughly $1.15 million in compensation, according to a Gazette report.
In an executive session, the city council gave the 11-member board until 5 p.m. today to step down or be fired. Karen Anthony, the only board member who opposed Dr. McEvoy's severance, will remain on the board.
However, by law, the Memorial board did not have to seek city council approval for the severance package. According to the Gazette, Dr. McEvoy said, "The board came up with a compensation philosophy that said, for every position, we weren't going to pay low and we weren't going to pay high — we were going to pay right at the median. I think that the agreement that you see is just a reflection of the board's philosophy."
The city council and city attorney will begin a two-week review of the severance agreement between Dr. McEvoy and Memorial. Memorial is expected to become a part of the University of Colorado Health System in September.
Last week, the board announced Dr. McEvoy will leave his position Friday. His severance included 18 months salary — as of January, Dr. McEvoy's salary was $670,009 — $20,000 in job placement assistance and the ability to keep his company car, totaling roughly $1.15 million in compensation, according to a Gazette report.
In an executive session, the city council gave the 11-member board until 5 p.m. today to step down or be fired. Karen Anthony, the only board member who opposed Dr. McEvoy's severance, will remain on the board.
However, by law, the Memorial board did not have to seek city council approval for the severance package. According to the Gazette, Dr. McEvoy said, "The board came up with a compensation philosophy that said, for every position, we weren't going to pay low and we weren't going to pay high — we were going to pay right at the median. I think that the agreement that you see is just a reflection of the board's philosophy."
The city council and city attorney will begin a two-week review of the severance agreement between Dr. McEvoy and Memorial. Memorial is expected to become a part of the University of Colorado Health System in September.
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