After the public system came under fire for paying its retired CEO nearly $4 million, state officials will audit Salinas (Calif.) Valley Memorial Healthcare System to probe executive compensation, according to a Salinas Californian report.
A state legislative committee approved the audit yesterday at the request of Assemblyman Luis Alejo. The decision follows a Los Angeles Times report that revealed SVMHS President and CEO Samuel Downing will collect nearly $4 million on top of his $150,000-per-year pension.
System officials defended the pay, saying he worked hard and the plan was designed in the mid-1980s — before the system recently cut 600 positions.
SVMHS is welcoming the audit, according to a system news release. "We already have an independent, outside firm conduct an audit every year on the hospital's financials, so we know the state will find we are in compliance with all laws, rules, and regulations, and have acted ethically," Jim Gattis, president of the SVMHS board of directors, said in the release.
The audit is expected to take six months to complete.
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A state legislative committee approved the audit yesterday at the request of Assemblyman Luis Alejo. The decision follows a Los Angeles Times report that revealed SVMHS President and CEO Samuel Downing will collect nearly $4 million on top of his $150,000-per-year pension.
System officials defended the pay, saying he worked hard and the plan was designed in the mid-1980s — before the system recently cut 600 positions.
SVMHS is welcoming the audit, according to a system news release. "We already have an independent, outside firm conduct an audit every year on the hospital's financials, so we know the state will find we are in compliance with all laws, rules, and regulations, and have acted ethically," Jim Gattis, president of the SVMHS board of directors, said in the release.
The audit is expected to take six months to complete.
Related Articles on Salinas Valley Memorial Healthcare System:
Hospital CEO's Supplemental Retirement Pay Under Fire in California
Salinas Valley Memorial Healthcare Officials Defend CEO's $4M Retirement Package
Assemblyman Requests Audit of California's Salinas Valley Memorial Healthcare Following CEO Compensation Disclosure