Mark Laret, CEO of UCSF Medical Center has received payments totaling more than $5 million in stock awards and cash since 2007 for his role on the boards of two companies that do millions of dollars of business with his hospital, according to the San Francisco Chronicle.
On top of the $1.6 million Mr. Laret earns at UCSF Medical Center, he has received an average of $556,000 annually in cash fees and equity from Palo Alto, Calif.-based Varian Medical Systems and Burlington, Mass.-based Nuance Communications, a review of company filings shows, according to the report.
Here are four things to know about Mr. Laret's compensation for his role on the two boards.
1. UCSF allows senior managers to participate in "outside professional activities" if the executives do the extra work on personal time, and if the engagements don't present a conflict of interest or the appearance of one, according to the San Francisco Chronicle. Each year, UCSF executives need to obtain approval of their outside professional activities from their immediate superior. In Mr. Laret's case, this is UCSF Chancellor Sam Hawgood.
2. UCSF maintains there is nothing improper about Mr. Laret's roles on the two boards. "Laret fully complied with UC policy in obtaining approvals," UCSF spokesperson Barbara French said in a statement on behalf of Mr. Laret, who declined to be interviewed by the San Francisco Chronicle. Ms. French said Mr. Laret works for the companies during his personal time and is not involved in UCSF's purchasing decisions involving Varian and Nuance products.
3. However, several ethics experts and union officials representing UCSF employees contend Mr. Laret's role on the two boards give the appearance of the conflict, since the companies do business with the medical center and Mr. Laret's primary role on the boards is to maximize the companies' profits. UCSF has given Varian and Nuance nearly $8 million in business since Mr. Laret joined the boards, according to the report.
4. The UC Board of Regents plans Thursday to discuss strengthening its policy on executives' outside activities, including a new policy that would require executives to explain how external roles would support the university. However, the proposal would not apply to Mr. Laret because it would only apply to future cases, not current executives' activities, according to the report.
For more details, read the full San Francisco Chronicle report.