As the public puts the microscope on high executive pay at nonprofit hospitals, the Rhode Island Hospital union blasted reports of the compensation packages of Lifespan's highest-earning executives that topped out at a $2.9 million for its president and CEO, among the total $9.4 million for nine executives, reports Providence Business News.
According to IRS 990 forms, chief executive George A. Vecchione earned $853,024 in base salary, $522,051 in bonuses, and $1,485,197 in retirement or deferred compensation, according to the article.
Calling the pay "corporate greed," President of the United Nurses & Allied Professionals Helene Macedo questioned the high pay, especially during tough times.
"It's not justified, when we see the sacrifice that those of us who are working at the bedside are being asked to make," she said.
In addition, President and CEO of Rhode Island Hospital and The Miriam Hospital Dr. Timothy J. Babineau received $1.1 million in compensation, including $573,675 in base salary, $379,376 in bonuses, and $92,035 in retirement or deferred compensation, according to the article.
Because of its nonprofit status, the Lifespan board of directors sets compensation levels for its executives.
"The Attorney General encourages the board to ensure that executive compensation packages are in line with similar sized health care networks in the region," spokeswoman Amy Kempe said.
Alfred Verrecchia, chairman of Lifespan's board of directors, said the compensation packages are based on market value, that is, The Hay Group's surveys, and necessary to recruit talented leadership.
For more information:
- read the Providence Business News article
- read Lifespan's stats
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