The top 12 El Camino Hospital executives will receive an average pay increase of 4.7 percent this year now that administrators are managing two hospitals, board members decided during a meeting earlier this week.
The board of directors held an open session on Monday, July 27 to vote on increases to the executives' base salaries, which will take effect Aug. 9. The board then discussed benefits, incentive goals and other bonuses during a closed session afterward. Hospital representatives said no decisions were made during the closed session.
Last year executives received an average pay increase of 3.8 percent, but hospital spokesperson Judy Twitchell said this year's increase is higher now that the leadership team has another hospital to oversee, with a corresponding increase in responsibilities. El Camino Hospital bought the former Community Hospital of Los Gatos, and reopened it earlier this month as El Camino Hospital Los Gatos.
"It is the philosophy of the hospital's board to provide reasonable pay increases," Twitchell said in an e-mail. "We feel very strongly that the broader context of the hospital's overall accomplishments, performance and financial position is very important to consider when reflecting on the compensation of the executive team."
The new salaries of the executive team have increased by 4 to 6 percent. They now range from $189,000 for the vice president of professional corporate and community health services to $632,640 for the chief executive officer, Ken Graham. Most of the executives make a yearly salary of somewhere between $200,000 and $400,000.
Other hospital employees, including non-executive managers and staff covered under labor agreements, also received pay increases ranging from 4 to 6 percent, Twitchell said.
During their open session, the board of directors also established new pay ranges for executives whose jobs have changed during the year. For example, the chief medical officer and president of El Camino Hospital Los Gatos -- a position currently held by Eric Pifer -- can earn between $360,000 and $540,000. And the vice president of professional corporate and community health services can earn between $151,000 and $227,000 a year.
A special board compensation committee considers changes in job description and forces in the marketplace when deciding salary increases, Twitchell said. Each executive receives a base salary and is eligible for additional benefits and bonuses if they meet certain goals and incentives.