http://mv-voice.com/print/story/print/2007/10/26/el-camino-execs-see-big-salary-increases


Mountain View Voice

News - October 26, 2007

El Camino execs see big salary increases

Pay ramped up to equal compensation at other hospitals

by Susan Hong

[CLARIFICATION: This story as it appeared in the Oct. 26 print edition provided some misleading information on executive compensation at the hospital, both in the text and the accompanying chart. In the story, the Voice mixed base pay for fiscal years 2006-07 and 2007-08 with bonuses for the prior years. As a result, the percent salary increases in the accompanying chart were in error. For example, base pay increases for top hospital executives averaged about 6 percent for fiscal year 2007-08. But the 23 percent (of base pay) incentives or bonuses paid were based on the hospital's above-average performance the prior year, 2006-07. Bonuses vary from year to year based on the goals achieved by the hospital and individual executives. The story also underreported CEO Ken Graham's benefits package. Graham's benefits package equals 42 percent of his base salary, while all other executives' are 29 percent of their base salaries. --Editor] Top executives at El Camino Hospital, including CEO Ken Graham, received substantial salary increases ranging from 9 to 42 percent this year, a move board members said was taken in order to match compensation at similar hospitals around the country.

According to Wes Alles, a board member and chairman of the compensation committee, the increases, which average 18 percent (not counting Graham's), cover all members of the executive team. Graham's salary and incentive for the fiscal year ending June 30, 2008 is $735,765, but tops $903,000 when a benefit package based on 29 percent of his base pay is added.

Hospital officials say the benefit package for each member of the executive team could be compared to a cash fund, from which the costs of various health and retirement benefits are deducted. If money remains after the deductions are taken, it can be invested in a capital accumulation account, they said.

Cecile Currier, vice president of professional, corporate and community health services, received the biggest increase, a 42 percent jump to $254,400 this year.

The jump in compensation this year came as a result of comparison studies done by two consulting firms, Clark Consulting based in Minneapolis and Sullivan, Cotter & Associates with offices in San Francisco, Alles said.

The consultants compared job descriptions, responsibilities and cost of living for executives working at 70 hospitals in California and around the country. Salary ranges starting from the 25th percentile on the lower end up to the 75th percentile were then recommended, Alles said.

Executive compensation guidelines at El Camino Hospital require the board to pay executives around the 50th percentile plus 10 percent, Alles said.

"We don't want any of our executives to be outside of that range of the comparison, the midpoint comparison plus the 10 percent," he said. This range gives the hospital a balance between attracting and retaining talented people and rewarding them for good work, Alles said.

"This is an expensive place to live," he added, but executives want to work at El Camino Hospital because of its reputation and because of a collegial working environment.

"You're working in an environment that has quality people at all levels and the work dynamic is one of trust. It's a collegial environment and you don't find that everywhere," he said.

E-mail Susan Hong at shong@mv-voice.com

Comments

Posted by Unemployed, a resident of another community
on Dec 16, 2007 at 9:46 am

According to salary reports, Graham and his staff make more money than world leaders of whole countries. How do I get a job there? I am available.

Bolivia President Evo Morales $21,600
Great Britain Prime Minister Gordon Brown $375,222
France President Nicolas Sarkozy $346,000
Germany Chancellor Angela Merkel $318,000
Ireland Prime Minister Bertie Ahern $434,000
Japan Prime Minister Shinzo Abe $248,500
Russia President Vladimir Putin $81,000
Singapore Premier Lee Hsien Loong $2.05 million
United States President George W. Bush $400,000
United States Vice President Dick Cheney $208,575