El Camino CEO's pay: $615,000 El Camino CEO's pay: $615,000 (March 11, 2005)

Voice suit continues to seek full compensation plan Voice suit continues to seek full compensation plan (March 11, 2005)

By Julie O'Shea

Lawyers for the Voice and El Camino Hospital will meet in court April 11 in the newspaper's continuing effort to force hospital CEO Lee Domanico to release his complete employment contract.

At a dramatic hospital board meeting last week, Domanico read a statement that said his salary and bonus was $615,000 last year, but he did not disclose the terms of his contract, which could include a house loan, retirement deal and other items, including a Los Altos Country Club membership.

Voice publisher Tom Gibboney said, "Making public a portion of Domanico's salary arrangement is a step in the right direction, but it does not fulfill the requirements of the state law, which says the public is entitled to see Domanico's complete compensation agreement," not just the details he chooses to make public.

As a result, the Voice will continue to pursue the matter in court, Gibboney said Tuesday.

Last week's surprise announcement by Domanico came just a day after hospital board President Mark O'Connor called the CEO's employment contract a "private" document that was protected from disclosure by a special tax exemption.

The Voice filed a lawsuit in Santa Clara County Superior Court on Feb. 25, demanding the hospital release Domanico's employment contract. At the March 2 board meeting, Domanico said that he made $441,000 in base salary and $174,000 in bonuses last year, making him one of the highest paid healthcare administrators in the area. In addition, Domanico receives an annual $9,000 car allowance.

Domanico made a brief statement at the El Camino board meeting last Wednesday, saying he was releasing details about his compensation package to maintain the public's confidence in the hospital as it moves forward with construction of its new multi-million-dollar facility.

"Out of respect for the community's longstanding support for this hospital and to assure that I am not violating your trust, I am prepared to voluntarily disclose my compensation," Domanico said. "To me, there's nothing more valuable than the community's trust, and it is now time that we as a hospital community refocus our energies."

El Camino officials said in a statement the following day that hospitals of similar sizes in California pay their CEOs between $379,550 to $562,968. And compensation packages for CEOs of hospital systems are "considerably higher." Domanico was reportedly hired at $350,000 a year.

El Camino's statement did not say which hospitals the board looked at when deciding on a salary for Domanico. Hospital spokesperson Judy Twitchell wouldn't comment beyond what was stated in the release.

It would appear that El Camino looked outside the area when making comparisons. Santa Clara County officials immediately disclosed that Valley Medical Center director Susan Murphy makes $203,028 a year and her boss, Bob Sillen, who manages the county's health and hospital system makes $229,324 annually. Sequoia Healthcare District CEO Stephani Scott, faxed the Voice her employment contract upon request. She makes $83,000 annually. Sequoia director Glenna Vaskelis makes $246,718 a year and has a $7,200 car allowance.

For months, El Camino officials have claimed they don't have to release Domanico's contract, which they say is protected from disclosure by the U.S. Constitution and an Internal Revenue Service tax exemption.

"The laws relative to public disclosure of personal information and the constitutional right to privacy are complex, not black and white," Domanico said during the board meeting. "Yes, El Camino hospital receives tax support from the community, and therefore, bears a responsibility to assure those tax dollars are wisely spent."

The Voice originally asked for Domanico's contract in October. The hospital delayed its response until a Dec. 10 public records act request forced officials to respond.

State law mandates that "every employment contract between a state or local agency and any public official or public employee is a public record." Under the Brown Act, California's open meeting and records law, both El Camino and the publicly-run district that manages the hospital are a local agency and therefore must turn over their top executives' salary figures.

El Camino officials claim the hospital, which has nonprofit status, is not a local agency, and therefore, the law doesn't apply here. The hospital is governed by a healthcare district, which is managed by a publicly-elected board of directors who also sit on the hospital board.

Domanico last week blamed the interest in his contract on a "few individuals who are not pleased with some decisions that we have made in the community's best interest."

O'Connor, the hospital board chair, previously said that there are "a bunch of doctors who have an ax to grind" with Domanico.
@email:E-mail Julie O'Shea at joshea@mv-voice.com

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