Guest opinion Guest opinion (April 29, 2005)

More questions on hospital CEO's pay

By Thomas J. Canevari

I read with interest your April 22 front page story entitled "CEO adds details of contract."

While you noted in your article that these were the "final details of his (CEO Lee Domanico's) compensation package, I certainly hope that no one is under the assumption that means that the "final" questions have been asked (or answered).

Besides these questions, there also is the issue of the stock options granted to Domanico by the private, San Mateo-based Sensitron company. It is not uncommon for companies such as Sensitron to place major customers on advisory boards.

However, the major customer in this case is El Camino Hospital, not Domanico. Any stock options granted to Domanico should be transferred to the major customer, i.e. El Camino Hospital. I call on Mr. Domanico to either transfer them voluntarily or for the El Camino Hospital board of directors to take all appropriate action to claim these stock options so that any future appreciation will benefit El Camino Hospital and the district that supports it through taxpayer funds and bond issues. I hope that no one will argue that Domanico, given his generous compensation package, needs additional compensation to sit on the Sensitron advisory board.

In regard to Mr. Domanico's compensation package, I would like to raise the issue of the home loan. In a March 30 Mercury News article, hospital board member Dr. Dominick Curatola was quoted as stating that the interest-free home loan was in the range of "about $700,000 to $750,000."

The Voice article last week said the original recruitment package "included an $850,000 home loan at 6-percent interest, which is to be forgiven gradually over 10 years." Public records indicate that El Camino Hospital holds a deed of trust on Mr. Domanico's Hillsborough home in the amount of $1 million. So what exactly is the amount of the home loan, what are the terms of the loan, and, given El Camino Hospital's apparent need for public support, where did this money come from?

The Voice article also states that "Seven doctors at the hospital participate in the (home loan) program on a five or 10-year basis." My questions are many, but it would be helpful to know how these loans compared to Domanico's.

And to demonstrate an air of openness, it would also be refreshing if the El Camino Hospital board revealed to the members of the district the dollar amount of professional fees that it paid to attorneys, public relations firms, and others in its attempt to keep Domanico's compensation package from becoming public knowledge.

Thomas J. Canevari is a CPA who lives on Sonia Way in Mountain View.

E-mail a friend a link to this story.