El Camino Hospital board hands its CEO a six-figure bonus El Camino Hospital board hands its CEO a six-figure bonus (November 11, 2005)

By Molly Tanenbaum

The El Camino Hospital board has awarded CEO Lee Domanico a $159,862 bonus, bringing his salary, bonus and car allowance for the fiscal year ending June 30, 2005 to $609,862.

The action was taken at the regular Nov. 2 board meeting. The bonus is equivalent to more than 36 percent of Domanico's $441,000 salary for the 2005 fiscal year, and about 80 percent of the total bonus amount the board could have designated for the CEO, according to a hospital spokesperson.

In the prior fiscal year, Domanico earned additional compensation, including over $100,000 of one-time relocation expenses in addition to his salary and a $174,000 bonus. His original recruitment package also included a home loan of between $800,000 and $850,000 with an interest rate that decreases each year Domanico remains in his position.

Hospital officials say Domanico's salary is just above the 50th percentile for CEO compensation at comparable hospitals around the country.

To determine the amount of Domanico's bonus, the board said it employs the help of an independent health care compensation firm and uses predetermined criteria based on various factors of hospital performance. Data from comparable hospitals in the United States is also taken into account, according to a hospital press release.

Though the board decision on a CEO's bonus percentage is an annual public decision, El Camino's release of Domanico's compensation information is a new habit, beginning after a drawn-out process initiated by the Voice and finalized in April of this year after two Public Records Act requests and a court action were filed. Prior to those actions, El Camino would not report the CEO's salary information, despite being a publicly-run organization.

As of this year, the hospital will now share the CEO's salary and bonus information, as well as the salaries of other hospital executives, with the public.

Further information regarding the compensation of El Camino Hospital's top five administrators, department heads and contractors will be released next week on Nov. 15 in annual Form 990s, the federal government's financial disclosure statements for nonprofits.

Discussion of Domanico's salary for the 2005-06 fiscal year was postponed until next month's meeting on Dec. 7.

E-mail Molly Tanenbaum at mtanenbaum@mv-voice.com

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