El Camino Hospital's board of directors approved a pay raise for the nonprofit's top staff last week, bumping up the salary of its CEO and chief medical officer (CMO) in back-to-back unanimous decisions following a closed-session meeting.
The board voted to amend the contract of CEO Dan Woods, who was hired last year, increasing his "base" salary from $850,000 to $890,000 for the 2018-19 year, following a study that concluded the board ought to pay its top executive between $876,000 to $1.3 million in order to provide a competitive compensation package.
Along with his salary, Woods is eligible for a sizable bonus through what the hospital calls the "executive performance incentive plan," which allows the board to grant a bonus to the CEO equal to as much as 45 percent of his base salary. These bonuses are typically granted in the fall, with a decision on bonus pay for the 2017-18 year slated for the board's Oct. 10 meeting.
While board members did not comment on the decision in open session, hospital staff reports justify the salary range and adjustments to Woods' salary based on a market review that concluded that salaries for similar positions in the industry had increased by 7.8 percent, requiring the hospital's board to reconsider its executive compensation.
The board also approved a $575,000 base salary for the hospital's CMO, who oversees patient quality and safety, medical staff and physicians at the Mountain View and Los Gatos campuses. While it's still subject to board approval, CEO Dan Woods told board members that El Camino's interim CMO, Mark Adams, has accepted the offer for employment.
Adams most recently worked in a similar role at at nonprofit health system based in the Pacific Northwest called PeaceHealth, where he oversaw clinical strategies across 10 hospitals. He left the job after less than a year before taking up the interim position at El Camino in April.
Adams would replace former CMO William Faber, who worked at El Camino Hospital for less than two years before resigning and leaving for a consulting job in March.