Here are six things to know.
1. Senate Majority Leader Michael McCaffrey, D-R.I., filed two bills last week on hospital executive compensation. The first bill would cap executives’ pay at 110 percent of the regional average for their peers in the Northeast, beginning Oct. 1.
2. The second bill would bar executives and board members from collecting financial reward for agreeing to merge with another company. Mr. McCaffrey confirmed this proposal is a direct response to Care New England’s ongoing negotiations.
3. “As the CNE and Partners merger talks progress, I am certainly concerned that many executives will receive a golden parachute and take precious resources out of our state healthcare system,” Mr. McCaffrey said in a statement.
4. George Vecchione, former CEO of Providence-based Lifespan, received criticism after a tax filing indicated his 2008 pay package totaled $9.5 million. After that disclosure, Mr. McCaffrey proposed similar legislation.
5. Care New England officials declined to comment on the specifics of the proposals, but previously said total compensation figures reported to the IRS can be misleading because they also include deferred earnings, such as retirement benefits.
6. Both bills were referred to the Senate Health and Human Services Committee. Hearings for the bills have yet to be scheduled.
More articles on compensation:
10 ways compensation committees can best guide executive pay and performance
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