This week, Salinas (Calif.) Valley Memorial Healthcare System named Matt Gerlach as its new president and CEO, and because of controversy that previously surrounded the health system, Mr. Gerlach's starting salary will be lower than his predecessor's.
SVMHS will pay Mr. Gerlach an annual salary of $450,000, which it said was in between the 25th and 75th percentiles of its peer group. In addition, his health and pension benefits will mirror those of other non-affiliated SVMHS employees.
The previous CEO of SVMHS, Sam Downing, drew a heap of criticism after he left the system in 2011. He had a base salary of $668,000, which was the third-highest in the state among public employees at the time, and he also collected a $4.9 million deferred retirement package on top of a $115,000-per-year pension.
Mr. Downing's compensation plan was the not the only incident that irked the public. District community members criticized Lowell Johnson, former interim president and CEO of SVMHS, after it was discovered he was paying his daughter with district funds to get him to and from the airport every week.
SVMHS will pay Mr. Gerlach an annual salary of $450,000, which it said was in between the 25th and 75th percentiles of its peer group. In addition, his health and pension benefits will mirror those of other non-affiliated SVMHS employees.
The previous CEO of SVMHS, Sam Downing, drew a heap of criticism after he left the system in 2011. He had a base salary of $668,000, which was the third-highest in the state among public employees at the time, and he also collected a $4.9 million deferred retirement package on top of a $115,000-per-year pension.
Mr. Downing's compensation plan was the not the only incident that irked the public. District community members criticized Lowell Johnson, former interim president and CEO of SVMHS, after it was discovered he was paying his daughter with district funds to get him to and from the airport every week.
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