Not Just a For-Profit Perk: SERPs Boost Non-Profit Hospital Exec Pay

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Non-profit hospitals in New York have increased the practice of supplemental executive retirement plans as a way to retain CEOs and reward longevity at the hospital, according to a Crain's New York Business report.

SERPs are very common among for-profit Fortune 1,000 companies, as roughly 70 percent offer them, according to the report. SERPs are paid to executives when they retire from the organization, but the tax-deferred benefits are accrued over time.

Several New York hospital CEOs have received lucrative SERP payments over the past several years. Linda Brady, MD, former president and CEO of Kingsbrook Jewish Medical Center in Brooklyn, received more than $2.9 million from her SERP, putting her total compensation at more than $4.2 million in 2010, according to the report.

Herbert Pardes, MD, former president and CEO of NewYork-Presbyterian Hospital, earned a $6.8 million SERP payment in 2008 and a $339,101 SERP payment in 2010.

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