The incentive pay could add up to $5.4 million to executives’ salaries, but the system’s board is careful to distinguish the incentive pay from bonuses. Each manager would have to meet specific goals to receive a full or partial bonus payment, according to the report.
Parkland offered incentive pay to top managers in 2009 and 2010 — boosting executive salaries as much as 46 percent — but that practice came to a halt in 2011 when state and federal agencies found problems with Parkland’s patient safety efforts. That led to a settlement, reordering of upper management and the elimination of executive incentives.
This time around, under a plan that would start in fiscal year 2015, incentive pay would amount to 25 percent of salaries for Parkland’s executive vice presidents and senior vice presidents, and 20 percent for vice presidents, department directors, medical directors and attorneys. The hospital declined to reveal the possible incentive pay for its incoming CEO, according to the report.
Parkland would halt the program if it is unable to meet revenue projections next year.
The full hospital board is expected to approve the plan today, according to the report.
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