Compensation Issues

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Sound Shore Health System Gave CEO, CFO Payments Before Bankruptcy Filing

Court documents have showed that several executives at Sound Shore Health System in New Rochelle, N.Y., received compensation checks right before the organization filed for Chapter 11 bankruptcy, according to an investigative report from The Journal News.

The bankruptcy court records revealed John Spicer, Sound Shore president and CEO, received his regular biweekly salary of $32,644 on May 2 and May 16, followed by two payments totaling $82,815 on May 24 — five days before the hospital filed for bankruptcy, according to the report. Sound Shore's interim CFO and counsel also received biweekly salary payments and additional May 24 payments.

However, the court documents did not indicate why the executives received the extra payments on May 24. A hospital spokesperson countered the reports, telling The Journal News: "No one received any last-minute payments before the bankruptcy."

The same day Sound Shore filed for bankruptcy, Montefiore Medical Center in New York City announced it would purchase Sound Shore's assets for $54 million. Montefiore officials have since upped their purchase offer to almost $59 million.

More Articles on Hospital Executive Compensation:
Salaries of Maine Hospital Executives Draw Ire Amid Layoffs
27 Statistics on Hospital CEO Salary Adjustments and SERPs
Pay for 18 Connecticut Hospital Execs Exceeds $1M in 2012

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