Every member of the C-suite, including the CEO, and all presidents and vice presidents will take a 15% pay cut, according to the report. Those with director titles will have their pay reduced by 10%.
The cuts will take effect Dec. 3 for salaried prepaid or Nov. 26 for salaried postpaid or hourly, according to CBS affiliate WSAW. Leaders at the director level and above will be required to take two weeks of paid time off by Dec. 30 or get their PTO down to a remaining balance of 60 hours by Dec. 30 — whichever is less.
Marshfield is also suspending 401(k) employer match and employee retirement plans, effective Jan. 1. Employees participating in the deferred compensation plan will also not have their contributions made for 2023.
A spokesperson for Marshfield told Becker’s that the “temporary changes” are in response to many of the challenges health systems across the country are facing, including rising supply and labor costs and low reimbursement from Medicaid and Medicare.
The cuts come as Marshfield Clinic and Duluth, Minn.-based Essentia Health are in merger talks, which are expected to close in the coming months, pending regulatory approvals.
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