Mr. Anderson’s contract includes a $50,000 relocation allowance but does not include participation in the hospital’s “at-risk” compensation plan, according to the report. The “at-risk” compensation plan, used by the previous CEO and other hospitals in the area, operates on the assumption that CEOs are paid 30 percent less than what they are worth. If the hospital reaches certain goals, including high patient and physician satisfaction, executives can earn up to 30 percent of their salary as a bonus.
Officials at Tri-City say the incentive program was not added because Mr. Anderson did not ask for it. Contracts for other Tri-City top-tier executives do not include the bonuses either, but some lower-level managers participate in the program because it is in their contracts, according to the report.
Critics in the public do not see executives putting their salary at-risk in these arrangements and see the program as simply a bonus package for high-paid managers, according to the report.
Read the North County Times’ report about the new Tri-City’s CEO contract.
