The terms of Memorial Health System CEO Larry McEvoy show he'll collect well over the $1 million previously reported. Here's the breakdown:
McEvoy will collect more than $70,000 in unused vacation time and drive away in his hybrid vehicle.
And in case you're wondering what "outplacement" means, that $20,000 will go toward "career placement services" in McEvoy's search for another job, according to a hospital spokesman.
McEvoy is departing by mutual agreement with the board and is being paid 18 months pay as severance, although his contract only called for six months pay if he was dismissed without cause.
McEvoy was paid $550,000 until Jan. 1, when he was given a raise to $670,000 — or, in language normal people would understand, $322.12 an hour. The raise was part of "an organization-wide market adjustment," Memorial spokesman Brian Newsome says in an e-mail.
He also adds:
About 1,000 employees received wage increases last year to bring the organization, as a whole, to the 50th percentile. This rollout began with employees, then directors, and lastly execs. Larry remains below the 25th percentile even after this adjustment. His total compensation is well below the 50th percentile. The average severance for a CEO in a comparably-sized system is 24 months. Eighteen months severance is at the 25th percentile.
McEvoy's contract never included provisions for severance pay if there was a "change of control" of the hospital, whereas other executives did have such a clause, which pays six months salary, Newsome says.
In case you wonder how Memorial treats the little people at Memorial, you know, the 1 percent, here's Memorial's policy for severance at various levels:
The amount of severance pay is based upon your position in the organization and the length of service with MHS. The guidelines set by the Board of Trustees are:
Vice President and above – 26 weeks
Director & Manager – 12 wks + 1 wk/yr of service up to 12 wks for total maximum 24 wks.
Supervisors & Staff members – minimum 2 wks + 1 wk/yr of service up to 10 wks for total maximum 12 wks.
This pay will only be received if you sign and do not revoke the Waiver and Release Agreement
The news set off a explosion of protests, including this from Councilman Tim Leigh:
"McEvoy has to go so does the Board of Trustees."
City Council ceded its control of the MHS operations to the MHS Board in August 2010 by memo. [By the way, that Council included President Hente and Pro-Tem Martin.] With that action, “as long as the MHS Board operates within its annual budget” Council exercises no control over that board. The critical language is “as long as MHS acts within its budget”. McEvoy’s newly announced Exit Bonus was not part of the annual appropriation budget approved by City Council. Therefore, I’m not sure the MHS Board of Trustees can offer an Exit Bonus to McEvoy legally. And, by the way, this is not severance (it’s an “Exit Bonus” because McEvoy wasn’t fired and didn’t quit). He was settled.
I have received dozens of emails and phone calls regarding the Exit Bonus. Here are a couple of quotes from employees.
“I am very upset that none of the Memorial Employees including myself (with 17 years of service and outstanding performance evaluations) will receive a pay increase this year and yet he gets a cool million – not quite fair. I am also frustrated because all this time he has talked about “sticking it out” and not leaving; “we are a team” and there he goes.”
. . . “I’ve never seen moral so bad”. . . McEvoy got a pay raise last month over $100,000 and now is leaving plus his freaking out the door bonus. . . . He has his retirement in the bank while the rest of us assholes loose ours.”
Months ago, I asked for McEvoy and his senior leaders to be placed on administrative leave and called for an investigation into some of the real estate dealings at the hospital. Those statements caused the council President to ask for my censure at a minimum, while he contemplated my recall and I’m sure I’ll be taken out to the wood-shed again for pointing out the obvious. This is an egregious fleecing of the citizens and everyone should be outraged.