Lifespan’s CEO received nine million dollars in 2009
Lifespan CEO George Vecchione has already been in the spotlight for his generous compensation package.
In 2009, Steven Styco’s article in the Providence Phoenix revealed his three million dollars in salary and benefits were the most of any health care executive in New England.
That figure has just tripled. According to tax forms obtained by The Pulse, Vecchione received $9,310,652 dollars in 2009.
Lifespan executives weren’t immediately available to explain the increase. Although I’ve heard that the figure includes funds related to his retirement package.
I’ll update this article when I hear from them.
UPDATE- Lifespan says the numbers on the tax form are deceiving because they include Vecchione’s retirement compensation. The CEO has accrued 3 percent of his base pay for the past ten years as a portion of his retirement package. Somewhere in his contract it says he has to receive that pay out after 10 years.
That accounts for the extra 8 million dollars this year. Lifespan says it is a one time payment that doesn’t represent his base pay. To see the break down, you can check out this tax form.
Here’s Lifespan’s offical statement-
Statement from Lifespan
The compensation for Lifespan’s executive leadership is reviewed and established annually by our independent Board of Trustees in consultation with outside experts on executive compensation. Among the factors they consider are roles and responsibilities, ability to meet or exceed performance goals and average salaries for executives in similar positions.
We are confident that the compensation for our leadership fairly reflects their role in developing and implementing strategies to maintain financial stability in challenging times, their focus on providing quality care to the communities we serve, and thoughtful leadership in preparing the organization and its member hospitals for the future.
The recent IRS 990 filing provides the details for the compensation of our executive leadership team for Fiscal Year 2008. Since this form has changed from past years, it is difficult to compare year to year salary and benefits accurately. To clarify, a significant portion of Mr. Vecchione’s compensation, associated with his retirement plan, had been reported annually between 1998 and 2008 when it was accrued. It is being reported again this year because his contract required him to take a payout at his 10-year mark with Lifespan.