EDMONDS – Dr. John Todd, who was named acting chief executive of Stevens Hospital in January, will be paid $300,000 a year and receive an additional $50,000 if he stays until June 2006.
Todd’s salary was spelled out in a resolution unanimously approved Wednesday by the three-member board of the taxpayer-supported Edmonds hospital.
“‘It’s a bargain’ is the first thing that comes to mind, compared to CEO salaries around the state,” said Fred Langer, board president.
“The tone of the organization has improved from top to bottom. The reception I get from the community is incredible.”
In June, an advisory committee recommended that Todd take over as chief executive of the hospital for two years, but left the salary issue for the board to decide.
Unlike the hospital’s contract with its former chief executive, Steve McCary, the salary agreement with Todd does not give him any extra money if he leaves the organization before 2006.
“There’s no hidden anything, anywhere,” Langer said. “If he leaves early, he’s not entitled to that $50,000.”
The agreement also specifies that Todd continue as medical director, a post he held before being named acting chief executive.
Because Todd carries out the duties of the medical director, too, the hospital is saving significant money compared to what it was previously paying when McCary and Todd were both on the payroll, Langer said.
Todd’s annual salary as medical director was $234,120, said John Lowy, the hospital’s director of human relations.
McCary’s total salary in 2003 was $546,169, Lowy said. That included a bonus for meeting goals set by the board.
McCary was fired during a board meeting in January that was not announced to the public ahead of time. His contract let him walk way with a severance package that will pay him $1.18 million over the next seven years. The hospital district is also paying him $921,049 in deferred retirement compensation.
The hospital posted financial losses for a number of years during McCary’s 14-year tenure. Last year, the hospital, its clinics and related businesses had net losses of $2.5 million.
In other action during Wednesday’s meeting, Todd said he recently met with area fire chiefs.
In meetings earlier this year, some members of the public said that there were long-standing issues between some emergency medical workers and the hospital’s emergency room.
“They commented on the improved environment with the emergency department,” Todd said of his recent conversations with the fire chiefs.
And in an update to the hospital board, financial consultants hired to help the hospital get on firmer financial footing said they’ve taken steps that will help the organization save $1.2 million over a 12-month period. These include reducing the number of employment agency staff such as nurses who are temporarily working at the hospital.
Reporter Sharon Salyer: 425-339-3486 or salyer@heraldnet.com.
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