SMH approves increase to CEO's pay package

David Gulliver - posted 5 p.m. Monday, Dec. 21

As expected, the Sarasota Memorial Hospital board today approved a nearly 16 percent increase to the compensation package of Chief Executive Officer Gwen MacKenzie.

The board decision awarded MacKenzie a 4 percent merit raise for this year and reinstated the 4 percent merit raise she deferred last year, which total about $47,000. It also awarded a one-time bonus of $44,602 intended to bring the pay package to the midpoint for hospital chief executives nationwide.

Together, the moves raise her compensation from $579,500 to $670,981. (For a more detailed breakdown of the pay package and the board's review of MacKenzie's performance, see our previous report, here.)

After a four-minute presentation, members voted 7-1 to approve the package. "In this difficult healthcare and economic climate we can be very proud of our healthcare system and very grateful for leadership of our CEO and her entire team," board Chairman Gregory Carter said.

Dr. Thomas Kelly, usually the board's most conservative member on fiscal matters, voted against the increase. During the lengthy committee discussion on Dec. 1, Kelly said he agreed that MacKenzie had done an excellent job, but that it was difficult to defend such a large increase when most workers are seeing much less.

In the brief discussion, there was no mention of the amount of the increase or the total pay package. The bonus will be awarded via a 457(f) deferred compensation plan, commonly known as "golden handcuffs" because the executive forfeits the assets if he or she does not meet certain conditions.

In this case, the hospital board linked the bonus to MacKenzie working until the end of her contract, in May 2011.