Memorial board upholds $1 million payout for CEO
Posted: 04.30.2012 at 9:25 PM
Updated: 05.01.2012 at 6:55 AM
Outgoing Memorial Health System CEO Dr. Larry McEvoy's severance deal totals more than $1 million.  / FOX21: File Photo
Photo

COLORADO SPRINGS, COLO. -- A special meeting was held Monday to discuss the proposed severance payout for Memorial Health System's outgoing CEO Dr. Larry McEvoy.

Memorial's board of directors gathered to discuss the deal, which includes an 18-month payout totaling more than $1 million.

The board spent more than an hour discussing the separation package.

In the end, they decided to uphold the severance payout.

"We revisited it and we reaffirmed that based upon several weeks of due diligence consulting with a variety of experts in health industry compensation, that this was the right thing to do," James Moore, the board's chair said.

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Monday's meeting followed a weekend filled with outcries from the community, Mayor Steve Bach, and several city council members, all upset with Dr. McEvoy's large severance deal.

But Moore said the board did not take their decision lightly and is committed to Memorial Health System and its future.

"This is part of a larger effort that has been going on for about a year and a half or two years, to make sure that the compensation for the entire staff is on par with the median of the industry," Moore said.

Not everyone is in agreement with the board, including one of their own who changed her original vote.

"Given the public outcry and the negative impact on morale this has had on the staff and physicians at Memorial Health System, I could not in good conscience vote for this severance package," Karen Anthony, Memorial's Chief of Staff, said.

"They are not listening to the community, who spoke extremely loudly," City Councilwoman Angela Dougan said. "They are very upset about this type of golden parachute."

The main reason Dougan said her team decided to do away with large severance and retention packages weeks ago is to rebuild citizens' trust in local government.

"This is the citizens' hospital, the employees are also very upset," Dougan said. "There has been cost-cutting and reducing, and then to turn around and give $1 million to an exiting CEO is absolutely unacceptable."

City council will hold a special session Tuesday, during which time they will try to figure out what the next step is in the process.