Elsewhere online
July 16, 2014

Big N.Y. Hospital Paid Millions to Ex-CEO After Retirement

The former chief executive of NewYork-Presbyterian Hospital earned $5.6-million from the medical center the year after he stepped down and continues to draw a check from a board post, writes The New York Times.

Herbert Pardes, who retired as the nonprofit hospital network's CEO in 2011, received $1-million in salary, a $1.8-million bonus, and more than $2-million in deferred wages as part of his pay package the following year. He now serves as executive vice chairman of NewYork-Presbyterian's board, a post compensation experts say is common at corporations but rare in the nonprofit world.

Frank A. Bennack Jr., the hospital's chairman, said Dr. Pardes was kept on in the board position for "urgent fundraising activities and a range of other institutional needs with which he could assist his superb successor." A hospital spokesman said the former CEO focuses on fundraising and development, policy efforts, and advocacy for academic medicine.

Senator Charles E. Grassley, a frequent critic of nonprofits' spending practices, said Dr. Pardes's pay showed how "major nonprofit hospitals often are indistinguishable from for-profit hospitals in their operations."