MetroHealth terminates President and CEO for $1.9 million in self-authorized bonuses, board says

CLEVELAND, Ohio (WOIO) – The MetroHealth Board of Trustees confirmed on Nov. 21 that it has terminated the employment of President and CEO Akram Boutros, M.D., efficient instantly.

An investigation discovered Dr. Boutros approved greater than $1,900,000 in supplemental bonuses to himself between 2018-2022 with out disclosing it to the Board, MetroHealth System Chair Vanessa Whiting stated.

The Board acquired the outcomes of this investigation performed by exterior counsel into the compensation points on Saturday, and the Board voted to terminate his employment for trigger on Monday.

Whiting shared the next assertion on behalf of the MetroHealth Board of Trustees:

“We’ve taken these actions mindfully and intentionally however with unhappiness and disappointment. All of us acknowledge the great issues Dr. Boutros has accomplished for our hospital and for the neighborhood. Nevertheless, we all know of no group allowing its CEO to self-evaluate and decide their entitlement to an extra bonus and at what quantity, as Dr. Boutros has accomplished.

Dr. Boutros, by his personal admission, established particular metrics, performed self-assessments of his efficiency beneath these metrics, and approved fee to himself of greater than $1,900,000 in supplemental bonuses primarily based on these self-evaluations between 2018 and 2022. The self-evaluations and the supplemental bonus quantities paid to Dr. Boutros weren’t disclosed to the Board, despite the fact that Dr. Boutros’ employment contract makes clear that the Board units Dr. Boutros’ compensation.

Consistent with the Board of Trustees’ fiduciary duties, we launched an inner investigation, led by the Tucker Ellis legislation agency, once we realized of those points as we ready for our CEO transition, ensuing within the following actions thus far:

· The Board demanded speedy compensation of the supplemental bonus cash. On October 31, Dr. Boutros repaid $2,104,337.11, which represented the supplemental bonus cash paid with out approval for efficiency in calendar years 2017 by way of 2021, plus $124,003.86 in curiosity.

· The Board on November 9 permitted and enacted speedy CEO spending and hiring limitations that have been to stay in place by way of December 31, 2022.”

Based on Whiting, Dr. Boutros knowledgeable the Board at a public assembly that he had self-reported to the Ohio Ethics Fee on Nov. 1, which was the day after the compensation.

“We stand able to cooperate with any investigating authorities whereas we proceed our inner investigation,” stated Whiting.

The MetroHealth Board of Trustees is the one administrative physique that may approve the CEO’s compensation, together with bonuses, and set efficiency analysis metrics for the CEO, Whiting knowledgeable.

Whiting described MetroHealth’s compensation protocol as such:

“MetroHealth gives its CEO a performance-based variable compensation (PBVC) plan that makes a bonus out there primarily based on achievements reached towards annual organizational targets permitted by the Board of Trustees. The Board of Trustees didn’t delegate to Dr. Boutros the authority to self-evaluate his efficiency towards metrics by no means disclosed to the Board, after which authorize supplemental bonus funds for himself in quantities by no means disclosed to the Board.  Dr. Boutros omitted reporting his full compensation to the Board – and to a nationally acknowledged compensation advisor employed to yearly assessment and assess Dr. Boutros’ compensation.

We’ve applied, and can proceed to implement, extra processes and safeguards to make sure the integrity of the fee and bonus course of.”

Dr. Nabil Chehade has been named interim CEO and can assume the duties till the hospital transitions to its new president and CEO, Dr. Airica Steed, on Dec. 5, Whiting stated.

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