Memorial Board Won’t Budge On CEO’s $1 Million Severance
The showdown continues between Memorial Hospital and City Hall over exiting CEO Larry McEvoy’s million dollar severance package.
After the Memorial Board of Trustees took a second vote reaffirming its acceptance of the package, one City Council members said she wants to move forward with firing the board.
“(The board) is not listening to the community,” said city council woman Angela Dougan. “They community has spoken very loudly. They are very upset with this type of golden parachute.”
Dougan said she will be asking council to remove all the board members, except for the one member who voted against McEvoy’s severance package.
That woman, Memorial chief of staff Karen Anthony, said she changed her mind after the reaction from the public when the deal was announced last week.
“I would say, given the public outcry and the negative impact on morale that this has had on the staff and physicians at Memorial Health System, that I could not in good conscience vote for this separation package,” said Anthony.
McEvoy’s package includes more than $1 million in severance for 18 months pay, $70,000 for unpaid time off, $20,000 to help McEvoy find a new job, McEvoy’s company car and 18 months of health insurance.
Board chairman James Moore said that the $1.15 million payout is lower than average for a CEO at a community health system leaving under similar circumstances. McEvoy and Memorial mutually agreed that it’s time for him to move on.
“Based upon several weeks of due diligence, consulting with a variety of experts in health industry compensation, (we feel) that this was the right thing to do” said Moore. “We’ve reaffirmed that decision.”
The severance package isn’t a done deal yet, but Moore said, because of the paperwork that’s already been signed, McEvoy could potentially sue if city councilers fire the board and try to go back on the deal.
“We actually believe we have a defensible contract and we would be in default of that contract if they don’t proceed with what we’ve agreed to,” said Moore.
Dougan said she wants council to continue to look for a way out.
“I’m a pretty tough cookie, I want to keep fighting,” Dougan said. “I want to see if there’s a way we can stop this deal.”
City council will meet Tuesday to discuss what’s next.
