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., effective immediately.
An investigation found Dr. Boutros authorized more than $1,900,000 in supplemental bonuses to himself between 2018-2022 without disclosing it to the Board, MetroHealth System Chair Vanessa Whiting said.
The Board received the results of this investigation conducted by outside counsel into the compensation issues on Saturday, and the Board voted to terminate his employment for cause on Monday.
Whiting shared the following statement on behalf of the MetroHealth Board of Trustees:
“We have taken these actions mindfully and deliberately but with sadness and disappointment. We all recognize the wonderful things Dr. Boutros has done for our hospital and for the community. However, we know of no organization permitting its CEO to self-evaluate and determine their entitlement to an additional bonus and at what amount, as Dr. Boutros has done.
Dr. Boutros, by his own admission, established specific metrics, conducted self-assessments of his performance under those metrics, and authorized payment to himself of more than $1,900,000 in supplemental bonuses based on those self-evaluations between 2018 and 2022. The self-evaluations and the supplemental bonus amounts paid to Dr. Boutros were not disclosed to the Board, even though Dr. Boutros’ employment contract makes clear that the Board sets Dr. Boutros’ compensation.
In keeping with the Board of Trustees’ fiduciary duties, we launched an internal investigation, led by the Tucker Ellis law firm, when we learned of these issues as we prepared for our CEO transition, resulting in the following actions to date:
· The Board demanded immediate repayment of the supplemental bonus money. On October 31, Dr. Boutros repaid $2,104,337.11, which represented the supplemental bonus money paid without approval for performance in calendar years 2017 through 2021, plus $124,003.86 in interest.
· The Board on November 9 approved and enacted immediate CEO spending and hiring limitations that were to remain in place through December 31, 2022.”
According to Whiting, Dr. Boutros informed the Board at a public meeting that he had self-reported to the Ohio Ethics Commission on Nov. 1, which was the day after the repayment.
“We stand ready to cooperate with any investigating authorities while we continue our internal investigation,” said Whiting.
The MetroHealth Board of Trustees is the only administrative body that can approve the CEO’s compensation, including bonuses, and set performance evaluation metrics for the CEO, Whiting informed.
Whiting described MetroHealth’s compensation protocol as such:
“MetroHealth offers its CEO a performance-based variable compensation (PBVC) plan that makes a bonus available based on achievements reached against annual organizational goals approved by the Board of Trustees. The Board of Trustees did not delegate to Dr. Boutros the authority to self-evaluate his performance against metrics never disclosed to the Board, and then authorize supplemental bonus payments for himself in amounts never disclosed to the Board. Dr. Boutros omitted reporting his full compensation to the Board – and to a nationally recognized compensation consultant hired to annually review and assess Dr. Boutros’ compensation.
We have implemented, and will continue to implement, additional processes and safeguards to ensure the integrity of the payment and bonus process.”
Dr. Nabil Chehade has been named interim CEO and will assume the duties until the hospital transitions to its new president and CEO, Dr. Airica Steed, on Dec. 5, Whiting said.
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