UPMC chief's bonus, salary down
UPMC CEO Jeffrey Romoff's base salary and bonus were cut in 2011, but his overall compensation was higher than the previous year, according to the nonprofit hospital network's latest tax returns.
Romoff, 67, made $4.3 million in base salary, bonus and other compensation in 2011, a 22 percent drop from $5.5 million the previous year.
The lower cash payments to Romoff may come as a surprise given UPMC's notable financial success in recent years.
Asked if UPMC's board of directors was unhappy with Romoff's performance, spokeswoman Susan Manko said, “No. Part of his bonus was deferred.”
Romoff's bonus was $2.9 million, down from $3.7 million the year before. His salary of $958,992 also was lower — down from $959,210.
Romoff's total compensation, which includes the value of retirement accounts and other benefits, was $6.1 million, a 3 percent increase from the previous year's total of $5.9 million.
The federal government requires tax-exempt organizations such as UPMC to file public tax returns. The filings disclosed on Thursday cover the financial year that ran from July 1, 2011, to June 30, 2012. But base salary, bonus and other compensation figures for top-paid employees are for the 2011 calendar year. Retirement payments, deferred compensation and other benefits are reported for the financial year.
UPMC's financial performance for the 2012 financial year was strong. The system posted revenue of $9.6 billion, with income from operations of $351.3 million and net income of $220.7 million.
The salaries for Romoff, who leads the dominant health system and largest employer in Western Pennsylvania, and other UPMC executives have been criticized recently by Pittsburgh Mayor Luke Ravenstahl and others. Ravenstahl mentioned the salaries when he announced a lawsuit the city filed in March challenging UPMC's tax-exempt status.
In addition to Romoff, 21 UPMC executives were paid more than $1 million in 2011, tax returns show.
UPMC competitor West Penn Allegheny Health System on Tuesday released its tax returns showing that former CEO Christopher Olivia received total compensation of $6 million in 2011, a figure that included retirement and severance payments. Olivia, who stepped down from the financially troubled system in June 2011, was one of eight executives to receive more than $1 million.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or firstname.lastname@example.org.