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August 13, 2019

Executive Compensation at the Cleveland Clinic

by Anne Paddock

The Cleveland Clinic was founded nearly 100 years ago as a single hospital in Ohio but has grown to include the flagship hospital on a 170 acre campus in Cleveland, 10 regional hospitals, more than 150 outpatient clinics, and 19 family health centers in Ohio.  In addition, the Cleveland Clinic includes an academic medical center in Weston, Florida, a hospital in Nevada, offices across the United States, a hospital in Abi Dubai, and a sports medicine clinic in Toronto – all part of the 273 Cleveland Clinic locations across the world.

Often recognized as one of the best health care providers and one of the top hospitals (in Cleveland) in the country and the world, the Cleveland Clinic is a non-profit organization that generated $8.9 billion in revenue, had expenses of $8.5 billion (including $467 million in depreciation), leaving about $400 million to be added to the net assets or fund balance in 2016 (which increased from $7.2 billion at the beginning of the year to $8.2 billion because the organization had about $100 million in unrealized gains on investments and $500 million in other changes in assets (see Schedule O of the Form 990).

The Cleveland Clinic Foundation Group Return (there are many non-profits affiliated or related to the “Cleveland Clinic” that comprise the whole organization) reported employing 61,119 persons who were compensated $4.7 billion (about half of revenue) which equates to an average compensation of $77,000. 6,270 employees received more than $100,000 in compensation with the 30 most highly compensated employees listed below:

  • $6,171,852:  Delos M Cosgrove, President, CEO, Trustee
  • $2,576,985:  Brenda Lewis, Physician (2016 Retiree)
  • $2,394,860:  James Church, Physician (2016 Retiree)
  • $2,177,855:  Tomislav Mihaljevic, Chief Executive Officer CCAD
  • $2,069,898:  Whitlow Patrick, Physician (2016 Retiree)
  • $1,953,914:  John Costin, Institute Chairman Cleveland Clinic Foundation (CCF)
  • $1,743,031:  Peter Schoenwald, Physician (2016 Retiree)
  • $1,596,012:  Steven C Glass, Trustee, CFO and Treasurer CCF
  • $1,487,106:  William Peacock, Trustee, Chief of OPS CCF
  • $1,473,840:  David Rowan, Secretary and Chief Legal Officer CCF
  • $1,410,500:  Daniel Martin, Inst Chair Cole Eye, Director CCF
  • $1,390,497:  Brian Donley, Chief of Staff and Director CCF
  • $1,265,664:  A Marc Harrison, Chief of International Business Development
  • $1,144,013:  Bruce Lytle, Former Key Employee (Retired)
  • $1,029,229:  Wael Barsoum, Trustee and Hospital President CCFHS
  • $  951,890:  Charlie Miller, Chief Medical Officer CCMSI
  • $  950,923:  John Fung, Chairman DDI
  • $  928,043:  Machado Andre, Inst Chair – Neuro, Director KMA
  • $  852,343:  Brad Borden, Physician, Trustee CCCHR
  • $  848,888:  Paul Rosenthal, Trustee and Chief of Staff CCFHS
  • $  835,284:  Serpil Erzurum, Director, Chair of Lerner Institute
  • $  816,149:  J Stephen Jones, President Regional Hospital and FHCS
  • $  803,059:  Giovanni Piedimonte, President and Trustee CCCHR
  • $  768,248:  Richard Parker, Trustee and President MM
  • $  763,301:  Linda McHugh, Asst Secretary CCF
  • $  752,372:  Armondo Chardiet, Chair Philanthropy Institute, Director KMA
  • $  748,218:  Michael Harrington, Director, CAO and Controller CCF
  • $  747,750:  John Pederson, Physician, Director AGP
  • $  721,154:  Janice Murphy, COO, Director Akron
  • $  694,677:  Thomas Stover, Director and CEO AGHS

27 of the 30 (90%) of the most highly compensated employees are male while 3 or 10% are female.

The Form 990 also reports the organization paid for first class or charter travel, provided a housing allowance or a residence for personal use, and participated in tax indemnification and gross up payments. No other specific detail is provided other than thee expenses were paid in accordance with written policies.

To read the IRS Form 990 (2016), click here.

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