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September 23, 2020

Executive Compensation at Novant Health

by Anne Paddock

Novant Health is a non-profit, tax-exempt 501 (c) (3) based in Winston Salem, North Carolina. An integrated healthcare provider, Novant Health has 14 hospitals and medical centers and more than 50 physician clinics and outpatient centers in four states:  North Carolina, South Carolina, Georgia, and Virginia.

It is important to note Novant Health has dozens of related/affiliated 501 (c) (3)’s, taxable partnerships, corporations, and trusts that are listed on Schedule R of the Form 990.  This post addresses the executive compensation at only Novant Health, and not the related/affiliated organizations including the specific hospitals, physician clinics, imaging centers, etc.  However, there are employees whose responsibilities overlap with other affiliated organizations. When this is the case, compensation may also come from related organizations (and this is noted below).

Novant Health is the parent organization of the system that comprises many separate organizations that collectively employ more than 28,000 people including 1,600 physicians at more than 600 locations.  The parent organization, Novant Health employed 5,724 individuals in 2018 who were compensated $430 million, which equates to an average compensation of $75,000.  The 36 most highly compensated employees of Novant Health, the parent organization were reported to be:

  • $3,553,284:  Carl Amato, President and CEO Novant Health/ Trustee
  • $2,027,874:  Fred Hargett, EVP and CFO
  • $1,960,080:  Jeffrey Lindsay, EVP
  • $1,652,324:  John Phipps, Former EVP and Pres NHMG
  • $1,578,772:  Thomas Zweng, Former EVP and Chief Medical Officer
  • $1,515,734:  Jesse Cureton, EVP
  • $1,501,226:  Denise Mihal, EVP-CNO/Clincial Ops
  • $1,443,453:  Eric Eskioglu, SVP
  • $1,408,962:  Peter Brunstetter, Former EVP and Chief Legal Officer
  • $1,362,075:  David Garrett, Former SVP and CIO
  • $1,285,173:  Harry Smith, SVP Hospital Operations
  • $1,154,797:  Steven Limentani, SVP
  • $1,130,066:  Janet Smith-Hill, EVP
  • $  965,555:  Diana Best, Former SVP Clinical Improvement
  • $  959,896:  David Cook, SVP
  • $  907,613:  Wayne Morgan, SVP
  • $  900,904:  Kathryn Langford, SVP
  • $  880,917:  Bryan Edwards, SVP
  • $  879,095:  Thomas Jenike, SVP
  • $  868,030:  Robert Seehausen, SVP
  • $  854,686:  Jon Griffin, SVP Financial Plan and Analysis
  • $  854,668:  Thomas Woollen, Jr, SVP Corporate Health and Hallmark Care
  • $  853,379:  Chere Gregory, SVP Women’s Health Services
  • $  845,457:  Scott Myers, SVP Corporate Finance
  • $  844,859:  Angela Yochem, EVP
  • $  837,853:  Paula Vincent, Former NH SVP (from a related organization)
  • $  781,963:  Arthur J Patefield, SVP and Chief Medical Information Officer
  • $  740,254:  Ophelia Garmon-Brown, SVP
  • $  709,473:  Tanya Blackmon, EVP, Chief Diversity Officer
  • $  649,816:  David Park, SVP
  • $  636,763:  Jacqueline Daniels, Former EVP and Chief Admin Officer
  • $  576,257:  John Gardella, VP ($179,294 from a related organization)
  • $  542,176:  Pam Oliver, EVP and Pres NHMG ($453,128 from a related organization)
  • $  472,441:  Melissa Robson, Former SVP and CEO NHUVA Health System
  • $  453,697:  Betsy Walsh, Assistant Secretary
  • $  440,642:  John Morris, Assistant Secretary

The 36 most highly compensated employees received $39 million in 2018, which equates to an average compensation of $1.1 million.  23 of the 36 (64%) most highly compensated employees are male while 13 of the 36 (36%) are female. 9 of the 10 most highly compensated employees are male while 1 is a female.

Novant Health paid for first class or charter travel, and business class travel. Specifically, executives are permitted to fly business or coach class. If these fares are unavailable, then they may fly first class. However, charter travel is available to certain executives, board members, and approved business personnel.

Novant Health paid for companion travel.  Specifically, companions are allowed on certain charter flights paid for by the organization. The value is calculated and added to the taxable income of the employee.

Novant Health provided tax indemnification and gross up payments.  Executives who use funds made available through their discretionary spending account to pay premiums on cash value life insurance policies may receive additional compensation to adjust for the income tax liability associated with paying premiums for their insurance.

Novant Health provided discretionary spending accounts to certain executives which can only be used for an approved list of expenditures.

Novant Health provided housing or a housing allowance for certain executives in the recruitment and relocation packages, and is included in the executive’s income.

Severence payments were made to the following employees:

  • $445,943:  Melissa Robson
  • $401,682:  Jacqueline Daniels
  • $353,282:  David Garrett
  • $346,408:  Diana Best
  • $249,913:  Thomas Zweng
  • $127,927:  John Phipps
  • $ 87,385:  Peter Brunstetter

Non-qualified payments were made to the following employees:

  • $115,360:  Jesse Cureton
  • $ 93,150:  John Phipps
  • $ 90,643:  Thomas Zweng
  • $ 90,000:  Peter Brunstetter
  • $ 77,250:  Harry Smith
  • $ 63,750:  David Cook
  • $ 62,868:  David Garrett
  • $ 59,483:  Melissa Robson
  • $ 57,938:  Janet Smith-Hill
  • $ 57,000:  Kathryn Langford
  • $ 55,525:  Thomas Woollen
  • $ 54,075:  Ophelia Garmon-Brown
  • $ 52,500:  Chere Gregory
  • $ 52,500:  Thomas Jenike
  • $ 51,758:  Wayne Morgan
  • $ 47,895:  Amy Vance
  • $ 47,250:  Jon Griffin
  • $ 45,084:  Scott Myers
  • $ 45,000:  Donald Easterling

200 independent contractors received more than $100,000 in compensation. The five most highly compensated independent contractors were reported to be:

  • $43,855, 417:  Vannoy Construction, of Jefferson, NC for construction services
  • $ 5,118,100:  MyMove LLC, of Fort Mill, SC for marketing services
  • $ 5,103,457:  EPIC Systems Corporation, of Milwaukee, WI for IT consulting services
  • $ 2,775,976:  The Sales Factory, Inc., of Greensboro, NC for marketing services
  • $ 2,555,913:  Laboratory Corporation of America Holdings, of Burlington, NC for lab services

To read the IRS Form 990 (2018), click here.

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