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February 2, 2021

1

Executive Compensation at UPMC (Pittsburgh, PA)

by Anne Paddock

UPMC Group represents the operations of 52 tax-exempt entities including 15 hospitals, 12 physician groups, 3 skilled nursing facilities, and 22 other ancillary and support entities within the UPMC (University of Pittsburgh Medical Center) integrated healthcare delivery system.

Key financial details about UPMC Group for the year ending June 30, 2018 are summarized as follows:

  • Total revenue was $13.5 billion, of which $7.6 billion was net patient revenue and $5.3 billion was “other program service revenue.”
  • Expenses totaled $12.9 billon (not including $400 million in depreciation), with the 4 largest expenses being compensation ($5.6 billion), medical expenses ($3.7 billion), other expenses ($1.3 billion), and drugs and supplies ($1.2 billion).
  • UPMC Group had $5.7 billion in net assets at year-end.

62,093 employees received total compensation of $5.6 billion, which equates to an average compensation of $90,000.  7,958 employees received more than $100,000 in compensation with the 176 most highly compensated employees reported to be:

  • $8,541,652:  Jeffrey A Romoff, President and CEO
  • $3,521,014:  Diane Holder, EVP, Pres UPMC Health Plan*
  • $3,342,535:  David Farner, EVP and Chief of Staff
  • $3,157,283:  Steven D Shapiro, EVP and Chief Med and Science Officer
  • $2,831,790:  Stanley Marks, Board Chair*
  • $2,496,071:  James D Luketich, Board Member and Dept Chair
  • $2,351,616:  Robert A DeMichiei, EVP and CFO
  • $2,293,691:  Gregory K Peaslee, EVP and Chief Admin Officer
  • $2,265,204:  Talbot Heppenstall, Jr., EVP and Treasurer
  • $2,217,356:  Thomas McGough, EVP and Chief Legal Officer
  • $2,207,006:  Leslie C Davis, SVP and COO HSD
  • $2,168,987:  Charles Bogosta, EVP
  • $2,141,840:  Victor Morell, Board Member
  • $2,055,719:  Christopher Schmidt, Orthopedic Surgeon
  • $2,003,956:  Ajaipal Kang, Board Member
  • $1,884,771:  Ghassan Bejjnai, Neurosurgeon
  • $1,795,382:  John Lee, Orthopedic Surgeon
  • $1,657,588:  Thomas Gleason, Cardiothoracic Surgeon
  • $1,598,299:  James Bradley: Orthopedic Surgeon
  • $1,581,672:  Robert M Friedlander, Board Member and Dept Chair
  • $1,565,914:  Freddie H Fu, Board Member and Dept Chair
  • $1,481,028:  Arthur S Levine, Board Member*
  • $1,451,943:  John Innocenti, President
  • $1,440,488:  Edward T Karlovich, CFO Academic Comm Hospitals
  • $1,400,867:  Scott Lammie, Board Member, Treasurer and CFO
  • $1,312,925:  Philip Police, Board Member
  • $1,279,169:  Peter Rubin, Board Member and Dept Chair
  • $1,260,178:  Marshall Webster, SVP
  • $1,158,447:  Joel P Nelson, Board Member and Dept Chair
  • $1,146,327:  David T Martin, President and Board Member
  • $1,083,392:  Joon Sup  Lee, Board Member and Dept Chair
  • $1,043,588:  Christopher A Gessner, President
  • $1,029,854:  Mark Sevco, President
  • $1,016,728:  John Lovelace, Board Member and President*
  • $  979,025:  Francis Solano, Board Member and President
  • $  977,245:  Gerald Murray, President
  • $  936,320:  Timothy Robert Billiar, Board Secretary and Dept Chair
  • $  918,242:  Rajesh Sehgal, Board Member*
  • $  909,342:  Jonas Johnson, Board Member and Treasurer
  • $  899,939:  Mark Nordenberg, Board Member*
  • $  868,098:  Sandra McAnallen, Board Member*
  • $  837,440:  Deborah S Brodine, Board Member and President
  • $  835,688:  Daniel Kelly Agnew, Board Member
  • $  825,508:  Tamra Minnier, Board Member
  • $  808,030:  Robert Blosat, Board Chair and President
  • $  801,302:  Stephen Nimmo, Former Officer
  • $  772,781:  David Gibbons, President
  • $  758,437:  Bryan Donohue, Board Member and President
  • $  752,893:  Patrick Gallagher, Board Member *
  • $  751,425:  Ann Evans, CFO
  • $  735,276:  Michael Grace, Board Member and President
  • $  719,461:  James Gavin, President
  • $  714,035:  Richard Wadas, Board Member and President
  • $  712,282:  James Schuster, Board Member
  • $  702,597:  Gordon Gebbens, Board Member and Treasurer
  • $  701,904:  Stephen Perkins, Board Member *
  • $  695,421:  Eric Cartwright, VP
  • $  695,226:  Donald M Yealy, Board Member and VP
  • $  692,503:  Robert Ferris, Board Member
  • $  672,321:  David A Lewis, Board Member and Dept Chair
  • $  665,159:  Sheryl Kashuba, Board Member, Secretary and CLO
  • $  651,515:  Derek Angus, Board Member and Dept Chair
  • $  640,217:  James Fiorenzo, Former President*
  • $  631,567:  Donald Owrey, President
  • $  628,796:  Jose Sahel, Board Member and Dept Chair
  • $  627,311:  Joel S Greenberger, Board Member and Dept Chair
  • $  626,936:  Eileen Simmons, CFO
  • $  615,581:  Jules Sumkin, Board Member and Dept Chair
  • $  607,701:  Joseph Losee, Board Member
  • $  603,758:  Sandy Rader, Board Member
  • $  597,296:  Sergio Giancola, Board Member
  • $  590,763:  Christopher Samuel, Board Member
  • $  589,806:  George K Michalopoulos, Board Member and Dept Chair
  • $  575,736:  Tulio Estrada, Board Member
  • $  550,805:  John Ward, Board Member
  • $  555,301:  Ronald J McConnell, VP
  • $  548,996:  Louis Alarcon, Board Member and Medical Director
  • $  543,658:  William Barrington, Board Member
  • $  527,369:  James W Boyle, Board Member
  • $  518,543:  Louis D Falo, Jr., Board Member and Dept Chair
  • $  517,690:  AJ Pinevich, Board Secretary
  • $  505,325:  David Patton, President
  • $  500,000:  Kotayya Kondaveeti, Board Member
  • $  492,791:  Robert P Edwards, Board Member
  • $  489,505:  Philip M Cacchione, Board Chair and President
  • $  485,019:  David Kruszewski, Board Chair
  • $  484,679:  Lawrence Wechsler, Board Member and Dept Chair
  • $  482,895:  Trent Emerick, Board Member
  • $  472,346:  Edward Mariazell, Board Member
  • $  471,076:  Stephen Danch, Treasurer and CFO
  • $  454,134:  Mbembo Bongutu, Board Member
  • $  450,807:  Terene Dermody, Board Member and Dept Chair
  • $  448,673:  Mark Gladwin, Board Member and Dept Chair
  • $  445,454: David Russell, Board Member
  • $  443,507:  Randall Boggess, Board Member
  • $  437,111:  Daniel R Sullivan, Board Vice Chair
  • $  425,346:  Michael Schlechter, Bord Member
  • $  423,395:  Francis Foti, Board Member
  • $  417,470:  John McKeating, Board Member
  • $  412,838:  Alexander J Ciocca, Board Secretary
  • $  401,822:  Louis A Baverso, Board Member and Treasurer
  • $  401,625:  Hyagnv Simhan, Board Member
  • $  391,902:  Brian Durniok, Board Member and President
  • $  390,550:  Susan Rafael, Board Member
  • $  388,084:  John Kuzmishin, Former Treasurer, Secretary, and CFO
  • $  384,904:  Jose Caballe, Former Director
  • $  383,433:  Charissa Pacella, Former Board Member
  • $  378,158:  Howard Gutstein, Board Member and Dept Chair
  • $  376,654:  Jerome Shaffer, Board Member, Treasurer, and CFO
  • $  370,146:  Lynn Rupp, President
  • $  369,445:  Nathan Moore, Board Member
  • $  368,532:  David McCandless, Board Member
  • $  366,016:  Kubda Barnhardt, Board Member
  • $  362,328:  Matthew Massaro, Board Member
  • $  360,791:  Donald Beckstead, Board Member
  • $  360,709:  Douglas Garretson, President
  • $  355,189:  Timothy Horsky, Board Member
  • $  352,948:  Joseph Antonowicz, Board Member
  • $  352,325:  Nicole Debolt, Board Member
  • $  340,766:  Mohammad Idrees, Former Board Member
  • $  338,676:  David Baer, Board Member
  • $  330,497:  Kenneth Plowey, Board Member
  • $  329,690:  Roy Sarton, Former Director
  • $  319,676:  Mark Bondi, President*
  • $  310,350:  James Donnelly, Board Member
  • $  308,715: Marshall Stafford, Board Member
  • $  302,970:  Robert Devin, Board Secretary
  • $  302,009:  Mark O’Hern, Board Secretary
  • $  298,861:  Richard Bondi, Treasurer and CFO
  • $  295,516:  Nicholas Barcellona, Treasurer and CFO
  • $  288,122:  Charles Hagety, Board Vice Chair
  • $  287,948:  James Giammarco, CFO
  • $  287,946:  Nanci Case, Board Member
  • $  287,142:  David Bobrzynski, Board Treasurer
  • $  281,668:  Daniel Grant, Board Member *
  • $  280,817:  Richard Beigi, Board Member
  • $  278,050:  Amy Swindell, Board Member
  • $  276,281:  Carey Andrew-Jaja, Board Member
  • $  274,841:  Bryant Wesley, Secretary
  • $  273,160:  Gwen Sowa, Board Member and Dept Chair
  • $  271,139:  Philip Freeman, Former President
  • $  269,155: Paula Thomas, President
  • $  267,157:  Margaret Bell, Treasurer/Secretary
  • $  257,389:  Donald Goodman, Treasurer and CFO
  • $  255,395:  Timothy Balcony, President
  • $  254,946:  Terrence Lewis, Secretary
  • $  252,893:  J Gary Rhodes, President
  • $  249,394:  Michele P Jegasothy, Secretary
  • $  245,730:  Mario Wilfong, Treasurer and CFO
  • $  245,380:  Tamra Minton, Board Secretary
  • $  239,525:  Dawndra Jones, Board Member
  • $  236,999:  Brian Fritz, CFO
  • $  235,605:  Christopher Stockhausen, Former Treasurer and CFO
  • $  228,341:  Kenneth Nash, Board Member
  • $  222,451: Jared Weiter, CFO
  • $  218,564:  Dan Swayze, Board Secretary
  • $  214,536:  Noreen Fredrick, Board Member
  • $  213,677:  Robert Griffin, CFO and Treasurer
  • $  212,676:  Susan Martin, Board Member
  • $  209,100:  Clifton Callaway, Board Member
  • $  202,293:  Brad Diner, CFO and Treasurer
  • $  199,073:  Andrew Nowalk, Former Director
  • $  196,830:  Laurene Timmons, CFO
  • $  191,825:  William A Nigro, Board Member, Treasurer, and CFO
  • $  190,935:  Jeannette South-Paul, Board Member and Dept Chair
  • $  190,910:  Mark Zachana, Board Vice Chair
  • $  189,680:  Manish Supra, Former Board Member
  • $  189,429:  Cindy Wilson Board Member
  • $  184,968:  Diana Woy, Board Member*
  • $  171,753:  Thomas Newman, CFO
  • $  169,831:  Russell Meyers, Board Treasurer
  • $  169,182:  Merie Taylor, Former Board Secretary
  • $  164,733:  David Nace, Former Director
  • $  164,692:  Mark Chuff, President
  • $  161,289:  Timothy Gaul, Former Director
  • $  144,582:  Eleanor Medved, Former Director*

A “*” indicates part or all of compensation was paid by a related organization.

143 of the 176 (81%) most highly compensated employees are male while 33 of the 176 (19%) are female.

UPMC Group paid for first class or charter travel, health or social club dues or initiation fees, and provided gross up payments and tax indemnification.  The reason stated on the Form 990 is that UPMC may provide these benefits when they are necessary to achieve UPMC’s charitable mission objectives, which is interesting because I don’t ever recall an organization saying their executives had to fly first class or have health or social club dues paid for to achieve a charitable mission objective.

To read about “transactions with interested persons,”  see the Form 990, Schedule L, Part V (link on next line).

To read the IRS Form 990 (for the year ending June 30, 2018), click here.

1 Comment Post a comment
  1. Well said, Anne. No one needs a health club membership to do their work, least of all the wealthy who sit at mahogany desks.

    I’ve served on 4 boards; 3 of them for nonprofits. I have never gotten a salary. It’s shameful how these men profit from their “service” to a nonprofit.

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