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June 8, 2021

Executive Compensation at Texas Health Resources

by Anne Paddock

Texas Health Resources healthcare system is one of the largest tax-exempt non-profit healthcare systems in northern Texas with more than 350 access locations including 27 hospital locations. The healthcare system consists of dozens of related organizations but are overseen by a parent organization: Texas Health Resources. This post addresses the executive compensation at the parent organization.

The Texas Health Resources healthcare system has more than 23,000 employees with Texas Health Resources (THR) employing about 5,000 of those employees. Governed by 16 board members, 15 of whom are independent, THR has 13 males (81%) and 3 (19%) females on the board.

In 2018, THR reported total revenue of $1.1 billion, most of which came from management fees (from the related organizations) and investment income/gains. Expenses totaled $700 million, with the largest expense being compensation for the 4,765 employees who received $355 million (an average compensation of $75,000). 701 employees received more than $100,000 in compensation with the 44 most highly compensated employees reported to be:

  • $2,650,639: Barclay E Berdan, CEO
  • $1,745,292: Daniel W Varga, EVP Sr and Chief Clinical Officer
  • $1,718,549: Jeffrey L Canose, EVP Sr and COO THR
  • $1,444,770: Ronald R Long, EVP and CFO
  • $1,376,583: Mark C Lester, EVP and Zone Clinical Leader
  • $1,193,682: Ricky E McWhorter, EVP and CFO
  • $1,130,229: Winjie Tang Miao, EVP and Chief Experience Officer
  • $1,024,198: James Kirk King, EVP and Zone Operations Leader
  • $1,017,158: Kenneth J Kramer, EVP and General Counsel
  • $ 998,542: James C Parobek Jr, EVP Physician Enterprise THR
  • $ 997,945: Brett S McClung, EVP and Zone Operations Leader
  • $ 964,473: Elizabeth Ransom, EVP and Zone Clinical Leader
  • $ 914,907: Harold K Berensweig, EVP and Zone Clinical Leader
  • $ 849,304: Michelle Riddle Kirby, EVP and Chief People Officer
  • $ 838,377: Joseph M Sudomir, SVP and Chief Info Officer
  • $ 829,111: Ferdinand T Velasco, SVP and Chief Health Info Officer
  • $ 771,596: Robert Douglas Jones, SVP and Chief Investment Officer
  • $ 708,159: Joan Frances Shinkus Clark, EVP and Chief Nursing Executive
  • $ 665,436: John D Mitchell, SVP Business Development
  • $ 635,632: Aaron Mark Bujnowski, SVP and Chief Strategy Officer
  • $ 633,918: David J Tesmer, SVP, Community Engagement and Advocacy
  • $ 597,995: Kevin B Holmes, SVP, Real Estate Development and Deploy
  • $ 551,420: Brian Craft, SVP, Financial Operations
  • $ 508,819: Douglas D Hawthorne, Former Key Employee (comp from a related org)
  • $ 494,215: Luis Eduardo Saldana, CMIO
  • $ 494,180: George Pearson, SVP, Medical Staff Affairs Phys Relations
  • $ 473,937: David W Jackson, Chief Accounting Officer/Asst
  • $ 468,167: David C Salsberry, Chief Revenue Officer
  • $ 464,991: Mary C Robinson, VP, Prof Practical Research and Magnet
  • $ 464,033: Jesse St. John Beck, VP Strategic Marketing
  • $ 460,211: Dana S Auzenne, VP, Healthcare Economics
  • $ 454,312: Thomas J Caldwell, VP, Sports Medicine
  • $ 445,704: Sandra G Reeves, VP Treas/Asst Chief Investment Officer
  • $ 444,384: John M Sullivan, VP, RE Operations
  • $ 436,939: Shaun Clinton, SVP, Supply Chain Management
  • $ 432,848: Randell L Ball, VP, System Pharmacy Officer
  • $ 429,535: Elizabeth May Madzik, VP and Chief Compliance Officer
  • $ 411,115: Carla S Dawson, VP, Total Health and Rewards
  • $ 401,547: Sheri M Winsper, VP, Quality and Patient Safety
  • $ 392,153: Deena A McAllister, SVP, Brand Experience
  • $ 392,058: Paul A Szablowski, SVP, Brand Experience
  • $ 375,948: Kathleen B Cox, SVP, Integrated Experience
  • $ 375,529: Stacy G Cantu, VP and Chief Gov’t Officer/Corp Secty
  • $ 332,748: Amy C Schornick, Former Key Employee

The 44 most highly compensated employees received more than $33 million in compensation. 30 of the 44 (68%) most highly compensated employees are male while 14 (32%) are female. Of the 10 most highly compensated employees, 9 are male and 1 is a female.

THR paid for first class or charter travel. Specifically, the THR “board approved first class travel for the CEO associated with business travel on behalf of the system.” In addition, “all other THR personnel follow system travel policy” (not disclosed) “which reimburses business air travel at the most economical fare reasonably available.” Again, “reasonably” is not defined. That a tax-exempt non-profit organization is paying for first class travel at all is perplexing.

THR made gross up payments and/or provided tax indemnification. Specifically, “certain imputed income is grossed up to include employment taxes paid on the listed person’s behalf.”

THR provided discretionary spending accounts. Specifically, “Each executive at the vice president level and above receives a perk allowance which is included in the taxable compensation of the employee. The allowance covers costs such as business use of their personal vehicles in lieu of reimbursement for auto mileage.

THR also paid for personal services. Specifically, THR paid for financial planning and tax preparation services for the CEO.

THR paid $516,044 to Mark Lester and $323,498 to Amy Schornick as severance.

THR made the following loans (note: original amounts are not listed; only current balance is provided) to officers and key employees for “split dollar life”:

  • $987,178: Douglas Hawthorne
  • $771,290: Ronald L Long
  • $470,253: Barclay Berdan
  • $279,040: Jeffrey L Canose
  • $194,722: George L Pearson
  • $150,799: Kenneth Kramer, Jr.
  • $130,469: Kevin B Holmes
  • $128,966: James Kirk King
  • $108,400: Brett McClung
  • $ 86,108: David J Tesmer
  • $ 62,732: Michelle R Kirby

193 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:

  • $104 million: Austin Industries, of Dallas, TX for construction
  • $ 28 million: PWC Advisory Services, of Dallas, TX for consulting
  • $ 5 million: Oxford Global Resources, of Boston, MA for consulting
  • $ 5 million: Huron Consulting Group, of Lexington, MA for consulting
  • $ 4 million: Steward Organization, Inc., of Irving, TX for printing services

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

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