Executive Compensation at New York and Presbyterian Hospital (2019)

New York and Presbyterian Hospital (NYPH) – a non-profit, tax-exempt 501 (c) (3) hospital – is often referred to as New York-Presbyterian Hospital.  But, the NYPH actually consists of 7 hospitals/medical centers.  A teaching hospital in New York City, NYPH is affiliated with two medical schools (Columbia and Weill Cornell) and is part of the New York-Presbyterian healthcare network that includes three other divisions:

• New York-Presbyterian Regional Hospital Network: 3 hospitals
• New York-Presbyterian Physician Services:  the medical groups
• New York-Presbyterian Community and Population Health:  ambulatory care and community health

The entire organization consists of dozens of non-profit, tax-exempt organizations. This post addresses the executive compensation at the NYPH.  Key information about NYPH, as disclosed on the Form 990 (2019) submitted to the IRS, includes the following:

Total revenue was $6.7 billion in 2019 (compared to $6.3 billion in 2018 and $5.7 billion in 2017) most  of which ($6.4 billion) came from patient care.

Total expenses were $6.4 billion (including $398 million in depreciation). The four largest expenses (excluding depreciation) were compensation ($3.8 billion), medical supplies ($1.1 billion), office-related expenses ($603 million), and fees for services ($298 million).

The difference between total revenue and total expenses is $312 million (compared to $354 million in 2018), which was added to the general fund.  At the beginning of 2019, the general fund balance was $7.4 billion.  After adding the excess revenue ($312 million), unrealized gains on investments ($37 million), and other changes in net assets – primarily changes in the fair market value of alternative investments ($529 million), the general fund net balance was $8.3 billion at year-end:  an increase of nearly $1 billion in one year.

32,205 (compared to 33,176 in 2018 and 28,938 employees in 2017) received $3.8 billion in compensation, which equates to an average compensation of $118,000. However, only 7,886 received more than $100,000 in compensation.  The 33 most highly compensated employees were:

• $12,414,295:  Steven J Corwin, President and CEO, Trustee
• $ 5,286,445:  Laura Forese, EVP and COO
• $ 2,646,998:  Maxine Frank, EVP, CLO, and General Counsel (thru 3/2019)
• $ 2,180,177:  Dov N Schwartzben, SVP, Finance
• $ 2,178,148:  William Lee, SVP, Chief Investment Officer
• $ 2,170,223:  Herbert Pardes, Executive Vice Chairman
• $ 1,950,703:  Wilhelmina Manzano, SVP, Chief Nursing Officer
• $ 1,920,350:  Mary Beth Claus, SVP and CLO (effective 3/2019)
• $ 1,765,006:  Phyllis R Lantos, Sr Advisor, Pres and CEO
• $ 1,734,190:  Michael P Breslin, Group SVP, CFO, and Treasurer
• $ 1,665,267:  Daniel J Barchi, SVP, Chief Info Tech Officer
• $ 1,528,810:  Jaclyn Mucana, President, Queens
• $ 1,509,233:  Gary J Zuar, SVP, Finance
• $ 1,445,159:  Emme DeLand, SVP, Chief Strategy Officer
• $ 1,428,152:  Karen Westervelt, SVP, COO, Regional Network Hospital
• $ 1,423,909:  Joseph A Ienuso, Group SVP, Facilities and Real Estate
• $ 1,384,142:  Susan Mascitelli, SVP, Patient Services and Liaison to Board
• $ 1,345,977:  Laureen Hill, SVP, COO, Milstein and Allen
• $ 1,306,132:  Craig T Albanese, SVP, COO – MSVCHONY Sloane
• $ 1,257,956:  Shaun E Smith, SVP, Chief Human Resources Officer
• $ 1,139,412:  Paul J Dunphey, SVP, COO, Allen & Amb Care
• $ 1,122,417:  Sarah L Avins, SVP, Chief Development Officer
• $ 1,111,967:  Kerry S Dewitt, COS to President, CEO SVP Comm
• $ 1,079,678:  William J Ferrell, SVP, Finance
• $ 1,066,917:  Robert Guimento, President, NYP/Brooklyn Methodist
• $ 1,049,528:  David Alge, SVP, Comm and Pop Health
• $ 1,038,383:  Katherine Heilpern, SVP-COO, WC
• $   989,978:  Peter Fleischut, Chief Transformation Officer
• $   978,024:   Paul N Casale, Exec Dir, NY Quality Care and Assurance CMO
• $   951,510:  Richard Evans, SVP and Chief Experience Officer
• $   893,290:  Stacey Petrower, President, Hudson Valley Hospital
• $   480,742:  Andria L Castellanos, Former Key Employee
• $   501,932:  Kathleen Burke, VP Board Relations, Secretary, Associate General Counsel

As listed above, the 33 most highly compensated employees received $61 million in compensation.  17 of the 33 (52%) most highly compensated employees are male while 16 of the 33 (48%) are female. 5 of the 10 most highly compensated employees are female while 5 are male.

NYPH paid for first class or charter travel. Specifically, business class for trips greater than 4 hours is allowed. The CEO, President, and EVP’s are authorized first class if business class is not available. For others, first class requires prior authorization.

NYPH paid for a personal residence for personal use or provided a housing allowance. Specifically, NYPH provides a monthly housing allowance to certain executives to the “extent and nature of their responsibilities.”

NYPH paid for personal services.  Specifically, NYPH provided transportation to certain executives to the “extent and nature of their responsibilities across various physical locations in so far as necessary.”

Severance pay ($425,385) was paid to Andria L Castellanos.

The following employees participated in a Supplemental Non-qualified Retirement Plan:

• $219,120:  Laura Forese
• $174,142:  Maxine Frank
• $173,396:  Phyllis Lantos
• $ 81,226:  Gary Zuar
• $ 31,761:  Susan Mascitelli
• $ 29,454:  Dov Schwartzben

Supplemental Non-qualified Retirement Plan income, as reported on the W-2 includes:

• $1,809,842:  Steven Corwin
• $  774,664:   Laura Forese
• $  443,890:  Wilhelmina Manzano
• $  321,559:  Dov Schwarten
• $  319,299:  Emme DeLand
• $  296,619:  Jaclyn Mucaria
• $  239,110:  Herbert Pardes
• $  157,577:  Maxine Frank
• $  123,050:  Gary Zuar
• $  121,019:  Phyllis Lantos
• $   47,169:  Andria Castellanos
• $   31,833:  Susan Mascitelli

$149,700 was paid to the son of Nelson Peltz, who has a significant interest in MYMO Health, Inc, for business services.

$122,882 was paid to Kathryn Mascitelli , a family member of Susan Mascitelli, for employment compensation.

243 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $145 million:  Turner Construction, of New York, NY for construction
• $ 33 million:  The Seiden Group, of New York, NY for advertising
• $ 26 million:  AMN Healthcare, of Chicago, IL for nurse staffing
• $ 21 million:  Bovis Lend Lease, of New York, NY for construction
• $ 14 million:  H M Hughes Company, of New York, NY for construction

To read the IRS Form 990 (2019), click here