Executive Compensation at UPMC Group (2020)

The University of Pittsburgh Medical Center is a tax-exempt, non-profit healthcare provider with more than 90,000 employees that work in 40 hospitals and more than 800 healthcare-related clinics/offices and a 4 million member insurance services division (the largest medical insurer in western Pennsylvania).

The organization consists of hundreds of related/affiliated organizations (both non-profit and for-profit). This post addresses the executive compensation at UPMC Group (UPMC), a tax-exempt, non-profit 501 (c) 3 that employs the largest number of employees (66,000) within the system.

There are 40 voting members of the governing body, 8 of whom are independent although the Form 990 (for the year ending June 30, 2020) reported hundreds of board members).

In 2020, UPMC Group reported total revenue of $16.6 billion, most of which came from net patient revenue ($8 billion) and other program services ($8 billion). Expenses totaled $16.5 billion (including $450 million in depreciation) with the largest expenses reported to be compensation ($6.4 billion) and medical expenses, drugs, and supplies ($7.5 billion).

66,202 employees received $6.4 billion in compensation which equates to an average compensation of $96,000 (compared to an average compensation of $92,000 in 2019).  10,586 employees received more than $100,000 in compensation with the 176 most highly compensated reported to be:

• $9,499,742:  Jeffrey A Romoff, UPM Pres and CEO
• $3,438,302:  Steven D Shapiro, UPM EVP, Chief Med and Sci Officer
• $3,428,555:  C Talbot Heppenstall Jr, UPM EVP and Treasurer
• $3,351,683:  Diane Holder, UPM EVP, Pres UPMC Health Plan*
• $3,325,691:  David Farner, UPM EVP and Chief of Staff
• $2,871,300:  Leslie C Davis, UPM SVP and COO HSD
• $2,837,919:  Stanley Marks, UPC Board Chair*
• $2,759,847:  W Thomas McGough, UPM EVP and Chief Legal Officer
• $2,494,730:  James D Luketich, Board Member and Dept Chair
• $2,484,988:   Victor Morell, UPP Board Member
• $2,450,474:  Christopher Schmidt, Orthopaedic Surgeon
• $2,248,718:  Charles Bogosta, UPM EVP*
• $2,175,575:  Abhinav Humar, Transplant Surgeon
• $2,038,335:  Thomas Gleason, Cardiothoracic Surgeon
• $1,873,928:  Robert A DeMichiei, UPM VP and CFO
• $1,810,722:  Marshall Webster, UPM SVP
• $1,773,559:  Gregory Peaslee, UPM EVP and Chief Admin Officer
• $1,772,346:  James Bradley, Orthopedic Surgeon
• $1,767,780:  Ajaipal Kang, RHS Board Member
• $1,683,029:  Dean Sotereanos, Orthopaedic Surgeon
• $1,563,312:  Philip Pollice, MER Board Member
• $1,562,505:  Robert M Friedlander, UPP Board Member and Dept Chair
• $1,542,680:  Arthur S Levine, UPM Board Member*
• $1,543,540:  Freddie H Fu, Board Member and Dept Chair
• $1,385,154:  Joon Sup Lee, UPP Former Board Member and Dept Chair*
• $1,348,027:  Edward T Karlovich, PRY CFO Academic Comm Hospital
• $1,295,398:  Patrick Gallagher, UPM Board Member*
• $1,291,595:  John Innocenti, PRY President
• $1,241,675:  John Galley, UPP Board Member
• $1,239,113:  John Lovelace, FYO Board Member and President*
• $1,233,652:  David T Martin, PSV President
• $1,225,970:  Joel B Nelson, Board Member and Dept Chair
• $  998,654:  Sandra McAnallen:  SMH Board Member*
• $  992,484:  Frances Solano, Board Member and President
• $  981,573:  Scott Lammie, FYO CFO
• $  977,186:  Gordon Gebbens, FYO Board Member and Treasurer
• $  975,956:  Gerald Murray, ALT Former President
• $  933,803:  Daniel Kelly Agnew, Board Member
• $  928,644:  Jonas Johnson, UPP Board Member and Treasurer
• $  923,334:  Mark Sevco, EAS President
• $  916,351:  J Peter Rubin, UPP Board Member and Dept Chair
• $  901,363:  Timothy Robert Billiar, UPP Board Sec’y and Dept Chair
• $  874,064:  David Gibbons, HMT President
• $  865,322:  Aman Mahajan, Board Member and Dept Chair
• $  850,780:  Tamra Minnier, NWH Board Member
• $  846,201:  James Pingpank, PRY Board Member
• $  833,982:  Robert Ferris, UPC Board Member
• $  812,133:  Louis Alarcon, UPP Former Board Member and Medical Director
• $  809,744:  John Comerci, MAG Board Member
• $  803,611:  James Schuster, FYO Board Member
• $  797,675:  Derek Angus, Board Member and Dept Chair
• $  791,814:  Jan E Fisher, ALT President
• $  790,112:  Deborah S Brodine, CPS Board Member and President
• $  788,075:  Robert Blosat, Board Chair and President
• $  779,319:  Jose Sahel, UPP Board and Dept Chair
• $  765,691:  Stephen Nimmo, Former Officer (also paid in 2019 but former officer then)
• $  760,869:  Richard Wadas, EMI Board Member and President
• $  746,126:  Michael Grace, MER Board Member and President
• $  732,572:  Donald Owrey, HRZ President*
• $  729,339:  Holly Lorenz, HHC Board Member
• $  727,855:  Sheryl Kashuba, Board Member, Secretary and CLO
• $  714,430:  Ann Evans, UPP CFO
• $  696,621:  Stephen Perkins, FYO Former Board Member* (former employee prior year)
• $  690,048:  James Gavin, CCB President
• $  683,880:    Sandy Rader, MCK Former Board Member (was Former the previous year also)
• $  680,616:  Samir Saba, UPP Board Member
• $  667,485:  Donald M Yealy, EMI Board Member and VP
• $  665,979:  Suketu Mansuria, Board Member
• $  665,073:  David Kruszewski, SHB Board Chair
• $  664,252:  David A Lewis, UPP Board Member and Dept Chair
• $  662,628:  Philip M Cacchione, EPN Board Chair and President
• $  657,269:  Eric Cartwright, VP
• $  649,232:  Eileen Simmons, PRY Chief Financial Officer
• $  648,094:  Jules Sumkin, UPP Board Member and Dept Chair
• $  638,045:  John Ward, MER Board Member
• $  636,922:  Barbara Gaines, Board Member
• $  623,117:  Elizabeth Piccione, UPP Board Member
• $  617,769:  Sergio Giancola, NWH Board Member
• $  600,616:  Richard Beigi, MAG Board Member and President
• $  597,131:  Scott Gunn, UPP Board Member
• $  593,206:  George K Michalapoulos, UPP Board Member and Dept Chair
• $  582,815:  William Barrington, PRY Former Board Member
• $  569,771:  Robert Geiger, EPN Board Member
• $  560,947:  David Russell, ALT Board Member
• $  554,950:  Joel S Greenberger, UPP Board Member and Dept Chair
• $  549,759:  Susan Hoolahan, PSV President
• $  544,631:  Trent Emerick, UPP Former Board Member
• $  536,062:  Stephen Emery, MAG Board Member
• $  526,310:  Tulio Estrada, HRZ Board Member
• $  524,995:  Linda Barnhart, NWH Board Member
• $  517,791:  Robert P Edwards, MAG Board Member
• $  512,500:  Kotayya Kondaveeti, EAS Board Member
• $  502,178:  Brian Durniok, NWH Board Member and President
• $  498,390:  Christopher Samuel, Board Member
• $  491,221:  David Patton, SMH President
• $  490,510:  James W Boyle, PSV Board Member
• $  490,322:  John McKeating, MER Former Board Member
• $  489,621:  AJ Pinevich, MER Board Secretary
• $  486,815:  Louis D Falo, Jr, UPP Board and Dept Chair
• $  479,070:  Daniel R Sullivan, PSV Board Vice Chair and Secretary
• $  478,827:  Joseph Talarico, Board Member
• $  477,611:  Randall Boggess, NWH Board Member
• $  464,596:  Mbembo Bongutu, RHS Board Member
• $  461,784:  Tracey Beiriger, OVI Board Treasurer and Secretary
• $  457,074:  Lawrence Wechsler, UPP Board Member and Dept Chair
• $  453,316:  Terence Dermody, UPP Board Member and Dept Chair
• $  451,644:  Mark Gladwin, UPP Board Member and Dept Chair
• $  450,090:  Francis Foti, KAN Board Member
• $  445,149:  Hyagriv Simhan, UPP Former Board Member
• $  444,223:  Mark O’Hern, EAS President
• $  437,530:  Mattthew Hurford, CCB President
• $  424,784:  Alexander J Ciocca, SMH Board Member
• $  423,736:  Michael Schlechter, ALT Board Member*
• $  418,778:  Donald Beckstead, HNV Board Member
• $  401,449:  Andrea Badway, BHM Board Member
• $  393,496:  Robert Lucas, CMI Board Member
• $  392,434:  Lynn Rupp, RHS President
• $  386,077:  Bryant Wesley, CRP Secretary
• $  385,487:  Joseph Antonowicz, ALF Board Member
• $  380,549:  Christopher Stockhausen, MCK Former Treasurer and CFO
• $  377,772:  Douglas Garretson, CEM President
• $  373,173:  David Burwell, Board Member
• $  572,622:  Joseph Losee, Former Board Member
• $  370,465:  Nathan Moore, RHS Board Member
• $  369,181:  Jerome Shaffer, CPS Board Member, Treasurer, and CFO
• $  364,913:  David Baer, BDF Board Member
• $  364,151:  Marshall Stafford, SMH Former Board Member
• $  363,160:  Charissa Pacella, PRY Former Board Member (was former in prior year also)
• $  362,698:  Michael Boninger, HCM Board Member and President
• $  362,522:  Mario Wilfong, ALT Treasurer and CFO
• $  357,103:  Grant Hormell, BDF Board Member
• $  354,287:  Donna Ottoviani, CMI Board Member Sec’y and COO
• $  353,449:  Kenneth Plowey, MCK Board Member
• $  347,862:  Timothy Horsky, BDF Board Member
• $  341,066:  Mark Bondi, THS President*
• $  339,497:  Paula Thomas, HHC President
• $  338,057:  Richard Bondi, UPC Treasurer and CFO
• $  338,055:  Kenneth Nash, CCB Board Member
• $  336,661:  Nicholas Barcellona, CHP Secretary/Treasurer/CFO
• $  329,843:  James Donnelly, CHS Board Member
• $  324,915:  Gabriella Gosman, MAG Board Member
• $  320,821:  Thomas Diacovo, MAG Board Member
• $  315,788:  Margaret Bell, AUE Treasurer/Secretary
• $  315,503:  Nanci Case, HNF President
• $  312,378:  Caroline Daniels, CAC Secretary
• $  311,407:  Susan Duchman, HNV Board Member*
• $  302,785:  David McCandless, NWH Board Member
• $  299,500:  Daniel Swayze, CEM Board Secretary
• $  297,712:  Dawndra Jones, MYC Board Member
• $  293,138:  James Giammarco, CCB CFO
• $  291,944:    Daniel Grant, SCS Board Member*
• $  291,596:  Jared Weiner, PRY CFO
• $  290,945:  Charles Hagerty, SHB Board Vice Chair
• $  290,000:  David Bobrzynski, MYC Board Treasurer
• $  287,058:  Brian Fritz, PSV CFO
• $  280,399:  Mark Zacharia, MYC Board Vice Chair
• $  279,987:  Terrence Lewis, EMI Secretary
• $  279,738:  Amy Swindell, HNV Board Member
• $  274,463:  Gwendolyn Sowa, UPP Board Member and Dept Chair
• $  263,627:  Michele P Jegasothy, UPM Secretary
• $  260,029:  Donald Goodman, Board Member and VP
• $  258,132:  Timothy Balcony, ALF President
• $  250,418:  Susan Martin, MER Board Member
• $  250,046:  Christina Patterson, UPP Board Member
• $  246,115:   Susan Rakfai, MCK Board Member
• $  244,006:  Brad Dinger, NWH CFO
• $  242,478:  Noreen Fredrick, HNA Board Member
• $  234,109:  Robyn Beckwith, Board Member and Secretary
• $  231,130:  Laurene Timmons, EAS Board Secretary and CFO
• $  229,577:  Alan Wells, Former Board Member
• $  222,526:  Jeffrey Knorr, BHO Secretary
• $  222,071:  Janet Waters, UPP Board Member
• $  220,211:  Cecil Miller, Board Member*
• $  222,071:  Janet Waters, UPP Board Member
• $  211,630:  Robert Griffith, HHC CFO and Treasurer
• $  211,009:  Andrew Nowalk, Former Director

The 11 most highly compensated employees received $2.5 million – $9 million each in compensation in 2020.  These 11 employees received $10-$40 million each over the last five years (2016-2020):

Jeffrey Romoff

• 2020:  $9,499,742
• 2019:  $8,966,061
• 2018:  $8,541,652
• 2017:  $6,118,916
• 2016:  $6,990,839

Steven D Shapiro

• 2020:  $3,438,302
• 2019:  $2,661,577
• 2018:  $3,157,283
• 2017:  $2,587,343
• 2016:  $2,345,692

C Talbot Heppenstall, Jr

• 2020:  $3,428,555
• 2019:  $1,626,004
• 2018:  $2,265,204
• 2017:  $1,917,064
• 2016:  $1,365,260

Diane Holder

• 2020:  $3,351,683
• 2019:  $3,233,976
• 2018:  $3,521,014
• 2017:  $3,678,624
• 2016:  $2,389,780

David Farner

• 2020:  $3,325,691
• 2019:  $2,262,385
• 2018:  $3,342,535
• 2017:  $2,645,127
• 2016:  $2,098,426

Leslie C Davis

• 2020:  $2,871,300
• 2019:  $1,846,341
• 2018:  $2,207,006
• 2017:  $1,800,921
• 2016:  $1,573,148

Stanley Marks

• 2020:  $2,837,919
• 2019:  $2,808,344
• 2018:  $2,834,788
• 2017:  $2,603,255
• 2016:  $2,475,319

W Thomas McGough

• 2020:  $2,759,847
• 2019:  $2,168,277
• 2018:  $2,217,356
• 2017:  $1,973,395
• 2016:  $1,863,077

James D Luketich

• 2020:  $2,494,730
• 2019:  $2,478,287
• 2018:  $2,496,071
• 2017:  $2,436,081
• 2016:  $2,469,645

Victor Morell

• 2020:  $2,484,988
• 2019:  $2,181,722
• 2018:  $2,141,840
• 2017:  $2,040,722
• 2016:  1,985,801

Christopher Schmidt

• 2020:  $2,450,474
• 2019:  $2,313,436
• 2018:  $2,055,719
• 2017:  $1,893,065
• 2016:  $1,642,742

138 of the 176 (78%) most highly compensated employees are male while 38 (22% are female).  9 of the 10 most highly compensated employees are male while 1 is a female. 18 of the 20 most highly compensated employees are male while 2 are female. 28 of the 30 most highly compensated employees are male while 2 of the 30 are female.

UPMC Group paid for first class or charter travel, travel for companions, and health or social club dues or initiation fees. In addition, UPMC Group made gross up payments and tax indemnification.  For details on these perks, please go to the Form 990, Schedule J, Part III, Supplemental Information. For supplemental information on Business Transactions with Interested Persons, see Form 990, Schedule J, Part V, Supplemental Information.

UPMC has leased one or more private jets (estimated value of $30 – $50 million or more each) for executive travel.  By leasing private jets, as opposed to purchasing them where the jets will show up on the balance sheet as fixed assets that are depreciated, UPMC can expense the monthly payments (estimated to be hundreds of thousands of dollars per month) as “travel” costs (and be able to say they don’t “own” private jets).

To read the Form 990 (2019 for the year ending June 30, 2020), click here.

Update:  Executive Compensation at UPMC (2021)

Update:  Executive Compensation at UPMC (2022)