Executive Compensation at Northwell Health (2020)

Northwell Health is New York’s largest healthcare provider with 22 hospitals and 750 outpatient facilities with more than 85,000 employees across the network (which includes many organizations).

The focus of this post is on the executive compensation of Northwell Healthcare, Inc. (NHI), a non-profit, tax-exempt 501 (c) (3) that provides advisory and administrative support services to the affiliated healthcare organizations that comprise Northwell Health.  This means the primary source of income for NHI is the revenue the affiliated organizations give, which amounted to $1.6 billion in 2020 (out of $1.8 billion in total revenue).

Expenses for NHI totaled $1.6 billion (not including $163 million in depreciation) with the largest expenses reported to be compensation ($826 million), office-related expenses ($327 million), purchased services and fees for services ($306 million), and interest ($94 million).

Based in Westbury, New York, NHI reports having 7,031 employees (out of an estimated 85,000 total employees among all the organizations that make up Northwell Health) who were compensated $826 million in 2020, which equates to an average compensation of nearly $117,000.

2,235 employees received more than $100,000 in compensation with the 20 most highly compensated employees reported (from the Form 990 submitted to the IRS for 2020) to be:

• $4,751,773:  Michael J Dowling, President and CEO
• $3,314,733:  Mark Solazzo, EVP and COO
• $1,902,253:  Howard Gold, EVP and Chief Managed Care Officer
• $1,832,913:  Lawrence Smith, EVP and Physician in Chief
• $1,661,576:  Winifred Mack, SVP, Health System Ops, Former Officer (primarily severance)
• $1,627,472:  Jason Naidich, SVP, Regional Executive Director
• $1,593,507:  David Battinelli, SVP, Chief Medical Officer
• $1,529,999:  Eugene Tangney, SVP and Chief Admin Officer
• $1,436,838:  Richard Miller, EVP and Chief Business Strategy Officer
• $1,426,447:  Jeffrey Kraut, EVP, Strategy and Analytics
• $1,383,095:  Joseph Moscola, SVP, Chief People Officer
• $1,392,371:  Michele Cusack, SVP and CFO
• $1,317,219:  Gerard Brogan, SVP, Chief Revenue Officer
• $1,237,908:  Kevin Beiner, SVP, Regional Executive Director
• $1,196,011:  Laurence Kraemer, SVP and Chief General Counsel and Asst Secretary
• $1,124,308:  Kathleen Gallo, EVP and Chief Learning Officer
• $1,118,907:  Donna Drummond, SVP and Chief Expense Officer*
• $1,076,367:  Ralph Nappi, EVC*
• $  888,975:  Mark Gloade, SVP, Deputy General Counsel and Asst Secretary
• $  442,782:  Harry Gindi, Assistant Secretary

A “*” indicates all or a portion of compensation came from an affiliate organization.

16 of the 20 (80%) of the most highly compensated employees are male with 4 (20%) are female. 9 of the 10 most highly compensated employees are male.

The 20 employees listed above received $32 million in compensation, which equates to an average compensation of $1.6 million.

The most highly compensated employees were Michael J Dowling, Mark Solazzzo, Howard Gold, Lawrence Smith and Winifred Mach who received more than $70 million in compensation from 2015-2020:

Michael J Dowling:  Total C9mpensation 2015-2020: $24 million

• 2020:  $4,751,773
• 2019:  $4,024,730
• 2018:  $3,579,554
• 2017:  $4,096,767
• 2016:  $4,077,452
• 2015:  $3,274,357

Mark Solazzo:  Total Compensation 2015-2020:  $18 million

• 2020:  $3,314,733
• 2019:  $2,950,145
• 2018:  $2,554,328
• 2017:  $3,255,827
• 2016:  $2,998,266
• 2015:  $2,752,944

Howard Gold:  Total Compensation 2015-2020:  $13.5 million

• 2020:  $1,902,253
• 2019:  $1,804,698
• 2018:  $4,490,135
• 2017:  $1,827,989
• 2016:  $1,850,556
• 2015:  $1,677,004

Lawrence Smith:  Total Compensation 2015-2020:  $9 million

• 2020:  $1,832,913
• 2019:  $1,611,724
• 2018:  $1,211,049
• 2017:  $1,379,722
• 2016:  $1,333,321
• 2015:  $1,442,021

Winifred Mach:  Total Compensation 2015-2020:  $8 million

• 2020:  $1,661,576
• 2019:  $1,187,371
• 2018:  $1,187,371
• 2017:  $1,346,806
• 2016:  $1,147,680
• 2015:  $1,007,990

It is also important to address loans from the organization, as detailed on the Form 990, Schedule L, Part II, all approved by the board or committee:

• Michael Dowling received a loan for $96 million for “split $ life;” current balance due is $76 million.
• Mark Solazzo received a loan for $37 million for “split $ life;” current balance due is $24 million.
• Jeffrey Kraut received a loan for $31 million for “split $ life;” current balance due is $ million.
• David Battinelli received a loan for $19 million for “split $ life;”  current balance due is $11 million.
• Laurence Kraemer received a loan for $17 million for “split $ life;” current balance due is $10 million.
• Eugene Tangney received a loan for $27 million for “split $ life;” current balance due is $19 million.
• Richard Miller received a loan for $13 million for “split $ life;” current balance due is $7 million.
• Jason Naidich received a loan for $17 million for “split $ life;” current balance due is $11 million.
• Michele Cusack received a loan for $18 million for “split $ life;” current balance due is $13 million.
• Donna Drummond received a loan for $10 million for “split $ life;” current balance due is $6 million.
• Joseph Moscola received a loan for $12 million for “split $ life;” current balance due is $9 million.
• Kevin Beiner received a loan for $15 million for “split $ life;” current balance is $11 million.
• Gerald Brogan received for $13 million for “split $ life;” current balance is $8 million.

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

• $177 million:  Allscripts, of Cary, NC for information services
• $ 28 million:  Synergy Health North America Inc, of Tampa, FL for sterilization services
• $ 26 million:  Deloitte Consulting, of Detroit, MI for consulting services
• $ 23 million:  Horizon Media, of NY, NY for advertising
• $ 22 million:  Computer Design Integration, of Teterboro, NJ for information services

To read the IRS Form 990 (2020), click here