Executive Compensation at UPMC (2021)

The University of Pittsburgh Medical Center is a tax-exempt, non-profit healthcare provider with more than 95,000 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 (72,000) within the system.

Of key importance is the 14 most highly compensated employees received more than $220 million in compensation from 2016-2021.

There are 42 voting members of the governing body, 9 of whom are independent although the Form 990 (for the year ending June 30, 2021) lists hundreds of board members).

In 2021, UPMC Group reported total revenue of $19.5 billion, most of which came from net patient revenue ($9 billion) and other program services ($9 billion). Expenses totaled $18.4 billion (including $482 million in depreciation) with the largest expenses reported to be compensation ($6.9 billion) and medical expenses, drugs, and supplies ($8.6 billion). At year-end, UPMC had nearly $8 billion in net assets.

72,232 employees received $6.9 billion in compensation which equates to an average compensation of $95,000.  10,617 employees received more than $100,000 in compensation with the 206 most highly compensated reported to be:

• $10,387,010:  Jeffrey A Romoff, UPM Pres and CEO
• $ 3,239,695:  Stanley Marks, UPC Board Chair*
• $ 3,124,244:  Abhinav Humar, Transplant Surgeon
• $ 3,115,567:  Diane Holder, UPM EVP, Pres UPMC Health Plan*
• $ 3,016,958:  Steven D Shapiro, UPM EVP, Chief Med and Sci Officer
• $ 2,801,930:  David Farner, UPM EVP and Chief of Staff
• $ 2,735,474:  W Thomas McGough, UPM EVP and Chief Legal Officer
• $ 2,494,815:  James D Luketich, Board Member and Dept Chair
• $ 2,508,447:  Victor Morell, UPP Board Member
• $ 2,371,084:  Leslie C Davis, UPM SVP and COO HSD
• $ 2,222,382:  Christopher Schmidt, Orthopaedic Surgeon
• $ 2,098,951:  Charles Bogosta, UPM EVP and President International *
• $ 1,998,009:  George Jabbour, Interventional Cardiologist
• $ 1,966,894:  C Talbot Heppenstall Jr, UPM EVP and Treasurer
• $ 1,933,293:  Robert A DeMichiei, Former UPM VP and CFO
• $ 1,816,935:  Joon Sup Lee, UPP Former Board Member and Dept Chair*
• $ 1,816,932:  James Bradley, Orthopedic Surgeon
• $ 1,729,992:  Dean Sotereanos, Orthopaedic Surgeon
• $ 1,685,500:  Robert M Friedlander, UPP Board Member and Dept Chair
• $ 1,657,327:  Arthur S Levine, Former UPM Board Member*
• $1,647,559:  Philip Pollice, MER Board Member
• $ 1,591,312:  Edward T Karlovich, PRY EVP and CFO 
• $ 1,563,949:  Freddie H Fu, Board Member and Dept Chair
• $1,482,559:  Marshall Webster, UPM SVP
• $ 1,428,654:  John Innocenti, PRY President
• $ 1,415,719:  Ajaipal Kang, RHS Board Member
• $ 1,389,536:  John Galley, UPP SVP and Chief HR Officer
• $ 1,270,335:  John Lovelace, FYO Board Member and President*
• $ 1,265,253:  David T Martin, PSV President
• $ 1,261,180:  Joel B Nelson, Board Member and Dept Chair
• $ 1,248,822:  Steven Johnson, WIL Board Member and President
• $ 1,199, 716:  Ronald DiSimone, SPS Board Member
• $ 1,118,205:  David Gibbons, HMT President
• $ 1,089,138:  Sandra McAnallen:  SMH Board Member*
• $1,086,485:  Robert Ferris, UPC Board Member
• $ 1,072,334:  Frances Solano, Board Member and President
• $ 1,059,931:  Mark Sevco, EAS Former President
• $ 1,042,140:  Anantha Shekhar, UPM Board Member
• $ 1,031,714:  Sheryl Kashuba, FYO Board Member, Secretary and CLO HPL*
• $ 1,026,424:  Gordon Gebbens, FYO Board Member and Treasurer
• $ 1,012,999:  Daniel Kelly Agnew, Board Member
• $ 1,010,447:  John C Stilley, UPM SVP and Treasurer and CIO
• $   972,116:  Ann Evans, UPP CFO
• $   956,537:  Elliott Bilofsky, BDF Board Member*
• $   943,634:  J Peter Rubin, UPP Board Member and Dept Chair
• $   941,184:  Scott Lammie, FYO  Former CFO*
• $   939,526:  Tamra Minnier, NWH Board Member
• $   937,668:  James Schuster, FYO Board Member*
• $   929,544:  Jonas Johnson, UPP Board Member and Treasurer
• $   910,554:  Timothy Robert Billiar, UPP Board Sec’y and Dept Chair
• $   910,427:  Jan E Fisher, ALT President
• $   902,580:  Trent Alarcon, Former Board Member
• $   898,890:  Deborah S Brodine, CPS Board Member and President
• $   888,633:  Aman Mahajan, Board Member and Dept Chair
• $   851,495:  Jose Sahel, UPP Board and Dept Chair
• $   849,849:  David Lopatofsky, ULH Board Member
• $   847,172:  Donald Owrey, HRZ President*
• $   829,494:  Patrick Gallagher, UPM Board Member
• $   818,724:  Derek Angus, Board Member and Dept Chair
• $   814,248:  Robert Blosat, Board Chair and President
• $   813,997:  Louis D Falo, Jr, UPP Board and Dept Chair
• $   811,712:  Stephen Nimmo, Former Officer (since 2019)
• $  782,581:  Richard Wadas, EMI Board Member and President
• $  780,803:  David A Lewis, UPP Board Member and Dept Chair
• $  779,510:  Gerald Murray, ALT Former President
• $  772,628:  Stephen Perkins, FYO Former Board Member* (former since 2019)
• $  760,973:  Holly Lorenz, HHC Board Member
• $  758,150:  John Comerci, MAG Board Member
• $  747,880:  Samir Saba, UPP Board Member
• $  747,574:  Eileen Simmons, PRY Chief Financial Officer
• $  742,517:  Jules Sumkin, UPP Board Member and Dept Chair
• $  736,123:  Hani Tuffaha, SHF Board Member
• $  730,022:  Sandy Rader, MCK Former Board Member (was Former since 2019)
• $  729,902:  Elizabeth Wild, UPC Board Member and President
• $  726,973:  James Pingpank, PRY Board Member
• $  714,895:  Suketu Mansuria, Board Member
• $  706,344:  Susan Hoolahan, PSV President
• $  700,194:  Donald M Yealy, EMI Board Member and VP
• $  692,039:  Joseph Losee, Former Board Member
• $  689,374:  William Barrington, PRY Former Board Member
• $  667,974:  Richard Beigi, MAG Board Member and President
• $  660,751:  Sergio Giancola, NWH Former Board Member
• $  640,139:  Philip M Cacchione, EPN Board Chair and President
• $  631,561:  Michael Ward, NWH Board Member
• $  630,393:  Scott Gunn, UPP Board Member
• $  628,424:  David Patton, SMH President
• $  605,208:  David Kruszewski, SHB Board Chair
• $  603,556:  Elizabeth Piccione, UPP Board Member
• $  603,389:  George K Michalapoulos, UPP Board Member and Dept Chair
• $  591,568:  John Ward, MER Board Member
• $  589,859:  David Russell, ALT Board Member
• $  572,883:  Michael Grace, MER Board Member and President
• $  569,189:  Mattthew Hurford, CCB President
• $  566,704:  Tracey Beiriger, OVI Board Treasurer and Secretary
• $  552,804:  Joel S Greenberger, UPP Board Member and Dept Chair
• $  544,035:  Stephen Emery, MAG Board Member
• $  543,408:  Brian Durniok, NWH Board Member and President
• $  536,714:  Robert P Edwards, MAG Board Member
• $  535,843:  Robert Geiger, EPN Board Member
• $  528,584:  Mark O’Hern, EAS President
• $  525,000:  Kotayya Kondaveeti, EAS Board Member
• $  518,109:  James W Boyle, PSV Board Member
• $  511,487:  Kvin Kist, WIL Board Member
• $  511,166:  AJ Pinevich, MER Board Secretary
• $  510,361:  Zachary Ritter, DMP SHF Board Member
• $  509,788:  Trent Emerick, UPP Former Board Member
• $  507,936:  John McKeating, MER Former Board Member
• $  507,237:  Susan Branton, WIL Board Member
• $  506,226:  Linda Barnhart, NWH Former Board Member
• $  501,251:  Matthew Newlin, ALT Board Member *
• $  498,176:  Hyagriv Simhan, UPP Former Board Member
• $  496,670:  Randall Boggess, NWH Board Member
• $  487,278:  Daniel R Sullivan, PSV Board Vice Chair and Secretary
• $  478,325:  Christopher Samuel, MCK Former Treasurer and CFO
• $  467,677:  Tulio Estrada, HRZ Board Member
• $  465,767:  Terence Dermody, UPP Board Member and Dept Chair
• $  465,410:  Darius Abadi, SPS Board Member
• $  461,693:  Mark Gladwin, UPP Board Member and Dept Chair
• $  456,122:  Joseph Talarico, Former Board Member
• $  449,577:  Francis Foti, KAN Board Member
• $  445,390:  Michael Schlechter, Former ALT Board Member*
• $  443,563:  Lawson Bernstein, EAS Board Member
• $  442,805:  Andrea Badway, BHM Board Member
• $  441,865:  Marek A Radomski, DOUPP Board Member
• $  438,037:  Kenneth Nash, Board Member
• $  436,689:  Alexander J Ciocca, SMH Board Member
• $  433,108:  David Burwell, ALF Board Member
• $  430,089:  Mbembo Bongutu, RHS Board Member
• $  422,961:  Diane Hupp, Secretary and VP of Operations
• $  421,746:  Donald Beckstead, HNV Board Member
• $  403,548:  Daniel Glunk, ULH Board Member
• $  400,734:  Bryant Wesley, CRP Secretary
• $  397,104:  Lynn Rupp, RHS President
• $  394,778:  Nathan Moore, RHS Board Member
• $  390,234:  Gabriella Gosman, MAG Board Member
• $  387,295:  Grant Hormell, BDF Board Member
• $  385,658:  Joseph Antonowicz, ALF Former Board Member
• $  378,262:  Jerome Shaffer, Board Member, Treasurer, and CFO
• $  371,657:  Bharat Adroja, ULH Board Member
• $  367,586:  Michael Boninger, HCM Board Member and President
• $  366,551:  Charissa Pacella, PRY Former Board Member (was former since 2018)
• $  366,160:  David Baer, BDF Board Member
• $  362,024:  Donna Ottoviani, CMI Board Member Sec’y and COO
• $  354,447:  Mark Bondi, THS President*
• $  352,505:  Timothy Horsky, BDF Board Member
• $  349,465:  Paula Thomas, HHC President
• $  346,711:  Mario Wilfong, Former ALT Treasurer and CFO
• $  345,287:  Dawndra Jones, MYC Board Member
• $  344,346:  Douglas Garretson, President
• $  341,507:  Caroline Daniels, CAC Secretary
• $  341,922:  Susan Duchman, HNV Board Member*
• $  341,226:  Kenneth Plowey, MCK Board Member
• $  340,482:  James Giammarco, CCB CFO
• $  339,806:  Robert Kane, SHS Board Member
• $  338,845:   Susan Rakfai, MCK Board Member
• $  337,375:  Cynthia Wilson, HCM Former Board Member*
• $  336,769:  James Donnelly, CHS Board Member
• $  331,997:  Marshall Stafford, SMH Former Board Member (was in 2020 als0)
• $  331,050:  Jared Weiner, PRY CFO
• $  329,741:  Charles Hagerty, SHB Board Vice Chair
• $  327,261:  Gregory Peaslee, Former EVP and Chief Admin Officer
• $  326,097:  Thomas Diacovo, MAG Former Board Member
• $  324,131:  Rickquel Tripp,, UPP Board Member
• $  322,218:  Margaret Bell, AUE Treasurer/Secretary
• $  315,561:  Christina Patterson, UPP Board Member
• $  315,272:  Robert Jackson, HRZ President
• $  302,161:  Gwendolyn Sowa, UPP Board Member and Dept Chair
• $  298,864:  Alexander Nesbitt, SPS Board Member
• $  297,000:  Brian Fritz, PSV CFO
• $  296,712:  David Bobrzynski, MYC Board Treasurer
• $  295,574:  Patricia Jackson-Gehris, ULH Board Member
• $  295,649:  James Gavin, CCB  Former President
• $  294,213:  Nicholas Barcellona, CHP Secretary/Treasurer/CFO
• $  294,263:  Mark Zacharia, MYC Board Vice Chair
• $  290,561:    Daniel Grant, SCS Board Member*
• $  287,388:  Terrence Lewis, EMI Secretary
• $  282,314:  Janet Waters, UPP Board Member
• $  280,410:  Amy Swindell, HNV Former Board Member
• $  275,275:  Donald Goodman, Board Member and VP
• $  275,054:  David McCandless, NWH Board Member
• $  269,373:  Alan Wells, Former Board Member
• $  268,295:  Daniel Swayze, CEM Board Secretary
• $  263,819:  Michele P Jegasothy, UPM Secretary
• $  265,397:  Susan Martin, MER Board Member
• $  258,458:  Timothy Balcony, ALF President
• $  252,920:  Noreen Fredrick, HNA Board Member
• $  249,816:  Brad Dinger, NWH CFO
• $  247,055:  Sylvia Owusu-Ansah, UPP Board Member
• $  246,650:  Laurene Timmons, EAS Board Secretary and CFO
• $  246,039:  Al Boland, JMC Board Secretary
• $  245,454:  V James Fiorenzo, HMT Former President
• $  240,360:  Robyn Beckwith, Board Member and Secretary
• $  233,419:  Ronald Deems, MAG CFO
• $  232,579:  Jeffrey Knorr, BHO Secretary
• $  222,062, Clifton Callaway, Former Board Member
• $  221,525:  Elizabeth Ritter, Former Board Member
• $  220,446:  Robert Griffith, HHC CFO and Treasurer
• $  217,705:  Cecil Miller, Board Member*
•  $  212,914:  Margaret Ealy, APP Board Member, Treasurer, and CFO
• $  205,658:  Charles Flach, UPC Treasurer and CFO
• $  204,084:  Russell Meyers, EMI Board Treasurer
• $  203,800:  Diana Woy, HNV Former Board Member
• $  201,736:  Carrie Ennis, HMT Board Secretary
• $  197,580:  William Nigro, CRP Board Member, Treasurer, and CFO
• $  195,537:  Susan Thompson, HNV Board Member
• $  187,382:  James Houser, President

A “*” indicates all or a portion of compensation came from a related or affiliated organization.

The 14 most highly compensated employees received $44 million in compensation in 2021 ($2 million – $10 million each0.  These 14 employees received $2-$50 million each or a total of $223 million from 2016-2021:

Jeffrey Romoff:  Total Compensation 2016-2021:  $50 million

• 2021:  $10,387,010
• 2020:  $ 9,499,742
• 2019:  $ 8,966,061
• 2018:  $ 8,541,652
• 2017:  $ 6,118,916
• 2016:  $ 6,990,839

Abhinav Humar:  Total Compensaation 2017-2021:  $10 million

• 2021:  $3,124,244
• 2020:  $2,175,575
• 2019:  $2,160,282
• 2018:  Not Listed
• 2017:  $1,621,541
• 2016:  Not Listed

Steven D Shapiro:  Total Compensation 2016-2021:  $17 million

• 2021:  $3,016,958
• 2020:  $3,438,302
• 2019:  $2,661,577
• 2018:  $3,157,283
• 2017:  $2,587,343
• 2016:  $2,345,692

C Talbot Heppenstall, Jr:  Total Compenation 2016-2021:  $13 million 

• 2021:  $1,966,894
• 2020:  $3,428,555
• 2019:  $1,626,004
• 2018:  $2,265,204
• 2017:  $1,917,064
• 2016:  $1,365,260

Diane Holder:  Total Compensation 2016-2021:  $19 million

• 2021:  $3,115,567
• 2020:  $3,351,683
• 2019:  $3,233,976
• 2018:  $3,521,014
• 2017:  $3,678,624
• 2016:  $2,389,780

David Farner:  Total Compensation 2016-2021:  $16 million 

• 2021:  $2,801,930
• 2020:  $3,325,691
• 2019:  $2,262,385
• 2018:  $3,342,535
• 2017:  $2,645,127
• 2016:  $2,098,426

Leslie C Davis:  Total Compensation 2016-2021:  $12 million

• 2021:  $2,371,084
• 2020:  $2,871,300
• 2019:  $1,846,341
• 2018:  $2,207,006
• 2017:  $1,800,921
• 2016:  $1,573,148

Stanley Marks:  Total Compensaton 2016-2021: $17 million 

• 2021:  $3,239,645
• 2020:  $2,837,919
• 2019:  $2,808,344
• 2018:  $2,834,788
• 2017:  $2,603,255
• 2016:  $2,475,319

W Thomas McGough:  Total Compensation 2016-2021:  $14 million

• 2021:  $2,735,474
• 2020:  $2,759,847
• 2019:  $2,168,277
• 2018:  $2,217,356
• 2017:  $1,973,395
• 2016:  $1,863,077

James D Luketich:  Total Compensation 2016-2021: $15 million 

• 2021:  $2,484,815
• 2020:  $2,494,730
• 2019:  $2,478,287
• 2018:  $2,496,071
• 2017:  $2,436,081
• 2016:  $2,469,645

Victor Morell:  Total Compensation 2016-2021: $13 million 

• 2021:  $2,508,447
• 2020:  $2,484,988
• 2019:  $2,181,722
• 2018:  $2,141,840
• 2017:  $2,040,722
• 2016:  1,985,801

Christopher Schmidt:  Total Compensation 2016-2021:  $13 million

• 2021:  $2,222,382
• 2020:  $2,450,474
• 2019:  $2,313,436
• 2018:  $2,055,719
• 2017:  $1,893,065
• 2016:  $1,642,742

George Jabbour: Total Compensation 2021:  $2 million

• 2021: $ 1,998,009

Charles Bogosta:  Total Compensation 2016-2021:  $12 million

• 2021:  $2,098,951
• 2020:  $2,248,718
• 2019:  $1,651,200
• 2018:  $2,168,987
• 2017:  $1,780,647
• 2016:  $2,232,659

158 of the 206 (77%) most highly compensated employees are male while 48 (23% 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 (2020 for the year ending June 30, 2021), click here.