Executive Compensation at Northwell Health (2022)

Northwell Health is New York’s largest healthcare provider with 21 hospitals and nearly 900 outpatient facilities with more than 90,000 employees across the network (which includes 135 tax-exempt organizations, 27 taxable partnerships, and 41 organizations taxable as a corporation or trust).

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 $1.8 billion in 2022 (out of $2 billion in total revenue).  In other words, the organizations that make up Northwell Healthcare paid $1.8 billion to a related organization to manage themselves.

Expenses for NHI totaled $1.8 billion (not including $214 million in depreciation) with the largest expenses reported to be compensation ($958 million), office-related expenses ($364 million), purchased services and fees for services ($336 million), and interest ($95 million).

Based in Westbury, New York, NHI reports having 8,136 employees (out of an estimated 90,000 total employees among all the organizations that make up Northwell Health) who were compensated $958 million in 2022, which equates to an average compensation of nearly $118,000.

2,630 employees received more than $100,000 in compensation with the 21 most highly compensated employees reported (from the Form 990 submitted to the IRS for 2021) to be:

• $5,268,261:  Michael J Dowling, President and CEO
• $3,858,387:  Mark Solazzo, EVP and COO
• $2,311,001:  Lawrence Smith, EVP and Physician in Chief
• $2,182,144:  Jeffrey Kraut, EVP, Strategy and Analytics
• $1,717,685:  Joseph Moscola, SVP, Chief People Officer
• $1,703,886:  David Battinelli, SVP, Chief Medical Officer
• $1,656,861:  Michele Cusack, SVP and CFO
• $1,608,015:  Jason Naidich, SVP, Regional Executive Director
• $1,535,076:  Mark Jarrett, SVP, Chief Quality Officer and Dep M
• $1,517,409:  John Bosco, SVP, CIO
• $1,491,933:  John D’Angelo, SVP, Regional Executive Director
• $1,491,674:  Eugene Tangney, SVP and Chief Admin Officer
• $1,455,123:  Richard Miller, EVP and Chief Business Strategy Officer
• $1,297,948:  Laurence Kraemer, SVP and Chief General Counsel and Asst Secretary
• $1,277,581:  Kathleen Gallo, EVP and Chief Learning Officer
• $1,213,573:  Donna Drummond, SVP and Chief Expense Officer*
• $1,191,443:  Konstantine Costalas, SVP, Managed Care
• $1,067,794:  Ralph Nappi, EVC*
• $  949,571:  Mark Gloade, SVP, Deputy General Counsel and Asst Secretary
• $  465,497:  Harry Gindi, Assistant Secretary
• $  324,000:  Mark Claster, Immediate Past Chairman

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

18 of the 21 (86%) of the most highly compensated employees are male while 3 (14%) are female. 9 of the 10 most highly compensated employees are male.

The 21 employees listed above received $36 million in compensation, which equates to an average compensation of $1.7 million.

The 10 most highly compensated employees received $129 million in compensation from 2015-2021 (and half of them were not employed for the full duration):

Michael J Dowling:  Total C9mpensation 2015-2022: $37 million

• 2022:  $5,268,261
• 2021:  $7,753,849
• 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 2015-2022:  $28 million

• 2022: $3,858,387
• 2021:  $5,490,026
• 2020:  $3,314,733
• 2019:  $2,950,145
• 2018:  $2,554,328
• 2017:  $3,255,827
• 2016:  $2,998,266
• 2015:  $2,752,944

Lawrence Smith:  Total Compensation 2015-2021:  $13 million

• 2022: $2,311,001
• 2021:  $2,173,628
• 2020:  $1,832,913
• 2019:  $1,611,724
• 2018:  $1,211,049
• 2017:  $1,379,722
• 2016:  $1,333,321
• 2015:  $1,442,021

Jeffrey Kraut:  Total Compensation 2015-2022:  $13 million

• 2022:  $2,182,144
• 2021:  $1,584,456
• 2020:  $1,426,447
• 2019:  $1,314,610
• 2018:  $1,062,716
• 2017:  $1,867,708
• 2016:  $1,686,174
• 2015:  $1,451,663

Joseph Moscolo:  Total Compensation 2017-2022:  $8 million

• 2022:  $1,717,685
• 2021:  $1,583,834
• 2020:  $1,383,095
• 2019:  $1,248,058
• 2018:  $1,084,253
• 2017:  $1,319,918

David Battinelli:  Total Compensation 2018-2022:  $8 million

• 2022: $1,703,886
• 2021:  $1,819,587
• 2020:  $1,593,507
• 2019:  $1,487,693
• 2018:  $1,059,736

Michelle Cusack:  Total Compensation 2017-2022:  $8 million

• 2022: $1,656,861:
• 2021:  $1,597,507
• 2020:  $1,392,371
• 2019:  $1,487,693
• 2018:  $  977,347
• 2017:  $1,221,166

Jason Naidich:  Total Compensaation 2017-2022:  $9 million

• 2022: $1,608,015:
• 2021:  $1,723,953
• 2020:  $1,627,472
• 2019:  $1,500,418
• 2018:  $1,359,655
• 2017:  $1,470,669

Mark Jarrett:  Total Compensation 2021-2022:  $3 million

• 2022: $1,535,076
• 2021:  $1,459,902

John Bosco:  Total Compensation 2022:  $1.5 million

• 2022: $1,517,409

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 $62 million.
• Mark Solazzo received a loan for $129 million for “split $ life;” current balance due is $99 million.
• Jeffrey Kraut received a loan for $53 million for “split $ life;” current balance due is $29 million.
• David Battinelli received a loan for $62 million for “split $ life;”  current balance due is $34 million.
• Laurence Kraemer received a loan for $42 million for “split $ life;” current balance due is $23 million.
• Eugene Tangney received a loan for $27 million for “split $ life;” current balance due is $11 million.
• Richard Miller received a loan for $18 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 $6 million.
• Michele Cusack received a loan for $19 million for “split $ life;” current balance due is $10 million.
• Donna Drummond received a loan for $17 million for “split $ life;” current balance due is $7 million.
• Joseph Moscola received a loan for $12 million for “split $ life;” current balance due is $9 million.
• Mark Gloade received a loan for $16 million for “split $ life;” current balance due is $13 million.
• John Bosco received a loan for $23 million for “split $ life;” current balance due is $12 million.
• Konstantine Costalas receied a loan for $16 million for “split $ life;”  current balance due is $13 million.

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

• $191 million:  Allscripts, of Cary, NC for information services
• $ 36 million:  Computer Design and Integration, of Teterboro, NJ for information services
• $ 24 million:  Microsoft, of Dallas, TX for information services
• $ 25  million:  Synergy Health North America Inc, of Tampa, FL for sterilization services
• $ 23 million:  Netsource Inc, of NY, NY for consulting services

To read the IRS Form 990 (2022), click here