Executive Compensation at Kaiser Health (2022)

Kaiser Health is one of many terms (Kaiser, Kaiser Permanente, etc) that refers to one of the nation’s largest not-for-profit health care insurers and providers with more than 12.5 million members (primarily in California but also in Hawaii, Colorado, Georgia, Oregon, Washington, Virginia, Maryland, and the District of Columbia). With 40 hospitals, more than 600 medical offices, and about 236,000 employees, Kaiser Health is considered one of the leaders in the industry.

Kaiser Health is comprised of the health plan (Kaiser Foundation Health Plan, Inc), the hospitals (Kaiser Foundation Hospitals) and the medical groups (Permanente Medical Groups) although there are numerous non-profits that make up the entire organization. The focus of this post is on the executive compensation reported on the Form 990 of the Kaiser Foundation Health Plan, Inc. (KFHP) because this organization reports the compensation for the key executives including the Chairman and CEO (as opposed to a related organization reporting compensation from a related organization).

Key financial information reported on the Form 990 (2022) includes the following:

Total revenue was $71 billion from three primary sources:  member dues, which appears to be the organizations within the Kaiser Health system ($47 billion); medicare ($18 billion), and other program services and supplemental revenue ($6 billion).

Expenses totaled $71 billion with the largest expenses reported to be:  basic contractual payments ($45 billion), supplies and purchased services ($18 billion), office-related expenses ($4 billion), and compensation ($4 billion).

30,111 employees received $4 billion in compensation, which equates to an average compensation of about $126,000.  However, only 12,650 employees received more than $100,000 in compensation with the 59 most highly compensated employees reported to be:

• $13,697,450:  Gregory Adams, Chairman and CEO
• $ 7,910,976:  Kimberly Horn, EVP, Group President, MOC
• $ 5,606,654:  Arthur Southam, EVP, Health Plan Operations
• $ 5,509,673 :  Kathryn Lancaster, EVP and CFO
• $ 5,163,376:  Mark Zealman, SVP, General Counsel and Secretary
• $ 3,995,094:  Janet Liang, Regional President, Northern CA
• $ 3,366,709:  Chuck Bevilacqua, SVP, Health Plan Service and Admin
• $ 2,717,557:  Carrie Plietz, Regional President, NCAL
• $ 2,531,985:  Julie Miller-Phipps, Region President, Southern CA
• $ 2,488,092:  Yazdi Bagli, EVP, Enterprise Business Services
• $ 2,078,732:  Christian Meisner, SVP, Chief HR Officer
• $ 2,002,723:  Wade Overgaard, SVP, Health Plan Ops – CA
• $ 1,984,879:  Bechara Choucair, SVP, Chief Health Officer
• $ 1,979,029:  Paul Swenson, EVP, Chief Admin Officer
• $ 1,856,354:  Thomas Henenburg, Interim Regional President – NCA
• $ 1,674,679:  Vanessa Benavides, SVP, Chief Compliance and Privacy Officer
• $ 1,608,057:  Chandrika Bhalla, SVP, CFO – NCAL
• $ 1,601,491:  Diane Comer, EVP, Chief Info and Tech Officer
• $ 1,553,861:  Andrew Bindman, EVP, Chief Medical Officer
• $ 1,524,619:  Thomas Meier, SVP, Corporate Treasurer
• $ 1,509,533:  Laurel Junk, SVP, Enterprise Shared Services
• $ 1,479,748:  Greg Christian, Regional President – HI
• $ 1,408,088:  Mick Diede, SVP, Chief Actuary
• $ 1,319,817:  Michael Rowe, SVP, Chief Business Development and Strategy Executive
• $ 1,316,567:  Arlene Peasnell, SVP, HR and Labor Relations
• $ 1,263,261:  Anthony Barrueta, SVP, Government Relations
• $ 1,155,617:  James Simpson, Regional President, GA
• $ 1,113,545:  Alfonse Upshaw, SVP, Corporate Controller, CAO
• $ 1,074,815:  Donald Orndoff, SVP, NFS
• $ 1,053,693:  George Disalvo, SVP, CFO Southern CA
• $ 1,019,386:  Thomas Curtin Jr, SVP, National Sales and Account Management
• $ 1,031,544:  Mary Beth Lang, SVP, Chief Pharmacy Officer
• $   937,500:  Ronald Vance, Interim Regional President
• $   779,768:  Catherine Hernandez Tirey, SVP, Chief Communications Officer
• $   726,593:  Marcus Hoffman, SVP, CFO – SCAL & Hawaii
• $   665,062:  Ryan Jenson, Interim Corp Controller and CAO
• $   582,379:  Jennifer Goldberg, Assistant Secretary
• $   575,403:  Philip Young Jr, Assistant Secretary
• $   $467,651:  Katherine Ritchey, Assistant Secretary
• $   434,667:  John Yamamoto, Assistant Secretary
• $   358,461:  Hong-Sze Yu, VP, Board and Corporate Gov, and Asst Secretary
• $   302,568:  Margaret Porfido, Director
• $   289,424:  Kristin Bear, Assistant Secretary
• $.  282,894:  David F Hoffmeister, Director
• $   276,915:  Ramon F Baez, Director
• $   271,316:  Judith A Johansen, Director
• $   250,262:  Matthew T Ryan, Director
• $   248,812:  Richard Daniels, EVP, Former Chief Information Officer
• $   247,826:  Leslie S Heisz, Director
• $   241,046:  Jeffrey E Epstein, Director
• $   239,975:  A Eugene Washington, Director
• $   239,937:  Richard P Shannon, Director
• $   235,931:  Jenny J Ming, Director
• $   228,631:  Bernice Gould, Assistant Secretary
• $   227,197:  David J Barger, Director
• $   243,230:  Regina M Benjamin, Director
• $   172,130:  Maryann Bodayle, Secretary
• $   157,607:  Rochelle Roth, Assistant Secretary
• $   146,451:  William Caswell, Former SVP, Operations

As illustrated above, the 69 most highly compensated employees received $105 million in compensation.  39 of the 66 (59%) of the most highly compensated employees are male while 27 (41%) are female.  6 of the 10 most highly compensated employees are male while 4 are female.

16 of the most highly compensated employees received nearly $300 million in compensation from 2017-2022 (and several have only been employed by the organization for 3 years):

Gregory Adams:  Total Compensation 2017-2022:  $70 million

• 2022:  $13,697,450
• 2021:  $15,562,224
• 2020:  $17,268,060
• 2019:  $ 6,213,257
• 2018:  $10,226,544
• 2017:  $ 6,589,138

Arthur Southam:  Total Compensation 2017-2022:  $30 million

• 2022:  $5,606,654
• 2021:  $5,224,405
• 2020:  $4,886,355
• 2019:  $5,837,783
• 2018:  $3,944,031
• 2017:  $4,007202

Kathryn Lancaster:  Total Compensation 2017-2022:  $30 million 

• 2022:  $5,509,673
• 2021:  $5,027,913
• 2020:  $5,086,656
• 2019:  $6,720,335
• 2018:  $3,574,418
• 2017:  $3,723,333

Richard Daniels:  Total Compensation 2017-2022: $18 million

• 2022:  $   248,812
• 2021:  $2,023,403
• 2020:  $6,674,960
• 2019:  $3,958,930
• 2018:  $3,414,348
• 2017:  $1,961,118

Janet Liang:  Total Compensation 2017-2022:  $23 million 

• 2022:  $3,995,094
• 2021:  $4,939,343
• 2020:  $5,580,333
• 2019:  $3,542,706
• 2018:  $2,478,669
• 2017:  $2,003,262

Julie Miller-Phipps:  Total Compensation 2017-2022:  $18 million 

• 2022:  $2,531,985
• 2021:  $3,535,603
• 2020:  $4,643,773
• 2019:  $3,676,934
• 2018:  $1,989,458
• 2017:  $1,813,739

Kimberly Horn:  Total Compensation 2020-2022:  $17 million  

• 2022:  $7,910,976
• 2021:  $4,725,013
• 2020:  $4,300,195

Chuck Bevilacqua:  Total Compensation 2019-2022:  $10 million  

• 2022:  $3,366,709
• 2021:  $2,439,859
• 2020:  $2,557,223
• 2019:  $2,040,727

Mark Zealman:  Total Compensation 2020-2022:  $11 million

• 2022:  $5,163,376
• 2021:  $2,973,295
• 2020:  $3,117,144

Carrie Plietz:  Total Compensation 2020-2022:  $5 million

• 2022:  $2,717,557
• 2021:  $1,895,063
• 2020:  $   619,653

Yazdi Bagli:  Total Compensation 2020-2022:  $6 million

• 2022:  $2,488,092
• 2021:  $1,860,848
• 2020:  $1,588,985

Christian Meisner:  Total Compensation 2020-2022:  $7 million

• 2022:  $2,078,732
• 2021: $ 2,403,336
• 2020:  $2,040,901

Wade Overgaard:  Total Compensation 2017-2022:  $12 million

• 2022:  $2,002,723
• 2021:  $2,318,134
• 2020:  $2,360,352
• 2019:  $2,242,484
• 2018:  $1,671,033
• 2017:  $1,749,087

Bechara Choucair:  Total Compensation 2017-2022:  $8 million

• 2022: $1,984,879
• 2021:  $   657,131
• 2020:  $1,639,981
• 2019:  $1,310,469
• 2018:  $1,203,694
• 2017:  $1,144,012

Paul Swenson:  Total Compensation 2017-2022:  $11 million

• 2022: $1,979,029
• 2021:  $2,196,305
• 2020:  $1,929,722
• 2019:  $2,098,373
• 2018:  $1,515,939
• 2017:  $1,757,238

Thomas Hanenburg:  Total Compensation 2018-2022:  $8 million

• 2022: $1,856,354
• 2021:  $2,068,523
• 2020:  $1,748.080
• 2019:  $1,504,221
• 2018:  $1,219,977

The Form 990 also reports:

• First class or charter travel was paid for by KFHP. According to the 990 “first class travel is permissible as an ordinary business expense for all Board of Directors, Chief Executive Officers, and 16 other officers…”
• Travel for companions was paid for by KFHP, “as approved by senior management infrequently..”
• Personal services were paid for by KFHP.  Specifically, “car and security service is approved for senior management in connection with business related travel.  The CEO’s non business transportation is included in compensation tax indemnification and gross up payments.”
• KFHP made tax indemnification or gross up payments – “limited to partial tax gross up under relocation policy, CEO transportation, and security and as approved on a limited basis by senior management.
• A housing allowance was provided on a limited basis to 3 officers for relocation.
• For information on severance payments and supplemental non-qualified retirement plan contributions, see the Form 990, Schedule J, Part III, Supplemental Information.
• The organization has $9.7 billion in net assets, compared to $5.9 billion at the beginning of the year. The $3.8 billion change resulted from changes in pension and retirement liabilities and capital transfers that were offset by losses on the sale of investments and temporary impairments and excess expenses over revenue in 2022.  For more detail, see the Form 990, Schedule O.

3,235 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $23 billion:  Kaiser Foundation Hospitals, of Pasadena, CA for medical services
• $15 billion:  The Permanente Medical Group, of Oakland, CA for medical services
• $12 billion:  S. California Permanente Medical Group, of Pasadena, CA for medical services
• $335 million:  Hawaii Permanente Medical Group, of Honolulu, HI for medical services
• $290 million:  UCSF Medical Center, of San Francisco, CA for medical services

As illustrated above, the highest compensated contractors appear to be related or affiliated with the organization.

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