$3.2M in severance for ex-CEOs of Calgary, Edmonton health boards
Last Updated: Wednesday, October 8, 2008 | 2:24 PM MT
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The chief executive officers of the now-disbanded health regions in Calgary and Edmonton were paid $1.7 million and $1.5 million in severance respectively, Alberta Health Services announced Wednesday.
The eight CEOs were dismissed on July 8, after the provincial government replaced the nine health boards with a single health "superboard" called Alberta Health Services.
According to figures just released, Jack Davis, the former CEO of the Calgary Health Region was paid $1.7 million in severance. That is on top of $4.028 million Davis is taking home under a CHR supplemental executive retirement plan. His pension amounts to about $300,000 annually for the rest of his life.
Sheila Weatherill, former CEO of Edmonton's Capital Health, received $1.5 million in severance.
The remaining severance figures for various boards:
- Alberta Mental Health Board $549,493.
- Northern Lights $562,825.
- David Thompson $893,984.
- Palliser $699,305.
Packages for the CEOs of the Peace Country Health Region and the Alberta Cancer Board are not yet settled.
"The former executives are receiving compensation in accordance with the specific terms of their individual contracts," Board chair Ken Hughes said in a release.
By comparison, Alberta Health Services is now paying the interim chief executive officer, Charlotte Robb, $550,000 a year.
The severance includes a bonus that covers the period from April 1 to the date of termination, along with lost pension for the period of notice.
'It's all about moving forward and not about looking back.'—Ron Liepert, Alberta health minister
Alberta Health Minister Ron Liepert said Wednesday the health authorities were responsible for these severance packages, which the government can't do anything about.
"I'm sure that Albertans are not going to be pleased," he said. "But the reality of it is that these are legal contracts. They were signed by an employee with the health region and signed by the chair of the health region. So the current Alberta Health Services Board has little option but to honour a contract, a legal document."
Liepert said all future contracts for executives with Alberta Health Services will need to be approved by the Minister of Health.
"This is not about pointing fingers. This is about fixing a problem," he said. " We have taken the action by creating the one health board, making the executive team accountable to those of us who are elected.… It's all about moving forward and not about looking back."
Last week, Alberta Auditor General Fred Dunn called for improvements in how compensation is determined for public CEOs.
Dunn also pledged to audit the severance packages released Wednesday.
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