Recession Drags Down CEO
Total Page:16
File Type:pdf, Size:1020Kb
20090622-NEWS--0001-NAT-CCI-CD_-- 6/19/2009 6:46 PM Page 1 ® This issue in two sections (Section 1) Vol. 25, No. 25 JUNE 22 – 28, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Page 3 Plan: Put health Recession drags down Is this part of the solution for ex-Chrysler dealers? centers in ERs CEO pay TechTown’s anchor tenant now eyeing Ann Arbor BY JAY GREENE more importantly, to provide better access for CRAIN’S DETROIT BUSINESS patients.” Full impact may Over the past two years, uncompensated care Top executives of Detroit’s five major hospi- has increased by more than 20 percent for the Inside tal systems are developing a plan to put satel- major health systems in Detroit, including Hen- not have played out lites of federally qualified health ry Ford, William BY RYAN BEENE Lack of Detroit appointee centers into their emergency de- Beaumont Hospitals, CRAIN’S DETROIT BUSINESS may delay mass-transit plan, partments and pay the health cen- The goal is to reduce Detroit Medical ters a monthly fee for each patient “ Center, St. John Health Pay packages for metro Detroit’s 50 top- Page 4 the centers treat. the burden of System and Oakwood compensated CEOs took a hit from the reces- While the plan is in Healthcare. sion in 2008, and some the early stages, the uncompensated According to au- pay experts say execu- Focus executives have met dited financial state- tives could see further several times this care ... but more ments and esti- erosion next year. year and expect to mates, The median overall 12 seldom come up with a strate- importantly, to uncompensated care compensation package celebrated gy before the year’s for the five systems was $2.06 million in 2008, end, said Nancy provide better access grew some 22 per- down 10.6 percent from execs, Schlichting, CEO of cent, to about $810 $2.3 million in 2007, ac- Henry Ford Health Sys- for patients. Page E1, million in 2008 from cording to calculations tem in Detroit. ” $660 million in 2007. by Crain’s. following Page 10. “We are looking at opportunities Nancy Schlichting, Uncompensated care While the median to better integrate the health sys- Henry Ford Health System includes bad debt salary increased slightly, HE’S NO. 1 tems with the federally qualified and charity care. to $762,452 in 2008 from The details: Pay This Just In health centers,” said Schlichting, who chairs In 2008, the combination of rising uncompen- $742,986 the previous and perks for the uncompensated-care committee developing sated care and investment losses wiped out year, CEO bonuses, stock Ford Motor Co.’s Yamasaki; wage complaints the plan. much of the profit margins of the health sys- awards, cash from op- Alan Mulally and “The goal is to reduce the burden of uncom- tions, long-term incen- 49 others, Page rise, employment falls E11 in center pensated care on the health systems — but See Health Centers, Page 17 tives and perks were Complaints for nonpay- section following slashed 14 percent to 46 Page 10. ment of wages continued to TREATING UNCOMPENSATED CARE percent. rise last week and the num- The financial haircuts Also inside ber of employees continued The problem The proposal The planning came as growing scruti- Winners and to fall for Troy-based Yamasa- losers: Who’s up, Hospitals often lose money By locating qualified health centers Talks are in early stages, ny — and sometimes out- ki Associates Inc. — including rage — from the public, down? Page 18. the apparent departure of treating patients in emergency within emergency departments and but executives of Detroit’s Perks: Fringe departments. They can refer paying them set per-patient fees, five major hospital systems politicians and investors partner and Director of De- benefits still patients to federally qualified hospitals could hand off care to the expect a comprehensive pushed company boards abound, Page 18. sign Robert Szantner. health centers, but experts say centers and save money. strategy by year-end. and compensation com- John Bodag, former direc- those patients often will not go. mittees to take a closer tor of interior design, said he look at executive compensation packages. and Szantner spoke last week “The downturn, particularly in Detroit, about a possible project col- has put a spotlight on pay for performance laboration for a company and has caused companies to look at both Szantner is forming. At least the optics around certain programs as well two other employees were as the motivational aspects of those plans,” laid off last week, he said. MEDC: Put venture funds to work said Doug Friske, an executive compensa- Szantner, the highest- tion consultant with Towers Perrin in Chicago ranking registered architect who has worked with local clients. at the firm, could not be For local chiefs, annual cash bonuses took reached Friday. His profile CEO ‘not pleased’ at slow use of state money the biggest hit. page was recently removed Partners Inc. of Winter Park, Fla., are expected to Of the 12 CEOs receiving cash bonuses, the from Yamasaki’s corporate BY TOM HENDERSON CRAIN’S DETROIT BUSINESS get a total of $35.5 million. Individual invest- median value of the bonus was $147,000, Web site, but an employee ment amounts will be dis- answering phones at the See CEO pay, Page 18 Approval is expected Wednesday by the Michi- closed at the meeting. company’s Troy headquar- gan Strategic Fund board for the final four com- Greg Main, president and ters said only that he was not panies to get funding from the $109 million 21st CEO of the Michigan Economic EXECS SEE UPS AND DOWNS at the office. Century Investment Fund. Development Corp., told Yamasaki Associates, the Metro Detroit’s top CEOs saw median salaries ESP Holdings II L.L.C. of Cleveland, Peninsula Crain’s that, now that final rise slightly from 2007 to 2008, but other Capital Partners L.L.C. of Detroit, Triathlon Medical See This Just In, Page 2 recipients have been select- compensation slipped: Ventures L.L.C. of Cincinnati and Arsenal Venture ed, it’s time for venture capi- 2007 2008 Change tal and private equity funds Salary $742,986 $762,452 2.6% that have received funding to Cash be more active in investing it bonus $270,011* $147,000* (45.6%) in state companies. Main Main said he has been disappointed at the Overall package $2.3 million $2.06 million (10.6%) pace of investing thus far, slow economy or not. Of the $73.5 million that had been committed by * Median for the 17 CEOs who received cash bonuses the 21st Century Investment Fund prior to in 2007 and the 12 who did in 2008. Note: Change in overall compensation was calculated NEWSPAPER before dollar figures were rounded. See Venture, Page 16 20090622-NEWS--0002-NAT-CCI-CD_-- 6/19/2009 5:51 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS June 22, 2009 Aastrom’s cardiac repair cells, For more coverage, see Amy THIS JUST IN SPECIAL ONLINE EDITIONS COMING with patient enrollment resum- Lane’s blog at www.crainsde- Next week’s print edition of Crain’s Detroit Business will cover the ing at five clinical sites. troit.com/lane. ■ From Page 1 weeks of June 29 and July 6, and a special digital “holiday edition” will The trial had been on hold fol- — Amy Lane be available online beginning the evening of July 4. lowing a patient’s death, which 54-year-old architectural firm We will publish three additional online-only digital editions in or near later was determined to be unre- Crestmark Bank forms division founded by the late Minoru Ya- holiday weeks this year. The digital issue will be in a format that readers lated to experimental treatment. masaki, has faced at least four law- can print for portability and will resemble the print edition, including — Tom Henderson to serve staffing companies advertising. suits within the past year for more Troy-based Crestmark Bank has If you are a paid subscriber who is already registered on our Web site, than $2.5 million in nonpayment formed a specialty finance divi- you don’t need to do anything more. You will automatically receive an e- Bills would combine DNR, DEQ to contractors and consultants on sion that funds the cash-flow various projects. Szantner is a de- mail link to this digital edition and the three additional digital editions Moves to combine the Michigan planned in or near holiday weeks this year. (See the advertisement on the needs of the staffing industry, fendant in one of those lawsuits. Department of Natural Resources back cover.) and it’s hired a veteran of asset- As of last week, it also faces 11 and the Michigan Department of En- based lending to the industry to Paid subscribers who have not registered on our Web site can go to complaints before the Michigan vironmental Quality are gaining serve as group president. crainsdetroit.com/digitaledition to get set up. You will need your Department of Energy, Labor and ground in the Legislature. subscriber number from the mailing label of your print edition and your James Rothman joined Crest- Economic Growth Wage and Hour The state House last week postal ZIP code. mark after serving as president of Division for nonpayment of passed a budget bill providing Florida-based Capital TempFunds. At the same time, you’ll be able to subscribe to our free daily, weekly wages to employees. funding for a new Michigan Depart- and specialty e-mail newsletters.