Tahoe Forest Hospital CEO awarded roughly $47K in incentives
TRUCKEE, Calif. — Tahoe Forest Hospital District CEO Bob Schapper will receive a roughly $47,000 incentive after meeting financial and goal benchmarks this past year.
In a 4-1 vote Tuesday night, the TFHD board of directors approved Schapper receiving 78.5 percent of 15 percent of his base pay as a performance-based incentive.
With Schapper’s base pay at $404,277.20, that translates to a roughly $47,000 bump for work during the 2013-14 fiscal year, according to the district.
Board president John Mohun was the lone “no” vote.
“The way the contract was written was that there would be base pay and that some of the compensation was tied to hitting financial targets, and then once that was met, a portion was tied to hitting some meaningful strategic goals,” director Karen Sessler explained at Tuesday’s board meeting. “This is a compensation philosophy that many organizations choose to employ, and we decided as a board that it was in the district’s best interest to have this form of at-risk compensation to motivate and achieve clear objectives that the board discussed at one time.”
For the financial target, the district budgeted earnings before interest, depreciation and amortisation (EBITDA) at $1.94 million for fiscal year 2014, which the district surpassed.
A $3.71 million profit — $1.77 million above budget — was achieved by the end of that fiscal year, according to TFHD, which directors said points to the efficiency of hospital management and operations.
In addition, eight goals were established by the board at the beginning of the year for Schapper, according to the district, one of which was not evaluated, as it no longer applies.
When asked what those goals were, Paige Nebeker Thomason, director of marketing and communications for the district, said they have not been made public since they potentially deal with personnel issues.
“He was quite successful in achieving them, but not fully,” said director Roger Kahn.
For that reason, Schapper was not awarded the full incentive compensation amount for which he was eligible, Kahn said.