CEO Will Wagnon to depart St. John’s with $ 1 million severance pay | Well being
Will Wagnon will leave St. John’s Health with a $ 1 million severance package after his resignation as CEO, which the hospital board accepted on Monday.
His severance package, negotiated under his terms of the contract, is approximately $ 1 million, making his total hospital compensation just over $ 1.4 million for the six months he served as CEO. elevated.
The hospital board gave no reason for his resignation.
Wagnon was hired in December to appoint retired CEO Dr. To replace Paul Beaupre. He started at St. John’s HCA Healthcare on February 1st.
Wagnon’s last two posts at HCA ran the Henrico, Parham, and Retreat Doctors hospitals in Richmond, Virginia from 2013 to 2019, and before that at Mountainview Hospital in Las Vegas for five years, his LinkedIn profile revealed on Monday. When hired, he said he was excited to take on Jackson as the hospital performed in national quality rankings and patient satisfaction surveys.
“I have the feeling that the quality of care is really high and that there are many awards,” he told News & Guide at the time. “So there are a lot of people who have been doing great things here for a long time.”
However, only a few days before his six-month service anniversary, Wagnon disappeared and the reasons for his departure remain unclear. At the hospital board’s special meeting Monday, Chairwoman Sue Critzer said he had left a section of his contract that allowed him to resign for “good reason”.
In the contract language, the reasons for Wagner’s resignation for an important reason were limited to a significant reduction in the scope of work, a significant reduction in his remuneration or bonuses and a change of location for his position. Hospital attorney Tom Lubnau wrote in an email that Wagner’s resignation was “in full compliance” with the contract; Critzer did not want to confirm whether Wagnon had decided to leave for one of these three reasons.
“I cannot legally speak about certain HR or HR matters, so I have no further comment on them,” she told News & Guide on Monday.
Wagnon did not respond to a request for comment on Tuesday.
As a public hospital that receives taxpayers’ money, St. John’s is subject to the same public record disclosure laws as government agencies. The sunshine laws, which prescribe transparency for public institutions, also offer confidentiality to employees.
Wyoming Statute 16-4-203 requires that employees’ personnel files remain private. “Applications, performance evaluations and school performance data” should only be accessible to employees and their supervisors.
Although the law protects employees’ information, it states that documents that set out the “conditions” of employment are public records, including work agreements and contracts. Under state law, Critzer said, she and other hospital officials could only present Wagner’s contract and severance package, not the reasons for his departure.
Will Wagner’s severance payment be paid?
St. John’s Health officials said Tuesday that they have not yet finalized their severance pay numbers for former CEO Will Wagnon and cannot give a final figure. These are rough calculations based on his employment contract and his termination agreement. His annual base salary was $ 547,715, contributing 6.5% to a 401 (a) retirement account.
His severance package includes 15 months of his base salary and pension, a $ 250,000 relocation allowance, and 15 monthly payments of $ 2,912 for COBRA health insurance, a continuation policy offered to some employees after they leave their jobs.
These numbers may not reflect the final balance sheet owed to Wagnon and will be rounded to the nearest whole number.
Salary while on employment (estimated at six months, although his tenure may have been a few days shorter)
- Salary and pension: $ 291,658
- Bonuses: $ 116,663
- Total: $ 408,321
Severance package estimated from agreement
- Severance payment: $ 729,146
- Moving Allowance: $ 250,000
- COBRA Insurance: $ 43,680
- Total: $ 1,022,826
Including salary, benefits, and bonuses for the time he spent as the head of the hospital, Wagner’s total income for his tenure is approximately $ 1.4 million (see sidebar). His annual base salary was $ 547,715, with the potential for bonuses of up to 40% of his salary.
In accordance with his severance payment agreement, he received the maximum bonus pro rata for the six months of his employment as well as a retirement pension amounting to 6.5% of his salary.
According to the contract, Wagnon should receive a severance payment of 12 months’ salary and health insurance benefits “for good reason”. The agreement, which Wagnon signed when he left, provides for 15 months of his base salary and pension contributions, $ 2,912.70 health insurance, and payout for accrued but unused paid time off.
Public relations consultant Alexa Kinney said in an email that the three months of severance payments, which exceeded those expressly stated in the severance terms of the original contract, should represent a 90-day response period from the hospital after Wagner’s declaration of resignation, Wagnon would still have been employed. The severance payment is paid in three monthly installments.
In addition to his severance payment, Wagnon will receive a $ 250,000 relocation allowance payable within 10 days of the severance payment agreement being signed.
Wagnon’s successor is David Robertson, who has served as an advisor to the hospital board for the past three and a half years. His one-year contract is valued at $ 750,000, which, according to Critzer, roughly matches the salary and bonuses the Hospital would have paid Wagnon during that time.
Before retiring in December, Robertson had a long career as a hospital administrator and ran several rural hospitals in the Midwest.
Most recently, he was a senior executive at Vichern, a consulting firm that supports hospitals in improving performance and systems. As Senior Vice President of Member Connections, he worked with 60 healthcare systems with a total of 220 hospitals.
Although he was enjoying his retirement, he said he had “an extreme affinity” with St. John’s and thought he was in a unique position to help.
“It just felt like it was an opportunity for me to repay the community for a great career that I had,” he said, “and maybe next year to help fill an existing void. “
Two days before Wagner’s departure, the hospital took no steps towards finding a new CEO. If desired, the hospital director Witt Keiffer could use the search company that Wagnon had found without paying the fee, since Wagnon’s tenure was so short.
“I think I … have the level of experience doing the day-to-day things of being a CEO in the healthcare system.” —David Robertson, St. John’s Health
Board members have spoken in the past about the leadership profile they want in a chief executive, which includes hospital management experience, consensus building skills and articulate leadership. Beaupre, the CEO before Wagnon, was also a doctor, and while Crizer said it helps, it’s not a requirement.
“We’ve certainly discussed that in the past,” she says. “We have the feeling that a person with the directly relevant experience and the right personality traits does not necessarily have to be a medical professional.”
Hospital officials say they will focus for the time being on addressing any staff concerns related to the transition and addressing the dual challenges of rising COVID-19 cases and a housing crisis for the workforce. Change at the top, albeit sometimes unexpected, is inevitable for long-standing organizations like St. John’s, which have been around longer than any of their employees, according to Robertson.
Companies that are this well established have a way of weathering storms and he is confident they have the skills and experience required.
“I think I have a certain composure and stability and the level of experience of having done the day-to-day things of a healthcare system CEO that I’m very comfortable with in this role,” he said. “I think this experience will be very helpful in making this transition.”
This article was updated to say St. John’s Health had 90 days to respond after Wagnon announced his resignation. – Ed.