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CEO/President Executive Compensation Committee
Monday, June 22, 2020
9:30 a.m.
AGENDA
LEE MEMORIAL HEALTH SYSTEM BOARD OF DIRECTORS PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE MEETING JUNE 22, 2020 AT 9:30 A.M. Location: 13685 Doctors Way, Fort Myers, FL, 33912 Board Office Teleconference Dial-In # 1 415 655 0002 Access Code 479 493 525
1) Call to Order and Introductory Comments – (David Collins, Board Chair, Committee
Chair)
2) Public Input Statement (Packet page 4)
3) Preliminary Comments – (Board Counsel) (Packet page 5)
a. Sunshine
b. Committee Limited Mandate
4) Review by Counsel of Contract Provisions contained in President/CEO Employment
Agreement (George Knott, Board Counsel) (Packet pages 6-17)
5) Discussion of Gallagher Report (Arthur J. Gallagher & Co.) – (Mike Wukitsch, CHRO) –
(Packet pages 27-56)
a. Gallagher Compensation Adjustment Report
b. Supplemental Information requested from Gallagher
c. Current Trends in CEO Compensation
6) Committee’s Recommendation Regarding Employment Agreement (only)
7) Review of Short-Term and Long-term Incentive Plans (George Knott, Board Counsel)
(Packet pages 18-21)
8) Review by Chief Human Resources Officer (CHRO) of current President/CEO Short
Term and Long Term Incentive Plan (Mike Wukitsch, CHRO) (Packet pages 22-25)
a. President and CEO Incentive Performance Metrics
b. Review of Short Term and Long Term Incentives – Are they reflective of progress
of the system
c. System Strategic Scorecard – Timeline for approval
d. In house capabilities
9) Additional Information needed for Committee consideration of Short Term and Long
Term Incentive Plan
a. In House Capability
b. Best Practice regarding contract extension.
10) Next Steps – Recommendations to Full Board (David Collins, Board Chair, Committee
Chair)
11) Adjourn
Date of Next Meeting TBD
Statement regarding PUBLIC INPUT
All public input will take place at the Board of Directors Meetings, (not Committee Meetings). At that time input is limited to three minutes and a “Request to Address the Board of Directors” card should be completed and submitted to the Board Staff prior to meeting. Non-Committee members are present to observe only and not to participate. Please contact the Board Office with any questions. (239) 343-1500
Lee Memorial Health System Board of Directors
PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE
PRELIMINARY COMMENTS
George Knott, Board Counsel
Lee Memorial Health System Board of Directors
PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE
REVIEW BY COUNSEL OF CONTRACT PROVISIONS
George Knott, Board Counsel
Lee Memorial Health System Board of Directors
PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE
REVIEW BY CHIEF HUMAN RESOURCES
OFFICER OF CURRENT CONTRACT
Mike Wukitsch, Chief Human Resources
Officers
PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE TOPIC MINUTE EXCERPTS Thursday June 29,2017 CEO COMPENSATION PLAN Steve Sullivan of Pearl Meyer presented the CEO Incentive Plan. A motion was made by David Collins to approve the CEO Incentive Plan to have threshold and target goals of up to 30% with an additional 15% stretch goal incentive to be included in the plan with the four plan metrics as follows: Quality Reduce the rate of 30-day Medicare readmissions Service Increase the percent of patients rating Lee Health as a “9” or a “10” Population Health Increase the number of patient lives under management in alternative payment models Finance Increase operating margin The motion was seconded by Stephen Brown and carried with Therese Everly opposed.
Thursday November 29, 2018 PRESIDENT/CEO INCENTIVE COMPENSATION PLANS A motion was made by Donna Clarke to approve, after discussion of proposed options, a Short Term Incentive Plan for FY2019 and to authorize, upon legal review and approval, the Chairman of the Board for LMHS to execute the FY2019 Short Term Incentive Plan with a 3.25% operating margin metric. The motion was seconded by Dr. Cohen. The motion carried with Therese Everly opposed. Chris Hansen was not present for the vote. A motion was made by David Collins to approve the Short Term Incentive Plan Measurement as: 50% of Incentive Awarded based on the Quality Goal Achievement: Medicare all Cause 30-Day Readmission Rate 4th Quarter equal to 15.5% 50% of Incentive Awarded based on the Service Goal Achievement: Patient Experienced IP Acute Care HCAPHPS Top Box – 73.7% The motion was seconded by Jessica Carter Peer and carried with no opposition. A motion was made by Dr. Cohen to approve the Long Term Incentive’s Financial Goal Achievement Measurement as stated: Year 1: Financial Goal approved by Board in FY2019 Short Term Incentive Plan Year 2 and 3: One quarter percent greater than system operating margin target established by the Board The motion was seconded by Donna Clarke. The motion carried with Therese Everly opposed. A motion was made by Dr. Cohen to approve the Long Term Incentive’s Quality Goal Achievement Measurement with option #1 CMS Star Rating with the modifications: Year 1: Two out of Three hospitals achieve 3 STARS with no hospitals achieving less than 2 STARS Year 2: Two out of Three hospitals achieve 3 STARS for sustained performance with no hospitals achieving less than 2 STARS Year 3: Two out of Four hospitals achieve 4 STARS with no hospitals achieving less than 3 STARS The motion was seconded by Stephen Brown and carried with Jessica Carter Peer, Therese Everly, Nancy McGovern and David Collins opposed. An amended motion was made by Donna Clarke to approve the Long Term Incentive’s Growth Goal Achievement Measurement Option #2: Alternate payer model shared savings % Year 1: 4% of Benchmark Savings (based on PY18) Year 2: 4.5% of Benchmark Savings (based on PY19) Year 3: 5% of Benchmark Savings (based on PY20)
BOARD OF DIRECTORS MEETING MINUTES
2
With the modification to input the methodology to adjust years 2 and 3 based on changes from CMS and will be clarified before the contract is signed. The motion was seconded by Chris Hansen and carried with David Collins opposed. Nancy McGovern recused herself from voting.
Thursday October 31, 2019 COMMITTEES SUMMARIES AND RECOMMENDATIONS A motion was made by Donna Clarke to approve the President / CEO Short Term Incentive Plan metrics for FY2020 as revised by the full Board of Directors and to authorize, upon final legal review and approval, the Chairman of the Board for Lee Health to execute the FY2020 Short Term Incentive Plan. The motion was seconded by Stephanie Meyer and carried with Therese Everly opposed.
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PRESIDENT / CHIEF EXECUTIVE OFFICERTOTAL CASH COMPENSATION REVIEW
LEE HEALTHFort Myers, Florida
John Allison | Senior ConsultantMay 2020
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Table of Contents
I. IntroductionII. MethodologyIII. Cash Compensation Analysis
Appendix A: Peer Group ListsAppendix B: Market DataAppendix C: President / CEO Base Salary
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Introduction
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Introduction
Lee Health (LH) is a public health care system that serves the needs of southwest Florida and includes the following facilities• Four acute care hospitals
‒ Cape Coral Hospital (GCH)‒ Lee Memorial Hospital (LMH)‒ HealthPark Medical Center (HPMC)‒ Gulf Coast Medical Center (GCMC)
• Two specialty hospitals‒ Golisano Children's Hospital of Southwest Florida ‒ The Rehabilitation Hospital
• Other healthcare facilities and services, including a home health agency, a nursing home, outpatient treatment and diagnostic centers, and physician offices
• In the most recent fiscal year, LH had $2.0B in net revenue
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Background
Lee Health engaged Gallagher’s Human Resources & Compensation
Consulting practice to conduct a comprehensive review of total cash compensation for its CEO, to• Assess alignment of compensation with the executive compensation philosophy• Determine if base salary and total cash compensation is competitive with market practices• Help the Committee make well informed decisions on CEO compensation• Provide the Committee with the comparability data it needs to establish a rebuttable
presumption of reasonableness
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LH’s Executive Total Compensation Philosophy
LH has an executive compensation philosophy, the key points of which are described below• Compensation positioned at the median of the peer group • President/Chief Executive Officer’s compensation compared with a combination of National,
Southeast Regional, and Florida peer groups of systems and hospitals similar to LH in terms of size and organizational complexity
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Methodology
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Methodology
Project
Planning
Data
Collection
Analysis
Market
Comparison
Final
Report
Gallagher completed the following steps for this study
Collected and reviewed background data, including
Organization financial and demographic data
Current compensation data
Developed custom peer groups (national, regional, and state) of similar
healthcare organizations from our proprietary database in compliance with
LH’s compensation philosophy (see Appendix A)
Compiled cash compensation data from the custom peer groups,
supplemented with published survey data
Prepared a market chart summarizing the compensation data (see Appendix B)
Compared the CEO’s base salary, incentives, and total cash compensation to
peer group levels
Prepared this report to document our analysis and findings
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Data Sources
Gallagher relied on the following data sources to complete this review• Gallagher proprietary database, which includes data from over 550 health care systems and
2,000 hospitals• Published survey data
‒ US IHN Healthcare Hospital Executives Survey, Mercer Human Resource Consulting (2019)
Additional information is provided in the appendices
• Peer group lists are provided in Appendix A
• Market chart showing detailed data is provided in
Appendix B
All data has been updated to an
effective date of June 1, 2020
by an annualized factor of 3.0%
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National Peer Group Description
The following table shows the characteristics of the organizations that are included in the national peer group
Peer Group Characteristics
Custom National
Peer Group
• Custom peer group of independent health systems comparable to LH in complexity and in size as measured by total
net operating revenue ranging from approximately half the size of LH to twice its size
− Used $2.0B net revenue for LH
• Excludes subsidiary systems, children’s organizations, and cancer centers
The final peer groups are shown in Appendix A
Initial Pool All Healthcare organizations Over 3,000
Health Systems Independent systems Over 550
Size Revenue = ½ to 2X the size of LH 105
Final Selection Final selection adjusted for revenue 81
Southeast Region and Florida peer groups developed in a similar manner
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Cash Compensation Analysis
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Base Salary Analysis
The graph below compares the base salary for LH’s President / CEO to the
median of the market – LH’s targeted compensation philosophy
• Peer group data represents equally weighted national, regional, and state data• The President / CEO’s base salary is 6% below median
President / CEO
LH Salary $1,054,019
Peer Group Median $1,122,000
LH as a % of Median 94%
94%
0%
20%
40%
60%
80%
100%
120%
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Annual Incentive Analysis
Prevalence• The healthcare industry has increased its use of annual incentive plans and our 2019
National Leadership Survey indicated that 93% of health systems offer annual incentives to executives
• Incentive prevalence in LH’s custom national peer group was slightly higher, with 96%
incentive plan prevalence for the CEO; regional prevalence was slightly lower at 87%
Opportunity Levels• The table below illustrates opportunity levels within the peer group, for those organizations
that offer annual incentives
• Opportunity levels for LH’s President / CEO are 5% below peer group data
Lee Health
Peer Group
(National and Regional)
Position Target Maximum Target Maximum
President / CEO 30% 45% 35% 50%
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Total Annual Cash (TAC) Analysis
The graph below compares total annual cash (TAC) for LH’s President / CEO
to the median of the market – LH’s targeted compensation philosophy
• Peer group data represents equally weighted national, regional, and state data• TAC includes base salary plus annual incentives• The President / CEO’s target TAC is 2% below median
‒ Actual TAC (no incentive payout) is 24% below median
President / CEO Target President / CEO Actual
LH TAC $1,370,225 $1,054,019
Peer Group Median $1,393,000 $1,393,000
LH as a % of Median 98% 76%
98%
76%
0%
20%
40%
60%
80%
100%
120%
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Long-Term Incentive Analysis
Prevalence• Our 2019 National Leadership Survey indicated that 24% of health systems offer long-term
incentives to executives• LTI prevalence in LH’s custom national peer group was higher, with 34% LTI prevalence for
the CEO; regional prevalence was at 32%
Opportunity Levels• The table below illustrates LTI opportunity levels within the peer group, for those
organizations that offer long-term incentives
• LTI opportunity levels for LH’s President/CEO are slightly below peer group data, for those
organizations that offer long-term incentives
Lee Health
Peer Group
(National)
Peer Group
(Regional)
Position Target Target Target
President / CEO 15% 20% 18%
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Total Direct Cash (TDC) Analysis
The graph below compares total direct cash (TDC) for LH’s President / CEO to
the median of the market – LH’s targeted compensation philosophy
• Peer group data represents equally weighted national, regional, and state data• TDC includes base salary plus annual incentives plus long-term incentives• The President / CEO’s target TDC is 7% above median
‒ Actual TDC (no incentive payout) is 26% below median
President / CEO Target President / CEO Actual
LH TDC $1,528,328 $1,054,019
Peer Group Median $1,422,000 $1,422,000
LH as a % of Median 107% 74%
107%
74%
0%
20%
40%
60%
80%
100%
120%
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Appendix APeer Group Lists
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Comparability Data
Following IRS guidance to create a “rebuttable presumption of reasonableness,” compensation
arrangements must be based on appropriate comparability data. Appropriate data includes
compensation paid by similarly situated organizations, both taxable and tax-exempt, for functionally
comparable positions; the availability of similar services in the geographic area; and compensation
surveys compiled by independent firms.
As a leading independent consulting firm specializing in healthcare compensation, Gallagher
Integrated has the most robust and complete healthcare compensation database in the country. As
such, we have the greatest access to comparability data to comply with the IRS guidelines.
To comply with these guidelines, LH’s compensation philosophy calls for a peer group which consists
of national, regional, and state healthcare organizations similar to LH in size and complexity.
The peer group lists that follow have been carefully constructed to ensure close adherence to the
parameters of LH’s compensation philosophy as well as IRS guidelines; paying particular attention to:
• Include health systems of comparable size
− Revenue ranging from about half the size of LH to twice its size
• Exclude:
− Children’s hospitals and cancer centers
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National Peer Group
Organization City State Net Revenue Beds FTEsUniversity Hospitals Cleveland OH $3,900.0 2,393 19,066
Virginia Commonwealth University Health System (VCU) Richmond VA $3,691.0 971 10,905
Centura Health Centennial CO $3,629.0 2,062 25,845
Ochsner Health System New Orleans LA $3,407.2 1,127 15,493
Inova Health System Falls Church VA $3,402.8 1,735 14,294
Scripps Health San Diego CA $3,384.7 1,182 13,197
Orlando Health Orlando FL $3,283.3 1,905 16,817
OSF Healthcare System Peoria IL $3,271.7 1,452 17,754
Piedmont Healthcare Atlanta GA $3,146.6 1,471 15,571
Franciscan Health Mishawaka IN $3,144.5 2,071 14,784
University of Texas Southwestern Medical Center Dallas TX $3,126.9 608 15,230
UCHealth Aurora CO $3,105.8 1,820 14,324
Baptist Health South Florida Miami FL $3,024.9 1,974 18,038
Lehigh Valley Health Network Allentown PA $2,928.0 1,495 16,232
Allegheny Health Network Pittsburgh PA $2,912.9 1,919 16,556
CareGroup Healthcare System Boston MA $2,876.8 1,259 12,760
Presence Health Chicago IL $2,800.0 3,182 9,991
Hartford HealthCare Hartford CT $2,800.0 1,474 16,109
The Carle Foundation Urbana IL $2,608.0 413 7,074
UW Health Madison WI $2,550.0 1,327 11,417
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National Peer Group
Organization City State Net Revenue Beds FTEsSCL Health Broomfield CO $2,530.7 1,674 15,655
Marshfield Clinic Marshfield WI $2,456.0 513 8,448
Norton Healthcare Louisville KY $2,450.6 1,511 12,015
UMass Memorial Health Care Worcester MA $2,447.1 1,009 12,906
Avera Health Sioux Falls SD $2,372.4 1,932 11,688
St. Luke's Health System Boise ID $2,255.1 885 12,650
Community Health Network Indianapolis IN $2,235.0 1,129 11,943
University of Miami Health System Miami FL $2,207.0 600 12,322
MemorialCare Fountain Valley CA $2,192.0 1,375 8,693
WellSpan Health Gettysburg PA $2,179.2 1,115 13,799
Westchester Medical Center Health Network Valhalla NY $2,178.4 1,503 9,692
Multicare Health System Tacoma WA $2,167.5 1,358 12,927
Baptist Memorial Health Care Corporation Memphis TN $2,156.2 2,350 9,818
NorthShore University HealthSystem Evanston IL $2,153.7 680 8,434
Lifespan Providence RI $2,153.0 1,070 10,185
Cone Health Greensboro NC $2,148.5 1,057 10,212
Legacy Health System Portland OR $2,118.0 1,249 10,809
Kaleida Health Buffalo NY $2,100.0 1,079 8,422
Methodist Le Bonheur Healthcare Memphis TN $2,090.1 1,399 11,667
UC Health Cincinnati OH $2,043.6 927 7,905
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National Peer Group
Organization City State Net Revenue Beds FTEsPremier Health Dayton OH $2,000.0 1,666 12,586
University of Vermont Health Network Burlington VT $1,995.0 1,003 11,791
Jackson Health System Miami Fl $1,975.6 2,137 12,859
Dartmouth-Hitchcock Medical Center Lebanon NH $1,969.5 396 9,112
Health First Rockledge FL $1,934.0 900 7,399
TriHealth Cincinnati OH $1,875.2 776 9,038
Vidant Health Greenville NC $1,869.1 1,315 11,813
University of Utah Health Care Salt Lake City UT $1,857.0 738 10,257
Parkview Health Fort Wayne IN $1,853.2 892 9,838
ChristianaCare Wilmington DE $1,836.0 969 10,248
Baystate Health Springfield MA $1,827.0 879 9,388
Carilion Clinic Roanoke VA $1,802.0 1,114 11,513
Mission Hospital Asheville NC $1,799.0 763 7,727
Franciscan Missionaries of Our Lady (OSF) Health System Baton Rouge LA $1,777.0 1,788 11,985
Kettering Health Network Dayton OH $1,756.6 1,346 10,586
Main Line Health Radnor PA $1,750.0 1,387 8,495
Tower Health West Reading PA $1,738.0 757 7,370
University of Texas Medical Branch Galveston TX $1,712.3 413 13,188
Saint Luke's Health System Kansas City MO $1,710.9 1,134 9,527
Community Medical Centers - Corporate Fresno CA $1,700.0 985 7,378
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National Peer Group
Organization City State Net Revenue Beds FTEsNorthern Light Health Brewer ME $1,672.1 1,092 9,365
University of Iowa Hospitals and Clinics Iowa City IA $1,666.4 811 11,300
CoxHealth Springfield MO $1,568.2 900 12,000
Lahey Health Burlington MA $1,506.0 345 5,896
LCMC Health New Orleans LA $1,500.0 1,070 9,405
UF Health Gainesville FL $1,489.7 850 9,151
St. Elizabeth Healthcare Edgewood KY $1,483.6 862 7,210
The Nebraska Medical Center Omaha NE $1,444.0 668 6,721
Harris Health System Houston TX $1,434.0 639 8,598
Albany Medical Center (System) Albany NY $1,375.1 734 8,292
Virtua Health Marlton NJ $1,364.6 894 6,469
Hawaii Pacific Health Honolulu HI $1,338.4 556 5,981
WakeMed Health & Hospitals Raleigh NC $1,321.0 873 7,619
Summa Health Akron OH $1,306.9 966 5,897
Covenant Health Knoxville TN $1,297.0 1,508 7,654
Albert Einstein Healthcare Network Philadelphia PA $1,261.9 942 7,587
Care New England Health System Providence RI $1,259.7 960 8,171
Renown Health Reno NV $1,255.6 1,106 6,748
Hoag Memorial Hospital Presbyterian Newport Beach CA $1,200.0 500 6,000
The MetroHealth System Cleveland OH $1,199.0 491 6,537
Grady Health System Atlanta GA $1,197.0 702 6,250
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Southeast Region Peer Group
Organization City State Net Revenue Beds FTEsVirginia Commonwealth University Health System (VCU) Richmond VA $3,691.0 971 10,905
Emory Healthcare Atlanta GA $3,657.7 1,488 17,313
Duke University Health System Durham NC $3,597.0 1,496 17,471
UAB Medicine Birmingham AL $3,404.5 1,573 18,000
Inova Health System Falls Church VA $3,402.8 1,735 14,294
Orlando Health Orlando FL $3,283.3 1,905 16,817
Piedmont Healthcare Atlanta GA $3,146.6 1,471 15,571
BayCare Health System Clearwater FL $3,057.6 3,055 15,674
Baptist Health South Florida Miami FL $3,024.9 1,974 18,038
Northside Hospital System Atlanta GA $2,911.5 971 11,885
Wake Forest Baptist Health System Winston-Salem NC $2,857.4 1,371 17,286
Baptist Health Louisville KY $2,725.1 2,163 13,676
Norton Healthcare Louisville KY $2,450.6 1,511 12,015
University of Miami Health System Miami FL $2,207.0 600 12,322
WVU Medicine Fairmont WV $2,172.7 1,450 10,683
Baptist Memorial Health Care Corporation Memphis TN $2,156.2 2,350 9,818
Cone Health Greensboro NC $2,148.5 1,057 10,212
Methodist Le Bonheur Healthcare Memphis TN $2,090.1 1,399 11,667
Memorial Healthcare System Hollywood FL $2,014.0 1,864 10,669
Jackson Health System Miami Fl $1,975.6 2,137 12,859
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Southeast Region Peer Group
Organization City State Net Revenue Beds FTEsHealth First Rockledge FL $1,934.0 900 7,399
Vidant Health Greenville NC $1,869.1 1,315 11,813
Carilion Clinic Roanoke VA $1,802.0 1,114 11,513
Mission Hospital Asheville NC $1,799.0 763 7,727
Baptist Health Jacksonville FL $1,796.8 1,114 9,661
UF Health Gainesville FL $1,489.7 850 9,151
St. Elizabeth Healthcare Edgewood KY $1,483.6 862 7,210
WakeMed Health & Hospitals Raleigh NC $1,321.0 873 7,619
Covenant Health Knoxville TN $1,297.0 1,508 7,654
Grady Health System Atlanta GA $1,197.0 702 6,250
Northeast Georgia Health System Gainesville GA $1,172.6 574 6,854
Spartanburg Regional Healthcare System Spartanburg SC $1,158.3 930 7,578
University of Mississippi Medical Center Jackson MS $1,150.0 546 9,011
Broward Health Fort Lauderdale FL $1,120.9 1,529 7,792
Erlanger Health System Chattanooga TN $1,100.0 686 7,700
CAMC Health System Charleston WV $1,099.4 944 6,419
New Hanover Regional Medical Center Wilmington NC $1,038.4 704 6,118
Lexington Medical Center West Columbia SC $1,000.0 428 5,067
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Florida Peer Group
Organization City State Net Revenue Beds FTEs
Orlando Health Orlando FL $3,283.3 1,905 16,817
BayCare Health System Clearwater FL $3,057.6 3,055 15,674
Baptist Health South Florida Miami FL $3,024.9 1,974 18,038
University of Miami Health System Miami FL $2,207.0 600 12,322
Memorial Healthcare System Hollywood FL $2,014.0 1,864 10,669
Jackson Health System Miami Fl $1,975.6 2,137 12,859
Health First Rockledge FL $1,934.0 900 7,399
Baptist Health Jacksonville FL $1,796.8 1,114 9,661
UF Health Gainesville FL $1,489.7 850 9,151
Broward Health Fort Lauderdale FL $1,120.9 1,529 7,792
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Appendix BMarket Data
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Lee Health - Fort Myers, FL
Competitive Pay Analysis For:Incumbent: Larry Antonucci, M.D.Position: President / Chief Executive OfficerPosition Match: System Chief Executive OfficerBase Salary: $1,054,019Target Annual Incentive: $316,206 Lee HealthTarget TAC: $1,370,225 Net Revenue: $2.00BTarget LTI: $158,103Target TDC: $1,528,328
Base Salary Total Annual Cash (TAC) Total Direct Cash (TDC)25th 50th 75th 90th 25th 50th 75th 90th 25th 50th 75th 90th
Survey Description n %ile %ile %ile %ile %ile %ile %ile %ile %ile %ile %ile %ileGallagher National Peer Group
Gallagher Custom Peer Group Systems, $1.2B - $3.9B Net Rev, Med = $2.0B (#50) 81 1051.8 1172.7 1342.1 1571.2 1364.8 1527.0 1882.8 2319.4 1387.4 1598.5 1944.5 2458.9
Mercer NFP Systems, Regress @ $2.00B Net Revenue (#4100A) 98 971.6 1129.8 1310.5 1157.3 1377.8 1653.3 1157.3 1377.8 1667.1
Averages: 1012 1151 1326 1571 1261 1452 1768 2319 1272 1488 1806 2459Gallagher Regional Peer Group
Gallagher Custom Peer Group Systems, $1.0B - $3.7B Net Rev, Med = $2.0B (#50R) 38 950.3 1107.0 1280.8 1352.1 1182.3 1431.9 1741.8 1962.4 1196.2 1484.1 1954.0 2285.9
Gallagher Florida Peer Group
Gallagher Custom Peer Group Systems, $1.1B - $3.3B Net Rev, Med = $2.0B (#50S) 10 903.1 1108.5 1266.8 1328.1 1057.7 1295.0 1809.8 1879.3 1057.7 1295.0 1954.0 2264.5
Combined Averages
Combined Average 955.0 1122.2 1291.3 1417.1 1167.0 1393.1 1773.2 2053.7 1175.4 1422.4 1904.6 2336.4
All values in italics are estimated from the median All data is aged to 6/1/2020 at an annualized rate of 3.0%
©2020 ARTHUR J. GALLAGHER & CO. | GallagherHRCC.com 27
Appendix CPresident / Chief Executive Officer Base Salary
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President/Chief Executive Officer Base Salary
LARRY ANTONUCCI, M.D.BASE SALARY VERSUS MARKET 50TH PERCENTILE
(EFFECTIVE 6/1/2020)
Region Weight
Market 50th
Percentile ($000s)
National 33.3% $1,151,000
Southeast 33.3% $1,107,000
Florida 33.3% $1,109,000
Average 100.0% $1,122,000
Larry Antonucci, M.D.
Current Base Salary
Base Salary $1,054,019
Variance to Market 50th Base -6%
MARKET BASE SALARY
Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate
Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does
business in California as “Gallagher Benefit Services of California Insurance Services” and in Massachusetts as “Gallagher
Benefit Insurance Services.” Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice.
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Lee Memorial Health System Board of Directors
PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE
ADDITIONAL INFORMATION FOR
BOARD CONSIDERATION
Lee Memorial Health System Board of Directors
PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE
NEXT STEPS RECOMMENDATIONS
TO FULL BOARD
David Collins, Board Chair, Committee Chair
ADJOURNMENT
DATE OF THE NEXT
PRESIDENT/CEO EXECUTIVE COMPENSATION COMMITTEE
To Be Determined
Gulf Coast Medical Center Medical Office Building
13685 Doctors Way Ft. Myers, FL 33912