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Executive compensation

The purpose of this section is to explain how executive leadership compensation is established at Novant Health, a not-for-profit organization. Listed below are the members of Novant Executive Team and the value of their 2012 compensation and benefits.

Our organization considers an employee's compensation personal and private. However, we also recognize the importance of transparency and public interest in how tax-exempt, not-for-profit organizations establish compensation and benefits for its top leaders. Novant Health prepares and files annually a Form 990 with the Internal Revenue Service (IRS) that discloses important financial information about the organization, including executive compensation and benefits. These annual information returns follow IRS rules and regulations, but they can be easily misinterpreted because of their complexity. We hope you find the summary on this page useful.

How executive compensation is established
  • The Novant Health Board of Trustees, which consists of community leaders from organizations and businesses, establishes executive compensation. Novant executives are not involved in determining their own compensation and benefits.
  • Because Novant is a tax-exempt, not-for-profit organization, its executive compensation must follow very specific checks and balances. Compensation must be considered "reasonable" and within an acceptable range compared to similar organizations. Executive compensation and benefits are established by comparing Novant Health to other similar health systems and organizations around the country that are comparable in size, complexity and reputation. The Board hires national, independent experts who guide trustees in this benchmarking process and help assure that compensation and benefits do not exceed fair market value.
  • Compensation is designed to be competitive and to help recruit and retain leaders. Novant establishes executive base salaries in the same way it establishes compensation for all employees, by using market data and comparing to similar jobs.
  • A significant part of executive compensation is based upon the performance of the organization and achieving goals that are challenging, balanced and focused on improving the services we provide to patients and communities. The executive team performs in the top quartile nationally. Novant's goals focus on the quality and safety of healthcare, improving the patient experience, transforming to an electronic health record, financial stewardship and providing community benefit.
  • In 2012, Novant Health provided more than $546 million in community benefit, including more than $123 million in direct charity care. Novant Health is a very complex organization with 25,000 employees, annual revenues of $3.6 billion, 14 medical centers and approximately 450 locations across four states which include physician clinics and outpatient centers. This complexity is taken into consideration by the compensation consultant and the Committee when establishing its peer group.

Novant Health System Executives Title 2012 Base Salary Compensation 2012 Incentive Compensation 2012 Total Annual Compensation 2012 Other Compensation such as Retirement Payments or Severance Nontaxable Benefits such as life and health insurance, disability Accounting accruals for future retirement benefits which may not vest or be paid out
Carl Armato President & CEO, Novant Health $934,520 $686,576 $1,621,096 $44,198 $30,554 $1,102,500
Jacque Daniels Chief Administrative Officer, Novant Health $537,388 $487,660 $1,025,048 $47,582 $16,173 $565,432
Fred Hargett Chief Financial Officer, Novant Health $555,674 $458,350 $1,014,024 $58,446 $29,316 $602,500
Sallye Liner Chief Clinical Officer, Novant Health $486,792 $463,035 $949,827 $140,178 $25,269 $284,007
Stephen Wallenhaupt, MD Chief Medical Officer, Novant Health $502,155 $466,195 $968,350 $710,172 $26,479 $738,078
Greg Beier Former Executive Vice President Novant Health Operations $324,355 $986,861 $1,311,216 $657,064 $17,316 $14,388
Paul Wiles Former President & CEO, Novant Health $508,527 $1,095,300 $1,603,827 $9,511,215* $13,031 $14,178

          * Novant Health previously noted this deferred compensation in 2002 Form 990 filings.