Erlanger approves bonuses for 'very financially rewarding' year

Staff photo by Robin Rudd / Erlanger's first in-person board meeting since before the start of the coronavirus pandemic was held on June 24, 2021. The board voted to approve the FY22 budget at this meeting.

Erlanger Health System's leadership team and staff will receive bonuses not to exceed a combined $4.23 million in light of what they describe as strong fiscal year performance from the hospital.

The bonuses were approved at a hospital board meeting on Thursday and include $400 lump sum bonuses for full-time employees hired prior to April 1. Those who are part-time and fall under the eligible category will get a $200 lump sum.

(READ MORE: In 'daunting' health care environment, Erlanger ekes out positive net income)

Some employees are excluded, including those who are part of other incentive programs, such as physicians and management.

"We've had, albeit, a very challenging year - the last fiscal year - but very financially rewarding," said Floyd Chasse, chief human resources officer for Erlanger. "And the quintessential component of that has been our associates."

The aggregate amount for general employee incentives will not exceed $2.5 million, Chasse said.

Last year, the board approved an incentive plan for management that included various goals and metrics.

John Germ, chairman of the board committee charged with evaluating management performance, said those objectives were met, resulting in a one-time incentive payment to eligible managers not to exceed $1,734,536.

The management incentive plan includes roughly 85 employees.

In September, the board approved a market adjustment for the president and CEO, adjusting Dr. William Jackson's annual salary to $806,000.

Jackson's base salary prior to the raise was $625,000, and last year he received an additional $50,000 for completing the three non-financial goals set forth in his contract when he took over leadership of the hospital in September 2019.

"Dr. Jackson has successfully led the organization during the past two years, a period stressed by the unprecedented COVID-19 pandemic," a news release from Erlanger stated.

Board Chairwoman Linda Moss Mines said in the release that "the board fully supports Dr. Jackson and his vision for the organization and his ability to execute Erlanger's business plan. During his two years, he has initiated a transformation of the organization, promoting quality and access to care while understanding the necessary balance between short-and long-term implications to decisions."

Contact Elizabeth Fite at or follow her on Twitter @ecfite.