The Erlanger Health System Board of Trustees approved a new two-year contract with CEO Dr. Will Jackson during a public meeting Thursday evening.
Trustee John Germ, chairman of the Management and Board Evaluation Committee, said the most substantive changes over Jackson's current contract, which expires Sept. 25, are extending the contract to a two-year term, removing the individual performance incentive and adding a clause that allows for either party to terminate the agreement without cause with 90 days written notice.
Jackson's base salary will remain $625,000 per year. In late March, he took a 15% pay reduction to that base salary amid financial hardship brought on by the COVID-19 pandemic.
The contract establishes new metrics for CEO performance tracking that focus on quality and safety, patient experience, operations and financial stewardship, as well as service line growth targets in market share, cardiothoracic surgery, cardiology and transplants. If Jackson meets those metrics, he may be eligible to receive incentive compensation based on the board's approval.
Management would also need to conduct an employee survey, action plan and report on turnover rates along with any job classes that need focus.
Jackson joined Erlanger - a public health agency - five years ago as the hospital system's chief medical officer. Although he had no previous CEO experience, trustees said Jackson's experience as a physician weighed heavily in their decision to move him into his current role.
Since taking the helm in September 2019, he's had to lay off 30 managers, work to rebuild physician relations and lead the hospital through a global pandemic.
Jackson's predecessor, Kevin Spiegel, began at Erlanger in 2013 making $680,000 per year base salary with a $50,000 sign-on bonus, according to a copy of his contract. By the time of his departure, he earned $964,000 base and had an opportunity to earn up to 50% of his base salary in bonuses through a self-funded incentive plan.
Contact Elizabeth Fite at efite@timesfreepress.com.