DrBob, 🧠 Mechanic

Part of what’s wrong with American healthcare

CEO of failing hospital chain got $250M amid patient deaths, layoffs, bankruptcy

“As the more than 30 hospitals in the Steward Health Care System scrounged for cash to cover supplies, shuttered pediatric and neonatal units, closed maternity wards, laid off hundreds of health care workers, and put patients in danger, the system paid out at least $250 million to its CEO and his companies, according to a report by The Wall Street Journal.”

https://arstechnica.com/science/2024/08/as-hospitals-failed-and-patients-died-ceo-reportedly-netted-250m/

CEO of failing hospital chain got $250M amid patient deaths, layoffs, bankruptcy

Steward Health Care System, run by CEO Ralph de la Torre, filed for bankruptcy in May.

Ars Technica
Aug 21, 2024 at 3:04amWeb
Show threadAndii אַנדִֽיAug 21, 2024
@drrjv
Yet another story to raise the question about what the 'valuation' of CEO remunerations are based on? It's clearly not "talent" (another term deserving scrutiny) or extraordinary insight.
What measures should we use to get a realistic valuation of a CEO's contribution? What's their actually costed contribution? Do they actually 'make' their remunerative extractions or are they (as I suspect) a net drain on their organisation?
Show threadDrBob, 🧠 MechanicAug 21, 2024
@Andii Give thanks to Jack Welch of GE fame for our ‘celebrity’ CEOs who get paid millions more than they should🥺
PS: Welch drove GE into the ground, but it wasn’t obvious until after he retired with a big bonus.
Show threadAndii אַנדִֽיAug 21, 2024
@drrjv
... so what's holding the high 'pay' in place? Is it meant to be a demonstration to the markets that this is a going concern because they can pay the CEO hugely? Is it a form of advertising, in effect?
What's sure is that there is no real productivity that can be linked to those numbers.