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Lang gets pay raise, bonus

By Staff | Apr 13, 2009

Evaluation results are in and United Hospital District boardmembers are pleased with their administrator’s performance, so they’ve given him a $13,200 pay raise and a bonus.

On a unanimous vote, the board increased Jeff Lang’s base pay from $132,000 to $145,200. He also earned a bonus of $13,200 for achieving 2008 performance goals in four areas.

Despite the salary increase, board chairman Dennis Zitnak says Lang ranks below the 50th percentile of hospital CEOs in Minnesota and below the 25th percentile of critical access hospital CEOs, such as UHD.“The board is very pleased with his high level of skills and management abilities,” says Zitnak. “A good CEO also is only as good as the rest of his support staff.”

It’s the second straight year the UHD administrator has received a hefty pay hike and bonus.

Last year, Lang’s annual base salary was increased 5.5 percent, from $125,000 to $132,000. In addition, he received a bonus of $8,594. Of that amount, $3,125 was for exceeding a ‘stretch’ net income standard of $2 million.

Under an executive incentive compensation plan, the administrator can earn a salary increase and is eligible for a bonus of up to 10 percent of his base salary.

Results of Lang’s evaluation list 20 items of “major strengths” and 10 areas needing “further development.”

To rate Lang’s job performance information was obtained from boardmembers, medical staff and senior leaders within the hospital district.

The evaluation covered 54 different leadership qualities in seven categories.

Lang scored the highest among leadership/managerial qualities and knowledge/skills.

Under the leadership category, Lang’s strengths were “establishing a clear vision and direction for the organization, accomplishing goals and financial management.”

In the same area, improvement opportunities centered on “communication, creating a sense of enthusiasm and having an open work style.”

The category that showed the greatest potential for improvement was board relations.

Lang was asked to develop long and short range plans with the board, provide educational programs for boardmembers and create a sense of trustworthiness.