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UHD board gives CEO raise, no bonus

By Staff | Mar 7, 2010

Jeff Lang

It could be the last bonus United Hospital District’s CEO will ever receive.

The board of directors unanimously voted Tuesday to pay Jeff Lang a $9,982 pay incentive for 2009 and give him a hefty pay hike for 2010.

Board chairman Dennis Zitnak says the administrator achieved performance goals in three of four areas.

Zitnak highlighted results of Lang’s annual evaluation that listed “major strengths” and areas needing “further development.” It covered 54 different leadership qualities in seven categories.

Job performance information was obtained from board members, medical staff and senior leaders within the hospital district.

Zitnak says the board’s four-member executive committee recommended Lang not be eligible for a bonus this year.

Instead, the administrator’s annual salary is being increased from $145,200 to $163,000, and that does not include fringe benefits.

“We just thought it was easier to do it that way,” says Zitnak.

Board member Ken Queensland says Lang’s salary may appear high when compared to other wages paid in Faribault County.

“We have to look at what the statewide average is for hospital CEOs. We need to keep abreast of what others are paying CEOs,” says Queensland.

Zitnak says the board will have to decide next year whether they want to resume paying a bonus.

Despite the bump in salary, Lang is below the 25th percentile of critical access hospital CEOs, such as UHD, earning an average of $185,000 annually.

Under an executive incentive compensation plan, Lang was able to earn a salary increase and a bonus of up to 10 percent of his base salary.

In other business, Lang:

• Gave an update on the search for a new chief financial officer. He says a Minneapolis search firm has been hired and they have received 12 resumes so far.

Lang says he expects to start conducting telephone interviews soon.

• Presented three options for re-locating the ambulance garage.

Lang says the hospital prefers to keep the garage on campus. He gave the pros and cons of each location being considered.

The preferred option would be a dual purpose garage that would be used for drop-off and storage for the ambulance department. While very preliminary, the cost is estimated at $60,000.

• Told the board the two multi-million dollar construction projects are moving along.

Lang says the adolescent treatment center is on schedule to have a July grand opening.

As for the hospital campus expansion, progress also is being made.

“The recent weather has been an absolute godsend. Things are starting to move, thank goodness. It’s been a terrible winter and frustrating,” says Lang.

So far, the district has spent $7.4 million of the $10 million in cash earmarked for the projects.