CEO fired for giving himself unauthorized bonuses
Akram Boutros, MD, has been fired as president and CEO of MetroHealth, after an investigation revealed $1.9 million in supplemental bonuses he authorized for himself.
His termination was effective Nov. 21. MetroHealth System, based in Cuyahoga County, Ohio, operates four hospitals, four emergency departments and more than 20 health centers and 40 additional sites throughout Cuyahoga County. The health system’s board of trustees conducted an investigation through outside counsel into compensation issues and discovered the supplemental bonuses were paid out from 2018-2022 to Boutros.
According to Vanessa Whiting, chair of the MetroHealth System, Boutros established specific metrics, conducted self-assessments of his performance under those metrics, and authorized payment to himself of more than $1.9 million in supplemental bonuses based on those self-evaluations over the four-year period.
“We all recognize the wonderful things Dr. Boutros has done for our hospital and for the community,” Whiting said in a statement Monday. “However, we know of no organization permitting its CEO to self-evaluate and determine their entitlement to an additional bonus and at what amount, as Dr. Boutros has done.”
While Boutros’ contract stated the board set his compensation, he did not disclose the bonuses to the board, Whiting said. The board became aware of the compensation issues when they began to prepare for a CEO transition. After conducting an internal investigation with Tucker Ellis law firm, the board demanded immediate repayment of the supplemental bonus money, as well as approved and enacted immediate CEO spending and hiring limitations through Dec. 31, 2022.
Boutros repaid more than $2.1 million, which included the bonus money plus interest, on October 31.
According to Whiting, the board determines compensation for the CEO on a performance-based variable compensation plan that awards bonuses based on achievements reached against annual organizational goals approved by the board.
“Dr. Boutros omitted reporting his full compensation to the Board – and to a nationally recognized compensation consultant hired to annually review and assess Dr. Boutros’ compensation.” Whiting stated.
Nabil Chehade, MD, executive vice president and chief clinical transformation officer at MetroHealth, assumed the CEO role on an interim basis. Airica Steed, Ed.D, will become president and CEO of MetroHealth Dec. 5. She was previously appointed the incoming leader in September.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."