Wednesday, April 23, 2014
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Maine Medical Center in Portland on Tuesday May 7, 2013.
John Patriquin / Staff Photographer
Richard Petersen, president and CEO of Maine Medical Center.
Maine Med didn't offer details in its news release on the cuts to executive compensation, but in another email to employees, Petersen said about 45 executives will receive cuts averaging 12.5 percent.
Although Paul didn't respond to a request for more information on the reductions, Petersen's wording in the email could be significant -- he referred to cuts in "compensation," which usually refers to not just salary, but a range of benefits that include bonuses, contributions to a retirement plan and perks, such as memberships to clubs.
Petersen, for instance, received a salary of $606,243 for 2011, according to Maine Med's filing with the Internal Revenue Service. However, he also received a bonus of $148,000 and other benefits, bringing his total compensation package to $1,039,940.
Among the other top 14 earners and key employees that Maine Med is required to report on, total compensation in 2011 -- the most recent year for which figures are available -- ranged from $237,269 at the low end to $1,128,006 for William L. Caron Jr., president of MaineHealth, Maine Med's parent company.
Including Petersen and Caron, six of the top 14 earners had total compensation of more than $1 million.
Petersen told employees in his email that the 2014 budget doesn't include annual pay increases for employees, but he said there could be a mid-year pay raise if the hospital outperforms its budget. He also said employees' health insurance premiums will stay level for next year, the retirement plan will be unchanged and a match for an employee investment plan would continue.
Petersen's email said the goal of the cuts was to create a budget that's sustainable "and not simply make reductions to achieve a target," and that he believed that had been accomplished.
"I'm confident that following this recent period of uncertainty, things will soon begin looking up for all of us," he wrote.
Edward D. Murphy can be contacted at 791-6465 or at: