UMC CEO Valenti’s deferred compensation could reach $3 million over life of contract
This year, University Medical Center CEO Jim Valenti received a nearly $120,000 bonus. He received the bonus even though the county hospital laid off dozens of employees and has had a financially difficult year.
Now, the ABC-7 I-Team has uncovered the details of University Medical Center CEO Jim Valenti’s deferred compensation package, which could leave him claiming a multi-million dollar bonus in a year and a half.
“It’s better for our board chair and the chair of the compensation committee to address that,” said Valenti when ABC-7 asked about his deferred compensation plan that was signed back in 2005 and amended in 2006.
It states Valenti will receive a large percentage of his base salary, for every year he’s been with the hospital, if he stays at UMC for another year-and-a-half.
The total Valenti could receive would top $3 million over and above his base pay and bonuses.
“I think if done responsibly, it could be a valuable tool,” said County Commissioner Vince Perez in regards to the deferred compensation, “But the issue I’ve always had is, given the year’s financial difficulties, why was Mr. Valenti awarded a $120,000 bonus on top of all that?”
According to county records obtained by ABC-7, Valenti’s bonuses have ranged from $105,000 to $148,000 over the nine years he’s been employed.
The contract states Valenti will receive the following percentages of his base pay in deferred compensation:
30 percent to 32 percent from 2006 to 2009
34 percent in 2010-‘11
36 percent in 2012-‘13
40 percent in 2014
50 percent in 2015-‘16
The deferred compensation per year would range from $93,000 to more than $230,000.
It includes a feature that boosts the total deferred compensation by another 57 percent to cover the taxes on that amount.
Valenti’s current annual base salary is nearly $460,000, meaning he would earn about $184,000 in deferred compensation in 2014, plus that 57 percent tax kicker. It does not include his annual bonuses.
With the deferred compensation package, Valenti could receive nearly $870,000 for this year’s work.
