Becker's Hospital Review

25 WOMEN'S LEADERSHIP 25 CEO / STRATEGY Reputational risks linger for executives who don't take pay cuts By Molly Gamble S enior executives at hundreds of public U.S. com- panies have adjusted their salaries as pay cuts, furloughs or layoffs affect non-managerial workers amid the coronavirus pandemic. Leaders who do not re- duce their base pay, defer salary, exchange cash wages or equity, or forgo bonuses put their organization's repu- tation at risk, according to The Wall Street Journal. Investors, index funds and proxy advisory firms have a watchful eye on how boards of public companies handle this crisis. "At a time when many investors are putting greater emphasis on environmental, social and governance considerations, perceived missteps could do companies more damage than in the past," accord- ing to the WSJ. Any increase to pay will demand a strong case and proof from board directors at this time. Even without a raise, executive compensation attracts greater scrutiny from shareholders, employees and the public in times of economic disruption. For public companies, the threat of activist investors looms large. A senior vice president with a proxy advi- sory firm told WSJ that payouts to executives for lead- ing through a crisis could invite shareholder activism and "lawsuits for years." n Former federal official files whistleblower complaint against HHS By Maia Anderson R ick Bright, PhD, the former director of an HHS agency at the center of the federal pandemic response, filed a whis- tleblower complaint May 5 claiming he was fired after rais- ing concerns about hydroxychloroquine, a drug being tested as a possible COVID-19 treatment. Dr. Bright, who is one of the country's leading vaccine develop- ment experts, was removed from his role as director of the Bio- medical Advanced Research and Development Authority April 21 after leading the agency since 2016. In the complaint, Dr. Bright said he resisted a push from HHS of- ficials for widespread hydroxychloroquine use because claims of the drug's benefits lacked "scientific merit." He added that "the administration promoted it as a panacea and demanded that New York and New Jersey be 'flooded' with these drugs." The complaint said "HHS political leadership retaliated against Dr. Bright for his objections and resistance to funding potentially dangerous drugs promoted by those with political connections and by the administration itself." The complaint also said Dr. Bright warned HHS officials in January about the coronavirus threat and the need to increase production of personal protective equipment. Dr. Bright has asked to be reinstated as the BARDA director. n Fired CEO returns to Missouri hospital as chief strategy officer By Kelly Gooch A Missouri hospital CEO who was fired in March is in a different role at the facility amid the COVID-19 pan- demic, the St. Louis Business Journal reported. e former CEO, Sonny Saggar, MD, told the newspaper he returned to St. Alexius Hospital in St. Louis March 30 as the hospital's chief strategy officer. He said he will also work as director of the hospital's emergency depart- ment and its COVID-19 task force. Carol Fox, a court-appointed bankruptcy trustee for St. Alexius, fired Dr. Saggar March 24 aer he had been in the CEO position for about one month. Ms. Fox told the St. Louis Post-Dispatch she suspended the CEO position while explor- ing a hospital sale, which she said is common when a trustee begins managing a hospital. Fort Lauderdale, Fla.-based Americore Hold- ings, the owner of St. Alexius, agreed to hand operational control to a bankruptcy trustee in February. Dr. Saggar told the St. Louis Business Journal that Ms. Fox asked him to return to the hos- pital aer she temporarily eliminated the CEO position during the pendency of the bankrupt- cy case. Ms. Fox did not respond to the Jour- nal's request for comment before publication. "I do believe that trustee Fox has her heart in the right place," Dr. Saggar told the St. Louis Business Journal. "I do believe she cares about the community and has everyone's best interest at heart. She's trying to optimize things and get the hospital sold to a reputable operator." In early April, Dr. Saggar said the hospital was preparing to accept homeless people who need quarantine, monitoring or shelter amid the pandemic, at the empty 350,000-square foot Lutheran Hospital building at St. Alexius' Jefferson campus. e city and hospi- tal have discussed the possibility, al- though there has been no final decision, according to a spokesperson for St. Louis Mayor Lyda Krewson. n

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