Highmark and AHN list top salaries in tax filings
Former CEO made more than current one
New tax filings show that Highmark president and CEO David Holmberg received $2.6 million in compensation for 2016, including $900,000 in bonus and incentive pay.
But Mr. Holmberg’s compensation package was eclipsed by $3.02 million paid to retired Allegheny Health Network CEO John Paul, whose $190,459 in base salary was boosted by $1.06 million in bonuses, incentives and $1.13 million in “other reportable compensation.”
Mr. Paul stepped down CEO in February 2016.
The salary figures are contained in the health care giant’s Form 990, a yearly financial public disclosure required by the IRS of virtually all nonprofit organizations other than churches.
The filing includes 2016 financial data for Highmark and AHN, which showed a $26 million loss for Highmark Health and an $18.5 million profit for AHN.
The Pennsylvania Insurance Department also requires regular updates during the year as a requirement of its approval of Highmark’s acquisition of the former West Penn Allegheny Health System.
In March, Highmark Health reported a consolidated $64 million operating profit for 2016, which includes all Highmark Health entities. The tax form released Tuesday, however, shows the corporate entity Highmark Health — after excluding profits from its health plan, AHN and other diversified businesses — had a $26 million stand-alone loss because of investments such as a new electronic medical records system.
Tuesday’s filing listed eight other Highmark and AHN employees whose total compensation exceeded $1 million:
Physician Donald Whiting, chairman of the AHN Neuroscience Institute ($1.77 million); orthopedic surgeons Daniel Altman ($1.55 million), Gregory Altman ($1.50 million), Edward Westrick ($1.44 million), and Nicholas Sotereanos ($1.32 million); AHN Orthopedic Institute Chairman Patrick Demeo ($1.29 million); David Parda, chairman of the AHN Cancer Institute ($1.1 million); and CFO Karen Hanlon ($1.1 million).
Former Highmark President and CEO William Winkenwerder, who was ousted by the Highmark board in May 2014, received $707,799 in compensation last year. as