The maximum pay for executives and physicians at King Edward VI Memorial Hospital has decreased, according to figures released by the Bermuda Hospitals Board yesterday.

Compensation for executives, including base pay, performance pay and any housing allowances/relocation expenses, has dipped from $650,000 in 2011-12 to $470,000 in 2015-16, while the maximum for physicians has plummeted from $1.69 million to $694,700 during the same period.

The maximum total, including tax and payroll deductions, fell from $703,500 to $504,200 for executives and from $1,788,700 to $742,500 for physicians.

The chief executive officer’s wage dropped by more than 28 per cent — slashed from $703,356 to $504,179.

Meanwhile, the total compensation for Bermuda Industrial Union employees, such as nursing aides and non-managing staff, has risen slightly from a range of between $41,900 and $94,500 to a range between $42,600 and $102,000.

And Bermuda Public Services Union employees, including managers, clinical directors, registered nurses and psychiatrists, saw their minimum total compensation fall while their maximum total increased. The total compensation range for such employees in 2011-12 was between $48,800 and $206,300; the range in 2015-16 was listed as being between $44,200 and $244,600.

A BHB statement also noted there has been a freeze on executive salaries and there has been no performance-based pay since 2011-12. A section of the statement says: “In the last independent review of executive compensation in March 2014 by Sullivan and Cotter, BHB executive salaries were below benchmarks.

“Perceived changes in the executive group salary ranges in each fiscal year in the attached figures generally relate to changes in personnel or redundancies.”

While legislation states the information should be released as part of the quango’s annual financial statement, chairman Peter Everson said that due to delays in the auditing process the information had not been released.

“While we expect the 2011-12 annual report to be published shortly, this still leaves us some years behind and so 2011-12 data no longer accurately reflects current salaries,” he said.

“This issue has been deliberated on by the board and, in the interests of public accountability and transparency, we have decided that updated salary information for all completed fiscal years should be shared, although noting that after 2011-12 this information is unaudited.”

Going forward, he stated that employee compensation will be released with audited financial statements.

“On reviewing this data, I am pleased to note a general trend downwards in the highest salary bands for executives and physicians, which reflects a fair and consistent approach to setting compensation,” he said.

“For physicians the reduction, in large part, related to implementing recommendations from the Towers Watson Physician Compensation review — the summary of which was released to the public in 2013, as well as certain physician specialities returning to private practice.

“In the executive group, a leaner executive team has been established to streamline BHB from the very top. Over the last four years four senior positions have been made redundant.

“BHB’s employees on lower salaries have seen some increase. Members of the board, meanwhile, are unpaid volunteers and receive a stipend for attending meetings at the rate set by the Government of $50 per meeting.

“They do not receive any benefits or other forms of compensation.”

Mr Everson added that he and the board are pleased to have the information released, saying: “It must be remembered that BHB is a large and complex organisation, spending about $300 million a year in delivering acute medical and psychiatric services and a range of primary and secondary care services for the community, including learning disabled and long-term care.

“While the focus on this data is very much about the cost of the workforce, I do not want to lose sight of the value of the people who work every day, day and night, to care for us when we are in need.

“I would like to thank them on behalf of the board for their tireless commitment and caring for those in need.”

For the full BHB press release, click on the PDF link under “Related Media”