Execs' severance may cost WellStar $2.6M
by Kim Isaza
newseditor@mdjonline.com
September 11, 2010 12:00 AM | 2497 views | 0 0 comments | 13 13 recommendations | email to a friend | print
WellStar Health System could end up paying more than $2.6 million in severance between former Chief Executive Officer Dr. Gregory Simone, and former executive vice president Bonnie L. Wilson, according to their employment contracts.

Simone's base salary was $900,000 per year, according to a WellStar spokesman. His contract, signed June 15, 2007, calls for 24 months of salary if he is terminated, meaning he could walk away with $1.8 million.

Wilson, 56, joined WellStar on Feb. 1, 2005, and earned $428,000 per year as executive vice president and general counsel. Her contract also calls for 24 months of salary as severance, which totals $856,000.

Both contracts, which were received under an Open Records Request, also allow the executives to continue receiving fringe benefits, such as car allowances, for the 24 months. Both contracts were also open-ended, to "continue until terminated."

WellStar's Board of Trustees voted unanimously on Sept. 2 to fire Dr. Simone, 63, effective immediately. The move was a surprise to many, considering Simone's prominence in the community. He was also in line to lead the Cobb Chamber of Commerce next year, which will not happen now.

Randall Bentley, chairman of the board of trustees, declined to discuss the two executives' actual severance packages. Bentley also would not give further details of Simone's firing.

"It's all going to be relating to personnel, and I'm just not going to get into details of timelines or rumors or anything in regards to that," Bentley said Friday.

But when asked whether WellStar - which has more than 9,000 workers and a $1.6 billion budget - had been harmed by something Simone did, Bentley said no.

"I don't think so. I think our future looks very, very bright," he said. "As a matter of fact, Moody's just gave us a AA- rating, which is what we had before [under Dr. Simone], which is very good in today's economy."

The board voted unanimously, 15-0, on Sept. 2, after a four-hour discussion in executive session, to terminate Simone. Two board members - Drs. Thomas Gearhard and Jeffrey Tharp - who are employed by WellStar abstained from the vote, and a third board member, Dr. Robert Warner, was absent.

As for a search to replace Simone, Bentley said the trustees would "probably have everything settle down," and then discuss that during their October meeting.

As to who made the decision to terminate Wilson, Bentley said only that it "was an administrative decision."
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