Former CEO and President Akram Boutros, M.D., who has repaid the money with interest, was terminated with cause shortly before his planned retirement. He said that a statement released by MetroHealth's board chair detailing his undisclosed self payments "is full of misinformation and outright lies" and now threatens the four-hospital system with a lawsuit for "retaliatory" behavior.
The president and CEO of a major Ohio health system was pushed into an early retirement and is now threatening legal action after board members learned he had authorized nearly $2 million in bonus compensation without their approval.
Akram Boutros, M.D., admitted to establishing his own metrics to assess his performance as the head of MetroHealth System, according to a Monday evening statement from Board of Trustees Chair Vanessa Whiting.
Upon determining that he passed those metrics, Boutros authorized supplemental bonuses “of more than $1.9 million” to be paid to himself between 2018 and 2022.
The former executive did not disclose the self-evaluations or bonuses to MetroHealth’s Board of Trustees “even though Dr. Boutros’ employment contract makes clear that the Board sets Dr. Boutros’ compensation,” the academic safety-net system’s board chair said. Boutros also omitted fully reporting his pay to a consultant hired by MetroHealth to annually review and assess his compensation, according to the statement.
The board launched an internal investigation led by an outside firm after learning about the self-payments during a planned retirement and CEO transition, Whiting said. This led the board to demand—and as of Oct. 31, receive—repayment of more than $2.1 million in supplemental funds and interest from Boutros.
The board also voted on Monday evening to terminate Boutros’ employment, effective immediately. Boutros, an internist, had held his positions as CEO and president at MetroHealth since 2013 and in late 2021 announced his plans to retire by the end of 2022.
“We have taken these actions mindfully and deliberately but with sadness and disappointment,” Whiting said in the statement. “We all recognize the wonderful things Dr. Boutros has done for our hospital and for the community. However, we know of no organization permitting its CEO to self-evaluate and determine their entitlement to an additional bonus and at what amount, as Dr. Boutros has done.”
Executive Vice President Nabil Chehade, M.D., will serve as interim CEO in the run-up to the appointment of inbound CEO and President Airica Steed, M.D., on Dec. 5, Whiting said.
Boutros and his attorney have since released a statement that characterized Monday’s vote as “the latest of a series of retaliatory acts” against the former executive and alleged that the board’s statement “is full of misinformation and outright lies.”
Boutros, according to the statement, raised concerns that deliberations on the new CEO were happening outside of public meetings and that Whiting had signed agreements and authorized payments without approval from the rest of the board.
“[Whiting] targeted [Boutros] for receiving bonuses that were also received by all eligible employees,” according to the former executive’s statement. “The ‘demand’ for repayment is evidence of the Board's discriminatory treatment as he is the only employee forced to repay bonuses. The Board of Trustees took this action to divert attention from their own gross negligence.”
Whiting said in last night’s statement that the former CEO was already offered a performance-based variable compensation plan with a bonus “based on achievements reached against annual organizational goals approved by the Board of Trustees.” The board did not delegate Boutros the authority to set goals and pay out his additional bonuses, she said.
Boutros told the board that he had self-reported to the Ohio Ethics Commission the day after his repayment, per Whiting’s statement.
“We stand ready to cooperate with any investigating authorities while we continue our internal investigation,” Whiting said.
Cleveland-based MetroHealth operates four hospitals, four emergency departments and dozens of other centers and care sites across Ohio’s Cuyahoga County. It employs nearly 8,000 people and serves over 300,000 patients, two-thirds of whom are either uninsured or covered under Medicare or Medicaid, according to its website.