The American Medical Association's top executive received about $650,000 in salary, benefits and performance bonuses for fiscal 2000--even though the organization lost $9.2 million and laid off about 80 employees over the past year.
E. Ratcliffe "Andy" Anderson Jr., M.D., the group's executive vice president, was at the helm during a year of disappointing financial news for the nation's biggest and most influential physician organization. The 1999 loss was about $2.7 million more than pessimistic projections of a year earlier.
Anderson's annual base salary was $483,500, according to a financial report that will be released at the organization's 54th annual interim meeting this week in Orlando, Fla.
Anderson also received $76,900 as a bonus for 1999 performance; $58,000 for a country club membership and tax-planning services; $21,300 in pension plan benefits; and $8,700 in life, health and dental insurance.
One AMA official noted that the performance bonus is stipulated in Anderson's contract and based on a positive review by the group's 20-member board of trustees and not exclusively on the organization's financial performance.
The AMA posted an operating loss of $15 million, which was partially offset by nonoperating revenue to result in the $9.2 million net loss. The losses were attributed in part to higher employee compensation and technology costs. What's more, even though membership was at an all-time high of about 294,000, membership revenue declined by about $4.8 million because of discounts and pilot programs for students and residents.
The AMA's executive compensation report, traditionally released at the group's annual meeting in June, was postponed this year and is being made public for the first time at the interim meeting. Last year, the AMA released results for the same fiscal year at its June meeting in Chicago (June 5, p. 8).
The new report showed that the AMA paid about $222,000 to each of its four officers: President Thomas Reardon, M.D.; President-elect Randolph Smoak Jr., M.D.; immediate past President Nancy Dickey, M.D.; and Chairman D. Ted Lewers, M.D.