The CEO of Novant Health saw his compensation rise more than 16 percent in 2016, according to new federal disclosures.
One of Charlotte’s biggest hospital systems, Novant awarded Carl Armato a total of $3.4 million in 2016, including a salary of $1.3 million and bonus and incentive compensation of $1.4 million. The rest included retirement payments, insurance and other benefits.
The 16.6 percent jump in compensation came in a year when Novant posted stronger financial results than the previous year. The Winston-Salem-based system reported $4.3 billion in revenue, up 5.1 percent, according to its annual report. Net income was $412.8 million, up 115.5 percent.
As a private nonprofit, Novant Health publishes executive compensation each year in its Internal Revenue Service Form 990. Novant released its latest 990 this month.
Novant employs more than 1,500 physicians and more than 25,000 employees in 470 locations, including 14 hospitals in four states, including Novant Health Presbyterian Medical Center and three others in Mecklenburg County.
This year marks Armato’s sixth as CEO at Novant, where he was previously chief operating officer. The 2016 report shows Armato and 10 other executives made more than $1 million apiece.
Asked about executive compensation in an Observer interview in October, Armato said Novant is a complex system that serves close to 5 million patients annually across more than a dozen hospitals and hundreds of clinics.
He also noted that this year he raised the lowest hourly pay for Novant workers in Virginia and North Carolina. In North Carolina, the move boosted pay to $11 per hour, up from the state’s minimum wage of $7.25.
In a statement, Novant said the system’s board of trustees establishes executive compensation and that Novant executives are not involved in those decisions. The system also said the board hires independent experts to help compare executive pay at similar organizations around the U.S., so compensation and benefits don’t exceed fair market value.
Novant also noted it provided more than $725 million in community benefit in 2016, including $122 million in direct charity care.
The system expects its 15th hospital, in Mint Hill, to open next year.
Carolinas HealthCare System, Novant’s competitor in Charlotte, is expected to release its latest executive compensation numbers early next year.
Below are the 10 Novant Health executives awarded the most in total compensation in 2016, according to federal disclosures the Winston-Salem-based system released this month.
▪ Carl Armato, CEO, $3,426,419.
▪ Fred Hargett, chief financial officer, $2,055,977.
▪ Jeffery Lindsay, chief operating officer, $1,850,098.
▪ Jacqueline Daniels, retired chief administrative officer, $1,569,581.
▪ Jesse Cureton, chief consumer officer, $1,470,730.
▪ Denise Mihal, chief nursing and clinical operations officer, $1,341,358.
▪ John Phipps, medical group president, $1,320,013.
▪ Thomas Zweng, chief medical officer, $1,317,549.
▪ Harry Smith, senior vice president of hospital operations, $1,203,840.
▪ Eric Eskioglu, senior vice president of neuroscience, $1,172,857.