CLEVELAND — The MetroHealth Board of Trustees announced that President and CEO Akram Boutros has been fired effective immediately. The Board said Boutros authorized more than $1.9 million in supplemental bonuses to himself between 2018 and 2022.
Boutros was set to retire as CEO at the end of this year after more than nine years in charge of the hospital system.
Through his attorney, Boutros said his firing was an act of retaliation.
His attorney released the following statement on his termination:
"The MetroHealth Board's actions yesterday are the latest of a series of retaliatory acts against Dr. Boutros after he raised the issue of the unauthorized hiring of the new CEO. He uncovered that the Board members were participating in serial deliberation outside of public meetings and that the Chair signed agreements and authorized payments without Board approval.
The Chair led a retaliatory charge against him for blowing the whistle on these practices. She targeted him for receiving bonuses that were also received by all eligible employees.
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.
The statement released by the Board last night is full of misinformation and outright lies. Dr. Boutros will be taking legal action."
MetroHealth pushed back on these statements, calling them "false and a distraction." According to MetroHealth, the facts regarding the matter are as follows:
- Dr. Boutros, by his own admission, established specific metrics, conducted self-assessments of his performance under those metrics, and authorized payment to himself of more than $1,900,000 in supplemental bonuses based on those self-evaluations between 2018 and 2022.
- The Board of Trustees did not delegate to Dr. Boutros the authority to self-evaluate his performance against metrics never disclosed to the Board, and then authorize supplemental bonus payments for himself in amounts never disclosed to the Board.
- The MetroHealth Board of Trustees is the only administrative body that can set performance evaluation metrics for the CEO and approve CEO bonuses and total compensation, and Dr. Boutros’ employment contract makes clear that the Board sets Dr. Boutros’ compensation.
- Dr. Boutros repaid the unapproved supplemental bonus money, with interest, on October 31.
- Dr. Boutros informed the Board at a public meeting that he had self-reported to the Ohio Ethics Commission on November 1, 2022, the day after the repayment.
MetroHealth will have an interim CEO take over until it transitions to its new CEO, Dr. Airica Steed.
The Board released the following statement when it announced the firing on Monday:
"The MetroHealth Board of Trustees has terminated the employment of President and CEO Akram Boutros, M.D., effective immediately.
On Saturday, the Board received the results of an investigation by outside counsel into compensation issues involving more than $1,900,000 in supplemental bonuses Dr. Boutros authorized for himself, without disclosure to the Board, between 2018-2022. On Monday evening, the Board voted to terminate his employment for cause.
We have taken these actions mindfully and deliberately but with sadness and disappointment. 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.
Dr. Boutros, by his own admission, established specific metrics, conducted self-assessments of his performance under those metrics, and authorized payment to himself of more than $1,900,000 in supplemental bonuses based on those self-evaluations between 2018 and 2022. The self-evaluations and the supplemental bonus amounts paid to Dr. Boutros were not disclosed to the Board, even though Dr. Boutros’ employment contract makes clear that the Board sets Dr. Boutros’ compensation.
In keeping with the Board of Trustees’ fiduciary duties, we launched an internal investigation, led by the Tucker Ellis law firm, when we learned of these issues as we prepared for our CEO transition, resulting in the following actions to date:
- The Board demanded immediate repayment of the supplemental bonus money. On October 31, Dr. Boutros repaid $2,104,337.11, which represented the supplemental bonus money paid without approval for performance in calendar years 2017 through 2021, plus $124,003.86 in interest.
- The Board on November 9 approved and enacted immediate CEO spending and hiring limitations that were to remain in place through December 31, 2022.
Dr. Boutros informed the Board at a public meeting that he had self-reported to the Ohio Ethics Commission on November 1, 2022, the day after the repayment. We stand ready to cooperate with any investigating authorities while we continue our internal investigation.
The MetroHealth Board of Trustees is the only administrative body that can approve the CEO’s compensation, including bonuses, and set performance evaluation metrics for the CEO.
MetroHealth offers its CEO a performance-based variable compensation (PBVC) plan that makes a bonus available based on achievements reached against annual organizational goals approved by the Board of Trustees. The Board of Trustees did not delegate to Dr. Boutros the authority to self-evaluate his performance against metrics never disclosed to the Board, and then authorize supplemental bonus payments for himself in amounts never disclosed to the Board. Dr. Boutros omitted reporting his full compensation to the Board – and to a nationally recognized compensation consultant hired to annually review and assess Dr. Boutros’ compensation.
We have implemented, and will continue to implement, additional processes and safeguards to ensure the integrity of the payment and bonus process.
Dr. Nabil Chehade will assume the CEO’s duties on an interim basis until the hospital transitions to its new president and CEO, Dr. Airica Steed, on Dec. 5."
Steed was named as Boutros' successor in September.
When asked if it was looking into the matter, the Cuyahoga County Prosecutor's Office released the following statement:
"Our office is in contact with the Ohio Ethics Commission to review the matter. We decline to comment further at this time."
Cuyahoga County Council President Pernel Jones issued the statement below on Tuesday:
The MetroHealth System 2023 budget was on today's Cuyahoga County council agenda but News 5 was told MetroHealth asked to have it rescheduled.
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