News Headlines Article

Bill targeting Kaiser executive compensation disclosure moves forward
Modern Healthcare

California’s Senate Judiciary Committee passed a bill that aims to boost not-for-profit health systems’ public disclosure requirements for executives’ deferred compensation.

AB 1404, drafted by California state Assembly member Miguel Santiago, a Democrat, would close an alleged loophole that allows not-for-profit systems to hide deferred compensation when not-for-profit entities are used to provide a supplemental retirement plan to employees that work for a for-profit arm of the company. The legislation would require organizations to tell the secretary of state the total amount of deferred compensation allocated by the not-for-profit entity every year, the name and title of each individual, whether taxes were paid on the deferred compensation, and the agreement or legal document governing the deferred compensation.