Pay caps sought in Massachusetts.(Brief article)

Seven-figure pay packages for hospital CEOs in Massachusetts have sparked a debate about capping nonprofit compensation.

State Sen. Mark Montigny (D-New Bedford) presented a bill to cap nonprofit CEO salaries at $500,000 for nonprofits with annual revenue exceeding $1 billion.

"You can't do God's work on a banker's salary. It just shouldn't work that way," said Montigny, according to the Boston Herald.

The bill comes as residents are battling health-care premium spikes and slashed benefits while CEOs at Boston hospitals received 13 to 46 percent pay increases. Hospital officials said the pay hikes help retain executive talent who could make more at for-profit jobs. The packages include retirement payments, performance bonuses and expense accounts and are determined by hospital boards.

Some of the high-paid executives include Boston Medical Center CEO Elain Ullian, who makes $1.3 million, a 46-percent increase from 2004 to 2006, and Partners for Healthcare CEO James Mongan, who pulled in $1.96 million during 2006.

"If this were a discussion on a for-profit business paying its executive salary, I wouldn't be here before the judiciary committee," said Montigny at the hearing. "These are charities that receive tax benefits and ... I'm simply saying that at a time when people cannot afford to pay their premiums, we should be looking at this."

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