Santa Clara County Voters Approve Hospital Salary Cap Initiative

Voters in Santa Clara County have approved a ballot initiative -- Measure M -- that will cap the salaries and compensation packages of executives at El Camino Hospital in Mountain View, Becker's Hospital Review reports.

After votes were counted in all of the county's 108 precincts, about 51.9% of voters supported Measure M, while 48.1% rejected it (Herman, Becker's Hospital Review, 11/7).

Background

The measure stems from a labor dispute between the hospital and Service Employees International Union-United Health Care Workers West, which represents some of the lowest-paid workers at El Camino's two hospital campuses.

The dispute was triggered earlier this year when the hospital imposed a contract requiring workers to pay more for their health care benefits.

SEIU-UHW collected signatures to put Measure M on the ballot.

Hospital officials had contended that capping executives' salaries would hinder the hospital's ability to attract and retain talented leaders.

Ballot Measure Details

Under Measure M, annual salaries for El Camino executives will be capped at twice the California governor's salary, which is $173,987 annually. Currently, El Camino CEO Tomi Ryba earns $695,000 annually and is eligible for a bonus of up to 30% for meeting specific professional goals.

Chris Ernst -- a spokesperson for the hospital -- said that compensation of at least nine other hospital executives also will be reduced under the measure (California Healthline, 10/18).

Union Official Says Measure M Was Intended as 'Bargaining Chip'

Kary Lynch -- a psychiatric technician and union official for the SEIU-UHW -- said that Measure M originally was intended only to influence the outcome of labor contract talks with El Camino.

Lynch said, "Truthfully, the measure was initially proposed as a bargaining chip in the negotiating process," adding, "We picked salaries because it was something that resonated with the voters."