Hospital Board to consider contract extension for Verinder

The Sarasota Memorial Hospital board is poised to vote on a renewal of contract for President and CEO David Verinder on Tuesday. 

Verinder has been president and CEO since 2014 after former president and CEO Gwen MacKenzie stepped down. His contract extends until 2022, but board members are considering an eight-year extension, bringing his total contract length to 10 years. 

Verinder's performance is reviewed annually and each December the board determines his salary. This December, the board voted to increase his salary from $1,045,000 in 2020 to $1,125,000 in 2021, or a 7.1% increase. 

SMH public relations manager Kim Savage said the increase shifted Verinder from the 65th percentile of CEOs serving in comparable roles to the 75th percentile.

Verinder is not eligible for another salary increase until December 2021

When discussed at a December governance effectiveness committee, board members were split over how long a new contract should be and how much of a raise Verinder should be given.

Board member Sharon Wetzler DePeters said the hospital “has been blessed” to have Verinder’s leadership, particularly during the pandemic. She said Verinder’s salary should at least be in the 70th percentile and proposed the board offer him a 10-year contract. 

Board member Richard Rehmeyer said Verinder’s 2020 salary did not show the board’s gratitude for the “outstanding” work he’s done. He said he believes it should be in the 75th percentile and Verinder should be offered a 10-year contract. 

Board member Tramm Hudson expressed concern over a long-term contract, stating it would hobble future boards. Instead, he said a contract of two or three years would be more appropriate. 

He also was in favor of keeping Verinder’s salary the same, stating board members “need to recognize their fiduciary responsibility to the citizens.” 

Along with the raise, a motion that the board approve an extension of Verinder’s contract from two to 10 years, subject to details being confirmed at a later meeting, passed with an 8-1 vote. Hudson cast the dissenting vote. 

Board members will again discuss the terms of Verinder’s contract during a meeting Tuesday and cast final votes on its terms. 

Board members will discuss the agreement during a 9 a.m. governance effectiveness committee meeting before voting during a 2 p.m. board meeting.

The meeting will be held in the old board room/auditorium at Sarasota Memorial Hospital. The auditorium is located on the first floor of the main hospital at 1700 S. Tamiami Trail, though the hospital has limited visitation due to COVID-19.