The Palm Beach Post from West Palm Beach, Florida • Page 125

THE PALM BEACH POST SUNDAY, MAY 18, 2003 5F Hospital CEO pay CEO compensation varies widely at the five nonprofit hospitals in Palm Beach County and the Treasure Coast. The pay has been on a roller coaster the past few years mirroring the hospitals' financial performance. 393 beds CEO Randy Pierce (Resigned December 2001) 363 beds CEO Robert Hill 150 beds CEO R. Michael Barry (Started December 2000) Year Salary Profit (loss) 2001 $396,000 $5.5 million 2000 $290,341 $3 million 1999 $182,540 $1.1 million 336 beds CEO Richmond Harman 335 beds CEO Jeff Susl Salary Profit (loss) Year Salary $258,866 ($700,000) 2001 $295,353 $343,499 ($25.3 million) 2000 $296,199 $302,000 $9.9 million 1999 $288,547 Profit (loss) $9 million $5 million $12.1 million Year 2001 2000 1999 Salary $453,556 $356,668 $410,214 Profit (loss) $7.6 million $6.5 million ($7.7 million) Year 2001 2000 1999 Salary $245,373 ($2.5 $235,535 ($5.9 $215,394 Year 2001 2000 1999 Profit (loss) million) million) NOTE: Jupiter Medical Center's CEO Barry's 2001 compensation Includes 2002 bonus, value of benefits and 13 months pay. His 2000 compensation represents 10 months of pay.

Martin Memorial Medical Center has 2 hospitals, one in Stuart and another in Port Salerno Source: IRS 990 tax returns and audited financial statements. All the years are fiscal years. STAFF GRAPHIC GEOs usually stay longer at nonprofit hospitals CEO from IF increase or decrease a CEO's compensation by up to 40 percent each year. Brent Longnecker, president of Resources Consulting Group in Spring, Texas, thinks the trend has gone too far. "A lot of boards have overshot the problem," of making sure their CEO compensation reflects the hospital's performance.

A hospital CEO's performance goals typically include financial benchmarks as well as numerous quality indicators and patient satisfaction surveys, he said. Longnecker and other experts said the money nonprofit CEOs in Palm Beach County and the Treasure Coast are paid appeared within the average for similar type and size hospitals. Nonprofit CEOs usually have a greater tenure at one hospital than for-profit CEOs, who tend to bounce between company-owned hospitals. Experts disagree on whether CEOs at for-profit or nonprofit hospitals make more money. Overall hospital CEO turnover fell to 14 percent in 2002, the lowest level since 1994, according to annual data from the American College of Healthcare Executives.

Turnover among CEOs was 15 percent in 2001 and 17 percent in 2000. Jupiter Medical Center Chief Executive pensation. Nowhere has executive pay rode a roller coaster more than at Martin Memorial in Stuart. After taking home $410,214 in 1999, CEO Harman's pay fell to $356,668 in 2000, then soared to $453,556 in 2001. The ups and downs match the hospital's fiscal performance.

While the hospital was profitable last year, it is expected to fall back into the red this fiscal year, which ends in September. The hospital's losses are largely because of surging insurance costs and fewer-than-expected patient admissions. As a result, Harman's pay is expected to take another $100,000 tumble next year, officials said. About 30 percent of Harman's annual pay is tied to performance bonuses, said Calvin Shank, chairman of the hospital's board of directors. "I think it makes an employee more conscious of what is going on," Shank said.

They are going to be vigilant of everything that goes on in the hospital We think it's a pretty good system." Harman is one of the longest-serving hospital CEOs in the region, starting at Martin Memorial in 1989. Shank said the "variable pay" should not be viewed as a penalty when times are tough. "It's a reward for good performance." philgalewitzpbpostcom Photo by VADA MOSSAVAT months he worked at the hospital that fiscal year. The 2001 return reflects 13 month's pay and a bo-' nus for 2002 work, months he worked at the hospital that fiscal year. The 2001 return reflects 13 months' pay and a bonus for 2002 work, Barry said.

Barry said it's appropriate that his pay re fleet his work. But he said his base pay makes up the biggest part of his annual com Jupiter Medical Center Chief Executive Officer R. Michael Barry said his compensation is difficult to figure because his 2000 tax return reflects 10 R. Michael Barry said his pay increases have been equal to or less than average increases of hospital employees. He refused to say what those increases were.

Barry's compensation is difficult to figure because his 2000 tax return reflects 10 1 think you'll see more fun elements come to the phone soon, more MARCO SUSANI, director, Motorola's advanced concept group Cellphone functionality is taking a back seat to fun AXa SEIDEMANN Bloom berg News The Nokia 6220 (left) has a color screen and a built-in digital music player. The Nokia 3300 mobile phone (right) comes with a headset and also has the ability to play music. CELLPHONES from if "People thought I was crazy to think that mobile phones you could carry around in your hand would be successful," said Martin Cooper, the Motorola project manager who has been called the father of the cellular phone. No one thinks he's crazy any more. Over those two decades the brick has morphed into a tiny 3.5-ounce, Beethoven-tootling device that many service providers give away.

Or, for just a few hundred dollars, consumers can choose phones that double as a color-screen video camera, a Web browser, a music player, a personal organizer and more. little wonder that for some people, the cellphone has become a status symbol, a trendy wearable accessory, and even a lifeline. Researchers say 423 million handsets were sold in 2002, and that about 1 billion people around the world nearly one in six now use a cellphone. Europe has usage rates as high as 80 percent, and emerging markets in China and India are growing rapidly. People love their cellphones and cheap wireless plans so much that an estimated 3 percent to 5 percent of the country's 144 million wireless subscribers up to 7.2 million phone customers have severed their land-line connections.

Cellphones have become so ubiquitous that legislation has been introduced in dozens of states to regulate usage. Already, New York has made it illegal for drivers to use a hand-held cellphone. The wave of cellphone popularity has brought consumers and businesses plenty of pleasure and pain. The cellphone's effect on the business world is hard to exaggerate. Competitive pressures on those who make, sell and service traditional land-line equipment will only increase, because studies show that 30 percent of Americans aged 18 to 29 use the cellphone as their primary phone.

With wireless plans boasting gobs of free minutes, cellphones might also send conventional longdistance service the way of the rotary dial. Experts say 20 percent to 25 percent of long-distance minutes are now associated with wireless phones, compared with 5 percent to 10 percent five years ago. Makers of personal computers and other hardware are growing nervous as cellphones learn to perform the same tasks as the machines they sell. This trend is likely to accelerate with the rollout of speedy third-generation services. This system moves data wire-lessly at 2.4 megabits per second, similar to the performance of a high-speed cable modem for computers.

It is now coming on line in Europe and Asia, and could be spreading throughout North America within the next two years. Such speeds will make phones, already being used for text messaging and e-mail, full-strength Internet devices capable of Web browsing, file exchanges and teleconferencing. Some see it replacing the PC as the central device most people use to handle data. Phones getting smarter Already, companies such as Nokia, Samsung and Microsoft are bringing the first crop of smart phones to market. These handsets with larger screens are able to manage data and run various programs just like a miniature PC.

For example, Microsoft is developing an operating system specifically for mobile handsets. It lets a user add capabilities simply by installing additional software. E-mail attachments in formats such as Word can be viewed using models based on Microsoft's Smartphone 2002 OS system. Researchers say a price of between $300 and $600 shouldn't keep sales of smart phones from climbing by more than 60 percent a year. For consumers, the new technology is opening a new world of new powers, fun and hassles.

By -2006, said Charles Golvin, senior analyst at Forrester Research, third generation networks will lead to a plethora of other uses for the cellphone, such as watching movie trailers and even paying bills. "In other parts of the world people do things like pay for parking with their mobile phones because Europeans are more comfortable with using mobiles for doing things other than talking," he said. "It's never easy to change how people use something, and so it will be a longer, steady transition here." Just last Monday, RealNetworks Inc. announced it would send audio and video streams of news, music, and sports programming to consumers' mobile phones. The deal, which involves content from partners such National Public Radio, is one of the first services of its kind in the United States.

For now it's available only to those who have a Nokia 3650 phone, which boasts voice dialing and other advanced features, but eventually it will work on other cellphones as well. Marco Susani, director of Motorola's advanced concept group, said functionality was the main driver of cellphone design in the I Mi' jyj) fv XGv- W.i ternet's few guaranteed revenue generators, is expected to become more widespread. With more and more children and teenagers using cellphones, creating new filtering services will be a challenge. Invented In a hurry The world has clearly come a long way from the day a Motorola senior manager asked Rudy Krol-opp and other design team members to design a cellular device in six weeks. The rush job was necessary to keep regulators from giving telecommunications competitor complete dominance in cellular communications in the United States.

"There were frequencies that were being allocated, and we wanted to get in on that and make sure that the frequencies didn't go to somebody else," said Krolopp, 73. "In five days we had about seven or eight different phone models in mind," he said. "A bunch of us met at a restaurant and poured a few drinks and chose one." Krolopp's design team called the gadget a "shoe phone" after the device made famous by TVs Get Smart. That was in 1973, and it took Motorola another 10 years to refine the device into something that could be sold on the mass market 'We were real visionaries, but nowhere in our wildest dreams did we think this would saturate the market as quickly as it has," Krolopp said. semlingcoxnews.com Bloomberg News The Nokia 3650 combines a mobile phone with a high-resolution camera, camcorder, video player and multimessaging functions.

Farm, a trendy men's clothing line, as well as for Harley-Davidson motorcycle buffs eager to own cellphones ringing with tunes such as Born to be Wild. People have become familiar with some of the downsides of cellphones, from movie theater chatterers to fears of health risks from emissions of electromagnetic radiation. But with advances come new obstacles that will have to be overcome. In Japan, where text messaging is popular, junk e-mail has become i a problem. And pornography, one of the In- past.

"But now the element of pleasure is a huge driver, whether it's the coolness of the design or the pleasure of touching the material or the personalization of the device," he said. "I think you'll see more fun elements come to the phone soon, more gaming," he said, "YouH see the use of vibrations as an element of communication. We say that people will be able to make a friend's cellphone purr." They can even make a fashion statement Motorola, for example, has agreed to produce phones for Phat.