Valley Children’s CEO pay is excessive. Scale it back to earn community trust | Opinion

Since its founding seven decades ago, Valley Children’s Hospital near Fresno has developed into one of the nation’s best medical centers for treating young people with life-threatening diseases.

It is in the news now, however, for a different reason: the eye-popping pay given to its chief executive officer and other top leaders.

The news website ProPublica gathered annual tax filings that show Valley Children’s president/CEO, Todd Suntrapak, earned $5.1 million in 2022. Additionally, the hospital’s board of trustees approved giving him a $5 million loan for the purchase of a home.

In addition, four senior vice presidents earned more than $1 million each in compensation in 2022.

The dollar amounts stand in stark contrast against the poverty reality of the San Joaquin Valley. Almost one in five people in Fresno County meets the federal government’s classification for poverty.

Suntrapak’s financial arrangements are notable in other ways, too.

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As reported by Bee staff writer Erik Galicia, Suntrapak earned more in 2022 than the CEO of St. Jude Children’s Research Hospital, Dr. James Downing. St. Jude’s, located in Memphis, Tennessee, is well known nationally for its television appeals featuring children with cancer diagnoses.

As reported by Galicia, Valley Children’s is ranked 16th in size on Becker’s Hospital Review list of the nation’s 30 largest children’s hospitals. Suntrapak earned more money in the fiscal year ending Sept. 30, 2022, than the CEOs of two larger hospitals on the Becker’s list — Rady Children’s Hospital in San Diego and Children’s Hospital Los Angeles.

‘An absolute disgrace’

So the logical question arises: Are Suntrapak and the other executives overpaid? Two Fresno City Councilmembers believe so. Garry Bredefeld and Miguel Arias held a news conference to outline their shock and disgust with the compensation.

“It’s a disgrace that the CEO and its executives are enriching themselves on the backs of sick and poor children,” Bredefeld said. “An absolute disgrace.”

Arias blamed the hospital board for forgetting its mission to treat sick children. The councilmembers said they will request an investigation by California’s attorney general into how Valley Children’s uses any state funding.

Cut pay by half

A review of the tax filings shows how Suntrapak’s compensation has risen over recent years.

In 2014, he earned $703,774. His compensation crossed the $1 million mark in 2016. Increases were steady each subsequent year, then in 2020 Suntrapak crossed the $2 million threshold. In 2021, he was paid $3.9 million, which then led to 2022 and his $5.1 million.

To understand the rapid hikes in the last few years, The Bee Editorial Board requested an interview with Suntrapak, but hospital communications officer Zara Arboleda said he would not be giving an interview, nor would any board members be available at this time.

Michael Hanson, formerly the superintendent of Fresno Unified School District and now chair of the hospital board, did issue a statement that called Valley Children’s “one of the nation’s premier children’s hospitals.” It enjoys “some of America’s best executives, caregivers and team members.

“As such, the quality of our care and the fiscal management of our organization is — and continues to be — best in class.”

“Best in class” has an unintended cost, however: Cynicism on the part of locals who might now be less inclined to donate when Valley Children’s make appeals. It will be more difficult to encourage Valley residents to support Kids Day, for example, when the CEO is bringing in over $5 million a year. (Disclosure: The Bee has been a longtime supporter of Kids Day).

Some might see Suntrapak’s compensation as obscene, given the Valley’s base of poverty, and might want him to resign as a way for the hospital to earn back trust.

But that would mean getting rid of the leader who since 2012 has led Valley Children’s advancement into the top ranks of hospitals specializing in care of young people.

Rather than an outright resignation, the board of trustees should cut Suntrapak’s salary by half.

Paying the CEO of Valley Children’s $2 million to $2.5 million a year? Understandable. But $5 million? That’s crazy money.

Correction: The initial posting of this editorial misidentified the news agency that gathered the salary data. It was ProPublica.