Exeter Hospital CEO Earned $161,136 Bonus

CEO Kevin Callahan earned a $161,136 bonus in 2009, according to a released this week.

Callahan's bonus – the highest of any of his peers that year – was 35.3 percent of his total compensation in 2009. His base salary was $456,384 and his total compensation was $740,927.

Exeter Hospital is one of 23 nonprofit hospitals in the state. Because they are nonprofits, they don't pay taxes – and laws require they be more open about their financial practices.

New Hampshire Attorney General Michael Delaney this week the high salaries of CEOs at these nonprofit hospitals. He cited a new report that showed from 2006 to 2009, their pay increased an average of 18 percent – much higher than the 4.8 percent increase for all private sector workers.

Delaney qualified his statements by saying the hospitals play an important role in the state, providing care to tens of thousands of people. He added their CEO compensation is in line with similar hospitals throughout New England.

Callahan's compensation in 2009 was 34 percent higher than the $489,000 average for the other nonprofit hospital CEOs in New Hampshire. A chart of the compensation packages can be found to the right under "PHOTOS." A comprehensive report can be found under "PDFS."

Glenn McKenzie, chairman of the Exeter Health Resources Board of Trustees, defended Callahan's compensation.

"Our executive compensation practices are consistent with accepted norms and our CEO’s compensation is in alignment with his peers, especially considering his 30 year tenure at our institution," McKenzie said in a statement.

Callahan is currently doing damage control after a disastrous hepatitis C outbreak at the hospital. The outbreak was likely started by a drug-stealing hospital employee who spread the disease through dirty needles, state health officials have said.

Callahan went on television to for the outbreak. His hospital is facing lawsuits related to the matter as the FBI an investigation.

Follow Exeter Patch on Facebook and Twitter