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Proposed Measure To Cap Hospital Execs’ Pay Pulled From November Ballot

Photo credit: Pictures of Money / Flickr

A pile of money, July 23, 2014.

SEIU United Healthcare Workers West was forced to withdraw the measure, which would have limited compensation to $450,000 a year, after an arbitrator ruled it violated an agreement the union had with the California Hospital Association.

A proposed initiative that would have capped the pay of hospital executives in California will not be on the fall ballot.

SEIU United Healthcare Workers West was forced to pull the measure after an arbitrator this week ruled it violated an agreement the union had with the California Hospital Association.

The measure would have limited the compensation packages of hospital executives to $450,000 a year.

Union spokesman Steve Trossman maintains capping executive salaries makes sense.

“We believe that people who run a hospital should make a decent salary," he said. "But we don’t believe it’s reasonable for a hospital executive to make 3, or 4, $5 million a year, when they’re essentially running a charity.”

The Hospital Association argued limiting executive pay would have prompted top administrators to move out of California.

Trossman said the union will try to put a similar measure on the 2018 ballot.

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