Former CEO Stewart is entitled to $1M payout under terms of contract, St. Joe's says

The former CEO of the St. Joseph’s Health System (SJHS), who took a trip to the Caribbean over the holidays amid the coronavirus pandemic, is entitled to more than $1 million in severance, according to the agency.

In a release on Tuesday, the board’s chair Sister Anne Anderson said SJHS and Dr. Tom Stewart “parted ways on a without cause basis” and that the terms of his contract will be “upheld.”

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Under the terms of Stewart’s contract, the former CEO could collect over $1 million if he can not find permanent work with a salary equivalent or better than his deal with St. Joe’s.

The contract, which came into effect in August 2018, has a “continuation period” of 24 months that would pay him his base salary bi-weekly following a termination without cause.

Stewart’s compensation in the agreement was set at an annual salary of $552,500 and a performance-based adjustment of $97,500.

Last week, the senior vice-president of the SJHS said Stewart was on “approved vacation” from Dec. 18 to Jan. 5. During that time, he travelled to the Dominican Republic.

Following news of his trip becoming public, Stewart resigned from a position that advised the Doug Ford government on the pandemic.

He also resigned from two other panels and was removed as CEO of Niagara Health after the agency discontinued its purchase of CEO services from St. Joseph’s.

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A statement from Niagara Health said that for the past six years, the organization has had a contractual agreement with St. Joseph’s Health System that, among other things, meant the two health systems would have the same CEO.

Former executive vice president and interim president of St. Joe’s in Hamilton Winnie Doyle will take on the post effective Jan. 18.

© 2021 Global News, a division of Corus Entertainment Inc.

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