Schedule J
(Form 990)
Department of the Treasury
Internal Revenue Service
Compensation Information
For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 23.
SchJMediumBullet Attach to Form 990.
SchJMediumBullet Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public Inspection
Name of the organization
Banner Health
 
Employer identification number

45-0233470
Part I
Questions Regarding Compensation
Yes
No
1a
Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.
b
If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain .........
1b
Yes
 
2
Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
directors, trustees, officers, including the CEO/Executive Director, regarding the items checked in line 1a? ..
2
Yes
 
3
Indicate which, if any, of the following the filing organization used to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.
4
During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:
a
Receive a severance payment or change-of-control payment? ................
4a
Yes
 
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? .........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? .........
4c
 
No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.
Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.
5
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:
a
The organization? ...........................
5a
 
No
b
Any related organization?
5b
 
No
If "Yes," to line 5a or 5b, describe in Part III.
6
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization?
6a
 
No
b
Any related organization? .........................
6b
 
No
If "Yes," to line 6a or 6b, describe in Part III.
7
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............
7
Yes
 
8
Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................
8
 
No
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50053T
Schedule J (Form 990) 2014
Page 2

Schedule J (Form 990) 2014
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.
For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.
Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.
(A) Name and Title (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and other deferred compensation (D) Nontaxable
benefits		 (E) Total of columns
(B)(i)-(D) 		(F) Compensation in column(B) reported as deferred in prior Form 990
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
1Peter S FinePresident & CEO (i)
(ii)		 1,319,306
.................
0 		817,882
.................
0 		136,797
.................
0 		2,227,979
.................
0 		31,725
.................
0 		4,533,689
.................
0 		0
.................
0
2David BixbySVP/General Counsel/Secretary (i)
(ii)		 542,090
.................
0 		261,367
.................
0 		7,369
.................
0 		483,825
.................
0 		22,916
.................
0 		1,317,567
.................
0 		0
.................
0
3Patricia BlockVP TREAS/TREASURER (THRU 3/14) (i)
(ii)		 52,262
.................
0 		86,095
.................
0 		39,935
.................
0 		2,761
.................
0 		2,500
.................
0 		183,553
.................
0 		0
.................
0
4Kathy BollingerPRESIDENT - AZ WEST REGION (i)
(ii)		 603,399
.................
0 		276,647
.................
0 		112,521
.................
0 		94,366
.................
0 		28,752
.................
0 		1,115,685
.................
0 		0
.................
0
5Ronald BunnellExecutive Vice-President & CAO (i)
(ii)		 904,823
.................
0 		435,122
.................
0 		12,881
.................
0 		1,322,477
.................
0 		28,000
.................
0 		2,703,303
.................
0 		0
.................
0
6Dennis DahlenSenior Vice-President & CFO (i)
(ii)		 679,215
.................
0 		299,020
.................
0 		121,168
.................
0 		101,157
.................
0 		33,198
.................
0 		1,233,758
.................
0 		0
.................
0
7James FerandoPresident - Western Region (i)
(ii)		 514,888
.................
0 		235,342
.................
0 		107,115
.................
0 		81,830
.................
0 		19,671
.................
0 		958,846
.................
0 		0
.................
0
8Robert GouldCEO - Banner Estrella Med Ctr (i)
(ii)		 395,968
.................
0 		181,136
.................
0 		18,516
.................
0 		60,913
.................
0 		32,495
.................
0 		689,028
.................
0 		0
.................
0
9John Hensing MDExecutive Vice-President & CMO (i)
(ii)		 683,030
.................
0 		329,195
.................
0 		142,437
.................
0 		110,315
.................
0 		30,988
.................
0 		1,295,965
.................
0 		0
.................
0
10Rebecca KuhnPRESIDENT - AZ EAST REGION (i)
(ii)		 588,532
.................
0 		276,647
.................
0 		128,957
.................
0 		94,366
.................
0 		21,589
.................
0 		1,110,091
.................
0 		0
.................
0
11Ricky LathamPhysician (i)
(ii)		 623,544
.................
0 		361,369
.................
0 		19,483
.................
0 		10,400
.................
0 		38,075
.................
0 		1,052,871
.................
0 		0
.................
0
12CARSON WEBBPHYSICIAN (i)
(ii)		 576,472
.................
0 		331,888
.................
0 		17,992
.................
0 		10,400
.................
0 		27,876
.................
0 		964,628
.................
0 		0
.................
0
13ROMEL WRENNPHYSICIAN (i)
(ii)		 595,344
.................
0 		262,995
.................
0 		4,355
.................
0 		10,400
.................
0 		33,428
.................
0 		906,522
.................
0 		0
.................
0
14Charles LehnSVP Network Operations (i)
(ii)		 383,584
.................
0 		178,067
.................
0 		116,636
.................
0 		64,446
.................
0 		30,875
.................
0 		773,608
.................
0 		4,199
.................
0
15Anuj NarangCEO - Banner Good Samaritan MC (i)
(ii)		 405,857
.................
0 		125,246
.................
0 		17,757
.................
0 		89,211
.................
0 		6,141
.................
0 		644,212
.................
0 		0
.................
0
16Edward Oxford JrSenior VP Chief Talent Officer (i)
(ii)		 476,113
.................
0 		230,888
.................
0 		62,559
.................
0 		110,725
.................
0 		20,449
.................
0 		900,734
.................
0 		0
.................
0
17Brenda SchaeferVP TREAS/TREASURER(as of 3/14) (i)
(ii)		 179,506
.................
0 		0
.................
0 		84,387
.................
0 		0
.................
0 		6,079
.................
0 		269,972
.................
0 		0
.................
0
18Ryan SmithSenior VP & CIO (i)
(ii)		 372,931
.................
0 		0
.................
0 		105,648
.................
0 		18,755
.................
0 		26,276
.................
0 		523,610
.................
0 		0
.................
0
19Richard SuttonCEO - North Colorado Med Ctr (i)
(ii)		 420,798
.................
0 		178,922
.................
0 		121,973
.................
0 		10,400
.................
0 		28,456
.................
0 		760,549
.................
0 		52,380
.................
0
20Michael WardenFORMER Senior VP & CIO (i)
(ii)		 0
.................
0 		143,283
.................
0 		0
.................
0 		0
.................
0 		0
.................
0 		143,283
.................
0 		0
.................
0
21Larry VolkmarCEO - BGSMC (THRU 4/14) (i)
(ii)		 0
.................
0 		0
.................
0 		149,139
.................
0 		0
.................
0 		3,417
.................
0 		152,556
.................
0 		0
.................
0
22Eric ReimanPRES CEO/CSO - BANNER RESEARCH (i)
(ii)		 530,573
.................
0 		199,888
.................
0 		101,950
.................
0 		10,400
.................
0 		7,366
.................
0 		850,177
.................
0 		0
.................
0
23Todd WernerCEO - Banner Desert Med Ctr (i)
(ii)		 374,605
.................
0 		167,478
.................
0 		135,503
.................
0 		10,400
.................
0 		30,598
.................
0 		718,584
.................
0 		67,197
.................
0
Schedule J (Form 990) 2014
Page 3

Schedule J (Form 990) 2014
Page 3
Part III
Supplemental Information
Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II.
Also complete this part for any additional information.
Return Reference Explanation
SCHEDULE J, PART I, LINE 1A FIRST CLASS TRAVEL EFFECTIVE 3/2014, THE BH TRAVEL POLICY WAS REVISED TO ALLOW FOR FIRST CLASS AIR TRAVEL ON ANY FLIGHT WITHIN THE US AND THE LESSER FARE OF 1ST OR BUSINESS CLASS ON INTERNATIONAL TRAVEL FOR THE PRESIDENT/CEO. GROSS-UPS RYAN SMITH AND BRENDA SCHAEFER RECEIVED ONE-TIME PAYMENTS FOR RELOCATION EXPENSES, WHICH INCLUDED A GROSS-UP. THIS AMOUNT IS INCLUDED IN EACH INDIVIDUAL'S COMPENSATION AND IS INCLUDED IN SCHEDULE J, PART II, COL B(III). THE AMOUNT OF EACH PAYMENT IS LISTED BELOW. RYAN SMITH - $88,072 BRENDA SCHAEFER - $84,337 SCHEDULE J, PART I, LINE 4A THE FOLLOWING INDIVIDUAL RECEIVED SERVERANCE PAY DURING 2014 (INCLUDED IN SCH J, PART II, COL (B)(III)): LARRY VOLKMER - $148,176
SCHEDULE J, PART I, LINE 4B 1. SERP II - COVERED 3 EXECUTIVES (FINE, BUNNELL, BIXBY). THIS SERP IS HELD IN A RABBI TRUST AT NORTHERN TRUST COMPANY. EXEC 457(B) COVERED APPROXIMATELY 231 FORMER AND CURRENT EXECUTIVES. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS AND IS 100% VESTED. TAXATION OCCURS UPON DISTRIBUTION. THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. CONTRIBUTIONS ARE CALCULATED BASED ON ACTUARILY DETERMINED FACTORS. EMPLOYER CONTRIBUTIONS TO SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (INCLUDED IN COL C AS DEFERRED COMPENSATION): PETER S. FINE - $1,819,778 RONALD BUNNELL - $1,047,946 DAVID BIXBY - $394,096 2. EXEC 457(F) - COVERED APPROXIMATELY 50 FORMER AND CURRENT EXECUTIVES. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS. VESTING OCCURS UPON MEETING VESTING REQUIREMENTS (SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE) - EARLIER OF AGE 62, 5 YEARS FROM DATE OF DEPOSIT, OR RULE OF 80. TAXATION OCCURS UPON DISTRIBUTION (IF VESTED). THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. PAYOUT AMOUNTS ARE TAXABLE AND INCLUDED IN SCHEDULE J, PART II, COL B(III). DEPOSIT AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COL (C). Name 457(F) PAYOUT EMPLOYER 457(F) DEPOSIT Anuj Narang $0 $78,811 Charles Lehn $98,694 $0 Dennis Dahlen $99,807 $0 Edward Oxford Jr. $0 $41,927 Eric Reiman $81,618 $0 John Hensing, MD $118,869 $0 Kathy Bollinger $91,963 $0 Patricia Block $5,958 $0 Rebecca Kuhn $108,585 $0 Richard Sutton $52,380 $0 Robert Gould $0 $50,513 Ryan Smith $0 $18,755 Todd Werner $67,197 $0
SCHEDULE J, PART I, LINE 7 1. PETER FINE, RONALD BUNNELL, JAMES FERANDO, DAVID BIXBY, JOHN HENSING, EDWARD OXFORD, DENNIS DAHLEN, KATHY BOLLINGER, REBECCA KUHN, AND CHARLES LEHN PARTICIPATE IN A LONG-TERM INCENTIVE PLAN (LTIP) COVERING A THREE-YEAR CYCLE FROM 2013-2015. THE LTIP WAS DESIGNED AT THE INITIATIVE OF THE BANNER BOARD OF DIRECTORS WITH THE ASSISTANCE OF TOWERS WATSON, AND ALL COMPONENTS WERE APPROVED BY THE BOARD. THE PLAN HAS THREE AREAS OF PERFORMANCE TARGETS: OPERATING MARGINS, ACCOUNTABLE CARE ORGANIZATION (ACO) QUALITY PERFORMANCE AND COVERED LIVES (POPULATION HEALTH MANAGEMENT). AWARDS ARE CALCULATED AS A PERCENTAGE OF AVERAGE BASE SALARY DURING THE THREE-YEAR CYCLE, AND OPPORTUNITY VARIES BY POSITION LEVEL. THE PLAN REQUIRES A THRESHOLD LEVEL OF FINANCIAL PERFORMANCE BEFORE ANY AWARDS CAN BE MADE, AND THE AMOUNT OF THE AWARDS VARIES WITH THE DEGREE OF ACHIEVEMENT OF THE TARGETS. THE MAXIMUM LTIP PAYOUT OPPORTUNITY RANGES FROM 9% TO 75% OF THE AVERAGE THREE-YEAR BASE SALARY. AWARDS HAVE BEEN ACCRUED UNDER THE LTIP, BUT NO PAYMENTS ARE MADE UNTIL AFTER YEAR-END AND ACHIEVEMENT IS VERIFIED BY THE BANNER HEALTH BOARD COMPENSATION COMMITTEE AND APPROVED BY THE FULL BOARD OF DIRECTORS OF BANNER HEALTH. ALL LTIP COMPENSATION PAYMENTS ARE REPORTED IN THE INCENTIVE AND BONUS COMPENSATION SHOWN IN SCHEDULE J, PART II, COL B (II). AMOUNTS ACCRUED FOR 2014 FOR THE 2013-2015 CYCLE (TO BE PAID OUT IN 2016) ARE REPORTED IN SCHEDULE J, PART II, COLUMN C AS DEFERRED COMPENSATION. 2. BANNER HEALTH HAS A MANAGEMENT INCENTIVE PLAN (MIP) WHICH IS BASED ON COMPANY ACHIEVEMENT OF BASE AND STRETCH TARGETS FOR SEVERAL FINANCIAL AND NON-FINANCIAL/CLINICAL QUALITY METRICS THAT ARE ESTABLISHED ANNUALLY BY THE BANNER HEALTH BOARD OF DIRECTORS. AWARDS ARE GRANTED AS A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND VARY WITH THE POSITION LEVEL OF THE PARTICIPATING EMPLOYEE, RANGING FROM 24% TO 80% OF BASE SALARY. IN 2014, THERE WERE 748 MIP PARTICIPANTS. THE MIP WAS ACCRUED IN 2013 FOR THE 2014 MIP, AND PAYOUTS ON THE 2014 MIP WERE PAID IN 2015. MIP COMPENSATION IS INCLUDED IN SCHEDULE J, PART II, COL B (II). 3. CLINICAL PHYSICIANS EMPLOYED BY BANNER ARE TYPICALLY PAID ON THE BASIS OF A COMPENSATION SYSTEM THAT INCORPORATES A BASE SALARY AND A NON-FIXED PRODUCTIVITY COMPONENT THAT IS BASED UPON THE PHYSICIAN'S PRODUCTIVITY. THREE OF THE INDIVIDUALS LISTED IN FORM 990, PART VII, SECTION A, LINE 1A, RICKY LATHAM, M.D., CARSON WEBB, M.D., AND ROMEL WRENN, M.D., ARE PRACTICING INTERVENTIONAL CARDIOLOGISTS AT FAIRBANKS MEMORIAL HOSPITAL, FAIRBANKS, ALASKA, AND HAVE A COMPONENT OF COMPENSATION THAT IS NON-FIXED EQUAL TO THE NET REVENUES GENERATED BY THE PHYSICIAN THAT ARE IN EXCESS OF THE PRACTICE EXPENSES FAIRLY ALLOCATED TO THE PHYSICIAN, INCLUDING THE PHYSICIAN'S BASE SALARY, PRODUCTIVITY AND ALL OTHER COMPENSATION, SUBJECT TO A MAXIMUM LIMIT EQUAL TO 130% OF THE 90TH PERCENTILE OF THE COMPENSATION FOR INTERVENTIONAL CARDIOLOGISTS, BASED UPON NATIONAL COMPENSATION SURVEYS. THE RESPECTIVE NON-FIXED COMPONENT OF COMPENSATION FOR DRS. LATHAM, WEBB AND WRENN WAS $230,787, $204,858 AND $153,587 RESPECTIVELY. THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COL B (II).
SCHEDULE J, PART II 1) BONUS LIFE INSURANCE AS PART OF BANNER HEALTH'S EXECUTIVE SELECT BENEFIT PROGRAM (ESB) CERTAIN INDIVIDUALS PARTICIPATED IN THE BONUS LIFE INSURANCE PROGRAM (BLIP). ELIGIBLE EMPLOYEES COULD ELECT TO USE PART OF THEIR ESB ALLOWANCE TO PURCHASE BLIP THROUGH NORTHWESTERN MUTUAL. THE PARTICIPATING EMPLOYEE OWNS THE POLICY AND CAN ACCESS ITS CASH VALUE. THE ENTIRE AMOUNT PURCHASED IS REPORTED AS TAXABLE COMPENSATION IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS: JAMES FERANDO $85,916 EDWARD OXFORD, JR. $41,471 RICHARD SUTTON $51,013 TODD WERNER $50,207 2) CASHOUT OF PAID TIME OFF CERTAIN INDIVIDUALS RECEIVED ONE-TIME CASHOUTS OF EARNED AND UNUSED PAID TIME OFF. THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS: PETER FINE $93,181 PATRICIA BLOCK $16,111
Schedule J (Form 990) 2014

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