TY 2015 Form 990 Schedule J

(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 on prior Form 990
(A) Name and Title		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
1PATRICK FRYPRES. & CEO, SH (PART YEAR)	(i) (ii)	0 ------------- 1,562,833	0 ------------- 1,913,420	0 ------------- 365,492	0 ------------- 3,592,743	0 ------------- 35,166	0 ------------- 7,469,654	0 ------------- 1,281,022
2JEFF GERARDPRES. SUTTER HEALTH BAY AREA	(i) (ii)	0 ------------- 763,104	0 ------------- 627,231	0 ------------- 113,133	0 ------------- 394,192	0 ------------- 20,626	0 ------------- 1,918,286	0 ------------- 406,467
3SARAH KREVANSPRES & COO SH, ASST SECR PAMF	(i) (ii)	0 ------------- 1,045,572	0 ------------- 888,993	0 ------------- 143,129	0 ------------- 470,092	0 ------------- 26,048	0 ------------- 2,573,834	0 ------------- 559,293
4RICHARD SLAVIN MDDIVISION PRES. PAMF (PT YR)	(i) (ii)	0 ------------- 806,669	0 ------------- 450,776	0 ------------- 89,303	0 ------------- 174,142	0 ------------- 12,921	0 ------------- 1,533,811	0 ------------- 276,073
5JANET WAGNERCEO, MPHS (PART YEAR)	(i) (ii)	0 ------------- 400,297	0 ------------- 249,464	0 ------------- 40,107	0 ------------- 128,292	0 ------------- 17,235	0 ------------- 835,395	0 ------------- 121,295
6JOHN GATESCFO SUTTER HEALTH BAY AREA	(i) (ii)	0 ------------- 633,354	0 ------------- 285,096	0 ------------- 49,516	0 ------------- 163,042	0 ------------- 20,100	0 ------------- 1,151,108	0 ------------- 135,078
7KAREN HALLCHIEF LEGAL OFFICER BAY AREA	(i) (ii)	0 ------------- 357,431	0 ------------- 206,850	0 ------------- 24,477	0 ------------- 99,242	0 ------------- 17,185	0 ------------- 705,185	0 ------------- 107,824
8ROGER LARSEN II CPACFO BAY AREA MEDICAL FDNS	(i) (ii)	0 ------------- 510,103	0 ------------- 302,700	0 ------------- 7,814	0 ------------- 137,242	0 ------------- 19,410	0 ------------- 977,269	0 ------------- 140,475
9LAWRENCE DEGHETALDIDivision President, Santa Cruz	(i) (ii)	0 ------------- 419,076	0 ------------- 283,312	0 ------------- 52,338	0 ------------- 143,142	0 ------------- 22,089	0 ------------- 919,957	0 ------------- 187,615
10MICHAEL ERICKSONCOO, PAMF	(i) (ii)	0 ------------- 411,945	0 ------------- 126,301	0 ------------- 19,650	0 ------------- 39,492	0 ------------- 12,386	0 ------------- 609,774	0 ------------- 30,301
11LI MIN J HUDIVISION PRESIDENT, ALAMEDA	(i) (ii)	0 ------------- 388,246	0 ------------- 194,105	0 ------------- 16,316	0 ------------- 102,142	0 ------------- 14,523	0 ------------- 715,332	0 ------------- 63,792
12FRANCIS MARZONIDIVISION PRESIDENT, PAMF	(i) (ii)	0 ------------- 716,179	0 ------------- 367,173	0 ------------- 94,458	0 ------------- 164,342	0 ------------- 12,844	0 ------------- 1,354,996	0 ------------- 118,414
13BRIAN C ROACH MDDIV. PRESIDENT, SAN MATEO	(i) (ii)	0 ------------- 407,195	0 ------------- 255,845	0 ------------- 48,399	0 ------------- 125,942	0 ------------- 17,260	0 ------------- 854,641	0 ------------- 164,412
14ELIZABETH VILARDO-MORGAN MDDIVISION PRESIDENT, CAMINO	(i) (ii)	0 ------------- 573,453	0 ------------- 358,261	0 ------------- 36,824	0 ------------- 179,792	0 ------------- 24,781	0 ------------- 1,173,111	0 ------------- 185,807
15Muhammed AkhtarCHIEF ADMIN OFFICER, PAMF	(i) (ii)	0 ------------- 401,918	0 ------------- 43,814	0 ------------- 1,400	0 ------------- 69,892	0 ------------- 16,692	0 ------------- 533,716	0 ------------- 0
16MARA A HOOKREGION VP PHILANTHROPY, PCR	(i) (ii)	0 ------------- 360,989	0 ------------- 230,634	0 ------------- 31,653	0 ------------- 94,642	0 ------------- 11,320	0 ------------- 729,238	0 ------------- 133,757
17HAROLD LUFTDIRECTOR RESEARCH INSTITUTE	(i) (ii)	497,122 ------------- 0	63,207 ------------- 0	17,567 ------------- 0	13,250 ------------- 0	15,321 ------------- 0	606,467 ------------- 0	0 ------------- 0
18MICHAEL REANDEAUREG CIO, PENINSULA COASTAL	(i) (ii)	0 ------------- 233,259	0 ------------- 276,429	0 ------------- 179,272	0 ------------- 70,874	0 ------------- 10,808	0 ------------- 770,642	0 ------------- 130,844
19PAUL TANGCHIEF INNOVATION OFFICER, PAMF	(i) (ii)	619,811 ------------- 0	19,125 ------------- 0	60,648 ------------- 0	18,550 ------------- 0	20,147 ------------- 0	738,281 ------------- 0	0 ------------- 0

Return Reference	Explanation
SCHEDULE J, PART I, LINE 1A	TAX INDEMNIFICATION: STANDARD POLICY FOR ALL SUTTER HEALTH EMPLOYEES IS THAT NON-CASH GIFTS AND AWARDS ARE GROSSED-UP FOR TAX PURPOSES. THE AMOUNT OF THE GROSS-UP IS ADDED TO THE EMPLOYEES WAGES AND TAXED ACCORDINGLY.
SCHEDULE J, PART I, LINE 3	SUPPLEMENTAL COMPENSATION INFORMATION: THE CEO OF THIS ORGANIZATION IS AN EMPLOYEE OF SUTTER HEALTH, A RELATED TAX-EXEMPT ORGANIZATION. THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ASSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARMS LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTERS EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATIONS OVERALL MISSION. SEE SCHEDULE O NARRATIVE FOR PART VI, LINE 15 FOR A FULL DESCRIPTION OF THE COMPENSATION APPROVAL PROCESS COMPLETED BY SUTTER HEALTH.
SCHEDULE J, PART I, LINE 4B	NONQUALIFIED RETIREMENT PLAN: THE PURPOSE OF THE NONQUALIFIED RETIREMENT PLAN IS TO PROVIDE SUTTER HEALTH EXECUTIVES WITH A COMPETITIVE RETIREMENT BENEFIT CONSISTENT WITH SUTTER HEALTHS OVERALL COMPENSATION PHILOSOPHY FOR ALL EMPLOYEES. CONTRIBUTIONS ARE DESIGNED TAKING INTO CONSIDERATION LOST RETIREMENT BENEFITS THAT WOULD OTHERWISE BE OBTAINED THROUGH THE QUALIFIED PENSION PLAN. SUTTERS PLANS ARE DESIGNED CONSISTENT WITH COMPETITIVE INDUSTRY PRACTICES. THE RETIREMENT PLAN FOR SUTTER HEALTH EMPLOYEES IS A COMBINATION OF SOCIAL SECURITY, 403(B) EMPLOYER MATCH CONTRIBUTIONS AND QUALIFIED PLAN BENEFITS. SUTTER HEALTH EXECUTIVES ARE GENERALLY INELIGIBLE FOR EMPLOYER MATCH CONTRIBUTIONS. ADDITIONALLY, QUALIFIED PLAN BENEFITS CAPS HAVE THE EFFECT OF SUBSTANTIALLY REDUCING RETIREMENT BENEFITS THAT ARE OTHERWISE PROVIDED TO ALL EMPLOYEES. THE EFFECT IS THAT EXECUTIVES OFTEN DO NOT RECEIVE THE SAME LEVEL OF RETIREMENT BENEFIT ON AN INCOME REPLACEMENT BASIS AS OTHER EMPLOYEES. TO ENSURE A COMPETITIVE RETIREMENT BENEFIT AND TO ADDRESS THE SHORTFALLS DESCRIBED ABOVE, SUTTER HEALTH MAKES AN ANNUAL CONTRIBUTION TO A NON-QUALIFIED 457(F) PLAN FOR ITS EXECUTIVES. THE FORMULA HAS TWO PARTS: (1) 4% TO 7% OF BASE SALARY (COMMENSURATE WITH MANAGEMENT LEVEL), PLUS (2) A CONTRIBUTION STARTING AT 5% (BASED UPON TENURE) FOR ELIGIBLE EARNINGS BEYOND THE IRS DEFINITION OF INCLUDIBLE COMPENSATION ("PENSION PAY CAP"). THE LATTER OF WHICH IS DESIGNED TO HELP RESTORE LOST PENSION BENEFITS FORFEITED UNDER THE QUALIFIED PLAN FOR EARNINGS OVER THE PENSION PAY CAP LIMIT. CONTRIBUTIONS ARE ALSO MADE FOR A SMALL GROUP OF SENIOR LEVEL EXECUTIVES WHOSE ESTIMATED RETIREMENT BENEFIT (SOCIAL SECURITY PLUS QUALIFIED PLAN BENEFITS PLUS 457(F)) FALLS BELOW 50% - 65% OF FINAL 4-YEAR AVERAGE BASE SALARY WHEN RETIRING AT AGE 65 WITH 22.5 YEARS OF SERVICE. TARGET BENEFIT LEVELS ARE DISCOUNTED FOR YEARS OF SERVICE LESS THAN 22.5 AT AGE 65. UNLIKE SUTTER HEALTHS QUALIFIED PLAN WHERE EMPLOYEE BENEFITS ARE GUARANTEED (I.E., A DEFINED BENEFIT), SUTTERS NON-QUALIFIED PLAN BENEFITS ARE NOT GUARANTEED BY SUTTER HEALTH. INVESTMENT RISK IS BORNE BY PARTICIPANTS AND BENEFITS ARE NOT PROTECTED SHOULD SUTTER HEALTH BECOME INSOLVENT. THE FOLLOWING INDIVIDUAL RECEIVED 457(F) NON-QUALIFIED PAYMENTS DURING THE YEAR: MICHAEL REANDEAU - $15,500
SCHEDULE J, PART I, LINE 7	NON-FIXED PAYMENTS: SPOT AWARDS ARE INFREQUENTLY USED TO REWARD EMPLOYEES. THERE ARE NO SPECIFIC GUIDELINES FOR THE AMOUNT OF THE SPOT AWARD BUT THE AMOUNT TENDS TO NOT EXCEED 5% TO 10% OF GROSS ANNUAL SALARY. ANNUAL INCENTIVE PLAN (AIP) THE PURPOSE OF THE PLAN IS TO FOCUS EXECUTIVES ON SPECIFIC, SHORTER-TERM GOALS THAT ARE CRITICAL TO THE ACHIEVEMENT OF AFFILIATE, REGION, AND SYSTEM-WIDE OBJECTIVES THAT DRIVE OVERALL ORGANIZATION PERFORMANCE. A PORTION OF THE PLAN AWARD IS DISCRETIONARY IN THAT THE SUPERVISOR MAY ADD UP TO 5% TO THE AWARD PROVIDED THE TOTAL AWARD (FORMULA PORTION PLUS DISCRETIONARY) DOES NOT EXCEED THE MAXIMUM ESTABLISHED FOR ANY GIVEN EXECUTIVE. LONG TERM PERFORMANCE PLANS SUTTER HEALTH ALSO EMPLOYS LONG TERM PERFORMANCE PLANS WHICH ARE DESIGNED TO FOCUS ON LONGER TERM STRATEGIC OBJECTIVES OF THE ORGANIZATION. SUTTERS LONG TERM PERFORMANCE PLAN APPROACH IS A COMBINATION OF BOTH LONGER TERM MEASURES OF ORGANIZATION SUCCESS AND KEY ORGANIZATION STRATEGIES WHICH REQUIRE THE COMBINED EFFORT OF ALL LEADERSHIP TO ACHIEVE SUCCESS. SUTTER USES A COMMON FATE APPROACH IN THAT ALL PLAN PARTICIPANTS ARE MEASURED AGAINST THE SAME, ORGANIZATION-WIDE CRITERIA VS. INDIVIDUAL EFFORTS. THIS FOSTERS A COMMON PURPOSE ACROSS LEADERSHIP AND A SHARED SENSE OF ACCOUNTABILITY FOR THE OVERALL SUCCESS OF SUTTER HEALTH. TO ENSURE THAT EXTRAORDINARY EFFORTS BY INDIVIDUALS CAN BE RECOGNIZED AND THAT ACTIONS OF LEADERSHIP ARE CONSISTENT WITH SUPPORTING SUTTER HEALTHS OVERALL MISSION, VISION, AND VALUES, SUTTERS LONG TERM INCENTIVE PLAN APPROACH ALSO INCORPORATES A COMBINATION OF CEO AND SUTTER HEALTH COMPENSATION COMMITTEE DISCRETION. IN SOME CASES, THE SUTTER HEALTH COMPENSATION COMMITTEE HAS DELEGATED AUTHORITY TO THE PRESIDENT & CEO TO MODIFY INDIVIDUAL AWARDS WITHIN LIMITS THAT HAVE BEEN PRE-APPROVED BY THE SUTTER HEALTH COMPENSATION COMMITTEE. THIS INCLUDES BOTH THE REDUCTION AND INCREASE OF AWARD AMOUNTS. SUCH MODIFICATIONS GENERALLY DO NOT EXCEED +/- 20% AND ARE EMPLOYED JUDICIOUSLY. IN ALL CASES, THE COMPENSATION COMMITTEE OF THE BOARD DETERMINES ACHIEVEMENT OF ORGANIZATION GOALS AND MAKES FINAL AWARD DETERMINATION WHICH MAY RESULT IN A REDUCTION OF AWARD IF APPROPRIATE. ALL SENIOR EXECUTIVE AWARDS ARE REVIEWED FOR COMPENSATION REASONABLENESS AND APPROVED PRIOR TO PAYMENT BY THE COMPENSATION COMMITTEE.

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