| SCHEDULE J, PART I; QUESTION 4B |
HACKENSACK UNIVERSITY MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, PROVIDED A SUPPLEMENTAL RETIREMENT PLAN FOR EXECUTIVE EMPLOYEES THAT CONTINUED THE QUALIFIED PENSION PLAN FORMULA AS TO COMPENSATION THAT EXCEEDED THE AMOUNT OF COMPENSATION THAT COULD BE CONSIDERED UNDER THE QUALIFIED PENSION PLAN. ALL PARTICIPATING EXECUTIVE EMPLOYEES RECEIVED A BENEFIT UNDER THE SUPPLEMENTAL PLAN THAT RELATED TO THE EXECUTIVE'S ENTIRE PERIOD OF SERVICE FOR THE ORGANIZATION, WHILE THE VALUE IN ANY ONE YEAR WOULD VARY GREATLY BASED ON FACTORS SUCH AS INTEREST RATES AND THE EMPLOYEE'S AGE. PLEASE NOTE THAT THIS PLAN WAS FROZEN AS OF DECEMBER 31, 2010. THE AMOUNT REFLECTED IN COLUMN B(II) FOR THE FOLLOWING INDIVIDUAL INCLUDES AN AMOUNT OF COMPENSATION THAT WAS PROVIDED TO THE INDIVIDUAL IN ACCORDANCE WITH HIS EMPLOYMENT CONTRACT AND TERMS OF EMPLOYMENT AT HACKENSACK MERIDIAN HEALTH AND IN ACCORDANCE WITH HACKENSACK MERIDIAN HEALTH'S COMPENSATION REVIEW AND APPROVAL PROCESS DESCRIBED IN OUR RESPONSE TO CORE FORM, PART VI, QUESTION 15 TO ENSURE COMPENSATION IS REASONABLE AND AT FAIR MARKET VALUE RATES. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN THE INDIVIDUAL'S 2016 FORM W-2, BOXES 1 AND 5, AS TAXABLE WAGES: JOSEPH M. LEMAIRE, $170,000. THE AMOUNT REFLECTED IN COLUMN B(II) FOR JOHN K. LLOYD, FACHE INCLUDES A RETENTION BONUS IN THE AMOUNT OF $780,694 WHICH IS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS INCLUDED IN HIS 2016 FORM W-2 AS TAXABLE WAGES. THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES PARTICIPATION IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") AS THE AMOUNTS WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: STEVEN G. LITTLESON, $242,781; BRUCE J. MARKOWITZ, $627,806; ROBERT C. GARRETT, $562,700; JOSEPH M. LEMAIRE, $1,238,150; SALVATORE INCIARDI, $142,850; JOSEPH E. STAMPE, $81,292; IHOR S. SAWCZUK, M.D., $227,386; KENNETH N. SABLE, M.D., $97,766; TIMOTHY J. HOGAN, FACHE, $167,035; DEAN Q. LIN, $298,082; JOSEPH P. COYLE, $127,318; MICHAEL R. DAGNES, FACHE, $125,000; ROBERT L. GLENNING, $298,134; JOHN CALANDRIELLO, FHFMA, CPA, $1,342,385; ANTHONY J. PASSANNANTE, JR., M.D. $102,462; ANDREW L. PECORA, M.D., $47,404; AUDREY C. MURPHY, RN, ESQ., $186,950; NANCY R. CORCORAN-DAVIDOFF, $205,830; PATRICK YOUNG, $52,260; SHERRIE STRING, $230,495; ANN B. GAVZY, ESQ., $142,906; MARTY B. SCOTT, $61,388; REBECCA WEBER, $124,955 AND MAUREEN SINTICH, RN, $76,670. THE AMOUNTS REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES CURRENT YEAR VESTING AND DISTRIBUTION IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNTS WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: ROBERT C. GARRETT, $183,600; ROBERT L. GLENNING, $120,504; AUDREY C. MURPHY, RN, ESQ., $64,512 AND NANCY R. CORCORAN-DAVIDOFF, $51,852. THE AMOUNTS REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES VESTED BENEFITS IN A KEY EMPLOYEE SHARE OPTION PLAN ("KEYSOP") WHICH ARE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: ROBERT C. GARRETT, $57,346; IHOR S. SAWCZUK, M.D., $14,088 AND HORMOZ ASHTYANI, M.D., $4,320. THE AMOUNT REFLECTED IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES INTEREST EARNED ON SPECIAL CEO COMPENSATION PREVIOUSLY DEFERRED AND PAID IN 2016. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN THE INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: ROBERT C. GARRETT, $84,556. HACKENSACK UNIVERSITY MEDICAL CENTER; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, ON JANUARY 1, 2011, INSTITUTED A DEFERRED COMPENSATION PROGRAM UNDER INTERNAL REVENUE CODE SECTION 401(A) WHEREIN THE ORGANIZATION MATCHES 2% OF AN INDIVIDUAL'S SALARY UP TO A MAXIMUM OF $5,300. THE MATCH IS SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE AMOUNTS WERE NOT INCLUDED IN CERTAIN INDIVIDUALS' 2016 FORM W-2 AS TAXABLE WAGES. THE DEFERRED COMPENSATION AMOUNT REFLECTED IN COLUMN (C) FOR THE FOLLOWING INDIVIDUALS INCLUDES A RETENTION BONUS WHICH IS SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. ACCORDINGLY, THE INDIVIDUALS MAY NEVER ACTUALLY RECEIVE THIS AMOUNT. THE AMOUNTS OUTLINE HEREIN WERE NOT INCLUDED IN EACH INDIVIDUALS 2016 FORM W-2 AS TAXABLE WAGES: ROBERT C. GARRETT, $250,000 AND ROBERT L . GLENNING, $250,000. THE DEFERRED COMPENSATION AMOUNTS REFLECTED IN COLUMN (C) FOR THE FOLLOWING INDIVIDUALS INCLUDE INTEREST CREDITS IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUALS MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNTS OUTLINED HEREIN WERE NOT INCLUDED IN EACH INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: STEVEN G. LITTLESON, $152,227; JOHN K. LLOYD, FACHE, $722,495; JOSEPH M. LEMAIRE, $60,475; SALVATORE INCIARDI, $76,813; TIMOTHY J. HOGAN, FACHE, $93,559; JOSEPH P. COYLE, $40,222 AND ANN B. GAVZY, ESQ., $107,581. THE DEFERRED COMPENSATION AMOUNT IN COLUMN (C) FOR THE FOLLOWING INDIVIDUALS INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUALS MAY NEVER ACTUALLY RECEIVE THE UNVESTED BENEFITS. THE AMOUNTS OUTLINED HEREIN WERE NOT INCLUDED IN THESE INDIVIDUAL'S 2016 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: ROBERT C. GARRETT, $182,141; IHOR S. SAWZUK, M.D., $95,518; JON M. FITZGERALD, $79,482 ROBERT L. GLENNING, $18,808; ANDREW L. PECORA, M.D., $33,168; AUDREY C. MURPHY, RN, ESQ., $49,356; NANCY R. CORCORAN-DAVIDOFF, $62,931 AND JAMES BLAZAR, $110,700 (OLD AND NEW SERP PLANS). |
| SCHEDULE J, PART II, COLUMN F |
THE AMOUNTS REPORTED IN COLUMN (F) FOR THE FOLLOWING INDIVIDUALS REPRESENTS UNVESTED BENEFITS IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN THAT BECAME TAXABLE IN 2016 BECAUSE THEY WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE, AND WERE REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION ON PRIOR FORMS 990 OF THE ORGANIZATION. THESE AMOUNTS WERE TREATED AS TAXABLE INCOME AND REPORTED ON EACH INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: BRUCE J. MARKOWITZ, $32,843; JOSEPH M. LEMAIRE, $1,238,150 AND JOHN CALANDRIELLO, FHFMA, CPA, $658,105. THE AMOUNTS REPORTED IN COLUMN (F) FOR THE FOLLOWING INDIVIDUALS REPRESENT BENEFITS IN A LONG-TERM INCENTIVE PLAN THAT BECAME TAXABLE IN 2016 BECAUSE THEY WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE, AND WERE REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION ON PRIOR FORMS 990 OF THE ORGANIZATION. THESE AMOUNTS WERE TREATED AS TAXABLE INCOME AND REPORTED ON EACH INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: ROBERT C. GARRETT, $229,800; IHOR S. SAWCZUK, M.D., $163,300; JON M. FITZGERALD, $71,250; ROBERT L. GLENNING, $148,425; AUDREY C. MURPHY, R.N., ESQ., $84,405, AND NANCY R. CORCORAN-DAVIDOFF, $76,740. THE AMOUNTS REPORTED IN COLUMN (F) FOR THE FOLLOWING INDIVIDUALS REPRESENT A RETENTION BONUS THAT BECAME TAXABLE IN 2016 BECAUSE IT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE, AND WAS REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION ON PRIOR FORMS 990 OF THE ORGANIZATION. THESE AMOUNTS WERE TREATED AS TAXABLE INCOME AND REPORTED ON EACH INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: JOHN K. LLOYD, FACHE, $700,000 AND ANDREW L. PECORA, M.D., $100,000. THE AMOUNT REPORTED IN COLUMN (F) FOR THE FOLLOWING INDIVIDUAL REPRESENTS SPECIAL DEFERRED CEO COMPENSATION THAT BECAME TAXABLE IN 2016 BECAUSE IT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE, AND WAS REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION ON PRIOR FORMS 990 OF THE ORGANIZATION. THIS AMOUNT WAS TREATED AS TAXABLE INCOME AND REPORTED ON THE INDIVIDUAL'S 2016 FORM W-2 AS TAXABLE WAGES: ROBERT C. GARRETT, $250,000. |