EXCLUSIVE: Valley Children's CEO Todd Suntrapak responds to compensation criticism

MADERA COUNTY, Calif. (KFSN) -- Various media reports first shed light on the now controversial compensation of Valley Children's CEO Todd Suntrapak back in March.

Tax documents revealed that his total pay more than doubled from $2.1 million in 2019 to $5.5 million in 2020, the first year of the pandemic.

RELATED: Valley Children's CEO pay draws criticism from Fresno City Council members

I sat down with Suntrapak for an interview addressing the criticism swirling around his compensation.

I asked why his pay more than doubled from 2019 to 2020.

"I'll start by saying I'm really proud of this team," responded Suntrapak. "And I'm proud of the work that we've done, and I'm proud of the work that I've done as CEO and leader."

He added, "I don't choose what my compensation is. Our board determines what the appropriate compensation is for the CEO, and they rely upon external experts to advise them, and to do quite a bit of analysis, then they make a determination. "

The following year, in 2021, Suntrapak earned $5.1 million in total compensation, which included $1.7 million in base pay. Due to a change in the hospital's bonus schedule, Suntrapak says he received two bonuses that year totaling $3.4 million.

Suntrapak also received a hefty incentive that year - a $5 million forgivable loan, which he used to purchase a $6.5 million home in Carmel.

"There is a portion of the loan that is forgiven every year, which I am taxed on showed up on my W2's and the term is 10 years," Suntrapak explained. "So again, the intent of the board, based on the assessment of my work, was wanting to retain me for that period of time. This was a tool that was available to them."

I asked Suntrapak if it felt excessive.

"Again, I'm proud of the work I've done here for close to 30 years, Graciela. My compensation is not something I choose. It's the purview of the board, and they use external consultants who advise them on these things and then make those decisions. It's not really for me to say," Suntrapak said.

IRS forms also revealed the CEOs of 13 other larger children's hospitals across the country made considerably less than Suntrapak in 2021. One example is the CEO of Children's Hospital Los Angeles, ranked 11th by bed space, which earned 1.7 million in 2021. The same year, the 16th-ranked Valley Children's CEO earned $5.1 million.

RELATED: Documents show how Valley Children's CEO pay compares to other hospital leaders

"It is difficult to know who you are comparing versus what peer group (the board) used to make their assessment. And I think, importantly, what we have created at Valley Children's. We are in the top 3% of children's hospitals in the country, as recognized by the Leapfrog group, which is a national enterprise focused on assessing quality and patient safety."

The hospital's executive team's pay has also been under scrutiny.

In 2019, the five top-paid executives combined made close to $4.3 million.

In 2020, the combined compensation of the five top earners totaled more than $9.9 million.

Suntrapak again highlights the quality and scope of care at Valley Children's.

"The hospital label is a little limiting when we talk about compensation of our executive team. We provide care in 12 different counties, we have multiple outpatient locations, we also oversee and operate pediatrics in nine other acute care facilities, sometimes we licensed those beds, sometimes at a partner's location."

Suntrapak also came under fire by two Fresno city councilmembers.

Garry Bredefeld and Miguel Arias have questioned whether money from public healthcare reimbursements like Medi-Cal was used to fund executive salaries.

RELATED: Valley Children's Healthcare responds to Fresno City Council regarding pay of CEO

Suntrapak's response?

"I don't agree with that statement, no. We certainly have commercial insurance that we charge for the services that we provide, as well as investment income - I am not aware that we have ever pinned any type of employee compensation to any type of revenue stream."

The councilmembers are pushing for a state investigation.

"We know that Valley Children's is a jewel," Bredefeld said back in March. "But what they have done has violated public trust, and there needs to be accountability and transparency."

RELATED: Fresno City Councilmembers request state AG investigate Valley Children's Hospital

I asked Suntrapak if this issue has changed the public perception and support of Valley Children's.

"I have heard some people, again, anecdotal information. I've heard it directly, and I have heard more that have said we have every trust in Valley Children's that we ever had. So, different people are entitled to different opinions. "

Many in the community have expressed their opinions on the matter via social media. Some are in support of Suntrapak and the hospital, but others express disappointment, even accusing Valley Children's of using donations to pay top hospital salaries.

"We are always thankful for the investments that are made by the public in the work we do at Valley Children's, which is really about helping kids," Suntrapak said. "And as I said, most of those donations are restricted, and if there are any concerns in the future that a donor may have, they simply need to restrict that contribution, that gift, that investment."

According to the hospital, the annual Kids Day fundraiser, which ABC30 sponsored, generated $480,000 this year in restricted donations to be used by the hematology department.

The hospital's 15-year partnership with Panda Express has raised $5.3 million, which is restricted to patient support programs.

While the hospital prides itself on its overall handling of the pandemic-including no staff layoffs, furloughs, or pay freezes-we have heard from some Valley Children's nurses who say their compensation has not measured up to that of nurses at other local hospitals.

"So I think nursing, wages in particular are very fluid, we recently made an adjustment to our nursing salaries that puts our nursing salaries on par with anybody else in the area."

Despite the public outcry over compensations, Suntrapak praises the work of his team and says everyone at the hospital plays a role in ensuring Valley kids have access to the quality care they deserve.

"I would not trade the team at Valley Children's, stem to stern, for any other team of pediatric healthcare in the country."

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