Court Cites Maryland Law in Reducing Charity Executive’s Severance

William L. Jews, former chief executive of CareFirst BlueCross BlueShield, is entitled to only half of his $18-million severance package, according to a ruling Monday that accuses him of taking actions that lost sight of the organization’s nonprofit mission, reports The Baltimore Sun.

Mr. Jews is accused of violating a 2003 state law, which was passed by legislators angry with Mr. Jews for trying to convert the organization to a for-profit entity that could then be sold to a California company. The law requires that executive pay for the group meet a “fair and reasonable” standard. Under the order, which marks the first test of the law, Mr. Jews is entitled to nearly $9-million of the $18-million severance package that the insurer’s board approved in 2006. Since stepping down from his post, he has received $2.3-million in salary and other benefits, which will be deducted from the total, along with interest.

“It sends a message about the state of Maryland that we value a not-for-profit culture, that we’re not trying to enrich people based on people’s health needs,” said Del. Shane Pendergrass, vice chairman of the Health and Government Operations Committee. “I have said consistently that no one is worth $18-million.”

Mr. Jews could not be reached for comment, the newspaper said.

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