Krabbenhoft Paid $49 Million When He Departed Sanford Health

SIOUX FALLS, S.D. (KVRR) —  The former CEO of Sioux Falls-based Sanford Health was paid $49 million when he stepped down in late 2020.

Kelby Krabbenhoft had lead the company since 1996, turning it into a regional health care giant.

He left after writing an email to Sanford employees making controversial statements about COVID-19 and mask use.

Sanford Health in a statement says the majority of Krabbenhoft’s compensation was contractually obligated as part of retirement plans.

Chief Administrative Officer Bill Gassen was appointed president and CEO following his departure.

Read the full statement below:

“Today, Sanford Health filed its annual IRS Form 990. This required filing provides the IRS with an overview of Sanford Health’s activities, governance and detailed financial information, including executive compensation.

“In addition to our standard annual reporting, this year’s 990 includes information regarding the separation pay of several departed executives, including former President and CEO, Kelby Krabbenhoft. The majority of the compensation paid to Mr. Krabbenhoft upon his departure was contractually obligated as part of retirement plans over his 24-year tenure. The remainder was Mr. Krabbenhoft’s annual compensation and a severance agreement. These payments conclude Sanford Health’s financial obligations to Mr. Krabbenhoft.

“We look forward to continuing along our journey in Sanford Health’s next chapter that focuses on our employees and their commitment to bringing life-changing care to the communities we serve.”

— Sanford Health


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