Monash IVF strips former execs of bonuses after mix-ups
A female fertility company denied bonuses to senior executives after two failed embryo transfers; One of these transfers resulted in a woman giving birth to a genetically unrelated baby.
Monash IVF’s long-serving chief executive Michael Knapp resigned after a second uproar in June when a patient’s own embryo was mistakenly transferred back to him despite his treatment plan stating he should receive an embryo from his partner.
It comes just months after the uproar at Monash’s Brisbane clinic where a foreign embryo was transplanted into a woman seeking treatment.
The incident was made public in April, but the company became aware of it in February.
Monash’s chief operating officer Hamish Hamilton previously resigned in March. After more than 20 years at Monash, he left to take a job at rival Virtus Health.
In its annual report published on Monday, Monash’s board said it expressed disappointment and understood the impact of the events on its shareholders.
“Our compensation approach continues to align results with performance, with these developments playing a key role in determining compensation outcomes for Key Executive Personnel Managers,” the Board said.
The board said they therefore decided not to award short-term bonuses even without knowing the “formulaic consequences” by which such awards are normally determined.
Mr. Knaap was eligible for a bonus of up to $434,000, while Mr. Hamilton lost up to $600,000.
The board said it was adjusting its executive compensation policy going forward and adding an amendment that would allow the board to reduce consequences “in the event of serious adverse events or issues that cause a significant impact on reputational, financial or security results.”
“This will further align incentive with long-term responsible behavior,” he said.
Monash has added security to the embryo transfer process with electronic verifications and laboratory photography of every step of the process.
A global search for a new CEO is ongoing, with chief financial officer Malik Jainudeen serving as acting CEO in the meantime.
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