Veterans Affairs gave nearly $11 million meant for recruitment and retention to top executives: Watchdog

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The Veterans Affairs inappropriately paid out more than 180 senior executives bonuses worth almost $11 million last year.

on bonuses for 148 executives averaging more than $60,000, according to the 92-page report from Inspector General Michael Missal’s office. Joshua Jacobs, who leads the Veterans Benefits Administration, gave away an additional 34 bonuses worth $50,000 to top-level executives.

At least seven executives received more than $100,000 in bonuses, but Elnahal reportedly did not inform Secretary Denis McDonough of the extent of the payments. It wasn’t until last September that VA Secretary Denis McDonough learned of the payments and then ordered all of the executives to repay the VA. However, Missal found that most had already spent their checks, and some were challenging the order.

Neither Elnahal nor Jacobs, appointed by the Biden administration last year, analyzed whether the bonuses were earned, per the report, nor was there any document or data showing that these executives were at risk of quitting, for the turnover rate for top executives was just 2.4%. Elnahal had allegedly told investigators that he had no idea that the health system has more than 150 senior executives when he signed off on the awards. “I had no idea that we had upwards of 150 of them,” he said, according to the report. “I think if I had known that, my management instinct would be to get the same level of justifications together and the costs .” However, the report reveals that Elnahal received an email that included a spreadsheet listing each leader due for a bonus.

 

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