Howard Levitt: New Brunswick doctor's record $1.8-million severance award provides lessons for employers

The largest severance award in New Brunswick history was awarded in February to Dr. John Dornan. Find out more.

Dornan successfully received the permanent CEO position on March 7, 2022, for a five-year term based on a series of conversations and texts. The five years, however, was agreed to only orally. Although his combined previous positions paid more than the new one, the CEO position came with this five-year term and, at age 61, would take him to retirement. He accepted the position and found permanent replacements for his previous ones.

Four months later, the death in the emergency room of one of his hospitals occurred. According to the decision, Dornan testified that “an investigation into this death concluded it had nothing to do with his management.” Dornan struggled to find other work. The closest he came was a job in Saskatchewan but, after two good interviews, the process ended when, as he was told, New Brunswick provided him a bad reference.

He noted that Dornan would never have taken this job if he knew he could be fired at any time before the five years were out.

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