Senior Leadership Pay Continues to Rise

Karen Minich-Pourshadi, for HealthLeaders Media , November 13, 2012
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Nationally, CEO compensation has risen year over year, though there are variations in pay for CEOs at health systems versus independent facilities. CEOs at not-for-profit integrated health systems received a median 4% increase in base salary from 2010 to 2011, while independent hospital CEOs saw a salary improvement of 5%, according to the 2011 Hay Group Compensation Survey.

Other members of the C-suite, too, are seeing increases, but the percentages vary by position. COOs at systems saw a modest 1.6% increase in base pay in 2012, but actually had a TCC decrease of -1.7%, cutting their overall salary and incentive pay to $249,100 (2012) from $253,300 (2011), the Sullivan, Cotter and Associates survey notes. However, the same survey notes that COOs at independent facilities got a 9.2% TCC boost to $375,900 (2012) from $341,200 (2011). Nationally, system CIOs received one of the largest TCC increases year over year, according to Sullivan, Cotter and Associates (5.8%). IHS reported a median base salary increase of (3.5%). In 2012, independent hospital CIOs' median base pay hit $217,100 (previously $205,000) while systems CIOs reached a base pay of $291,700 ($273,500 in 2011), according to IHS; Sullivan, Cotter and Associates tracked a 7.9% increase in TCC for all CIOs nationally reaching $254,300 (2012), up from $234,300 (2011).

Sullivan, Cotter and Associates reports healthcare system CFOs earned a median base pay of $205,000 (2012), up from $200,000 (2011). Their TCC increased 2.1% to $238,300 from $233,300 in that same period. Freestanding hospital CFOs had a 6% uptick in TCC reaching $340,000 (2012), up from $319,700 (2011).

Though nationally hospitals are focusing more on quality initiatives that require even greater clinician attention, CMOs received average salary increases in both surveys. IHS reports CMOs at systems had a base pay increase of just 2% while CMOs at freestanding hospitals had a slightly higher increase of 2.4%. Sullivan, Cotter and Associates' data shows a TCC increase of just 0.3% for CMOs at systems, while independent hospitals gave CMOs a 3% boost.

This article appears in the November 2012 issue of HealthLeaders magazine.

Karen Minich-Pourshadi is a Senior Editor with HealthLeaders Media.




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