Dive Brief:
- According to Modern Healthcare's analysis of the most recent association tax reports, between 2012 and 2013, median total pay for healthcare association CEOs earning $1 million or more increased by 8.5%. Total pay for all healthcare association CEOs increased by 18.9%.
- In 2013, 20 healthcare association CEOs earned between $1 million and $5 million, while only 17 earned that much in 2012.
- The median total compensation for those in the $1-million to $5-million pay range was $1.5 million.
Dive Insight:
Mark Graham, managing director at CEO Update, a Washington-based association executive publication, told Modern Healthcare it's not surprising that more CEOs earned more than $1 million in 2013 than in 2012. “You're always going to find more CEOs earning more than $1 million every year you look at paychecks," he said. "As CEO pay goes up, so does the number who cross over that seven-figure line."
Some of the pay is coming in the form of bonuses, as an increasing number of healthcare organizations, including not-for-profits, are establishing incentive or bonus programs for their CEOs. Graham said they are particularly popular among board members from the corporate sector because that's often how they are paid. He also said that higher compensation is more likely to be considered acceptable by board members if it's tied to achieving organizational goals.