Compensation for healthcare executives increased 8 percent last year, according to a new study from accounting/consulting firm BDO.
Of eight industries, healthcare came in third for executive compensation percentage gains, behind energy and retail leaders, the study found.
Average healthcare executive compensation increased 8 percent in 2014, from an average of $163,069 in fiscal 2013 to $176,749 in fiscal 2014. Healthcare also came in third for highest pay overall, behind the technology sector with an average of $205,294 and energy with $192,509.
The research found that across the board, the largest portion of executive compensation was stock awards, which comprised 47 percent of all board compensation packages last year, followed by retainers/fees, which accounted for 39 percent. The average percentage of compensation represented by stock options fell slightly, from 10 percent in 2013 to 8 percent in 2014.
"Compensation packages are increasingly reflective of the growing pressure on boards to be more accountable for the performance of the organization as a whole," Randy Ramirez, a senior director in the Global Employer Services Practice at BDO, said in a statement.
Healthcare leader pay has continued to increase in 2015 despite slower growth in chief executive officer and chief financial officer salaries in publicly-traded companies across the board, FierceHealthFinance previously reported. Average healthcare CEO compensation jumped from about to $2.5 million to $3.95 million, which experts attribute in large part to the healthcare industry working to provide incentives to retain leaders as healthcare shifts to a more consumer-centric model.
To learn more:
- read the survey results