Healthcare executive pay may be plateauing, at least at Jackson, Mich.'s Allegiance Health. The top eight executives there in 2009 received a combined 0.39 percent pay increase from the previous year, according to the Internal Revenue Service (IRS), reports the Jackson Citizen Patriot.
"What you are seeing is consistent with what you would expect to see in tough times," said Larry Schultz, chairman of the Allegiance board of directors, in the article.
Allegiance CEO Georgia Fojtasek made $713,217 in pay and other benefits--her lowest earnings in five years--at 11.3 percent less than the previous year. Between 2002 and 2007 fiscal years, her total compensation package doubled from $409,365 to $896,917. However, since then, her total compensation fell by 20 percent during a three-year period.
The compensation packages for seven other executives ranged from $171,016 to $334,161.
"You're seeing it very broadly," said Schultz. "This is happening all over."
However, stagnant executive pay might not be widespread. In some parts of the country, the heads of hospitals are earning compensation levels in the multimillions. In Tennessee, for example, hospital executives saw a 24 percent increase in compensation, including bonuses and benefits. In addition, Florida CEOs earned an average of $628,000, compared to the IRS's surveyed average of $500,000.
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