State report shows $1M disparity in exec pay

A recent Ohio report shows some staggering disparities in executive pay, with gaps of up to $1 million between hospital CEOs.

Columbus Business First's Data Center based on Internal Revenue Service (IRS) information and public records reveals huge discrepancies in total compensation, including bonuses and retirement packages. For example, OhioHealth Corp. CEO Dave Blom had the highest hospital CEO compensation in the seven-county region surrounding Columbus at $1.8 million, while Ohio State University Medical Center's Steven Gabbe earned $776,000, according to the Columbus Business First article.

Institution

CEO

Compensation

OhioHealth Corp.

Dave Blom

$1.8 million

Nationwide Children's Hospital

Steve Allen

$1.2 million

Mount Carmel Health System

Claus von Zychlin

$788,000

Ohio State

Steven Gabbe

$776,000


Why the discrepancy? Pay is determined, in part, by the location of the institution and size of the system, according to a 2009 IRS nonprofit hospital report.

The public recently has monitored executive pay closely, wondering why top heads earn million-dollar salaries.

"People who are running hospitals and hospital systems are running businesses that are literally saving people's lives, so it's really important to have a quality leader," said Ohio Hospital Association spokesperson Tiffany Himmelreich in the article.

Nonprofit hospital executive pay, especially, has come under attack, particularly in New York. The state launched a task force investigating executive salaries at nonprofit institutions. The public argues that exuberant compensation packages are not justified.

For more information:
- read the Columbus Business First article
- check out the IRS report

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*This article was amended on Aug. 29. Data Center named CEO Dave Blom as having the highest hospital CEO compensation in the seven-county region surrounding Columbus, not the state.

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