A struggling economy meant that nearly one-third of hospital and system CEOs did not receive a salary increase between 2010 and 2011, and 8 percent of chief executives reported salary decreases, according to a survey of 273 organizations by Yaffe & Co. For the 60 percent of CEOs receiving a salary increase, the survey found that the average raise was 7 percent.
Average salary increases that factor in decreases and freezes for the top three executive positions reveal interesting trends. While average increases for chief executive, chief operating and chief financial officers have declined since 2008–2009 numbers, COOs and CFOs saw an uptick in 2010–2011. The largest increases went to CFOs, whose average salary increase grew from 4 percent in 2009–2010 to 5.4 percent in 2010–2011. For COOs, average increases grew from 3.5 percent in 2009–2010 to 4.5 percent in 2010–2011. CEOs, conversely, saw a decline from 4.1 percent in 2009–2010 to 3.9 percent in 2010–2011. The data also show that slightly more hospitals froze CEO salaries than those of COOs and CFOs.
In a separate survey, Yaffe & Co. found that 75 percent of CEOs do not plan to work beyond age 65, and 53 percent of CEOs surveyed plan to retire at 65. Of these CEOs, 62 percent were provided a supplemental executive retirement plan, which the majority stated were provided as a retention incentive. Of respondents who have a SERP contribution based on their base salary, the average contribution is 14 percent; if the contribution is based on total compensation, the average contribution is 19 percent.
For more information, visit www.yaffeco.com.