10 Statistics on Annual Incentive Targets for Hospital Executives
More than 80 percent of hospitals and health systems have short-term incentive plans for at least one of their executives, and CEO incentives usually average between 30 and 35 percent of base salary, according to data from Sullivan, Cotter and Associates (pdf).
SullivanCotter looked at data of formal, short-term, lump-sum cash incentive plans for hospital and health system executives. Depending on organization size and executive title, the incentive targets varied. Health system CEOs had annual incentive target awards of 35 percent of base salary, followed by CFOs, which averaged 28 percent.
Here are 10 statistics on annual incentive targets for hospital executives, based on SullivanCotter's report. Note: Annual incentive awards are medians. Data are based from 932 hospitals and 298 health systems from 2011.
Health system median target award opportunity
CEO: 35 percent
CFO: 28 percent
CMO: 25 percent
Senior vice presidents: 25 percent
Vice presidents: 20 percent
Hospital median target award opportunity
CEO: 30 percent
CFO: 25 percent
CMO: 20 percent
Senior vice presidents: 20 percent
Vice presidents: 15 percent
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