Median base salaries for healthcare executives have increased year over year, reflecting continued pressure to attract top leaders and stabilize executive transitions, according to a survey conducted by consulting firm SullivanCotter.
SullivanCotter's "2023 Healthcare Management and Executive Compensation Survey" is based on data from more than 3,000 organizations representing nearly 42,160 executives and managers. Here are four trends from the survey, which was conducted from January to April:
1. In 2023, median base salaries (i.e., salary, merit, across-the-board, market adjustments) increased by 4.1 percent compared to 2022 for leaders at all healthcare organizations. This is slightly lower than the increase between 2021 and 2022 (4.3%).
2. The year-over-year increase in 2023 total cash compensation (equal to base salaries plus annual incentive awards) for health system leaders was lower than the increase in base salaries. Median TCC levels increased 3.5% from 2022 to 2023.
3. "The year-over-year change in TCC was more modest due to a dip in incentive plan payouts in 2022, which reflected more pressures and variability in performance," Tom Pavlik, managing principal at SullivanCotter, said in an Oct. 12 news release. "Incentive plans are working as designed, given the challenges in meeting performance goals."
4. Health system positions with median base salary increases of at least 5% tended to be those focusing on strategy/planning, technology, financial sustainability and risk, integration and workforce strategy.
Read more about the report here.