Healthcare Executive Compensation Grew 7.8% in 2011

Executive compensation in the healthcare sector increased 7.8 percent in 2011 — more than any other sector tracked in The Wall Street Journal / Hay Group 2011 CEO Compensation Study.

Net income of healthcare companies, which included hospitals and other providers, rose only 1.1 percent, but total shareholder return ballooned 9.8 percent.

The annual survey examined executive compensation at large public companies, such as for-profit hospital operators, to see how CEO pay fared during the 2011 fiscal year. Across all sectors, total CEO compensation was more modest, as it grew by 2.8 percent to $10.3 million on average.

Long-term incentives, in the form of stock options and the vesting of restricted stock and long-term cash plans, increased substantially year-over-year. In 2010, that average compensation was $4.3 million, and in 2011, it was $5.6 million — a 34 percent jump.

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