Recession changed insurance CEO pay: 5 things to know

CEOs leading insurance companies, including health plans, saw their compensation packages altered after the 2008 financial crisis, according to a new study from the Florida International University College of Business.

Advertisement

Five things to know:

1. The study examined data on compensation packages for 134 CEOs at publicly traded insurance companies from 2001-16. Seventy-three insurance companies were studied by the Miami-based researchers.

2. The researchers found after the recession, the average size of bonuses fell by two-thirds.

3. However, stock award and nonequity incentives doubled. Additionally, option awards rose almost 70 percent higher than the pre-recession era.

4. The study authors determined this change tied compensation more closely to firm performance.

5. Deanne Butchey, PhD, a lecturer at FIU and an author of the study, concluded: “We found that the shift in executive compensation was a response to the crisis. We also found that when the CEO held a dual role, acting as also the chairman of the board, (s)he was better able to influence salary, bonuses, and long-term incentives. This influence declined in the post-crisis period.”

Read more here.

More articles on payers:
CMS releases proposed Medicare Advantage rule: 5 things to know
Dignity, Cigna fight leaves 16,600 patients in limbo
Horizon BCBS of New Jersey CEO steps back

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

From fragmentation to operational flow: Solving the healthcare workforce puzzle

Tuesday, August 11
1:00 PM - 2:00 PM CDT

Presenters: Dr. Pat Hunt, QGendaAndrea Daugherty, MHA, CISSP, CHCIO, CDH-E, Arrowhead Regional Medical CenterElizabeth Lindsay-Wood, MBA, CHCIO, CDH-E, Moffitt Cancer CenterDeb Muro, El Camino HealthJohn Tejeda, D.H.A., MLS, MPAS, DFAAPA, LSSBB, FACHE, Vascular and Neuroscience Institute

Advertisement

Next Up in Compensation Issues

Advertisement

Comments are closed.