A 2024 survey conducted by SullivanCotter highlights a range of trends in healthcare executive pay, including a year-over-year jump in median base salaries.
The consulting firm's "2024 Healthcare Management and Executive Compensation Survey" is based on data from more than 3,300 organizations representing nearly 45,110 executives and managers. Here are four trends from the survey, which was conducted from January to April:
Editor's note: This story was updated on Oct. 15, based on the latest data.
1. This year, median base salaries (i.e. salary, merit, across-the-board, market adjustments) increased by 4.6% compared to 2023 for leaders at all healthcare organizations. This is on par with the increase between 2022 and 2023 (4.4%).
2. The year-over-year increase in 2024 total cash compensation (equal to base salaries plus annual incentive awards) for health system leaders was higher than the increase in base salaries. Median TCC levels increased 8.3% from 2023 to 2024.
3. "Incentive awards were greater for 2023 performance as compared with 2022, reflecting an overall improvement in the operating environment," SullivanCotter said. "Median annual incentive payouts for 2023 performance were closer to target than those provided for 2022 performance, when they were moderately below target. Given that there were no shifts in annual incentive plan prevalence or award opportunity levels, year-over-year changes in TCC can be attributed to higher levels of performance."
4. Health system positions with median base salary increases of at least 5% tended to be those focusing on business strategy, information technology and security, integration, care delivery excellence, and legal and regulatory compliance.
Read more about the report here.