Compensation Advisory Partners' July 12 report highlighted compensation trends for CFOs and CEOs in 2023, based on data from 132 companies, including those in the healthcare sector, with a median revenue of $14.6 billion. Here are the key takeaways:
1. Nearly three in four CFOs and half of CEOs received base salary increases.
Among executives in the 2023 study, 72% of CFOs and 50% of CEOs received salary increases, slightly lower than 2022's findings.
2. The median change in base salary held steady for CFOs, while increases were flat for CEOs.
The median change in base salary for CFOs in 2023 was 4%, near the 3.8% increase in 2022. There was a 0% median salary change for CEOs in 2023, compared with a 2.9% increase in 2022.
3. Long-term incentive awards increased at a higher rate than last year.
Awards increased 11% for CFOs and 9% for CEOs in 2023, compared with 7% and 5%, respectively, in 2022.
4. Total cash compensation in healthcare aligned with industries.
Median total cash compensation increases for healthcare were -4% for CEOs and 4% for CFOs, similar to other industries in the study such as financials, utilities and industrials.
5. Amid compensation trends, CFO turnover remains higher than CEO turnover.
The median tenure in 2023 was five years for CFOs and seven years for CEOs.