CEOs in the hospital, health insurance and pharmaceutical industries generally have higher compensation figures than their counterparts in other nonhealthcare-related industries, such as technology and manufacturing, according to a survey from executive compensation firm Equilar cited in a St. Louis Post-Dispatch report.
Many compensation analysts interviewed by the Post-Dispatch said healthcare CEOs earn such high payouts due to the complex business of healthcare. Analysts also said the paydays may be warranted compared with other high-salaried positions, such as college sports coaches. However, the article suggested incentives need to change so executives are being paid for the health of their population and quality of care delivered.
"For me the big problem, whether it's a for-profit or nonprofit, is when executives start chasing their own compensation rather than the good of the company," Thomas Gezen, executive director of International Health Economics Association, told the Post-Dispatch. "We've seen that in banking, and that can happen in healthcare."
Many compensation analysts interviewed by the Post-Dispatch said healthcare CEOs earn such high payouts due to the complex business of healthcare. Analysts also said the paydays may be warranted compared with other high-salaried positions, such as college sports coaches. However, the article suggested incentives need to change so executives are being paid for the health of their population and quality of care delivered.
"For me the big problem, whether it's a for-profit or nonprofit, is when executives start chasing their own compensation rather than the good of the company," Thomas Gezen, executive director of International Health Economics Association, told the Post-Dispatch. "We've seen that in banking, and that can happen in healthcare."
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