The number of 'overpaid' CEOs leading large companies that intersect with healthcare decreased in the past year, falling from 17 to 10, based on the most recent annual report from nonprofit shareholder advocacy group As You Sow.
As You Sow has issued the report on "overpaid" CEOs among the S&P 500 for each year since 2015. The nonprofit analyzes CEO pay compared to total shareholder return to calculate excess pay; ranks the percentage of shares that voted against the CEO pay package in the year prior to June 30, 2022; and identifies the ratio of CEO pay to that of the median employee.
The three analyses are then combined into one ranking, with excess pay and the percentage of shares that voted against the CEO pay package each weighted at 40 percent and the CEO pay ratio is weighted at 20 percent. As You Sow uses grant date pay in its report, which values stock granted to a CEO as part of pay at its market price at the time the grant is awarded or announced.
Last year, the CEOs of 17 companies that intersect with healthcare were identified as overpaid. For 2023, the group fell to 10, with industry heavyweights like HCA Healthcare, UnitedHealth Group and McKesson not represented. The total pay of all S&P 500 CEOs is $7.7 billion per year. Of this, $3.8 billion goes to the 100 on As You Sow's list of the most overpaid.
Here are the healthcare CEOs who made As You Sow's list:
Rosalind Brewer (Walgreens Boots Alliance)
Pay: $28.33 million
CEO-to-worker pay ratio: 1,084:1
Shareholder votes against CEO pay: 42 percent
Excess pay: $14.74 million
Rank on As You Sow's top 100: No. 14
Ari Bousbib (IQVIA Holdings)
Pay: $28.61 million
CEO-to-worker pay ratio: 205:1
Shareholder votes against CEO pay: 29 percent
Excess pay: $13.48 million
Rank on As You Sow's top 100: No. 41
Michael Neidorff (Centene)
Pay: $20.63 million
CEO-to-worker pay ratio: 290:1
Shareholder votes against CEO pay: 60 percent
Excess pay: $5.73 million
Rank on As You Sow's top 100: No. 42
*Mr. Neidorff announced plans to retire in 2022 and died in April 2022 at age 79. Sarah London was named CEO of Centene in March 2022.
Alex Gorsky (Johnson & Johnson)
Pay: $26.74 million
CEO-to-worker pay ratio: 297:1
Shareholder votes against CEO pay: 9 percent
Excess pay: $12.24 million
Rank on As You Sow's top 100: No. 50
David Cordani (Cigna)
Pay: $19.87 million
CEO-to-worker pay ratio: 297:1
Shareholder votes against CEO pay: 15 percent
Excess pay: $5.34 million
Rank on As You Sow's top 100: No. 64
Marc Miller (Universal Health Services)
Pay: $14.02 million
CEO-to-worker pay ratio: 309:1
Shareholder votes against CEO pay: 100 percent
Excess pay: -$152,537
Rank on As You Sow's top 100: No. 79
Robert Ford (Abbott Laboratories)
Pay: $24.91 million
CEO-to-worker pay ratio: 254:1
Shareholder votes against CEO pay: 7 percent
Excess pay: $9.77 million
Rank on As You Sow's top 100: No. 80
Karen Lynch (CVS Health)
Pay: $20.38 million
CEO-to-worker pay ratio: 458:1
Shareholder votes against CEO pay: 7 percent
Excess pay: $5.98 million
Rank on As You Sow's top 100: No. 86
Richard Gonzalez (AbbVie)
Pay: $23.91 million
CEO-to-worker pay ratio: 160:1
Shareholder votes against CEO pay: 9 percent
Excess pay: $8.68 million
Rank on As You Sow's top 100: No. 89
Marc Casper (Thermo Fisher Scientific)
Pay: $21.23 million
CEO-to-worker pay ratio: 254:1
Shareholder votes against CEO pay: 8 percent
Excess pay: $5.73 million
Rank on As You Sow's top 100: No. 92