Issue link: https://beckershealthcare.uberflip.com/i/1362166
18 POPULATION HEALTH 18 CEO / STRATEGY 21 'overpaid' healthcare CEOs By Morgan Haefner T he economic effects from the pandemic may place more pressure on investors to reevaluate the pay packages of CEOs in the future. But for the time being, "we are simply getting wealthier CEOs," according to an annual report from the nonprofit share- holder advocacy group As You Sow. For its report, As You Sow evaluated the most "overpaid" CEOs of S&P 500 companies. e nonprofit used data to compute what CEO pay would be assuming such pay is related to total shareholder return. In its methodol- ogy, a ranking of companies by excess CEO pay and by shareholder votes on CEO pay are weighted at 40 percent. e final ranking based on CEO-to-worker pay ratio is weight- ed at 20 percent. As You Sow notes some CEOs may no longer hold the positions listed below, as the rank- ings were calculated using data made avail- able before June 30, 2020. Here are 21 healthcare CEOs who made As You Sow's list: Larry Merlo (CVS Health) Pay: $36.5 million CEO-to-worker pay ratio: 790:1 Excess pay: $24.3 million Alan Miller (King of Prussia, Pa.-based Uni- versal Health Services) Pay: $24.5 million CEO-to-worker pay ratio: 629:1 Excess pay: $12.4 million Michael Neidorff (Centene) Pay: $26.4 million CEO-to-worker pay ratio: 383:1 Excess pay: $13.3 million Heather Bresch (Mylan) Pay: $18.5 million CEO-to-worker pay ratio: 427:1 Excess pay: $7.5 million John Hammergren (McKesson) Pay: $17.4 million CEO-to-worker pay ratio: 458:1 Excess pay: $5.2 million Samuel Hazen (Nashville, Tenn.-based HCA Healthcare) Pay: $26.8 million CEO-to-worker pay ratio: 478:1 Excess pay: $14.1 million Stefano Pessina (Walgreens Boots Alliance) Pay: $19.2 million CEO-to-worker pay ratio: 562:1 Excess pay: $7.3 million Ari Bousbib (IQVIA) Pay: $22.1 million CEO-to-worker pay ratio: 186:1 Excess pay: $8.7 million Miles White (Abbott Laboratories) Pay: $27.8 million CEO-to-worker pay ratio: 329:1 Excess pay: $14.2 million Javier Rodriguez (DaVita) Pay: $16.9 million CEO-to-worker pay ratio: 286:1 Excess pay: $4.3 million Leonard Schleifer, MD, PhD (Regeneron Pharmaceuticals) Pay: $21.5 million CEO-to-worker pay ratio: 154:1 Excess pay: $8.6 million Daniel O'Day (Gilead Sciences) Pay: $29.1 million CEO-to-worker pay ratio: 169:1 Excess pay: $16.9 million David Cordani (Cigna) Pay: $19.3 million CEO-to-worker pay ratio: 306.7:1 Excess pay: $6.5 million Michael Minogue (Abiomed) Pay: $19.2 million CEO-to-worker pay ratio: 166:1 Excess pay: $4.8 million Joseph Hogan (Align Technology) Pay: $18.3 million CEO-to-worker pay ratio: 1,328:1 Excess pay: $3.5 million Kenneth Frazier (Merck) Pay: $27.6 million CEO-to-worker pay ratio: 289:1 Excess pay: $14.5 million Marc Casper (ermo Fisher Scientific) Pay: $19 million CEO-to-worker pay ratio: 235:1 Excess pay: $5 million Michel Vounatsos (Biogen) Pay: $18.2 million CEO-to-worker pay ratio: 114:1 Excess pay: $6 million Michael Kaufmann (Cardinal Health) Pay: $15.6 million CEO-to-worker pay ratio: 272:1 Excess pay: $3.4 million Vincent Forlenza (Becton, Dickinson and Co.) Pay: $16 million CEO-to-worker pay ratio: 379:1 Excess pay: $2.6 million Omar Ishrak (Medtronic) Pay: $17.8 million CEO-to-worker pay ratio: 240:1 Excess pay: $4.8 million n Leapfrog adds health equity, billing ethics questions to hospital surveys By Kelly Gooch T he Leapfrog Group is introducing two sets of questions for its 2021 surveys of hospitals and ambulatory surgery centers to assess whether facilities practice ethical billing and track and address care disparities that affect patient experience and outcome, the organization said March 10. The sets of questions will be part of surveys that open April 1, and the findings won't be scored or publicly reported by facility this first year. Leapfrog also changed rules for submitting 2021 surveys because of the COVID-19 pandemic. These changes include a 30-day submission deadline extension, as well as updated reporting periods for certain survey sections, and reduced sample sizes for certain measures. The deadline for survey submissions is July 31. n