Becker's Hospital Review

April-2023-issue-of-beckers-hospital

Issue link: https://beckershealthcare.uberflip.com/i/1495274

Contents of this Issue

Navigation

Page 13 of 39

14 CEO / STRATEGY 10 'overpaid' CEOs in healthcare By Molly Gamble T he 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. e 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. e 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. In 2022, 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. e 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 (ermo 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 n 10 fastest-growing C-suite roles By Alexis Kayser A number of new titles have claimed their seat at the executive table in recent years, according to LinkedIn. The platform's Economic Graph Team analyzed more than 500,000 C-suite positions in the U.S. to calculate the percent growth rate for different "chief" titles. These 10 had the highest percentage of growth in hires between 2019 and 2022: 1. Chief diversity and inclusion officer — 168.9 percent 2. Chief delivery officer — 165.6 percent 3. Chief people officer — 144.3 percent 4. Chief growth officer — 117.5 percent 5. Chief revenue officer — 76.3 percent 6. Chief legal officer — 72 percent 7. Chief program officer — 60.3 percent 8. Chief commercial officer — 59.6 percent 9. Chief underwriting officer — 53.2 percent 10. Chief human resources officer — 50.1 percent n

Articles in this issue

view archives of Becker's Hospital Review - April-2023-issue-of-beckers-hospital