Becker's Hospital Review

51 Executive Compensation C EOs at independent hospitals saw the largest av- erage base salary increase, 6.4 percent, between 2013 and 2014, according to the 2014 Manager and Executive Compensation in Hospitals and Health Sys- tems Survey from Sullivan, Cotter and Associates. Although average base salaries increased across the board for several C-suite positions, some positions saw greater increases than others. For instance, CFOs of health sys- tems saw the largest increase in compensation as opposed to CFOs at independent or system-owned hospitals. The average base salary increases between 2013 and 2014 are as follows, according to the survey results: 12 Findings on Hospital and Health System C-Suite Base Salaries By Shannon Barnet ther case, both parties in successful mergers need to consider how to best support the emerging organization. Trend 4: Complement Succession Planning According to a recent report from the American College of Healthcare Execu- tives, one in five healthcare CEOs turned over in 2013 — a record high. That trend will likely continue because: • Competition is fierce for seasoned executives who can lead during uncertain times. • Company and personal retirement savings have rebounded, making retire- ment more palatable for executives. • M&A activity will continue, resulting in fewer leadership positions. In response to this trend, healthcare organizations are focusing on strategies that promote stable leadership in turbulent times. These arrangements can be individualized for key executives that are affected by the transition. These strategies may incorporate retention plans, severance or a combination of the two. Executives feel most secure when they are protected during a time of change. Designing a program that provides security in selective circumstances may require tailored solutions. These solutions can be valuable, but must be viewed as a complement to a broader succession planning strategy. Boards should review their succession plans annually — not just when contracts are expiring — to help with conti- nuity in leadership, particularly during times of change. Summary Executive benefits design varies based on the needs of the hospital or health system as well as its executive team. Healthcare leaders can best serve their organizations by reviewing their executive benefits regularly and designing programs that are flexible enough to meet the needs of a changing healthcare environment. n According to a recent report from the American College of Healthcare Executives, one in five healthcare CEOs turned over in 2013 — a record high. Health system • CEO — 2.6 percent • COO — 2.9 percent • CFO — 3.5 percent • CMO — 2.5 percent Independent hospital • CEO — 6.4 percent • COO — 4.5 percent • CFO — 2.1 percent • CMO — 4.9 percent System-owned hospital • CEO — 1.7 percent • COO — 1.7 percent • CFO — 2.5 percent • CMO — 1.7 percent n SAVE THE DATE! Becker's Hospital Review Annual Meeting May 7-9, 2015 Swissôtel - Chicago, Illinois 153 Great Health System Executives Speaking 119 Sessions - 212 Speakers To learn more visit www.BeckersHospitalReview.com To register, visit www.regonline.com/hospitalreview6thannualmeeting

• Cover