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Annual survey: executive compensation under fire.

J Lampert1, D Bjork

  • 1Hay Management Consultants, Boston, MA.

Hospitals
|September 5, 1992
PubMed
Summary

Health care executive compensation is rising due to management turnover, though it still lags behind industry averages. The 1992 Hay survey also examined performance-based pay for hospital leaders.

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Area of Science:

  • Healthcare Management
  • Health Economics
  • Organizational Behavior

Background:

  • Healthcare executive compensation trends are dynamic.
  • Hospital management turnover influences compensation.
  • Benchmarking executive pay against industry standards is crucial.

Purpose of the Study:

  • To analyze current trends in health care executive compensation.
  • To compare hospital executive pay with general industry levels.
  • To explore the relationship between executive pay and performance metrics.

Main Methods:

  • Utilized data from the 1992 Hay hospital management/professional survey.
  • Analyzed compensation and benefits data from over 1,200 U.S. hospitals.
  • Examined factors driving compensation growth, including management turnover.

Main Results:

  • Health care executive compensation shows consistent growth.
  • Top hospital executive pay increases outpace general industry.
  • Overall hospital executive compensation remains lower than in other industries.
  • The survey investigated performance-based compensation strategies.

Conclusions:

  • Management turnover is a significant driver of rising health care executive salaries.
  • Despite faster pay increases, hospital executive compensation trails industry benchmarks.
  • Further research into performance-linked compensation models is warranted.

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