Health care CEO compensation on the rise

Health care CEOs received pay increases of more than 25% last year, according to a recent Jenks Healthcare Business Report survey. The total earnings for chief executives at 70 major hospitals, pharmaceutical, and managed care companies averaged $1.95 million in 1996, a 25.2% increase from the previous year.

Base salaries, bonuses, and other cash awards were used in calculating the total compensation for the executives. A large portion of the pay of top health care executives is linked to bonuses and other performance related criteria.

The Jenks study also looked at the value of the stockholdings of chief executives in the companies they direct. Sixteen of the 70 CEOs controlled shares in their companies valued at more than $100 million.