HCA CEO Hazen elevated his compensation to $ 30 million in 2020. That is what different public well being CEOs deserve
Reduced patient volumes and higher costs have become the norm in hospitals. Many smaller organizations are looking for government relief or new partnerships to keep the lights on.
However, the 2020 pandemic challenges didn’t put the country’s larger for-profit healthcare systems completely in the red – in fact, the largest publicly traded systems routinely made full-year profits that were above their numbers in 2019.
2020 was a little more inconsistent for CEOs steering these big systems through the storm. According to the U.S. Securities and Exchange Commission, total compensation for two of the top four publicly traded CEOs in the healthcare system was lower than their 2019 compensation.
Outstanding was the 2020 top earner, Sam Hazen of HCA Healthcare, who received total compensation of approximately $ 30.4 million. That was more than the $ 26.8 million he claimed in 2019.
Community Health Systems’ Wayne T. Smith was the other winner for that year. He raised approximately $ 9.1 million in his final year as CEO, up from approximately $ 8.1 million in 2019.
Every CEO saw pandemic cuts in their salaries, with the exception of Ron Rittenmeyer of Tenet Healthcare, who had agreed to donate half of his salary to a fund that supports the system’s employees over a seven-month period.
However, salaries are a relatively small fraction of the compensation managers they see over the course of a year. When it came to stock awards, Rittenmeyer led the pack with $ 10 million, largely backed by a stock price-related payout in December.
HCA’s Hazen, meanwhile, saw a massive pay rise tied to the value of his additional benefits to the executive retirement plan. The changes in his pension value and unqualified deferred compensation income in 2020 were approximately $ 12.3 million compared to $ 9.6 the previous year.
Also worth mentioning is $ 8.6 million in option rewards given by Alan Miller of Universal Health Services. That represented the vast majority of this year’s salary for the healthcare system CEO and founder, who stepped aside in January to be replaced by his son Marc Miller.
The SEC’s proxy filings provided additional information about the perks these CEOs enjoyed during the pandemic year, such as: B. Use of business jets and means of maintaining personal residence. Read below to see the full breakdown of each CEO’s compensation for 2020.
Wayne Smith, Community Health Systems
Compensation for 2020: $ 9,066,419
Ratio of CEO to average employee salary: 161: 1
Wayne Smith, 75, was named CEO of the Community Health System in 1997 and chairman of the board in 2001. At the end of 2020, he stepped down from the position of CEO and now holds the position of CEO. He was replaced on January 1 by President and Chief Operating Officer Tim Hingtgen.
Smith’s base salary in 2020 was $ 1.3 million. He received Restricted Stock Awards of $ 1.7 million and option awards of $ 265,000. He also saw $ 4.6 million through Community Health Systems’ non-equity incentive plan, as well as a $ 1.1 million change in his pension value and unqualified deferred compensation. He did not receive a bonus in 2020.
The healthcare system listed $ 95,424 in other forms of compensation for its outgoing CEO. This included $ 55,365 for life insurance premiums, $ 4,516 membership dues, a match of $ 2,500 401 (k) and $ 29,335 for personal use of a business jet.
Sam Hazen, HCA Healthcare
Compensation for 2020: $ 30,397,771
Ratio of CEO to median employee earnings: 556: 1
Samuel Hazen, 60, is relatively new to his role. He was named CEO in January 2019, having served as President and Chief Operating Officer since November 2016. He is also a member of the board of directors of the Nashville, Tennessee-based system.
HCA Healthcare paid Hazen a base salary of more than $ 1.3 million and granted him limited stock and appreciation rights of nearly $ 13.1 million. Hazen received $ 3.5 million in non-equity incentive plan compensation and saw a significant change in pension value and unqualified deferred compensation income of $ 12.3 million. He did not receive a bonus.
Hazen also collected $ 186,318 in other forms of compensation. This equates to an increase in dividend payments of $ 166,818 and a plan match of $ 19,500 (401 (k)).
Ron Rittenmeyer, Health Care Policy
Compensation for 2020: $ 16,675,529
Ratio of CEO to average salary: 306: 1
73-year-old Ron Rittenmeyer took over as CEO in October 2017 after being appointed Executive Chairman two months earlier.
His base salary at Tenet that year was over $ 1.4 million and came with a bonus of $ 875,000. He has received over $ 10 million in stock awards and over $ 3.9 million in non-equity incentive plan compensation.
Of the $ 407,143 in other disbursements made by Tenet, it included $ 24,918 for personal use of the company aircraft and $ 11,702 for personal use of a company car and driver, which the system said was provided for security reasons. The company also received Rittenmeyer’s Long-Term Disability Awards of $ 128.
Alan Miller, Universal Health Services
Compensation for 2020: $ 13,246,214
Ratio of CEO to average salary: 305: 1
Alan Miller, 83, started his healthcare system in 1979. He was both CEO and Chairman until he handed the previous role to his son Marc Miller in early 2021. The Senior Miller now serves as Chairman of the Board.
As CEO in 2020, Alan Miller earned a base salary of over $ 1.4 million and received a $ 1 million bonus. He received approximately $ 1 million in stock awards and over $ 8.6 million in option awards. His pension value and unqualified deferred compensation gain were $ 44,826.
The remainder of Alan Miller’s nearly $ 1.2 million in compensation came from a collection of personal benefits more diverse than those listed for his fellow CEOs.
Most funds were tied to relatively normal payouts: life insurance contracts of nearly $ 1.1 million, dividends of $ 6,486 for untransferred stocks, long-term disability awards of $ 9,726, and a plan match of 8,550,410 (k) USD. Otherwise, the payouts included $ 25,000 for professional tax services and $ 2,573 for additional accounting services. US $ 10,789 for country club fees; $ 3,022 for personal residence maintenance; $ 23,075 in lease, fuel, and maintenance tied to his car; and a $ 360 wireless grant.