Health Care Executive Compensation Report 2001
FOR IMMEDIATE RELEASE
Stephen M. Monroe, Partner
HEALTH CARE EXECUTIVE COMPENSATION INCREASED UP TO 57% IN 2000, ACCORDING TO IRVING LEVIN ASSOCIATES' ANNUAL EXECUTIVE COMPENSATION REPORT
NEW CANAAN, CT. - Oct. 17, 2001 - Executives at Medical Product and Pharmaceutical Distributors saw their cash compensation jump 57% on average last year, according to Irving Levin Associates, Inc., which today released its annual Health Care Executive Compensation Report. Executives at Biotechnology companies had the smallest increase in the study: 8%. Unlike 1999, in which compensation was down nearly across the board, every sector's executives received more cash compensation on average in 2000 than the year before.
"Many health care service companies are back on track and it shows in their executive pay," noted Stephen M. Monroe, a partner and managing editor at the firm. "Companies such as Tenet Healthcare, Healthsouth and Apria Healthcare are turning in solid top line and bottom line results."
The 2001 edition of the report details salary, bonus, other cash compensation and stock option awards for the three highest-paid executives in nearly 100 health care companies. In addition, it reports shareholder return, revenue, and earnings for 2000, as well as company contact information and outside director fees. The survey reports on executive compensation in 10 health care sectors, including Biotechnology; Contract Research; Healthcare Information Services; HMOs/Insurers; Hospitals/Medical Services; Medical Devices/Supplies/Equipment; Medical Product and Pharmaceutical Distribution; Pharmaceuticals; Pharmacy Benefit Management; and Post-Acute and Long-Term Care.
The highest salaries were in Pharmaceuticals, where the average salary was $781,256 and the median $731,271. On the low end were salaries in Healthcare Information Services, where the average salary was $322,494 and the median $355,000 - less than half of Pharmaceutical execs.
The Chairman & CEO of Healthsouth, Richard M. Scrushy, drew the highest base salary of all executives in the study--$3.6 million. Pharmaceutical and HMO executives round out the list of the top 5 salaries in the survey:
-- UnitedHealth Group. - CEO William McGuire, M.D.'s salary was $1.7 million.
-- Pfizer - Chairman William Steere, Jr.'s salary was $1.6 million.
-- GlaxoSmithKline - Chairman Sir Richard Sykes' salary was $1.3 million (about $1.5 million).
-- Johnson & Johnson - Chairman & CEO R.S. Larsen's salary was $1.4 million..
Information for the report was taken from company proxy statements. For more information on Levin's products, check its Web site at www.levinassociates.com. To subscribe to any of Levin's newsletters, call 800-248-1668.
Irving Levin Associates, Inc. was established in 1948 and has headquarters in New Canaan, Conn. This privately held corporation publishes research reports and newsletters, and maintains merger and acquisition databases on the health care and senior housing market.
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