Stephen M. Monroe, Partner
Phone: (800) 248-1668
Fax: (203) 846-8300
NEW CANAAN, CT. – Sept. 29, 2000 – Irving Levin Associates, Inc. (, a provider of financial information and publisher of research reports and newsletters on the health care industry, today released results of its annual 1999 Salary Survey of top health care executives. 
The 1999 Salary Survey reports compensation for top executives of more than 50 health-care companies around the country. It reports salary, bonus, other monetary compensation and stock options. In addition, it also reports shareholder return for 1999.  The survey reports on executive compensation at hospital, long-term care, managed-care and other companies as well as health care REITs.
All but five companies on the list reported negative returns for their shareholders in 1999, many with minus-60 percent or worse. Those reporting shareholder gains were Advance Paradigm, Apria Healthcare, UnitedHealth Group, Cigna and HCA-The Healthcare Company.  In most cases, executives received less compensation for 1999 than for 1998.
The survey shows that 1999 was a bad year for health care, with three high-profile bankruptcies of major nursing home chains, the near demise of the home health care industry, and the continued negative effect of reduced Medicare reimbursement.
“Our entire universe of long-term care provider stocks had negative returns for stockholders in 1999,” said Stephen Monroe, editor of the survey.  “To a limited degree, this was reflected in the compensation of senior management.”
For 20% of the companies in the universe, senior executives received no bonus payment.  The Chairman of Cigna, Wilson Taylor, was the most highly paid executive, drawing a total monetary compensation of $7.5 million. Cigna showed a shareholder return rate of just 6 percent in 1999.  Dan Baty, CEO of Emeritus Corp., received neither salary nor bonus.
The following is a sampling of salaries at some of the larger health care companies:
• Aetna Inc. – Total monetary compensation* for Chairman Richard Huber was $1.75 million.
• HEALTHSOUTH Corp. – Total monetary compensation for Chairman Richard Scrushy was $2.98 million.
• Humana – Total monetary compensation for Chairman David Jones was $981,961.
• Oxford Health Plans – Total monetary compensation for Chairman Norman Peyson was $764,058.
• Sunrise Assisted Living – Total monetary compensation for Chairman Paul Klaassen was $275,000.
* Includes salary, bonus and all other monetary compensation. Exclusive of stock options.
Information for the report was taken from company proxy statements.  For more information on Levin’s products, check its Web site at 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 databases on the health care and senior housing market. The firm has a strategic alliance agreement with Cushman & Wakefield, a national commercial real estate company, for the valuation of senior housing and health-care properties.
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